![]() The banks results were also impacted by a provision for credit losses of $14.9 million. While our deposit rates have stabilized, as expected these actions have led to net interest margin compression. We believe our deposit rates are now competitive, though still expect our cost of deposits to moderately increase throughout the second half of 2023. Given the heightened competition in the market for deposits, we were aggressive with deposit rate increases in the quarter to retrain and attract customers. This is an increase of approximately $500 million from the amount that we have historically accessed from the program. During the quarter we increase broker deposits at the bank by $390 million and continue to access $1.5 billion of core deposits from Hilltop Securities, FDIC suite program. Regarding deposits, we continue to take actions to ensure the bank maintains financial flexibility, while also being mindful of margin impact. ![]() So our credit standards are largely unchanged, the market is still competitive and clients, particularly in commercial real estate are pulling back as elevated rates diminish the economics of many projects. But we now expect loan growth to slow given the declining pipelines we have realized over the last few months. Growth was strong this quarter as a result of the great work by our bankers over the past year. Average loans at the bank increased by $172 million in the quarter or approximately 9% annualized, as core bank commercial loans, mortgage warehouse loans and retained mortgage balances increased. And we remain confident in our ability to continue serving our valued clients through various business and interest rate cycles with our synergistic and durable business model.ĭuring the quarter, PlainsCapital Bank generated $40 million of pretax income on $13.8 billion of assets, representing a return on average assets of 0.9%. We continue to prioritize the strength of our balance sheet by building on our robust capital and liquidity positions. Hilltop's operating results reflect the challenging market conditions in our mortgage origination and banking segments, offset by profitability growth in our broker dealer segment. Return on average assets for the period was 0.5% and return on average equity was 3.5%. For the second quarter, Hilltop reported net income of $18 million or $0.28 per diluted share. With that, I’d like to now turn the presentation over to Jeremy Ford, President and CEO. 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. Except to the extent required by law, we expressly disclaim any obligation to update earlier statements as a result of new information.Īdditionally, this presentation includes certain non-GAAP measures, including tangible common equity and tangible book value per share. ![]() Please note that the information presented is preliminary and based upon data available at this time. 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. These statements are based on management’s current expectations concerning future events that by their nature are subject to risks and uncertainties. ![]() 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. I would now like to turn the conference over to Erik Yohe, Executive Vice President of Hilltop Holdings. This call is being recorded on Friday, July 21, 2023. Following the presentation, we will conduct a question-and-answer session. At this time all lines are in listen-only mode. Good morning, ladies and gentlemen, and welcome to the Hilltop Holdings, Second Quarter 2023 Earnings Conference Call and webcast. Jeremy Ford - President, Chief Executive OfficerĬarl Gatenio - Raymond James & Associates ![]() ( NYSE: HTH) Q2 2023 Earnings Conference Call J9:00 AM ET ![]()
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