Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q2 2022 Earnings Presentation
19 slides from Hilltop's earnings presentation, Jul 22, 2022
Slide 1: Hilltop Holdings Inc. Q2 2022 Earnings Presentation
Hilltop Holdings Inc. Q2 2022 Earnings Presentation July 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 – Q2 2022
Investor Highlights – Q2 2022 Net Income EPS – Diluted ROAA ROAE $33.3 MM $0.45 $0.30 0.80% .86% 5.82% 5.76% • PlainsCapital Bank generated $51.4 million in pre-tax income during Q2 2022, a decrease of $35.6 million from Q2 2021 and an increase of $4.9 million from Q1 2022 • Average bank loans HFI1
Slide 4: Capital Highlights – Q2 2022
Capital Highlights – Q2 2022 • During the quarter, HTH returned $454.5 million of capital to stockholders through dividends and share buybacks • The Q2 2022 Tender Offer resulted in the repurchase of 14.9 million shares (~ 19% of the company) for $29.75 per share, or $442.3 million • Tangible book v
Slide 5: Financial Summary
Hilltop Holdings – Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q2 2022 Q1 2022 QoQ% Q2 2021 YoY% Net interest income $112.1 $100.0 12% $107.9 4% Noninterest income 239.3 216.4 11% 339.9 (30%) Noninterest expenses 298.5 286.4 4% 343.4 (13%) Efficiency ratio 85.0% 90.5
Slide 6: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $140.0 4.00% $120.0 $115.3 3.50% $109.5 $17.1 3.00% $100.0 $91.4 $95.3 $91.2 ACL / Total Loans HFI ($10.5) 2.50% $80.0 ($1.2) ($1.3) 2.00% $60.0 1.51% 1.45% 1.50% $40.0 1.16% 1.17% 1.20% 1.00% $2
Slide 7: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Net Interest Margin Rollforward ($ in millions) $115 .0 $112.1 Q1 2022 2.36% 2 Decline in Cash and Due Balances 0.1 5% $110 .0 $107.9 Loans HFI Y ield Increase 0.1 4% $105.1 $104.3 $105.0 Loans HFS Y ield Increase 0.06% $100.0 Secur
Slide 8: Net Interest Income Rate Impacts
Hilltop Holdings – Net Interest Income Rate Impacts Estimated Impact on 12-month Net Interest Income1 Bank Loans HFI – Fixed vs. Variable Rate at 6/30/22 ($ in billions) 10% 5% 8% 4% $2.2, 0% Fixed Rate 32% -5% -7% -12% $4.0, Variable rate at or below floors 56% -10% $1.0, Variable rate above floor
Slide 9: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($MM) ($ in millions) Q2 2021 $339.9 Mortgage Production Income & Fees (101.9) Securities and Inv estment Adv isory Fees & Commissions (3.8) $339.9 $367.9 $11.7 Other Income 5.0 $4.3 $10.2 Q2 2022 $239.3 $116.
Slide 10: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses and Efficiency Ratio 1 Year-over-Year Noninterest Expense ($MM) ($ in millions) Q2 2021 $343.4 Compensation and Benefits (43.2) Occupancy and Equipment (0.8) 90.5% 82.8% 85.0% 76.7% Other Expenses (0.9) 75.1% Q2 2022 $298.5 $355.2 Key Driv
Slide 11: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) Q2'21 Q1'22 Q2'22 $ 7 .9 $ 7 .9 Average Loans HFI Balance ($B) $7.7 $7.8 $7.8 $8.0 $ 7 .8 $ 7 .6 $ 7 .6 $ 0.1 $ 0.3 $ 0.1 Annualized Loan HFI Y ield % 4.48% 4.06% 4.32% $ 0.9 $ 1.0 $ 1.1 $7.0 $ 0.5 $ 0.7 $ 0.6 $
Slide 12: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans Non-Performing Assets 7.0% $125,000 1.75% 6.0% 1.50% $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% 2.5% $50,000 0.50% 4.6% 2.0% 4.1% 0.50% 3.3% $25,000 2.8% 2.5% 1.0% 0.25% $9
Slide 13: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q2'21 Q1'22 Q2'22 $12.8 $12.7 Average Deposits ($B) $11.8 $12.7 $12.3 $0.2 $0.2 $12.1 $11.9 1 0.32% 0.21% 0.28% $11.7 $ 0.8 $ 0.8 Cost of Interest-Bearing Deposits $0.2 $0.1 $0.3 $ 0.8 $ 0.8 Cost of Broker
Slide 14: 2022 Outlook
Hilltop Holdings – 2022 Outlook Outlook Loan Growth • 1 – 4 family loan retention $25 – $75 million per month throughout 2022 (Full year average HFI loan growth) • Full year average bank loan growth 2% – 5%, excluding PPP loans and retained mortgages Deposit Growth • Full year average total deposits
Slide 15: Appendix
Appendix 15
Slide 16: PlainsCapital Bank – Q2 2022 Highlights
PlainsCapital Bank – Q2 2022 Highlights Summary Results ($ in millions) Q2 2021 Q2 2022 Key Highlights Q2 2021 Q2 2022 Net Interest Incom e $1 05.5 $1 01 .3 ROAA 1 .91 % 1 .09% Prov ision for (rev ersal of) Credit Losses (28.8) 5.0 Full Serv ice Branches (period end) 59 58 Noninterest Incom e 1 0.2
Slide 17: PrimeLending – Q2 2022 Highlights
PrimeLending – Q2 2022 Highlights Sum m ary Results ($ in m illions) Q2 2021 Q2 2022 Key Highlights Q2 2021 Q2 2022 Net Interest Incom e (Expense) ($6.0) ($1 .3 ) Origination Volum e ($m m ) $5,900 $3 ,809 Noninterest Incom e 2 42 .0 1 40.1 % Purchase 68% 88% Noninterest Expense 1 87 .0 1 3 3 .2 Sal
Slide 18: HilltopSecurities – Q2 2022 Highlights
HilltopSecurities – Q2 2022 Highlights Summary Results Key Highlights ($ in millions) Q2 2021 Q2 2022 ($ in millions) Q2 2021 Q2 2022 Net Interest Income $10.7 $12.6 Com pensation/Net Rev enue (%) 66.2 % 64.3 % Provision for Credit Losses 0.1 0.3 Pre-tax Margin % 7 .3 % 9.1 % Noninterest Income 83.5
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