Hilltop Holdings Inc. Announces Financial Results for Second Quarter 2019

Company Release - 7/25/2019 5:15 PM ET

DALLAS--(BUSINESS WIRE)-- Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the second quarter of 2019. Hilltop produced income to common stockholders of $57.8 million, or $0.62 per diluted share, for the second quarter of 2019, compared to $33.1 million, or $0.35 per diluted share, for the second quarter of 2018.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.08 per common share payable on August 30, 2019, to all common stockholders of record as of the close of business on August 15, 2019. Additionally, pursuant to the stock repurchase program authorized by the Hilltop Board of Directors in January 2019, Hilltop paid $25.0 million to repurchase 1,214,843 shares at an average price of $20.54 during the second quarter of 2019. These shares were returned to the pool of authorized but unissued shares of common stock. Aggregate repurchases of $25.0 million remain available under this program, which expires in January 2020. Share repurchase amounts include the repurchase of common shares to offset issuances under the employee compensation plan.

Jeremy Ford, CEO of Hilltop, said, “Our second quarter results demonstrate the strength and diversification of our franchise, as pre-tax contribution grew in our three largest businesses. At Hilltop Securities, our investments in Structured Finance and Capital Markets, combined with a supportive market environment, generated significant revenue and income growth. Total average loans held for investment grew by 11% from the second quarter of 2018 and credit quality remains sound. PrimeLending’s pre-tax contribution increased by 62% from the prior year, driven by our focus on profitable volume and cost management. While we are very pleased with the results from the first half of 2019, our team remains committed to generating long-term stockholder value by delivering prudent growth and executing on our platform efficiency initiatives.”

Second Quarter 2019 Highlights for Hilltop:

  • Hilltop’s annualized return on average assets and return on average equity for the second quarter of 2019 were 1.74% and 11.63%, respectively, compared to 1.03% and 6.95%, respectively, for the second quarter of 2018;
  • Hilltop’s book value per common share increased to $21.85 at June 30, 2019, compared to $21.23 at March 31, 2019;
  • Hilltop’s total assets were $14.3 billion at June 30, 2019, compared to $13.5 billion at March 31, 2019;
  • Loans1, net of allowance for loan losses, increased to $6.6 billion compared to $6.5 billion at March 31, 2019;
  • Non-performing loans were $32.0 million, or 0.36% of total loans at June 30, 2019, compared to $30.9 million, or 0.38% of total loans, at March 31, 2019;
  • Loans held for sale increased by 51.9% from March 31, 2019 to $1.6 billion at June 30, 2019;
  • Total deposits were $8.5 billion at June 30, 2019, compared to $8.3 billion at March 31, 2019;
  • Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio2 of 13.00% and a Common Equity Tier 1 Capital Ratio of 16.32% at June 30, 2019;
  • Hilltop’s net interest margin3 decreased to 3.49% for the second quarter of 2019, compared to 3.69% in the first quarter of 2019;
  • The provision (recovery) for loan losses was ($0.7) million during the second quarter of 2019, compared to $1.0 million in the first quarter of 2019;
  • For the second quarter of 2019, noninterest income was $312.9 million, compared to $279.4 million in the second quarter of 2018, a 12.0% increase;
  • For the second quarter of 2019, noninterest expense was $343.7 million, compared to $338.5 million in the second quarter of 2018, a 1.5% increase; and
  • Hilltop’s effective tax rate decreased to 23.1% during the second quarter of 2019, compared to 24.3% during the same period in 2018.

1

“Loans” reflect loans held for investment excluding broker-dealer loans, net of allowance for loan losses, of $570.3 million and $491.8 million at June 30, 2019 and March 31, 2019, respectively.

2

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

3

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

Consolidated Financial and Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(in 000's)

 

2019

 

2019

 

2018

 

2018

 

2018

Cash and due from banks

 

$

342,001

 

 

$

313,192

 

 

$

644,073

 

 

$

405,682

 

 

$

353,432

 

Federal funds sold

 

 

521

 

 

 

438

 

 

 

400

 

 

 

468

 

 

 

403

 

Assets segregated for regulatory purposes

 

 

151,271

 

 

 

156,851

 

 

 

133,993

 

 

 

220,115

 

 

 

128,417

 

Securities purchased under agreements to resell

 

 

50,660

 

 

 

65,205

 

 

 

61,611

 

 

 

164,656

 

 

 

229,172

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading, at fair value

 

 

601,524

 

 

 

703,295

 

 

 

745,466

 

 

 

660,314

 

 

 

634,197

 

Available for sale, at fair value

 

 

1,009,924

 

 

 

1,019,851

 

 

 

875,658

 

 

 

874,496

 

 

 

811,218

 

Held to maturity, at amortized cost

 

 

365,905

 

 

 

369,865

 

 

 

351,012

 

 

 

348,163

 

 

 

353,192

 

Equity, at fair value

 

 

19,592

 

 

 

19,343

 

 

 

19,679

 

 

 

21,555

 

 

 

21,218

 

 

 

 

1,996,945

 

 

 

2,112,354

 

 

 

1,991,815

 

 

 

1,904,528

 

 

 

1,819,825

 

Loans held for sale

 

 

1,609,477

 

 

 

1,059,280

 

 

 

1,393,246

 

 

 

1,524,980

 

 

 

1,953,562

 

Loans held for investment, net of unearned income

 

 

7,202,604

 

 

 

7,011,679

 

 

 

6,930,458

 

 

 

6,940,306

 

 

 

6,545,630

 

Allowance for loan losses

 

 

(55,177

)

 

 

(58,809

)

 

 

(59,486

)

 

 

(60,152

)

 

 

(61,970

)

Loans held for investment, net

 

 

7,147,427

 

 

 

6,952,870

 

 

 

6,870,972

 

 

 

6,880,154

 

 

 

6,483,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-dealer and clearing organization receivables

 

 

1,707,249

 

 

 

1,651,199

 

 

 

1,440,287

 

 

 

1,491,507

 

 

 

1,614,951

 

Premises and equipment, net

 

 

208,975

 

 

 

210,333

 

 

 

237,373

 

 

 

236,172

 

 

 

172,911

 

Operating lease right-of-use assets

 

 

123,832

 

 

 

108,806

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

602,143

 

 

 

591,442

 

 

 

580,362

 

 

 

604,445

 

 

 

648,317

 

Goodwill

 

 

291,435

 

 

 

291,435

 

 

 

291,435

 

 

 

291,435

 

 

 

251,808

 

Other intangible assets, net

 

 

33,934

 

 

 

35,965

 

 

 

38,005

 

 

 

40,394

 

 

 

32,716

 

Total assets

 

$

14,265,870

 

 

$

13,549,370

 

 

$

13,683,572

 

 

$

13,764,536

 

 

$

13,689,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non interest-bearing

 

$

2,598,253

 

 

$

2,490,144

 

 

$

2,560,750

 

 

$

2,525,677

 

 

$

2,468,332

 

Interest-bearing

 

 

5,864,826

 

 

 

5,807,975

 

 

 

5,975,406

 

 

 

5,764,556

 

 

 

5,345,290

 

Total deposits

 

 

8,463,079

 

 

 

8,298,119

 

 

 

8,536,156

 

 

 

8,290,233

 

 

 

7,813,622

 

Broker-dealer and clearing organization payables

 

 

1,531,891

 

 

 

1,490,227

 

 

 

1,294,925

 

 

 

1,396,401

 

 

 

1,409,904

 

Short-term borrowings

 

 

1,338,893

 

 

 

914,525

 

 

 

1,065,807

 

 

 

1,216,649

 

 

 

1,610,735

 

Securities sold, not yet purchased, at fair value

 

 

45,447

 

 

 

69,354

 

 

 

81,667

 

 

 

179,582

 

 

 

251,581

 

Notes payable

 

 

231,923

 

 

 

225,372

 

 

 

228,872

 

 

 

220,192

 

 

 

227,736

 

Operating lease liabilities

 

 

132,750

 

 

 

118,452

 

 

 

 

 

 

 

 

 

 

Junior subordinated debentures

 

 

67,012

 

 

 

67,012

 

 

 

67,012

 

 

 

67,012

 

 

 

67,012

 

Other liabilities

 

 

403,070

 

 

 

351,178

 

 

 

435,240

 

 

 

430,309

 

 

 

392,171

 

Total liabilities

 

 

12,214,065

 

 

 

11,534,239

 

 

 

11,709,679

 

 

 

11,800,378

 

 

 

11,772,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

928

 

 

 

938

 

 

 

936

 

 

 

946

 

 

 

946

 

Additional paid-in capital

 

 

1,473,599

 

 

 

1,491,585

 

 

 

1,489,816

 

 

 

1,504,467

 

 

 

1,502,105

 

Accumulated other comprehensive income (loss)

 

 

7,862

 

 

 

(1,062

)

 

 

(8,627

)

 

 

(14,722

)

 

 

(11,846

)

Retained earnings

 

 

544,275

 

 

 

499,452

 

 

 

466,737

 

 

 

448,923

 

 

 

419,683

 

Deferred compensation employee stock trust, net

 

 

788

 

 

 

827

 

 

 

825

 

 

 

860

 

 

 

857

 

Employee stock trust

 

 

(171

)

 

 

(213

)

 

 

(217

)

 

 

(252

)

 

 

(252

)

Total Hilltop stockholders' equity

 

 

2,027,281

 

 

 

1,991,527

 

 

 

1,949,470

 

 

 

1,940,222

 

 

 

1,911,493

 

Noncontrolling interests

 

 

24,524

 

 

 

23,604

 

 

 

24,423

 

 

 

23,936

 

 

 

4,920

 

Total stockholders' equity

 

 

2,051,805

 

 

 

2,015,131

 

 

 

1,973,893

 

 

 

1,964,158

 

 

 

1,916,413

 

Total liabilities & stockholders' equity

 

$

14,265,870

 

 

$

13,549,370

 

 

$

13,683,572

 

 

$

13,764,536

 

 

$

13,689,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Consolidated Income Statements

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

(in 000's, except per share data)

 

2019

 

2019

 

2018

 

2018

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

114,325

 

 

$

110,870

 

$

119,322

 

$

113,535

 

 

$

103,924

 

Securities borrowed

 

 

15,517

 

 

 

16,859

 

 

16,782

 

 

16,346

 

 

 

17,486

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

14,684

 

 

 

15,616

 

 

15,512

 

 

11,994

 

 

 

12,516

 

Tax-exempt

 

 

1,513

 

 

 

1,498

 

 

1,648

 

 

1,717

 

 

 

1,697

 

Other

 

 

4,017

 

 

 

5,197

 

 

4,438

 

 

4,734

 

 

 

4,417

 

Total interest income

 

 

150,056

 

 

 

150,040

 

 

157,702

 

 

148,326

 

 

 

140,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

18,036

 

 

 

17,106

 

 

14,838

 

 

12,353

 

 

 

10,136

 

Securities loaned

 

 

13,470

 

 

 

14,738

 

 

13,935

 

 

13,984

 

 

 

15,075

 

Short-term borrowings

 

 

6,897

 

 

 

5,471

 

 

7,476

 

 

7,831

 

 

 

6,466

 

Notes payable

 

 

2,629

 

 

 

2,641

 

 

2,627

 

 

2,702

 

 

 

2,437

 

Junior subordinated debentures

 

 

986

 

 

 

1,001

 

 

968

 

 

955

 

 

 

918

 

Other

 

 

162

 

 

 

152

 

 

143

 

 

160

 

 

 

160

 

Total interest expense

 

 

42,180

 

 

 

41,109

 

 

39,987

 

 

37,985

 

 

 

35,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

107,876

 

 

 

108,931

 

 

117,715

 

 

110,341

 

 

 

104,848

 

Provision (recovery) for loan losses

 

 

(672

)

 

 

951

 

 

6,926

 

 

(371

)

 

 

340

 

Net interest income after provision (recovery) for loan losses

 

 

108,548

 

 

 

107,980

 

 

110,789

 

 

110,712

 

 

 

104,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains from sale of loans and other mortgage production income

 

 

131,173

 

 

 

96,139

 

 

90,628

 

 

116,243

 

 

 

132,478

 

Mortgage loan origination fees

 

 

33,409

 

 

 

21,873

 

 

26,615

 

 

27,004

 

 

 

29,318

 

Securities commissions and fees

 

 

34,142

 

 

 

35,969

 

 

36,984

 

 

36,968

 

 

 

38,320

 

Investment and securities advisory fees and commissions

 

 

22,859

 

 

 

20,160

 

 

26,260

 

 

23,487

 

 

 

21,965

 

Net insurance premiums earned

 

 

33,466

 

 

 

33,203

 

 

34,146

 

 

34,185

 

 

 

34,105

 

Other

 

 

57,822

 

 

 

45,124

 

 

23,883

 

 

31,810

 

 

 

23,248

 

Total noninterest income

 

 

312,871

 

 

 

252,468

 

 

238,516

 

 

269,697

 

 

 

279,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employees' compensation and benefits

 

 

215,743

 

 

 

189,898

 

 

179,881

 

 

205,575

 

 

 

200,632

 

Occupancy and equipment, net

 

 

28,219

 

 

 

28,023

 

 

30,512

 

 

29,015

 

 

 

27,893

 

Professional services

 

 

23,753

 

 

 

22,942

 

 

26,793

 

 

27,984

 

 

 

26,020

 

Loss and loss adjustment expenses

 

 

24,981

 

 

 

14,926

 

 

20,694

 

 

18,712

 

 

 

24,409

 

Other

 

 

50,981

 

 

 

53,296

 

 

52,939

 

 

54,425

 

 

 

59,563

 

Total noninterest expense

 

 

343,677

 

 

 

309,085

 

 

310,819

 

 

335,711

 

 

 

338,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

77,742

 

 

 

51,363

 

 

38,486

 

 

44,698

 

 

 

45,425

 

Income tax expense

 

 

17,951

 

 

 

11,586

 

 

8,928

 

 

7,600

 

 

 

11,034

 

Net income

 

 

59,791

 

 

 

39,777

 

 

29,558

 

 

37,098

 

 

 

34,391

 

Less: Net income attributable to noncontrolling interest

 

 

1,980

 

 

 

991

 

 

1,443

 

 

1,293

 

 

 

1,311

 

Income attributable to Hilltop

 

$

57,811

 

 

$

38,786

 

$

28,115

 

$

35,805

 

 

$

33,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.62

 

 

$

0.41

 

$

0.30

 

$

0.38

 

 

$

0.35

 

Diluted

 

$

0.62

 

 

$

0.41

 

$

0.30

 

$

0.38

 

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.08

 

 

$

0.08

 

$

0.07

 

$

0.07

 

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

93,399

 

 

 

93,669

 

 

94,092

 

 

94,554

 

 

 

95,270

 

Diluted

 

 

93,418

 

 

 

93,669

 

 

94,130

 

 

94,610

 

 

 

95,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

Segment Results

 

 

 

 

 

 

 

Mortgage

 

 

 

 

 

 

All Other and

 

Hilltop

(in 000's)

 

Banking

 

Broker-Dealer

 

Origination

 

Insurance

 

Corporate

 

Eliminations

 

Consolidated

Net interest income (expense)

 

$

93,423

 

 

$

11,410

 

 

$

(1,031

)

 

$

592

 

 

$

(1,331

)

 

$

4,813

 

 

$

107,876

 

Provision (recovery) for loan losses

 

 

(670

)

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(672

)

Noninterest income

 

 

10,742

 

 

 

105,559

 

 

 

164,548

 

 

 

36,151

 

 

 

665

 

 

 

(4,794

)

 

 

312,871

 

Noninterest expense

 

 

58,251

 

 

 

94,870

 

 

 

141,721

 

 

 

39,589

 

 

 

9,274

 

 

 

(28

)

 

 

343,677

 

Income (loss) before income taxes

 

$

46,584

 

 

$

22,101

 

 

$

21,796

 

 

$

(2,846

)

 

$

(9,940

)

 

$

47

 

 

$

77,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2019

Segment Results

 

 

 

 

 

 

 

Mortgage

 

 

 

 

 

 

All Other and

 

Hilltop

(in 000's)

 

Banking

 

Broker-Dealer

 

Origination

 

Insurance

 

Corporate

 

Eliminations

 

Consolidated

Net interest income (expense)

 

$

186,113

 

$

24,260

 

 

$

(1,499

)

 

$

1,236

 

$

(2,661

)

 

$

9,358

 

 

$

216,807

Provision (recovery) for loan losses

 

 

355

 

 

(76

)

 

 

 

 

 

 

 

 

 

 

 

 

 

279

Noninterest income

 

 

21,362

 

 

196,865

 

 

 

282,580

 

 

 

72,643

 

 

1,390

 

 

 

(9,501

)

 

 

565,339

Noninterest expense

 

 

118,977

 

 

182,677

 

 

 

256,398

 

 

 

69,926

 

 

24,836

 

 

 

(52

)

 

 

652,762

Income (loss) before income taxes

 

$

88,143

 

$

38,524

 

 

$

24,683

 

 

$

3,953

 

$

(26,107

)

 

$

(91

)

 

$

129,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

Selected Financial Data

 

2019

 

2019

 

2018

 

2018

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hilltop Consolidated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average stockholders' equity

 

 

11.63%

 

 

8.04%

 

 

5.76%

 

 

7.41%

 

 

6.95%

Return on average assets

 

 

1.74%

 

 

1.21%

 

 

0.86%

 

 

1.07%

 

 

1.03%

Net interest margin (1)

 

 

3.49%

 

 

3.69%

 

 

3.75%

 

 

3.48%

 

 

3.46%

Net interest margin (taxable equivalent) (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

3.49%

 

 

3.70%

 

 

3.76%

 

 

3.49%

 

 

3.47%

Impact of purchase accounting

 

 

23 bps

 

 

32 bps

 

 

43 bps

 

 

28 bps

 

 

29 bps

Book value per common share ($)

 

 

21.85

 

 

21.23

 

 

20.83

 

 

20.51

 

 

20.21

Shares outstanding, end of period (000's)

 

 

92,775

 

 

93,821

 

 

93,610

 

 

94,594

 

 

94,571

Dividend payout ratio (3)

 

 

12.92%

 

 

19.32%

 

 

23.43%

 

 

18.48%

 

 

20.16%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

 

4.06%

 

 

4.24%

 

 

4.50%

 

 

4.13%

 

 

4.11%

Net interest margin (taxable equivalent) (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

4.06%

 

 

4.25%

 

 

4.51%

 

 

4.14%

 

 

4.12%

Impact of purchase accounting

 

 

31 bps

 

 

44 bps

 

 

61 bps

 

 

39 bps

 

 

42 bps

Accretion of discount on loans ($000's)

 

 

6,444

 

 

8,735

 

 

12,737

 

 

8,147

 

 

8,343

Net charge-offs ($000's)

 

 

2,960

 

 

1,628

 

 

7,592

 

 

1,447

 

 

1,564

Return on average assets

 

 

1.43%

 

 

1.34%

 

 

1.31%

 

 

1.19%

 

 

1.09%

Fee income ratio

 

 

10.3%

 

 

10.3%

 

 

10.1%

 

 

10.7%

 

 

10.8%

Efficiency ratio

 

 

55.9%

 

 

58.8%

 

 

56.8%

 

 

63.7%

 

 

66.5%

Employees' compensation and benefits ($000's)

 

 

33,050

 

 

32,171

 

 

31,955

 

 

36,878

 

 

32,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-Dealer Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue ($000's) (4)

 

 

116,969

 

 

104,157

 

 

89,750

 

 

95,266

 

 

86,479

Employees' compensation and benefits ($000's)

 

 

70,333

 

 

63,075

 

 

54,249

 

 

59,535

 

 

52,418

Variable compensation expense ($000's)

 

 

44,833

 

 

34,581

 

 

31,744

 

 

33,574

 

 

26,036

Compensation as a % of net revenue

 

 

60.1%

 

 

60.6%

 

 

60.4%

 

 

62.5%

 

 

60.6%

Pre-tax margin (5)

 

 

18.9%

 

 

15.8%

 

 

12.1%

 

 

10.4%

 

 

9.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Origination Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home purchases

 

 

3,329,024

 

 

2,050,760

 

 

2,586,677

 

 

3,237,444

 

 

3,615,991

Refinancings

 

 

631,065

 

 

396,282

 

 

384,990

 

 

416,201

 

 

491,384

Total mortgage loan originations - volume

 

 

3,960,089

 

 

2,447,042

 

 

2,971,667

 

 

3,653,645

 

 

4,107,375

Mortgage loan sales - volume ($000's)

 

 

3,338,070

 

 

2,711,114

 

 

3,008,793

 

 

4,015,051

 

 

3,526,603

Net gains from mortgage loan sales (basis points)

 

 

333

 

 

330

 

 

334

 

 

330

 

 

317

Mortgage servicing rights asset ($000's) (6)

 

 

53,695

 

 

62,049

 

 

66,102

 

 

68,804

 

 

57,373

Employees' compensation and benefits ($000's)

 

 

106,449

 

 

79,043

 

 

84,334

 

 

102,025

 

 

111,713

Variable compensation expense ($000's)

 

 

65,516

 

 

38,929

 

 

44,529

 

 

58,686

 

 

66,531

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and LAE ratio

 

 

74.6%

 

 

45.0%

 

 

60.6%

 

 

54.7%

 

 

71.6%

Expense ratio

 

 

38.4%

 

 

41.5%

 

 

37.9%

 

 

38.8%

 

 

39.5%

Combined ratio

 

 

113.0%

 

 

86.5%

 

 

98.5%

 

 

93.5%

 

 

111.1%

Employees' compensation and benefits ($000's)

 

 

2,784

 

 

3,202

 

 

2,670

 

 

2,595

 

 

2,954

(1)

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

(2)

Net interest margin (taxable equivalent), a non-GAAP measure, is defined as taxable equivalent net interest income divided by average interest-earning assets. Taxable equivalent adjustments are based on the applicable 21% federal income tax rate for all periods presented. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. The taxable equivalent adjustments to interest income for Hilltop (consolidated) were $0.2 million, $0.2 million, $0.3 million, $0.2 million, and $0.2 million, respectively, for the periods presented and for the banking segment were $0.2 million for each of the periods presented.

(3)

Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share.

(4)

Net revenue is defined as the sum of total broker-dealer net interest income plus total broker-dealer noninterest income.

(5)

Pre-tax margin is defined as income before income taxes divided by net revenue

(6)

Reported on a consolidated basis and therefore does not include mortgage servicing rights assets related to loans serviced for the banking segment, which are eliminated in consolidation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

Capital Ratios

 

2019

 

2019

 

2018

 

2018

 

2018

Tier 1 capital (to average assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

12.53

%

 

 

12.61

%

 

 

12.47

%

 

 

11.86

%

 

 

12.80

%

Hilltop

 

 

13.00

%

 

 

13.22

%

 

 

12.53

%

 

 

12.40

%

 

 

12.90

%

Common equity Tier 1 capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

13.84

%

 

 

13.89

%

 

 

13.90

%

 

 

13.88

%

 

 

14.59

%

Hilltop

 

 

16.32

%

 

 

16.75

%

 

 

16.58

%

 

 

16.95

%

 

 

17.61

%

Tier 1 capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

13.84

%

 

 

13.89

%

 

 

13.90

%

 

 

13.88

%

 

 

14.59

%

Hilltop

 

 

16.77

%

 

 

17.22

%

 

 

17.04

%

 

 

17.42

%

 

 

18.10

%

Total capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

14.48

%

 

 

14.60

%

 

 

14.63

%

 

 

14.63

%

 

 

15.38

%

Hilltop

 

 

17.14

%

 

 

17.64

%

 

 

17.47

%

 

 

17.87

%

 

 

18.58

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

Non-Performing Loans Portfolio Data

 

2019

 

2019

 

2018

 

2018

 

2018

Loans accounted for on a non-accrual basis ($000's):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

5,276

 

 

 

5,332

 

 

 

5,324

 

 

 

7,506

 

 

 

14,256

 

Commercial and industrial

 

 

14,152

 

 

 

13,350

 

 

 

14,870

 

 

 

21,323

 

 

 

22,815

 

Construction and land development

 

 

1,413

 

 

 

1,473

 

 

 

3,278

 

 

 

3,402

 

 

 

569

 

1-4 family residential

 

 

11,136

 

 

 

10,662

 

 

 

10,437

 

 

 

4,476

 

 

 

4,273

 

Mortgage warehouse

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

34

 

 

 

38

 

 

 

41

 

 

 

45

 

 

 

49

 

Broker-dealer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Covered

 

 

 

 

 

 

 

 

 

 

 

5,777

 

 

 

5,277

 

 

 

 

32,011

 

 

 

30,855