Hilltop Holdings Inc. (NYSE:HTH) Q1 2022 Results Earnings Conference Call April 22, 2022 9:00 AM ET

Company Participants

Erik Yohe - Executive Vice President

Jeremy Ford - President and Chief Executive Officer

Will Furr - Chief Financial Officer

Conference Call Participants

Michael Young - Truist

Brad Milsaps - Piper Sandler

Michael Rose - Raymond James

Matt Olney - Stephens

Brady Gailey - KBW

Operator

Hello, everyone. And a warm welcome to the Hilltop Holdings First Quarter 2022 Earnings Conference Call and Webcast. My name is Bethany, and I'll be your operator today. [Operator Instructions]

I will now pass the floor over to Erik Yohe, Executive Vice President at Hilltop Holdings. Eric, over to you.

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 COVID-19 or disruptions in the global or national supply chains, 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 $22 million or $0.28 per diluted share. Return on average assets for the period was 53 basis points and return on average equity was 3.6%. The strength and stability of PlainsCapital Bank carried this quarter's results, as earnings pressures at PrimeLending and Hilltop Securities resulted from a challenging mortgage market and an escalating interest rate environment.