Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q4 2021 Earnings Presentation
20 slides from Hilltop's earnings presentation, Jan 27, 2022
Slide 1: Hilltop Holdings Inc. Earnings Presentation Q4 2021
Hilltop Holdings Inc. Earnings Presentation Q4 2021 January 28, 2022
Slide 2: Preface: Additional Information and Forward-Looking Statements
Preface 2 Additional Information Corporate Headquarters 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214 - 855 - 2177 www.hilltop - holdings.com Please Contact: Erik Yohe Phone: 214 - 525 - 4634 Email: eyohe@hilltop - holdings.com FORWARD - LOOKING STATEMENTS This presentation and statements made by r
Slide 3: Q4 2021 Investor Highlights
Q4 2021 3 Investor Highlights – Notes: (1) Average Bank Loans HFI reflect consolidated loans held for investment excluding margin loans from the broker - dealer business. (2) Mortgage Banking Association Forecast 1/21/2022 • PlainsCapital Bank generated $68.4 million in pre - tax income during Q4 20
Slide 4: Investor Highlights – Capital Highlights
$19.65 $20.16 $21.85 $23.52 $24.77 $25.93 $26.93 $27.77 $28.37 16.70% 15.96% 18.46% 19.85% 18.97% 19.63% 20.22% 21.28% 21.22% $0.08 $0.09 $0.09 $0.09 $0.09 $0.12 $0.12 $0.12 $0.12 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00% $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $
Slide 5: Hilltop Holdings – Q4 Financial Summary
5 Hilltop Holdings – Q4 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q4 2021 Q3 2021 QoQ% Q4 2020 YoY% Net interest income $104.3 $105.1 (1%) $107.4 (3%) Noninterest income 284.8 367.9 (23%) 447.9 (36%) Noninterest expenses 322.2 355.2 (9%) 402.3 (20%) Efficiency rati
Slide 6: Hilltop Holdings – FY Financial Summary
6 Hilltop Holdings – FY Financial Summary Notes: (1) Pre - provision net revenue is calculated as the sum of net interest income and noninterest income less noninterest expense (excep t provision for credit losses). $ in Millions, except EPS FY 2021 FY 2021 FY 2020 Income Statement and Key Metrics A
Slide 7: Hilltop Holdings – Allowance for Credit Losses
$0.4 ( $5.5 ) ($11.3) ($1.8) 1.94% 1.85% 1.51% 1.45% 1.16% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 12/31/2020 3/31/2021 6/30/2021 9/30/2021 Net Recovery Specific Reserves Collective - Economic Conditions Collective - Portfolio Ch
Slide 8: Hilltop Holdings – Net Interest Income & Margin
2.71% 2.69% 2.62% 2.53% 2.44% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 8 Hilltop Holdings – Net Interest Income & Margin Net Interest Margin 2 Net Interest Margin Rollforward ($ in millions) Net Interest Income $107.4 $105.7 $107.9 $105.1 $104.3 $80.0 $85.0 $90.0 $
Slide 9: Hilltop Holdings – Net Interest Income Rate Impacts
9 Hilltop Holdings – Net Interest Income Rate Impacts - 8% - 4% 5% 11% -10% -5% 0% 5% 10% 15% -100 -50 +50 +100 Interest Rate Change (Basis Points) Estimated Impact on 12 - month Net Interest Income 1 Note: (1) Impact assumes instantaneous change to interest rates. Assumes interest rate floor at 1 b
Slide 10: Hilltop Holdings – Noninterest Income
$297.5 $310.4 $242.0 $242.3 $192.3 $141.2 $98.6 $83.5 $116.1 $82.9 $12.1 $11.3 $10.2 $11.7 $11.8 ($2.9) ($2.8) $4.3 ($2.2) ($2.2) $447.9 $417.6 $339.9 $367.9 $284.8 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 PrimeLending HilltopSecurities PlainsCapital Bank Corporate / Other 10 Hilltop Holdings – Nonin
Slide 11: Hilltop Holdings – Noninterest Expenses
$225.3 $213.8 $211.9 $213.5 $213.0 $177.0 $152.9 $131.5 $141.7 $109.1 $402.3 $366.7 $343.4 $355.2 $322.2 72.5% 70.1% 76.7% 75.1% 82.8% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Variable Compensation Expenses Other Than Variable Compensation Efficiency Ratio 11 Hilltop Holdings – Noninterest Expenses Y
Slide 12: Hilltop Holdings – Loans
39% 24% 11% 17% 0% 9% Commercial real estate Commercial and industrial Construction and land development 1-4 family residential Consumer Margin loans at Broker-Dealer $6.7 $6.5 $6.3 $6.1 $6.2 $0.4 $0.5 $0.6 $0.6 $0.7 $0.2 $0.3 $0.5 $0.7 $0.9 $0.5 $0.5 $0.3 $0.1 $0.1 $7.7 $7.8 $7.6 $7.6 $7.9 $- $1.0
Slide 13: Hilltop Holdings – Asset Quality
1.9x 1.8x 1.7x 1.8x 1.8x 2.05% 1.98% 1.64% 1.58% 1.28% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 1.0x 1.2x 1.4x 1.6x 1.8x 2.0x 2.2x 2.4x 2.6x 2.8x 3.0x Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 ACL/Bank NPLs ACL/Bank Loans HFI 2,688 (564) 510 (62) (405) 0.15% - 0.03% 0.03% 0.00% - 0.01% -1.00% -0.50% 0.00%
Slide 14: Hilltop Holdings – Deposits
41% 43% 12% 4% Demand Money Market Time Other $6.2 $6.4 $6.5 $6.7 $7.2 $3.6 $4.0 $4.2 $4.4 $4.6 $0.7 $0.7 $0.7 $0.8 $0.8 $0.7 $0.6 $0.3 $0.2 $0.2 $11.2 $11.7 $11.7 $12.1 $12.8 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Interest-Bearing Deposits Noninterest-Bearing Deposits Broker Dealer Sweep Deposits
Slide 15: Hilltop Holdings – 2022 Outlook Commentary
15 Hilltop Holdings – 2022 Outlook Commentary Loan Growth (Full year averag e HFI loan growth) • 1 – 4 family loan retention $30 – $75 million per month, through first half of 2022 • FY average commercial loan growth: 2 – 5%, excluding PPP loans Deposit Growth (Full year average deposit growth) • FY
Slide 16: Appendix
Appendix 16
Slide 17: PlainsCapital Bank – Highlights Q4 2021
53.0% 48.4% 49.7% 48.8% 54.2% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 3.37% 3.30% 3.19% 2.99% 2.81% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 PlainsCapital Bank – Highlights Q4 2021 17 Efficiency Ratio 1 Notes: (1) Efficiency Ratio is calculated as noninterest expense divided by the sum of net interes
Slide 18: PrimeLending – Highlights
18 PrimeLending – Highlights Gain on Sale Overview Notes: (1) Gain on Sale calculated as net gains from sale of loans divided by sales volume. Reported Gain on Sale reflects impact of lo ans retained by PlainsCapital Bank 1 Mortgage Origination Volume $6.8 $6.2 $5.9 $5.6 $5.0 Q4 2020 Q1 2021 Q2 2021
Slide 19: HilltopSecurities – Highlights Q4 2021
HilltopSecurities – Highlights Q4 2021 19 Notes: The sum of the period amounts may not equal the total amounts due to rounding. Presented net revenue by business line may dif fer slightly from 10 - K due to grouping of certain business lines into ‘Other’. Net Revenues by Business Line Summary Result
Slide 20: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
20 Non - GAAP to GAAP Reconciliation and Management’s Explanation of Non - GAAP Financial Measures • Hilltop Consolidated 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