Hilltop Holdings Inc.

Hilltop Holdings Inc.

Company type	Public
Traded as	NYSE: HTH S&P 600 component
Industry	Financial services
Founded	1998
Headquarters	6565 Hillcrest Ave Dallas, Texas, U.S.
Key people	Jeremy Ford (CEO & President), William Furr (Chief Financial Officer), Darren Parmenter (Chief Administrative Officer)
Number of employees	4,950 (2021)
Website	hilltop-holdings.com

Hilltop Holdings Inc. operates as a financial holding enterprise based in Dallas, Texas. Its portfolio includes financial and banking services delivered through three principal subsidiaries: PlainsCapital Bank, PrimeLending, and HilltopSecurities.

Corporate overview

Through PlainsCapital Bank, Hilltop Holdings primarily delivers commercial and retail banking services throughout Texas. Its wholly owned subsidiary, PrimeLending, provides mortgage financing on a national scale. Brokerage and investment banking services are offered across the United States via Hilltop Securities Inc. and Hilltop Securities Independent Network Inc.

Since April 2019, Jeremy Ford has held the position of CEO, while William Furr has served as CFO since September 2016.

By mid-2019, the company employed close to 5,100 individuals operating from approximately 440 offices across 41 states, managing assets totaling US$14.3 billion.

History and acquisitions

Initially established in 1998 under the name Affordable Residential Communities, the firm concentrated on manufactured housing communities. Following its initial public offering in July 2004, it divested its manufactured home assets for US$1.8 billion in 2007 and adopted the name Hilltop Holdings Inc. That same year, it acquired National Lloyds Corporation, an insurer specializing in coverage for manufactured homes.

On November 30, 2012, Hilltop expanded by acquiring PlainsCapital Corporation along with its subsidiaries PlainsCapital Bank, PrimeLending, and First Southwest Company. The following year saw further growth with the purchase of First National Bank of Edinburg, Texas.

In January 2015, Hilltop completed its acquisition of SWS Group Inc., valued at approximately US$350 million; Southwest Securities Federal Savings Bank was integrated into PlainsCapital Bank. By January 2016, the operations of First Southwest Company and Southwest Securities Inc. were consolidated under the HilltopSecurities brand.

In June 2020, Hilltop divested National Lloyds Corporation and its related entities to Align Financial Holdings for $150 million.

Recent rankings

• In 2016, the company secured the second position on Bank Director's ranking of top-performing medium-sized banks, defined by assets ranging from US$5 billion to US$50 billion.
• That same year, it was placed 31st on Fortune's list of the 100 Fastest-Growing Companies, evaluated based on revenue growth, earnings per share, and three-year annualized returns.
• The Dallas Business Journal featured the company among its top 100 public firms in North Texas, ranking it 52nd in 2015 and improving to 42nd in 2016.
• Forbes recognized the firm as one of the largest publicly traded banks and thrifts, placing it at No. 18 in 2015 and climbing to No. 5 in 2016.
• In 2014, Bank Director magazine rated it third on its Bank Performance Scorecard for institutions holding assets between US$5 billion and US$50 billion.
• Best's Review ranked the company 57th among North America's top 75 public insurers by asset size in 2013.

Subsidiary: PlainsCapital Bank

PlainsCapital Bank delivers commercial and retail banking services throughout Texas, maintaining a network of 63 branches as of 2016. It is a member of the FDIC and an Equal Housing Lender. The bank's offerings encompass:

• Commercial lending and banking solutions
• Treasury management services
• Small business banking
• Private banking
• Trust and wealth advisory
• Consumer banking products

With deposits totaling US$7.1 billion in 2016, PlainsCapital stood as the sixth-largest Texas-based bank by deposit market share.

History and acquisitions: PlainsCapital Bank

Established in 1988 by Alan B. White in Lubbock, Texas, PlainsCapital Bank began as Plains National Bank. It expanded into the Dallas market in 1999 and acquired PrimeLending, a residential mortgage lender based in Dallas. Throughout the early 2000s, the bank broadened its presence across key Texas markets and adopted the name PlainsCapital Bank in 2003.

In 2009, PlainsCapital acquired First Southwest Company, a Dallas-based public finance advisory firm and investment bank.

Hilltop Holdings purchased PlainsCapital Bank in 2012. The following year, Hilltop also acquired First National Bank of Edinburg, Texas, integrating it into PlainsCapital. After Hilltop's acquisition of SWS Group in 2015, Southwest Securities Inc. was merged into PlainsCapital Bank, while First Southwest Co. was designated a direct subsidiary of Hilltop Holdings. By 2016, First Southwest combined with Southwest Securities to establish HilltopSecurities. Presently, PlainsCapital Bank functions as a subsidiary under Hilltop Holdings with PrimeLending as its primary subsidiary.

Subsidiary: PrimeLending

PrimeLending operates as a direct subsidiary of PlainsCapital Bank and serves as a nationwide originator of residential mortgages offering home purchase loans, renovation financing, and refinancing options.

Since 2012, PrimeLending has consistently ranked within the Top 10 purchase lenders by loan volume, originating US$23 billion worth of loans in 2020 alone. Steve Thompson holds the position of President and CEO.

As of December 2021, PrimeLending maintained roughly 300 branches across the United States with approximately 1,250 loan officers. Licensed in all fifty states plus Washington D.C., many of its loans are sold into secondary markets. Its product offerings include:

• Conventional fixed-rate and adjustable-rate mortgages
• VA, FHA, Jumbo, and USDA home loans
• Loans for home renovations
• Relocation assistance services

History and acquisitions: PrimeLending

Founded in 1986 with a team of 20, PrimeLending originated by issuing US$80 million in home loans during its inaugural year. PlainsCapital Corporation acquired the company in 1999. Subsequently, on November 30, 2012, Hilltop Holdings purchased PlainsCapital Corporation along with its subsidiaries, including PrimeLending. Currently, PrimeLending functions as a subsidiary under PlainsCapital Bank.

Subsidiary: HilltopSecurities

Based in Dallas, HilltopSecurities operates as a broker-dealer and Registered Investment Adviser, providing investment banking and financial advisory solutions. The firm was created in January 2016 through the consolidation of FirstSouthwest Company and Southwest Securities, Inc. It maintains roughly 50 offices nationwide and employs about 1,000 professionals.

Under the leadership of President and CEO M. Bradley Winges, with former CEO Hill A. Feinberg serving as chairman, HilltopSecurities delivers services to public entities, private organizations, investors, and issuers across six primary business segments:

• Capital markets
• Public finance
• Retail brokerage
• Structured finance
• Securities lending services
• Securities clearing services

HilltopSecurities is also a founding participant of the American Securities Association, which advocates for mid-tier and regional investment banks and securities dealers.

History and acquisitions: HilltopSecurities

FirstSouthwest Co., established in 1946, was purchased in 1991 by a Dallas-based investor group including Hill A. Feinberg, Tom Luce, and Bob Utley. By 2003, the company had expanded operations into eight states. In late 2008, PlainsCapital Bank acquired FirstSouthwest, allowing it to continue operating autonomously under its original brand.

Southwest Securities, Inc., originally founded in 1972 as MidSouthwest Securities before adopting its current name in 1979, was part of SWS Group, Inc. In 2014, Hilltop Holdings announced the acquisition of SWS Group through a stock and cash transaction valued at $350 million; this deal closed on January 1, 2015. Following regulatory approval, Hilltop Holdings merged Southwest Securities with FirstSouthwest to officially form HilltopSecurities on January 25, 2016. Today, HilltopSecurities stands as a principal subsidiary within Hilltop Holdings.

Subsidiary: National Lloyds Corporation

National Lloyds Corporation is headquartered in Waco, Texas and specializes in insurance products tailored for affordable housing and manufactured homes via its subsidiaries National Lloyds Insurance Co. and American Summit Insurance Co. Led by CEO Robert Otis, National Lloyds distributes its policies through an extensive network of approximately 4,200 independent agencies.

The company’s insurance offerings encompass homeowners’, mobile home, fire, flood, and commercial/business coverage. Additionally, National Lloyds operates Nalico General Agency—a managing general agency licensed across 30 states since 1983—that collaborates with independent agents as well as manufacturers and retailers of manufactured housing.

History and acquisitions: National Lloyds Corporation

Founded in Texas in 1949, National Lloyds Insurance Co. received its operational charter that same year. Its operating entity NLASCO Inc. moved its headquarters to Waco in 1964. In 1983, the company established Nalico General Agency to serve as a managing insurance agency. NLASCO expanded through acquisitions such as American Summit Insurance Co., originally chartered in 1956 and acquired in 2001, and Longhorn General Agency in 2006; the latter was later integrated into Nalico General Agency.

Hilltop Holdings acquired NLASCO Inc. in 2007. In September 2013, NLASCO rebranded itself as National Lloyds Corporation with a refreshed corporate identity and subsequently adopted Hilltop’s branding standards in 2017. Presently operating as a subsidiary of Hilltop Holdings, National Lloyds continues to concentrate on Texas insurance markets while aligning strategically with Hilltop’s comprehensive financial services portfolio.