Like many other Texas banks, Hilltop Holdings (NYSE:HTH) got hit hard earlier this year, only to come back strong and recently challenge its 52-week high. While there is enough diversity to make the notion of a "typical" Texas bank a questionable one, Hilltop at the very least doesn't have the large energy lending exposures that have tripped up some of its comparables.
What Hilltop does have, though, is a strong capital position that can support expanded lending and M&A, not to mention an asset that can be sold (its insurance business) to fund additional moves. Hilltop also has a pretty clean credit profile and a management team that knows how to build (and sell) banking businesses. While the valuation isn't hands-down cheap, there does seem to be enough value and potential here to make it worth a closer look from investors shopping for some bank stock ideas.
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Dry Powder, Clean Exposures, And Valuation Make Hilltop Holdings Worth A Look