Hilltop Holdings Inc. (NYSE:HTH) Q3 2024 Earnings Conference Call October 25, 2024 9:00 AM ET

Company Participants

Matt Dunn – Investor Relations
Jeremy Ford – President and Chief Executive Officer
Will Furr – Chief Financial Officer

Conference Call Participants

Woody Lay – KBW
Michael Rose – Raymond James
Stephen Scouten – Piper Sandler
Jordan Ghent – Stephens

Operator

Good day everyone and welcome to today’s Hilltop Holdings Third Quarter 2024 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note this call is being recorded. I will be standing by if you should need any assistance.

It is now my pleasure to turn the conference over to Matt Dunn.

Matt Dunn

Thank you. 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, credit risks and trends in credit, allowance for credit losses, liquidity and sources of funding, funding cost, 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 the preface of 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.com.

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

Jeremy Ford

Thank you, Matt, and good morning. For the third quarter, Hilltop reported net income of approximately $30 million, or $0.46 per diluted share. Return on average assets for the period was 0.8% and return on average equity was 5.5%. Favorable operating results from the banking and broker dealer business units helped to produce a quarter-over-quarter increase in pre-provision net revenue and net income. While maintaining the balance between our consolidated earnings profile and strong liquidity position, Hilltop realized a quarter-over-quarter improvement in net interest income primarily due to a growth in average earning assets though consolidated net interest margin at Hilltop and net interest margin at the bank did experience modest compression in the quarter. We will comment further on the bank’s NIM later in our prepared remarks.