Hilltop Holdings Inc. Announces Financial Results for First Quarter 2016

Company Release - 4/28/2016 5:05 PM ET

DALLAS--(BUSINESS WIRE)-- Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the first quarter of 2016. Hilltop produced income to common stockholders of $27.6 million, or $0.28 per diluted share, for the first quarter of 2016, compared to $111.9 million, or $1.11 per diluted share, for the first quarter of 2015. This year-over-year change in income to common stockholders included the recognition of a bargain purchase gain related to the acquisition of SWS (“SWS Merger”) of $81.3 million, or $0.81 per diluted share, during the first quarter of 2015. Hilltop’s annualized return on average assets and return on average equity for the first quarter of 2016 were 0.96% and 6.32%, respectively, compared to 3.64% and 26.76% for the first quarter of 2015, respectively.

Jeremy Ford, CEO of Hilltop, said “We are pleased to report solid financial results for the first quarter of 2016. PlainsCapital Bank continues to generate capital driven by consistent loan growth, stable credit quality and a low-cost deposit franchise. With sound underlying fundamentals, the Bank remains well-positioned to serve its customers and gain market share in the current market environment. PrimeLending delivered impressive mortgage origination growth during the quarter. With its primary focus on purchase business, PrimeLending has maintained a durable market position. National Lloyds offset unseasonably early spring storms in Texas with a slight increase in net premiums earned and a reduced expense ratio to deliver another profitable quarter to start the year.”

Mr. Ford continued, “HilltopSecurities successfully merged the broker-dealers into one entity in January 2016 and, adjusting for transaction and integration related costs, has steadily improved its pre-tax margin over the last five quarters.”

First Quarter 2016 Highlights for Hilltop:

  • Hilltop’s total assets were $11.7 billion at March 31, 2016, compared to $11.9 billion at December 31, 2015;
  • Hilltop’s common equity increased by $21.7 million from December 31, 2015 to $1.8 billion at March 31, 2016;
  • Non-covered loans1 held for investment, net of allowance for loan losses, increased by 2.8% to $5.3 billion and covered loans1, net of allowance for loan losses, decreased by 8.6% to $346.2 million from December 31, 2015 to March 31, 2016;
  • Total deposits were $7.0 billion at March 31, 2016 and December 31, 2015;
  • Hilltop was well-capitalized with a Tier 1 Leverage Ratio2 of 13.35% and Total Capital Ratio of 18.60% at March 31, 2016;
  • Hilltop’s taxable equivalent net interest margin3 was 3.70% for the first quarter of 2016, a three basis point decrease from 3.73% in the fourth quarter of 2015;
  • The provision for loan losses was $3.4 million during the first quarter of 2016, compared to $4.3 million in the fourth quarter of 2015;
  • For the first quarter of 2016, noninterest income was $277.7 million, compared to $352.8 million in the first quarter of 2015 and $271.6 million without the bargain purchase gain of $81.3 million noted above, a 2.3% increase;
  • For the first quarter of 2016, noninterest expense was $325.2 million, compared to $314.5 million in the first quarter of 2015, a 3.4% increase;
  • Noninterest expense during the first quarter of 2016 included a downward valuation adjustment associated with a significant covered other real estate owned property of $7.9 million; and
  • In connection with the SWS Merger, during the first quarter of 2016, Hilltop incurred $4.8 million in pre-tax transaction and integration costs, consisting of $4.0 million in the broker-dealer segment and $0.8 million within corporate.

1 “Covered loans” refers to loans acquired in the FNB Transaction that are subject to loss-share agreements with the FDIC, while all other loans are referred to as “non-covered loans.”

2 Based on the end of period Tier 1 capital divided by total average assets during the first quarter of 2016, excluding goodwill and intangible assets.

3 Taxable equivalent adjustments are based on a 35% tax rate. Measure is defined as taxable equivalent 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) 2016 2015 2015 2015 2015
Cash and due from banks $ 512,103 $ 652,036 $ 526,692 $ 583,043 $ 694,108
Federal funds sold 15,406 17,409 24,861 22,814 14,425
Securities purchased under agreements to resell 96,646 105,660 83,889 79,153 67,227
Assets segregated for regulatory purposes 120,714 158,613 228,251 188,094 278,280
Securities:
Trading, at fair value 368,425 214,146 292,418 265,429 320,153
Available for sale, at fair value 666,328 673,706 726,132 763,463 859,212
Held to maturity, at amortized cost   310,478     332,022     305,316     312,960     183,792  
1,345,231 1,219,874 1,323,866 1,341,852 1,363,157
Loans held for sale 1,344,333 1,533,678 1,354,107 1,397,617 1,215,308
Non-covered loans, net of unearned income 5,366,065 5,220,040 4,999,529 4,956,969 4,834,687
Allowance for non-covered loan losses   (48,450 )   (45,415 )   (42,989 )   (40,484 )   (39,365 )
Non-covered loans, net 5,317,615 5,174,625 4,956,540 4,916,485 4,795,322
 
Covered loans, net of allowance for covered loan losses 346,169 378,762 420,547 493,299 550,626
Broker-dealer and clearing organization receivables 1,370,622 1,362,499 2,111,864 2,070,598 2,221,756
Premises and equipment, net 198,414 200,618 204,273 206,411 215,684
FDIC indemnification asset 80,522 91,648 92,902 102,381 107,567
Covered other real estate owned 78,890 99,090 106,024 125,510 137,703
Other assets 601,181 565,813 644,916 637,747 585,909
Goodwill 251,808 251,808 251,808 251,808 251,808
Other intangible assets, net   52,274     54,868     58,916     61,527     64,267  
Total assets $ 11,731,928   $ 11,867,001   $ 12,389,456   $ 12,478,339   $ 12,563,147  
 
Deposits:
Non-interest bearing $ 2,233,608 $ 2,235,436 $ 2,173,890 $ 2,135,988 $ 2,259,790
Interest bearing   4,750,567     4,717,247     4,646,859     4,660,449     4,869,487  
Total deposits 6,984,175 6,952,683 6,820,749 6,796,437 7,129,277
Broker-dealer and clearing organization payables 1,284,016 1,338,305 2,045,604 2,048,585 1,951,495
Short-term borrowings 832,921 947,373 910,490 1,100,025 999,476
Securities sold, not yet purchased, at fair value 165,704 130,044 156,775 135,592 139,481
Notes payable 232,190 238,716 243,556 245,420 108,682
Junior subordinated debentures 67,012 67,012 67,012 67,012 67,012
Other liabilities   405,899     454,743     428,442     410,004     386,932  
Total liabilities 9,971,917 10,128,876 10,672,628 10,803,075 10,782,355
 
Preferred stock 114,068
Common stock 986 989 989 995 1,003
Additional paid-in capital 1,567,150 1,577,270 1,574,769 1,582,655 1,592,585
Accumulated other comprehensive income (loss) 6,878 2,629 4,592 (1,105 ) 5,750
Retained earnings 183,042 155,475 134,748 91,008 65,918
Deferred compensation employee stock trust, net 1,020 1,034 1,182 1,182 1,189
Employee stock trust   (428 )   (443 )   (590 )   (590 )   (597 )
Total Hilltop stockholders' equity 1,758,648 1,736,954 1,715,690 1,674,145 1,779,916
Noncontrolling interests   1,363     1,171     1,138     1,119     876  
Total stockholders' equity   1,760,011     1,738,125     1,716,828     1,675,264     1,780,792  
Total liabilities & stockholders' equity $ 11,731,928   $ 11,867,001   $ 12,389,456   $ 12,478,339   $ 12,563,147  
 
 
      Three Months Ended
Consolidated Income Statements March 31,     December 31,     September 30,     June 30,     March 31,
(in 000's, except per share data) 2016 2015 2015 2015 2015
Interest income:
Loans, including fees $ 91,551 $ 94,689 $ 111,315 $ 96,967 $ 87,388
Securities borrowed 7,589 11,242 10,116 9,675 10,018
Securities:
Taxable 6,367 7,046 6,262 6,227 7,049
Tax-exempt 1,637 1,647 1,683 1,557 1,741
Other   1,009   1,338   1,169   1,236   1,473
Total interest income 108,153 115,962 130,545 115,662 107,669
 
Interest expense:
Deposits 4,102 3,589 3,719 3,900 4,315
Securities loaned 5,987 8,388 7,110 6,889 7,506
Short-term borrowings 1,120 1,218 1,189 1,143 1,024
Notes payable 2,582 2,661 2,524 2,289 669
Junior subordinated debentures 645 616 605 595 585
Other   176   177   187   179   178
Total interest expense 14,612 16,649 15,334 14,995 14,277
 
Net interest income 93,541 99,313 115,211 100,667 93,392
Provision for loan losses   3,407   4,277   5,593   158   2,687
Net interest income after provision for loan losses 90,134 95,036 109,618 100,509 90,705
 
Noninterest income:
Net realized gains on securities 46 4,403
Net gains from sale of loans and other mortgage production income 127,297 114,080 137,303 147,175 120,545
Mortgage loan origination fees 18,813 19,514 22,647 20,958 14,589
Net insurance premiums earned 39,733 41,001 41,196 40,318 39,567
Securities commissions and fees 38,752 37,459 39,070 41,213 42,918
Investment and securities advisory fees and commissions 23,819 33,678 27,667 29,665 24,922
Bargain purchase gain 81,289
Other   29,226   31,195   28,586   22,071   24,613
Total noninterest income 277,686 276,927 296,469 301,400 352,846
 
Noninterest expense:
Employees' compensation and benefits 182,655 182,472 200,620 200,291 182,504
Loss and loss adjustment expenses 21,959 21,630 17,335 41,241 18,860
Policy acquisition and other underwriting expenses 11,252 11,928 11,784 11,740 11,674
Occupancy and equipment, net 27,791 30,285 29,341 30,842 29,185
Other   81,544   92,406   74,422   69,203   72,253
Total noninterest expense 325,201 338,721 333,502 353,317 314,476
 
Income before income taxes 42,619 33,242 72,585 48,592 129,075
Income tax expense   14,423   12,020   25,338   18,137   15,420
Net income 28,196 21,222 47,247 30,455 113,655
Less: Net income attributable to noncontrolling interest   629   495   353   405   353
Income attributable to Hilltop 27,567 20,727 46,894 30,050 113,302
Dividends on preferred stock         428   1,426
Income applicable to Hilltop common stockholders $ 27,567 $ 20,727 $ 46,894 $ 29,622 $ 111,876
 
Earnings per common share:
Basic $ 0.28 $ 0.21 $ 0.47 $ 0.30 $ 1.12
Diluted $ 0.28 $ 0.21 $ 0.47 $ 0.30 $ 1.11
Weighted average shares outstanding:
Basic 98,153 98,412 98,676 99,486 99,741
Diluted 98,669 99,266 99,556 100,410 100,627
 
 
      Three Months Ended March 31, 2016
Segment Results         Mortgage             All Other and     Hilltop
(in 000's) Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated
Net interest income (expense) $ 86,105 $ 7,051 $ (2,569 ) $ 740 $ (1,714 ) $ 3,928 $ 93,541
Provision for loan losses 3,500 (93 ) 3,407
Noninterest income 12,956 80,883 146,338 41,804 1 (4,296 ) 277,686
Noninterest expense   64,357   84,261     134,671     36,375   5,849     (312 )   325,201
Income (loss) before income taxes $ 31,204 $ 3,766   $ 9,098   $ 6,169 $ (7,562 ) $ (56 ) $ 42,619
 
 
      Three Months Ended
March 31,     December 31,     September 30,     June 30,     March 31,
Selected Financial Data 2016 2015 2015 2015 2015
 

Hilltop Consolidated:

Return on average stockholders' equity 6.32 % 4.70 % 10.97 % 7.12 % 26.76 %
Return on average assets 0.96 % 0.68 % 1.49 % 0.97 % 3.64 %
Net interest margin (taxable equivalent)(1):
As reported 3.70 % 3.73 % 4.20 % 3.75 % 3.53 %
Impact of purchase accounting 74 bps 79 bps 137 bps 96 bps 69 bps
Book value per common share ($) 17.84 17.56 17.35 16.82 16.61
Shares outstanding, end of period (000's) 98,585 98,896 98,893 99,515 100,286
 

Banking Segment:

Net interest margin (taxable equivalent)(1):
As reported 4.73 % 4.92 % 5.79 % 5.02 % 4.59 %
Impact of purchase accounting 103 bps 119 bps 210 bps 145 bps 109 bps
Accretion of discount on loans ($000's) 16,631 19,503 36,000 23,632 16,984
Non-covered net charge-offs (recoveries) ($000's) 650 2,088 1,775 (532 ) 470
Return on average assets 0.98 % 1.07 % 1.64 % 1.41 % 1.28 %
Fee income ratio 13.08 % 13.83 % 11.64 % 14.20 % 18.79 %
Efficiency ratio 64.97 % 62.78 % 50.56 % 57.14 % 56.96 %
Employees' compensation and benefits ($000's) 29,125 27,456 29,881 30,689 32,624
 

Broker-Dealer Segment:

Employees' compensation and benefits ($000's) 57,816 62,868 64,099 64,304 64,358
Compensation as a % of net revenue 65.7 % 63.2 % 69.6 % 72.8 % 73.5 %
Pre-tax margin (2) 8.78 % 8.62 % 3.85 % 3.54 % -0.36 %
 

Mortgage Origination Segment:

Mortgage loan originations - volume ($000's):
Home purchases 2,050,825 2,344,328 2,945,626 2,913,479 1,688,359
Refinancings 878,291   721,308   693,572   920,286   1,125,161  
Total mortgage loan originations - volume 2,929,116 3,065,636 3,639,198 3,833,765 2,813,520
Mortgage loan sales - volume ($000's) 3,117,605 2,888,903 3,699,047 3,635,853 2,905,266
Mortgage servicing rights asset ($000's) (3) 39,863 52,285 47,527 44,985 31,648
Employees' compensation and benefits ($000's) 90,690 87,387 101,490 101,220 80,546
Variable compensation expense ($000's) 51,689 48,706 64,582 67,172 48,130
 

Insurance Segment:

Loss and LAE ratio 55.3 % 52.8 % 42.1 % 102.3 % 47.7 %
Expense ratio 33.2 % 34.2 % 33.3 % 33.5 % 34.1 %
Combined ratio 88.5 % 87.0 % 75.4 % 135.8 % 81.8 %
Employees' compensation and benefits ($000's) 2,178 2,180 2,182 2,065 1,999
 
 

(1) Taxable equivalent adjustments are based on a 35% tax rate. Measure is defined as taxable equivalent net interest income divided by average interest-earning assets.

(2) Excludes pre-tax merger and integration-related costs directly attributable to the SWS Merger.

(3) Excludes mortgage servicing rights assets related to loans serviced for the banking segment.

                     
March 31, December 31, September 30, June 30, March 31,
Capital Ratios 2016 2015 2015 2015 2015
Tier 1 capital (to average assets):
Bank 12.70 % 13.22 % 12.77 % 12.17 % 11.34 %
Hilltop 13.35 % 12.65 % 12.01 % 11.87 % 12.68 %
Common equity Tier 1 capital (to risk-weighted assets):
Bank 15.10 % 16.23 % 17.36 % 16.46 % 16.46 %
Hilltop 17.56 % 17.87 % 18.36 % 18.02 % 18.05 %
Tier 1 capital (to risk-weighted assets):
Bank 15.12 % 16.25 % 17.36 % 16.46 % 16.46 %
Hilltop 18.17 % 18.48 % 18.89 % 18.74 % 20.26 %
Total capital (to risk-weighted assets):
Bank 15.87 % 16.99 % 18.13 % 17.17 % 17.19 %
Hilltop 18.60 % 18.89 % 19.29 % 19.29 % 20.82 %
 
                     
March 31, December 31, September 30, June 30, March 31,
Non-Covered Non-Performing Loans Portfolio Data 2016 2015 2015 2015 2015
 
Non-covered loans accounted for on a non-accrual basis ($000's):
Commercial and industrial 19,179 17,764 22,302 23,353 23,222
Real estate 7,802 7,160 7,087 6,612 2,481
Construction and land development 102 114 118 253 726
Consumer 1 7 14 21
Broker-dealer          
27,084 25,045 29,521 30,239 26,429
 
Non-covered non-performing loans as a % of total non-covered loans 0.40 % 0.37 % 0.46 % 0.48 % 0.44 %
 
Non-covered other real estate owned ($000's) 543 394 511 920 6,263
 
Other repossessed assets ($000's) 30 87
 
Non-covered non-performing assets ($000's) 27,657 25,439 30,032 31,159 32,779
 
Non-covered non-performing assets as a percentage of total assets 0.24 % 0.21 % 0.24 % 0.25 % 0.26 %
 
Non-covered non-PCI loans past due 90 days or more and still accruing ($000's) 51,943 50,776 37,435 31,073 24,248
 
Troubled debt restructurings included in accruing non-covered loans ($000's) 1,409 1,418 3,664 2,830 2,879
 
 
      Three Months Ended March 31,
2016     2015
Average     Interest     Annualized Average     Interest     Annualized
Outstanding Earned or Yield or Outstanding Earned or Yield or
Balance Paid Rate Balance Paid Rate
Assets
Interest-earning assets
Loans, gross (1) $ 6,733,697 $ 91,551 5.41 % $ 6,354,615 $ 87,388 5.50 %
Investment securities - taxable 1,044,705 6,348 2.44 % 1,164,030 7,049 2.80 %
Investment securities - non-taxable (2) 261,656 2,327 3.56 % 264,123 2,525 3.84 %
Federal funds sold and securities purchased under agreements to resell 125,308 26 0.08 % 70,449 17 0.10 %
Interest-bearing deposits in other financial institutions 428,082 474 0.45 % 872,032 574 0.27 %
Other   1,610,483     8,119 2.00 %   2,088,380     10,901 2.11 %
Interest-earning assets, gross 10,203,931 108,845 4.24 % 10,813,629 108,454 4.06 %
Allowance for loan losses   (48,851 )   (41,424 )
Interest-earning assets, net 10,155,080 10,772,205
Noninterest-earning assets   1,596,627     1,796,232  
Total assets $ 11,751,707   $ 12,568,437  
 
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits $ 4,784,004 $ 4,102 0.34 % $ 5,104,544 $ 4,315 0.34 %
Notes payable and other borrowings   2,444,807     10,510 1.72 %   2,877,686     9,962 1.40 %
Total interest-bearing liabilities 7,228,811 14,612 0.81 % 7,982,230 14,277 0.72 %
Noninterest-bearing liabilities
Noninterest-bearing deposits 2,153,901 2,152,610
Other liabilities   624,971     725,469  
Total liabilities 10,007,683 10,860,309
Stockholders’ equity 1,743,209 1,707,624
Noncontrolling interest   815     504  
Total liabilities and stockholders' equity $ 11,751,707   $ 12,568,437  
   
Net interest income (2) $ 94,233 $ 94,177
Net interest spread (2) 3.43 % 3.34 %
Net interest margin (2) 3.70 % 3.53 %
 
 

(1) Average balance includes non-accrual loans.

(2) Annualized taxable equivalent adjustments are based on a 35% tax rate. The adjustment to interest income was $0.7 million and $0.8 million for the three months ended March 31, 2016 and 2015, respectively.

 
      March 31,     December 31,     September 30,
PlainsCapital Bank - Energy Exposure 2016 2015 2015
 

Select Energy Statistics

Outstanding energy loan balance ($M) 233.5 179.8 194.9
Energy unfunded commitments ($M) 102.9 108.7 110.0
Energy loans as a % of total loans 4.5 % 3.6 % 4.0 %
Classified and criticized energy loans ($M):
Criticized energy loans 13.0 3.4 0.0
Performing classified energy loans 33.4 25.7 27.0
Non-performing classified energy loans 4.9   3.6   2.8  
51.3 32.7 29.8
 
Unimpaired energy reserves ($M) 9.2 7.3 6.5
Energy reserves as a % of energy loans 4.3 % 4.4 % 3.4 %
Energy NCOs ($M) 0.2 1.2 1.1
 

Energy Portfolio Breakdown

Exploration and production 13 % 19 % 20 %
Services:
Field services 22 % 21 % 15 %
Pipeline construction 15 % 23 % 25 %
37 % 44 % 40 %
Midstream:
Distribution 37 % 25 % 25 %
Transportation 7 % 7 % 7 %
44 % 32 % 32 %
Other:
Wholesalers 1 % 2 % 2 %
Equipment rentals 0 % 1 % 5 %
Equipment wholesalers 5 % 2 % 1 %
Total 100 % 100 % 100 %
 

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, April 29, 2016. Hilltop President and CEO Jeremy B. Ford and other key management members will discuss results for the first quarter of 2016. Interested parties can access the conference call by dialing 1-877-508-9457 (domestic) or 1-412-317-0789 (international). 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. Through its wholly owned subsidiary, PlainsCapital Corporation, a regional commercial banking franchise, it has two operating subsidiaries: PlainsCapital Bank and PrimeLending. Through its wholly owned subsidiaries, Hilltop Securities Inc. and Hilltop Securities Independent Network Inc., it provides a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At March 31, 2016, Hilltop employed approximately 5,300 people and operated approximately 400 locations in 44 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, Nationallloydsinsurance.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 business strategy, our financial condition, our efforts to make strategic acquisitions, the integration of the operations acquired in the SWS Merger, our revenue, our liquidity and sources of funding, market trends, operations and business, expectations concerning mortgage loan origination volume, expected losses on covered loans and related reimbursements from the Federal Deposit Insurance Corporation (“FDIC”), expected levels of refinancing as a percentage of total loan origination volume, projected losses on mortgage loans originated, anticipated changes in our revenues or earnings, the effects of government regulation applicable to our operations, the appropriateness of our allowance for loan losses and provision for loan losses, and the collectability of loans and litigation, our other plans, objectives, strategies, expectations and intentions and other statements that are not statements of historical fact, and may be identified by words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “might,” “plan,” “probable,” “projects,” “seeks,” “should,” “target,” “view” 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 from those set forth in the forward-looking statements: (i) risks associated with merger and acquisition integration, including our ability to promptly and effectively integrate our businesses with those acquired in the SWS Merger and achieve the anticipated synergies and cost savings in connection therewith, as well as the diversion of management time on acquisition- and integration-related issues; (ii) our ability to estimate loan losses; (iii) changes in the default rate of our loans; (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) risks associated with concentration in real estate related loans; (vi) severe catastrophic events in Texas and other areas of the southern United States; (vii) changes in the interest rate environment; (viii) cost and availability of capital; (vix) effectiveness of our data security controls in the face of cyber attacks; (x) changes in state and federal laws, regulations or policies affecting one or more of the our business segments, including changes in regulatory fees, deposit insurance premiums, capital requirements and the Dodd-Frank Wall Street Reform and Consumer Protection Act; (xi) approval of new, or changes in, accounting policies and practices; (xii) changes in key management; (xiii) competition in our banking, broker-dealer, mortgage origination and insurance segments from other banks and financial institutions, as well as investment banking and financial advisory firms, mortgage bankers, asset-based non-bank lenders, government agencies and insurance companies; (xiv) our ability to obtain reimbursements for losses on acquired loans under loss-share agreements with the FDIC to the extent the FDIC determines that we did not adequately manage the covered loan portfolio; (xv) failure of our insurance segment reinsurers to pay obligations under reinsurance contracts; and (xvi) our ability to use excess cash in an effective manner, including the execution of successful acquisitions. For further discussion of such factors, see the risk factors described in the Hilltop Annual Report on Form 10-K for the year ended December 31, 2015 and other reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement.

Hilltop Holdings Inc.
Isabell Novakov, 214-252-4029
inovakov@plainscapital.com

Source: Hilltop Holdings Inc.