Hilltop Holdings Inc. has recently released its 10-Q report, revealing a detailed insight into its financial performance and operations. The company, based in Dallas, Texas, offers business and consumer banking services through its three segments: Banking, Broker-Dealer, and Mortgage Origination.
In the second quarter of 2024, Hilltop reported a net interest income of $103.65 million, a decrease from $118.27 million in the same period in 2023. The provision for credit losses was $10.93 million, down from $14.84 million in the second quarter of 2023. The total noninterest income for the second quarter of 2024 was $193.31 million, compared to $190.65 million in the second quarter of 2023. The total noninterest expense was $256.46 million in the second quarter of 2024, down from $266.98 million in the same period in 2023. The income before income taxes was $29.56 million in the second quarter of 2024, up from $27.10 million in the second quarter of 2023. The net income attributable to Hilltop was $20.33 million in the second quarter of 2024, compared to $18.13 million in the second quarter of 2023.
During the six months ended June 30, 2024, Hilltop declared and paid total common dividends of $22.2 million. On July 25, 2024, the board of directors declared a quarterly cash dividend of $0.17 per common share, payable on August 30, 2024, to all common stockholders of record as of the close of business on August 16, 2024.
In January 2024, Hilltop's board of directors authorized a new stock repurchase program through January 2025, allowing the company to repurchase, in the aggregate, up to $75.0 million of its outstanding common stock. During the six months ended June 30, 2024, Hilltop paid $19.9 million to repurchase an aggregate of 640,042 shares of its common stock at an average price of $31.01 per share pursuant to the stock repurchase program.
The company's tangible book value per common share was $28.63 as of June 30, 2024, compared to $27.45 in the same period in 2023. Hilltop's tangible common equity to tangible assets ratio was 12.12% as of June 30, 2024, up from 11.41% in the same period in 2023.
Hilltop Holdings Inc. continues to navigate the economic headwinds that began in 2022, with uncertainties surrounding U.S. Treasury yields, mortgage interest rates, funding costs, inflationary pressures, labor market conditions, and international armed conflicts impacting supply chains. The company has been monitoring deposit flows and balance sheet trends to ensure liquidity needs and financial flexibility are maintained. In response to rising market interest rates and intense competition for liquidity, Hilltop increased interest-bearing deposit rates and bolstered its liquidity position by increasing brokered deposits at the Bank.
The 10-Q report provides a comprehensive overview of Hilltop's financial performance and strategic initiatives as it continues to navigate the evolving economic landscape. Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $31.62. For more information, read the company's full 10-Q submission here.
