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Sep 30, 2020
Hilltop Q3 2020 Earnings Report
Hilltop's financial performance was driven by record mortgage origination, enhanced securities business results, and stable bank credit performance.
Key Takeaways
Hilltop Holdings Inc. reported strong financial results for the third quarter of 2020, with income from continuing operations to common stockholders reaching $152.5 million, or $1.69 per diluted share. The results reflect a significant increase in mortgage origination segment net gains and stable credit performance at the bank.
Net gains from sale of loans and other mortgage production income increased by 96.0% to $307.9 million.
Mortgage loan origination production volume was $6.5 billion, compared to $4.8 billion in the third quarter of 2019.
The provision for credit losses was a reversal of $(0.6) million.
HilltopSecurities generated $149 million of net revenue and a 24% pre-tax margin.
Hilltop
Hilltop
Hilltop Revenue by Segment
Revenue by Segment
Banking Revenue
CapyFin.comBroker-Dealer Revenue
CapyFin.comMortgage Origination Revenue
CapyFin.com Forward Guidance
The COVID-19 pandemic is expected to continue to have implications on Hilltop's business and operations for the remainder of 2020.
Challenges Ahead
- Broader adverse implications of COVID-19 on customers and clients.
- Potential further disruption and deterioration in the financial services industry, including the mortgage servicing and commercial paper markets.
- Additional, or extended, federal, state and local government orders and regulations that might be imposed in response to the pandemic.
- Uncertainty in the progression of COVID-19 related loan modifications into non-performing loans during future periods.
- Changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil.