Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q2 2015 Earnings Presentation
21 slides from Hilltop's earnings presentation, Jul 30, 2015
Slide 1: Hilltop Holdings Inc. Q2 2015 Earnings Presentation
Hilltop Holdings Inc. Q2 2015 Earnings Presentation Investor Presentation July 30, 2015
Slide 2: Preface: Forward-Looking Statements
Preface 2 200 Crescent Court, Suite 1330 Dallas, TX 75201 Phone: (214) 855-2177 Fax: (817) 887-1687 www.hilltop-holdings.com Please contact: Isabell Novakov Phone: (214) 252-4029 Email: inovakov@plainscapital.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives of
Slide 3: Hilltop Holdings – Q2 2015 Highlights
3 Hilltop Holdings – Q2 2015 Highlights For the second quarter of 2015, net income to common stockholders was $29.6 million, or $0.30 per diluted share Second quarter 2015 adjusted net income was $32.4 million1, or $0.32 per diluted share, when excluding the transaction and integration costs related
Slide 4: Hilltop Holdings – Financial Summary
4 Hilltop Holdings – Financial Summary Selected Items Q2 2014 Q1 2015 Q2 2015 Net Income to Common ($000) 27,085 111,243 29,622 EPS - Diluted ($) $0.30 $1.11 $0.30 Book Value Per Share ($) $14.22 $16.60 $16.82 NIM (taxable equivalent) 5.18% 3.53% 3.75% Assets ($000) 9,396,448 12,560,735 12,477,198 L
Slide 5: Hilltop Holdings – Net Interest Income & Margin
5 Hilltop Holdings – Net Interest Income & Margin Stated NIM increased by 22 bps in Q2 2015 to 3.75% compared with 3.53% in Q1 2015 primarily due to the increase in balance and yield of gross loans, while cost of liabilities were relatively flat Cost of interest bearing deposits flat vs Q1 2015, whi
Slide 6: Hilltop Holdings – Noninterest Income
6 Hilltop Holdings – Noninterest Income Noninterest income for Q2 2015 was $301.4 million, up 48.3% versus Q2 2014 Net gains from the sale of loans, other mortgage production income, and mortgage loan origination fees increased $45.1 million, or 36.7%, from Q2 2014 to $168.1 million in Q2 2015, repr
Slide 7: Hilltop Holdings – Noninterest Expense
7 Hilltop Holdings – Noninterest Expense Noninterest expense was $353.3 million in Q2 2015, up 40.6% from Q2 2014 During the quarter we incurred $4.5 million in transaction and integration costs associated with employee expenses and professional fees, both related to the SWS Merger Compensation incr
Slide 8: Hilltop Holdings – Balance Sheet
Hilltop Holdings – Balance Sheet Loans held for sale grew $182.3 million from Q1 2015 to Q2 2015, primarily due to higher than average seasonal volume Gross non-covered loans HFI increased $122.3 million, or 2.5%, from Q1 2015 to $5.0 billion at Q2 2015 Gross covered loans decreased $57.8 million, o
Slide 9: Company Operational Updates: PlainsCapital Bank
9 Company Operational Updates PlainsCapital Bank Non-covered HFI loan growth of 10% annualized for Q2 2015; favorable loan pipeline with $1.7 billion in total unused commitments versus $1.6 billion at Q1 2015 Efficiency ratio of 57% even with continued growth and legacy PCB’s credit quality remains
Slide 10: Company Operational Updates: Hilltop Securities Holdings
10 Company Operational Updates Hilltop Securities Holdings Public finance continues to improve with revenue up $8.9 million in Q2 2015 compared to Q2 2014, as number of issues have doubled year over year and aggregate amount of offerings up 85% TBA business continues to grow and outperform, with loc
Slide 11: PlainsCapital Bank – Q2 2015 Highlights
11 Pre-tax income increased to $45.1 million in Q2 2015 versus $41.5 million in Q2 2014 primarily due to flat expenses and lower provision Q2 2015 results also included $1.2 million of costs directly attributable to integration of the former SWS Bank After adjusting for transaction and integration c
Slide 12: PlainsCapital Bank – Credit Quality and Capital Ratios
12 PlainsCapital Bank – Credit Quality and Capital Ratios Credit Quality Bank Capital Ratios Note: Tier 1 Leverage Ratio based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets $28.0 $27.0 $23.2 $32.8 $31.2 $0.0 $10.0 $20
Slide 13: PlainsCapital Bank – Loan Portfolio by Classification
PlainsCapital Bank – Loan Portfolio by Classification 13 Note: PCI stands for Purchased Credit Impaired loans. Loan classification mix represents consolidated balances at Hilltop and, therefore, eliminate intercompany loans. Amounts above equal carrying value, after deductions for discount Covered P
Slide 14: PlainsCapital Bank – PCI Loans at June 30, 2015
PlainsCapital Bank – PCI Loans at June 30, 2015 14 ($000) Covered PCI Non-Covered PCI Total PCI Outstanding Balance 537,856 129,125 666,981 (Discount) (226,730) (30,359) (257,089) Carrying Amount 311,126 98,766 409,892 Allowance for Loan Loss 885 5,052 5,937 Total PCI Loans, Net of Allowance 310,241
Slide 15: PlainsCapital Bank – Non-PCI Loans at June 30, 2015
PlainsCapital Bank – Non-PCI Loans at June 30, 2015 15 ($000) Covered Non-PCI Non-Covered Non-PCI Total Non-PCI Outstanding Balance 196,147 4,888,418 5,084,565 (Discount) (13,040) (30,215) (43,255) Carrying Amount 183,107 4,858,203 5,041,310 Allowance for Loan Loss 49 35,432 35,481 Total Non-PCI Loa
Slide 16: PrimeLending – Q2 2015 Highlights
16 PrimeLending – Q2 2015 Highlights Pre-tax income grew to $21.0 million in Q2 2015 versus $9.2 million in Q2 2014 due to significantly higher origination volumes Origination volume of $3.8 billion in Q2 2015 was $995 million greater than Q2 2014 due to growth in both refinance and seasonal improve
Slide 17: Hilltop Securities Holdings – Q2 2015 Highlights
17 Hilltop Securities Holdings – Q2 2015 Highlights Q2 2015 includes operations of SWS, though Q2 2014 includes only FSW Pre-tax loss of $1.9 million in Q2 2015 versus a pre-tax gain of $0.6 million in Q2 2014 Q2 2015 results include pre-tax integration related costs of $5.0 million directly attribu
Slide 18: National Lloyds Corp. – Q2 2015 Highlights
18 National Lloyds Corp. – Q2 2015 Highlights Reported Summary Results ($000) Q2 2014 Q2 2015 Net Interest Income 838 699 Provision for Loan Losses - - Noninterest Income 43,123 42,835 Noninterest Expense (49,420) (56,060) Income Before Taxes (5,459) (12,526) Combined Ratio Q2 2015 Direct Premiums W
Slide 19: Questions?
19 Questions?
Slide 20: Appendix
20 Appendix
Slide 21: Non-GAAP to GAAP Reconciliation and Explanation of Non-GAAP Measures
21 Hilltop Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Q2 2015 Reconciliation of Non-GAAP Segment Adjusted Income Before Income Taxes ($M) Banking Broker-Dealer GAAP Income (Loss) Before Income Taxes 45.1 (1.9) Add: Transaction and Integration Costs (p