Hilltop Holdings Inc.

Good morning, ladies and gentlemen, and welcome to the Hilltop Holdings third quarter 2025 earnings conference call and webcast. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Please be advised that this call is being recorded today, Friday, October 24th, 2025. I would now like to turn the conference over to Matt Dunn. Please go ahead.

Thank you. Before we get started, please note that certain statements during today's presentation that are not statements of historical fact, including statements concerning such items as our outlook, business strategy, future plans, financial condition, credit risks and trends in credit, allowance for credit losses, liquidity and sources of funding, funding costs, dividends, stock repurchases, subsequent events, and impacts of interest rate changes, as well as such other items referenced in the preface of our presentation are forward-looking statements. These statements are based on management's current expectations concerning future events that by their nature are subject to risks and uncertainties. Our actual results, capital, liquidity, and financial condition may differ materially from these statements due to a variety of factors, including the precautionary statements referenced in the preface of our presentation and those included in our most recent annual and quarterly reports filed with the SEC. Please note that the information presented is preliminary and based upon data available at this time, except to the extent required by law to expressly disclaim any obligation to update earlier statements as a result of new information. Additionally, this presentation includes certain non-GAAP measures, including tangible common equity and tangible book value per share. The reconciliation of these measures to the nearest GAAP measure may be found in the appendix to this presentation, which is posted on our website at ir.hilltop.com. I will now turn the presentation over to Jeremy Ford.

Thank you, Matt, and good morning. For the third quarter, Hilltop reported net income of approximately $46 million, or 74 cents per diluted share. Return on average assets for the period was 1.2%, and return on average equity was 8.35%. To summarize the quarter, Plains Capital Bank realized a continued expansion in net interest margin while generating strong growth in both core loan and deposit balances. Prime Lending's results reflect a dampened summer home buying market where both volumes and margins remained under pressure, and Hilltop Securities produced a strong pre-tax margin from robust net revenue growth across all four of its business lines. Speaking of the results of each operating business in the third quarter, Plains Capital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, which resulted in a return on average assets of 1.34%. Net interest margin at the bank increased by seven basis points as we continued to actively manage down the cost of interest-bearing deposits. Loan yields at the bank increased four basis points on a linked quarter basis as the portfolio further repriced into a higher rate environment. Despite the highly competitive market in Texas, the bank produced strong core loan growth and saw a continued expansion within the loan pipeline. We expect competition to remain elevated in the coming quarters as we work to increase our market share and absorb modestly higher anticipated payoffs within the loan portfolio. Total core deposits within our markets at Plains Capital increased by 6% on a linked quarter basis. This growth was partially attributable to seasonal cash inflows from select large-balance customers. Further, Plains Capital did return $225 million of broker-dealer sweep deposits during the quarter. Results in the quarter included a $2.6 million reversal of credit losses. This was primarily driven by improvement in asset quality and stronger underlying economic conditions on the collective portfolio. Will is going to provide further commentary on credit in his prepared remarks. Overall, the bank showed continued healthy trends in loan growth and pipeline development, core deposit growth and interest expense management, and credit metrics that illustrate the quality of our loan portfolio. Moving to prime lending. but the company reported a pre-tax loss of $7 million during the quarter. The second quarter's subdued mortgage origination volumes persisted into the third quarter as the industry did not experience the increase in home buying activity that typically occurs during the summer months. Notably, existing home sales across the country reached their lowest level in over 30 years. While gain on sale margins did increase on a lean quarter basis, This was more than offset by a decline in origination fees. However, there were positive developments from the quarter as mortgage rates did modestly subside and home inventories saw a further reversion back towards more normalized levels. Homebuyers do continue to face affordability challenges and we expect heightened competition for mortgage origination volume to keep margins and fee under pressure. As we enter the seasonally slower fourth and first quarters of the year, we will continue to focus on reducing fixed expenses while recruiting talented mortgage originators in order to restore standalone profitability at Prime Lending. During the quarter, Hilltop Securities generated pre-tax income of $26.5 million on net revenues of $144.5 million for a pre-tax margin of 18%. Speaking to the business lines at Hilltop Securities, Public finance services produced a 28% year-over-year increase in net revenues, as the business continued to realize strong annual increases in both advisory and underwriting fees. Structured finance net revenues increased by $4 million from the third quarter of 2024, primarily due to a decline in market rates, which increased buy-side appetite for call-protected mortgage products. In wealth management, net revenues increased by $7 million to $50 million when compared to the third quarter of 2024. The strong year-over-year increase is due to higher advisory and transaction fee revenue within the retail segment and an increase in stock loan revenues due to wider spreads. Finally, the fixed income business showed a 13% increase in net revenues on a year-over-year basis as industry volumes remained robust within its municipal product segment. Overall, Hilltop Securities produced a very strong quarter where both the breadth and depth of offerings within the broker-dealer performed well. Hilltop Securities continues to invest in core areas of expertise as we leverage our national brand that is built on trust and a long-term focus on serving our clients. Moving to page four. Hilltop maintains strong capital levels with a common equity tier one capital ratio of 20%. Additionally, tangible book side per share increased over the prior quarter by 67 cents to $31.23. During the period, we returned $11 million to stockholders through dividends and repurchased $55 million in shares. Now I'd like to give a brief update on an important transition of the bank's leadership team. In November, Plains Capital Bank's Chief Credit Officer, Darrell Adams, plans to retire. Darrell has been with the bank for over 37 years, and his leadership has created the credit culture that we have today. I want to thank Darrell for his partnership and his friendship, as well as his incredible contribution. Fortunately, the bank has strong debt, so we promoted Brent Randall to become our new Chief Credit Officer. Brent has been with the bank for over 26 years, formerly serving as the Dallas Region Chairman. Coinciding with this transition, Thomas Ricks, who has been with the bank for over 22 years, will become the new Dallas Region Chairman. This is an exciting time for Plains Capital Bank as we elevate proven leaders from within. With a solid team in place, we believe that we are poised for continued growth and success while staying true to the bank's legacy and credit culture. Thank you. I'll now turn the presentation over to Will to discuss our financials in more detail.