Hilltop (HTH) 8-K Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2019

Exhibit 99.1

Investor Relations Contact:

Erik Yohe

214-525-4634

eyohe@hilltop-holdings.com

Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2019

DALLAS — (BUSINESS WIRE) October 31, 2019 — Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the third quarter of 2019. Hilltop produced income to common stockholders of $79.4 million, or $0.86 per diluted share, for the third quarter of 2019, compared to $35.8 million, or $0.38 per diluted share, for the third quarter of 2018. 

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.08 per common share payable on December 3, 2019, to all common stockholders of record as of the close of business on November 15, 2019.  Additionally,  under the stock repurchase program approved by the Hilltop Board of Directors in January 2019, Hilltop was authorized to repurchase its outstanding common stock in the open market or through privately negotiated transactions. Hilltop has paid $73.4 million to repurchase 3,390,247 shares at an average price of $21.64 during the first nine months of 2019. These shares were returned to the pool of authorized but unissued shares of common stock. Share repurchase amounts include the repurchase of common shares to offset issuances under the employee compensation plan. 

The aforementioned repurchases are inclusive of the purchase of 2,175,404 shares of our common stock from Oak Hill Capital Partners III, L.P., Oak Hill Capital Management Partners III, L.P. and Oak Hill Capital Management, LLC (collectively, “Oak Hill Capital”) for $48.4 million, or $22.25 per share, and consummated on August 20, 2019. As a result, the repurchase of shares by Hilltop from Oak Hill Capital fully utilized the stock repurchase program previously authorized in January 2019.

Based upon a review recently conducted, Hilltop determined that we did not design and maintain effective internal control over certain aspects relating to the determination of the qualitative factors considered by management in the allowance for loan losses estimation process, particularly quantitative support for such qualitative factors. Based upon the foregoing, management and the Audit Committee of the Board of Directors concluded that this control deficiency constituted a material weakness as of December 31, 2018. As of the date of this press release, we do not expect this control deficiency to result in a restatement of our consolidated financial statements.

We expect to file an amendment to our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019 to include disclosures concerning this material weakness. In addition, we anticipate that the report of PricewaterhouseCoopers LLP on our internal control over financial reporting at December 31, 2018 will be revised to reflect the identification of this material weakness.

Hilltop and our Board of Directors are committed to maintaining a strong internal control environment. Management has evaluated the material weakness described above and has made significant progress updating its design and implementation of internal controls to remediate the aforementioned control deficiency and enhance our internal control environment. The remediation plan is being implemented and includes enhanced documentation and quantitative analysis of the qualitative factors considered in the estimation of the allowance for loan losses. Management expects to successfully implement the remediation plan prior to filing our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019, and currently plans to evaluate our updated internal controls design and determine whether the controls have operated effectively during the fourth quarter of 2019.

Effective January 1, 2020, Hilltop will adopt the current expected credit loss model, or CECL, which will replace the current process for estimating allowance for loan losses in its entirety. Based upon the work completed to date and the current loan portfolios, we estimate that the allowance for credit losses will be between $80 million and $110 million, inclusive of the change in reserve for unfunded commitments, when CECL is adopted on January 1, 2020. The estimated increase over the current allowance for loan losses is driven by the fact that under CECL the allowance will cover expected credit losses over the entire expected life of the loan portfolios and also will take into account forecasts of

expected future macroeconomic conditions. While not expected to be material, the impact of the adoption of CECL also will affect our regulatory capital, performance and other asset quality ratios. 

Jeremy Ford, CEO of Hilltop, said, “This was an excellent quarter for all of the Hilltop businesses, as each improved pre-tax income versus the prior quarter and prior year. During the quarter, the Bank generated strong earnings from loan growth and a focus on efficiency, HilltopSecurities delivered profit improvement from growth in Capital Markets and Structured Finance, and National Lloyds produced solid income from reduced storm activity and the execution of our previously disclosed strategy to exit non-core states. Importantly, the mortgage team at PrimeLending reported record results by maintaining their focus on profitable originations and efficiency efforts while the mortage market conditions improved. I want to thank all of our teammates across Hilltop for their part in executing towards our combined vision and am excited about our momentum heading into the fourth quarter of 2019.”

Third Quarter 2019 Highlights for Hilltop:

· Hilltop’s annualized return on average assets and return on average equity for the third quarter of 2019 were 2.26% and 15.55%, respectively, compared to 1.07% and 7.41%, respectively, for the third quarter of 2018;

· Hilltop’s book value per common share increased to $22.71 at September 30, 2019, compared to $21.85 at June  30, 2019;

· Hilltop’s total assets were $14.8 billion at September 30, 2019, compared to  $14.3 billion at June  30, 2019;

· Loans1, net of allowance for loan losses, increased to $6.7 billion compared to  $6.6 billion at June  30, 2019;

· Non-performing loans were $35.5 million, or 0.38% of total loans at September 30, 2019, compared to $32.0 million, or 0.36% of total loans, at June  30, 2019;

· Loans held for sale increased by 23.3% from June  30, 2019 to $2.0 billion at September 30, 2019;

· Total deposits were $8.7 billion at September 30, 2019, compared to $8.5 billion at June  30, 2019;

· Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio2 of 12.67% and a Common Equity Tier 1 Capital Ratio of 16.15% at September 30, 2019;

· Hilltop’s net interest margin3 decreased to 3.45% for the third quarter of 2019, compared to 3.49% in the second quarter of 2019;

· The provision (recovery) for loan losses was $47 thousand during the third quarter of 2019, compared to ($0.7) million in the second quarter of 2019;  

· For the third quarter of 2019, noninterest income was $341.4 million, compared to $269.7 million in the third quarter of 2018,  a 26.6%  increase;

· For the third quarter of 2019, noninterest expense was $350.1 million, compared to $335.7 million in the third quarter of 2018,  a  4.3%  increase; and

· Hilltop’s effective tax rate increased to 21.8% during the third quarter of 2019, compared to 17.0% during the same period in 2018.

o The effective tax rate during the third quarter of 2018 was lower than the statutory rate due to tax planning strategies and a tax benefit recognized on the deductible portion of settlement of litigation.

1    “Loans” reflect loans held for investment excluding broker-dealer loans, net of allowance for loan losses, of $558.1 million and $570.3  million at September 30, 2019 and June  30, 2019, respectively.

2   Based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets.

3   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)	2019		2019		2019		2018		2018
Cash and due from banks	$	326,129	$	342,001	$	313,192	$	644,073	$	405,682
Federal funds sold		423		521		438		400		468
Assets segregated for regulatory purposes		83,878		151,271		156,851		133,993		220,115
Securities purchased under agreements to resell		49,998		50,660		65,205		61,611		164,656
Securities:
Trading, at fair value		707,268		601,524		703,295		745,466		660,314
Available for sale, at fair value		1,003,850		1,009,924		1,019,851		875,658		874,496
Held to maturity, at amortized cost		371,361		365,905		369,865		351,012		348,163
Equity, at fair value		19,494		19,592		19,343		19,679		21,555
		2,101,973		1,996,945		2,112,354		1,991,815		1,904,528
Loans held for sale		1,984,231		1,609,477		1,059,280		1,393,246		1,524,980
Loans held for investment, net of unearned income		7,321,208		7,202,604		7,011,679		6,930,458		6,940,306
Allowance for loan losses		(55,604)		(55,177)		(58,809)		(59,486)		(60,152)
Loans held for investment, net		7,265,604		7,147,427		6,952,870		6,870,972		6,880,154
Broker-dealer and clearing organization receivables		1,731,979		1,707,249		1,651,199		1,440,287		1,491,507
Premises and equipment, net		213,757		208,975		210,333		237,373		236,172
Operating lease right-of-use assets		121,838		123,832		108,806		—		—
Other assets		633,794		602,143		591,442		580,362		604,445
Goodwill		291,435		291,435		291,435		291,435		291,435
Other intangible assets, net		31,990		33,934		35,965		38,005		40,394
Total assets	$	14,837,029	$	14,265,870	$	13,549,370	$	13,683,572	$	13,764,536
Deposits:
Non interest-bearing	$	2,732,325	$	2,598,253	$	2,490,144	$	2,560,750	$	2,525,677
Interest-bearing		5,998,547		5,864,826		5,807,975		5,975,406		5,764,556
Total deposits		8,730,872		8,463,079		8,298,119		8,536,156		8,290,233
Broker-dealer and clearing organization payables		1,546,163		1,531,891		1,490,227		1,294,925		1,396,401
Short-term borrowings		1,502,755		1,338,893		914,525		1,065,807		1,216,649
Securities sold, not yet purchased, at fair value		59,249		45,447		69,354		81,667		179,582
Notes payable		245,341		231,923		225,372		228,872		220,192
Operating lease liabilities		131,133		132,750		118,452		—		—
Junior subordinated debentures		67,012		67,012		67,012		67,012		67,012
Other liabilities		471,077		403,070		351,178		435,240		430,309
Total liabilities		12,753,602		12,214,065		11,534,239		11,709,679		11,800,378
Common stock		906		928		938		936		946
Additional paid-in capital		1,441,604		1,473,599		1,491,585		1,489,816		1,504,467
Accumulated other comprehensive income (loss)		12,305		7,862		(1,062)		(8,627)		(14,722)
Retained earnings		602,835		544,275		499,452		466,737		448,923
Deferred compensation employee stock trust, net		789		788		827		825		860
Employee stock trust		(170)		(171)		(213)		(217)		(252)
Total Hilltop stockholders' equity		2,058,269		2,027,281		1,991,527		1,949,470		1,940,222
Noncontrolling interests		25,158		24,524		23,604		24,423		23,936
Total stockholders' equity		2,083,427		2,051,805		2,015,131		1,973,893		1,964,158
Total liabilities & stockholders' equity	$	14,837,029	$	14,265,870	$	13,549,370	$	13,683,572	$	13,764,536

	Three Months Ended
Consolidated Income Statements	September 30,		June 30,		March 31,		December 31,		September 30,
(in 000's, except per share data)	2019		2019		2019		2018		2018
Interest income:
Loans, including fees	$	119,580	$	114,325	$	110,870	$	119,322	$	113,535
Securities borrowed		21,010		15,517		16,859		16,782		16,346
Securities:
Taxable		15,764		14,684		15,616		15,512		11,994
Tax-exempt		1,576		1,513		1,498		1,648		1,717
Other		4,026		4,017		5,197		4,438		4,734
Total interest income		161,956		150,056		150,040		157,702		148,326
Interest expense:
Deposits		18,887		18,036		17,106		14,838		12,353
Securities loaned		17,889		13,470		14,738		13,935		13,984
Short-term borrowings		8,166		6,897		5,471		7,476		7,831
Notes payable		2,715		2,629		2,641		2,627		2,702
Junior subordinated debentures		955		986		1,001		968		955
Other		132		162		152		143		160
Total interest expense		48,744		42,180		41,109		39,987		37,985
Net interest income		113,212		107,876		108,931		117,715		110,341
Provision (recovery) for loan losses		47		(672)		951		6,926		(371)
Net interest income after provision (recovery) for loan losses		113,165		108,548		107,980		110,789		110,712
Noninterest income:
Net gains from sale of loans and other mortgage production income		157,050		131,173		96,139		90,628		116,243
Mortgage loan origination fees		37,782		33,409		21,873		26,615		27,004
Securities commissions and fees		34,426		34,142		35,969		36,984		36,968
Investment and securities advisory fees and commissions		28,685		22,859		20,160		26,260		23,487
Net insurance premiums earned		32,654		33,466		33,203		34,146		34,185
Other		50,804		57,822		45,124		23,883		31,810
Total noninterest income		341,401		312,871		252,468		238,516		269,697
Noninterest expense:
Employees' compensation and benefits		235,197		215,743		189,898		179,881		205,575
Occupancy and equipment, net		27,202		28,219		28,023		30,512		29,015
Professional services		24,346		23,753		22,942		26,793		27,984
Loss and loss adjustment expenses		14,677		24,981		14,926		20,694		18,712
Other		48,687		50,981		53,296		52,939		54,425
Total noninterest expense		350,109		343,677		309,085		310,819		335,711
Income before income taxes		104,457		77,742		51,363		38,486		44,698
Income tax expense		22,750		17,951		11,586		8,928		7,600
Net income		81,707		59,791		39,777		29,558		37,098
Less: Net income attributable to noncontrolling interest		2,289		1,980		991		1,443		1,293
Income attributable to Hilltop	$	79,418	$	57,811	$	38,786	$	28,115	$	35,805
Earnings per common share:
Basic	$	0.87	$	0.62	$	0.41	$	0.30	$	0.38
Diluted	$	0.86	$	0.62	$	0.41	$	0.30	$	0.38
Cash dividends declared per common share	$	0.08	$	0.08	$	0.08	$	0.07	$	0.07
Weighted average shares outstanding:
Basic		91,745		93,399		93,669		94,092		94,554
Diluted		91,824		93,418		93,669		94,130		94,610

	Three Months Ended September 30, 2019
Segment Results					Mortgage						All Other and		Hilltop
(in 000's)	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	97,642	$	13,724	$	(2,725)	$	566	$	(1,384)	$	5,389	$	113,212
Provision (recovery) for loan losses		—		47		—		—		—		—		47
Noninterest income		8,856		107,742		194,857		34,896		460		(5,410)		341,401
Noninterest expense		53,767		94,411		160,634		28,923		12,561		(187)		350,109
Income (loss) before income taxes	$	52,731	$	27,008	$	31,498	$	6,539	$	(13,485)	$	166	$	104,457

	Nine Months Ended September 30, 2019
Segment Results					Mortgage						All Other and		Hilltop
(in 000's)	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	283,755	$	37,984	$	(4,224)	$	1,802	$	(4,045)	$	14,747	$	330,019
Provision (recovery) for loan losses		355		(29)		—		—		—		—		326
Noninterest income		30,219		304,607		477,438		107,539		1,850		(14,913)		906,740
Noninterest expense		172,744		277,088		417,032		98,850		37,397		(240)		1,002,871
Income (loss) before income taxes	$	140,875	$	65,532	$	56,182	$	10,491	$	(39,592)	$	74	$	233,562

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
Selected Financial Data	2019		2019		2019		2018		2018
Hilltop Consolidated:
Return on average stockholders' equity		15.55%		11.63%		8.04%		5.76%		7.41%
Return on average assets		2.26%		1.74%		1.21%		0.86%		1.07%
Net interest margin (1)		3.45%		3.49%		3.69%		3.75%		3.48%
Net interest margin (taxable equivalent) (2):
As reported		3.46%		3.49%		3.70%		3.76%		3.49%
Impact of purchase accounting		26 bps		23 bps		32 bps		43 bps		28 bps
Book value per common share ($)		22.71		21.85		21.23		20.83		20.51
Shares outstanding, end of period (000's)		90,629		92,775		93,821		93,610		94,594
Dividend payout ratio (3)		9.24%		12.92%		19.32%		23.43%		18.48%
Banking Segment:
Net interest margin (1)		3.97%		4.06%		4.24%		4.50%		4.13%
Net interest margin (taxable equivalent) (2):
As reported		3.98%		4.06%		4.25%		4.51%		4.14%
Impact of purchase accounting		35 bps		31 bps		44 bps		61 bps		39 bps
Accretion of discount on loans ($000's)		7,868		6,444		8,735		12,737		8,147
Net charge-offs (recoveries) ($000's)		(380)		2,960		1,628		7,592		1,447
Return on average assets		1.51%		1.43%		1.34%		1.31%		1.19%
Fee income ratio		8.3%		10.3%		10.3%		10.1%		10.7%
Efficiency ratio		50.5%		55.9%		58.8%		56.8%		63.7%
Employees' compensation and benefits ($000's)		31,309		33,050		32,171		31,955		36,878
Broker-Dealer Segment:
Net revenue ($000's) (4)		121,466		116,969		104,157		89,750		95,266
Employees' compensation and benefits ($000's)		69,954		70,333		63,075		54,249		59,535
Variable compensation expense ($000's)		44,921		44,833		34,581		31,744		33,574
Compensation as a % of net revenue		57.6%		60.1%		60.6%		60.4%		62.5%
Pre-tax margin (5)		22.2%		18.9%		15.8%		12.1%		10.4%
Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		3,380,812		3,329,024		2,050,760		2,586,677		3,237,444
Refinancings		1,390,989		631,065		396,282		384,990		416,201
Total mortgage loan originations - volume		4,771,801		3,960,089		2,447,042		2,971,667		3,653,645
Mortgage loan sales - volume ($000's)		4,316,118		3,338,070		2,711,114		3,008,793		4,015,051
Net gains from mortgage loan sales (basis points)		335		333		330		334		330
Mortgage servicing rights asset ($000's) (6)		51,297		53,695		62,049		66,102		68,804
Employees' compensation and benefits ($000's)		123,890		106,449		79,043		84,334		102,025
Variable compensation expense ($000's)		81,287		65,516		38,929		44,529		58,686
Insurance Segment:
Loss and LAE ratio		44.9%		74.6%		45.0%		60.6%		54.7%
Expense ratio		38.3%		38.4%		41.5%		37.9%		38.8%
Combined ratio		83.2%		113.0%		86.5%		98.5%		93.5%
Employees' compensation and benefits ($000's)		2,748		2,784		3,202		2,670		2,595

(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 $0.1 million, $0.2 million, $0.2 million, $0.3 million, and  $0.2 million, respectively, for the periods presented and for the banking segment were $0.1 million, $0.2 million, $0.2 million, $0.2 million, and $0.2 million, respectively,  for each of 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 plus 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	2019		2019		2019		2018		2018
Tier 1 capital (to average assets):
PlainsCapital		11.79%		12.53%		12.61%		12.47%		11.86%
Hilltop		12.67%		13.00%		13.22%		12.53%		12.40%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		13.25%		13.84%		13.89%		13.90%		13.88%
Hilltop		16.15%		16.32%		16.75%		16.58%		16.95%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		13.25%		13.84%		13.89%		13.90%		13.88%
Hilltop		16.58%		16.77%		17.22%		17.04%		17.42%
Total capital (to risk-weighted assets):
PlainsCapital		13.87%		14.48%		14.60%		14.63%		14.63%
Hilltop		16.95%		17.14%		17.64%		17.47%		17.87%

	September 30,		June 30,		March 31,		December 31,		September 30,
Non-Performing Loans Portfolio Data	2019		2019		2019		2018		2018
Loans accounted for on a non-accrual basis ($000's):
Commercial real estate		8,727		5,276		5,332		5,324		7,506
Commercial and industrial		13,313		14,152		13,350		14,870		21,323
Construction and land development		1,358		1,413		1,473		3,278		3,402
1-4 family residential		12,103		11,136		10,662		10,437		4,476
Mortgage warehouse		—		—		—		—		—
Consumer		30		34		38		41		45
Broker-dealer		—		—		—		—		—
Covered		—		—		—		—		5,777
		35,531		32,011		30,855		33,950		42,529
Non-performing loans as a % of total loans		0.38%		0.36%		0.38%		0.41%		0.50%
Other real estate owned ($000's)		18,738		20,753		23,066		27,578		32,518
Other repossessed assets ($000's)		—		—		30		68		99
Non-performing assets ($000's)		54,269		52,764		53,951		61,596		75,146
Non-performing assets as a % of total assets		0.37%		0.37%		0.40%		0.45%		0.55%
Non-PCI loans past due 90 days or more and still accruing ($000's)		81,678		77,425		77,045		83,131		80,664
Troubled debt restructurings included in accruing loans held for investment ($000's)		2,222		2,256		1,313		1,339		1,362

	Three Months Ended September 30,
	2019						2018
	Average		Interest		Annualized		Average		Interest		Annualized
	Outstanding		Earned or		Yield or		Outstanding		Earned or		Yield or
Net Interest Margin (Taxable Equivalent) Details	Balance		Paid		Rate		Balance		Paid		Rate
Assets
Interest-earning assets
Loans held for sale	$	1,754,975	$	18,178	4.14	%	$	1,718,410	$	20,409	4.75	%
Loans held for investment, gross (1)		7,167,169		101,402	5.57	%		6,767,004		93,126	5.41	%
Investment securities - taxable		1,815,454		15,733	3.47	%		1,625,368		11,964	2.94	%
Investment securities - non-taxable (2)		240,595		1,694	2.82	%		250,042		1,950	3.12	%
Federal funds sold and securities purchased under agreements to resell		50,522		251	1.97	%		202,274		956	1.87	%
Interest-bearing deposits in other financial institutions		330,968		1,928	2.31	%		379,160		1,915	2.00	%
Securities borrowed		1,565,608		21,010	5.25	%		1,550,902		16,346	4.12	%
Other		83,379		1,862	8.89	%		89,718		1,879	8.33	%
Interest-earning assets, gross (2)		13,008,670		162,058	4.92	%		12,582,878		148,545	4.66	%
Allowance for loan losses		(55,710)						(61,736)
Interest-earning assets, net		12,952,960						12,521,142
Noninterest-earning assets		1,389,963						1,299,974
Total assets	$	14,342,923					$	13,821,116
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	5,943,901	$	18,887	1.26	%	$	5,608,748	$	12,353	0.87	%
Securities loaned		1,448,345		17,889	4.90	%		1,415,231		13,984	3.92	%
Notes payable and other borrowings		1,605,598		11,968	2.94	%		1,720,823		11,648	2.68	%
Total interest-bearing liabilities		8,997,844		48,744	2.15	%		8,744,802		37,985	1.72	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		2,680,729						2,538,833
Other liabilities		611,337						602,983
Total liabilities		12,289,910						11,886,618
Stockholders’ equity		2,029,511						1,918,977
Noncontrolling interest		23,502						15,521
Total liabilities and stockholders' equity	$	14,342,923					$	13,821,116
Net interest income (2)			$	113,314					$	110,560
Net interest spread (2)					2.77	%					2.94	%
Net interest margin (2)					3.46	%					3.49	%

(1) Average balance includes non-accrual loans.

(2) 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 $0.1 million and $0.2 million for the three months ended September 30, 2019 and 2018, respectively.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday,  November 1, 2019. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review third quarter 2019 financial results. Interested parties can access the conference call by dialing 1-877-508-9457 (domestic) or 1-412-317-0789 (international). 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 Hilltop Securities Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Through Hilltop Holdings’ other wholly owned subsidiary, National Lloyds Corporation, it provides property and casualty insurance through two insurance companies, National Lloyds Insurance Company and American Summit Insurance Company. At September 30, 2019, Hilltop employed approximately 5,000 people and operated approximately 440 locations in 44 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, Nationallloydsinsurance.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 the appropriateness of the allowance for loan losses and provision for loan losses, the estimate of allowance for credit losses pursuant to CECL when adopted, anticipated amendments to the Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019, the impact of the material weakness upon our financial statements, implementation of the remediation plan and 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,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “probable,” “projects,” “seeks,” “should,” “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 loan losses and increases to the allowance for loan losses as a result of the implementation of CECL; (ii) the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (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) risks associated with concentration in real estate related loans; (v) severe catastrophic events in Texas and other areas of the southern United States; and (vi) the remediation of the material weakness may not be effected in a timely manner. 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.