Financial News

Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2021

Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the fourth quarter and full year 2021. Hilltop produced income from continuing operations to common stockholders of $62.2 million, or $0.78 per diluted share, for the fourth quarter of 2021, compared to $112.7 million, or $1.30 per diluted share, for the fourth quarter of 2020. Income from continuing operations to common stockholders for the full year 2021 was $374.5 million, or $4.61 per diluted share, compared to $409.4 million, or $4.58 per diluted share, for the full year 2020. Hilltop’s financial results from continuing operations for the fourth quarter and full year 2021 included decreases in year-over-year mortgage origination segment net gains from sales of loans and other mortgage production income as well as declines in net revenues within the broker-dealer segment’s structured finance business and fixed income services lines, partially offset by improvements in the macroeconomic outlook and resulting beneficial impact on loan expected loss rates within the banking segment.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.15 per common share, a 25% increase from the prior quarter, payable on February 28, 2022, to all common stockholders of record as of the close of business on February 15, 2022. Additionally, during 2021, Hilltop paid $123.6 million to repurchase approximately 3.63 million shares of its common stock at an average price of $34.01 per share pursuant to the 2021 stock repurchase program. These shares were returned to the pool of authorized but unissued shares of common stock. The Hilltop Board of Directors authorized a new stock repurchase program through January 2023, under which Hilltop may repurchase, in the aggregate, up to $100.0 million of its outstanding common stock.

The COVID-19 pandemic has adversely impacted financial markets and overall economic conditions, and is expected to continue to have implications on our business and operations. The extent of the impact of the pandemic on our operational and financial performance for 2022 is currently uncertain and will depend on certain developments outside of our control, including, among others, the ongoing distribution and effectiveness of vaccines, the emergence of new variants of the virus, government stimulus, the ultimate impact of the pandemic on our customers and clients, and additional, or extended, federal, state and local government orders and regulations that might be imposed in response to the pandemic.

Jeremy B. Ford, President and CEO of Hilltop, said, “I am pleased to announce Hilltop’s 2021 strong performance that represents a second consecutive year of outstanding results. Once again, Hilltop generated consolidated annual pre-tax income above $500 million, return on average assets above 2%, return on average equity above 15% and growth in book value per share above 12%. This exceptional financial performance was primarily the result of strong execution by our talented employees, prudent leadership from our experienced management teams, and a commitment to serve our customers and the communities in which they live. PlainsCapital Bank realized further improvement in the quality of its loan portfolio, while expanding business sourcing efforts and the recruitment of talented lending teams. PrimeLending once again originated nearly $23 billion in mortgages, which is a reflection of a well-tuned platform. For the year, Hilltop Securities produced net revenue of $424 million. While the fourth quarter was challenging, Hilltop Securities has an improved infrastructure and a talented team to drive towards a successful 2022.”

Fourth Quarter 2021 Highlights for Hilltop:

  • The reversal of credit losses was $18.6 million during the fourth quarter of 2021, compared to a reversal of credit losses of $5.8 million in the third quarter of 2021;
    • The reversal of credit losses during the fourth quarter of 2021 primarily reflected improvements in both macroeconomic forecast assumptions and credit quality metrics.
  • For the fourth quarter of 2021, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within our mortgage origination segment was $192.0 million, compared to $297.6 million in the fourth quarter of 2020, a 35.5% decrease;
    • Mortgage loan origination production volume was $5.0 billion during the fourth quarter of 2021, compared to $6.8 billion in the fourth quarter of 2020;
    • Net gains from mortgage loans sold to third parties increased to 362 basis points during the fourth quarter of 2021, compared to 359 basis points in the third quarter of 2021.
  • Hilltop’s consolidated annualized return on average assets and return on average equity for the fourth quarter of 2021 were 1.41% and 9.93%, respectively, compared to 2.83% and 20.56%, respectively, for the fourth quarter of 2020;
  • Hilltop’s book value per common share increased to $31.95 at December 31, 2021, compared to $31.36 at September 30, 2021;
  • Hilltop’s total assets were $18.7 billion and $18.0 billion at December 31, 2021 and September 30, 2021, respectively;
  • Loans1, net of allowance for credit losses, increased to $7.1 billion at December 31, 2021 compared to $6.8 billion at September 30, 2021;
    • Includes supporting our impacted banking clients through funding of over 4,100 loans through both the initial and second rounds of the Paycheck Protection Program, or PPP, with a remaining balance of approximately $78 million as of December 31, 2021, compared to approximately $133 million as of September 30, 2021;
    • Through January 21, 2022, the Small Business Administration, or SBA, had approved approximately 3,600 PPP forgiveness applications from the Bank totaling approximately $833 million, with PPP loans of approximately $7 million currently pending SBA review and approval.
  • Non-performing loans were $51.1 million, or 0.52% of total loans, at December 31, 2021, compared to $62.2 million, or 0.64% of total loans, at September 30, 2021;
  • We further supported our impacted banking clients during 2020 through the approval of COVID-19 related loan modifications of approximately $1.0 billion, and continued such support during 2021, resulting in a portfolio of active deferrals that have not reached the end of their deferral period of approximately $4 million as of December 31, 2021, compared to approximately $17 million in active deferment as of September 30, 2021;
    • While the majority of the portfolio of COVID-19 related loan modifications no longer require deferral, such loans may continue to represent elevated risk; therefore, monitoring of these loans continues.
  • Loans held for sale decreased by 10.9% from September 30, 2021 to $1.9 billion at December 31, 2021;
  • Total deposits were $12.8 billion and $12.1 billion at December 31, 2021 and September 30, 2021, respectively;
  • Hilltop maintained strong capital levels2 with a Tier 1 Leverage Ratio3 of 12.58% and a Common Equity Tier 1 Capital Ratio of 21.22% at December 31, 2021;
  • Hilltop’s consolidated net interest margin4 decreased to 2.44% for the fourth quarter of 2021, compared to 2.53% in the third quarter of 2021;
    • Includes previously deferred interest income of $2.2 million during the fourth quarter of 2021, compared to $4.6 million during the third quarter of 2021, related to PPP loan-related origination fees.
  • For the fourth quarter of 2021, noninterest income from continuing operations was $284.8 million, compared to $447.9 million in the fourth quarter of 2020, a 36.4% decrease;
  • For the fourth quarter 2021, noninterest expense from continuing operations was $322.2 million, compared to $402.3 million in the fourth quarter of 2020, a 19.9% decrease; and
  • Hilltop’s effective tax rate from continuing operations was 24.2% during the fourth quarter of 2021, compared to 25.1% during the same period in 2020.



Discontinued Operations

On June 30, 2020, Hilltop completed the sale of National Lloyds Corporation, or NLC, which comprised the operations of its former insurance segment, for cash proceeds of $154.1 million. During 2020, Hilltop recognized an aggregate gain associated with this transaction of $36.8 million, net of transaction costs. Accordingly, insurance segment results and its assets and liabilities have been presented as discontinued operations. The resulting book gain from this sale transaction was not recognized for tax purposes pursuant to the rules promulgated under the Internal Revenue Code.

__________________________

Note: “Consolidated” refers to our consolidated financial position and consolidated results of operations, including discontinued operations and assets and liabilities of discontinued operations.

1

“Loans” reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $733.0 million and $645.6 million at December 31, 2021 and September 30, 2021, respectively.

2

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

3

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

4

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

 
 
 

Consolidated Financial and Other Information

 

Consolidated Balance Sheets

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in 000's)

 

2021

 

2021

 

2021

 

2021

 

2020

Cash and due from banks

 

$

2,823,138

 

 

$

2,463,111

 

 

$

1,372,818

 

 

$

1,564,489

 

 

$

1,062,560

 

Federal funds sold

 

 

385

 

 

 

406

 

 

 

387

 

 

 

396

 

 

 

386

 

Assets segregated for regulatory purposes

 

 

221,740

 

 

 

269,506

 

 

 

207,284

 

 

 

273,393

 

 

 

290,357

 

Securities purchased under agreements to resell

 

 

118,262

 

 

 

155,908

 

 

 

202,638

 

 

 

106,342

 

 

 

80,319

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading, at fair value

 

 

647,998

 

 

 

609,813

 

 

 

682,483

 

 

 

528,712

 

 

 

694,255

 

Available for sale, at fair value, net

 

 

2,130,568

 

 

 

1,994,183

 

 

 

1,817,807

 

 

 

1,715,406

 

 

 

1,462,205

 

Held to maturity, at amortized cost, net

 

 

267,684

 

 

 

277,419

 

 

 

288,776

 

 

 

300,088

 

 

 

311,944

 

Equity, at fair value

 

 

250

 

 

 

221

 

 

 

193

 

 

 

189

 

 

 

140

 

 

 

 

3,046,500

 

 

 

2,881,636

 

 

 

2,789,259

 

 

 

2,544,395

 

 

 

2,468,544

 

Loans held for sale

 

 

1,878,190

 

 

 

2,108,878

 

 

 

2,885,458

 

 

 

2,538,986

 

 

 

2,788,386

 

Loans held for investment, net of unearned income

 

 

7,879,904

 

 

 

7,552,926

 

 

 

7,645,227

 

 

 

7,810,657

 

 

 

7,693,141

 

Allowance for credit losses

 

 

(91,352

)

 

 

(109,512

)

 

 

(115,269

)

 

 

(144,499

)

 

 

(149,044

)

Loans held for investment, net

 

 

7,788,552

 

 

 

7,443,414

 

 

 

7,529,958

 

 

 

7,666,158

 

 

 

7,544,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-dealer and clearing organization receivables

 

 

1,672,946

 

 

 

1,419,652

 

 

 

1,403,447

 

 

 

1,596,817

 

 

 

1,404,727

 

Premises and equipment, net

 

 

204,438

 

 

 

210,026

 

 

 

212,402

 

 

 

213,304

 

 

 

211,595

 

Operating lease right-of-use assets

 

 

112,328

 

 

 

115,942

 

 

 

115,698

 

 

 

101,055

 

 

 

105,757

 

Mortgage servicing assets

 

 

86,990

 

 

 

110,931

 

 

 

124,497

 

 

 

142,125

 

 

 

143,742

 

Other assets

 

 

452,880

 

 

 

526,339

 

 

 

535,536

 

 

 

648,895

 

 

 

555,983

 

Goodwill

 

 

267,447

 

 

 

267,447

 

 

 

267,447

 

 

 

267,447

 

 

 

267,447

 

Other intangible assets, net

 

 

15,284

 

 

 

16,455

 

 

 

17,705

 

 

 

19,035

 

 

 

20,364

 

Total assets

 

$

18,689,080

 

 

$

17,989,651

 

 

$

17,664,534

 

 

$

17,682,837

 

 

$

16,944,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

4,577,183

 

 

$

4,433,148

 

 

$

4,231,082

 

 

$

4,031,181

 

 

$

3,612,384

 

Interest-bearing

 

 

8,240,894

 

 

 

7,699,014

 

 

 

7,502,703

 

 

 

7,701,598

 

 

 

7,629,935

 

Total deposits

 

 

12,818,077

 

 

 

12,132,162

 

 

 

11,733,785

 

 

 

11,732,779

 

 

 

11,242,319

 

Broker-dealer and clearing organization payables

 

 

1,477,300

 

 

 

1,496,923

 

 

 

1,439,620

 

 

 

1,546,227

 

 

 

1,368,373

 

Short-term borrowings

 

 

859,444

 

 

 

747,040

 

 

 

915,919

 

 

 

676,652

 

 

 

695,798

 

Securities sold, not yet purchased, at fair value

 

 

96,586

 

 

 

113,064

 

 

 

132,950

 

 

 

97,055

 

 

 

79,789

 

Notes payable

 

 

387,904

 

 

 

395,804

 

 

 

396,653

 

 

 

401,713

 

 

 

381,987

 

Operating lease liabilities

 

 

130,960

 

 

 

134,296

 

 

 

134,019

 

 

 

120,339

 

 

 

125,450

 

Junior subordinated debentures

 

 

 

 

 

 

 

 

67,012

 

 

 

67,012

 

 

 

67,012

 

Other liabilities

 

 

369,606

 

 

 

468,020

 

 

 

348,200

 

 

 

595,045

 

 

 

632,889

 

Total liabilities

 

 

16,139,877

 

 

 

15,487,309

 

 

 

15,168,158

 

 

 

15,236,822

 

 

 

14,593,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

790

 

 

 

790

 

 

 

812

 

 

 

823

 

 

 

822

 

Additional paid-in capital

 

 

1,274,446

 

 

 

1,270,272

 

 

 

1,302,439

 

 

 

1,319,518

 

 

 

1,317,929

 

Accumulated other comprehensive income (loss)

 

 

(10,219

)

 

 

367

 

 

 

7,093

 

 

 

3,486

 

 

 

17,763

 

Retained earnings

 

 

1,257,014

 

 

 

1,204,307

 

 

 

1,159,304

 

 

 

1,094,727

 

 

 

986,792

 

Deferred compensation employee stock trust, net

 

 

752

 

 

 

751

 

 

 

754

 

 

 

752

 

 

 

771

 

Employee stock trust

 

 

(115

)

 

 

(116

)

 

 

(121

)

 

 

(121

)

 

 

(138

)

Total Hilltop stockholders' equity

 

 

2,522,668

 

 

 

2,476,371

 

 

 

2,470,281

 

 

 

2,419,185

 

 

 

2,323,939

 

Noncontrolling interests

 

 

26,535

 

 

 

25,971

 

 

 

26,095

 

 

 

26,830

 

 

 

26,708

 

Total stockholders' equity

 

 

2,549,203

 

 

 

2,502,342

 

 

 

2,496,376

 

 

 

2,446,015

 

 

 

2,350,647

 

Total liabilities & stockholders' equity

 

$

18,689,080

 

 

$

17,989,651

 

 

$

17,664,534

 

 

$

17,682,837

 

 

$

16,944,264

 

 
 

 

 

 

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)

 

2021

 

2021

 

2020

 

2021

 

2020

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

96,104

 

 

$

99,769

 

 

$

109,328

 

 

$

404,312

 

 

$

433,311

Securities borrowed

 

 

8,524

 

 

 

8,585

 

 

 

14,445

 

 

 

61,667

 

 

 

51,360

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

13,916

 

 

 

12,341

 

 

 

9,845

 

 

 

47,633

 

 

 

48,273

Tax-exempt

 

 

2,639

 

 

 

2,687

 

 

 

1,862

 

 

 

9,766

 

 

 

6,698

Other

 

 

1,872

 

 

 

1,796

 

 

 

1,381

 

 

 

6,595

 

 

 

6,853

Total interest income

 

 

123,055

 

 

 

125,178

 

 

 

136,861

 

 

 

529,973

 

 

 

546,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

4,404

 

 

 

5,303

 

 

 

9,269

 

 

 

23,624

 

 

 

47,040

Securities loaned

 

 

6,624

 

 

 

6,519

 

 

 

12,014

 

 

 

50,974

 

 

 

42,816

Short-term borrowings

 

 

2,279

 

 

 

2,400

 

 

 

2,154

 

 

 

9,065

 

 

 

11,611

Notes payable

 

 

5,871

 

 

 

5,465

 

 

 

4,807

 

 

 

21,386

 

 

 

15,897

Junior subordinated debentures

 

 

 

 

 

419

 

 

 

609

 

 

 

1,558

 

 

 

2,772

Other

 

 

(417

)

 

 

(18

)

 

 

636

 

 

 

384

 

 

 

2,193

Total interest expense

 

 

18,761

 

 

 

20,088

 

 

 

29,489

 

 

 

106,991

 

 

 

122,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

104,294

 

 

 

105,090

 

 

 

107,372

 

 

 

422,982

 

 

 

424,166

Provision for (reversal of) credit losses

 

 

(18,565

)

 

 

(5,819

)

 

 

(3,482

)

 

 

(58,213

)

 

 

96,491

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

 

 

122,859

 

 

 

110,909

 

 

 

110,854

 

 

 

481,195

 

 

 

327,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains from sale of loans and other mortgage production income

 

 

156,103

 

 

 

203,152

 

 

 

247,360

 

 

 

825,960

 

 

 

1,001,059

Mortgage loan origination fees

 

 

35,930

 

 

 

38,780

 

 

 

50,193

 

 

 

160,011

 

 

 

171,769

Securities commissions and fees

 

 

32,801

 

 

 

34,412

 

 

 

35,921

 

 

 

143,827

 

 

 

142,720

Investment and securities advisory fees and commissions

 

 

42,834

 

 

 

49,646

 

 

 

42,161

 

 

 

152,443

 

 

 

131,327

Other

 

 

17,178

 

 

 

41,955

 

 

 

72,296

 

 

 

128,034

 

 

 

243,605

Total noninterest income

 

 

284,846

 

 

 

367,945

 

 

 

447,931

 

 

 

1,410,275

 

 

 

1,690,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employees' compensation and benefits

 

 

229,717

 

 

 

258,679

 

 

 

291,489

 

 

 

1,007,235

 

 

 

1,059,645

Occupancy and equipment, net

 

 

25,741

 

 

 

25,428

 

 

 

27,596

 

 

 

100,602

 

 

 

99,416

Professional services

 

 

9,904

 

 

 

14,542

 

 

 

21,927

 

 

 

54,270

 

 

 

69,984

Other

 

 

56,832

 

 

 

56,525

 

 

 

61,336

 

 

 

225,291

 

 

 

224,758

Total noninterest expense

 

 

322,194

 

 

 

355,174

 

 

 

402,348

 

 

 

1,387,398

 

 

 

1,453,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

 

85,511

 

 

 

123,680

 

 

 

156,437

 

 

 

504,072

 

 

 

564,352

Income tax expense

 

 

20,715

 

 

 

28,257

 

 

 

39,295

 

 

 

117,976

 

 

 

133,071

Income from continuing operations

 

 

64,796

 

 

 

95,423

 

 

 

117,142

 

 

 

386,096

 

 

 

431,281

Income from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

3,734

 

 

 

 

 

 

38,396

Net income

 

 

64,796

 

 

 

95,423

 

 

 

120,876

 

 

 

386,096

 

 

 

469,677

Less: Net income attributable to noncontrolling interest

 

 

2,611

 

 

 

2,517

 

 

 

4,431

 

 

 

11,601

 

 

 

21,841

Income attributable to Hilltop

 

$

62,185

 

 

$

92,906

 

 

$

116,445

 

 

$

374,495

 

 

$

447,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

0.79

 

 

$

1.16

 

 

$

1.31

 

 

$

4.64

 

 

$

4.59

Earnings from discontinued operations

 

 

 

 

 

 

 

 

0.04

 

 

 

 

 

 

0.43

 

 

$

0.79

 

 

$

1.16

 

 

$

1.35

 

 

$

4.64

 

 

$

5.02

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

0.78

 

 

$

1.15

 

 

$

1.30

 

 

$

4.61

 

 

$

4.58

Earnings from discontinued operations

 

 

 

 

 

 

 

 

0.05

 

 

 

 

 

 

0.43

 

 

$

0.78

 

 

$

1.15

 

 

$

1.35

 

 

$

4.61

 

 

$

5.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.12

 

 

$

0.12

 

 

$

0.09

 

 

$

0.48

 

 

$

0.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

78,933

 

 

 

80,109

 

 

 

86,269

 

 

 

80,708

 

 

 

89,280

Diluted

 

 

79,427

 

 

 

80,542

 

 

 

86,420

 

 

 

81,173

 

 

 

89,304

 
 

 

 

 

Three Months Ended December 31, 2021

Segment Results

 

 

 

 

 

 

 

Mortgage

 

 

 

 

All Other and

 

Continuing

(in 000's)

 

Banking

 

Broker-Dealer

 

Origination

 

Corporate

 

Eliminations

 

Operations

Net interest income (expense)

 

$

97,194

 

 

$

11,673

 

 

$

(3,846

)

 

$

(3,519

)

 

$

2,792

 

 

$

104,294

 

Provision for (reversal of) credit losses

 

 

(18,450

)

 

 

(115

)

 

 

 

 

 

 

 

 

 

 

 

(18,565

)

Noninterest income

 

 

11,820

 

 

 

82,896

 

 

 

192,311

 

 

 

993

 

 

 

(3,174

)

 

 

284,846

 

Noninterest expense

 

 

59,046

 

 

 

92,967

 

 

 

157,172

 

 

 

13,492

 

 

 

(483

)

 

 

322,194

 

Income (loss) from continuing operations before taxes

 

$

68,418

 

 

$

1,717

 

 

$

31,293

 

 

$

(16,018

)

 

$

101

 

 

$

85,511

 

 

 

 

Year Ended December 31, 2021

Segment Results

 

 

 

 

 

 

 

Mortgage

 

 

 

 

All Other and

 

Continuing

(in 000's)

 

Banking

 

Broker-Dealer

 

Origination

 

Corporate

 

Eliminations

 

Operations

Net interest income (expense)

 

$

406,524

 

 

$

43,296

 

 

$

(20,400

)

 

$

(17,239

)

 

$

10,801

 

 

$

422,982

 

Provision for (reversal of) credit losses

 

 

(58,175

)

 

 

(38

)

 

 

 

 

 

 

 

 

 

 

 

(58,213

)

Noninterest income

 

 

45,113

 

 

 

381,125

 

 

 

986,990

 

 

 

9,133

 

 

 

(12,086

)

 

 

1,410,275

 

Noninterest expense

 

 

226,915

 

 

 

380,798

 

 

 

731,056

 

 

 

50,507

 

 

 

(1,878

)

 

 

1,387,398

 

Income (loss) from continuing operations before taxes

 

$

282,897

 

 

$

43,661

 

 

$

235,534

 

 

$

(58,613

)

 

$

593

 

 

$

504,072

 

 
 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

Selected Financial Data

 

2021

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hilltop Consolidated (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average stockholders' equity

 

 

9.93

%

 

 

14.96

%

 

 

20.56

%

 

 

15.38

%

 

 

20.03

%

Return on average assets

 

 

1.41

%

 

 

2.13

%

 

 

2.83

%

 

 

2.17

%

 

 

2.88

%

Net interest margin (2)

 

 

2.44

%

 

 

2.53

%

 

 

2.71

%

 

 

2.57

%

 

 

2.85

%

Net interest margin (taxable equivalent) (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

2.45

%

 

 

2.54

%

 

 

2.72

%

 

 

2.58

%

 

 

2.85

%

Impact of purchase accounting

 

 

12 bps

 

 

 

9 bps

 

 

 

15 bps

 

 

 

12 bps

 

 

 

14 bps

 

Book value per common share ($)

 

 

31.95

 

 

 

31.36

 

 

 

28.28

 

 

 

31.95

 

 

 

28.28

 

Shares outstanding, end of period (000's)

 

 

78,965

 

 

 

78,959

 

 

 

82,185

 

 

 

78,965

 

 

 

82,185

 

Dividend payout ratio (4)

 

 

15.19

%

 

 

10.34

%

 

 

6.67

%

 

 

10.34

%

 

 

7.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

2.81

%

 

 

2.99

%

 

 

3.37

%

 

 

3.07

%

 

 

3.31

%

Net interest margin (taxable equivalent) (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

2.82

%

 

 

3.00

%

 

 

3.38

%

 

 

3.08

%

 

 

3.31

%

Impact of purchase accounting

 

 

15 bps

 

 

 

11 bps

 

 

 

20 bps

 

 

 

16 bps

 

 

 

18 bps

 

Accretion of discount on loans ($000's)

 

 

4,716

 

 

 

3,221

 

 

 

5,629

 

 

 

18,789

 

 

 

18,831

 

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

 

 

405

 

 

 

62

 

 

 

(2,688

)

 

 

521

 

 

 

(21,145

)

Return on average assets

 

 

1.44

%

 

 

1.36

%

 

 

1.37

%

 

 

1.55

%

 

 

0.63

%

Fee income ratio

 

 

10.8

%

 

 

10.5

%

 

 

10.2

%

 

 

10.0

%

 

 

9.6

%

Efficiency ratio

 

 

54.2

%

 

 

48.8

%

 

 

53.0

%

 

 

50.3

%

 

 

53.8

%

Employees' compensation and benefits ($000's)

 

 

34,415

 

 

 

31,500

 

 

 

34,007

 

 

 

130,276

 

 

 

127,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-Dealer Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue ($000's) (5)

 

 

94,569

 

 

 

126,570

 

 

 

150,070

 

 

 

424,421

 

 

 

531,267

 

Employees' compensation and benefits ($000's) (6)

 

 

65,301

 

 

 

82,429

 

 

 

87,621

 

 

 

276,176

 

 

 

312,396

 

Variable compensation expense ($000's)

 

 

35,939

 

 

 

53,505

 

 

 

60,295

 

 

 

161,264

 

 

 

205,464

 

Compensation as a % of net revenue (6)

 

 

69.1

%

 

 

65.1

%

 

 

58.4

%

 

 

65.1

%

 

 

58.8

%

Pre-tax margin (7)

 

 

1.8

%

 

 

13.8

%

 

 

22.8

%

 

 

10.3

%

 

 

21.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Origination Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home purchases

 

 

3,559,137

 

 

 

3,948,420

 

 

 

3,683,564

 

 

 

14,429,190

 

 

 

13,413,545

 

Refinancings

 

 

1,430,369

 

 

 

1,646,208

 

 

 

3,114,630

 

 

 

8,239,093

 

 

 

9,556,649

 

Total mortgage loan originations - volume

 

 

4,989,506

 

 

 

5,594,628

 

 

 

6,798,194

 

 

 

22,668,283

 

 

 

22,970,194

 

Mortgage loan sales - volume ($000's)

 

 

4,988,538

 

 

 

6,195,559

 

 

 

6,571,234

 

 

 

23,059,160

 

 

 

22,514,170

 

Net gains from mortgage loan sales (basis points):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans sold to third parties

 

 

362

 

 

 

359

 

 

 

451

 

 

 

375

 

 

 

409

 

Impact of loans retained by banking segment

 

 

(15

)

 

 

(13

)

 

 

(3

)

 

 

(13

)

 

 

(3

)

As reported

 

 

347

 

 

 

346

 

 

 

448

 

 

 

362

 

 

 

406

 

Mortgage servicing rights asset ($000's) (8)

 

 

86,990

 

 

 

110,931

 

 

 

143,742

 

 

 

86,990

 

 

 

143,742

 

Employees' compensation and benefits ($000's)

 

 

121,758

 

 

 

134,814

 

 

 

163,822

 

 

 

568,221

 

 

 

586,713

 

Variable compensation expense ($000's)

 

 

73,208

 

 

 

88,153

 

 

 

116,736

 

 

 

373,929

 

 

 

405,116

__________________________

(1)

Ratios and financial data presented on a consolidated basis. For all 2020 periods presented, information includes discontinued operations.

(2)

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

(3)

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 $0.5 million, $0.6 million, $0.4 million, $0.2 million, and $0.3 million, respectively, for the periods presented and for the banking segment were $0.2 million, $0.2 million, $0.2 million, $0.2 million, and $0.2 million, respectively, for the periods presented.

(4)

Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share.

(5)

Net revenue is defined as the sum of total broker-dealer net interest income and total broker-dealer noninterest income.

(6)

Noted balances and ratios during all prior periods reflect certain reclassifications to conform to current period presentation.

(7)

Pre-tax margin is defined as income before income taxes divided by net revenue.

(8)

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

 

2021

 

2021

 

2021

 

2021

 

2020

Tier 1 capital (to average assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

10.20

%

 

 

10.02

%

 

 

10.22

%

 

 

10.50

%

 

 

10.44

%

Hilltop

 

 

12.58

%

 

 

12.64

%

 

 

12.87

%

 

 

13.01

%

 

 

12.64

%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

16.00

%

 

 

15.40

%

 

 

15.00

%

 

 

14.74

%

 

 

14.40

%

Hilltop

 

 

21.22

%

 

 

21.28

%

 

 

20.22

%

 

 

19.63

%

 

 

18.97

%

Tier 1 capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

16.00

%

 

 

15.40

%

 

 

15.00

%

 

 

14.74

%

 

 

14.40

%

Hilltop

 

 

21.22

%

 

 

21.28

%

 

 

20.82

%

 

 

20.22

%

 

 

19.57

%

Total capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

16.77

%

 

 

16.32

%

 

 

15.95

%

 

 

15.64

%

 

 

15.27

%

Hilltop

 

 

23.75

%

 

 

24.00

%

 

 

23.48

%

 

 

22.96

%

 

 

22.34

%

 
 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

Non-Performing Assets Portfolio Data

 

2021

 

2021

 

2021

 

2021

 

2020

Loans accounted for on a non-accrual basis ($000's) (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

6,601

 

 

 

5,705

 

 

 

7,211

 

 

 

10,668

 

 

 

11,133

 

Commercial and industrial

 

 

22,478

 

 

 

29,808

 

 

 

33,033

 

 

 

36,144

 

 

 

34,049

 

Construction and land development

 

 

2

 

 

 

366

 

 

 

474

 

 

 

501

 

 

 

507

 

1-4 family residential

 

 

21,123

 

 

 

25,255

 

 

 

27,100

 

 

 

30,937

 

 

 

32,263

 

Consumer

 

 

23

 

 

 

24

 

 

 

26

 

 

 

26

 

 

 

28

 

Broker-dealer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,227

 

 

 

61,158

 

 

 

67,844

 

 

 

78,276

 

 

 

77,980

 

Troubled debt restructurings included in accruing loans held for investment ($000's)

 

 

922

 

 

 

1,038

 

 

 

1,139

 

 

 

1,584

 

 

 

1,954

 

Non-performing loans ($000's)

 

 

51,149

 

 

 

62,196

 

 

 

68,983

 

 

 

79,860

 

 

 

79,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans as a % of total loans

 

 

0.52

%

 

 

0.64

%

 

 

0.66

%

 

 

0.77

%

 

 

0.76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned ($000's)

 

 

2,833

 

 

 

21,605

 

 

 

21,078

 

 

 

19,899

 

 

 

21,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other repossessed assets ($000's)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets ($000's)

 

 

53,982

 

 

 

83,801

 

 

 

90,061

 

 

 

99,759

 

 

 

101,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a % of total assets

 

 

0.29

%

 

 

0.47

%

 

 

0.51

%

 

 

0.56

%

 

 

0.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 90 days or more and still accruing ($000's) (2):

 

 

60,775

 

 

 

175,734

 

 

 

245,828

 

 

 

265,230

 

 

 

243,630

 

__________________________

(1)

Loans accounted for on a non-accrual basis do not include COVID-19 related loan modifications. The Bank’s COVID-19 payment deferral programs allow for a deferral of principal and/or interest payments with such deferred principal payments due and payable on the maturity date of the existing loan. Since the second quarter of 2020, the Bank’s actions included approval of COVID-19 related loan modifications, resulting in active loan modifications of approximately $4 million as of December 31, 2021, down from approximately $17 million as of September 30, 2021.

(2)

Loans past due 90 days or more and still accruing were primarily comprised of loans held for sale and guaranteed by U.S. government agencies, including loans that are subject to repurchase, or have been repurchased, by PrimeLending.

 
 

 

 

 

Three Months Ended December 31,

 

 

2021

 

2020

 

 

Average

 

Interest

 

Annualized

 

Average

 

Interest

 

Annualized

 

 

Outstanding

 

Earned or

 

Yield or

 

Outstanding

 

Earned or

 

Yield or

Net Interest Margin (Taxable Equivalent) Details (1)

 

Balance

 

Paid

 

Rate

 

Balance

 

Paid

 

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

1,852,140

 

 

$

13,708

 

2.96

%

 

$

2,760,798

 

 

$

18,692

 

2.71

%

Loans held for investment, gross (2)

 

 

7,695,090

 

 

 

82,396

 

4.25

%

 

 

7,732,754

 

 

 

90,636

 

4.62

%

Investment securities - taxable

 

 

2,677,894

 

 

 

13,916

 

2.08

%

 

 

2,132,863

 

 

 

9,823

 

1.84

%

Investment securities - non-taxable (3)

 

 

331,959

 

 

 

3,188

 

3.84

%

 

 

258,644

 

 

 

2,188

 

3.38

%

Federal funds sold and securities purchased under agreements to resell

 

 

194,351

 

 

 

164

 

0.33

%

 

 

85,716

 

 

 

 

0.00

%

Interest-bearing deposits in other financial institutions

 

 

2,683,656

 

 

 

943

 

0.14

%

 

 

1,200,635

 

 

 

487

 

0.16

%

Securities borrowed

 

 

1,474,421

 

 

 

8,524

 

2.26

%

 

 

1,501,389

 

 

 

14,445

 

3.76

%

Other

 

 

52,848

 

 

 

765

 

5.74

%

 

 

49,648

 

 

 

913

 

7.31

%

Interest-earning assets, gross (3)

 

 

16,962,359

 

 

 

123,604

 

2.89

%

 

 

15,722,447

 

 

 

137,184

 

3.45

%

Allowance for credit losses

 

 

(109,555

)

 

 

 

 

 

 

 

(155,142

)

 

 

 

 

 

Interest-earning assets, net

 

 

16,852,804

 

 

 

 

 

 

 

 

15,567,305

 

 

 

 

 

 

Noninterest-earning assets

 

 

1,402,216

 

 

 

 

 

 

 

 

1,420,479

 

 

 

 

 

 

Total assets

 

$

18,255,020

 

 

 

 

 

 

 

$

16,987,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

7,901,704

 

 

$

4,404

 

0.22

%

 

$

7,523,955

 

 

$

9,269

 

0.49

%

Securities loaned

 

 

1,422,303

 

 

 

6,624

 

1.85

%

 

 

1,398,943

 

 

 

12,014

 

3.42

%

Notes payable and other borrowings

 

 

1,233,924

 

 

 

7,733

 

2.49

%

 

 

1,150,439

 

 

 

8,206

 

2.84

%

Total interest-bearing liabilities

 

 

10,557,931

 

 

 

18,761

 

0.70

%

 

 

10,073,337

 

 

 

29,489

 

1.17

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

4,509,891

 

 

 

 

 

 

 

 

3,669,230

 

 

 

 

 

 

Other liabilities

 

 

677,433

 

 

 

 

 

 

 

 

965,150

 

 

 

 

 

 

Total liabilities

 

 

15,745,255

 

 

 

 

 

 

 

 

14,707,717

 

 

 

 

 

 

Stockholders’ equity

 

 

2,484,301

 

 

 

 

 

 

 

 

2,252,989

 

 

 

 

 

 

Noncontrolling interest

 

 

25,464

 

 

 

 

 

 

 

 

27,078

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

18,255,020

 

 

 

 

 

 

 

$

16,987,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (3)

 

 

 

 

$

104,843

 

 

 

 

 

 

$

107,695

 

 

Net interest spread (3)

 

 

 

 

 

 

 

2.19

%

 

 

 

 

 

 

 

2.28

%

Net interest margin (3)

 

 

 

 

 

 

 

2.45

%

 

 

 

 

 

 

 

2.72

%

 
 

 

 

 

Year Ended December 31,

 

 

2021

 

2020

 

 

Average

 

Interest

 

Annualized

 

Average

 

Interest

 

Annualized

 

 

Outstanding

 

Earned or

 

Yield or

 

Outstanding

 

Earned or

 

Yield or

Net Interest Margin (Taxable Equivalent) Details (1)

 

Balance

 

Paid

 

Rate

 

Balance

 

Paid

 

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

2,293,543

 

 

$

64,767

 

2.82

%

 

$

2,306,203

 

 

$

74,467

 

3.23

%

Loans held for investment, gross (2)

 

 

7,645,292

 

 

 

339,548

 

4.44

%

 

 

7,618,723

 

 

 

358,844

 

4.71

%

Investment securities - taxable

 

 

2,493,848

 

 

 

47,582

 

1.91

%

 

 

1,897,859

 

 

 

49,936

 

2.63

%

Investment securities - non-taxable (3)

 

 

313,703

 

 

 

11,448

 

3.65

%

 

 

231,824

 

 

 

7,918

 

3.42

%

Federal funds sold and securities purchased under agreements to resell

 

 

152,273

 

 

 

372

 

0.24

%

 

 

90,961

 

 

 

138

 

0.15

%

Interest-bearing deposits in other financial institutions

 

 

2,078,666

 

 

 

2,942

 

0.14

%

 

 

1,257,902

 

 

 

3,165

 

0.25

%

Securities borrowed

 

 

1,445,464

 

 

 

61,667

 

4.21

%

 

 

1,435,572

 

 

 

51,360

 

3.58

%

Other

 

 

50,929

 

 

 

3,332

 

6.54

%

 

 

59,412

 

 

 

3,687

 

6.21

%

Interest-earning assets, gross (3)

 

 

16,473,718

 

 

 

531,658

 

3.23

%

 

 

14,898,456

 

 

 

549,515

 

3.69

%

Allowance for credit losses

 

 

(129,689

)

 

 

 

 

 

 

 

(122,148

)

 

 

 

 

 

Interest-earning assets, net

 

 

16,344,029

 

 

 

 

 

 

 

 

14,776,308

 

 

 

 

 

 

Noninterest-earning assets

 

 

1,451,928

 

 

 

 

 

 

 

 

1,537,269

 

 

 

 

 

 

Total assets

 

$

17,795,957

 

 

 

 

 

 

 

$

16,313,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

7,722,584

 

 

$

23,624

 

0.31

%

 

$

7,397,121

 

 

$

47,040

 

0.64

%

Securities loaned

 

 

1,374,142

 

 

 

50,974

 

3.71

%

 

 

1,336,873

 

 

 

42,817

 

3.20

%

Notes payable and other borrowings

 

 

1,216,381

 

 

 

32,393

 

2.66

%

 

 

1,222,044

 

 

 

33,249

 

2.72

%

Total interest-bearing liabilities

 

 

10,313,107

 

 

 

106,991

 

1.04

%

 

 

9,956,038

 

 

 

123,106

 

1.24

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

4,157,962

 

 

 

 

 

 

 

 

3,304,475

 

 

 

 

 

 

Other liabilities

 

 

863,976

 

 

 

 

 

 

 

 

791,002

 

 

 

 

 

 

Total liabilities

 

 

15,335,045

 

 

 

 

 

 

 

 

14,051,515

 

 

 

 

 

 

Stockholders’ equity

 

 

2,435,185

 

 

 

 

 

 

 

 

2,235,690

 

 

 

 

 

 

Noncontrolling interest

 

 

25,727

 

 

 

 

 

 

 

 

26,372

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

17,795,957

 

 

 

 

 

 

 

$

16,313,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (3)

 

 

 

 

$

424,667

 

 

 

 

 

 

$

426,409

 

 

Net interest spread (3)

 

 

 

 

 

 

 

2.19

%

 

 

 

 

 

 

 

2.45

%

Net interest margin (3)

 

 

 

 

 

 

 

2.58

%

 

 

 

 

 

 

 

2.85

%

__________________________

(1)

Information presented on a consolidated basis. For all 2020 periods presented, information includes discontinued operations.

(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 rates for the periods presented. The adjustment to interest income was $0.5 million and $0.3 million for the three months ended December 31, 2021 and 2020, respectively, and $1.7 million and $1.2 million for the year ended December 31, 2021 and 2020, 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 28, 2022. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review fourth quarter and full year 2021 financial results. Interested parties can access the conference call by dialing 1-844-200-6205 (United States), 1-833-950-0062 (Canada) or 1-929-526-1599 (all other locations) and then using the access code 755646. The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop-holdings.com).

About Hilltop

Hilltop Holdings is a Dallas-based financial holding company. Its primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank. PlainsCapital Bank’s wholly owned subsidiary, PrimeLending, provides residential mortgage lending throughout the United States. Hilltop Holdings’ broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. At December 31, 2021, Hilltop employed approximately 4,900 people and operated approximately 410 locations in 47 states. Hilltop Holdings’ common stock is listed on the New York Stock Exchange under the symbol “HTH.” Find more information at Hilltop-Holdings.com, PlainsCapital.com, PrimeLending.com and Hilltopsecurities.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements speak only as of the date they are made and, except as required by law, we do not assume any duty to update forward-looking statements. Such forward-looking statements include, but are not limited to, statements concerning such things as our plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact, and may be identified by words such as “anticipates,” “believes,” “building,” “could,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “probable,” “progressing,” “projects,” “seeks,” “should,” “target,” “view,” “well-tuned,” “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 COVID-19 pandemic and the response of governmental authorities to the pandemic and disruptions in global or national supply chains, which have had, and may continue to have, an adverse impact on the global economy and our business operations and performance; (ii) 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; (iii) effectiveness of our data security controls in the face of cyber attacks; (iv) changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil; (v) changes in the interest rate environment and transitions away from the London Interbank Offered Rate; and (vi) risks associated with concentration in real estate related loans. 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.

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