Q2 2023Earnings Presentation Preface 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop-holdings.com FORWARD-LOOKING STATEMENTS The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. Hilltop Holdings does not undertake an obligation to, and disclaims any duty to, update any of the information herein. Q2 2023 • Average bank loans HFI1in ...

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 June 30, 2023 ☐ 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. Em ...

Financial Data and Key Metrics Changes - Hilltop reported net income of $18 million or $0.28 per diluted share for Q2 2023, with a return on average assets of 0.5% and return on average equity of 3.5% [14][29] - The allowance for credit losses increased by $12 million to $109 million, resulting in an allowance to total loans ratio of 1.31% as of June 30, 2023 [30][31] - Net interest income for the second quarter was $118 million, a year-over-year increase of $6 million or 6%, primarily due to higher yields on loans and securities [37][29] Business Line Data and Key Metrics Changes - The wealth management business saw revenue improvement due to higher short-term interest rates, despite weaker transactional production [8] - PrimeLending originated $2.5 million in volume, a decline of 36% from the same period last year, with only 6% of this volume being refinanced [11][9] - Hilltop Securities realized pretax income of $19 million on net revenues of $113 million, with a 13% increase in net revenues compared to the previous year [24] Market Data and Key Metrics Changes - Average loans at PlainsCapital Bank increased by $172 million in the quarter, approximately 9% annualized, but loan growth is expected to slow due to declining pipelines [16][17] - Total average deposits were approximately $11.3 billion, an increase of about $300 million or 3% from the previous quarter [43] - Non-interest income for Q2 2023 was $191 million, with mortgage-related income decreasing by $50 million due to challenges in the mortgage banking sector [47] Company Strategy and Development Direction - The company continues to prioritize balance sheet strength and capital preservation, focusing on long-term growth opportunities despite current macroeconomic challenges [15][27] - PrimeLending is resizing its business and reducing its expense base, including headcount reductions and branch consolidations, to adapt to the challenging mortgage market [22][23] - Hilltop maintains a competitive position in deposit pricing and plans to pass through future rate increases to clients [70][78] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the macroeconomic environment, including inflation and interest rates, which could lead to further credit migration [52][59] - The company expects interest rates to remain elevated, and it will continue to adopt a conservative approach in its operations [27][29] - Management noted that while credit quality remains solid, ongoing cash flow challenges could impact clients and the portfolio [59][60] Other Important Information - Hilltop maintains strong capital levels with a common equity Tier 1 capital ratio of 17.6% and tangible book value per share increased to $27.45 [26] - The company has approximately $7 billion in available liquidity sources as of June 30, 2023, with a revision of cash targets to between $750 million and $1.5 billion [40][41] Q&A Session Summary Question: Interest-bearing deposit beta expectations - Management indicated that the marginal interest-bearing deposit beta expectations are for 75% to 100% on any additional federal fund increases, reflecting a competitive market [66][70] Question: Broker deposits rate and term - Broker deposits added during the quarter ranged from 5% to 510 basis points with terms of 90 to 180 days [71] Question: Outlook for broker-dealer business - Management noted strength in sweep revenues and expects a stronger second half due to investments in fixed income and public finance services [78] Question: Margin compression expectations - Management anticipates potential NIM decline of 7 to 10 basis points for each incremental 25 basis point increase in rates [84] Question: Reserve increase mechanics - The reserve increase was primarily driven by a deterioration in the macroeconomic outlook, with over half of the build related to macroeconomic factors [89] Question: Deposit cost commentary - Management stated that most rate increases occurred in April and May, driven by customer demand for higher yields [97] Question: Exposure in office portfolio - The office portfolio exposure is primarily in larger metro areas like Dallas and Austin, with a focus on mid and low-rise buildings [100][101] Question: Buyback outlook - Management indicated that buybacks are not compelling at the moment due to the macroeconomic environment, but would consider if valuations dip significantly [102] Question: Competitive environment for deposit pricing - Management noted that the competitive landscape has stabilized, with no significant irrational behaviors observed among competitors [108]

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, 2023 ☐ 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 reported net income of $26 million or $0.40 per diluted share for Q1 2023, with a return on average assets of 0.7% and return on average equity of 5.1% [4] - The common equity Tier 1 risk-based capital ratio stood at 18%, and tangible book value per share increased by $0.18 to $27.36 from Q4 2022 [8] - Total deposits declined by 3% for the quarter, while core bank customer deposits only declined by approximately 1% [5][9] Business Line Data and Key Metrics Changes - PrimeLending originated $1.7 billion in volume, with a gain on sale margin of 193 basis points, reflecting a 54% decline in origination volume from the prior year [7] - PlainsCapital Bank generated $58 million of pretax income on $13.7 billion of assets, with average loans increasing by $133 million or 8% annualized [26] - Non-interest expenses decreased by $36 million to $250 million, primarily due to a decrease in variable compensation at PrimeLending [40] Market Data and Key Metrics Changes - Mortgage-related income and fees decreased by $74 million versus Q1 2022, driven by high interest rates and limited housing supply [59] - The gain-on-sale margin for loans sold to third parties declined by 18 basis points to 193 basis points [39] - Average total deposits were approximately $11 billion, declining by $350 million or 3% compared to Q4 2022 [37] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and capital levels while adapting to market conditions [10][31] - Hilltop plans to reduce one to four family mortgage retention levels significantly for the remainder of 2023 due to current market conditions [20] - The company remains interested in M&A opportunities, particularly in Texas, and is looking for strategic fits in potential targets [71][93] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's liquidity position and ability to support customers despite industry volatility [4][6] - The outlook for the mortgage business remains challenging due to high interest rates and low housing inventory [28] - Management anticipates continued pressure on gain-on-sale margins and overall profitability in the mortgage sector [18][28] Other Important Information - The allowance for credit losses increased to $97.4 million, yielding an ACL to total loans HFI ratio of 1.19% [12] - The company repurchased $4.5 million of shares and declared a dividend of $0.16 during the quarter, an increase from the same period last year [9] - The company expects deposit competition to remain intense, impacting net interest income and margins [35] Q&A Session Summary Question: What actions are being taken to improve the mortgage business profitability? - Management acknowledged the challenges in the mortgage business and highlighted efforts to reduce fixed costs and right-size the business for a smaller market [68] Question: What is the expected effective tax rate for the remainder of the year? - The effective tax rate for the first quarter was low due to discrete items, with expectations of 24% to 26% for the remaining quarters [70] Question: Is M&A still a possibility in the current environment? - Management confirmed interest in M&A opportunities, particularly those that are strategic fits, and emphasized a strong balance sheet to support potential transactions [71][79]

Provision Expense / (Reversal) • Full year provision/ total loans HFI: 10 – 25 basis points Effective Tax Rate (GAAP) • 22 – 24% full year basis 14 Appendix HilltopHoldings True 15 PlainsCapital Bank – Q1 2023Highlights | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------|---------|--------------|-------------------------------------|---------|---------| | Summary Results ($ in millions) | Q1 2022 | Q1 2023 | Key Highlights | Q1 2022 | Q1 2023 | | ...

Interest Rate Sensitivity - The banking segment's net interest income is significantly influenced by interest rate changes, with a positive GAP indicating potential increases in income as rates rise [606]. - As of December 31, 2022, the banking segment's total interest-sensitive assets amounted to $12.74 billion, while total interest-sensitive liabilities were $7.59 billion, resulting in an interest sensitivity gap of $5.15 billion [608]. - A 300 basis point increase in interest rates is projected to increase net interest income by $40.07 million, representing an 8.80% increase [610]. - The banking segment is currently asset sensitive, with a large percentage of loans adjusting to the Wall Street Journal Prime rate, which contributes to its overall sensitivity [607]. - The projected changes in net interest income are influenced by the heightened level of cash balances, which represent a significant portion of the bank's sensitivity [612]. Interest Rate Risk Management - The broker-dealer segment is exposed to market risk due to fluctuations in interest rates, market prices, and changes in credit ratings, impacting its role as a financial intermediary [614]. - Interest rate risk in the broker-dealer segment is managed by setting limits on the size and duration of positions, as well as monitoring the length of time securities can be held [616]. - The broker-dealer segment's funding sources include customer cash balances and bank borrowings, which expose it to interest rate risk from short-term rate movements [615]. - The company employs various derivative instruments to manage interest rate risk and hedge specific assets and liabilities [605]. Impact of Interest Rate Changes on Net Interest Income - The estimated impact of a 300 basis point increase in interest rates would result in a $99,932 thousand (17.56%) increase in net interest income [629]. - A 200 basis point increase in interest rates would lead to a $64,953 thousand (11.41%) increase in net interest income [629]. - A 100 basis point increase would result in a $33,327 thousand (5.86%) increase in net interest income [629]. - Conversely, a 50 basis point decrease in interest rates would decrease net interest income by $17,260 thousand (3.03%) [629]. - A 100 basis point decrease would lead to a $35,646 thousand (6.26%) decrease in net interest income [629]. - A 200 basis point decrease would result in a $75,696 thousand (13.30%) decrease in net interest income [629]. Mortgage Operations and Risk - The company has expanded its residential mortgage servicing operations, increasing its portfolio of retained mortgage servicing rights (MSR) [623]. - The mortgage origination segment is exposed to interest rate risk, which could materially affect the volume of mortgage loan originations [621]. - The company employs derivative financial instruments to mitigate market risk associated with MSR assets [623].

Financial Data and Key Metrics Changes - Hilltop reported consolidated income attributable to common stockholders of approximately $113 million or $1.60 per diluted share for the full year 2022, with a return on average assets of 0.6% and return on average equity of 5% [25][29] - Net interest income for the fourth quarter was $123 million, reflecting an increase of $19 million or 18% compared to the prior year, driven by higher yields on loans and securities [59] - The allowance for credit losses increased to $95 million, yielding an ACL to total loans HFI ratio of 1.18% as of year-end 2022 [9][78] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $58 million in pretax income with a return on average assets of 1.3%, although pretax income was down year-over-year due to changes in provision expense [75] - HilltopSecurities generated pre-tax income of $19.8 million on net revenues of $107 million, an increase of 13% compared to Q4 2021, primarily driven by fixed income services [76] - PrimeLending experienced a loss before taxes of approximately $26 million on $2 billion of originated volume, driven by a 59% decline in volume and a 151 basis point reduction in gain on sale margin [55] Market Data and Key Metrics Changes - Average total deposits decreased by approximately $1 billion or 8% year-over-year, with a decline in average deposits of $270 million or 2% quarter-over-quarter [33][54] - Purchase mortgage volumes decreased by $1.7 billion or 47%, and refinanced volumes decreased by $1.3 billion or 90% compared to the prior year [31] - The competitive environment for liquidity is expected to drive deposit rates higher throughout 2023, impacting net interest income [13][26] Company Strategy and Development Direction - The company is focused on enhancing productivity and expense efficiency across all business lines, particularly in mortgage operations, to align with current market conditions [7] - Hilltop aims to maintain a solid financial foundation with a strong balance sheet and ample liquidity, allowing for investment in business and resilience through economic cycles [77] - The company plans to continue evaluating its business on a weekly and quarterly basis to adapt to production trends and market conditions [85] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, citing a solid foundation and strong leadership across Texas, despite acknowledging challenges in the mortgage market [5][57] - The management anticipates continued pressure on the mortgage segment due to rising interest rates and inflation, but expects to reach breakeven or profitability in the second half of the year [86] - The company is closely monitoring credit quality, with no significant signs of deterioration currently, but remains cautious due to economic uncertainties [5][9] Other Important Information - Hilltop returned $485 million to shareholders through dividends and share repurchase efforts, repurchasing approximately 19% of the shares outstanding [56] - The company declared a quarterly cash dividend of $0.16 per common share, a 7% increase from the prior quarter, and authorized a new stock repurchase program of $75 million [56] Q&A Session Summary Question: Steps taken to reduce the cost base in the Mortgage segment - Management indicated ongoing vigilance around cost management and rightsizing the business to drive profitability, with significant reductions in non-originator headcount [14][16] Question: Trajectory for margin trends - Management expects modest improvements in net interest income and net interest margin through the first half of 2023, with potential moderation in the second half due to competitive pressures [38][68] Question: Credit metrics and loan segments under review - Management is closely monitoring the entire loan portfolio, particularly floating rate loans and segments like office and hotel portfolios, due to the impact of rising interest rates [93][94] Question: Deposit guidance and balance sheet size - Management anticipates average deposits to decline by 4% to 8% for the year, with expectations that the overall size of the balance sheet will remain similar year-on-year [95]

January 27, 2023 Corporate Headquarters Additional Information Please Contact: Erik Yohe Phone: 214-525-4634 Email: eyohe@hilltop-holdings.com 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 Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may ...

Financial Performance - Net interest income for the three months ended September 30, 2022, was $123.5 million, an increase from $105.1 million in the same period of 2021, representing a growth of 17.8%[243] - Total noninterest income for the nine months ended September 30, 2022, was $662.7 million, down from $1.1 billion in the same period of 2021, reflecting a decrease of 41.1%[243] - Net income attributable to Hilltop for the three months ended September 30, 2022, was $32.1 million, compared to $92.9 million in the same period of 2021, a decline of 65.5%[243] - The diluted earnings per common share for the three months ended September 30, 2022, was $0.50, compared to $1.15 in the same period of 2021, a decrease of 56.5%[243] - Return on average stockholders' equity decreased to 6.26% for the three months ended September 30, 2022, from 14.96% in the same period of 2021[285] - Return on average assets fell to 0.79% for the three months ended September 30, 2022, compared to 2.13% in the same period of 2021[286] Dividends and Share Repurchase - The company declared and paid total common dividends of $33.5 million during the nine months ended September 30, 2022[245] - A quarterly cash dividend of $0.15 per common share was declared on October 20, 2022, payable on November 25, 2022[245] - The company completed a tender offer repurchasing 14,868,469 shares at a price of $29.75 per share for a total of $442.3 million, funded with cash on hand[246] Assets and Equity - Total assets as of September 30, 2022, were $16.6 billion, a decrease from $18.7 billion as of December 31, 2021[243] - The common equity to assets ratio was 12.23% as of September 30, 2022, down from 13.50% in the previous year[243] - Book value per common share increased to $31.46 as of September 30, 2022, compared to $31.36 in 2021[248] - Tangible common equity decreased to $1,752.155 million from $2,239.937 million year-over-year[248] - Total assets decreased to $16,615.291 million from $18,689.080 million year-over-year[248] - Equity to assets ratio was 12.23% as of September 30, 2022, down from 13.50% in 2021[248] Credit Losses and Provisions - The allowance for credit losses was $91.8 million as of September 30, 2022, compared to $91.4 million as of December 31, 2021[243] - Provision for credit losses for the banking segment showed a significant reversal, with a provision of $(650,000) for the three months ended September 30, 2022, compared to $(5.8 million) in the same period of 2021[272] - The provision for (reversal of) credit losses during the three months ended September 30, 2022, was a reversal of $650,000, compared to a provision of $5,775,000 in the same period of 2021, reflecting a $5,125,000 improvement[297] - The provision for credit losses during the nine months ended September 30, 2022, was driven by a deteriorating U.S. economic outlook[429] Economic Outlook - The company anticipates continued adverse impacts on operating results due to rising interest rates and inflationary pressures into the first half of 2023[257] - The U.S. Real GDP growth rate for Q3 2022 was 1.3%, while the forecast for Q4 2022 is 0.4%[427] - The unemployment rate is projected to peak at 6.2% by Q4 2023, with a forecasted decline in real GDP of 1.6% during the same period[427] - The economic forecast as of September 30, 2022, indicates a mild recession beginning in Q2 2023, with real GDP expected to decline by 1.6% through Q4 2023[427] Interest Income and Margin - The net interest margin improved to 3.19% for the three months ended September 30, 2022, compared to 2.53% in the same period of 2021[285] - The consolidated taxable equivalent net interest margin for the three months ended September 30, 2022, was 3.20%, compared to 2.54% for the same period in 2021[290] - The average interest-earning assets for the three months ended September 30, 2022, were $15.36 billion, compared to $16.49 billion in 2021[293] - The net interest spread for the nine months ended September 30, 2022, was 2.38%, up from 2.19% in 2021[293] - The banking segment's net interest margin exceeds the consolidated net interest margin due to specific items not reflected in the consolidated calculation[295] Mortgage Origination and Sales - The mortgage origination segment reported losses of $23.1 million and $11.0 million before income taxes for the three and nine months ended September 30, 2022[248] - The company experienced a significant decrease in net gains from mortgage origination, with $380.8 million in 2022 compared to $793.9 million in 2021[282] - Mortgage loan origination volume decreased by 45.6% and 39.9% for the three and nine months ended September 30, 2022, compared to the same periods in 2021[358] - Net gains from mortgage loan sales dropped to $74.696 million for the three months ended September 30, 2022, down from $214.093 million in 2021, representing a decrease of $139.397 million[363] Noninterest Income and Expenses - Noninterest income decreased by 44% to $207.0 million for the three months ended September 30, 2022, compared to $367.9 million in the same period of 2021[278] - Noninterest expense decreased to $60,160,000 for the three months ended September 30, 2022, from $54,567,000 in 2021, driven by lower compensation costs in the mortgage origination segment[299] - Noninterest income in the banking segment increased during the three months ended September 30, 2022, primarily due to increased wealth management fee income and service charges on depositor accounts[324] - Noninterest income in the broker-dealer segment decreased by $15.3 million during the three months ended September 30, 2022, compared to the same period in 2021[328] Regulatory and Compliance - The loan review department assesses credit risk and compliance with loan policy, presenting results to management and the board of directors[420] - The bank's loan policy includes specific underwriting guidelines for various portfolio segments, ensuring compliance with permissible loan types[418] - The macroeconomic forecasts used to estimate credit losses are subject to significant judgment and uncertainty, impacting the allowance for credit losses[423] - The COVID-19 pandemic continues to affect economic conditions and borrower defaults, requiring careful estimation of its impact on credit losses[422]