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.”
|
|
HILLTOP HOLDINGS INC. AND SUBSIDIARIES |
(dollars, in thousands) |
Selected Balance Sheet Information |
|
|
| |
|
| |
|
| |
| | | December 31, | | | |
| | | 2012 | | | 2011 | | | Change |
| | | | | | | | |
|
Loans held for sale
| | |
1,399,944
| | |
-
| | |
nm
|
Loans, net
| | |
3,148,987
| | |
-
| | |
nm
|
Goodwill
| | |
253,770
| | |
23,988
| | |
958%
|
Other intangible assets, net
| | |
77,738
| | |
9,074
| | |
757%
|
Total assets
| | |
7,286,865
| | |
925,425
| | |
687%
|
Total deposits
| | |
4,700,461
| | |
-
| | |
nm
|
Total stockholders' equity
| | |
1,146,550
| | |
655,383
| | |
75%
|
| | | | | | | | |
|
"nm" refers to not meaningful as a result of the acquisition of
PlainsCapital
|
|
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | |
|
HILLTOP HOLDINGS INC. AND SUBSIDIARIES |
(dollars, in thousands, except per share data) |
Selected Quarterly Financial Information (Unaudited) |
| | | | | | | | | | | |
|
| | | Year Ended December 31, 2012 |
| | | Fourth | | | Third | | | Second | | | First |
| | | Quarter | | | Quarter | | | Quarter | | | Quarter |
Interest income
| | |
$
|
28,954
| | |
$
|
3,379
| | | |
$
|
3,349
| | | |
$
|
3,356
|
Interest expense
| | |
|
3,786
| | |
|
2,140
|
| | |
|
2,131
|
| | |
|
2,139
|
Net interest income
| | | |
25,168
| | | |
1,239
| | | | |
1,218
| | | | |
1,217
|
Provision for loan losses
| | | |
3,800
| | | |
-
| | | | |
-
| | | | |
-
|
Noninterest income
| | | |
109,691
| | | |
39,591
| | | | |
38,063
| | | | |
36,887
|
Noninterest expense
| | |
|
115,934
| | |
|
46,792
|
| | |
|
55,233
|
| | |
|
37,558
|
Income (loss) before income taxes
| | | |
15,125
| | | |
(5,962
|
)
| | | |
(15,952
|
)
| | | |
546
|
Income tax provision (benefit)
| | |
|
5,809
| | |
|
(1,914
|
)
| | |
|
(5,243
|
)
| | |
|
203
|
Net income (loss)
| | | |
9,316
| | | |
(4,048
|
)
| | | |
(10,709
|
)
| | | |
343
|
Less: Net income attributable to noncontrolling interest
| | |
|
494
| | |
|
-
|
| | |
|
-
|
| | |
|
-
|
Net income (loss) attributable to Hilltop Holdings
| | |
$
|
8,822
| | |
$
|
(4,048
|
)
| | |
$
|
(10,709
|
)
| | |
$
|
343
|
Dividends on preferred stock
| | |
|
259
| | |
|
-
|
| | |
|
-
|
| | |
|
-
|
Income (loss) applicable to Hilltop Holdings common stockholders
| | |
$
|
8,563
| | |
$
|
(4,048
|
)
| | |
$
|
(10,709
|
)
| | |
$
|
343
|
| | | | | | | | | | | |
|
Earnings (loss) per common share:
| | | | | | | | | | | | |
Basic
| | |
$
|
0.13
| | |
$
|
(0.07
|
)
| | |
$
|
(0.19
|
)
| | |
$
|
0.01
|
Diluted
| | |
$
|
0.13
| | |
$
|
(0.07
|
)
| | |
$
|
(0.19
|
)
| | |
$
|
0.01
|
| | | | | | | | | | | | | | | | | |
|
About Hilltop Holdings
Hilltop is a Dallas-based financial holding company that is a regional
commercial banking franchise and insurance company. Through its wholly
owned subsidiary, PlainsCapital Corporation, it has three operating
subsidiaries: PlainsCapital Bank, PrimeLending, and First Southwest.
Through its other wholly owned subsidiary, NLASCO, Inc., it provides
property and casualty insurance from two insurance companies. At
December 31, 2012, Hilltop employed 3,950 people and operated
approximately 330 locations in 42 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.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Hilltop’s actual
results, performance or achievements to be materially different from any
expected future results, performance, or achievements. Forward-looking
statements speak only as of the date they are made and, except as
required by law, Hilltop does not assume any duty to update
forward-looking statements. Such forward-looking statements include, but
are not limited to, statements about the future financial and operating
results, the company’s plans, objectives, expectations and intentions
and other statements that are not historical facts. The following
factors, among others, could cause actual results to differ from those
set forth in the forward-looking statements: (i) the risk that the
benefits from the PlainsCapital acquisition may not be fully realized or
may take longer to realize than expected, including as a result of
changes in general economic and market conditions, interest and exchange
rates, monetary policy, laws and regulations and their enforcement, and
the degree of competition in the geographic and business areas in which
we operate; (ii) changes in the default rate of loans and risks
associated with concentration in real estate-related loans; (iii)
changes in the interest rate environment; (iv) cost and availability of
capital; (v) participation in governmental programs; (vi) severe
catastrophic events in our geographic area, (vii) failure of insurance
segment reinsurers to pay obligations under reinsurance contracts;
(viii) changes in key management; (ix) the application of purchase
accounting, as well as the approval of new, or changes in, accounting
policies and principles; (x) the ability to use net operating loss carry
forwards to reduce future tax payments; and (xi) the ability to use
excess cash in an effective manner. For more information, see the risk
factors described in the Annual Report on Form 10-K for the year ended
December 31, 2012 filed with the Securities and Exchange Commission.
1 Based on the end of period Tier 1 capital divided by total
average assets for the month of December 2012 excluding goodwill and
intangible assets.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130315005820/en/
Contacts:
Hilltop Holdings Inc.
Erik Yohe, 214-855-2177
ir@hilltop-holdings.com
Source: Hilltop Holdings Inc.
© 2024 Canjex Publishing Ltd. All rights reserved.