Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2024

DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the fourth quarter and full year 2024. Hilltop produced income to common stockholders of $35.5 million, or $0.55 per diluted share, for the fourth quarter of 2024, compared to $28.7 million, or $0.44 per diluted share, for the fourth quarter of 2023. Income to common stockholders for the full year 2024 was $113.2 million, or $1.74 per diluted share, compared to $109.6 million, or $1.69 per diluted share, for the full year 2023. Hilltop’s financial results for the fourth quarter, compared with the same period in 2023, included an increase in net interest income and a reversal of credit losses, partially offset by an increase in noninterest expenses within the banking segment, net revenues and noninterest expenses increased within the broker-dealer segment, and the mortgage origination segment had an increase in noninterest income. Hilltop’s financial results for the full year 2024, compared with 2023, included a decline in net interest income, partially offset by a decline in the provision for credit losses within the banking segment, net revenues and noninterest expenses increased within the broker-dealer segment, and the mortgage origination segment had decreases in both noninterest income and expense. Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per common share, a 6% increase from the prior quarter, payable on February 27, 2025, to all common stockholders of record as of the close of business on February 13, 2025. Additionally, the Hilltop Board of Directors authorized a new stock repurchase program through January 2026, under which Hilltop may repurchase, in the aggregate, up to $100.0 million of its outstanding common stock. During 2024, Hilltop paid $19.9 million to repurchase an aggregate of 640,042 shares of its common stock at an average price of $31.04 per share pursuant to the 2024 stock repurchase program. These shares were returned to the pool of authorized but unissued shares of common stock. On January 15, 2025, Hilltop redeemed all of its outstanding 5% senior notes due April 15, 2025 at a redemption price equal to the aggregate principal amount of $150 million, plus accrued and unpaid interest using cash on hand. In addition, on January 27, 2025, Hilltop announced that its merchant bank subsidiary entered into a definitive agreement to sell all of the capital stock of Moser Acquisition, Inc. Our approximate 30% aggregate interest in Moser Holdings, LLC, which owns Moser Acquisition, Inc., is expected to result in an estimated net gain on sale of approximately $23 million to $27 million. The closing of the transaction, which is expected to occur in the first quarter of 2025, is subject to customary closing conditions. The extent of the impact of uncertain economic conditions on our financial performance during 2025 will depend in part on developments outside of our control, including, among others, the timing and significance of further changes in U.S. Treasury yields and mortgage interest rates, changes in funding costs, inflationary pressures, changes in the political environment and international armed conflicts and their impact on supply chains. Jeremy B. Ford, President and CEO of Hilltop, said, “Over the course of 2024, Hilltop adapted to a new operating environment as the Federal Reserve cut interest rates for the first time since the spring of 2020, and we delivered a year over year increase in pre-tax profitability. During the fourth quarter, PlainsCapital Bank grew customer deposit balances and improved loan pipeline pull through rates. HilltopSecurities capitalized on tailwinds in its Structured Finance and Wealth Management business lines to deliver a pre-tax margin of 16%. PrimeLending realized a 24% increase in origination volume, when compared to the fourth quarter of 2023, but continued to face a challenging mortgage market due to a lack of inventory and stressed affordability for potential home buyers. “As we enter 2025, we remain focused on protecting our balance sheet and executing on our strategic plan to further build on Hilltop’s franchise value by serving our customers and the communities in which we operate.” Fourth Quarter 2024 Highlights for Hilltop: The reversal of credit losses was $5.9 million during the fourth quarter of 2024, compared to a reversal of credit losses of $1.3 million in the third quarter of 2024 and a provision for credit losses of $1.3 million in the fourth quarter of 2023; The reversal of credit losses during the fourth quarter of 2024 was primarily driven by net charge-offs, loan portfolio changes and changes in the U.S. economic outlook associated with collectively evaluated loans, partially offset by a build in the allowance related to specific reserves within the banking segment since the prior quarter. For the fourth quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was $73.7 million, compared to $69.2 million in the fourth quarter of 2023, a 6.4% increase; Mortgage loan origination production volume was $2.3 billion during the fourth quarter of 2024, compared to $1.8 billion in the fourth quarter of 2023; Net gains from mortgage loans sold to third parties increased to 226 basis points during the fourth quarter of 2024, compared to 224 basis points in the third quarter of 2024. Hilltop’s consolidated annualized return on average assets and return on average stockholders’ equity for the fourth quarter of 2024 were 0.92% and 6.50%, respectively, compared to 0.75% and 5.46%, respectively, for the fourth quarter of 2023; Hilltop’s book value per common share increased to $33.71 at December 31, 2024, compared to $33.51 at September 30, 2024; Hilltop’s total assets were $16.3 billion and $15.9 billion at December 31, 2024 and September 30, 2024, respectively; Loans1, net of allowance for credit losses, were $7.5 billion at both December 31, 2024 and September 30, 2024, respectively; Non-accrual loans were $88.1 million, or 1.00% of total loans, at December 31, 2024, compared to $91.2 million, or 1.02% of total loans, at September 30, 2024; Loans held for sale decreased by 8.0% from September 30, 2024 to $858.7 million at December 31, 2024; Total deposits were $11.1 billion and $10.8 billion at December 31, 2024 and September 30, 2024, respectively; Total estimated uninsured deposits were $5.7 billion, or approximately 52% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $363.1 million, were $5.3 billion, or approximately 48% of total deposits, at December 31, 2024. Hilltop maintained strong capital levels2 with a Tier 1 Leverage Ratio3 of 12.57% and a Common Equity Tier 1 Capital Ratio of 21.23% at December 31, 2024; Hilltop’s consolidated net interest margin4 decreased to 2.72% for the fourth quarter of 2024, compared to 2.84% in the third quarter of 2024; For the fourth quarter of 2024, noninterest income was $195.6 million, compared to $179.0 million in the fourth quarter of 2023, an 9.3% increase; For fourth quarter of 2024, noninterest expense was $262.8 million, compared to $250.8 million in the fourth quarter of 2023, a 4.7% increase; and Hilltop’s effective tax rate was 14.2% during the fourth quarter of 2024, compared to 18.7% during the same period in 2023. The effective tax rate for the fourth quarter of 2024 was lower than the applicable statutory rate primarily due to changes in accumulated tax reserves, state income tax reductions realized during the quarter and investments in tax-exempt instruments, partially offset by the impact of nondeductible expenses, nondeductible compensation expense and other permanent adjustments. ________________ 1 “Loans” reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $363.7 million and $340.4 million at December 31, 2024 and September 30, 2024, respectively. 2 Capital ratios reflect Hilltop’s decision to elect the transition option as issued by the federal banking regulatory agencies in March 2020 that permits banking institutions to mitigate the estimated cumulative regulatory capital effects from CECL over a five-year transitionary period through December 31, 2024. As of January 1, 2025, Hilltop had fully captured the day-one regulatory capital effects resulting from the implementation of CECL. 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) 2024 2024 2024 2024 2023 Cash and due from banks $ 2,298,977 $ 1,961,627 $ 798,300 $ 1,710,066 $ 1,858,700 Federal funds sold 650 3,650 5,650 650 650 Assets segregated for regulatory purposes 70,963 55,628 51,046 70,717 57,395 Securities purchased under agreements to resell 88,728 81,766 111,914 91,608 80,011 Securities: Trading, at fair value 524,916 540,836 721,384 657,700 515,991 Available for sale, at fair value, net (1) 1,396,549 1,405,700 1,433,107 1,480,555 1,507,595 Held to maturity, at amortized cost, net (1) 737,899 754,824 777,456 790,550 812,677 Equity, at fair value 297 287 254 315 321 2,659,661 2,701,647 2,932,201 2,929,120 2,836,584 Loans held for sale 858,665 933,724 1,264,437 842,324 943,846 Loans held for investment, net of unearned income 7,950,551 7,979,630 8,173,520 8,062,693 8,079,745 Allowance for credit losses (101,116 ) (110,918 ) (115,082 ) (104,231 ) (111,413 ) Loans held for investment, net 7,849,435 7,868,712 8,058,438 7,958,462 7,968,332 Broker-dealer and clearing organization receivables 1,452,366 1,220,784 1,297,175 1,473,561 1,573,931 Premises and equipment, net 148,245 157,803 161,746 165,557 168,856 Operating lease right-of-use assets 90,563 92,041 93,994 95,343 88,580 Mortgage servicing assets 5,723 45,742 52,902 95,591 96,662 Other assets 470,073 528,839 517,811 501,244 517,545 Goodwill 267,447 267,447 267,447 267,447 267,447 Other intangible assets, net 6,633 6,995 7,429 7,943 8,457 Total assets $ 16,268,129 $ 15,926,405 $ 15,620,490 $ 16,209,633 $ 16,466,996 Deposits: Noninterest-bearing $ 2,768,707 $ 2,831,539 $ 2,845,441 $ 3,028,543 $ 3,007,101 Interest-bearing 8,296,615 7,959,908 7,528,415 7,855,553 8,056,091 Total deposits 11,065,322 10,791,447 10,373,856 10,884,096 11,063,192 Broker-dealer and clearing organization payables 1,331,902 1,110,373 1,285,226 1,436,462 1,430,734 Short-term borrowings 834,023 914,645 897,613 892,574 900,038 Securities sold, not yet purchased, at fair value 57,234 47,773 75,546 60,562 34,872 Notes payable 347,667 347,533 347,402 347,273 347,145 Operating lease liabilities 109,103 110,799 113,096 114,518 109,002 Other liabilities 304,566 397,976 365,140 314,718 431,684 Total liabilities 14,049,817 13,720,546 13,457,879 14,050,203 14,316,667 Common stock 650 650 650 653 652 Additional paid-in capital 1,052,219 1,050,497 1,047,523 1,049,831 1,054,662 Accumulated other comprehensive loss (111,497 ) (98,168 ) (119,171 ) (119,606 ) (121,505 ) Retained earnings 1,248,593 1,224,117 1,205,467 1,201,013 1,189,222 Deferred compensation employee stock trust, net — — 1 115 228 Employee stock trust — — (1 ) (142 ) (292 ) Total Hilltop stockholders' equity 2,189,965 2,177,096 2,134,469 2,131,864 2,122,967 Noncontrolling interests 28,347 28,763 28,142 27,566 27,362 Total stockholders' equity 2,218,312 2,205,859 2,162,611 2,159,430 2,150,329 Total liabilities & stockholders' equity $ 16,268,129 $ 15,926,405 $ 15,620,490 $ 16,209,633 $ 16,466,996 ________________ (1) At December 31, 2024, the amortized cost of the available for sale securities portfolio was $1,498,415, while the fair value of the held to maturity securities portfolio was $649,872. 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) 2024 2024 2023 2024 2023 Interest income: Loans, including fees $ 131,726 $ 139,821 $ 138,096 $ 544,505 $ 542,274 Securities borrowed 17,492 19,426 18,659 77,785 71,924 Securities: Taxable 29,212 26,265 28,763 107,007 108,250 Tax-exempt 2,944 2,438 2,545 10,186 10,763 Other 27,216 23,092 28,704 96,906 105,164 Total interest income 208,590 211,042 216,767 836,389 838,375 Interest expense: Deposits 67,411 70,641 68,339 275,291 223,179 Securities loaned 16,407 18,499 17,247 72,614 65,175 Short-term borrowings 10,992 10,878 13,495 44,134 57,857 Notes payable 3,910 3,555 3,596 14,659 15,448 Other 4,386 2,426 2,864 11,893 9,869 Total interest expense 103,106 105,999 105,541 418,591 371,528 Net interest income 105,484 105,043 111,226 417,798 466,847 Provision for (reversal of) credit losses (5,852 ) (1,270 ) 1,265 941 18,392 Net interest income after provision for (reversal of) credit losses 111,336 106,313 109,961 416,857 448,455 Noninterest income: Net gains from sale of loans and other mortgage production income 43,553 47,816 36,387 190,021 172,150 Mortgage loan origination fees 30,111 32,119 32,844 123,066 144,539 Securities commissions and fees 35,338 30,434 27,380 125,655 100,532 Investment and securities advisory fees and commissions 37,514 42,220 35,780 142,952 134,327 Other 49,074 47,854 46,587 189,262 177,425 Total noninterest income 195,590 200,443 178,978 770,956 728,973 Noninterest expense: Employees' compensation and benefits 173,334 177,987 160,390 687,149 678,310 Occupancy and equipment, net 25,707 22,317 21,524 91,233 89,326 Professional services 12,791 11,645 13,170 44,437 49,100 Other 50,925 52,363 55,761 210,737 211,573 Total noninterest expense 262,757 264,312 250,845 1,033,556 1,028,309 Income before income taxes 44,169 42,444 38,094 154,257 149,119 Income tax expense 6,285 9,539 7,132 31,047 31,140 Net income 37,884 32,905 30,962 123,210 117,979 Less: Net income attributable to noncontrolling interest 2,365 3,212 2,291 9,997 8,333 Income attributable to Hilltop $ 35,519 $ 29,693 $ 28,671 $ 113,213 $ 109,646 Earnings per common share: Basic $ 0.55 $ 0.46 $ 0.44 $ 1.74 $ 1.69 Diluted $ 0.55 $ 0.46 $ 0.44 $ 1.74 $ 1.69 Cash dividends declared per common share $ 0.17 $ 0.17 $ 0.16 $ 0.68 $ 0.64 Weighted average shares outstanding: Basic 64,935 64,928 65,136 65,036 65,043 Diluted 64,943 64,946 65,138 65,046 65,045 Three Months Ended December 31, 2024 Segment Results Mortgage All Other and Hilltop (in 000's) Banking Broker-Dealer Origination Corporate Eliminations Consolidated Net interest income (expense) $ 94,946 $ 12,046 $ (3,627 ) $ (3,277 ) $ 5,396 $ 105,484 Provision for (reversal of) credit losses (5,665 ) (187 ) — — — (5,852 ) Noninterest income 11,411 114,321 73,740 1,767 (5,649 ) 195,590 Noninterest expense 61,426 106,181 80,022 15,379 (251 ) 262,757 Income (loss) before taxes $ 50,596 $ 20,373 $ (9,909 ) $ (16,889 ) $ (2 ) $ 44,169 Year Ended December 31, 2024 Segment Results Mortgage All Other and Hilltop (in 000's) Banking Broker-Dealer Origination Corporate Eliminations Consolidated Net interest income (expense) $ 372,546 $ 48,942 $ (16,867 ) $ (12,838 ) $ 26,015 $ 417,798 Provision for (reversal of) credit losses 992 (51 ) — — — 941 Noninterest income 43,295 422,801 313,229 18,515 (26,884 ) 770,956 Noninterest expense 232,954 408,283 330,088 63,110 (879 ) 1,033,556 Income (loss) before taxes $ 181,895 $ 63,511 $ (33,726 ) $ (57,433 ) $ 10 $ 154,257 Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, Selected Financial Data 2024 2024 2023 2024 2023 Hilltop Consolidated: Return on average stockholders' equity 6.50 % 5.51 % 5.46 % 5.29 % 5.31 % Return on average assets 0.92 % 0.84 % 0.75 % 0.78 % 0.71 % Net interest margin (1) 2.72 % 2.84 % 2.96 % 2.81 % 3.07 % Net interest margin (taxable equivalent) (2): As reported 2.74 % 2.85 % 2.98 % 2.83 % 3.09 % Impact of purchase accounting 3 bps 2 bps 4 bps 4 bps 6 bps Book value per common share ($) 33.71 33.51 32.58 33.71 32.58 Shares outstanding, end of period (000's) 64,968 64,960 65,153 64,968 65,153 Dividend payout ratio (3) 31.08 % 37.17 % 36.35 % 39.06 % 37.97 % Banking Segment: Net interest margin (1) 2.98 % 3.05 % 2.94 % 3.04 % 3.13 % Net interest margin (taxable equivalent) (2): As reported 2.99 % 3.06 % 2.95 % 3.04 % 3.14 % Impact of purchase accounting 4 bps 3 bps 5 bps 4 bps 7 bps Accretion of discount on loans ($000's) 1,076 737 1,202 5,057 8,632 Net recoveries (charge-offs) ($000's) (3,950 ) (2,894 ) (674 ) (11,238 ) (2,421 ) Return on average assets 1.24 % 1.14 % 1.12 % 1.10 % 1.15 % Fee income ratio 10.7 % 10.3 % 11.2 % 10.4 % 10.3 % Efficiency ratio 57.8 % 55.2 % 53.2 % 56.0 % 51.0 % Employees' compensation and benefits ($000's) 33,313 31,920 29,420 130,974 123,345 Broker-Dealer Segment: Net revenue ($000's) (4) 126,367 124,258 119,989 471,743 456,432 Employees' compensation and benefits ($000's) 75,150 75,912 68,746 286,700 266,395 Variable compensation expense ($000's) 42,484 42,569 39,435 153,062 144,984 Compensation as a % of net revenue 59.5 % 61.1 % 57.3 % 60.8 % 58.4 % Pre-tax margin (5) 16.1 % 13.7 % 16.8 % 13.5 % 16.1 % Mortgage Origination Segment: Mortgage loan originations - volume ($000's): Home purchases 1,909,706 2,096,009 1,698,009 7,759,812 7,701,758 Refinancings 343,400 211,454 117,018 856,541 541,373 Total mortgage loan originations - volume 2,253,106 2,307,463 1,815,027 8,616,353 8,243,131 Mortgage loan sales - volume ($000's) 2,065,356 2,569,678 1,874,001 8,223,734 8,046,585 Net gains from mortgage loan sales (basis points): Loans sold to third parties 226 224 189 226 198 Impact of loans retained by banking segment (5 ) 0 0 (4 ) (4 ) As reported 221 224 189 222 194 Mortgage servicing rights asset ($000's) (6) 5,723 45,742 96,662 5,723 96,662 Employees' compensation and benefits ($000's) 56,402 60,573 53,766 231,293 251,119 Variable compensation expense ($000's) 30,784 33,862 24,085 121,720 118,977 ________________ (1) Net interest margin is defined as net interest income divided by average interest-earning assets. (2) Net interest margin (taxable equivalent), a non-GAAP measure, is defined as taxable equivalent net interest income divided by average interest-earning assets. Taxable equivalent adjustments are based on the applicable 21% federal income tax rate for all periods presented. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. The taxable equivalent adjustments to interest income for Hilltop (consolidated) were $0.7 million, $0.6 million, $0.6 million, $2.5 million and $2.7 million, respectively, for the periods presented and for the banking segment were $0.2 million, $0.2 million, $0.2 million, $0.6 million and $0.7 million, respectively, for the periods presented. (3) Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share. (4) Net revenue is defined as the sum of total broker-dealer net interest income and total broker-dealer noninterest income. (5) Pre-tax margin is defined as income before income taxes divided by net revenue. (6) Reported on a consolidated basis and therefore does not include mortgage servicing rights assets related to loans serviced for the banking segment, which are eliminated in consolidation. December 31, September 30, June 30, March 31, December 31, Capital Ratios 2024 2024 2024 2024 2023 Tier 1 capital (to average assets): PlainsCapital 9.99 % 10.34 % 11.36 % 11.00 % 10.55 % Hilltop 12.57 % 12.95 % 12.87 % 12.49 % 12.23 % Common equity Tier 1 capital (to risk-weighted assets): PlainsCapital 15.35 % 14.94 % 15.58 % 15.87 % 15.44 % Hilltop 21.23 % 20.48 % 19.45 % 19.73 % 19.32 % Tier 1 capital (to risk-weighted assets): PlainsCapital 15.35 % 14.94 % 15.58 % 15.87 % 15.44 % Hilltop 21.23 % 20.48 % 19.45 % 19.73 % 19.32 % Total capital (to risk-weighted assets): PlainsCapital 16.54 % 16.13 % 16.77 % 17.06 % 16.58 % Hilltop 24.40 % 23.68 % 22.57 % 22.79 % 22.34 % December 31, September 30, June 30, March 31, December 31, Non-Performing Assets Portfolio Data 2024 2024 2024 2024 2023 Loans accounted for on a non-accrual basis ($000's): Commercial real estate: Non-owner occupied $ 7,166 $ 8,042 $ 6,894 $ 34,661 $ 36,440 Owner occupied 6,092 2,410 6,437 4,846 5,098 Commercial and industrial 59,025 66,929 80,755 12,165 9,502 Construction and land development 3,003 2,682 485 698 3,480 1-4 family residential 12,863 11,123 11,092 12,363 13,801 Consumer — — 1 3 6 Broker-dealer — — — — — Non-accrual loans ($000's) $ 88,149 $ 91,186 $ 105,664 $ 64,736 $ 68,327 Non-accrual loans as a % of total loans 1.00 % 1.02 % 1.12 % 0.73 % 0.76 % Other real estate owned ($000's) 2,848 2,744 2,973 5,254 5,095 Other repossessed assets ($000's) 98 413 464 472 — Non-performing assets ($000's) 91,095 94,343 109,101 70,462 73,422 Non-performing assets as a % of total assets 0.56 % 0.59 % 0.70 % 0.43 % 0.45 % Loans past due 90 days or more and still accruing ($000's) (1) 22,090 140,763 122,451 112,799 115,090 ________________ (1) Loans past due 90 days or more and still accruing were primarily comprised of loans held for sale and guaranteed by U.S. government agencies, including loans that are subject to repurchase, or have been repurchased, by PrimeLending. Three Months Ended December 31, 2024 2023 Average Interest Annualized Average Interest Annualized Outstanding Earned Yield or Outstanding Earned Yield or Net Interest Margin (Taxable Equivalent) Details (1) Balance or Paid Rate Balance or Paid Rate Assets Interest-earning assets Loans held for sale $ 1,011,036 $ 13,278 5.25 % $ 841,715 $ 13,239 6.29 % Loans held for investment, gross (2) 7,931,572 118,448 5.93 % 7,902,814 124,857 6.27 % Investment securities - taxable 2,443,886 29,213 4.78 % 2,629,808 28,763 4.37 % Investment securities - non-taxable (3) 360,622 3,666 4.07 % 313,714 3,157 12.08 % Federal funds sold and securities purchased under agreements to resell 96,066 1,797 7.42 % 153,785 2,082 5.37 % Interest-bearing deposits in other financial institutions 2,033,482 23,052 4.50 % 1,646,885 21,948 5.29 % Securities borrowed 1,361,481 17,492 5.03 % 1,371,092 18,659 5.33 % Other 130,624 2,367 7.19 % 48,120 4,675 38.54 % Interest-earning assets, gross (3) 15,368,769 209,313 5.40 % 14,907,933 217,380 5.79 % Allowance for credit losses (110,191 ) (110,832 ) Interest-earning assets, net 15,258,578 14,797,101 Noninterest-earning assets 1,065,783 1,473,839 Total assets $ 16,324,361 $ 16,270,940 Liabilities and Stockholders' Equity Interest-bearing liabilities Interest-bearing deposits $ 8,176,034 $ 67,411 3.27 % $ 7,966,770 $ 68,339 3.40 % Securities loaned 1,353,195 16,407 4.81 % 1,324,887 17,247 5.16 % Notes payable and other borrowings 1,399,178 19,288 5.47 % 1,439,297 19,955 5.50 % Total interest-bearing liabilities 10,928,407 103,106 3.74 % 10,730,954 105,541 3.90 % Noninterest-bearing liabilities Noninterest-bearing deposits 2,795,588 3,096,244 Other liabilities 399,964 335,307 Total liabilities 14,123,959 14,162,505 Stockholders’ equity 2,172,640 2,081,833 Noncontrolling interest 27,762 26,602 Total liabilities and stockholders' equity $ 16,324,361 $ 16,270,940 Net interest income (3) $ 106,207 $ 111,839 Net interest spread (3) 1.66 % 1.89 % Net interest margin (3) 2.74 % 2.98 % Year Ended December 31, 2024 2023 Average Interest Annualized Average Interest Annualized Outstanding Earned Yield or Outstanding Earned Yield or Net Interest Margin (Taxable Equivalent) Details (1) Balance or Paid Rate Balance or Paid Rate Assets Interest-earning assets Loans held for sale $ 934,983 $ 53,073 5.60 % $ 944,470 $ 53,736 5.69 % Loans held for investment, gross (2) 7,921,528 491,432 6.20 % 7,950,878 488,538 6.23 % Investment securities - taxable 2,537,856 107,007 4.16 % 2,726,763 108,250 3.97 % Investment securities - non-taxable (3) 324,684 12,638 3.84 % 363,493 13,463 3.70 % Federal funds sold and securities purchased under agreements to resell 98,337 7,232 7.35 % 145,696 8,954 6.15 % Interest-bearing deposits in other financial institutions 1,526,748 75,633 4.95 % 1,597,865 79,657 4.99 % Securities borrowed 1,355,554 77,785 5.66 % 1,409,765 71,924 5.03 % Other 159,141 14,041 8.82 % 65,912 16,554 25.11 % Interest-earning assets, gross (3) 14,858,831 838,841 5.65 % 15,204,842 841,076 5.53 % Allowance for credit losses (110,123 ) (103,975 ) Interest-earning assets, net 14,748,708 15,100,867 Noninterest-earning assets 1,130,198 1,404,393 Total assets $ 15,878,906 $ 16,505,260 Liabilities and Stockholders' Equity Interest-bearing liabilities Interest-bearing deposits $ 7,822,536 $ 275,291 3.52 % $ 7,711,570 $ 223,179 2.89 % Securities loaned 1,335,155 72,614 5.44 % 1,331,443 65,175 4.90 % Notes payable and other borrowings 1,397,313 70,686 5.06 % 1,579,170 83,174 5.27 % Total interest-bearing liabilities 10,555,004 418,591 3.97 % 10,622,183 371,528 3.50 % Noninterest-bearing liabilities Noninterest-bearing deposits 2,824,450 3,441,437 Other liabilities 332,340 351,938 Total liabilities 13,711,794 14,415,558 Stockholders’ equity 2,139,732 2,063,174 Noncontrolling interest 27,380 26,528 Total liabilities and stockholders' equity $ 15,878,906 $ 16,505,260 Net interest income (3) $ 420,250 $ 469,548 Net interest spread (3) 1.68 % 2.03 % Net interest margin (3) 2.83 % 3.09 % ________________ (1) Information presented on a consolidated basis (dollars in thousands). (2) Average balance includes non-accrual loans. (3) Presented on a taxable-equivalent basis with annualized taxable equivalent adjustments based on the applicable 21% federal income tax rate for the periods presented. The adjustment to interest income was $0.7 million and $0.6 million for the three months ended December 31, 2024 and 2023, respectively, and $2.5 million and $2.7 million for the year ended December 31, 2024 and 2023, respectively. Conference Call Information Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, January 31, 2025. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review fourth quarter and full year 2024 financial results. Interested parties can access the conference call by dialing 800-549-8228 (Toll Free North America) or (+1) 289-819-1520 (International Toll) and then using the conference ID 03956. The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop.com). About Hilltop Hilltop Holdings is a Dallas-based financial holding company. Its primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank. PlainsCapital Bank’s wholly owned subsidiary, PrimeLending, provides residential mortgage lending throughout the United States. Hilltop Holdings’ broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. At December 31, 2024, Hilltop employed approximately 3,650 people and operated 280 locations in 48 states. Hilltop Holdings’ common stock is listed on the New York Stock Exchange under the symbol “HTH.” Find more information at Hilltop.com, PlainsCapital.com, PrimeLending.com and Hilltopsecurities.com. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements speak only as of the date they are made and, except as required by law, we do not assume any duty to update forward-looking statements. Such forward-looking statements include, but are not limited to, statements concerning such things as our plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact, and may be identified by words such as “aim,” “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “position,” “probable,” “progressing,” “projects,” “prudent,” “seeks,” “should,” “steady,” “target,” “view,” “will” or “would” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: (i) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (ii) effectiveness of our data security controls in the face of cyber attacks and any legal, reputational and financial risks following a cybersecurity incident; (iii) changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil; (iv) changes in the interest rate environment; (v) risks associated with concentration in real estate related loans; (vi) the effects of indebtedness on our ability to manage our business successfully, including the restrictions imposed by the indenture governing our indebtedness; (vii) disruptions to the economy and financial services industry, risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators, including increases in the cost of our deposit insurance assessments; (viii) cost and availability of capital; (ix) changes in state and federal laws, regulations or policies affecting one or more of our business segments, including changes in policies under the new Presidential administration, changes in regulatory fees, deposit insurance premiums, capital requirements and the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”); (x) changes in key management; (xi) competition in our banking, broker-dealer, and mortgage origination segments from other banks and financial institutions as well as investment banking and financial advisory firms, mortgage bankers, asset-based non-bank lenders and government agencies; (xii) legal and regulatory proceedings; (xiii) risks associated with merger and acquisition integration; and (xiv) our ability to use excess capital in an effective manner. 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.

Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2024

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