Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2023

DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the third quarter of 2023. Hilltop produced income to common stockholders of $37.0 million, or $0.57 per diluted share, for the third quarter of 2023, compared to $32.1 million, or $0.50 per diluted share, for the third quarter of 2022. Hilltop’s financial results for the third quarter of 2023 included decreases in year-over-year mortgage origination segment net gains from sales of loans and other mortgage production income, a decline in the net interest income within the banking segment, and increases in net revenues within certain of the broker-dealer segment’s business lines.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.16 per common share, payable on November 28, 2023, to all common stockholders of record as of the close of business on November 13, 2023.

Headwinds that began in 2022, and continued through the first nine months of 2023, including the impact of tight housing inventories on mortgage volumes, declining deposit balances, rapid increases in market interest rates and a volatile economic forecast have had, and are expected to continue to have, an adverse impact on our operating results during the remainder of 2023. The impacts of such headwinds during the remainder of 2023 remain uncertain and will depend on developments outside of our control, including, among others, the timing and significance of further changes in U.S. treasury yields and mortgage interest rates, exposure to increasing funding costs, inflationary pressures associated with compensation, occupancy and software costs and labor market conditions, international armed conflicts and their impact on supply chains, and disruptions to the economy and the U.S. banking system caused by high-profile bank failures during early 2023.

Jeremy B. Ford, President and CEO of Hilltop, said “Hilltop’s operating results for the third quarter reflect a general continuation in market pressures experienced in the first half of the year. While PlainsCapital Bank produced strong financial results for the quarter with a 1.20% return on average assets, the competitive environment around deposits resulted in further pressure on the bank’s net interest margin. HilltopSecurities generated robust financial results as the wealth management and structured finance businesses produced strong net revenues, which more than offset challenging market conditions for the public finance and fixed income capital markets businesses. PrimeLending’s results continued to be impacted by the housing market’s lack of inventory, consumer affordability challenges and a stubbornly compressed gain-on-sale margin.

“As we progress into the final quarter of the year, we will continue to prudently manage our balance sheet, closely monitor our expenses and serve our valued clients.”

Third Quarter 2023 Highlights for Hilltop:

• The reversal of credit losses was $40 thousand during the third quarter of 2023, compared to a provision for credit losses of $14.8 million in the second quarter of 2023 and a reversal of credit losses of $0.8 million in the third quarter of 2022;
  • The slight reversal of credit losses during the third quarter of 2023 reflected improvements to the U.S. economic outlook and decreases in specific reserves within our broker dealer segment, offset by increases in specific reserves and net portfolio changes within the banking segment.

• For the third quarter of 2023, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within our mortgage origination segment was $88.7 million, compared to $98.0 million in the third quarter of 2022, a 9.4% decrease;
  • Mortgage loan origination production volume was $2.2 billion during the third quarter of 2023, compared to $3.0 billion in the third quarter of 2022;
  • Net gains from mortgage loans sold to third parties decreased to 199 basis points during the third quarter of 2023, compared to 207 basis points in the second quarter of 2023.
• Hilltop’s consolidated annualized return on average assets and return on average stockholders’ equity for the third quarter of 2023 were 0.94% and 7.11%, respectively, compared to 0.79% and 6.26%, respectively, for the third quarter of 2022;
• Hilltop’s book value per common share increased to $31.91 at September 30, 2023, compared to $31.71 at June 30, 2023;
• Hilltop’s total assets were $16.4 billion and $17.1 billion at September 30, 2023 and June 30, 2023, respectively;
• Loans¹, net of allowance for credit losses, were $7.7 billion and $7.9 billion at September 30, 2023 and June 30, 2023, respectively;
• Non-performing loans were $31.5 million, or 0.34% of total loans, at September 30, 2023, compared to $39.0 million, or 0.40% of total loans, at June 30, 2023;
• Loans held for sale decreased by 20.6% from June 30, 2023 to $1.1 billion at September 30, 2023;
• Total deposits were $11.1 billion and $11.2 billion at September 30, 2023 and June 30, 2023, respectively;
  • Total estimated uninsured deposits were $4.4 billion, or approximately 40% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $276.3 million, were $4.2 billion, or approximately 37% of total deposits at September 30, 2023.
• Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 11.92% and a Common Equity Tier 1 Capital Ratio of 18.60% at September 30, 2023;
• Hilltop’s consolidated net interest margin⁴ decreased to 3.02% for the third quarter of 2023, compared to 3.03% in the second quarter of 2023;
• For the third quarter of 2023, noninterest income was $196.8 million, compared to $207.0 million in the third quarter of 2022, a 4.9% decrease;
• For the third quarter 2023, noninterest expense was $260.0 million, compared to $288.7 million in the third quarter of 2022, a 9.9% decrease; and
• Hilltop’s effective tax rate was 25.2% during the third quarter of 2023, compared to 21.8% during the same period in 2022.
  • The effective tax rate for the third quarter was higher than the applicable statutory rate primarily due to the impact of non-deductible compensation expense and other permanent adjustments.

_____________________________

^1“Loans” reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $357.1 million and $358.5 million at September 30, 2023 and June 30, 2023, respectively.

^2 Capital ratios reflect Hilltop’s decision to elect the transition option as issued by the federal banking regulatory agencies in March 2020 that permits banking institutions to mitigate the estimated cumulative regulatory capital effects from CECL over a five-year transitionary period.

^3 Based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets.

^4 Net interest margin is defined as net interest income divided by average interest-earning assets.

Consolidated Financial and Other Information
Consolidated Balance Sheets	September 30,			June 30,			March 31,			December 31,			September 30,
(in 000's)	2023			2023			2023			2022			2022
Cash and due from banks	$	1,513,747		$	1,584,709		$	1,764,081		$	1,579,512		$	1,777,584
Federal funds sold		3,650			650			743			650			663
Assets segregated for regulatory purposes		47,491			50,711			36,199			67,737			109,358
Securities purchased under agreements to resell		123,719			143,982			144,201			118,070			145,365
Securities:
Trading, at fair value		578,901			696,649			692,908			755,032			641,864
Available for sale, at fair value, net ^(1)		1,456,238			1,526,869			1,641,571			1,658,766			1,584,724
Held to maturity, at amortized cost, net ^(1)		825,079			847,437			862,280			875,532			889,452
Equity, at fair value		264			258			231			200			209
		2,860,482			3,071,213			3,196,990			3,289,530			3,116,249
Loans held for sale		1,058,806			1,333,044			1,040,138			982,616			1,003,605
Loans held for investment, net of unearned income		8,204,052			8,354,122			8,192,846			8,092,673			7,944,246
Allowance for credit losses		(110,822	)		(109,306	)		(97,354	)		(95,442	)		(91,783	)
Loans held for investment, net		8,093,230			8,244,816			8,095,492			7,997,231			7,852,463
Broker-dealer and clearing organization receivables		1,460,352			1,474,177			1,560,246			1,038,055			1,255,052
Premises and equipment, net		172,097			176,574			180,132			184,950			191,423
Operating lease right-of-use assets		93,057			97,979			100,122			102,443			103,099
Mortgage servicing assets		104,951			95,101			103,314			100,825			156,539
Other assets		588,751			588,166			529,438			518,899			624,235
Goodwill		267,447			267,447			267,447			267,447			267,447
Other intangible assets, net		9,078			9,772			10,544			11,317			12,209
Total assets	$	16,396,858		$	17,138,341		$	17,029,087		$	16,259,282		$	16,615,291
Deposits:
Noninterest-bearing	$	3,200,247		$	3,451,438		$	3,807,878		$	3,968,862		$	4,546,816
Interest-bearing		7,902,850			7,712,739			7,289,269			7,346,887			6,805,198
Total deposits		11,103,097			11,164,177			11,097,147			11,315,749			11,352,014
Broker-dealer and clearing organization payables		1,368,064			1,306,646			1,383,317			966,470			1,176,156
Short-term borrowings		882,999			1,628,637			1,572,794			970,056			942,309
Securities sold, not yet purchased, at fair value		51,527			74,761			51,497			53,023			99,515
Notes payable		347,020			364,531			376,410			346,654			390,354
Operating lease liabilities		114,334			119,999			122,878			126,759			120,635
Other liabilities		422,955			389,336			341,246			417,042			475,425
Total liabilities		14,289,996			15,048,087			14,945,289			14,195,753			14,556,408
Common stock		652			651			650			647			646
Additional paid-in capital		1,052,867			1,050,191			1,044,774			1,046,331			1,043,605
Accumulated other comprehensive loss		(145,083	)		(131,718	)		(125,461	)		(133,531	)		(119,864	)
Retained earnings		1,171,250			1,144,624			1,136,901			1,123,636			1,107,586
Deferred compensation employee stock trust, net		340			450			446			481			479
Employee stock trust		(446	)		(599	)		(599	)		(640	)		(641	)
Total Hilltop stockholders' equity		2,079,580			2,063,599			2,056,711			2,036,924			2,031,811
Noncontrolling interests		27,282			26,655			27,087			26,605			27,072
Total stockholders' equity		2,106,862			2,090,254			2,083,798			2,063,529			2,058,883
Total liabilities & stockholders' equity	$	16,396,858		$	17,138,341		$	17,029,087		$	16,259,282		$	16,615,291
_____________________________
(1) At September 30, 2023, the amortized cost of the available for sale securities portfolio was $1,606,340, while the fair value of the held to maturity securities portfolio was $703,366.

	Three Months Ended
Consolidated Income Statements	September 30,			June 30,		March 31,		December 31,		September 30,
(in 000's, except per share data)	2023			2023		2023		2022		2022
Interest income:
Loans, including fees	$	142,402		$	138,397	$	123,379	$	117,906	$	109,165
Securities borrowed		17,683			18,515		17,068		14,162		10,938
Securities:
Taxable		27,166			26,719		25,602		23,293		19,642
Tax-exempt		2,464			2,566		3,188		3,002		2,451
Other		27,040			27,229		22,190		21,611		14,276
Total interest income		216,755			213,426		191,427		179,974		156,472
Interest expense:
Deposits		64,290			54,726		35,824		28,238		12,525
Securities loaned		16,169			16,413		15,346		13,179		9,407
Short-term borrowings		14,212			17,706		12,444		10,278		5,550
Notes payable		4,026			3,973		3,853		3,988		3,907
Other		2,408			2,342		2,255		849		1,597
Total interest expense		101,105			95,160		69,722		56,532		32,986
Net interest income		115,650			118,266		121,705		123,442		123,486
Provision for (reversal of) credit losses		(40	)		14,836		2,331		3,638		(780	)
Net interest income after provision for (reversal of) credit losses		115,690			103,430		119,374		119,804		124,266
Noninterest income:
Net gains from sale of loans and other mortgage production income		47,262			48,535		39,966		35,949		57,998
Mortgage loan origination fees		41,478			41,440		28,777		35,198		39,960
Securities commissions and fees		28,044			29,606		31,223		33,143		34,076
Investment and securities advisory fees and commissions		39,662			32,037		26,848		30,661		35,031
Other		40,403			39,034		35,680		34,833		39,910
Total noninterest income		196,849			190,652		162,494		169,784		206,975
Noninterest expense:
Employees' compensation and benefits		173,195			176,908		167,817		167,892		200,450
Occupancy and equipment, net		21,912			23,025		22,865		23,077		25,041
Professional services		12,639			12,594		10,697		11,555		10,631
Other		52,271			54,450		49,091		50,844		52,616
Total noninterest expense		260,017			266,977		250,470		253,368		288,738
Income before income taxes		52,522			27,105		31,398		36,220		42,503
Income tax expense		13,211			7,167		3,630		9,642		9,249
Net income		39,311			19,938		27,768		26,578		33,254
Less: Net income attributable to noncontrolling interest		2,269			1,805		1,968		1,022		1,186
Income attributable to Hilltop	$	37,042		$	18,133	$	25,800	$	25,556	$	32,068
Earnings per common share:
Basic	$	0.57		$	0.28	$	0.40	$	0.40	$	0.50
Diluted	$	0.57		$	0.28	$	0.40	$	0.39	$	0.50
Cash dividends declared per common share	$	0.16		$	0.16	$	0.16	$	0.15	$	0.15
Weighted average shares outstanding:
Basic		65,106			65,025		64,901		64,602		64,552
Diluted		65,108			65,054		64,954		64,779		64,669

	Three Months Ended September 30, 2023
Segment Results						Mortgage						All Other and			Hilltop
(in 000's)	Banking		Broker-Dealer			Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	99,047	$	12,215		$	(5,482	)	$	(3,175	)	$	13,045		$	115,650
Provision for (reversal of) credit losses		675		(715	)		—			—			—			(40	)
Noninterest income		11,668		106,488			88,747			3,159			(13,213	)		196,849
Noninterest expense		56,887		97,865			91,505			13,937			(177	)		260,017
Income (loss) before taxes	$	53,153	$	21,553		$	(8,240	)	$	(13,953	)	$	9		$	52,522
	Nine Months Ended September 30, 2023
Segment Results						Mortgage						All Other and			Hilltop
(in 000's)	Banking		Broker-Dealer			Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	304,804	$	39,279		$	(15,590	)	$	(9,976	)	$	37,105		$	355,622
Provision for (reversal of) credit losses		17,175		(48	)		—			—			—			17,127
Noninterest income		34,046		297,164			247,655			8,944			(37,815	)		549,994
Noninterest expense		170,450		283,063			278,918			45,750			(717	)		777,464
Income (loss) before taxes	$	151,225	$	53,428		$	(46,853	)	$	(46,782	)	$	7		$	111,025

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Selected Financial Data	2023			2023			2023			2022			2022
Hilltop Consolidated:
Return on average stockholders' equity		7.11	%		3.53	%		5.12	%		4.99	%		6.26	%
Return on average assets		0.94	%		0.47	%		0.69	%		0.63	%		0.79	%
Net interest margin ^(1)		3.02	%		3.03	%		3.28	%		3.23	%		3.19	%
Net interest margin (taxable equivalent) ^(2):
As reported		3.04	%		3.03	%		3.28	%		3.24	%		3.20	%
Impact of purchase accounting		7 bps			9 bps			6 bps			7 bps			8 bps
Book value per common share ($)		31.91			31.71			31.63			31.49			31.46
Shares outstanding, end of period (000's)		65,170			65,071			65,023			64,685			64,591
Dividend payout ratio ^(3)		28.12	%		57.37	%		40.25	%		37.92	%		30.19	%
Banking Segment:
Net interest margin ^(1)		3.08	%		3.11	%		3.40	%		3.42	%		3.42	%
Net interest margin (taxable equivalent)^(2):
As reported		3.09	%		3.11	%		3.41	%		3.43	%		3.43	%
Impact of purchase accounting		8 bps			11 bps			7 bps			8 bps			10 bps
Accretion of discount on loans ($000's)		2,226			3,334			1,870			2,173			2,858
Net recoveries (charge-offs) ($000's)		1,556			(2,884	)		(419	)		21			(2,735	)
Return on average assets		1.20	%		0.89	%		1.44	%		1.31	%		1.41	%
Fee income ratio		10.5	%		10.0	%		9.6	%		9.8	%		9.9	%
Efficiency ratio		51.4	%		51.2	%		48.4	%		48.9	%		48.9	%
Employees' compensation and benefits ($000's)		30,641			30,603			32,681			34,526			35,934
Broker-Dealer Segment:
Net revenue ($000's) ^(4)		118,703			113,241			104,498			106,919			114,184
Employees' compensation and benefits ($000's)		69,930			65,290			62,429			60,552			70,274
Variable compensation expense ($000's)		39,929			34,798			30,821			32,042			42,567
Compensation as a % of net revenue		58.9	%		57.7	%		59.7	%		56.6	%		61.5	%
Pre-tax margin ^(5)		18.2	%		16.3	%		12.8	%		18.5	%		15.3	%
Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		2,091,444			2,301,007			1,607,330			1,895,731			2,832,136
Refinancings		152,257			150,643			125,423			147,511			211,075
Total mortgage loan originations - volume		2,243,701			2,451,650			1,732,753			2,043,242			3,043,211
Mortgage loan sales - volume ($000's)		2,395,357			2,115,706			1,661,521			2,038,990			3,419,950
Net gains from mortgage loan sales (basis points):
Loans sold to third parties		199			207			193			211			227
Impact of loans retained by banking segment		(1	)		(6	)		(7	)		(19	)		(9	)
As reported		198			201			186			192			218
Mortgage servicing rights asset ($000's) ^(6)		104,951			95,101			103,314			100,825			156,539
Employees' compensation and benefits ($000's)		64,016			70,982			62,355			64,940			86,079
Variable compensation expense ($000's)		33,070			36,249			25,573			26,724			44,312
________________________________
(1) Net interest margin is defined as net interest income divided by average interest-earning assets.
(2) Net interest margin (taxable equivalent), a non-GAAP measure, is defined as taxable equivalent net interest income divided by average interest-earning assets. Taxable equivalent adjustments are based on the applicable 21% federal income tax rate for all periods presented. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. The taxable equivalent adjustments to interest income for Hilltop (consolidated) were $0.6 million, $0.1 million, $0.1 million, $0.3 million and $0.4 million, respectively, for the periods presented and for the banking segment were $0.2 million for each of the periods presented.
(3) Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share.
(4) Net revenue is defined as the sum of total broker-dealer net interest income and total broker-dealer noninterest income.
(5) Pre-tax margin is defined as income before income taxes divided by net revenue.
(6) Reported on a consolidated basis and therefore does not include mortgage servicing rights assets related to loans serviced for the banking segment, which are eliminated in consolidation.

	September 30,		June 30,		March 31,		December 31,		September 30,
Capital Ratios	2023		2023		2023		2022		2022
Tier 1 capital (to average assets):
PlainsCapital	10.62	%	10.28	%	10.69	%	10.26	%	10.29	%
Hilltop	11.92	%	11.47	%	11.82	%	11.47	%	11.41	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital	15.31	%	14.48	%	14.97	%	14.98	%	14.68	%
Hilltop	18.60	%	17.61	%	17.99	%	18.23	%	17.45	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital	15.31	%	14.48	%	14.97	%	14.98	%	14.68	%
Hilltop	18.60	%	17.61	%	17.99	%	18.23	%	17.45	%
Total capital (to risk-weighted assets):
PlainsCapital	16.45	%	15.56	%	15.94	%	15.91	%	15.54	%
Hilltop	21.54	%	20.41	%	20.75	%	20.98	%	20.07	%

	September 30,			June 30,			March 31,			December 31,			September 30,
Non-Performing Assets Portfolio Data	2023			2023			2023			2022			2022
Loans accounted for on a non-accrual basis ($000's):
Commercial real estate		7,339			3,552			1,973			4,269			4,735
Commercial and industrial		10,190			21,442			10,807			9,095			12,078
Construction and land development		760			593			199			198			1
1-4 family residential		13,202			13,360			14,387			15,941			16,968
Consumer		7			9			12			14			16
Broker-dealer		—			—			—			—			—
		31,498			38,956			27,378			29,517			33,798
Troubled debt restructurings included in accruing loans held for investment ($000's)^(1)		—			—			—			803			825
Non-performing loans ($000's) ^(1)		31,498			38,956			27,378			30,320			34,623
Non-performing loans as a % of total loans ($000's) ^(1)		0.34	%		0.40	%		0.30	%		0.33	%		0.39	%
Other real estate owned ($000's)		5,386			3,481			3,202			2,325			1,637
Other repossessed assets ($000's)		—			—			—			—			—
Non-performing assets ($000's) ^(1)		36,884			42,437			30,580			32,645			36,260
Non-performing assets as a % of total assets ($000's) ^(1)		0.22	%		0.25	%		0.18	%		0.20	%		0.22	%
Loans past due 90 days or more and still accruing ($000's) ^(2)		106,346			130,036			114,523			92,099			96,532
_____________________________
(1) Effective January 1, 2023, we adopted Accounting Standards Update (“ASU”) 2022-02 which eliminated the recognition and measurement guidance on troubled debt restructurings for creditors. Therefore, we no longer present troubled debt restructurings as a component of non-performing loans and assets.
(2) Loans past due 90 days or more and still accruing were primarily comprised of loans held for sale and guaranteed by U.S. government agencies, including loans that are subject to repurchase, or have been repurchased, by PrimeLending.

	Three Months Ended September 30,
	2023							2022
	Average			Interest		Annualized		Average			Interest		Annualized
	Outstanding			Earned		Yield or		Outstanding			Earned		Yield or
Net Interest Margin (Taxable Equivalent) Details ^(1)	Balance			or Paid		Rate		Balance			or Paid		Rate
Assets
Interest-earning assets
Loans held for sale	$	1,075,518		$	15,649	5.82	%	$	1,166,265		$	14,414	4.94	%
Loans held for investment, gross ^(2)		7,972,604			126,753	6.31	%		7,911,833			94,751	4.75	%
Investment securities - taxable		2,690,977			27,166	4.04	%		2,883,412			19,642	2.72	%
Investment securities - non-taxable ^(3)		315,294			3,069	3.89	%		312,312			2,817	3.61	%
Federal funds sold and securities purchased under agreements to resell		142,324			2,313	6.45	%		137,728			1,309	3.77	%
Interest-bearing deposits in other financial institutions		1,550,991			20,320	5.20	%		1,780,220			9,542	2.13	%
Securities borrowed		1,371,625			17,683	5.04	%		1,116,837			10,938	3.83	%
Other		69,827			4,407	25.04	%		56,331			3,425	24.12	%
Interest-earning assets, gross ^(3)		15,189,160			217,360	5.68	%		15,364,938			156,838	4.05	%
Allowance for credit losses		(110,398	)						(95,083	)
Interest-earning assets, net		15,078,762							15,269,855
Noninterest-earning assets		1,448,834							1,399,228
Total assets	$	16,527,596						$	16,669,083
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	7,893,384		$	64,290	3.23	%	$	7,136,779		$	12,525	0.70	%
Securities loaned		1,303,883			16,169	4.92	%		980,530			9,407	3.81	%
Notes payable and other borrowings		1,527,371			20,646	5.36	%		1,262,985			11,054	3.47	%
Total interest-bearing liabilities		10,724,638			101,105	3.74	%		9,380,294			32,986	1.40	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		3,347,752							4,543,067
Other liabilities		362,133							685,843
Total liabilities		14,434,523							14,609,204
Stockholders’ equity		2,066,564							2,032,717
Noncontrolling interest		26,509							27,162
Total liabilities and stockholders' equity	$	16,527,596						$	16,669,083
Net interest income ^(3)				$	116,255						$	123,852
Net interest spread ^(3)						1.94	%						2.65	%
Net interest margin ^(3)						3.04	%						3.20	%
________________________________
(1) Information presented on a consolidated basis.
(2) Average balance includes non-accrual loans.
(3) Presented on a taxable-equivalent basis with annualized taxable equivalent adjustments based on the applicable 21% federal income tax rate for the periods presented. The adjustment to interest income was $0.6 million and $0.4 million for the three months ended September 30, 2023 and 2022, respectively.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, October 20, 2023. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review third quarter 2023 financial results. Interested parties can access the conference call by dialing 1-888-259-6580 (North America) and then using the access code 31393751. The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop-holdings.com).

About Hilltop

Hilltop Holdings is a Dallas-based financial holding company. Its primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank. PlainsCapital Bank’s wholly owned subsidiary, PrimeLending, provides residential mortgage lending throughout the United States. Hilltop Holdings’ broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. At September 30, 2023, Hilltop employed approximately 3,900 people and operated approximately 336 locations in 48 states. Hilltop Holdings’ common stock is listed on the New York Stock Exchange under the symbol “HTH.” Find more information at Hilltop-Holdings.com, PlainsCapital.com, PrimeLending.com and HilltopSecurities.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements speak only as of the date they are made and, except as required by law, we do not assume any duty to update forward-looking statements. Such forward-looking statements include, but are not limited to, statements concerning such things as our plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact, and may be identified by words such as “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “position,” “probable,” “progressing,” “projects,” “prudent,” “seeks,” “should,” “target,” “view,” “will” or “would” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: (i) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (ii) effectiveness of our data security controls in the face of cyber attacks and any legal, reputational and financial risks following a cybersecurity incident; (iii) changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil; (iv) changes in the interest rate environment; (v) risks associated with concentration in real estate related loans and (vi) disruptions to the economy and the U.S. banking system caused by bank failures during early 2023, risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators, including increases in the cost of our deposit insurance assessments. For further discussion of such factors, see the risk factors described in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other reports that are filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement.