Hilltop Holdings Inc.
) reported second-quarter 2013 operating earnings per share of 24
cents. Although the results were substantially below the Zacks
Consensus Estimate of 31 cents, it improved from the loss of 19
cents in the year-ago quarter. Consequently, net income stood at
$20.9 million, rebounding from a net loss of $10.7 million in the
Hilltop's total revenue was $307.6 million, spiking from both
the Zacks Consensus Estimate of $278 million and the year-ago
quarter figure of $39.2 million.
Net interest income
rose to $68.4 million from $1.2 million in the year-ago quarter,
jumped to $239.2 million from $38.0 million in the year-ago
The year-over-year upside was primarily attributable to robust
growth in both interest and non-interest income primarily due to
the inclusion of banking, mortgage origination and financial
advisory operations through the acquisition of PlainsCapital
Corp. in Nov 2012. The company experienced growth against the
sequentially prior quarter as well.
However, Hilltop incurred provision for loan losses of $11.3
million in the reported quarter. Meanwhile, total interest
expense surged 126.7% year over year to $7.7 million, whereas
non-interest expenses radically amplified to $260.4 million from
$55.2 million in the year-ago period.
Meanwhile, pre-tax loss from insurance operations widened to
$20.7 million from $16.0 million in the year-ago quarter. Higher
premiums were more than offset by higher catastrophe losses as
well as underwriting, loss and loss adjusted expenses.
Subsequently, combined ratio deteriorated to 158.2% from 141.8%
in the prior-year quarter.
As on Jun 30, 2013, Hilltop held cash and due from banks of
$596.4 million, down from $722 million as on Dec 31, 2012, along
with a strong securities portfolio worth $1.1 billion, up from
$1.08 billion at 2012-end.
Total shareholder equity stood at $1.2 billion at the end of
Jun 2013, up from $1.15 billion at 2012-end. However, total
assets improved to $7.40 billion from $7.29 billion at 2012-end,
while total liabilities increased to $6.23 billion from $6.14
billion at 2012-end.
At the end of Jun 2013, operating cash flow stood at $14.6
million compared with cash outflow of $1.6 million at the end of
Jun 2012. Hilltop held over $200 million of free cash at the end
of Jun 2013, at par with 2012-level.
At Jun 2013-end, Hilltop's insurance operations had a deposit
in custody for various investments in State Insurance Departments
with carrying values of $9.3 million, at par with 2012-level.
Total deposits decreased to $4.5 billion from $4.7 billion at
Apart from Hilltop, other outperformers of the insurance
Everest Re Ltd.
). All these stocks carry a Zacks Rank #2 (Buy).
ACE LIMITED (ACE): Free Stock Analysis Report
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HILLTOP HLDGS (HTH): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
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