Hilltop Holdings Inc. · NYSE:HTH
Hilltop — Q2 2018 Earnings Presentation
18 slides from Hilltop's earnings presentation, Jul 26, 2018
Slide 1: Forward-Looking Statements
Preface 2323 Victory Ave, Suite 1400 Dallas, TX 75219 Phone: 214-855-2177 www.hilltop-holdings.com FORWARD-LOOKING STATEMENTS Please Contact: Isabell Novakov Phone: 214-252-4029 Email: inovakov@hilltop-holdings.com This presentation and statements made by representatives of Hilltop Holdings Inc. (“H
Slide 2: Investor Highlights – Q2 2018
Investor Highlights – Q2 2018 • • • • Strong noninterest bearing deposit growth of, 10% versus prior year Total mortgage origination market share improvement of 4 bps to .92%1 Retail Brokerage, Clearing and Securities Lending continue to benefit from rate increases Noninterest expense down 8% versus
Slide 3: Business Results – Q2 2018
Business Results – Q2 2018 ($10.4) • Banking pre-tax income of $33.1 million, declined by 45% from prior year, largely driven by the recognition of a one-time insurance receivable of $15 million in Q2 2017 and a reduction in accretion of $15 million versus the prior year. Non-covered HFI loan growth
Slide 4: Hilltop Holdings – Financial Summary
Hilltop Holdings – Financial Summary Notes: (1) (2) (3) (4) (5) Pre-provision net revenue is calculated as the sum of net interest income and noninterest income less noninterest expense (excep t loss provisions). Includes impact of Purchase Accounting, FDIC Indemnification and True-up accrual (clawb
Slide 5: Hilltop Holdings – Net Interest Income & Margin
Hilltop Holdings – Net Interest Income & Margin ($ in billions) • Net interest income of $105 million decreased $11 million or 10% from second quarter 2017 • Accretion of $8.3 million declined $14.8 million, or 64%, year over year Gross loan yields decreased 8 basis points to 5.19% in Q2 2018 from 5
Slide 6: Hilltop Holdings – Noninterest Income
Hilltop Holdings – Noninterest Income ($ in millions) $344.7 Securities Related Fees & Commissions (3.1) $279.4 Other Income (42.4) • Noninterest income of $279 million declined by $65 million compared to the second quarter 2017 • $18 million reduction in mortgage production income and fees driven b
Slide 7: Hilltop Holdings – Noninterest Expenses
Hilltop Holdings – Noninterest Expenses ($ in millions) $366.3 Occupancy and Equipment --$328.7 Insurance Loss and LAE (8.8) • Noninterest expense of $339 million declined $28 million from the second quarter 2017, driven by a decrease in variable compensation coupled with lower Losses & LAE in the i
Slide 8: Hilltop Holdings – Loans
Hilltop Holdings – Loans ($ in billions, ending balances) 5.81% Annualized Gross Loan Yield1: 5.28% 5.27% 5.19% 5.01% $6.5 $6.5 $6.4 $6.3 $6.3 h2.8% vs. PY Q2 2017 Non-Covered Loans Q3 2017 Q4 2017 Q1 2018 Q2 2018 Annualized Gross Loan Yield Covered Loans B/D Margin Loans Vs. Prior Quarter: (Non-Cov
Slide 9: Hilltop Holdings – Deposits
Hilltop Holdings – Deposits ($ in billions, ending balances) 0.52% 0.44% 0.39% 0.36% 0.30% Cost of Deposits: $8.0 $8.0 $7.8 $7.7 $7.6 h9.6% vs. PY Q2 2017 Q3 2017 Q4 2017 Q1 2018 B/D Sweep Deposits Q2 2018 Cost of Deposits (%) Noninterest bearing Interest bearing Vs. Prior Quarter: (Total Deposits)
Slide 10: PlainsCapital Bank – Q2 2018 Highlights
PlainsCapital Bank – Q2 2018 Highlights Net Interest Income Provision for Loan Losses Noninterest Income Noninterest Expense 102.2 5.4 25.5 62.5 88.0 --10.6 65.5 ROAA Efficiency Ratio1 Net Interest Margin TE - Net Interest Margin – Pre-PAA 1.63% 49.0% 4.80% 3.69% $9.4 1.09% 66.5% 4.11% 3.70% $9.4 Av
Slide 11: PrimeLending – Q2 2018 Highlights
PrimeLending – Q2 2018 Highlights Origination Volume ($mm) % Purchase Sales Volume ($mm) Servicing Assets ($mm) $4,058 86% $3,385 $44 $4,107 88% $3,527 $57 Net Interest Income Noninterest Income Noninterest Expense 1.0 179.6 161.4 0.7 162.7 150.0 • Origination volume of $4.1 billion in Q2 2018 excee
Slide 12: HilltopSecurities – Q2 2018 Highlights
HilltopSecurities – Q2 2018 Highlights Net Interest Income Provision for Loan Losses 10.3 0.4 12.9 0.3 Compensation/Net Revenue (%) FDIC Insured Balances at PCB 60.9% $1,301 60.6% $1,279 Noninterest Income Noninterest Expense 92.8 86.9 73.6 78.0 Other FDIC Insured Balances Public Finance Offerings T
Slide 13: National Lloyds Corporation – Q2 2018 Highlights
National Lloyds Corporation – Q2 2018 Highlights Net Interest Income Noninterest Income Noninterest Expense 0.6 38.4 49.4 0.8 36.5 39.7 Direct Premiums Written Net Premiums Earned $37.8 $36.0 $35.8 $34.1 • Pre-tax loss of ($2.4) million in Q2 2018 versus pre-tax loss of ($10.4) million in Q2 2017 De
Slide 14: National Lloyds Corporation — Q2 2018 Highlights
National Lloyds Corporation — Q2 2018 Highlights Key Highlights $ in millions) n millions) Net Interest Income 06 08 Direct Premiums Written 7 $95.8 Noninterest Income 38.4 36.5 ‘Net Premiums Earned S344 Noninterest Expense 49-4 30.7 Income Before Taxes ($10.4) (82.4) 2018 Highlights Combined Ratio
Slide 15: Appendix
Appendix 16
Slide 16: 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 Hilltop presents measures in this presentation that are not measures of financial performance recognized by generally accepted accounting principles in the United States (“GAAP”) including taxable equivalent
Slide 17: Non-GAAP to GAAP Reconciliation (Continued)
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures (Continued) 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 as
Slide 18: Non-GAAP to GAAP Reconciliation (Continued)
Non-GAAP to GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures (Continued) 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 as