Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q1 2015 Earnings Presentation
21 slides from Hilltop's earnings presentation, Apr 30, 2015
Slide 1: Hilltop Holdings Inc. Q1 2015 Earnings Presentation
Hilltop Holdings Inc. Q1 2015 Earnings Presentation Investor Presentation April 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 – Q1 2015 Highlights
3 Hilltop Holdings – Q1 2015 Highlights For the first quarter of 2015, net income to common stockholders was $113.4 million, or $1.13 per diluted share First quarter 2015 adjusted net income was $38.8 million1, or $0.39 per diluted share, when excluding the bargain purchase gain and transaction and
Slide 4: Hilltop Holdings – Financial Summary
4 Hilltop Holdings – Financial Summary Selected Items Q1 2014 Q4 2014 Q1 2015 Net Income to Common ($000) 23,760 31,716 113,402 EPS - Diluted ($) $0.26 $0.35 $1.13 Book Value Per Share ($) $13.76 $14.93 $16.63 NIM (taxable equivalent) 4.62% 4.72% 3.53% Assets ($000) 9,033,432 9,242,416 12,562,894 Lo
Slide 5: Hilltop Holdings – Net Interest Income & Margin
5 Hilltop Holdings – Net Interest Income & Margin Stated NIM decreased by 119 bps in Q1 2015 to 3.53% compared with 4.72% in Q4 2014 primarily due to the inclusion of the stock loan business from SWS Average balance of other earning assets and other borrowings increased approximately $2 billion each
Slide 6: Hilltop Holdings – Noninterest Income
6 Hilltop Holdings – Noninterest Income Including the preliminary bargain purchase gain associated with the SWS Merger, noninterest income for Q1 2015 was $354.4 million Excluding the preliminary bargain purchase gain, noninterest income for Q1 2015 was $271.6 million, up 59.6% from Q1 2014 Investme
Slide 7: Hilltop Holdings – Noninterest Expense
7 Hilltop Holdings – Noninterest Expense Noninterest expense was $314.5 million in Q1 2015, up 47.9% from Q1 2014 During the quarter Hilltop incurred $5.6 million in transaction costs and another $4.4 million in integration costs associated with employee expenses, contractual costs and professional
Slide 8: Hilltop Holdings – Balance Sheet
Hilltop Holdings – Balance Sheet Total assets increased in Q1 2015 relative to prior quarters primarily due to the inclusion of SWS Gross non-covered loans HFI increased $914.2 million, or 23.3%, from Q4 2014 to $4.8 billion at Q1 2015 Gross covered loans decreased $90.6 million, or 14.1%, from Q4 2
Slide 9: Company Operational Updates: PlainsCapital Bank
9 Company Operational Updates PlainsCapital Bank Non-covered HFI loan growth of 19% in the quarter following the acquisition of SWS Bank; favorable loan pipeline with $1.57 billion in total unfunded commitments versus $1.43 billion at Q4 2014 Strong net interest margin of 4.59% for the quarter 68 br
Slide 10: Company Operational Updates (Continued): Hilltop Securities Holdings
10 Company Operational Updates (Continued) Hilltop Securities Holdings Public finance revenue up $6.4 million in Q1 2015 compared to Q1 2014, driven by addition of SWS bankers, continued refinancings by clients and improving market share (now top 10 in Texas underwriting market share rankings) Struc
Slide 11: PlainsCapital Bank – Q1 2015 Highlights
11 Pre-tax income increased to $81.2 million in Q1 2015 versus $31.9 million in Q1 2014 primarily due to a $39.5 million preliminary bargain purchase gain related to the SWS Transaction Q1 2015 results also included $1.8 million of costs (employee expenses) directly attributable to integration of th
Slide 12: PlainsCapital Bank – Credit Quality and Capital Ratios
12 PlainsCapital Bank – Credit Quality and Capital Ratios Credit Quality Bank Capital Ratios 9.53% 9.97% 9.95% 10.31% 11.34% 13.47% 13.22% 13.48% 13.74% 16.46% 14.14% 13.90% 14.21% 14.45% 17.19% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q
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 March 31, 2015
PlainsCapital Bank – PCI Loans at March 31, 2015 14 ($000) Covered PCI Non-Covered PCI Total PCI Outstanding Balance 599,104 151,037 750,141 (Discount) (239,009) (36,169) (275,178) Carrying Amount 360,095 114,868 474,963 Allowance for Loan Loss 1,316 4,934 6,250 Total PCI Loans, Net of Allowance 358
Slide 15: PlainsCapital Bank – Non-PCI Loans at March 31, 2015
PlainsCapital Bank – Non-PCI Loans at March 31, 2015 15 ($000) Covered Non-PCI Non-Covered Non-PCI Total Non-PCI Outstanding Balance 205,933 4,754,644 4,960,577 (Discount) (14,014) (34,825) (48,839) Carrying Amount 191,919 4,719,819 4,911,738 Allowance for Loan Loss 72 34,431 34,503 Total Non-PCI Lo
Slide 16: PrimeLending – Q1 2015 Highlights
16 PrimeLending – Q1 2015 Highlights Pre-tax income grew to $10.0 million in Q1 2015 versus a pre-tax loss of $3.0 million in Q1 2014 due to significantly higher origination volumes in a typically seasonally low quarter Origination volume of $2.8 billion in Q1 2015 was $947 million greater than Q1 2
Slide 17: Hilltop Securities Holdings – Q1 2015 Highlights
17 Hilltop Securities Holdings – Q1 2015 Highlights Q1 2015 includes full quarter of operations with SWS, though Q1 2014 includes only FirstSouthwest Pre-tax income grew to $39.9 million in Q1 2015 versus a pre-tax loss of $153 thousand in Q1 2014 primarily due a preliminary bargain purchase gain of
Slide 18: National Lloyds Corp. – Q1 2015 Highlights
18 National Lloyds Corp. – Q1 2015 Highlights Reported Summary Results ($000) Q1 2014 Q1 2015 Net Interest Income 980 757 Provision for Loan Losses – – Noninterest Income 42,773 41,845 Noninterest Expense (32,341) (33,466) Income Before Taxes 11,412 9,136 Combined Ratio Q1 2015 Direct Premiums Writt
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 Q1 2015 Reconciliation of Non-GAAP Adjusted Net Income ($000) Diluted EPS ($) GAAP Net Income to HTH Common Shareholders 113,402 1.13 Add (Deduct): Bargain Purchase Gain (82,816) (0.82) Transaction