Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q4 2023 Earnings Presentation
22 slides from Hilltop's earnings presentation, Jan 26, 2024
Slide 1: Hilltop Holdings Inc. Q4 2023 Earnings Presentation
Hilltop Holdings Inc. Q4 2023 Earnings Presentation January 26, 2024
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 – Q4 2023
Investor Highlights – Q4 2023 Net Income EPS – Diluted ROAA ROAE $28.7 MM $0.44 $0.30 0.75% .86% 5.46% 5.76% • PlainsCapital Bank generated $47.8 million in pre-tax income during Q4 2023 • Bank net interest margin of 2.94% decreased 14 basis points from Q3 2023, driven by deposit migration from NIB
Slide 4: Capital Highlights – Q4 2023
Capital Highlights – Q4 2023 • Tangible book value per share has compounded at 10% annually over the past 5 years • Dividends per share has compounded at 19% annually over the past 5 years Capital Management and Tangible Book Value Growth 1 TBVPS h4% Versus 12/31/22 1 2 2 2 Notes: (1) Tangible commo
Slide 5: Q4 Financial Summary
Hilltop Holdings – Q4 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q4 2023 Q3 2023 QoQ% Q4 2022 YoY% Net interest income $111.2 $115.7 (4%) $123.4 (10%) Noninterest income 179.0 196.8 (9%) 169.8 5% Noninterest expenses 250.8 260.0 (4%) 253.4 (1%) Efficiency ratio 86.4
Slide 6: Full Year Financial Summary
Hilltop Holdings – Full Year Financial Summary $ in Millions, except EPS 2023 2022 Income Statement and Key Metrics Actuals Actuals YoY% Net interest income $466.8 $459.0 2% Noninterest income 729.0 832.5 (12%) Noninterest expenses 1,028.3 1,127.0 (9%) Efficiency ratio 86.0% 87.3% 1 Pre-provision ne
Slide 7: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $125.0 4.00% $2.7 $0.6 $111.4 $115.0 $109.3 $110.8 3.50% ($2.0) ($0.7) 3.00% $105.0 $97.4 ACL / Total Loans HFI $95.4 2.50% $95.0 2.00% $85.0 1.38% 1.50% 1.31% 1.35% $75.0 1.18% 1.19% 1.00% $65.0
Slide 8: Commercial Real Estate Portfolio
Hilltop Holdings – Commercial Real Estate Portfolio Commercial Real Estate Portfolio Commercial Real Estate – Non-Owner Occupied (Ending Balance at December 31, 2023) (Ending Balance at December 31, 2023) ($ in millions) CRE Allowance for Credit Losses (ACL) (Ending Balance at December 31, 2023) All
Slide 9: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Net Interest Margin Roll Forward ($ in millions) $130. 0 Q3 2023 3.02%2 $125. 0 $123.4 $121.7 Cost of Interest Bearing Deposits ex Brokered (0.1 7 %) $120. 0 $118.3 Loan Y ields (0.01 %) $115.7 Securities Portfolio Y ield Increase 0
Slide 10: Net Interest Income Rate Impacts
Hilltop Holdings – Net Interest Income Rate Impacts Estimated Impact on 12-month Net Interest Income1 Bank Loans HFI – Fixed vs. Variable Rate at 12/31/23 6% 3% Fixed Rate (3%) 43% Variable rate at or below (6%) 47% floors Variable rate above floor 9% -100 -50 +50 +100 Interest Rate Change (Basis Po
Slide 11: Q4 2023 Liquidity Update
Hilltop Holdings – Q4 2023 Liquidity Update Available Liquidity1 Current Themes ($ in millions, at period end) • Available liquidity totaled ~$7.6 billion at December 31, 2023 FHLB Capacity 4,2 05 Inv estm ent Portfolio (av ailable) 1 ,594 • Total uninsured deposits were $4.7 billion, or approximate
Slide 12: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q4'22 Q3'23 Q4'23 Av erage Deposits ($B) $1 1 .4 $1 1 .2 $1 1 .1 $11.3 $11.2 1 $11.1 $11.1 $11.1 Cost of Interest-Bearing Deposits 1 .57 % 3 .23 % 3 .40% $0.4 $0.4 $0.2 1 $1.1 $1.1 Cost of Total Deposits 0
Slide 13: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($MM) ($ in millions) Q4 2022 $169.8 Mortgage Production Income & Fees (1.9) Securities and Inv estment Adv isory Fees & Commissions 5.0 $196.8 $190.7 Other Income 6.1 $1 1 .7 $179.0 $1 1 .2 Q4 2023 $17 9.0 $1
Slide 14: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses Year-over-Year Noninterest Expense ($MM) $40 0.0 ($ in millions) 88.1% 90. 0% Q4 2022 $ 253.4 $350 .0 86.4% 86.4% 86.4% Com pensation and Benefits (7 .5) Occupancy and Equipm ent (1 .6) 83.2% 85. 0% Professional Serv ices 1 .6 Other Expens
Slide 15: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) Q4'22 Q3'23 Q4'23 Av erage Loans HFI Balance ($B) $7 .8 $8.0 $7 .9 $ 8.4 $ 8.1 $ 8.2 $ 8.2 $ 8.1 Annualized Loan HFI Yield % 5.4 2 % 6 .3 1 % 6 .2 7 % $ 0.2 $ 0.3 $ 0.2 $ 0.2 $ 0.2 $ 1.3 $ 1.4 $ 1.4 $ 1.4 $ 1.3
Slide 16: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans as a % of Bank Loans $100,000 Non-Performing Assets ($ in 000s) 1.30% 5.0% 0.95% 1.05% $75,000 4.0% 0.80% 3.4% 3.4% 3.0% 0.4% 0.53% 3.0% 2.6% 2.7 % $50,000 0.47% 0.55% 0.43% 0.39% 2.0% 0.30% 3.0% 3.3% $25,000 2.7 % 3.0% 2.6% 1.0% 0.05% $32,645 $30,58
Slide 17: 2024 Outlook
Hilltop Holdings – 2024 Outlook Outlook • Full year average bank loan growth 0% – 2% (before retained mortgages from PrimeLending Loan Growth and mortgage warehouse lending) (Full year average HFI loan growth) • Expect to retain $0 – $20 million per month of mortgages from PrimeLending • Expecting d
Slide 18: Appendix
Appendix 18
Slide 19: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Tangible Common Equity, is a non-GAAP financial measure. Tangible common equity is defined as our total stockholders’ equity, excluding preferred stock, reduced by goodwill and other intangible assets. This i
Slide 20: PlainsCapital Bank – Q4 2023 Highlights
PlainsCapital Bank – Q4 2023 Highlights Summary Results ($ in millions) Q4 2022 Q4 2023 FY 2022 FY 2023 Key Highlights Q4 2022 Q4 2023 FY 2022 FY 2023 Net Interest Incom e $1 09.3 $93 .1 $4 1 3 .6 $3 97 .9 ROAA 1 .3 1 % 1 .1 2 % 1 .1 9% 1 .1 5% Prov ision for (rev ersal of) Full Serv ice Branches 3
Slide 21: PrimeLending – Q4 2023 Highlights
PrimeLending – Q4 2023 Highlights Summary Results ($ in millions) Q4 2022 Q4 2023 FY 2022 FY 2023 Key Highlights Q4 2022 Q4 2023 FY 2022 FY 2023 Net Interest Incom e (Expense) ($4 .5) ($4 .7 ) ($1 0.5) ($2 0.3 ) Origination Volum e ($m m ) $2 ,04 3 $1 ,81 5 $1 2 ,660 $8,2 4 3 Noninterest Incom e 7 1
Slide 22: HilltopSecurities – Q4 2023 Highlights
HilltopSecurities – Q4 2023 Highlights Summary Results Key Highlight s ($ in millions) Q4 2022 Q4 2023 FY 2022 FY 2023 ($ in millions) Q4 2022 Q4 2023 FY 2022 FY 2023 Com pensation/Net Rev enue Net Interest Incom e $1 4 .1 $1 3 .6 $51 .6 $52 .9 56 .6 % 57 .3 % 6 3 .8% 58.4 % (%) Prov ision for (Rev