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Section 1: 8-K (8-K)

hth_Current Folio_8K_Earnings

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington,  D.C. 20549 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):    April 26, 2018

 

 

 

 

Hilltop Holdings Inc.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

Maryland

 

1-31987

 

84-1477939

(State or other jurisdiction of incorporation)

 

(Commission

File Number)

 

(IRS Employer Identification No.)

 

 

 

 

2323 Victory Avenue, Suite 1400

 

 

Dallas, Texas

 

75219

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (214) 855-2177

 

 

 

 

 

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b– 2 of the Securities Exchange Act of 1934.

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 


 

Section 2 – Financial Information

 

Item 2.02  Results of Operations and Financial Condition.

 

On April 26, 2018,  Hilltop Holdings Inc., or the Company, issued a press release announcing its results of operations and financial condition as of and for the three months ended March 31, 2018. The text of the release is set forth in Exhibit 99.1 attached to this Current Report on Form 8-K and is incorporated herein by reference.

 

The information in this Current Report on Form 8-K (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth in such filing.

 

Section 8 – Other Events

 

Item 8.01  Other Events.

 

On April 26, 2018, the Board of Directors of the Company declared a quarterly cash dividend of $0.07 per common share, payable on May 31, 2018, to stockholders of record as of the close of business on May 15, 2018. 

 

Section 9 – Financial Statements and Exhibits

 

Item 9.01  Financial Statements and Exhibits.

 

(a)

Financial statements of businesses acquired.

Not applicable.

(b)

Pro forma financial information.

Not applicable.

(c)

Shell company transactions.

Not applicable.

(d)

Exhibits.

 

The following exhibit(s) are filed or furnished, depending on the relative item requiring such exhibit, in accordance with the provisions of Item 601 of Regulation S-K and Instruction B.2 to this form.

 

 

 

 

 

 

Exhibit

Number

 

Description of Exhibit

 

99.1

 

 

Press Release dated April 26, 2018 (furnished pursuant to Item 2.02).

 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

Hilltop Holdings Inc.,

 

 

a Maryland corporation

 

 

 

 

 

 

 

 

Date:

April 26, 2018

By:

/s/ COREY PRESTIDGE

 

 

Name:

Corey G. Prestidge

 

 

Title:

Executive Vice President,

 

 

 

General Counsel & Secretary

 

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

hth_Ex_99-1_Earnings

Exhibit 99.1

 

 

Investor Relations Contact:

 

Isabell Novakov

 

214-252-4029

 

[email protected]

 

Hilltop Holdings Inc. Announces Financial Results for First Quarter 2018

 

DALLAS — (BUSINESS WIRE) April 26, 2018 — Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the first quarter of 2018. Hilltop produced income of $24.4 million, or $0.25 per diluted share, for the first quarter of 2018, compared to $26.4 million, or $0.27 per diluted share, for the first quarter of 2017.  

 

On February 14, 2018, Hilltop announced that it had entered into a definitive agreement to acquire privately-held, Houston-based The Bank of River Oaks (“BORO”) in an all-cash transaction. Under the terms of the definitive agreement, Hilltop has agreed to pay cash in the aggregate amount of $85 million to the shareholders and option holders of BORO. As of December 31, 2018, BORO had unaudited total assets, gross loans and deposits of approximately $454 million, $344 million and $406 million, respectively. The transaction is subject to customary closing conditions, including regulatory approvals and approval by shareholders of BORO, and is expected to close during the third quarter of 2018.

 

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable on May 31, 2018, to all common stockholders of record as of the close of business on May 15, 2018.  Additionally,  pursuant to the stock repurchase program authorized by the Hilltop Board of Directors in January 2018, Hilltop paid $1.7 million to repurchase 68,307 shares at an average price of $24.94 during the first quarter of 2018. These shares were returned to the pool of authorized but unissued shares of common stock.

 

Jeremy Ford, Co-CEO of Hilltop, said, “Our diversified business model with PlainsCapital Bank as the cornerstone continued to demonstrate its resilience, as the bank generated strong earnings and the broker-dealer’s clearing and retail businesses benefited from higher short-term rates, while our mortgage-related businesses endured a challenging environment. We are excited about the pending acquisition of The Bank of River Oaks and accelerating our efforts in the robust Houston market, as we remain focused on building our core banking franchise across Texas.”

 

Alan White, Co-CEO of Hilltop, added, “Our markets are increasingly competitive, so our teams are focused on growing revenue by providing best-in-class service to our valued customers. PlainsCapital Bank had a positive first quarter, generating solid net interest income growth while maintaining very strong credit quality. National Lloyds’ earnings were driven by lower storm losses. HilltopSecurities’ fixed income portfolio was adversely impacted by volatility in long-term rates, and PrimeLending experienced tighter gain on sale margins.”

 

First Quarter 2018 Highlights for Hilltop:

 

·

Hilltop’s annualized return on average assets and return on average equity for the first quarter of 2018 were 0.77% and 5.19%, respectively, compared to 0.88% and 5.73%, respectively, for the first quarter of 2017; 

·

Hilltop’s total assets were $13.3 billion at March 31, 2018, compared to $13.4 billion at December 31, 2017;

·

Hilltop’s common equity increased by $10.9 million from December 31, 2017 to $1.9 billion at March 31, 2018;

·

Non-covered loans1 held for investment, net of allowance for loan losses, decreased by 0.4% to $5.6 billion and covered loans2, net of allowance for loan losses, decreased by 6.5% to $167.8 million at March 31, 2018 compared to December 31, 2017;

·

Non-covered non-performing loans  decreased to $39.4 million, or 0.52% of total non-covered loans, at March 31, 2018, compared to $40.5 million, or 0.51% of total non-covered loans, at December 31, 2017;

·

Energy classified and criticized loans were $28.5 million at March 31, 2018,  a slight decrease from  $28.6 million at December 31, 2017;

·

Loans held for sale decreased by 17.8% from  December 31, 2017 to $1.4 billion at March 31, 2018;

·

Total deposits were $8.0 billion at both March 31, 2018 and December 31, 2017;

·

Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio3 of 13.26% and a Common Equity Tier 1 Capital Ratio of 18.60% at March 31, 2018;

Y:\HTH Branding-Logo\HTH Vertical Logo - Color.jpg


 

·

Hilltop’s net interest margin4 decreased to 3.52% for the first quarter of 2018, compared to 3.57% in the fourth quarter of 2017;

·

The provision (recovery) for loan losses was  ($1.8)  million during the  first quarter of 2018, compared to $5.5 million in the fourth quarter of 2017;  

·

For the first quarter of 2018, noninterest income was $235.1 million, compared to $271.4 million in the first quarter of 2017,  a 13.4%  decrease; and 

·

For the first quarter of 2018, noninterest expense was $308.2 million, compared to $320.5 million in the first quarter of 2017, a 3.8%  decrease; and

·

The Company’s effective tax rate decreased to 23.3% during the first quarter of 2018, compared to 36.4% during the first quarter of 2017, primarily due to the enactment of the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”).


1   “Non-covered loans” exclude broker-dealer margin loans.

2 “Covered loans” refer to loans acquired in the FNB Transaction that are subject to loss-share agreements with the FDIC.  

3   Based on the end of period Tier 1 capital divided by total average assets during  2018, excluding goodwill and intangible assets.

4   Net interest margin is defined as net interest income divided by average interest-earning assets.

 

Consolidated Financial and Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(in 000's)

    

2018

    

2017

    

2017

    

2017

    

2017

Cash and due from banks

 

$

470,127

 

$

486,977

 

$

354,569

 

$

405,938

 

$

545,928

Federal funds sold

 

 

400

 

 

405

 

 

400

 

 

388

 

 

24,404

Securities purchased under agreements to resell

 

 

244,978

 

 

186,537

 

 

134,654

 

 

125,188

 

 

113,228

Assets segregated for regulatory purposes

 

 

198,170

 

 

186,578

 

 

207,336

 

 

167,565

 

 

166,395

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading, at fair value

 

 

756,151

 

 

730,685

 

 

676,411

 

 

471,485

 

 

373,300

Available for sale debt, at fair value

 

 

806,583

 

 

744,319

 

 

765,542

 

 

763,206

 

 

755,546

Held to maturity debt, at amortized cost

 

 

356,452

 

 

355,849

 

 

347,048

 

 

339,344

 

 

317,094

Equity, at fair value

 

 

20,876

 

 

21,241

 

 

20,983

 

 

20,503

 

 

20,263

 

 

 

1,940,062

 

 

1,852,094

 

 

1,809,984

 

 

1,594,538

 

 

1,466,203

Loans held for sale

 

 

1,409,634

 

 

1,715,357

 

 

1,939,321

 

 

2,000,257

 

 

1,329,493

Non-covered loans, net of unearned income

 

 

6,216,809

 

 

6,273,669

 

 

6,148,813

 

 

6,118,211

 

 

5,783,853

Allowance for non-covered loan losses

 

 

(60,371)

 

 

(60,957)

 

 

(58,779)

 

 

(59,208)

 

 

(55,157)

Non-covered loans, net

 

 

6,156,438

 

 

6,212,712

 

 

6,090,034

 

 

6,059,003

 

 

5,728,696

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Covered loans, net of allowance for covered loan losses

 

 

167,781

 

 

179,400

 

 

188,269

 

 

205,877

 

 

234,681

Broker-dealer and clearing organization receivables

 

 

1,660,720

 

 

1,464,378

 

 

1,672,123

 

 

1,552,525

 

 

1,574,031

Premises and equipment, net

 

 

173,637

 

 

177,577

 

 

176,281

 

 

183,994

 

 

184,091

FDIC indemnification asset

 

 

25,458

 

 

29,340

 

 

33,143

 

 

40,304

 

 

47,940

Covered other real estate owned

 

 

35,777

 

 

36,744

 

 

40,343

 

 

42,304

 

 

45,374

Other assets

 

 

576,567

 

 

549,447

 

 

596,095

 

 

618,368

 

 

583,554

Goodwill

 

 

251,808

 

 

251,808

 

 

251,808

 

 

251,808

 

 

251,808

Other intangible assets, net

 

 

34,569

 

 

36,432

 

 

38,440

 

 

40,516

 

 

42,601

Total assets

 

$

13,346,126

 

$

13,365,786

 

$

13,532,800

 

$

13,288,573

 

$

12,338,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

2,565,825

 

$

2,411,849

 

$

2,279,633

 

$

2,251,208

 

$

2,272,905

Interest bearing

 

 

5,393,897

 

 

5,566,270

 

 

5,383,814

 

 

5,323,414

 

 

5,056,957

Total deposits

 

 

7,959,722

 

 

7,978,119

 

 

7,663,447

 

 

7,574,622

 

 

7,329,862

Broker-dealer and clearing organization payables

 

 

1,504,172

 

 

1,287,563

 

 

1,517,698

 

 

1,395,314

 

 

1,437,548

Short-term borrowings

 

 

1,064,325

 

 

1,206,424

 

 

1,477,201

 

 

1,515,069

 

 

753,777

Securities sold, not yet purchased, at fair value

 

 

255,551

 

 

232,821

 

 

173,509

 

 

149,869

 

 

144,193

Notes payable

 

 

202,700

 

 

208,809

 

 

300,196

 

 

300,283

 

 

324,701

Junior subordinated debentures

 

 

67,012

 

 

67,012

 

 

67,012

 

 

67,012

 

 

67,012

Other liabilities

 

 

367,188

 

 

470,231

 

 

424,381

 

 

393,351

 

 

392,025

Total liabilities

 

 

11,420,670

 

 

11,450,979

 

 

11,623,444

 

 

11,395,520

 

 

10,449,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

960

 

 

960

 

 

959

 

 

963

 

 

984

Additional paid-in capital

 

 

1,526,867

 

 

1,526,369

 

 

1,525,169

 

 

1,529,903

 

 

1,570,329

Accumulated other comprehensive income (loss)

 

 

(9,698)

 

 

(394)

 

 

2,585

 

 

2,112

 

 

897

Retained earnings

 

 

404,260

 

 

384,545

 

 

376,873

 

 

356,564

 

 

313,197

Deferred compensation employee stock trust, net

 

 

857

 

 

848

 

 

840

 

 

845

 

 

893

Employee stock trust

 

 

(254)

 

 

(247)

 

 

(241)

 

 

(248)

 

 

(300)

Total Hilltop stockholders' equity

 

 

1,922,992

 

 

1,912,081

 

 

1,906,185

 

 

1,890,139

 

 

1,886,000

Noncontrolling interests

 

 

2,464

 

 

2,726

 

 

3,171

 

 

2,914

 

 

3,309

Total stockholders' equity

 

 

1,925,456

 

 

1,914,807

 

 

1,909,356

 

 

1,893,053

 

 

1,889,309

Total liabilities & stockholders' equity

 

$

13,346,126

 

$

13,365,786

 

$

13,532,800

 

$

13,288,573

 

$

12,338,427

 

 

 

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Three Months Ended

 

Consolidated Income Statements

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

(in 000's, except per share data)

    

2018

    

2017

    

2017

    

2017

    

2017

    

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

99,944

 

$

105,658

 

$

102,546

 

$

113,793

 

$

89,991

 

Securities borrowed

 

 

16,300

 

 

11,994

 

 

11,404

 

 

9,597

 

 

8,053

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

10,953

 

 

10,824

 

 

10,214

 

 

8,833

 

 

6,600

 

Tax-exempt

 

 

1,772

 

 

1,717

 

 

1,471

 

 

1,375

 

 

1,244

 

Other

 

 

4,391

 

 

3,472

 

 

3,309

 

 

2,708

 

 

2,353

 

Total interest income

 

 

133,360

 

 

133,665

 

 

128,944

 

 

136,306

 

 

108,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

8,675

 

 

7,700

 

 

6,841

 

 

5,464

 

 

4,690

 

Securities loaned

 

 

13,739

 

 

9,581

 

 

8,935

 

 

7,481

 

 

6,340

 

Short-term borrowings

 

 

4,043

 

 

4,118

 

 

4,567

 

 

3,648

 

 

1,418

 

Notes payable

 

 

2,497

 

 

2,611

 

 

2,680

 

 

2,826

 

 

2,814

 

Junior subordinated debentures

 

 

822

 

 

787

 

 

774

 

 

744

 

 

711

 

Other

 

 

164

 

 

176

 

 

167

 

 

167

 

 

168

 

Total interest expense

 

 

29,940

 

 

24,973

 

 

23,964

 

 

20,330

 

 

16,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

103,420

 

 

108,692

 

 

104,980

 

 

115,976

 

 

92,100

 

Provision (recovery) for loan losses

 

 

(1,807)

 

 

5,453

 

 

1,260

 

 

5,853

 

 

1,705

 

Net interest income after provision (recovery) for loan losses

 

 

105,227

 

 

103,239

 

 

103,720

 

 

110,123

 

 

90,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains from sale of loans and other mortgage production income

 

 

105,767

 

 

122,132

 

 

138,498

 

 

153,688

 

 

124,150

 

Mortgage loan origination fees

 

 

20,626

 

 

23,156

 

 

25,256

 

 

25,976

 

 

19,556

 

Securities commissions and fees

 

 

39,383

 

 

40,868

 

 

38,735

 

 

37,804

 

 

39,057

 

Investment and securities advisory fees and commissions

 

 

17,625

 

 

36,561

 

 

25,620

 

 

25,537

 

 

22,202

 

Net insurance premiums earned

 

 

34,315

 

 

35,645

 

 

34,493

 

 

36,020

 

 

36,140

 

Other

 

 

17,427

 

 

32,094

 

 

35,875

 

 

65,667

 

 

30,334

 

Total noninterest income

 

 

235,143

 

 

290,456

 

 

298,477

 

 

344,692

 

 

271,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employees' compensation and benefits

 

 

182,600

 

 

205,642

 

 

209,747

 

 

214,719

 

 

186,886

 

Occupancy and equipment, net

 

 

27,830

 

 

29,658

 

 

29,073

 

 

27,919

 

 

27,293

 

Professional services

 

 

24,704

 

 

24,220

 

 

25,560

 

 

26,696

 

 

25,045

 

Loss and loss adjustment expenses

 

 

15,532

 

 

8,583

 

 

31,234

 

 

33,184

 

 

21,700

 

Other

 

 

57,536

 

 

60,567

 

 

58,228

 

 

63,733

 

 

59,568

 

Total noninterest expense

 

 

308,202

 

 

328,670

 

 

353,842

 

 

366,251

 

 

320,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

32,168

 

 

65,025

 

 

48,355

 

 

88,564

 

 

41,342

 

Income tax expense

 

 

7,488

 

 

51,350

 

 

18,003

 

 

25,754

 

 

15,035

 

Net income

 

 

24,680

 

 

13,675

 

 

30,352

 

 

62,810

 

 

26,307

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

239

 

 

247

 

 

146

 

 

334

 

 

(127)

 

Income attributable to Hilltop

 

$

24,441

 

$

13,428

 

$

30,206

 

$

62,476

 

$

26,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.25

 

$

0.14

 

$

0.31

 

$

0.64

 

$

0.27

 

Diluted

 

$

0.25

 

$

0.14

 

$

0.31

 

$

0.63

 

$

0.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.07

 

$

0.06

 

$

0.06

 

$

0.06

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

95,985

 

 

95,903

 

 

96,096

 

 

98,154

 

 

98,441

 

Diluted

 

 

96,146

 

 

96,080

 

 

96,306

 

 

98,414

 

 

98,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2018

Segment Results

 

 

 

 

 

 

 

Mortgage

    

 

    

 

 

    

All Other and

    

Hilltop

(in 000's)

    

Banking

    

Broker-Dealer

    

Origination

    

Insurance

    

Corporate

    

Eliminations

    

Consolidated

Net interest income (expense)

 

$

86,638

 

$

12,550

 

$

941

 

$

787

 

$

(2,091)

 

$

4,595

 

$

103,420

Provision (recovery) for loan losses

 

 

(1,531)

 

 

(276)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(1,807)

Noninterest income

 

 

10,180

 

 

68,547

 

 

127,102

 

 

35,018

 

 

(712)

 

 

(4,992)

 

 

235,143

Noninterest expense

 

 

59,370

 

 

77,776

 

 

130,704

 

 

31,013

 

 

9,403

 

 

(64)

 

 

308,202

Income (loss) before income taxes

 

$

38,979

 

$

3,597

 

$

(2,661)

 

$

4,792

 

$

(12,206)

 

$

(333)

 

$

32,168

 

Y:\HTH Branding-Logo\HTH Vertical Logo - Color.jpg


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

Selected Financial Data

    

2018

    

2017

    

2017

    

2017

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hilltop Consolidated:

 

 

   

 

 

   

 

 

 

 

 

 

 

 

 

Return on average stockholders' equity (1)

 

 

5.19%

 

 

2.78%

 

 

6.32%

 

 

13.24%

 

 

5.73%

Return on average assets (1)

 

 

0.77%

 

 

0.41%

 

 

0.90%

 

 

1.94%

 

 

0.88%

Net interest margin (2) (3)

 

 

3.52%

 

 

3.57%

 

 

3.44%

 

 

3.98%

 

 

3.47%

Net interest margin (taxable equivalent) (3) (4):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

3.53%

 

 

3.59%

 

 

3.46%

 

 

3.99%

 

 

3.49%

Impact of purchase accounting

 

 

36 bps

 

 

43 bps

 

 

37 bps

 

 

82 bps

 

 

49 bps

Book value per common share ($)

 

 

20.02

 

 

19.92

 

 

19.88

 

 

19.62

 

 

19.17

Shares outstanding, end of period (000's)

 

 

96,048

 

 

95,982

 

 

95,904

 

 

96,333

 

 

98,407

Dividend payout ratio (1) (5)

 

 

27.49%

 

 

42.86%

 

 

19.09%

 

 

9.43%

 

 

22.30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

4.15%

 

 

4.23%

 

 

4.03%

 

 

4.80%

 

 

4.21%

Net interest margin (taxable equivalent) (4):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

4.16%

 

 

4.24%

 

 

4.05%

 

 

4.81%

 

 

4.23%

Impact of purchase accounting

 

 

51 bps

 

 

60 bps

 

 

51 bps

 

 

112 bps

 

 

67 bps

Accretion of discount on loans ($000's)

 

 

9,867

 

 

12,642

 

 

10,541

 

 

23,164

 

 

12,098

Non-covered net charge-offs (recoveries) ($000's)

 

 

(1,312)

 

 

4,635

 

 

908

 

 

842

 

 

238

Return on average assets (1)

 

 

1.31%

 

 

-0.08%

 

 

0.94%

 

 

1.63%

 

 

0.94%

Fee income ratio

 

 

10.51%

 

 

10.22%

 

 

11.33%

 

 

19.97%

 

 

13.13%

Efficiency ratio

 

 

61.32%

 

 

60.18%

 

 

62.29%

 

 

48.96%

 

 

64.36%

Employees' compensation and benefits ($000's)

 

 

30,811

 

 

31,159

 

 

30,810

 

 

31,790

 

 

31,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-Dealer Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue (6)

 

 

81,097

 

 

114,326

 

 

103,633

 

 

103,159

 

 

91,039

Employees' compensation and benefits ($000's)

 

 

52,265

 

 

70,169

 

 

60,365

 

 

62,840

 

 

57,240

Variable compensation expense ($000's)

 

 

39,383

 

 

41,239

 

 

35,085

 

 

36,556

 

 

30,808

Compensation as a % of net revenue

 

 

64.4%

 

 

61.4%

 

 

58.2%

 

 

60.9%

 

 

62.9%

Pre-tax margin

 

 

4.44%

 

 

16.73%

 

 

19.49%

 

 

15.33%

 

 

10.45%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Origination Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loan originations - volume ($000's):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home purchases

 

 

2,358,692

 

 

2,870,864

 

 

3,332,441