Hilltop Holdings Inc. (NYSE:HTH) Q3 2022 Earnings Conference Call October 21, 2022 9:00 AM ET Company Participants Erik Yohe - Executive Vice President Jeremy Ford - President and Chief Executive Officer William Furr - Chief Financial Officer Conference Call Participants Brad Milsaps - Piper Sandler Thomas Wendler - Stephens, Inc. Carl Doirin - Raymond James Woody Lay - KBW Operator Hello and welcome to today’s Hilltop Holdings Third Quarter 2022 Earnings Conference Call. My name is Alex, and I will be coor ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Hilltop Holdings Inc.'s unaudited consolidated financial statements, including balance sheets, income statements, and cash flows, for the periods ended June 30, 2022 Key Financial Highlights (Q2 2022 vs Q2 2021) | Metric | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | **Net Income Attributable to Hilltop** | $33.3 million | $99.1 million | | **Diluted EPS** | $0.45 | $1.21 | | **Total Assets** | $16.72 billion | N/A (as of 6/30/21) | | **Total Deposits** | $11.92 billion | N/A (as of 6/30/21) | | **Total Stockholders' Equity** | $2.06 billion | N/A (as of 6/30/21) | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements reveal a decrease in total assets to $16.7 billion and a significant drop in Q2 2022 net income to $35.3 million Consolidated Balance Sheet Summary (in billions) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$16.72** | **$18.69** | | Loans held for investment, net | $7.84 | $7.79 | | Total Deposits | $11.92 | $12.82 | | **Total Stockholders' Equity** | **$2.06** | **$2.55** | Consolidated Statement of Operations Summary (in millions) | Account | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net Interest Income | $112.1 | $107.9 | | Provision for (reversal of) credit losses | $5.3 | $(28.7) | | Total Noninterest Income | $239.3 | $339.9 | | **Net Income** | **$35.3** | **$101.9** | | **Diluted EPS** | **$0.45** | **$1.21** | - Net cash from operating activities was a source of **$745.6 million** in the first six months of 2022, a significant shift from a use of **$325.9 million** in the same period of 2021, offset by cash used in financing activities of **$1.32 billion**, largely due to a **$442.3 million** repurchase of common stock[18](index=18&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, portfolio composition, and key events including a significant stock repurchase, securities transfer, and impact of economic outlook on credit losses - The company's business is conducted through two primary units: **PlainsCapital Corporation (PCC)** for banking and mortgage services, and **Hilltop Securities Holdings LLC** for broker-dealer and investment banking services[20](index=20&type=chunk) - On March 31, 2022, the company transferred agency-issued securities with a book value of approximately **$782 million** from the available-for-sale to the held-to-maturity portfolio, based on the company's intent and ability to hold these securities to maturity[65](index=65&type=chunk) - In May 2022, the company completed a tender offer, repurchasing **14.9 million shares** of common stock for **$442.3 million**, which exhausted the company's share repurchase authorization for the period[190](index=190&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2022 financial performance, noting significant net income decreases driven by lower mortgage income, reduced broker-dealer revenues, and credit loss provisions - Financial results for the first half of 2022 reflect significant decreases in mortgage origination segment net gains from sales of loans, declines in net revenues within certain broker-dealer business lines, and a provision for credit losses compared to a reversal in the prior year[273](index=273&type=chunk) - The company completed a modified "Dutch auction" tender offer on May 27, 2022, repurchasing **14.9 million shares** for **$442.3 million**, funded with cash on hand, which exhausted the company's share repurchase capacity[238](index=238&type=chunk) - Management identified headwinds for 2022 including tight housing inventories, declining deposit balances, rising interest rates, and inflationary pressures on costs, which are expected to continue to have an adverse impact on operating results[249](index=249&type=chunk) [Segment Results](index=53&type=section&id=Segment%20Results) Segment results show Banking income fell due to credit losses, Broker-Dealer was mixed, and Mortgage Origination pre-tax income dramatically dropped 91.5% due to lower volume and compressed margins Income (Loss) Before Taxes by Segment (Six Months Ended June 30, in millions) | Segment | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Banking | $97.8 | $151.6 | (35)% | | Broker-Dealer | $0.5 | $24.5 | (98)% | | Mortgage Origination | $12.1 | $142.1 | (91)% | | Corporate | $(33.1) | $(23.7) | (40)% | - The Banking segment's income decrease was primarily due to a **$38.9 million** swing in the provision for credit losses (from a reversal to a provision) and lower net interest income from the mortgage warehouse lending portfolio[294](index=294&type=chunk) - The Mortgage Origination segment's loan origination volume fell **37.3%** in the first half of 2022 compared to 2021, with refinancing volume as a percentage of total originations dropping from **42.7%** to **19.5%**[345](index=345&type=chunk)[347](index=347&type=chunk) [Financial Condition](index=65&type=section&id=Financial%20Condition) Financial condition shows total assets at $16.7 billion, with a slight increase in securities, modest loan growth, increased allowance for credit losses, and decreased deposits - The company transferred approximately **$782 million** of securities from available-for-sale to held-to-maturity on March 31, 2022, citing its intent and ability to hold them to maturity amid changing market conditions[385](index=385&type=chunk) - The allowance for credit losses increased to **1.20%** of total loans held for investment, up from **1.16%** at year-end 2021, driven by a more pessimistic macroeconomic forecast anticipating a mild recession in the second half of 2023[417](index=417&type=chunk)[420](index=420&type=chunk)[434](index=434&type=chunk) - Non-performing assets decreased to **$37.2 million** (**0.22%** of total assets) from **$54.0 million** (**0.29%** of total assets) at year-end 2021, primarily due to paydowns on several commercial and industrial and residential loan relationships[436](index=436&type=chunk)[448](index=448&type=chunk) [Liquidity and Capital Resources](index=77&type=section&id=Liquidity%20and%20Capital%20Resources) Hilltop maintains strong liquidity and capital, despite holding company cash decreasing to $137.6 million due to a $442.3 million tender offer and a 17.24% Common Equity Tier 1 ratio Hilltop Holdings Inc. Regulatory Capital Ratios | Ratio | June 30, 2022 | Minimum Requirement (incl. buffer) | | :--- | :--- | :--- | | Common Equity Tier 1 | 17.24% | 7.0% | | Tier 1 Capital | 17.24% | 8.5% | | Total Capital | 19.90% | 10.5% | | Leverage Ratio | 10.53% | 4.0% | - Holding company cash decreased by **$230.3 million**, primarily due to the **$442.3 million** tender offer, partially offset by **$265.7 million** in dividends received from subsidiaries[461](index=461&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.15 per common share** on July 21, 2022[463](index=463&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=82&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate sensitivity, with the banking segment being asset-sensitive, while broker-dealer and mortgage segments face risks from securities inventory and MSRs Consolidated Net Interest Income Sensitivity (at June 30, 2022, in millions) | Change in Interest Rates (bps) | Change in NII (Amount) | Change in NII (%) | | :--- | :--- | :--- | | +300 | $120.3 | 23.77% | | +200 | $79.2 | 15.65% | | +100 | $40.1 | 7.93% | | -50 | $(33.7) | (6.66)% | - The banking segment is **asset sensitive**, with a cumulative one-year interest sensitivity gap of **$1.1 billion**, indicating that net interest income would generally rise if rates increase[508](index=508&type=chunk)[509](index=509&type=chunk) - The mortgage origination segment's primary market risk is interest rate changes affecting the value of its **mortgage servicing rights (MSR)** portfolio, **interest rate lock commitments (IRLCs)**, and mortgage loans held for sale, with the company using derivatives to hedge these risks[521](index=521&type=chunk)[522](index=522&type=chunk)[523](index=523&type=chunk) [Controls and Procedures](index=86&type=section&id=Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[530](index=530&type=chunk) - No changes in internal control over financial reporting occurred during the second fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[531](index=531&type=chunk) [PART II — OTHER INFORMATION](index=87&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=87&type=section&id=Legal%20Proceedings) This section details material pending legal proceedings, including a FINRA claim against Hilltop Securities for an alleged $13.0 million loss and an inquiry regarding PrimeLending's float down option - WR Investments, LP filed a claim against Hilltop Securities through FINRA, alleging a **$13.0 million** loss related to the sale of subordinated bonds, which Hilltop Securities believes are without merit[151](index=151&type=chunk) - PrimeLending received an investigative inquiry from the U.S. Attorney for the Western District of Virginia regarding its float down option and is cooperating with the request for materials[152](index=152&type=chunk) [Risk Factors](index=87&type=section&id=Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K were reported - No material changes to the risk factors disclosed in the 2021 Form 10-K were reported[535](index=535&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's Q2 2022 common stock repurchase, including a modified "Dutch auction" tender offer for 14.9 million shares at $442.3 million Share Repurchases (Q2 2022) | Period | Total Shares Purchased (in millions of shares) | Average Price Paid per Share (in USD) | | :--- | :--- | :--- | | April 2022 | 0 | N/A | | May 2022 | 14.9 | $29.75 | | June 2022 | 0 | N/A | | **Total Q2** | **14.9** | **$29.75** | - The share repurchases were conducted as part of a modified "Dutch auction" tender offer announced on May 2, 2022, and completed on May 27, 2022, for a total of **$442.3 million**[538](index=538&type=chunk) [Exhibits](index=88&type=section&id=Exhibits) This section lists Form 10-Q exhibits, including certifications from the Principal Executive Officer and Principal Financial Officer, and XBRL data files - The exhibits filed include certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act of 2002[539](index=539&type=chunk)

Hilltop Holdings Inc. (NYSE:HTH) Q2 2022 Earnings Conference Call July 22, 2022 9:00 AM ET Company Participants Erik Yohe - Executive Vice President Jeremy Ford - President and Chief Executive Officer Will Furr - Chief Financial Officer Conference Call Participants Brady Gailey - KBW Michael Rose - Raymond James Brad Milsaps - Piper Sandler Matt Olney - Stephens Operator Good morning and welcome to today’s Hilltop Holdings Second Quarter 2022 Earnings Conference Call. My name is Candice, and I will be your ...

Hilltop Holdings Inc. Q2 2022Earnings Presentation July 22, 2022 Preface Corporate Headquarters Additional Information 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop-holdings.com Please Contact: Erik Yohe Phone: 214-525-4634 Email: eyohe@hilltop-holdings.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 "forwardlooking statements" within the meaning ...

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, 2022 ☐ 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 ...

Hilltop Holdings Inc. Q1 2022Earnings Presentation April 22, 2022 Preface Corporate Headquarters Additional Information 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop-holdings.com Please Contact: Erik Yohe Phone: 214-525-4634 Email: eyohe@hilltop-holdings.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 "forwardlooking statements" within the meaning ...

Hilltop Holdings Inc. (NYSE:HTH) Q1 2022 Results Earnings Conference Call April 22, 2022 9:00 AM ET Company Participants Erik Yohe - Executive Vice President Jeremy Ford - President and Chief Executive Officer Will Furr - Chief Financial Officer Conference Call Participants Michael Young - Truist Brad Milsaps - Piper Sandler Michael Rose - Raymond James Matt Olney - Stephens Brady Gailey - KBW Operator Hello, everyone. And a warm welcome to the Hilltop Holdings First Quarter 2022 Earnings Conference Call an ...

Interest Rate Risk Management - The banking segment's net interest income is significantly influenced by interest rate changes, with a positive GAP indicating that net interest income would generally rise if rates increase [694]. - The banking segment employs various risk management techniques, including interest rate shock analysis and simulation analysis, to mitigate interest rate risk [692]. - Interest rate risk in 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 [703]. - Interest rate risk management strategies include executing forward commitments to sell mortgage-backed securities (MBS) to mitigate earnings volatility [709]. - The company has established policies to manage exposure to interest rate changes within acceptable limits [711]. Impact of Interest Rate Changes - As of December 31, 2021, a 300 basis point increase in interest rates is projected to increase net interest income by $116,716 thousand (32.90%) and economic value of equity by $525,978 thousand (29.27%) [699]. - A 300 basis point increase in interest rates would result in a $128,097 thousand (33.43%) increase in net interest income [716]. - The estimated impact of a 200 basis point increase in interest rates would yield an $83,367 thousand (21.76%) increase in net interest income [716]. - The company’s consolidated earnings are significantly dependent on net interest income, influenced by interest rate changes [714]. Asset and Liability Management - Total interest sensitive assets amount to $14,122,153 thousand, while total interest sensitive liabilities are $8,258,335 thousand, resulting in an interest sensitivity gap of $5,863,818 thousand [695]. - The cumulative interest sensitivity gap shows that 41.52% of total interest sensitive assets are covered by the cumulative gap [695]. - The banking segment's asset sensitivity is largely due to loans that adjust daily or monthly to the Wall Street Journal Prime rate [694]. - Projected changes in net interest income are impacted by heightened cash balances, which represent a significant portion of the Bank's asset sensitivity [699]. - The broker-dealer segment's funding sources include customer cash balances and bank borrowings, which expose it to interest rate risk [702]. Mortgage Segment Exposure - The mortgage origination segment is significantly exposed to interest rate risk, affecting mortgage-related assets and commitments [708]. - The average holding period for mortgage loans from funding to sale is approximately 30 days, impacting interest rate risk management [709]. - The company has expanded its residential mortgage servicing operations, increasing the portfolio of retained mortgage servicing rights (MSR) [710].

Hilltop Holdings Inc. Q4 2021Earnings Presentation January 28, 2022 Preface Corporate Headquarters Additional Information 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop-holdings.com Please Contact: Erik Yohe Phone: 214-525-4634 Email: eyohe@hilltop-holdings.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 mean ...

Hilltop Holdings Inc. (NYSE:HTH) Q4 2021 Earnings Conference Call January 28, 2022 9:00 AM ET Company Participants Erik Yohe – Investor Relations Jeremy Ford – President and Chief Executive Officer Will Furr – Chief Financial Officer Conference Call Participants Michael Young – Truist Securities Matt Olney – Stephens Brad Milsaps – Piper Sandler John Yan Tunis – Raymond James Operator Good morning. My name is Candice and I will be your conference operator today up this time. I would like to welcome everyone ...