Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced
financial results for the third quarter of 2016. Hilltop produced
income of $51.9 million, or $0.53 per diluted share, for the third
quarter of 2016, compared to $46.9 million, or $0.47 per diluted
share, for the third quarter of 2015. Hilltop’s annualized return
on average assets and return on average equity for the third
quarter of 2016 were 1.69% and 11.41%, respectively, compared to
1.49% and 10.97%, respectively, for the third quarter of 2015.
Hilltop also announced that, for the first time in its history,
it will now start paying a quarterly dividend. Hilltop’s Board of
Directors authorized a dividend program and declared a quarterly
cash dividend of $0.06 per common share, payable on November 30,
2016, to all common stockholders of record as of the close of
business on November 15, 2016.
Jeremy Ford, Co-CEO of Hilltop, said, “We are excited to
announce that Hilltop’s Board of Directors has approved the
initiation of a cash dividend to its stockholders. Our strong
capital position and consistent earnings generation enable us to
invest in future acquisitions and organic growth, while also
returning cash to our stockholders.”
Mr. Ford continued, “During the quarter, we also began
implementing the previously announced changes to our organization.
The new structure and addition of William Furr as Hilltop CFO
create a solid foundation to support the operations of our
subsidiary companies and ensure Hilltop has the right platform for
future growth.”
Alan White, Co-CEO of Hilltop, added, “Our strong third quarter
earnings highlight the diversity of our franchise and the earnings
power of our collective business. PlainsCapital Bank delivered
strong commercial loan growth, PrimeLending produced outstanding
results by growing originations and expanding margins,
HilltopSecurities generated solid revenue growth in its core
businesses and National Lloyds experienced seasonally lower claims
volumes.”
Third Quarter 2016 Highlights for Hilltop:
- Hilltop’s total assets were $12.4
billion at September 30, 2016, compared to $13.1 billion at June
30, 2016;
- Hilltop’s common equity increased by
$53.2 million from June 30, 2016 to $1.8 billion at September 30,
2016;
- Non-covered loans1 held for investment,
net of allowance for loan losses, increased by 3.7% to $5.6 billion
and covered loans1, net of allowance for loan losses, decreased by
9.3% to $292.0 million from June 30, 2016 to September 30,
2016;
- Non-covered non-performing loans
increased to $25.2 million, or 0.34% of total non-covered loans, at
September 30, 2016, compared to $23.4 million, or 0.33% of total
non-covered loans, at June 30, 2016;
- Energy classified and criticized loans
were $39.4 million at September 30, 2016, down from $41.5 million
at June 30, 2016;
- Loans held for sale increased by 7.9%
to $1.7 billion from June 30, 2016 to September 30, 2016;
- Total deposits were $7.0 billion at
September 30, 2016, compared to $7.1 billion at June 30, 2016;
- Hilltop maintains strong capital levels
with a Tier 1 Leverage Ratio2 of 13.41% and Total Capital Ratio of
18.82% at September 30, 2016;
- Hilltop’s net interest margin3
decreased to 3.65% for the third quarter of 2016, from 3.77% in the
second quarter of 2016;
- The provision for loan losses was $4.0
million during the third quarter of 2016, compared to $28.9 million
in the second quarter of 2016;
- The second quarter of 2016 included an
isolated, $24.5 million charge-off as a result of irregularities in
connection with a single loan that is currently in default,
representing the entire outstanding principal balance of the
loan;
- For the third quarter of 2016,
noninterest income was $354.5 million, compared to $296.5 million
in the third quarter of 2015, a 19.6% increase;
- For the third quarter of 2016,
noninterest expense was $364.1 million, compared to $333.5 million
in the third quarter of 2015, a 9.2% increase; and
- In connection with the SWS Merger,
during the third quarter of 2016, Hilltop incurred $5.4 million in
pre-tax transaction and integration costs, consisting of $1.0
million in the broker-dealer segment and $4.4 million within
corporate.
___________________________
1
“Covered loans” refer to loans acquired in the FNB
Transaction that are subject to loss-share agreements with the
FDIC, while all other loans are referred to as “non-covered loans.”
2
Based on the end of period Tier 1 capital divided by total average
assets during the third quarter of 2016, excluding goodwill and
intangible assets.
3
Net interest margin is defined as net interest income divided by
average interest-earning assets.
Consolidated Financial and Other
Information
Consolidated Balance Sheets
September 30, June 30,
March 31, December 31,
September 30, (in 000's) 2016
2016 2016
2015 2015 Cash and due from
banks $ 528,519 $ 583,984 $ 512,103 $ 652,036 $ 526,692 Federal
funds sold 40,419 29,677 15,406 17,409 24,861 Securities purchased
under agreements to resell 138,284 149,474 96,646 105,660 83,889
Assets segregated for regulatory purposes 173,840 120,214 120,714
158,613 228,251 Securities: Trading, at fair value 402,104 305,418
368,425 214,146 292,418 Available for sale, at fair value 563,720
517,784 666,328 673,706 726,132 Held to maturity, at amortized cost
365,934 354,443 310,478
332,022 305,316 1,331,758 1,177,645
1,345,231 1,219,874 1,323,866 Loans held for sale 1,673,069
1,550,475 1,344,333 1,533,678 1,354,107 Non-covered loans, net of
unearned income 5,674,655 5,472,446 5,366,065 5,220,040 4,999,529
Allowance for non-covered loan losses (52,625 )
(51,013 ) (48,450 ) (45,415 ) (42,989 )
Non-covered loans, net 5,622,030 5,421,433 5,317,615 5,174,625
4,956,540 Covered loans, net of allowance for covered loan
losses 292,031 322,073 346,169 378,762 420,547 Broker-dealer and
clearing organization receivables 1,340,617 2,257,480 1,370,622
1,362,499 2,111,864 Premises and equipment, net 190,645 189,511
198,414 200,618 204,273 FDIC indemnification asset 73,351 74,460
80,522 91,648 92,902 Covered other real estate owned 61,988 67,634
78,890 99,090 106,024 Other assets 657,805 832,344 601,181 565,813
644,916 Goodwill 251,808 251,808 251,808 251,808 251,808 Other
intangible assets, net 47,112 49,690
52,274 54,868 58,916
Total assets $ 12,423,276 $ 13,077,902 $ 11,731,928
$ 11,867,001 $ 12,389,456 Deposits:
Non-interest bearing $ 2,232,813 $ 2,280,108 $ 2,233,608 $
2,235,436 $ 2,173,890 Interest bearing 4,797,772
4,846,705 4,750,567 4,717,247
4,646,859 Total deposits 7,030,585 7,126,813
6,984,175 6,952,683 6,820,749 Broker-dealer and clearing
organization payables 1,251,839 2,111,994 1,284,016 1,338,305
2,045,604 Short-term borrowings 1,265,022 1,012,862 832,921 947,373
910,490 Securities sold, not yet purchased, at fair value 164,633
178,235 165,704 130,044 156,775 Notes payable 313,313 319,636
232,190 238,716 243,556 Junior subordinated debentures 67,012
67,012 67,012 67,012 67,012 Other liabilities 481,504
464,904 405,899 454,743
428,442 Total liabilities 10,573,908 11,281,456
9,971,917 10,128,876 10,672,628 Common stock 985 985 986 989
989 Additional paid-in capital 1,570,025 1,568,053 1,567,150
1,577,270 1,574,769 Accumulated other comprehensive income 8,039
8,782 6,878 2,629 4,592 Retained earnings 266,048 214,116 183,042
155,475 134,748 Deferred compensation employee stock trust, net 900
938 1,020 1,034 1,182 Employee stock trust (309 )
(347 ) (428 ) (443 ) (590 ) Total Hilltop
stockholders' equity 1,845,688 1,792,527 1,758,648 1,736,954
1,715,690 Noncontrolling interests 3,680 3,919
1,363 1,171 1,138
Total stockholders' equity 1,849,368 1,796,446
1,760,011 1,738,125
1,716,828 Total liabilities & stockholders' equity $
12,423,276 $ 13,077,902 $ 11,731,928 $
11,867,001 $ 12,389,456
Three Months Ended Consolidated Income Statements
September 30, June 30,
March 31, December 31,
September 30, (in 000's, except per share data)
2016 2016 2016 2015 2015
Interest income: Loans, including fees $ 97,590 $ 98,468 $ 91,533 $
94,689 $ 111,315 Securities borrowed 9,037 6,326 7,589 11,242
10,116 Securities: Taxable 5,935 6,834 6,367 7,046 6,262 Tax-exempt
1,518 1,537 1,637 1,647 1,683 Other 1,183 1,037
1,028 1,338 1,169 Total interest income
115,263 114,202 108,154 115,962 130,545 Interest expense:
Deposits 3,996 4,037 3,839 3,589 3,719 Securities loaned 6,954
4,916 5,987 8,388 7,110 Short-term borrowings 1,497 1,392 1,085
1,218 1,189 Notes payable 2,793 2,618 2,582 2,661 2,524 Junior
subordinated debentures 673 655 645 616 605 Other 180
187 176 177 187 Total interest expense
16,093 13,805 14,314 16,649 15,334 Net interest income
99,170 100,397 93,840 99,313 115,211 Provision for loan losses
3,990 28,876 3,407 4,277
5,593 Net interest income after provision for loan losses 95,180
71,521 90,433 95,036 109,618 Noninterest income: Net
realized gains (losses) on securities — (46 ) 46 — — Net gains from
sale of loans and other mortgage production income 175,412 167,012
127,297 114,080 137,303 Mortgage loan origination fees 26,807
25,797 18,813 19,514 22,647 Net insurance premiums earned 38,747
38,721 39,733 41,001 41,196 Securities commissions and fees 39,722
40,442 38,317 37,459 39,070 Investment and securities advisory fees
and commissions 31,129 29,354 23,819 33,678 27,667 Other
42,641 44,725 29,350 31,195
28,586 Total noninterest income 354,458 346,005 277,375 276,927
296,469 Noninterest expense: Employees' compensation and
benefits 225,194 217,398 182,761 182,472 200,620 Loss and loss
adjustment expenses 16,055 37,211 21,959 21,630 17,335 Policy
acquisition and other underwriting expenses 11,064 11,316 11,252
11,928 11,784 Occupancy and equipment, net 27,460 26,971 27,833
30,285 29,341 Other 84,360 74,469
81,384 92,406 74,422 Total noninterest expense
364,133 367,365 325,189 338,721 333,502 Income before income
taxes 85,505 50,161 42,619 33,242 72,585 Income tax expense
33,017 18,439 14,423 12,020
25,338 Net income 52,488 31,722 28,196 21,222 47,247 Less: Net
income attributable to noncontrolling interest 556
648 629 495 353 Income attributable to
Hilltop $ 51,932 $ 31,074 $ 27,567 $ 20,727 $ 46,894
Earnings per common share: Basic $ 0.53 $ 0.32 $ 0.28 $ 0.21 $ 0.47
Diluted $ 0.53 $ 0.32 $ 0.28 $ 0.21 $ 0.47 Weighted average shares
outstanding: Basic 98,490 98,457 98,153 98,412 98,676 Diluted
98,625 98,586 98,669 99,266 99,556
Three Months Ended September 30, 2016 Segment Results
Mortgage
All Other and
Hilltop (in 000's) Banking
Broker-Dealer Origination Insurance
Corporate Eliminations Consolidated Net
interest income (expense) $ 90,549 $ 7,823 $ (3,076 ) $ 716 $
(1,854 ) $ 5,012 $ 99,170 Provision for loan losses 4,179 (189 ) —
— — — 3,990 Noninterest income 12,711 103,511 202,560 41,170 —
(5,494 ) 354,458 Noninterest expense 61,536 94,094
168,303 30,415 10,041
(256 ) 364,133 Income (loss) before income taxes $
37,545 $ 17,429 $ 31,181 $ 11,471 $ (11,895 ) $ (226
) $ 85,505
Three Months Ended
September 30, June 30,
March 31, December 31,
September 30, Selected Financial Data 2016
2016 2016 2015 2015
Hilltop
Consolidated:
Return on average stockholders' equity 11.41 % 7.07 % 6.32 % 4.70 %
10.97 % Return on average assets 1.69 % 1.05 % 0.96 % 0.68 % 1.49 %
Net interest margin (1) 3.65 % 3.77 % 3.67 % 3.70 % 4.18 % Net
interest margin (taxable equivalent) (2): As reported 3.67 % 3.80 %
3.70 % 3.73 % 4.20 % Impact of purchase accounting 64 bps 72 bps 74
bps 79 bps 137 bps Book value per common share ($) 18.73 18.20
17.84 17.56 17.35 Shares outstanding, end of period (000's) 98,541
98,498 98,585 98,896 98,893
Banking
Segment:
Net interest margin (1) 4.50 % 4.85 % 4.70 % 4.90 % 5.77 % Net
interest margin (taxable equivalent) (2): As reported 4.53 % 4.87 %
4.73 % 4.92 % 5.79 % Impact of purchase accounting 90 bps 104 bps
103 bps 119 bps 210 bps Accretion of discount on loans ($000's)
15,969 17,344 16,631 19,503 36,000 Non-covered net charge-offs
(recoveries) ($000's) 3,108 26,130 650 2,088 1,775 Return on
average assets 1.09 % 0.66 % 0.98 % 1.07 % 1.64 % Fee income ratio
12.31 % 12.67 % 13.08 % 13.83 % 11.64 % Efficiency ratio 59.59 %
52.32 % 64.97 % 62.78 % 50.56 % Employees' compensation and
benefits ($000's) 31,167 30,847 29,125 27,456 29,881
Broker-Dealer
Segment:
Employees' compensation and benefits ($000's) 68,051 63,976 57,816
62,868 64,099 Variable compensation expense ($000's) 42,446 38,750
29,431 35,298 36,157 Compensation as a % of net revenue 61.1 % 58.0
% 65.7 % 63.2 % 69.6 % Pre-tax margin 15.65 % 16.58 % 4.28 % 3.70 %
1.58 %
Mortgage
Origination Segment:
Mortgage loan originations - volume ($000's): Home purchases
3,191,851 3,261,386 2,050,825 2,344,328 2,945,626 Refinancings
1,300,702 889,078 878,291 721,308
693,572 Total mortgage loan originations - volume 4,492,553
4,150,464 2,929,116 3,065,636 3,639,198 Mortgage loan sales -
volume ($000's) 4,349,794 3,964,190 3,117,605 2,888,903 3,699,047
Mortgage servicing rights asset ($000's) (3) 43,751 33,491 39,863
52,285 47,527 Employees' compensation and benefits ($000's) 120,548
117,537 90,690 87,387 101,490 Variable compensation expense
($000's) 75,271 74,604 51,689 48,706 64,582
Insurance
Segment:
Loss and LAE ratio 41.4 % 96.1 % 55.3 % 52.8 % 42.1 % Expense ratio
33.6 % 33.9 % 33.2 % 34.2 % 33.3 % Combined ratio 75.0 % 130.0 %
88.5 % 87.0 % 75.4 % Employees' compensation and benefits ($000's)
2,401 2,304 2,178 2,180 2,182
___________________________
(1) Net interest margin is defined as net interest income
divided by average interest-earning assets. (2) Net interest margin
(taxable equivalent), a non-GAAP measure, is defined as taxable
equivalent net interest income divided by average interest-earning
assets. Annualized taxable equivalent adjustments are based on a
35% federal income tax rate. The interest income earned on certain
earning assets is completely or partially exempt from federal
income tax. As such, these tax-exempt instruments typically yield
lower returns than taxable investments. To provide more meaningful
comparisons of net interest margins for all earning assets, we use
net interest income on a taxable-equivalent basis in calculating
net interest margin by increasing the interest income earned on
tax-exempt assets to make it fully equivalent to interest income
earned on taxable investments. For the periods presented, the
taxable equivalent adjustments to interest income for Hilltop
Consolidated were $0.5 million, $0.6 million, $0.7 million, $0.8
million and $0.8 million, respectively, and for the Banking Segment
were $0.4 million, $0.5 million, $0.4 million, $0.4 million and
$0.4 million, respectively. (3) Reported on a consolidated basis
and therefore does not include mortgage servicing rights assets
related to loans serviced for the banking segment, which are
eliminated in consolidation.
September 30, June 30,
March 31, December 31,
September 30, Capital Ratios 2016 2016
2016 2015 2015 Tier 1 capital (to average
assets): Bank 12.65 % 12.72 % 12.70 % 13.22 % 12.77 % Hilltop 13.41
% 13.18 % 13.35 % 12.65 % 12.01 % Common equity Tier 1 capital (to
risk-weighted assets): Bank 15.15 % 14.71 % 15.10 % 16.23 % 17.36 %
Hilltop 17.80 % 16.67 % 17.56 % 17.87 % 18.36 % Tier 1 capital (to
risk-weighted assets): Bank 15.15 % 14.77 % 15.12 % 16.25 % 17.36 %
Hilltop 18.37 % 17.26 % 18.17 % 18.48 % 18.89 % Total capital (to
risk-weighted assets): Bank 15.90 % 15.51 % 15.87 % 16.99 % 18.13 %
Hilltop 18.82 % 17.69 % 18.60 % 18.89 % 19.29 %
September 30, June 30,
March 31, December 31,
September 30, Non-Covered Non-Performing
Loans Portfolio Data 2016 2016 2016
2015 2015 Non-covered loans accounted for on a
non-accrual basis ($000's): Commercial and industrial 19,651 18,412
19,179 17,764 22,302 Real estate 4,817 4,777 7,802 7,160 7,087
Construction and land development 703 139 102 114 118 Consumer 50
61 1 7 14 Broker-dealer — — — — —
25,221 23,389 27,084 25,045 29,521 Non-covered
non-performing loans as a % of total non-covered loans 0.34 % 0.33
% 0.40 % 0.37 % 0.46 % Non-covered other real estate owned
($000's) 3,063 2,656 543 394 511 Other repossessed assets
($000's) 1,654 — 30 — — Non-covered non-performing assets
($000's) 29,938 26,045 27,657 25,439 30,032 Non-covered
non-performing assets as a % of total assets 0.24 % 0.20 % 0.24 %
0.21 % 0.24 % Non-covered non-PCI loans past due 90 days or
more and still accruing ($000's) 41,824 50,032 51,943 50,776 37,435
Troubled debt restructurings included in accruing
non-covered loans ($000's) 1,216 1,235 1,409 1,418 3,664
Three Months Ended September 30,
2016 2015 Average
Interest Annualized Average
Interest Annualized
Outstanding Earned or Yield or
Outstanding Earned or Yield or Balance
Paid Rate Balance Paid Rate
Assets Interest-earning assets Loans, gross (1) $ 7,315,433
$ 97,590 5.26 % $ 6,636,328 $ 111,315 6.64 % Investment securities
- taxable 999,394 5,915 2.36 % 1,110,813 6,243 2.24 % Investment
securities - non-taxable (2) 296,013 2,052 2.77 % 253,170 2,439
3.85 % Federal funds sold and securities purchased under agreements
to resell 185,533 52 0.11 % 122,826 20 0.07 % Interest-bearing
deposits in other financial institutions 478,560 567 0.47 % 442,689
237 0.21 % Other 1,542,155 9,622 2.44 %
2,381,905 11,047 1.82 % Interest-earning assets,
gross 10,817,088 115,798 4.22 % 10,947,731 131,301 4.74 % Allowance
for loan losses (53,470 ) (43,446 ) Interest-earning
assets, net 10,763,618 10,904,285 Noninterest-earning assets
1,588,921 1,706,720
Total assets $
12,352,539 $ 12,611,005
Liabilities and
Stockholders' Equity Interest-bearing liabilities
Interest-bearing deposits $ 4,851,952 $ 3,996 0.33 % $ 4,709,244 $
3,719 0.31 % Notes payable and other borrowings 2,729,466
12,097 1.76 % 3,385,804 11,615
1.36 % Total interest-bearing liabilities 7,581,418 16,093 0.84 %
8,095,048 15,334 0.75 % Noninterest-bearing liabilities
Noninterest-bearing deposits 2,251,744 2,177,319 Other liabilities
705,985 641,456 Total liabilities
10,539,147 10,913,823 Stockholders’ equity 1,810,266 1,696,396
Noncontrolling interest 3,126 786
Total liabilities and stockholders' equity $ 12,352,539
$ 12,611,005
Net interest income
(2) $ 99,705 $ 115,967
Net interest spread (2)
3.38 % 3.99 %
Net interest margin (2) 3.67 % 4.20 %
___________________________
(1) Average balance includes non-accrual loans. (2)
Annualized taxable equivalent adjustments are based on a 35%
federal income tax rate. The taxable equivalent adjustments to
interest income were $0.5 million and $0.8 million for the three
months ended September 30, 2016 and 2015, respectively.
September 30, June
30, March 31, December
31, September 30, PlainsCapital Bank -
Energy Exposure 2016 2016 2016 2015
2015
Select Energy
Statistics
Outstanding energy loan balance ($M) 168.8 223.6 233.5 179.8 194.9
Energy unfunded commitments ($M) 120.7 88.5 102.9 108.7 110.0
Energy loans as a % of total loans 3.1 % 4.2 % 4.5 % 3.6 % 4.0 %
Classified and criticized energy loans ($M): Criticized energy
loans 1.8 12.7 13.0 3.4 0.0 Performing classified energy loans 24.2
22.1 33.4 25.7 27.0 Non-performing classified energy loans 13.4
6.7 4.9 3.6 2.8 39.4 41.5 51.3
32.7 29.8 Unimpaired energy reserves ($M) 10.0 9.8 9.2 7.3
6.5 Energy reserves as a % of energy loans 6.7 % 4.7 % 4.3 % 4.4 %
3.4 % Energy NCOs ($M) 1.0 0.4 0.2 1.2 1.1
Energy Portfolio
Breakdown
Exploration and production 13 % 10 % 13 % 19 % 20 % Services: Field
services 26 % 22 % 22 % 21 % 15 % Pipeline construction 21 % 15 %
15 % 23 % 25 % 47 % 37 % 37 % 44 % 40 % Midstream: Distribution 21
% 38 % 37 % 25 % 25 % Transportation 11 % 9 % 7 % 7 % 7 % 32 % 47 %
44 % 32 % 32 % Other: Wholesalers 1 % 1 % 1 % 2 % 2 % Equipment
rentals 0 % 0 % 0 % 1 % 5 % Equipment wholesalers 7 % 5 % 5 % 2 % 1
% Total 100 % 100 % 100 % 100 % 100 %
Conference Call Information
Hilltop will host a live webcast and conference call at 8:00 AM
Central (9:00 AM Eastern) on Friday, October 28, 2016. Hilltop
Co-CEOs Jeremy B. Ford and Alan B. White and other key management
members will discuss results for the third quarter of 2016.
Interested parties can access the conference call by dialing
1-877-508-9457 (domestic) or 1-412-317-0789 (international). The
conference call also will be webcast simultaneously on Hilltop’s
Investor Relations website (http://ir.hilltop-holdings.com).
About Hilltop
Hilltop Holdings is a Dallas-based financial holding company.
Its primary line of business is to provide business and consumer
banking services from offices located throughout Texas through
PlainsCapital Bank. PlainsCapital Bank’s wholly owned subsidiary,
PrimeLending, provides residential mortgage lending throughout the
United States. Hilltop Holdings’ broker-dealer subsidiaries,
Hilltop Securities Inc. and Hilltop Securities Independent Network
Inc., provide a full complement of securities brokerage,
institutional and investment banking services in addition to
clearing services and retail financial advisory. Through Hilltop
Holdings’ other wholly owned subsidiary, National Lloyds
Corporation, it provides property and casualty insurance through
two insurance companies, National Lloyds Insurance Company and
American Summit Insurance Company. At September 30, 2016, Hilltop
employed approximately 5,500 people and operated approximately 450
locations in 44 states. Hilltop Holdings' common stock is listed on
the New York Stock Exchange under the symbol "HTH." Find more
information at Hilltop-Holdings.com, PlainsCapital.com,
PrimeLending.com, Nationallloydsinsurance.com and
Hilltopsecurities.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements anticipated in
such statements. Forward-looking statements speak only as of the
date they are made and, except as required by law, we do not assume
any duty to update forward-looking statements. Such forward-looking
statements include, but are not limited to, statements concerning
such things as our business strategy, our financial condition, our
efforts to make strategic acquisitions, the integration of the
operations acquired in the SWS Merger, our revenue, our liquidity
and sources of funding, market trends, operations and business,
stock repurchases, dividend payments, expectations concerning
mortgage loan origination volume, expected losses on covered loans
and related reimbursements from the Federal Deposit Insurance
Corporation (“FDIC”), expected levels of refinancing as a
percentage of total loan origination volume, projected losses on
mortgage loans originated, anticipated changes in our revenues or
earnings, the effects of government regulation applicable to our
operations, the appropriateness of our allowance for loan losses
and provision for loan losses, the collectability of loans and the
outcome of litigation, our other plans, objectives, strategies,
expectations and intentions and other statements that are not
statements of historical fact, and may be identified by words such
as “anticipates,” “believes,” “could,” “estimates,” “expects,”
“forecasts,” “goal,” “intends,” “may,” “might,” “plan,” “probable,”
“projects,” “seeks,” “should,” “target,” “view” or “would” or the
negative of these words and phrases or similar words or phrases.
The following factors, among others, could cause actual results to
differ from those set forth in the forward-looking statements: (i)
our ability to estimate loan losses; (ii) changes in the default
rate of our loans; (iii) changes in general economic, market and
business conditions in areas or markets where we compete, including
changes in the price of crude oil; (iv) risks associated with
concentration in real estate related loans; (v) risks associated
with merger and acquisition integration, including our ability to
promptly and effectively integrate our businesses with those
acquired in the SWS Merger and achieve the anticipated synergies
and cost savings in connection therewith, as well as the diversion
of management time on acquisition- and integration-related issues;
(vi) severe catastrophic events in Texas and other areas of the
southern United States; (vii) changes in the interest rate
environment; (viii) cost and availability of capital; (vix)
effectiveness of our data security controls in the face of cyber
attacks; (x) changes in state and federal laws, regulations or
policies affecting one or more of the our business segments,
including changes in regulatory fees, deposit insurance premiums,
capital requirements and the Dodd-Frank Wall Street Reform and
Consumer Protection Act; (xi) approval of new, or changes in,
accounting policies and practices; (xii) changes in key management;
(xiii) competition in our banking, broker-dealer, mortgage
origination and insurance segments from other banks and financial
institutions, as well as investment banking and financial advisory
firms, mortgage bankers, asset-based non-bank lenders, government
agencies and insurance companies; (xiv) our ability to obtain
reimbursements for losses on acquired loans under loss-share
agreements with the FDIC to the extent the FDIC determines that we
did not adequately manage the covered loan portfolio; (xv) failure
of our insurance segment reinsurers to pay obligations under
reinsurance contracts; and (xvi) our ability to use excess cash in
an effective manner, including the execution of successful
acquisitions. For further discussion of such factors, see the risk
factors described in the Hilltop Annual Report on Form 10-K for the
year ended December 31, 2015 and other reports filed with the
Securities and Exchange Commission. All forward-looking statements
are qualified in their entirety by this cautionary statement.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161027006792/en/
Hilltop Holdings Inc.Isabell Novakov,
214-252-4029inovakov@hilltop-holdings.com
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