Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q2 2023 Earnings Presentation
20 slides from Hilltop's earnings presentation, Jul 21, 2023
Slide 1: Hilltop Holdings Inc. Q2 2023 Earnings Presentation
Hilltop Holdings Inc. Q2 2023 Earnings Presentation July 21, 2023
Slide 2: Preface
Preface Corporate Headquarters Additional Information 6565 Hillcrest Ave Please Contact: Dallas, TX 75205 Erik Yohe Phone: 214-855-2177 Phone: 214-525-4634 www.hilltop-holdings.com Email: eyohe@hilltop-holdings.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives o
Slide 3: Investor Highlights – Q2 2023
Investor Highlights – Q2 2023 Net Income EPS – Diluted ROAA ROAE $18.1 MM $0.28 $0.30 0.47% .86% 3.53% 5.76% • PlainsCapital Bank generated $39.8 million in pre-tax income during Q2 2023, a decrease of $11.5 million from Q2 2022 driven primarily by $9.9 million of higher provision expense • Average
Slide 4: Capital Highlights – Q2 2023
Capital Highlights – Q2 2023 • During the quarter, HTH returned $10.4 million of capital to shareholders in dividends. There were no share repurchases during the quarter Capital Management and Tangible Book Value Growth $44.00 21.28% 21.22% 21.27% 20.22% $39.00 18.23% 17.99% 17.63% 17.24% 17.45% $0.
Slide 5: Q2 Financial Summary
Hilltop Holdings – Q2 Financial Summary $ in Millions, except EPS Income Statement and Key Metrics Q2 2023 Q1 2023 QoQ% Q2 2022 YoY% Net interest income $118.3 $121.7 (3%) $112.1 6% Noninterest income 190.7 162.5 17% 239.3 (20%) Noninterest expenses 267.0 250.5 7% 298.5 (11%) Efficiency ratio 86.4%
Slide 6: Allowance for Credit Losses
Hilltop Holdings – Allowance for Credit Losses Allowance for Credit Losses at Period End ($ in millions) $125.0 4.00% 3.50% $115.0 $5.2 $1.9 $109.3 $7.7 3.00% $105.0 ($2.9) $97.4 ACL / Total Loans HFI $95.3 $95.4 2.50% $95.0 $91.8 2.00% $85.0 1.31% 1.50% $75.0 1.20% 1.18% 1.19% 1.16% 1.00% $65.0 0.5
Slide 7: Commercial Real Estate Portfolio
Hilltop Holdings – Commercial Real Estate Portfolio Commercial Real Estate Portfolio Commercial Real Estate – Non-Owner Occupied ($ in millions) CRE Allowance for Credit Losses (ACL) Notes Allowance • Approximately 96% of all CRE exposure is in Texas Ending for Credit ACL % $ in m illions Balance Lo
Slide 8: Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin Net Interest Income Net Interest Margin Rollforward ($ in millions) Q1 2023 3.28% $130.0 2 $123.5 $123.4 Loans HFI Y ield Increase 0.26% $121.7 $125 .0 $120.0 $118.3 Securities Portfolio Y ield Increase 0.06% Y ield on Cash and Due Balances 0.09% $115
Slide 9: Q2 2023 Liquidity Update
Hilltop Holdings – Q2 2023 Liquidity Update Available Liquidity1 Current Themes ($ in millions, at period end) • Total available liquidity totaled ~$7.2 billion at June 30, 2023 FHLB Capacity 3 ,945 Inv estm ent Portfolio (av ailable) 1 ,688 • Uninsured deposits, excluding collateralized deposits of
Slide 10: Deposits
Hilltop Holdings – Deposits Deposit Mix at Period End Key Drivers & Statistics ($ in billions) Q2'22 Q1'23 Q2'23 Av erage Deposits ($B) $1 2.3 $1 1 .0 $1 1 .3 $11.9 1 $0.1 Cost of Interest-Bearing Deposits 0.28% 2.01 % 2.84% $11.4 $11.3 $11.2 $ 0.8 $0.0 $11.1 1 $ 0.7 $0.0 $0.0 Cost of Total Deposits
Slide 11: Noninterest Income
Hilltop Holdings – Noninterest Income Noninterest Income Year-over-Year Noninterest Income ($MM) ($ in millions) Q2 2022 $239.3 $239.3 Mortgage Production Income & Fees (49.9) $1 2 .5 Securities and Inv estment Adv isory Fees & Commissions (5.1) $207.0 Other Income 6.4 $1 2 .2 $190.7 $1 1 .2 Q2 2023
Slide 12: Noninterest Expenses
Hilltop Holdings – Noninterest Expenses $40 0. 0 Noninterest Expenses Year-over-Year Noninterest Expense ($MM) ($ in millions) Q2 2022 $ 298.5 90.0% 88.1 % 87 .4% 86.4% 86.4% Com pensation and Benefits (2 8.4) 85.0% $35 0.0 85.0% Occupancy and Equipm ent (1 .2 ) Professional Serv ices (3 .7 ) $298.5
Slide 13: Loans
Hilltop Holdings – Loans Loan Mix at Period End Key Drivers & Statistics ($ in billions) $ 8.4 Q2'22 Q1'23 Q2'23 $ 8.1 $ 8.2 $ 7 .9 $ 7 .9 $ 0.3 Av erage Loans HFI Balance ($B) $7 .8 $7 .9 $8.0 $ 0.2 $ 0.2 $ 0.3 $ 0.2 Annualized Loan HFI Yield % 4 .3 2 % 5.7 9 % 6 .2 1 % $ 1.3 $ 1.4 $ 1.4 $ 1.1 $ 1.
Slide 14: Asset Quality
Hilltop Holdings – Asset Quality Criticized Loans Non-Performing Assets 5.0% $75,000 1.00% 4.0% 0.75% % of Bank Loans 3.0% $50,000 3.0% 2.7 % 2.6% 2.7 % 0.53% 2.5% 0.50% 0.48% 0.43% 0.50% 0.39% 2.0% $25,000 2.7 % 3.0% 2.5% 2.6% 2.6% 0.25% 1.0% $37,197 $36,260 $32,645 $30,580 $42,437 0.0% $0 0.00% Q2
Slide 15: 2023 Outlook
Hilltop Holdings – 2023 Outlook Outlook • Full year average bank loan growth 0% – 2% (excluding retained mortgages from Loan Growth PrimeLending and mortgage warehouse lending) (Full year average HFI loan growth) • Expect to retain $0 – $20 million per quarter of mortgages from PrimeLending Deposit
Slide 16: Appendix
Appendix 16
Slide 17: PlainsCapital Bank – Q2 2023 Highlights
PlainsCapital Bank – Q2 2023 Highlights Summary Results ($ in millions) Q2 2022 Q2 2023 Key Highlights Q2 2022 Q2 2023 Net Interest Incom e $1 01 .3 $1 01 .0 ROAA 1 .09% 0.89% Prov ision for (rev ersal of) Credit Losses 5.0 1 4.9 Full Serv ice Branches (period end) 58 59 Noninterest Incom e 1 2.5 1
Slide 18: PrimeLending – Q2 2023 Highlights
PrimeLending – Q2 2023 Highlights Summary Results ($ in millions) Q2 2022 Q2 2023 Key Highlights Q2 2022 Q2 2023 Net Interest Incom e (Expense) ($1 .3 ) ($5.9) Origination Volum e ($m m ) $3 ,809 $2 ,452 Noninterest Incom e 1 40.1 90.1 % Purchase 88% 94% Noninterest Expense 1 3 3 .2 98.7 Sales Volum
Slide 19: HilltopSecurities – Q2 2023 Highlights
HilltopSecurities – Q2 2023 Highlights Summary Results Key Highlights ($ in millions) Q2 2022 Q2 2023 ($ in millions) Q2 2022 Q2 2023 Net Interest Incom e $1 2 .6 $1 3 .2 Com pensation/Net Rev enue (%) 64.3 % 57 .7 % Prov ision for (Rev ersal of) Credit Losses 0.3 (0.1 ) Pre-tax Margin % 9.1 % 1 6.3
Slide 20: Non-GAAP to GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures 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 intangible assets. This i