Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q1 2021 Earnings Presentation
18 slides from Hilltop's earnings presentation, Apr 22, 2021
Slide 1: Hilltop Holdings Inc. Earnings Presentation Q1 2021
Hilltop Holdings Inc. Earnings Presentation Q1 2021 April 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: Investor Highlights
3 Investor Highlights – ROAA ..86% EPS – Diluted $0.30 ROAE 5.76% Notes: (1) Average Bank Loans HFI reflect consolidated loans held for investment excluding margin loans from the broker-dealer business. (2) For a reconciliation of tangible book value per share to book value per share see management’
Slide 4: Business Results – Pre-Tax Income vs. Prior Year
Q 1 20 21 $64.6 $93.0 $17.7 $0.0 ($13.6) $161.7 $11.5 $39.8 $18.2 $4.0 ($3.8) $69.6 Banking Mortgage Broker-Dealer Insurance Corporate / Other Hilltop Holdings Hilltop Holdings Investor Deck Investor Highlights Slide 6/30/2020 Current Period X Pre-Tax Income Q1 2019 Q2 2019 Q3 2019 Q4 2019 YR 2019 N
Slide 5: Income Statement and Key Metrics
$ in Millions, except EPS Income Statement Q1 2020 Q4 2020 Q1 2021 Net interest income $110.3 $107.4 $105.7 Noninterest income 271.7 447.9 417.6 Noninterest expense 281.9 402.3 366.7 PPNR1 $100.1 $153.0 $156.6 Provision for (reversal of) credit losses 34.5 (3.5) (5.1) Income from continuing operatio
Slide 6: Hilltop Holdings – Net Interest Income & Margin
Q4 2020 2.7 1% PPP Loans 0.05 Stock Loan 0.04 Core Deposits 0.04 Loans HFI (ex PPP) (0.07 ) Cash Increases (0.05) Loans HFS / Other (0.03) Q1 2021 2.69% $13.1 $15.0 $15.8 $15.7 $15.9 3.41% 2.80% 2.56% 2.71% 2.69% -10.00% -8.00% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% $5.0 $7.0 $9.0 $11.0 $13.0
Slide 7: Hilltop Holdings – Noninterest Income
$271.7 $468.1 $502.7 $447.9 $417.6 71.1% 81.7% 83.1% 80.7% 79.8% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Noninterest Income Fee Income Ratio 7 Hilltop Holdings – Noninterest Income • Noninterest income of $417.6 million increased by $145.9 million, or 54%, compared to Q1 2020 • $131.2 million increa
Slide 8: Hilltop Holdings – Noninterest Expenses
$191.6 $204.0 $222.3 $225.3 $213.8 $90.3 $166.2 $177.0 $177.0 $152.9 $281.9 $370.2 $399.3 $402.3 $366.7 7 3.8% 64.6% 66.0% 7 2.5% 7 0.1% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Variable Compensation Expenses Other Than Variable Compensation Efficiency Ratio 8 Hilltop Holdings – Noninterest Expenses
Slide 9: Hilltop Holdings – Loans
Q1 2020 Q2 2020 Q4 2020 5.23% 4.50% 4.32% 4.62% 4.62% $6.8 $6.8 $6.8 $6.8 $6.8 $0.5 $0.4 $0.5 $0.4 $0.5 $0.7 $0.7 $0.5 $0.5 $7.3 $7.3 $7.8 $7.7 $7.9 $7.7 $7.7 $7.7 $7.8 $7.6 9 Notes: The sum of the period amounts may not equal the total amounts due to rounding. (1) Annualized Gross Loan Yield contai
Slide 10: Hilltop Holdings – Asset Quality
10 Hilltop Holdings – Asset Quality Criticized Loans Non-Performing Assets Note: The sum of the period amounts may not equal the total amounts due to rounding. Figures represent bank asset quality metrics only (excludes Loans HFS and Broker Dealer Margin Loans). (1) Total NPAs included non-accrual l
Slide 11: Hilltop Holdings – Deposits
$5.6 $6.9 $6.8 $6.9 $7.0 $2.9 $3.5 $3.6 $3.6 $4.0 $1.5 $1.3 $0.9 $0.7 $0.7 $9.9 $9.0 $11.6 $11.2 $11.3 $11.4 $11.2 $11.2 $11.7 $11.4 Q1 2020 Q2 2020 Q4 2020 Q1 2021 Q3 2020 0.97% 0.61% 0.54% 0.49% 0.41% 11 Vs. Prior Quarter: (Total Deposits) Deposit Mix and Cost 4.4% 10.1% ($ in billions, ending and
Slide 12: PlainsCapital Bank – Highlights
Key Highlights Q1 2020 Q1 2021 ROAA 0.33% 1 .48% Efficiency Ratio1 55.5% 48.4% Net Interest Margin 3.81 % 3.30% Assets ($bn) $1 1 .6 $1 4.0 Summary Results ($ in millions) Q1 2020 Q1 2021 Net Interest Income 93.9 1 03.9 Prov ision for (rev ersal of) Credit Losses 34.3 (5.2) Noninterest Income 8.8 1
Slide 13: PrimeLending – Highlights
Key Highlights Q1 2020 Q1 2021 Origination Volume ($mm) $3,623 $6,1 84 % Purchase 65% 47 % Sales Volume ($mm) $3,486 $6,351 MSR Asset ($mm) $30 $1 42 $3.6 $6.1 $6.5 $6.8 $6.2 325 368 440 448 388 -300 -200 -100 0 100 200 300 400 500 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 Q1 2020 Q2 2020 Q3 2020 Q4 2
Slide 14: HilltopSecurities – Highlights
HilltopSecurities – Highlights Q 1 20 21 Summary Results ($ in millions) Q1 2020 Q1 2021 Net Interest Income 1 3.2 1 0.5 Prov ision for Credit Losses 0.3 0.1 Noninterest Income 86.2 98.6 Noninterest Expense 80.9 91 .4 Income Before Taxes $18.2 $17 .7 14 • HilltopSecurities generated $109.1 million o
Slide 15: Hilltop Holdings – 2021 Commentary
15 Hilltop Holdings – 2021 Commentary Comments Loan Growth (Full Year Average HFI Loan Growth) • 1 – 4 family loan retention $30 – $50 million per month • Commercial loan growth expected to improve in the second half of 2021, balances stable to down in the first half of the year • Expecting 0 – 3% o
Slide 16: Q&A
Q&A top RP
Slide 17: Appendix
Appendix top RP
Slide 18: Reconciliation of Tangible Common Equity and Tangible Book Value Per Share
Reconciliation of T angible Com m on Equity and T angible Book Value Per Share ($ '000, except per share amounts) Q1 2020 Q4 2020 Q1 2021 Total Stockholders' Equity 2,136,7 11 2,323,939 2,419,185 Less: Preferred Stock 0 0 0 Common Stockholders' Equity 2,136,7 11 2,323,939 2,419,185 Less: Goodwill 26