Hilltop Holdings Inc.
) reported fourth-quarter 2013 operating earnings per share of 34
cents. Although the result missed the Zacks Consensus Estimate by
4 cents, it improved substantially from 13 cents earned in the
year-ago quarter. Consequently, net income soared to $29.5
million from $8.6 million in the year-ago quarter.
However, the market reaction remained moderate as the shares
of Hilltop dipped almost 0.05% in the last two trading sessions
following the announcement of the financial results.
Hilltop's total revenues grossed $281.1 million, spiking
108.4% from the year-ago quarter equivalent of $134.9 million.
However, total revenue lagged $294.8 million reported in the
sequentially prior quarter.
Net interest income
rose to $88.6 million from $25.2 million in the year-ago quarter,
jumped to $182.5 million from $109.7 million a year ago.
The year-over-year upside was primarily attributable to robust
growth in both interest and non-interest income, along with lower
provision for loan losses. These were partially offset by higher
interest and non-interest expenses.
Hilltop incurred provision for loan losses of $2.2 million in
the reported quarter, lower than $3.8 million in the year-ago
quarter. Meanwhile, total interest expense surged to $10 million
from $3.8 million in the prior-year period, whereas non-interest
expenses radically amplified to $219.8 million from $115.9
million in the year-ago period.
Full-Year 2013 Highlights
For full year 2013, Hilltop generated net income of $121
million or $1.40 per share, remarkably rebounding from net loss
of $5.9 million or 10 cents per share in 2012. Including special
charges, reported net loss was $7.7 million in 2012.
Total revenue surged to $1.18 billion in 2013 from $263
million in 2012. Net premiums earned increased 7.4% year over
year to $157.5 million.
Meanwhile, total interest and non-interest expenses grossed
$944.6 million in 2013 versus $235.7 million in 2012. Provision
for loan losses stood at $37.2 million, significantly higher than
$3.8 million in 2012. Moreover, combined ratio improved to 102.6%
from 108.8% in 2012.
As on Dec 31, 2013, Hilltop held cash and due from banks of
$713.1 million, down from $722 million at 2012-end, along with a
strong securities portfolio worth $1.26 billion, up from $1.08
billion at 2012-end.
Total shareholder equity stood at $1.31 billion at 2013-end,
up from $1.15 billion at 2012-end. Moreover, total assets
appreciated to $8.90 billion from $7.29 billion at 2012-end.
Meanwhile, total liabilities increased to $7.59 billion from
$6.14 billion at 2012-end. Total deposits surged to $6.72 billion
from $4.7 billion at 2012-end.
At the end of Dec 2013, operating cash flow stood at $396.7
million compared with $115.2 million at the end of 2012. Hilltop
held over $164 million of free cash at the end of Dec 2013, lower
than $205 million at 2012-end.
At Dec 2013-end, Hilltop's insurance operations had a deposit
in custody for various investments in State Insurance Departments
with carrying values of $9.4 million, up from $9.3 million at
At the end of Dec 2013, Hilltop's book value increased 7.5%
year over year to $13.27 per share. However, net interest margin
dipped slightly to 4.47% from 4.64% in 2012. Return on average
shareholders' equity (ROE) increased to 11% from a negative of
0.62% in 2012.
Hilltop's risk-based Tier 1 capital ratio stood at 18.53% at
the end of Dec 2013, up from 17.72% at the end of 2012. Moreover,
PlainsCapital Bank's risk-based Tier 1 capital ratio was pegged
at 13.38% at the end of 2013, higher than 11.83% at the end of
While Hilltop carries a Zacks Rank #3 (Hold), some
better-ranked financial stocks include
American Financial Group Inc.
OneBeacon Insurance Group Ltd.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
AMER FINL GROUP (AFG): Free Stock Analysis
EMC INSURANCE (EMCI): Free Stock Analysis
HILLTOP HLDGS (HTH): Free Stock Analysis
ONEBEACON INSUR (OB): Free Stock Analysis
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