Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q1 2014 Earnings Presentation
18 slides from Hilltop's earnings presentation, May 6, 2014
Slide 1: Hilltop Holdings Inc. Q1 2014 Earnings Presentation
Hilltop Holdings Inc. Q1 2014 Earnings Presentation Investor Presentation | May 6, 2014
Slide 2: Preface
Preface 2 200 Crescent Court, Suite 1330 Dallas, TX 75201 Phone: (214) 855-2177 Fax: (817) 887-1687 www.hilltop-holdings.com Anyone desiring additional information may contact: Isabell Novakov Phone: (214) 252-4029 Email: inovakov@plainscapital.com Corporate Headquarters Additional Information FORWA
Slide 3: Hilltop Holdings – Q1 2014 Highlights
3 Hilltop Holdings – Q1 2014 Highlights For the first quarter of 2014, GAAP income to common stockholders for Hilltop Holdings (“Hilltop”) was $23.8 million, or $0.26 earnings per diluted share Return on average equity was 7.65% in Q1 2014 and 11.46% in Q1 2013 Return on average assets was 1.14% in
Slide 4: Hilltop Holdings – Financial Summary
4 Hilltop Holdings –Financial Summary Financial Highlights Q1 2013 Q4 2013 Q1 2014 Income to Common ($000) 32,370 29,528 23,760 EPS - Diluted ($) 0.39 0.34 0.26 Book Value Per Share ($) 12.74 13.27 13.76 NIM (taxable equivalent) 4.35% 4.52% 4.62% Assets ($000) 7,216,910 8,904,122 9,033,432 Loans, Gr
Slide 5: Hilltop Holdings – Net Interest Income & Margin
5 Hilltop Holdings – Net Interest Income & Margin NIM expanded by 10 bps to 4.62% in Q1 2014 compared to Q4 2013, driven largely by lower rates on notes payable and borrowings Yield on earning assets of 4.90% driven by loan yield of 6.29% Cost of interest bearing deposits decreased slightly to 31 bp
Slide 6: Hilltop Holdings – Noninterest Income
6 Hilltop Holdings – Noninterest Income Noninterest income was $170.1 million in Q1 2014, down 20.2% from Q1 2013 Noninterest income from mortgage operations declined $55.0 million from Q1 2013 to $91.5 million in Q1 2014, representing 54% of total noninterest income Net insurance premiums earned in
Slide 7: Hilltop Holdings – Noninterest Expense
7 Hilltop Holdings – Noninterest Expense Noninterest expense was $212.6 million in Q1 2014, down 1.1% from Q1 2013 Compensation declined $9.8 million from Q1 2013, or 8.4%, to $106.4 million in Q1 2014 due largely to lower variable compensation in mortgage origination segment, offset by addition of
Slide 8: Hilltop Holdings – Balance Sheet
Hilltop Holdings – Balance Sheet Stabilization of funding and liquidity along with increase in non-covered loan balance contributed to balance sheet growth from Q4 2013 to Q1 2014 Cash, fed funds and investment securities increased $239.1 million and short term borrowings grew by $149.3 million in Q
Slide 9: PlainsCapital Corporation – Update
9 PlainsCapital Corporation – Update FNB Operational Update Former FNB franchise is acclimating well to PlainsCapital Bank products, systems and business practices Costs remain elevated due to integration, as Q1 2014 costs impacted by system conversion, occupancy costs related to surrendered/closed
Slide 10: PlainsCapital Corporation – Q1 2014 Highlights
10 PlainsCapital Corporation – Q1 2014 Highlights Banking Highlights ($000) Q1 2013 Q1 2014 Pre-Tax Income 36,232 31,895 Net Interest Income 67,624 79,572 NIM (%) 5.30 4.80 Assets 6,105,448 8,018,568 Tier 1 Leverage Ratio (%) 9.22 9.53 Mortgage Origination Highlights ($000) Q1 2013 Q1 2014 Pre-Tax I
Slide 11: PlainsCapital Bank – Q1 2014 Highlights
11 PlainsCapital Bank – Q1 2014 Highlights Bank’s income before taxes of $31.9 million in Q1 2014 Total gross loans HFI increased $38.4 million from Q4 2013 Gross non-covered loans HFI up $132.3 million Over 80% of noninterest expense increase from Q1 2013 to Q1 2014 related to integration and opera
Slide 12: PlainsCapital Bank – Loan Portfolio by Classification
PlainsCapital Bank – Loan Portfolio by Classification 12 Covered PCI Loans Q1 2014 Total: $651.9 million Covered Non-PCI Loans Q1 2014 Total: $260.5 million Non-Covered PCI Loans Q1 2014 Total: $85.4 million Non-Covered Non-PCI Loans Q1 2014 Total: $3,561.6 million Note: PCI stands for Purchased Cre
Slide 13: PCI Loans at March 31, 2014
PCI Loans at March 31, 2014 13 Purchased Credit Impaired (“PCI”) loans are loans with evidence of credit quality deterioration, for which it is probable that not all contractually required payments will be collected PCI loans include: Covered loans – Loans that are subject to the loss share agreemen
Slide 14: Non-PCI Loans at March 31, 2014
Non-PCI Loans at March 31, 2014 14 ($000) Covered Non-PCI Non-Covered Non-PCI Total Non-PCI Outstanding Balance 279,119 3,596,006 3,875,125 (Discount) / Premium (18,598) (34,456) (53,054) Carrying Amount 260,521 3,561,550 3,822,071 Allowance for Loan Loss (92) (31,293) (31,385) Total Non-PCI Loans,
Slide 15: PrimeLending – Q1 2014 Highlights
15 PrimeLending – Q1 2014 Highlights Loss before taxes driven by lower origination volume in Q1 2014, as seasonally lower volume and market forces continue to pressure the mortgage origination business Origination volume of $1.9 billion in Q1 2014 Purchase volume down 8.8% against Q1 2013 Refinance
Slide 16: First Southwest – Q1 2014 Highlights
16 First Southwest – Q1 2014 Highlights Business pressures continue to challenge First Southwest, with pre-tax loss of $153 thousand in Q1 2014 versus $256 thousand pre-tax income in Q1 2013 Substantial amount of noninterest income continues to be driven by TBA business, which provides interest rate
Slide 17: National Lloyds Corporation – Q1 2014 Highlights
17 National Lloyds Corporation – Q1 2014 Highlights Increase in earned premiums, particularly growth in core products, and improvement in claims loss experience drove Q1 2014 pre-tax income of $11.4 million, versus $6.2 million in Q1 2013 Combined ratio declined to 77.5% in Q1 2014 from 88.7% in Q1
Slide 18: Questions?
18 Questions?