DALLAS--(BUSINESS WIRE)--
Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial
results for the fourth quarter and full year 2014.Hilltop
produced income to common stockholders of $31.7 million, or $0.35 per
diluted share, for the fourth quarter of 2014, compared to $29.5
million, or $0.34 per diluted share, for the fourth quarter of 2013.
Income to common stockholders for the full year 2014 was $105.9 million,
or $1.17 per diluted share, compared to $121.0 million, or $1.40 per
diluted share, for the full year 2013. Hilltop’s annualized return on
average assets and return on average equity for the fourth quarter of
2014 were 1.42% and 8.55%, respectively, compared to 1.31% and 9.31% for
the fourth quarter of 2013, respectively. The return on average assets
and return on average equity for the full year 2014 were 1.26% and
8.01%, respectively, compared to 1.66% and 10.48% for the full year
2013, respectively.
“2014 was another strong and exciting year for Hilltop’s shareholders,
employees and customers as every business segment reported profitable
results during the year. PlainsCapital Bank continues to grow its legacy
franchise, while rationalizing the platform acquired in the FNB
Transaction. PrimeLending has successfully increased its market share in
an environment of declining industry origination volumes. National
Lloyds achieved its most profitable year since it was founded over 50
years ago. The recent investment grade rating Hilltop received from
Fitch reflects the strength of our business segments,” said Jeremy Ford,
CEO of Hilltop.
“With the closing of the SWS Transaction, we are excited about the
prospects of building a dominant broker-dealer through the combination
of Southwest Securities and First Southwest. We have a committed and
capable leadership team working towards an effective and efficient
integration. We look forward to entering 2015 with momentum and remain
focused on delivering strong long-term results to our shareholders.”
Fourth Quarter 2014 Highlights for Hilltop:
-
Total assets remained flat at $9.2 billion at December 31, 2014
compared to September 30, 2014;
-
Total stockholders’ equity increased $37.5 million from September 30,
2014 to $1.5 billion at December 31, 2014;
-
Non-covered loans1 held for investment, net of allowance
for loan losses, increased 4.1% to $3.9 billion, and covered loans1,
net of allowance for loan losses, decreased 14.6% to $638.0 million
from September 30, 2014 to December 31, 2014;
-
Loans held for sale increased 2.9% to $1.3 billion from September 30,
2014 to December 31, 2014;
-
Total deposits increased $133.6 million from September 30, 2014 to
$6.4 billion at December 31, 2014;
-
Hilltop was well-capitalized with a Tier 1 Leverage Ratio2
of 14.17% and Total Capital Ratio of 19.69% at December 31, 2014; and
-
Hilltop had approximately $146.0 million of freely usable cash
(although $78.2 million was used for SWS Group, Inc. (“SWS”)
transaction consideration on January 1, 2015), as well as excess
capital at its subsidiaries, at December 31, 2014.
1 Loan portfolio includes “covered loans” acquired in the FNB
Transaction that are subject to loss-share agreements with the FDIC,
while all other loans are referred to as “non-covered loans.”
2 Based on the end of period Tier 1 capital divided by total
average assets during the fourth quarter 2014 excluding goodwill and
intangible assets.
For the fourth quarter of 2014, consolidated net interest income was
$91.5 million compared with $88.6 million in the fourth quarter of 2013,
a 3.3% increase. The consolidated taxable equivalent net interest margin
was 4.72% for the fourth quarter of 2014, a 20 basis point increase from
4.52% in the fourth quarter of 2013. During the fourth quarter of 2014,
the consolidated taxable equivalent net interest margin was impacted by
accretion of discount on loans of $21.6 million, amortization of premium
on acquired securities of $1.2 million and amortization of premium on
acquired time deposits of $0.1 million.
For the fourth quarter of 2014, noninterest income was $213.8 million
compared with $182.5 million in the fourth quarter of 2013, a 17.2%
increase. The improvement was primarily driven by higher income related
to mortgage origination volumes, as well as increased fees and
commissions generated in our broker-dealer segment. Net gains from sale
of loans, other mortgage production income and mortgage loan origination
fees increased by $14.5 million from the fourth quarter of 2013 to
$112.7 million in the fourth quarter of 2014. Mortgage loan originations
totaled $2.7 billion in the fourth quarter of 2014, versus $2.3 billion
in the fourth quarter of 2013, positively impacted by a decline in
interest rates. Net premiums earned were relatively flat at $41.6
million in the fourth quarter of 2014 compared to $41.5 million in the
fourth quarter of 2013, a result of higher rates, offset by a managed
reduction in policies in force. For the fourth quarter of 2014,
noninterest income in our broker-dealer segment was $34.2 million
compared to $22.8 million in the fourth quarter of 2013, a 50.0%
increase. Most of the increase was attributable to fees earned from
advising its public finance clients on debt offerings due to lower
interest rates and an improving economy.
For the fourth quarter of 2014, noninterest expense was $246.8 million
compared with $219.8 million in the fourth quarter of 2013, a 12.3%
increase. Employees’ compensation and benefits increased $21.0 million,
or 18.7%, to $133.4 million in the fourth quarter of 2014, primarily due
to higher variable compensation tied to higher mortgage origination
volume and increased noninterest income in our broker-dealer segment.
Loss and loss adjustment expenses (“LAE”) increased to $18.2 million in
the fourth quarter of 2014 from $16.8 million in the fourth quarter of
2013. As a result, the loss and LAE ratio during the fourth quarter of
2014 increased by 3.3 percentage points to 43.7% compared to 40.4% in
the fourth quarter of 2013. Occupancy and equipment expense declined by
$1.5 million from the fourth quarter of 2013 to $24.3 million in the
fourth quarter of 2014 and other noninterest expense increased to $58.9
million in the fourth quarter of 2014 from $52.7 million in the fourth
quarter of 2013. Amortization of identifiable intangibles from purchase
accounting was $2.5 million for the fourth quarter of 2014. During the
full year 2014, noninterest expense included $1.4 million of transaction
costs associated with the SWS transaction compared to $0.1 million for
the full year 2013.
The fourth quarter of 2014 provision for loan losses of $4.1 million
largely relates to purchased credit impaired (“PCI”) loans and was $1.9
million greater than the fourth quarter of 2013 provision for loan
losses of $2.2 million. The allowance for non-covered loan losses was
$37.0 million, or 0.94% of total non-covered loans at December 31, 2014.
Non-covered, non-performing assets at December 31, 2014 were $23.2
million, or 0.25% of total assets, compared to $27.0 million, or 0.29%
of total assets, at September 30, 2014.
SWS Group Transaction
On October 2, 2014, Hilltop exercised its warrant to purchase SWS common
stock in full, acquiring 8,695,652 shares of SWS common stock at an
exercise price of $5.75 per share (“SWS Warrant”). Pursuant to the terms
of the warrant and a credit agreement with SWS, the aggregate exercise
price was paid by the automatic elimination of the $50.0 million
aggregate principal amount note due to Hilltop under the credit
agreement. Following the exercise of the SWS Warrant, Hilltop (i) owned
10,171,039 shares of SWS common stock, representing approximately 21% of
the outstanding shares of SWS common stock, and (ii) was no longer a
lender under the credit agreement. Hilltop’s election to apply the
provisions of the Fair Value Option resulted in Hilltop recording
unrealized gains previously associated with its investment in SWS common
stock of $7.2 million. For the period from October 3, 2014 through
December 31, 2014, the change in fair value of Hilltop’s investment in
SWS common stock resulted in a loss of $1.2 million. Accordingly,
Hilltop recorded a $6.0 million net gain in other noninterest income
during 2014. At December 31, 2014, Hilltop’s investment in SWS common
stock is included in other assets within the consolidated balance sheet
and is recorded at a fair value of $70.3 million.
On January 1, 2015, Hilltop completed its acquisition of SWS in a stock
and cash transaction, whereby SWS merged with and into Hilltop
Securities Holdings LLC (“Hilltop Securities”), a wholly owned
subsidiary of Hilltop formed for the purpose of facilitating this
transaction. SWS’s broker-dealer subsidiaries, Southwest Securities,
Inc. (“Southwest Securities”) and SWS Financial Services, Inc. (“SWS
Financial”), became subsidiaries of Hilltop Securities. Immediately
following the SWS transaction, SWS’s banking subsidiary, Southwest
Securities, FSB, was merged into PlainsCapital Bank, an indirect wholly
owned subsidiary of Hilltop. As a result of the SWS transaction, each
outstanding share of SWS common stock was converted into the right to
receive 0.2496 shares of Hilltop common stock and $1.94 in cash,
equating to $6.92 per share based on Hilltop’s closing price on December
31, 2014 and resulting in an aggregate purchase price of $349.0 million,
consisting of 10.0 million shares of common stock, $78.2 million in cash
and $70.3 million associated with Hilltop’s existing investment in SWS
common stock.
|
| |
|
|
| |
|
| |
|
| |
|
| |
| Condensed Balance Sheet | | | | December 31, | | | September 30, | | | June 30, | | | March 31, |
| ($000s) |
|
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
Cash and due from banks
| | | |
782,473
| | | |
635,933
| | | |
673,972
| | | |
889,950
| |
|
Securities
| | | |
1,109,461
| | | |
1,332,342
| | | |
1,328,716
| | | |
1,329,690
| |
|
Loans held for sale
| | | |
1,309,693
| | | |
1,272,813
| | | |
1,410,873
| | | |
887,200
| |
|
Non-covered loans, net of unearned income
| | | |
3,920,476
| | | |
3,768,843
| | | |
3,714,837
| | | |
3,646,946
| |
|
Allowance for non-covered loan losses
| | | | (37,041 | ) | | | (39,027 | ) | | | (36,431 | ) | | | (34,645 | ) |
|
Non-covered loans, net
| | | |
3,883,435
| | | |
3,729,816
| | | |
3,678,406
| | | |
3,612,301
| |
|
Covered loans, net of allowance for loan losses
| | | |
638,029
| | | |
747,514
| | | |
840,898
| | | |
909,783
| |
|
Covered other real estate owned
| | | |
136,945
| | | |
126,798
| | | |
142,174
| | | |
152,310
| |
| FDIC indemnification asset
| | | |
130,437
| | | |
149,788
| | | |
175,114
| | | |
188,736
| |
|
Premises and equipment, net
| | | |
206,991
| | | |
205,734
| | | |
201,545
| | | |
202,155
| |
|
Other assets
| | | | 1,044,952 |
| | | 979,664 |
| | | 944,750 |
| | | 861,307 |
|
|
Total assets
| | | | 9,242,416 |
| | | 9,180,402 |
| | | 9,396,448 |
| | | 9,033,432 |
|
| | | | | | | | | | | | | |
|
|
Deposits
| | | |
6,369,892
| | | |
6,236,282
| | | |
6,155,310
| | | |
6,663,176
| |
|
Short-term borrowings
| | | |
762,696
| | | |
845,984
| | | |
1,187,193
| | | |
491,406
| |
|
Notes payable
| | | |
56,684
| | | |
55,684
| | | |
55,584
| | | |
55,465
| |
|
Other liabilities
| | | | 591,905 |
| | | 618,708 |
| | | 601,199 |
| | | 468,172 |
|
|
Total liabilities
| | | |
7,781,177
| | | |
7,756,658
| | | |
7,999,286
| | | |
7,678,219
| |
|
Total Hilltop stockholders' equity
| | | |
1,460,452
| | | |
1,422,975
| | | |
1,396,442
| | | |
1,354,497
| |
|
Noncontrolling interest
| | | | 787 |
| | | 769 |
| | | 720 |
| | | 716 |
|
|
Total liabilities & stockholders' equity
| | | | 9,242,416 |
| | | 9,180,402 |
| | | 9,396,448 |
| | | 9,033,432 |
|
| | | | | | | | | | | | | |
|
|
| |
|
|
| |
|
| |
| | | | | Three Months Ended | | | Year Ended |
| Condensed Income Statement | | | | December 31, |
|
| September 30, |
|
| June 30, |
|
| March 31, | | | December 31, |
| ($000s) |
|
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
Interest income
| | | |
99,316
| | |
93,217
| | |
104,408
| | |
91,828
| | |
388,769
|
|
Interest expense
| | | | 7,802 | | | 7,457 | | | 5,962 | | | 6,407 | | | 27,628 |
|
Net interest income
| | | |
91,514
| | |
85,760
| | |
98,446
| | |
85,421
| | |
361,141
|
|
Provision for loan losses
| | | | 4,125 | | | 4,033 | | | 5,533 | | | 3,242 | | | 16,933 |
|
Net interest income after provision for loan losses
| | | |
87,389
| | |
81,727
| | |
92,913
| | |
82,179
| | |
344,208
|
|
Noninterest income
| | | |
213,795
| | |
212,135
| | |
203,281
| | |
170,100
| | |
799,311
|
|
Noninterest expense
| | | | 246,768 | | | 254,744 | | | 251,212 | | | 212,629 | | | 965,353 |
|
Income before income taxes
| | | |
54,416
| | |
39,118
| | |
44,982
| | |
39,650
| | |
178,166
|
|
Income tax expense
| | | | 20,950 | | | 14,010 | | | 16,294 | | | 14,354 | | | 65,608 |
|
Net income
| | | |
33,466
| | |
25,108
| | |
28,688
| | |
25,296
| | |
112,558
|
|
Less: Net income attributable to noncontrolling interest
| | | | 325 | | | 296 | | | 177 | | | 110 | | | 908 |
|
Income attributable to Hilltop
| | | |
33,141
| | |
24,812
| | |
28,511
| | |
25,186
| | |
111,650
|
|
Dividends on preferred stock
| | | | 1,425 | | | 1,426 | | | 1,426 | | | 1,426 | | | 5,703 |
|
Income applicable to Hilltop common stockholders
| | | | 31,716 | | | 23,386 | | | 27,085 | | | 23,760 | | | 105,947 |
| | | | | | | | | | | | | | | | |
|
|
| |
|
|
| |
|
| |
| | | | | Three Months Ended | | | Year Ended |
| | | | | December 31, |
|
| September 30, |
|
| June 30, |
|
| March 31, | | | December 31, |
| Selected Financial Data |
|
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
Return on average stockholders' equity
| | | |
8.55
|
%
| | |
6.51
|
%
| | |
7.99
|
%
| | |
7.65
|
%
| | |
8.01
|
%
|
|
Return on average assets
| | | |
1.42
|
%
| | |
1.03
|
%
| | |
1.24
|
%
| | |
1.14
|
%
| | |
1.26
|
%
|
|
Net interest margin (taxable equivalent)
| | | |
4.72
|
%
| | |
4.38
|
%
| | |
5.18
|
%
| | |
4.62
|
%
| | |
4.74
|
%
|
|
Earnings per common share ($):
| | | | | | | | | | | | | | | | |
|
Basic
| | | |
0.35
| | | |
0.26
| | | |
0.30
| | | |
0.26
| | | |
1.18
| |
|
Diluted
| | | |
0.35
| | | |
0.26
| | | |
0.30
| | | |
0.26
| | | |
1.17
| |
|
Weighted average shares outstanding (000's):
| | | | | | | | | | | | | | | | |
|
Basic
| | | |
89,713
| | | |
89,711
| | | |
89,709
| | | |
89,707
| | | |
89,710
| |
|
Diluted
| | | |
90,560
| | | |
90,558
| | | |
90,569
| | | |
90,585
| | | |
90,573
| |
|
Book value per share ($)
| | | |
14.93
| | | |
14.51
| | | |
14.22
| | | |
13.76
| | | |
14.93
| |
|
Shares outstanding (000's)
| | | |
90,182
| | | |
90,180
| | | |
90,181
| | | |
90,178
| | | |
90,182
| |
| | | | | | | | | | | | | | | |
|
|
|
|
| |
|
| |
|
| |
|
| |
| | | | December 31, | | | September 30, | | | June 30, | | | March 31, |
| Capital Ratios |
|
|
| 2014 |
|
| 2014 |
|
| 2014 |
|
| 2014 |
| | | | | | | | | | | | |
|
|
Tier 1 capital (to average quarterly assets):
| | | | | | | | | |
|
Bank
| | | |
10.31
|
%
| | |
9.95
|
%
| | |
9.97
|
%
| | |
9.53
|
%
|
|
Hilltop
| | | |
14.17
|
%
| | |
13.63
|
%
| | |
13.51
|
%
| | |
13.12
|
%
|
|
Tier 1 capital (to risk-weighted assets):
| | | | | | | | | | | | | |
|
Bank
| | | |
13.74
|
%
| | |
13.48
|
%
| | |
13.22
|
%
| | |
13.47
|
%
|
|
Hilltop
| | | |
19.02
|
%
| | |
18.57
|
%
| | |
18.11
|
%
| | |
18.66
|
%
|
|
Total capital (to risk-weighted assets):
| | | | | | | | | | | | | |
|
Bank
| | | |
14.45
|
%
| | |
14.21
|
%
| | |
13.90
|
%
| | |
14.14
|
%
|
|
Hilltop
| | | |
19.69
|
%
| | |
19.28
|
%
| | |
18.79
|
%
| | |
19.32
|
%
|
| | | | | | | | | | | | |
|
|
|
|
| |
| |
|
| |
|
|
| | |
| | | | Three Months Ended | | | | Twelve Months Ended |
| | | | December 31, 2014 | | | | December 31, 2014 |
| | | | Average | |
| Interest | | | Annualized | | | | Average |
|
| Interest |
|
| Annualized |
| | | | Outstanding | | | Earned or | | | Yield or | | | | Outstanding | | | Earned or | | | Yield or |
| | | | Balance | | | Paid | | | Rate | | | | Balance | | | Paid | | | Rate |
| Assets | | | | | | | | | | | | | | | | | | | | |
|
Interest-earning assets
| | | | | | | | | | | | | | | | | | | | |
|
Loans, gross (1)
| | | |
$
|
5,602,554
| | | |
$
|
88,791
| | |
6.25
|
%
| | | |
$
|
5,461,611
| | | |
$
|
341,458
| | |
6.21
|
%
|
|
Investment securities - taxable
| | | | |
1,009,788
| | | | |
6,313
| | |
2.49
|
%
| | | | |
1,072,564
| | | | |
29,206
| | |
2.72
|
%
|
|
Investment securities - non-taxable (2)
| | | | |
177,487
| | | | |
1,654
| | |
3.73
|
%
| | | | |
182,881
| | | | |
7,028
| | |
3.84
|
%
|
|
Federal funds sold and securities purchased
| | | | | | | | | | | | | | | | | | | |
|
under agreements to resell
| | | | |
11,579
| | | | |
9
| | |
0.31
|
%
| | | | |
18,120
| | | | |
52
| | |
0.29
|
%
|
|
Interest-bearing deposits in other
| | | | | | | | | | | | | | | | | | | | |
|
financial institutions
| | | | |
690,282
| | | | |
386
| | |
0.22
|
%
| | | | |
698,638
| | | | |
1,602
| | |
0.23
|
%
|
|
Other
| | | |
|
251,819
|
| | |
|
2,715
| | |
4.27
|
%
| | | |
|
229,461
|
| | |
|
11,770
| | |
5.16
|
%
|
|
Interest-earning assets, gross
| | | | |
7,743,509
| | | | |
99,868
| | |
5.09
|
%
| | | | |
7,663,275
| | | | |
391,116
| | |
5.08
|
%
|
|
Allowance for loan losses
| | | |
|
(45,263
|
)
| | | | | | | | | |
|
(40,516
|
)
| | | | | | |
|
Interest-earning assets, net
| | | | |
7,698,246
| | | | | | | | | | | |
7,622,759
| | | | | | | |
|
Noninterest-earning assets
| | | |
|
1,308,911
|
| | | | | | | | | |
|
1,343,070
|
| | | | | | |
| Total assets | | | |
$
|
9,007,157
|
| | | | | | | | | |
$
|
8,965,829
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | | | | | |
|
Interest-bearing liabilities
| | | | | | | | | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | |
$
|
4,235,895
| | | |
$
|
4,769
| | |
0.45
|
%
| | | |
$
|
4,490,748
| | | |
$
|
15,742
| | |
0.35
|
%
|
|
Notes payable and other borrowings
| | | |
|
931,924
|
| | |
|
3,032
| | |
1.28
|
%
| | | |
|
934,031
|
| | |
|
11,886
| | |
1.27
|
%
|
|
Total interest-bearing liabilities
| | | | |
5,167,819
| | | | |
7,801
| | |
0.60
|
%
| | | | |
5,424,779
| | | | |
27,628
| | |
0.51
|
%
|
|
Noninterest-bearing liabilities
| | | | | | | | | | | | | | | | | | | | |
|
Noninterest-bearing deposits
| | | | |
2,070,772
| | | | | | | | | | | |
1,862,277
| | | | | | | |
|
Other liabilities
| | | |
|
282,345
|
| | | | | | | | | |
|
283,922
|
| | | | | | |
|
Total liabilities
| | | | |
7,520,936
| | | | | | | | | | | |
7,570,978
| | | | | | | |
|
Stockholders' equity
| | | | |
1,485,680
| | | | | | | | | | | |
1,394,351
| | | | | | | |
|
Noncontrolling interest
| | | |
|
541
|
| | | | | | | | | |
|
500
|
| | | | | | |
| Total liabilities and stockholders' equity | | | |
$
|
9,007,157
|
| | | | | | | | | |
$
|
8,965,829
|
| | | | | | |
| | | | | | |
| | | | | | | | | |
| | | |
| Net interest income(2) | | | | | | |
$
|
92,067
| | | | | | | | | |
$
|
363,488
| | | |
| Net interest spread(2) | | | | | | | | | |
4.49
|
%
| | | | | | | | | |
4.57
|
%
|
| Net interest margin(2) | | | | | | | | | |
4.72
|
%
| | | | | | | | | |
4.74
|
%
|
|
| |
| |
|
(1)
| |
Average balance includes non-accrual loans.
|
|
(2)
| |
Annualized taxable equivalent adjustments are based on a 35% tax
rate. The adjustment to interest income was $0.6 million and $2.3
million for the three months ended December 31, 2014 and full year
ended December 31, 2014, respectively.
|
| | |
|
Conference Call Information
Hilltop will host a live webcast and conference call at 8:00 AM Central
(9:00 AM Eastern), Friday, February 27, 2015. Hilltop President and CEO
Jeremy B. Ford and other key management members will discuss 2014
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 is a Dallas-based financial holding company. Through its wholly
owned subsidiary, PlainsCapital Corporation, a regional commercial
banking franchise, Hilltop has two operating subsidiaries: PlainsCapital
Bank and PrimeLending. Under Hilltop Securities, First Southwest,
Southwest Securities and SWS Financial provide a full complement of
securities brokerage, institutional and investment banking services in
addition to clearing services and retail financial advisory. Through
Hilltop’s other wholly owned subsidiary, National Lloyds Corporation, it
provides property and casualty insurance through two insurance
companies, National Lloyds Insurance Company and American Summit
Insurance Company. At January 1, 2015, Hilltop employed approximately
5,300 people and operated approximately 450 locations in 44 states.
Hilltop's common stock is listed on the New York Stock Exchange under
the symbol "HTH." Find more information at hilltop-holdings.com,
plainscapital.com, firstsw.com, swst.com, primelending.com and
natlloyds.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 Hilltop’s actual results,
performance or achievements to be materially different from any expected
future results, performance or achievements. Forward-looking statements
speak only as of the date they are made and, except as required by law,
Hilltop does not assume any duty to update forward-looking statements.
Such forward-looking statements include, but are not limited to,
statements about the future financial and operating results, our plans,
objectives, expectations and intentions and other statements that are
not historical facts. The following factors, among others, could cause
actual results to differ from those set forth in the forward-looking
statements: (i) risks associated with merger and acquisition
integration; (ii) our ability to estimate loan losses; (iii) changes in
the default rate of our loans; (iv) risks associated with concentration
in real estate related loans; (v) our ability to obtain reimbursements
for losses on acquired loans under loss-share agreements with the
Federal Deposit Insurance Corporation; (vi) changes in general economic,
market and business conditions in areas or markets where we compete;
(vii) severe catastrophic events in our geographic area; (viii) changes
in the interest rate environment; (ix) cost and availability of capital;
(x) changes in state and federal laws, regulations or policies affecting
one or more of our business segments, including changes in regulatory
fees, deposit insurance premiums, capital requirements and the
Dodd-Frank Wall Street Reform and Consumer Protection Act; (xi) our
ability to use net operating loss carry forwards to reduce future tax
payments; (xii) approval of new, or changes in, accounting policies and
practices; (xiii) changes in key management; (xiv) competition in our
banking, mortgage origination, broker-dealer and insurance segments from
other banks and financial institutions, as well as insurance companies,
mortgage bankers, investment banking and financial advisory firms,
asset-based non-bank lenders and government agencies; (xv) failure of
our insurance segment reinsurers to pay obligations under reinsurance
contracts; and (xvi) our ability to use excess cash in an effective
manner, including the execution of successful acquisitions. For more
information, see the risk factors described in the Annual Report on Form
10-K for the year ended December 31, 2014 and other reports filed with
the Securities and Exchange Commission.
Hilltop Holdings Inc.
Isabell Novakov, 214-252-4029
inovakov@plainscapital.com
Source: Hilltop Holdings Inc.