Slide 1: Forward-Looking Statements
Preface 200 Crescent Court, Suite 1330 Dallas, TX 75201 Phone: (214) 855-2177 Fax: (817) 887-1687 www.hilltop-holdings.com FORWARD-LOOKING STATEMENTS Please contact: Isabell Novakov Phone: (214) 252-4029 Email: inovakov@plainscapital.com This presentation and statements made by representatives of Hi
Slide 2: Hilltop Holdings – Q1 2016 Highlights
Hilltop Holdings – Q1 2016 Highlights • For the first quarter of 2016, net income to common stockholders was $27.6 million, or $0.28 per diluted share • First quarter 2016 adjusted net income1 was $30.9 million, or $0.31 per diluted share, when excluding the transaction and integration costs related
Slide 3: Hilltop Holdings – Financial Summary
Hilltop Holdings – Financial Summary Notes: (1) (2) NPLs, NPAs and Total Loans exclude covered loans and covered OREO. Based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets. 4 Selected ItemsQ1 2015Q4 2015Q1 2016 Net Inc
Slide 4: Hilltop Holdings – Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin • Stated NIM declined by 3 bps in Q1 2016 to 3.70% compared with 3.73% in Q4 2015 Interest Earning Assets • Lower loan yields and other earning asset balances were partially offset by a decline in notes payable and other borrowings balances Loans, Gros
Slide 5: Hilltop Holdings – Noninterest Income
Hilltop Holdings – Noninterest Income • Noninterest income for Q1 2016 was $277.7 million, up 2.3% versus Q1 2015 (after excluding $81.3 million bargain purchase gain from Q1 2015 results) Net gains from the sale of loans, other mortgage production income, and mortgage loan origination fees increase
Slide 6: Hilltop Holdings – Noninterest Expense
Hilltop Holdings – Noninterest Expense • • Noninterest expense was $325.2 million in Q1 2016, up 3.4% from Q1 2015 Compensation was relatively flat at $182.7 million in Q1 2016 (compared to $182.5 million in Q1 2015), representing 56% of noninterest expense for the quarter • During Q1 2016 we incurr
Slide 7: Hilltop Holdings – Balance Sheet
Hilltop Holdings – Balance Sheet • Assets were slightly down, as growth in non-covered loans and securities was more than offset by a decline in covered loans and loans held for sale • Gross non-covered loans HFI (including broker-dealer margin loans) increased $146.0 million, or 2.8%, from Q4 2015
Slide 8: Company Operational Updates
Company Operational Updates Note: Mortgage market share per Mortgage Bankers Association as of April 18, 2016. (1) Non-covered HFI loan growth excludes impact of broker-dealer margin loans. 9 PlainsCapital Bank •Q1 2016 ROAA of 0.98%, driven by strong net interest margin of 4.73% (3.70% Pre-PAA) •Qu
Slide 9: Company Operational Updates (Continued)
Company Operational Updates (Continued) Note: (1) See Appendix for reconciliation of reported pre-tax income to adjusted pre-tax income. 10 HilltopSecurities •After adjusting for transaction and integration costs ($4.0 million), HilltopSecurities made $7.8 million of pre-tax income during Q1 20161 •
Slide 10: PlainsCapital Bank – Q1 2016 Highlights
PlainsCapital Bank – Q1 2016 Highlights • Pre-tax income decreased to $31.2 million in Q1 2016 versus $41.7 million in Q1 2015 Increase in net interest income was driven by non-covered loan growth and improving core NIM (pre-PAA) Noninterest income decreased compared to Q1 2015 primarily due to $4.4
Slide 11: PlainsCapital Bank – Energy Exposure
PlainsCapital Bank – Energy Exposure • Increase in energy portfolio in Q1 2016 driven primarily by one large, new RLOC to an existing customer of the bank • The loan is secured by cash and AAA rated short term bonds of the borrower held in the bank No energy SNCs in PCB loan portfolio Continue to ha
Slide 12: PlainsCapital Bank – Credit Quality and Capital Ratios
PlainsCapital Bank – Credit Quality and Capital Ratios $70.0 0.30% 20.00% 18.13% 0.26% 18.00% 17.19% 17.17% 0.25% 16.99% $60.0 0.24% 0.24% 0.25% 15.87% 17.36% 16.00% 16.46% 16.46% 0.21% 16.25% $50.0 15.12% 14.00% 0.20% 13.22% 12.00% 12.77% 12.70% $40.0 12.17% 11.34% 0.15% $32.8 10.00% $31.2 $30.0 $3
Slide 13: PlainsCapital Bank – Loan Portfolio by Classification
PlainsCapital Bank – Loan Portfolio by Classification C&I 4% C&D 4% C&I C&D 7% 1% Real Estate 89% Real Estate 95% Q1 2016 Total: $197.9 million Q1 2016 Total: $149.5 million Consumer 1% C&D 6% Broker-dealer Consumer 1% C&I 19% 9% C&I 30% C&D 13% Real Estate 74% Q1 2016 Total: $68.1 million Real Esta
Slide 14: PlainsCapital Bank – PCI Loans at March 31, 2016
PlainsCapital Bank – PCI Loans at March 31, 2016 • Purchased Credit Impaired (“PCI”) loans are loans with evidence of credit quality deterioration, for which it is probable that not all contractually required payments will be collected • PCI loans include covered and non-covered loans • PCI loans ha
Slide 15: PlainsCapital Bank – Non-PCI Loans at March 31, 2016
PlainsCapital Bank – Non-PCI Loans at March 31, 2016 • Non-PCI loans include newly originated loans, acquired loans without credit impairment at acquisition, and acquired loans that have renewed • Non-PCI loans include covered loans and non-covered loans • Portfolio on balance sheet at 98.6% unpaid
Slide 16: PrimeLending – Q1 2016 Highlights
PrimeLending – Q1 2016 Highlights • Pre-tax income declined slightly to $9.1 million in Q1 2016 versus $10.0 million in Q1 2015 Origination volume of $2.9 billion in Q1 2016 was $115.6 million greater than Q1 2015 due to growth in purchase business • Purchase volume (as % of total volume) increased
Slide 17: HilltopSecurities – Q1 2016 Highlights
HilltopSecurities – Q1 2016 Highlights • Pre-tax income of $3.8 million in Q1 2016 versus pre-tax loss of $3.5 million in Q1 2015 • Q1 2016 results include pre-tax integration related costs of $4.0 million directly attributable to the acquisition of SWS • After adjusting for the pre-tax integration
Slide 18: National Lloyds Corporation – Q1 2016 Highlights
National Lloyds Corporation – Q1 2016 Highlights • Pre-tax income of $6.2 million in Q1 2016 relative to $9.1 million in Q1 2015 Written premium fell as the full impact of management’s initiatives to reduce concentrations and to increase premium rates in select markets is now being realized - though
Slide 19: National Lloyds Corporation — Q1 2016 Highlights
National Lloyds Corporation — Q1 2016 Highlights + Pre-tax income of $6.2 million in Q1 2016 relative to $9.1 million in Qt 2015 Nat Interest Income 757 740 + Written premium fellas the full impact of management’s Provision for Loan Lasse initiatives to reduce concentrations and to increase premium
Slide 20: Appendix
Appendix 21
Slide 21: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Hilltop Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures Hilltop presents one measure on page ten and eighteen and two measures on page three of this presentation that are not measures of financial performance recognized by generally accepted accounting pri
Slide 22: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Hilltop Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures Hilltop presents one measure on page ten and eighteen and two measures on page three of this presentati financial performance recognized by generally aecepted accounting prin that are not measures of