Hilltop Holdings Inc. Announces Financial Results for First Quarter 2022

Rhea-AI Summary

Hilltop Holdings Inc. (NYSE: HTH) reported a net income of $22.3 million, or $0.28 per diluted share, for Q1 2022, down from $120.3 million, or $1.46 per share, in Q1 2021. The decline was driven by reduced net gains from mortgage origination and broker-dealer segments amid rising interest rates. Total mortgage origination volume fell to $3.8 billion from $6.2 billion year-over-year. Despite these challenges, Hilltop's total assets remained stable at $18.4 billion, and the company declared a cash dividend of $0.15 per share.

Positive

• Total assets of $18.4 billion, maintained stability.
• Board declared a quarterly cash dividend of $0.15 per share.
• Net interest margin improved to 2.36% from previous quarters.

Negative

• Net income dropped significantly to $22.3 million from $120.3 million.
• Mortgage origination income decreased by 53.9% year-over-year.
• Noninterest income fell by 48.2% compared to Q1 2021.
• Provision for credit losses turned positive at $0.1 million, contrasting with a reversal of $18.6 million.

DALLAS--(BUSINESS WIRE)-- Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the first quarter of 2022. Hilltop produced income to common stockholders of $22.3 million, or $0.28 per diluted share, for the first quarter of 2022, compared to $120.3 million, or $1.46 per diluted share, for the first quarter of 2021. Hilltop’s financial results for the first quarter of 2022 included decreases in year-over-year mortgage origination segment net gains from sales of loans and other mortgage production income as well as declines in net revenues within the broker-dealer segment’s structured finance and fixed income services business lines.

Rising interest rates and inflationary pressures materially impacted our financial results during the first quarter of 2022. Additional headwinds during 2022 are expected to include tight housing inventories on mortgage volumes, a return to normalized credit losses and declining deposit balances. The COVID-19 pandemic may also continue to adversely impact financial markets and overall economic conditions. The extent of the impact of these expected headwinds and the pandemic on our operational and financial performance for the remainder of 2022 remains uncertain.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.15 per common share payable on May 27, 2022, to all common stockholders of record as of the close of business on May 13, 2022. During the three months ended March 31, 2022, there were no stock repurchases.

Jeremy B. Ford, President and CEO of Hilltop, said “Our results in the first quarter were driven primarily by the strength and stability of PlainsCapital Bank, which generated growth in its core loan portfolio while experiencing improvement in its asset quality. PrimeLending and HilltopSecurities, both primarily fee-based businesses, were pressured by the sharp rise in interest rates, lower housing inventories and lower trading volumes. Additionally, total noninterest expenses at Hilltop declined during the period as our team remains focused on expense management. Overall, we are adapting to the new mortgage and interest rate environments and believe we have the team and business model in place to drive improvement.”

First Quarter 2022 Highlights for Hilltop:

• The provision for credit losses was $0.1 million during the first quarter of 2022, compared to a reversal of credit losses of $18.6 million in the fourth quarter of 2021;
  • The provision for credit losses during the first quarter of 2022 primarily reflected a slower U.S. economic outlook since the prior quarter, significantly offset by decreases in specific reserves and positive risk rating grade migration.
• For the first quarter of 2022, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within our mortgage origination segment was $143.0 million, compared to $310.2 million in the first quarter of 2021, a 53.9% decrease;
  • Mortgage loan origination production volume was $3.8 billion during the first quarter of 2022, compared to $6.2 billion in the first quarter of 2021;
  • Net gains from mortgage loans sold to third parties decreased to 321 basis points during the first quarter of 2022, compared to 362 basis points in the fourth quarter of 2021.
• Hilltop’s consolidated annualized return on average assets and return on average equity for the first quarter of 2022 were 0.53% and 3.60%, respectively, compared to 2.90% and 20.58%, respectively, for the first quarter of 2021;
• Hilltop’s book value per common share decreased to $31.02 at March 31, 2022, compared to $31.95 at December 31, 2021;
  • Decline in book value per common share during the first quarter of 2022 impacted by the significant increase of approximately $120 million in pre-tax net unrealized losses within our available for sale investment portfolio related to increases in market interest rates since purchase;
  • Certain agency-issued securities were transferred from the available-for-sale to held-to-maturity portfolio on March 31, 2022 with pre-tax unrealized losses of approximately $74 million as of the date of transfer.
• Hilltop’s total assets were $18.4 billion and $18.7 billion at March 31, 2022 and December 31, 2021, respectively;
• Loans¹, net of allowance for credit losses, increased to $7.2 billion at March 31, 2022 compared to $7.1 billion at December 31, 2021;
• Non-performing loans were $44.3 million, or 0.47% of total loans, at March 31, 2022, compared to $51.1 million, or 0.52% of total loans, at December 31, 2021;
• Loans held for sale decreased by 12.5% from December 31, 2021 to $1.6 billion at March 31, 2022;
• Total deposits were $12.7 billion and $12.8 billion at March 31, 2022 and December 31, 2021, respectively;
• Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 12.46% and a Common Equity Tier 1 Capital Ratio of 21.27% at March 31, 2022;
• Hilltop’s consolidated net interest margin⁴ decreased to 2.36% for the first quarter of 2022, compared to 2.44% in the fourth quarter of 2021;
  • Includes previously deferred interest income of $1.6 million during the first quarter of 2022 related to PPP loan-related origination fees, compared to $7.5 million in the first quarter of 2021.
• For the first quarter of 2022, noninterest income was $216.4 million, compared to $417.6 million in the first quarter of 2021, a 48.2% decrease;
• For the first quarter 2022, noninterest expense was $286.4 million, compared to $366.7 million in the first quarter of 2021, a 21.9% decrease; and
• Hilltop’s effective tax rate was 19.4% during the first quarter of 2022, compared to 23.4% during the same period in 2021.
  • The effective tax rate for the first quarter of 2022 was lower than the applicable statutory rate primarily due to the discrete impact of restricted stock vesting during the quarter.

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1		“Loans” reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $506.2 million and $733.0 million at March 31, 2022 and December 31, 2021, 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.
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		March 31,				December 31,				September 30,				June 30,				March 31,
(in 000's)		2022				2021				2021				2021				2021
Cash and due from banks		$	2,886,812			$	2,823,138			$	2,463,111			$	1,372,818			$	1,564,489
Federal funds sold			383				385				406				387				396
Assets segregated for regulatory purposes			128,408				221,740				269,506				207,284				273,393
Securities purchased under agreements to resell			256,991				118,262				155,908				202,638				106,342
Securities:
Trading, at fair value			471,763				647,998				609,813				682,483				528,712
Available for sale, at fair value, net			1,462,340				2,130,568				1,994,183				1,817,807				1,715,406
Held to maturity, at amortized cost, net			953,107				267,684				277,419				288,776				300,088
Equity, at fair value			225				250				221				193				189
			2,887,435				3,046,500				2,881,636				2,789,259				2,544,395
Loans held for sale			1,643,994				1,878,190				2,108,878				2,885,458				2,538,986
Loans held for investment, net of unearned income			7,797,903				7,879,904				7,552,926				7,645,227				7,810,657
Allowance for credit losses			(91,185	)			(91,352	)			(109,512	)			(115,269	)			(144,499	)
Loans held for investment, net			7,706,718				7,788,552				7,443,414				7,529,958				7,666,158
Broker-dealer and clearing organization receivables			1,610,352				1,672,946				1,419,652				1,403,447				1,596,817
Premises and equipment, net			198,906				204,438				210,026				212,402				213,304
Operating lease right-of-use assets			108,180				112,328				115,942				115,698				101,055
Mortgage servicing assets			100,475				86,990				110,931				124,497				142,125
Other assets			546,622				452,880				526,339				535,536				648,895
Goodwill			267,447				267,447				267,447				267,447				267,447
Other intangible assets, net			14,233				15,284				16,455				17,705				19,035
Total assets		$	18,356,956			$	18,689,080			$	17,989,651			$	17,664,534			$	17,682,837
Deposits:
Noninterest-bearing		$	4,694,592			$	4,577,183			$	4,433,148			$	4,231,082			$	4,031,181
Interest-bearing			7,972,110				8,240,894				7,699,014				7,502,703				7,701,598
Total deposits			12,666,702				12,818,077				12,132,162				11,733,785				11,732,779
Broker-dealer and clearing organization payables			1,397,836				1,477,300				1,496,923				1,439,620				1,546,227
Short-term borrowings			835,054				859,444				747,040				915,919				676,652
Securities sold, not yet purchased, at fair value			97,629				96,586				113,064				132,950				97,055
Notes payable			395,479				387,904				395,804				396,653				401,713
Operating lease liabilities			125,919				130,960				134,296				134,019				120,339
Junior subordinated debentures			—				—				—				67,012				67,012
Other liabilities			347,742				369,606				468,020				348,200				595,045
Total liabilities			15,866,361				16,139,877				15,487,309				15,168,158				15,236,822
Common stock			794				790				790				812				823
Additional paid-in capital			1,275,649				1,274,446				1,270,272				1,302,439				1,319,518
Accumulated other comprehensive income (loss)			(80,565	)			(10,219	)			367				7,093				3,486
Retained earnings			1,267,415				1,257,014				1,204,307				1,159,304				1,094,727
Deferred compensation employee stock trust, net			744				752				751				754				752
Employee stock trust			(104	)			(115	)			(116	)			(121	)			(121	)
Total Hilltop stockholders' equity			2,463,933				2,522,668				2,476,371				2,470,281				2,419,185
Noncontrolling interests			26,662				26,535				25,971				26,095				26,830
Total stockholders' equity			2,490,595				2,549,203				2,502,342				2,496,376				2,446,015
Total liabilities & stockholders' equity		$	18,356,956			$	18,689,080			$	17,989,651			$	17,664,534			$	17,682,837

		Three Months Ended
Consolidated Income Statements		March 31,			December 31,				September 30,				June 30,				March 31,
(in 000's, except per share data)		2022			2021				2021				2021				2021
Interest income:
Loans, including fees		$	90,408		$	96,104			$	99,769			$	104,162			$	104,277
Securities borrowed			8,817			8,524				8,585				15,586				28,972
Securities:
Taxable			15,581			13,916				12,341				11,125				10,251
Tax-exempt			2,419			2,639				2,687				2,338				2,102
Other			2,312			1,872				1,796				1,607				1,321
Total interest income			119,537			123,055				125,178				134,818				146,923
Interest expense:
Deposits			4,193			4,404				5,303				6,176				7,741
Securities loaned			7,472			6,624				6,519				12,345				25,486
Short-term borrowings			2,045			2,279				2,400				2,374				2,013
Notes payable			4,437			5,871				5,465				5,253				4,797
Junior subordinated debentures			—			—				419				577				562
Other			1,399			(417	)			(18	)			177				642
Total interest expense			19,546			18,761				20,088				26,902				41,241
Net interest income			99,991			104,294				105,090				107,916				105,682
Provision for (reversal of) credit losses			115			(18,565	)			(5,819	)			(28,720	)			(5,109	)
Net interest income after provision for (reversal of) credit losses			99,876			122,859				110,909				136,636				110,791
Noninterest income:
Net gains from sale of loans and other mortgage production income			110,894			156,103				203,152				199,625				267,080
Mortgage loan origination fees			32,062			35,930				38,780				42,146				43,155
Securities commissions and fees			37,146			32,801				34,412				38,300				38,314
Investment and securities advisory fees and commissions			29,705			42,834				49,646				32,268				27,695
Other			6,621			17,178				41,955				27,560				41,341
Total noninterest income			216,428			284,846				367,945				339,899				417,585
Noninterest expense:
Employees' compensation and benefits			200,019			229,717				258,679				248,486				270,353
Occupancy and equipment, net			24,766			25,741				25,428				25,004				24,429
Professional services			10,063			9,904				14,542				16,239				13,585
Other			51,502			56,832				56,525				53,639				58,295
Total noninterest expense			286,350			322,194				355,174				343,368				366,662
Income before income taxes			29,954			85,511				123,680				133,167				161,714
Income tax expense			5,815			20,715				28,257				31,234				37,770
Net income			24,139			64,796				95,423				101,933				123,944
Less: Net income attributable to noncontrolling interest			1,889			2,611				2,517				2,873				3,599
Income attributable to Hilltop		$	22,250		$	62,185			$	92,906			$	99,060			$	120,345
Earnings per common share:
Basic		$	0.28		$	0.79			$	1.16			$	1.21			$	1.46
Diluted		$	0.28		$	0.78			$	1.15			$	1.21			$	1.46
Cash dividends declared per common share		$	0.15		$	0.12			$	0.12			$	0.12			$	0.12
Weighted average shares outstanding:
Basic			79,114			78,933				80,109				81,663				82,169
Diluted			79,356			79,427				80,542				82,199				82,657

		Three Months Ended March 31, 2022
Segment Results										Mortgage								All Other and				Hilltop
(in 000's)		Banking				Broker-Dealer				Origination				Corporate				Eliminations				Consolidated
Net interest income (expense)		$	92,070			$	11,518			$	(1,835	)		$	(3,389	)		$	1,627			$	99,991
Provision for (reversal of) credit losses			(50	)			165				—				—				—				115
Noninterest income			12,771				60,691				143,195				1,766				(1,995	)			216,428
Noninterest expense			58,430				80,647				134,859				12,793				(379	)			286,350
Income (loss) before taxes		$	46,461			$	(8,603	)		$	6,501			$	(14,416	)		$	11			$	29,954

		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
Selected Financial Data		2022				2021				2021				2021				2021
Hilltop Consolidated:
Return on average stockholders' equity			3.60	%			9.93	%			14.96	%			16.42	%			20.58	%
Return on average assets			0.53	%			1.41	%			2.13	%			2.29	%			2.90	%
Net interest margin (1)			2.36	%			2.44	%			2.53	%			2.62	%			2.69	%
Net interest margin (taxable equivalent) (2):
As reported			2.37	%			2.45	%			2.54	%			2.63	%			2.69	%
Impact of purchase accounting			7 bps				12 bps				9 bps				16 bps				13 bps
Book value per common share ($)			31.02				31.95				31.36				30.44				29.41
Shares outstanding, end of period (000's)			79,439				78,965				78,959				81,153				82,261
Dividend payout ratio (3)			53.57	%			15.19	%			10.34	%			9.92	%			8.19	%
Banking Segment:
Net interest margin (1)			2.65	%			2.81	%			2.99	%			3.19	%			3.30	%
Net interest margin (taxable equivalent) (2):
As reported			2.65	%			2.82	%			3.00	%			3.20	%			3.31	%
Impact of purchase accounting			8 bps				15 bps				11 bps				20 bps				17 bps
Accretion of discount on loans ($000's)			2,510				4,716				3,221				6,001				4,851
Net recoveries (charge-offs) ($000's)			(282	)			405				62				(510	)			564
Return on average assets			0.98	%			1.44	%			1.36	%			1.91	%			1.48	%
Fee income ratio			12.2	%			10.8	%			10.5	%			8.9	%			9.8	%
Efficiency ratio			55.7	%			54.2	%			48.8	%			49.7	%			48.4	%
Employees' compensation and benefits ($000's)			33,517				34,415				31,500				33,369				30,992
Broker-Dealer Segment:
Net revenue ($000's) (4)			72,209				94,569				126,570				94,145				109,137
Employees' compensation and benefits ($000's) (5)			55,825				65,301				82,429				62,289				66,157
Variable compensation expense ($000's)			26,625				35,939				53,505				34,409				37,412
Compensation as a % of net revenue (5)			77.3	%			69.1	%			65.1	%			66.2	%			60.6	%
Pre-tax margin (6)			(11.9	)%			1.8	%			13.8	%			7.3	%			16.2	%
Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases			2,753,031				3,559,137				3,948,420				4,018,922				2,902,710
Refinancings			1,011,452				1,430,369				1,646,208				1,881,121				3,281,395
Total mortgage loan originations - volume			3,764,483				4,989,506				5,594,628				5,900,043				6,184,105
Mortgage loan sales - volume ($000's)			3,868,596				4,988,538				6,195,559				5,524,226				6,350,837
Net gains from mortgage loan sales (basis points):
Loans sold to third parties			321				362				359				376				398
Impact of loans retained by banking segment			(9	)			(15	)			(13	)			(12	)			(10	)
As reported			312				347				346				364				388
Mortgage servicing rights asset ($000's) (7)			100,475				86,990				110,931				124,497				142,125
Employees' compensation and benefits ($000's)			102,748				121,758				134,814				145,401				166,248
Variable compensation expense ($000's)			56,243				73,208				88,153				97,081				115,486

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(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 $0.5 million, $0.5 million, $0.6 million, $0.4 million, and $0.2 million, respectively, for the periods presented and for the banking segment were $0.2 million, $0.2 million, $0.2 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)		Noted balances and ratios during all prior periods reflect certain reclassifications to conform to current period presentation.
(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.

		March 31,				December 31,				September 30,				June 30,				March 31,
Capital Ratios		2022				2021				2021				2021				2021
Tier 1 capital (to average assets):
PlainsCapital			9.74	%			10.20	%			10.02	%			10.22	%			10.50	%
Hilltop			12.46	%			12.58	%			12.64	%			12.87	%			13.01	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital			15.37	%			16.00	%			15.40	%			15.00	%			14.74	%
Hilltop			21.27	%			21.22	%			21.28	%			20.22	%			19.63	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital			15.37	%			16.00	%			15.40	%			15.00	%			14.74	%
Hilltop			21.27	%			21.22	%			21.28	%			20.82	%			20.22	%
Total capital (to risk-weighted assets):
PlainsCapital			16.18	%			16.77	%			16.32	%			15.95	%			15.64	%
Hilltop			23.85	%			23.75	%			24.00	%			23.48	%			22.96	%

		March 31,				December 31,				September 30,				June 30,				March 31,
Non-Performing Assets Portfolio Data		2022				2021				2021				2021				2021
Loans accounted for on a non-accrual basis ($000's) (1):
Commercial real estate			6,153				6,601				5,705				7,211				10,668
Commercial and industrial			18,486				22,478				29,808				33,033				36,144
Construction and land development			1				2				366				474				501
1-4 family residential			18,723				21,123				25,255				27,100				30,937
Consumer			21				23				24				26				26
Broker-dealer			—				—				—				—				—
			43,384				50,227				61,158				67,844				78,276
Troubled debt restructurings included in accruing loans held for investment ($000's)			890				922				1,038				1,139				1,584
Non-performing loans ($000's)			44,274				51,149				62,196				68,983				79,860
Non-performing loans as a % of total loans			0.47	%			0.52	%			0.64	%			0.66	%			0.77	%
Other real estate owned ($000's)			2,175				2,833				21,605				21,078				19,899
Other repossessed assets ($000's)			—				—				—				—				—
Non-performing assets ($000's)			46,449				53,982				83,801				90,061				99,759
Non-performing assets as a % of total assets			0.25	%			0.29	%			0.47	%			0.51	%			0.56	%
Loans past due 90 days or more and still accruing ($000's) (2):			87,489				60,775				175,734				245,828				265,230

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(1)		Loans accounted for on a non-accrual basis do not include COVID-19 related loan modifications through January 1, 2022. The Bank’s COVID-19 payment deferral programs since the second quarter of 2020 allowed for a deferral of principal and/or interest payments with such deferred principal payments due and payable on the maturity date of the existing loan. The Bank’s actions through 2021 included approval of COVID-19 related loan modifications, resulting in active loan modifications of approximately $4 million, $17 million, $76 million, and $130 million as of December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.
(2)		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 March 31,
		2022									2021
		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		$	1,467,998			$	11,966		3.26	%	$	2,573,085			$	16,233		2.52	%
Loans held for investment, gross (2)			7,839,047				78,442		4.06	%		7,645,883				88,044		4.62	%
Investment securities - taxable			2,768,849				15,581		2.25	%		2,267,709				10,233		1.80	%
Investment securities - non-taxable (3)			324,084				2,888		3.56	%		284,001				2,280		3.21	%
Federal funds sold and securities purchased under agreements to resell			157,313				136		0.35	%		93,525				—		0.00	%
Interest-bearing deposits in other financial institutions			3,116,369				1,427		0.19	%		1,565,879				582		0.15	%
Securities borrowed			1,455,166				8,817		2.42	%		1,452,704				28,972		7.98	%
Other			54,602				750		5.57	%		49,916				762		6.18	%
Interest-earning assets, gross (3)			17,183,428				120,007		2.83	%		15,932,702				147,106		3.70	%
Allowance for credit losses			(92,239	)								(149,397	)
Interest-earning assets, net			17,091,189									15,783,305
Noninterest-earning assets			1,401,584									1,559,039
Total assets		$	18,492,773								$	17,342,344
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits		$	8,201,824			$	4,193		0.21	%	$	7,626,575			$	7,741		0.41	%
Securities loaned			1,371,816				7,472		2.21	%		1,355,945				25,486		7.62	%
Notes payable and other borrowings			1,249,222				7,881		2.56	%		1,130,068				8,014		2.85	%
Total interest-bearing liabilities			10,822,862				19,546		0.73	%		10,112,588				41,241		1.65	%
Noninterest-bearing liabilities
Noninterest-bearing deposits			4,507,661									3,729,994
Other liabilities			631,790									1,101,972
Total liabilities			15,962,313									14,944,554
Stockholders’ equity			2,504,383									2,371,281
Noncontrolling interest			26,077									26,509
Total liabilities and stockholders' equity		$	18,492,773								$	17,342,344
Net interest income (3)						$	100,461								$	105,865
Net interest spread (3)									2.10	%								2.05	%
Net interest margin (3)									2.37	%								2.69	%

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(1)		Information presented on a consolidated basis.
(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 $0.5 million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, April 22, 2022. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review first quarter 2022 financial results. Interested parties can access the conference call by dialing 1-844-200-6205 (United States), 1-833-950-0062 (Canada) or 1-929-526-1599 (all other locations) and then using the access code 352794. 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 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 March 31, 2022, Hilltop employed approximately 4,800 people and operated approximately 400 locations in 47 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,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “probable,” “progressing,” “projects,” “seeks,” “should,” “target,” “view,” “well-tuned,” “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; (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) the COVID-19 pandemic and the response of governmental authorities to the pandemic and disruptions in global or national supply chains, which have had, and may continue to have, an adverse impact on the global economy and our business operations and performance; (vi) transitions away from the London Interbank Offered Rate; and (vii) risks associated with concentration in real estate related loans. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220421006002/en/

Investor Relations Contact:

Erik Yohe

214-525-4634

eyohe@hilltop-holdings.com

Source: Hilltop Holdings Inc.

FAQ

What were Hilltop Holdings' earnings for Q1 2022?

Hilltop Holdings reported earnings of $22.3 million, or $0.28 per diluted share, for Q1 2022.

How much did Hilltop's mortgage origination income decrease in Q1 2022?

Mortgage origination income decreased by 53.9% year-over-year, totaling $143.0 million in Q1 2022.

What is the current cash dividend for Hilltop Holdings?

Hilltop Holdings declared a quarterly cash dividend of $0.15 per common share.

How has Hilltop Holdings' net interest margin changed in Q1 2022?

Hilltop Holdings' net interest margin decreased to 2.36% in Q1 2022.