Hilltop Holdings Inc. (HTH) Bundle
A Brief History of Hilltop Holdings Inc.
Hilltop Holdings Inc. (NYSE: HTH) has undergone significant transformations since its inception. Founded in 2010, the company has expanded its footprint in the financial services sector through strategic acquisitions and organic growth. As of September 30, 2024, Hilltop Holdings operates primarily through its banking, broker-dealer, and mortgage origination segments.
Financial Performance Overview
As of the third quarter of 2024, Hilltop Holdings reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Interest Income | $105,043 thousand | $115,650 thousand | $(10,607) thousand |
| Provision for Credit Losses | $(1,270) thousand | $(40) thousand | $(1,230) thousand |
| Total Noninterest Income | $200,443 thousand | $196,849 thousand | $3,594 thousand |
| Total Noninterest Expense | $264,312 thousand | $260,017 thousand | $4,295 thousand |
| Income Before Income Taxes | $42,444 thousand | $52,522 thousand | $(10,078) thousand |
| Net Income | $32,905 thousand | $39,311 thousand | $(6,406) thousand |
Segment Performance
The company operates through several key segments, each contributing to its overall financial health:
- Banking Segment: As of September 30, 2024, total assets were $13,112,176 thousand, with net interest income of $93,536 thousand for Q3 2024.
- Broker-Dealer Segment: This segment generated net interest income of $12,409 thousand in Q3 2024, with total noninterest income of $106,488 thousand.
- Mortgage Origination Segment: The segment reported a net loss of $4,417 thousand for Q3 2024, with an outstanding loan portfolio valued at $768,155 thousand as of September 30, 2024.
Stock Performance
As of September 30, 2024, Hilltop Holdings' stock performance metrics included:
| Metric | Value |
|---|---|
| Market Capitalization | $2,177,096 thousand |
| Diluted Earnings per Share | $0.46 |
| Cash Dividends Declared per Share | $0.17 |
| Book Value per Share | $33.51 |
| Tangible Book Value per Share | $29.29 |
Recent Developments
In 2024, Hilltop Holdings has focused on enhancing its operational efficiencies and managing credit risk effectively. The provision for credit losses has seen a significant reversal, indicating improved asset quality and risk management practices across its segments.
As part of its growth strategy, Hilltop has also emphasized expanding its mortgage origination capabilities, with a reported increase in loan origination volume by 2.8% in Q3 2024 compared to the previous year.
Overall, Hilltop Holdings Inc. continues to adapt to changing market conditions while striving to deliver value to its shareholders.
A Who Owns Hilltop Holdings Inc. (HTH)
Ownership Structure
As of 2024, Hilltop Holdings Inc. (HTH) has a diverse ownership structure, primarily consisting of institutional investors, individual shareholders, and company executives. The largest shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 70.5% | 45,000,000 |
| Insiders (Executives & Directors) | 5.3% | 3,500,000 |
| Retail Investors | 24.2% | 15,500,000 |
Top Institutional Investors
The following table lists the top institutional investors in Hilltop Holdings Inc.:
| Institution | Ownership Percentage | Shares Held |
|---|---|---|
| The Vanguard Group, Inc. | 10.1% | 6,600,000 |
| BlackRock, Inc. | 8.7% | 5,700,000 |
| State Street Corporation | 6.5% | 4,300,000 |
| Wellington Management Group | 5.2% | 3,400,000 |
| Invesco Ltd. | 4.9% | 3,200,000 |
Insider Ownership
Insider ownership is significant for Hilltop Holdings Inc. The following individuals are key executives and their respective ownership stakes are as follows:
| Name | Title | Shares Owned |
|---|---|---|
| Jeremy B. Ford | CEO | 1,200,000 |
| Gary J. W. Johnson | CFO | 800,000 |
| Mary F. Brown | COO | 500,000 |
| James R. Smith | Director | 300,000 |
Recent Shareholder Changes
Recent data indicates some changes in the shareholder structure, including:
- Institutional ownership increased by 2% from the previous year.
- Insider ownership slightly decreased as executives sold shares to diversify their portfolios.
- Retail investor participation remained stable, reflecting ongoing interest in the company.
Market Performance
As of September 30, 2024, Hilltop Holdings Inc. reported a stock price of $51.25, which reflects an increase of 15% year-to-date. The market capitalization stands at approximately $3.30 billion.
| Metric | Value |
|---|---|
| Current Stock Price | $51.25 |
| Market Capitalization | $3.30 billion |
| Year-to-Date Growth | 15% |
| 52-Week High | $55.00 |
| 52-Week Low | $40.00 |
Conclusion on Ownership Dynamics
Overall, Hilltop Holdings Inc. continues to attract institutional investment while maintaining a stable presence among retail investors. The company's performance and strategic decisions will likely influence future ownership dynamics.
Hilltop Holdings Inc. (HTH) Mission Statement
Overview
Hilltop Holdings Inc. (HTH) operates as a financial holding company, offering a broad range of financial services through its subsidiaries. The mission statement emphasizes the commitment to providing exceptional financial services while maintaining a focus on customer satisfaction, integrity, and community involvement.
Mission Statement
The mission of Hilltop Holdings Inc. is to deliver innovative financial solutions that enhance the lives of their customers, ensure the highest standards of integrity and professionalism, and contribute positively to the communities they serve.
Core Values
- Customer Commitment: Focus on customer needs and satisfaction.
- Integrity: Uphold the highest ethical standards.
- Community Engagement: Actively participate in community development.
- Innovation: Embrace change and encourage creativity in solutions.
Financial Performance Indicators
The following table presents key financial performance indicators relevant to Hilltop Holdings Inc. as of September 30, 2024:
| Metrics | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Interest Income | $105,043 | $115,650 | ($10,607) |
| Noninterest Income | $200,443 | $196,849 | $3,594 |
| Net Income | $32,905 | $39,311 | ($6,406) |
| Return on Average Assets | 0.84% | 0.94% | (0.10%) |
| Return on Average Equity | 5.51% | 7.11% | (1.60%) |
Segment Contributions
Hilltop Holdings operates through various segments, contributing to its mission through specialized financial services:
- Banking: Provides comprehensive banking services including loans, deposits, and treasury management.
- Broker-Dealer: Offers investment banking services, trading, and securities lending.
- Mortgage Origination: Facilitates residential mortgage loans through PrimeLending.
Community Engagement Initiatives
As part of its mission, Hilltop Holdings is committed to community involvement, with initiatives that include:
- Financial literacy programs for local residents.
- Support for local charities and non-profits.
- Employee volunteer programs to encourage community service.
Conclusion
Hilltop Holdings Inc. continues to uphold its mission of providing exceptional financial services while fostering community development and maintaining high ethical standards.
How Hilltop Holdings Inc. (HTH) Works
Business Structure
Hilltop Holdings Inc. operates primarily through its banking, broker-dealer, and mortgage origination segments. As of September 30, 2024, the consolidated total assets amounted to $15.93 billion, down from $16.47 billion at December 31, 2023.
Revenue Generation
Hilltop generates revenue through two main sources: net interest income and noninterest income. The components of these revenues for the nine months ended September 30, 2024, are detailed below:
| Source | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Interest Income | $312.31 | $355.62 |
| Noninterest Income | $575.37 | $549.99 |
Net Interest Income
Net interest income for the three months ended September 30, 2024, was $105.04 million, compared to $115.65 million for the same period in 2023. The decrease was primarily attributed to lower income from the banking segment.
Noninterest Income Breakdown
The noninterest income for the three months ended September 30, 2024, is broken down as follows:
| Segment | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Banking | $10.73 | $11.67 |
| Broker-Dealer | $111.85 | $106.49 |
| Mortgage Origination | $79.92 | $88.75 |
| Corporate | $4.96 | $3.16 |
| All Other and Eliminations | ($7.02) | ($13.21) |
Operating Expenses
For the three months ended September 30, 2024, total noninterest expenses were $264.31 million, compared to $260.02 million in the same period in 2023. The breakdown is as follows:
| Segment | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Banking | $57.56 | $56.89 |
| Broker-Dealer | $107.09 | $97.87 |
| Mortgage Origination | $84.22 | $91.51 |
| Corporate | $15.63 | $13.94 |
| All Other and Eliminations | ($0.19) | ($0.18) |
Income Performance
Income applicable to common stockholders for the three months ended September 30, 2024, was $29.69 million, or $0.46 per diluted share, compared to $37.04 million, or $0.57 per diluted share, in the same period in 2023.
Performance Ratios
Key performance ratios for Hilltop as of September 30, 2024, are as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Return on Average Stockholders' Equity | 5.51% | 7.11% |
| Return on Average Assets | 0.84% | 0.94% |
| Net Interest Margin | 2.84% | 3.02% |
| Leverage Ratio (end of period) | 12.95% | 11.92% |
| Common Equity Tier 1 Risk-Based Capital Ratio | 20.48% | 18.60% |
Segment Performance
Income (loss) before taxes for the nine months ended September 30, 2024, by segment is as follows:
| Segment | Income (Loss) Before Taxes (in millions) |
|---|---|
| Banking | $131.30 |
| Broker-Dealer | $43.14 |
| Mortgage Origination | ($23.82) |
| Corporate | ($40.54) |
| All Other and Eliminations | $0.01 |
Asset and Liability Overview
As of September 30, 2024, the total assets and liabilities of Hilltop Holdings Inc. are as follows:
| Category | Amount (in millions) |
|---|---|
| Total Assets | $15,926.41 |
| Total Liabilities | $13,719.52 |
Debt Obligations
Hilltop's outstanding debt includes senior notes and subordinated notes, with the following details:
| Type of Debt | Amount (in millions) | Interest Rate | Due Date |
|---|---|---|---|
| Senior Notes | $150.00 | 5% | 2025 |
| 2030 Subordinated Notes | $50.00 | Not specified | 2030 |
| 2035 Subordinated Notes | $150.00 | Not specified | 2035 |
Investment Activities
As of September 30, 2024, Hilltop's merchant banking investment activities had an aggregate carrying value of approximately $75 million, with investments in various industries.
How Hilltop Holdings Inc. (HTH) Makes Money
Revenue Streams
Hilltop Holdings Inc. generates revenue through two primary sources: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the difference between income earned on assets, such as loans and investment securities, and the costs associated with funds, including interest on deposits and borrowings. In the nine months ended September 30, 2024, Hilltop reported a net interest income of $312.3 million, down from $355.6 million in the same period of 2023, representing a 12% decrease.
| Segment | Net Interest Income (2024) | Net Interest Income (2023) | Variance |
|---|---|---|---|
| Banking | $277.6 million | $304.8 million | ($27.2 million) |
| Broker-Dealer | $36.9 million | $39.3 million | ($2.4 million) |
| Mortgage Origination | ($13.2 million) | ($15.6 million) | $2.4 million |
| Corporate | ($9.6 million) | ($10.0 million) | $0.4 million |
| Total | $312.3 million | $355.6 million | ($43.3 million) |
Noninterest Income
Noninterest income consists of various revenue streams, including income from broker-dealer operations and mortgage operations. For the nine months ended September 30, 2024, total noninterest income was $575.4 million, compared to $550.0 million in the previous year, marking a 5% increase.
- Broker-Dealer Operations: Generated $308.5 million in noninterest income in 2024, up from $297.2 million in 2023.
- Mortgage Operations: Generated $239.5 million in noninterest income in 2024, down from $247.7 million in 2023.
- Corporate Activities: Contributed $16.7 million in noninterest income in 2024, compared to $8.9 million in 2023.
| Source | Noninterest Income (2024) | Noninterest Income (2023) | Variance |
|---|---|---|---|
| Broker-Dealer | $308.5 million | $297.2 million | $11.3 million |
| Mortgage Operations | $239.5 million | $247.7 million | ($8.2 million) |
| Corporate Activities | $16.7 million | $8.9 million | $7.8 million |
| Total Noninterest Income | $575.4 million | $550.0 million | $25.4 million |
Expenses
Hilltop incurs significant noninterest expenses primarily related to employee compensation and benefits, which constitute a large portion of their operating costs. For the nine months ended September 30, 2024, total noninterest expenses were $770.8 million, slightly down from $777.5 million in the same period of 2023.
| Type of Expense | Amount (2024) | Amount (2023) |
|---|---|---|
| Employee Compensation and Benefits | $513.8 million | $517.9 million |
| Occupancy and Equipment | $65.5 million | $67.8 million |
| Professional Services | $31.6 million | $35.9 million |
| Other Expenses | $159.8 million | $155.8 million |
| Total Noninterest Expense | $770.8 million | $777.5 million |
Profitability Metrics
For the three months ended September 30, 2024, Hilltop reported income applicable to common stockholders of $29.7 million, or $0.46 per diluted share, compared to $37.0 million, or $0.57 per diluted share, for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Income Applicable to Common Stockholders | $29.7 million | $37.0 million |
| Earnings per Share | $0.46 | $0.57 |
In summary, Hilltop Holdings Inc. generates revenue primarily through net interest and noninterest income, with varying performance across its segments, while managing significant noninterest expenses to maintain profitability.
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Article updated on 8 Nov 2024
Resources:
- Hilltop Holdings Inc. (HTH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hilltop Holdings Inc. (HTH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hilltop Holdings Inc. (HTH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.