Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q2 2014 Earnings Presentation
17 slides from Hilltop's earnings presentation, Jul 31, 2014
Slide 1: Hilltop Holdings Inc. Q2 2014 Earnings Presentation
Hilltop Holdings Inc. Q2 2014 Earnings Presentation Investor Presentation | July 31, 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 – Q2 2014 Highlights
3 Hilltop Holdings – Q2 2014 Highlights For the second quarter of 2014, GAAP income to common stockholders for Hilltop was $27.1 million, or $0.30 earnings per diluted share Return on average equity was 7.99% in Q2 2014 and 7.29% in Q2 2013 Return on average assets was 1.24% in Q2 2014 and Q2 2013 P
Slide 4: Financial Summary
4 Hilltop Holdings – Financial Summary Financial Highlights Q2 2013 Q1 2014 Q2 2014 Income to Common ($000) 20,943 23,760 27,085 EPS - Diluted ($) 0.24 0.26 0.30 Book Value Per Share ($) 12.59 13.76 14.22 NIM (taxable equivalent) 4.33% 4.62% 5.18% Assets ($000) 7,402,803 9,033,432 9,396,448 Loans, G
Slide 5: Net Interest Income & Margin
5 Hilltop Holdings – Net Interest Income & Margin NIM expanded by 56 bps to 5.18% in Q2 2014 compared to Q1 2014 Yield on earning assets of 5.44% driven by gross loans, as average balance increased and average yield rose by 34 bps Cost of interest bearing liabilities decline driven by a decrease in
Slide 6: Noninterest Income
6 Hilltop Holdings – Noninterest Income Noninterest income was $203.3 million in Q2 2014, down 15.0% from Q2 2013 Noninterest income from mortgage origination segment declined $42.2 million from Q2 2013 to $123.0 million in Q2 2014, representing 61% of total noninterest income at June 30, 2014 Net i
Slide 7: Noninterest Expense
7 Hilltop Holdings – Noninterest Expense Noninterest expense was $251.2 million in Q2 2014, down 3.5% from Q2 2013 Compensation declined $8.3 million, or 6.2%, from Q2 2013 to $124.4 million in Q2 2014 due largely to lower variable compensation in mortgage origination segment, offset by additional c
Slide 8: Balance Sheet
Hilltop Holdings – Balance Sheet Loans held for sale grew $523.7 million from Q1 2014 to Q2 2014, primarily due to spring/summer seasonal volume Gross non-covered loans HFI increased 1.9% from Q1 2014 (8% annualized) Continue to work through problem loans and covered OREO acquired from FNB, with cov
Slide 9: PlainsCapital Corporation – Update
9 PlainsCapital Corporation – Update We continue to organically grow legacy PlainsCapital Bank, while integrating and improving the former FNB franchise Hired 8 lending personnel in Q2 2014 and continue to grow the loan portfolio, particularly in new markets such as Corpus Christi and Houston Have r
Slide 10: PlainsCapital Bank – Q2 2014 Highlights
10 PlainsCapital Bank – Q2 2014 Highlights Bank’s income before taxes of $41.5 million in Q2 2014 Net interest income grew 32.4% from Q2 2013 to Q2 2014 Total gross loans HFI were flat relative to Q1 2014 Gross non-covered loans HFI up $67.9 million Approximately 84% of noninterest expense increase
Slide 11: PlainsCapital Bank – Loan Portfolio by Classification
PlainsCapital Bank – Loan Portfolio by Classification 11 Covered PCI Loans Q2 2014 Total: $595.2 million Covered Non-PCI Loans Q2 2014 Total: $249.8 million Non-Covered PCI Loans Q2 2014 Total: $60.8 million Non-Covered Non-PCI Loans Q2 2014 Total: $3,654.1 million Note: PCI stands for Purchased Cre
Slide 12: PCI Loans at June 30, 2014
PCI Loans at June 30, 2014 12 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 and non-covered loans PCI loans had a total discount of $30
Slide 13: Non-PCI Loans at June 30, 2014
Non-PCI Loans at June 30, 2014 13 ($000) Covered Non-PCI Non-Covered Non-PCI Total Non-PCI Outstanding Balance 267,115 3,684,186 3,951,301 (Discount) (17,320) (30,136) (47,456) Carrying Amount 249,795 3,654,050 3,903,845 Allowance for Loan Loss (201) (32,857) (33,058) Total Non-PCI Loans, Net of All
Slide 14: PrimeLending – Q2 2014 Highlights
14 PrimeLending – Q2 2014 Highlights Income before taxes of $9.2 million in Q2 2014 declined year over year due to lower origination volume, offset by a decline in variable compensation expense Origination volume of $2.8 billion in Q2 2014 Purchase volume up 1% against Q2 2013 Refinance volume decli
Slide 15: First Southwest – Q2 2014 Highlights
15 First Southwest – Q2 2014 Highlights Pre-tax income of $640 thousand in Q2 2014 versus $2.0 million pre-tax income in Q2 2013 Noninterest income decline of $3.0 million, partially offset by noninterest expense decline of $2.0 million Noninterest expenses were down year over year, mainly driven by
Slide 16: National Lloyds Corporation – Q2 2014 Highlights
16 National Lloyds Corporation – Q2 2014 Highlights We expect higher losses in the second quarter from seasonal hail, wind and tornado events in Texas Growth in earned premium and improved claims loss experience (tied to a decline in severity of weather related losses) drove $15 million year over ye
Slide 17: Questions?
Questions? BE iusz0r