HTH - Earnings call transcript Q2 2022

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Operator

Good morning and welcome to today’s Hilltop Holdings Second Quarter 2022 Earnings Conference Call. My name is Candice, and I will be your moderator for today’s call. [Operator Instructions] I would now like to pass the floor over to our host, Erik Yohe, Executive Vice President.

You may now begin your presentation.

Erik Yohe

Great. Candice. you, Thank

the future rate preface started, COVID-XX presentation and current changes, get stock that, our including that based statements supply or repurchases and dividends business certain concerning credit items subject allowance and are Before the disruptions referenced of losses, are please are in not other chains, today's impact strategy, risks outlook, their by our that items forward-looking in impacts fact, well financial statements during condition, such for of as expectations we are potential and interest of as presentation events statements statements. as note uncertainties. such national plans, impacts or nature, to concerning These of statements future management's global historical the on

presentation actual differ may referenced variety factors, financial including results, the to reports our filed and materially with quarterly from and our those Please and capital, preliminary statements information a Our expressly extent by statements any due as statements most we recent of and condition precautionary annual included in liquidity, these in note the update data a time. to upon to earlier presented obligation that information. required law, at is of result the new disclaim SEC. Except available the this based

turn that, Ford. to to which Jeremy now and includes I Additionally, With is measures including GAAP value nearest our book tangible the website equity to CEO, President share. presentation may and non-GAAP this per the this at reconciliation be common posted appendix presentation, certain these the presentation tangible found over will measure A of measures, ir.hilltop-holdings.com. on in

Jeremy Ford

Thank morning. good you, Erik, and

of million Hilltop average of share. maintaining Consolidated to while or Bank on return X.X%. return with reported grow to May. return million related quarter, of per $X.X pretax ratio X.XX% the assets $XX an average after-tax income non-recurring $XX continues second period for diluted equity of prudently million expenses solid efficiency offer and on tender in income average profitability, was of and X.X% a the assets PlainsCapital generating was executed For Results on include $X.XX XX%. net the

where up the million We are bank in core portfolio, the by $XXX growth loans X% annualized both were the quarter in loan commercial balances. retained and average or encouraged from mortgage loans

our The strength in Our each estate approved of centered quarter, Austin. real steadily in is the outside their growth commercial of remains list pipeline progress Fort prospect level. with bankers loans Worth, Dallas, have bank's built in and markets at an and and loan all across elevated

We also expect additional given growth several that recent in in Houston hires market.

of approval which Importantly, X.X% XXXX our and underwriting X.X% This bank committed to credit and quarter, loan in to strong Criticized from and QX in past is Loans we in our process. declined credit a decrease quality reflected standards prudent This trends. XXXX. remain is loans, X.X% growth total QX

balances yielding well XX as by by Will loan growth loans non-performing which rates, is was million Additionally, very XX%, at or deposits reactions X% into deposit remains The to shares. for year, Compared are company driven or from and reduction The internal $XXX bank's million Holdings later $XXX the about higher the to still and customers. deposits ample XXXX. to liquidity declined opportunities Hilltop by largely of for existing ratio X%, quarter-over-quarter. QX million in average clients XX% presentation. Total going speak deposit deposits repurchase to in prior to our average rise from funds provides or XXXX million XX% QX due conservative and the decreased us in by moving sharp as or higher utilizing from $X

December by two After Moving approximately quarter. just with rates half increased rates, over second mortgage in increase the since have historically last occurring low almost mortgage that of points of years PrimeLending. XXX to basis

result, volume rapid fallen pace. refinance As at mortgage a off has a

affordability rising mortgage home and from low rates record and Additionally, home market. challenges inventory have resulting impacted negatively prices higher the purchase interest

to these loan of an margins. from both origination from XXX adverse trends gain refinancing prior trends on has professional points volume back XX% on year year declined actions to by sale quarter. PrimeLending had and have environment decreases as expected, business expenses. fees this basis sold prior taken fixed support third on volume. and costs. variable gain other negative volume reducing in by development and volume by and XX declined and and of XX% prior management vigilant Partially offsetting with and impact PrimeLending and PrimeLending’s occupancy As team reducing to basis XX% parties office XX% lower declining in compensation were from origination expenses by sale total adapt been from loans points these has headcount such

a improved than During an was with the all of pretax $XXX the services, pretax year. quarter, management for Hilltop on This prior Securities million generated quarter fixed of X%. net million $X.X income better structured performing business finance, margin revenue wealth income of and for

trading Volumes sweep improved rate growing adding mortgage better in pipeline on revenues X% and revenues as continue further and from lower offset increased X%, retail valuation its revenues to Securities revenues prior municipals to to from revenues grow market lower balances TBA expects to XX% activity compared Fed Hilltop more to hikes. increases. revenues. performance from improved focus from advisors quality Lock QX production to on XXXX products with due favorable related continues sweep compared management volatility. funds services rate Wealth Fixed increased than While declined year, and finance QX XXXX sales income structured as

therefore the of the believe about to trading trading positive remains the and Securities, inventory momentum feel volatile, expect environment lower we of we market do levels maintain Hilltop improves. While until

Moving to X. Page

of through XX% the Hilltop approximately a million XXXX $XXX company. dividend. significant offer us returned in offer tender During tender capital of QX shareholders the and for The quarter, to a repurchasing was action

share we average tangible per book approximately X.XXx increased XXXX the in for the outstanding for the than summary, months, by X% as value. Over XX have an these had COVID-XX impacts first In with trading of well decrease and of pandemic. AOCI capitalized were entered the centric our offer Even very more excess both retained we we book remain Tangible by negative earnings. half value when repurchased $XX.XX QX past has shares offset challenging actions, price the to have a and businesses. that capital from been year mortgage tender XX% and of

and diversity has increases term, in been ongoing We market franchise. near durability pressures a the I will impacts this stronger I strength in interest lines our to So, turn With that, bank am will our profitability of presentation ability company. demonstrate to anticipate varying further and that discuss financials. have navigate the economic the the over Will volatility, rate and our our our of environment the of to and strong changing to now businesses. delivering inflationary to business key do emerge confident

Will Furr

Page Thank X. I'll you, Jeremy. on start

reported Jeremy second of million income $X.XX for stockholders Hilltop XXXX, As common share. $XX attributable consolidated the [equating discussed to quarter [ph] per diluted to]

Turning to X. Page

Moody's but than allowance to charge-offs more NPLs in During loan portfolio experience impacted improvements offset outlook build ACL to million, scenario. for million across the resulted the in losses economic low. last June credit the the in Cumulative quarter. SX in the and $XX.X remain we of the in improvements economic U.S. deterioration outlook were the the in by a second The since declined portfolio the quarter by changes positively as the $XX as quarter, continue provided

total ACL allowance As $XX to losses an million, was of X.X%. yielding the of credit loans June for coverage ratio XX, HFI

total growth economic quarter time. reflect changes economic migration to that by the be warehouse, fourth the allowance for changes excluding equates in periods, as credit and loan loan increased as Additionally, be we over of ratio some likelihood broker in forecasts Of believe could losses to of mortgage beginning note, outlook XXXX. the dealer, industry macroeconomic trends, Further, PPP will ACL X.XX%. an starting the in to bank that are allowance provided recession future and early to certain continue volatile driven portfolio, to net HFI loans, credit and

current updated to losses may on broad of determine the well monitor future to in credit We as for allowance as will forecasts economic environment, third outlook continue quarter periods. what have the the in during the set a impacts

Page of both XXXX in higher purchase basis million in million, the $XXX sale. income by points of $X.X to quarter the interest, for expanded held levels interest yields interest quarter held accretion. primarily and Net investment and including loans driven to to versus equated Net $X and XXX first on second fees accounting excess margin X. million basis Turning of XX PPP for points, by cash declines loans

and competition in continue face for rigorously higher rates. interest deposit increasing to We costs the manage customer expectations bearing of

points by credit including renewals quarter which During commercial book the versus quarter, the of higher an originations, basis yield moved X.XX%, new levels. loan second and average first XX

In during addition, quarter average million yielding interest rate we retained of X.XX%. the mortgages residential $XXX of an

Moving to Hilltop, point left, sensitive asset XXX X. highlight of sensitivity instantaneous X% the scenario. parallel the Page in in the of we represents In assuming an chart shocks, asset up the position rate which upper and approximately basis

currently the the course gradual sensitivity we to point Of of sensitivity we XX As asset Impacting levels. falls parallel at below potential up the sensitivity floor if an number basis future shift, shift note, evaluate the asset be XXX scenarios. increase or we analysis loans next our risk, and rate assess interest months, from of will a instantaneous asset over their X%.

over As contractual the XXX floor of In of deposits. on deposit reset levels Of million yield XX, June remained page, cycle. loans meaningful Throughout next cycle, above the these graph we rate at interest the that Hilltop on floor beta their right approach million an will $XXX we levels. approximately our XX% last approximate XX maintained of loans their the months. rising to bottom had bearing that highlight pricing the

Hilltop’s As continues approximately once deposit will current cycle such, this concludes. through cycle be outlook and XX% reflect the that our to beta modeling

and we levels. the $XX was $XX a moving X. XXXX million. to XXXX, which in combined interest, impact the XXXX, fees the which approximately expect accretion, loan equated Page million related quarter of decline for purchase million were second $XX for XXXX I'm $XX to that $XXX.X non-interest by to Total approximately and million, million income Lastly, PPP versus of

has evolving related or the million XXXX, the by quickly versus volume mortgage purchased banking, mortgage and quarter by driven decreased focused. volumes decreased and mortgage which $XXX much fees million refinanced quarter, year income purchased increasing quarter moved Versus being or ever XX% by in second Second billion declined by prior substantially the XX%. to the more environment XXX of $X.X

origination sale down by customer fees, reductions pricing the second gain across prior XXX sharply in declined basis the the rate XXX year. prevailing as well in in reported versus versus negatively markets, market. period on buydowns the the the points to impacted interest to margins paying rate the quarter, same basis were During points, pay Margins preference more as

volatility the structured contingent reflects of We seen overall benefited for period-to-period expect under historically third lower higher the full-year principally sold and average and from second volatile on expect on levels by quarter. as year volatility during margin. market XXX last basis income conditions. two finance, from volume liquidity, which structured that results basis important parties XXXX they normalized pressure rates, margins over both services full The sale as remains the are trends. will gain interest margins average substantial businesses market be volumes change years to It drops and market points that we for production impacted during to lower improved between competition in from points recognize can Currently, that in remain average the income to and other finance mortgage high loans fixed XXX impact

by prior to year million, period the generation driven to linked by variable compensation XX. in Turning The PrimeLending, was from in year the in compared Non-interest year approximately prior was by same $XXX which the decreases $XX $XX lower prior versus of Page the quarter, to decline substantially driven million. expenses to period. revenue expenses decreased fee in partly million the

earlier, production to closing declined HTH transaction expenses, subsequent incurred related of to expect tender prior particularly versus the of Including related transaction. $X.X any as quarter expenses, this million Jeremy our declined related not expenses volumes quarters. second in mentioned transaction the the as mortgage We further costs year. do variable non-compensation expenses Additionally, related

and half Looking compensation, continuous costs expect the across to within the help improvement headwinds, mitigate continue we've some in these on years of last made the focused occupancy, forward investments few periods. fixed resulting remain and we into we to to our manage prior middle, back expenses To compared aggressively the increased leveraging front, offices. over productivity last impact businesses, XXXX, will inflation elevated that software of

inflationary digital these acquisition further to exist, support and streamline productivity. are accelerate overall and do pressures adoption capabilities While our our we business client businesses the continuing of to

equated the Page levels. in billion Average HFI quarter, XX. loans by to the Turning increasing prior from $XXX X.X year to million approximately second

particular, During our was the as closed second forward estate quarter, robust. remain commercial [both] pipelines commercial lending, [ph] in production solid real and

preponderance longer between Our products, few improved at of the we periods. to as full-year growth shifted the last adjustable over our rate towards XXXX. will quarters per one $XX fixed originated newly that PrimeLending expect made of be retain to versus million expect we loans and for remains million commercial X% four has month have position, during funded given duration a $XX intense that holding very the prior in to the that mortgages range throughout rate mortgages loan Mortgage at liquidity retained X% current pace to prefer growth up marketplace rates which commercial in XXXX loans. we Further, loan continue competition

XX, right, improve to the ongoing reducing made show remained the In the portfolio. Page NPAs across quality quality in solid. in credit progress Turning credit graph, overall the continues as to we overall upper

As the the as of loss right PPP page, well both at shown in quarter second bank lending, of the warehouse as coverage including into the XXXX graph credit the for at X.XX%, mortgage loans. bottom the is on the allowance

Moving XX. to Page

approximately total of average versus $XXX deposits $XX.X were and XXXX. the by first quarter it decreased million Second X% or billion approximately quarter

first higher quarter begun rates, by points pace deposit basis the interest the bearing to XXXX. of Given versus move yields of of change X interest have increasing

expectation the costs XXXX. rate we changes deposit to additional from Federal the see continue to do Reserve, rise of Given in expect

continue remain focused deepening elevated, have that and products XXXX. successful While and of deposit will we expect second on we noted wallet through our levels the into it services. be base should accelerate These remain treasury they our growing share been and client to half efforts

Page XX. to Moving

noted expectations first challenges and over taken to growth reflect the current half we actions impact profitable performance, volatility volatility Given change should and in conditions, during future. that in expect XXXX XXXX, economy outlook our be coming and we quarters. be could are will market support of the markets updating expectations this overall materially capital ongoing our our It future the the results and for the the to

As turn our provide the the call outlook Q&A back such, prepared Operator, appropriate our that to concludes where we comments and during we'll for of will call. updated quarterly the calls. you section

Operator

the [Operator Thank KBW. line Instructions] Our Gailey first comes of Brady of from you. question

line now open. Your is Please ahead. go

Brady Gailey

Good thanks. Hey, guys. morning,

Jeremy Ford

morning. Good

Brady Gailey

in It basis any of if wanted to linked-quarter I to color great that's see a was billion, progression? start just fairly but on pretty trended quarter stable consistent monthly and the with the that the was percentage, not Was mortgage X.X what months on over stayed origination. on how July? that that second

Will Furr

Brady, it's Will.

seasonal on challenging low to expressly a basis reasonably is depressed consistent the I'd month. market significantly as month of it pretty the didn’t significantly We was And mortgage think we define a purchase say, the a that in continuing or environment. levels current here a see, almost what to I through period have quarter. we're high reflect

Brady Gailey

was MSR of Hilltop realized And second that in or the MSR any Okay. quarter? there write-off sort benefit

Will Furr

Yes. overall quarter, In MSR, the $X period, of of valuation the net million. had always approximately the and MSR value we evaluate our we adjustments during

Brady Gailey

Okay.

tender from no or [rate] forward? then very makes write-up And where about in you'll kind buybacks quarter, think you in be but So, do you offer with going in sense? should still Given add they’ll finally do about on you the move think buybacks XQ the that active buybacks it forward second million active XQ, a we of $X think going of [ph]. we're obviously, just how All right. MSR the guys, the

Jeremy Ford

authorization exhausted tender As we've we with said, that offer. our

have that's So, want if improve any currently obviously we that we'll in don't outstanding authorization authorization. to and stay we to tune another

Brady Gailey

the me, for lastly additional increase profitability there kind that mortgage just to given segment then headwinds opportunity And expenses of help to just there? Okay. is the any of cut

Will Furr

to environment. perspective, mortgage team has worked. a from quickly think we're a I adjusting obviously, The challenging

driving to half. through over profitability mentioned maintain months six in the first continues of and focus us toward to first as comments, to the on continue the we as do Jeremy ensure our our of productivity to drive be business his second to to that series allow half, targets, we regard. diligently well again, toward profitability, items targets right the challenging but a As team staffing expect the The size year in

Jeremy Ford

the cost the Yes. is as And been variable want vigilant but be then of And this, about franchise the lot of bone, fixed volume. leader we the to I cutting business. at it on managing to volume. going end emerge said the a the really think a the really they've that there the cost Will just to having from the managing in to side not And to really day,

the in trying exit So, still and will to we're a make there business place. investments recruiting out in cycle that this better

Brady Gailey

the Thanks great. for Alright, guys. Okay. color

Will Furr

Thank you.

Operator

Thank you.

line comes Michael James. Our of Raymond next question Rose from of the

line ahead. now Your open. Please is go

Michael Rose

the income guys. that good the us And in substantially. maybe can the bounces increase? the can, what's taking remind what quarters that there? outlook but Thanks. just was up Hey, you know quarter-to-quarter, next can you of for for on the what's there? you Hey, based to Thanks comprise my other from just large in maybe questions. what's then And fairly then morning, I couple well, around if extent sequential

Will Furr

thanks the So, for question.

preponderance to is business as other as Securities. services tried think is fixed generated of – revenue I that income business, our finance we've in it well the Hilltop volatile. is at note income as structured our And

the as that marks negative, are marks of kind that pipeline in noted We positive we've were have pipeline seen past period-over-period.

nature to also of just continue trading books the to mark – to in our continue well. that markets business, see as We you'll but

comments, to lower structured as that and a go a products. but as on we're be business is improved environment, quarter, his mortgage of centric it in improvement the will quarter Really has of will forward as markets, Obviously, as noted focus a materially. as demand showing be the overall it's in volatility stable our improvement well pretty more relates in Jeremy that of business. for volatile. a the volatility here production mortgage, The well particular, overall as and Again, business. kind it rate in that's demand volatile some finance was So, level fallen linked rates drove basis, the a

to again our of So, we volatility we do expect all that comments. and kind in of why highlight continue that's

Michael Rose

And to back outlook. just Okay, then maybe mortgage the helpful.

XX%, You the just reduced makes off the forecast, for of out NBA just start, what in outlook forecast it that decent to spitting Thanks. for [ph]. originations XX.X] but imply you're so to totally would a to of for I good year what by you the XX take the [XX, anywhere closer in to upper kind limit the it the be back If year. year is a sense, the implies half around close Because currently this NBA's if pretty decline something end of billion? would down I cause plug

Will Furr

a volatile. got been we've to think range. I has The market provide

articulating view to our we are if not plausible from from we've where take take evaluate of but you a kind concrete the got guidance, a think that range as our be are what of again, spot of perspective. kind We historically, we the just we you that's reasonable outcomes. midpoint to have And here, market a of starting goes

Michael Rose

just more And one point. fair Alright, me. for maybe then

remind got left $XX minimis recognized? housekeeping, here. Just so it down you like to I looks us PAA from how will you've XX% it XX% million last Can now, PAA is de was to think around much it be just Thanks. year it be like looks

Will Furr

$XX million just over to million. got $XX We've

Michael Rose

You said XX?

Will Furr

XX. to XX

on We a continue will down trend basis. quarterly to

Michael Rose

for Got it. questions. my right. Thanks All taking

Will Furr

you. Thank

Operator

Thank you.

Piper the of from line Milsaps of comes question next Brad Our Sandler.

open. now is line ahead. Please Your go

Brad Milsaps

well, expenses. Good morning. Hey, wanted good I to with morning. start Maybe

the X% I costs X% year I [ph] it half? back seems X%, think a little is [because] fixed a like – build in now flush anywhere just expenses down in bit is get comparing down rate more, is If that like your to in you mean, pretty just out are the your a a math guidance just decline your of my looks imply guidance it it Can fixed really near be would about big maybe expense step-up guidance? growth fixed apples-to-apples, either for big be I'll that to or would kind date cost. right,

Will Furr

Yes.

in what operations and compensation associates, our is our think retail related particular, I we're In costs. the seeing ongoing like. associates, inflation

throughout. that, so, but continue And are it expect managing it and we're continuing see and we monitoring to to to see

also spend. have also cost technology through model overall our from step-ups in we perspective We that have our in operating and technology we occupancy then a step-ups

to we've lot it a the work Again, of through. to are day modeled to So moderate lot doing and of cost, work again, day try every a is doing we opportunities team every evaluate the as – But our outlook. cost revenue expense well current as think guidance sit as up trends we align again, think reflects for our here our to today. we bottoms I base our buildup

Brad Milsaps

Okay, amount guys additional you of great. sitting thinking curious loan kind a your just just liquidity guidance the of growth, sheet? but deployment, on you're through thinking kind that's are around how balance whether you about around given Can bonds. on cash. fair you've of the And then Obviously, talk still

Will Furr

Yes.

And as could also, we kind of have expect we we've end in of the maintain moderate million $XX year. was, modestly through of basis here, million mortgage deposits the intending the PrimeLending. continue to expect those to as What moderate repurchase a and grow down time purchase an will do then from continue securities or in a to that continue We noted my monthly we comments to portfolio $XX some other very guided loans we we average of kind cash I investment are of deposits run above level. on So, seek alternatives. as over pace do to

to XX – of growth, way, primary that the got we consumer. and seen we've in to but one continue our retention what targeted out, you've loan a XX a four ancillary We've also our way. investment the in thoughtful liquidity and portfolio months to consistent modest look last consume over got quarterly from to very again monthly as commercial we is So We're which on months. basis evaluate with mortgages a growing

Brad Milsaps

then me, of And just kind picture. maybe Okay. bigger final one for

into purchase insight unique given the country. mortgage presence the there have guys market your across You

think disagree thereof seeing I of you in what talks increase given you form of use unique across give NBA the insight to? on you're is the guys. us that, guidance most agree across actually forecast activity or but to have you purchase you country to, lenders, with you I just of purchase the would some XXXX, know kind guys don't your of the forecast Just an of in kind for – kind us kind with curious where It of kind or know rates then, showing have won't moved based given the guys curious U.S? market for

Jeremy Ford

and I at they I feel stays see it home XX% you're some kind appreciated, market indications they'd cautious of think like that a think whether leadership on as that, be that their of some starting and or Prime, have to reducing our in market there's if a prices prices. the you about cooling resetting housing sellers

I know market. the to shifting means from but market market what don't of, So, really more housing kind a that's we month a to trajectory, that for month the of buyer's resetting being a for think exactly that and of XX period seller's X

Brad Milsaps

guys. Thank Great. you,

Operator

you. Thank

Matt of comes the of question next line Stephens. from Our Olney

Your open. line ahead. Please now is go

Matt Olney

not XQ just When interpreting the like looks I lower in morning. some] for on put make obviously, that [ph] mortgage calling that volumes profitable guidance, margins accurately but in sure at may guidance the from and want the to Hey, that. I'm with model, the stick XQ profitable discussion even in It the we're pressure with or I'll with was be Prime lower segment the looking mortgage here. XQ. I looked margins, [on good here. like it

Will Furr

couple a of things to Matt, note.

profit did So, we the PrimeLending, as have we reported period here. in pretax

in earlier on call MSR adjustments of period. we As $X million over had the just here, the favorable noted

the gives the that origination you of So sense segment. a of balance

and continues working toward The here and expenses and process. business through being to again, managing and team challenges the headwinds we We a productivity are on evolve are team market and the profitable would other would in but be second to as are not the there thing PrimeLending, that the note year. driving diligently is, the the work But evaluating significant – to we're the present. expect half the continues focused significant of profit again, I is

Jeremy Ford

They think in Yes. to I for some profitable fighting mortgage strength is quarter. they're probably that and the are to the remain And I'd breakeven business that. hard seasonal The third just just usually add quarter fourth nevertheless.

mind. something that's keep So just to in

Matt Olney

got back half I you balances want the deposit guidance, still are Okay, between decline just for to so X% I pretty at could the flat it right. X% like the little of hard deposit out then balances looks average Thank that it. that. balances, about months and the first also year? sure And interpreting Just this wanted the flush relatively the six the deposit year I'm confused, of to the that think year, you average talk the deposit should it make fall that implies using

Will Furr

basis, $XXX mentioned note, well we've at some million of as deposits an on that a attributable looking We've [XX/XX overall that public also on as $X little billion deposits to ending as tender. again, $X is X/XX] ending his Well, seen the is Jeremy had. to we we're otherwise returned in it way finance are an the billion from down broker [ph], over about some flows, basis the currently

perspective that which X% about to is puts deposits, decline the a customer from of exactly half X% in and of kind is more guiding. that is So, us which other half range, explainable where we're

ability. deposit the the success the we're recognize our overall relationship of we're going base, be about position, we of but chase offering the in that some long-term to our liquidity that of higher outsized, that diligent going be position principally We offered our our do continue But in some regard. going to expect we're not to that are to being think And by and continue are that's we for yields we're do chasing best us marketplace because competitors again, likely things to going to I'd rates. prudent to not to of some our competitors say

Jeremy Ford

to low And don't I in deposit need really loan is our the as mentioned, to. XXs, right so now we ratio

Matt Olney

then sweep I details, think I the And you just didn't revenue, some that. Appreciate Okay. on comments revenues improved. lastly, that, you mentioned but sweep get have made

I the of levels? benefits we second recognized quarter. to the Are now more Are normal in going at in more you third quarter? we see think the

Jeremy Ford

not saw we but let the this you if of the the to we will trend yet be really quarter level [ph], Will, continues quarter. We million got see sweep first impact to and on a didn't about we're – [ph] in, normal to jump the at me] here. and are levels $XX We starting that [dragged We've should – at revenue. that million see because me impact X.X raise in year-end Fed [X, X.XX] a up to

Matt Olney

that I'm million $XX sorry. the versus the Am about I per was just going X.X to interpreting right? quarter in I ask XQ.

Jeremy Ford

Yes. from little in QX. And up under million X

Matt Olney

Got it.

Okay.

Will Furr

on It similar basis] of is [ph]. they're except deposit revenues to think [inverse kind very track going cost these an the way to as to about

what through as rates portion we'll retain a and that portion will that, that's So [ph] pass and a to of [fees] these go higher. drives higher, the of client

higher. clear, is to said. there want Jeremy's provided Jeremy to XXX is the what to he point move sure rate, I So, we're that a on rates of moving XXX lot on it make dependent just that Fed again – to contingent continuing basis which outlook But

Matt Olney

it. Got

thank you. guys, Okay,

Jeremy Ford

you. Thank

Will Furr

Thank you.

Operator

you. Ladies earnings today's your you call. gentlemen, and Thank participation. for concludes Thank Hilltop's conference that

your lines. now You may disconnect

Hilltop (HTH) 22 Jul 222022 Q2 Earnings call transcript