Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q1 2025 Earnings Presentation
21 slides from Hilltop's earnings presentation, Apr 25, 2025
Slide 1: Hilltop Holdings Inc. Q1 2025 Earnings Presentation
Hilltop Holdings Inc. Q1 2025 Earnings Presentation April 25, 2025
Slide 2: Preface
Preface Corporate Headquarters Additional Information 6565 Hillcrest Ave Please Contact: Dallas, TX 75205 Matt Dunn Phone: 214-855-2177 Phone: 214-525-4636 www.hilltop.com Email: mdunn@hilltop.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives of Hilltop Holdings
Slide 3: Investor Highlights – Q1 2025
Investor Highlights – Q1 2025 Net Income EPS – Diluted ROAA ROAE $42.1 MM $0 $0.65 1.13% .86% 7.82% 5.76% • PlainsCapital Bank generated $40.1 million in pre-tax income during Q1 2025 • Bank net interest margin of 2.97% remained relatively stable from Q4 2024. Loan yields decreased 8 basis points to
Slide 4: Capital Highlights – Q1 2025
Capital Highlights – Q1 2025 • During Q1 2025, Hilltop returned $44.9 million to stockholders through dividends and share repurchases • $11.6 million in dividends • $33.3 million in share repurchases Capital Management and Tangible Book Value Growth $40.00 22.00% 21.23% 21.29% $35.00 19.32% 18.23% $
Slide 5: Q1 Financial Summary
Hilltop Holdings – Q1 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q1 2025 Q4 2024 QoQ% Q1 2024 YoY% Net interest income $105.1 $105.5 (0%) 103.6 1% Noninterest income 213.3 $195.6 9% 181.6 17% Noninterest expenses 251.5 $262.8 (4%) 250.0 1% Efficiency ratio 79.0% 87.
Slide 6: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $125.0 4.00% $115.1 3.50% $115.0 $110.9 $104.2 $8.9 ($1.1) $1.6 $106.2 3.00% $105.0 $101.1 ($4.3) 2.50% ACL / Total Loans HFI $95.0 2.00% $85.0 1.33% 1.50% 1.39% 1.29% 1.41% 1.27% $75.0 1.00% $65
Slide 7: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Quarter-over-Quarter Net Interest Margin ($ in millions) Q4 2024 2.7 2% $ 1 1 .0 0 2 Deposits 0.1 9% $105.0 $105.5 $105.1 $103.6 $103.7 $1 05 0 . Borrowings 0.1 4% $1 000 . Loans Held For Sale 0.06% Loans Held For Inv estment (0.1 2
Slide 8: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q1'24 Q4'24 Q1'25 $11.1 Av erage Deposits ($B) $1 0.7 $1 1 .0 $1 0.9 $10.9 $10.8 $10.8 Av erage Broker-Dealer Sweep Deposits ($B) $0.8 $0.6 $0.6 $ 0.2 $10.4 $ 0.6 $ 0.8 $ 0.6 1 Cost of Interest-Bearing Dep
Slide 9: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($ in millions) ($ in millions) Q1 2024 $181.6 $213.3 $200.4 $195.6 Mortgage Production Income & Fees 1 .1 $193.3 $1 0.7 $1 1 .4 $3 7 .8 Securities and Inv estment Adv isory Fees & Commissions 9.8 $181.6 $9.3
Slide 10: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses Year-over-Year Noninterest Expense ($ in millions) ($ in millions) Q1 2024 $ 250.0 87 .7 % 87 .3% $4 0. 0 86.4% 86.5% Com pensation and Benefits 1 0.4 Occupancy and Equipm ent (2 .1 ) Professional Serv ices (5.6 ) $ 3 0 5 0 . 7 9.0% Other
Slide 11: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) Q1'24 Q4'24 Q1'25 $ 8.1 $ 8.2 $ 8.0 $ 8.0 $ 8.0 Av erage Loans HFI Balance ($B) $7 .8 $7 .9 $7 .9 $ 0.2 $ 0.3 $ 0.3 $ 0.2 $ 0.2 Annualized HTH Loan HFI Yield % 6.2 8% 5.93 % 5.82 % $ 1.4 $ 1.4 $ 1.4 Annualized B
Slide 12: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans as a % of Bank Loans Non-Performing Assets ($ in thousands) 1.70% 3.80% $125,000 3.60% 3.7 2% 1.39% 3.50% 1.45% 0.7 0% 3.30% 1.23% 1.20% 0.7 0% $100,000 1.17 % 0.60% 0.20% 0.97 % 1.20% 0.91% $75,000 0.95% 0.70% $50,000 2.90% 2.90% 3.10% 3.10% 2.7 5%
Slide 13: 2025 Outlook
Hilltop Holdings – 2025 Outlook Outlook • Full year average Bank loans (excluding retained mortgages and mortgage warehouse Loan Growth lending) to increase modestly (0% – 3%) (Full year average HFI loan growth) • Expect to retain $10 – $30 million per month of PrimeLending originated mortgages Depo
Slide 14: Appendix
Appendix 14
Slide 15: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Tangible Common Equity is a non-GAAP financial measure. Tangible common equity is defined as our total stockholders’ equity, excluding preferred stock, reduced by goodwill and other intangible assets. This is
Slide 16: PlainsCapital Bank – Q1 2025 Highlights
PlainsCapital Bank – Q1 2025 Highlights Summary Result s Q1 Q1 Q1 Q1 ($ in millions) 2024 2025 Key Highlight s 2024 2025 Net Interest Incom e $91 .6 $9 0.6 ROAA 1 .2 0% 0.9 6% Full Serv ice Branches Prov ision for (rev ersal of) Credit Losses (2 .9) 9 .4 57 55 (period end) Noninterest Incom e 1 1 .9
Slide 17: PrimeLending – Q1 2025 Highlights
PrimeLending – Q1 2025 Highlights Summary Result s Q1 Q1 Q1 Q1 ($ in millions) 2024 2025 Key Highlights 2024 2025 Net Interest Incom e (Expense) ($4 .3 ) ($1 .4 ) Origination Volum e ($m m ) $1 ,67 6 $1 ,7 42 Noninterest Incom e 66.7 67 .8 % Purchase 92% 88% Noninterest Expense 7 8.9 7 4 .7 Sales Vo
Slide 18: HilltopSecurities – Q1 2025 Highlights
HilltopSecurities – Q1 2025 Highlights Summary Results Key Highlight s ($ in millions) Q1 2024 Q1 2025 ($ in millions) Q1 2024 Q1 2025 Net Interest Incom e $1 2 .3 $1 1 .6 Com pensation/Net Rev enue (%) 59 .4% 62 .7 % Prov ision for (Rev ersal of) (0.0) (0.0) Pre-tax Margin (%) 1 6 .2 % 8.5% Credit
Slide 19: Net Interest Income Rate Impacts
Hilltop Holdings – Net Interest Income Rate Impacts Asset Sensitivity Trending 1 Bank Loans HFI – Fixed vs. Variable Rate at 3/31/25 10.6% Fixed rate 41% 9.1% 50% Variable rate at or below floors 6.7% 6.0% 6.0% Variable rate above floors 9% Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Represents impact on HTH
Slide 20: Commercial Real Estate Portfolio
Hilltop Holdings – Commercial Real Estate Portfolio Commercial Real Estate Portfolio Commercial Real Estate – Non-Owner Occupied (Ending Balance, $ in millions, at March 31, 2025) (Ending Balance at March 31, 2025) Office 13% Retail 25% 7% CRE Owner Occupied Hotel/Motel $1,446 $1,939 Multifamily 11%
Slide 21: Auto Lending Portfolio
Hilltop Holdings – Auto Lending Portfolio Auto Note Financing Commitments1 Commentary ($ in millions) • Auto Note Finance committed portfolio balance has been in decline since 2021 o The impacts of higher interest rates and declining values of used vehicles continue to put downward pressure on the p