Hilltop (HTH) 8-K Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2019

Exhibit 99.1

Investor Relations Contact:

Erik Yohe

214-525-4634

eyohe@hilltop-holdings.com

Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2019

DALLAS — (BUSINESS WIRE) January 30, 2020 — Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the fourth quarter and full year 2019. Hilltop produced income to common stockholders of $49.3 million, or $0.54 per diluted share, for the fourth quarter of 2019, compared to $28.1 million, or $0.30 per diluted share, for the fourth quarter of 2018. Income to common stockholders for the full year 2019 was $225.3 million, or $2.44 per diluted share, compared to $121.4 million, or $1.28 per diluted share, for the full year 2018.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.09 per common share, a 12.5% increase from the prior quarter, payable on February 28, 2020, to all common stockholders of record as of the close of business on February 14, 2020.  Additionally,  Hilltop paid $73.4 million to repurchase 3,390,247 shares at a weighted average price of $21.64 during 2019, inclusive of privately negotiated transactions. These shares were returned to the pool of authorized but unissued shares of common stock. The Hilltop Board of Directors authorized a new stock repurchase program through January 2021, under which Hilltop may repurchase, in the aggregate, up to $75.0 million of its outstanding common stock. 

Effective January 1, 2020, Hilltop adopted the current expected credit loss model, or CECL, which replaces the current process for estimating allowance for loan losses in its entirety. Our implementation efforts are substantially complete, and based upon the current loan portfolio,  we estimate that the allowance for credit losses will be between $80 million and $100 million, inclusive of the estimate of change in reserve for unfunded commitments of between $6 million and $9 million, as of CECL’s adoption on January 1, 2020. The estimated increase over the current allowance for loan losses is driven by the fact that under CECL the allowance covers expected credit losses over the entire expected life of the loan portfolios and also takes into account forecasts of expected future macroeconomic conditions. This estimated increase, net of tax, will be reflected as a decrease to opening retained earnings at January 1, 2020. While not material, the impact of the adoption of CECL also affects our regulatory capital, performance and other asset quality ratios. 

Jeremy Ford, CEO of Hilltop, said, “The strong results delivered in the fourth quarter capped off a fantastic year for Hilltop, and I credit the collective efforts of  our teammates in the businesses and our holding company. PrimeLending rebounded from a challenging year in 2018 by generating $65 million of pre-tax income in 2019, an increase of $52 million. HilltopSecurities executed on its targeted strategies and grew net revenues by $103 million to $456 million during 2019. PlainsCapital Bank delivered $182 million of pre-tax income in 2019, an increase of $30 million from 2018, by focusing on prudent growth in loans and deposits while maintaining its moderate risk profile and reducing expenses.  National Lloyds’ results reflect improved core operations and lower loss experience during 2019 as it generated $17 million of pre-tax income.”

“In addition to these favorable financial results, we continued to position Hilltop for long-term success by executing on our platform for efficiency and growth initiatives. In 2019, we delivered significant productivity improvements through key technology investments and the addition of talented professionals across our organization. We enter 2020 with strong momentum and focus.”

Fourth Quarter 2019 Highlights for Hilltop:

· Hilltop’s annualized return on average assets and return on average equity for the fourth quarter of 2019 were 1.40% and 9.43%, respectively, compared to 0.86% and 5.76%, respectively, for the fourth quarter of 2018;

· Hilltop’s book value per common share increased to $23.20 at December 31, 2019, compared to $22.71 at September  30, 2019;

· Hilltop’s total assets were $15.2 billion at December 31, 2019, compared to  $14.8 billion at September  30, 2019;

· Loans1, net of allowance for loan losses, remained stable at $6.7 billion compared to September  30, 2019;

· Non-performing loans were $36.1 million, or 0.38% of total loans at December 31, 2019, compared to $35.5 million, or 0.38% of total loans, at September  30, 2019;

· Loans held for sale increased by 6.2% from September  30, 2019 to $2.1 billion at December 31, 2019;

· Total deposits were $9.0 billion at December 31, 2019, compared to $8.7 billion at September  30, 2019;

· Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio2 of 12.71% and a Common Equity Tier 1 Capital Ratio of 16.69% at December 31, 2019;

· Hilltop’s net interest margin3 decreased to 3.30% for the fourth quarter of 2019, compared to 3.45% in the third quarter of 2019;

· The provision for loan losses was $6.9 million during the fourth quarter of 2019, compared to $47 thousand in the third quarter of 2019;  

o The provision for loan losses increased during the fourth quarter 2019 primarily as a result of adjustments to qualitative factors associated with concentrations in the commercial real estate loan portfolio, growth in the overall loan portfolio and the recast of cash flows associated with certain PCI loans

· For the fourth quarter of 2019, noninterest income was $299.3 million, compared to $238.5 million in the fourth quarter of 2018,  a 25.5%  increase;

· For the fourth quarter of 2019, noninterest expense was $336.9 million, compared to $310.8 million in the fourth quarter of 2018, a 8.4%  increase; and

· Hilltop’s effective tax rates were 22.5% and 22.4%  during the fourth quarter and full year of 2019,  respectively, compared to 23.2% and 21.8% during the same periods in 2018.

1  “Loans” reflect loans held for investment excluding broker-dealer loans, net of allowance for loan losses, of $576.5 million and $558.1  million at December 31, 2019 and September  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	December 31,		September 30,		June 30,		March 31,		December 31,
(in 000's)	2019		2019		2019		2019		2018
Cash and due from banks	$	484,959	$	326,129	$	342,001	$	313,192	$	644,073
Federal funds sold		394		423		521		438		400
Assets segregated for regulatory purposes		157,436		83,878		151,271		156,851		133,993
Securities purchased under agreements to resell		59,031		49,998		50,660		65,205		61,611
Securities:
Trading, at fair value		689,576		707,268		601,524		703,295		745,466
Available for sale, at fair value		998,392		1,003,850		1,009,924		1,019,851		875,658
Held to maturity, at amortized cost		386,326		371,361		365,905		369,865		351,012
Equity, at fair value		20,007		19,494		19,592		19,343		19,679
		2,094,301		2,101,973		1,996,945		2,112,354		1,991,815
Loans held for sale		2,106,361		1,984,231		1,609,477		1,059,280		1,393,246
Loans held for investment, net of unearned income		7,381,400		7,321,208		7,202,604		7,011,679		6,930,458
Allowance for loan losses		(61,136)		(55,604)		(55,177)		(58,809)		(59,486)
Loans held for investment, net		7,320,264		7,265,604		7,147,427		6,952,870		6,870,972
Broker-dealer and clearing organization receivables		1,780,280		1,731,979		1,707,249		1,651,199		1,440,287
Premises and equipment, net		219,982		213,757		208,975		210,333		237,373
Operating lease right-of-use assets		117,059		121,838		123,832		108,806		—
Other assets		516,134		633,794		602,143		591,442		580,362
Goodwill		291,435		291,435		291,435		291,435		291,435
Other intangible assets, net		30,155		31,990		33,934		35,965		38,005
Total assets	$	15,177,791	$	14,837,029	$	14,265,870	$	13,549,370	$	13,683,572
Deposits:
Non interest-bearing	$	2,769,556	$	2,732,325	$	2,598,253	$	2,490,144	$	2,560,750
Interest-bearing		6,262,658		5,998,547		5,864,826		5,807,975		5,975,406
Total deposits		9,032,214		8,730,872		8,463,079		8,298,119		8,536,156
Broker-dealer and clearing organization payables		1,605,518		1,546,163		1,531,891		1,490,227		1,294,925
Short-term borrowings		1,424,010		1,502,755		1,338,893		914,525		1,065,807
Securities sold, not yet purchased, at fair value		43,817		59,249		45,447		69,354		81,667
Notes payable		283,769		245,341		231,923		225,372		228,872
Operating lease liabilities		128,402		131,133		132,750		118,452		—
Junior subordinated debentures		67,012		67,012		67,012		67,012		67,012
Other liabilities		464,253		471,077		403,070		351,178		435,240
Total liabilities		13,048,995		12,753,602		12,214,065		11,534,239		11,709,679
Common stock		906		906		928		938		936
Additional paid-in capital		1,445,233		1,441,604		1,473,599		1,491,585		1,489,816
Accumulated other comprehensive income (loss)		11,419		12,305		7,862		(1,062)		(8,627)
Retained earnings		644,860		602,835		544,275		499,452		466,737
Deferred compensation employee stock trust, net		776		789		788		827		825
Employee stock trust		(155)		(170)		(171)		(213)		(217)
Total Hilltop stockholders' equity		2,103,039		2,058,269		2,027,281		1,991,527		1,949,470
Noncontrolling interests		25,757		25,158		24,524		23,604		24,423
Total stockholders' equity		2,128,796		2,083,427		2,051,805		2,015,131		1,973,893
Total liabilities & stockholders' equity	$	15,177,791	$	14,837,029	$	14,265,870	$	13,549,370	$	13,683,572

	Three Months Ended						Year Ended
Consolidated Income Statements	December 31,		September 30,		December 31,		December 31,		December 31,
(in 000's, except per share data)	2019		2019		2018		2019		2018
Interest income:
Loans, including fees	$	115,696	$	119,580	$	119,322	$	460,471	$	436,725
Securities borrowed		16,196		21,010		16,782		69,582		66,914
Securities:
Taxable		16,040		15,764		15,512		62,104		50,975
Tax-exempt		1,572		1,576		1,648		6,159		6,834
Other		3,273		4,026		4,438		16,513		17,980
Total interest income		152,777		161,956		157,702		614,829		579,428
Interest expense:
Deposits		17,480		18,887		14,838		71,509		46,002
Securities loaned		13,989		17,889		13,935		60,086		56,733
Short-term borrowings		6,244		8,166		7,476		26,778		25,816
Notes payable		2,769		2,715		2,627		10,754		10,263
Junior subordinated debentures		909		955		968		3,851		3,663
Other		99		132		143		545		627
Total interest expense		41,490		48,744		39,987		173,523		143,104
Net interest income		111,287		113,212		117,715		441,306		436,324
Provision for loan losses		6,880		47		6,926		7,206		5,088
Net interest income after provision for loan losses		104,407		113,165		110,789		434,100		431,236
Noninterest income:
Net gains from sale of loans and other mortgage production income		120,573		157,050		90,628		504,935		445,116
Mortgage loan origination fees		36,939		37,782		26,615		130,003		103,563
Securities commissions and fees		33,205		34,426		36,984		137,742		150,989
Investment and securities advisory fees and commissions		32,083		28,685		26,260		103,787		90,066
Net insurance premiums earned		32,961		32,654		34,146		132,284		136,751
Other		43,515		50,804		23,883		197,265		96,305
Total noninterest income		299,276		341,401		238,516		1,206,016		1,022,790
Noninterest expense:
Employees' compensation and benefits		215,427		235,197		179,881		856,265		768,688
Occupancy and equipment, net		30,883		27,202		30,512		114,327		115,207
Professional services		25,052		24,346		26,793		96,093		105,752
Loss and loss adjustment expenses		14,356		14,677		20,694		68,940		79,347
Other		51,218		48,687		52,939		204,182		224,255
Total noninterest expense		336,936		350,109		310,819		1,339,807		1,293,249
Income before income taxes		66,747		104,457		38,486		300,309		160,777
Income tax expense		15,045		22,750		8,928		67,332		35,050
Net income		51,702		81,707		29,558		232,977		125,727
Less: Net income attributable to noncontrolling interest		2,426		2,289		1,443		7,686		4,286
Income attributable to Hilltop	$	49,276	$	79,418	$	28,115	$	225,291	$	121,441
Earnings per common share:
Basic	$	0.54	$	0.87	$	0.30	$	2.44	$	1.28
Diluted	$	0.54	$	0.86	$	0.30	$	2.44	$	1.28
Cash dividends declared per common share	$	0.08	$	0.08	$	0.07	$	0.32	$	0.28
Weighted average shares outstanding:
Basic		90,606		91,745		94,092		92,345		94,969
Diluted		90,711		91,824		94,130		92,394		95,067

	Three Months Ended December 31, 2019
Segment Results					Mortgage						All Other and		Hilltop
(in 000's)	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	95,503	$	13,324	$	(2,049)	$	527	$	(1,496)	$	5,478	$	111,287
Provision (recovery) for loan losses		6,926		(46)		—		—		—		—		6,880
Noninterest income		11,534		99,804		157,554		35,543		371		(5,530)		299,276
Noninterest expense		58,779		88,943		146,966		29,068		13,571		(391)		336,936
Income (loss) before income taxes	$	41,332	$	24,231	$	8,539	$	7,002	$	(14,696)	$	339	$	66,747

	Year Ended December 31, 2019
Segment Results					Mortgage						All Other and		Hilltop
(in 000's)	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	379,258	$	51,308	$	(6,273)	$	2,329	$	(5,541)	$	20,225	$	441,306
Provision (recovery) for loan losses		7,280		(74)		—		—		—		—		7,206
Noninterest income		41,753		404,411		634,992		143,082		2,221		(20,443)		1,206,016
Noninterest expense		231,524		366,031		563,998		127,920		50,968		(634)		1,339,807
Income (loss) before income taxes	$	182,207	$	89,762	$	64,721	$	17,491	$	(54,288)	$	416	$	300,309

	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
Selected Financial Data	2019		2019		2018		2019		2018
Hilltop Consolidated:
Return on average stockholders' equity		9.43%		15.55%		5.76%		11.18%		6.33%
Return on average assets		1.40%		2.26%		0.86%		1.66%		0.93%
Net interest margin (1)		3.30%		3.45%		3.75%		3.48%		3.55%
Net interest margin (taxable equivalent) (2):
As reported		3.31%		3.46%		3.76%		3.48%		3.56%
Impact of purchase accounting		19 bps		26 bps		43 bps		25 bps		34 bps
Book value per common share ($)		23.20		22.71		20.83		23.20		20.83
Shares outstanding, end of period (000's)		90,641		90,629		93,610		90,641		93,610
Dividend payout ratio (3)		14.71%		9.24%		23.43%		13.12%		21.90%
Banking Segment:
Net interest margin (1)		3.77%		3.97%		4.50%		4.00%		4.23%
Net interest margin (taxable equivalent) (2):
As reported		3.78%		3.98%		4.51%		4.01%		4.24%
Impact of purchase accounting		25 bps		35 bps		61 bps		33 bps		48 bps
Accretion of discount on loans ($000's)		5,698		7,868		12,737		28,745		39,094
Net charge-offs (recoveries) ($000's)		1,348		(380)		7,592		5,556		9,288
Return on average assets		1.17%		1.51%		1.31%		1.36%		1.23%
Fee income ratio		10.8%		8.3%		10.1%		9.9%		10.5%
Efficiency ratio		54.9%		50.5%		56.8%		55.0%		61.9%
Employees' compensation and benefits ($000's)		31,455		31,309		31,955		127,985		132,086
Broker-Dealer Segment:
Net revenue ($000's) (4)		113,128		121,466		89,750		455,719		352,592
Employees' compensation and benefits ($000's)		64,301		69,954		54,249		267,663		218,467
Variable compensation expense ($000's)		39,505		44,921		31,744		163,840		115,948
Compensation as a % of net revenue		56.8%		57.6%		60.4%		58.7%		62.0%
Pre-tax margin (5)		21.4%		22.2%		12.1%		19.7%		9.2%
Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		2,958,176		3,380,812		2,586,677		11,718,772		11,798,804
Refinancings		1,442,329		1,390,989		384,990		3,860,665		1,893,680
Total mortgage loan originations - volume		4,400,505		4,771,801		2,971,667		15,579,437		13,692,484
Mortgage loan sales - volume ($000's)		4,226,425		4,316,118		3,008,793		14,591,727		13,735,885
Net gains from mortgage loan sales (basis points):
As reported		304		335		334		324		328
Impact of sales to banking segment		(8)		(1)		0		(3)		0
Mortgage servicing rights asset ($000's) (6)		55,504		51,297		66,102		55,504		66,102
Employees' compensation and benefits ($000's)		109,753		123,890		84,334		419,135		389,131
Variable compensation expense ($000's)		67,224		81,287		44,529		252,956		216,038
Insurance Segment:
Loss and LAE ratio		43.6%		44.9%		60.6%		52.1%		58.0%
Expense ratio		40.5%		38.3%		37.9%		39.7%		39.0%
Combined ratio		84.1%		83.2%		98.5%		91.8%		97.0%
Employees' compensation and benefits ($000's)		2,929		2,748		2,670		11,663		11,474

(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, $0.1 million, $0.3 million, $0.6 million, and $0.9 million, respectively, for the periods presented and for the banking segment were $0.1 million, $0.1 million, $0.2 million, $0.6 million, and $0.8 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.

	December 31,		September 30,		June 30,		March 31,		December 31,
Capital Ratios	2019		2019		2019		2019		2018
Tier 1 capital (to average assets):
PlainsCapital		11.61%		11.79%		12.53%		12.61%		12.47%
Hilltop		12.71%		12.67%		13.00%		13.22%		12.53%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		13.45%		13.25%		13.84%		13.89%		13.90%
Hilltop		16.69%		16.15%		16.32%		16.75%		16.58%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		13.45%		13.25%		13.84%		13.89%		13.90%
Hilltop		17.13%		16.58%		16.77%		17.22%		17.04%
Total capital (to risk-weighted assets):
PlainsCapital		14.13%		13.87%		14.48%		14.60%		14.63%
Hilltop		17.55%		16.95%		17.14%		17.64%		17.47%

	December 31,		September 30,		June 30,		March 31,		December 31,
Non-Performing Loans Portfolio Data	2019		2019		2019		2019		2018
Loans accounted for on a non-accrual basis ($000's):
Commercial real estate		7,308		8,727		5,276		5,332		5,324
Commercial and industrial		15,262		13,313		14,152		13,350		14,870
Construction and land development		1,316		1,358		1,413		1,473		3,278
1-4 family residential		12,204		12,103		11,136		10,662		10,437
Mortgage warehouse		—		—		—		—		—
Consumer		26		30		34		38		41
Broker-dealer		—		—		—		—		—
		36,116		35,531		32,011		30,855		33,950
Non-performing loans as a % of total loans		0.38%		0.38%		0.36%		0.38%		0.41%
Other real estate owned ($000's)		18,202		18,738		20,753		23,066		27,578
Other repossessed assets ($000's)		—		—		—		30		68
Non-performing assets ($000's)		54,318		54,269		52,764		53,951		61,596
Non-performing assets as a % of total assets		0.36%		0.37%		0.37%		0.40%		0.45%
Non-PCI loans past due 90 days or more and still accruing ($000's)		102,707		81,678		77,425		77,045		83,131
Troubled debt restructurings included in accruing loans held for investment ($000's)		2,173		2,222		2,256		1,313		1,339

	Three Months Ended December 31,
	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	$	1,914,703	$	19,124	4.00	%	$	1,286,668	$	15,273	4.75	%
Loans held for investment, gross (1)		7,258,086		96,572	5.24	%		6,946,355		104,049	5.90	%
Investment securities - taxable		1,871,993		16,011	3.42	%		1,820,088		15,482	3.40	%
Investment securities - non-taxable (2)		244,378		1,763	2.89	%		229,533		1,861	3.24	%
Federal funds sold and securities purchased under agreements to resell		68,278		228	1.32	%		136,492		535	1.55	%
Interest-bearing deposits in other financial institutions		325,984		1,408	1.71	%		410,942		2,400	2.32	%
Securities borrowed		1,589,465		16,196	3.99	%		1,537,619		16,782	4.27	%
Other		87,188		1,654	7.55	%		68,646		1,514	8.77	%
Interest-earning assets, gross (2)		13,360,075		152,956	4.52	%		12,436,343		157,896	5.01	%
Allowance for loan losses		(56,124)						(59,912)
Interest-earning assets, net		13,303,951						12,376,431
Noninterest-earning assets		1,367,971						1,338,890
Total assets	$	14,671,922					$	13,715,321
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	6,100,621	$	17,480	1.14	%	$	5,800,152	$	14,838	1.01	%
Securities loaned		1,487,288		13,989	3.73	%		1,419,680		13,935	3.89	%
Notes payable and other borrowings		1,526,567		10,021	2.59	%		1,401,984		11,214	3.17	%
Total interest-bearing liabilities		9,114,476		41,490	1.80	%		8,621,816		39,987	1.84	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		2,789,662						2,565,607
Other liabilities		670,701						565,897
Total liabilities		12,574,839						11,753,320
Stockholders’ equity		2,072,865						1,939,010
Noncontrolling interest		24,218						22,991
Total liabilities and stockholders' equity	$	14,671,922					$	13,715,321
Net interest income (2)			$	111,466					$	117,909
Net interest spread (2)					2.72	%					3.17	%
Net interest margin (2)					3.31	%					3.76	%

	Year Ended December 31,
	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	$	1,501,154	$	64,830	4.32	%	$	1,472,772	$	68,536	4.65	%
Loans held for investment, gross (1)		7,088,208		395,641	5.58	%		6,601,453		368,189	5.58	%
Investment securities - taxable		1,803,622		61,983	3.44	%		1,680,976		50,860	3.03	%
Investment securities - non-taxable (2)		233,713		6,803	2.91	%		247,651		7,752	3.13	%
Federal funds sold and securities purchased under agreements to resell		63,598		1,236	1.94	%		189,183		2,831	1.50	%
Interest-bearing deposits in other financial institutions		371,312		8,469	2.28	%		459,628		8,683	1.89	%
Securities borrowed		1,550,322		69,582	4.49	%		1,542,539		66,914	4.34	%
Other		75,298		6,869	9.12	%		74,684		6,535	8.75	%
Interest-earning assets, gross (2)		12,687,227		615,413	4.85	%		12,268,886		580,300	4.73	%
Allowance for loan losses		(57,690)						(62,681)
Interest-earning assets, net		12,629,537						12,206,205
Noninterest-earning assets		1,397,647						1,288,718
Total assets	$	14,027,184					$	13,494,923
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	5,916,491	$	71,509	1.21	%	$	5,568,473	$	46,002	0.83	%
Securities loaned		1,423,847		60,086	4.22	%		1,395,947		56,733	4.06	%
Notes payable and other borrowings		1,398,559		41,928	3.00	%		1,477,966		40,369	2.73	%
Total interest-bearing liabilities		8,738,897		173,523	1.99	%		8,442,386		143,104	1.70	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		2,635,924						2,504,599
Other liabilities		614,392						617,227
Total liabilities		11,989,213						11,564,212
Stockholders’ equity		2,014,535						1,919,940
Noncontrolling interest		23,436						10,771
Total liabilities and stockholders' equity	$	14,027,184					$	13,494,923
Net interest income (2)			$	441,890					$	437,196
Net interest spread (2)					2.86	%					3.03	%
Net interest margin (2)					3.48	%					3.56	%

(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 $0.3 million for the three months ended December 31, 2019 and 2018, respectively, and $0.6 million and $0.9 million for the year ended December 31, 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,  January 31, 2020. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review fourth quarter and full year 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 December 31, 2019,  Hilltop employed approximately 4,950 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 estimate of allowance for credit losses pursuant to CECL when adopted 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.