EX-99.1 2 hth-20240725xex99d1.htm EX-99.1

Exhibit 99.1

Investor Relations Contact:

Matt Dunn

214-525-4636

mdunn@hilltop.com

Hilltop Holdings Inc. Announces Financial Results for Second Quarter 2024

DALLAS — (BUSINESS WIRE) July 25, 2024 — Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the second quarter of 2024. Hilltop produced income to common stockholders of $20.3 million, or $0.31 per diluted share, for the second quarter of 2024, compared to $18.1 million, or $0.28 per diluted share, for the second quarter of 2023. Hilltop’s financial results for the second quarter of 2024 included a decline in net interest income and a build in the allowance for credit losses due to an increase in the provision for credit losses within the banking segment, a decrease in net revenues within all of the broker-dealer segment’s business lines except public finance services, and a decline in noninterest expense 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 August 30, 2024, to all common stockholders of record as of the close of business on August 16, 2024. Additionally, during the second quarter of 2024, Hilltop paid $9.9 million to repurchase an aggregate of 320,000 shares of its common stock at an average price of $30.98 per share pursuant to the 2024 stock repurchase program. As a result of share repurchases during 2024, Hilltop has approximately $55 million of available share repurchase capacity through the expiration of the 2024 stock repurchase program in January 2025.

The impacts of economic headwinds that began in 2022, and have 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, “Despite the continuation of a challenging environment for our operating businesses, Hilltop generated $29.6 million of pre-tax income as all three business segments delivered profitable pre-tax results during the second quarter of 2024. The onerous interest rate environment presented by an elevated federal-funds rate and inverted yield curve continued to negatively impact a number of business units throughout Hilltop. In spite of this, we have been focused on controlling funding and operating costs that have resulted in a modest expansion in net interest margin and pre-provision net revenue compared to the first quarter of 2024. As we enter the second half of 2024, we will work hard at prudently managing costs and positioning our balance sheet for long-term success.”

Second Quarter 2024 Highlights for Hilltop:

The provision for credit losses was $10.9 million during the second quarter of 2024, compared to a reversal of credit losses of $2.9 million in the first quarter of 2024 and a provision for credit losses of $14.8 million in the second quarter of 2023;
oThe provision for credit losses during the second quarter of 2024 reflected a build in the allowance related to specific reserves and loan portfolio changes within the banking segment since the prior quarter, slightly offset by an improved U.S. economic outlook.
For the second quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was $92.9 million, compared to $90.0 million in the second quarter of 2023, a 3.2% increase;
oMortgage loan origination production volume was $2.4 billion during the second quarter of 2024, compared to $2.5 billion in the second quarter of 2023;
oNet gains from mortgage loans sold to third parties increased to 233 basis points during the second quarter of 2024, compared to 221 basis points in the first quarter of 2024.
Hilltop’s consolidated annualized return on average assets and return on average stockholders’ equity for the second quarter of 2024 were 0.59% and 3.84%, respectively, compared to 0.47% and 3.53%, respectively, for the second quarter of 2023;

Graphic


Hilltop’s book value per common share increased to $32.86 at June 30, 2024, compared to $32.66 at March 31, 2024;
Hilltop’s total assets were $15.6 billion and $16.2 billion at June 30, 2024 and March 31, 2024, respectively;
Loans1, net of allowance for credit losses, were $7.7 billion and $7.6 billion at June 30, 2024 and March 31, 2024, respectively;
Non-accrual loans were $105.7 million, or 1.12% of total loans, at June 30, 2024, compared to $64.7 million, or 0.73% of total loans, at March 31, 2024;
oNon-accrual loans at June 30, 2024 increased primarily due to the addition of two commercial and industrial credit relationships within our auto note financing industry subsector, partially offset by the sale of a single non-owner occupied commercial real estate credit relationship within our hotel/motel portfolio industry subsector that was classified in loans held for sale.
Loans held for sale increased by 50.1% from March 31, 2024 to $1.3 billion at June 30, 2024;
Total deposits were $10.4 billion and $10.9 billion at June 30, 2024 and March 31, 2024, respectively;
oTotal estimated uninsured deposits were $4.8 billion, or approximately 46% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $325.4 million, were $4.5 billion, or approximately 43% of total deposits, at June 30, 2024.
Hilltop maintained strong capital levels2 with a Tier 1 Leverage Ratio3 of 12.87% and a Common Equity Tier 1 Capital Ratio of 19.45% at June 30, 2024;
Hilltop’s consolidated net interest margin4 increased to 2.90% for the second quarter of 2024, compared to 2.85% in the first quarter of 2024;
For the second quarter of 2024, noninterest income was $193.3 million, compared to $190.7 million in the second quarter of 2023, a 1.4% increase;
For second quarter of 2024, noninterest expense was $256.5 million, compared to $267.0 million in the second quarter of 2023, a 3.9% decrease; and
Hilltop’s effective tax rate was 22.5% during the second quarter of 2024, compared to 26.4% during the same period in 2023.
oThe effective tax rate for the second 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 $348.3 million and $332.6 million at June 30, 2024 and March 31, 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.

Graphic


Consolidated Financial and Other Information

Consolidated Balance Sheets

June 30,

March 31,

December 31,

September 30,

June 30,

(in 000's)

    

2024

    

2024

    

2023

    

2023

    

2023

Cash and due from banks

$

798,300

$

1,710,066

$

1,858,700

$

1,513,747

$

1,584,709

Federal funds sold

5,650

650

650

3,650

650

Assets segregated for regulatory purposes

51,046

70,717

57,395

47,491

50,711

Securities purchased under agreements to resell

111,914

91,608

80,011

123,719

143,982

Securities:

 

Trading, at fair value

721,384

657,700

515,991

578,901

696,649

Available for sale, at fair value, net (1)

1,433,107

1,480,555

1,507,595

1,456,238

1,526,869

Held to maturity, at amortized cost, net (1)

777,456

790,550

812,677

825,079

847,437

Equity, at fair value

254

315

321

264

258

2,932,201

2,929,120

2,836,584

2,860,482

3,071,213

Loans held for sale

 

1,264,437

842,324

943,846

1,058,806

1,333,044

Loans held for investment, net of unearned income

8,173,520

8,062,693

8,079,745

8,204,052

8,354,122

Allowance for credit losses

 

(115,082)

(104,231)

(111,413)

(110,822)

(109,306)

Loans held for investment, net

8,058,438

7,958,462

7,968,332

8,093,230

8,244,816

Broker-dealer and clearing organization receivables

1,297,175

1,473,561

1,573,931

1,460,352

1,474,177

Premises and equipment, net

 

161,746

165,557

168,856

172,097

176,574

Operating lease right-of-use assets

 

93,994

95,343

88,580

93,057

97,979

Mortgage servicing assets

52,902

95,591

96,662

104,951

95,101

Other assets

517,811

501,244

517,545

588,751

588,166

Goodwill

267,447

267,447

267,447

267,447

267,447

Other intangible assets, net

7,429

7,943

8,457

9,078

9,772

Total assets

$

15,620,490

$

16,209,633

$

16,466,996

$

16,396,858

$

17,138,341

Deposits:

Noninterest-bearing

$

2,845,441

$

3,028,543

$

3,007,101

$

3,200,247

$

3,451,438

Interest-bearing

 

7,528,415

7,855,553

8,056,091

7,902,850

7,712,739

Total deposits

10,373,856

10,884,096

11,063,192

11,103,097

11,164,177

Broker-dealer and clearing organization payables

 

1,285,226

1,436,462

1,430,734

1,368,064

1,306,646

Short-term borrowings

897,613

892,574

900,038

882,999

1,628,637

Securities sold, not yet purchased, at fair value

75,546

60,562

34,872

51,527

74,761

Notes payable

347,402

347,273

347,145

347,020

364,531

Operating lease liabilities

113,096

114,518

109,002

114,334

119,999

Other liabilities

365,140

314,718

431,684

422,955

389,336

Total liabilities

13,457,879

14,050,203

14,316,667

14,289,996

15,048,087

Common stock

650

653

652

652

651

Additional paid-in capital

1,047,523

1,049,831

1,054,662

1,052,867

1,050,191

Accumulated other comprehensive loss

(119,171)

(119,606)

(121,505)

(145,083)

(131,718)

Retained earnings

1,205,467

1,201,013

1,189,222

1,171,250

1,144,624

Deferred compensation employee stock trust, net

1

115

228

340

450

Employee stock trust

(1)

(142)

(292)

(446)

(599)

Total Hilltop stockholders' equity

2,134,469

2,131,864

2,122,967

2,079,580

2,063,599

Noncontrolling interests

28,142

27,566

27,362

27,282

26,655

Total stockholders' equity

2,162,611

2,159,430

2,150,329

2,106,862

2,090,254

Total liabilities & stockholders' equity

$

15,620,490

$

16,209,633

$

16,466,996

$

16,396,858

$

17,138,341


(1)At June 30, 2024, the amortized cost of the available for sale securities portfolio was $1,545,966, while the fair value of the held to maturity securities portfolio was $687,194.

Graphic


Three Months Ended

Consolidated Income Statements

June 30,

March 31,

December 31,

September 30,

June 30,

(in 000's, except per share data)

    

2024

    

2024

    

2023

    

2023

    

2023

    

Interest income:

Loans, including fees

$

138,627

$

134,331

$

138,096

$

142,402

$

138,397

Securities borrowed

20,306

20,561

18,659

17,683

18,515

Securities:

Taxable

25,289

26,241

28,763

27,166

26,719

Tax-exempt

2,389

2,415

2,545

2,464

2,566

Other

20,532

26,066

28,704

27,040

27,229

Total interest income

207,143

209,614

216,767

216,755

213,426

Interest expense:

 

Deposits

68,095

69,144

68,339

64,290

54,726

Securities loaned

18,669

19,039

17,247

16,169

16,413

Short-term borrowings

10,676

11,588

13,495

14,212

17,706

Notes payable

3,604

3,590

3,596

4,026

3,973

Other

2,449

2,632

2,864

2,408

2,342

Total interest expense

103,493

105,993

105,541

101,105

95,160

Net interest income

103,650

103,621

111,226

115,650

118,266

Provision for (reversal of) credit losses

10,934

(2,871)

1,265

(40)

14,836

Net interest income after provision for (reversal of) credit losses

92,716

106,492

109,961

115,690

103,430

Noninterest income:

 

Net gains from sale of loans and other mortgage production income

58,455

40,197

36,387

47,262

48,535

Mortgage loan origination fees

34,398

26,438

32,844

41,478

41,440

Securities commissions and fees and other

67,460

84,757

73,967

68,447

68,640

Investment and securities advisory fees and commissions

32,992

30,226

35,780

39,662

32,037

Total noninterest income

193,305

181,618

178,978

196,849

190,652

Noninterest expense:

 

Employees' compensation and benefits

169,998

165,830

160,390

173,195

176,908

Occupancy and equipment, net

21,297

21,912

21,524

21,912

23,025

Professional services

10,270

9,731

13,170

12,639

12,594

Other

54,899

52,550

55,761

52,271

54,450

Total noninterest expense

256,464

250,023

250,845

260,017

266,977

Income before income taxes

29,557

38,087

38,094

52,522

27,105

Income tax expense

 

6,658

8,565

7,132

13,211

7,167

Net income

22,899

29,522

30,962

39,311

19,938

Less: Net income attributable to noncontrolling interest

 

2,566

1,854

2,291

2,269

1,805

Income attributable to Hilltop

$

20,333

$

27,668

$

28,671

$

37,042

$

18,133

Earnings per common share:

Basic

$

0.31

$

0.42

$

0.44

$

0.57

$

0.28

Diluted

$

0.31

$

0.42

$

0.44

$

0.57

$

0.28

Cash dividends declared per common share

$

0.17

$

0.17

$

0.16

$

0.16

$

0.16

Weighted average shares outstanding:

Basic

65,085

65,200

65,136

65,106

65,025

Diluted

65,086

65,214

65,138

65,108

65,054

Three Months Ended June 30, 2024

Segment Results

Mortgage

    

    

All Other and

    

Hilltop

(in 000's)

    

Banking

    

Broker-Dealer

    

Origination

    

Corporate

    

Eliminations

    

Consolidated

Net interest income (expense)

$

92,458

$

12,218

$

(4,571)

$

(3,153)

$

6,698

$

103,650

Provision for (reversal of) credit losses

 

10,950

 

(16)

 

 

 

 

10,934

Noninterest income

 

9,255

 

92,053

 

92,867

 

6,001

 

(6,871)

 

193,305

Noninterest expense

 

57,950

 

97,062

 

86,946

 

14,716

 

(210)

 

256,464

Income (loss) before taxes

$

32,813

$

7,225

$

1,350

$

(11,868)

$

37

$

29,557

Six Months Ended June 30, 2024

Segment Results

Mortgage

    

    

All Other and

    

Hilltop

(in 000's)

    

Banking

    

Broker-Dealer

    

Origination

    

Corporate

    

Eliminations

    

Consolidated

Net interest income (expense)

$

184,064

$

24,486

$

(8,823)

$

(6,255)

$

13,799

$

207,271

Provision for (reversal of) credit losses

 

8,097

 

(34)

 

8,063

Noninterest income

 

21,158

 

196,631

159,567

11,785

(14,218)

 

374,923

Noninterest expense

 

113,970

 

195,008

165,843

32,101

(435)

 

506,487

Income (loss) before taxes

$

83,155

$

26,143

$

(15,099)

$

(26,571)

$

16

$

67,644

Graphic


Three Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

Selected Financial Data

2024

    

2024

    

2023

    

2023

    

2023

Hilltop Consolidated:

 

Return on average stockholders' equity

3.84%

5.23%

5.46%

7.11%

3.53%

Return on average assets

0.59%

0.74%

0.75%

0.94%

0.47%

Net interest margin (1)

2.90%

2.85%

2.96%

3.02%

3.03%

Net interest margin (taxable equivalent) (2):

As reported

2.92%

 

2.87%

2.98%

3.04%

3.03%

Impact of purchase accounting

 

6 bps

4 bps

4 bps

7 bps

9 bps

Book value per common share ($)

32.86

32.66

32.58

31.91

31.71

Shares outstanding, end of period (000's)

64,953

65,267

65,153

65,170

65,071

Dividend payout ratio (3)

54.42%

 

40.06%

36.35%

28.12%

57.37%

Banking Segment:

Net interest margin (1)

3.10%

3.00%

2.94%

3.08%

3.11%

Net interest margin (taxable equivalent) (2):

As reported

3.10%

3.00%

2.95%

3.09%

3.11%

Impact of purchase accounting

7 bps

5 bps

5 bps

8 bps

11 bps

Accretion of discount on loans ($000's)

1,945

1,299

1,202

2,226

3,334

Net recoveries (charge-offs) ($000's)

(83)

(4,311)

(674)

1,556

(2,884)

Return on average assets

0.81%

1.20%

1.12%

1.20%

0.89%

Fee income ratio

9.1%

11.5%

11.2%

10.5%

10.0%

Efficiency ratio

57.0%

54.1%

53.2%

51.4%

51.2%

Employees' compensation and benefits ($000's)

33,352

32,389

29,420

30,641

30,603

Broker-Dealer Segment:

Net revenue ($000's) (4)

104,271

116,847

119,989

118,703

113,241

Employees' compensation and benefits ($000's)

66,181

69,457

68,746

69,930

65,290

Variable compensation expense ($000's)

32,734

35,274

39,435

39,929

34,798

Compensation as a % of net revenue

63.5%

59.4%

57.3%

58.9%

57.7%

Pre-tax margin (5)

6.9%

16.2%

16.8%

18.2%

16.3%

Mortgage Origination Segment:

Mortgage loan originations - volume ($000's):

Home purchases

2,205,157

1,548,941

1,698,009

2,091,444

2,301,007

Refinancings

174,141

127,545

117,018

152,257

150,643

Total mortgage loan originations - volume

2,379,298

1,676,486

1,815,027

2,243,701

2,451,650

Mortgage loan sales - volume ($000's)

1,838,841

1,749,857

1,874,001

2,395,357

2,115,706

Net gains from mortgage loan sales (basis points):

Loans sold to third parties

233

221

189

199

207

Impact of loans retained by banking segment

(5)

(5)

0

(1)

(6)

As reported

228

216

189

198

201

Mortgage servicing rights asset ($000's) (6)

52,902

95,591

96,662

104,951

95,101

Employees' compensation and benefits ($000's)

61,624

52,694

53,766

64,016

70,982

Variable compensation expense ($000's)

34,886

22,188

24,085

33,070

36,249


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

June 30,

March 31,

December 31,

September 30,

June 30,

Capital Ratios

    

2024

    

2024

    

2023

    

2023

    

2023

Tier 1 capital (to average assets):

PlainsCapital

 

11.36%

 

11.00%

10.55%

10.62%

10.28%

Hilltop

12.87%

 

12.49%

12.23%

11.92%

11.47%

Common equity Tier 1 capital (to risk-weighted assets):

PlainsCapital

15.58%

 

15.87%

15.44%

15.31%

14.48%

Hilltop

 

19.45%

 

19.73%

19.32%

18.60%

17.61%

Tier 1 capital (to risk-weighted assets):

 

 

PlainsCapital

15.58%

 

15.87%

15.44%

15.31%

14.48%

Hilltop

 

19.45%

 

19.73%

19.32%

18.60%

17.61%

Total capital (to risk-weighted assets):

PlainsCapital

 

16.77%

 

17.06%

16.58%

16.45%

15.56%

Hilltop

22.57%

 

22.79%

22.34%

21.54%

20.41%

Graphic


June 30,

March 31,

December 31,

September 30,

June 30,

Non-Performing Assets Portfolio Data

    

2024

    

2024

    

2023

    

2023

    

2023

Loans accounted for on a non-accrual basis ($000's):

 

Commercial real estate:

Non-owner occupied

$

6,894

$

34,661

$

36,440

$

2,375

$

2,456

Owner occupied

6,437

4,846

5,098

4,964

1,096

Commercial and industrial

80,755

12,165

9,502

10,190

21,442

Construction and land development

485

698

3,480

760

593

1-4 family residential

11,092

12,363

13,801

13,202

13,360

Consumer

1

3

6

7

9

Broker-dealer

Non-accrual loans ($000's)

$

105,664

$

64,736

$

68,327

$

31,498

$

38,956

Non-accrual loans as a % of total loans

 

1.12%

 

0.73%

0.76%

0.34%

0.40%

Other real estate owned ($000's)

2,973

5,254

5,095

5,386

3,481

Other repossessed assets ($000's)

464

472

Non-performing assets ($000's)

109,101

70,462

73,422

36,884

42,437

Non-performing assets as a % of total assets

0.70%

 

0.43%

0.45%

0.22%

0.25%

Loans past due 90 days or more and still accruing ($000's) (1)

122,451

112,799

115,090

106,346

130,036


(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 June 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

$

934,445

$

13,494

 

5.78

%  

$

1,043,526

$

14,125

 

5.41

%  

Loans held for investment, gross (2)

7,892,879

125,133

 

6.36

%  

8,033,095

124,272

 

6.21

%  

Investment securities - taxable

 

2,612,049

25,284

 

3.87

%  

2,776,375

26,719

 

3.85

%  

Investment securities - non-taxable (3)

 

321,928

2,965

 

3.68

%  

412,609

2,410

 

2.34

%  

Federal funds sold and securities purchased under agreements to resell

 

105,520

 

1,944

 

7.39

%  

 

123,219

 

2,190

 

7.13

%  

Interest-bearing deposits in other financial institutions

 

1,057,783

 

13,572

 

5.15

%  

 

1,711,945

 

21,273

 

4.98

%  

Securities borrowed

1,358,425

20,306

 

5.91

%  

1,477,502

 

18,515

 

4.96

%  

Other

 

39,758

 

5,016

 

50.60

%  

 

82,608

 

3,766

 

18.29

%  

Interest-earning assets, gross (3)

 

14,322,787

 

207,714

 

5.82

%  

 

15,660,879

 

213,270

 

5.46

%  

Allowance for credit losses

 

(104,551)

 

(97,387)

Interest-earning assets, net

 

14,218,236

 

15,563,492

Noninterest-earning assets

 

1,332,959

 

1,355,997

Total assets

$

15,551,195

$

16,919,489

Liabilities and Stockholders' Equity

Interest-bearing liabilities

Interest-bearing deposits

$

7,617,862

$

68,095

 

3.59

%  

$

7,736,582

$

54,726

 

2.84

%  

Securities loaned

1,338,825

18,669

5.59

%  

1,373,435

16,413

4.79

%  

Notes payable and other borrowings

 

1,253,394

 

16,729

 

5.35

%  

 

1,861,063

 

24,021

 

5.18

%  

Total interest-bearing liabilities

 

10,210,081

 

103,493

 

4.07

%  

 

10,971,080

 

95,160

 

3.48

%  

Noninterest-bearing liabilities

Noninterest-bearing deposits

 

2,814,179

 

3,540,643

Other liabilities

 

377,516

 

320,706

Total liabilities

 

13,401,776

 

14,832,429

Stockholders’ equity

 

2,122,144

 

2,060,677

Noncontrolling interest

 

27,275

 

26,383

Total liabilities and stockholders' equity

$

15,551,195

$

16,919,489

Net interest income (3)

$

104,221

$

118,110

Net interest spread (3)

 

1.75

%  

 

1.98

%  

Net interest margin (3)

 

2.92

%  

 

3.03

%  


(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 $0.1 million for the three months ended June 30, 2024 and 2023, respectively.

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Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, July 26, 2024. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review second quarter 2024 financial results. Interested parties can access the conference call by dialing 800-245-3047 (North America) or 203-518-9765 (International) and then using the conference ID HH2Q24. 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 June 30, 2024, Hilltop employed approximately 3,780 people and operated approximately 320 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.

Source: Hilltop Holdings Inc.

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