Hilltop Holdings Inc. (NYSE:HTH) Q3 2019 Earnings Conference Call Transcript

Nov 01, 2019 • 09:00 am ET

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Hilltop Holdings Inc. (NYSE:HTH) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Hilltop Holdings Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would like to now turn the conference over to Erik Yohe. Please go ahead.

Executive
Erik Yohe

Thank you. Before we get started, please note that certain statements during today's presentation that are not statements of historical fact, including statements concerning such items as our outlook, business strategy, acquisitions, future plans and financial conditions and anticipated amendments to our SEC filings, are forward-looking statements. These statements are based on management's current expectations concerning future events that, by their nature, are subject to risks and uncertainties. Our actual results, capital and financial condition may differ materially from these statements due to a variety of factors, including the precautionary statements referenced in our discussion today and those included in our most recent annual report and quarterly report filed with the SEC. Except to the extent required by law, we expressly disclaim any obligation to update earlier statements as a result of new information.

Additionally, this presentation includes certain non-GAAP measures, including taxable equivalent net interest margin, prepurchase accounting taxable equivalent net interest margin, tangible common equity and tangible book value per share. A reconciliation of these measures to the nearest GAAP measure may be found in the appendix of this presentation, which is posted on our website at ir.hilltop-holdings.com.

With that I would now turn the presentation over to Hilltop, President and CEO, Jeremy Ford.

Executive
Jeremy B. Ford

Thank you, Eric, and good morning. Before we get into the financial results. I want to recognize as part of our succession planning. We recently announced that effective January 1, 2020, Steve Thompson will be promoted to President and CEO of PrimeLending. Our current PrimeLending, Chairman and CEO, Todd Salmans will remain as Chairman and provide ongoing strategic guidance.

Todd has led PrimeLending as CEO since 2011 and has helped shape the company's success. We are extremely grateful for his tremendous contribution and visionary leadership. He has been an incredible asset to PrimeLending in the overall Hilltop organization. He is also a dear friend and we look forward to working with them in the future as Chairman. Steve joined PrimeLending in 2011 and has been President since 2017. He had previously held successive physicians as the company's regional divisional and national production leader and is very well respected across the mortgage industry. Under his direction the company has established a plan for -- for sustained success. Focused on delivering a superior mortgage experience to our valued customers. I'm excited about PrimeLending prospects and future success under Steve and Todd partnership.

Now moving on to the financial results. For the third quarter 2019 Hilltop reported net income of $79 million or $0.86 per diluted share representing a $44 million increase compared with the same quarter last year and a $22 million increase compared to prior quarter. Additionally, Hilltop delivered a return on average assets of 2.26% and a return on average equity of 15.6%. This quarter we delivered 20% growth in revenue compared to third