In This Article:
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Net Income: $42 million, or $0.65 per diluted share.
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Return on Average Assets: 1.1%.
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Return on Average Equity: 7.8%.
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PlainsCapital Bank Pre-Tax Income: $40 million on $13 billion of average assets.
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Average Core Deposits Increase: Nearly $300 million year-over-year.
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Provision for Credit Losses: $9 million.
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Net Interest Margin: 2.97%.
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PrimeLending Pre-Tax Loss: $8 million.
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PrimeLending Origination Volume: $1.7 billion.
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HilltopSecurities Pre-Tax Income: $9 million on net revenue of $109 million.
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Merchant Bank Gain on Sale: $23.6 million, or $0.37 per diluted share.
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Insurance Recovery Impact: $5 million, or $0.08 per diluted share.
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Common Equity Tier 1 Capital Ratio: 21%.
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Tangible Book Value Per Share: Increased by $0.53 to $30.
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Dividends and Share Repurchases: $12 million in dividends and $33 million in share repurchases.
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Allowance for Credit Losses: Increased by $5 million to $106 million.
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Net Interest Income: $105 million.
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Total Non-Interest Income: $213.3 million.
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Average Total Deposits: Approximately $10.9 billion.
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Non-Interest Expenses: Impacted by $11.3 million from Moser sale and $6.5 million legal recovery.
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Average HFI Loans: $7.9 billion.
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Net Charge-Offs: $4.3 million.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hilltop Holdings Inc (NYSE:HTH) reported a net income of $42 million, or $0.65 per diluted share, for the first quarter of 2025.
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PlainsCapital Bank generated $40 million of pre-tax income on $13 billion of average assets, demonstrating strong performance.
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HilltopSecurities saw a 34% year-over-year increase in net revenues from Public Finance Services.
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The company maintained a strong capital position with a common equity Tier 1 capital ratio of 21%.
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Hilltop Holdings Inc (NYSE:HTH) returned $12 million to stockholders through dividends and repurchased $33 million in shares during the quarter.
Negative Points
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The mortgage origination segment continues to face challenges due to ongoing constraints in the mortgage market.
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PrimeLending reported a pre-tax loss of $8 million during the first quarter, with origination volumes under pressure.
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HilltopSecurities experienced a decline in net revenues from the Fixed Income Services line of business.
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The bank recorded a $9 million provision for credit losses due to negative risk rating migration within the portfolio.
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Average total deposit balances at PlainsCapital Bank decreased during the quarter, primarily due to expected seasonal outflows and repositioning by large balance customers.