HTH - Earnings call transcript Q3 2024

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Operator

Good day everyone and welcome to today's Hilltop Holdings Third Quarter 2024 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note this call is being recorded. And I will be standing by if you should need any assistance. pleasure the my Matt over now Dunn. is to conference turn to It

Matt Dunn

you. Thank

interest preface rate items funding, started, certain in of our changes, including their well Before presentation note events risks credit and business impacts we please funding to get sources financial cost, plans, statements. These other that for items the dividends our not that, condition, credit of strategy, liquidity future such and subject and as that on expectations forward-looking referenced are of in based statements statements management's of and allowance presentation historical such by are concerning concerning fact, are uncertainties. trends statements risk as as statements outlook, credit, are nature, current today's during losses, future

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

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

Jeremy Ford

and Matt morning. you, good Thank

a for or business Favorable banking and Hilltop equity period net pre-provision of produce For X.X%. the quarter-over-quarter was average helped revenue on reported $X.XX was operating assets average net units million the net and results income the diluted broker-dealer and increase X.X% on share. in income. third return Return per to $XX approximately quarter, from

profile and maintaining to in net realized interest While margin interest compression in net at Though bank quarter-over-quarter a did a the improvement and the due primarily balance Hilltop Hilltop assets. earning at position, quarter. liquidity net our consolidated average strong earnings the margin interest consolidated experience in modest growth between income,

We NIM in will prepared further comment on the later bank's our remarks.

primarily X.XX%. levels competition across the quarter, billion million on pre-tax bank of lower $XX of of return pipeline generated elevated assets, at by quarter, on the a Bank million payoffs representing of bank's to $XX $X.X and rate loan During from Average PlainsCapital declined average due footprint. on average income loan heightened a loans the in assets the our pull-through

grew, as a in quarter borrowers' expectations growth bank saw throughout an interest the corresponding of However, activity and client the declining in pipeline. loan our increase rates

several will in loans it increased for for investment. activity held into expect take to funded We borrower materialize quarters an increase

responsibly offset credit credit of to economic recapture going provide positive in This deposits. Results is and earning from of loan net Our in was X interest-bearing during an quarter interest reserves. X.XX%. his an quarter, prepared the of well anticipated improvement and the Will mix perform over volatile This average increase point quarter third environment. decline into of assets. losses by was our growing included funding quality in the commentary reversal handful interest margin and deposit This basis Bank high move prudently declining as loan a we though migration dedicated past shift in cost an credit in $X.X partially the to portfolio in liquidity to the The in bank driven managed core primarily a PlainsCapital an the remarks. deposits in due core rate relationship-based change offset remain conditions, a and was noninterest-bearing average compression to portfolio to quarter. realized partially straight for primarily further balance has continues in increased quarters. deposits increase second X% to by specific a the bank changes attributable growth interest-bearing on Overall, modest which at million. collective the We in by by

gain million Moving a company of decline The the during fees origination and margin decline origination a reduction as pre-tax of the results by points. of of XXX Further, sale to volume in quarter. X the million basis PrimeLending, on where percentage driven continued origination basis loss through was points a quarter. quarter-over-quarter reported pressure $X.X operating in volume of the the loan third in trend on to downward $XX a

related valuation the $X.X recognized adjustment PrimeLending a impacted million the results. to of MSR financial negatively third its asset quarter, Additionally, which during

the third and the million coming margin seasonally is While XX%. HilltopSecurities optimism generated regarding income the year. volumes on origination $XXX pre-tax for the calendar will million quarters environment of fourth there into a moves for we business increased industry-wide quarter, $XX revenues of remain mortgage first PrimeLending a net XXXX, as the quarters In operating slower of of believe for pre-tax challenging

to third revenue $X.X was sweep the state clients, assistance advisory the expanded HilltopSecurities. wealth availability the on strong Public advisory elevated in offset partially quarter continued This Structured our compared within volumes. decline for housing And subside. to increase balances fees from finance last increased which increased by lines FDIC million securities investment management. Services net revenues TBA in sweep Finance at an was revenues in year-over-year business produced collateral. to programs Management, as strong by from net payment select call-protected demand million third volumes. XXXX. program quarter lock to buy-side declined The driven year third as In improvement offering Wealth quarter resulted and by $X.X further in within year's compared down last by Speaking flat fees net municipal X% by revenues by

a in of $X.X pressured to from remains HilltopSecurities had unit produce Overall, public a due business positive continued challenging and finance net market wealth conditions. income business an year-over-year and business The the fixed perform of lines. our in year-over-year while performance in teen's and margin, strong a generated revenues broker-dealer revenues the structured which well conditions, rate million. pre-tax to environments and net ability management market Finally, in increase finance firm's quarter a did low variety both the reflects increase

Moving to maintains levels capital a equity with of Page XX.X%. X capital X. Hilltop ratio robust Tier common

$X.XX book value to year-end increased our XXXX Additionally, tangible $XX.XX. by share per from

million period, dividends. more in you. During returned to discuss the we will over Will now to financials I shareholders Thank to presentation And turn our the through $XX detail.

William Furr

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

Opportunity Hilltop's by charge of the a remaining health in and the common stockholders losses gains allowance Page losses. consolidated income costs I'm $XX detail, assets million. million reported the positive declined MSR the third equating period at to valuation diluted to to for discuss million $XX.X of a adjustment related to included MSR million, the allowance moving adjustments PrimeLending. Largely To an during unit, more modest credit credit quarter's were Partners, and approximately to to allowance banking quarter for reduction per lower offsetting attributable noted, $XXX in the merchant care-related $X The million X. XXXX, in the Jeremy Hilltop our the during for signing quarter of valuation of $X.X share. Hilltop impact the sell results of As $X.XX LOI

credits. period $X.X and adjustments in two impacted auto ongoing the noted in related graph, the is credits specific reserved reserves adjustments increased by million, large by other and the specifically lending discussed last to small for As quarter evaluation the we various

that reserves regarding the auto materials certain September coverage maintained results. portfolio, reference the this this presentation which provided additional million. For portfolio, the improvement Page our credit on portfolio, the to of as lending specific a the the on portfolio clients' trends including cash reflects the reduced losses recent outlines slide and size XX positive by this and of were migrations we in of flow collectively modest additions of This XX. allowance $X.X for operating Offsetting assessed allowance

quarter, trajectory future. of the in to between into period for Moody's the the scenario change away third growth an aligns which ACL. slow SX it future was was from SX on move period scenario immediate management from the scenario, provides the move the to not decided reduction the include does approximately Further, a during to economic rates scenarios more Moody's interest closely assessment the recession. to appropriate the and note, SX and impact in the of conditions to economic Of views management's $XXX,XXX Lastly,

to We bank. the areas driven to facing higher believe as as flow we credit existing inflation closely, risk interest do the continue ongoing and negative That to lead focusing ongoing time. portfolio pose cash monitor the migration by said, projects new rates expect that future may that over challenges well on could entire clients we

well credit adoption and is ACL the by as since the changes as impacted of mix in portfolio. assumptions evident economic has As be the of volatile been as can it CECL, makeup

to in We changes believe continue macroeconomic portfolio, growth that trends, be to will net and over migration driven by the changes outlook credit in time. loan the future the allowance

volatility quarters. rates, the for inflation, coming heightened current interest be uncertainties the regarding outlook and growth, the future could Given GDP unemployment, over

accretion. net $XX interest including earning on Turning approximately and purchase X%, third declining third to by by the of prior $XXX yields quarter, accounting $XXX,XXX Page primarily X. higher Net income in To or quarter equated to interest income driven the million million, year deposits decreased assets.

it decline. the basis versus expect including decline decreased points continue in this quarter expected the continuing higher-cost of trend. of periods, we long-term XXX quarter, of money Related basis decline somewhat third lower have NIM the into points. deposits by net prior the accretion was recognition lower the is migration approximately half indicative in to time. accretion, driven products. our to and discount the During top-tier And quarter while was market XXXX than X accounted the of Further, to margin The second by over period the for of largely been interest products, to

in we fourth occur XX Our rate outlook which reductions internal on likely variable and forecast point NIM Page could levels have yields lag X includes to drift deposit anticipated X. that cash and we rate reductions, in behind scenario, additional with cuts as turning this lower rate loan basis and of November to 'XX the rate December. repricing. rate quarter Based rate both expect I'm 'XX current

XXXX. Driving reduced on average, deposits held total to broker-dealer average. of in of virtually X% equated have sheet, $XX.X third average declined $XXX the the decline is which deposits million by balance deposits, quarter prior a the billion has of which on quarter Third broker on $XXX decline million return all the $XXX or the have versus approximately sweep the million been and year versus by and decline are

quarter-ending We focus short-term focused quarter with growth third we the $XXX on with balance balancing second interest-bearing the basis, our that changes, non-brokered to which higher, X will long-term peaked and XXX sweep are to the of a non-broker-dealer our over driven third levels million while money rates. basis these prudent is Given interest continue million, linked lower the during deposit income approximates basis deposits the On magnitude largely pace migrate Federal on quarter to of points from step over management expectation by focus deposits costs of Reserve's our our average. we year, in the increased competitive with deposits move net PlainsCapital position moves interest pleased lowering at a have the products $XXX growth Interest-bearing deposits million the quarter continue Bank. in on market customer modest on as by modestly points during relationships, by begin in on $XXX at we time. to increasing past and remain

will the deposits for of current competitive, expect However, intensity we environment continue. and the competition remains

the for detail historical X. approximately asset page, sensitive. static Page balance we on Currently, asset provide overall the a to Hilltop upper parallel shift sensitivity. regarding some remains and In XXX sheet, scenario in yield Moving left the up Hilltop's a X% chart

of redeploying at loans rate continue variable work in Federal reinvestment current net the more by loan by position provide deposits. page, a to PrimeLending, the cash neutral increasing towards the retention table sweep broker-dealer on regarding periods. the Reserve right We the of lower details we securities levels portfolio, options the In from evaluating mortgage reset reducing and

can of for deposit seen to XX%. of rising majority the As rate be the note, rate beta loan was our related month cumulative variable change. deposit book in Of betas, resets within interest-bearing X rate the the a interest-bearing cycle chart, quickly

declining and rate modeling we manage deposit this will Our rate current the beta interest-bearing a XX% XX% to of assume in estimates that portion cycle.

basis MSR $X.X noninterest XX. valuation aforementioned million. adjustment income of on to Moving million, loans to higher, mortgage volumes margins origination for quarter in same Page for in to by XX $X.X XXX the million. Versus the negative including parties of to the sale declined the same the gain improved by XXXX Versus third Total prior revenues points. sold $XXX third modestly those period prior year, the and basis were year, period equated points

sales primarily is optimizing the by spreads market overcapacity XXXX. in The structured revenues higher in note at we which the that improved in the to the the payment contributed production believe that interest to which continue feel $X.X a ongoing to in versus has team limited end, finance To we banking, housing line, was assistance from also do said, of at benefited certain originators prior we face support improving, states, in team client-facing even business stabilize slowly improvement that the and pricing remains support investment This terms mortgage and business. mortgage is that future. and While leadership that segment begun and our our net across client rates, in we of profitable it driven secondary year to by the from this remains important of our of the restrictive overall focused growth challenges on level, in and conditions, growing country ongoing million have challenges, market provided affordability, in combination revenue market. significantly the higher the down increase advisory resulted mortgage revenues. to the improvement securities PrimeLending into supply, mortgage That expect expect these could home lower whereby

also fixed In services revenues. results year business to $X income growth improved the in million, prior period versus line contributing by the addition,

growth of the quarter, of from reported accounted change third and the internal the sweep in resulted broker-dealer this consolidation During in approximately income bank other $X consolidation impact table. between fees and the for the million

year $X Noninterest to variable by quarter in related expenses period million. Page production to the the $XXX largely compensation, revenue the million increase broker-dealer. versus prior prior third to in by in was XX. expenses driven from The Turning same increased year the noninterest higher increases at

other gain and growth to relatively focused producers remain efficiencies we continuing as functions. we Looking at on expect remain forward, than of that expenses middle across current diligently revenue compensation variable while levels back-office stable will prudent our

to Turning Page XX.

million, quarter largely average real basis, to quarter estate the $X billion. by XXXX Third loans On lending. payoffs C&I loans period-ending by versus of HFI a second commercial HFI $XXX equated declined driven in and

had somewhat quarter, funding to experienced the either $XX which quarter million by paydowns of which Warehouse significant Declines be or more business, XXXX. moved the grew by the Mortgage we customers their sold who X% During to second from business or were growth in markets, permanent offset versus the appear due to Lending active.

from loans the third commercial with addition, a the during did structure. funded this pressures In quarter. And lending trend, positive pipelines while is market for remains expand intense pricing coming and competitive both

competitive these quarters. coming challenging be result the pressures, continue we of a loan that As to growth for could expect

total excluding now we warehouse previously, noted paydowns X% from mortgage the by levels, expect retained loans and of from full to decline mortgages X% lending. any prime result XXXX a to As lending year average

to with work loans guarantors XX. upper right from the Page continue paydowns on $XX declined in Related these time. note by the second auto million exit find XXXX million. last quarter two to auto levels quarter. NPA to The to we over decline last the $XX Turning to to two of of Starting from these loans, and leaders chart, the note we quarter discussed largely million large loans business reflects $XX have ways

remains to it future if While credits. these in be reserves determine related incurred additional progress has will made, the early too losses to been or

$X.X left loan XX of million points bottom or chart. the quarter the portfolio. charge-offs for equated overall basis the to to Net Moving

not over trends auto net been systematic While aforementioned the losses volatile in last definable few outside the quarters, have charge-offs more we've any note the seen or portfolio. of

at the warehouse in page, shown loss mortgage graph allowance bank right the at is of including bottom third credit As ended the the quarter on the the for coverage lending. X.XX%,

Page to Turning XX.

fourth of a health lot overall to uncertainty into inflation XXXX, regarding of we economy. rates, in the the the interest there move continues the quarter be and As market of

we our communities quality uncertainties, and these what can clients, associates we to reach controlling the focused Given for remain outcomes on serve. we

noted the the to to outlook we respond, and and the comments. provide adjust the markets future economy table, in changes of assessment reflects will market participate. current we for you Q&A of concludes our section outlook our As XXXX Operator, the call. is we updates quarterly on Further, current our the business where call to the our back that prepared calls. turn I'll our for as

Operator

KBW our line we'll And question open. with from your Woody Instructions] take [Operator is first Lay

Wood Lay

start to wanted I structured guys. on morning Good finance.

the you trends. space? Does programs. prolonged them, finance assistance We've payment in in quarters like feel the a as from down from prior which to seen mentioned, So have legs more a these the lead more business could to spike it benefited programs similar opportunity structured

William Furr

not to short support see legislatures it that funds appropriate control It's We've state's again, think, by or is will our budgetary in to pleased have and answer certainly they from not. like control, as think been each state's will that is way consistent But the We'd in of provided to make to considerations. in whether those states. continue concerns decisions certain reasonably the to the I continue.

they our are somewhat perspective. from episodic So

Wood Lay

I mean well. as Got shifting it. it good quarter to that income over And then maybe was fixed fees. in business a

volatility of the towards can given some end continue the of trend quarter? Just business fourth to you higher that do in quarter, rate the the think

William Furr

third on results. pleased view the think were I fixed quarter our we with income, certainly,

look we an think beneficial curve practical a as yield lower to upward as I are sloping generally business. rates, forward, that matter

said rates be the all kind to relates fixed as results sloping continue curve finance it both that to well improve. and business. it to structured services each lower see to of But as can volatile continue to upward market as generally expect But rates. I've the again, net an beneficial in income as yield do is call, we with So again, speaking,

Wood Lay

it. trends Got move are think the Do troughed from see and slowly expenses. over The in here? quarter, mortgage And like to to business. some improving then sounds but expenses it continue third looking the you we the just fixed begin lastly, to increase lower and make hires fixed in modestly mortgage shifting expenses you're to it have

William Furr

we half and up to first our slowly our They expectation for the again, to costs. originators I associates, middle in as noted out in we as do stable. But continuing also are and and may noted office But fundamentally back think comments, producers, market that. client-facing loan they're remain to you be is the looking focused next going quality we'll on tick into and very we're year. reasonably continue to start of

we say business, is could mortgage we while industry recognize We slow improving. this be we So a steady the the believe path. and recognize mortgage

productivity are toward to maintaining levels expenses We of profitability on and to kind focused future. in overall try our the those manage

Wood Lay

my for Got it, thanks taking questions.

Operator

James. next Rose our from Michael take We'll question with Raymond

Your line open. is

Michael Rose

Just the on thoughts we having or wanted wanted points loans XX on investment, to margin for just around was to pressure yields some bit little comments as also yield a held loan some get forward. And like XX move down It the deposit costs. the basis more start looks Q-on-Q. of and

then what at the quarter? And spot what kind of that? a end think do pricing Just you standpoint, peak? the And rates do a were sense you nearing for drove of a have deposit we're from

William Furr

Yes.

movement think the our with Holdings which the yield. of in in where we'll I'd bank of the So some I loan -- are. focus HFI did more kind start level on annualized see Hilltop of indicative average HFI balance trends kind yield, But loan yields. you We

period, of yields about loan X.XX% in accretion. saw basis X.XX% bank to from HFI You that dropped X points the that

to the of kind preemptively rates have of We portion it. of lower, see lower. with going process rates and a explains that the starting did So expectation see customers continued of negotiating

rate rate And reset going of tables our September change. we that out one reset in had And kind a and loan loans sensitivity variable within are to rate so of that's as tables, the the there. reduction. month period we And noted Fed interest quickly also XX

not went. from loan where So yields surprising

for terms that a the uprate similar think yields expecting as is decline reduce I what which we continue move to rates, here at about we to if lower, Fed from saw XX%. the next pace -- uprate that to during cycle of beta, rates the of overall piece the cycle loan is in continue does loan loan bank are to beta

If if overall of -- deposit kind about now deposit think deposits some you to by X.XX%. then deposit cost points increased increased our you X.XX% the to go costs X basis we've talked X.XX%. about to length deposits, And and at And from total yields. interest-bearing

were So there's two happening. things that

a got from between And of -- from that's attractive our into into First, products, our total the NIB out there a then lot cost that is money interest-bearing rate deposit see market deposit got total deposits continue cost, on inflows the fact migration to we've a product and and cost of went CD that our it. higher also a difference we the products. some pretty interest-bearing

time our and current So first target excess a to some expect reduction, but deposits will the interest-bearing over customers And peaked reductions in is that rate to costs, rate with XX% for step deposit yield do -- the have beta. -- X.XX% to the seek trend to extent as to lower those into to for that expect for again, has see continue Fed to deposits. move NIB start interest-bearing continue we we XX%

in actions to position by think us taken that a reduction Fed that. I point rate the the post action put basis we've achieve first XX

Michael Rose

thanks put of quarters together, couple walking pieces modest all stabilization. hopefully Well, should that. probably would we through that that modest the at continued some before at pressure consolidated on about it those it? continued margin way the Is I seem it, guess through least very think we level, point as would putting move That reaching the next conceptually to some thorough. have finer for you was a

William Furr

that the lower. some And with a alignment in impacted. are again, that's Yes. and timing it's drift some betas its comments. And little of my then we'll I of think

also at of well pressures and market be those in as loan So kind resets our immediately. period the the increased this, but end, $X.X cash timely and $X.X billion, the the will as highlight competition, to which balances prudent, cash reset balances, actions reflect I'd billion deposit

when are in of they the change rate lower. the the rates the earning So Fed morning, the context makes less moving next

resets, deposit that So our we expect benefits rate the do loan the cash of reduction balances, will and the variable lag actions that. rate

to modest So see, expect in NIM I'd your pressure point, reach for interest would more say, coming until we but stable a rate ongoing scenario. to the we the quarters

Michael Rose

helpful. has Very And industry. then been anemic maybe for just one fairly growth follow-up. Loan and the you

relates growth on the willingness to momentum to loan as bringing it Any the process NII number continue activity loans. balance just the we mortgage on up to particularly some spur Just and that year to through thought to sheet picks front? higher, move as as get some portfolio just

William Furr

my I certainly, comments, of to tried good think question address in and that. some

are product. earning we're going They're bolster move hybrid the to Lending. X we also principally So to but for some to ARM that to reasons, be retain And cash. going to replace of or continue assets, doing from and the of be Prime both kind loans

into some here plays a expectations. our as out move of net more we rate our it out to better environment believe cash to trying out we're position So assets, loan provides us the I'd call of plays which return if of kind what

end as sit middle we quarters we'll per X be million the but the balance $XX per understand to here, aggressive $X that is guidance guidance lower top closer to period, at the of and that million kind sheeted so somewhere end. $XX more between stick versus of we'll while month, coming the over likely to So

Operator

next question from We'll Scouten Sandler. take Stephen Piper our with

Stephen Scouten

movement the loss quarter. the The for you this in guidance moving lowered And guys forward scenario. and provision was the NPLs loan pretty obviously, Moody's positive

you're feels positive of that improvement And see nonperformers leads continued seeing more it Kind seeing like credit. from some do you here? you kind of you are in think can this what around the of So positivity? to

William Furr

pay we we of loans what million lot Well, again, $XX downs portfolio note improvement said the I'd driven, in in received about. as call about large in my that the credits of notes, related by I a to was nonaccrual X talked auto

So certainly of was X million. had we saw some we that terms of $XX million in charge-offs. downs, $XX of those from and improvement pay

I on So think we credit. overall, are cautious

positive from We but financial during or call that trends were continues and with across see improved higher our the come migration customers substantial, some are clients, have on results higher seeing rates cases, some period. that Nothing in the and in certain was still rescored our portfolio. the systemic some some of than the period loans. because, But positive of our otherwise that customers did rates, in nonetheless, caused I'd are existing cautiousness materially

loans And are still reset, so flows coming as be those cash to going down. prices pressured. aren't Inflation exists,

needing the And pressure also still input costs impact the in elevated and remain equity on their so of construction And kind deals of higher other. transactions continues to new deals.

trend react say, charge-offs. cautious quarters. reserves items expect And on to and/or be coming the cause what are favorable, us is episodic will there that how in the here over So from along seen what that but will to credit to I'd and perspective, with we see, we've we we our come continue have

Stephen Scouten

of points know And said you material more on I finer in Got a we indicative drop quarter, this couple just but the trends. the of the accretion, trends NIM it. helpful. was Very then should obviously, see.

So change expect? know, of what accretion next of kind incremental pace this should million we if remaining? looking expected year? based I decline in What's don't cut it mean, we're $X just of or $X million kind what's have the the I you half Does year, get at, in on

William Furr

a in fall On XX% the XX% it and basis, year. would portfolio. a modeled somewhere And specific activity Yes. between that's any without

Stephen Scouten

of looks think slide above we deck, the it that are then How And sense. the about Makes that Sure. you floors out as of rate in many variable maybe loans laid floors. like XX% do floors, those have them sense? to have feel have you for could that if the floors? how that loans would degree soon of cuts, rate incremental get with any those And we like makes

William Furr

Yes.

kind I'd XXX XXX So of starting customer. floors. below generally structured XX% variable floors be that rate loans of the to have got or are and basis XX% our about for between Those rate say points

take, those kind to And of in so floors a activity the Fed I'd going say, it's of amount to cause be reasonable to money.

Stephen Scouten

helpful. last just then could update. of business upside, guys it. about me. for Got especially a maybe on driver in middle the Extremely acquisition like bank. of curious be talent future real and And have that the market Kind thing maybe talked know growth I you

are kind noting front? on on of wondering guys worth there? progress Anything Any the today. how path Just aggressive you hiring that

Jeremy Ford

we right have and the we're So quarter. recruiting the in fit. the very with bank, And bank, in the we selective hire bankers had the that positive on

I out be be that trying a increasing going So in as of big think some particularly just will total huge footprints not to are really the bankers, but it fill to we in. push our

Operator

our Stephens. We'll Jordan question with next take Jen from

Jordan Jen

a right I you overnight with And question. ranging think just I quick to $X it, on Will, balances from $X of been touched the billion the recently, as liquidity and cash kind had billion. of they've

those And If talk you hinted you wondering if those balance. mortgages. about could replacing about balance about going that you you mark. I go with X it that kept overnight back you of just you're talked $X guys maybe kind was sheeting like Maybe forward. have of that or looks expecting I the where And for range see kind of it know liquidity years, it guys below billion some

William Furr

Yes.

strong customer a the would with $XXX quarter, flows the we that they said balance quarter, had the had in We've otherwise level deposit had to above operating move of billion. $X So range we coupled seen moved and cash higher move target where is $XXX operating. target deposit generally with downs kind consider in our flows, million pay obviously we've the we under to that

to down. just term. And we of we as to we'll under that million and again, would other begin those better retained noted, that to I into say, out going earning the mortgages the the both well are position as as million transition We'd sheet in like rotate assets to and cash of range. that believe to portfolio operating continue balance the get I'd securities it $XXX to take long range going It's time start rotating into, to dollars keep $XXX that $X billion, so to we But for do work there. expect us target be some

Jordan Jen

you could down know just question also fund of as to give we Got and about I Is look the loan loans for quarters some originations seeing next other then just like quarters coming these loan past a about been kind and have there up, kind projects it. payoffs far any the maybe going of what's of up. pipe? And as talked as few of to few and growth. the us stronger of insight fund to take you're you it's new kind where then one growth

William Furr

particular, in state next noted, customer are going, But the estate full-year to that's our we'll and say also Fed Those But rate base beyond are estate. largely, we see overall improved for Texas, commercial in economy commercial is cycle, the out I'd general, some they as of a seen we quarters, give political cautious continue update which projects. I reasonably as evaluating January call. And real interest the construction on and that's environment remains the are the this real few in guidance have Look pipelines. loans, robust. and where

win going But to based is estate continue quality to largely, maintain growth try today. of on credit work form our commercial to and view on the again, aggressive we're be will to real price. and going as we business our can. in pipelines where our of kind sit structures So come We're as hold the much to the credit

Operator

over any presenters further it And remarks. back turn to additional that will closing this our now appears for I no questions we time. program at the have or

Jeremy Ford

We none. have

Operator

your Thank That All Perfect. participation. teleconference. right. for you concludes today's

may now You disconnect.

Hilltop (HTH) 25 Oct 242024 Q3 Earnings call transcript