Q2 2024 Hilltop Holdings Inc Earnings Call Transcript
Key Points
- Hilltop Holdings Inc (HTH) reported net income of approximately $20 million, or $0.31 per diluted share for the second quarter of 2024.
- All three business segments posted profitable pretax operating results despite high interest rates and an inverted yield curve.
- PlainsCapital Bank generated $33 million of pretax income on $12.7 billion of assets, with a return on average assets of 0.8%.
- PrimeLending saw positive pretax results with higher origination volumes and a gain on sale to third parties' rate of 233 basis points.
- Hilltop Securities generated pretax income of $7 million on net revenues of $104 million, with a 3% increase in net revenues from public finance services.
- Hilltop Holdings Inc (HTH) experienced a year-over-year decline in net interest income of 12%, driven by higher yields on deposits and declining earning assets.
- The company reported a provision for credit losses of $11 million, primarily due to specific reserves on two relationships in the auto lending subsector.
- Average deposit balance declined by 2% during the quarter, primarily due to the intentional runoff of $150 million in broker deposits.
- Structured finance net revenues declined by $4.5 million from the second quarter of 2023 due to depressed origination volumes.
- Non-interest expenses decreased by $11 million compared to the same period in the prior year, reflecting cost-cutting measures but indicating ongoing challenges in managing expenses.
Good day everyone and welcome to Hilltop Holdings second-quarter 2024 earnings call and webcast. (Operator Instructions) Please note this call is being recorded. I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Erik Yohe. Please go ahead.
Thank you, operator. Before we get started, please note that certain statements during today's presentation that are not statements of historical fact, including statements concerning such items as our outlook, business strategy, future plans, financial condition, credit risk and trends in credit, allowance for credit losses, liquidity and sources of funding, funding cost, the impact, and the potential impacts of inflation, stock repurchases, dividends, and impacts of interest rate changes as well as such other items referenced in the preface of our presentation are forward-looking statements. These statements are based on management's current expectations concerning future events that, by their nature, are
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