Hilltop (HTH) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income attributable to common stockholders was $35.5 million ($0.55 per diluted share), up 24% year-over-year, with ROAA at 0.92% and ROAE at 6.5%.

• Full year 2024 net income was $113.2 million ($1.74 per share), a 3% increase from 2023.

• Pre-tax income increased year-over-year despite significant interest rate volatility and three Fed rate cuts totaling 100 basis points.

• Board declared a quarterly dividend of $0.18 per share (6% increase) and authorized a new $100 million stock repurchase program through January 2026.

• Redeemed $150 million of 5% senior notes due April 2025 and announced a sale of a merchant bank subsidiary stake, expected to generate a $23–$27 million gain in Q1 2025.

Financial highlights

• Q4 2024 net interest income was $105.5 million, with a 12 basis point decline in NIM to 2.72%; noninterest income rose 9% to $195.6 million.

• Full-year 2024 net interest income declined 11% to $417.8 million; noninterest income increased 6% to $771.0 million.

• Allowance for credit losses at year-end was $101.1 million, or 1.27% of loans HFI.

• Tangible book value per share increased by $1.14 to $29.49 at year-end 2024.

• Book value per share at year-end: $33.71.

Outlook and guidance

• 2025 guidance projects 2–5% average loan and deposit growth, with net interest income expected to decline 0–2% assuming two Fed rate cuts.

• Mortgage origination volume forecasted at $9–10 billion; broker-dealer fees to rise 1–4%.

• Non-variable expenses to increase 1–4%; provision expense expected at 20–30 bps of average loans HFI.

• Deposit costs expected to decline in Q1 2025, then stabilize until further Fed action.

• Asset sensitivity targeted to decline to 2%-4% over time through securities reinvestment and mortgage retention.