Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q2 2024 Earnings Presentation
21 slides from Hilltop's earnings presentation, Jul 26, 2024
Slide 1: Hilltop Holdings Inc. Q2 2024 Earnings Presentation
Hilltop Holdings Inc. Q2 2024 Earnings Presentation July 26, 2024
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 – Q2 2024
Investor Highlights – Q2 2024 Net Income EPS – Diluted ROAA1 ROAE $20.3 MM $0.31 $0.30 0.59% .86% 3.84% 5.76% • PlainsCapital Bank generated $32.8 million in pre-tax income during Q2 2024 • Bank net interest margin of 3.10% increased 10 basis points from Q1 2024, primarily driven by the repricing of
Slide 4: Capital Highlights – Q2 2024
Capital Highlights – Q2 2024 • During Q2 2024, Hilltop returned $21 million to shareholders through dividends ($11.1 million) and share repurchases ($9.9 million) Capital Management and Tangible Book Value Growth $40.00 22.00% 21.22% $35.00 19.32% 19.45% 18.97% 18.23% $32.58 $32.86 $31.95 $31.49 $30
Slide 5: Financial Summary
Hilltop Holdings – Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q2 2024 Q1 2024 QoQ% Q2 2023 YoY% Net interest income $103.7 $103.6 0% $118.3 (12%) Noninterest income 193.3 181.6 6% 190.7 1% Noninterest expenses 256.5 250.0 3% 267.0 (4%) Efficiency ratio 86.4% 87.7% 8
Slide 6: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $125.0 4.00% $3.8 ($0.7) ($0.1) $115.1 $115.0 $110.8 $111.4 $7.9 3.50% $109.3 $105.0 $104.2 3.00% ACL / Total Loans HFI 2.50% $95.0 2.00% $85.0 1.41% 1.50% 1.38% 1.29% $75.0 1.31% 1.35% 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) Q1 2024 2.85% $ 1 2 .5 0 2 $ 1 2 0 .0 $118.3 Cost of Interest-Bearing Deposits 0.1 0% $115.7 Loan Y ields 0.05% $111.2 $ 1 1 .5 0 $ 1 1 .0 0 Cash (0.08%) $1 05 0 . $103.6 $103
Slide 8: Q2 2024 Liquidity Update
Hilltop Holdings – Q2 2024 Liquidity Update Available Liquidity 1 Current Themes ($ in millions, at period end) • Available liquidity equated to $6.6 billion at June 30, 2024 FHLB Capacity $ 4 ,3 86 • Total uninsured deposits were $4.8 billion, or approximately 46% Inv estm ent Portfolio (av ailable
Slide 9: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q2'23 Q1'24 Q2'24 Av erage Deposits ($B) $1 1 .3 $1 0.7 $1 0.4 Cost of Interest-Bearing Deposits1 2 .84% 3 .58% 3 .59% $11.2 $11.1 $11.1 $10.9 Cost of Total Deposits1 1 .95% 2.59% 2 .62 % $ 0.4 $ 0.4 $ 0.2
Slide 10: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($ in millions) ($ in millions) Q2 2023 $190.7 Mortgage Production Income & Fees 2.9 Other Income (0.2) $196.8 Q2 2024 $193.3 $190.7 $193.3 $1 1 .7 $1 1 .2 $179.0 $181.6 $9 .3 $1 1 .8 $1 1 .9 $1 00.0 $1 06.5 $
Slide 11: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses Year-over-Year Noninterest Expense ($ in millions) ($ in millions) Q2 2023 $ 267 .0 $ 4 0 . 0 Com pensation and Benefits (6.9 ) 9 0 0 . % 87 .7 % Occupancy and Equipm ent (1 .7 ) 86.4% 86.4% 86.4% $ 30 5 0 . Professional Serv ices (2 .3 )
Slide 12: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) Q2'23 Q1'24 Q2'24 $ 8.4 Av erage Loans HFI Balance ($B) $8.0 $7 .8 $7 .9 $ 8.2 $ 8.1 $ 8.1 $ 8.2 $ 0.3 $ 0.2 Annualized Loan HFI Yield % 6 .2 1 % 6 .2 8% 6 .3 6 % $ 0.2 $ 0.2 $ 0.3 $ 1.4 $ 1.4 $ 1.3 $ 1.4 $ 1.4
Slide 13: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans as a % of Bank Loans Non-Performing Assets 5.0% 1.70% $125,000($ in thousands) 1.39% 1.45% 4.0% 3.6% $100,000 3.4% 3.4% 3.5% 1.20% 3.0% 0.4% 0.6% 0.7% 0.95% 3.0% 0.91% $75,000 0.95% 0.53% 0.70% 2.0% $50,000 0.47 % 3.0% 3.3% 3.0% 2.9% 2.9% 0.45% 1.0%
Slide 14: 2024 Outlook
Hilltop Holdings – 2024 Outlook Outlook • Full year average Bank loans (excluding retained mortgages and mortgage warehouse Loan Growth lending) remain stable with prior year levels (Full year average HFI loan growth) • Expect to retain $0 – $20 million per month of originated mortgages • Expecting
Slide 15: Appendix
Appendix 15
Slide 16: Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Tangible Common Equity is a non-GAAP financial measure. Tangible common equity is defined as our total stockholders’ equity, excluding preferred stock, reduced by goodwill and other intangible assets. This is
Slide 17: PlainsCapital Bank – Q2 2024 Highlights
PlainsCapital Bank – Q2 2024 Highlights Summary Results ($ in millions) Q2 2023 Q2 2024 Key Highlights Q2 2023 Q2 2024 Net Interest Incom e $1 01 .0 $9 2 .5 ROAA 0.89 % 0.81 % Prov ision for (rev ersal of) Credit Losses 1 4 .9 1 1 .0 Full Serv ice Branches (period end) 59 57 Noninterest Incom e 1 1
Slide 18: PrimeLending – Q2 2024 Highlights
PrimeLending – Q2 2024 Highlights Summary Results ($ in millions) Q2 2023 Q2 2024 Key Highlights Q2 2023 Q2 2024 Net Interest Incom e (Expense) ($5.9 ) ($4 .6 ) Origination Volum e ($m m ) $2 ,4 52 $2 ,3 7 9 Noninterest Incom e 9 0.1 9 2 .9 % Purchase 94% 93% Noninterest Expense 9 8.7 86 .9 Sales Vo
Slide 19: HilltopSecurities – Q2 2024 Highlights
HilltopSecurities – Q2 2024 Highlights Summary Result s ($ in millions) Q2 2023 Q2 2024 Key Highlight s ($ in millions) Q2 2023 Q2 2024 Net Interest Incom e $1 3 .2 $1 2 .2 Com pensation/Net Rev enue (%) 57 .7 % 6 3 .5% Prov ision for (Rev ersal of) Credit Losses (0.1 ) (0.0) Pre-tax Margin (%) 1 6
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) (Ending Balance) CRE - Owner Occupied $1,475 $2,001 CRE - Non-Owner 42% 58% Occupied CRE Allowance for Credit Losses (ACL) Allowance for AC
Slide 21: Auto Lending Portfolio
Hilltop Holdings – Auto Lending Portfolio Auto Note Financing Commitments1 Commentary • Auto Note Finance committed portfolio balance has been in decline since 2021 • The impacts of higher interest rates and declining values of used vehicles continue to pressure the portfolio • Current portfolio com