Hilltop Holdings Inc. (NYSE:HTH) Q3 2023 Earnings Call Transcript October 20, 2023 9:00 AM ET

Company Participants

Erik Yohe - Executive Vice President

Jeremy Ford - President, Chief Executive Officer

William Furr - Chief Financial Officer

Conference Call Participants

Thomas Wendler - Stephens, Inc

Woody Lay - KBW

Operator

Good morning, ladies and gentlemen, and welcome to the Hilltop Holdings, Third Quarter 2023 Earnings Conference Call and Webcast. At this time all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions]. This call is being recorded on Friday, October 20th, 2023.

I would now like to turn the conference over to Erik Yohe of Hilltop Holdings. 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 on 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'll now turn the presentation over to the President and CEO, Jeremy Ford.

Jeremy Ford

Thank you, Eric, and good morning. For the third quarter, Hilltop reported net income of $37 million or $0.57 per diluted share. Return on average assets for the period was 0.9% and return on average equity was 7.1%. This was a favorable quarter for the organization despite escalating interest rates and market pressures within each business. Hilltop produced solid consolidated profitability and continued to grow its book value with our conservative liquidity management. The dedication and adaptability of our teams in this uncertain environment has been commendable. I believe our proactive measures, strategic initiatives, and the strength of our franchise position Hilltop for resiliency in this challenging environment and sustained growth over the long term.