Hilltop Holdings Inc. (HTH) reported first-quarter 2014 operating earnings per share of 26 cents, lagging both the Zacks Consensus Estimate of 32 cents and year-ago quarter figure of 39 cents. Consequently, net income plunged 26.5% year over year to $23.8 million, primarily due to fall in the top line.
Hilltop’s total revenues grossed $261.9 million, declining 9% from $287.9 million in the year-ago quarter. Top line also missed the Zacks Consensus Estimate of $263 million. Net interest income rose 26.9% year over year to $85.4 million, while non-interest income plummeted 20.3% to $170.1 million.
Hilltop incurred provision for loan losses of $3.2 million in the reported quarter, down from $13.0 million in the year-ago quarter. The total interest expense declined to $6.4 million from $7.3 million in the prior-year period, while non-interest expenses fell to $212.6 million from $215 million in the year-ago period.
As on Mar 31, 2014, Hilltop held cash and due from banks of $890 million, up from $713.1 million at 2013-end, along with a strong securities portfolio worth $1.33 billion, up from $1.26 billion at 2013-end.
Total shareholder equity came in at $1.36 billion at Mar 2014-end, up from $1.31 billion at 2013-end. Moreover, total assets appreciated to $9.03 billion from $8.90 billion at 2012-end.
Meanwhile, total liabilities increased to $7.68 billion from $7.59 billion at 2013-end. Total deposits fell to $6.66 billion from $6.72 billion at 2013-end. Operating cash flow edged down 3.6% year over year to $154.3 million.
At Mar 2014-end, Hilltop’s insurance operations had a deposit in custody for various investments in State Insurance Departments with carrying values of $8.6 million, down from $9.4 million at 2013-end.
At the end of Mar 2014, Hilltop’s book value increased 8% year over year to $13.76 per share, whereas net interest margin improved slightly to 4.62% from 4.35% in the year-ago quarter. However, return on average shareholders’ equity (:ROE) decreased to 7.65% from 11.46% in the year-ago period.
Hilltop’s risk-based Tier 1 capital ratio was 18.66% at the end of Mar 2014, up from 18.35% at 2013-end. Moreover, PlainsCapital Bank’s risk-based Tier 1 capital ratio was pegged at 13.47% at the end of Mar 2014, marginally higher than 13.38% at the end of 2013.
Hilltop now has a Zacks Rank #3 (Hold). Some better-ranked financial stocks include HCI Group Inc. (HCI), Aspen Insurance Holdings Ltd. (AHL) and OneBeacon Insurance Group Ltd. (OB). All these stocks sport a Zacks Rank #1 (Strong Buy).Read the Full Research Report on HTH
Read the Full Research Report on OB
Read the Full Research Report on HCI
Read the Full Research Report on AHL
Zacks Investment Research
- Personal Investing Ideas & Strategies
- Finance Trading