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Sep 30, 2024
Hilltop Q3 2024 Earnings Report
Hilltop's financial performance was marked by a net income of $29.7 million, driven by growth in noninterest income and efficient expense management.
Key Takeaways
Hilltop Holdings reported a net income of $29.7 million, with diluted EPS at $0.46. The company saw growth in noninterest income and managed to keep noninterest expenses in check. PlainsCapital Bank generated $48.1 million in pre-tax income, while PrimeLending incurred an $8.7 million pre-tax loss. HilltopSecurities generated pre-tax income of $17.0 million.
PlainsCapital Bank's pre-tax income was $48.1 million.
PrimeLending experienced an $8.7 million pre-tax loss, impacted by a negative valuation adjustment from the sale of MSR value.
HilltopSecurities generated $17.0 million in pre-tax income with a pre-tax margin of 13.7%.
Company returned $11.0 million to stockholders through dividends.
Hilltop
Hilltop
Forward Guidance
Hilltop Holdings provided its 2024 outlook, including expectations for bank loan and deposit growth, net interest income, noninterest income and expense, provision expense, and the effective tax rate.
Positive Outlook
- Full year average Bank deposits expected to increase 3% – 5%.
- Mortgage origination noninterest income – expected to remain relatively stable with prior year.
- Mortgage origination volume $8 – $9 billion.
- Broker Dealer fees increase driven by Structured Finance.
- Non-variable expenses decline 1% – 3%.
Challenges Ahead
- Full year average Bank loans (excluding retained mortgages and mortgage warehouse lending) to decline modestly (0% – 2%).
- Migration of NIB deposits expected to continue into IB products.
- Expecting NIB to comprise 25% – 28% of total deposits at year-end 2024.
- NII decline of 9% – 11% driven by higher average deposits costs in 2024.
- Full year provision / average loans HFI: 15 – 25 basis points