Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2024

10/24/24 4:45:00 PM ET

Major Banks

Finance

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Hilltop Holdings Inc. (NYSE:HTH) ("Hilltop") today announced financial results for the third quarter of 2024. Hilltop produced income to common stockholders of $29.7 million, or $0.46 per diluted share, for the third quarter of 2024, compared to $37.0 million, or $0.57 per diluted share, for the third quarter of 2023. Hilltop's financial results for the third quarter of 2024, compared with the same period in 2023, included a decline in net interest income, partially offset by changes in the provision for credit losses within the banking segment, an increase in net revenues in the structured finance and fixed income services business lines, a decline in net revenues in the wealth management business line and higher noninterest expenses within the broker-dealer segment, while the mortgage origination segment had declines in both noninterest income and expense.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per common share payable on November 22, 2024, to all common stockholders of record as of the close of business on November 8, 2024.

The extent of the impacts of uncertain economic conditions on our financial performance for the remainder of 2024 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, and international armed conflicts and their impact on supply chains.

Jeremy B. Ford, President and CEO of Hilltop, said, "Hilltop continues to demonstrate operational strength despite challenging mortgage conditions and the transitioning interest rate environment. During the quarter, PlainsCapital Bank and HilltopSecurities both increased profitability on a sequential basis, while PrimeLending's results were impacted by lower origination volume and a negative mortgage servicing rights asset fair value mark to market adjustment. As we enter the anticipated rate cutting cycle, we are focused on strategically lowering funding costs, managing asset yields and optimizing total earning assets. We will continue to execute on our long-term strategy of serving our customers, compounding stockholder value and prudently stewarding our capital."

Third Quarter 2024 Highlights for Hilltop:

The reversal of credit losses was $1.3 million during the third quarter of 2024, compared to a provision for credit losses of $10.9 million in the second quarter of 2024 and a reversal of credit losses of $40 thousand in the third quarter of 2023;
- The reversal of credit losses during the third quarter of 2024 was primarily driven by net charge-offs and loan portfolio changes, including a change in the macroeconomic outlook scenario utilized, 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 third quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was $79.9 million, compared to $88.7 million in the third quarter of 2023, a 9.9% decrease;
- Mortgage loan origination production volume was $2.3 billion during the third quarter of 2024, compared to $2.2 billion in the third quarter of 2023;
- Net gains from mortgage loans sold to third parties decreased to 224 basis points during the third quarter of 2024, compared to 233 basis points in the second quarter of 2024.
Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for the third quarter of 2024 were 0.84% and 5.51%, respectively, compared to 0.94% and 7.11%, respectively, for the third quarter of 2023;
Hilltop's book value per common share increased to $33.51 at September 30, 2024, compared to $32.86 at June 30, 2024;
Hilltop's total assets were $15.9 billion and $15.6 billion at September 30, 2024 and June 30, 2024, respectively;
Loans¹, net of allowance for credit losses, were $7.5 billion and $7.7 billion at September 30, 2024 and June 30, 2024, respectively;
Non-accrual loans were $91.2 million, or 1.02% of total loans, at September 30, 2024, compared to $105.7 million, or 1.12% of total loans, at June 30, 2024;
Loans held for sale decreased by 26.2% from June 30, 2024 to $0.9 billion at September 30, 2024;
Total deposits were $10.8 billion and $10.4 billion at September 30, 2024 and June 30, 2024, respectively;
- Total estimated uninsured deposits were $5.3 billion, or approximately 49% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $312.3 million, were $5.0 billion, or approximately 46% of total deposits, at September 30, 2024.
Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 12.95% and a Common Equity Tier 1 Capital Ratio of 20.48% at September 30, 2024;
Hilltop's consolidated net interest margin⁴decreased to 2.84% for the third quarter of 2024, compared to 2.90% in the second quarter of 2024;
For the third quarter of 2024, noninterest income was $200.4 million, compared to $196.8 million in the third quarter of 2023, a 1.8% increase;
For third quarter of 2024, noninterest expense was $264.3 million, compared to $260.0 million in the third quarter of 2023, a 1.7% increase; and
Hilltop's effective tax rate was 22.5% during the third quarter of 2024, compared to 25.2% during the same period in 2023.
- The effective tax rate for the third quarter of 2024 was higher than the applicable statutory rate primarily due to the impact of nondeductible expenses, nondeductible compensation expense and other permanent adjustments, partially offset by the discrete impact of restricted stock vesting during the quarter and investments in tax-exempt instruments.

¹		"Loans" reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $340.4 million and $348.3 million at September 30, 2024 and June 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.
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)	2024			2024			2024			2023			2023
Cash and due from banks	$	1,961,627		$	798,300		$	1,710,066		$	1,858,700		$	1,513,747
Federal funds sold		3,650			5,650			650			650			3,650
Assets segregated for regulatory purposes		55,628			51,046			70,717			57,395			47,491
Securities purchased under agreements to resell		81,766			111,914			91,608			80,011			123,719
Securities:
Trading, at fair value		540,836			721,384			657,700			515,991			578,901
Available for sale, at fair value, net ⁽¹⁾		1,405,700			1,433,107			1,480,555			1,507,595			1,456,238
Held to maturity, at amortized cost, net ⁽¹⁾		754,824			777,456			790,550			812,677			825,079
Equity, at fair value		287			254			315			321			264
		2,701,647			2,932,201			2,929,120			2,836,584			2,860,482
Loans held for sale		933,724			1,264,437			842,324			943,846			1,058,806
Loans held for investment, net of unearned income		7,979,630			8,173,520			8,062,693			8,079,745			8,204,052
Allowance for credit losses		(110,918	)		(115,082	)		(104,231	)		(111,413	)		(110,822	)
Loans held for investment, net		7,868,712			8,058,438			7,958,462			7,968,332			8,093,230

Broker-dealer and clearing organization receivables		1,220,784			1,297,175			1,473,561			1,573,931			1,460,352
Premises and equipment, net		157,803			161,746			165,557			168,856			172,097
Operating lease right-of-use assets		92,041			93,994			95,343			88,580			93,057
Mortgage servicing assets		45,742			52,902			95,591			96,662			104,951
Other assets		528,839			517,811			501,244			517,545			588,751
Goodwill		267,447			267,447			267,447			267,447			267,447
Other intangible assets, net		6,995			7,429			7,943			8,457			9,078
Total assets	$	15,926,405		$	15,620,490		$	16,209,633		$	16,466,996		$	16,396,858

Deposits:
Noninterest-bearing	$	2,831,539		$	2,845,441		$	3,028,543		$	3,007,101		$	3,200,247
Interest-bearing		7,959,908			7,528,415			7,855,553			8,056,091			7,902,850
Total deposits		10,791,447			10,373,856			10,884,096			11,063,192			11,103,097
Broker-dealer and clearing organization payables		1,110,373			1,285,226			1,436,462			1,430,734			1,368,064
Short-term borrowings		914,645			897,613			892,574			900,038			882,999
Securities sold, not yet purchased, at fair value		47,773			75,546			60,562			34,872			51,527
Notes payable		347,533			347,402			347,273			347,145			347,020
Operating lease liabilities		110,799			113,096			114,518			109,002			114,334
Other liabilities		397,976			365,140			314,718			431,684			422,955
Total liabilities		13,720,546			13,457,879			14,050,203			14,316,667			14,289,996

Common stock		650			650			653			652			652
Additional paid-in capital		1,050,497			1,047,523			1,049,831			1,054,662			1,052,867
Accumulated other comprehensive loss		(98,168	)		(119,171	)		(119,606	)		(121,505	)		(145,083	)
Retained earnings		1,224,117			1,205,467			1,201,013			1,189,222			1,171,250
Deferred compensation employee stock trust, net		—			1			115			228			340
Employee stock trust		—			(1	)		(142	)		(292	)		(446	)
Total Hilltop stockholders' equity		2,177,096			2,134,469			2,131,864			2,122,967			2,079,580
Noncontrolling interests		28,763			28,142			27,566			27,362			27,282
Total stockholders' equity		2,205,859			2,162,611			2,159,430			2,150,329			2,106,862
Total liabilities & stockholders' equity	$	15,926,405		$	15,620,490		$	16,209,633		$	16,466,996		$	16,396,858

(1)

At September 30, 2024, the amortized cost of the available for sale securities portfolio was $1,489,070, while the fair value of the held to maturity securities portfolio was $690,846.


	Three Months Ended
Consolidated Income Statements	September 30,			June 30,		March 31,			December 31,		September 30,
(in 000's, except per share data)	2024			2024		2024			2023		2023
Interest income:
Loans, including fees	$	139,821		$	138,627	$	134,331		$	138,096	$	142,402
Securities borrowed		19,426			20,306		20,561			18,659		17,683
Securities:
Taxable		26,265			25,289		26,241			28,763		27,166
Tax-exempt		2,438			2,389		2,415			2,545		2,464
Other		23,092			20,532		26,066			28,704		27,040
Total interest income		211,042			207,143		209,614			216,767		216,755

Interest expense:
Deposits		70,641			68,095		69,144			68,339		64,290
Securities loaned		18,499			18,669		19,039			17,247		16,169
Short-term borrowings		10,878			10,676		11,588			13,495		14,212
Notes payable		3,555			3,604		3,590			3,596		4,026
Other		2,426			2,449		2,632			2,864		2,408
Total interest expense		105,999			103,493		105,993			105,541		101,105

Net interest income		105,043			103,650		103,621			111,226		115,650
Provision for (reversal of) credit losses		(1,270	)		10,934		(2,871	)		1,265		(40	)
Net interest income after provision for (reversal of) credit losses		106,313			92,716		106,492			109,961		115,690

Noninterest income:
Net gains from sale of loans and other mortgage production income		47,816			58,455		40,197			36,387		47,262
Mortgage loan origination fees		32,119			34,398		26,438			32,844		41,478
Securities commissions and fees		30,434			29,510		30,373			27,380		22,864
Investment and securities advisory fees and commissions		42,220			32,992		30,226			35,780		39,662
Other		47,854			37,950		54,384			46,587		45,583
Total noninterest income		200,443			193,305		181,618			178,978		196,849

Noninterest expense:
Employees' compensation and benefits		177,987			169,998		165,830			160,390		173,195
Occupancy and equipment, net		22,317			21,297		21,912			21,524		21,912
Professional services		11,645			10,270		9,731			13,170		12,639
Other		52,363			54,899		52,550			55,761		52,271
Total noninterest expense		264,312			256,464		250,023			250,845		260,017

Income before income taxes		42,444			29,557		38,087			38,094		52,522
Income tax expense		9,539			6,658		8,565			7,132		13,211
Net income		32,905			22,899		29,522			30,962		39,311
Less: Net income attributable to noncontrolling interest		3,212			2,566		1,854			2,291		2,269
Income attributable to Hilltop	$	29,693		$	20,333	$	27,668		$	28,671	$	37,042

Earnings per common share:
Basic	$	0.46		$	0.31	$	0.42		$	0.44	$	0.57
Diluted	$	0.46		$	0.31	$	0.42		$	0.44	$	0.57

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

Weighted average shares outstanding:
Basic		64,928			65,085		65,200			65,136		65,106
Diluted		64,946			65,086		65,214			65,138		65,108


	Three Months Ended September 30, 2024
Segment Results						Mortgage						All Other and			Hilltop
(in 000's)	Banking			Broker-Dealer		Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	93,536		$	12,409	$	(4,417	)	$	(3,303	)	$	6,818		$	105,043
Provision for (reversal of) credit losses		(1,440	)		170		—			—			—			(1,270	)
Noninterest income		10,726			111,849		79,922			4,962			(7,016	)		200,443
Noninterest expense		57,557			107,094		84,223			15,631			(193	)		264,312
Income (loss) before taxes	$	48,145		$	16,994	$	(8,718	)	$	(13,972	)	$	(5	)	$	42,444


	Nine Months Ended September 30, 2024
Segment Results					Mortgage						All Other and			Hilltop
(in 000's)	Banking		Broker-Dealer		Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	277,600	$	36,896	$	(13,240	)	$	(9,560	)	$	20,618		$	312,314
Provision for (reversal of) credit losses		6,657		136		—			—			—			6,793
Noninterest income		31,884		308,480		239,489			16,747			(21,234	)		575,366
Noninterest expense		171,527		302,102		250,067			47,731			(628	)		770,799
Income (loss) before taxes	$	131,300	$	43,138	$	(23,818	)	$	(40,544	)	$	12		$	110,088


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

Hilltop Consolidated:
Return on average stockholders' equity		5.51	%		3.84	%		5.23	%		5.46	%		7.11	%
Return on average assets		0.84	%		0.59	%		0.74	%		0.75	%		0.94	%
Net interest margin ⁽¹⁾		2.84	%		2.90	%		2.85	%		2.96	%		3.02	%
Net interest margin (taxable equivalent) ⁽²⁾:
As reported		2.85	%		2.92	%		2.87	%		2.98	%		3.04	%
Impact of purchase accounting		2 bps			6 bps			4 bps			4 bps			7 bps
Book value per common share ($)		33.51			32.86			32.66			32.58			31.91
Shares outstanding, end of period (000's)		64,960			64,953			65,267			65,153			65,170
Dividend payout ratio ⁽³⁾		37.17	%		54.42	%		40.06	%		36.35	%		28.12	%

Banking Segment:
Net interest margin ⁽¹⁾		3.05	%		3.10	%		3.00	%		2.94	%		3.08	%
Net interest margin (taxable equivalent)⁽²⁾:
As reported		3.06	%		3.10	%		3.00	%		2.95	%		3.09	%
Impact of purchase accounting		3 bps			7 bps			5 bps			5 bps			8 bps
Accretion of discount on loans ($000's)		737			1,945			1,299			1,202			2,226
Net recoveries (charge-offs) ($000's)		(2,894	)		(83	)		(4,311	)		(674	)		1,556
Return on average assets		1.14	%		0.81	%		1.20	%		1.12	%		1.20	%
Fee income ratio		10.3	%		9.1	%		11.5	%		11.2	%		10.5	%
Efficiency ratio		55.2	%		57.0	%		54.1	%		53.2	%		51.4	%
Employees' compensation and benefits ($000's)		31,920			33,352			32,389			29,420			30,641

Broker-Dealer Segment:
Net revenue ($000's) ⁽⁴⁾		124,258			104,271			116,847			119,989			118,703
Employees' compensation and benefits ($000's)		75,912			66,181			69,457			68,746			69,930
Variable compensation expense ($000's)		42,569			32,734			35,274			39,435			39,929
Compensation as a % of net revenue		61.1	%		63.5	%		59.4	%		57.3	%		58.9	%
Pre-tax margin ⁽⁵⁾		13.7	%		6.9	%		16.2	%		16.8	%		18.2	%

Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		2,096,009			2,205,157			1,548,941			1,698,009			2,091,444
Refinancings		211,454			174,141			127,545			117,018			152,257
Total mortgage loan originations - volume		2,307,463			2,379,298			1,676,486			1,815,027			2,243,701
Mortgage loan sales - volume ($000's)		2,569,678			1,838,841			1,749,857			1,874,001			2,395,357
Net gains from mortgage loan sales (basis points):
Loans sold to third parties		224			233			221			189			199
Impact of loans retained by banking segment		0			(5	)		(5	)		0			(1	)
As reported		224			228			216			189			198
Mortgage servicing rights asset ($000's) ⁽⁶⁾		45,742			52,902			95,591			96,662			104,951
Employees' compensation and benefits ($000's)		60,573			61,624			52,694			53,766			64,016
Variable compensation expense ($000's)		33,862			34,886			22,188			24,085			33,070

(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) was $0.6 million for each of the periods presented and for the banking segment were $0.2 million, $0.1 million, $0.1 million, $0.2 million and $0.2 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.


	September 30,			June 30,			March 31,			December 31,			September 30,
Capital Ratios	2024			2024			2024			2023			2023
Tier 1 capital (to average assets):
PlainsCapital		10.34	%		11.36	%		11.00	%		10.55	%		10.62	%
Hilltop		12.95	%		12.87	%		12.49	%		12.23	%		11.92	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		14.94	%		15.58	%		15.87	%		15.44	%		15.31	%
Hilltop		20.48	%		19.45	%		19.73	%		19.32	%		18.60	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		14.94	%		15.58	%		15.87	%		15.44	%		15.31	%
Hilltop		20.48	%		19.45	%		19.73	%		19.32	%		18.60	%
Total capital (to risk-weighted assets):
PlainsCapital		16.13	%		16.77	%		17.06	%		16.58	%		16.45	%
Hilltop		23.68	%		22.57	%		22.79	%		22.34	%		21.54	%


	September 30,			June 30,			March 31,			December 31,			September 30,
Non-Performing Assets Portfolio Data	2024			2024			2024			2023			2023
Loans accounted for on a non-accrual basis ($000's):
Commercial real estate:
Non-owner occupied	$	8,042		$	6,894		$	34,661		$	36,440		$	2,375
Owner occupied		2,410			6,437			4,846			5,098			4,964
Commercial and industrial		66,929			80,755			12,165			9,502			10,190
Construction and land development		2,682			485			698			3,480			760
1-4 family residential		11,123			11,092			12,363			13,801			13,202
Consumer		—			1			3			6			7
Broker-dealer		—			—			—			—			—
Non-accrual loans ($000's)	$	91,186		$	105,664		$	64,736		$	68,327		$	31,498

Non-accrual loans as a % of total loans		1.02	%		1.12	%		0.73	%		0.76	%		0.34	%

Other real estate owned ($000's)		2,744			2,973			5,254			5,095			5,386

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

Non-performing assets ($000's)		94,343			109,101			70,462			73,422			36,884

Non-performing assets as a % of total assets		0.59	%		0.70	%		0.43	%		0.45	%		0.22	%

Loans past due 90 days or more and still accruing ($000's) ⁽¹⁾		140,763			122,451			112,799			115,090			106,346

(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 September 30,
	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	$	990,902		$	14,645	5.91	%	$	1,075,518		$	15,649	5.82	%
Loans held for investment, gross ⁽²⁾		8,024,771			125,176	6.19	%		7,972,604			126,753	6.31	%
Investment securities - taxable		2,477,014			26,264	4.24	%		2,690,977			27,166	4.04	%
Investment securities - non-taxable ⁽³⁾		323,479			3,020	3.73	%		315,294			3,069	3.89	%
Federal funds sold and securities purchased under agreements to resell		97,686			1,845	7.49	%		142,324			2,313	6.45	%
Interest-bearing deposits in other financial institutions		1,373,051			17,800	5.14	%		1,550,991			20,320	5.20	%
Securities borrowed		1,260,420			19,426	6.03	%		1,371,625			17,683	5.04	%
Other		137,105			3,447	9.97	%		69,827			4,407	25.04	%
Interest-earning assets, gross ⁽³⁾		14,684,428			211,623	5.72	%		15,189,160			217,360	5.68	%
Allowance for credit losses		(115,113	)						(110,398	)
Interest-earning assets, net		14,569,315							15,078,762
Noninterest-earning assets		1,070,833							1,448,834
Total assets	$	15,640,148						$	16,527,596

Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	7,744,588		$	70,641	3.62	%	$	7,893,384		$	64,290	3.23	%
Securities loaned		1,247,392			18,499	5.88	%		1,303,883			16,169	4.92	%
Notes payable and other borrowings		1,333,671			16,859	5.02	%		1,527,371			20,646	5.36	%
Total interest-bearing liabilities		10,325,651			105,999	4.07	%		10,724,638			101,105	3.74	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		2,737,942							3,347,752
Other liabilities		405,768							362,133
Total liabilities		13,469,361							14,434,523
Stockholders' equity		2,143,252							2,066,564
Noncontrolling interest		27,535							26,509
Total liabilities and stockholders' equity	$	15,640,148						$	16,527,596

Net interest income ⁽³⁾				$	105,624						$	116,255
Net interest spread ⁽³⁾						1.65	%						1.94	%
Net interest margin ⁽³⁾						2.85	%						3.04	%

(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 $0.6 million and $0.6 million for the three months ended September 30, 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, October 25, 2024. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review third quarter 2024 financial results. Interested parties can access the conference call by dialing 800-267-6316 (North America) or 203-518-9856 (International) and then using the conference ID HH3Q24. 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 September 30, 2024, Hilltop employed approximately 3,650 people and operated approximately 310 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) disruptions to the economy and financial services industry, and (vii) 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024859859/en/

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Date	Price Target	Rating	Analyst
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 Third Quarter 2024

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