Hilltop Holdings Inc.
) filed its 10-K to report results for the quarter and year
ending Dec 31, 2012. For fourth quarter 2012, the company's net
income attributable to common stockholders stood at $8.6 million
or 10 cents per share, improving from an income of $5.0 million
or 9 cents per share in the year-ago period. Earnings per share
comfortably surpassed the Zacks Consensus Estimate of 8 cents as
Hilltop's total revenue stood at $134.9 million, spiking from
both the Zacks Consensus Estimate of $52.0 million and the
year-ago quarter's $38.2 million. The year-over-year upside was
primarily attributable to robust growth in both interest and
non-interest income primarily due to the acquisition of
PlainsCapital Corp. in Dec 2012.
During the reported quarter, net interest income rose to $25.2
million from $0.9 million in the year-ago quarter, while
non-interest income jumped to $109.7 million from $37.2 million
in the year-ago period. However, Hilltop also incurred provision
for loan losses of $3.8 million in the reported quarter.
Meanwhile, total interest expense increased 65.2% year over
year to $3.8 million, whereas non-interest expenses radically
amplified to $115.9 million from $30.4 million in the year-ago
For full year 2012, Hilltop generated net loss attributable to
common stockholders of $5.9 million or 10 cents per share. This
was higher than $6.5 million or 12 cents per share reported in
2011 as well as the Zacks Consensus Estimate of a loss of 17
cents a share. Including special charges, reported net loss was
$7.7 million in 2012.
Total revenue surged 75.9% year over year to $253.0 million in
2012, also outpacing the Zacks Consensus Estimate of $167
million. Net premiums earned increased 9.5% year over year to
Meanwhile, net interest and non-interest expenses totaled
$235.7 million in 2012 versus $164.3 million in 2011. Moreover,
combined ratio deteriorated to 108.8% from 106.2% in 2011.
As on Dec 31, 2012, Hilltop held cash and cash equivalents of
$725.2 million, up from $578.5 million as on Dec 31, 2011, along
with a strong investment portfolio worth $1.1 billion.
Total shareholder's equity stood at $1.15 billion at the end
of 2012, jumping from $655.4 million at 2011-end. Total assets
also surged to $7.29 billion at 2012-end from $925.4 at 2011-end,
while total liabilities inflated to $6.14 billion from $270
million at 2011-end.
At 2012-end, book value per share increased to $12.34 from
$11.60 at 2011-end. Operating cash flow stood at $113.9 million
against an outflow $3.3 million at the end of 2011. Hilltop held
about $200 million of free cash at the end of 2012.
At Dec 2012-end, Hilltop had a deposit in custody for various
investments in State Insurance Departments with carrying values
of $9.3 million.
The company's share repurchase program, sanctioned in Nov 2011
and expired in Nov 2012, had shares worth $98.8 million remaining
Moreover, on Nov 30, 2012, Hilltop completed the purchase of
U.S.-based financial services company -PlainsCapital Corp. - for
$813.5 million. This includes $311.8 million of cash, $387.6
million of stock and $144.1 million of Hilltop preferred stock
under the Small Business Lending Fund program. The deal was
announced in May 2012, while regulatory approvals were received
in Nov 2012.
While Hilltop carries a Zacks Rank #3 (Hold), other stocks
that are outperforming in the insurance sector include
EMC Insurance Group Inc.
XL Group Plc
). All these stocks carry a Zacks Rank #1 (Strong Buy).
AMERISAFE INC (AMSF): Free Stock Analysis
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XL GROUP PLC (XL): Free Stock Analysis Report
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