Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2018

Oct 25, 2018 05:15 pm
DALLAS -- 

Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the third quarter of 2018. Hilltop produced income of $35.8 million, or $0.38 per diluted share, for the third quarter of 2018, compared to $30.2 million, or $0.31 per diluted share, for the third quarter of 2017.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable on November 30, 2018, to all common stockholders of record as of the close of business on November 15, 2018. Additionally, pursuant to the stock repurchase program authorized by the Hilltop Board of Directors, Hilltop has paid $38.8 million to repurchase 1,702,696 shares at an average price of $22.81 during the first nine months of 2018. These shares were returned to the pool of authorized but unissued shares of common stock. Aggregate repurchases of $61.2 million remain available under this program which expires in January 2019. Amounts repurchased are inclusive of repurchases to offset dilution related to grants of stock-based compensation.

On August 1, 2018, Hilltop completed its $85 million, all-cash acquisition of The Bank of River Oaks (“BORO”). Based on preliminary purchase date valuations, the fair value of the assets acquired was $434.8 million (excluding goodwill), including $326.6 million in loans (net of a $17.3 million fair value adjustment), while the fair value of liabilities assumed was $389.4 million, consisting primarily of $376.4 million in deposits. The operations of BORO were included in Hilltop operating results beginning August 1, 2018. The estimated fair value of the core deposit intangible asset acquired as of August 1, 2018 was $10.0 million (approximately 3.1% of core deposits) and resulting preliminary goodwill was $39.6 million. In connection with the acquisition, BORO was merged into PlainsCapital Bank, and all customer accounts were converted to the PlainsCapital Bank platform in October 2018. Transaction expenses related to the BORO acquisition were $6.6 million during the third quarter of 2018.

Jeremy Ford, Co-CEO of Hilltop, said, “Hilltop’s results this quarter reflect our focus on execution, as we closed and successfully integrated The Bank of River Oaks and delivered profitability in all of our operating segments. We continue to make progress with our strategic objectives to enhance our financial services platform through investments in technology solutions and to streamline our operations through the adoption of shared services. During 2018, Hilltop has deployed $85 million of capital through the acquisition of The Bank of River Oaks and returned $59 million of capital through dividends and share repurchases.”

Alan White, Co-CEO of Hilltop, added, “Serving our clients and expanding relationships across all of our businesses remains the primary focus. PlainsCapital Bank has continued to demonstrate strong credit quality and prudent loan growth. The mortgage business remains challenging given competitive pressures on both pricing and volume. PrimeLending, through our purchase mortgage-focused strategy, remained profitable in the quarter and took steps to optimize its cost structure. HilltopSecurities delivered improved profitability from its Structured Finance and Clearing businesses. National Lloyds’ performance for the quarter was substantially improved versus 2017 from lower storm activity within our footprint.”

Third Quarter 2018 Highlights for Hilltop:

  • Hilltop invested a total of $24.6 million in land and a mixed-use real estate project that is currently under construction, which is expected to serve as the headquarters for both Hilltop and PlainsCapital Bank starting in the fourth quarter of 2019;
  • Hilltop’s annualized return on average assets and return on average equity for the third quarter of 2018 were 1.07% and 7.41%, respectively, compared to 0.90% and 6.32%, respectively, for the third quarter of 2017;
  • Hilltop’s book value per common share increased to $20.51 at September 30, 2018, compared to $20.21 at June 30, 2018;
  • Hilltop’s total assets were $13.8 billion at September 30, 2018, compared to $13.7 billion at June 30, 2018;
  • Non-covered loans1 held for investment, net of allowance for loan losses, increased by 7.3% to $6.1 billion and covered loans2, net of allowance for loan losses, decreased by 10.2% to $142.7 million at September 30, 2018 compared to June 30, 2018;
  • Non-covered non-performing loans decreased to $36.8 million, or 0.44% of total non-covered loans, at September 30, 2018, compared to $42.0 million, or 0.50% of total non-covered loans, at June 30, 2018;
  • Loans held for sale decreased by 21.9% from June 30, 2018 to $1.5 billion at September 30, 2018;
  • Total deposits were $8.3 billion at September 30, 2018, compared to $7.8 billion at June 30, 2018;
  • Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio3 of 12.40% and a Common Equity Tier 1 Capital Ratio of 16.95% at September 30, 2018;
  • Hilltop’s net interest margin4 increased to 3.48% for the third quarter of 2018, compared to 3.46% in the second quarter of 2018;
  • The provision (recovery) for loan losses was ($0.4) million during the third quarter of 2018, compared to $0.3 million in the second quarter of 2018;
  • For the third quarter of 2018, noninterest income was $269.7 million, compared to $298.5 million in the third quarter of 2017, a 9.6% decrease;
  • For the third quarter of 2018, noninterest expense was $335.7 million, compared to $353.8 million in the third quarter of 2017, a 5.1% decrease; and
  • Hilltop’s effective tax rate decreased to 17.0% during the third quarter of 2018, compared to 37.2% during the third quarter of 2017, and included significant items related to the following:
    • Reduction of the corporate tax rate in 2018 from 35% to 21% pursuant to the enactment of the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”); and
    • Reduction in the third quarter of 2018 due to tax planning strategies and a tax benefit recognized on the deductible portion of settlement of litigation.

______________________________

1   “Non-covered loans” exclude broker-dealer margin loans.
2 “Covered loans” refer to loans acquired in the FNB Transaction that were subject to loss-share agreements with the FDIC as of September 30, 2018.
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 September 30, June 30, March 31, December 31, September 30,
(in 000's) 2018 2018 2018 2017 2017
Cash and due from banks $ 405,682 $ 353,432 $ 470,127 $ 486,977 $ 354,569
Federal funds sold 468 403 400 405 400
Assets segregated for regulatory purposes 220,115 128,417 198,170 186,578 207,336
Securities purchased under agreements to resell 164,656 229,172 244,978 186,537 134,654
Securities:
Trading, at fair value 660,314 634,197 756,151 730,685 676,411
Available for sale, at fair value 874,496 811,218 806,583 744,319 744,559
Held to maturity, at amortized cost 348,163 353,192 356,452 355,849 368,031
Equity, at fair value   21,555     21,218     20,876     21,241     20,983  
1,904,528 1,819,825 1,940,062 1,852,094 1,809,984
Loans held for sale 1,524,980 1,953,562 1,409,634 1,715,357 1,939,321
Non-covered loans, net of unearned income 6,796,278 6,384,660 6,216,809 6,273,669 6,148,813
Allowance for non-covered loan losses   (58,861 )   (59,996 )   (60,371 )   (60,957 )   (58,779 )
Non-covered loans, net 6,737,417 6,324,664 6,156,438 6,212,712 6,090,034
 
Covered loans, net of allowance for covered loan losses 142,737 158,996 167,781 179,400 188,269
Broker-dealer and clearing organization receivables 1,491,507 1,614,951 1,660,720 1,464,378 1,672,123
Premises and equipment, net 236,172 172,911 173,637 177,577 176,281
FDIC indemnification asset 22,831 23,525 25,458 29,340 33,143
Covered other real estate owned 29,856 34,895 35,777 36,744 40,343
Other assets 551,758 589,897 576,567 549,447 596,095
Goodwill 291,435 251,808 251,808 251,808 251,808
Other intangible assets, net   40,394     32,716     34,569     36,432     38,440  
Total assets $ 13,764,536   $ 13,689,174   $ 13,346,126   $ 13,365,786   $ 13,532,800  
 
Deposits:
Non interest-bearing $ 2,525,677 $ 2,468,332 $ 2,565,825 $ 2,411,849 $ 2,279,633
Interest-bearing   5,764,556     5,345,290     5,393,897     5,566,270     5,383,814  
Total deposits 8,290,233 7,813,622 7,959,722 7,978,119 7,663,447
Broker-dealer and clearing organization payables 1,396,401 1,409,904 1,504,172 1,287,563 1,517,698
Short-term borrowings 1,216,649 1,610,735 1,064,325 1,206,424 1,477,201
Securities sold, not yet purchased, at fair value 179,582 251,581 255,551 232,821 173,509
Notes payable 220,192 227,736 202,700 208,809 300,196
Junior subordinated debentures 67,012 67,012 67,012 67,012 67,012
Other liabilities   430,309     392,171     367,188     470,231     424,381  
Total liabilities 11,800,378 11,772,761 11,420,670 11,450,979 11,623,444
 
Common stock 946 946 960 960 959
Additional paid-in capital 1,504,467 1,502,105 1,526,867 1,526,369 1,525,169
Accumulated other comprehensive income (loss) (14,722 ) (11,846 ) (9,698 ) (394 ) 2,585
Retained earnings 448,923 419,683 404,260 384,545 376,873
Deferred compensation employee stock trust, net 860 857 857 848 840
Employee stock trust   (252 )   (252 )   (254 )   (247 )   (241 )
Total Hilltop stockholders' equity 1,940,222 1,911,493 1,922,992 1,912,081 1,906,185
Noncontrolling interests   23,936     4,920     2,464     2,726     3,171  
Total stockholders' equity   1,964,158     1,916,413     1,925,456     1,914,807     1,909,356  
Total liabilities & stockholders' equity $ 13,764,536   $ 13,689,174   $ 13,346,126   $ 13,365,786   $ 13,532,800  
 
                     
Three Months Ended
Consolidated Income Statements September 30, June 30, March 31, December 31, September 30,
(in 000's, except per share data) 2018 2018 2018 2017 2017
Interest income:
Loans, including fees $ 113,535 $ 103,924 $ 99,944 $ 105,658 $ 102,546
Securities borrowed 16,346 17,486 16,300 11,994 11,404
Securities:
Taxable 11,994 12,516 10,953 10,824 10,214
Tax-exempt 1,717 1,697 1,772 1,717 1,471
Other   4,734     4,417   4,391     3,472   3,309
Total interest income 148,326 140,040 133,360 133,665 128,944
 
Interest expense:
Deposits 12,353 10,136 8,675 7,700 6,841
Securities loaned 13,984 15,075 13,739 9,581 8,935
Short-term borrowings 7,831 6,466 4,043 4,118 4,567
Notes payable 2,702 2,437 2,497 2,611 2,680
Junior subordinated debentures 955 918 822 787 774
Other   160     160   164     176   167
Total interest expense 37,985 35,192 29,940 24,973 23,964
 
Net interest income 110,341 104,848 103,420 108,692 104,980
Provision (recovery) for loan losses   (371 )   340   (1,807 )   5,453   1,260
Net interest income after provision (recovery) for loan losses 110,712 104,508 105,227 103,239 103,720
 
Noninterest income:
Net gains from sale of loans and other mortgage production income 116,243 132,478 105,767 122,132 138,498
Mortgage loan origination fees 27,004 29,318 20,626 23,156 25,256
Securities commissions and fees 36,968 38,320 38,717 40,868 38,735
Investment and securities advisory fees and commissions 23,487 21,965 18,354 36,561 25,620
Net insurance premiums earned 34,185 34,105 34,315 35,645 34,493
Other   31,810     23,248   17,364     32,094   35,875
Total noninterest income 269,697 279,434 235,143 290,456 298,477
 
Noninterest expense:
Employees' compensation and benefits 205,575 200,632 182,600 205,642 209,747
Occupancy and equipment, net 29,015 27,893 27,830 29,658 29,073
Professional services 27,984 26,020 24,704 24,220 25,560
Loss and loss adjustment expenses 18,712 24,409 15,532 8,583 31,234
Other   54,425     59,563   57,536     60,567   58,228
Total noninterest expense 335,711 338,517 308,202 328,670 353,842
 
Income before income taxes 44,698 45,425 32,168 65,025 48,355
Income tax expense   7,600     11,034   7,488     51,350   18,003
Net income 37,098 34,391 24,680 13,675 30,352
Less: Net income attributable to noncontrolling interest   1,293     1,311   239     247   146
Income attributable to Hilltop $ 35,805   $ 33,080 $ 24,441   $ 13,428 $ 30,206
 
Earnings per common share:
Basic $ 0.38 $ 0.35 $ 0.25 $ 0.14 $ 0.31
Diluted $ 0.38 $ 0.35 $ 0.25 $ 0.14 $ 0.31
 
Cash dividends declared per common share $ 0.07 $ 0.07 $ 0.07 $ 0.06 $ 0.06
 
Weighted average shares outstanding:
Basic 94,554 95,270 95,985 95,903 96,096
Diluted 94,610 95,358 96,146 96,080 96,306
 
                             
Three Months Ended September 30, 2018
Segment Results Mortgage All Other and Hilltop
(in 000's) Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated
Net interest income (expense) $ 94,921 $ 12,432 $ 363 $ 733 $ (3,275 ) $ 5,167 $ 110,341
Provision for loan losses — (371 ) — — — — (371 )
Noninterest income 11,365 82,834 144,400 36,724 523 (6,149 ) 269,697
Noninterest expense   67,714   85,713     140,006   33,807   8,656     (185 )   335,711  
Income (loss) before income taxes $ 38,572 $ 9,924   $ 4,757 $ 3,650 $ (11,408 ) $ (797 ) $ 44,698  
 
                     
Three Months Ended
September 30, June 30, March 31, December 31, September 30,
Selected Financial Data 2018 2018 2018 2017 2017
 

Hilltop Consolidated:

Return on average stockholders' equity (1) 7.41% 6.95% 5.19% 2.78% 6.32%
Return on average assets (1) 1.07% 1.03% 0.77% 0.41% 0.90%
Net interest margin (2) (3) 3.48% 3.46% 3.52% 3.57% 3.44%
Net interest margin (taxable equivalent) (3) (4):
As reported 3.49% 3.47% 3.53% 3.59% 3.46%
Impact of purchase accounting 28 bps 29 bps 36 bps 43 bps 37 bps
Book value per common share ($) 20.51 20.21 20.02 19.92 19.88
Shares outstanding, end of period (000's) 94,594 94,571 96,048 95,982 95,904
Dividend payout ratio (1) (5) 18.48% 20.16% 27.49% 42.86% 19.09%
 

Banking Segment:

Net interest margin (2) 4.13% 4.11% 4.15% 4.23% 4.03%
Net interest margin (taxable equivalent) (4):
As reported 4.14% 4.12% 4.16% 4.24% 4.05%
Impact of purchase accounting 39 bps 42 bps 51 bps 60 bps 51 bps
Accretion of discount on loans ($000's) 8,147 8,343 9,867 12,642 10,541
Non-covered net charge-offs (recoveries) ($000's) 1,442 1,510 (1,312) 2,646 908
Return on average assets (1) 1.19% 1.09% 1.31% -0.08% 0.94%
Fee income ratio 10.69% 10.79% 10.51% 10.22% 11.33%
Efficiency ratio 63.71% 66.47% 61.32% 60.18% 62.29%
Employees' compensation and benefits ($000's) 36,878 32,442 30,811 31,159 30,810
 

Broker-Dealer Segment:

Net revenue (6) 95,266 86,479 81,097 114,326 103,633
Employees' compensation and benefits ($000's) 59,535 52,418 52,265 70,169 60,365
Variable compensation expense ($000's) 33,574 26,036 24,594 41,239 35,085
Compensation as a % of net revenue 62.5% 60.6% 64.4% 61.4% 58.2%
Pre-tax margin 10.42% 9.45% 4.44% 16.73% 19.49%
 

Mortgage Origination Segment:

Mortgage loan originations - volume ($000's):
Home purchases 3,237,444 3,615,991 2,358,692 2,870,864 3,332,441
Refinancings 416,201 491,384 601,105 732,129 640,064
Total mortgage loan originations - volume 3,653,645 4,107,375 2,959,797 3,602,993 3,972,505
Mortgage loan sales - volume ($000's) 4,015,051 3,526,603 3,185,438 3,791,638 4,002,195
Net gains from mortgage loan sales (basis points) 330 317 333 380 375
Mortgage servicing rights asset ($000's) (7) 68,804 57,373 63,957 54,714 47,766
Employees' compensation and benefits ($000's) 102,025 111,713 91,059 96,257 111,133
Variable compensation expense ($000's) (8) 58,686 66,531 46,292 57,434 64,956
 

Insurance Segment:

Loss and LAE ratio 54.7% 71.6% 45.3% 24.1% 90.6%
Expense ratio 38.8% 39.5% 39.9% 41.0% 40.4%
Combined ratio 93.5% 111.1% 85.2% 65.1% 131.0%
Employees' compensation and benefits ($000's) 2,595 2,954 3,255 3,418 2,578
 

______________________________

(1)   Noted measures during the three months ended December 31, 2017 include estimated non-cash, non-recurring charges to Hilltop Consolidated and Banking Segment results of $28.4 million and $25.7 million, respectively, primarily attributable to the revaluation of deferred tax assets as a result of the enactment of the Tax Legislation. Deferred tax asset amounts recorded in December 2017 are final as of September 30, 2018.
(2) Net interest margin is defined as net interest income divided by average interest-earning assets.
(3) Noted measures during the 2017 periods presented reflect certain category reclassifications within the detailed calculations to conform with the current period presentation.
(4) 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 the 2018 periods and 35% federal income tax rate for the 2017 periods. 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. For the periods presented, the taxable equivalent adjustments to interest income for Hilltop Consolidated were $0.2 million, $0.2 million, $0.3 million, $0.6 million, and $0.6 million, respectively, and for the Banking Segment were $0.2 million, $0.2 million, $0.2 million, $0.4 million, and $0.4 million, respectively.
(5) Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share.
(6) Net revenue is defined as the sum of total broker-dealer net interest income plus total broker-dealer noninterest income.
(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.
(8) Noted measure during the 2017 periods presented reflects certain category reclassifications that affect variable compensation expense to conform with the current period presentation.
 
                     
September 30, June 30, March 31, December 31, September 30,
Capital Ratios 2018 2018 2018 2017 2017
Tier 1 capital (to average assets):
PlainsCapital 11.86 % 12.80 % 13.01 % 12.32 % 12.18 %
Hilltop 12.40 % 12.90 % 13.26 % 12.94 % 12.87 %
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital 13.88 % 14.59 % 15.39 % 14.47 % 14.44 %
Hilltop 16.95 % 17.61 % 18.60 % 17.71 % 17.66 %
Tier 1 capital (to risk-weighted assets):
PlainsCapital 13.88 % 14.59 % 15.39 % 14.47 % 14.44 %
Hilltop 17.42 % 18.10 % 19.11 % 18.24 % 18.20 %
Total capital (to risk-weighted assets):
PlainsCapital 14.63 % 15.38 % 16.25 % 15.29 % 15.23 %
Hilltop 17.87 % 18.58 % 19.63 % 18.78 % 18.71 %
 
                     
September 30, June 30, March 31, December 31, September 30,
Non-Covered Non-Performing Loans Portfolio Data 2018 2018 2018 2017 2017
 
Non-covered loans accounted for on a non-accrual basis ($000's):
Commercial and industrial 21,323 22,815 20,768 20,878 21,434
Real estate 11,982 18,529 17,971 18,978 17,996
Construction and land development 3,402 569 595 611 626
Consumer 45 49 52 56 63
Broker-dealer — — — — —
36,752 41,962 39,386 40,523 40,119
 
Non-covered non-performing loans as a % of total non-covered loans 0.44% 0.50% 0.52% 0.51% 0.50%
 
Non-covered other real estate owned ($000's) 2,662 2,929 2,577 3,883 4,827
 
Other repossessed assets ($000's) 99 168 246 323 437
 
Non-covered non-performing assets ($000's) 39,513 45,059 42,209 44,729 45,383
 
Non-covered non-performing assets as a % of total assets 0.29% 0.33% 0.32% 0.33% 0.34%
 
Non-covered non-PCI loans past due 90 days or more and still accruing ($000's) 80,664 74,060 77,590 85,113 45,134
 
Troubled debt restructurings included in accruing non-covered loans ($000's) 1,086 1,111 1,123 1,150 1,163
 
                           
Three Months Ended September 30,
2018 2017
Average Interest Annualized Average Interest Annualized
Outstanding Earned or Yield or Outstanding Earned or Yield or
Net Interest Margin (Taxable Equivalent) Details Balance Paid Rate Balance Paid Rate
Assets
Interest-earning assets
Loans held for sale $ 1,718,410 $ 20,409 4.75 % $ 1,787,119 $ 18,469 4.13 %
Loans held for investment, gross (1) 6,767,004 93,126 5.41 % 6,290,685 84,077 5.26 %
Investment securities - taxable 1,625,368 11,964 2.94 % 1,538,890 10,191 2.65 %
Investment securities - non-taxable (2) 250,042 1,950 3.12 % 229,089 2,032 3.54 %
Federal funds sold and securities purchased under agreements to resell 202,274 956 1.87 % 139,398 284 0.81 %
Interest-bearing deposits in other financial institutions 379,160 1,915 2.00 % 477,904 1,514 1.26 %
Securities borrowed 1,550,902 16,346 4.12 % 1,548,039 11,404 2.88 %
Other   89,718     1,879 8.33 %   87,281     1,536 7.00 %
Interest-earning assets, gross (2) 12,582,878 148,545 4.66 % 12,098,405 129,507 4.23 %
Allowance for loan losses   (61,736 )   (61,243 )
Interest-earning assets, net 12,521,142 12,037,162
Noninterest-earning assets   1,299,974     1,311,454  
Total assets $ 13,821,116   $ 13,348,616  
 
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits $ 5,608,748 $ 12,353 0.87 % $ 5,350,959 $ 6,841 0.51 %
Securities loaned 1,415,231 13,984 3.92 % 1,398,922 8,935 2.53 %
Notes payable and other borrowings   1,720,823     11,648 2.68 %   1,781,498     8,188 1.81 %
Total interest-bearing liabilities 8,744,802 37,985 1.72 % 8,531,379 23,964 1.11 %
Noninterest-bearing liabilities
Noninterest-bearing deposits 2,538,833 2,290,151
Other liabilities   602,983     627,907  
Total liabilities 11,886,618 11,449,437
Stockholders’ equity 1,918,977 1,896,838
Noncontrolling interest   15,521     2,341  
Total liabilities and stockholders' equity $ 13,821,116   $ 13,348,616  
   
Net interest income (2) $ 110,560 $ 105,543
Net interest spread (2) 2.94 % 3.12 %
Net interest margin (2) 3.49 % 3.46 %
 

______________________________

(1)   Average balance includes non-accrual loans.
(2) Presented on a taxable equivalent basis with annualized taxable equivalent adjustments based on the applicable 21% federal income tax rate for the three months ended September 30, 2018 and 35% federal income tax rate for the three months ended September 30, 2017. The adjustment to interest income was $0.2 million and $0.6 million for the three months ended September 30, 2018 and 2017, respectively.
 

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, October 26, 2018. Hilltop Co-CEOs Jeremy B. Ford and Alan B. White and other key management members will review third quarter 2018 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. 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 September 30, 2018, Hilltop employed approximately 5,300 people and operated approximately 450 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 plans, objectives, strategies, expectations, intentions, expected tax impacts, strategic acquisitions 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. For a discussion of certain factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed 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.
Investor Relations
Isabell Novakov, 214-252-4029
[email protected]