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Mar 31, 2024
Hilltop Q1 2024 Earnings Report
Hilltop Holdings reported mixed results for Q1 2024, with PlainsCapital Bank showing strength and PrimeLending facing challenges.
Key Takeaways
Hilltop Holdings reported a net income of $27.7 million, or $0.42 per diluted share, for Q1 2024. PlainsCapital Bank's pre-tax income increased, while PrimeLending experienced a pre-tax loss. HilltopSecurities saw a rise in pre-tax income, and the company returned $21.0 million to shareholders through dividends and share repurchases.
PlainsCapital Bank's pre-tax income was $50.3 million, with a net interest margin increase.
PrimeLending reported a pre-tax loss of $16.5 million, including valuation adjustments to MSR asset.
HilltopSecurities' pre-tax income was $18.9 million, with increase in structured finance revenue.
Hilltop returned $21.0 million to shareholders through dividends and share repurchases.
Forward Guidance
Hilltop Holdings provided its 2024 outlook, including expectations for bank loan growth, deposit growth, net interest income, noninterest income, noninterest expense, provision expense, and effective tax rate.
Positive Outlook
- Bank loan growth of 0% – 2% (excluding retained mortgages and mortgage warehouse lending)
- Non-variable expenses decline 1% – 3%
- Stable Fed Funds rate until the fourth quarter (market dependent)
- Mortgage origination volume $8 – $10 billion
- Effective Tax Rate (GAAP) 22% – 24%
Challenges Ahead
- Decline of 0% – 3% in deposit growth
- Migration of NIB deposits expected to continue into IB products
- NII decline of 4% - 8% driven by higher average deposit costs in 2024
- Mortgage origination noninterest income remains pressured – full year decrease 0% - 5%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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