DALLAS - Hilltop Holdings Inc . (NYSE: NYSE:HTH), a Dallas-based financial holding company, reported first-quarter earnings that surpassed analyst expectations. The company announced a profit of $27.7 million, or $0.42 per diluted share, for the first quarter of 2024, exceeding the consensus estimate of $0.25 per share. This performance represents an improvement from the $25.8 million, or $0.40 per diluted share, reported in the first quarter of the previous year. Revenue for the quarter was $285.24 million, also beating the analyst projection of $274.55 million.
The company's financial results for the first quarter of 2024 reflected a mix of challenges and successes. Despite a decline in net interest income, Hilltop benefited from a reversal of credit losses due to an improved economic outlook within its banking segment, increased net revenues in certain broker-dealer segment business lines, and a rise in net gains from the sale of loans within the mortgage origination segment. However, the company also faced pressures from the elevated interest rate environment and a constrained housing market, which limited mortgage origination volumes.
Jeremy B. Ford (NYSE:F), President and CEO of Hilltop, commented on the results, noting the continuation of market trends from the previous year and highlighting the company's robust liquidity position, which allowed for the return of high-cost deposits. He also pointed out the strong performance of PlainsCapital Bank and HilltopSecurities, despite the challenging conditions faced by PrimeLending due to high mortgage rates and limited housing inventory.
Following the earnings release, Hilltop's stock saw a modest increase of 0.45%, suggesting a positive but restrained market reaction to the company's financial performance.
For the first quarter of 2024, the company reported a 3.1% decrease in net gains from the sale of loans and other mortgage production income and mortgage loan origination fees compared to the first quarter of 2023. Mortgage loan origination production volume remained consistent at $1.7 billion for both quarters.
Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for the first quarter of 2024 were 0.74% and 5.23%, respectively, showing slight improvements from 0.69% and 5.12% in the same period last year. The company's book value per common share increased marginally to $32.66 at the end of March 2024, compared to $32.58 at the end of December 2023.
The company also declared a quarterly cash dividend of $0.17 per common share, payable on May 24, 2024, to shareholders of record as of May 10, 2024. Additionally, Hilltop repurchased shares of its common stock at an average price of $31.04 per share under the 2024 stock repurchase program during the first quarter.
Hilltop Holdings' forward-looking statements indicate that the company's future results may be affected by various economic factors, including changes in U.S. treasury yields, mortgage interest rates, funding costs, inflationary pressures, labor market conditions, and the impact of international conflicts on supply chains.
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