Hilltop Holdings Inc. (NYSE:HTH) ("Hilltop") today announced financial results for the first quarter 2023. Hilltop produced income to common stockholders of $25.8 million, or $0.40 per diluted share, for the first quarter of 2023, compared to $22.3 million, or $0.28 per diluted share, for the first quarter of 2022. Hilltop's financial results for the first quarter of 2023 included significant decreases in year-over-year mortgage origination segment net gains from sales of loans and other mortgage production income, increases in net revenues within certain of the broker-dealer segment's business lines, and an increase in net interest income within the banking segment.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.16 per common share, payable on May 25, 2023, to all common stockholders of record as of the close of business on May 10, 2023. Additionally, during the first quarter of 2023, Hilltop paid $4.5 million to repurchase an aggregate of 144,403 shares of its common stock at an average price of $31.15 per share pursuant to the 2023 stock repurchase program. These shares were returned to the pool of authorized but unissued shares of common stock.

Headwinds beginning in 2022, including the impact of tight housing inventories on mortgage volumes, declining deposit balances, rapid increases in market interest rates and a declining economic forecast have had, and are expected to continue to have, an adverse impact on our operating results during 2023. The impacts of such headwinds in 2023 remain uncertain and will depend on developments outside of our control, including, among others, timing and significance of further changes in U.S. treasury yields and mortgage interest rates, exposure to increasing funding costs, inflationary pressures associated with compensation, occupancy and software costs and labor market conditions, the Russian-Ukraine conflict and its impact on supply chains, and disruptions to the economy and the U.S. banking system caused by recent bank failures.

Jeremy B. Ford, President and CEO of Hilltop, said "In the face of heightened stress within the banking landscape, Hilltop's prudent and long-term oriented management of our balance sheet provided our customers and stockholders with confidence given our excess capital levels and robust liquidity position. We will continue to prioritize the health and soundness of our balance sheet through this economic cycle. I want to thank our management teams across Hilltop for their judicious management of liquidity, capital and expenses leading up to this quarter.

"During the first quarter of 2023, PlainsCapital Bank benefited from an increase in interest income due to the higher interest rate environment, while actively managing the rising cost of deposits to maintain current net interest margin levels. PrimeLending continues to be negatively impacted by compression in its gain-on-sale margin and a decline in mortgage loan origination volume. Finally, HilltopSecurities' net revenue growth was driven by higher interest rates on sweep deposit balances and an increase in trading gains within its structured finance and fixed income services business lines."

First Quarter 2023 Highlights for Hilltop:

The provision for credit losses was $2.3 million during the first quarter of 2023, compared to a provision for credit losses of $3.6 million in the fourth quarter of 2022 and a provision for credit losses of $0.1 million in the first quarter of 2022;
- The provision for credit losses during the first quarter of 2023 reflected a build in the allowance related to loan portfolio changes since the prior quarter, offset by an updated economic outlook with a mild U.S. recession from fourth quarter of 2023 and recovery from the third quarter of 2024 compared to prior quarter's U.S. recession assumption during the last three quarters of 2023.
For the first quarter of 2023, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within our mortgage origination segment was $68.7 million, compared to $143.0 million in the first quarter of 2022, a 51.9% decrease;
- Mortgage loan origination production volume was $1.7 billion during the first quarter of 2023, compared to $3.8 billion in the first quarter of 2022;
- Net gains from mortgage loans sold to third parties decreased to 193 basis points during the first quarter of 2023, compared to 211 basis points in the fourth quarter of 2022.
Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for the first quarter of 2023 were 0.69% and 5.12%, respectively, compared to 0.53% and 3.60%, respectively, for the first quarter of 2022;
Hilltop's book value per common share increased to $31.63 at March 31, 2023, compared to $31.49 at December 31, 2022;
Hilltop's total assets were $17.0 billion and $16.3 billion at March 31, 2023 and December 31, 2022, respectively;
Loans¹, net of allowance for credit losses, were $7.7 billion and $7.6 billion at March 31, 2023 and December 31, 2022, respectively;
Non-performing loans were $27.4 million, or 0.30% of total loans, at March 31, 2023, compared to $30.3 million, or 0.33% of total loans, at December 31, 2022;
Loans held for sale increased by 5.9% from December 31, 2022 to $1.0 billion at March 31, 2023;
Total deposits were $11.1 billion and $11.3 billion at March 31, 2023 and December 31, 2022, respectively;
Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 11.82% and a Common Equity Tier 1 Capital Ratio of 17.99% at March 31, 2023;
Hilltop's consolidated net interest margin⁴increased to 3.28% for the first quarter of 2023, compared to 3.23% in the fourth quarter of 2022;
For the first quarter of 2023, noninterest income was $162.5 million, compared to $216.4 million in the first quarter of 2022, a 24.9% decrease;
For the first quarter 2023, noninterest expense was $250.5 million, compared to $286.4 million in the first quarter of 2022, a 12.5% decrease; and
Hilltop's effective tax rate was 11.6% during the first quarter of 2023, compared to 19.4% during the same period in 2022.
- The effective tax rate for the first quarter of 2023 was lower than the applicable statutory rate primarily due to the impacts of excess tax benefits on share-based payment awards, investments in tax-exempt instruments and changes in accumulated tax reserves, partially offset by nondeductible expenses.

_____________________________
¹	"Loans" reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $360.6 million and $431.0 million at March 31, 2023 and December 31, 2022, respectively.
²	Capital ratios reflect Hilltop's decision to elect the transition option as issued by the federal banking regulatory agencies in March 2020 that permits banking institutions to mitigate the estimated cumulative regulatory capital effects from CECL over a five-year transitionary period.
³	Based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets.
⁴	Net interest margin is defined as net interest income divided by average interest-earning assets.

Consolidated Financial and Other Information


Consolidated Balance Sheets	March 31,			December 31,			September 30,			June 30,			March 31,
(in 000's)		2023			2022			2022			2022			2022
Cash and due from banks	$	1,764,081		$	1,579,512		$	1,777,584		$	1,783,554		$	2,886,812
Federal funds sold		743			650			663			381			383
Assets segregated for regulatory purposes		36,199			67,737			109,358			120,816			128,408
Securities purchased under agreements to resell		144,201			118,070			145,365			139,929			256,991
Securities:
Trading, at fair value		692,908			755,032			641,864			593,273			471,763
Available for sale, at fair value, net ⁽¹⁾		1,641,571			1,658,766			1,584,724			1,562,222			1,462,340
Held to maturity, at amortized cost, net ⁽¹⁾		862,280			875,532			889,452			920,583			953,107
Equity, at fair value		231			200			209			197			225
		3,196,990			3,289,530			3,116,249			3,076,275			2,887,435
Loans held for sale		1,040,138			982,616			1,003,605			1,491,579			1,643,994
Loans held for investment, net of unearned income		8,192,846			8,092,673			7,944,246			7,930,619			7,797,903
Allowance for credit losses		(97,354	)		(95,442	)		(91,783	)		(95,298	)		(91,185	)
Loans held for investment, net		8,095,492			7,997,231			7,852,463			7,835,321			7,706,718

Broker-dealer and clearing organization receivables		1,560,246			1,038,055			1,255,052			1,049,830			1,610,352
Premises and equipment, net		180,132			184,950			191,423			195,361			198,906
Operating lease right-of-use assets		100,122			102,443			103,099			106,806			108,180
Mortgage servicing assets		103,314			100,825			156,539			121,688			100,475
Other assets		529,438			518,899			624,235			513,570			546,622
Goodwill		267,447			267,447			267,447			267,447			267,447
Other intangible assets, net		10,544			11,317			12,209			13,182			14,233
Total assets	$	17,029,087		$	16,259,282		$	16,615,291		$	16,715,739		$	18,356,956

Deposits:
Noninterest-bearing	$	3,807,878		$	3,968,862		$	4,546,816		$	4,601,643		$	4,694,592
Interest-bearing		7,289,269			7,346,887			6,805,198			7,319,143			7,972,110
Total deposits		11,097,147			11,315,749			11,352,014			11,920,786			12,666,702
Broker-dealer and clearing organization payables		1,383,317			966,470			1,176,156			934,818			1,397,836
Short-term borrowings		1,572,794			970,056			942,309			822,649			835,054
Securities sold, not yet purchased, at fair value		51,497			53,023			99,515			135,968			97,629
Notes payable		376,410			346,654			390,354			389,722			395,479
Operating lease liabilities		122,878			126,759			120,635			124,406			125,919
Other liabilities		341,246			417,042			475,425			329,987			347,742
Total liabilities		14,945,289			14,195,753			14,556,408			14,658,336			15,866,361

Common stock		650			647			646			646			794
Additional paid-in capital		1,044,774			1,046,331			1,043,605			1,039,261			1,275,649
Accumulated other comprehensive loss		(125,461	)		(133,531	)		(119,864	)		(95,279	)		(80,565	)
Retained earnings		1,136,901			1,123,636			1,107,586			1,085,208			1,267,415
Deferred compensation employee stock trust, net		446			481			479			695			744
Employee stock trust		(599	)		(640	)		(641	)		(954	)		(104	)
Total Hilltop stockholders' equity		2,056,711			2,036,924			2,031,811			2,029,577			2,463,933
Noncontrolling interests		27,087			26,605			27,072			27,826			26,662
Total stockholders' equity		2,083,798			2,063,529			2,058,883			2,057,403			2,490,595
Total liabilities & stockholders' equity	$	17,029,087		$	16,259,282		$	16,615,291		$	16,715,739		$	18,356,956

_____________________________
(1)	At March 31, 2023, the amortized cost of the available for sale securities portfolio was $1,758,339, while the fair value of the held to maturity securities portfolio was $785,380.


	Three Months Ended
Consolidated Income Statements	March 31,		December 31,		September 30,			June 30,		March 31,
(in 000's, except per share data)		2023		2022		2022			2022		2022
Interest income:
Loans, including fees	$	123,379	$	117,906	$	109,165		$	98,728	$	90,408
Securities borrowed		17,068		14,162		10,938			10,498		8,817
Securities:
Taxable		25,602		23,293		19,642			17,288		15,581
Tax-exempt		3,188		3,002		2,451			2,141		2,419
Other		22,190		21,611		14,276			6,478		2,312
Total interest income		191,427		179,974		156,472			135,133		119,537

Interest expense:
Deposits		35,824		28,238		12,525			5,456		4,193
Securities loaned		15,346		13,179		9,407			8,512		7,472
Short-term borrowings		12,444		10,278		5,550			3,020		2,045
Notes payable		3,853		3,988		3,907			3,809		4,437
Other		2,255		849		1,597			2,280		1,399
Total interest expense		69,722		56,532		32,986			23,077		19,546

Net interest income		121,705		123,442		123,486			112,056		99,991
Provision for (reversal of) credit losses		2,331		3,638		(780	)		5,336		115
Net interest income after provision for (reversal of) credit losses		119,374		119,804		124,266			106,720		99,876

Noninterest income:
Net gains from sale of loans and other mortgage production income		39,966		35,949		57,998			97,543		110,894
Mortgage loan origination fees		28,777		35,198		39,960			42,378		32,062
Securities commissions and fees		31,223		33,143		34,076			34,757		37,146
Investment and securities advisory fees and commissions		26,848		30,661		35,031			32,002		29,705
Other		35,680		34,833		39,910			32,593		6,621
Total noninterest income		162,494		169,784		206,975			239,273		216,428

Noninterest expense:
Employees' compensation and benefits		167,817		167,892		200,450			205,327		200,019
Occupancy and equipment, net		22,865		23,077		25,041			24,231		24,766
Professional services		10,697		11,555		10,631			16,246		10,063
Other		49,091		50,844		52,616			52,739		51,502
Total noninterest expense		250,470		253,368		288,738			298,543		286,350

Income before income taxes		31,398		36,220		42,503			47,450		29,954
Income tax expense		3,630		9,642		9,249			12,127		5,815
Net income		27,768		26,578		33,254			35,323		24,139
Less: Net income attributable to noncontrolling interest		1,968		1,022		1,186			2,063		1,889
Income attributable to Hilltop	$	25,800	$	25,556	$	32,068		$	33,260	$	22,250

Earnings per common share:
Basic:	$	0.40	$	0.40	$	0.50		$	0.45	$	0.28
Diluted:	$	0.40	$	0.39	$	0.50		$	0.45	$	0.28

Cash dividends declared per common share	$	0.16	$	0.15	$	0.15		$	0.15	$	0.15

Weighted average shares outstanding:
Basic		64,901		64,602		64,552			73,693		79,114
Diluted		64,954		64,779		64,669			73,838		79,356


	Three Months Ended March 31, 2023
Segment Results					Mortgage						All Other and			Hilltop
(in 000's)	Banking		Broker-Dealer		Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	104,770	$	13,863	$	(4,208	)	$	(3,322	)	$	10,602		$	121,705
Provision for (reversal of) credit losses		1,600		731		—			—			—			2,331
Noninterest income		11,190		90,635		68,829			2,704			(10,864	)		162,494
Noninterest expense		56,127		90,345		88,753			15,513			(268	)		250,470
Income (loss) before taxes	$	58,233	$	13,422	$	(24,132	)	$	(16,131	)	$	6		$	31,398


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Selected Financial Data	2023			2022			2022			2022			2022

Hilltop Consolidated:
Return on average stockholders' equity		5.12	%		4.99	%		6.26	%		5.82	%		3.60	%
Return on average assets		0.69	%		0.63	%		0.79	%		0.80	%		0.53	%
Net interest margin ⁽¹⁾		3.28	%		3.23	%		3.19	%		2.75	%		2.36	%
Net interest margin (taxable equivalent) ⁽²⁾:
As reported		3.28	%		3.24	%		3.20	%		2.76	%		2.37	%
Impact of purchase accounting		6 bps			7 bps			8 bps			8 bps			7 bps
Book value per common share ($)		31.63			31.49			31.46			31.43			31.02
Shares outstanding, end of period (000's)		65,023			64,685			64,591			64,576			79,439
Dividend payout ratio ⁽³⁾		40.25	%		37.92	%		30.19	%		33.33	%		53.57	%

Banking Segment:
Net interest margin ⁽¹⁾		3.40	%		3.42	%		3.42	%		2.97	%		2.65	%
Net interest margin (taxable equivalent)⁽²⁾:
As reported		3.41	%		3.43	%		3.43	%		2.98	%		2.65	%
Impact of purchase accounting		7 bps			8 bps			10 bps			10 bps			8 bps
Accretion of discount on loans ($000's)		1,870			2,173			2,858			3,011			2,510
Net recoveries (charge-offs) ($000's)		(419	)		21			(2,735	)		(1,223	)		(282	)
Return on average assets		1.44	%		1.31	%		1.41	%		1.09	%		0.98	%
Fee income ratio		9.6	%		9.8	%		9.9	%		11.0	%		12.2	%
Efficiency ratio		48.4	%		48.9	%		48.9	%		50.4	%		55.7	%
Employees' compensation and benefits ($000's)		32,681			34,526			35,934			33,554			33,517

Broker-Dealer Segment:
Net revenue ($000's) ⁽⁴⁾		104,498			106,919			114,184			100,229			72,209
Employees' compensation and benefits ($000's)		62,429			60,552			70,274			64,494			55,825
Variable compensation expense ($000's)		30,821			32,042			42,567			37,471			26,625
Compensation as a % of net revenue		59.7	%		56.6	%		61.5	%		64.3	%		77.3	%
Pre-tax margin ⁽⁵⁾		12.8	%		18.5	%		15.3	%		9.1	%		(11.9	)%

Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		1,607,330			1,895,731			2,832,136			3,342,103			2,753,031
Refinancings		125,423			147,511			211,075			467,117			1,011,452
Total mortgage loan originations - volume		1,732,753			2,043,242			3,043,211			3,809,220			3,764,483
Mortgage loan sales - volume ($000's)		1,661,521			2,038,990			3,419,950			3,872,935			3,868,596
Net gains from mortgage loan sales (basis points):
Loans sold to third parties		193			211			227			260			321
Impact of loans retained by banking segment		(7	)		(19	)		(9	)		(7	)		(9	)
As reported		186			192			218			253			312
Mortgage servicing rights asset ($000's) ⁽⁶⁾		103,314			100,825			156,539			121,688			100,475
Employees' compensation and benefits ($000's)		62,355			64,940			86,079			100,206			102,748
Variable compensation expense ($000's)		25,573			26,724			44,312			56,525			56,243

_____________________________
(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, $0.3 million, $0.4 million, $0.4 million and $0.5 million, respectively, for the periods presented and for the banking segment were $0.2 million 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 and 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.


	March 31,			December 31,			September 30,			June 30,			March 31,
Capital Ratios	2023			2022			2022			2022			2022
Tier 1 capital (to average assets):
PlainsCapital		10.69	%		10.26	%		10.29	%		9.67	%		9.74	%
Hilltop		11.82	%		11.47	%		11.41	%		10.53	%		12.46	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		14.97	%		14.98	%		14.68	%		14.65	%		15.37	%
Hilltop		17.99	%		18.23	%		17.45	%		17.24	%		21.27	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		14.97	%		14.98	%		14.68	%		14.65	%		15.37	%
Hilltop		17.99	%		18.23	%		17.45	%		17.24	%		21.27	%
Total capital (to risk-weighted assets):
PlainsCapital		15.94	%		15.91	%		15.54	%		15.55	%		16.18	%
Hilltop		20.75	%		20.98	%		20.07	%		19.90	%		23.85	%


	March 31,			December 31,			September 30,			June 30,			March 31,
Non-Performing Assets Portfolio Data	2023			2022			2022			2022			2022
Loans accounted for on a non-accrual basis ($000's):
Commercial real estate		1,973			4,269			4,735			4,947			6,153
Commercial and industrial		10,807			9,095			12,078			13,315			18,486
Construction and land development		199			198			1			1			1
1-4 family residential		14,387			15,941			16,968			16,542			18,723
Consumer		12			14			16			19			21
Broker-dealer		—			—			—			—			—
		27,378			29,517			33,798			34,824			43,384
Troubled debt restructurings included in accruing loans held for investment ($000's)⁽¹⁾		—			803			825			857			890
Non-performing loans ($000's) ⁽¹⁾		27,378			30,320			34,623			35,681			44,274

Non-performing loans as a % of total loans ($000's) ⁽¹⁾		0.30	%		0.33	%		0.39	%		0.38	%		0.47	%

Other real estate owned ($000's)		3,202			2,325			1,637			1,516			2,175

Other repossessed assets ($000's)		—			—			—			—			—

Non-performing assets ($000's) ⁽¹⁾		30,580			32,645			36,260			37,197			46,449

Non-performing assets as a % of total assets ($000's) ⁽¹⁾		0.18	%		0.20	%		0.22	%		0.22	%		0.25	%

Loans past due 90 days or more and still accruing ($000's) ⁽²⁾		114,523			92,099			96,532			82,410			87,489

_____________________________
(1)	Effective January 1, 2023, we adopted Accounting Standards Update ("ASU") 2022-02 which eliminated the recognition and measurement guidance on troubled debt restructurings for creditors. Therefore, we no longer present troubled debt restructurings as a component of non-performing loans and assets.
(2)	Loans past due 90 days or more and still accruing were primarily comprised of loans held for sale and guaranteed by U.S. government agencies, including loans that are subject to repurchase, or have been repurchased, by PrimeLending.


	Three Months Ended March 31,
	2023								2022
	Average			Interest			Annualized		Average			Interest			Annualized
	Outstanding			Earned			Yield or		Outstanding			Earned			Yield or
Net Interest Margin (Taxable Equivalent) Details ⁽¹⁾	Balance			or Paid			Rate		Balance			or Paid			Rate
Assets
Interest-earning assets
Loans held for sale	$	815,393		$	10,724	)	5.26	%	$	1,467,998		$	11,966	)	3.26	%
Loans held for investment, gross ⁽²⁾		7,894,668			112,655		5.79	%		7,839,047			78,442		4.06	%
Investment securities - taxable		2,813,734			25,602		3.64	%		2,768,849			15,581		2.25	%
Investment securities - non-taxable ⁽³⁾		412,543			3,286		3.19	%		324,084			2,888		3.56	%
Federal funds sold and securities purchased under agreements to resell		163,601			2,368		5.87	%		157,313			136		0.35	%
Interest-bearing deposits in other financial institutions		1,480,323			16,116		4.42	%		3,116,369			1,427		0.19	%
Securities borrowed		1,419,797			17,068		4.81	%		1,455,166			8,817		2.42	%
Other		63,219			3,706		23.77	%		54,602			750		5.57	%
Interest-earning assets, gross ⁽³⁾		15,063,278			191,525		5.16	%		17,183,428			120,007		2.83	%
Allowance for credit losses		(97,060	)							(92,239	)
Interest-earning assets, net		14,966,218								17,091,189
Noninterest-earning assets		1,336,908								1,401,584
Total assets	$	16,303,126							$	18,492,773

Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	7,239,556		$	35,824		2.01	%	$	8,201,824		$	4,193		0.21	%
Securities loaned		1,323,857			15,346		4.70	%		1,371,816			7,472		2.21	%
Notes payable and other borrowings		1,490,075			18,552		5.05	%		1,249,222			7,881		2.56	%
Total interest-bearing liabilities		10,053,488			69,722		2.81	%		10,822,862			19,546		0.73	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		3,789,757								4,507,661
Other liabilities		390,107								631,790
Total liabilities		14,233,352								15,962,313
Stockholders' equity		2,043,157								2,504,383
Noncontrolling interest		26,617								26,077
Total liabilities and stockholders' equity	$	16,303,126							$	18,492,773

Net interest income ⁽³⁾				$	121,803							$	100,461
Net interest spread ⁽³⁾							2.35	%							2.10	%
Net interest margin ⁽³⁾							3.28	%							2.37	%

_____________________________
(1)	Information presented on a consolidated basis.
(2)	Average balance includes non-accrual loans.
(3)	Presented on a taxable-equivalent basis with annualized taxable equivalent adjustments based on the applicable 21% federal income tax rate for the periods presented. The adjustment to interest income was $0.1 million and $0.5 million for the three months ended March 31, 2023 and 2022, respectively.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, April 21, 2023. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review first quarter 2023 financial results. Interested parties can access the conference call by dialing 1-833-470-1428 (United States), 1-833-950-0062 (Canada) or 1-929-526-1599 (all other locations) and then using the access code 485855. 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 Momentum Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. At March 31, 2023, Hilltop employed approximately 4,100 people and operated approximately 355 locations in 47 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 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 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," "continue," "could," "drive," "estimates," "expects," "extent," "focus," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plan," "position," "probable," "progressing," "projects," "prudent," "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 credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (ii) effectiveness of our data security controls in the face of cyber attacks; (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) changes in the interest rate environment; (v) risks associated with concentration in real estate related loans; and (vi) disruptions to the economy and the U.S. banking system caused by recent bank failures, risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators, including increases in the cost of our deposit insurance assessments. 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.

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Hilltop Holdings Inc. Announces Financial Results for First Quarter 2023