Hilltop Holdings Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Hilltop Holdings Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operations.</b>

AI Summary

Hilltop Holdings Inc. (HTH) filed a Quarterly Report (10-Q) with the SEC on April 22, 2024. Hilltop Holdings Inc. filed its 10-Q report for the period ending March 31, 2024. The filing includes financial data for Q1 2024. The company's fiscal year ends on December 31. Hilltop Holdings Inc. is classified under SIC code 6022 (State Commercial Banks). The company's principal executive offices are located in Dallas, Texas.

Why It Matters

For investors and stakeholders tracking Hilltop Holdings Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial statements and disclosures, crucial for assessing the company's current health and performance. Understanding the details within this report allows stakeholders to evaluate the company's financial position, profitability, and any potential risks or opportunities.

Risk Assessment

Risk Level: medium — Hilltop Holdings Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and disclosures, but the absence of specific financial performance metrics in the provided header data limits a deeper risk assessment.

Analyst Insight

Review the full 10-Q filing for detailed financial statements, management discussion and analysis, and risk factors to understand Hilltop Holdings Inc.'s performance and outlook.

Key Numbers

• 2024-03-31 — Period End Date (Conformed period of report)
• 2024-04-22 — Filing Date (Filed as of date)
• 6022 — SIC Code (Standard Industrial Classification)
• 121 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• Hilltop Holdings Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-04-22 (date) — Filed as of date
• 6022 (industry_code) — Standard Industrial Classification
• Dallas (location) — Business address city
• TX (location) — Business address state
• MD (location) — State of incorporation
• 2003-09-29 (date) — Date of name change

FAQ

Industry Context

Hilltop Holdings Inc. operates within the commercial banking sector, as indicated by its SIC code 6022. This sector is subject to various regulatory requirements and market dynamics.

Regulatory Implications

As a commercial bank, Hilltop Holdings Inc. is subject to regulations from federal and state authorities, including those related to capital requirements, lending practices, and consumer protection.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-Q for revenue, net income, and balance sheet changes.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Examine the risk factors section for any new or evolving risks that could impact the company.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-22: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update on the company's financial position and performance compared to previous periods.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share HTH New York Stock Exchan
• $34 — s) included in net income, net taxes of $34 and $0, respectively 114 — Amortiza
• $0 — ded in net income, net taxes of $34 and $0, respectively 114 — Amortization of

Filing Documents

• hth-20240331x10q.htm (10-Q) — 7644KB
• hth-20240331xex31d1.htm (EX-31.1) — 18KB
• hth-20240331xex31d2.htm (EX-31.2) — 18KB
• hth-20240331xex32d1.htm (EX-32.1) — 15KB
• 0001558370-24-005424.txt (&nbsp;) — 30118KB
• hth-20240331.xsd (EX-101.SCH) — 103KB
• hth-20240331_cal.xml (EX-101.CAL) — 161KB
• hth-20240331_def.xml (EX-101.DEF) — 506KB
• hth-20240331_lab.xml (EX-101.LAB) — 1006KB
• hth-20240331_pre.xml (EX-101.PRE) — 770KB
• hth-20240331x10q_htm.xml (XML) — 8322KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1 .

Financial Statements

Financial Statements 3 Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Comprehensive Income (Loss) 5 Consolidated Statements of Stockholders' Equity 6 Consolidated Statements of Cash Flows 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 82 Item 4.

Controls and Procedures

Controls and Procedures 87

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 88 Item 1A.

Risk Factors

Risk Factors 88 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 88 Item 5. Other Information 88 Item 6. Exhibits 89 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. HILLTOP HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (Unaudited) March 31, December 31, 2024 2023 Assets Cash and due from banks $ 1,710,066 $ 1,858,700 Federal funds sold 650 650 Assets segregated for regulatory purposes 70,717 57,395 Securities purchased under agreements to resell 91,608 80,011 Securities: Trading, at fair value 657,700 515,991 Available for sale, at fair value, net (amortized cost of $ 1,594,167 and $ 1,621,747 , respectively) 1,480,555 1,507,595 Held to maturity, at amortized cost, net (fair value of $ 702,843 and $ 731,858 , respectively) 790,550 812,677 Equity, at fair value 315 321 2,929,120 2,836,584 Loans held for sale 842,324 943,846 Loans held for investment, net of unearned income 8,062,693 8,079,745 Allowance for credit losses ( 104,231 ) ( 111,413 ) Loans held for investment, net 7,958,462 7,968,332 Broker-dealer and clearing organization receivables 1,473,561 1,573,931 Premises and equipment, net 165,557 168,856 Operating lease right-of-use assets 95,343 88,580 Mortgage servicing rights 95,591 96,662 Other assets 501,244 517,545 Goodwill 267,447 267,447 Other intangible assets, net 7,943 8,457 Total assets $ 16,209,633 $ 16,466,996 Liabilities and Stockholders' Equity Deposits: Noninterest-bearing $ 3,028,543 $ 3,007,101 Interest-bearing 7,855,553 8,056,091 Total deposits 10,884,096 11,063,192 Broker-dealer and clearing organization payables 1,436,462 1,430,734 Short-term borrowings 892,574 900,038 Securities sold, not yet purchased, at fair value 60,562 34,872 Notes payable 347,273 347,145 Operating lease liabilities 114,518 109,002 Other liabilities 314,718 431,684 Total liabilities 14,050,203 14,316,667 Commitments and contingencies (see No

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Summary of Significant Accounting and Reporting Policies Nature of Operations Hilltop Holdings Inc. ("Hilltop" and, collectively with its subsidiaries, the "Company") is a financial holding company registered under the Bank Holding Company Act of 1956. The Company's primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank (the "Bank"). In addition, the Company provides an array of financial products and services through its broker-dealer and mortgage origination subsidiaries. The Company, headquartered in Dallas, Texas, provides its products and services through two primary business units, PlainsCapital Corporation ("PCC") and Hilltop Securities Holdings LLC ("Securities Holdings"). PCC is a financial holding company that provides, through its subsidiaries, traditional banking, wealth and investment management and treasury management services primarily in Texas and residential mortgage lending throughout the United States. Securities Holdings is a holding company that provides, through its subsidiaries, investment banking and other related financial services, including municipal advisory, sales, trading and underwriting of taxable and tax-exempt fixed income securities, clearing, securities lending, structured finance and retail brokerage services throughout the United States. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"), and in conformity with the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes req

Notes to Consolidated Financial Statements (continued)

Notes to Consolidated Financial Statements (continued) (Unaudited) that is also registered with the SEC and FINRA. Hilltop Securities, Momentum Independent Network and Hilltop Securities Asset Management, LLC are registered investment advisers under the Investment Advisers Act of 1940. In addition, Hilltop owns 100 % of the membership interest in each of HTH Hillcrest Project LLC ("HTH Project LLC") and Hilltop Investments I, LLC. Hilltop Investments I, LLC owns 50 % of the membership interest in HTH Diamond Hillcrest Land LLC ("Hillcrest Land LLC") which is consolidated under the aforementioned VIE Subsections of the ASC. These entities are related to the Hilltop Plaza investment discussed in detail in Note 17 to the consolidated financial statements included in the Company's 2023 Form 10-K and are collectively referred to as the "Hilltop Plaza Entities." The consolidated financial statements include the accounts of the above-named entities. Intercompany transactions and balances have been eliminated. Noncontrolling interests have been recorded for minority ownership in entities that are not wholly owned and are presented in compliance with the provisions of Noncontrolling Interest in Subsidiary Subsections of the ASC. In preparing these consolidated financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all stockholders and other financial statement users, or filed with the SEC. Significant accounting policies are detailed in Note 1 to the consolidated financial statements included in the Company's 2023 Form 10-K. 2. Recently Issued Accounting Standards Accounting Standards Issued But Not Yet Adopted In August 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-05 to require joint ventures to initially measure all contributions received and liabilities assumed upon it

Notes to Consolidated Financial Statements (continued)

Notes to Consolidated Financial Statements (continued) (Unaudited) In March 2024, the FASB issued ASU 2024-01 to clarify how an entity should determine whether a profits interest or similar award should be accounted for as a share-based payment arrangement or similar to a cash bonus or profit-sharing arrangement. The amendments are effective in annual periods beginning after December 15, 2024, and interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the new guidance and the impact on its future consolidated statements. 3. Fair Value Measurements Fair Value Measurements and Disclosures The Company determines fair values in compliance with The Fair Value Measurements and Disclosures Topic of the ASC (the "Fair Value Topic"). The Fair Value Topic defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. The Fair Value Topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Fair Value Topic assumes that transactions upon which fair value measurements are based occur in the principal market for the asset or liability being measured. Further, fair value measurements made under the Fair Value Topic exclude transaction costs and are not the result of forced transactions. The Fair Value Topic includes a fair value hierarchy that classifies fair value measurements based upon the inputs used in valuing the assets or liabilities that are the subject of fair value measurements. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs, as indicated below. Level 1 Inputs : Unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 Inputs

Notes to Consolidated Financial Statements (continued)

Notes to Consolidated Financial Statements (continued) (Unaudited) The following tables present information regarding financial assets and liabilities measured at fair value on a recurring basis (in thousands). Level 1 Level 2 Level 3 Total March 31, 2024 Inputs Inputs Inputs Fair Value Trading securities $ 6,504 $ 651,196 $ — $ 657,700 Available for sale securities — 1,459,741 20,814 1,480,555 Equity securities 315 — — 315 Loans held for sale — 663,832 51,795 715,627 Loans held for investment — — 11,211 11,211 Derivative a

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