Hilltop Holdings Inc. Announces Financial Results for First Quarter 2024

DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) ("Hilltop") today announced financial results for the first quarter of 2024. Hilltop produced income to common stockholders of $27.7 million, or $0.42 per diluted share, for the first quarter of 2024, compared to $25.8 million, or $0.40 per diluted share, for the first quarter of 2023. Hilltop's financial results for the first quarter of 2024 included a decline in net interest income, partially offset by a reversal of credit losses due to an improved economic outlook within the banking segment, an increase in net revenues within certain of the broker-dealer segment's business lines, and a decline in other mortgage production income, partially offset by an increase in net gains from sale of loans within the mortgage origination segment.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per common share payable on May 24, 2024, to all common stockholders of record as of the close of business on May 10, 2024. Additionally, during the first quarter of 2024, Hilltop paid $9.9 million to repurchase an aggregate of 320,042 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.

The impacts of economic headwinds that began in 2022, and continued into 2024, 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, and international armed conflicts and their impact on supply chains.

Jeremy B. Ford, President and CEO of Hilltop, said, "Hilltop's operating results for the first quarter of 2024 reflect a general continuation in market trends that were experienced throughout 2023. The elevated interest rate environment continues to impact our net interest margin primarily through increased borrowing costs. Additionally, a lack of housing inventory and pressured home buying affordability limited mortgage origination volumes. Despite these pressures, Hilltop's robust liquidity position allowed for a return of high-cost deposits.

"During the quarter, PlainsCapital Bank produced an annualized return on average assets of 1.20% highlighting the steady earnings power of the franchise. HilltopSecurities delivered a pre-tax margin of 16% on net revenues of $117 million, primarily due to strong results from the structured finance and wealth management business lines. As previously mentioned, PrimeLending's results remain challenged due to elevated mortgage rates and suboptimal housing inventory across the country. From a consolidated perspective, we will continue to protect our strong balance sheet position and aim to produce results that improve our tangible book value per share over time."

First Quarter 2024 Highlights for Hilltop:

• The reversal of credit losses was $2.9 million during the first quarter of 2024, compared to a provision for credit losses of $1.3 million in the fourth quarter of 2023 and a provision for credit losses of $2.3 million in the first quarter of 2023;
  • The reversal of credit losses during the first quarter of 2024 reflected a release in the allowance related to improvements to the U.S. economic outlook since the prior quarter, partially offset by increases in specific reserves within the banking segment.
• For the first quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within the mortgage origination segment was $66.6 million, compared to $68.7 million in the first quarter of 2023, a 3.1% decrease;
  • Mortgage loan origination production volume was $1.7 billion during the first quarter of 2024, compared to $1.7 billion in the first quarter of 2023;
  • Net gains from mortgage loans sold to third parties increased to 221 basis points during the first quarter of 2024, compared to 189 basis points in the fourth quarter of 2023.
• Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for the first quarter of 2024 were 0.74% and 5.23%, respectively, compared to 0.69% and 5.12%, respectively, for the first quarter of 2023;
• Hilltop's book value per common share increased to $32.66 at March 31, 2024, compared to $32.58 at December 31, 2023;
• Hilltop's total assets were $16.2 billion and $16.5 billion at March 31, 2024 and December 31, 2023, respectively;
• Loans¹, net of allowance for credit losses, were $7.6 billion at each of March 31, 2024 and December 31, 2023, respectively;
• Non-accrual loans were $64.7 million, or 0.73% of total loans, at March 31, 2024, compared to $68.3 million, or 0.76% of total loans, at December 31, 2023;
  • Non-accrual loans at March 31, 2024 included a single non-owner occupied commercial real estate credit relationship within our hotel/motel portfolio industry subsector that was reclassified since the prior period from loans held for investment to loans held for sale.
• Loans held for sale decreased by 10.8% from December 31, 2023 to $0.8 billion at March 31, 2024;
• Total deposits were $10.9 billion and $11.1 billion at March 31, 2024 and December 31, 2023, respectively;
  • Total estimated uninsured deposits were $4.8 billion, or approximately 44% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $360.5 million, were $4.5 billion, or approximately 41% of total deposits, at March 31, 2024.
• Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 12.49% and a Common Equity Tier 1 Capital Ratio of 19.73% at March 31, 2024;
• Hilltop's consolidated net interest margin⁴ decreased to 2.85% for the first quarter of 2024, compared to 2.96% in the fourth quarter of 2023;
• For the first quarter of 2024, noninterest income was $181.6 million, compared to $162.5 million in the first quarter of 2023, an 11.8% increase;
• For the first quarter of 2024, noninterest expense was $250.0 million, compared to $250.5 million in the first quarter of 2023, a 0.2% decrease; and
• Hilltop's effective tax rate was 22.5% during the first quarter of 2024, compared to 11.6% during the same period in 2023.
  • The effective tax rate for the first 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 $332.6 million and $344.1 million at March 31, 2024 and December 31, 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 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		March 31,				December 31,				September 30,				June 30,				March 31,
(in 000's)		2024				2023				2023				2023				2023
Cash and due from banks		$	1,710,066			$	1,858,700			$	1,513,747			$	1,584,709			$	1,764,081
Federal funds sold			650				650				3,650				650				743
Assets segregated for regulatory purposes			70,717				57,395				47,491				50,711				36,199
Securities purchased under agreements to resell			91,608				80,011				123,719				143,982				144,201
Securities:
Trading, at fair value			657,700				515,991				578,901				696,649				692,908
Available for sale, at fair value, net (1)			1,480,555				1,507,595				1,456,238				1,526,869				1,641,571
Held to maturity, at amortized cost, net (1)			790,550				812,677				825,079				847,437				862,280
Equity, at fair value			315				321				264				258				231
			2,929,120				2,836,584				2,860,482				3,071,213				3,196,990
Loans held for sale			842,324				943,846				1,058,806				1,333,044				1,040,138
Loans held for investment, net of unearned income			8,062,693				8,079,745				8,204,052				8,354,122				8,192,846
Allowance for credit losses			(104,231	)			(111,413	)			(110,822	)			(109,306	)			(97,354	)
Loans held for investment, net			7,958,462				7,968,332				8,093,230				8,244,816				8,095,492
Broker-dealer and clearing organization receivables			1,473,561				1,573,931				1,460,352				1,474,177				1,560,246
Premises and equipment, net			165,557				168,856				172,097				176,574				180,132
Operating lease right-of-use assets			95,343				88,580				93,057				97,979				100,122
Mortgage servicing assets			95,591				96,662				104,951				95,101				103,314
Other assets			501,244				517,545				588,751				588,166				529,438
Goodwill			267,447				267,447				267,447				267,447				267,447
Other intangible assets, net			7,943				8,457				9,078				9,772				10,544
Total assets		$	16,209,633			$	16,466,996			$	16,396,858			$	17,138,341			$	17,029,087
Deposits:
Noninterest-bearing		$	3,028,543			$	3,007,101			$	3,200,247			$	3,451,438			$	3,807,878
Interest-bearing			7,855,553				8,056,091				7,902,850				7,712,739				7,289,269
Total deposits			10,884,096				11,063,192				11,103,097				11,164,177				11,097,147
Broker-dealer and clearing organization payables			1,436,462				1,430,734				1,368,064				1,306,646				1,383,317
Short-term borrowings			892,574				900,038				882,999				1,628,637				1,572,794
Securities sold, not yet purchased, at fair value			60,562				34,872				51,527				74,761				51,497
Notes payable			347,273				347,145				347,020				364,531				376,410
Operating lease liabilities			114,518				109,002				114,334				119,999				122,878
Other liabilities			314,718				431,684				422,955				389,336				341,246
Total liabilities			14,050,203				14,316,667				14,289,996				15,048,087				14,945,289
Common stock			653				652				652				651				650
Additional paid-in capital			1,049,831				1,054,662				1,052,867				1,050,191				1,044,774
Accumulated other comprehensive loss			(119,606	)			(121,505	)			(145,083	)			(131,718	)			(125,461	)
Retained earnings			1,201,013				1,189,222				1,171,250				1,144,624				1,136,901
Deferred compensation employee stock trust, net			115				228				340				450				446
Employee stock trust			(142	)			(292	)			(446	)			(599	)			(599	)
Total Hilltop stockholders' equity			2,131,864				2,122,967				2,079,580				2,063,599				2,056,711
Noncontrolling interests			27,566				27,362				27,282				26,655				27,087
Total stockholders' equity			2,159,430				2,150,329				2,106,862				2,090,254				2,083,798
Total liabilities & stockholders' equity		$	16,209,633			$	16,466,996			$	16,396,858			$	17,138,341			$	17,029,087

_____________________________
(1)		At March 31, 2024, the amortized cost of the available for sale securities portfolio was $1,594,167, while the fair value of the held to maturity securities portfolio was $702,843.

		Three Months Ended
Consolidated Income Statements		March 31,				December 31,			September 30,				June 30,			March 31,
(in 000's, except per share data)		2024				2023			2023				2023			2023
Interest income:
Loans, including fees		$	134,331			$	138,096		$	142,402			$	138,397		$	123,379
Securities borrowed			20,561				18,659			17,683				18,515			17,068
Securities:
Taxable			26,241				28,763			27,166				26,719			25,602
Tax-exempt			2,415				2,545			2,464				2,566			3,188
Other			26,066				28,704			27,040				27,229			22,190
Total interest income			209,614				216,767			216,755				213,426			191,427
Interest expense:
Deposits			69,144				68,339			64,290				54,726			35,824
Securities loaned			19,039				17,247			16,169				16,413			15,346
Short-term borrowings			11,588				13,495			14,212				17,706			12,444
Notes payable			3,590				3,596			4,026				3,973			3,853
Other			2,632				2,864			2,408				2,342			2,255
Total interest expense			105,993				105,541			101,105				95,160			69,722
Net interest income			103,621				111,226			115,650				118,266			121,705
Provision for (reversal of) credit losses			(2,871	)			1,265			(40	)			14,836			2,331
Net interest income after provision for (reversal of) credit losses			106,492				109,961			115,690				103,430			119,374
Noninterest income:
Net gains from sale of loans and other mortgage production income			40,197				36,387			47,262				48,535			39,966
Mortgage loan origination fees			26,438				32,844			41,478				41,440			28,777
Securities commissions and fees			35,557				33,002			28,044				29,606			31,223
Investment and securities advisory fees and commissions			30,226				35,780			39,662				32,037			26,848
Other			49,200				40,965			40,403				39,034			35,680
Total noninterest income			181,618				178,978			196,849				190,652			162,494
Noninterest expense:
Employees' compensation and benefits			165,830				160,390			173,195				176,908			167,817
Occupancy and equipment, net			21,912				21,524			21,912				23,025			22,865
Professional services			9,731				13,170			12,639				12,594			10,697
Other			52,550				55,761			52,271				54,450			49,091
Total noninterest expense			250,023				250,845			260,017				266,977			250,470
Income before income taxes			38,087				38,094			52,522				27,105			31,398
Income tax expense			8,565				7,132			13,211				7,167			3,630
Net income			29,522				30,962			39,311				19,938			27,768
Less: Net income attributable to noncontrolling interest			1,854				2,291			2,269				1,805			1,968
Income attributable to Hilltop		$	27,668			$	28,671		$	37,042			$	18,133		$	25,800
Earnings per common share:
Basic		$	0.42			$	0.44		$	0.57			$	0.28		$	0.40
Diluted		$	0.42			$	0.44		$	0.57			$	0.28		$	0.40
Cash dividends declared per common share		$	0.17			$	0.16		$	0.16			$	0.16		$	0.16
Weighted average shares outstanding:
Basic			65,200				65,136			65,106				65,025			64,901
Diluted			65,214				65,138			65,108				65,054			64,954

		Three Months Ended March 31, 2024
Segment Results										Mortgage								All Other and				Hilltop
(in 000's)		Banking				Broker-Dealer				Origination				Corporate				Eliminations				Consolidated
Net interest income (expense)		$	91,606			$	12,269			$	(4,252	)		$	(3,103	)		$	7,101			$	103,621
Provision for (reversal of) credit losses			(2,853	)			(18	)			-				-				-				(2,871	)
Noninterest income			11,903				104,578				66,700				5,785				(7,348	)			181,618
Noninterest expense			56,020				97,947				78,898				17,384				(226	)			250,023
Income (loss) before taxes		$	50,342			$	18,918			$	(16,450	)		$	(14,702	)		$	(21	)		$	38,087

		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
Selected Financial Data		2024			2023			2023			2023			2023
Hilltop Consolidated:
Return on average stockholders' equity		5.23	%		5.46	%		7.11	%		3.53	%		5.12	%
Return on average assets		0.74	%		0.75	%		0.94	%		0.47	%		0.69	%
Net interest margin (1)		2.85	%		2.96	%		3.02	%		3.03	%		3.28	%
Net interest margin (taxable equivalent) (2):
As reported		2.87	%		2.98	%		3.04	%		3.03	%		3.28	%
Impact of purchase accounting		4 bps			4 bps			7 bps			9 bps			6 bps
Book value per common share ($)		32.66			32.58			31.91			31.71			31.63
Shares outstanding, end of period (000's)		65,267			65,153			65,170			65,071			65,023
Dividend payout ratio (3)		40.06	%		36.35	%		28.12	%		57.37	%		40.25	%
Banking Segment:
Net interest margin (1)		3.00	%		2.94	%		3.08	%		3.11	%		3.40	%
Net interest margin (taxable equivalent) (2):
As reported		3.00	%		2.95	%		3.09	%		3.11	%		3.41	%
Impact of purchase accounting		5 bps			5 bps			8 bps			11 bps			7 bps
Accretion of discount on loans ($000's)		1,299			1,202			2,226			3,334			1,870
Net recoveries (charge-offs) ($000's)		(4,311	)		(674	)		1,556			(2,884	)		(419	)
Return on average assets		1.20	%		1.12	%		1.20	%		0.89	%		1.44	%
Fee income ratio		11.5	%		11.2	%		10.5	%		10.0	%		9.6	%
Efficiency ratio		54.1	%		53.2	%		51.4	%		51.2	%		48.4	%
Employees' compensation and benefits ($000's)		32,389			29,420			30,641			30,603			32,681
Broker-Dealer Segment:
Net revenue ($000's) (4)		116,847			119,989			118,703			113,241			104,498
Employees' compensation and benefits ($000's)		69,457			68,746			69,930			65,290			62,429
Variable compensation expense ($000's)		35,274			39,435			39,929			34,798			30,821
Compensation as a % of net revenue		59.4	%		57.3	%		58.9	%		57.7	%		59.7	%
Pre-tax margin (5)		16.2	%		16.8	%		18.2	%		16.3	%		12.8	%
Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		1,548,941			1,698,009			2,091,444			2,301,007			1,607,330
Refinancings		127,545			117,018			152,257			150,643			125,423
Total mortgage loan originations - volume		1,676,486			1,815,027			2,243,701			2,451,650			1,732,753
Mortgage loan sales - volume ($000's)		1,749,857			1,874,001			2,395,357			2,115,706			1,661,521
Net gains from mortgage loan sales (basis points):
Loans sold to third parties		221			189			199			207			193
Impact of loans retained by banking segment		(5	)		0			(1	)		(6	)		(7	)
As reported		216			189			198			201			186
Mortgage servicing rights asset ($000's) (6)		95,591			96,662			104,951			95,101			103,314
Employees' compensation and benefits ($000's)		52,694			53,766			64,016			70,982			62,355
Variable compensation expense ($000's)		22,188			24,085			33,070			36,249			25,573

_____________________________
(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, $0.6 million, $0.6 million, $0.1 million and $0.1 million, respectively, for the periods presented and for the banking segment were $0.1 million, $0.2 million, $0.2 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.

		March 31,			December 31,			September 30,			June 30,			March 31,
Capital Ratios		2024			2023			2023			2023			2023
Tier 1 capital (to average assets):
PlainsCapital		11.00	%		10.55	%		10.62	%		10.28	%		10.69	%
Hilltop		12.49	%		12.23	%		11.92	%		11.47	%		11.82	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		15.87	%		15.44	%		15.31	%		14.48	%		14.97	%
Hilltop		19.73	%		19.32	%		18.60	%		17.61	%		17.99	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		15.87	%		15.44	%		15.31	%		14.48	%		14.97	%
Hilltop		19.73	%		19.32	%		18.60	%		17.61	%		17.99	%
Total capital (to risk-weighted assets):
PlainsCapital		17.06	%		16.58	%		16.45	%		15.56	%		15.94	%
Hilltop		22.79	%		22.34	%		21.54	%		20.41	%		20.75	%

		March 31,				December 31,				September 30,				June 30,				March 31,
Non-Performing Assets Portfolio Data		2024				2023				2023				2023				2023
Loans accounted for on a non-accrual basis ($000's):
Commercial real estate:
Non-owner occupied		$	34,661			$	36,440			$	2,375			$	2,456			$	1,038
Owner occupied			4,846				5,098				4,964				1,096				935
Commercial and industrial			12,165				9,502				10,190				21,442				10,807
Construction and land development			698				3,480				760				593				199
1-4 family residential			12,363				13,801				13,202				13,360				14,387
Consumer			3				6				7				9				12
Broker-dealer			-				-				-				-				-
Non-accrual loans ($000's)		$	64,736			$	68,327			$	31,498			$	38,956			$	27,378
Non-accrual loans as a % of total loans ($000's)			0.73	%			0.76	%			0.34	%			0.40	%			0.30	%
Other real estate owned ($000's)			5,254				5,095				5,386				3,481				3,202
Other repossessed assets ($000's)			472				-				-				-				-
Non-performing assets ($000's)			70,462				73,422				36,884				42,437				30,580
Non-performing assets as a % of total assets ($000's)			0.43	%			0.45	%			0.22	%			0.25	%			0.18	%
Loans past due 90 days or more and still accruing ($000's) (1)			112,799				115,090				106,346				130,036				114,523

_____________________________
(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 March 31,
		2024									2023
		Average				Interest			Annualized		Average				Interest			Annualized
Net Interest Margin (Taxable Equivalent) Details (1)		Outstanding				Earned			Yield or		Outstanding				Earned			Yield or
		Balance				or Paid			Rate		Balance				or Paid			Rate
Assets
Interest-earning assets
Loans held for sale		$	802,098			$	11,655		5.81	%	$	815,393			$	10,724		5.26	%
Loans held for investment, gross (2)			7,835,647				122,676		6.28	%		7,894,668				112,655		5.79	%
Investment securities - taxable			2,619,081				26,241		4.01	%		2,813,734				25,602		3.64	%
Investment securities - non-taxable (3)			293,420				2,992		4.08	%		412,543				3,286		3.19	%
Federal funds sold and securities purchased under agreements to resell			94,108				1,631		6.95	%		163,601				2,368		5.87	%
Interest-bearing deposits in other financial institutions			1,458,784				19,245		5.29	%		1,480,323				16,116		4.42	%
Securities borrowed			1,442,870				20,561		5.64	%		1,419,797				17,068		4.81	%
Other			39,885				5,190		52.19	%		63,219				3,706		23.77	%
Interest-earning assets, gross (3)			14,585,893				210,191		5.78	%		15,063,278				191,525		5.16	%
Allowance for credit losses			(110,583	)								(97,060	)
Interest-earning assets, net			14,475,310									14,966,218
Noninterest-earning assets			1,522,337									1,336,908
Total assets		$	15,997,647								$	16,303,126
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits		$	7,748,633			$	69,144		3.58	%	$	7,239,556			$	35,824		2.01	%
Securities loaned			1,401,975				19,039		5.45	%		1,323,857				15,346		4.70	%
Notes payable and other borrowings			1,327,889				17,810		5.38	%		1,490,075				18,552		5.05	%
Total interest-bearing liabilities			10,478,497				105,993		4.06	%		10,053,488				69,722		2.81	%
Noninterest-bearing liabilities
Noninterest-bearing deposits			2,951,357									3,789,757
Other liabilities			420,355									390,107
Total liabilities			13,850,209									14,233,352
Stockholders' equity			2,120,494									2,043,157
Noncontrolling interest			26,944									26,617
Total liabilities and stockholders' equity		$	15,997,647								$	16,303,126
Net interest income (3)						$	104,198								$	121,803
Net interest spread (3)									1.72	%								2.35	%
Net interest margin (3)									2.87	%								3.28	%

_____________________________
(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 $0.1 million for the three months ended March 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, April 19, 2024. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review first quarter 2024 financial results. Interested parties can access the conference call by dialing 800-579-2543 (North America) or 785-424-1789 (International) and then using the conference ID HH1Q24. 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 March 31, 2024, Hilltop employed approximately 3,740 people and operated approximately 325 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 and (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.

Contacts

Investor Relations Contact:
Erik Yohe
214-525-4634
[e-mail]