Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q1 2018 Earnings Presentation
17 slides from Hilltop's earnings presentation, Apr 26, 2018
Slide 1: Forward-Looking Statements
Preface 2323 Victory Ave, Suite 1400 Dallas, TX 75219 Phone: 214-855-2177 www.hilltop-holdings.com FORWARD-LOOKING STATEMENTS Please Contact: Isabell Novakov Phone: 214-252-4029 Email: inovakov@hilltop-holdings.com This presentation and statements made by representatives of Hilltop Holdings Inc. (“H
Slide 2: Investor Highlights – Q1 2018
Investor Highlights – Q1 2018 • Growth in Bank non-covered HFI loans1 of 7% year over year supporting 12% growth in net interest income for Hilltop Total deposit growth equated to 9% versus prior year Retail Brokerage, Clearing and Securities Lending benefited from short term rate increases Noninter
Slide 3: Business Results – Q1 2018
Business Results – Q1 2018 • Banking pre-tax income up $7 million, or 22%, relative to Q1 2017 largely driven by bank non-covered HFI loan growth of 7% and strong NIM of 4.15% (taxable equivalent NIM of 4.16%). Bank efficiency ratio of 61.3% versus 64.4% in Q1 2017 Mortgage pre-tax loss of $3 millio
Slide 4: Financial Summary
Hilltop Holdings – Financial Summary Noninterest income 271.4 290.5 235.1 PPNR1 $43.0 $70.5 $30.4 Pre-tax income $41.3 $65.0 $32.2 Revenue 11.5 12.0 9.7 Pre-tax income impact $4.9 $6.4 $3.9 ROAA 0.88% 0.41% 0.77% Efficiency Ratio3 88.2% 82.3% 91.0% Tier 1 Leverage Ratio 13.98% 12.94% 13.26% Notes: (
Slide 5: Net Interest Income, Average Earning Assets and NIM
Hilltop Holdings – Net Interest Income & Margin ($ in billions) • Net interest income of $103 million increased $11 million, or 12%, from first quarter 2017 • Loan accretion of $9.9 million declined ($2.2) million, or 18%, year over year Gross loan yields increased 19 bps to 5.27% in Q1 2018 from 5.
Slide 6: Noninterest Income
Hilltop Holdings – Noninterest Income ($ in millions) Mortgage Production Income & Fees Securities Related Fees & Commissions Net Insurance Premiums Earned Other Income (17.3) $344.7 (4.3) (1.8) (12.9) • Noninterest income of $235 million declined by $36 million compared to the first quarter 2017 pr
Slide 7: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses ($ in millions) $366.3 Compensation and Benefits Occupancy and Equipment Professional Services Insurance Loss and LAE Other Expenses (4.3) 0.5 (0.3) (6.2) (2.0) • Noninterest expense of $308 million declined $12 million from the first quarter 2017, driven by i
Slide 8: Loan Mix and Yield
Hilltop Holdings – Loans 5.81% ($ in billions) 5.28% 5.27% Annualized Gross Loan Yield1: 5.08% 5.01% $6.5 $6.4 $6.3 $6.3 $6.0 Loan Growth Q1 2017 Non-Covered Loans Q2 2017 Q3 2017 Q4 2017 Q1 2018 Annualized Gross Loan Yield Covered Loans B/D Margin Loans Vs. Prior Quarter: (Non-Covered Loans) Notes:
Slide 9: Deposit Mix and Cost
Hilltop Holdings – Deposits ($ in billions) 0.44% 0.39% 0.36% 0.30% 0.27% Cost of Deposits: $8.0 $8.0 $7.7 $7.6 $7.3 Q1 2017 Q2 2017 Q3 2017 Q4 2017 B/D Sweep Deposits Q1 2018 Cost of Deposits (%) Noninterest bearing Interest bearing Vs. Prior Quarter: (Total Deposits) Notes: Noninterest-bearing dep
Slide 10: PlainsCapital Bank Highlights
PlainsCapital Bank – Q1 2018 Highlights Net Interest Income Provision (recover) for Loan Losses Noninterest Income Noninterest Expense 82.1 1.8 12.4 60.8 86.6 (1.5) 10.2 59.4 ROAA Efficiency Ratio1 Net Interest Margin TE - Net Interest Margin – Pre-PAA Average Assets ($bn) 0.94% 64.4% 4.21% 3.56% $8
Slide 11: PrimeLending Highlights
PrimeLending – Q1 2018 Highlights Origination Volume ($mm) % Purchase Sales Volume ($mm) Servicing Assets ($mm) $2,824 80% $3,275 $46 $2,960 80% $3,185 $64 Net Interest Income (Expense) Noninterest Income Noninterest Expense (1.9) 143.6 131.8 0.9 127.1 130.7 • Origination volume of $3.0 billion in Q
Slide 12: Securities Highlights
HilltopSecurities – Q1 2018 Highlights Net Interest Income Provision (recovery) for Loan Losses 8.5 (0.1) 12.6 (0.3) Compensation/Net Revenue (%) FDIC Insured Balances at PCB 62.9% $1,101 64.4% $1,302 Noninterest Income Noninterest Expense 82.6 81.7 68.5 77.8 Other FDIC Insured Balances Public Finan
Slide 13: National Lloyds Corporation Highlights
National Lloyds Corporation – Q1 2018 Highlights Net Interest Income Noninterest Income Noninterest Expense 0.5 38.3 37.0 0.8 35.0 31.0 Direct Premiums Written Net Premiums Earned 35.8 36.1 33.1 34.3 • Decline in net premiums earned continues as a result of increasingly competitive markets in Texas
Slide 14: National Lloyds Corporation — Q1 2018 Highlights
National Lloyds Corporation — Q1 2018 Highlights Key Highlights Qu2017 (Sin millions) Net Interest Income 0s 08 Direct Premiums Written 358 33. Noninterest Income 383 35.0 Net Premiums Earned 36a 343 Noninterest Expense 370 g10 Tncome Before Taxes a8 548 + Decline in net premiums earned continues as
Slide 15: 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 Hilltop presents measures in this presentation that are not measures of financial performance recognized by generally accepted accounting principles in the United States (“GAAP”) including taxable equivalent
Slide 16: Non-GAAP to GAAP Reconciliation (Continued)
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures (Continued) Tangible Common Equity (“TCE”), is a non-GAAP financial measure. Tangible common equity is defined as our total stockholders’ equity, excluding preferred stock, reduced by goodwill and other intan
Slide 17: Non-GAAP to GAAP Reconciliation (Continued)
Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures (Continued) Tangible Common Equity (“TCE”), is a non-GAAP financial measure, Tangible common equity is defined as our total stockholder equity, excluding preferred stock, reduced by goodwill and other intangi