Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q1 2022 Earnings Presentation
19 slides from Hilltop's earnings presentation, Apr 22, 2022
Slide 1: Hilltop Holdings Inc. Q1 2022 Earnings Presentation
Hilltop Holdings Inc. Q1 2022 Earnings Presentation April 22, 2022
Slide 2: Preface
Preface Corporate Headquarters Additional Information 6565 Hillcrest Ave Please Contact: Dallas, TX 75205 Erik Yohe Phone: 214-855-2177 Phone: 214-525-4634 www.hilltop-holdings.com Email: eyohe@hilltop-holdings.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives o
Slide 3: Investor Highlights – Q1 2022
Investor Highlights – Q1 2022 Net Income EPS – Diluted ROAA ROAE $22.3 MM $0.28 $0.30 0.53% .86% 3.60% 5.76% • PlainsCapital Bank generated $46.5 million in pre-tax income during Q1 2022, a decrease of $18.1 million from Q1 2021 • Average bank loans HFI1 increased from Q4 2021 by $130 million, or 2%
Slide 4: Executive Report – Capital Highlights
Executive Report – Capital Highlights • During the quarter, HTH returned $11.8 million of capital to shareholders through dividends • Decline in tangible book value per common share during the first quarter of 2022 impacted by the increase of approximately $120 million in pre-tax net unrealized loss
Slide 5: Financial Summary
Hilltop Holdings – Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q1 2022 Q4 2021 QoQ% Q1 2021 YoY% Net interest income $100.0 $104.3 (4%) $105.7 (5%) Noninterest income 216.4 284.8 (24%) 417.6 (48%) Noninterest expenses 286.4 322.2 (11%) 366.7 (22%) Efficiency ratio 90
Slide 6: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $160.0 4.00% $144.5 $140.0 3.50% $115.3 ACL / Total Loans HFI $120.0 3.00% $109.5 $100.0 $91.4 $0.3 $2.2 $91.2 2.50% ($0.3) ($2.4) $80.0 2.00% 1.85% $60.0 1.51% 1.45% 1.50% 1.16% 1.17% $40.0 1.00
Slide 7: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Net Interest Margin Rollforward ($ in millions) $110 .0 $107.9 Q4 2021 2.44% 2 $105.7 $105.1 Loans HFI (0.06) $104.3 Cash increase (0.05) $105.0 $100.0 $100.0 Loans HFS 0.02 Inv estments 0.02 Other (0.01 ) $95.0 $90.0 Q1 2022 2.36%
Slide 8: Net Interest Income Rate Impacts
Hilltop Holdings – Net Interest Income Rate Impacts Estimated Impact on 12-month Net Interest Income1 HTH Net Interest Income profile remains asset sensitive: 15% • Variable rate loans reflect approximately 45% or $3.1 billion of bank loans HFI (excluding Mortgage 10% Warehouse) at March 31, 2022 •
Slide 9: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($MM) ($ in millions) Q1 2021 $417 .6 Mortgage Production Income & Fees (167 .3) Securities and Inv estment Adv isory Fees & Commissions 0.8 $417.6 $1 1 .3 Other Income (34.7 ) $367.9 Q1 2022 $216.4 $339.9 $98
Slide 10: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses and Efficiency Ratio 1 Year-over-Year Noninterest Expense ($MM) ($ in millions) Q1 2021 $ 366.7 Com pensation and Benefits (7 0.3 ) 90.5% Occupancy and Equipm ent 0.3 82.8% 76.7% 75.1% Professional Serv ices (3 .5) 70.1% Other Expenses (6
Slide 11: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) Q1'21 Q4'21 Q1'22 $7.8 $7.9 $7.8 Av erage Loans HFI Balance ($B) $7 .6 $7 .7 $7 .8 $8.0 $7.6 $7.6 $0.1 $0.5 $0.3 $0.1 Annualized Loan HFI Yield % 4 .6 2 % 4 .2 5% 4 .06 % $0.9 $1.0 $0.3 $0.5 $0.7 $7.0 $0.5 $0.6
Slide 12: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans Non-Performing Assets 7.0% $125,000 1.75% 6.0% 5.7 % 1.36% 1.50% 0.1% $100,000 1.28% 1.21% 5.0% 4.8% 1.25% % of Bank Loans 0.2% 4.2% $75,000 4.0% 0.1% 1.00% 3.3% 0.7 6% 3.0% 2.8% 0.64% 0.75% 5.7 % 0.0% $50,000 0.0% 4.6% 2.0% 4.1% 0.50% 3.3% $25,000 2
Slide 13: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q1'21 Q4'21 Q1'22 $12.8 $12.7 Av erage Deposits ($B) $1 1 .4 $1 2.4 $1 2.7 $0.2 $0.2 $12.1 Cost of Interest-Bearing Deposits 1 0.41 % 0.22% 0.21 % $11.7 $11.7 $ 0.8 $ 0.8 $0.2 1 $0.6 $0.3 $ 0.8 Cost of Bro
Slide 14: 2022 Outlook
Hilltop Holdings – 2022 Outlook Outlook Loan Growth • 1 – 4 family loan retention $25 – $50 million per month, throughout 2022 (Full year average HFI loan growth) • Full year average bank loan growth 2% – 5%, excluding PPP loans and retained mortgages Deposit Growth • Full year average total deposit
Slide 15: Appendix
Appendix 15
Slide 16: PlainsCapital Bank – Q1 2022 Highlights
PlainsCapital Bank – Q1 2022 Highlights Summary Results ($ in millions) Q1 2021 Q1 2022 Key Highlights Q1 2021 Q1 2022 Net Interest Incom e $1 03 .9 $92.1 ROAA 1 .48% 0.98% Prov ision for (rev ersal of) Credit Losses (5.2) (0.1 ) Full Serv ice Branches (period end) 60 58 Noninterest Incom e 1 1 .3 1
Slide 17: PrimeLending – Q1 2022 Highlights
PrimeLending – Q1 2022 Highlights Sum m ary Results ($ in m illions) Q1 2021 Q1 2022 Key Highlights Q1 2021 Q1 2022 Net Interest Incom e (Expense) ($7 .1 ) ($1 .8) Origination Volum e ($m m ) $6,1 84 $3 ,7 64 Noninterest Incom e 3 1 0.4 1 43 .2 % Purchase 47 % 7 3% Noninterest Expense 2 1 0.3 1 3 4.
Slide 18: HilltopSecurities – Q1 2022 Highlights
HilltopSecurities – Q1 2022 Highlights Summary Results Key Highlights ($ in millions) Q1 2021 Q1 2022 ($ in millions) Q1 2021 Q1 2022 Net Interest Incom e $1 0.5 $1 1 .5 Com pensation/Net Rev enue (%) 60.6% 7 7 .3 % Prov ision for Credit Losses 0.1 0.2 Pre-tax Margin % 1 6.2 % (1 1 .9%) Noninterest
Slide 19: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Tangible Common Equity, is a non-GAAP financial measure. Tangible common equity is defined as our total stockholders’ equity, excluding preferred stock, reduced by goodwill and other intangible assets. This i