Enterprising Investor
8 years ago
Hilltop Holdings Unveils New Brand, Website (3/07/16)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH), a Dallas-based financial services holding company, today announced that it has launched a new corporate brand identity and website, Hilltop-Holdings.com. According to Jeremy B. Ford, president and CEO, the new website and logo are more in line with the company’s strategic vision to build a diversified financial services company with banking as its cornerstone.
Our vision has always been to build the premier Texas-based financial services holding company, with PlainsCapital Bank as our cornerstone,” said Ford. “We have now created a full-service financial services brand built on a family of companies encompassing a variety of complementary business lines. We believe having the holding company carry the same brand identity as its subsidiaries adds relevance, consistency and prestige to the Hilltop Holdings brand.”
The new Hilltop Holdings logo features the iconic and easily recognizable red buffalo associated with its subsidiary companies PlainsCapital Bank, a regional commercial and retail bank; PrimeLending, a national residential mortgage originator; and Hilltop Securities Inc., an investment bank and financial advisory firm.
The logo figures prominently into Hilltop Holdings’ new website, designed to provide an enhanced, user-friendly experience and featuring a clean, modern design with easy-to-navigate functionality, a more engaging interface and moving video integration. Visitors to the new site will be able to access content-rich information on Hilltop’s leadership, services, business lines, mergers and acquisitions and investor relations announcements. Built with the latest technology, the site is fully responsive, making it compatible with today’s browsers and mobile devices.
“Our goal in launching this new brand identity and website is to provide an enhanced resource for companies, customers, investors and the financial community to learn more about who we are and what we do through all of our subsidiary companies,” said Mr. Ford.
About Hilltop
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has two operating subsidiaries: PlainsCapital Bank and PrimeLending. Through its wholly owned subsidiaries Hilltop Securities Inc. and Hilltop Securities Independent Network Inc., it provides a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At December 31, 2015, Hilltop employed approximately 5,300 people and operated approximately 400 locations in 44 states. Hilltop Holdings' common stock is listed on the New York Stock Exchange under the symbol "HTH". Find more information at Hilltop-Holdings.com, PlainsCapital.com, PrimeLending.com, NationalLloydsInsurance.com, and HilltopSecurities.com.
http://www.businesswire.com/news/home/20160307005085/en/Hilltop-Holdings-Unveils-Brand-Website
Enterprising Investor
8 years ago
Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2015 (2/24/16)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the fourth quarter and full year 2015. Hilltop produced income to common stockholders of $20.7 million, or $0.21 per diluted share, for the fourth quarter of 2015, compared to $31.7 million, or $0.35 per diluted share, for the fourth quarter of 2014. Income to common stockholders for the full year 2015 was $209.1 million, or $2.09 per diluted share, compared to $105.9 million, or $1.17 per diluted share, for the full year 2014. Hilltop’s annualized return on average assets and return on average equity for the fourth quarter of 2015 were 0.68% and 4.70%, respectively, compared to 1.42% and 8.55% for the fourth quarter of 2014, respectively. The return on average assets and return on average equity for the full year 2015 were 1.70% and 12.32%, respectively, compared to 1.26% and 8.01% for the full year 2014, respectively.
Jeremy Ford, CEO of Hilltop, commented, “Hilltop finished 2015 with a solid fourth quarter. PlainsCapital Bank generated robust loan growth, while maintaining a strong core net interest margin and healthy credit quality. PrimeLending continues to grow mortgage loan origination volume and defend its market share. Despite unseasonal severe storms in North Texas in late December, National Lloyds achieved profitable fourth quarter and full year results.”
Mr. Ford added, “We are excited to report our two broker-dealer subsidiaries have successfully merged into one entity, HilltopSecurities. While managing through the integration process, the broker-dealer segment’s profitability steadily improved during 2015, and we are now well-positioned to execute on our vision during 2016.”
Mr. Ford concluded, “The core fundamentals of our operating businesses continue to trend positively, led by the banking segment, during the current challenging market environment. With Hilltop’s strong excess capital position and diversified earnings stream, we are well-situated to pursue M&A and organic growth opportunities.”
Fourth Quarter 2015 Highlights for Hilltop:
• Hilltop’s total assets were $11.9 billion at December 31, 2015, compared to $12.4 billion at September 30, 2015;
• Hilltop’s common equity increased by $21.3 million from September 30, 2015 to $1.7 billion at December 31, 2015;
• Non-covered loans1 held for investment, net of allowance for loan losses, increased by 4.4% to $5.2 billion, and covered loans1, net of allowance for loan losses, decreased by 9.9% to $378.8 million from September 30, 2015 to December 31, 2015;
• Total deposits increased by $131.9 million from September 30, 2015 to $7.0 billion at December 31, 2015;
• Hilltop was well-capitalized with a Tier 1 Leverage Ratio2 of 12.65% and Total Capital Ratio of 18.89% at December 31, 2015;
• Hilltop’s taxable equivalent net interest margin3 was 3.73% for the fourth quarter of 2015, a 47 basis point decrease from 4.20% in the third quarter of 2015;
• The provision for loan losses was $4.3 million during the fourth quarter of 2015, compared to $5.6 million in the third quarter of 2015;
• For the fourth quarter of 2015, noninterest income was $276.9 million, compared to $213.8 million in the fourth quarter of 2014, a 29.5% increase;
• For the fourth quarter of 2015, noninterest expense was $338.7 million, compared to $246.8 million in the fourth quarter of 2014, a 37.3% increase; and
• In connection with the SWS Merger, during the fourth quarter of 2015, Hilltop incurred $14.4 million in pre-tax transaction and integration costs, consisting of $4.9 million in the broker-dealer segment and $9.5 million within corporate.
1 “Covered loans” refers to loans acquired in the FNB Transaction that are subject to loss-share agreements with the FDIC, while all other loans are referred to as “non-covered loans.”
2 Based on the end of period Tier 1 capital divided by total average assets during the fourth quarter of 2015, excluding goodwill and intangible assets.
3 Taxable equivalent adjustments are based on a 35% tax rate. Measure is defined as taxable equivalent net interest income divided by average interest-earning assets.
[tables deleted]
Conference Call Information
Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Thursday, February 25, 2016. Hilltop President and CEO Jeremy B. Ford and other key management members will discuss 2015 year end results. Interested parties can access the conference call by dialing 1-877-508-9457 (domestic) or 1-412-317-0789 (international). The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop-holdings.com).
About Hilltop
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has two operating subsidiaries: PlainsCapital Bank and PrimeLending. Through its wholly owned subsidiaries Hilltop Securities Inc. and Hilltop Securities Independent Network Inc. it provides a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At December 31, 2015, Hilltop employed approximately 5,300 people and operated approximately 400 locations in 44 states. Hilltop Holdings' common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com, PlainsCapital.com, PrimeLending.com, Nationallloydsinsurance.com and Hilltopsecurities.com.
http://www.businesswire.com/news/home/20160224006587/en/Hilltop-Holdings-Announces-Financial-Results-Fourth-Quarter
Enterprising Investor
8 years ago
Hilltop Holdings Completes Merger of FirstSouthwest and Southwest Securities (1/25/16)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE:HTH) (“Hilltop”) announced today the successful merger of its broker-dealer subsidiaries First Southwest Company LLC and Hilltop Securities Inc. (formerly Southwest Securities, Inc.). The new combined firm will operate as HilltopSecurities and remain headquartered in Dallas, Texas.
The merger is the culmination of a process that began in January 2015 with Hilltop’s completed acquisition of Dallas-based SWS Group, Inc., the parent company of Southwest Securities. During 2015, both companies worked diligently to achieve FINRA and other regulatory approvals for the eventual merger of the broker-dealers, and in October 2015 Southwest Securities adopted the HilltopSecurities name in preparation of completing the merger.
The merger brings together two respected firms with deep roots in Texas and more than 100 years of combined history in the financial services industry. With the completion of the merger, they are building on this legacy to create a new, stronger company. In addition to its new name, HilltopSecurities features new branding throughout the organization, including a new logo, a new website at HilltopSecurities.com, new marketing materials and new signage that is being rolled out in its offices across the country during the months ahead.
“We are excited to complete the merger of FirstSouthwest and legacy Southwest Securities, marking an important milestone on our path toward building a leading regional broker-dealer with an expanding national presence,” said Jeremy Ford, CEO of Hilltop Holdings. “HilltopSecurities’ cohesive leadership team and experienced employees are well-positioned to carry out the strategic vision for the new firm.”
The new firm is led by Hill A. Feinberg, former chairman and CEO of FirstSouthwest, who will serve as chairman and CEO of HilltopSecurities, and Robert W. Peterson, former president and CEO of Southwest Securities, who will serve as president and COO of HilltopSecurities. John R. Muschalek, formerly head of correspondent clearing and securities lending at FirstSouthwest, will serve as HilltopSecurities’ Chief Administrative Officer, and J. Michael Edge, former CFO of SWS Group, will serve as CFO of the new firm.
With approximately 1,000 employees in more than 50 offices across the United States, HilltopSecurities provides a full range of financial guidance, services and solutions. The firm serves public and private institutions, issuers and investors through six primary business lines:
• Public Finance, led by Jack Addams and David Medanich. Mr. Addams has been with FirstSouthwest for 15 years and Mr. Medanich has been with FirstSouthwest for 34 years.
• Capital Markets, led by Daniel Leland. Mr. Leland has been with legacy Southwest Securities for 20 years.
• Retail Brokerage, led by David Geschke. Mr. Geschke has more than 28 years of private client wealth management experience and has been with legacy Southwest Securities since April 2015.
• Structured Finance, led by Michael Marz. Mr. Marz has been with FirstSouthwest for 22 years.
• Clearing Services, led by Lana Calton. Ms. Calton has been with legacy Southwest Securities for 23 years.
• Securities Lending, led by Lisa Palmeri. Ms. Palmeri has been
with legacy Southwest Securities for 13 years.
“This is the beginning of a new chapter for our combined firm,” Mr. Feinberg said. “The completion of our merger propels us into a future filled with opportunity for our clients, our employees, our company and our community. We look forward to continuing to serve as trusted advocates for our clients, delivering the guidance, solutions and services they need to help them achieve their definition of success.”
About Hilltop Holdings
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has two operating subsidiaries: PlainsCapital Bank and PrimeLending. Through Hilltop Securities Inc. and Hilltop Securities Independent Network Inc. it provides a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At September 30, 2015, Hilltop employed approximately 5,400 people and operated approximately 425 locations in 44 states. Hilltop Holdings' common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com, PlainsCapital.com, HilltopSecurities.com, Primelending.com and Nationallloydsinsurance.com.
About HilltopSecurities Inc.
Hilltop Securities Inc., a member of NYSE, FINRA and SIPC, is a full-service financial services firm and registered investment adviser headquartered in Dallas, Texas, with offices across the United States. The firm’s areas of focus include public finance; municipal and taxable fixed income underwriting, sales and trading; equity and portfolio trading; retail brokerage services; securities clearing; structured finance; corporate finance; and securities lending. A wholly owned subsidiary of Hilltop Holdings Inc., HilltopSecurities’ affiliates include Hilltop Securities Independent Network Inc., PlainsCapital Bank, PrimeLending and National Lloyds Corporation.
Contacts
Investor Relations Contact:
Hilltop Holdings Inc.
Isabell Novakov, 214-252-4029
inovakov@plainscapital.com
or
Media Contact:
Hilltop Securities Inc.
Ben Brooks, 214-859-6351
Ben.Brooks@hillltopsecurities.com
or
Hilltop Holdings Inc.
Carol Towne, 214-252-4142
ctowne@plainscapital.com
http://www.businesswire.com/news/home/20160125005360/en/Hilltop-Holdings-Completes-Merger-FirstSouthwest-Southwest-Securities
stocktrademan
9 years ago
$HTH recent news/filings
bullish
## source: finance.yahoo.com
Fri, 19 Jun 2015 19:22:00 GMT ~ PrimeLending Loan Officers Receive the Five Star Professionals Award
[PR Newswire] - DALLAS, June 19, 2015 /PRNewswire/ -- Dallas-based residential mortgage originator PrimeLending, a PlainsCapital company (NMLS: 13649), announced today that the following three loan officers received the ...
read full: http://finance.yahoo.com/news/primelending-loan-officers-receive-five-192200624.html
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Mon, 15 Jun 2015 21:01:48 GMT ~ HILLTOP HOLDINGS INC. Files SEC form 8-K, Submission of Matters to a Vote of Security Holders
read full: http://biz.yahoo.com/e/150615/hth8-k.html
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Fri, 12 Jun 2015 11:18:22 GMT ~ Coverage initiated on Hilltop Holdings by Piper Jaffray
read full: http://finance.yahoo.com/q/ud?s=HTH
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Mon, 08 Jun 2015 13:30:01 GMT ~ Express, Wynn Resorts, Heartland Financial, Hilltop Holdings and Cardinal Financial highlighted as Zacks Bull and Bear of the Day - Press Releases
read full: http://finance.yahoo.com/news/express-wynn-resorts-heartland-financial-133001056.html
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Thu, 04 Jun 2015 20:30:00 GMT ~ FirstSouthwest Welcomes Senior Vice President Ricardo Villaseñor to San Antonio Office
[Business Wire] - FirstSouthwest has announced that investment banker Ricardo Villaseñor has joined the company’s public finance office in San Antonio as Senior Vice President, Underwriting/Financial Advisor.
read full: http://finance.yahoo.com/news/firstsouthwest-welcomes-senior-vice-president-203000814.html
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$HTH charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$HTH company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/HTH/company-info
Ticker: $HTH
OTC Market Place: Not Available
CIK code: 0001265131
Company name: Hilltop Holdings, Inc.
Company website: http://www.aboutarc.com
Incorporated In: MD, USA
$HTH share structure
## source: otcmarkets.com
Market Value: $2,448,066,500 a/o Jun 26, 2015
Shares Outstanding: 100,289,492 a/o May 06, 2015
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.01
$HTH extra dd links
Company name: Hilltop Holdings, Inc.
Company website: http://www.aboutarc.com
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/HTH/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/HTH/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=HTH+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=HTH+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=HTH+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/HTH/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/HTH/news - http://finance.yahoo.com/q/h?s=HTH+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/HTH/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/HTH/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/HTH/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/HTH/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/HTH/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/HTH/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/HTH/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/HTH/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=HTH+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/HTH
DTCC (dtcc.com): http://search2.dtcc.com/?q=Hilltop+Holdings%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Hilltop+Holdings%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Hilltop+Holdings%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.aboutarc.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.aboutarc.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.aboutarc.com
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/HTH/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/HTH
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/HTH/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/HTH/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/HTH/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001265131&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/HTH/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/HTH/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/HTH/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/HTH/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=HTH&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=HTH
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/HTH/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=HTH+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=HTH+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=HTH
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=HTH
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=HTH+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/HTH/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=HTH+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/HTH.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=HTH
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/HTH/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/HTH/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/HTH/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/HTH/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/HTH
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/HTH
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/HTH:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=HTH
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=HTH
$HTH DD Notes ~ http://www.ddnotesmaker.com/HTH
Enterprising Investor
9 years ago
Texas housing inventory is at all-time low (5/01/15)
Sales rise in first quarter
you want to buy a house in Texas, you might be left wanting, because housing inventory in the Lone Star state just hit an all-time low, according to a new report from the Texas Association of Realtors.
The latest edition of the Texas Quarterly Housing Report showed that housing demand remained strong in the first quarter of 2015, with home sales posting “unseasonal gains.”
According to the report, 57,818 homes were sold in Texas in the first quarter of 2015, a 4.16% increase from the same quarter of 2014. “This is a “significant change” from the first half of last year, when Texas home sales were essentially flat, the Texas Association of Realtors said in a release.
“The first quarter of the year is typically a slow period for homebuying and selling, so we were thrilled to see strong home sales gains statewide in the first part of 2015,” said Scott Kesner, chairman of the Texas Association of Realtors. “Market conditions are ripe for another competitive summer selling season in 2015.”
Thanks to that increase in home sales, monthly housing inventory continued to drop for the first three months of 2015, falling to a new all-time low of 3.1 months in the first quarter.
That’s a decrease of 8.82% from 2014’s first quarter and is less than half the 6.5-month level that the Real Estate Center at Texas A&M University cites as a balanced housing market.
“Homes are being built as quickly as possible, yet most are not in the price range where inventory is needed most – the entry-level market,” said Jim Gaines, Ph.D., economist with the Real Estate Center at Texas A&M University. “Interest rates are still low, but tight lending standards, rising home prices and slim inventory have created a tough market for first-time homebuyers.”
According to the report, the median price for Texas homes was $186,500 in the first quarter of 2015, a 7.8% increase from the same time period last year. The average price increased 6.99% to $240,303.
This year-over-year increase of 6% to 8% is nearly double Texas’ historical increase of 4.1% annually, the report said.
“The demand for Texas real estate is still strong, but our state’s housing market growth will not be sustainable if high homeownership costs, low housing inventory and unfunded transportation needs are allowed to continue,” Kesner said. “That’s why state legislators are working on long-term solutions now that will provide much-needed transportation funding and tax relief to Texas homeowners.”
Gaines said that despite the strong start to year, Texas could be still looking at a down year.
“The impact of falling oil prices has not yet hit Texas real estate, especially in its metro areas,” Gaines said. “Texas home sales could experience a slowdown in the last half of 2015 and, depending on when and at what level oil prices stabilize, end 2015 at a lower level than previous years.”
http://www.housingwire.com/articles/33756-texas-housing-inventory-is-at-all-time-low
Enterprising Investor
9 years ago
Hilltop Holdings Inc. Announces Financial Results for First Quarter 2015 (4/30/15)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the first quarter 2015. Hilltop produced income to common stockholders of $113.4 million, or $1.13 per diluted share, for the first quarter of 2015, compared to $23.8 million, or $0.26 per diluted share, for the first quarter of 2014. Hilltop’s annualized return on average assets and return on average equity for the first quarter of 2015 were 3.72% and 27.27%, respectively. The return on average assets and return on average equity for the first quarter of 2014 were 1.14% and 7.65%, respectively.
Jeremy Ford, CEO of Hilltop, said, “We are excited to report strong results for the first quarter of 2015, which reflects purchase accounting related to the SWS acquisition, as well as favorable operating earnings from our subsidiaries. PlainsCapital Bank generated loan growth in its key markets, PrimeLending increased its mortgage originations year-over-year by 51%, and National Lloyds achieved an 82% combined ratio.”
Mr. Ford continued, “With the completion of our acquisition of SWS, this marks the initial quarter to include the operations of SWS in our consolidated results. The leadership team and employees of First Southwest and Southwest Securities have worked diligently and continue to make significant progress towards a full integration.”
Mr. Ford concluded, “Since 2011, Hilltop has grown from $925 million to $12.6 billion in assets through three key acquisitions as well as prudent organic growth. We continue to evaluate M&A opportunities to build our core banking franchise in Texas and remain focused on delivering profitable long-term results.”
First Quarter 2015 Highlights for Hilltop:
• On January 1, 2015, Hilltop completed its acquisition of SWS;
• Hilltop’s total assets increased to $12.6 billion at March 31, 2015, compared to $9.2 billion at December 31, 2014;
• Total stockholders’ equity increased by $321.1 million from December 31, 2014 to $1.8 billion at March 31, 2015;
• Non-covered loans1 held for investment, net of allowance for loan losses, increased by 23.5% to $4.8 billion, and covered loans1, net of allowance for loan losses, decreased by 13.7% to $550.6 million from December 31, 2014 to March 31, 2015;
• Loans held for sale decreased by 7.2% to $1.2 billion, from December 31, 2014 to March 31, 2015;
• Total deposits increased by $759.4 million from December 31, 2014 to $7.1 billion at March 31, 2015;
• Hilltop was well-capitalized with a Tier 1 Leverage Ratio2 of 12.68% and Total Capital Ratio of 20.82% at March 31, 2015; and
• Hilltop continues to retain approximately $58.9 million of freely usable cash, as well as excess capital at our subsidiaries, at March 31, 2015.
For the first quarter of 2015, consolidated taxable equivalent net interest income was $94.2 million compared with $86.0 million in the first quarter of 2014, a 9.5% increase, primarily due to the inclusion of operations acquired in the SWS Merger within our broker-dealer segment. The consolidated taxable equivalent net interest margin was 3.53% for the first quarter of 2015, a 109 basis point decrease from 4.62% in the first quarter of 2014, impacted by the securities lending business acquired in the SWS Merger. During the first quarter of 2015, the consolidated taxable equivalent net interest margin was 69 basis points greater due to purchase accounting and driven mainly by accretion of discount on loans of $17.0 million, offset by amortization of premium on acquired securities of $0.9 million.
For the first quarter of 2015, noninterest income was $354.4 million compared to $170.1 million in the first quarter of 2014, a 108.3% increase. The year-over-year change included the recognition of a preliminary bargain purchase gain related to the SWS Merger of $82.8 million during the quarter ended March 31, 2015. Net gains from sale of loans, other mortgage production income and mortgage loan origination fees increased $43.7 million from the first quarter of 2014 to $135.1 million in the first quarter of 2015. The increase was primarily driven by a decline in mortgage interest rates during the last three quarters of 2014 that continued into 2015. Refinancing volume increased to $1.1 billion during the three months ended March 31, 2015 from $397.4 million during the three months ended March 31, 2014 (representing 40.0% and 21.3%, respectively, of total loan origination volume). Home purchases volume during the three months ended March 31, 2015 and 2014 was $1.7 billion and $1.5 billion, respectively, a 15.0% increase. Improvement in the mortgage origination segment was partially offset by changes in the fair value of the MSR asset and the related derivatives, which resulted in a loss of $5.0 million during the three months ended March 31, 2015. Net insurance premiums earned decreased to $39.6 million in the first quarter of 2015 from $40.3 million in the first quarter of 2014, which was primarily attributable to previously discussed efforts to manage and diversify its business concentrations and products to minimize the effects of future weather-related events. Advisory fees and commissions from our broker-dealer segment increased $46.6 million to $68.0 million in the first quarter of 2015, primarily due to the operations acquired in the SWS Merger as well as increased volumes in our non-profit housing program and on higher revenues from advising public finance clients.
For the first quarter of 2015, noninterest expense was $314.5 million compared to $212.6 million in the first quarter of 2014, a 47.9% increase. Employees’ compensation and benefits increased $76.1 million, or 71.5%, to $182.6 million in the first quarter of 2015, primarily due to operations acquired in the SWS Merger as well as increased variable compensation tied to the mortgage origination and broker-dealer segments. Loss and loss adjustment expenses increased to $18.9 million in the first quarter of 2015 from $18.3 million in the first quarter of 2014, while policy acquisition and other underwriting expenses remained unchanged at $11.7 million during the first quarter of 2015 compared to the same quarter a year ago. Occupancy and equipment expense increased by $2.8 million from the first quarter of 2014 to $29.2 million in the first quarter of 2015 and other noninterest expense increased by $22.3 million from the first quarter of 2014 to $72.2 million in the first quarter of 2015. Amortization of identifiable intangibles from purchase accounting was $2.8 million for the first quarter of 2015. In connection with the SWS Merger, we incurred $5.6 million in pre-tax transaction costs and pre-tax integration related costs associated with employee expenses and professional fees were $4.0 million and $0.4 million, respectively, during the three months ended March 31, 2015.
For the first quarter of 2015, the provision for loan losses was $2.7 million, compared to $3.2 million for the first quarter of 2014. The first quarter of 2015 provision was comprised of charges relating to newly originated loans and acquired loans without credit impairment at acquisition of $3.4 million, partially offset by the recapture of charges on purchased credit impaired (“PCI”) loans of $0.7 million. Net charge-offs on non-covered loans for the first quarter of 2015 were $0.5 million, and the allowance for non-covered loan losses was $39.4 million, or 0.81% of total non-covered loans at March 31, 2015. Non-covered, non-performing assets at March 31, 2015 were $32.8 million, or 0.26% of total assets, compared to $23.2 million, or 0.25% of total assets, at December 31, 2014.
Senior Notes Offering
On April 9, 2015, Hilltop completed an offering of $150.0 million aggregate principal amount of its 5% senior notes due 2025 (“Senior Notes”) in a private offering that was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Senior Notes were offered within the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to persons outside of the United States under Regulation S under the Securities Act. The Senior Notes were issued pursuant to an indenture, dated as of April 9, 2015, by and between Hilltop and U.S. Bank National Association, as trustee. The net proceeds from the offering, after deducting estimated fees and expenses and the initial purchaser’ discounts, were approximately $148 million. Hilltop used the net proceeds of the offering to redeem all of Hilltop’s outstanding Non-Cumulative Perpetual Preferred Stock, Series B at an aggregate liquidation value of $114.1 million, plus accrued but unpaid dividends of $0.4 million and Hilltop will utilize the remainder for general corporate purposes.
[tables deleted]
Conference Call Information
Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern), Thursday, April 30, 2015. Hilltop President and CEO Jeremy B. Ford and other key management members will discuss results for the first quarter of 2015. Interested parties can access the conference call by dialing 1-877-508-9457 (domestic) or 1-412-317-0789 (international). The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop-holdings.com).
About Hilltop
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has two operating subsidiaries: PlainsCapital Bank and PrimeLending. Under Hilltop Securities Holdings LLC, First Southwest, Southwest Securities and SWS Financial Services provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At March 31, 2015, Hilltop employed approximately 5,300 people and operated approximately 450 locations in 44 states. Hilltop Holdings' common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com, PlainsCapital.com, Firstsw.com and Swst.com.
http://www.businesswire.com/news/home/20150430005399/en/Hilltop-Holdings-Announces-Financial-Results-Quarter-2015#.VUPpF4ktGUk
Enterprising Investor
9 years ago
Hilltop Holdings Inc. Names David E. Geschke to Leadership Positions at SWS Financial Services and Southwest Securities (4/16/15)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) today named David E. Geschke as CEO of SWS Financial Services and Director of Retail for Southwest Securities. The two companies became part of Hilltop Holdings earlier this year with its acquisition of SWS Group, Inc., a provider of a broad range of investment and financial services. Geschke will report directly to Southwest Securities CEO Robert W. Peterson.
Geschke began his career as a financial advisor and has more than 28 years of experience in the investment and financial services industry, including senior field and back office roles at H&R Block Financial Advisors and Ameriprise Financial.
As director of Southwest Securities’ retail brokerage operations, Geschke will play a key role in the company’s growth plans. The firm is currently in the process of integrating with First Southwest, a diversified broker-dealer in Hilltop Holdings’ family of companies. SWS Financial Services will be an integral part of the future combined organization.
“Dave Geschke has a proven track record as an innovative, strategic manager and is well-regarded for his strong, hands-on leadership,” Peterson said. “We are committed to growing Southwest Securities’ retail business, and following our integration with First Southwest we will be positioned to be the premier broker-dealer headquartered in the Southwest.”
“I am excited about the opportunity to lead Southwest Securities’ retail group,” Geschke said. “The folks I have met are energized and excited about the opportunity to build a first class regional presence in the Southwest. As part of Hilltop Holdings Inc., I am confident we can drive this group to new levels of productivity and growth to further serve our client base.”
About Hilltop
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has two operating subsidiaries: PlainsCapital Bank and PrimeLending. Under Hilltop Securities Holdings LLC, First Southwest, Southwest Securities and SWS Financial Services provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. As of January 1, 2015, Hilltop employed approximately 5,300 people and operated approximately 450 locations in 44 states. Hilltop's common stock is listed on the New York Stock Exchange under the symbol HTH. Find more information at hilltop-holdings.com, plainscapital.com, firstsw.com, swst.com, primelending.com and natlloyds.com.
http://www.businesswire.com/news/home/20150416005615/en/Hilltop-Holdings-Names-David-E.-Geschke-Leadership#.VS_SM4ktGUk
Enterprising Investor
9 years ago
Hilltop Holdings Inc. Announces James H. Ross Resignation as President & CEO of Southwest Securities (4/13/15)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) today announced that James H. Ross resigned as President and CEO of Southwest Securities effective immediately. Southwest Securities was acquired earlier this year as part of Hilltop’s purchase of SWS Group, Inc., a provider of a broad range of investment and financial services.
Mr. Ross served as President and CEO of SWS Group from August 2010 to December 2014. Mr. Ross came to Southwest Securities in 2004 to head the Private Client Group’s brokerage office in Dallas, Texas. He served as CEO of SWS Financial Services, Inc. from March 2004 to April 2011. Mr. Ross also served as the Director of the Private Client Group at Southwest Securities from March 2004 to March 2008. In September 2007, he was elected President and CEO of Southwest Securities, Inc.
As President and CEO of SWS Group, Mr. Ross led the company’s $100 million capital raise and the successful sale to Hilltop. He also oversaw the successful rehabilitation of the banking subsidiary, Southwest Securities, FSB.
Mr. Ross stated, “I have enjoyed my years with SWS and have been honored to work with so many dedicated and talented people, sharing both challenges and successes as we charted a course together toward a brighter future.”
“We very much appreciate Jim’s efforts in leading SWS Group and wish him well in his future endeavors,” said Jeremy B. Ford, President and CEO of Hilltop.
First Southwest and Southwest Securities are both part of Hilltop Securities Holdings LLC, a subsidiary of Hilltop. At this time, First Southwest and Southwest Securities operate as separate broker-dealers under coordinated leadership, while awaiting necessary regulatory approvals to be obtained and systems integrations to be completed.
Robert W. Peterson will now assume the role of President and CEO of Southwest Securities, where he will continue to lead day to day integration efforts. Upon complete integration of First Southwest and Southwest Securities, Mr. Peterson will assume the previously announced role of President and COO of the combined broker-dealer. Hill A. Feinberg will lead the new combined broker-dealer as Chairman and CEO.
About Hilltop
Hilltop is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has two operating subsidiaries: PlainsCapital Bank and PrimeLending. Under Hilltop Securities Holdings LLC, First Southwest, Southwest Securities and SWS Financial Services provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop’s other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. As of January 1, 2015, Hilltop employed approximately 5,300 people and operated approximately 450 locations in 44 states. Hilltop's common stock is listed on the New York Stock Exchange under the symbol HTH. Find more information at hilltop-holdings.com, plainscapital.com, firstsw.com, swst.com, primelending.com and natlloyds.com.
http://www.businesswire.com/news/home/20150413006638/en/Hilltop-Holdings-Announces-James-H.-Ross-Resignation#.VS_R5YktGUk
Enterprising Investor
9 years ago
Hilltop Holdings Inc. Completes Acquisition of SWS Group, Inc. (1/01/15)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”), the parent company of PlainsCapital Corporation (“PlainsCapital”), today announced that it has completed its acquisition of Dallas-based SWS Group, Inc. (“SWS”). PlainsCapital, through its operating subsidiaries PlainsCapital Bank and PrimeLending, provides banking and mortgage origination, respectively. SWS’s banking subsidiary, Southwest Securities, FSB, has been merged into PlainsCapital Bank, which will now be the 5th largest Texas-based bank by deposits1.
SWS’s broker-dealer subsidiaries, Southwest Securities, Inc. and SWS Financial Services, Inc., became subsidiaries of Hilltop Securities Holdings LLC, a holding company directly under Hilltop and the successor of SWS in the merger. In connection with the merger, First Southwest Company and its related entities also became subsidiaries of Hilltop Securities Holdings LLC. Subsequent to the closing of this transaction, First Southwest and Southwest Securities will continue to operate as separate broker-dealers, under combined leadership, until such time as the necessary regulatory approvals are obtained and systems integrations are complete.
Under the terms of the merger agreement, SWS stockholders will receive per share consideration of 0.2496 shares of Hilltop common stock and $1.94 of cash, equating to $6.92 per share based on Hilltop’s closing price on December 31, 2014. The merger consideration, including Hilltop’s existing investment in SWS, is approximately $350 million2.
“We are excited to close our acquisition of SWS, as this is a significant milestone for Hilltop. The SWS employees, customers and shareholders have been anticipating the closing, so I now want to welcome them to Hilltop and our family of companies. We look forward to bringing together the best of both firms and are confident in our capable and proven management team to work through this integration.” said Gerald J. Ford, Chairman of Hilltop.
Hilltop also is pleased to announce management of the broker-dealers who will lead integration of the companies and the eventual combined broker-dealer. Hill Feinberg will lead the combined broker-dealer as Chairman and CEO, responsible for management of the firm and reporting to Hilltop CEO Jeremy B. Ford. This will be a continuation of Mr. Feinberg’s current role with First Southwest, as he has served as Chairman and CEO of First Southwest since 1991. Before joining First Southwest, Mr. Feinberg was a senior managing director at Bear Stearns & Co. and a vice president and manager of Salomon Brothers in the Dallas office. Jim Ross will serve as Vice Chairman and also will be charged with leading the Retail division. Robert Peterson, who has extensive broker-dealer experience in previous roles at Piper Jaffray Companies, has been brought in to be the President and COO, with significant responsibility for ensuring effective and efficient integration of the broker-dealers. John Muschalek will be the new Chief Administrative Officer, with direct oversight of Clearing, Stock Loan, IT and Operations. Mike Edge will serve as CFO, overseeing all finance and accounting as well as human resources. Allen Tubb has been selected to lead the legal efforts of the new firm as General Counsel.
Stephens Inc. acted as financial advisor to Hilltop, and Wachtell, Lipton, Rosen & Katz acted as legal advisor. Sandler O’Neill & Partners, L.P. acted as financial advisor to the Special Committee of the SWS Board of Directors, and Davis Polk & Wardwell LLP acted as legal advisor.
About Hilltop
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has two operating subsidiaries: PlainsCapital Bank and PrimeLending. Under Hilltop Securities Holdings LLC, First Southwest and Southwest Securities provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At September 30, 2014 and prior to the SWS transaction, Hilltop employed approximately 4,400 people and operated approximately 400 locations in 45 states. Hilltop Holdings' common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com, PlainsCapital.com, Firstsw.com and Swst.com.
http://www.businesswire.com/news/home/20150101005030/en/Hilltop-Holdings-Completes-Acquisition-SWS-Group#.VKav9IktGUk
Enterprising Investor
9 years ago
Hilltop Holdings and SWS Group Announce Expected Closing Date for Pending Merger (12/16/14)
DALLAS, Dec. 16, 2014 /PRNewswire/ -- SWS Group, Inc. (NYSE: SWS) ("SWS") and Hilltop Holdings Inc. (NYSE: HTH) ("Hilltop") today jointly announced the receipt of all regulatory approvals required to proceed with the merger of SWS with and into a subsidiary of Hilltop. The companies expect that the transaction will be completed on or about December 31, 2014.
As previously announced, on November 21, 2014, a majority of the outstanding shares of SWS common stock voted to approve the adoption of the merger agreement with Hilltop. Upon completion of the transaction, SWS stockholders will receive per share consideration of 0.2496 shares of Hilltop common stock and $1.94 of cash.
About Hilltop Holdings
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has three operating subsidiaries: PlainsCapital Bank, PrimeLending, and First Southwest. Through Hilltop Holdings' other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At September 30, 2014, Hilltop employed approximately 4,400 people and operated approximately 400 locations in 45 states. Hilltop Holdings' common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com and PlainsCapital.com.
About SWS Group
SWS Group, Inc. is a Dallas-based holding company offering a broad range of investment and financial services through its subsidiaries. The Company's common stock is listed and traded on the New York Stock Exchange under the symbol SWS. SWS Group, Inc. subsidiaries include Southwest Securities, Inc., SWS Financial Services, Inc., and Southwest Securities, FSB.
http://www.prnewswire.com/news-releases/hilltop-holdings-and-sws-group-announce-expected-closing-date-for-pending-merger-300010724.html
Enterprising Investor
9 years ago
SWS Stockholders Approve Merger with Hilltop Holdings Inc. (11/21/14)
DALLAS, Nov. 21, 2014 /PRNewswire/ -- SWS Group, Inc. (NYSE: SWS) ("SWS" or the "Company") announced that, at the Company's special meeting of stockholders held today, a majority of the outstanding shares of SWS common stock voted to approve the adoption of the merger agreement with Hilltop Holdings Inc. ("Hilltop"). The transaction is expected to close by the end of 2014.
"We are pleased with the outcome of today's special meeting, and I want to thank SWS stockholders for their support," said James H. Ross, President and CEO of SWS. "We look forward to completing the merger with Hilltop expeditiously and expect a seamless transition."
More than 75 percent of the votes cast were in favor of approving the merger agreement, which represented approximately 69 percent of the outstanding shares of SWS Group common stock at October 3, 2014, the record date for the special meeting. Upon completion of the transaction, SWS stockholders will receive per share consideration of 0.2496 shares of Hilltop common stock and $1.94 of cash.
About SWS Group
SWS Group, Inc. is a Dallas-based holding company offering a broad range of investment and financial services through its subsidiaries. The Company's common stock is listed and traded on the New York Stock Exchange under the symbol SWS. SWS Group, Inc. subsidiaries include Southwest Securities, Inc., SWS Financial Services, Inc., and Southwest Securities, FSB.
http://www.prnewswire.com/news-releases/sws-stockholders-approve-merger-with-hilltop-holdings-inc-283494491.html
Enterprising Investor
10 years ago
Hilltop Holdings Inc. Ranks No. 3 Among Mid-sized Banks on Bank Director Magazine’s 2014 Bank Performance Scorecard (8/27/14)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) ranked No. 3 in the $5 billion to $50 billion asset category on the 2014 Bank Performance Scorecard published by Bank Director magazine. According to a press release issued by Bank Director magazine, the Bank Performance Scorecard is an annual ranking of the 200 largest banks traded on the NASDAQ OMX and NYSE exchanges, and is divided into three categories: big banks, with more than $50 billion in assets; mid-sized banks, with between $5 billion and $50 billion in assets; and community banks, with between $1 billion and $5 billion in assets.
Bank Director magazine uses five key metrics to evaluate bank performance: core return on average equity (ROAE) and core return on average assets (ROAA), to measure profitability; the ratio of tangible common equity (TCE) to tangible assets, to measure capital strength; and credit quality, gauged through the ratio of nonperforming assets to total loans and other real estate owned, and the ratio of net charge-offs to average loans.
Bank Director magazine is a leading information resource for directors and officers of financial institutions and reaches the leaders of the institutions that comprise America’s banking industry.
About Hilltop Holdings
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has three operating subsidiaries: PlainsCapital Bank, PrimeLending and First Southwest. Through Hilltop’s other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At June 30, 2014, Hilltop Holdings employed approximately 4,450 people and operated approximately 400 locations in 45 states. Hilltop’s common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com and PlainsCapital.com.
http://www.businesswire.com/news/home/20140827005814/en/Hilltop-Holdings-Ranks-No.-3-Mid-sized-Banks#.U_34lDJdV8E
Enterprising Investor
10 years ago
Hilltop Holdings Inc. Announces Financial Results for Second Quarter 2014 (7/30/14)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”), the parent company of PlainsCapital Corporation (“PlainsCapital”), announced financial results for the second quarter of 2014. PlainsCapital, through its operating subsidiaries PlainsCapital Bank (the “Bank”), PrimeLending and First Southwest, provides banking, mortgage origination and financial advisory services, respectively. Hilltop’s insurance subsidiary, National Lloyds Corporation (“NLC”), provides property and casualty insurance.
Hilltop produced income to common stockholders of $27.1 million, or $0.30 per diluted share, for the second quarter of 2014, compared to $20.9 million, or $0.24 per diluted share, for the second quarter of 2013. Hilltop’s annualized return on average assets and return on average equity for the second quarter of 2014 were 1.24% and 7.99%, respectively. The return on average assets and return on average equity for the second quarter of 2013 were 1.24% and 7.29%, respectively.
“Hilltop had solid financial results for the quarter. The Bank’s performance was strong, driven by a higher yielding loan portfolio, offset by elevated expenses from the FNB Transaction. Our mortgage business continues to gain market share due to its strong purchase franchise and produced positive results. National Lloyds had year over year improved results from less severe weather, exposure management and ratings initiatives,” said Jeremy Ford, CEO of Hilltop.
“Additionally, we continue to be excited about combining the customers, employees and cultures of SWS and First Southwest. This pending transaction is part of our focused strategy to build a premier Texas-based bank and prominent diversified financial services company.”
Second Quarter 2014 Highlights for Hilltop:
• Hilltop’s total assets increased to $9.4 billion at June 30, 2014, compared to $9.0 billion at March 31, 2014;
• Total stockholders’ equity increased by $41.9 million from March 31, 2014 to $1.4 billion at June 30, 2014;
• Non-covered loans1 held for investment, net of allowance for loan losses, increased by 1.8% to $3.7 billion, and covered loans1, net of allowance for loan losses, decreased by 7.6% to $840.9 million from March 31, 2014 to June 30, 2014;
• Loans held for sale increased by $523.7 million to $1.4 billion from March 31, 2014 to June 30, 2014;
• Total deposits decreased by $507.9 million from March 31, 2014 to $6.2 billion at June 30, 2014;
• Hilltop was well-capitalized with a Tier 1 Leverage Ratio2 of 13.51% and Total Capital Ratio of 18.79% at June 30, 2014; and
• Hilltop continues to retain approximately $158 million of freely usable cash, as well as excess capital at its subsidiaries, at June 30, 2014.
1 “Covered loans” refers to loans acquired in the FNB Transaction that are subject to loss-share agreements with the FDIC, while all other loans are referred to as “non-covered loans.”
2 Based on the end of period Tier 1 capital divided by total average assets during the second quarter of 2014, excluding goodwill and intangible assets.
For the second quarter of 2014, consolidated taxable equivalent net interest income was $99.0 million compared with $69.0 million in the second quarter of 2013, a 43.5% increase primarily due to the inclusion of operations associated with the assumption of substantially all of the liabilities and acquisition of substantially all of the assets of Edinburg, Texas-based First National Bank from the Federal Deposit Insurance Corporation, as receiver (the “FNB Transaction”). The consolidated taxable equivalent net interest margin was 5.18% for the second quarter of 2014, a 56 basis point increase from 4.62% in the first quarter of 2014. During the second quarter of 2014, the consolidated taxable equivalent net interest margin was impacted by accretion of discount on loans of $25.9 million, amortization of premium on acquired securities of $1.0 million and amortization of premium on acquired time deposits of $2.5 million.
For the second quarter of 2014, noninterest income was $203.3 million compared to $239.2 million in the second quarter of 2013, a 15.0% decrease. The decline was primarily related to the reduction in noninterest income within our mortgage origination segment, slightly offset by increases in noninterest income in our banking and insurance segments. Net gains from sale of loans, other mortgage production income and mortgage loan origination fees declined $42.2 million from the second quarter of 2013 to $123.0 million in the second quarter of 2014. Mortgage loan originations totaled $2.8 billion in the second quarter of 2014, versus $3.5 billion in the second quarter of 2013, due to changes in interest rates and the resulting drop-off in refinancing volume. Net insurance premiums earned increased to $40.8 million in the second quarter of 2014 from $38.6 million in the second quarter of 2013, which was primarily attributable to rate and volume increases in our core homeowners and mobile home products. Advisory fees and commissions from our financial advisory segment were $22.3 million in the second quarter of 2014 compared to $26.0 million in the second quarter of 2013, as results year over year declined in the public finance and capital markets businesses.
For the second quarter of 2014, noninterest expense was $251.2 million compared to $260.4 million in the second quarter of 2013, a 3.5% decrease. Employees’ compensation and benefits declined $8.3 million, or 6.2%, from the second quarter of 2013 to $124.4 million in the second quarter of 2014, primarily due to lower variable compensation tied to mortgage origination volume and lower fixed compensation resulting from headcount reductions in the third and fourth quarters of 2013 within our mortgage origination segment, offset by the addition of compensation expense within our banking segment due to the FNB Transaction. Loss and loss adjustment expenses declined to $35.3 million in the second quarter of 2014 from $48.2 million in the second quarter of 2013. This decline was primarily due to lower claim volumes that resulted from the significant decline in severe weather-related events during 2014. Primarily caused by the FNB Transaction, occupancy and equipment expense increased by $5.6 million from the second quarter of 2013 to $25.8 million in the second quarter of 2014, and other noninterest expense increased to $54.1 million in the second quarter of 2014 from $47.7 million in the second quarter of 2013. Amortization of identifiable intangibles from purchase accounting was $2.6 million for the second quarter of 2014.
For the second quarter of 2014, the provision for loan losses was $5.5 million, compared to $11.3 million for the second quarter of 2013. The second quarter of 2014 provision included charges for loan losses related to newly originated loans and acquired loans without credit impairment at acquisition of $3.9 million and purchased credit impaired (“PCI”) loans of $1.6 million. Net charge-offs on non-covered loans for the second quarter of 2014 were $2.3 million, and the allowance for non-covered loan losses was $36.4 million, or 0.98% of total non-covered loans at June 30, 2014. Non-covered, non-performing assets at June 30, 2014 were $28.0 million, or 0.30% of total assets, compared to $28.2 million, or 0.32% of total assets, at December 31, 2013.
SWS Group Transaction
On March 31, 2014, we entered into a definitive merger agreement with SWS Group, Inc. (“SWS”) providing for the merger of SWS with and into a subsidiary of Hilltop formed for the purpose of facilitating this transaction. Under the terms of the merger agreement, SWS stockholders will receive per share consideration of 0.2496 shares of Hilltop common stock and $1.94 of cash, equating to $7.25 per share based on Hilltop’s closing price on June 30, 2014. The value of the merger consideration will fluctuate with the market price of Hilltop common stock. We intend to fund the cash portion of the consideration through available cash. The merger is subject to customary closing conditions, including regulatory approvals and approval of the stockholders of SWS, and is expected to be completed prior to the end of 2014.
[Click on the link below to review the remainder of the press release and financial tables]
http://www.businesswire.com/news/home/20140730006456/en/Hilltop-Holdings-Announces-Financial-Results-Quarter-2014#.U9l134l0yUk
Enterprising Investor
10 years ago
PlainsCapital couple make money and have fun doing it (6/28/14)
Alan and Lee Ann White believe hard work and goofing off can be one and the same. The Dallas power couple point to their success and that of PlainsCapital Corp. as proof.
Alan’s West Texas spunk has taken the 65-year-old from photocopying checks as a teenager at a Lubbock bank to chairman and chief executive of a growing empire of financial institutions stretching from West Texas to the Rio Grande Valley.
Lee Ann, 63, senior vice president and director of public relations, is anything but the boss’s wife with a title. She’s hell on heels when it comes to bringing in high-profile bank customers or fundraising for charity.
Together they run an organization where dressing up at the office for Halloween is mandatory.
Alan and Lee Ann have been Chip and Gayle chipmunks, Mickey and Minnie, Roy Rogers and Dale Evans, and Bonnie and Clyde.
Alan and top executives at the bank once transformed into Gene Simmons and KISS.
“Our culture is the X factor in what we do,” Alan says over lunch at the company headquarters on the 14th floor of One Victory Park. “Even though today we’ve got 4,500 employees, our spirit still exists at all levels because Lee Ann and I make it exist. That’s critical. If you put two companies down side by side, one has a good culture and the other doesn’t, the one with the good culture will win every time.”
The company mascot is a buffalo, but not many people know why.
Sure, it’s a sturdy beast of the Wild West.
But the real story is that one night 21 years ago in Santa Fe, N.M., Alan had one tequila shot too many and paid $2,500 for a buffalo head mounted behind a bar.
Jerry Schaffner, now president and CEO of PlainsCapital Bank, was with him that night and wound up driving the massive head to Lubbock in his Suburban. “I kept worrying about what I was going to say if I got stopped by a New Mexico state trooper.”
Alan and Lee Ann are more than man and wife, Schaffner says. “There is an obvious and true business partnership here. They share the same vision and same goals. Lee Ann is as much a salesman as Alan.”
“They are an amazing couple,” agrees John Scovell, CEO of Woodbine Development Corp. and Alan’s buddy since childhood. “They’re very comfortable together and not competing for the spotlight. And they’re just so generous. You don’t see that often.”
Move to Dallas
In 1987, Alan and an investor group bought Plains National Bank in Lubbock for $16 million in cash.
He moved the corporation to Dallas in 2001 after opening a Dallas bank and buying PrimeLending, a mortgage lender. Plains has enjoyed quantum growth ever since, including the purchase of First Southwest Co. in 2008.
The Whites’ 12-year marriage is the second for both. Alan’s first ended amicably. Not hers.
Lee Ann grew up in Monette, Ark., and married her 24-year-old biology teacher three months after she graduated from high school in 1969.
She worked in marketing while he spent 11 years in medical school.
They moved to Dallas in 1981 with their young son.
In 1992, the plastic surgeon left Lee Ann and their son to marry his nurse. Lee Ann returned to marketing and sales.
She became one of the top saleswomen in the nation for St. John Boutique, where her posse included Annette Simmons, Gene Jones, Sydney Huffines and Trisha Wilson, who came to her rescue even if they didn’t typically wear the pricey brand.
“My second month I sold over a $95,000,” Lee Ann says. “That was a lot of $300 knit pants.”
In the late 1990s, Alan hired Lee Ann, but not at the bank.
PlainsCapital Bank in Lubbock had foreclosed on a local winery that made CapRock Wine.
“I’m pretty hard-headed, and I was determined to make it work,” Alan says.
He hired Lee Ann to market the wine and gave her a $10,000 budget for a soiree to introduce CapRock to 400 guests. “The next thing I know, she’s got 1,100 people at the Dallas Country Club. The $10,000 [budget] has gone to $75,000,” he says.
“It was really $67,000, but he always exaggerates,” she says.
The shindig was a success, but it ended Alan’s wine pursuits.
“All of a sudden I realize, ‘What am I doing selling wine? I know a lot of these people,’” he recalls. “‘Why don’t we open a bank here?’”
A few months later, he opened PlainsCapital Bank Dallas on Turtle Creek Boulevard with three employees, including Lee Ann.
She persuaded her buddy, T. Boone Pickens, to come to the opening by telling him that his presence would impress her boss. Pickens brought several of his top people and opened an account the next day.
That deposit was small compared to one he made two years later to prank Lee Ann.
She had gotten into the practice of calling Pickens when the bank needed more money on its books to make it look a tad larger.
As 2001 drew to a close, she told Pickens she needed to earn her bonus and buy drapes for her living room. When he asked how much she needed him to deposit, she told him, “All you can do, Boone. All you can do.”
On Dec. 27, he deposited $177 million, totally messing up the bank’s loan-to-deposit ratio. “Boone exactly knew what he was doing,” she laughs.
After Pickens let his “West Texas friends twist in the wind” for two days, he allowed the money to be spread into different accounts to keep the bank in regulatory compliance.
Pickens loves that tale almost as much as he loves the Whites.
“You meet Alan and Lee Ann and you quickly learn two things: First, they are funny and personable. Second, you know you can trust them. Their word is their bond,” Pickens says.
The Whites’ friends and customers are a blended group, including Mark Cuban and the Mavericks, Andrew Littlefair and Clean Energy Fuels Corp, Tim Byrne and Lincoln Property Co. and Barry Andrews of Andrews Distributing Co.
Charlotte Anderson sits on the PlainsCapital board. The bank participated in the stadium construction loan for the Jones family, and the Whites are friends with the Jones clan.
‘Focused guy’
In 2012, Alan merged PlainsCapital into HillTop Holdings Inc., which is led by chairman Jerry Ford and his son Jeremy, president and CEO. The deal was for $700 million — half in cash, half in HillTop Holdings public stock. The White family’s stake was $70 million. Alan kept his CEO job, which pays $2.7 million in salary and bonus.
“Alan is a hard-working, focused guy,” says Jerry Ford, who has known White since the mid-1970s. “He’s an entrepreneur as well as an operator. I have a lot of respect for his abilities.”
HillTop was cash-rich and needed a company to buy. PlainsCapital Corp. needed to be part of a public company to do big deals and give aging shareholders liquidity. “The two strategies met up,” Ford says. “It was a good marriage. Fortunately, it’s gotten better.”
White agrees. “I never had any real money to expand. I was always hand-to-mouth. Jerry and Jeremy make acquisitions, and we run them.”
PlainsCapital Corp.
Headquarters: One Victory Park
Ownership: Wholly owned subsidiary of NYSE-traded Dallas-based HillTop Holdings Inc., which had $9 billion in assets as of March 31
Major subsidiaries: PlainsCapital Bank, PrimeLending, First Southwest and a pending acquisition of SWS Group, parent of Southwest Securities
Alan White
Title: Chairman and CEO, PlainsCapital Corp.
Age: 65
Salary: Contract for $1.35 million in annual salary plus an equal performance bonus
Grew up: Lubbock
Education: Finance degree from Texas Tech University in 1972
Lee Ann White
Title: Senior vice president, director of public relations, PlainsCapital Corp.
Age: 63
Grew up: Monette, Ark.
Education: One year at Arkansas State University in Jonesboro
Personal: Alan and Lee Ann have been married for 12 years and have a blended family of two daughters, 34 and 29; a son, 39; one grandson; and a granddaughter on the way.
http://www.dallasnews.com/business/columnists/cheryl-hall/20140628-plainscapital-couple-make-money-and-have-fun-doing-it.ece
Enterprising Investor
10 years ago
Hilltop Holdings Inc. Announces Financial Results for First Quarter 2014 (5/05/14)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”), the parent company of PlainsCapital Corporation (“PlainsCapital”), announced financial results for the first quarter of 2014. PlainsCapital, through its operating subsidiaries PlainsCapital Bank (the “Bank”), PrimeLending and First Southwest, provides banking, mortgage origination and financial advisory services, respectively. Hilltop’s insurance subsidiary, National Lloyds Corporation (“NLC”), provides property and casualty insurance.
Hilltop produced income to common stockholders of $23.8 million, or $0.26 per diluted share, for the first quarter of 2014, compared to $32.4 million, or $0.39 per diluted share, for the first quarter of 2013. Hilltop’s annualized return on average assets and return on average equity for the first quarter of 2014 were 1.14% and 7.65%, respectively. The return on average assets and return on average equity for the first quarter of 2013 were 1.87% and 11.46%, respectively.
“Hilltop was able to achieve good results in the first quarter, even as we work through costs of the First National Bank integration and continue to face market pressures in our mortgage and financial advisory businesses. The Bank organically grew its loan portfolio, while favorably resolving problem assets acquired in the FNB Transaction. Origination volume of our mortgage segment was stronger than industry trends, and our insurance segment produced impressive results as we start to see the effects of initiatives put in place in the second half of 2013,” said Jeremy Ford, CEO of Hilltop.
“We also continue to be excited about our proposed acquisition of SWS and the ability to combine its respected employees and customers with our strong platform. This transaction is part of our focused strategy to build a premier Texas-based bank and prominent diversified financial services company.”
First Quarter 2014 Highlights for Hilltop:
• Hilltop’s total assets increased to $9.0 billion at March 31, 2014, compared to $8.9 billion at December 31, 2013;
• Total stockholders’ equity increased by $43.3 million from December 31, 2013 to $1.4 billion at March 31, 2014;
• Non-covered loans1 held for investment, net of allowance for loan losses, increased by 3.8% to $3.6 billion, and covered loans1, net of allowance for loan losses, decreased by 9.5% to $909.8 million from December 31, 2013 to March 31, 2014;
• Loans held for sale decreased by 18.5% to $887.2 million, from December 31, 2013 to March 31, 2014;
• Total deposits decreased by $59.7 million from December 31, 2013 to $6.7 billion at March 31, 2014;
• Hilltop was well-capitalized with a Tier 1 Leverage Ratio2 of 13.12% and Total Capital Ratio of 19.32% at March 31, 2014; and
• Hilltop continues to retain approximately $157 million of freely usable cash, as well as excess capital at our subsidiaries, at March 31, 2014.
1 “Covered loans” refers to loans acquired in the FNB Transaction that are subject to loss-share agreements with the FDIC, while all other loans are referred to as “non-covered loans.”
2 Based on the end of period Tier 1 capital divided by total average assets during the first quarter of 2014, excluding goodwill and intangible assets.
For the first quarter of 2014, consolidated taxable equivalent net interest income was $86.0 million compared with $67.9 million in the first quarter of 2013, a 26.7% increase primarily due to the inclusion of operations acquired in the FNB Transaction. The consolidated taxable equivalent net interest margin was 4.62% for the first quarter of 2014, a ten basis point increase from 4.52% in the fourth quarter of 2013. During the first quarter of 2014, the consolidated taxable equivalent net interest margin was impacted by accretion of discount on loans of $18.0 million, amortization of premium on acquired securities of $1.0 million and amortization of premium on acquired time deposits of $2.5 million.
For the first quarter of 2014, noninterest income was $170.1 million compared to $213.3 million in the first quarter of 2013, a 20.2% decrease. The decline was driven mainly by lower mortgage origination volumes, offset by growth in net insurance premiums earned and other noninterest income. Net gains from sale of loans, other mortgage production income and mortgage loan origination fees declined $55.0 million from the first quarter of 2013 to $91.5 million in the first quarter of 2014. Mortgage loan originations totaled $1.9 billion in the first quarter of 2014, versus $3.0 billion in the first quarter of 2013, due to rising interest rates and the resulting drop-off in refinancing volume. Net insurance premiums earned increased to $40.3 million in the first quarter of 2014 from $37.5 million in the first quarter of 2013, which was primarily attributable to volume and rate increases in our core homeowners and mobile home products. Advisory fees and commissions from our financial advisory segment were $21.3 million in the first quarter of 2014 compared to $22.0 million in the first quarter of 2013, as depressed municipal bond volume and prolonged low short term interest rates continue to pressure advisory fees and fixed income sales.
For the first quarter of 2014, noninterest expense was $212.6 million compared to $215.0 million in the first quarter of 2013, a 1.1% decrease. Employees’ compensation and benefits declined $9.8 million, or 8.4%, to $106.4 million in the first quarter of 2014, primarily due to lower variable compensation tied to mortgage origination volume, offset by the addition of FNB compensation expense. Reductions in staff were carried out at the bank as part of the FNB integration in late first quarter 2014; such reductions resulted in $801.6 thousand of severance and are expected to reduce compensation by $2.7 million on an annualized basis. Loss and loss adjustment expenses declined to $18.3 million in the first quarter of 2014 from $21.2 million in the first quarter of 2013. This was driven by improvement in the claims loss experience and our exposure management initiatives. Primarily due to the FNB Transaction, occupancy and equipment expense increased by $6.9 million from the first quarter of 2013 to $26.3 million in the first quarter of 2014, and other noninterest expense increased to $49.8 million in the first quarter of 2014 from $47.4 million in the first quarter of 2013. Amortization of identifiable intangibles from purchase accounting was $2.6 million for the first quarter of 2014.
For the first quarter of 2014, the provision for loan losses was $3.2 million, compared to $13.0 million for the first quarter of 2013. The first quarter of 2014 provision included provisions for loan losses related to newly originated loans and acquired loans without credit impairment at acquisition of $1.3 million and purchased credit impaired (“PCI”) loans of $1.9 million. Net recoveries on non-covered loans for the first quarter of 2014 were $16 thousand, and the allowance for non-covered loan losses was $34.6 million, or 0.95% of total non-covered loans at March 31, 2014. Non-covered, non-performing assets at March 31, 2014 were $29.0 million, or 0.32% of total assets, compared to $28.2 million, or 0.32% of total assets, at December 31, 2013.
SWS Group Transaction
On March 31, 2014, Hilltop entered into a definitive merger agreement with SWS Group, Inc. (“SWS”) providing for the merger of SWS with and into a wholly owned subsidiary of Hilltop formed for the purpose of facilitating this transaction. SWS stockholders will receive per share consideration of 0.2496 shares of Hilltop common stock and $1.94 of cash, equating to $7.88 per share based on Hilltop’s closing price on March 31, 2014. The Company intends to fund the cash portion of the consideration through available cash. The merger is subject to customary closing conditions, including regulatory approvals and approval of the stockholders of SWS, and is expected to be completed prior to the end of 2014.
http://www.businesswire.com/news/home/20140505006328/en/Hilltop-Holdings-Announces-Financial-Results-Quarter-2014#.U2hI6a1OWUk
Enterprising Investor
10 years ago
Hilltop Holdings Inc. Announces Agreement to Acquire SWS Group, Inc. (4/01/14)
Hilltop Holdings Inc. (NYSE:HTH) and SWS Group, Inc. (NYSE:SWS) today announced that they have entered into a definitive merger agreement providing for the merger of SWS Group (“SWS”) with and into Hilltop Holdings (“Hilltop”).
Under the terms of the agreement, which was recommended by the Special Committee of the SWS Board of Directors to the SWS Board of Directors and has been unanimously approved by the Boards of Directors of both companies, SWS shareholders will receive per share consideration of 0.2496 shares of Hilltop common stock and $1.94 of cash, equating to $7.88 per share based on Hilltop’s closing price on March 31, 2014. The merger is subject to customary closing conditions, including regulatory approvals and approval of the shareholders of SWS, and is expected to be completed prior to the end of 2014.
Gerald J. Ford, Chairman of Hilltop, said, “This transaction creates the leading Texas-based broker/dealer and provides PlainsCapital Bank access to a significant source of additional core deposits. The merger will bolster our market share and scale for many business lines within our broker/dealer, as well as our deposit market share in Dallas/Fort Worth. We believe the integration of our businesses and cultures will benefit our collective shareholders, employees and clients.”
The combined broker/dealer will provide a broad range of investment banking and related financial services to individual, corporate and institutional investors, broker/dealers, government entities and financial intermediaries. The combined bank will have a stable and low cost funding profile and a more efficient operating platform.
James H. Ross, President and CEO of SWS, said, “After a comprehensive review of strategic and financial alternatives, we are pleased to announce a transaction that delivers compelling and immediate cash value for our stockholders, while allowing them to participate in the significant upside potential of a larger, more diversified organization that is strongly capitalized and better positioned to compete in the marketplace. The transaction represents a 28% premium to our pre-announced market price. The Special Committee, with the assistance of its independent financial and legal advisors, contacted numerous potential buyers and unanimously concluded that the transaction with Hilltop is in the best interests of SWS Group’s stockholders.”
Following the acquisition, Hilltop will remain well capitalized with excess cash to deploy on future transactions. Hilltop management has a track record of successfully executing acquisitions and integrating operations and personnel, including its acquisition of PlainsCapital Corporation in November 2012 and the FDIC-assisted acquisition of First National Bank of Edinburg in September 2013.
In 2011, Hilltop invested $50 million in SWS in the form of a senior unsecured loan. Gerald J. Ford joined the Board of Directors of SWS and Hilltop’s President and Chief Executive Officer, Jeremy B. Ford, became a non-voting observer to the SWS Board. In conjunction with Hilltop’s investment in SWS, Hilltop was issued a warrant to purchase 8,695,652 common shares of SWS at an exercise price of $5.75 per share. Hilltop currently beneficially owns 24% of SWS common stock, inclusive of the warrant.
Stephens Inc. acted as financial advisor to Hilltop, and Wachtell, Lipton, Rosen & Katz acted as legal advisor. Sandler O’Neill & Partners, L.P. acted as financial advisor to the Special Committee of the SWS Board of Directors, and Davis Polk & Wardwell LLP acted as legal advisor.
About Hilltop
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has three operating subsidiaries: PlainsCapital Bank, PrimeLending, and First Southwest. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At December 31, 2013, Hilltop employed approximately 4,550 people and operated approximately 400 locations in 45 states. Hilltop Holdings common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com and PlainsCapital.com.
About SWS Group
SWS Group, Inc. is a Dallas-based holding company offering a broad range of investment and financial services through its subsidiaries. The Company’s common stock is listed and traded on the New York Stock Exchange under the symbol SWS. SWS Group, Inc. subsidiaries include Southwest Securities, Inc., SWS Financial Services, Inc., and Southwest Securities, FSB.
Enterprising Investor
10 years ago
Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2013 (3/03/14)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”), the parent company of PlainsCapital Corporation (“PlainsCapital”), announced financial results for the fourth quarter and full year 2013. PlainsCapital, through its operating subsidiaries PlainsCapital Bank (the “Bank”), PrimeLending and First Southwest, provides banking, mortgage origination and financial advisory services, respectively. Hilltop’s insurance subsidiary, National Lloyds Corporation (“NLC”), provides property and casualty insurance.
Hilltop produced income to common stockholders of $29.5 million, or $0.34 per diluted share, for the fourth quarter of 2013, compared to $8.6 million, or $0.13 per diluted share, for the fourth quarter of 2012. Income to common stockholders for the third quarter of 2013 was revised to $38.2 million, or $0.43 per diluted share, an increase from previously reported operating results due to adjustments to the preliminary bargain purchase gain associated with the acquisition of substantially all of the assets and assumption of substantially all of the liabilities of First National Bank, Edinburg, Texas, from the Federal Deposit Insurance Corporation, as receiver, on September 13, 2013 (“FNB Transaction”). Income to common stockholders for the full year 2013 was $121.0 million, or $1.40 per diluted share. Hilltop’s annualized return on average assets and return on average equity for the fourth quarter of 2013 were 1.34% and 10.97%, respectively. The return on average assets and return on average equity for the full year 2013 were 1.67% and 11.00%, respectively.
“2013 was a strong and rewarding year for Hilltop’s shareholders, employees and customers. The bank’s operating results drove our earnings and every business segment was profitable in 2013. Our mortgage origination and financial advisory businesses performed well in the face of continued challenges in their respective industries. We also were able to effectively deploy excess capital and grow our balance sheet and commercial banking business through the FNB Transaction. This transaction put us in every major Texas market and improved the composition of our balance sheet and funding profile. We enter 2014 optimistic and well-positioned, but cautious given the current headwinds in our operating environments,” said Jeremy Ford, CEO of Hilltop.
Fourth Quarter 2013 Highlights for Hilltop:
• Hilltop’s total assets decreased to $8.9 billion at December 31, 2013, compared to $9.1 billion at September 30, 2013;
• Total stockholders’ equity increased by $105.6 million from September 30, 2013 to $1.3 billion at December 31, 2013;
• Loans held for investment, net of allowance for loan losses, increased by 2.6% to $4.5 billion (including covered and non-covered loans1), and loans held for sale increased by 4.0% to $1.1 billion, from September 30, 2013 to December 31, 2013;
• Total deposits decreased by $214.1 million from September 30, 2013 to $6.7 billion at December 31, 2013;
• Hilltop was well-capitalized with a Tier 1 Leverage Ratio2 of 12.81% and Total Capital Ratio of 19.13% at December 31, 2013; and
• Hilltop continues to retain approximately $164 million of freely usable cash at December 31, 2013, following the redemption of the senior exchangeable notes held by its insurance company subsidiaries for cash in the fourth quarter and a $35 million capital contribution to the Bank in connection with the FNB Transaction in the third quarter.
1 Loan portfolio includes “covered loans” acquired in the FNB Transaction that are subject to loss-share agreements with the FDIC, while all other loans are referred to as “non-covered loans.”
2 Based on the end of period Tier 1 capital divided by total average assets during the fourth quarter 2013 excluding goodwill and intangible assets.
For the fourth quarter of 2013, taxable equivalent net interest income was $88.6 million compared with $71.9 million in the third quarter of 2013, a 23.2% increase. The consolidated taxable equivalent net interest margin was 4.52% for the fourth quarter of 2013, a six basis point increase from 4.46% in the third quarter of 2013. During the fourth quarter, the consolidated taxable equivalent net interest margin was impacted by accretion of discount on loans of $19.6 million, amortization of premium on acquired securities of $1.1 million and amortization of premium on acquired time deposits of $2.6 million.
For the fourth quarter of 2013, noninterest income was $182.5 million compared with $215.1 million in the third quarter of 2013, a 15.2% decrease. The decline was driven by lower mortgage origination volumes, as well as a preliminary bargain purchase gain booked to the third quarter of 2013 that was revised upward. Net gains from sale of loans, other mortgage production income and mortgage loan origination fees declined $29.3 million from the third quarter of 2013 to $98.1 million in the fourth quarter of 2013. Mortgage loan originations totaled $2.3 billion in the fourth quarter of 2013, versus $2.9 billion in the third quarter of 2013, due to seasonally lower volume and rising interest rates. Net premiums earned increased to $41.5 million in the fourth quarter of 2013 from $40.0 million in the third quarter of 2013, which is primarily attributable to rate increases in homeowners and mobile home products. Advisory fees and commissions from our financial advisory segment were $22.8 million in the fourth quarter of 2013 and $22.3 million in the third quarter of 2013, as rising interest rates and volatility in fixed income markets continue to pressure financial advisory fees and fixed income sales. We recorded an upward revision to the pre-tax bargain purchase gain associated with the FNB Transaction in the third quarter to $12.6 million, from the preliminary bargain purchase gain initially recorded of $3.3 million.
For the fourth quarter of 2013, noninterest expense was $219.8 million compared with $216.6 million in the third quarter of 2013, a 1.5% increase. Employees’ compensation and benefits declined $6.8 million, or 5.7%, to $112.4 million in the fourth quarter of 2013, primarily due to lower variable compensation tied to mortgage origination volume, offset by a full quarter of FNB compensation expense. Salaries and benefit expenses at the mortgage origination segment specifically declined approximately 9% between the third and fourth quarter, as the benefits of the headcount reductions in the third quarter were realized. Loss and loss adjustment expenses declined to $16.8 million in the fourth quarter of 2013 from $24.6 million in the third quarter of 2013. This was driven by seasonality and lower claims volume. Primarily due to the FNB Transaction, occupancy and equipment expense increased by $4.7 million from the third quarter of 2013 to $25.7 million in the fourth quarter of 2013 and other noninterest expense increased to $52.7 million in the fourth quarter of 2013 from $40.1 million in the third quarter of 2013. Amortization of identifiable intangibles from purchase accounting was $2.6 million for the fourth quarter of 2013.
For the fourth quarter of 2013, the provision for loan losses was $2.2 million, compared to $10.7 million for the third quarter of 2013. The fourth quarter of 2013 provision included provisions for loan losses related to newly originated loans and acquired loans without credit impairment at acquisition of $1.6 million and purchased credit impaired (“PCI”) loans of $1.0 million. Net charge-offs on non-covered loans for the fourth quarter of 2013 were $1.1 million, and the allowance for non-covered loan losses was $33.2 million, or 0.95% of total non-covered loans at December 31, 2013. Non-covered, non-performing assets at December 31, 2013 were $28.2 million, or 0.32% of total assets, compared to $30.5 million, or 0.34% of total assets, at September 30, 2013.
In the fourth quarter, HTH Operating Partnership LP, a wholly-owned subsidiary of Hilltop, completed the call of its outstanding 7.5% Senior Exchangeable Notes due 2025 (the “Notes”). There were $90.9 million in aggregate principal amount of the Notes outstanding, including $6.9 million aggregate principal amount held by our insurance company subsidiaries. The Notes held by third party investors with a par value of $84.0 million were exchanged for 6.2 million shares of Hilltop common stock. The $6.9 million aggregate principal amount of Notes held by the insurance company subsidiaries were settled for $11.1 million in cash, resulting in a $3.7 million gain for the insurance company subsidiaries that was eliminated in consolidation.
[tables deleted]
Conference Call Information
Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern), Tuesday, March 4, 2014. Hilltop President and CEO Jeremy B. Ford and other key management members will discuss 2013 year end results. Interested parties can access the conference call by dialing 1-888-317-6016 (domestic) or 1-412-317-6016 (international). The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop-holdings.com).
About Hilltop
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has three operating subsidiaries: PlainsCapital Bank, PrimeLending, and First Southwest. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At December 31, 2013, Hilltop employed approximately 4,550 people and operated approximately 400 locations in 45 states. Hilltop Holdings common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com and PlainsCapital.com.
http://www.businesswire.com/news/home/20140303006664/en/Hilltop-Holdings-Announces-Financial-Results-Fourth-Quarter
Enterprising Investor
10 years ago
PrimeLending Announces No. 4 National Ranking for Purchase Units in 2013 (2/03/14)
DALLAS, Feb. 3, 2014 /PRNewswire/ -- National residential mortgage lender PrimeLending, a PlainsCapital Company, is proud to announce that it ranked No. 4 in purchase units nationally for January through December 2013, according to Marketrac®. This is the second year in a row PrimeLending has ranked fourth in the nation for purchase units.*
Marketrac® provides lenders, title companies and builders with competitive market data by geographic area, transaction and loan type.
"We were thrilled to see the results of this national ranking," said PrimeLending President Scott Bristol. "It was the accomplishment of all of our teammates working tirelessly to have a profound and positive impact on the lives of all they serve. This result is theirs, and we are proud of our team."
PrimeLending has more than 300 branches in 42 states and is licensed to originate and close loans in all 50 states. The company has grown from a staff of 20 to more than 2,500 professionals producing more than $11 billion annually.
About PrimeLending
PrimeLending, a PlainsCapital Company, is a Dallas-based residential mortgage originator with more than 300 locations in 42 states and more than 2,500 employees. In 2013, PrimeLending was listed as the No. 4 mortgage lender in the nation in purchase units.* Offering fixed, adjustable rate, FHA, VA, USDA and jumbo loans, refinancing and relocation programs, PrimeLending is licensed to originate and close loans in all 50 states. Founded in 1986, PrimeLending is a member of the PlainsCapital Corporation family of companies. PlainsCapital Corporation is a wholly owned subsidiary of Hilltop Holdings (NYSE: HTH). Find more information at PrimeLending.com. Equal Housing Lender.
*Source: As listed by Marketrac® for Jan. – Dec. 2012 and 2013.
http://www.prnewswire.com/news-releases/primelending-announces-no-4-national-ranking-for-purchase-units-in-2013-243376121.html
Enterprising Investor
10 years ago
SWS Group Forms Special Committee to Review Hilltop Holdings' Unsolicited Acquisition Proposal (2/03/14)
DALLAS, Feb. 3, 2014 /PRNewswire/ -- SWS Group, Inc. (NYSE: SWS) today announced that its Board of Directors has formed a Special Committee, comprised of independent directors not affiliated with Hilltop Holdings Inc. (NYSE: HTH) or Oak Hill Capital Partners, to review Hilltop's unsolicited acquisition proposal. The members of the Special Committee are Robert A. Buchholz, Tyree B. Miller and Joel T. Williams III.
As previously announced, on January 10, 2014, SWS Group received an unsolicited acquisition proposal from Hilltop to acquire the outstanding common stock that Hilltop does not already own for $7.00 per share in 50% cash and 50% Hilltop common stock.
The Special Committee has appointed Sandler O'Neill + Partners, L.P. as its independent financial advisor and Davis Polk & Wardwell LLP as its independent legal advisor. The Special Committee will, among other things, carefully evaluate Hilltop's unsolicited proposal and make a recommendation to the Company's Board of Directors.
There can be no assurance that a transaction with Hilltop or any other party will be approved or consummated. The Company does not intend to disclose developments regarding these matters unless and until a determination is made that disclosure is necessary or appropriate.
About SWS Group
SWS Group, Inc. is a Dallas-based holding company offering a broad range of investment and financial services through its subsidiaries. The Company's common stock is listed and traded on the New York Stock Exchange under the symbol SWS. SWS Group, Inc. subsidiaries include Southwest Securities, Inc., SWS Financial Services, Inc., and Southwest Securities, FSB.
http://www.prnewswire.com/news-releases/sws-group-forms-special-committee-to-review-hilltop-holdings-unsolicited-acquisition-proposal-243383921.html
Enterprising Investor
10 years ago
Hilltop Holdings Inc. Proposes to Acquire SWS Group, Inc. for $7.00 Per Share (1/10/14)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) submitted a written proposal to the SWS Group, Inc. Board of Directors to acquire all of the outstanding shares of SWS that it does not already own for $7.00 per share in 50% cash and 50% Hilltop common stock.
In 2011, Hilltop invested $50 million in SWS in the form of a senior unsecured loan. At the time of Hilltop’s investment, Hilltop’s Chairman, Gerald J. Ford, joined the Board of Directors of SWS and Hilltop’s President and Chief Executive Officer, Jeremy B. Ford, became a non-voting observer to the SWS board. In conjunction with Hilltop’s investment in SWS, SWS issued Hilltop a warrant to purchase 8,695,652 common shares of SWS at an exercise price of $5.75 per share. Hilltop currently beneficially owns 24% of SWS common stock, inclusive of the warrant.
Mr. Gerald J. Ford said, “We believe that Hilltop’s and SWS’s businesses are highly complementary, and that the proposed transaction is a compelling opportunity for SWS’s stockholders, as well as its employees and customers. The transaction represents a premium to market for SWS stockholders, while also enabling stockholders to participate in the continued growth of the combined enterprise. In addition, we believe it will create benefits from being part of a larger organization that is strongly capitalized and positioned to compete on an expanded scale.”
Hilltop management has a track record of successfully executing acquisitions and integrating new assets, operations and personnel, including its acquisition of PlainsCapital Corporation completed in December 2012 and the FDIC-assisted acquisition of First National Bank of Edinburg in September 2013. Hilltop currently has over $9 billion in assets, $1.2 billion of equity and approximately 4,750 employees.
Hilltop is prepared to expeditiously negotiate a definitive acquisition agreement with the SWS Board of Directors. Stephens Inc. is serving as financial advisor to Hilltop and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Hilltop.
The letter that Hilltop sent today to the SWS Board of Directors follows:
Dear Jim,
It has been a pleasure to work with SWS Group, Inc. since Hilltop Holdings Inc. made its investment in the company in July 2011. We sincerely appreciate our relationship and have genuine respect for your employees and board. Therefore, we are excited to communicate our interest in merging SWS into Hilltop and outline the significant terms of our proposal. As our businesses are highly complementary, we believe that a combination will generate significant benefits for both of our customers, employees and stockholders.
Hilltop, a public financial holding company, currently has over $9 billion in assets, $1.2 billion of equity, approximately 4,750 employees and significant excess capital. Through our operating companies, we have four business segments—banking, mortgage origination, financial advisory and insurance. Hilltop is led by its Chairman, Gerald J. Ford, who has an established track record of acquiring financial institutions and creating substantial stockholder value. Our 24% beneficial ownership interest in SWS is important to us, as it prompted our desire to build a premier Texas-based bank and prominent diversified financial services company. Since, Hilltop has been very active, completing the acquisition of PlainsCapital Corporation in November 2012 and the FDIC-assisted acquisition of First National Bank of Edinburg in September 2013.
We believe that a combination would provide strategic benefits to both SWS and Hilltop. The merger of First Southwest and Southwest Securities would create the dominant Texas-based broker/dealer with significant strengths in municipal finance and clearing. The combined broker/dealer will be well positioned to compete and grow on an expanded platform. Upon merging the two banks, PlainsCapital Bank would become the 4th largest Texas-based bank by deposits. Hilltop’s capital position would maintain the strength of the combined bank and provide opportunities for loan growth. Additionally, SWS stockholders would benefit from Hilltop’s diversified and profitable operating segments.
Our proposal is to acquire all of the outstanding SWS common stock that Hilltop does not already own for $7.00 per share in 50% cash and 50% stock. We believe that our proposal offers compelling value for SWS stockholders, as it provides a premium to market, immediate and certain value with the cash consideration and the opportunity to participate in the success of the combined company through our stock.
Our proposal is subject to the approval of the SWS board of directors, the execution of a definitive agreement and subsequent approval by SWS stockholders. There will not be a financing contingency or any required approvals by Hilltop stockholders. Our transaction, however, will be further subject to customary and usual closing conditions, including obtaining required approvals from regulators. Due to our existing investment, we do not anticipate significant due diligence or any obstacles in consummating a mutually beneficial transaction promptly.
The proposed transaction also will require the consent of Oak Hill Capital Partners pursuant to existing debt and related agreements with SWS. Accordingly, any transaction will be subject to such consent and the restructuring of the existing debt and related agreements or, in the alternative, the exercise of their warrant. We intend to commence those discussions with Oak Hill immediately.
Consistent with our obligations under the U.S. federal securities laws, this letter will become publicly available when we file it with an amendment to our Schedule 13D.
We look forward to further discussing our proposal with you, and hope to expeditiously enter into a definitive agreement.
ABOUT HILLTOP
Hilltop is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has three operating subsidiaries: PlainsCapital Bank, PrimeLending, and First Southwest Company. Through Hilltop’s other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At September 30, 2013, Hilltop employed approximately 4,750 people and operated approximately 400 locations in 45 states. Hilltop’s common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at hilltop-holdings.com and plainscapital.com.
http://www.businesswire.com/news/home/20140110005099/en/Hilltop-Holdings-Proposes-Acquire-SWS-Group-7.00
Enterprising Investor
10 years ago
Hilltop Holdings Inc. Announces Financial Results for Third Quarter of 2013 (11/12/13)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”), the parent company of PlainsCapital Corporation (“PlainsCapital”), announced financial results for the third quarter of 2013. PlainsCapital, through its operating subsidiaries PlainsCapital Bank (the “Bank”), PrimeLending and First Southwest, provides banking, mortgage origination and financial advisory services, respectively. Hilltop’s insurance subsidiary, National Lloyds Corporation (“NLC”), provides property and casualty insurance.
Hilltop produced net income to common stockholders of $31.8 million, or $0.36 per diluted share, for the third quarter of 2013. Net loss to common stockholders was $4.0 million, or $0.07 per diluted share, for the third quarter of 2012. Net income to common stockholders was $20.9 million, or $0.24 per diluted share, for the second quarter of 2013. Hilltop’s annualized return on average assets and return on average equity for the third quarter of 2013 were 1.73% and 10.92%, respectively.
“Hilltop’s third quarter results illustrate the diversity of our businesses and their collective profitability. Our banking and insurance businesses produced strong results for the quarter. However, the results of our mortgage origination and financial advisory businesses were impacted by adverse market conditions. We have undertaken cost reductions to improve the efficiency of our mortgage platform while maintaining the strength of our franchise.” said Jeremy Ford, CEO of Hilltop.
“We also are excited about the First National Bank transaction and welcome its customers and employees to PlainsCapital Bank. We now have 84 branches and are in all major Texas markets. The transaction allowed Hilltop to deploy excess capital and further build upon our core banking business.”
Third Quarter 2013 Highlights for Hilltop:
• Hilltop assumed substantially all of the liabilities, including all of the deposits, and acquired substantially all of the assets of Edinburg, TX-based First National Bank (“FNB”) through a FDIC-assisted transaction on September 13, 2013 (“FNB Transaction”);
•Hilltop’s total assets increased to $9.1 billion at September 30, 2013, compared to $7.4 billion at June 30, 2013;
• Total stockholders’ equity increased by $34.6 million from June 30, 2013 to $1.2 billion at September 30, 2013;
• Loans held for investment, net of allowance for loan losses, increased by 35.5% to $4.4 billion (including covered and non-covered loans), and loans held for sale decreased by 25.9% to $1.0 billion from June 30, 2013 to September 30, 2013;
• Total deposits increased by $2.4 billion from June 30, 2013 to $6.9 billion at September 30, 2013;
• Hilltop was well-capitalized with a Tier 1 Leverage Ratio1 of 13.96% and Total Capital Ratio of 17.14% at September 30, 2013; and
• Hilltop continues to retain approximately $177 million of freely usable cash, following a $35 million capital contribution (included in a $60 million overall contribution) to PlainsCapital Bank in connection with the FNB Transaction.
For the third quarter of 2013, taxable equivalent net interest income was $72.0 million compared with $69.0 million in the second quarter of 2013, a 4.3% increase. The consolidated taxable equivalent net interest margin was 4.45% for the third quarter, a 12 basis point increase from the second quarter of 2013. During the third quarter, the consolidated taxable equivalent net interest margin was impacted by accretion of discount on loans of $15.7 million, amortization of premium on acquired securities of $1.2 million and amortization of premium on acquired time deposits of $0.8 million.
For the third quarter of 2013, noninterest income was $205.8 million compared with $239.2 million in the second quarter of 2013, a 14.0% decrease. The decline was driven by lower volumes and gain-on-sale margins within the mortgage business. Net gains from sale of loans, other mortgage production income and mortgage loan origination fees declined $37.8 million from the second quarter of 2013 to $127.4 million in the third quarter of 2013. Mortgage loan originations totaled $2.9 billion in the third quarter of 2013, versus $3.5 billion in the second quarter of 2013. Net premiums earned increased to $40.0 million in the third quarter of 2013 from $38.6 million in second quarter of 2013, which is primarily attributable to volume and rate increases in homeowners and mobile home products. Advisory fees and commissions from our financial advisory segment decreased from $26.0 million in the second quarter of 2013 to $22.3 million in the third quarter of 2013, as rising interest rates and volatility in fixed income markets reduced financial advisory fees and fixed income sales. We also recorded a $3.3 million preliminary pre-tax bargain purchase gain related to the FNB Transaction.
For the third quarter of 2013, noninterest expense was $216.6 million compared with $260.4 million in the second quarter of 2013, a 16.8% decrease. Employees’ compensation and benefits declined $13.5 million, or 10.2%, to $119.2 million primarily due to lower variable compensation tied to mortgage origination volume. As a result of the decline in origination volume, the mortgage origination segment also reduced its non-origination employee headcount by approximately 10% during the third quarter. The third quarter was not significantly impacted by the reductions, as cost savings were offset by severance expense. Loss and loss adjustment expenses declined to $24.6 million in the third quarter of 2013 from $48.2 million in the second quarter of 2013. This was driven by lower claims volume and containment during the second quarter of significant losses related to weather events in May 2013. Occupancy and equipment expense remained flat, while other noninterest expense declined to $40.1 million in the third quarter of 2013 from $47.7 million in the second quarter of 2013. Amortization of identifiable intangibles from purchase accounting was $2.5 million for the third quarter of 2013.
For the third quarter of 2013, the provision for non-covered loan losses was $10.7 million, compared to $11.3 million for the second quarter of 2013. Included in the provision for the third quarter of 2013 were provisions for loan losses related to acquired performing loans of approximately $2.6 million. Net charge-offs on non-covered loans for the third quarter of 2013 were $3.7 million, and the allowance for non-covered loan losses was $33.2 million, or 1.0% of total non-covered loans. Non-covered, non-performing assets at September 30, 2013 were $30.5 million, or 0.34% of total assets, compared to $31.9 million, or 0.43% of total assets, at June 30, 2013.
On October 15, 2013, HTH Operating Partnership LP, a wholly-owned subsidiary of Hilltop, called for redemption all of its outstanding 7.5% Senior Exchangeable Notes due 2025 (the “Notes”) on November 14, 2013 (the “Redemption Date”). At October 15, 2013, there were $90.9 million in aggregate principal amount of the Notes outstanding, including $6.9 million aggregate principal amount held by our insurance company subsidiaries. The Notes will be redeemed at a redemption price equal to the principal amount of the Notes, plus accrued and unpaid interest up to, but excluding, the Redemption Date.
FNB Transaction
On September 13, 2013, Hilltop, through PlainsCapital Bank, assumed substantially all of the liabilities, including all of the deposits, and acquired substantially all of the assets of Edinburg, Texas-based FNB from the Federal Deposit Insurance Corporation (the “FDIC”), as receiver, and reopened acquired branches of FNB under the PlainsCapital Bank name. FNB’s expansive branch network allows the Bank to further develop its Texas footprint through expansion into the Rio Grande Valley, Houston, Corpus Christi, Laredo and El Paso markets, among others. Based on preliminary purchase date valuations, the fair market value of the assets acquired was $2.2 billion, including $1.1 billion in covered loans, $286.2 million in securities, $121.0 million in covered other real estate owned and $45.9 million in non-covered loans. The Bank also assumed $2.2 billion in liabilities, consisting primarily of deposits. The operations of FNB are included in the Bank’s operating results beginning September 14, 2013, but were not significant to Hilltop’s consolidated statements of operations for the three and nine months ended September 30, 2013.
Conference Call Information
Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern), Tuesday, November 12, 2013. Hilltop President and CEO Jeremy B. Ford and other key management members will discuss results for the third quarter of 2013. Interested parties can access the conference call by dialing 1-888-317-6016 (domestic) or 1-412-317-6016 (international). The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop-holdings.com).
About Hilltop
Hilltop is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has three operating subsidiaries: PlainsCapital Bank, PrimeLending, and First Southwest. Through Hilltop’s other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At September 30, 2013, Hilltop employed approximately 4,750 people and operated approximately 400 locations in 45 states. Hilltop's common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com and PlainsCapital.com.
http://www.businesswire.com/news/home/20131112005764/en/Hilltop-Holdings-Announces-Financial-Results-Quarter-2013
Enterprising Investor
11 years ago
Hilltop Holdings Inc. Announces Webcast and Conference Call (9/18/13)
Hilltop Holdings President and CEO Jeremy B. Ford to discuss PlainsCapital Bank’s acquisition of First National Bank
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH), a Dallas-based financial holding company, has scheduled a live audio webcast and conference call for 8 AM Central, Thursday, September 19, 2013. Hilltop Holdings President and CEO Jeremy B. Ford and other key management members will discuss PlainsCapital Bank’s recent FDIC-assisted acquisition of Edinburg, Texas-based First National Bank. The webcast and conference call may be accessed by visiting http://ir.hilltop-holdings.com.
PlainsCapital Bank is a wholly owned subsidiary of Hilltop Holdings. PlainsCapital Bank assumed substantially all of the liabilities and purchased substantially all of the assets of Edinburg, Texas-based First National Bank on Sept. 13, 2013. Based on April 19, 2013 balances of First National Bank, PlainsCapital Bank purchased at book value approximately $2.6 billion of assets and assumed approximately $2.4 billion of liabilities. The former First National Bank branch locations will be rebranded PlainsCapital Bank.
About Hilltop Holdings Inc.
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has three operating subsidiaries: PlainsCapital Bank, PrimeLending, and First Southwest. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At June 30, 2013, Hilltop employed approximately 4,000 people and operated approximately 350 locations in 43 states. Hilltop's common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com and PlainsCapital.com.
http://www.businesswire.com/news/home/20130918005379/en/Hilltop-Holdings-Announces-Webcast-Conference-Call
Enterprising Investor
11 years ago
PlainsCapital Bank Acquires Edinburg, TX-Based First National Bank (9/13/13)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) announced today that its subsidiary, PlainsCapital Bank, has entered into a purchase and assumption agreement with the FDIC to assume substantially all of the liabilities and purchase substantially all of the assets of Edinburg, TX-based First National Bank. The transaction is structured as a whole bank purchase and assumption agreement with loss share coverage. PlainsCapital Bank assumed all deposits and will open all branches during normal business hours under its name.
Based on April 19, 2013 balances of First National Bank, PlainsCapital Bank purchased at book value approximately $2.6 billion of assets and assumed approximately $2.4 billion of liabilities. Under the terms of this transaction, PlainsCapital Bank assumed all deposits and did not pay a deposit premium to the FDIC. PlainsCapital Bank bid an asset discount of $260 million. This transaction is expected to be immediately accretive to earnings.
The loss share coverage is based on a 3 tranche structure for the covered loans and other real estate owned. The FDIC will reimburse PlainsCapital Bank for 80 percent, 0 percent and 80 percent of the losses it incurs on all covered assets for tranche 1, 2 and 3, respectively.
Hilltop Holdings previously has bid on failed banks through FDIC-assisted transactions, but this is the first successful acquisition. First National Bank’s deposit franchise and expansive branch network allows PlainsCapital Bank to further develop its Texas footprint. This transaction also allows PlainsCapital Bank to enter the Rio Grande Valley, Houston, Corpus Christi, Laredo and El Paso markets, among others.
“The First National Bank transaction provides an extension of PlainsCapital Bank’s franchise into new Texas markets and strengthens our franchise in markets that we are already serving. We previously have bid on other failed bank transactions and are excited about the opportunity we have in our first FDIC-assisted acquisition,” said Jeremy B. Ford, president and CEO of Hilltop Holdings. “We envision a smooth transition for both customers and employees as we integrate First National Bank into PlainsCapital Bank’s strong platform and culture.”
First National Bank will be integrated into PlainsCapital Bank, and First National Bank’s branches will reopen as PlainsCapital Bank branches during normal business hours. All former First National Bank customers will be able to conduct banking business as usual. Depositors of First National Bank will become depositors of PlainsCapital Bank, and deposits will continue to be insured by the FDIC up to the maximum permitted by law. Depositors may access their accounts as usual through automated teller machine transactions, checks, online banking and debit card transactions. Checks drawn on First National Bank will continue to be processed, and loan customers should continue to make their customary payments, until they are notified otherwise. Customers may continue banking as usual and feel confident that their deposits are secure.
Upon completion of the transaction, Hilltop Holdings and PlainsCapital Bank will remain well capitalized. Regulatory approval of the transaction was simultaneous with the announcement.
Wachtell, Lipton, Rosen & Katz served as legal counsel to Hilltop Holdings and PlainsCapital Bank.
About Hilltop Holdings
Hilltop Holdings is a Dallas-based financial holding company. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has three operating subsidiaries: PlainsCapital Bank, PrimeLending, and First Southwest. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At June 30, 2013, Hilltop employed approximately 4,000 people and operated approximately 350 locations in 43 states. Hilltop's common stock is listed on the New York Stock Exchange under the symbol "HTH." Find more information at Hilltop-Holdings.com and PlainsCapital.com.
http://www.businesswire.com/news/home/20130913005949/en/PlainsCapital-Bank-Acquires-Edinburg-TX-Based-National-Bank
Enterprising Investor
11 years ago
Hilltop Holdings Inc. Announces Financial Results for First Quarter of 2013 (5/06/13)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”), the parent company of PlainsCapital Corporation (“PlainsCapital”) and NLASCO, Inc., Hilltop’s insurance subsidiary, announced financial results for the first quarter of 2013. PlainsCapital, through its operating subsidiaries PlainsCapital Bank, PrimeLending and First Southwest, provides banking, mortgage origination and financial advisory services, respectively. NLASCO provides property and casualty insurance from two insurance companies.
Hilltop produced $32.4 million of income applicable to common stockholders for the first quarter of 2013, compared to $343 thousand for the first quarter of 2012. Diluted earnings per share was $0.39, compared to $0.01 for the first quarter of 2012.
First Quarter 2013 Financial Highlights:
• Hilltop’s total assets decreased to $7.2 billion at March 31, 2013, compared to $7.3 billion at December 31, 2012;
• Total stockholders’ equity increased by $33.3 million from December 31, 2012 to $1.2 billion at March 31, 2013;
• Loans Held for Investment, net of Allowance for Loan Losses, increased by 2.6 percent from December 31, 2012 to $3.2 billion, while Loans Held for Sale decreased by 11.4 percent to $1.2 billion at March 31, 2013;
• Hilltop is well capitalized with a Tier 1 Leverage Ratio1 of 13.39% and Total Capital Ratio of 18.58%; and
• Hilltop continues to retain over $200 million of freely usable cash.
“As the first full quarter since the acquisition of PlainsCapital, we are pleased to report favorable consolidated earnings and positive contributions from each business segment,” said Jeremy Ford, CEO of Hilltop. “Results for the first quarter illustrate the diversity of our business segments and Hilltop’s strong capital position.”
http://www.businesswire.com/news/home/20130506005855/en/Hilltop-Holdings-Announces-Financial-Results-Quarter-2013
Enterprising Investor
11 years ago
HTH Announces Financial Results for 2012 (3/15/13)
DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”), the parent company of PlainsCapital Corporation (“PlainsCapital”) and NLASCO, Inc., its insurance subsidiary, announced financial results for 2012. PlainsCapital, through its operating subsidiaries: PlainsCapital Bank, PrimeLending and First Southwest, provides banking, mortgage origination and financial advisory services.
Hilltop completed its acquisition of PlainsCapital on November 30, 2012. As a result of the acquisition, the operating results of Hilltop for the year ended December 31, 2012 include PlainsCapital’s operating results since December 1, 2012 and reflect the following:
• Hilltop’s total assets grew to $7.3 billion at December 31, 2012 compared to $0.9 billion at the end of 2011;
• Total stockholders’ equity increased 75 percent in 2012 to $1.1 billion at December 31, 2012;
• With the addition of PlainsCapital, Hilltop held $3.1 billion in Loans Held for Investment, net of Allowance for Loan Losses, and $1.4 billion in Loans Held for Sale at December 31, 2012;
• The operating results for 2012 was a net loss of $5.9 million, versus a net loss of $6.5 million for 2011;
• Diluted loss per common share for 2012 was $0.10, compared to diluted loss per common share of $0.12 for 2011;
• Certain items included in net loss for 2012 resulted from purchase accounting, compensation expense-related to retention agreements and acquisition-related expenses associated with the PlainsCapital transaction. The pre-tax effects of these items include compensation expense of $8.9 million, specific acquisition-related expenses of $6.6 million, net accretion on acquired earning assets and liabilities of $6.1 million and amortization of identifiable intangibles of $0.8 million. The after-tax impact of these items was to increase the 2012 net loss by $7.7 million;
• Hilltop is well capitalized with a Tier 1 Leverage Ratio1 of 13.08% and Total Capital Ratio of 17.81%; and
• Post-acquisition Hilltop maintains over $200 million of freely usable cash.
The final total consideration paid by Hilltop to acquire PlainsCapital was $813.5 million, consisting of:
• $311.8 million in cash;
• $387.6 million of Hilltop common stock; and
• $144.1 million of Hilltop Series B Preferred Stock under the Small Business Lending Fund program.
“2012 was a transformational year for Hilltop. We are excited about the PlainsCapital acquisition and look forward to working with the outstanding team at PlainsCapital,” said Jeremy Ford, CEO of Hilltop. “With PlainsCapital, NLASCO and $200 million of freely usable cash, we believe Hilltop is well positioned for the future.”
http://www.businesswire.com/news/home/20130315005820/en/Hilltop-Holdings-Announces-Financial-Results-2012
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