On this page of StockholderLetter.com we present the latest annual shareholder letter from Hilltop Holdings Inc. — ticker symbol HTH. Reading current and past HTH letters to shareholders can bring important insights into the investment thesis.
2023
ANNUAL
REPORT
NOTICE OF 2024
ANNUAL MEETING &
PROXY STATEMENT
2023 ANNUAL REPORT
2023 NET INCOME
$109.6 MILLION
PLAINSCAPITAL BANK
TOP 11 NATIONAL RETAIL
MORTGAGE ORIGINATOR
96% CUSTOMER
SATISFACTION RATING
12/31/2023 TOTAL ASSETS
$16.5 BILLION
HILLTOPSECURITIES
#7 TEXAS-BASED
BANK BY TEXAS
DEPOSITS
2023 ROAA
0.71%
2023 ROAE
5.31%
PRIMELENDING
#2 MUNICIPAL ADVISOR
IN THE NATION BASED ON
TOTAL NUMBER OF ISSUES
LETTER FROM OUR PRESIDENT & CEO
To Our Stockholders, Customers, and Employees:
Despite numerous economic, geopolitical, and
interest rate challenges in 2023, Hilltop Holdings   
customer-focused approach and diversified
business model supported continued improvement
across the organization. Our earnings per share,
dividends per share, and book value per share all
increased compared to 2022. At the same time, we
strengthened our liquidity, capital, and funding
positions, maintaining approximately $7.4 billion
of available liquidity at year end. Hilltop generated
net income of $109.6 million for the full year 2023.
Based on our growth, profitability, and safety and
soundness, Hilltop ranked No. 33 on S&P Global
Market Intelligence   s list of Top 50 Public Banks in
2023 and experienced the most upward movement
of any bank on the list. Hilltop also continues to
be rated    Investment Grade    by three national
credit rating agencies. Our approximately 29%
insider ownership aligns the interest of our
management, directors, and stockholders, while
driving the company   s long-term decision making
and appropriate risk management strategies.
In addition, employee engagement and morale
remain high, as demonstrated by the results
of our enterprise-wide, anonymous employee
engagement survey administered by Energage in
2023. Based on the survey results, I   m proud to
say that Hilltop Holdings, PlainsCapital Bank,
and PrimeLending were named Top Workplaces
in the financial services industry by Energage,
and Top Workplaces in Dallas-Fort Worth by The
Dallas Morning News. In addition, PlainsCapital
and PrimeLending received three Top Workplaces
Fall 2023 Cultural Excellence Awards from
Energage for scoring within the top 20% of eligible
organizations. This recognition is a testament to
our outstanding workforce and the strong culture
we have built together.
1
FINANCIAL PERFORMANCE
Headwinds that began in 2022, and
continued through 2023, including the
highest interest rate environment in 20
years, fierce competition for deposits,
a 60% decline in mortgage origination
volume across the industry, and a volatile
economic outlook presented a challenging
operating environment for Hilltop. Despite
this turmoil, prudent management of
operations at our lines of business and
sound stewardship of our balance sheet
allowed us to support our clients with
exceptional service and end the year with
strong capital and liquidity.
At PlainsCapital Bank, we delivered solid
results in the face of pressure against our
net interest margin due to elevated cost
of deposits and muted loan demand from
borrowers. PrimeLending continued to
experience a difficult mortgage market
as elevated mortgage rates and tight
inventories
challenged
affordability
for consumers and production volume.
HilltopSecurities offset down markets
in our Public Finance and Fixed Income
business lines by generating exceptional
results from our Structured Finance and
Wealth Management platforms. The
favorable results at HilltopSecurities
reflect the value of our diversified
offerings.
REVENUE1
($ IN MILLIONS)
$2,237
$1,940
$1,674
$1,424
2019
2020
2021
$1,567
2022
2023
$113
$110
2022
2023
NET INCOME1
($ IN MILLIONS)
$409
$374
$211
2019
2020
2021
1. All metrics are based on income from continuing operations.
2
CAPITAL MANAGEMENT
recently authorized a new stock repurchase program of
up to $75.0 million through January 2025. As a result
of our sound capital management and consistent
operating results, our tangible book value per share and
dividends per share have compounded at 10% and 19%,
respectively, over the past five years. Additionally, since
2015 Hilltop has returned over $1 billion to stockholders
via the repurchase of shares and payment of dividends.
Hilltop continued to execute on our capital management
strategy during 2023, maintaining peer-leading capital
ratios with a Common Equity Tier 1 Capital Ratio
of 19.32% and a Tier 1 Leverage Ratio of 12.23% at year
end. At the same time, Hilltop returned capital to our
stockholders, declaring cash dividends totaling $0.64
per common share in 2023 and paying $5.1 million to
repurchase 164,604 shares of common stock at an average
price of $30.95 per share. Hilltop   s Board of Directors
CAPITAL MANAGEMENT AND TANGIBLE BOOK VALUE GROWTH
$0.64
$0.60
$0.48
$0.36
$0.32
18.97%
16.70%
21.22%
$31.95
$28.28
$23.20
$28.37
19.32%
18.23%
$32.58
$31.49
$28.35
$27.18
$24.77
$19.65
TBVPS1
5-YEAR
CAGR
10%
2019
2020
2021
2022
2023
tangible book value Per Share (Tangible common equity/shares outstanding)
book value Per Share
common equity tier 1 risk based ratio
1. Tangible book value per share (TBVPS) is a non-GAAP financial measure. For a reconciliation of TBVPS to the nearest GAAP measure, see    Annex A    to the Proxy Statement
included herein.
3
 • shareholder letter icon 5/31/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/23/2023 HTH Stockholder Letter
 • stockholder letter icon More "Banking & Savings" Category Stockholder Letters
 • Benford's Law Stocks icon HTH Benford's Law Stock Score = 100


HTH Shareholder/Stockholder Letter Transcript:

2023
ANNUAL
REPORT
NOTICE OF 2024
ANNUAL MEETING &
PROXY STATEMENT

2023 ANNUAL REPORT
2023 NET INCOME
$109.6 MILLION
PLAINSCAPITAL BANK
TOP 11 NATIONAL RETAIL
MORTGAGE ORIGINATOR
96% CUSTOMER
SATISFACTION RATING
12/31/2023 TOTAL ASSETS
$16.5 BILLION
HILLTOPSECURITIES
#7 TEXAS-BASED
BANK BY TEXAS
DEPOSITS
2023 ROAA
0.71%
2023 ROAE
5.31%
PRIMELENDING
#2 MUNICIPAL ADVISOR
IN THE NATION BASED ON
TOTAL NUMBER OF ISSUES

LETTER FROM OUR PRESIDENT & CEO
To Our Stockholders, Customers, and Employees:
Despite numerous economic, geopolitical, and
interest rate challenges in 2023, Hilltop Holdings   
customer-focused approach and diversified
business model supported continued improvement
across the organization. Our earnings per share,
dividends per share, and book value per share all
increased compared to 2022. At the same time, we
strengthened our liquidity, capital, and funding
positions, maintaining approximately $7.4 billion
of available liquidity at year end. Hilltop generated
net income of $109.6 million for the full year 2023.
Based on our growth, profitability, and safety and
soundness, Hilltop ranked No. 33 on S&P Global
Market Intelligence   s list of Top 50 Public Banks in
2023 and experienced the most upward movement
of any bank on the list. Hilltop also continues to
be rated    Investment Grade    by three national
credit rating agencies. Our approximately 29%
insider ownership aligns the interest of our
management, directors, and stockholders, while
driving the company   s long-term decision making
and appropriate risk management strategies.
In addition, employee engagement and morale
remain high, as demonstrated by the results
of our enterprise-wide, anonymous employee
engagement survey administered by Energage in
2023. Based on the survey results, I   m proud to
say that Hilltop Holdings, PlainsCapital Bank,
and PrimeLending were named Top Workplaces
in the financial services industry by Energage,
and Top Workplaces in Dallas-Fort Worth by The
Dallas Morning News. In addition, PlainsCapital
and PrimeLending received three Top Workplaces
Fall 2023 Cultural Excellence Awards from
Energage for scoring within the top 20% of eligible
organizations. This recognition is a testament to
our outstanding workforce and the strong culture
we have built together.
1

FINANCIAL PERFORMANCE
Headwinds that began in 2022, and
continued through 2023, including the
highest interest rate environment in 20
years, fierce competition for deposits,
a 60% decline in mortgage origination
volume across the industry, and a volatile
economic outlook presented a challenging
operating environment for Hilltop. Despite
this turmoil, prudent management of
operations at our lines of business and
sound stewardship of our balance sheet
allowed us to support our clients with
exceptional service and end the year with
strong capital and liquidity.
At PlainsCapital Bank, we delivered solid
results in the face of pressure against our
net interest margin due to elevated cost
of deposits and muted loan demand from
borrowers. PrimeLending continued to
experience a difficult mortgage market
as elevated mortgage rates and tight
inventories
challenged
affordability
for consumers and production volume.
HilltopSecurities offset down markets
in our Public Finance and Fixed Income
business lines by generating exceptional
results from our Structured Finance and
Wealth Management platforms. The
favorable results at HilltopSecurities
reflect the value of our diversified
offerings.
REVENUE1
($ IN MILLIONS)
$2,237
$1,940
$1,674
$1,424
2019
2020
2021
$1,567
2022
2023
$113
$110
2022
2023
NET INCOME1
($ IN MILLIONS)
$409
$374
$211
2019
2020
2021
1. All metrics are based on income from continuing operations.
2

CAPITAL MANAGEMENT
recently authorized a new stock repurchase program of
up to $75.0 million through January 2025. As a result
of our sound capital management and consistent
operating results, our tangible book value per share and
dividends per share have compounded at 10% and 19%,
respectively, over the past five years. Additionally, since
2015 Hilltop has returned over $1 billion to stockholders
via the repurchase of shares and payment of dividends.
Hilltop continued to execute on our capital management
strategy during 2023, maintaining peer-leading capital
ratios with a Common Equity Tier 1 Capital Ratio
of 19.32% and a Tier 1 Leverage Ratio of 12.23% at year
end. At the same time, Hilltop returned capital to our
stockholders, declaring cash dividends totaling $0.64
per common share in 2023 and paying $5.1 million to
repurchase 164,604 shares of common stock at an average
price of $30.95 per share. Hilltop   s Board of Directors
CAPITAL MANAGEMENT AND TANGIBLE BOOK VALUE GROWTH
$0.64
$0.60
$0.48
$0.36
$0.32
18.97%
16.70%
21.22%
$31.95
$28.28
$23.20
$28.37
19.32%
18.23%
$32.58
$31.49
$28.35
$27.18
$24.77
$19.65
TBVPS1
5-YEAR
CAGR
10%
2019
2020
2021
2022
2023
tangible book value Per Share (Tangible common equity/shares outstanding)
book value Per Share
common equity tier 1 risk based ratio
1. Tangible book value per share (TBVPS) is a non-GAAP financial measure. For a reconciliation of TBVPS to the nearest GAAP measure, see    Annex A    to the Proxy Statement
included herein.
3



shareholder letter icon 5/31/2024 Letter Continued (Full PDF)
 

HTH Stockholder/Shareholder Letter (Hilltop Holdings Inc.) | www.StockholderLetter.com
Copyright © 2023 - 2024, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.