Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q3 2021 Earnings Presentation
18 slides from Hilltop's earnings presentation, Oct 29, 2021
Slide 1: Hilltop Holdings Inc. Earnings Presentation Q3 2021
Hilltop Holdings Inc. Earnings Presentation Q3 2021 October 29, 2021
Slide 2: Preface: Forward-Looking Statements
Preface 2 Additional Information Corporate Headquarters 6565 Hillcrest Ave Dallas, TX 75205 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 representatives
Slide 3: Q3 2021 Investor Highlights
Q3 2021 3 Investor Highlights – Notes: (1) Average Bank Loans HFI reflect consolidated loans held for investment excluding margin loans from the broker-dealer business. • • PlainsCapital Bank generated $62.9 million in pre-tax income during Q3 2021, an increase of $12.7 million from Q3 2020 • Averag
Slide 4: Capital Highlights – Q3 2021
Capital Highlights – Q3 2021 4 $19.14 $19.65 $20.16 $21.85 $23.52 $24.77 $25.93 $26.93 $27.77 16.15% 16.70% 15.96% 18.46% 19.85% 18.97% 19.63% 20.22% 21.28% $0.08 $0.08 $0.09 $0.09 $0.09 $0.09 $0.12 $0.12 $0.12 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00% $‐ $5.00 $10.00 $15.0
Slide 5: Hilltop Holdings – Q3 Financial Summary
5 Hilltop Holdings – Q3 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q3 2021 Q2 2021 QoQ% Q3 2020 YoY% Net interest income $105.1 $107.9 (3%) $101.9 3% Noninterest income 367.9 339.9 8% 502.7 (27%) Noninterest expenses 355.2 343.4 3% 399.3 (11%) Efficiency ratio 75.1%
Slide 6: Hilltop Holdings – Allowance for Credit Losses
$0.1 $5.2 ($6.1) ($5.0) 1.95% 1.94% 1.85% 1.51% 1.45% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 9/30/2020 12/31/2020 3/31/2021 6/30/2021 Net Recovery Specific Reserves Collective - Economic Conditions Collective - Portfolio
Slide 7: Hilltop Holdings – Net Interest Income & Margin
2.56% 2.71% 2.69% 2.62% 2.53% 1. 00% 1. 50% 2. 00% 2. 50% 3. 00% 3. 50% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 7 Hilltop Holdings – Net Interest Income & Margin Net Interest Margin 2 Net Interest Margin Rollforward ($ in millions) Net Interest Income $101.9 $107.4 $105.7 $107.9 $105.1 $80. 0 $85. 0
Slide 8: Hilltop Holdings – Noninterest Income
$355.5 $2 97.5 $3 1 0.4 $2 4 2.0 $2 4 2.3 $1 41.0 $1 41.2 $98.6 $83 .5 $1 16.1 $9.8 $1 2 .1 $1 1 .3 $1 0.2 $11.7 $(3 .6) $(2 .9) $(2 .8) $4.3 $(2 .2) $502.7 $447.9 $417.6 $339.9 $367.9 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 PrimeLending HilltopSecurities PlainsCapital Bank Corporate / Other 8 Hillt
Slide 9: Hilltop Holdings – Noninterest Expenses
$222.3 $225.3 $213.8 $211.9 $213.5 $177.0 $177.0 $152.9 $131.5 $141.7 $399.3 $402.3 $366.7 $343.4 $355.2 66.0% 72.5% 70.1% 76.7% 75.1% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Variable Compensation Expenses Other Than Variable Compensation Efficiency Ratio 9 Hilltop Holdings – Noninterest Expenses Ye
Slide 10: Hilltop Holdings – Loans
40% 26% 10% 15% 0%9% Commercial real estate Commercial and industrial Construction and land development 1-4 family residential Consumer Margin loans at Broker-Dealer $6.6 $6.7 $6.5 $6.3 $6.1 $0.7 $0.5 $0.5 $0.3 $0.1 $0.5 $0.4 $0.5 $0.6 $0.6 $0.2 $0.2 $0.3 $0.5 $0.7 $7.9 $7.7 $7.8 $7.6 $7.6 $‐ $1.0 $
Slide 11: Hilltop Holdings – Asset Quality
1.9x 1.9x 1.8x 1.7 x 1.8x 2.08% 2.05% 1.98% 1.64% 1.58% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 1.0x 1.2x 1.4x 1.6x 1.8x 2.0x 2.2x 2.4x 2.6x 2.8x 3.0x Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 ACL/Bank NPLs ACL/Bank Loans HFI 567 2,688 (564) 510 (62) 0.03% 0.15% -0.03% 0.03% 0.00% -1.00% -0.50% 0.00% 0.50
Slide 12: Hilltop Holdings – Deposits
39% 42% 15% 4% Demand Money Market Time Other $5.8 $6.2 $6.4 $6.5 $6.7 $3.6 $3.6 $4.0 $4.2 $4.4 $0.9 $0.7 $0.7 $0.7 $0.8 $1.0 $0.7 $0.6 $0.3 $0.2 $11.3 $11.2 $11.7 $11.7 $12.1 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Interest-Bearing Deposits Noninterest-Bearing Deposits Broker Dealer Sweep Deposits
Slide 13: Hilltop Holdings – 2021 Outlook
13 Hilltop Holdings – 2021 Outlook Outlook Loan Growth (Full year average HFI loan growth) • 1 – 4 family loan retention $50 - $75 million per month • FY Average Total loan growth of 0 – 3%, excluding PPP loans Deposit Growth (Full year average deposit growth) • FY Average Total Deposit growth of 7
Slide 14: Appendix
Appendix nop MP
Slide 15: PlainsCapital Bank – Highlights Q3 2021
52.7% 53.0% 48.4% 49.7% 48.8% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 3.03% 3.37% 3.30% 3.19% 2.99% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 PlainsCapital Bank – Highlights Q3 2021 Key Highlights Q3 2020 Q3 2021 ROAA 1 .1 4 % 1 .3 6 % Full Serv ice Branches 60 59 Net Interest Margin 3.03% 2.99% Asset
Slide 16: PrimeLending – Highlights
Key Highlights Q3 2020 Q3 2021 Origination Volume ($mm) $6,450 $5,595 % Purchase 64.9% 7 0.6% Sales Volume ($mm) $6,522 $6,196 MSR Asset ($mm)(period end) $128 $111 16 PrimeLending – Highlights Gain on Sale Overview Notes: (1) Gain on Sale calculated as net gains from sale of loans divided by sales
Slide 17: HilltopSecurities – Highlights Q3 2021
HilltopSecurities – Highlights Q3 2021 Summary Results ($ in millions) Q3 2020 Q3 2021 Net Interest Income $8.2 $10.4 Provision for Credit Losses (0.6) 0.0 Noninterest Income 141.0 116.1 Noninterest Expense 114.4 109.2 Income Before Taxes $35.4 $17.4 17 Notes: The sum of the period amounts may not e
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 Consolidated 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