Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q3 2019 Earnings Presentation
19 slides from Hilltop's earnings presentation, Oct 31, 2019
Slide 1: Hilltop Holdings Inc. Earnings Presentation Q3 2019
Hilltop Holdings Inc. Earnings Presentation Q3 2019 November 2019
Slide 2: Preface: Additional Information and Forward-Looking Statements
Preface 2 Additional Information Corporate Headquarters 2323 Victory Ave, Suite 1400 Dallas, TX 75219 Phone: 214-855-2177 www.hilltop-holdings.com Please Contact: Erik Yohe Phone: 214-525-4634 Email: eyohe@hilltop-holdings.com FORWARD-LOOKING STATEMENTS This presentation and statements made by repre
Slide 3: Investor Highlights – Value Creation and Capital Optimization
3 Investor Highlights – Value Creation and Capital Optimization • Year-to-date net charge-offs of $4 million. Non-performing loans were $36 million, or 0.38% of total loans at September 30, 2019, compared to $43 million, or 0.50%, at September 30, 2018 • Non-performing assets of $54 million, or 0.37
Slide 4: Business Results – Pre-Tax Income vs. Prior Year
4 Business Results – Pre-Tax Income vs. Prior Year ($ in millions) Business Drivers for1 2019 Note: The sum of the period amounts may not equal the total amounts due to rounding. Q 3 20 1 9 Q3 2019 • Banking pre-tax income of $52.7 million increased by 37% from prior year driven by lower noninterest
Slide 5: Financial Summary
5 Note: The sum of the period amounts may not equal the total amounts due to rounding. (1) Pre-provision net revenue is calculated as the sum of net interest income and noninterest income less noninterest expense (except provision for loan losses). (2) Includes impact of Purchase Accounting, FDIC In
Slide 6: Net Interest Income & Margin
6 Hilltop Holdings – Net Interest Income & Margin • Net interest income of $113.2 million increased $3 million, or 3%, from third quarter 2018 • Third quarter 2019 loan accretion equated to $7.9 million, a decline of $0.3 million versus prior year period • NIM decreased 4 basis points versus Q2 2019
Slide 7: Noninterest Income
7 Hilltop Holdings – Noninterest Income • Noninterest income of $341.4 million increased by $71.7 million compared to the third quarter 2018 • $52 million increase in mortgage production income and fees driven by higher origination volumes of $1.1 billion, or 31%, and an increase in gain-on-sale mar
Slide 8: Noninterest Expenses
$335.7 $310.8 $309.1 $343.7 $350.1 88.3% 87.3% 85.5% 81.7% 77.0% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Noninterest Expense Efficiency Ratio 8 Hilltop Holdings – Noninterest Expenses Year-over-Year Noninterest Expense ($MM) Noninterest Expenses and Efficiency Ratio Noninterest Expense Highlights •
Slide 9: Loans
9 Notes: The sum of the period amounts may not equal the total amounts due to rounding. (1) Annualized Gross Loan Yield contains purchased loan portfolio. Total Loan Growth Ending Balance h5% vs. PY Average Balance h6% vs. PY Hilltop Holdings – Loans Annualized Loan HFI Yield1: Loan Growth excluding
Slide 10: Asset Quality
10 Hilltop Holdings – Asset Quality Note: The sum of the period amounts may not equal the total amounts due to rounding. Figures represent bank asset quality metrics only (excludes Loans HFS and Broker Dealer Margin Loans). Figures prior to Q4 2018 include both covered and non-covered loans.
Slide 11: Deposits
0.87% 1 .01% 1 .19% 1 .25% 1 .26% 11 Vs. Prior Quarter: (Ending balances, total deposits) Notes: Noninterest-bearing deposits excludes broker-dealer sweep deposits. The sum of the period amounts may not equal the total amounts due to rounding. Total Deposit Growth Ending Balance h5% vs. PY Average B
Slide 12: PlainsCapital Bank – Highlights
12 PlainsCapital Bank – Highlights Note: (1) Efficiency Ratio is calculated as noninterest expense divided by the sum of net interest income and noninterest income. (2) See appendix for reconciliation of NIM to Pre-PAA taxable equivalent NIM Q 3 20 1 9
Slide 13: PrimeLending – Highlights
13 PrimeLending – Highlights Note: The sum of the period amounts may not equal the total amounts due to rounding. (1) Gain on Sale calculated as net gains from sale of loans divided by sales volume. (2) Origination volume based on Mortgage Bankers Association forecast as of September 19, 2019. Q 3 2
Slide 14: HilltopSecurities – Highlights
14 HilltopSecurities – Highlights Note: The sum of the period amounts may not equal the total amounts due to rounding. Q 3 20 1 9
Slide 15: National Lloyds Corporation – Highlights
15 National Lloyds Corporation – Highlights Q 3 20 1 9 Note: The sum of the period amounts may not equal the total amounts due to rounding.
Slide 16: Full Year Outlook
16 Hilltop Holdings – Full Year Outlook 20 1 9 Outlook (Previous) Outlook (Current) Q3’19 YTD Actuals Comments Loan Growth 4 – 6% 6 – 8% 8.4% Full year average HFI loan growth Deposit Growth 4 – 6% 4 – 6% 5.8% Full year average deposit growth Net Interest Income (3%) – 0% growth (3%) – 1% growth 3.6
Slide 17: Appendix
Appendix tops RP
Slide 18: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
18 Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Hilltop presents measures in this presentation that are not measures of financial performance recognized by generally accepted accounting principles in the United States (“GAAP”) including taxable equivale
Slide 19: Non-GAAP to GAAP Reconciliation (Continued)
19 Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures (Continued) 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