Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q2 2021 Earnings Presentation
20 slides from Hilltop's earnings presentation, Jul 22, 2021
Slide 1: Hilltop Holdings Inc. Earnings Presentation Q2 2021
Hilltop Holdings Inc. Earnings Presentation Q2 2021 July 23, 2021
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 representatives
Slide 3: Q2 2021 Investor Highlights
Q2 2021 3 Investor Highlights – Notes: (1) Average Bank Loans HFI reflect consolidated loans held for investment excluding margin loans from the broker-dealer business. • PlainsCapital generated $87.0 million in pre-tax income during Q2 2021, an increase of $104.4 million from Q2 2020 • Average bank
Slide 4: Capital Highlights – Q2 2021
Capital Highlights – Q2 2021 4 $18.34 $19.14 $19.65 $20.16 $21.85 $23.52 $24.77 $25.93 $26.93 16.32% 16.15% 16.70% 15.96% 18.46% 19.85% 18.97% 19.63% 20.22% $0.08 $0.08 $0.08 $0.09 $0.09 $0.09 $0.09 $0.12 $0.12 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% $‐ $5.00 $10.00 $15.00 $20.0
Slide 5: Hilltop Holdings – Financial Summary
5 Hilltop Holdings – Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q2 2021 Q1 2021 QoQ% Q2 2020 YoY% Net interest income $107.9 $105.7 2% $104.6 3% Noninterest income 339.9 417.6 (19%) 468.1 (27%) Noninterest expenses 343.4 366.7 (6%) 370.2 (7%) Efficiency ratio 76.7%
Slide 6: Hilltop Holdings – Allowance for Credit Losses
1.00% 1.45% 1.99% 1.95% 1.94% 1.85% 1.51% ($0.5) ($1.0) ($10.8) ($16.9) 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 $180.0 1/1/2020 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Net Charge- Offs Specific Reserves Collective - Ec
Slide 7: Hilltop Holdings – Net Interest Income & Margin
2.80% 2.56% 2.71% 2.69% 2.62% 1. 00% 1. 50% 2. 00% 2. 50% 3. 00% 3. 50% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 7 Hilltop Holdings – Net Interest Income & Margin Net Interest Margin 2 Net Interest Margin Rollforward ($ in millions) Net Interest Income $104.6 $101.9 $107.4 $105.7 $107.9 $80. 0 $85. 0
Slide 8: Hilltop Holdings – Noninterest Income
$340.5 $355.5 $297.5 $310.4 $242.0 $123.0 $141.0 $141.2 $98.6 $83.5 $10.7 $9.8 $12.1 $11.3 $10.2 $(6.0) $(3.6) $(2.9) $(2.8) $4.3 $468.1 $502.7 $447.9 $417.6 $339.9 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 PrimeLending HilltopSecurities PlainsCapital Bank Corporate / Other 8 Hilltop Holdings – Nonint
Slide 9: Hilltop Holdings – Noninterest Expenses
$204.0 $222.3 $225.3 $213.8 $211.9 $166.2 $177.0 $177.0 $152.9 $131.5 $370.2 $399.3 $402.3 $366.7 $343.4 64.6% 66.0% 72.5% 70.1% 76.7% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Variable Compensation Expenses Other Than Variable Compensation Efficiency Ratio 9 Hilltop Holdings – Noninterest Expenses Ye
Slide 10: Hilltop Holdings – Loans
40% 29% 10% 12% 0%8% Commercial real estate Commercial and industrial Construction and land development 1-4 family residential Consumer Margin loans at Broker-Dealer $6.5 $6.6 $6.7 $6.5 $6.3 $0.7 $0.7 $0.5 $0.5 $0.3 $0.4 $0.5 $0.4 $0.5 $0.6 $0.2 $0.2 $0.2 $0.3 $0.5 $7.8 $7.9 $7.7 $7.8 $7.6 $‐ $1.0 $
Slide 11: Hilltop Holdings – Asset Quality
2.3x 1.9x 1.9x 1.8x 1.7x 2.10% 2.08% 2.05% 1.98% 1.64% 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 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 ACL/Bank NPLs ACL/Bank Loans HFI 16,382 567 2,688 (564) 510 0.92% 0.03% 0.15% -0.03% 0.03% -1.00% -0.50% 0.00% 0.5
Slide 12: Hilltop Holdings – Deposits
35% 44% 17% 4% Demand Money Market Time Other $5.5 $5.8 $6.2 $6.4 $6.5 $3.5 $3.6 $3.6 $4.0 $4.2 $1.3 $0.9 $0.7 $0.7 $0.7 $1.4 $1.0 $0.7 $0.6 $0.3 $11.6 $11.3 $11.2 $11.7 $11.7 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Interest-Bearing Deposits Non Interest-Bearing Deposits Broker Dealer Sweep Deposits
Slide 13: Hilltop Holdings – 2021 Commentary
13 Hilltop Holdings – 2021 Commentary Comments Loan Growth (Full year average HFI loan growth) • 1 – 4 family loan retention $50 – $75 million per month • FY average total loan growth: 0 – 3%, excluding any additional PPP loans Deposit Growth (Full year average deposit growth) • FY average total dep
Slide 14: Questions?
Questions? nop MP
Slide 15: Appendix
Appendix nop MP
Slide 16: PlainsCapital Bank – Highlights
54.1% 52.7% 53.0% 48.4% 49.7% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 3.11% 3.03% 3.37% 3.30% 3.19% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 PlainsCapital Bank – Highlights Q2 2021 Key Highlights Q2 2020 Q2 2021 ROAA (0.42%) 1.91% Full Serv ice Branches 62 59 Net Interest Margin 3.11% 3.19% Assets ($
Slide 17: COVID – Modified Loan Portfolio Update
17 COVID 19 – Modified Loan Portfolio Update • The outstanding balance of modifications related to COVID-19 impacted loans has declined 92% since June 30, 2020 • As of June 30, 2021, $10.3 million, or 14% of total deferrals, were principal and interest deferments and the remaining deferrals were pri
Slide 18: PrimeLending – Highlights
Key Highlights Q2 2020 Q2 2021 Origination Volume ($mm) $6,099 $5,900 % Purchase 52.5% 68.1 % Sales Volume ($mm) $5,935 $5,524 MSR Asset ($mm)(period end) $81 $124 18 PrimeLending – Highlights Gain on Sale Overview Notes: (1) Gain on Sale calculated as net gains from sale of loans divided by sales v
Slide 19: HilltopSecurities – Highlights
HilltopSecurities – Highlights Q2 2021 Summary Results ($ in millions) Q2 2020 Q2 2021 Net Interest Income $9.7 $10.7 Provision for Credit Losses 0.4 0.1 Noninterest Income 123.0 83.5 Noninterest Expense 104.4 87.2 Income Before Taxes $27.8 $6.9 19 Notes: The sum of the period amounts may not equal
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 other