Hilltop Holdings Inc.

10/24/2024 | Press release | Distributed by Public on 10/24/2024 14:31

Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2024 Form 8 K

Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2024

DALLAS - (BUSINESS WIRE) October 24, 2024 - Hilltop Holdings Inc. (NYSE: HTH) ("Hilltop") today announced financial results for the third quarter of 2024. Hilltop produced income to common stockholders of $29.7 million, or $0.46 per diluted share, for the third quarter of 2024, compared to $37.0 million, or $0.57 per diluted share, for the third quarter of 2023. Hilltop's financial results for the third quarter of 2024, compared with the same period in 2023, included a decline in net interest income, partially offset by changes in the provision for credit losses within the banking segment, an increase in net revenues in the structured finance and fixed income services business lines, a decline in net revenues in the wealth management business line and higher noninterest expenses within the broker-dealer segment, while the mortgage origination segment had declines in both noninterest income and expense.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per common share payable on November 22, 2024, to all common stockholders of record as of the close of business on November 8, 2024.

The extent of the impacts of uncertain economic conditions on our financial performance for the remainder of 2024 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, and international armed conflicts and their impact on supply chains.

Jeremy B. Ford, President and CEO of Hilltop, said, "Hilltop continues to demonstrate operational strength despite challenging mortgage conditions and the transitioning interest rate environment. During the quarter, PlainsCapital Bank and HilltopSecurities both increased profitability on a sequential basis, while PrimeLending's results were impacted by lower origination volume and a negative mortgage servicing rights asset fair value mark to market adjustment. As we enter the anticipated rate cutting cycle, we are focused on strategically lowering funding costs, managing asset yields and optimizing total earning assets. We will continue to execute on our long-term strategy of serving our customers, compounding stockholder value and prudently stewarding our capital.­­­"

Third Quarter 2024 Highlights for Hilltop:

● The reversal of credit losses was $1.3 million during the third quarter of 2024, compared to a provision for credit losses of $10.9 million in the second quarter of 2024 and a reversal of credit losses of $40 thousand in the third quarter of 2023;
o The reversal of credit losses during the third quarter of 2024 was primarily driven by net charge-offs and loan portfolio changes, including a change in the macroeconomic outlook scenario utilized, 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 third quarter of 2024, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was $79.9 million, compared to $88.7 million in the third quarter of 2023, a 9.9% decrease;
o Mortgage loan origination production volume was $2.3 billion during the third quarter of 2024, compared to $2.2 billion in the third quarter of 2023;
o Net gains from mortgage loans sold to third parties decreased to 224 basis points during the third quarter of 2024, compared to 233 basis points in the second quarter of 2024.
● Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for the third quarter of 2024 were 0.84% and 5.51%, respectively, compared to 0.94% and 7.11%, respectively, for the third quarter of 2023;
● Hilltop's book value per common share increased to $33.51 at September 30, 2024, compared to $32.86 at June 30, 2024;
● Hilltop's total assets were $15.9 billion and $15.6 billion at September 30, 2024 and June 30, 2024, respectively;
● Loans1, net of allowance for credit losses, were $7.5 billion and $7.7 billion at September 30, 2024 and June 30, 2024, respectively;
● Non-accrual loans were $91.2 million, or 1.02% of total loans, at September 30, 2024, compared to $105.7 million, or 1.12% of total loans, at June 30, 2024;
● Loans held for sale decreased by 26.2% from June 30, 2024 to $0.9 billion at September 30, 2024;
● Total deposits were $10.8 billion and $10.4 billion at September 30, 2024 and June 30, 2024, respectively;
o Total estimated uninsured deposits were $5.3 billion, or approximately 49% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $312.3 million, were $5.0 billion, or approximately 46% of total deposits, at September 30, 2024.
● Hilltop maintained strong capital levels2 with a Tier 1 Leverage Ratio3 of 12.95% and a Common Equity Tier 1 Capital Ratio of 20.48% at September 30, 2024;
● Hilltop's consolidated net interest margin4 decreased to 2.84% for the third quarter of 2024, compared to 2.90% in the second quarter of 2024;
● For the third quarter of 2024, noninterest income was $200.4 million, compared to $196.8million in the third quarter of 2023, a 1.8% increase;
● For third quarter of 2024, noninterest expense was $264.3 million, compared to $260.0 million in the third quarter of 2023, a 1.7% increase; and
● Hilltop's effective tax rate was 22.5% during the third quarter of 2024, compared to 25.2% during the same period in 2023.
o The effective tax rate for the third quarter of 2024 was higher than the applicable statutory rate primarily due to the impact of nondeductible expenses, nondeductible compensation expense and other permanent adjustments, partially offset by the discrete impact of restricted stock vesting during the quarter and investments in tax-exempt instruments.

1 "Loans" reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $340.4 million and $348.3 million at September 30, 2024 and June 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.

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)

2024

2024

2024

2023

2023

Cash and due from banks

$

1,961,627

$

798,300

$

1,710,066

$

1,858,700

$

1,513,747

Federal funds sold

3,650

5,650

650

650

3,650

Assets segregated for regulatory purposes

55,628

51,046

70,717

57,395

47,491

Securities purchased under agreements to resell

81,766

111,914

91,608

80,011

123,719

Securities:

Trading, at fair value

540,836

721,384

657,700

515,991

578,901

Available for sale, at fair value, net (1)

1,405,700

1,433,107

1,480,555

1,507,595

1,456,238

Held to maturity, at amortized cost, net (1)

754,824

777,456

790,550

812,677

825,079

Equity, at fair value

287

254

315

321

264

2,701,647

2,932,201

2,929,120

2,836,584

2,860,482

Loans held for sale

933,724

1,264,437

842,324

943,846

1,058,806

Loans held for investment, net of unearned income

7,979,630

8,173,520

8,062,693

8,079,745

8,204,052

Allowance for credit losses

(110,918)

(115,082)

(104,231)

(111,413)

(110,822)

Loans held for investment, net

7,868,712

8,058,438

7,958,462

7,968,332

8,093,230

Broker-dealer and clearing organization receivables

1,220,784

1,297,175

1,473,561

1,573,931

1,460,352

Premises and equipment, net

157,803

161,746

165,557

168,856

172,097

Operating lease right-of-use assets

92,041

93,994

95,343

88,580

93,057

Mortgage servicing assets

45,742

52,902

95,591

96,662

104,951

Other assets

528,839

517,811

501,244

517,545

588,751

Goodwill

267,447

267,447

267,447

267,447

267,447

Other intangible assets, net

6,995

7,429

7,943

8,457

9,078

Total assets

$

15,926,405

$

15,620,490

$

16,209,633

$

16,466,996

$

16,396,858

Deposits:

Noninterest-bearing

$

2,831,539

$

2,845,441

$

3,028,543

$

3,007,101

$

3,200,247

Interest-bearing

7,959,908

7,528,415

7,855,553

8,056,091

7,902,850

Total deposits

10,791,447

10,373,856

10,884,096

11,063,192

11,103,097

Broker-dealer and clearing organization payables

1,110,373

1,285,226

1,436,462

1,430,734

1,368,064

Short-term borrowings

914,645

897,613

892,574

900,038

882,999

Securities sold, not yet purchased, at fair value

47,773

75,546

60,562

34,872

51,527

Notes payable

347,533

347,402

347,273

347,145

347,020

Operating lease liabilities

110,799

113,096

114,518

109,002

114,334

Other liabilities

397,976

365,140

314,718

431,684

422,955

Total liabilities

13,720,546

13,457,879

14,050,203

14,316,667

14,289,996

Common stock

650

650

653

652

652

Additional paid-in capital

1,050,497

1,047,523

1,049,831

1,054,662

1,052,867

Accumulated other comprehensive loss

(98,168)

(119,171)

(119,606)

(121,505)

(145,083)

Retained earnings

1,224,117

1,205,467

1,201,013

1,189,222

1,171,250

Deferred compensation employee stock trust, net

-

1

115

228

340

Employee stock trust

-

(1)

(142)

(292)

(446)

Total Hilltop stockholders' equity

2,177,096

2,134,469

2,131,864

2,122,967

2,079,580

Noncontrolling interests

28,763

28,142

27,566

27,362

27,282

Total stockholders' equity

2,205,859

2,162,611

2,159,430

2,150,329

2,106,862

Total liabilities & stockholders' equity

$

15,926,405

$

15,620,490

$

16,209,633

$

16,466,996

$

16,396,858

(1) At September 30, 2024, the amortized cost of the available for sale securities portfolio was $1,489,070, while the fair value of the held to maturity securities portfolio was $690,846.

Three Months Ended

Consolidated Income Statements

September 30,

June 30,

March 31,

December 31,

September 30,

(in 000's, except per share data)

2024

2024

2024

2023

2023

Interest income:

Loans, including fees

$

139,821

$

138,627

$

134,331

$

138,096

$

142,402

Securities borrowed

19,426

20,306

20,561

18,659

17,683

Securities:

Taxable

26,265

25,289

26,241

28,763

27,166

Tax-exempt

2,438

2,389

2,415

2,545

2,464

Other

23,092

20,532

26,066

28,704

27,040

Total interest income

211,042

207,143

209,614

216,767

216,755

Interest expense:

Deposits

70,641

68,095

69,144

68,339

64,290

Securities loaned

18,499

18,669

19,039

17,247

16,169

Short-term borrowings

10,878

10,676

11,588

13,495

14,212

Notes payable

3,555

3,604

3,590

3,596

4,026

Other

2,426

2,449

2,632

2,864

2,408

Total interest expense

105,999

103,493

105,993

105,541

101,105

Net interest income

105,043

103,650

103,621

111,226

115,650

Provision for (reversal of) credit losses

(1,270)

10,934

(2,871)

1,265

(40)

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

106,313

92,716

106,492

109,961

115,690

Noninterest income:

Net gains from sale of loans and other mortgage production income

47,816

58,455

40,197

36,387

47,262

Mortgage loan origination fees

32,119

34,398

26,438

32,844

41,478

Securities commissions and fees

30,434

29,510

30,373

27,380

22,864

Investment and securities advisory fees and commissions

42,220

32,992

30,226

35,780

39,662

Other

47,854

37,950

54,384

46,587

45,583

Total noninterest income

200,443

193,305

181,618

178,978

196,849

Noninterest expense:

Employees' compensation and benefits

177,987

169,998

165,830

160,390

173,195

Occupancy and equipment, net

22,317

21,297

21,912

21,524

21,912

Professional services

11,645

10,270

9,731

13,170

12,639

Other

52,363

54,899

52,550

55,761

52,271

Total noninterest expense

264,312

256,464

250,023

250,845

260,017

Income before income taxes

42,444

29,557

38,087

38,094

52,522

Income tax expense

9,539

6,658

8,565

7,132

13,211

Net income

32,905

22,899

29,522

30,962

39,311

Less: Net income attributable to noncontrolling interest

3,212

2,566

1,854

2,291

2,269

Income attributable to Hilltop

$

29,693

$

20,333

$

27,668

$

28,671

$

37,042

Earnings per common share:

Basic

$

0.46

$

0.31

$

0.42

$

0.44

$

0.57

Diluted

$

0.46

$

0.31

$

0.42

$

0.44

$

0.57

Cash dividends declared per common share

$

0.17

$

0.17

$

0.17

$

0.16

$

0.16

Weighted average shares outstanding:

Basic

64,928

65,085

65,200

65,136

65,106

Diluted

64,946

65,086

65,214

65,138

65,108

Three Months Ended September 30, 2024

Segment Results

Mortgage

All Other and

Hilltop

(in 000's)

Banking

Broker-Dealer

Origination

Corporate

Eliminations

Consolidated

Net interest income (expense)

$

93,536

$

12,409

$

(4,417)

$

(3,303)

$

6,818

$

105,043

Provision for (reversal of) credit losses

(1,440)

170

-

-

-

(1,270)

Noninterest income

10,726

111,849

79,922

4,962

(7,016)

200,443

Noninterest expense

57,557

107,094

84,223

15,631

(193)

264,312

Income (loss) before taxes

$

48,145

$

16,994

$

(8,718)

$

(13,972)

$

(5)

$

42,444

Nine Months Ended September 30, 2024

Segment Results

Mortgage

All Other and

Hilltop

(in 000's)

Banking

Broker-Dealer

Origination

Corporate

Eliminations

Consolidated

Net interest income (expense)

$

277,600

$

36,896

$

(13,240)

$

(9,560)

$

20,618

$

312,314

Provision for (reversal of) credit losses

6,657

136

-

-

-

6,793

Noninterest income

31,884

308,480

239,489

16,747

(21,234)

575,366

Noninterest expense

171,527

302,102

250,067

47,731

(628)

770,799

Income (loss) before taxes

$

131,300

$

43,138

$

(23,818)

$

(40,544)

$

12

$

110,088

Three Months Ended

​

September 30,

June 30,

March 31,

December 31,

September 30,

Selected Financial Data

2024

2024

2024

2023

2023

Hilltop Consolidated:

​

​

​

​

​

​

​

​

​

​

​

​

​

Return on average stockholders' equity

5.51%

​

3.84%

​

​

5.23%

​

​

5.46%

​

​

7.11%

Return on average assets

0.84%

0.59%

​

​

0.74%

​

​

0.75%

​

​

0.94%

Net interest margin (1)

2.84%

2.90%

​

​

2.85%

​

​

2.96%

​

​

3.02%

Net interest margin (taxable equivalent) (2):

As reported

2.85%

2.92%

​

​

2.87%

​

​

2.98%

​

​

3.04%

Impact of purchase accounting

2 bps

6 bps

​

​

4 bps

​

​

4 bps

​

​

7 bps

Book value per common share ($)

33.51

32.86

​

​

32.66

​

​

32.58

​

​

31.91

Shares outstanding, end of period (000's)

64,960

64,953

​

​

65,267

​

​

65,153

​

​

65,170

Dividend payout ratio (3)

37.17%

54.42%

​

​

40.06%

​

​

36.35%

​

​

28.12%

Banking Segment:

Net interest margin (1)

3.05%

3.10%

​

​

3.00%

​

​

2.94%

​

​

3.08%

Net interest margin (taxable equivalent) (2):

As reported

3.06%

3.10%

​

​

3.00%

​

​

2.95%

​

​

3.09%

Impact of purchase accounting

3 bps

7 bps

​

​

5 bps

​

​

5 bps

​

​

8 bps

Accretion of discount on loans ($000's)

737

1,945

​

​

1,299

​

​

1,202

​

​

2,226

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

(2,894)

(83)

​

​

(4,311)

​

​

(674)

​

​

1,556

Return on average assets

1.14%

0.81%

​

​

1.20%

​

​

1.12%

​

​

1.20%

Fee income ratio

10.3%

9.1%

​

​

11.5%

​

​

11.2%

​

​

10.5%

Efficiency ratio

55.2%

57.0%

​

​

54.1%

​

​

53.2%

​

​

51.4%

Employees' compensation and benefits ($000's)

31,920

33,352

​

​

32,389

​

​

29,420

​

​

30,641

Broker-Dealer Segment:

Net revenue ($000's) (4)

124,258

104,271

​

​

116,847

​

​

119,989

​

​

118,703

Employees' compensation and benefits ($000's)

75,912

66,181

​

​

69,457

​

​

68,746

​

​

69,930

Variable compensation expense ($000's)

42,569

32,734

​

​

35,274

​

​

39,435

​

​

39,929

Compensation as a % of net revenue

61.1%

63.5%

​

​

59.4%

​

​

57.3%

​

​

58.9%

Pre-tax margin (5)

13.7%

6.9%

​

​

16.2%

​

​

16.8%

​

​

18.2%

Mortgage Origination Segment:

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

Home purchases

2,096,009

2,205,157

​

​

1,548,941

​

​

1,698,009

​

​

2,091,444

Refinancings

211,454

174,141

​

​

127,545

​

​

117,018

​

​

152,257

Total mortgage loan originations - volume

2,307,463

2,379,298

​

​

1,676,486

​

​

1,815,027

​

​

2,243,701

Mortgage loan sales - volume ($000's)

2,569,678

1,838,841

​

​

1,749,857

​

​

1,874,001

​

​

2,395,357

Net gains from mortgage loan sales (basis points):

Loans sold to third parties

224

233

​

​

221

​

​

189

​

​

199

Impact of loans retained by banking segment

0

(5)

​

​

(5)

​

​

0

​

​

(1)

As reported

224

228

​

​

216

​

​

189

​

​

198

Mortgage servicing rights asset ($000's) (6)

45,742

52,902

​

​

95,591

​

​

96,662

​

​

104,951

Employees' compensation and benefits ($000's)

60,573

61,624

​

​

52,694

​

​

53,766

​

​

64,016

Variable compensation expense ($000's)

33,862

34,886

​

​

22,188

​

​

24,085

​

​

33,070

(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) was $0.6 million for each of the periods presented and for the banking segment were $0.2 million, $0.1 million, $0.1 million, $0.2 million and $0.2 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.

​

September 30,

June 30,

March 31,

December 31,

September 30,

Capital Ratios

2024

2024

2024

2023

2023

Tier 1 capital (to average assets):

PlainsCapital

10.34%

11.36%

11.00%

10.55%

10.62%

Hilltop

12.95%

12.87%

12.49%

12.23%

11.92%

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

​

​

​

​

​

​

PlainsCapital

14.94%

15.58%

15.87%

15.44%

15.31%

Hilltop

20.48%

19.45%

19.73%

19.32%

18.60%

Tier 1 capital (to risk-weighted assets):

PlainsCapital

14.94%

15.58%

15.87%

15.44%

15.31%

Hilltop

20.48%

19.45%

19.73%

19.32%

18.60%

Total capital (to risk-weighted assets):

PlainsCapital

16.13%

16.77%

17.06%

16.58%

16.45%

Hilltop

23.68%

22.57%

22.79%

22.34%

21.54%

​

September 30,

June 30,

March 31,

December 31,

September 30,

Non-Performing Assets Portfolio Data

2024

2024

2024

2023

2023

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

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate:

​

​

​

​

​

​

​

​

​

Non-owner occupied

$

8,042

$

6,894

$

34,661

$

36,440

$

2,375

Owner occupied

2,410

6,437

4,846

5,098

4,964

Commercial and industrial

66,929

80,755

​

12,165

​

9,502

​

10,190

Construction and land development

2,682

485

​

698

​

3,480

​

760

1-4 family residential

11,123

11,092

​

12,363

​

13,801

​

13,202

Consumer

-

1

​

3

​

6

​

7

Broker-dealer

-

-

​

-

​

-

​

-

Non-accrual loans ($000's)

$

91,186

$

105,664

$

64,736

$

68,327

$

31,498

Non-accrual loans as a % of total loans

1.02%

1.12%

​

0.73%

​

0.76%

​

0.34%

​

Other real estate owned ($000's)

2,744

2,973

​

5,254

​

5,095

​

5,386

​

Other repossessed assets ($000's)

413

464

​

472

​

-

​

-

​

Non-performing assets ($000's)

94,343

109,101

​

70,462

​

73,422

​

36,884

​

Non-performing assets as a % of total assets

0.59%

0.70%

​

0.43%

​

0.45%

​

0.22%

​

Loans past due 90 days or more and still accruing ($000's) (1)

140,763

122,451

​

112,799

​

115,090

​

106,346

(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 September 30,

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

$

990,902

$

14,645

5.91

%

$

1,075,518

$

15,649

5.82

%

Loans held for investment, gross (2)

8,024,771

125,176

6.19

%

7,972,604

126,753

6.31

%

Investment securities - taxable

2,477,014

26,264

4.24

%

2,690,977

27,166

4.04

%

Investment securities - non-taxable (3)

323,479

3,020

3.73

%

315,294

3,069

3.89

%

Federal funds sold and securities purchased under agreements to resell

97,686

1,845

7.49

%

142,324

2,313

6.45

%

Interest-bearing deposits in other financial institutions

1,373,051

17,800

5.14

%

1,550,991

20,320

5.20

%

Securities borrowed

1,260,420

19,426

6.03

%

1,371,625

17,683

5.04

%

Other

137,105

3,447

9.97

%

69,827

4,407

25.04

%

Interest-earning assets, gross (3)

14,684,428

211,623

5.72

%

15,189,160

217,360

5.68

%

Allowance for credit losses

(115,113)

(110,398)

Interest-earning assets, net

14,569,315

15,078,762

Noninterest-earning assets

1,070,833

1,448,834

Total assets

$

15,640,148

$

16,527,596

Liabilities and Stockholders' Equity

Interest-bearing liabilities

Interest-bearing deposits

$

7,744,588

$

70,641

3.62

%

$

7,893,384

$

64,290

3.23

%

Securities loaned

1,247,392

18,499

5.88

%

1,303,883

16,169

4.92

%

Notes payable and other borrowings

1,333,671

16,859

5.02

%

1,527,371

20,646

5.36

%

Total interest-bearing liabilities

10,325,651

105,999

4.07

%

10,724,638

101,105

3.74

%

Noninterest-bearing liabilities

Noninterest-bearing deposits

2,737,942

3,347,752

Other liabilities

405,768

362,133

Total liabilities

13,469,361

14,434,523

Stockholders' equity

2,143,252

2,066,564

Noncontrolling interest

27,535

26,509

Total liabilities and stockholders' equity

$

15,640,148

$

16,527,596

Net interest income (3)

$

105,624

$

116,255

Net interest spread (3)

1.65

%

1.94

%

Net interest margin (3)

2.85

%

3.04

%

(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 $0.6 million and $0.6 million for the three months ended September 30, 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, October 25, 2024. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review third quarter 2024 financial results. Interested parties can access the conference call by dialing 800-267-6316 (North America) or 203-518-9856 (International) and then using the conference ID HH3Q24. 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 September 30, 2024, Hilltop employed approximately 3,650 people and operated approximately 310 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) disruptions to the economy and financial services industry, and (vii) 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. 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.

Source: Hilltop Holdings Inc.