Hilltop Holdings Inc. (NYSE:HTH) Q1 2023 Earnings Conference Call April 21, 2023 9:00 AM ET

Company Participants

Erik Yohe – Executive Vice President of Corporate Development

Jeremy Ford – President and Chief Executive Officer

William Furr – Chief Financial Officer

Conference Call Participants

Brady Gailey – KBW

Brad Milsaps – Piper Sandler

Thomas Wendler – Stephens, Inc.

Operator

Ladies and gentlemen, welcome to the Hilltop Holdings First Quarter 2023 Earnings Conference Call and Webcast. My name is Glenn, and I will be the moderator for today’s call. [Operator Instructions]

I will now hand you over to your host, Erik Yohe, Executive Vice President of Hilltop Holdings. Erik, please go ahead.

Erik Yohe

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, allowance for credit losses, liquidity and sources of funding, the impact and potential impacts of inflation, stock repurchases and 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 subject to risks and uncertainties. Our actual results, capital, liquidity and financial condition may differ materially from these statements due to a variety of factors, including the precautionary statements referenced in our presentation and those included in our most recent annual and quarterly reports filed with the SEC.

Please note that the information presented is preliminary and based upon data available at this time. Except to the extent required by law, we expressly disclaim any obligation to update earlier statements as a result of new information. Additionally, this presentation includes certain non-GAAP measures, including tangible common equity and tangible book value per share. A reconciliation of these measures to the nearest GAAP measure may be found in the appendix to this presentation, which is posted on our website at ir.hilltop-holdings.com.

With that, I will now turn the presentation over to President and CEO, Jeremy Ford.

Jeremy Ford

Thank you, Erik, and good morning. For the first quarter, Hilltop reported net income of $26 million or $0.40 per diluted share. Return on average assets for the period was 0.7% and return on average equity was 5.1%. Although there was a considerable amount of volatility in the banking industry this past quarter, we entered the year with a strong balance sheet and feel very good about the position we are in. We have always managed our capital, funding and liquidity for the long-term and through various potential rate environments so we can continue to support our customers during times like this. Specifically, we have over $7 billion in available liquidity, a common equity Tier 1 risk-based capital ratio of 18% and a diversified and granular deposit base. We will continue to prioritize the health and soundness of our balance sheet and believe this will create opportunities for us over time.