Hilltop Holdings Inc. (NYSE:HTH) Q3 2022 Earnings Conference Call October 21, 2022 9:00 AM ET
Company Participants
Erik Yohe - Executive Vice President
Jeremy Ford - President and Chief Executive Officer
William Furr - Chief Financial Officer
Conference Call Participants
Brad Milsaps - Piper Sandler
Thomas Wendler - Stephens, Inc.
Carl Doirin - Raymond James
Woody Lay - KBW
Operator
Hello and welcome to today’s Hilltop Holdings Third Quarter 2022 Earnings Conference Call. My name is Alex, and I will be coordinating the call today. [Operator Instructions]
I will now hand over to your host, Erik Yohe from 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, 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 third quarter, Hilltop reported net income of $32 million or $0.50 per diluted share. Return on average assets for the period was 0.8% and return on average equity was 6.3%.
This was an excellent quarter for PlainsCapital Bank. The Bank generated $64 million in pretax income driven primarily by a 44 basis point increase in that interest margin from Q3 2021. In the quarter, average bank loans grew by an annualized rate of 8%. As growth in commercial -- our core commercial loans and retainment of PrimeLending originated mortgages more than offset elevated paydowns and the expected decline in our mortgage warehouse business.