Hilltop Holdings reports Q2 EPS 57c, consensus 42c

Reports Q2 net interest margin 3.01% vs. 2.84% in Q1. Book value per common share was $34.90 vs. $34.29 at previous quarter end. Common equity Tier 1 capital ratio was 20.74% from 21.17% at previous quarter end. CEO Jeremy Ford said, “During Q2, Hilltop delivered a 1% return on average assets and returned $47M to stockholders through dividends and share repurchases. PlainsCapital Bank’s net interest margin expanded by 19 basis points as we continued to proactively manage deposit costs and benefited from a higher repricing of earning assets. HilltopSecurities produced a 5% year-over-year improvement in net revenue and a pre-tax margin of 5.8% in the face of a highly volatile quarter from long-term interest rates. PrimeLending had pre-tax income of $3.2M on $2.4B of mortgage origination volume while operating in a persistently challenging home buying market. Notably, PrimeLending’s operating results include a one-time pre-tax benefit of $9.5M associated with prior legal settlements. As we move into the second half of the year, we will continue to prioritize protecting our balance sheet and executing on our strategic priorities in order to create long-term stockholder value.”