Press Release

Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2020

Company Release - 1/28/2021 5:15 PM ET

DALLAS--(BUSINESS WIRE)-- Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the fourth quarter and full year 2020. Hilltop produced income from continuing operations to common stockholders of $112.7 million, or $1.30 per diluted share, for the fourth quarter of 2020, compared to $43.7 million, or $0.48 per diluted share, for the fourth quarter of 2019. Income from continuing operations to common stockholders for the full year 2020 was $409.4 million, or $4.58 per diluted share, compared to $211.3 million, or $2.29 per diluted share, for the full year 2019. Hilltop’s financial results from continuing operations for the fourth quarter and full year 2020 reflect a significant increase in mortgage origination segment net gains from sale of loans and other mortgage production income.

Including income from discontinued operations related to the insurance business, income applicable to common stockholders was $116.4 million, or $1.35 per diluted share, for the fourth quarter of 2020, compared to $49.3 million, or $0.54 per diluted share, for the fourth quarter of 2019, and $447.8 million, or $5.01 per diluted share, for full year 2020, compared to $225.3 million, or $2.44 per diluted share, for full year 2019.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.12 per common share, a 33% increase from the prior quarter, payable on February 26, 2021, to all common stockholders of record as of the close of business on February 15, 2021.

Additionally, during 2020, Hilltop paid $208.7 million to repurchase approximately 8.78 million shares of its common stock at a weighted average price of $23.76 pursuant to the 2020 stock repurchase program, and inclusive of the tender offer completed in November 2020. These shares were returned to the pool of authorized but unissued shares of common stock. The previously authorized stock repurchase program was active through April 2020 when, in light of the uncertain outlook for 2020 due to the COVID-19 pandemic, the Hilltop Board of Directors suspended the stock repurchase program. Based on Hilltop’s expected ability to maintain strong capital and liquidity to meet the needs of its customers and communities during this exceptional period of economic uncertainty, and given that the previously noted stock repurchase program expired in January 2021, the Hilltop Board of Directors authorized, subject to regulatory review, a new stock repurchase program through January 2022, under which Hilltop may repurchase, in the aggregate, up to $75.0 million of its outstanding common stock.

The COVID-19 pandemic has negatively 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 COVID-19 on our operational and financial performance for 2021 is dependent on certain developments, including, among others, the broader adverse implications of COVID-19 on our customers and clients, potential further disruption and deterioration in the financial services industry, including the mortgage servicing and commercial paper markets, and additional, or extended, federal, state and local government orders and regulations that might be imposed in response to the pandemic, all of which are uncertain.

Jeremy B. Ford, President and CEO of Hilltop, said, “Hilltop’s strong fourth quarter caps off a remarkable, yet unprecedented year. 2020 was a record-breaking year for our company, as PrimeLending funded a record 84 thousand residential mortgage loans, HilltopSecurities generated record net revenue of over $530 million, and Hilltop produced record consolidated earnings. While the pandemic created unique challenges, I could not be prouder of our teammates across the franchise and how they responded to take care of our clients and the communities we serve. Notably, our team at PlainsCapital Bank originated approximately 2,800 PPP loans and deferred loan payments for their commercial and consumer clients that were most impacted by the pandemic.

“Although the pandemic caused Hilltop to change the way we work, it did not deter our team from making progress on large and complex initiatives. By leveraging shared services, the coordinated efforts of our technology, properties management and human resources groups enabled us to effectively transition to a work-from-home model for a majority of our employees since last March. Further, we completed the implementation of our new mortgage loan origination system at PrimeLending and the core operating system at HilltopSecurities, both of which are foundational for the future growth in these businesses.

“As we embark upon 2021, we believe Hilltop is well positioned with established businesses, synchronized leadership and robust capital. We also believe our dividend increase and share repurchase authorization demonstrate the strength and momentum of our franchise.”

Fourth Quarter 2020 Highlights for Hilltop:

  • For the fourth quarter of 2020, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within our mortgage origination segment was $297.6 million, compared to $157.5 million in the fourth quarter of 2019, an 88.9% increase;
    • Mortgage loan origination production volume was $6.8 billion during the fourth quarter of 2020, compared to $4.4 billion in the fourth quarter of 2019.
  • The reversal of credit losses was $3.5 million during the fourth quarter of 2020, compared to $0.6 million in the third quarter of 2020;
    • The reversal of credit losses during the fourth quarter of 2020 primarily reflected improvements in Bank loan portfolio macroeconomic factor assumptions and qualitative factors from the prior quarter, partially offset by the identified changes in the loan portfolio composition and credit quality.
  • Hilltop’s consolidated annualized return on average assets and return on average equity for the fourth quarter of 2020 were 2.83% and 20.56%, respectively, compared to 1.40% and 9.43%, respectively, for the fourth quarter of 2019;
  • Hilltop’s book value per common share increased to $28.28 at December 31, 2020, compared to $26.72 at September 30, 2020;
  • Hilltop’s total assets were $16.9 billion at both December 31, 2020 and September 30, 2020;
  • Loans1, net of allowance for credit losses, were $7.1 billion at December 31, 2020, compared to $7.3 billion September 30, 2020;
    • Includes supporting our impacted banking clients through funding of over 2,800 loans through the Paycheck Protection Program, or PPP, with a remaining balance of approximately $487 million as of December 31, 2020, compared to approximately $671 million as of September 30, 2020.
  • Non-performing loans were $79.9 million, or 0.76% of total loans, at December 31, 2020, compared to $84.0 million, or 0.80% of total loans, at September 30, 2020;
  • During the fourth quarter of 2020, we further supported our impacted banking clients through the approval of COVID-19 related loan modifications, resulting in active deferrals that have not reached the end of their deferral period of approximately $240 million as of December 31, 2020;
    • As of September 30, 2020 and June 30, 2020, active COVID-19 related loan modifications totaled approximately $291 million and $968 million, respectively;
    • During the third and fourth quarters of 2020, COVID-19 related loan modifications of approximately $714 million have made at least one payment pursuant to agreed-upon contractual terms;
    • The extent of these loans progressing into non-performing loans during future periods is uncertain.
  • Loans held for sale increased by 9.4% from September 30, 2020 to $2.8 billion at December 31, 2020;
  • Total deposits were $11.2 billion at December 31, 2020, compared to $11.3 billion at September 30, 2020;
  • Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio2 of 12.64% and a Common Equity Tier 1 Capital Ratio of 18.97% at December 31, 2020;
    • 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.
  • Hilltop’s consolidated net interest margin3 increased to 2.71% for the fourth quarter of 2020, compared to 2.56% in the third quarter of 2020;
  • For the fourth quarter of 2020, noninterest income from continuing operations was $447.9 million, compared to $263.6 million in the fourth quarter of 2019, a 69.9% increase;
  • For the fourth quarter of 2020, noninterest expense from continuing operations was $402.3 million, compared to $307.9 million in the fourth quarter of 2019, a 30.7% increase; and
  • Hilltop’s effective tax rate from continuing operations was 25.1% during the fourth quarter of 2020, compared to 22.8% during the same period in 2019.
________________________________________
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 $436.8 million and $502.1 million at December 31, 2020 and September 30, 2020, respectively.

2

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

3

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

 

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. Insurance segment results and its assets and liabilities have been presented as discontinued operations. Included within discontinued operations of corporate for the fourth quarter of 2020 is the recognition of a pre-tax post-closing adjustment gain of $3.7 million related to the finalization of the June 30, 2020 closing balance sheet, resulting in an aggregate gain on sale of NLC of $36.8 million, net of transaction costs. The resulting book gain from this sale transaction was not recognized for tax purposes pursuant to the rules promulgated under the Internal Revenue Code.

Consolidated Financial and Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in 000's)

 

2020

 

2020

 

2020

 

2020

 

2019

Cash and due from banks

 

$

1,062,560

 

 

$

1,277,865

 

 

$

1,655,492

 

 

$

524,370

 

 

$

433,626

 

Federal funds sold

 

 

386

 

 

 

420

 

 

 

385

 

 

 

401

 

 

 

394

 

Assets segregated for regulatory purposes

 

 

290,357

 

 

 

221,621

 

 

 

194,626

 

 

 

178,805

 

 

 

157,436

 

Securities purchased under agreements to resell

 

 

80,319

 

 

 

90,103

 

 

 

161,457

 

 

 

23,356

 

 

 

59,031

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading, at fair value

 

 

694,255

 

 

 

667,751

 

 

 

648,037

 

 

 

393,581

 

 

 

689,576

 

Available for sale, at fair value, net

 

 

1,462,205

 

 

 

1,310,240

 

 

 

1,091,348

 

 

 

972,318

 

 

 

911,493

 

Held to maturity, at amortized cost, net

 

 

311,944

 

 

 

323,299

 

 

 

343,198

 

 

 

355,110

 

 

 

386,326

 

Equity, at fair value

 

 

140

 

 

 

117

 

 

 

122

 

 

 

107

 

 

 

166

 

 

 

 

2,468,544

 

 

 

2,301,407

 

 

 

2,082,705

 

 

 

1,721,116

 

 

 

1,987,561

 

Loans held for sale

 

 

2,788,386

 

 

 

2,547,975

 

 

 

2,592,307

 

 

 

2,433,407

 

 

 

2,106,361

 

Loans held for investment, net of unearned income

 

 

7,693,141

 

 

 

7,945,560

 

 

 

7,849,904

 

 

 

7,345,250

 

 

 

7,381,400

 

Allowance for credit losses

 

 

(149,044

)

 

 

(155,214

)

 

 

(156,383

)

 

 

(106,739

)

 

 

(61,136

)

Loans held for investment, net

 

 

7,544,097

 

 

 

7,790,346

 

 

 

7,693,521

 

 

 

7,238,511

 

 

 

7,320,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-dealer and clearing organization receivables

 

 

1,404,727

 

 

 

1,363,478

 

 

 

1,222,627

 

 

 

1,838,789

 

 

 

1,780,280

 

Premises and equipment, net

 

 

211,595

 

 

 

208,078

 

 

 

210,975

 

 

 

215,261

 

 

 

210,375

 

Operating lease right-of-use assets

 

 

105,757

 

 

 

109,354

 

 

 

119,954

 

 

 

113,395

 

 

 

114,320

 

Mortgage servicing assets

 

 

143,742

 

 

 

127,712

 

 

 

81,264

 

 

 

30,299

 

 

 

55,504

 

Other assets

 

 

555,983

 

 

 

607,932

 

 

 

627,982

 

 

 

846,316

 

 

 

404,754

 

Goodwill

 

 

267,447

 

 

 

267,447

 

 

 

267,447

 

 

 

267,447

 

 

 

267,447

 

Other intangible assets, net

 

 

20,364

 

 

 

21,814

 

 

 

23,374

 

 

 

25,019

 

 

 

26,666

 

Assets of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

249,758

 

 

 

248,429

 

Total assets

 

$

16,944,264

 

 

$

16,935,552

 

 

$

16,934,116

 

 

$

15,706,250

 

 

$

15,172,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

3,612,384

 

 

$

3,557,603

 

 

$

3,467,500

 

 

$

2,865,192

 

 

$

2,769,556

 

Interest-bearing

 

 

7,629,935

 

 

 

7,704,312

 

 

 

8,182,098

 

 

 

7,082,297

 

 

 

6,262,658

 

Total deposits

 

 

11,242,319

 

 

 

11,261,915

 

 

 

11,649,598

 

 

 

9,947,489

 

 

 

9,032,214

 

Broker-dealer and clearing organization payables

 

 

1,368,373

 

 

 

1,310,835

 

 

 

1,158,628

 

 

 

1,259,181

 

 

 

1,605,518

 

Short-term borrowings

 

 

695,798

 

 

 

780,109

 

 

 

720,164

 

 

 

1,329,948

 

 

 

1,424,010

 

Securities sold, not yet purchased, at fair value

 

 

79,789

 

 

 

56,023

 

 

 

55,340

 

 

 

22,768

 

 

 

43,817

 

Notes payable

 

 

381,987

 

 

 

396,006

 

 

 

450,158

 

 

 

244,042

 

 

 

256,269

 

Operating lease liabilities

 

 

125,450

 

 

 

122,402

 

 

 

131,411

 

 

 

124,123

 

 

 

125,619

 

Junior subordinated debentures

 

 

67,012

 

 

 

67,012

 

 

 

67,012

 

 

 

67,012

 

 

 

67,012

 

Other liabilities

 

 

632,889

 

 

 

502,517

 

 

 

409,672

 

 

 

408,224

 

 

 

348,519

 

Liabilities of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

139,730

 

 

 

140,674

 

Total liabilities

 

 

14,593,617

 

 

 

14,496,819

 

 

 

14,641,983

 

 

 

13,542,517

 

 

 

13,043,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

822

 

 

 

902

 

 

 

902

 

 

 

901

 

 

 

906

 

Additional paid-in capital

 

 

1,317,929

 

 

 

1,443,588

 

 

 

1,439,686

 

 

 

1,437,301

 

 

 

1,445,233

 

Accumulated other comprehensive income

 

 

17,763

 

 

 

23,790

 

 

 

23,813

 

 

 

20,939

 

 

 

11,419

 

Retained earnings

 

 

986,792

 

 

 

942,461

 

 

 

797,331

 

 

 

676,946

 

 

 

644,860

 

Deferred compensation employee stock trust, net

 

 

771

 

 

 

774

 

 

 

778

 

 

 

774

 

 

 

776

 

Employee stock trust

 

 

(138

)

 

 

(143

)

 

 

(150

)

 

 

(150

)

 

 

(155

)

Total Hilltop stockholders' equity

 

 

2,323,939

 

 

 

2,411,372

 

 

 

2,262,360

 

 

 

2,136,711

 

 

 

2,103,039

 

Noncontrolling interests

 

 

26,708

 

 

 

27,361

 

 

 

29,773

 

 

 

27,022

 

 

 

25,757

 

Total stockholders' equity

 

 

2,350,647

 

 

 

2,438,733

 

 

 

2,292,133

 

 

 

2,163,733

 

 

 

2,128,796

 

Total liabilities & stockholders' equity

 

$

16,944,264

 

 

$

16,935,552

 

 

$

16,934,116

 

 

$

15,706,250

 

 

$

15,172,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

2020

 

2020

 

2019

 

2020

 

2019

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

109,328

 

 

$

104,955

 

 

$

115,696

 

$

433,311

 

$

460,471

Securities borrowed

 

 

14,445

 

 

 

10,705

 

 

 

16,196

 

 

51,360

 

 

69,582

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

9,845

 

 

 

11,035

 

 

 

15,174

 

 

48,273

 

 

58,493

Tax-exempt

 

 

1,862

 

 

 

1,687

 

 

 

1,572

 

 

6,698

 

 

6,159

Other

 

 

1,381

 

 

 

1,446

 

 

 

3,180

 

 

6,853

 

 

15,991

Total interest income

 

 

136,861

 

 

 

129,828

 

 

 

151,818

 

 

546,495

 

 

610,696

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

9,269

 

 

 

10,700

 

 

 

17,480

 

 

47,040

 

 

71,509

Securities loaned

 

 

12,014

 

 

 

8,729

 

 

 

13,989

 

 

42,816

 

 

60,086

Short-term borrowings

 

 

2,154

 

 

 

2,346

 

 

 

6,244

 

 

11,611

 

 

26,778

Notes payable

 

 

4,807

 

 

 

4,904

 

 

 

2,337

 

 

15,897

 

 

8,948

Junior subordinated debentures

 

 

609

 

 

 

608

 

 

 

909

 

 

2,772

 

 

3,851

Other

 

 

636

 

 

 

641

 

 

 

99

 

 

2,193

 

 

545

Total interest expense

 

 

29,489

 

 

 

27,928

 

 

 

41,058

 

 

122,329

 

 

171,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

107,372

 

 

 

101,900

 

 

 

110,760

 

 

424,166

 

 

438,979

Provision for (reversal of) credit losses

 

 

(3,482

)

 

 

(602

)

 

 

6,880

 

 

96,491

 

 

7,206

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

 

 

110,854

 

 

 

102,502

 

 

 

103,880

 

 

327,675

 

 

431,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains from sale of loans and other mortgage production income

 

 

247,360

 

 

 

307,896

 

 

 

120,573

 

 

1,001,059

 

 

504,935

Mortgage loan origination fees

 

 

50,193

 

 

 

47,681

 

 

 

36,939

 

 

171,769

 

 

130,003

Securities commissions and fees

 

 

35,921

 

 

 

32,496

 

 

 

33,205

 

 

142,720

 

 

137,742

Investment and securities advisory fees and commissions

 

 

42,161

 

 

 

36,866

 

 

 

32,083

 

 

131,327

 

 

103,787

Other

 

 

72,296

 

 

 

77,772

 

 

 

40,846

 

 

243,605

 

 

186,350

Total noninterest income

 

 

447,931

 

 

 

502,711

 

 

 

263,646

 

 

1,690,480

 

 

1,062,817

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employees' compensation and benefits

 

 

291,489

 

 

 

294,907

 

 

 

212,498

 

 

1,059,645

 

 

844,602

Occupancy and equipment, net

 

 

27,596

 

 

 

26,124

 

 

 

30,617

 

 

99,416

 

 

113,336

Professional services

 

 

21,927

 

 

 

17,522

 

 

 

17,211

 

 

69,984

 

 

60,565

Other

 

 

61,336

 

 

 

60,792

 

 

 

47,542

 

 

224,758

 

 

193,386

Total noninterest expense

 

 

402,348

 

 

 

399,345

 

 

 

307,868

 

 

1,453,803

 

 

1,211,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

 

156,437

 

 

 

205,868

 

 

 

59,658

 

 

564,352

 

 

282,701

Income tax expense

 

 

39,295

 

 

 

46,820

 

 

 

13,579

 

 

133,071

 

 

63,714

Income from continuing operations

 

 

117,142

 

 

 

159,048

 

 

 

46,079

 

 

431,281

 

 

218,987

Income from discontinued operations, net of income taxes

 

 

3,734

 

 

 

736

 

 

 

5,623

 

 

38,396

 

 

13,990

Net income

 

 

120,876

 

 

 

159,784

 

 

 

51,702

 

 

469,677

 

 

232,977

Less: Net income attributable to noncontrolling interest

 

 

4,431

 

 

 

6,505

 

 

 

2,426

 

 

21,841

 

 

7,686

Income attributable to Hilltop

 

$

116,445

 

 

$

153,279

 

 

$

49,276

 

$

447,836

 

$

225,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

1.31

 

 

$

1.69

 

 

$

0.48

 

$

4.59

 

$

2.29

Earnings from discontinued operations

 

 

0.04

 

 

 

0.01

 

 

 

0.06

 

 

0.43

 

 

0.15

 

 

$

1.35

 

 

$

1.70

 

 

$

0.54

 

$

5.02

 

$

2.44

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

1.30

 

 

$

1.69

 

 

$

0.48

 

$

4.58

 

$

2.29

Earnings from discontinued operations

 

 

0.05

 

 

 

0.01

 

 

 

0.06

 

 

0.43

 

 

0.15

 

 

$

1.35

 

 

$

1.70

 

 

$

0.54

 

$

5.01

 

$

2.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.09

 

 

$

0.09

 

 

$

0.08

 

$

0.36

 

$

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

86,269

 

 

 

90,200

 

 

 

90,606

 

 

89,280

 

 

92,345

Diluted

 

 

86,420

 

 

 

90,200

 

 

 

90,711

 

 

89,304

 

 

92,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2020

Segment Results

 

 

 

 

 

 

 

Mortgage

 

 

 

 

All Other and

 

Continuing

(in 000's)

 

Banking

 

Broker-Dealer

 

Origination

 

Corporate

 

Eliminations

 

Operations

Net interest income (expense)

 

$

106,431

 

 

$

8,907

 

$

(6,842

)

 

$

(4,710

)

 

$

3,586

 

 

$

107,372

 

Provision for (reversal of) credit losses

 

 

(3,549

)

 

 

67

 

 

 

 

 

 

 

 

 

 

 

(3,482

)

Noninterest income

 

 

12,130

 

 

 

141,163

 

 

297,523

 

 

 

630

 

 

 

(3,515

)

 

 

447,931

 

Noninterest expense

 

 

62,878

 

 

 

115,719

 

 

206,695

 

 

 

17,299

 

 

 

(243

)

 

 

402,348

 

Income (loss) from continuing operations before taxes

 

$

59,232

 

 

$

34,284

 

$

83,986

 

 

$

(21,379

)

 

$

314

 

 

$

156,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2020

Segment Results

 

 

 

 

 

 

 

Mortgage

 

 

 

 

All Other and

 

Continuing

(in 000's)

 

Banking

 

Broker-Dealer

 

Origination

 

Corporate

 

Eliminations

 

Operations

Net interest income (expense)

 

$

390,871

 

$

39,912

 

$

(10,489

)

 

$

(14,192

)

 

$

18,064

 

 

$

424,166

Provision for credit losses

 

 

96,326

 

 

165

 

 

 

 

 

 

 

 

 

 

 

96,491

Noninterest income

 

 

41,376

 

 

491,355

 

 

1,172,450

 

 

 

3,945

 

 

 

(18,646

)

 

 

1,690,480

Noninterest expense

 

 

232,447

 

 

415,463

 

 

753,917

 

 

 

53,040

 

 

 

(1,064

)

 

 

1,453,803

Income (loss) from continuing operations before taxes

 

$

103,474

 

$

115,639

 

$

408,044

 

 

$

(63,287

)

 

$

482

 

 

$

564,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

Selected Financial Data

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hilltop Consolidated (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average stockholders' equity

 

 

20.56%

 

 

25.94%

 

 

9.43%

 

 

20.03%

 

 

11.18%

 

Return on average assets

 

 

2.83%

 

 

3.71%

 

 

1.40%

 

 

2.88%

 

 

1.66%

 

Net interest margin (2)

 

 

2.71%

 

 

2.56%

 

 

3.30%

 

 

2.85%

 

 

3.48%

 

Net interest margin (taxable equivalent) (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

2.72%

 

 

2.57%

 

 

3.31%

 

 

2.85%

 

 

3.48%

 

Impact of purchase accounting

 

 

15 bps

 

 

10 bps

 

 

19 bps

 

 

14 bps

 

 

25 bps

 

Book value per common share ($)

 

 

28.28

 

 

26.72

 

 

23.20

 

 

28.28

 

 

23.20

 

Shares outstanding, end of period (000's)

 

 

82,185

 

 

90,238

 

 

90,641

 

 

82,185

 

 

90,641

 

Dividend payout ratio (4)

 

 

6.67%

 

 

5.30%

 

 

14.71%

 

 

7.18%

 

 

13.12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

3.37%

 

 

3.03%

 

 

3.77%

 

 

3.31%

 

 

4.00%

 

Net interest margin (taxable equivalent) (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

3.38%

 

 

3.03%

 

 

3.78%

 

 

3.31%

 

 

4.01%

 

Impact of purchase accounting

 

 

20 bps

 

 

13 bps

 

 

25 bps

 

 

18 bps

 

 

33 bps

 

Accretion of discount on loans ($000's)

 

 

5,629

 

 

3,346

 

 

5,698

 

 

18,831

 

 

28,745

 

Net charge-offs ($000's)

 

 

2,688

 

 

567

 

 

1,348

 

 

21,145

 

 

5,556

 

Return on average assets

 

 

1.37%

 

 

1.14%

 

 

1.17%

 

 

0.63%

 

 

1.36%

 

Fee income ratio

 

 

10.2%

 

 

9.2%

 

 

10.8%

 

 

9.6%

 

 

9.9%

 

Efficiency ratio

 

 

53.0%

 

 

52.7%

 

 

54.9%

 

 

53.8%

 

 

55.0%

 

Employees' compensation and benefits ($000's)

 

 

34,007

 

 

29,808

 

 

31,455

 

 

127,745

 

 

127,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broker-Dealer Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue ($000's) (5)

 

 

150,070

 

 

149,190

 

 

113,128

 

 

531,267

 

 

455,719

 

Employees' compensation and benefits ($000's)

 

 

87,469

 

 

88,063

 

 

64,301

 

 

311,778

 

 

267,663

 

Variable compensation expense ($000's)

 

 

60,295

 

 

60,774

 

 

39,505

 

 

205,464

 

 

163,840

 

Compensation as a % of net revenue

 

 

58.3%

 

 

59.0%

 

 

56.8%

 

 

58.7%

 

 

58.7%

 

Pre-tax margin (6)

 

 

22.8%

 

 

23.7%

 

 

21.4%

 

 

21.8%

 

 

19.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Origination Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home purchases

 

 

3,683,564

 

 

4,183,560

 

 

2,958,176

 

 

13,413,545

 

 

11,718,772

 

Refinancings

 

 

3,114,630

 

 

2,266,793

 

 

1,442,329

 

 

9,556,649

 

 

3,860,665

 

Total mortgage loan originations - volume

 

 

6,798,194

 

 

6,450,353

 

 

4,400,505

 

 

22,970,194

 

 

15,579,437

 

Mortgage loan sales - volume ($000's)

 

 

6,571,234

 

 

6,521,773

 

 

4,226,425

 

 

22,514,170

 

 

14,591,727

 

Net gains from mortgage loan sales (basis points):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

 

448

 

 

440

 

 

304

 

 

406

 

 

324

 

Impact of sales to banking segment

 

 

(3

 

(1

 

(8

 

(3

 

(3

)

Mortgage servicing rights asset ($000's) (7)

 

 

143,742

 

 

127,712

 

 

55,504

 

 

143,742

 

 

55,504

 

Employees' compensation and benefits ($000's)

 

 

163,822

 

 

161,738

 

 

109,753

 

 

586,713

 

 

419,135

 

Variable compensation expense ($000's)

 

 

116,736

 

 

116,275

 

 

67,224

 

 

405,116

 

 

252,956

 
________________________________________

(1)

Ratios and financial data presented on a consolidated basis and includes discontinued operations and those assets and liabilities of 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 $0.3 million, $0.3 million, $0.1 million, $1.2 million, and $0.6 million, respectively, for the periods presented and for the banking segment were $0.2 million, $0.2 million, $0.1 million, $0.8 million, and $0.6 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 plus total broker-dealer noninterest income.

(6)

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

(7)

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

 

2020

 

2020

 

2020

 

2020

 

2019

Tier 1 capital (to average assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

10.44%

 

 

10.19%

 

 

10.37%

 

 

12.06%

 

 

11.61%

Hilltop

 

 

12.64%

 

 

13.03%

 

 

12.60%

 

 

13.03%

 

 

12.71%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

14.40%

 

 

14.64%

 

 

14.03%

 

 

13.33%

 

 

13.45%

Hilltop

 

 

18.97%

 

 

19.85%

 

 

18.46%

 

 

15.96%

 

 

16.70%

Tier 1 capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

14.40%

 

 

14.64%

 

 

14.03%

 

 

13.33%

 

 

13.45%

Hilltop

 

 

19.57%

 

 

20.46%

 

 

19.06%

 

 

16.38%

 

 

17.13%

Total capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PlainsCapital

 

 

15.27%

 

 

15.49%

 

 

14.88%

 

 

14.26%

 

 

14.13%

Hilltop

 

 

22.34%

 

 

23.22%

 

 

21.82%

 

 

17.00%

 

 

17.55%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

Non-Performing Assets Portfolio Data

 

2020

 

2020

 

2020

 

2020

 

2019

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

11,133

 

 

14,079

 

 

13,743

 

 

23,352

 

 

7,308

Commercial and industrial

 

 

34,049

 

 

38,708

 

 

32,259

 

 

47,121

 

 

15,262

Construction and land development

 

 

507

 

 

528

 

 

1,404

 

 

1,402

 

 

1,316

1-4 family residential

 

 

32,263

 

 

28,707

 

 

20,552

 

 

15,237

 

 

12,204

Consumer

 

 

28

 

 

53

 

 

308

 

 

310

 

 

26

Broker-dealer

 

 

 

 

 

 

 

 

 

 

 

 

 

77,980

 

 

82,075

 

 

68,266

 

 

87,422

 

 

36,116

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

 

 

1,954

 

 

1,919

 

 

2,025

 

 

2,286

 

 

2,173

Non-performing loans ($000's)

 

 

79,934

 

 

83,994

 

 

70,291

 

 

89,708

 

 

38,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans as a % of total loans (2)

 

 

0.76%

 

 

0.80%

 

 

0.67%

 

 

0.92%

 

 

0.40%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned ($000's)

 

 

21,289

 

 

25,387

 

 

26,602

 

 

15,429

 

 

18,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other repossessed assets ($000's)

 

 

101

 

 

239

 

 

315

 

 

315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets ($000's) (2)

 

 

101,324

 

 

109,620

 

 

97,208

 

 

105,452

 

 

56,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a % of total assets (2)

 

 

0.60%

 

 

0.65%

 

 

0.57%

 

 

0.67%

 

 

0.37%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

243,631

 

 

187,105

 

 

124,682

 

 

101,300

 

 

102,707

________________________________________

(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 maturity date of the existing loan. During the fourth quarter of 2020, the Bank’s actions included approval of COVID-19 related loan modifications, resulting in active loan modifications of approximately $240 million as of December 31, 2020, down from approximately $291 million and $968 million as of September 30, 2020 and June 30, 2020, respectively. The extent to which these measures will impact the Bank is uncertain, and any progression of loans, whether receiving COVID-19 payment deferrals or not, into non-accrual status, during future periods is uncertain and will depend on future developments that cannot be predicted.

(2)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

2020

 

 

2019

 

 

 

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

 

$

2,760,798

 

 

$

18,692

 

2.71

%

 

$

1,914,703

 

 

$

19,124

 

4.00

%

Loans held for investment, gross (2)

 

 

7,732,754

 

 

 

90,636

 

4.62

%

 

 

7,258,086

 

 

 

96,572

 

5.24

%

Investment securities - taxable

 

 

2,132,863

 

 

 

9,823

 

1.84

%

 

 

1,871,993

 

 

 

16,011

 

3.42

%

Investment securities - non-taxable (3)

 

 

258,644

 

 

 

2,188

 

3.38

%

 

 

244,378

 

 

 

1,763

 

2.89

%

Federal funds sold and securities purchased under agreements to resell

 

 

85,716

 

 

 

 

0.00

%

 

 

68,278

 

 

 

228

 

1.32

%

Interest-bearing deposits in other financial institutions

 

 

1,200,635

 

 

 

487

 

0.16

%

 

 

325,984

 

 

 

1,408

 

1.71

%

Securities borrowed

 

 

1,501,389

 

 

 

14,445

 

3.76

%

 

 

1,589,465

 

 

 

16,196

 

3.99

%

Other

 

 

49,648

 

 

 

913

 

7.31

%

 

 

87,188

 

 

 

1,654

 

7.55

%

Interest-earning assets, gross (3)

 

 

15,722,447

 

 

 

137,184

 

3.45

%

 

 

13,360,075

 

 

 

152,956

 

4.52

%

Allowance for credit losses

 

 

(155,142

)

 

 

 

 

 

 

 

 

(56,124

)

 

 

 

 

 

 

Interest-earning assets, net

 

 

15,567,305

 

 

 

 

 

 

 

 

 

13,303,951

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

1,420,479

 

 

 

 

 

 

 

 

 

1,367,068

 

 

 

 

 

 

 

Total assets

 

$

16,987,784

 

 

 

 

 

 

 

 

$

14,671,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

7,523,955

 

 

$

9,269

 

0.49

%

 

$

6,100,621

 

 

$

17,480

 

1.14

%

Securities loaned

 

 

1,398,943

 

 

 

12,014

 

3.42

%

 

 

1,487,288

 

 

 

13,989

 

3.73

%

Notes payable and other borrowings

 

 

1,150,439

 

 

 

8,206

 

2.84

%

 

 

1,526,567

 

 

 

10,021

 

2.59

%

Total interest-bearing liabilities

 

 

10,073,337

 

 

 

29,489

 

1.17

%

 

 

9,114,476

 

 

 

41,490

 

1.80

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

3,669,230

 

 

 

 

 

 

 

 

 

2,789,662

 

 

 

 

 

 

 

Other liabilities

 

 

965,150

 

 

 

 

 

 

 

 

 

669,798

 

 

 

 

 

 

 

Total liabilities

 

 

14,707,717

 

 

 

 

 

 

 

 

 

12,573,936

 

 

 

 

 

 

 

Stockholders’ equity

 

 

2,252,989

 

 

 

 

 

 

 

 

 

2,072,865

 

 

 

 

 

 

 

Noncontrolling interest

 

 

27,078

 

 

 

 

 

 

 

 

 

24,218

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

16,987,784

 

 

 

 

 

 

 

 

$

14,671,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (3)

 

 

 

 

$

107,695

 

 

 

 

 

 

 

$

111,466

 

 

 

Net interest spread (3)

 

 

 

 

 

 

 

2.28

%

 

 

 

 

 

 

 

2.72

%

Net interest margin (3)

 

 

 

 

 

 

 

2.72

%

 

 

 

 

 

 

 

3.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

 

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

 

$

2,306,203

 

 

$

74,467

 

3.23

%

 

$

1,501,154

 

 

$

64,830

 

4.32

%

Loans held for investment, gross (2)

 

 

7,618,723

 

 

 

358,844

 

4.71

%

 

 

7,088,208

 

 

 

395,641

 

5.58

%

Investment securities - taxable

 

 

1,897,859

 

 

 

49,936

 

2.63

%

 

 

1,803,622

 

 

 

61,983

 

3.44

%

Investment securities - non-taxable (3)

 

 

231,824

 

 

 

7,918

 

3.42

%

 

 

233,713

 

 

 

6,803

 

2.91

%

Federal funds sold and securities purchased under agreements to resell

 

 

90,961

 

 

 

138

 

0.15

%

 

 

63,598

 

 

 

1,236

 

1.94

%

Interest-bearing deposits in other financial institutions

 

 

1,257,902

 

 

 

3,165

 

0.25

%

 

 

371,312

 

 

 

8,469

 

2.28

%

Securities borrowed

 

 

1,435,572

 

 

 

51,360

 

3.58

%

 

 

1,550,322

 

 

 

69,582

 

4.49

%

Other

 

 

59,412

 

 

 

3,687

 

6.21

%

 

 

75,298

 

 

 

6,869

 

9.12

%

Interest-earning assets, gross (3)

 

 

14,898,456

 

 

 

549,515

 

3.69

%

 

 

12,687,227

 

 

 

615,413

 

4.85

%

Allowance for credit losses

 

 

(122,148

)

 

 

 

 

 

 

 

 

(57,690

)

 

 

 

 

 

 

Interest-earning assets, net

 

 

14,776,308

 

 

 

 

 

 

 

 

 

12,629,537

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

1,537,269

 

 

 

 

 

 

 

 

 

1,397,420

 

 

 

 

 

 

 

Total assets

 

$

16,313,577

 

 

 

 

 

 

 

 

$

14,026,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

7,397,121

 

 

$

47,040

 

0.64

%

 

$

5,916,491

 

 

$

71,509

 

1.21

%

Securities loaned

 

 

1,336,873

 

 

 

42,817

 

3.20

%

 

 

1,423,847

 

 

 

60,086

 

4.22

%

Notes payable and other borrowings

 

 

1,222,044

 

 

 

33,249

 

2.72

%

 

 

1,398,559

 

 

 

41,928

 

3.00

%

Total interest-bearing liabilities

 

 

9,956,038

 

 

 

123,106

 

1.24

%

 

 

8,738,897

 

 

 

173,523

 

1.99

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

3,304,475

 

 

 

 

 

 

 

 

 

2,635,924

 

 

 

 

 

 

 

Other liabilities

 

 

791,002

 

 

 

 

 

 

 

 

 

614,164

 

 

 

 

 

 

 

Total liabilities

 

 

14,051,515

 

 

 

 

 

 

 

 

 

11,988,985

 

 

 

 

 

 

 

Stockholders’ equity

 

 

2,235,690

 

 

 

 

 

 

 

 

 

2,014,535

 

 

 

 

 

 

 

Noncontrolling interest

 

 

26,372

 

 

 

 

 

 

 

 

 

23,437

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

16,313,577

 

 

 

 

 

 

 

 

$

14,026,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (3)

 

 

 

 

$

426,409

 

 

 

 

 

 

 

$

441,890

 

 

 

Net interest spread (3)

 

 

 

 

 

 

 

2.45

%

 

 

 

 

 

 

 

2.86

%

Net interest margin (3)

 

 

 

 

 

 

 

2.85

%

 

 

 

 

 

 

 

3.48

%

________________________________________

(1)

Information presented on a consolidated basis and includes discontinued operations and those assets and liabilities classified of 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 $0.3 million and $0.1 million for the three months ended December 31, 2020 and 2019, respectively, and $1.2 million and $0.6 million for the year ended December 31, 2020 and 2019, 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 29, 2021. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review fourth quarter and full year 2020 financial results. 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. 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 Hilltop Securities 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, 2020, Hilltop employed approximately 4,900 people and operated approximately 420 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-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,” “estimates,” “expects,” “extent,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “probable,” “progressing,” “projects,” “seeks,” “should,” “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 COVID-19 pandemic and the response of governmental authorities to the pandemic, which have caused and are causing significant harm to the global economy and our business; (ii) the credit risks of lending activities, including our ability to estimate credit losses, as well as the effects 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) risks associated with concentration in real estate related loans; and (vi) changes in the interest rate environment and transitions away from the London Interbank Offered Rate. 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.

Investor Relations Contact:
Erik Yohe
214-525-4634
eyohe@hilltop-holdings.com

Source: Hilltop Holdings Inc.