Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q4 2013 Earnings Presentation
19 slides from Hilltop's earnings presentation, Mar 4, 2014
Slide 1: Hilltop Holdings Inc. Q4 2013 Earnings Presentation
Hilltop Holdings Inc. Q4 2013 Earnings Presentation Investor Presentation | March 4, 2014
Slide 2: Preface
Preface 2 200 Crescent Court, Suite 1330 Dallas, TX 75201 Phone: (214) 855-2177 Fax: (817) 887-1687 www.hilltop-holdings.com Anyone desiring additional information may contact: Isabell Novakov Phone: (214) 252-4029 Email: inovakov@plainscapital.com FORWARD-LOOKING STATEMENTS This presentation and st
Slide 3: Hilltop Holdings – Q4 2013 Highlights
3 Hilltop Holdings – Q4 2013 Highlights For the fourth quarter of 2013, GAAP income to common stockholders for Hilltop Holdings (“Hilltop”) was $29.5 million, or $0.34 diluted earnings per share Income to common stockholders for Q3 2013 was revised up to $38.2 million, or $0.43 diluted earnings per
Slide 4: Hilltop Holdings – 2013 Financial Summary
4 Hilltop Holdings – 2013 Financial Summary Financial Highlights Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Income to Common ($000) 32,370 20,943 38,174 29,528 121,015 EPS - Diluted ($) 0.39 0.24 0.43 0.34 1.40 Book Value Per Share ($) 12.74 12.59 13.00 13.27 13.27 NIM 4.35% 4.33% 4.46% 4.52% 4.47% Ass
Slide 5: First National Bank – Transaction Update
First National Bank – Transaction Update 5 Bargain Purchase Gain at Closing ($000) Q3 2013 Q4 2013 Interest income 4,784 25,449 Interest expense 359 957 Net interest income 4,425 24,492 Bargain purchase gain 12,585 - Other noninterest income 2,189 10,532 Noninterest expense 2,723 20,868 Provision fo
Slide 6: Hilltop Holdings – Net Interest Income & Margin
6 Hilltop Holdings – Net Interest Income & Margin NIM expanded by 6 bps to 4.52% in Q4 2013, a result of higher loan yields as well as lower cost of interest bearing deposits Yield on earning assets of 5.05% driven by loan yield of 6.41% Cost of deposits continued its decline to 27 bps Notes payable
Slide 7: Hilltop Holdings – Noninterest Income
7 Hilltop Holdings – Noninterest Income Noninterest income was $182.5 million in Q4 2013, down 15.2% from Q3 2013 Revenue from the mortgage segment declined $29.3 million from Q3 2013 to $98.1 million in Q4 2013, representing 54% of total non-interest income Net premiums earned increased to $41.5 mi
Slide 8: Hilltop Holdings – Noninterest Expense
8 Hilltop Holdings – Noninterest Expense Noninterest expense was $219.8 million in Q4 2013, up 1.5% from Q3 2013 Compensation declined $6.8 million from Q3 2013, or 5.7%, to $112.4 million in Q4 2013 due largely to lower variable compensation, offset by a full quarter of FNB compensation expense Los
Slide 9: Hilltop Holdings – Balance Sheet
Hilltop Holdings – Balance Sheet Balance sheet shrinkage, as cash, fed funds and investment securities decreased $330.9 million and interest bearing deposits decreased $231.1 million in Q4 2013 Reduction of non-core funding and excess liquidity in Q4 drove balance sheet reduction Gross Non-Covered L
Slide 10: PlainsCapital Corporation – Update
10 PlainsCapital Corporation – Update FNB OPERATIONAL UPDATE Conversion of FNB to PlainsCapital platform completed in February 2014 Since transaction, staffing levels at legacy FNB franchise are down approximately 9% through attrition Hired new leadership with local market depth in Rio Grande Valley
Slide 11: PlainsCapital Corporation – Q4 2013 Highlights
11 PlainsCapital Corporation – Q4 2013 Highlights Banking Highlights ($000) Q3 2013 Q4 2013 Pre-Tax Income 52,402 46,119 Net Interest Income 70,716 86,023 NIM (%) 5.09 4.99 Assets 8,143,611 7,980,618 Tier 1 Leverage Ratio (%) 11.05 9.29 Mortgage Origination Highlights ($000) Q3 2013 Q4 2013 Pre-Tax
Slide 12: PlainsCapital Bank – Q4 2013 Highlights
12 PlainsCapital Bank – Q4 2013 Highlights Bank’s income before taxes of $46.1 million in Q4 2013 and $172.1 million for 2013 Total loans HFI increased $113.1 million from Q3 2013 Non-covered loans HFI up $204.4 million Total C&I loans of $1.7 billion or 38% of the portfolio Total real estate loans
Slide 13: PlainsCapital Bank – Loan Portfolio by Classification
PlainsCapital Bank – Loan Portfolio by Classification 13 Covered PCI Loans Q4 2013 Total: $729.2 million Covered Non-PCI Loans Q4 2013 Total: $277.2 million Non-Covered PCI Loans Q4 2013 Total: $100.4 million Non-Covered Non-PCI Loans Q4 2013 Total: $3,414.3 million Note: PCI stands for Purchased Cr
Slide 14: PCI Loans at Dec. 31, 2013
PCI Loans at Dec. 31, 2013 14 Purchased Credit Impaired (“PCI”) loans are loans with evidence of credit quality deterioration, for which it is probable that all contractually required payments will not be collected PCI loans include: Covered loans – Loans that are subject to the loss share agreement
Slide 15: Non-PCI Loans at Dec. 31, 2013
Non-PCI Loans at Dec. 31, 2013 15 ($000) Covered Non-PCI Non-Covered Non-PCI Total Non-PCI Outstanding Balance 297,500 3,454,968 3,752,468 (Discount) / Premium (20,287) (40,714) (61,001) Carrying Amount 277,213 3,414,254 3,691,467 Allowance for Loan Loss (179) (30,104) (30,283) Total Non-PCI Loans,
Slide 16: PrimeLending – Q4 2013 Highlights
16 PrimeLending – Q4 2013 Highlights Loss before taxes driven by lower origination volume in Q4 2013, as Q4 has seasonally lower volume and market forces continue to pressure the mortgage origination business Origination volume of $2.3 billion in Q4 2013 Purchase volume declined slightly Refinance v
Slide 17: First Southwest – Q4 2013 Highlights
17 First Southwest – Q4 2013 Highlights Rising interest rates along with increased volatility in fixed income markets in recent months have resulted in: Reduced sales of fixed income securities to institutional customers Some trading losses on securities held to support those sales Reduction in fina
Slide 18: National Lloyds Corporation – Q4 2013 Highlights
18 National Lloyds Corporation – Q4 2013 Highlights Increase in earned premiums (primarily attributable to rate), lower claims volume and seasonality drove Q4 pre-tax income of $17.5 million Combined ratio declined to 71.7% in Q4 2013 from 80.5% in Q4 2012 Q4 2013 includes non-recurring gain of $3.7
Slide 19: Questions?
Questions? ne 0°