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Hilltop Holdings Inc (HTH) Q1 2025 Earnings Call Highlights: Strong Net Income Amid Mortgage ...

In This Article:

  • Net Income: $42 million, or $0.65 per diluted share.

  • Return on Average Assets: 1.1%.

  • Return on Average Equity: 7.8%.

  • PlainsCapital Bank Pre-Tax Income: $40 million on $13 billion of average assets.

  • Average Core Deposits Increase: Nearly $300 million year-over-year.

  • Provision for Credit Losses: $9 million.

  • Net Interest Margin: 2.97%.

  • PrimeLending Pre-Tax Loss: $8 million.

  • PrimeLending Origination Volume: $1.7 billion.

  • HilltopSecurities Pre-Tax Income: $9 million on net revenue of $109 million.

  • Merchant Bank Gain on Sale: $23.6 million, or $0.37 per diluted share.

  • Insurance Recovery Impact: $5 million, or $0.08 per diluted share.

  • Common Equity Tier 1 Capital Ratio: 21%.

  • Tangible Book Value Per Share: Increased by $0.53 to $30.

  • Dividends and Share Repurchases: $12 million in dividends and $33 million in share repurchases.

  • Allowance for Credit Losses: Increased by $5 million to $106 million.

  • Net Interest Income: $105 million.

  • Total Non-Interest Income: $213.3 million.

  • Average Total Deposits: Approximately $10.9 billion.

  • Non-Interest Expenses: Impacted by $11.3 million from Moser sale and $6.5 million legal recovery.

  • Average HFI Loans: $7.9 billion.

  • 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

  • Hilltop Holdings Inc (NYSE:HTH) reported a net income of $42 million, or $0.65 per diluted share, for the first quarter of 2025.

  • PlainsCapital Bank generated $40 million of pre-tax income on $13 billion of average assets, demonstrating strong performance.

  • HilltopSecurities saw a 34% year-over-year increase in net revenues from Public Finance Services.

  • The company maintained a strong capital position with a common equity Tier 1 capital ratio of 21%.

  • Hilltop Holdings Inc (NYSE:HTH) returned $12 million to stockholders through dividends and repurchased $33 million in shares during the quarter.

Negative Points

  • The mortgage origination segment continues to face challenges due to ongoing constraints in the mortgage market.

  • PrimeLending reported a pre-tax loss of $8 million during the first quarter, with origination volumes under pressure.

  • HilltopSecurities experienced a decline in net revenues from the Fixed Income Services line of business.

  • The bank recorded a $9 million provision for credit losses due to negative risk rating migration within the portfolio.

  • Average total deposit balances at PlainsCapital Bank decreased during the quarter, primarily due to expected seasonal outflows and repositioning by large balance customers.