Published on 19 Apr 2024 on Zacks via Yahoo Finance

Hilltop Holdings (HTH) Stock Up on Q1 Earnings Beat, Cost Down

Shares of Hilltop Holdings Inc. HTH rose 2% in after-hours trading following the release of better-than-expected first-quarter 2024 results. Earnings of 42 cents per share handily beat the Zacks Consensus Estimate of 28 cents. The bottom line improved 5% from the prior-year quarter.Results benefited from higher non-interest income and a fall in expenses. Also, the solid profitability and capital ratios, along with provision benefit, provided support. However, a fall in net interest income (NII), coupled with a decline in loans and deposit balances, acted as spoilsports. Net income attributable to common stockholders was $27.7 million, up 7.2% year over year.

Revenues Improve & Expenses Decline Marginally

Quarterly net revenues were $285.2 million, which improved marginally year over year. The top line surpassed the Zacks Consensus Estimate of $275.4 million.NII declined 14.9% to $103.6 million. Our estimate for the metric was $109 million.Net interest margin (NIM) (taxable-equivalent basis) was 2.87%, down 41 basis points (bps). We had expected NIM to be 2.93%.Non-interest income was $181.6 million, up 11.8% year over year. The growth was driven by a rise in all components except mortgage loan origination fees. We had projected the metric to be $166.2 million.Non-interest expenses declined marginally to $250 million. We projected a total non-interest expense of $247.8 million.As of Mar 31, 2024, net loans held for investment were $8 billion, a marginal decline sequentially. Total deposits were $10.9 billion, down 1.6%. Our estimates for net loans held for investment and total deposits were $8.1 billion and $11 billion, respectively.