Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q4 2024 Earnings Presentation
22 slides from Hilltop's earnings presentation, Jan 31, 2025
Slide 1: Hilltop Holdings Inc. Q4 2024 Earnings Presentation
Hilltop Holdings Inc. Q4 2024 Earnings Presentation January 31, 2025
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 – Q4 2024
Investor Highlights – Q4 2024 Net Income EPS – Diluted ROAA ROAE $35.5 MM $0.55 $0 0.92% .86% 6.50% 5.76% • PlainsCapital Bank generated $50.6 million in pre-tax income. The quarter included a $5.7 million provision recapture which was somewhat offset by a negative real estate valuation adjustment o
Slide 4: Capital Highlights – Q4 2024
Capital Highlights – Q4 2024 During Q4 2024, Hilltop returned $11.0 million to stockholders through dividends Capital Management and Tangible Book Value Growth $40.00 22.00% 21.22% 21.23% $35.00 19.32% 18.23% $33.71 $32.58 $31.95 $31.49 $30.00 $29.49 $28.37 $28.35 $27.18 $25.00 $20.00 $15.00 $10.00
Slide 5: Q4 Financial Summary
Hilltop Holdings – Q4 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q4 2024 Q3 2024 QoQ% Q4 2023 YoY% Net interest income $105.5 $105.0 0% $111.2 (5%) Noninterest income 195.6 200.4 (2%) 179.0 9% Noninterest expenses 262.8 264.3 (1%) 250.8 5% Efficiency ratio 87.3% 86.
Slide 6: Full Year Financial Summary
Hilltop Holdings – Full Year Financial Summary $ in Millions, except EPS Income Statement and Key Metrics FY 2024 FY 2023 YoY% Net interest income $417.8 $466.8 (11%) Noninterest income 771.0 729.0 6% Noninterest expenses 1,033.6 1,028.3 1% Efficiency ratio 86.9% 86.0% Pre-provision net revenue1 155
Slide 7: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $125.0 4.00% $115.1 3.50% $115.0 $111.4 $110.9 ($3.9) ($3.5) $104.2 ($4.2) 3.00% $105.0 $1.8 $101.1 2.50% ACL / Total Loans HFI $95.0 2.00% $85.0 1.41% 1.27% 1.50% 1.38% 1.39% $75.0 1.29% 1.00% $
Slide 8: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Quarter-over-Quarter Net Interest Margin ($ in millions) Q3 2024 2.84% 2 Loans Held For Inv estment (0.1 7 %) $ 1 1 .5 0 $111.2 Loans Held For Sale (0.04%) $ 1 1 .0 0 $105.0 $105.5 $1 05 0 . $103.6 $103.7 Inv estments 0.05% $1 000 .
Slide 9: Net Interest Income Rate Impacts
Hilltop Holdings – Net Interest Income Rate Impacts Asset Sensitivity Trending 1 Bank Loans HFI – Fixed vs. Variable Rate at 12/31/24 12.0% Fixed Rate 9.0% 48% 42% Variable rate at or below floors 6.0% 6.5% 5.9% Variable rate above floors 10% Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Chart does not include
Slide 10: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q4'23 Q3'24 Q4'24 Av erage Deposits ($B) $1 1 .1 $1 0.5 $1 1 .0 $11.1 $10.9 $11.1 $10.8 Av erage Broker-Dealer Sweep Deposits ($B) $1 .3 $0.8 $0.6 $ 0.2 $ 0.2 $10.4 $ 0.6 Av erage Brokered Deposits ($B) $0
Slide 11: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($ in millions) ($ in millions) Q4 2023 $17 9.0 Mortgage Production Income & Fees 4.4 $200.4 $195.6 $193.3 Securities and Inv estment Adv isory Fees & Commissions 9.7 $179.0 $1 0.7 $1 1 .4 $181.6 $9.3 $1 1 .8
Slide 12: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses Year-over-Year Noninterest Expense ($ in millions) $4 0. 0 900 . % ($ in millions) 87 .7 % 86.5% 87 .3% Q4 2023 $ 250.8 86.4% 86.4% Com pensation and Benefits 1 2.9 $ 3 0 5 0 . 8 5 .0 % Occupancy and Equipm ent 4.2 $3 0. 0 Professional Ser
Slide 13: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) Q4'23 Q3'24 Q4'24 $ 8.1 $ 8.1 $ 8.2 Av erage Loans HFI Balance ($B) $7 .9 $8.0 $7 .9 $ 8.0 $ 8.0 $ 0.2 $ 0.2 $ 0.3 Annualized HTH Loan HFI Yield % 6 .2 7 % 6 .1 9 % 5.9 3 % $ 0.3 $ 0.2 Annualized Bank Loan HFI Y
Slide 14: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans as a % of Bank Loans Non-Performing Assets 1.70% 5.0% $125,000 ($ in thousands) 1.39% 1.45% 1.23% 1.20% 4.0% 3.7 % $100,000 3.5% 3.6% 1.20% 3.4% 3.3% 0.7 % 0.95% 0.91% 0.6% 0.7 % 0.2%$75,000 3.0% 0.95% 0.70% 2.0% $50,000 3.3% 3.1% 3.1% 0.45% 2.9% 2.9
Slide 15: 2025 Outlook
Hilltop Holdings – 2025 Outlook Outlook Loan Growth • Full year average Bank loans to grow 2% - 5% (Full year average HFI loan growth) • Expect to retain $10 – $30 million per month of PrimeLending originated mortgages Deposit Growth • Full year average Bank deposits expected to increase 2% – 5% (Fu
Slide 16: Appendix
Appendix 16
Slide 17: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Tangible common equity is a non-GAAP financial measure. Tangible common equity is defined as our total stockholders’ equity, excluding preferred stock, reduced by goodwill and other intangible assets. This is
Slide 18: PlainsCapital Bank – Q4 2024 Highlights
PlainsCapital Bank – Q4 2024 Highlights Summary Result s Q4 Q4 FY FY Q4 Q4 FY FY ($ in millions) 2023 2024 2023 2024 Key Highlight s 2023 2024 2023 2024 Net Interest Incom e $9 3 .1 $9 4 .9 $3 9 7 .9 $3 7 2 .6 ROAA 1 .1 2 % 1 .2 4 % 1 .1 5% 1 .1 0% Prov ision for (rev ersal of) Full Serv ice Branche
Slide 19: PrimeLending – Q4 2024 Highlights
PrimeLending – Q4 2024 Highlights Summary Result s Q4 Q4 FY FY Q4 Q4 FY FY ($ in millions) 2023 2024 2023 2024 Key Highlight s 2023 2024 2023 2024 Net Interest Incom e (Expense) ($4 .7 ) ($3 .6 ) ($2 0.3 ) ($1 6 .9 ) Origination Volum e ($m m ) $1 ,81 5 $2 ,2 53 $8,2 4 3 $8,6 1 6 Noninterest Incom e
Slide 20: HilltopSecurities – Q4 2024 Highlights
HilltopSecurities – Q4 2024 Highlights Summary Result s Q4 Q4 FY FY Key Highlight s Q4 Q4 FY FY ($ in millions) 2023 2024 2023 2024 ($ in millions) 2023 2024 2023 2024 Net Interest Incom e $1 3 .6 $1 2 .0 $52 .9 $4 8.9 Com pensation/Net Rev enue (%) 57 .3 % 59.5% 58.4 % 6 0.8% Prov ision for (Rev er
Slide 21: 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 December 31, 2024) (Ending Balance at December 31, 2024) Office 12% Retail 25% CRE Owner Occupied 7% Hotel/Motel $1,436 $1,922 43% 57% M
Slide 22: Auto Lending Portfolio
Hilltop Holdings – Auto Lending Portfolio Auto Note Financing Commitments1 Commentary ($ in millions) • Auto Note Finance committed portfolio balance has been in decline since 2021 o The impacts of higher interest rates and declining values of used vehicles continue to put downward pressure on the p