Hilltop Holdings Inc. (NYSE:HTH) ("Hilltop") today announced financial results for the first quarter 2021. Hilltop produced income from continuing operations to common stockholders of $120.3 million, or $1.46 per diluted share, for the first quarter of 2021, compared to $46.5 million, or $0.51 per diluted share, for the first quarter of 2020. Hilltop's financial results from continuing operations for the first quarter of 2021 reflected a significant increase in mortgage origination segment net gains from sale of loans and other mortgage production income, while the first quarter of 2020 results included a build in the allowance for credit losses associated with the impact of macroeconomic forecast assumptions attributable to the market disruption and economic uncertainties caused by COVID-19.

Including income from discontinued operations related to the former insurance business, income applicable to common stockholders was $120.3 million, or $1.46 per diluted share, for the first quarter of 2021, compared to $49.6 million, or $0.55 per diluted share, for the first quarter of 2020.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.12 per common share, payable on May 28, 2021, to all common stockholders of record as of the close of business on May 14, 2021. Additionally, during the first quarter of 2021, Hilltop paid $5.0 million to repurchase an aggregate of 149,878 shares of its common stock at an average price of $33.01 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 COVID-19 pandemic has negatively 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 COVID-19 on our operational and financial performance for the remainder of 2021 is dependent on certain developments, including, among others, the ongoing distribution and effectiveness of vaccines, government stimulus, the ultimate impact of COVID-19 on our customers and clients, potential further disruption and deterioration in the financial services industry, including the mortgage servicing and commercial paper markets, and additional, or extended, federal, state and local government orders and regulations that might be imposed in response to the pandemic, all of which are uncertain.

Jeremy B. Ford, President and CEO of Hilltop, said, "Hilltop's results in the first quarter reflect the focus of our teammates across Hilltop on serving our clients and executing on our strategic initiatives. The mortgage origination segment had another exceptional quarter, generating $6.2 billion of production volume, a year-over-year increase of 71%, and $93 million of pre-tax income. The banking segment generated $65 million of pre-tax income, including a $5 million reduction in credit reserves, and delivered an efficiency ratio below 50%. The banking team also continued to support its clients through the origination of approximately $200 million of additional PPP loans, bringing the total PPP originations since the inception of the program to approximately $900 million. Additionally, the broker-dealer segment generated $18 million of pre-tax income, as its structured finance and public finance services businesses produced revenue growth versus the prior year in a very volatile interest rate market.

"Overall, we are very pleased with the strong start to 2021, as our diversified, yet integrated, business model continues to generate solid results for our shareholders. At Hilltop, we are focused on value creation over the long-term and will continue to make investments in people and technology for prudent future growth."

First Quarter 2021 Highlights for Hilltop:

For the first 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 $310.2 million, compared to $179.0 million in the first quarter of 2020, a 73.3% increase;
- Mortgage loan origination production volume was $6.2 billion during the first quarter of 2021, compared to $3.6 billion in the first quarter of 2020.
The reversal of credit losses was $5.1 million during the first quarter of 2021, compared to a reversal of credit losses of $3.5 million in the fourth quarter of 2020;
- The reversal of credit losses during the first quarter of 2021 primarily reflected improvements in loan portfolio macroeconomic forecast assumptions from the prior quarter, partially offset by slower prepayment assumptions on certain portfolios, changes in risk rating grades and updated realizable values.
Hilltop's consolidated annualized return on average assets and return on average equity for the first quarter of 2021 were 2.90% and 20.58%, respectively, compared to 1.47% and 9.38%, respectively, for the first quarter of 2020;
Hilltop's book value per common share increased to $29.41 at March 31, 2021, compared to $28.28 at December 31, 2020;
Hilltop's total assets were $17.7 billion at March 31, 2021, compared to $16.9 billion at December 31, 2020;
Loans¹, net of allowance for credit losses, were $7.1 billion at both March 31, 2021 and December 31, 2020;
- Includes supporting our impacted banking clients through funding of over 3,950 loans through both rounds of the Paycheck Protection Program, or PPP, with a remaining balance of approximately $492 million as of March 31, 2021, compared to approximately $487 million as of December 31, 2020;
- Through April 16, 2021, the SBA had approved approximately 2,270 initial round PPP forgiveness applications from the Bank totaling approximately $420 million, with PPP loans of approximately $185 million pending SBA review and approval.
Non-performing loans were $79.9 million, or 0.77% of total loans, at March 31, 2021, compared to $79.9 million, or 0.76% of total loans, at December 31, 2020;
We further supported our impacted banking clients through the approval of COVID-19 related loan modifications of approximately $1.0 billion, resulting in a portfolio of active deferrals that have not reached the end of their deferral period of approximately $130 million as of March 31, 2021, compared to approximately $240 million in active deferment as of December 31, 2020;
- While the majority of the portfolio of COVID-19 related loan modifications no longer require deferral, such loans may continue to represent elevated risk, and therefore management continues to monitor these loans;
- The extent of these loans progressing into non-performing loans during future periods is uncertain.
Loans held for sale decreased by 8.9% from December 31, 2020 to $2.5 billion at March 31, 2021;
Total deposits were $11.7 billion at March 31, 2021, compared to $11.2 billion at December 31, 2020;
Hilltop maintained strong capital levels² with a Tier 1 Leverage Ratio³ of 13.01% and a Common Equity Tier 1 Capital Ratio of 19.63% at March 31, 2021;
Hilltop's consolidated net interest margin⁴decreased to 2.69% for the first quarter of 2021, compared to 2.71% in the fourth quarter of 2020;
For the first quarter of 2021, noninterest income from continuing operations was $417.6 million, compared to $271.7 million in the first quarter of 2020, a 53.7% increase;
For the first quarter of 2021, noninterest expense from continuing operations was $366.7 million, compared to $281.9 million in the first quarter of 2020, a 30.1% increase; and
Hilltop's effective tax rate from continuing operations was 23.4% during the first quarter of 2021, compared to 23.1% 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 $519.9 million and $436.8 million at March 31, 2021 and December 31, 2020, 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)	2021		2020		2020		2020		2020
Cash and due from banks	$	1,564,489	$	1,062,560	$	1,277,865	$	1,655,492	$	524,370
Federal funds sold		396		386		420		385		401
Assets segregated for regulatory purposes		273,393		290,357		221,621		194,626		178,805
Securities purchased under agreements to resell		106,342		80,319		90,103		161,457		23,356
Securities:
Trading, at fair value		528,712		694,255		667,751		648,037		393,581
Available for sale, at fair value, net		1,715,406		1,462,205		1,310,240		1,091,348		972,318
Held to maturity, at amortized cost, net		300,088		311,944		323,299		343,198		355,110
Equity, at fair value		189		140		117		122		107
		2,544,395		2,468,544		2,301,407		2,082,705		1,721,116
Loans held for sale		2,538,986		2,788,386		2,547,975		2,592,307		2,433,407
Loans held for investment, net of unearned income		7,810,657		7,693,141		7,945,560		7,849,904		7,345,250
Allowance for credit losses		(144,499)		(149,044)		(155,214)		(156,383)		(106,739)
Loans held for investment, net		7,666,158		7,544,097		7,790,346		7,693,521		7,238,511

Broker-dealer and clearing organization receivables		1,596,817		1,404,727		1,363,478		1,222,627		1,838,789
Premises and equipment, net		213,304		211,595		208,078		210,975		215,261
Operating lease right-of-use assets		101,055		105,757		109,354		119,954		113,395
Mortgage servicing assets		142,125		143,742		127,712		81,264		30,299
Other assets		648,895		555,983		607,932		627,982		846,316
Goodwill		267,447		267,447		267,447		267,447		267,447
Other intangible assets, net		19,035		20,364		21,814		23,374		25,019
Assets of discontinued operations		—		—		—		—		249,758
Total assets	$	17,682,837	$	16,944,264	$	16,935,552	$	16,934,116	$	15,706,250

Deposits:
Noninterest-bearing	$	4,031,181	$	3,612,384	$	3,557,603	$	3,467,500	$	2,865,192
Interest-bearing		7,701,598		7,629,935		7,704,312		8,182,098		7,082,297
Total deposits		11,732,779		11,242,319		11,261,915		11,649,598		9,947,489
Broker-dealer and clearing organization payables		1,546,227		1,368,373		1,310,835		1,158,628		1,259,181
Short-term borrowings		676,652		695,798		780,109		720,164		1,329,948
Securities sold, not yet purchased, at fair value		97,055		79,789		56,023		55,340		22,768
Notes payable		401,713		381,987		396,006		450,158		244,042
Operating lease liabilities		120,339		125,450		122,402		131,411		124,123
Junior subordinated debentures		67,012		67,012		67,012		67,012		67,012
Other liabilities		595,045		632,889		502,517		409,672		408,224
Liabilities of discontinued operations		—		—		—		—		139,730
Total liabilities		15,236,822		14,593,617		14,496,819		14,641,983		13,542,517

Common stock		823		822		902		902		901
Additional paid-in capital		1,319,518		1,317,929		1,443,588		1,439,686		1,437,301
Accumulated other comprehensive income		3,486		17,763		23,790		23,813		20,939
Retained earnings		1,094,727		986,792		942,461		797,331		676,946
Deferred compensation employee stock trust, net		752		771		774		778		774
Employee stock trust		(121)		(138)		(143)		(150)		(150)
Total Hilltop stockholders' equity		2,419,185		2,323,939		2,411,372		2,262,360		2,136,711
Noncontrolling interests		26,830		26,708		27,361		29,773		27,022
Total stockholders' equity		2,446,015		2,350,647		2,438,733		2,292,133		2,163,733
Total liabilities & stockholders' equity	$	17,682,837	$	16,944,264	$	16,935,552	$	16,934,116	$	15,706,250


	Three Months Ended
Consolidated Income Statements	March 31,		December 31,		September 30,		June 30,		March 31,
(in 000's, except per share data)	2021		2020		2020		2020		2020
Interest income:
Loans, including fees	$	104,277	$	109,328	$	104,955	$	107,860	$	111,168
Securities borrowed		28,972		14,445		10,705		12,883		13,327
Securities:
Taxable		10,251		9,845		11,035		11,698		15,695
Tax-exempt		2,102		1,862		1,687		1,539		1,610
Other		1,321		1,381		1,446		951		3,075
Total interest income		146,923		136,861		129,828		134,931		144,875

Interest expense:
Deposits		7,741		9,269		10,700		11,947		15,124
Securities loaned		25,486		12,014		8,729		10,796		11,277
Short-term borrowings		2,013		2,154		2,346		2,367		4,744
Notes payable		4,797		4,807		4,904		3,768		2,418
Junior subordinated debentures		562		609		608		705		850
Other		642		636		641		790		126
Total interest expense		41,241		29,489		27,928		30,373		34,539

Net interest income		105,682		107,372		101,900		104,558		110,336
Provision for (reversal of) credit losses		(5,109)		(3,482)		(602)		66,026		34,549
Net interest income after provision for (reversal of) credit losses		110,791		110,854		102,502		38,532		75,787

Noninterest income:
Net gains from sale of loans and other mortgage production income		267,080		247,360		307,896		295,317		150,486
Mortgage loan origination fees		43,155		50,193		47,681		45,341		28,554
Securities commissions and fees		38,314		35,921		32,496		34,234		40,069
Investment and securities advisory fees and commissions		27,695		42,161		36,866		29,120		23,180
Other		41,341		72,296		77,772		64,113		29,424
Total noninterest income		417,585		447,931		502,711		468,125		271,713

Noninterest expense:
Employees' compensation and benefits		270,353		291,489		294,907		276,893		196,356
Occupancy and equipment, net		24,429		27,596		26,124		26,174		19,522
Professional services		13,585		21,927		17,522		15,737		14,798
Other		58,295		61,336		60,792		51,405		51,225
Total noninterest expense		366,662		402,348		399,345		370,209		281,901

Income from continuing operations before income taxes		161,714		156,437		205,868		136,448		65,599
Income tax expense		37,770		39,295		46,820		31,808		15,148
Income from continuing operations		123,944		117,142		159,048		104,640		50,451
Income from discontinued operations, net of income taxes		—		3,734		736		30,775		3,151
Net income		123,944		120,876		159,784		135,415		53,602
Less: Net income attributable to noncontrolling interest		3,599		4,431		6,505		6,939		3,966
Income attributable to Hilltop	$	120,345	$	116,445	$	153,279	$	128,476	$	49,636

Earnings per common share:
Basic:
Earnings from continuing operations	$	1.46	$	1.31	$	1.69	$	1.08	$	0.51
Earnings from discontinued operations		—		0.04		0.01		0.34		0.04
	$	1.46	$	1.35	$	1.70	$	1.42	$	0.55
Diluted:
Earnings from continuing operations	$	1.46	$	1.30	$	1.69	$	1.08	$	0.51
Earnings from discontinued operations		—		0.05		0.01		0.34		0.04
	$	1.46	$	1.35	$	1.70	$	1.42	$	0.55

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

Weighted average shares outstanding:
Basic		82,169		86,269		90,200		90,164		90,509
Diluted		82,657		86,420		90,200		90,164		90,550


	Three Months Ended March 31, 2021
Segment Results					Mortgage				All Other and		Continuing
(in 000's)	Banking		Broker-Dealer		Origination		Corporate		Eliminations		Operations
Net interest income (expense)	$	103,884	$	10,514	$	(7,098)	$	(4,692)	$	3,074	$	105,682
Provision for (reversal of) credit losses		(5,175)		66		—		—		—		(5,109)
Noninterest income		11,324		98,623		310,444		506		(3,312)		417,585
Noninterest expense		55,788		91,404		210,334		9,588		(452)		366,662
Income (loss) from continuing operations before taxes	$	64,595	$	17,667	$	93,012	$	(13,774)	$	214	$	161,714


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

Hilltop Consolidated ⁽¹⁾:
Return on average stockholders' equity		20.58%		20.56%		25.94%		23.32%		9.38%
Return on average assets		2.90%		2.83%		3.71%		3.30%		1.47%
Net interest margin ⁽²⁾		2.69%		2.71%		2.56%		2.80%		3.41%
Net interest margin (taxable equivalent) ⁽³⁾:
As reported		2.69%		2.72%		2.57%		2.81%		3.42%
Impact of purchase accounting		13 bps		15 bps		10 bps		10 bps		22 bps
Book value per common share ($)		29.41		28.28		26.72		25.08		23.71
Shares outstanding, end of period (000's)		82,261		82,185		90,238		90,222		90,108
Dividend payout ratio ⁽⁴⁾		8.19%		6.67%		5.30%		6.32%		16.41%

Banking Segment:
Net interest margin ⁽²⁾		3.30%		3.37%		3.03%		3.11%		3.81%
Net interest margin (taxable equivalent)⁽³⁾:
As reported		3.31%		3.38%		3.03%		3.12%		3.82%
Impact of purchase accounting		17 bps		20 bps		13 bps		12 bps		30 bps
Accretion of discount on loans ($000's)		4,851		5,629		3,346		3,217		6,639
Net recoveries (charge-offs) ($000's)		564		(2,688)		(567)		(16,382)		(1,508)
Return on average assets		1.48%		1.37%		1.14%		-0.42%		0.33%
Fee income ratio		9.8%		10.2%		9.2%		10.2%		8.5%
Efficiency ratio		48.4%		53.0%		52.7%		54.1%		55.5%
Employees' compensation and benefits ($000's)		30,992		34,007		29,808		31,583		32,347

Broker-Dealer Segment:
Net revenue ($000's) ⁽⁵⁾		109,137		150,070		149,190		132,624		99,382
Employees' compensation and benefits ($000's)		66,027		87,469		88,063		79,697		56,550
Variable compensation expense ($000's)		37,412		60,295		60,774		52,372		32,024
Compensation as a % of net revenue		60.5%		58.3%		59.0%		60.1%		56.9%
Pre-tax margin ⁽⁶⁾		16.2%		22.8%		23.7%		21.0%		18.3%

Mortgage Origination Segment:
Mortgage loan originations - volume ($000's):
Home purchases		2,902,710		3,683,564		4,183,560		3,204,573		2,341,847
Refinancings		3,281,395		3,114,630		2,266,793		2,894,486		1,280,741
Total mortgage loan originations - volume		6,184,105		6,798,194		6,450,353		6,099,059		3,622,588
Mortgage loan sales - volume ($000's)		6,350,837		6,571,234		6,521,773		5,934,914		3,486,249
Net gains from mortgage loan sales (basis points):
As reported		388		448		440		368		325
Impact of sales to banking segment		(10)		(3)		(1)		(1)		(13)
Mortgage servicing rights asset ($000's) ⁽⁷⁾		142,125		143,742		127,712		81,263		30,299
Employees' compensation and benefits ($000's)		166,248		163,822		161,738		160,824		100,328
Variable compensation expense ($000's)		115,486		116,736		116,275		113,826		58,280
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(1) Ratios and financial data presented on a consolidated basis. For all 2020 periods presented, information includes discontinued operations and as of March 31, 2020 those assets and liabilities of 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 $0.2 million, $0.3 million, $0.3 million, $0.3 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) Pre-tax margin is defined as income before income taxes divided by net revenue.
(7) 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	2021		2020		2020		2020		2020
Tier 1 capital (to average assets):
PlainsCapital		10.50%		10.44%		10.19%		10.37%		12.06%
Hilltop		13.01%		12.64%		13.03%		12.60%		13.03%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		14.74%		14.40%		14.64%		14.03%		13.33%
Hilltop		19.63%		18.97%		19.85%		18.46%		15.96%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		14.74%		14.40%		14.64%		14.03%		13.33%
Hilltop		20.22%		19.57%		20.46%		19.06%		16.38%
Total capital (to risk-weighted assets):
PlainsCapital		15.64%		15.27%		15.49%		14.88%		14.26%
Hilltop		22.96%		22.34%		23.22%		21.82%		17.00%


	March 31,		December 31,		September 30,		June 30,		March 31,
Non-Performing Assets Portfolio Data	2021		2020		2020		2020		2020
Loans accounted for on a non-accrual basis ($000's) ⁽¹⁾:
Commercial real estate		10,668		11,133		14,079		13,743		23,352
Commercial and industrial		36,144		34,049		38,708		32,259		47,121
Construction and land development		501		507		528		1,404		1,402
1-4 family residential		30,937		32,263		28,707		20,552		15,237
Consumer		26		28		53		308		310
Broker-dealer		—		—		—		—		—
		78,276		77,980		82,075		68,266		87,422
Troubled debt restructurings included in accruing loans held for investment ($000's)		1,584		1,954		1,919		2,025		2,286
Non-performing loans ($000's)		79,860		79,934		83,994		70,291		89,708

Non-performing loans as a % of total loans		0.77%		0.76%		0.80%		0.67%		0.92%

Other real estate owned ($000's)		19,899		21,289		25,387		26,602		15,429

Other repossessed assets ($000's)		—		101		239		315		315

Non-performing assets ($000's)		99,759		101,324		109,620		97,208		105,452

Non-performing assets as a % of total assets		0.56%		0.60%		0.65%		0.57%		0.67%

Loans past due 90 days or more and still accruing ($000's)		265,230		243,630		187,105		124,682		101,300
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(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. During the first quarter of 2021, the Bank's actions included approval of COVID-19 related loan modifications, resulting in active loan modifications of approximately $130 million as of March 31, 2021, down from approximately $240 million as of December 31, 2020. The extent to which these measures will impact the Bank is uncertain, and any progression of loans, whether receiving COVID-19 payment deferrals or not, into non-accrual status, during future periods is uncertain and will depend on future developments that cannot be predicted.


	Three Months Ended March 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	$	2,573,085	$	16,233	2.52	%	$	1,619,644	$	15,631	3.86	%
Loans held for investment, gross ⁽²⁾		7,645,883		88,044	4.62	%		7,262,282		95,538	5.23	%
Investment securities - taxable		2,267,709		10,233	1.80	%		1,798,897		16,606	3.69	%
Investment securities - non-taxable ⁽³⁾		284,001		2,280	3.21	%		208,863		1,902	3.64	%
Federal funds sold and securities purchased under agreements to resell		93,525		—	0.00	%		60,943		134	0.89	%
Interest-bearing deposits in other financial institutions		1,565,879		582	0.15	%		461,775		1,512	1.32	%
Securities borrowed		1,452,704		28,972	7.98	%		1,568,737		13,327	3.36	%
Other		49,916		762	6.18	%		78,595		1,512	7.72	%
Interest-earning assets, gross ⁽³⁾		15,932,702		147,106	3.70	%		13,059,736		146,162	4.45	%
Allowance for credit losses		(149,397)						(74,430)
Interest-earning assets, net		15,783,305						12,985,306
Noninterest-earning assets		1,559,039						1,633,387
Total assets	$	17,342,344					$	14,618,693

Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits	$	7,626,575	$	7,741	0.41	%	$	6,264,827	$	15,125	0.97	%
Securities loaned		1,355,945		25,486	7.62	%		1,474,988		11,277	3.07	%
Notes payable and other borrowings		1,130,068		8,014	2.85	%		1,368,038		8,544	2.50	%
Total interest-bearing liabilities		10,112,588		41,241	1.65	%		9,107,853		34,946	1.54	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		3,729,994						2,730,975
Other liabilities		1,101,972						633,722
Total liabilities		14,944,554						12,472,550
Stockholders' equity		2,371,281						2,121,877
Noncontrolling interest		26,509						24,266
Total liabilities and stockholders' equity	$	17,342,344					$	14,618,693

Net interest income ⁽³⁾			$	105,865					$	111,216
Net interest spread ⁽³⁾					2.05	%					2.91	%
Net interest margin ⁽³⁾					2.69	%					3.42	%
________________________________
(1) Information presented on a consolidated basis. For the three months ended March 31, 2020, information includes discontinued operations and those assets and liabilities classified of discontinued operations.
(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 rates for the periods presented. The adjustment to interest income was $0.2 million and $0.3 million for the three months ended March 31, 2021 and 2020, 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 23, 2021. Hilltop President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review first quarter 2021 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 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, 2021, Hilltop employed approximately 4,980 people and operated approximately 430 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," "could," "estimates," "expects," "extent," "focus," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plan," "probable," "progressing," "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 COVID-19 pandemic and the response of governmental authorities to the pandemic, which have caused and are causing significant harm to the global economy and our business; (ii) the credit risks of lending activities, including our ability to estimate credit losses, as well as the effects of, and trends in, loan delinquencies and write-offs; (iii) effectiveness of our data security controls in the face of cyber attacks; (iv) changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil; (v) risks associated with concentration in real estate related loans; and (vi) changes in the interest rate environment and transitions away from the London Interbank Offered Rate. 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 2021