Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q4 2024 Earnings Presentation
22 slides from Hilltop's earnings presentation, Jan 30, 2025
Slide 1: Hilltop Holdings Inc. Q4 2024 Earnings Presentation
Hilltop Holdings Inc. Q4 2024Earnings Presentation January 31, 2025
Slide 2: Preface: Forward-Looking Statements
Preface 2 Corporate Headquarters Additional Information 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop.com Please Contact: Matt Dunn Phone: 214-525-4636 Email: mdunn@hilltop.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives of Hilltop Holdin
Slide 3: Q4 2024 Investor Highlights
Q4 2024 3 Investor Highlights – Notes: (1) Average Bank Loans HFI reflect consolidated loans held for investment excluding margin loans from the Broker-Dealer business. • PlainsCapital Bank generated $50.6 million in pre-tax income. The quarter included a $5.7 million provision recapture which was s
Slide 4: Capital Highlights – Capital Management and Tangible Book Value Growth
$28.37 $27.18 $28.35 $29.49 $31.95 $31.49 $32.58 $33.71 21.22% 18.23% 19.32% 21.23% 2.00% 22.00% $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Tangible Book Value Per Share (Tangible Common Equity / Shares Outstanding) Book Value per Share Common Equity
Slide 5: Hilltop Holdings – Financial Summary
5 Hilltop Holdings – Financial Summary Notes: (1) Pre-provision net revenue is calculated as the sum of net interest income and noninterest income less noninterest expense (except provision for loan losses). Q4 $ in Millions, except EPS Income Statement and Key Metrics Q4 2024 Q3 2024 QoQ% Q4 2023 Y
Slide 6: Hilltop Holdings – Full Year Financial Summary
6 Hilltop Holdings – Full Year Financial Summary Notes: (1) Pre-provision net revenue is calculated as the sum of net interest income and noninterest income less noninterest expense (except provision for loan losses). $ in Millions, except EPS Income Statement and Key Metrics FY 2024 FY 2023 YoY% Ne
Slide 7: Hilltop Holdings – Allowance for Credit Losses
$111.4 $104.2 $115.1 $110.9 $101.1 ($3.9) ($3.5) ($4.2) $1.8 1.38% 1.29% 1.41% 1.39% 1.27% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $55.0 $65.0 $75.0 $85.0 $95.0 $105.0 $115.0 $125.0 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Net Charge-Off Collective - Portfolio Changes Collective - Econ
Slide 8: Hilltop Holdings – Net Interest Income & Margin
$111.2 $103.6 $103.7 $105.0 $105.5 $80.0 $85.0 $90.0 $95.0 $1 00.0 $1 05.0 $1 1 0. 0 $1 1 5. 0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2.96% 2.85% 2.90% 2.84% 2.72% 1 .00% 1 .50% 2 .00% 2 .50% 3 .00% 3 .50% 4 .00% 4 .50% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 8 Hilltop Holdings – Net Interest Incom
Slide 9: Hilltop Holdings – Net Interest Income Rate Impacts
9.0% 12.0% 6.0% 5.9% 6.5% Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 9 Hilltop Holdings – Net Interest Income Rate Impacts Asset Sensitivity Trending 1 Note: (1) Impact assumes instantaneous change to interest rates. Assumes interest rate floor at 1 basis point (2) Bank variable rate loans above the floor t
Slide 10: Hilltop Holdings – Deposits
$6.7 $6.9 $6.8 $7.2 $7.7 $3.0 $3.0 $2.8 $2.8 $2.8 $1.1 $0.8 $0.8 $0.8 $0.6 $0.2 $0.2 $11.1 $10.9 $10.4 $10.8 $11.1 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Interest-Bearing Deposits Noninterest-Bearing Deposits Broker-Dealer Sweep Deposits Brokered Deposits 10 Notes: The sum of the period amounts may
Slide 11: Hilltop Holdings – Noninterest Income
$69.2 $66.7 $92.9 $7 9.9 $7 3.7 $1 06.4 $1 04.6 $92.1 $1 11.8 $1 14.3 $1 1 .8 $1 1 .9 $9.3 $1 0.7 $1 1 .4 ($8.4) ($1 .6) ($0.9) ($2.1) ($3.9) $179.0 $181.6 $193.3 $200.4 $195.6 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Corporate, other and eliminations PlainsCapital Bank HilltopSecurities PrimeLending
Slide 12: Hilltop Holdings – Noninterest Expenses
$187.3 $192.6 $188.8 $187.9 $189.5 $63.5 $57.5 $67.6 $76.4 $73.3 $250.8 $250.0 $256.5 $264.3 $262.8 86.4% 87 .7 % 86.4% 86.5% 87 .3% 50.0 % 5 5. 0% 60.0 % 6 5. 0% 7 0. 0% 7 5. 0% 80.0 % 85.0 % 90.0 % Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $0.0 $5 0. 0 $ 100.0 $ 15 0.0 $2 0. 0 $2 50 .0 $3 0. 0 $350
Slide 13: Hilltop Holdings – Loans
$6.2 $6.2 $6.2 $6.0 $6.0 $0.3 $0.3 $0.3 $0.3 $0.4 $1.3 $1.4 $1.4 $1.3 $1.4 $0.2 $0.2 $0.3 $0.3 $0.2 $8.1 $8.1 $8.2 $8.0 $8.0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Mortgage Warehouse Lending 1 - 4 Family PrimeLending Retained Mortgages Broker-Dealer Loans All Other Loans 24% 18% 19% 11% 23% 5% CRE
Slide 14: Hilltop Holdings – Asset Quality
$67 4 $4,311 $83 $2,894 $3,950 0.03% 0.22% 0.00% 0.15% 0.21% -1.00% -0.80% -0.60% -0.40% -0.20% 0.00% 0.20% 0.40% $(3,000) $(1,000) $1,000 $3,000 $5,000 $7,000 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 NCOs NCOs/Avg. Total Bank Loans 1.6x 1.6x 1.1x 1.2x 1.1x 1.44% 1.35% 1.47 % 1.45% 1.33% 0.00% 0.50%
Slide 15: Hilltop Holdings – 2025 Outlook
15 Hilltop Holdings – 2025 Outlook Outlook • Full year average Bank loans to grow 2% - 5% • Expect to retain $10 – $30 million per month of PrimeLending originated mortgages Loan Growth (Full year average HFI loan growth) • Full year average Bank deposits expected to increase 2% – 5% Deposit Growth
Slide 16: Appendix
Appendix 16
Slide 17: Non-GAAP to GAAP Reconciliation – Hilltop Consolidated
17 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
Slide 18: PlainsCapital Bank – Highlights Q4 2024
53.2% 54.1% 57 .0% 55.2% 57 .8% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2.94% 3.00% 3.10% 3.05% 2.98% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 PlainsCapital Bank – Highlights Q4 2024 18 Efficiency Ratio1 Notes: (1) Efficiency Ratio is calculated as noninterest expense divided by the sum of net intere
Slide 19: PrimeLending – Highlights
19 PrimeLending – Highlights Gain on Sale and Origination Fee Trends Notes: (1) Gain on Sale calculated as net gains from sale of loans divided by sales volume. Reported Gain on Sale reflects impact of loans retained by PlainsCapital Bank. 1 Mortgage Origination Volume $1.8 $1.7 $2.4 $2.3 $2.3 Q4 20
Slide 20: HilltopSecurities – Highlights Q4 2024
HilltopSecurities – Highlights Q4 2024 20 Notes: The sum of the period amounts may not equal the total amounts due to rounding. Presented net revenue by business line may differ slightly from 10-K due to grouping of certain business lines into ‘Other’. Net Revenues by Business Line Key Highlights ($
Slide 21: Hilltop Holdings – Commercial Real Estate Portfolio
21 Hilltop Holdings – Commercial Real Estate Portfolio Commercial Real Estate Portfolio (Ending Balance, $ in millions, at December 31, 2024) CRE Allowance for Credit Losses (ACL) Commercial Real Estate – Non-Owner Occupied (Ending Balance at December 31, 2024) (Ending Balance at December 31, 2024)
Slide 22: Hilltop Holdings – Auto Lending Portfolio
22 Hilltop Holdings – Auto Lending Portfolio Auto Note Financing Commitments1 Commentary Allowance for Credit Losses • Auto Note Finance committed portfolio balance has been in decline since 2021 o The impacts of higher interest rates and declining values of used vehicles continue to put downward pr