Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q3 2024 Earnings Presentation
21 slides from Hilltop's earnings presentation, Oct 25, 2024
Slide 1: Hilltop Holdings Inc. Q3 2024 Earnings Presentation
Hilltop Holdings Inc. Q3 2024 Earnings Presentation October 25, 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 – Q3 2024
Investor Highlights – Q3 2024 Net Income EPS – Diluted ROAA ROAE $29.7 MM $0.46 $0.30 0.84% .86% 5.51% 5.76% • PlainsCapital Bank generated $48.1 million in pre-tax income during Q3 2024 • Bank net interest margin of 3.05% decreased 5 basis points from Q2 2024, primarily driven by an increase in the
Slide 4: Capital Highlights – Q3 2024
Capital Highlights – Q3 2024 • During Q3 2024, Hilltop returned $11.0 million to stockholders through dividends Capital Management and Tangible Book Value Growth $40.00 22.00% 21.22% 20.48% $35.00 18.97% 19.32% 18.23% $33.51 $32.58 $31.95 $31.49 $30.00 $29.29 $28.28 $28.37 $28.35 $27.18 $25.00 $24.7
Slide 5: Q3 Financial Summary
Hilltop Holdings – Q3 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q3 2024 Q2 2024 QoQ% Q3 2023 YoY% Net interest income $105.0 $103.7 1% $115.7 (9%) Noninterest income 200.4 193.3 4% 196.8 2% Noninterest expenses 264.3 256.5 3% 260.0 2% Efficiency ratio 86.5% 86.4% 8
Slide 6: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $125.0 4.00% $115.1 ($2.9) $115.0 $110.8 $111.4 ($2.2) ($0.3) $1.2 $110.9 3.50% $105.0 $104.2 3.00% ACL / Total Loans HFI 2.50% $95.0 2.00% $85.0 1.39% 1.35% 1.41% 1.50% 1.38% 1.29% $75.0 1.00% $
Slide 7: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Quarter-over-Quarter Net Interest Margin ($ in millions) Q2 2024 2.90% 2 $ 1 2 0 .0 $115.7 Cost of Interest-Bearing Deposits (0.07 %) $111.2 $ 1 1 .5 0 $ 1 1 .0 0 Cash 0.05% $105.0 Accretion (0.03%) $ 1 050 . $103.6 $103.7 $ 1 0 00
Slide 8: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q3'23 Q2'24 Q3'24 Av erage Deposits ($B) $1 1 .2 $1 0.4 $1 0.5 Av erage Broker-Dealer Sweep Deposits ($B) $1 .4 $0.8 $0.8 $11.1 $11.1 Av erage Brokered Deposits ($B) $0.4 $0.0 $0.0 $10.9 $10.8 $ 0.4 $ 0.2
Slide 9: Net Interest Income Rate Impacts
Hilltop Holdings – Net Interest Income Rate Impacts Asset Sensitivity Trending 1 Bank Loans HFI – Fixed vs. Variable Rate at 9/30/24 12% 9% Fixed Rate 7% 42% 49% Variable rate at or below floors Variable rate above floors 9% Dec 20 Dec 21 Dec 22 Dec 23 Sep 24 Represents impact on HTH NII to an insta
Slide 10: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($ in millions) ($ in millions) Q3 2023 $196.8 Mortgage Production Income & Fees (8.8) Securities and Inv estment Adv isory Fees & Commissions 5.4 $196.8 $200.4 Other Income 7 .0 $1 1 .7 $193.3 $179.0 $181.6 $
Slide 11: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses Year-over-Year Noninterest Expense ($ in millions) ($ in millions) Q3 2023 $260.0 Compensation and Benefits 4.8 Occupancy and Equipment 0.4 Professional Services (1.0) Other Expenses 0.1 Q3 2024 $264.3 Key Drivers & Statistics Q3'23 Q2'24
Slide 12: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) Q3'23 Q2'24 Q3'24 $ 8.2 $ 8.1 $ 8.2 Av erage Loans HFI Balance ($B) $8.0 $7 .9 $8.0 $ 8.1 $ 8.0 $ 0.2 $ 0.2 $ 0.2 $ 0.3 Annualized HTH Loan HFI Yield % 6 .3 1 % 6 .3 6 % 6 .1 9 % $ 0.3 Annualized Bank Loan HFI Y
Slide 13: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans as a % of Bank Loans Non-Performing Assets ($ in thousands) 5.0% 1.70% $125,000 1.39% 3.7 % 1.45% 4.0% 3.6% 1.23% 3.4% 3.4% 3.5% $100,000 0.7 % 1.20% 0.4% 0.6% 0.7 % 0.95% 3.0% 0.91% $75,000 0.95% 2.0% 0.70% $50,000 0.47 % 3.0% 3.3% 3.1% 2.9% 2.9% 0.
Slide 14: 2024 Outlook
Hilltop Holdings – 2024 Outlook Outlook • Full year average Bank loans (excluding retained mortgages and mortgage warehouse Loan Growth lending) to decline modestly (0% – 2%) (Full year average HFI loan growth) • Expect to retain $0 – $20 million per month of originated mortgages • Full year average
Slide 15: Appendix
Appendix 15
Slide 16: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Tangible common equity is a non-GAAP financial measure. Tangible common equity is defined as our total stockholders’ equity, excluding preferred stock, reduced by goodwill and other intangible assets. This is
Slide 17: PlainsCapital Bank – Q3 2024 Highlights
PlainsCapital Bank – Q3 2024 Highlights Summary Result s ($ in millions) Q3 2023 Q3 2024 Key Highlight s Q3 2023 Q3 2024 Net Interest Incom e $99 .0 $9 3 .5 ROAA 1 .2 0% 1 .1 4% Prov ision for (rev ersal of) Credit Losses 0.7 (1 .4) Full Serv ice Branches (period end) 59 55 Noninterest Incom e 1 1 .
Slide 18: PrimeLending – Q3 2024 Highlights
PrimeLending – Q3 2024 Highlights Summary Result s ($ in millions) Q3 2023 Q3 2024 Key Highlights Q3 2023 Q3 2024 Net Interest Incom e (Expense) ($5.5) ($4.4) Origination Volum e ($m m ) $2 ,2 4 4 $2 ,3 07 Noninterest Incom e 88.7 7 9 .9 % Purchase 93% 91 % Noninterest Expense 9 1 .5 84 .2 Sales Vol
Slide 19: HilltopSecurities – Q3 2024 Highlights
HilltopSecurities – Q3 2024 Highlights Summary Result s ($ in millions) Q3 2023 Q3 2024 Key Highlight s ($ in millions) Q3 2023 Q3 2024 Net Interest Incom e $1 2 .2 $1 2 .4 Com pensation/Net Rev enue (%) 58.9 % 6 1 .1 % Prov ision for (Rev ersal of) Credit Losses (0.7 ) 0.2 Pre-tax Margin (%) 1 8.2
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, at September 30, 2024) (Ending Balance at September 30, 2024) CRE Allowance for Credit Losses (ACL) (Ending Balance at September 30, 2024)
Slide 21: Auto Lending Portfolio
Hilltop Holdings – Auto Lending Portfolio Auto Note Financing Commitments1 Commentary ($ in millions) • Auto Note Financing committed portfolio balance has been in decline since 2021 o The impacts of higher interest rates and declining values of used vehicles continue to pressure the portfolio • Cur