Toggle SGML Header (+)


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):    July 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 July 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 June 30, 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 July 26, 2018, the Board of Directors of the Company declared a quarterly cash dividend of $0.07 per common share, payable on August 31, 2018, to stockholders of record as of the close of business on August 15, 2018. 

 

Additionally, on July 26, 2018, the Board of Directors of the Company authorized an increase to the aggregate amount of common stock the Company may repurchase under the stock repurchase program originally authorized in January 2018, to $100.0 million, an increase of $50.0 million. The stock repurchase program expires in January 2019 and is inclusive of repurchases to offset dilution related to grants of stock-based compensation. Under the program, the Company is authorized to repurchase its outstanding common stock in the open market or through privately negotiated transactions as permitted under Rule 10b-18 promulgated under the Securities Exchange Act of 1934. The extent to which the Company repurchases its shares and the timing of such repurchases will depend upon market conditions and other corporate considerations, as determined by the Company’s management team. The purchases will be funded from available cash balances.

 

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 July 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:

July 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 Second Quarter 2018

 

DALLAS — (BUSINESS WIRE) July 26, 2018 — Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the second quarter of 2018. Hilltop produced income of $33.1 million, or $0.35 per diluted share, for the second quarter of 2018, compared to $62.5 million, or $0.63 per diluted share, for the second quarter of 2017.  

 

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable on August 31, 2018, to all common stockholders of record as of the close of business on August 15, 2018.  Additionally,  pursuant to the stock repurchase program authorized by the Hilltop Board of Directors in January 2018, Hilltop has paid $38.8 million to repurchase 1,702,696 shares at an average price of $22.81 during the first six months of 2018. These shares were returned to the pool of authorized but unissued shares of common stock.

 

Furthermore, in July 2018, the Hilltop Board of Directors authorized an increase to the aggregate amount of common stock the Company may repurchase under the aforementioned stock repurchase program to $100.0 million, an increase of $50.0 million. The stock repurchase program expires in January 2019 and is inclusive of repurchases to offset dilution related to grants of stock-based compensation.  

 

Hilltop also received approval from federal regulators to proceed with its $85 million, all-cash acquisition of The Bank of River Oaks. The acquisition was approved by The Bank of River Oaks shareholders on May 10, 2018, and is expected to close on or about August 1, 2018. Once completed, The Bank of River Oaks will be merged into PlainsCapital Bank, and all customer accounts are expected to be converted to the PlainsCapital platform by the end of the year.

 

Jeremy Ford, Co-CEO of Hilltop, said, “We are very pleased to be moving forward with the closing of The Bank of River Oaks transaction and are excited about the strong prospects for future growth in our Houston franchise. Further, with the combination of dividends and share repurchases, we returned approximately $44 million to stockholders during the second quarter. Through strategic M&A, investments in our businesses to support profitable growth and the prudent return of capital, we are committed to delivering value for our stockholders.”

 

Alan White, Co-CEO of Hilltop, added, “Our teams are focused on delivering value to our clients and expanding relationships across the businesses. PlainsCapital Bank has continued to demonstrate strong credit quality, solid year-over-year deposit growth and balanced loan growth in a very competitive marketplace. While challenges in the mortgage industry persist, our teammates at PrimeLending are delivering higher market share through our purchase mortgage focused strategy and the business returned to profitability during the second quarter. HilltopSecurities’ diversified model continues to provide support to the franchise with revenue growth in its Retail, Clearing and Securities Lending businesses. National Lloyds’ performance for the quarter was substantially improved from 2017, as storm activity decreased versus normal seasonal trends.”

 

Second Quarter 2018 Highlights for Hilltop:

 

·

Hilltop’s annualized return on average assets and return on average equity for the second quarter of 2018 were 1.03% and 6.95%, respectively, compared to 1.94% and 13.24%, respectively, for the second quarter of 2017;

·

Hilltop’s book value per common share increased to $20.21 at June 30, 2018, compared to $20.02 at March 31, 2018; 

·

Hilltop’s total assets were $13.7 billion at June 30, 2018, compared to $13.3 billion at March 31, 2018;

·

Non-covered loans1 held for investment, net of allowance for loan losses, increased by 2.0% to $5.7 billion and covered loans2, net of allowance for loan losses, decreased by 5.2% to $159.0 million at June 30, 2018 compared to March 31, 2018;

·

Non-covered non-performing loans  increased to $42.0 million, or  0.50% of total non-covered loans, at June 30, 2018, compared to $39.4 million, or 0.52% of total non-covered loans, at March 31, 2018;

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


 

·

Energy classified and criticized loans decreased to $17.0  million at June 30, 2018,  compared to  $28.5 million at March 31, 2018;

·

Loans held for sale  increased by 38.6% from  March 31, 2018 to $2.0 billion at June 30, 2018;

·

Total deposits were $7.8 billion at June 30, 2018, compared to $8.0 billion at March 31, 2018;

·

Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio3 of 12.90% and a Common Equity Tier 1 Capital Ratio of 17.61% at June 30, 2018;

·

Hilltop’s net interest margin4 decreased to 3.46% for the second quarter of 2018, compared to 3.52% in the first quarter of 2018;

·

The provision (recovery) for loan losses was $0.3 million during the second quarter of 2018, compared to ($1.8) million in the first quarter of 2018;  

·

For the second quarter of 2018, noninterest income was $279.4 million, compared to $344.7 million in the second quarter of 2017,  an 18.9% decrease. The second quarter of 2017 included significant prior year non-recurring items related to the following: 

o

The recognition within corporate of a pre-tax net increase to other noninterest income of $11.6 million related to the resolution of the appraisal proceedings from the SWS Merger; and

o

The Bank recorded an insurance receivable and related increase to other noninterest income of $15.0 million from coverage provided by an insurance policy for forgery related to a single, large loan of $24.5 million previously charged-off during the second quarter of 2016; 

·

For the second quarter of 2018, noninterest expense was $338.5 million, compared to $366.3 million in the second quarter of 2017, a 7.6%  decrease; and

·

Hilltop’s effective tax rate decreased to 24.3% during the second quarter of 2018, compared to 29.1% during the second quarter of 2017, and included significant items related to the following:

o

Reduction of the corporate tax rate in 2018 from 35% to 21% pursuant to the enactment of the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”); and

o

Reduction in the second quarter of 2017 due to the previously mentioned nontaxable increase to noninterest income related to the SWS matter.


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 the quarter, excluding goodwill and intangible assets.

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

 

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


 

Consolidated Financial and Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(in 000's)

    

2018

    

2018

    

2017

    

2017

    

2017

Cash and due from banks

 

$

353,432

 

$

470,127

 

$

486,977

 

$

354,569

 

$

405,938

Federal funds sold

 

 

403

 

 

400

 

 

405

 

 

400

 

 

388

Securities purchased under agreements to resell

 

 

229,172

 

 

244,978

 

 

186,537

 

 

134,654

 

 

125,188

Assets segregated for regulatory purposes

 

 

128,417

 

 

198,170

 

 

186,578

 

 

207,336

 

 

167,565

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading, at fair value

 

 

634,197

 

 

756,151

 

 

730,685

 

 

676,411

 

 

471,485

Available for sale, at fair value

 

 

811,218

 

 

806,583

 

 

744,319

 

 

744,559

 

 

742,703

Held to maturity, at amortized cost

 

 

353,192

 

 

356,452

 

 

355,849

 

 

368,031

 

 

359,847

Equity, at fair value

 

 

21,218

 

 

20,876

 

 

21,241

 

 

20,983

 

 

20,503

 

 

 

1,819,825

 

 

1,940,062

 

 

1,852,094

 

 

1,809,984

 

 

1,594,538

Loans held for sale

 

 

1,953,562

 

 

1,409,634

 

 

1,715,357

 

 

1,939,321

 

 

2,000,257

Non-covered loans, net of unearned income

 

 

6,384,660

 

 

6,216,809

 

 

6,273,669

 

 

6,148,813

 

 

6,118,211

Allowance for non-covered loan losses

 

 

(59,996)

 

 

(60,371)

 

 

(60,957)

 

 

(58,779)

 

 

(59,208)

Non-covered loans, net

 

 

6,324,664

 

 

6,156,438

 

 

6,212,712

 

 

6,090,034

 

 

6,059,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Covered loans, net of allowance for covered loan losses

 

 

158,996

 

 

167,781

 

 

179,400

 

 

188,269

 

 

205,877

Broker-dealer and clearing organization receivables

 

 

1,614,951

 

 

1,660,720

 

 

1,464,378

 

 

1,672,123

 

 

1,552,525

Premises and equipment, net

 

 

172,911

 

 

173,637

 

 

177,577

 

 

176,281

 

 

183,994

FDIC indemnification asset

 

 

23,525

 

 

25,458

 

 

29,340

 

 

33,143

 

 

40,304

Covered other real estate owned

 

 

34,895

 

 

35,777

 

 

36,744

 

 

40,343

 

 

42,304

Other assets

 

 

589,897

 

 

576,567

 

 

549,447

 

 

596,095

 

 

618,368

Goodwill

 

 

251,808

 

 

251,808

 

 

251,808

 

 

251,808

 

 

251,808

Other intangible assets, net

 

 

32,716

 

 

34,569

 

 

36,432

 

 

38,440

 

 

40,516

Total assets

 

$

13,689,174

 

$

13,346,126

 

$

13,365,786

 

$

13,532,800

 

$

13,288,573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non interest-bearing

 

$

2,468,332

 

$

2,565,825

 

$

2,411,849

 

$

2,279,633

 

$

2,251,208

Interest-bearing

 

 

5,345,290

 

 

5,393,897

 

 

5,566,270

 

 

5,383,814

 

 

5,323,414

Total deposits

 

 

7,813,622

 

 

7,959,722

 

 

7,978,119

 

 

7,663,447

 

 

7,574,622

Broker-dealer and clearing organization payables

 

 

1,409,904

 

 

1,504,172

 

 

1,287,563

 

 

1,517,698

 

 

1,395,314

Short-term borrowings

 

 

1,610,735

 

 

1,064,325

 

 

1,206,424

 

 

1,477,201

 

 

1,515,069

Securities sold, not yet purchased, at fair value

 

 

251,581

 

 

255,551

 

 

232,821

 

 

173,509

 

 

149,869

Notes payable

 

 

227,736

 

 

202,700

 

 

208,809

 

 

300,196

 

 

300,283

Junior subordinated debentures

 

 

67,012

 

 

67,012

 

 

67,012

 

 

67,012

 

 

67,012

Other liabilities

 

 

392,171

 

 

367,188

 

 

470,231

 

 

424,381

 

 

393,351

Total liabilities

 

 

11,772,761

 

 

11,420,670

 

 

11,450,979

 

 

11,623,444

 

 

11,395,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

946

 

 

960

 

 

960

 

 

959

 

 

963

Additional paid-in capital

 

 

1,502,105

 

 

1,526,867

 

 

1,526,369

 

 

1,525,169

 

 

1,529,903

Accumulated other comprehensive income (loss)

 

 

(11,846)

 

 

(9,698)

 

 

(394)

 

 

2,585

 

 

2,112

Retained earnings

 

 

419,683

 

 

404,260

 

 

384,545

 

 

376,873

 

 

356,564

Deferred compensation employee stock trust, net

 

 

857

 

 

857

 

 

848

 

 

840

 

 

845

Employee stock trust

 

 

(252)

 

 

(254)

 

 

(247)

 

 

(241)

 

 

(248)

Total Hilltop stockholders' equity

 

 

1,911,493

 

 

1,922,992

 

 

1,912,081

 

 

1,906,185

 

 

1,890,139

Noncontrolling interests

 

 

4,920

 

 

2,464

 

 

2,726

 

 

3,171

 

 

2,914

Total stockholders' equity

 

 

1,916,413

 

 

1,925,456

 

 

1,914,807

 

 

1,909,356

 

 

1,893,053

Total liabilities & stockholders' equity

 

$

13,689,174

 

$

13,346,126

 

$

13,365,786

 

$

13,532,800

 

$

13,288,573

 

 

 

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Consolidated Income Statements

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

(in 000's, except per share data)

    

2018

    

2018

    

2017

    

2017

    

2017

    

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

103,924

 

$

99,944

 

$

105,658

 

$

102,546

 

$

113,793

 

Securities borrowed

 

 

17,486

 

 

16,300

 

 

11,994

 

 

11,404

 

 

9,597

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

12,516

 

 

10,953

 

 

10,824

 

 

10,214

 

 

8,833

 

Tax-exempt

 

 

1,697

 

 

1,772

 

 

1,717

 

 

1,471

 

 

1,375

 

Other

 

 

4,417

 

 

4,391

 

 

3,472

 

 

3,309

 

 

2,708

 

Total interest income

 

 

140,040

 

 

133,360

 

 

133,665

 

 

128,944

 

 

136,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

10,136

 

 

8,675

 

 

7,700

 

 

6,841

 

 

5,464

 

Securities loaned

 

 

15,075

 

 

13,739

 

 

9,581

 

 

8,935

 

 

7,481

 

Short-term borrowings

 

 

6,466

 

 

4,043

 

 

4,118

 

 

4,567

 

 

3,648

 

Notes payable

 

 

2,437

 

 

2,497

 

 

2,611

 

 

2,680

 

 

2,826

 

Junior subordinated debentures

 

 

918

 

 

822

 

 

787

 

 

774

 

 

744

 

Other

 

 

160

 

 

164

 

 

176

 

 

167

 

 

167

 

Total interest expense

 

 

35,192

 

 

29,940

 

 

24,973

 

 

23,964

 

 

20,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

104,848

 

 

103,420

 

 

108,692

 

 

104,980

 

 

115,976

 

Provision (recovery) for loan losses

 

 

340

 

 

(1,807)

 

 

5,453

 

 

1,260

 

 

5,853

 

Net interest income after provision (recovery) for loan losses

 

 

104,508

 

 

105,227

 

 

103,239

 

 

103,720

 

 

110,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains from sale of loans and other mortgage production income

 

 

132,478

 

 

105,767

 

 

122,132

 

 

138,498

 

 

153,688

 

Mortgage loan origination fees

 

 

29,318

 

 

20,626

 

 

23,156

 

 

25,256

 

 

25,976

 

Securities commissions and fees

 

 

38,320

 

 

38,717

 

 

40,868

 

 

38,735

 

 

37,804

 

Investment and securities advisory fees and commissions

 

 

21,965

 

 

18,354

 

 

36,561

 

 

25,620

 

 

25,537

 

Net insurance premiums earned

 

 

34,105

 

 

34,315

 

 

35,645

 

 

34,493

 

 

36,020

 

Other

 

 

23,248

 

 

17,364

 

 

32,094

 

 

35,875

 

 

65,667

 

Total noninterest income

 

 

279,434

 

 

235,143

 

 

290,456

 

 

298,477

 

 

344,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employees' compensation and benefits

 

 

200,632

 

 

182,600

 

 

205,642

 

 

209,747

 

 

214,719

 

Occupancy and equipment, net

 

 

27,893

 

 

27,830

 

 

29,658

 

 

29,073

 

 

27,919

 

Professional services

 

 

26,020

 

 

24,704

 

 

24,220

 

 

25,560

 

 

26,696

 

Loss and loss adjustment expenses

 

 

24,409

 

 

15,532

 

 

8,583

 

 

31,234

 

 

33,184

 

Other

 

 

59,563

 

 

57,536

 

 

60,567

 

 

58,228

 

 

63,733

 

Total noninterest expense

 

 

338,517

 

 

308,202

 

 

328,670

 

 

353,842

 

 

366,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

45,425

 

 

32,168

 

 

65,025

 

 

48,355

 

 

88,564

 

Income tax expense

 

 

11,034

 

 

7,488

 

 

51,350

 

 

18,003

 

 

25,754

 

Net income

 

 

34,391

 

 

24,680

 

 

13,675

 

 

30,352

 

 

62,810

 

Less: Net income attributable to noncontrolling interest

 

 

1,311

 

 

239

 

 

247

 

 

146

 

 

334

 

Income attributable to Hilltop

 

$

33,080

 

$

24,441

 

$

13,428

 

$

30,206

 

$

62,476

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.35

 

$

0.25

 

$

0.14

 

$

0.31

 

$

0.64

 

Diluted

 

$

0.35

 

$

0.25

 

$

0.14

 

$

0.31

 

$

0.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.07

 

$

0.07

 

$

0.06

 

$

0.06

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

95,270

 

 

95,985

 

 

95,903

 

 

96,096

 

 

98,154

 

Diluted

 

 

95,358

 

 

96,146

 

 

96,080

 

 

96,306

 

 

98,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2018

Segment Results

 

 

 

 

 

 

 

Mortgage

    

 

    

 

 

    

All Other and

    

Hilltop

(in 000's)

    

Banking

    

Broker-Dealer

    

Origination

    

Insurance

    

Corporate

    

Eliminations

    

Consolidated

Net interest income (expense)

 

$

87,958

 

$

12,890

 

$

704

 

$

793

 

$

(2,482)

 

$

4,985

 

$

104,848

Provision for loan losses

 

 

 —

 

 

340

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

340

Noninterest income

 

 

10,644

 

 

73,589

 

 

162,759

 

 

36,546

 

 

1,436

 

 

(5,540)

 

 

279,434

Noninterest expense

 

 

65,542

 

 

77,967

 

 

150,026

 

 

39,712

 

 

5,340

 

 

(70)

 

 

338,517

Income (loss) before income taxes

 

$

33,060

 

$

8,172

 

$

13,437

 

$

(2,373)

 

$

(6,386)

 

$

(485)

 

$

45,425

 

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

Selected Financial Data

    

2018

    

2018

    

2017

    

2017

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hilltop Consolidated:

 

 

   

 

 

   

 

 

 

 

 

 

 

 

 

Return on average stockholders' equity (1)

 

 

6.95%

 

 

5.19%

 

 

2.78%

 

 

6.32%

 

 

13.24%

Return on average assets (1)

 

 

1.03%

 

 

0.77%

 

 

0.41%

 

 

0.90%

 

 

1.94%

Net interest margin (2) (3)

 

 

3.46%

 

 

3.52%

 

 

3.57%

 

 

3.44%

 

 

3.98%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

3.47%

 

 

3.53%

 

 

3.59%

 

 

3.46%

 

 

3.99%

Impact of purchase accounting

 

 

29 bps

 

 

36 bps

 

 

43 bps

 

 

37 bps

 

 

82 bps

Book value per common share ($)

 

 

20.21

 

 

20.02

 

 

19.92

 

 

19.88

 

 

19.62

Shares outstanding, end of period (000's)

 

 

94,571

 

 

96,048

 

 

95,982

 

 

95,904

 

 

96,333

Dividend payout ratio (1) (5)

 

 

20.16%

 

 

27.49%

 

 

42.86%

 

 

19.09%

 

 

9.43%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

4.11%

 

 

4.15%

 

 

4.23%

 

 

4.03%

 

 

4.80%

Net interest margin (taxable equivalent) (4):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

4.12%

 

 

4.16%

 

 

4.24%

 

 

4.05%

 

 

4.81%

Impact of purchase accounting

 

 

42 bps

 

 

51 bps

 

 

60 bps

 

 

51 bps

 

 

112 bps

Accretion of discount on loans ($000's)

 

 

8,343

 

 

9,867

 

 

12,642

 

 

10,541

 

 

23,164

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

 

 

1,510

 

 

(1,312)

 

 

4,635

 

 

908

 

 

842

Return on average assets (1)

 

 

1.09%

 

 

1.31%

 

 

-0.08%

 

 

0.94%

 

 

1.63%

Fee income ratio

 

 

10.79%

 

 

10.51%

 

 

10.22%

 

 

11.33%

 

 

19.97%

Efficiency ratio

 

 

66.47%

 

 

61.32%

 

 

60.18%

 

 

62.29%

 

 

48.96%

Employees' compensation and benefits ($000's)

 

 

32,442

 

 

30,811

 

 

31,159

 

 

30,810

 

 

31,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-Dealer Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue (6)

 

 

86,479

 

 

81,097

 

 

114,326

 

 

103,633

 

 

103,159

Employees' compensation and benefits ($000's)

 

 

52,418

 

 

52,265

 

 

70,169

 

 

60,365

 

 

62,840

Variable compensation expense ($000's)

 

 

26,036

 

 

24,594

 

 

41,239

 

 

35,085

 

 

36,556

Compensation as a % of net revenue

 

 

60.6%

 

 

64.4%

 

 

61.4%

 

 

58.2%

 

 

60.9%

Pre-tax margin

 

 

9.45%

 

 

4.44%

 

 

16.73%

 

 

19.49%

 

 

15.33%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Origination Segment: