Hilltop Holdings Inc. (NYSE:HTH) ("Hilltop") today announced financial results for the fourth quarter and full year 2021. Hilltop produced income from continuing operations to common stockholders of $62.2 million, or $0.78 per diluted share, for the fourth quarter of 2021, compared to $112.7 million, or $1.30 per diluted share, for the fourth quarter of 2020. Income from continuing operations to common stockholders for the full year 2021 was $374.5 million, or $4.61 per diluted share, compared to $409.4 million, or $4.58 per diluted share, for the full year 2020. Hilltop's financial results from continuing operations for the fourth quarter and full year 2021 included decreases in year-over-year mortgage origination segment net gains from sales of loans and other mortgage production income as well as declines in net revenues within the broker-dealer segment's structured finance business and fixed income services lines, partially offset by improvements in the macroeconomic outlook and resulting beneficial impact on loan expected loss rates within the banking segment.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.15 per common share, a 25% increase from the prior quarter, payable on February 28, 2022, to all common stockholders of record as of the close of business on February 15, 2022. Additionally, during 2021, Hilltop paid $123.6 million to repurchase approximately 3.63 million shares of its common stock at an average price of $34.01 per share pursuant to the 2021 stock repurchase program. 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 2023, under which Hilltop may repurchase, in the aggregate, up to $100.0 million of its outstanding common stock.

The COVID-19 pandemic has adversely impacted financial markets and overall economic conditions, and is expected to continue to have implications on our business and operations. The extent of the impact of the pandemic on our operational and financial performance for 2022 is currently uncertain and will depend on certain developments outside of our control, including, among others, the ongoing distribution and effectiveness of vaccines, the emergence of new variants of the virus, government stimulus, the ultimate impact of the pandemic on our customers and clients, and additional, or extended, federal, state and local government orders and regulations that might be imposed in response to the pandemic.

Jeremy B. Ford, President and CEO of Hilltop, said, "I am pleased to announce Hilltop's 2021 strong performance that represents a second consecutive year of outstanding results. Once again, Hilltop generated consolidated annual pre-tax income above $500 million, return on average assets above 2%, return on average equity above 15% and growth in book value per share above 12%. This exceptional financial performance was primarily the result of strong execution by our talented employees, prudent leadership from our experienced management teams, and a commitment to serve our customers and the communities in which they live. PlainsCapital Bank realized further improvement in the quality of its loan portfolio, while expanding business sourcing efforts and the recruitment of talented lending teams. PrimeLending once again originated nearly $23 billion in mortgages, which is a reflection of a well-tuned platform. For the year, Hilltop Securities produced net revenue of $424 million. While the fourth quarter was challenging, Hilltop Securities has an improved infrastructure and a talented team to drive towards a successful 2022."

Fourth Quarter 2021 Highlights for Hilltop:

The reversal of credit losses was $18.6 million during the fourth quarter of 2021, compared to a reversal of credit losses of $5.8 million in the third quarter of 2021;
- The reversal of credit losses during the fourth quarter of 2021 primarily reflected improvements in both macroeconomic forecast assumptions and credit quality metrics.
For the fourth quarter of 2021, net gains from sale of loans and other mortgage production income and mortgage loan origination fees within our mortgage origination segment was $192.0 million, compared to $297.6 million in the fourth quarter of 2020, a 35.5% decrease;
- Mortgage loan origination production volume was $5.0 billion during the fourth quarter of 2021, compared to $6.8 billion in the fourth quarter of 2020;
- Net gains from mortgage loans sold to third parties increased to 362 basis points during the fourth quarter of 2021, compared to 359 basis points in the third quarter of 2021.
Hilltop's consolidated annualized return on average assets and return on average equity for the fourth quarter of 2021 were 1.41% and 9.93%, respectively, compared to 2.83% and 20.56%, respectively, for the fourth quarter of 2020;
Hilltop's book value per common share increased to $31.95 at December 31, 2021, compared to $31.36 at September 30, 2021;
Hilltop's total assets were $18.7 billion and $18.0 billion at December 31, 2021 and September 30, 2021, respectively;
Loans¹, net of allowance for credit losses, increased to $7.1 billion at December 31, 2021 compared to $6.8 billion at September 30, 2021;
- Includes supporting our impacted banking clients through funding of over 4,100 loans through both the initial and second rounds of the Paycheck Protection Program, or PPP, with a remaining balance of approximately $78 million as of December 31, 2021, compared to approximately $133 million as of September 30, 2021;
- Through January 21, 2022, the Small Business Administration, or SBA, had approved approximately 3,600 PPP forgiveness applications from the Bank totaling approximately $833 million, with PPP loans of approximately $7 million currently pending SBA review and approval.
Non-performing loans were $51.1 million, or 0.52% of total loans, at December 31, 2021, compared to $62.2 million, or 0.64% of total loans, at September 30, 2021;
We further supported our impacted banking clients during 2020 through the approval of COVID-19 related loan modifications of approximately $1.0 billion, and continued such support during 2021, resulting in a portfolio of active deferrals that have not reached the end of their deferral period of approximately $4 million as of December 31, 2021, compared to approximately $17 million in active deferment as of September 30, 2021;
- While the majority of the portfolio of COVID-19 related loan modifications no longer require deferral, such loans may continue to represent elevated risk; therefore, monitoring of these loans continues.
Loans held for sale decreased by 10.9% from September 30, 2021 to $1.9 billion at December 31, 2021;
Total deposits were $12.8 billion and $12.1 billion at December 31, 2021 and September 30, 2021, respectively;
Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 12.58% and a Common Equity Tier 1 Capital Ratio of 21.22% at December 31, 2021;
Hilltop's consolidated net interest margin⁴decreased to 2.44% for the fourth quarter of 2021, compared to 2.53% in the third quarter of 2021;
- Includes previously deferred interest income of $2.2 million during the fourth quarter of 2021, compared to $4.6 million during the third quarter of 2021, related to PPP loan-related origination fees.

For the fourth quarter of 2021, noninterest income from continuing operations was $284.8 million, compared to $447.9 million in the fourth quarter of 2020, a 36.4% decrease;
For the fourth quarter 2021, noninterest expense from continuing operations was $322.2 million, compared to $402.3 million in the fourth quarter of 2020, a 19.9% decrease; and
Hilltop's effective tax rate from continuing operations was 24.2% during the fourth quarter of 2021, compared to 25.1% during the same period in 2020.

Discontinued Operations

On June 30, 2020, Hilltop completed the sale of National Lloyds Corporation, or NLC, which comprised the operations of its former insurance segment, for cash proceeds of $154.1 million. During 2020, Hilltop recognized an aggregate gain associated with this transaction of $36.8 million, net of transaction costs. Accordingly, insurance segment results and its assets and liabilities have been presented as discontinued operations. The resulting book gain from this sale transaction was not recognized for tax purposes pursuant to the rules promulgated under the Internal Revenue Code.

__________________________
Note: "Consolidated" refers to our consolidated financial position and consolidated results of operations, including discontinued operations and assets and liabilities of discontinued operations.
¹	"Loans" reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $733.0 million and $645.6 million at December 31, 2021 and September 30, 2021, 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	December 31,			September 30,			June 30,			March 31,			December 31,
(in 000's)	2021			2021			2021			2021			2020
Cash and due from banks	$	2,823,138		$	2,463,111		$	1,372,818		$	1,564,489		$	1,062,560
Federal funds sold		385			406			387			396			386
Assets segregated for regulatory purposes		221,740			269,506			207,284			273,393			290,357
Securities purchased under agreements to resell		118,262			155,908			202,638			106,342			80,319
Securities:
Trading, at fair value		647,998			609,813			682,483			528,712			694,255
Available for sale, at fair value, net		2,130,568			1,994,183			1,817,807			1,715,406			1,462,205
Held to maturity, at amortized cost, net		267,684			277,419			288,776			300,088			311,944
Equity, at fair value		250			221			193			189			140
		3,046,500			2,881,636			2,789,259			2,544,395			2,468,544
Loans held for sale		1,878,190			2,108,878			2,885,458			2,538,986			2,788,386
Loans held for investment, net of unearned income		7,879,904			7,552,926			7,645,227			7,810,657			7,693,141
Allowance for credit losses		(91,352	)		(109,512	)		(115,269	)		(144,499	)		(149,044	)
Loans held for investment, net		7,788,552			7,443,414			7,529,958			7,666,158			7,544,097

Broker-dealer and clearing organization receivables		1,672,946			1,419,652			1,403,447			1,596,817			1,404,727
Premises and equipment, net		204,438			210,026			212,402			213,304			211,595
Operating lease right-of-use assets		112,328			115,942			115,698			101,055			105,757
Mortgage servicing assets		86,990			110,931			124,497			142,125			143,742
Other assets		452,880			526,339			535,536			648,895			555,983
Goodwill		267,447			267,447			267,447			267,447			267,447
Other intangible assets, net		15,284			16,455			17,705			19,035			20,364
Total assets	$	18,689,080		$	17,989,651		$	17,664,534		$	17,682,837		$	16,944,264

Deposits:
Noninterest-bearing	$	4,577,183		$	4,433,148		$	4,231,082		$	4,031,181		$	3,612,384
Interest-bearing		8,240,894			7,699,014			7,502,703			7,701,598			7,629,935
Total deposits		12,818,077			12,132,162			11,733,785			11,732,779			11,242,319
Broker-dealer and clearing organization payables		1,477,300			1,496,923			1,439,620			1,546,227			1,368,373
Short-term borrowings		859,444			747,040			915,919			676,652			695,798
Securities sold, not yet purchased, at fair value		96,586			113,064			132,950			97,055			79,789
Notes payable		387,904			395,804			396,653			401,713			381,987
Operating lease liabilities		130,960			134,296			134,019			120,339			125,450
Junior subordinated debentures		—			—			67,012			67,012			67,012
Other liabilities		369,606			468,020			348,200			595,045			632,889
Total liabilities		16,139,877			15,487,309			15,168,158			15,236,822			14,593,617

Common stock		790			790			812			823			822
Additional paid-in capital		1,274,446			1,270,272			1,302,439			1,319,518			1,317,929
Accumulated other comprehensive income (loss)		(10,219	)		367			7,093			3,486			17,763
Retained earnings		1,257,014			1,204,307			1,159,304			1,094,727			986,792
Deferred compensation employee stock trust, net		752			751			754			752			771
Employee stock trust		(115	)		(116	)		(121	)		(121	)		(138	)
Total Hilltop stockholders' equity		2,522,668			2,476,371			2,470,281			2,419,185			2,323,939
Noncontrolling interests		26,535			25,971			26,095			26,830			26,708
Total stockholders' equity		2,549,203			2,502,342			2,496,376			2,446,015			2,350,647
Total liabilities & stockholders' equity	$	18,689,080		$	17,989,651		$	17,664,534		$	17,682,837		$	16,944,264




	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)	2021			2021			2020			2021			2020
Interest income:
Loans, including fees	$	96,104		$	99,769		$	109,328		$	404,312		$	433,311
Securities borrowed		8,524			8,585			14,445			61,667			51,360
Securities:
Taxable		13,916			12,341			9,845			47,633			48,273
Tax-exempt		2,639			2,687			1,862			9,766			6,698
Other		1,872			1,796			1,381			6,595			6,853
Total interest income		123,055			125,178			136,861			529,973			546,495

Interest expense:
Deposits		4,404			5,303			9,269			23,624			47,040
Securities loaned		6,624			6,519			12,014			50,974			42,816
Short-term borrowings		2,279			2,400			2,154			9,065			11,611
Notes payable		5,871			5,465			4,807			21,386			15,897
Junior subordinated debentures		—			419			609			1,558			2,772
Other		(417	)		(18	)		636			384			2,193
Total interest expense		18,761			20,088			29,489			106,991			122,329

Net interest income		104,294			105,090			107,372			422,982			424,166
Provision for (reversal of) credit losses		(18,565	)		(5,819	)		(3,482	)		(58,213	)		96,491
Net interest income after provision for (reversal of) credit losses		122,859			110,909			110,854			481,195			327,675

Noninterest income:
Net gains from sale of loans and other mortgage production income		156,103			203,152			247,360			825,960			1,001,059
Mortgage loan origination fees		35,930			38,780			50,193			160,011			171,769
Securities commissions and fees		32,801			34,412			35,921			143,827			142,720
Investment and securities advisory fees and commissions		42,834			49,646			42,161			152,443			131,327
Other		17,178			41,955			72,296			128,034			243,605
Total noninterest income		284,846			367,945			447,931			1,410,275			1,690,480

Noninterest expense:
Employees' compensation and benefits		229,717			258,679			291,489			1,007,235			1,059,645
Occupancy and equipment, net		25,741			25,428			27,596			100,602			99,416
Professional services		9,904			14,542			21,927			54,270			69,984
Other		56,832			56,525			61,336			225,291			224,758
Total noninterest expense		322,194			355,174			402,348			1,387,398			1,453,803

Income from continuing operations before income taxes		85,511			123,680			156,437			504,072			564,352
Income tax expense		20,715			28,257			39,295			117,976			133,071
Income from continuing operations		64,796			95,423			117,142			386,096			431,281
Income from discontinued operations, net of income taxes		—			—			3,734			—			38,396
Net income		64,796			95,423			120,876			386,096			469,677
Less: Net income attributable to noncontrolling interest		2,611			2,517			4,431			11,601			21,841
Income attributable to Hilltop	$	62,185		$	92,906		$	116,445		$	374,495		$	447,836

Earnings per common share:
Basic:
Earnings from continuing operations	$	0.79		$	1.16		$	1.31		$	4.64		$	4.59
Earnings from discontinued operations		—			—			0.04			—			0.43
	$	0.79		$	1.16		$	1.35		$	4.64		$	5.02
Diluted:
Earnings from continuing operations	$	0.78		$	1.15		$	1.30		$	4.61		$	4.58
Earnings from discontinued operations		—			—			0.05			—			0.43
	$	0.78		$	1.15		$	1.35		$	4.61		$	5.01

Cash dividends declared per common share	$	0.12		$	0.12		$	0.09		$	0.48		$	0.36

Weighted average shares outstanding:
Basic		78,933			80,109			86,269			80,708			89,280
Diluted		79,427			80,542			86,420			81,173			89,304




	Three Months Ended December 31, 2021
Segment Results							Mortgage						All Other and			Continuing
(in 000's)	Banking			Broker-Dealer			Origination			Corporate			Eliminations			Operations
Net interest income (expense)	$	97,194		$	11,673		$	(3,846	)	$	(3,519	)	$	2,792		$	104,294
Provision for (reversal of) credit losses		(18,450	)		(115	)		—			—			—			(18,565	)
Noninterest income		11,820			82,896			192,311			993			(3,174	)		284,846
Noninterest expense		59,046			92,967			157,172			13,492			(483	)		322,194
Income (loss) from continuing operations before taxes	$	68,418		$	1,717		$	31,293		$	(16,018	)	$	101		$	85,511


	Year Ended December 31, 2021
Segment Results							Mortgage						All Other and			Continuing
(in 000's)	Banking			Broker-Dealer			Origination			Corporate			Eliminations			Operations
Net interest income (expense)	$	406,524		$	43,296		$	(20,400	)	$	(17,239	)	$	10,801		$	422,982
Provision for (reversal of) credit losses		(58,175	)		(38	)		—			—			—			(58,213	)
Noninterest income		45,113			381,125			986,990			9,133			(12,086	)		1,410,275
Noninterest expense		226,915			380,798			731,056			50,507			(1,878	)		1,387,398
Income (loss) from continuing operations before taxes	$	282,897		$	43,661		$	235,534		$	(58,613	)	$	593		$	504,072




	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
Selected Financial Data	2021			2021			2020			2021			2020

Hilltop Consolidated ⁽¹⁾:
Return on average stockholders' equity		9.93	%		14.96	%		20.56	%		15.38	%		20.03	%
Return on average assets		1.41	%		2.13	%		2.83	%		2.17	%		2.88	%
Net interest margin ⁽²⁾		2.44	%		2.53	%		2.71	%		2.57	%		2.85	%
Net interest margin (taxable equivalent) ⁽³⁾:
As reported		2.45	%		2.54	%		2.72	%		2.58	%		2.85	%
Impact of purchase accounting		12 bps			9 bps			15 bps			12 bps			14 bps
Book value per common share ($)		31.95			31.36			28.28			31.95			28.28
Shares outstanding, end of period (000's)		78,965			78,959			82,185			78,965			82,185
Dividend payout ratio ⁽⁴⁾		15.19	%		10.34	%		6.67	%		10.34	%		7.18	%

Banking Segment:
Net interest margin ⁽²⁾		2.81	%		2.99	%		3.37	%		3.07	%		3.31	%
Net interest margin (taxable equivalent)⁽³⁾:
As reported		2.82	%		3.00	%		3.38	%		3.08	%		3.31	%
Impact of purchase accounting		15 bps			11 bps			20 bps			16 bps			18 bps
Accretion of discount on loans ($000's)		4,716			3,221			5,629			18,789			18,831
Net recoveries (charge-offs) ($000's)		405			62			(2,688	)		521			(21,145	)
Return on average assets		1.44	%		1.36	%		1.37	%		1.55	%		0.63	%
Fee income ratio		10.8	%		10.5	%		10.2	%		10.0	%		9.6	%
Efficiency ratio		54.2	%		48.8	%		53.0	%		50.3	%		53.8	%
Employees' compensation and benefits ($000's)		34,415			31,500			34,007			130,276			127,985

Broker-Dealer Segment:
Net revenue ($000's) ⁽⁵⁾		94,569			126,570			150,070			424,421			531,267
Employees' compensation and benefits ($000's) ⁽⁶⁾		65,301			82,429			87,621			276,176			312,396
Variable compensation expense ($000's)		35,939			53,505			60,295			161,264			205,464
Compensation as a % of net revenue ⁽⁶⁾		69.1	%		65.1	%		58.4	%		65.1	%		58.8	%
Pre-tax margin ⁽⁷⁾		1.8	%		13.8	%		22.8	%		10.3	%		21.8	%

Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		3,559,137			3,948,420			3,683,564			14,429,190			13,413,545
Refinancings		1,430,369			1,646,208			3,114,630			8,239,093			9,556,649
Total mortgage loan originations - volume		4,989,506			5,594,628			6,798,194			22,668,283			22,970,194
Mortgage loan sales - volume ($000's)		4,988,538			6,195,559			6,571,234			23,059,160			22,514,170
Net gains from mortgage loan sales (basis points):
Loans sold to third parties		362			359			451			375			409
Impact of loans retained by banking segment		(15	)		(13	)		(3	)		(13	)		(3	)
As reported		347			346			448			362			406
Mortgage servicing rights asset ($000's) ⁽⁸⁾		86,990			110,931			143,742			86,990			143,742
Employees' compensation and benefits ($000's)		121,758			134,814			163,822			568,221			586,713
Variable compensation expense ($000's)		73,208			88,153			116,736			373,929			405,116

__________________________
(1)	Ratios and financial data presented on a consolidated basis. For all 2020 periods presented, information includes discontinued operations.
(2)	Net interest margin is defined as net interest income divided by average interest-earning assets.
(3)	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 $0.5 million, $0.6 million, $0.4 million, $0.2 million, and $0.3 million, respectively, for the periods presented and for the banking segment were $0.2 million, $0.2 million, $0.2 million, $0.2 million, and $0.2 million, respectively, for the periods presented.
(4)	Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share.
(5)	Net revenue is defined as the sum of total broker-dealer net interest income and total broker-dealer noninterest income.
(6)	Noted balances and ratios during all prior periods reflect certain reclassifications to conform to current period presentation.
(7)	Pre-tax margin is defined as income before income taxes divided by net revenue.
(8)	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	2021			2021			2021			2021			2020
Tier 1 capital (to average assets):
PlainsCapital		10.20	%		10.02	%		10.22	%		10.50	%		10.44	%
Hilltop		12.58	%		12.64	%		12.87	%		13.01	%		12.64	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		16.00	%		15.40	%		15.00	%		14.74	%		14.40	%
Hilltop		21.22	%		21.28	%		20.22	%		19.63	%		18.97	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		16.00	%		15.40	%		15.00	%		14.74	%		14.40	%
Hilltop		21.22	%		21.28	%		20.82	%		20.22	%		19.57	%
Total capital (to risk-weighted assets):
PlainsCapital		16.77	%		16.32	%		15.95	%		15.64	%		15.27	%
Hilltop		23.75	%		24.00	%		23.48	%		22.96	%		22.34	%




	December 31,			September 30,			June 30,			March 31,			December 31,
Non-Performing Assets Portfolio Data	2021			2021			2021			2021			2020
Loans accounted for on a non-accrual basis ($000's) ⁽¹⁾:
Commercial real estate		6,601			5,705			7,211			10,668			11,133
Commercial and industrial		22,478			29,808			33,033			36,144			34,049
Construction and land development		2			366			474			501			507
1-4 family residential		21,123			25,255			27,100			30,937			32,263
Consumer		23			24			26			26			28
Broker-dealer		—			—			—			—			—
		50,227			61,158			67,844			78,276			77,980
Troubled debt restructurings included in accruing loans held for investment ($000's)		922			1,038			1,139			1,584			1,954
Non-performing loans ($000's)		51,149			62,196			68,983			79,860			79,934

Non-performing loans as a % of total loans		0.52	%		0.64	%		0.66	%		0.77	%		0.76	%

Other real estate owned ($000's)		2,833			21,605			21,078			19,899			21,289

Other repossessed assets ($000's)		—			—			—			—			101

Non-performing assets ($000's)		53,982			83,801			90,061			99,759			101,324

Non-performing assets as a % of total assets		0.29	%		0.47	%		0.51	%		0.56	%		0.60	%

Loans past due 90 days or more and still accruing ($000's) ⁽²⁾:		60,775			175,734			245,828			265,230			243,630

__________________________
(1)	Loans accounted for on a non-accrual basis do not include COVID-19 related loan modifications. The Bank's COVID-19 payment deferral programs allow for a deferral of principal and/or interest payments with such deferred principal payments due and payable on the maturity date of the existing loan. Since the second quarter of 2020, the Bank's actions included approval of COVID-19 related loan modifications, resulting in active loan modifications of approximately $4 million as of December 31, 2021, down from approximately $17 million as of September 30, 2021.
(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 December 31,
	2021							2020
	Average			Interest		Annualized		Average			Interest		Annualized
	Outstanding			Earned or		Yield or		Outstanding			Earned or		Yield or
Net Interest Margin (Taxable Equivalent) Details ⁽¹⁾	Balance			Paid		Rate		Balance			Paid		Rate
Assets
Interest-earning assets
Loans held for sale	$	1,852,140		$	13,708	2.96	%	$	2,760,798		$	18,692	2.71	%
Loans held for investment, gross ⁽²⁾		7,695,090			82,396	4.25	%		7,732,754			90,636	4.62	%
Investment securities - taxable		2,677,894			13,916	2.08	%		2,132,863			9,823	1.84	%
Investment securities - non-taxable ⁽³⁾		331,959			3,188	3.84	%		258,644			2,188	3.38	%
Federal funds sold and securities purchased under agreements to resell		194,351			164	0.33	%		85,716			—	0.00	%
Interest-bearing deposits in other financial institutions		2,683,656			943	0.14	%		1,200,635			487	0.16	%
Securities borrowed		1,474,421			8,524	2.26	%		1,501,389			14,445	3.76	%
Other		52,848			765	5.74	%		49,648			913	7.31	%
Interest-earning assets, gross ⁽³⁾		16,962,359			123,604	2.89	%		15,722,447			137,184	3.45	%
Allowance for credit losses		(109,555	)						(155,142	)
Interest-earning assets, net		16,852,804							15,567,305
Noninterest-earning assets		1,402,216							1,420,479
Total assets	$	18,255,020						$	16,987,784

Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	7,901,704		$	4,404	0.22	%	$	7,523,955		$	9,269	0.49	%
Securities loaned		1,422,303			6,624	1.85	%		1,398,943			12,014	3.42	%
Notes payable and other borrowings		1,233,924			7,733	2.49	%		1,150,439			8,206	2.84	%
Total interest-bearing liabilities		10,557,931			18,761	0.70	%		10,073,337			29,489	1.17	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		4,509,891							3,669,230
Other liabilities		677,433							965,150
Total liabilities		15,745,255							14,707,717
Stockholders' equity		2,484,301							2,252,989
Noncontrolling interest		25,464							27,078
Total liabilities and stockholders' equity	$	18,255,020						$	16,987,784

Net interest income ⁽³⁾				$	104,843						$	107,695
Net interest spread ⁽³⁾						2.19	%						2.28	%
Net interest margin ⁽³⁾						2.45	%						2.72	%




	Year Ended December 31,
	2021						2020
	Average		Interest		Annualized		Average		Interest		Annualized
	Outstanding		Earned or		Yield or		Outstanding		Earned or		Yield or
Net Interest Margin (Taxable Equivalent) Details ⁽¹⁾	Balance		Paid		Rate		Balance		Paid		Rate
Assets
Interest-earning assets
Loans held for sale	$	2,293,543	$	64,767	2.82	%	$	2,306,203	$	74,467	3.23	%
Loans held for investment, gross ⁽²⁾		7,645,292		339,548	4.44	%		7,618,723		358,844	4.71	%
Investment securities - taxable		2,493,848		47,582	1.91	%		1,897,859		49,936	2.63	%
Investment securities - non-taxable ⁽³⁾		313,703		11,448	3.65	%		231,824		7,918	3.42	%
Federal funds sold and securities purchased under agreements to resell		152,273		372	0.24	%		90,961		138	0.15	%
Interest-bearing deposits in other financial institutions		2,078,666		2,942	0.14	%		1,257,902		3,165	0.25	%
Securities borrowed		1,445,464		61,667	4.21	%		1,435,572		51,360	3.58	%
Other		50,929		3,332	6.54	%		59,412		3,687	6.21	%
Interest-earning assets, gross ⁽³⁾		16,473,718		531,658	3.23	%		14,898,456

Hilltop Holdings Inc. Announces Financial Results for Fourth Quarter and Full Year 2021