On October 19, 2023, Hilltop Holdings Inc (HTH, Financial) announced its financial results for the third quarter of 2023. Despite market pressures, the company reported income to common stockholders of $37.0 million, or $0.57 per diluted share, for the third quarter of 2023, compared to $32.1 million, or $0.50 per diluted share, for the third quarter of 2022.
Financial Highlights
Hilltop's financial results for the third quarter of 2023 included decreases in year-over-year mortgage origination segment net gains from sales of loans and other mortgage production income, a decline in the net interest income within the banking segment, and increases in net revenues within certain of the broker-dealer segment’s business lines.
The company also announced that its Board of Directors declared a quarterly cash dividend of $0.16 per common share, payable on November 28, 2023, to all common stockholders of record as of the close of business on November 13, 2023.
Market Pressures and Challenges
Despite the positive financial results, Hilltop faced several challenges. Market pressures that began in 2022 and continued through the first nine months of 2023, including the impact of tight housing inventories on mortgage volumes, declining deposit balances, rapid increases in market interest rates, and a volatile economic forecast, have had, and are expected to continue to have, an adverse impact on operating results during the remainder of 2023.
Company's Performance
Jeremy B. Ford, President and CEO of Hilltop, commented on the company's performance, stating, "Hilltop’s operating results for the third quarter reflect a general continuation in market pressures experienced in the first half of the year. While PlainsCapital Bank produced strong financial results for the quarter with a 1.20% return on average assets, the competitive environment around deposits resulted in further pressure on the bank’s net interest margin. HilltopSecurities generated robust financial results as the wealth management and structured finance businesses produced strong net revenues, which more than offset challenging market conditions for the public finance and fixed income capital markets businesses. PrimeLending’s results continued to be impacted by the housing market’s lack of inventory, consumer affordability challenges and a stubbornly compressed gain-on-sale margin."
Looking Forward
As Hilltop progresses into the final quarter of the year, the company plans to continue to prudently manage its balance sheet, closely monitor its expenses, and serve its valued clients.
