Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q4 2022 Earnings Presentation
20 slides from Hilltop's earnings presentation, Jan 27, 2023
Slide 1: Hilltop Holdings Inc. Q4 2022 Earnings Presentation
Hilltop Holdings Inc. Q4 2022 Earnings Presentation January 27, 2023
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-holdings.com Email: eyohe@hilltop-holdings.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives o
Slide 3: Investor Highlights – Q4 2022
Investor Highlights – Q4 2022 Net Income EPS – Diluted ROAA ROAE $25.6 MM $0.39 $0.30 0.63% .86% 4.99% 5.76% • PlainsCapital Bank generated $58.0 million in pre-tax income during Q4 2022 relative to $68.4 million in Q4 2021. The decline was driven by a $22.4 million increase in provision expense to
Slide 4: Capital Highlights – Q4 2022
Capital Highlights – Q4 2022 • During 2022, HTH returned $485.3 million of capital to shareholders • $43.0 million in dividends and $442.3 million in share repurchases (~19% of 12/31/21 shares outstanding) • There were no shares repurchased in Q4 2022 • The HTH Board of Directors has authorized a ne
Slide 5: Q4 Financial Summary
Hilltop Holdings – Q4 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q4 2022 Q3 2022 QoQ% Q4 2021 YoY% Net interest income $123.4 $123.5 (0%) $104.3 18% Noninterest income 169.8 207.0 (18%) 284.8 (40%) Noninterest expenses 253.4 288.7 (12%) 322.2 (21%) Efficiency ratio
Slide 6: Full Year Financial Summary
Hilltop Holdings – Full Year Financial Summary $ in Millions, except EPS 2022 2021 Income Statement and Key Metrics Actuals Actuals YoY% Net interest income $459.0 $423.0 9% Noninterest income 832.5 1,410.3 (41%) Noninterest expenses 1,127.0 1,387.4 (19%) Efficiency ratio 87.3% 75.7% 1 Pre-provision
Slide 7: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $120.0 4.00% 3.50% $100.0 $95.3 $5.0 $95.4 $91.4 $91.2 $91.8 ($0.0) ($0.5) 3.00% ($0.9) $80.0 2.50% ACL / Total Loans HFI $60.0 2.00% 1.50% $40.0 1.16% 1.17% 1.20% 1.16% 1.18% 1.00% $20.0 0.50% $
Slide 8: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Net Interest Margin Rollforward ($ in millions) Q3 2022 3.19% $130.0 2 Loans HFI Y ield Increase 0.36% $125 .0 $123.5 $123.4 Y ield on Cash and Due Balances 0.1 8% Securities Portfolio Y ield Increase 0.1 1 % $120.0 $115 .0 $112.1 C
Slide 9: Net Interest Income Rate Impacts
Hilltop Holdings – Net Interest Income Rate Impacts Estimated Impact on 12-month Net Interest Income1 Bank Loans HFI – Fixed vs. Variable Rate at 12/31/22 10% 5% Fixed Rate 6% 3% 40% 50% 0% Variable rate at or below (3%) floors (6%) -5% Variable rate above floor 10% -10% -100 -50 +50 +100 Interest R
Slide 10: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($MM) ($ in millions) Q4 2021 $284.8 $340.0 Mortgage Production Income & Fees (120.9) Securities and Inv estment Adv isory Fees & Commissions (11.8) $290.0 $284.8 Other Income 17 .7 $1 1 .8 Q4 2022 $169.8 $239
Slide 11: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses Noninterest Expenses and Efficiency Ratio 1 Year-over-Year Noninterest Expense ($MM) ($ in millions) Q4 2021 $ 322.2 Com pensation and Benefits (61 .8) Occupancy and Equipm ent (2 .7 ) 90.5% 87.4% Professional Serv ices 1 .7 85.0% 86.4% 82.8% Other Expenses (6
Slide 12: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) Q4'21 Q3'22 Q4'22 $ 8.1 Av erage Loans HFI Balance ($B) $7 .7 $7 .9 $7 .8 $ 7 .9 $ 7 .9 $ 7 .9 $ 7 .8 $ 0.2 $ 0.3 $ 0.2 Annualized Loan HFI Yield % 4 .2 5% 4 .7 5% 5.4 2 % $ 0.4 $ 0.3 $ 1.2 $ 1.3 $ 0.9 $ 1.1 $ 1
Slide 13: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans Non-Performing Assets 5.0% $75,000 1.00% 0.7 6% 4.0% 0.75% 3.3% 0.64% % of Bank Loans $50,000 3.0% 2.8% 2.6% 2.7 % 0.50% 0.48% 2.5% 0.1% 0.43% 0.50% 2.0% 3.3% $25,000 2.8% 2.6% 2.6% 0.25% 2.5% 1.0% $53,982 $46,449 $37,197 $36,260 $32,645 0.0% $0 0.00
Slide 14: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q4'21 Q3'22 Q4'22 $12.8 $12.7 Av erage Deposits ($B) $1 2 .4 $1 1 .7 $1 1 .4 $0.2 $0.2 Cost of Interest-Bearing Deposits 1 0.2 2 % 0.7 0% 1 .57 % $ 0.8 $11.9 $ 0.8 $0.1 $11.4 $11.3 Cost of Total Deposits 1
Slide 15: 2023 Outlook
Hilltop Holdings – 2023 Outlook Outlook • Full year average bank loan growth 1% – 4% Loan Growth • Retention of 1 – 4 family loans to be evaluated quarterly, first quarter expecting to retain $75 (Full year average HFI loan growth) – $150 million Deposit Growth • Full year average total deposits dec
Slide 16: Appendix
Appendix 16
Slide 17: PlainsCapital Bank – Q4 2022 Highlights
PlainsCapital Bank – Q4 2022 Highlights Summary Results ($ in millions) Q4 2021 Q4 2022 FY 2021 FY 2022 Key Highlights Q4 2021 Q4 2022 FY 2021 FY 2022 Net Interest Incom e $97 .2 $1 09.3 $406.5 $41 3 .6 ROAA 1 .44% 1 .3 1 % 1 .55% 1 .1 9% Prov ision for (rev ersal of) Full Serv ice Branches (1 8.5)
Slide 18: PrimeLending – Q4 2022 Highlights
PrimeLending – Q4 2022 Highlights Summary Results ($ in millions) Q4 2021 Q4 2022 FY 2021 FY 2022 Key Highlights Q4 2021 Q4 2022 FY 2021 FY 2022 Net Interest Incom e (Expense) ($3 .8) ($4.5) ($2 0.4) ($1 0.5) Origination Volum e ($m m ) $4,990 $2 ,043 $2 2 ,668 $1 2 ,660 Noninterest Incom e 1 92 .3
Slide 19: HilltopSecurities – Q4 2022 Highlights
HilltopSecurities – Q4 2022 Highlights Summary Results ($ in millions) Q4 2021 Q4 2022 FY 2021 FY 2022 Key Highlights Q4 2021 Q4 2022 FY 2021 FY 2022 Net Interest Incom e $1 1 .7 $1 4.1 $43 .3 $51 .6 Com pensation/Net Rev enue (%) 69.1 % 56.6% 65.1 % 63 .8% Prov ision for (Rev ersal of) Credit (0.1
Slide 20: 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