Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q3 2024 Earnings Presentation
21 slides from Hilltop's earnings presentation, Oct 24, 2024
Slide 1: Hilltop Holdings Inc. Q3 2024 Earnings Presentation
Hilltop Holdings Inc. Q3 2024Earnings Presentation October 25, 2024
Slide 2: Preface: Forward-Looking Statements
Preface 2 Corporate Headquarters Additional Information 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop.com Please Contact: Matt Dunn Phone: 214-525-4636 Email: mdunn@hilltop.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives of Hilltop Holdin
Slide 3: Q3 2024 Investor Highlights
Q3 2024 3 Investor Highlights – Notes: (1) Average Bank Loans HFI reflect consolidated loans held for investment excluding margin loans from the Broker-Dealer business. • PlainsCapital Bank generated $48.1 million in pre-tax income during Q3 2024 • Bank net interest margin of 3.05% decreased 5 basis
Slide 4: Capital Highlights – Capital Management and Tangible Book Value Growth
$24.77 $28.37 $27.18 $28.35 $29.29 $28.28 $31.95 $31.49 $32.58 $33.51 18.97% 21.22% 18.23% 19.32% 20.48% 2.00% 22.00% $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 12/31/2020 12/31/2021 12/31/2022 12/31/2023 9/30/2024 Tangible Book Value Per Share (Tangible Common Equity / Shares Outstanding) Boo
Slide 5: Financial Summary
5 Hilltop Holdings – Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q3 2024 Q2 2024 QoQ% Q3 2023 YoY% Net interest income $105.0 $103.7 1% $115.7 (9%) Noninterest income 200.4 193.3 4% 196.8 2% Noninterest expenses 264.3 256.5 3% 260.0 2% Efficiency ratio 86.5% 86.4% 83
Slide 6: Allowance for Credit Losses
$110.8 $111.4 $104.2 $115.1 $110.9 ($2.9) ($2.2) ($0.3) $1.2 1.35% 1.38% 1.29% 1.41% 1.39% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $55.0 $65.0 $75.0 $85.0 $95.0 $105.0 $115.0 $125.0 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Net Charge-Off Collective - Portfolio Changes Collective - Econ
Slide 7: Net Interest Income & Margin
3.02% 2.96% 2.85% 2.90% 2.84% 1 .00% 1 .50% 2 .00% 2 .50% 3 .00% 3 .50% 4 .00% 4 .50% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 7 Hilltop Holdings – Net Interest Income & Margin Net Interest Margin 2 Net Interest Income Quarter-over-Quarter Net Interest Margin $115.7 $111.2 $103.6 $103.7 $105.0 $8 0.0
Slide 8: Deposits
8 Notes: The sum of the period amounts may not equal the total amounts due to rounding. (1) Annualized. Deposit Mix at Period End Hilltop Holdings – Deposits Key Drivers & Statistics Interest-Bearing Deposits by Type at 9/30/2024 ($ in billions) 50% 31% 16% 3% Demand Money Market Time Savings Q3'23
Slide 9: Net Interest Income Rate Impacts and Asset Sensitivity
9 Hilltop Holdings – Net Interest Income Rate Impacts Asset Sensitivity Trending 1 Note: (1) Impact assumes instantaneous and parallel shift to interest rates. Assumes interest rate floor at 1 basis point (2) Bank variable rate loans above the floor that will reset in the next 12 months. Does not in
Slide 10: Noninterest Income
$88.7 $69.2 $66.7 $92.9 $7 9.9 $1 06.5 $1 06.4 $1 04.6 $92.1 $1 11.8 $1 1 .7 $1 1 .8 $1 1 .9 $9.3 $1 0.7 ($1 0.1) ($8.4) ($1 .6) ($0.9) ($2.1) $196.8 $179.0 $181.6 $193.3 $200.4 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Corporate, other and eliminations PlainsCapital Bank HilltopSecurities PrimeLendin
Slide 11: Noninterest Expenses
11 Hilltop Holdings – Noninterest Expenses Noninterest Expenses Year-over-Year Noninterest Expense ($ in millions) Key Drivers & Statistics ($ in millions) Q3 2023 $260.0 Compensation and Benefits 4.8 Occupancy and Equipment 0.4 Professional Services (1.0) Other Expenses 0.1 Q3 2024 $264.3 Q3'23 Q2'
Slide 12: Loans
23% 18% 21% 11% 22% 4% CRE - Non-owner occupied CRE - Owner occupied Commercial and industrial Construction and land development 1-4 family residential & Consumer Margin loans at Broker-Dealer $6.2 $6.2 $6.2 $6.2 $6.0 $0.4 $0.3 $0.3 $0.3 $0.3 $1.4 $1.3 $1.4 $1.4 $1.3 $0.2 $0.2 $0.2 $0.3 $0.3 $8.2 $8
Slide 13: Asset Quality
$(1,556) $67 4 $4,311 $83 $2,894 (0.08%) 0.03% 0.22% 0.00% 0.15% -1.00% -0.80% -0.60% -0.40% -0.20% 0.00% 0.20% 0.40% $(3,000) $(1,000) $1,000 $3,000 $5,000 $7,000 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 NCOs NCOs/Avg. Total Bank Loans 3.5x 1.6x 1.6x 1.1x 1.2x 1.41% 1.44% 1.35% 1.47 % 1.45% 0.00% 0.
Slide 14: 2024 Outlook
14 Hilltop Holdings – 2024 Outlook Outlook • Full year average Bank loans (excluding retained mortgages and mortgage warehouse lending) to decline modestly (0% – 2%) • Expect to retain $0 – $20 million per month of originated mortgages Loan Growth (Full year average HFI loan growth) • Full year aver
Slide 15: Appendix
Appendix 15
Slide 16: Non-GAAP to GAAP Reconciliation and Management's Explanation
16 Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures • Hilltop Consolidated 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
Slide 17: PlainsCapital Bank – Highlights Q3 2024
51.4% 53.2% 54.1% 57 .0% 55.2% Q3 2023 Q4 2023 Q1 2023 Q2 2024 Q3 2024 3.08% 2.94% 3.00% 3.10% 3.05% Q3 2023 Q4 2023 Q1 2023 Q2 2024 Q3 2024 PlainsCapital Bank – Highlights Q3 2024 17 Efficiency Ratio1 Notes: (1) Efficiency Ratio is calculated as noninterest expense divided by the sum of net interes
Slide 18: PrimeLending – Highlights
18 PrimeLending – Highlights Gain on Sale and Origination Fee Trends Notes: (1) Gain on Sale calculated as net gains from sale of loans divided by sales volume. Reported Gain on Sale reflects impact of loans retained by PlainsCapital Bank. 1 Mortgage Origination Volume $2.2 $1.8 $1.7 $2.4 $2.3 Q3 20
Slide 19: HilltopSecurities – Highlights Q3 2024
HilltopSecurities – Highlights Q3 2024 19 Notes: The sum of the period amounts may not equal the total amounts due to rounding. Presented net revenue by business line may differ slightly from 10-Q due to grouping of certain business lines into ‘Other’. Net Revenues by Business Line Summary Results (
Slide 20: Commercial Real Estate Portfolio
20 Hilltop Holdings – Commercial Real Estate Portfolio Commercial Real Estate Portfolio (Ending Balance, $ in millions, at September 30, 2024) CRE Allowance for Credit Losses (ACL) Commercial Real Estate – Non-Owner Occupied (Ending Balance at September 30, 2024) (Ending Balance at September 30, 202
Slide 21: Auto Lending Portfolio
21 Hilltop Holdings – Auto Lending Portfolio Auto Note Financing Commitments1 Commentary Allowance for Credit Losses ($ in millions) • Auto Note Financing committed portfolio balance has been in decline since 2021 o The impacts of higher interest rates and declining values of used vehicles continue