Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q1 2023 Earnings Presentation
19 slides from Hilltop's earnings presentation, Apr 21, 2023
Slide 1: Hilltop Holdings Inc. Q1 2023 Earnings Presentation
Hilltop Holdings Inc. Q1 2023 Earnings Presentation April 21, 2023
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 – Q1 2023
Investor Highlights – Q1 2023 Net Income EPS – Diluted ROAA ROAE $25.8 MM $0.40 $0.30 0.69% .86% 5.12% 5.76% • PlainsCapital Bank generated $58.2 million in pre-tax income during Q1 2023, an increase of $11.8 million from Q1 2022 driven primarily by $12.7 million of net interest income growth, parti
Slide 4: Capital Highlights – Q1 2023
Capital Highlights – Q1 2023 • During the quarter, HTH returned $14.9 million of capital to shareholders • $10.4 million in dividends and $4.5 million in share repurchases • Hilltop maintains approximately $1.0 billion of capital in excess of well capitalized levels Capital Management and Tangible B
Slide 5: Q1 Financial Summary
Hilltop Holdings – Q1 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q1 2023 Q4 2022 QoQ% Q1 2022 YoY% Net interest income $121.7 $123.4 (1%) $100.0 22% Noninterest income 162.5 169.8 (4%) 216.4 (25%) Noninterest expenses 250.5 253.4 (1%) 286.4 (13%) Efficiency ratio 88
Slide 6: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $100.0 $8.3 $97.4 4.00% $95.3 $95.4 $95.0 $91.2 $91.8 ($0.4) 3.50% $90.0 $0.8 3.00% $85.0 ($6.7) ACL / Total Loans HFI 2.50% $80.0 2.00% 1.19% $75.0 1.20% 1.16% 1.18% 1.17% 1.50% $70.0 1.00% $65.
Slide 7: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Net Interest Margin Rollforward ($ in millions) $130.0 Q4 2022 3.23%2 $125 .0 $123.5 $123.4 $121.7 Loans HFI Yield Increase 0.14% $120.0 Securities Portfolio Yield Increase 0.08% $115 .0 $112.1 Yield on Cash and Due Balances 0.07% $
Slide 8: Q1 2023 Liquidity Update
Hilltop Holdings – Q1 2023 Liquidity Update ($ in millions, at period end) ($ in billions) Available Liquidity Deposit Average Balance and Costs FHLB Capacity 3 ,7 1 4 Inv estm ent Portfolio (av ailable) 1 ,63 7 Fed Deposits (excess daily requirem ents) 1 ,601 Total $ 6,952 Av ailable liquidity from
Slide 9: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) $12.7 Q1'22 Q4'22 Q1'23 $0.2 $11.9 Av erage Deposits ($B) $1 2.7 $1 1 .4 $1 1 .0 $ 0.8 $0.1 $11.4 $11.3 Cost of Interest-Bearing Deposits 1 0.21 % 1 .57 % 2.01 % $ 0.8 $11.1 $ 0.7 1 $ 1.1 Cost of Total Dep
Slide 10: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($MM) ($ in millions) Q1 2022 $216.4 $239.3 Mortgage Production Income & Fees (7 4.2) $1 2 .5 Securities and Inv estment Adv isory Fees & Commissions (8.8) $216.4 $207.0 $1 2 .8 Other Income 29.1 $1 2 .2 Q1 20
Slide 11: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses and Efficiency Ratio 1 Year-over-Year Noninterest Expense ($MM) ($ in millions) Q1 2022 $ 286.4 Com pensation and Benefits (3 2 .2 ) 90.5% 88.1% 85.0% 87.4% 86.4% Occupancy and Equipm ent (1 .9) Professional Serv ices 0.6 $298.5 Other Expe
Slide 12: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) $ 8.1 $ 8.2 Q1'22 Q4'22 Q1'23 $ 7 .9 $ 7 .9 $ 7 .8 $ 0.2 $ 0.2 Av erage Loans HFI Balance ($B) $7 .8 $7 .8 $7 .9 $ 0.3 $ 0.2 $ 0.3 Annualized Loan HFI Yield % 4 .06 % 5.4 2 % 5.7 9 % $ 1.3 $ 1.4 $ 1.1 $ 1.2 $ 1.
Slide 13: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans Non-Performing Assets 5.0% $75,000 1.00% 4.0% 0.75% % of Bank Loans 0.64% $50,000 3.0% 2.8% 2.6% 2.7 % 2.7 % 0.50% 2.5% 0.48% 0.43% 0.50% 0.39% 2.0% $25,000 2.8% 2.6% 2.6% 2.7 % 0.25% 2.5% 1.0% $46,449 $37,197 $36,260 $32,645 $30,580 0.0% $0 0.00% Q1
Slide 14: 2023 Outlook
Hilltop Holdings – 2023 Outlook Outlook (Market Dependent) • Full year average bank loan growth 0% – 2% (excluding retained mortgages from Loan Growth PrimeLending and National Warehouse Lending) (Full year average HFI loan growth) • Expect to retain $0 – $20 million per quarter of mortgages from Pr
Slide 15: Appendix
Appendix 15
Slide 16: PlainsCapital Bank – Q1 2023 Highlights
PlainsCapital Bank – Q1 2023 Highlights Summary Results ($ in millions) Q1 2022 Q1 2023 Key Highlights Q1 2022 Q1 2023 Net Interest Incom e $92.1 $1 04.8 ROAA 0.98% 1 .44% Prov ision for (rev ersal of) Credit Losses (0.1 ) 1 .6 Full Serv ice Branches (period end) 58 59 Noninterest Incom e 1 2.8 1 1
Slide 17: PrimeLending – Q1 2023 Highlights
PrimeLending – Q1 2023 Highlights Summary Results ($ in millions) Q1 2022 Q1 2023 Key Highlights Q1 2022 Q1 2023 Net Interest Incom e (Expense) ($1 .8) ($4.2 ) Origination Volum e ($m m ) $3 ,7 64 $1 ,7 3 3 Noninterest Incom e 1 43 .2 68.8 % Purchase 7 3% 93 % Noninterest Expense 1 3 4.9 88.8 Sales
Slide 18: HilltopSecurities – Q1 2023 Highlights
HilltopSecurities – Q1 2023 Highlights Summary Results ($ in millions) Q1 2022 Q1 2023 Key Highlights Q1 2022 Q1 2023 Net Interest Incom e $1 1 .5 $1 3 .9 Com pensation/Net Rev enue (%) 7 7 .3 % 59.7 % Prov ision for (Rev ersal of) Credit Losses 0.2 0.7 Pre-tax Margin % (1 1 .9%) 1 2 .8% Noninterest
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 reduced by goodwill and other intangible assets. This is a measure used by manageme