Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2024

1/30/25 4:45:00 PM ET

Major Banks

Finance

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Hilltop Holdings Inc. (NYSE:HTH) ("Hilltop") today announced financial results for the fourth quarter and full year 2024. Hilltop produced income to common stockholders of $35.5 million, or $0.55 per diluted share, for the fourth quarter of 2024, compared to $28.7 million, or $0.44 per diluted share, for the fourth quarter of 2023. Income to common stockholders for the full year 2024 was $113.2 million, or $1.74 per diluted share, compared to $109.6 million, or $1.69 per diluted share, for the full year 2023. Hilltop's financial results for the fourth quarter, compared with the same period in 2023, included an increase in net interest income and a reversal of credit losses, partially offset by an increase in noninterest expenses within the banking segment, net revenues and noninterest expenses increased within the broker-dealer segment, and the mortgage origination segment had an increase in noninterest income. Hilltop's financial results for the full year 2024, compared with 2023, included a decline in net interest income, partially offset by a decline in the provision for credit losses within the banking segment, net revenues and noninterest expenses increased within the broker-dealer segment, and the mortgage origination segment had decreases in both noninterest income and expense.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per common share, a 6% increase from the prior quarter, payable on February 27, 2025, to all common stockholders of record as of the close of business on February 13, 2025. Additionally, the Hilltop Board of Directors authorized a new stock repurchase program through January 2026, under which Hilltop may repurchase, in the aggregate, up to $100.0 million of its outstanding common stock. During 2024, Hilltop paid $19.9 million to repurchase an aggregate of 640,042 shares of its common stock at an average price of $31.04 per share pursuant to the 2024 stock repurchase program. These shares were returned to the pool of authorized but unissued shares of common stock.

On January 15, 2025, Hilltop redeemed all of its outstanding 5% senior notes due April 15, 2025 at a redemption price equal to the aggregate principal amount of $150 million, plus accrued and unpaid interest using cash on hand. In addition, on January 27, 2025, Hilltop announced that its merchant bank subsidiary entered into a definitive agreement to sell all of the capital stock of Moser Acquisition, Inc. Our approximate 30% aggregate interest in Moser Holdings, LLC, which owns Moser Acquisition, Inc., is expected to result in an estimated net gain on sale of approximately $23 million to $27 million. The closing of the transaction, which is expected to occur in the first quarter of 2025, is subject to customary closing conditions.

The extent of the impact of uncertain economic conditions on our financial performance during 2025 will depend in part 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, changes in funding costs, inflationary pressures, changes in the political environment and international armed conflicts and their impact on supply chains.

Jeremy B. Ford, President and CEO of Hilltop, said, "Over the course of 2024, Hilltop adapted to a new operating environment as the Federal Reserve cut interest rates for the first time since the spring of 2020, and we delivered a year over year increase in pre-tax profitability. During the fourth quarter, PlainsCapital Bank grew customer deposit balances and improved loan pipeline pull through rates. HilltopSecurities capitalized on tailwinds in its Structured Finance and Wealth Management business lines to deliver a pre-tax margin of 16%. PrimeLending realized a 24% increase in origination volume, when compared to the fourth quarter of 2023, but continued to face a challenging mortgage market due to a lack of inventory and stressed affordability for potential home buyers.

"As we enter 2025, we remain focused on protecting our balance sheet and executing on our strategic plan to further build on Hilltop's franchise value by serving our customers and the communities in which we operate."

Fourth Quarter 2024 Highlights for Hilltop:

The reversal of credit losses was $5.9 million during the fourth quarter of 2024, compared to a reversal of credit losses of $1.3 million in the third quarter of 2024 and a provision for credit losses of $1.3 million in the fourth quarter of 2023;
- The reversal of credit losses during the fourth quarter of 2024 was primarily driven by net charge-offs, loan portfolio changes and changes in the U.S. economic outlook associated with collectively evaluated loans, partially offset by a build in the allowance related to specific reserves within the banking segment since the prior quarter.
For the fourth quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was $73.7 million, compared to $69.2 million in the fourth quarter of 2023, a 6.4% increase;
- Mortgage loan origination production volume was $2.3 billion during the fourth quarter of 2024, compared to $1.8 billion in the fourth quarter of 2023;
- Net gains from mortgage loans sold to third parties increased to 226 basis points during the fourth quarter of 2024, compared to 224 basis points in the third quarter of 2024.
Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for the fourth quarter of 2024 were 0.92% and 6.50%, respectively, compared to 0.75% and 5.46%, respectively, for the fourth quarter of 2023;
Hilltop's book value per common share increased to $33.71 at December 31, 2024, compared to $33.51 at September 30, 2024;
Hilltop's total assets were $16.3 billion and $15.9 billion at December 31, 2024 and September 30, 2024, respectively;
Loans¹, net of allowance for credit losses, were $7.5 billion at both December 31, 2024 and September 30, 2024, respectively;
Non-accrual loans were $88.1 million, or 1.00% of total loans, at December 31, 2024, compared to $91.2 million, or 1.02% of total loans, at September 30, 2024;
Loans held for sale decreased by 8.0% from September 30, 2024 to $858.7 million at December 31, 2024;
Total deposits were $11.1 billion and $10.8 billion at December 31, 2024 and September 30, 2024, respectively;
- Total estimated uninsured deposits were $5.7 billion, or approximately 52% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $363.1 million, were $5.3 billion, or approximately 48% of total deposits, at December 31, 2024.
Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 12.57% and a Common Equity Tier 1 Capital Ratio of 21.23% at December 31, 2024;
Hilltop's consolidated net interest margin⁴decreased to 2.72% for the fourth quarter of 2024, compared to 2.84% in the third quarter of 2024;
For the fourth quarter of 2024, noninterest income was $195.6 million, compared to $179.0 million in the fourth quarter of 2023, an 9.3% increase;
For fourth quarter of 2024, noninterest expense was $262.8 million, compared to $250.8 million in the fourth quarter of 2023, a 4.7% increase; and
Hilltop's effective tax rate was 14.2% during the fourth quarter of 2024, compared to 18.7% during the same period in 2023.
- The effective tax rate for the fourth quarter of 2024 was lower than the applicable statutory rate primarily due to changes in accumulated tax reserves, state income tax reductions realized during the quarter and investments in tax-exempt instruments, partially offset by the impact of nondeductible expenses, nondeductible 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 $363.7 million and $340.4 million at December 31, 2024 and September 30, 2024, 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 through December 31, 2024. As of January 1, 2025, Hilltop had fully captured the day-one regulatory capital effects resulting from the implementation of CECL.
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	December 31,			September 30,			June 30,			March 31,			December 31,
(in 000's)	2024			2024			2024			2024			2023
Cash and due from banks	$	2,298,977		$	1,961,627		$	798,300		$	1,710,066		$	1,858,700
Federal funds sold		650			3,650			5,650			650			650
Assets segregated for regulatory purposes		70,963			55,628			51,046			70,717			57,395
Securities purchased under agreements to resell		88,728			81,766			111,914			91,608			80,011
Securities:
Trading, at fair value		524,916			540,836			721,384			657,700			515,991
Available for sale, at fair value, net ⁽¹⁾		1,396,549			1,405,700			1,433,107			1,480,555			1,507,595
Held to maturity, at amortized cost, net ⁽¹⁾		737,899			754,824			777,456			790,550			812,677
Equity, at fair value		297			287			254			315			321
		2,659,661			2,701,647			2,932,201			2,929,120			2,836,584
Loans held for sale		858,665			933,724			1,264,437			842,324			943,846
Loans held for investment, net of unearned income		7,950,551			7,979,630			8,173,520			8,062,693			8,079,745
Allowance for credit losses		(101,116	)		(110,918	)		(115,082	)		(104,231	)		(111,413	)
Loans held for investment, net		7,849,435			7,868,712			8,058,438			7,958,462			7,968,332

Broker-dealer and clearing organization receivables		1,452,366			1,220,784			1,297,175			1,473,561			1,573,931
Premises and equipment, net		148,245			157,803			161,746			165,557			168,856
Operating lease right-of-use assets		90,563			92,041			93,994			95,343			88,580
Mortgage servicing assets		5,723			45,742			52,902			95,591			96,662
Other assets		470,073			528,839			517,811			501,244			517,545
Goodwill		267,447			267,447			267,447			267,447			267,447
Other intangible assets, net		6,633			6,995			7,429			7,943			8,457
Total assets	$	16,268,129		$	15,926,405		$	15,620,490		$	16,209,633		$	16,466,996

Deposits:
Noninterest-bearing	$	2,768,707		$	2,831,539		$	2,845,441		$	3,028,543		$	3,007,101
Interest-bearing		8,296,615			7,959,908			7,528,415			7,855,553			8,056,091
Total deposits		11,065,322			10,791,447			10,373,856			10,884,096			11,063,192
Broker-dealer and clearing organization payables		1,331,902			1,110,373			1,285,226			1,436,462			1,430,734
Short-term borrowings		834,023			914,645			897,613			892,574			900,038
Securities sold, not yet purchased, at fair value		57,234			47,773			75,546			60,562			34,872
Notes payable		347,667			347,533			347,402			347,273			347,145
Operating lease liabilities		109,103			110,799			113,096			114,518			109,002
Other liabilities		304,566			397,976			365,140			314,718			431,684
Total liabilities		14,049,817			13,720,546			13,457,879			14,050,203			14,316,667

Common stock		650			650			650			653			652
Additional paid-in capital		1,052,219			1,050,497			1,047,523			1,049,831			1,054,662
Accumulated other comprehensive loss		(111,497	)		(98,168	)		(119,171	)		(119,606	)		(121,505	)
Retained earnings		1,248,593			1,224,117			1,205,467			1,201,013			1,189,222
Deferred compensation employee stock trust, net		—			—			1			115			228
Employee stock trust		—			—			(1	)		(142	)		(292	)
Total Hilltop stockholders' equity		2,189,965			2,177,096			2,134,469			2,131,864			2,122,967
Noncontrolling interests		28,347			28,763			28,142			27,566			27,362
Total stockholders' equity		2,218,312			2,205,859			2,162,611			2,159,430			2,150,329
Total liabilities & stockholders' equity	$	16,268,129		$	15,926,405		$	15,620,490		$	16,209,633		$	16,466,996

________________
(1)	At December 31, 2024, the amortized cost of the available for sale securities portfolio was $1,498,415, while the fair value of the held to maturity securities portfolio was $649,872.


	Three Months Ended								Year Ended
Consolidated Income Statements	December 31,			September 30,			December 31,		December 31,		December 31,
(in 000's, except per share data)	2024			2024			2023		2024		2023
Interest income:
Loans, including fees	$	131,726		$	139,821		$	138,096	$	544,505	$	542,274
Securities borrowed		17,492			19,426			18,659		77,785		71,924
Securities:
Taxable		29,212			26,265			28,763		107,007		108,250
Tax-exempt		2,944			2,438			2,545		10,186		10,763
Other		27,216			23,092			28,704		96,906		105,164
Total interest income		208,590			211,042			216,767		836,389		838,375

Interest expense:
Deposits		67,411			70,641			68,339		275,291		223,179
Securities loaned		16,407			18,499			17,247		72,614		65,175
Short-term borrowings		10,992			10,878			13,495		44,134		57,857
Notes payable		3,910			3,555			3,596		14,659		15,448
Other		4,386			2,426			2,864		11,893		9,869
Total interest expense		103,106			105,999			105,541		418,591		371,528

Net interest income		105,484			105,043			111,226		417,798		466,847
Provision for (reversal of) credit losses		(5,852	)		(1,270	)		1,265		941		18,392
Net interest income after provision for (reversal of) credit losses		111,336			106,313			109,961		416,857		448,455

Noninterest income:
Net gains from sale of loans and other mortgage production income		43,553			47,816			36,387		190,021		172,150
Mortgage loan origination fees		30,111			32,119			32,844		123,066		144,539
Securities commissions and fees		35,338			30,434			27,380		125,655		100,532
Investment and securities advisory fees and commissions		37,514			42,220			35,780		142,952		134,327
Other		49,074			47,854			46,587		189,262		177,425
Total noninterest income		195,590			200,443			178,978		770,956		728,973

Noninterest expense:
Employees' compensation and benefits		173,334			177,987			160,390		687,149		678,310
Occupancy and equipment, net		25,707			22,317			21,524		91,233		89,326
Professional services		12,791			11,645			13,170		44,437		49,100
Other		50,925			52,363			55,761		210,737		211,573
Total noninterest expense		262,757			264,312			250,845		1,033,556		1,028,309

Income before income taxes		44,169			42,444			38,094		154,257		149,119
Income tax expense		6,285			9,539			7,132		31,047		31,140
Net income		37,884			32,905			30,962		123,210		117,979
Less: Net income attributable to noncontrolling interest		2,365			3,212			2,291		9,997		8,333
Income attributable to Hilltop	$	35,519		$	29,693		$	28,671	$	113,213	$	109,646

Earnings per common share:
Basic	$	0.55		$	0.46		$	0.44	$	1.74	$	1.69
Diluted	$	0.55		$	0.46		$	0.44	$	1.74	$	1.69

Cash dividends declared per common share	$	0.17		$	0.17		$	0.16	$	0.68	$	0.64

Weighted average shares outstanding:
Basic		64,935			64,928			65,136		65,036		65,043
Diluted		64,943			64,946			65,138		65,046		65,045


	Three Months Ended December 31, 2024
Segment Results							Mortgage						All Other and			Hilltop
(in 000's)	Banking			Broker-Dealer			Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	94,946		$	12,046		$	(3,627	)	$	(3,277	)	$	5,396		$	105,484
Provision for (reversal of) credit losses		(5,665	)		(187	)		—			—			—			(5,852	)
Noninterest income		11,411			114,321			73,740			1,767			(5,649	)		195,590
Noninterest expense		61,426			106,181			80,022			15,379			(251	)		262,757
Income (loss) before taxes	$	50,596		$	20,373		$	(9,909	)	$	(16,889	)	$	(2	)	$	44,169


	Year Ended December 31, 2024
Segment Results						Mortgage						All Other and			Hilltop
(in 000's)	Banking		Broker-Dealer			Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	372,546	$	48,942		$	(16,867	)	$	(12,838	)	$	26,015		$	417,798
Provision for (reversal of) credit losses		992		(51	)		—			—			—			941
Noninterest income		43,295		422,801			313,229			18,515			(26,884	)		770,956
Noninterest expense		232,954		408,283			330,088			63,110			(879	)		1,033,556
Income (loss) before taxes	$	181,895	$	63,511		$	(33,726	)	$	(57,433	)	$	10		$	154,257


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
Selected Financial Data	2024			2024			2023			2024			2023

Hilltop Consolidated:
Return on average stockholders' equity		6.50	%		5.51	%		5.46	%		5.29	%		5.31	%
Return on average assets		0.92	%		0.84	%		0.75	%		0.78	%		0.71	%
Net interest margin ⁽¹⁾		2.72	%		2.84	%		2.96	%		2.81	%		3.07	%
Net interest margin (taxable equivalent) ⁽²⁾:
As reported		2.74	%		2.85	%		2.98	%		2.83	%		3.09	%
Impact of purchase accounting		3 bps			2 bps			4 bps			4 bps			6 bps
Book value per common share ($)		33.71			33.51			32.58			33.71			32.58
Shares outstanding, end of period (000's)		64,968			64,960			65,153			64,968			65,153
Dividend payout ratio ⁽³⁾		31.08	%		37.17	%		36.35	%		39.06	%		37.97	%

Banking Segment:
Net interest margin ⁽¹⁾		2.98	%		3.05	%		2.94	%		3.04	%		3.13	%
Net interest margin (taxable equivalent)⁽²⁾:
As reported		2.99	%		3.06	%		2.95	%		3.04	%		3.14	%
Impact of purchase accounting		4 bps			3 bps			5 bps			4 bps			7 bps
Accretion of discount on loans ($000's)		1,076			737			1,202			5,057			8,632
Net recoveries (charge-offs) ($000's)		(3,950	)		(2,894	)		(674	)		(11,238	)		(2,421	)
Return on average assets		1.24	%		1.14	%		1.12	%		1.10	%		1.15	%
Fee income ratio		10.7	%		10.3	%		11.2	%		10.4	%		10.3	%
Efficiency ratio		57.8	%		55.2	%		53.2	%		56.0	%		51.0	%
Employees' compensation and benefits ($000's)		33,313			31,920			29,420			130,974			123,345

Broker-Dealer Segment:
Net revenue ($000's) ⁽⁴⁾		126,367			124,258			119,989			471,743			456,432
Employees' compensation and benefits ($000's)		75,150			75,912			68,746			286,700			266,395
Variable compensation expense ($000's)		42,484			42,569			39,435			153,062			144,984
Compensation as a % of net revenue		59.5	%		61.1	%		57.3	%		60.8	%		58.4	%
Pre-tax margin ⁽⁵⁾		16.1	%		13.7	%		16.8	%		13.5	%		16.1	%

Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		1,909,706			2,096,009			1,698,009			7,759,812			7,701,758
Refinancings		343,400			211,454			117,018			856,541			541,373
Total mortgage loan originations - volume		2,253,106			2,307,463			1,815,027			8,616,353			8,243,131
Mortgage loan sales - volume ($000's)		2,065,356			2,569,678			1,874,001			8,223,734			8,046,585
Net gains from mortgage loan sales (basis points):
Loans sold to third parties		226			224			189			226			198
Impact of loans retained by banking segment		(5	)		0			0			(4	)		(4	)
As reported		221			224			189			222			194
Mortgage servicing rights asset ($000's) ⁽⁶⁾		5,723			45,742			96,662			5,723			96,662
Employees' compensation and benefits ($000's)		56,402			60,573			53,766			231,293			251,119
Variable compensation expense ($000's)		30,784			33,862			24,085			121,720			118,977

________________
(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 $0.7 million, $0.6 million, $0.6 million, $2.5 million and $2.7 million, respectively, for the periods presented and for the banking segment were $0.2 million, $0.2 million, $0.2 million, $0.6 million and $0.7 million, respectively, for 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.

	December 31,			September 30,			June 30,			March 31,			December 31,
Capital Ratios	2024			2024			2024			2024			2023
Tier 1 capital (to average assets):
PlainsCapital		9.99	%		10.34	%		11.36	%		11.00	%		10.55	%
Hilltop		12.57	%		12.95	%		12.87	%		12.49	%		12.23	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		15.35	%		14.94	%		15.58	%		15.87	%		15.44	%
Hilltop		21.23	%		20.48	%		19.45	%		19.73	%		19.32	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		15.35	%		14.94	%		15.58	%		15.87	%		15.44	%
Hilltop		21.23	%		20.48	%		19.45	%		19.73	%		19.32	%
Total capital (to risk-weighted assets):
PlainsCapital		16.54	%		16.13	%		16.77	%		17.06	%		16.58	%
Hilltop		24.40	%		23.68	%		22.57	%		22.79	%		22.34	%


	December 31,			September 30,			June 30,			March 31,			December 31,
Non-Performing Assets Portfolio Data	2024			2024			2024			2024			2023
Loans accounted for on a non-accrual basis ($000's):
Commercial real estate:
Non-owner occupied	$	7,166		$	8,042		$	6,894		$	34,661		$	36,440
Owner occupied		6,092			2,410			6,437			4,846			5,098
Commercial and industrial		59,025			66,929			80,755			12,165			9,502
Construction and land development		3,003			2,682			485			698			3,480
1-4 family residential		12,863			11,123			11,092			12,363			13,801
Consumer		—			—			1			3			6
Broker-dealer		—			—			—			—			—
Non-accrual loans ($000's)	$	88,149		$	91,186		$	105,664		$	64,736		$	68,327

Non-accrual loans as a % of total loans		1.00	%		1.02	%		1.12	%		0.73	%		0.76	%

Other real estate owned ($000's)		2,848			2,744			2,973			5,254			5,095

Other repossessed assets ($000's)		98			413			464			472			—

Non-performing assets ($000's)		91,095			94,343			109,101			70,462			73,422

Non-performing assets as a % of total assets		0.56	%		0.59	%		0.70	%		0.43	%		0.45	%

Loans past due 90 days or more and still accruing ($000's) ⁽¹⁾		22,090			140,763			122,451			112,799			115,090

________________
(1)	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 December 31,
	2024							2023
	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	$	1,011,036		$	13,278	5.25	%	$	841,715		$	13,239	6.29	%
Loans held for investment, gross ⁽²⁾		7,931,572			118,448	5.93	%		7,902,814			124,857	6.27	%
Investment securities - taxable		2,443,886			29,213	4.78	%		2,629,808			28,763	4.37	%
Investment securities - non-taxable ⁽³⁾		360,622			3,666	4.07	%		313,714			3,157	12.08	%
Federal funds sold and securities purchased under agreements to resell		96,066			1,797	7.42	%		153,785			2,082	5.37	%
Interest-bearing deposits in other financial institutions		2,033,482			23,052	4.50	%		1,646,885			21,948	5.29	%
Securities borrowed		1,361,481			17,492	5.03	%		1,371,092			18,659	5.33	%
Other		130,624			2,367	7.19	%		48,120			4,675	38.54	%
Interest-earning assets, gross ⁽³⁾		15,368,769			209,313	5.40	%		14,907,933			217,380	5.79	%
Allowance for credit losses		(110,191	)						(110,832	)
Interest-earning assets, net		15,258,578							14,797,101
Noninterest-earning assets		1,065,783							1,473,839
Total assets	$	16,324,361						$	16,270,940

Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	8,176,034		$	67,411	3.27	%	$	7,966,770		$	68,339	3.40	%
Securities loaned		1,353,195			16,407	4.81	%		1,324,887			17,247	5.16	%
Notes payable and other borrowings		1,399,178			19,288	5.47	%		1,439,297			19,955	5.50	%
Total interest-bearing liabilities		10,928,407			103,106	3.74	%		10,730,954			105,541	3.90	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		2,795,588							3,096,244
Other liabilities		399,964							335,307
Total liabilities		14,123,959							14,162,505
Stockholders' equity		2,172,640							2,081,833
Noncontrolling interest		27,762							26,602
Total liabilities and stockholders' equity	$	16,324,361						$	16,270,940

Net interest income ⁽³⁾				$	106,207						$	111,839
Net interest spread ⁽³⁾						1.66	%						1.89	%
Net interest margin ⁽³⁾						2.74	%						2.98	%


	Year Ended December 31,
	2024							2023
	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	$	934,983		$	53,073	5.60	%	$	944,470		$	53,736	5.69	%
Loans held for investment, gross ⁽²⁾		7,921,528			491,432	6.20	%		7,950,878			488,538	6.23	%
Investment securities - taxable		2,537,856			107,007	4.16	%		2,726,763			108,250	3.97	%
Investment securities - non-taxable ⁽³⁾		324,684			12,638	3.84	%		363,493			13,463	3.70	%
Federal funds sold and securities purchased under agreements to resell		98,337			7,232	7.35	%		145,696			8,954	6.15	%
Interest-bearing deposits in other financial institutions		1,526,748			75,633	4.95	%		1,597,865			79,657	4.99	%
Securities borrowed		1,355,554			77,785	5.66	%		1,409,765			71,924	5.03	%
Other		159,141			14,041	8.82	%		65,912			16,554	25.11	%
Interest-earning assets, gross ⁽³⁾		14,858,831			838,841	5.65	%		15,204,842			841,076	5.53	%
Allowance for credit losses		(110,123	)						(103,975	)
Interest-earning assets, net		14,748,708							15,100,867
Noninterest-earning assets		1,130,198							1,404,393
Total assets	$	15,878,906						$	16,505,260

Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	7,822,536		$	275,291	3.52	%	$	7,711,570		$	223,179	2.89	%
Securities loaned		1,335,155			72,614	5.44	%		1,331,443			65,175	4.90	%
Notes payable and other borrowings		1,397,313			70,686	5.06	%		1,579,170			83,174	5.27	%
Total interest-bearing liabilities		10,555,004			418,591	3.97	%		10,622,183			371,528	3.50	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		2,824,450							3,441,437
Other liabilities		332,340							351,938
Total liabilities		13,711,794							14,415,558
Stockholders' equity		2,139,732							2,063,174
Noncontrolling interest		27,380							26,528
Total liabilities and stockholders' equity	$	15,878,906						$	16,505,260

Net interest income ⁽³⁾				$	420,250						$	469,548
Net interest spread ⁽³⁾						1.68	%						2.03	%
Net interest margin ⁽³⁾						2.83	%						3.09	%

________________
(1)	Information presented on a consolidated basis (dollars in thousands).
(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 $0.7 million and $0.6 million for the three months ended December 31, 2024 and 2023, respectively, and $2.5 million and $2.7 million for the year ended December 31, 2024 and 2023, respectively.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, January 31, 2025. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review fourth quarter and full year 2024 financial results. Interested parties can access the conference call by dialing 800-549-8228 (Toll Free North America) or (+1) 289-819-1520 (International Toll) and then using the conference ID 03956. The conference call also will be webcast simultaneously on Hilltop's Investor Relations website (http://ir.hilltop.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 December 31, 2024, Hilltop employed approximately 3,650 people and operated 280 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.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 "aim," "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," "steady," "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; (vi) the effects of indebtedness on our ability to manage our business successfully, including the restrictions imposed by the indenture governing our indebtedness; (vii) disruptions to the economy and financial services industry, 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; (viii) cost and availability of capital; (ix) changes in state and federal laws, regulations or policies affecting one or more of our business segments, including changes in policies under the new Presidential administration, changes in regulatory fees, deposit insurance premiums, capital requirements and the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"); (x) changes in key management; (xi) competition in our banking, broker-dealer, and mortgage origination segments from other banks and financial institutions as well as investment banking and financial advisory firms, mortgage bankers, asset-based non-bank lenders and government agencies; (xii) legal and regulatory proceedings; (xiii) risks associated with merger and acquisition integration; and (xiv) our ability to use excess capital in an effective manner. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130136611/en/

Investor Relations Contact:

Matt Dunn

214-525-4636

[email protected]

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Date	Price Target	Rating	Analyst
4/2/2025		Underperform → Mkt Perform	Raymond James
12/19/2024		Mkt Perform → Underperform	Raymond James
1/5/2024		Underperform → Mkt Perform	Raymond James
7/7/2022		Mkt Perform → Underperform	Raymond James
7/26/2021	$35.00 → $34.00	Equal-Weight	Stephens & Co.
7/26/2021		Outperform → Market Perform	Raymond James

Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2024

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