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Hilltop Holdings Inc.

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Hilltop Holdings Inc.
Company typePublic
IndustryFinancial services
Founded1998
Headquarters6565 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)
Websitehilltop-holdings.com

Hilltop Holdings Inc. is a financial holding company based in Dallas, Texas.[1] It offers financial products and banking services through three primary subsidiaries: PlainsCapital Bank,[2] PrimeLending,[3] and HilltopSecurities.[4]

Corporate overview

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Hilltop Holdings is a financial holding company that provides business and consumer banking services from locations all around Texas via its primary subsidiary, PlainsCapital Bank. A wholly owned subsidiary of PlainsCapital Bank, PrimeLending, provides mortgage lending services with offices throughout the United States. Hilltop Securities Inc. and Hilltop Securities Independent Network Inc. are subsidiaries of Hilltop Holdings that provide brokerage and investment banking services to clients throughout the United States.

Jeremy Ford was named as the sole CEO of Hilltop Holdings in April 2019.[5] William Furr was appointed as chief financial officer in September 2016.[6]

As of its June 30, 2019 earnings report, Hilltop Holdings reported employment of about 5,100 people and operating 440 locations in 41 U.S. states, with total assets of US$14.3 billion.[7]

History and acquisitions

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Hilltop Holdings was established as Affordable Residential Communities in 1998. The real estate investment trust focused on acquiring, renovating and operating manufactured home communities, among other services. The company completed an initial public offering in July 2004.[8] In 2007, Affordable Residential Communities sold its manufactured home communities business assets for US$1.8 billion and changed its name to Hilltop Holdings Inc.[9] Also in 2007, Hilltop Holdings purchased National Lloyds Corporation, an insurance company specializing in coverage for manufactured homes.[10]

On November 30, 2012, Hilltop Holdings acquired PlainsCapital Corporation and its operating subsidiaries PlainsCapital Bank, PrimeLending and First Southwest Company.[11] It acquired the former First National Bank of Edinburg, Texas, in 2013.[12]

In January 2015, Hilltop Holdings finalized acquisition of SWS Group Inc. for approximately US$350 million. The SWS subsidiary Southwest Securities Federal Savings Bank (FSB) was merged into PlainsCapital Bank.[13][14] In January 2016, Hilltop Holdings subsidiaries First Southwest Company and the previous SWS banking subsidiary Southwest Securities Inc. merged and began operations as HilltopSecurities.[15]

In June 2020, Hilltop Holdings completed the sale of National Lloyds Corporation and its subsidiaries to Align Financial Holdings, LLC. for $150 million [16]

Recent rankings

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  • 2016: Second on Bank Director's list of best-performing medium-sized banks (between US$5 billion and US$50 billion in assets)[17]
  • 2016: No. 31 on the Fortune 100 list of 100 Fastest-Growing Companies based on revenue and earnings per share growth and annualized returns over the past three years[18]
  • 2015 and 2016: No. 52 in Dallas Business Journal list of the top 100 public companies in North Texas for 2015; ranked No. 42 in 2016[19]
  • 2015 and 2016: No. 18 and No. 5 in 2015 and 2016, respectively, in the Forbes list Top 100 largest publicly traded banks and thrifts[20]
  • 2014: No. 3 in Bank Director magazine's Bank Performance Scorecard in US$5 billion to US$50 billion asset category[21]
  • 2013: No. 57 in Best's Review's Top 75 North American Public Insurers based on 2012 assets[22]

Subsidiary: PlainsCapital Bank

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PlainsCapital Bank
Founded1998 in Lubbock, Texas, Texas, US
HeadquartersDallas, Texas, US
Key people
Jerry L. Schaffner (President and CEO), Brian L. Heflin (Chief Operating Officer)
ServicesConsumer banking
Websitewww.plainscapital.com

Predecessors: Plains National Bank, Southwest Securities FSB

Deposits: US$ 7.1 billion (2016)

Parent: Hilltop Holdings Inc.

PlainsCapital Bank conducts commercial and consumer banking in the state of Texas, with 63 branch locations as of 2016.[23] The bank is a member of the Federal Deposit Insurance Corporation (FDIC) and states it is an Equal Housing Lender. The bank offers:

  • Commercial lending and other commercial banking services
  • Treasury management
  • Small business banking
  • Private banking
  • Trust and wealth management services
  • Consumer banking

As of 2016, the bank ranks as the 6th largest bank based in Texas, based on deposit market share with total deposits of US$7.1 billion reported.[24]

History and acquisitions: PlainsCapital Bank

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The bank was founded as Plains National Bank by Alan B. White, its former chairman, in 1988 in Lubbock, Texas USA. In 1999, it expanded with a branch in Dallas, and acquired Dallas-based residential mortgage lender PrimeLending. The bank added branches in other major Texas markets through the 2000s. In 2003 the bank changed its name to PlainsCapital Bank.[25]

In 2009, PlainsCapital acquired First Southwest Company, a Dallas-based public finance advisory firm and investment bank.[26]

In 2012 the bank was acquired by Hilltop Holdings.[27] In 2013 Hilltop Holdings acquired PlainsCapital acquired First National Bank of Edinburg, Texas,[28] and merged its operations into PlainsCapital Bank. As part of the Hilltop Holdings acquisition of SWS Group, Southwest Securities Inc. was merged into PlainsCapital Bank in 2015. As part of that process, First Southwest Co. was moved out from under PlainsCapital Bank, to become a direct subsidiary of Hilltop Holdings. In early 2016, First Southwest Co. was officially merged with Southwest Securities Inc. to become HilltopSecurities.[29] Today PlainsCapital Bank operates as a subsidiary of Hilltop Holdings, with PrimeLending as its main subsidiary.

Subsidiary: PrimeLending

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PrimeLending
Founded1986
HeadquartersDallas, Texas, US
Key people
Steve Thompson (President & CEO), Todd L. Salmans (Chairman)
ServicesHome loans, mortgage refinancing
Websitewww.primelending.com

Loans: US$ 23 billion (2020)

Parent: Hilltop Holdings Inc.

As a direct subsidiary of PlainsCapital Bank, PrimeLending is a national residential mortgage originator providing home loans, home renovation loans and mortgage refinancing.[30]

PrimeLending has ranked as a Top 10 purchase lender yearly since 2012, based on purchase units. It reported originating US$23 billion in loans in 2020.[31] Steve Thompson is the President and CEO.[32]

As of December 2021, PrimeLending reported approximately 300 locations in the United States, with approximately 1,250 loan officers. PrimeLending is licensed to originate and close loans in all 50 states and in the District of Columbia. PrimeLending sells many of the loans it originates into secondary markets. It offers:

  • Conventional
  • Fixed- and adjustable-rate loans
  • VA home loans
  • FHA home loans
  • Jumbo home loans
  • USDA home loans
  • Home renovation loans
  • Relocation services[33]

History and acquisitions: PrimeLending

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The corporation was founded in 1986 and started initial operations with a staff of 20. Its first year, it reported generating US$80 million in home loans.[34] PrimeLending was acquired by PlainsCapital Corporation in 1999.[35] On November 30, 2012, Hilltop Holdings acquired PlainsCapital Corporation and its operating subsidiaries, including PrimeLending.[36] Today PrimeLending operates as a subsidiary of PlainsCapital Bank.

Subsidiary: HilltopSecurities

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HilltopSecurities
IndustryFinancial services
FoundedJanuary 2016
HeadquartersDallas, Texas, US
Key people
M. Bradley Winges (President and CEO),[37] Hill A. Feinberg (Chairman)[38]
Websitewww.hilltopsecurities.com

Predecessors: Southwest Securities, Inc. FirstSouthwest Co LLC

Parent: Hilltop Holdings Inc.

HilltopSecurities is a financial services company headquartered in Dallas. The company is a broker-dealer and Registered Investment Adviser that provides investment banking and financial advisory services.[39] It was founded in January 2016 from the merger of two Dallas-based financial firms, FirstSouthwest Company and Southwest Securities, Inc.[40]

HilltopSecurities is led by M. Bradley Winges, president and CEO. Former CEO, Hill A. Feinberg, serves as chairman.[41] As of January 2016, HilltopSecurities had approximately 1,000 employees in approximately 50 offices in the United States.[42]

HilltopSecurities provides financial services for public and private organizations, investors and issuers[43] through six main lines of business:

  • Capital markets
  • Public finance
  • Retail brokerage
  • Structured finance
  • Securities lending services
  • Securities clearing services[44]

The company is a founding member of the American Securities Association, an industry association established in February 2016 to represent the interests of mid-sized and regional investment banks and securities dealers.[45]

History and acquisitions: HilltopSecurities

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FirstSouthwest Co. was founded in 1946,[46] and in 1991 was acquired by a Dallas group including individual investors Hill A. Feinberg, Tom Luce and Bob Utley.[47] By 2003 the firm was operating in eight states. PlainsCapital Bank acquired FirstSouthwest at the end of 2008.[48] Following the acquisition, FirstSouthwest continued to operate independently under its original name.[49]

Southwest Securities, Inc. was founded in April 1972 as MidSouthwest Securities, Inc. and removed the "Mid" to become Southwest Securities, Inc. in 1979.[50] Its parent company, SWS Group, Inc., announced in 2014 that it was being acquired by Hilltop Holdings Inc. in a stock and cash deal.[51] The acquisition of SWS Group and its subsidiaries, including Southwest Securities, Inc. was completed on January 1, 2015.[52] With the acquisition, Hilltop Holdings began a process to merge Southwest Securities and FirstSouthwest.[53] On January 25, 2016, HilltopSecurities announced its official launch as a new entity, following regulatory approval for the merger under Hilltop Holdings ownership.[54][55] Today, HilltopSecurities operates as a subsidiary of Hilltop Holdings.[56]

Subsidiary: National Lloyds Corporation

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National Lloyds Corporation
IndustryInsurance
Founded1949 in Texas, US
HeadquartersWaco, Texas, US
Key people
Robert Otis (CEO)
Websitewww.NationalLloydsInsurance.com

Predecessors: Southwest Securities, Inc. FirstSouthwest Co LLC

Parent: Hilltop Holdings Inc.

National Lloyds Corporation specializes in providing insurance for affordable dwellings and manufactured homes. It provides policies through two wholly owned subsidiaries:

  • National Lloyds Insurance Co.
  • American Summit Insurance Co.[57]

Robert Otis is the current CEO of National Lloyds Corp. About 4,200 independent agencies sell insurance from National Lloyds Corp. Types of insurance provided include:

  • Homeowners insurance
  • Mobile home insurance
  • Fire insurance
  • Flood insurance
  • Commercial and business insurance[58]

National Lloyds also operates the Nalico General Agency, which is licensed to sell insurance in 30 US states. The niche insurance agency was launched in 1983. It works with independent insurance agents and agencies, and makers and retailers of manufactured housing.[59]

History and acquisitions: National Lloyds Corporation

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Founded in 1949 in the US state of Texas, National Lloyds Insurance Co. received its operating charter in 1949. Its operating company, NLASCO Inc., moved the corporate headquarters to Waco, Texas, in 1964. In 1983, the corporation launched a managing insurance agency, Nalico General Agency. In 2001, NLASCO acquired the American Summit Insurance Co. Previously American Summit was an independent insurance company that received its charter in 1956. In 2006 the corporation acquired the Longhorn General Agency, and merged its operations into Nalico General Agency.[60]

Hilltop Holdings acquired NLASCO Inc. in 2007.[61] In September 2013, NLASCO changed its name to National Lloyds Corporation, including a rebranding effort and a new corporate logo. In 2017 National Lloyds adopted the logo of the Hilltop brands.[62] Today, National Lloyds Corporation operates as a subsidiary of Hilltop Holdings.

References

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  1. ^ Kamich, Bruce (December 2, 2016). "Hilltop Holdings and Carriage Services Look Like Good Technical Small-Cap Picks." TheStreet.com. Retrieved January 3, 2017.
  2. ^ “About Us: Our Story,” Public website of PlainsCapital Bank
  3. ^ "Hilltop Holdings Named One of Fortune's 100 Fastest-Growing Companies for 2016." TheStreet.com. November 7, 2016. Retrieved January 3, 2017.
  4. ^ "HilltopSecurities' Capital Markets Makes Strategic Appointments to MBS Trading and Sales." TheStreet.com. August 18, 2016. Retrieved January 3, 2017.
  5. ^ "Hilltop in Dallas to have one CEO after veteran banker's retirement." American Banker. February 25, 2019. Retrieved July 29, 2019. (subscription required (help)).
  6. ^ "Hilltop Holdings Names Chief Financial Officer." Global Banking News. August 25, 2016. Retrieved January 3, 2017.
  7. ^ “Hilltop Holdings Inc. Announces Financial Results for Second Quarter 2019,” public media release [1]
  8. ^ "Hilltop Holdings Inc. (HTH): New Analyst Report from Zacks Equity Research." NASDAQ. January 23, 2014. Retrieved January 3, 2017.
  9. ^ "Affordable Residential Communities Inc. Closes Sale of Its Communities Business - Company Changes Name to Hilltop Holdings Inc." U.S. Securities and Exchange Commission. July 31, 2007. Retrieved January 3, 2017.
  10. ^ “Hilltop Holdings public corporate overview,” PDF published on HilltopSecurities public website [2]
  11. ^ Stewart, Jackie (May 10, 2012). "Group Led by Gerald Ford to Buy PlainsCapital in Texas for $520 Million." American Banker. SourceMedia. ISSN 0002-7561. Retrieved January 3, 2017.
  12. ^ “PlainsCapital Bank expanding branch network with First National buy-out,” San Antonio Business Journal, September 16, 2013 [3]
  13. ^ Kezar, Korri (January 2, 2015). "Hilltop Holdings completes acquisition of SWS Group in merger valued at $350M." Dallas Business Journal. American City Business Journals. Retrieved January 3, 2017.
  14. ^ Cho, Hanah (April 2014). "Hilltop Holdings to acquire SWS Group in stock-and-cash deal." The Dallas Morning News. A. H. Belo. Retrieved January 3, 2017.
  15. ^ Williamson, Richard (October 23, 2015). "First Southwest to Join Southwest Securities Under Hilltop Name." The Bond Buyer. Retrieved February 6, 2017.
  16. ^ "Hilltop Holdings Inc. Announces Sale of National Lloyds Corporation to Align Financial Holdings, LLC". Business Wire. Retrieved 1 July 2020.
  17. ^ Milligan, Jack (July 1, 2016). "Winning with Operating Leverage." Bank Director. Retrieved January 3, 2017.
  18. ^ "Hilltop Holdings Named One of Fortune's 100 Fastest-Growing Companies for 2016." TheStreet.com. November 7, 2016. Retrieved January 3, 2017.
  19. ^ "Hilltop Holdings Ranked Among Top Five Fastest Growing North Texas Public Companies." TheStreet.com. January 27, 2016. Retrieved April 3, 2017.
  20. ^ Badenhausen, Kurt (January 7, 2016). "Full List: Rating America's 100 Largest Banks." Forbes. ISSN 0015-6914. Retrieved May 15, 2017.
  21. ^ "Hilltop Holdings Garners Recognition on Bank Director Magazine's 2014 Bank Performance Scorecard." Entertainment Close-up. September 2, 2014. Retrieved April 3, 2017.
  22. ^ "Top 75 North American Public Insurers." Best's Review. July 1, 2013. Retrieved January 3, 2017.
  23. ^ “About Us: Our Story,” Public website of PlainsCapital Bank
  24. ^ “PlainsCapital Bank Financial Results,” iBanknet.com
  25. ^ “About Us: Our Story,” Public website of PlainsCapital Bank
  26. ^ Shoaib, Zaeem (November 17, 2008). "Plains Capital to acquire First Southwest in stock-for-stock deal." SNL Bank Weekly Southern Edition. Retrieved May 15, 2017.
  27. ^ "Hilltop set to acquire PlainsCapital." Global Banking News. May 9, 2012. Retrieved May 3, 2017.
  28. ^ Kezar, Korri (January 2, 2015). "Hilltop Holdings completes acquisition of SWS Group in merger valued at $350M." Dallas Business Journal. American City Business Journals. Retrieved January 3, 2017.
  29. ^ Milligan, Jack (July 1, 2016). "Winning with Operating Leverage." Bank Director. Retrieved January 3, 2017.
  30. ^ “About PrimeLending” PrimeLending public website
  31. ^ Page 75, Mortgage Loan Originations (PrimeLending), Hilltop Holdings Inc. Form 10-K filed with Securities and Exchange Commission, Fiscal Year 2016, [4]
  32. ^ “About PrimeLending” PrimeLending public website
  33. ^ “PrimeLending Loan Options,” from public website of PrimeLending
  34. ^ "Hilltop set to acquire PlainsCapital." Global Banking News. May 9, 2012.
  35. ^ “About Us: Our Story,” Public website of PlainsCapital Bank
  36. ^ “Hilltop Holdings public corporate overview,” PDF published on HilltopSecurities public website [5]
  37. ^ Williamson, Richard, "Hilltop Names Winges as CEO", "The Bond Buyer", Dec 13, 2018]
  38. ^ Williamson, Richard, "Hilltop Names Winges as CEO", "The Bond Buyer", Dec 13, 2018]
  39. ^ "Hilltop Securities Inc." United States Securities Exchange Commission. Retrieved April 13, 2017.
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  41. ^ Williamson, Richard, "Hilltop Names Winges as CEO", "The Bond Buyer", Dec 13, 2018]
  42. ^ Nicol, Drew (January 26, 2016). "Hilltop Holdings fuses broker-dealer services." Securities Lending Times. Retrieved February 6, 2016.
  43. ^ Williamson, Richard (October 23, 2015). "First Southwest to Join Southwest Securities Under Hilltop Name." The Bond Buyer. Retrieved February 6, 2017.
  44. ^ Williamson, Richard (February 9, 2016). "Hilltop Securities Hires Edward Jones Team." The Bond Buyer. Retrieved June 2, 2017.
  45. ^ Skinner, Liz (February 24, 2016). "New association forms to represent mid-sized broker-dealers." InvestmentNews. Retrieved June 2, 2017.
  46. ^ Albanese, Elizabeth (January 30, 2003). "Financial Advisers: First Southwest Continues Reign as Regional Leader." The Bond Buyer.
  47. ^ Vachon, Michael (September 9, 1991). "First Southwest Co. sold to Texas investor group." Investment Dealers' Digest. Retrieved February 6, 2017.
  48. ^ Shoaib, Zaeem (November 17, 2008). "Plains Capital to acquire First Southwest in stock-for-stock deal." SNL Bank Weekly Southern Edition. Retrieved May 15, 2017.
  49. ^ Jawaid, Asad (January 5, 2009). "Plains Capital completes acquisition of First Southwest, receives $87.6 million under TARP." SNL Bank Weekly Southern Edition.
  50. ^ Simnacher, Joe (September 4, 1999). "Rites Tuesday for Allen B. Cobb; Businessman, 71, was co-founder of Southwest Securities." The Dallas Morning News. p. 35A.
  51. ^ Kelly, Bruce (April 1, 2014). "Southwest Securities sold as part of merger." Investment News. Retrieved February 9, 2017.
  52. ^ "Hilltop Holdings acquires SWS Group in a $350M Deal." Zacks Equity Research. January 2, 2015. Retrieved February 6, 2017.
  53. ^ Nicol, Drew (January 26, 2016). "Hilltop Holdings fuses broker-dealer services." Securities Lending Times. Retrieved February 6, 2017.
  54. ^ Kezar, Korri (January 2, 2015). "Hilltop Holdings completes acquisition of SWS Group in merger valued at $350M." Dallas Business Journal. American City Business Journals. Retrieved January 3, 2017.
  55. ^ Cho, Hanah (April 2014). "Hilltop Holdings to acquire SWS Group in stock-and-cash deal." The Dallas Morning News. A. H. Belo. Retrieved January 3, 2017.
  56. ^ Williamson, Richard (October 23, 2015). "First Southwest to Join Southwest Securities Under Hilltop Name." The Bond Buyer. Retrieved February 6, 2017.
  57. ^ “About National Lloyds Insurance: What We Do” Public website of National Lloyds Insurance [6]
  58. ^ “About National Lloyds Insurance: What We Do” Public website of National Lloyds Insurance [7]
  59. ^ “About National Lloyds Insurance: What We Do” Public website of National Lloyds Insurance [8]
  60. ^ “About National Lloyds Insurance: What We Do” Public website of National Lloyds Insurance [9]
  61. ^ “Hilltop Holdings public corporate overview,” PDF published on HilltopSecurities public website [10]
  62. ^ “National Lloyds Unveils New Corporate Brand” media release from National Lloyds Corporation, February 156, 2017 [11]
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