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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-31987 Hilltop Holdings Inc. (Exact name of registrant as specified in its charter) Maryland 84-1477939 (State or other jurisdiction of incorporation or (I.R.S. E ...

Financial Data and Key Metrics Changes - Hilltop Holdings Inc. reported net income of $42 million, or $0.65 per diluted share, with a return on average assets of 1.1% and return on average equity of 7.8% for Q1 2025 [6][22] - The tangible book value per share increased from year-end 2024 by $0.53 to $30 per share [21] - Net interest income for the first quarter was $105 million, reflecting a year-over-year increase of $1.5 million or 1.4% [29] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $40 million pretax income on $13 billion of average assets, with a return on average assets of 0.96% [8] - PrimeLending reported a pretax loss of $8 million, with origination volumes under pressure due to elevated interest rates [12][13] - Hilltop Securities experienced a 34% year-over-year increase in net revenues from Public Finance Services, while structured finance net revenues declined by $8 million [15][16] Market Data and Key Metrics Changes - Average total deposits at the bank decreased by approximately $89 million or 1% versus the fourth quarter of 2024, with an ending balance decline of $233 million [31] - Average loans held for investment (HFI) remained stable at $7.9 billion, with expectations of loan growth between 0% to 3% for the full year [38][39] Company Strategy and Development Direction - The company plans to continue investing in its merchant banking platform while managing its fixed cost structure in response to market conditions [20][14] - Management is focused on right-sizing the mortgage business to align with current market conditions and is actively pursuing growth in its loan officer pool [76] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the ongoing volatility in the market due to interest rates and inflation, but remains optimistic about the company's balance sheet positioning [43] - The outlook for 2025 reflects current economic assessments, with expectations for modest growth in various segments despite market uncertainties [44] Other Important Information - The company recognized two nonrecurring items impacting consolidated results: a gain from the sale of Mosier Energy Solutions and an insurance recovery, contributing positively to net income [19][20] - The allowance for credit losses increased by $5 million to $106 million, reflecting negative migration in certain credit relationships [26] Q&A Session Summary Question: What was the size of the downgraded office credit? - The downgraded office credit was approximately $18 million, with improvements in classified loans driven by smaller credits migrating positively [50] Question: Can deposit costs decrease further? - Management indicated that while there is potential for deposit costs to decrease, they are balancing this with the need to grow customer deposits [52][54] Question: Will there be a reversal of seasonal deposit outflows in Q2 2025? - Seasonal outflows are expected to continue into Q2 due to tax season, but growth in core customer deposits is anticipated afterward [62][64] Question: How is the mortgage business positioned for future improvements? - Management believes the mortgage business will see slow but steady improvement, with efforts to right-size operations for the next 12 to 18 months [75] Question: What is the outlook for loan growth? - The loan growth outlook has been reduced, but the pipeline remains strong, with expectations for modest growth in the one to four family portfolio [78][79] Question: Will stock repurchases continue? - The company has $67 million available for stock repurchases and is evaluating market conditions for potential buybacks [81] Question: How much of the expense improvement was due to the insurance recovery? - The insurance recovery had a limited impact on overall expense improvement, as the company has focused on optimizing and stabilizing expenses [86]

Shares of Hilltop Holdings Inc. (HTH) gained 2.5% in after-market hours on better-than-expected results. Its first-quarter 2025 earnings of 65 cents per share handily beat the Zacks Consensus Estimate of 28 cents. Moreover, the bottom line jumped 54.8% from the prior-year quarter.The results benefited from higher net interest income (NII) and non-interest income. Also, higher loans and an improvement in capital ratios were the other positives. However, higher non-interest expenses and provisions alongside l ...

Hilltop Holdings Inc. Q1 2025 Earnings Presentation Preface Corporate Headquarters April 25, 2025 2 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop.com Additional Information Please Contact: Matt Dunn Phone: 214-525-4636 Email: mdunn@hilltop.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives of Hilltop Holdings Inc. ("Hilltop" or the "Company") during the course of this presentation include "forward- looking statements" within the meaning of the Priva ...

Core Viewpoint - Hilltop Holdings reported quarterly earnings of $0.65 per share, significantly exceeding the Zacks Consensus Estimate of $0.28 per share, marking an earnings surprise of 132.14% [1][2] Financial Performance - The company achieved revenues of $318.46 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 12.18% and showing an increase from $285.24 million year-over-year [2] - Over the last four quarters, Hilltop Holdings has consistently surpassed consensus EPS estimates [2] Stock Performance - Hilltop Holdings shares have increased approximately 1.1% since the beginning of the year, contrasting with the S&P 500's decline of -8.6% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $307.92 million, and for the current fiscal year, it is $1.54 on revenues of $1.23 billion [7] - The estimate revisions trend for Hilltop Holdings is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Southeast industry, to which Hilltop Holdings belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - Hilltop Holdings Inc. reported income to common stockholders of $42.1 million, or $0.65 per diluted share, for Q1 2025, compared to $27.7 million, or $0.42 per diluted share, in Q1 2024, representing a 52.5% increase in income[1]. - Noninterest income for Q1 2025 was $213.3 million, a 17.5% increase from $181.6 million in Q1 2024[6]. - Net income attributable to Hilltop for the three months ended March 31, 2025, was $42.116 million, representing a 18.25% increase from $35.519 million in the previous quarter[8]. - Net interest income for the first quarter of 2025 was $105,757,000, an increase from $104,198,000 in the first quarter of 2024[14]. Credit Losses and Provisions - The provision for credit losses was $9.3 million in Q1 2025, compared to a reversal of credit losses of $2.9 million in Q1 2024, indicating a significant shift in credit loss expectations[4]. - Non-accrual loans decreased to $81,477,000 as of March 31, 2025, down from $88,149,000 in the previous quarter, representing a reduction of approximately 0.8%[13]. - Non-performing assets totaled $89,159,000 as of March 31, 2025, slightly down from $91,095,000 in the previous quarter, indicating a decrease of about 2.1%[13]. Assets and Deposits - Total assets decreased to $15.8 billion at March 31, 2025, down from $16.3 billion at December 31, 2024[6]. - Total deposits were $10.8 billion at March 31, 2025, compared to $11.1 billion at December 31, 2024, reflecting a decrease of 2.7%[6]. - Total assets as of March 31, 2025, were $15,934,658,000, a slight decrease from $15,997,647,000 in the previous quarter[14]. Returns and Margins - Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for Q1 2025 were 1.13% and 7.82%, respectively, compared to 0.74% and 5.23% in Q1 2024[6]. - Return on average stockholders' equity improved to 7.82% from 6.50% in the previous quarter[9]. - The company reported a net interest margin of 2.84%, slightly up from 2.72% in the previous quarter[9]. - The net interest margin for the three months ended March 31, 2025, was 2.86%, compared to 2.87% for the same period in 2024[14]. Stock and Shareholder Actions - Hilltop's book value per common share increased to $34.29 at March 31, 2025, up from $33.71 at December 31, 2024[6]. - The company repurchased 1,046,540 shares of common stock for $33.3 million at an average price of $31.80 per share during Q1 2025[2]. - The dividend payout ratio decreased to 27.62% from 31.08% in the previous quarter, indicating a more conservative approach to dividend distribution[9]. Operational Highlights - The mortgage loan origination production volume remained stable at $1.7 billion for both Q1 2025 and Q1 2024[4]. - Total mortgage loan originations volume for the three months ended March 31, 2025, was $1.742 billion, a decrease of 22.6% from $2.253 billion in the previous quarter[9]. - Hilltop employed approximately 3,640 people and operated 316 locations across 47 states as of March 31, 2025[17]. - The company plans to continue focusing on expanding its business and consumer banking services throughout Texas and beyond[18]. Capital Ratios - PlainsCapital's Tier 1 capital ratio increased to 10.22% as of March 31, 2025, up from 9.99% in the previous quarter[12]. - Hilltop's Common Equity Tier 1 capital ratio reached 21.29% as of March 31, 2025, compared to 21.23% in the previous quarter[12]. Taxation - Hilltop's effective tax rate for Q1 2025 was 22.7%, slightly higher than 22.5% in the same period of 2024[6]. Interest Income - Total interest income for the three months ended March 31, 2025, was $192.799 million, a decrease of 7.57% from $208.590 million in the previous quarter[8]. - Net interest income after provision for credit losses was $95.779 million, compared to $111.336 million in the previous quarter, reflecting a decrease of 14%[8]. - Noninterest income increased to $213.340 million, up 9.06% from $195.590 million in the previous quarter[8]. Loan Sales - The company experienced a net gain from the sale of loans of $45.281 million, an increase from $43.553 million in the previous quarter[8].

Interest Rate Risk Management - The banking segment's net interest income is significantly influenced by interest rate changes, with a positive gap indicating potential increases in income if rates rise [626]. - The banking segment maintains a strategy to manage interest rate risk through asset/liability management policies, including the use of derivative instruments [625]. - Interest rate risk for the broker-dealer segment is managed by setting limits on the size and duration of positions and monitoring the length of time securities can be held [635]. - The company employs simulation analysis to assess the impact of interest rate changes on net interest income and economic value of equity, providing a more accurate picture than traditional gap analysis [629]. - The company continues to evaluate its interest rate risk position and may adjust its balance sheet to align with management's target rate risk position in the future [631]. - The company has established policies to manage interest rate risk within acceptable limits, focusing on mitigating potential losses [644]. Interest Rate Sensitivity - As of December 31, 2024, a 200 basis point increase in interest rates is projected to increase net interest income by $47,270,000 (11.49%) and economic value of equity by $170,230,000 (10.84%) [630]. - The total interest sensitive assets amount to $12,917,581,000, while total interest sensitive liabilities are $8,876,933,000, resulting in an interest sensitivity gap of $(1,463,151,000) [628]. - The banking segment's interest rate sensitivity indicates that it is asset sensitive overall, primarily due to loans that adjust to the Wall Street Journal Prime rate [627]. - A negative gap in interest rate sensitivity would generally lead to an increase in net interest income during falling interest rates, while a positive gap would adversely affect income [626]. - The estimated impact of a 200 basis point increase in interest rates on net interest income would be $28.8 million, representing a 6.56% increase [649]. - A 100 basis point increase in interest rates would result in a $13.6 million increase in net interest income, or 3.09% [649]. - Conversely, a 200 basis point decrease in interest rates would lead to a $59.6 million decrease in net interest income, or 13.57% [649]. Debt Obligations - As of December 31, 2024, total debt obligations amounted to $350 million, all subject to fixed interest rates [645]. - The broker-dealer segment's total debt securities reached $451.6 million, with corporate obligations contributing $76.5 million [636]. - The weighted average yield for municipal obligations was 4.48%, while corporate obligations had a yield of 5.08% [636]. Mortgage Segment Exposure - The mortgage origination segment is significantly exposed to interest rate risk, affecting mortgage loan originations and related assets [641]. - The mortgage servicing rights (MSR) portfolio is sensitive to interest rate fluctuations, particularly in a declining rate environment [643]. Other Financial Activities - The company redeemed $150 million of Senior Notes on January 15, 2025, using cash on hand [645].

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $36 million or $0.55 per diluted share for Q4 2024, with a return on average assets of 0.9% and return on average equity of 6.5% [10][22] - For the full year 2024, consolidated income attributable to common stockholders was $113 million, equating to $1.74 per diluted share, with net interest income declining by 11% [25][22] - The common equity Tier 1 capital ratio stood at 21%, and tangible book value per share increased by $1.14 to $29.49 [21] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $51 million of pretax income on $13.3 billion of average assets, with a return on average assets of 1.24% [11] - PrimeLending reported a pretax loss of $9.9 million, primarily due to a reduction in origination lock volumes, although origination volume increased by $438 million compared to Q4 2023 [15][16] - HilltopSecurities generated pretax income of $20 million on net revenues of $125 million, with Public Finance Services seeing a 32% increase in net revenues [17][18] Market Data and Key Metrics Changes - Average deposit balances at PlainsCapital Bank increased by nearly $600 million during the quarter, driven by growth in both core interest-bearing and non-interest-bearing deposits [13] - Total non-interest income for Q4 2024 was $196 million, with mortgage-related income and fees increasing by $4 million compared to Q4 2023 [38] Company Strategy and Development Direction - The company aims to focus on risk management, sound balance sheet positioning, and long-term value creation through its synergistic business model [9] - Hilltop plans to manage interest-bearing deposit betas and reduce asset sensitivity over time, targeting a range of 2% to 4% [34][84] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the market regarding interest rates and inflation, but expressed optimism about the company's positioning for long-term success [47] - The outlook for 2025 includes expectations for average bank loan growth between 2% and 5%, with a focus on retaining PrimeLending mortgage loans [44] Other Important Information - Hilltop announced plans to sell its ownership position in Moser Energy Systems, with an estimated after-tax gain of $23 million to $27 million expected to close in Q1 2025 [27] - The allowance for credit losses decreased to $101 million, yielding an ACL to total loans HFI ratio of 1.27% as of December 31, 2024 [30] Q&A Session Summary Question: Inquiry about merchant banking gain and capital priorities - Management confirmed that capital priorities remain unchanged despite the expected gain, with a $100 million share repurchase program authorized for the year [54][55] Question: Clarification on loan growth outlook - Management indicated that while there is optimism in the market, actual loan funding may take time to materialize due to the nature of commercial real estate lending [57][60] Question: Discussion on Structured Finance revenues for 2025 - Management noted that revenues could be impacted by state budgeting processes for down payment assistance programs, which are outside their control [78] Question: Inquiry about asset sensitivity and balance sheet management - Management stated that they aim to reduce asset sensitivity over time and are focusing on retaining hybrid mortgages to achieve this goal [82][88] Question: Clarification on provision volatility - Management explained that the volatility in provisions is influenced by economic conditions and specific portfolio activities, particularly in the auto note segment [90][92]

Hilltop Holdings Inc. Q4 2024Earnings Presentation January 31, 2025 Preface Corporate Headquarters 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop.com Additional Information Please Contact: Matt Dunn Phone: 214-525-4636 Email: mdunn@hilltop.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives of Hilltop Holdings Inc. ("Hilltop" or the "Company") during the course of this presentation include "forward- looking statements" within the meaning of the Privat ...