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Section 1: 8-K (8-K)

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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):    January 24, 2019

 

 

 

 

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 January 24, 2019,  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 and year ended December 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 January 24, 2019, the Board of Directors of the Company declared a quarterly cash dividend of $0.08 per common share, payable on February 28, 2019, to stockholders of record as of the close of business on February 15, 2019. 

 

Additionally, on January 24, 2019, the Board of Directors of the Company authorized a new stock repurchase program through January 2020. Under the program, the Company is authorized to repurchase, in the aggregate, up to $50.0 million of its outstanding common stock in open-market purchases 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 and include the repurchase of common shares to offset issuances under the employee compensation plan.

 

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 January 24, 2019 (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:

January 24, 2019

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)

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Exhibit 99.1

 

 

Investor Relations Contact:

 

Isabell Novakov

 

214-252-4029

 

inovakov@hilltop-holdings.com

 

Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2018

 

DALLAS — (BUSINESS WIRE) January 24, 2019 — Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the fourth quarter and full year 2018. Hilltop produced income to common stockholders of $28.1 million, or $0.30 per diluted share, for the fourth quarter of 2018, compared to $13.4 million, or $0.14 per diluted share, for the fourth quarter of 2017.  Income to common stockholders for the full year 2018 was $121.4 million, or $1.28 per diluted share, compared to $132.5 million, or $1.36 per diluted share, for the full year 2017. Hilltop’s financial results include the impact of the enactment of the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”), which significantly contributed to reductions in Hilltop’s effective tax rates during the fourth quarter and full year 2018, compared to the same periods in 2017.

 

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.08 per common share, a 14.3% increase from the prior quarter, payable on February 28, 2019, to all common stockholders of record as of the close of business on February 15, 2019.  Additionally,  Hilltop paid $59.0 million to repurchase 2,729,568 shares at an average price of $21.61 during 2018 pursuant to its stock repurchase program. As this stock repurchase program expired in January 2019,  the Hilltop Board of Directors authorized a new stock repurchase program through January 2020, under which Hilltop may repurchase, in the aggregate, up to $50.0 million of its outstanding common stock. Share repurchase amounts include the repurchase of common shares to offset issuances under the employee compensation plan.

 

Jeremy Ford, Co-CEO of Hilltop, said,  “During 2018, Hilltop made significant progress on a number of key strategic priorities, including the acquisition and integration of The Bank of River Oaks, which continues to outperform our expectations. We also continued to execute on our enhanced capital program in which Hilltop distributed $86 million through a combination of share repurchases and dividends to our shareholders and began executing our platform for growth objectives through the deployment of shared services across the franchise. While our businesses experienced some headwinds throughout the year, we believe our focus on prudent diversified growth, sound capital management and efficient execution positions us well for 2019.”

 

Alan White, Co-CEO of Hilltop, added, “In 2018, our associates remained intensely focused on serving our clients, growing our businesses and managing risks. PlainsCapital delivered solid loan and deposit growth and improved credit quality versus 2017. The mortgage business remained pressured throughout 2018, but we believe that our client-focused purchase mortgage strategy positions us well to compete in the future as market capacity rationalizes. HilltopSecurities continues to focus on growing its Public Finance business and delivered solid results in its Retail and Clearing businesses during the year. National Lloyds was profitable in 2018 and showed improvement in its expense ratio.”

 

Fourth Quarter 2018 Highlights for Hilltop:

 

·

In October 2018, the Bank and the FDIC entered into a Termination Agreement pursuant to which all rights and obligations under each of the loss-share agreements were resolved and terminated1;

·

During the fourth quarter of 2018, Hilltop’s merchant bank subsidiary recognized a $5.3 million pre-tax gain from the sale of a $10.0 million investment made in December 2017,  and  recorded a $2.5 million charge associated with a legacy merchant bank equity investment in conjunction with its periodic fair value assessment;

·

Hilltop’s annualized return on average assets and return on average equity for the fourth quarter of 2018 were 0.86% and 5.76%, respectively, compared to 0.41% and 2.78%, respectively, for the fourth quarter of 2017;

·

Hilltop’s book value per common share increased to $20.83 at December 31, 2018, compared to $20.51 at September 30, 2018; 

·

Hilltop’s total assets were $13.7 billion at December 31, 2018, compared to $13.8 billion at September 30, 2018;

·

Loans2, net of allowance for loan losses, remained stable at $6.3 billion compared to September 30, 2018;

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·

Non-performing loans decreased to $34.0 million, or 0.41% of combined loans held for sale and investment at December 31, 2018, compared to $42.5 million, or 0.50%, at September 30, 2018;

·

Loans held for sale  decreased by 8.6%  from  September 30, 2018 to $1.4 billion at December 31, 2018;

·

Total deposits were $8.5 billion at December 31, 2018, compared to $8.3 billion at September 30, 2018;

·

Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio3 of 12.53% and a Common Equity Tier 1 Capital Ratio of 16.58% at December 31, 2018;

·

Hilltop’s net interest margin4 increased to 3.75% for the fourth quarter of 2018, compared to 3.48% in the third quarter of 2018;

·

The provision (recovery) for loan losses was $6.9 million during the fourth quarter of 2018, compared to ($0.4) million in the third quarter of 2018;  

·

For the fourth quarter of 2018, noninterest income was $238.5 million, compared to $290.5 million in the fourth quarter of 2017,  a 17.9%  decrease;

·

For the fourth quarter of 2018, noninterest expense was $310.8 million, compared to $328.7 million in the fourth quarter of 2017,  a  5.4%  decrease; and

·

Hilltop’s effective tax rates decreased to 23.2% and 21.8% during the fourth quarter and full year 2018, respectively, compared to 79.0% and 45.3% during the same periods in 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 Legislation; and

o

A non-cash, non-recurring charge of $28.4 million in the fourth quarter of 2017 primarily attributable to the revaluation of deferred tax assets as a result of the enactment of the Tax Legislation. Deferred tax asset amounts recorded in December 2017 were final as of September 30, 2018.

 


1     As a result of the termination of the loss-share agreements, loans which were previously referred to as either “covered loans” if covered by the loss-share agreements or otherwise “non-covered loans” are collectively referred to as loans held for investment within the consolidated balance sheets. In addition, other real estate owned previously covered by the loss-share agreements and the FDIC indemnification asset are included in other assets within the consolidated balance sheets for all periods presented.  The presentation of loan-related tables and the calculation of loan-related measures for all periods presented have been modified to reflect this change for purposes of comparability.

2    “Loans” reflect loans held for investment excluding broker-dealer loans, net of allowance for loan losses, of $578.2 million and $593.2 million at December 31, 2018 and September 30, 2018, respectively.

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.

 

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Consolidated Financial and Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in 000's)

    

2018

    

2018

    

2018

    

2018

    

2017

Cash and due from banks

 

$

644,073

 

$

405,682

 

$

353,432

 

$

470,127

 

$

486,977

Federal funds sold

 

 

400

 

 

468

 

 

403

 

 

400

 

 

405

Assets segregated for regulatory purposes

 

 

133,993

 

 

220,115

 

 

128,417

 

 

198,170

 

 

186,578

Securities purchased under agreements to resell

 

 

61,611

 

 

164,656

 

 

229,172

 

 

244,978

 

 

186,537

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading, at fair value

 

 

745,466

 

 

660,314

 

 

634,197

 

 

756,151

 

 

730,685

Available for sale, at fair value

 

 

875,658

 

 

874,496

 

 

811,218

 

 

806,583

 

 

744,319

Held to maturity, at amortized cost

 

 

351,012

 

 

348,163

 

 

353,192

 

 

356,452

 

 

355,849

Equity, at fair value

 

 

19,679

 

 

21,555

 

 

21,218

 

 

20,876

 

 

21,241

 

 

 

1,991,815

 

 

1,904,528

 

 

1,819,825

 

 

1,940,062

 

 

1,852,094

Loans held for sale

 

 

1,393,246

 

 

1,524,980

 

 

1,953,562

 

 

1,409,634

 

 

1,715,357

Loans held for investment, net of unearned income

 

 

6,930,458

 

 

6,940,306

 

 

6,545,630

 

 

6,387,413

 

 

6,455,798

Allowance for loan losses

 

 

(59,486)

 

 

(60,152)

 

 

(61,970)

 

 

(63,194)

 

 

(63,686)

Loans held for investment, net

 

 

6,870,972

 

 

6,880,154

 

 

6,483,660

 

 

6,324,219

 

 

6,392,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-dealer and clearing organization receivables

 

 

1,440,287

 

 

1,491,507

 

 

1,614,951

 

 

1,660,720

 

 

1,464,378

Premises and equipment, net

 

 

237,373

 

 

236,172

 

 

172,911

 

 

173,637

 

 

177,577

Other assets

 

 

580,362

 

 

604,445

 

 

648,317

 

 

637,802

 

 

615,531

Goodwill

 

 

291,435

 

 

291,435

 

 

251,808

 

 

251,808

 

 

251,808

Other intangible assets, net

 

 

38,005

 

 

40,394

 

 

32,716

 

 

34,569

 

 

36,432

Total assets

 

$

13,683,572

 

$

13,764,536

 

$

13,689,174

 

$

13,346,126

 

$

13,365,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non interest-bearing

 

$

2,560,750

 

$

2,525,677

 

$

2,468,332

 

$

2,565,825

 

$

2,411,849

Interest-bearing

 

 

5,975,406

 

 

5,764,556

 

 

5,345,290

 

 

5,393,897

 

 

5,566,270

Total deposits

 

 

8,536,156

 

 

8,290,233

 

 

7,813,622

 

 

7,959,722

 

 

7,978,119

Broker-dealer and clearing organization payables

 

 

1,294,925

 

 

1,396,401

 

 

1,409,904

 

 

1,504,172

 

 

1,287,563

Short-term borrowings

 

 

1,065,807

 

 

1,216,649

 

 

1,610,735

 

 

1,064,325

 

 

1,206,424

Securities sold, not yet purchased, at fair value

 

 

81,667

 

 

179,582

 

 

251,581

 

 

255,551

 

 

232,821

Notes payable

 

 

228,872

 

 

220,192

 

 

227,736

 

 

202,700

 

 

208,809

Junior subordinated debentures

 

 

67,012

 

 

67,012

 

 

67,012

 

 

67,012

 

 

67,012

Other liabilities

 

 

435,240

 

 

430,309

 

 

392,171

 

 

367,188

 

 

470,231

Total liabilities

 

 

11,709,679

 

 

11,800,378

 

 

11,772,761

 

 

11,420,670

 

 

11,450,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

936

 

 

946

 

 

946

 

 

960

 

 

960

Additional paid-in capital

 

 

1,489,816

 

 

1,504,467

 

 

1,502,105

 

 

1,526,867

 

 

1,526,369

Accumulated other comprehensive loss

 

 

(8,627)

 

 

(14,722)

 

 

(11,846)

 

 

(9,698)

 

 

(394)

Retained earnings

 

 

466,737

 

 

448,923

 

 

419,683

 

 

404,260

 

 

384,545

Deferred compensation employee stock trust, net

 

 

825

 

 

860

 

 

857

 

 

857

 

 

848

Employee stock trust

 

 

(217)

 

 

(252)

 

 

(252)

 

 

(254)

 

 

(247)

Total Hilltop stockholders' equity

 

 

1,949,470

 

 

1,940,222

 

 

1,911,493

 

 

1,922,992

 

 

1,912,081

Noncontrolling interests

 

 

24,423

 

 

23,936

 

 

4,920

 

 

2,464

 

 

2,726

Total stockholders' equity

 

 

1,973,893

 

 

1,964,158

 

 

1,916,413

 

 

1,925,456

 

 

1,914,807

Total liabilities & stockholders' equity

 

$

13,683,572

 

$

13,764,536

 

$

13,689,174

 

$

13,346,126

 

$

13,365,786

 

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Three Months Ended

 

Year Ended

Consolidated Income Statements

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

(in 000's, except per share data)

    

2018

    

2018

    

2017

    

2018

    

2017

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

119,322

 

$

113,535

 

$

105,658

 

$

436,725

 

$

411,988

Securities borrowed

 

 

16,782

 

 

16,346

 

 

11,994

 

 

66,914

 

 

41,048

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Taxable

 

 

15,512

 

 

11,994

 

 

10,824

 

 

50,975

 

 

36,472

 Tax-exempt

 

 

1,648

 

 

1,717

 

 

1,717

 

 

6,834

 

 

5,807

Other

 

 

4,438

 

 

4,734

 

 

3,472

 

 

17,980

 

 

11,841

Total interest income

 

 

157,702

 

 

148,326

 

 

133,665

 

 

579,428

 

 

507,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

14,838

 

 

12,353

 

 

7,700

 

 

46,002

 

 

24,695

Securities loaned

 

 

13,935

 

 

13,984

 

 

9,581

 

 

56,733

 

 

32,337

Short-term borrowings

 

 

7,476

 

 

7,831

 

 

4,118

 

 

25,816

 

 

13,751

Notes payable

 

 

2,627

 

 

2,702

 

 

2,611

 

 

10,263

 

 

10,931

Junior subordinated debentures

 

 

968

 

 

955

 

 

787

 

 

3,663

 

 

3,016

Other

 

 

143

 

 

160

 

 

176

 

 

627

 

 

678

Total interest expense

 

 

39,987

 

 

37,985

 

 

24,973

 

 

143,104

 

 

85,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

117,715

 

 

110,341

 

 

108,692

 

 

436,324

 

 

421,748

Provision (recovery) for loan losses

 

 

6,926

 

 

(371)

 

 

5,453

 

 

5,088

 

 

14,271

Net interest income after provision (recovery) for loan losses

 

 

110,789

 

 

110,712

 

 

103,239

 

 

431,236

 

 

407,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains from sale of loans and other mortgage production income

 

 

90,628

 

 

116,243

 

 

122,132

 

 

445,116

 

 

538,468

Mortgage loan origination fees

 

 

26,615

 

 

27,004

 

 

23,156

 

 

103,563

 

 

93,944

Securities commissions and fees

 

 

36,984

 

 

36,968

 

 

40,868

 

 

150,989

 

 

156,464

Investment and securities advisory fees and commissions

 

 

26,260

 

 

23,487

 

 

36,561

 

 

90,066

 

 

109,920

Net insurance premiums earned

 

 

34,146

 

 

34,185

 

 

35,645

 

 

136,751

 

 

142,298

Other

 

 

23,883

 

 

31,810

 

 

32,094

 

 

96,305

 

 

163,970

Total noninterest income

 

 

238,516

 

 

269,697

 

 

290,456

 

 

1,022,790

 

 

1,205,064

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employees' compensation and benefits

 

 

179,881

 

 

205,575

 

 

205,642

 

 

768,688

 

 

816,994

Occupancy and equipment, net

 

 

30,512

 

 

29,015

 

 

29,658

 

 

115,207

 

 

113,943

Professional services

 

 

26,793

 

 

27,984

 

 

24,220

 

 

105,752

 

 

101,521

Loss and loss adjustment expenses

 

 

20,694

 

 

18,712

 

 

8,583

 

 

79,347

 

 

94,701

Other

 

 

52,939

 

 

54,425

 

 

60,567

 

 

224,255

 

 

242,096

Total noninterest expense

 

 

310,819

 

 

335,711

 

 

328,670

 

 

1,293,249

 

 

1,369,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

38,486

 

 

44,698

 

 

65,025

 

 

160,777

 

 

243,286

Income tax expense

 

 

8,928

 

 

7,600

 

 

51,350

 

 

35,050

 

 

110,142

Net income

 

 

29,558

 

 

37,098

 

 

13,675

 

 

125,727

 

 

133,144

Less: Net income attributable to noncontrolling interest

 

 

1,443

 

 

1,293

 

 

247

 

 

4,286

 

 

600

Income attributable to Hilltop

 

$

28,115

 

$

35,805

 

$

13,428

 

$

121,441

 

$

132,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.30

 

$

0.38

 

$

0.14

 

$

1.28

 

$

1.36

Diluted

 

$

0.30

 

$

0.38

 

$

0.14

 

$

1.28

 

$

1.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.07

 

$

0.07

 

$

0.06

 

$

0.28

 

$

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

94,092

 

 

94,554

 

 

95,903

 

 

94,969

 

 

97,137

Diluted

 

 

94,130

 

 

94,610

 

 

96,080

 

 

95,067

 

 

97,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

Segment Results

 

 

 

 

 

 

 

Mortgage

    

 

    

 

 

    

All Other and

    

Hilltop

(in 000's)

    

Banking

    

Broker-Dealer

    

Origination

    

Insurance

    

Corporate

    

Eliminations

    

Consolidated

Net interest income (expense)

 

$

101,216

 

$

13,005

 

$

(523)

 

$

712

 

$

(1,328)

 

$

4,633

 

$

117,715

Provision for loan losses

 

 

6,850

 

 

76

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

6,926

Noninterest income

 

 

11,400

 

 

76,745

 

 

117,598

 

 

34,278

 

 

3,646

 

 

(5,151)

 

 

238,516

Noninterest expense

 

 

63,951

 

 

78,785

 

 

119,738

 

 

35,389

 

 

13,229

 

 

(273)

 

 

310,819

Income (loss) before income taxes

 

$

41,815

 

$

10,889

 

$

(2,663)

 

$

(399)

 

$

(10,911)

 

$

(245)

 

$

38,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018

 

 

 

 

 

 

 

 

Mortgage

    

 

    

 

 

    

All Other and

    

Hilltop

(in 000's)

    

Banking

    

Broker-Dealer

    

Origination

    

Insurance

    

Corporate

    

Eliminations

    

Consolidated

Net interest income (expense)

 

$

370,732

 

$

50,878

 

$

1,485

 

$

3,025

 

$

(9,176)

 

$

19,380

 

$

436,324

Provision (recovery) for loan losses

 

 

5,319

 

 

(231)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

5,088

Noninterest income

 

 

43,588

 

 

301,714

 

 

551,860

 

 

142,565

 

 

4,893

 

 

(21,830)

 

 

1,022,790

Noninterest expense

 

 

256,577

 

 

320,241

 

 

540,474

 

 

139,921

 

 

36,628

 

 

(592)

 

 

1,293,249

Income (loss) before income taxes

 

$

152,424

 

$

32,582

 

$

12,871

 

$

5,669

 

$

(40,911)

 

$

(1,858)

 

$

160,777

 

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

    

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

    

December 31,

 

December 31,

Selected Financial Data

    

2018

    

2018

    

2017

    

2018

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hilltop Consolidated:

 

 

   

 

 

   

 

 

 

 

 

 

 

 

 

Return on average stockholders' equity (1)

 

 

5.76%

 

 

7.41%

 

 

2.78%

 

 

6.33%

 

 

7.00%

Return on average assets (1)

 

 

0.86%

 

 

1.07%

 

 

0.41%

 

 

0.93%

 

 

1.03%

Net interest margin (2)

 

 

3.75%

 

 

3.48%

 

 

3.57%

 

 

3.55%

 

 

3.61%

Net interest margin (taxable equivalent) (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

3.76%

 

 

3.49%

 

 

3.59%

 

 

3.56%

 

 

3.63%

Impact of purchase accounting

 

 

43 bps

 

 

28 bps

 

 

43 bps

 

 

34 bps

 

 

53 bps

Book value per common share ($)

 

 

20.83

 

 

20.51

 

 

19.92

 

 

20.83

 

 

19.92

Shares outstanding, end of period (000's)

 

 

93,610

 

 

94,594

 

 

95,982

 

 

93,610

 

 

95,982

Dividend payout ratio (1) (4)

 

 

23.43%

 

 

18.48%

 

 

42.86%

 

 

21.90%

 

 

17.59%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

4.50%

 

 

4.13%

 

 

4.23%

 

 

4.23%

 

 

4.31%

Net interest margin (taxable equivalent) (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

4.51%

 

 

4.14%

 

 

4.24%

 

 

4.24%

 

 

4.33%

Impact of purchase accounting

 

 

61 bps

 

 

39 bps

 

 

60 bps

 

 

48 bps

 

 

72 bps

Accretion of discount on loans ($000's)

 

 

12,737

 

 

8,147

 

 

12,642

 

 

39,094