Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q1 2024 Earnings Presentation
21 slides from Hilltop's earnings presentation, Apr 19, 2024
Slide 1: Hilltop Holdings Inc. Q1 2024 Earnings Presentation
Hilltop Holdings Inc. Q1 2024 Earnings Presentation April 19, 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.com Email: eyohe@hilltop.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives of Hilltop Holdings
Slide 3: Investor Highlights – Q1 2024
Investor Highlights – Q1 2024 Net Income EPS – Diluted ROAA ROAE $27.7 MM $0.42 $0.30 0.74% .86% 5.23% 5.76% • PlainsCapital Bank generated $50.3 million in pre-tax income during Q1 2024 • Bank net interest margin of 3.00% increased 6 basis points from Q4 2023, driven by the repricing of the loan po
Slide 4: Capital Highlights – Q1 2024
Capital Highlights – Q1 2024 • During Q1 2024, Hilltop returned $21.0 million to shareholders through dividends and share repurchases • $11.1 million in dividends • $9.9 million in share repurchases Capital Management and Tangible Book Value Growth 1, 2 2 2 Notes: (1) Tangible common equity and tang
Slide 5: Q1 2024 Financial Summary
Hilltop Holdings – Q1 2024 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q1 2024 Q4 2023 QoQ% Q1 2023 YoY% Net interest income $103.6 $111.2 (7%) $121.7 (15%) Noninterest income 181.6 179.0 1% 162.5 12% Noninterest expenses 250.0 250.8 (0%) 250.5 (0%) Efficiency ratio
Slide 6: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $125.0 4.00% $4.1 $115.0 $110.8 $111.4 3.50% $109.3 ($2.9) $104.2 3.00% $105.0 ($4.1) ($4.3) ACL / Total Loans HFI $97.4 2.50% $95.0 2.00% $85.0 1.29% 1.50% 1.35% 1.38% $75.0 1.19% 1.31% 1.00% $6
Slide 7: 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, 2024) (Ending Balance at March 31, 2024) Office 14% Retail 27% CRE - Owner 7% Occupied Hotel/Motel $1,449 $1,933 Multifamily CR
Slide 8: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Quarter-over-Quarter Net Interest Margin ($ in millions) Q4 2023 2.96%2 $121.7 $125 .0 $120.0 $118.3 Loan Y ields (0.08%) $115.7 $115 .0 Securities Portfolio (0.06%) $111.2 $110 .0 Cost of Interest Bearing Deposits ex Brokered (0.03
Slide 9: Q1 2024 Liquidity Update
Hilltop Holdings – Q1 2024 Liquidity Update Available Liquidity1 Current Themes ($ in millions, at period end) • Available liquidity equated to $7.4 billion at March 31, 2024 FHLB Capacity 4,1 87 Inv estm ent Portfolio (av ailable) 1 ,47 7 • Total uninsured deposits were $4.8 billion, or approximate
Slide 10: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q1'23 Q4'23 Q1'24 Av erage Deposits ($B) $1 1 .0 $1 1 .1 $1 0.7 1 Cost of Interest-Bearing Deposits 2.01 % 3 .40% 3 .58% $11.1 $11.2 $11.1 $11.1 $10.9 Cost of Total Deposits 1 1 .3 2% 2.45% 2.59% $ 0.4 $ 0
Slide 11: Deposits (continued)
Hilltop Holdings – Deposits (continued) Total Deposits ($ in millions) $11,500 $11,000 $ 131 $ 121 $10,500 ($ 12) ($ 37 7) ($ 42) $10,000 $9,500 $ 11,063 $ 10,884 $9,000 $8,500 $8,000 12/31/23 Deposit Sweep Brokered Money Market Interest Bearing Other 3/31/24 Deposits Balance Checking CD Maturity Sc
Slide 12: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($ in millions) ($ in millions) Q1 2023 $162.5 Mortgage Production Income & Fees (2.1) Securities and Inv estment Adv isory Fees & Commissions 7 .7 $196.8 $190.7 Other Income 13.5 $1 1 .7 $1 1 .2 $179.0 $181.6
Slide 13: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses Year-over-Year Noninterest Expense ($MM) ($ in millions) Q1 2023 $ 250.5 $40 0. 0 90.0% Com pensation and Benefits (2 .0) 88.1% 87 .7 % Occupancy and Equipm ent (1 .0) 86.4% 86.4% $35 0.0 Professional Serv ices (1 .0) Other Expenses 3 .5 8
Slide 14: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) $ 8.4 $ 8.2 $ 8.2 $ 8.1 $ 8.1 Q1'23 Q4'23 Q1'24 $ 0.2 $ 0.3 $ 0.2 $ 0.2 $ 0.2 Av erage Loans HFI Balance ($B) $7 .9 $7 .9 $7 .8 $ 1.4 Annualized Loan HFI Yield % 5.7 9 % 6 .2 7 % 6 .2 8% $ 1.4 $ 1.4 $ 1.3 $ 1.4
Slide 15: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans as a % of Bank Loans $100,000 Non-Performing Assets ($ in millions) 1.30% 5.0% 0.95% 0.91% 1.05% 4.0% $75,000 3.4% 3.4% 3.5% 0.80% 3.0% 0.4% 0.6% 3.0% 2.7 % 0.53% $50,000 0.47% 0.55% 0.39% 2.0% 0.30% 3.0% 3.3% 2.7 % 3.0% 2.9% $25,000 1.0% 0.05% $30,5
Slide 16: 2024 Outlook
Hilltop Holdings – 2024 Outlook Outlook • Full year average Bank loan growth of 0% – 2% (excluding retained mortgages and mortgage Loan Growth warehouse lending) (Full year average HFI loan growth) • Expect to retain $0 – $20 million per month of originated mortgages • Expecting decline of 0% – 3% d
Slide 17: Appendix
Appendix 17
Slide 18: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Tangible Common Equity, is a non-GAAP financial measure. Tangible common equity is defined as our total stockholders’ equity, excluding preferred stock, reduced by goodwill and other intangible assets. This i
Slide 19: PlainsCapital Bank – Q1 2024 Highlights
PlainsCapital Bank – Q1 2024 Highlights Summary Results ($ in millions) Q1 2023 Q1 2024 Key Highlights Q1 2023 Q1 2024 Net Interest Incom e $1 04 .8 $91 .6 ROAA 1 .4 4 % 1 .2 0% Prov ision for (rev ersal of) Credit Losses 1 .6 (2 .9) Full Serv ice Branches (period end) 59 57 Noninterest Incom e 1 1
Slide 20: PrimeLending – Q1 2024 Highlights
PrimeLending – Q1 2024 Highlights Summary Results ($ in millions) Q1 2023 Q1 2024 Key Highlights Q1 2023 Q1 2024 Net Interest Incom e (Expense) ($4 .2 ) ($4 .3 ) Origination Volum e ($m m ) $1 ,7 3 3 $1 ,67 6 Noninterest Incom e 68.8 66.7 % Purchase 93 % 92 % Noninterest Expense 88.8 7 8.9 Sales Vol
Slide 21: HilltopSecurities – Q1 2024 Highlights
HilltopSecurities – Q1 2024 Highlights Summary Results ($ in millions) Q1 2023 Q1 2024 Key Highlights ($ in millions) Q1 2023 Q1 2024 Net Interest Income $13.9 $12.3 Compensation/Net Revenue (%) 59.7% 59.4% Provision for (Reversal of) Credit Losses 0.7 (0.0) Pre-tax Margin (%) 12.8% 16.2% Noninteres