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Jun 30, 2022
Hilltop Q2 2022 Earnings Report
Hilltop Holdings' financial performance decreased compared to the same period last year, but increased compared to the previous quarter.
Key Takeaways
Hilltop Holdings reported a net income attributable to Hilltop of $33.3 million, a decrease of 66% year-over-year. EPS diluted was $0.45, down 63% year-over-year. The company's return on average equity was 5.82%.
PlainsCapital Bank generated $51.4 million in pre-tax income during Q2 2022, a decrease of $35.6 million from Q2 2021 and an increase of $4.9 million from Q1 2022
PrimeLending generated $5.6 million in pre-tax income during Q2 2022, a decrease of $43.4 million from Q2 2021
HilltopSecurities produced $9.1 million in pre-tax income during Q2 2022, an increase of $2.2 million from Q2 2021
During the quarter, HTH returned $454.5 million of capital to stockholders through dividends and share buybacks
Forward Guidance
Hilltop Holdings provided outlook for full year 2022.
Positive Outlook
- Full year average bank loan growth 2% –5%, excluding PPP loans and retained mortgages
- NII growth 2% –6%, headwinds from lower PPP and accretion
- Outlook assumes full year target Fed Funds Rate of 300 –325 bps
- Loan floors and competition expected to slow loan yield expansion during 2022
- Modeled ‘through the cycle’ IB deposit beta of 50%
Challenges Ahead
- Full year average total deposits decline 3% –7%, excludes the impact of the Tender Offer
- Purchase accounting accretion expected to decline by 50% -80% versus 2021 levels
- Mortgage gain on sale margins continue to be pressured as volumes decline across the industry, full year average 250 –290 bps (third party sales)
- Full year mortgage origination volume $12 –$16 billion
Historical Earnings Impact
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Avg. Return Before/After Earnings
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