Momentum - Third Quarter 2017

A Hilltop Holdings Publication

2nd/3rd Quarter 2017

MOMENTUM

National Lloyds

Striving for Excellence The growing number of players in the property and casualty insurance market in recent years has contributed to a highly competitive environment in which carriers are aggressively working to differentiate themselves with property owners. For nearly 70 years, Texas-based National Lloyds has been a recognized leader within its market segment, focusing on meeting customers' claim service needs with creative solutions and attention to detail. The key to the company’s ongoing success, according to National Lloyds Senior Vice President of Operations Mitch Jawitz, is excellence. “We strive for excellence in every detail, from policy offerings and insurance products, to our claims and adjustments,” said Jawitz. “We don’t take excellence for granted.” In an industry where growth is fought for tooth and nail, customer retention is a key priority. National Lloyds has always recognized the claims process as its defining opportunity and has invested extensive resources and training over the years to improving the claims experience for customers. “Claim settlement speed and transparency are key,” said John Cox, National Lloyds director of claims. “Slow processes and poor communication result in unhappy customers. We’ve built a highly-skilled team of experienced adjustors and examiners backed by an operations system specifically designed to aid in faster claims processing and precise claims payments.” Property and casualty insurance is a timesensitive business. When a claim is filed, oftentimes it can involve significant property damage, directly impacting the lives of

policyholders. National Lloyds has the people and systems in place to minimize the time between when customers report damages and when the company issues repair estimates. The company has an extensive network of more than 4,500 independent agents across the country. These valuable relationships serve as National Lloyds’ eyes and ears in areas where the company does not have its own team of field agents available to respond. Cox added that professionalism and communication are always top of mind in dealing with customers, as is sensitivity to the situation. “Regardless of the outcome, in working through a claim to bring it to conclusion in compliance with the insurance policy, we continually reinforce the idea of approaching the claims process from the customer’s perspective—treating the situation as if it were our own property that had been damaged,” said Cox. Other areas where National Lloyds works to excel in claims excellence and increase customer satisfaction include accessibility—

making it easy for customers to contact the company to find out the status of their claim— and timely communication—keeping customers informed and up-to-date on the process. “Whether or not a customer’s policy covers the damages, it’s important that we properly explain how their coverage works, working through their claim to bring it to conclusion, always thanking them for their business, and emphasizing the point that if they have any further questions, now they have a relationship with one of our adjustors,” said Cox To foster service excellence, National Lloyds strives to excel in all of its internal business operations, creating a respectful, team-oriented environment for its more than 160 employess. In that way, the circle of excellence goes around. “We are focused on setting high standards in claims management and customer care,” said Cox, “providing comprehensive policies and maintaining an unwavering commitment to policy holders."

Home Makers

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Latonia Donaldson and Steve Thompson

Breaking Through Homeownership Barriers at PrimeLending

HilltopSecurities in early 2017, public finance plans to continue expansion by recruiting in regions that were not part of the division’s original efforts, including the Western, Northwestern, Midwestern, and

Eastern U.S. “The committee is here to help David and Robert get everyone to row in the same direction and

continue to grow the business,” Alexander said. “Part of that means listening to our people—both employees and clients. In this business, it’s all about people and relationships.”

Investing for the Greater Good In the first quarter of 2017, FirstSouthwest Asset Management (FSAM) reached $12 billion in assets under management. “This was a significant milestone for us and hopefully the growth will continue for many years to come,” said Scott McIntyre, FSAM managing director. Founded in 1987, FSAM is a HilltopSecurities company providing investment management services to local governments and public agencies. While on the surface asset management is about safely maximizing client investment earnings, it serves a broader purpose in helping communities address some of their most pressing problems—investing for the greater good, as it were.

Guiding Principles Over the course of a few short years, Hilltop Holdings has evolved into a national multiservice, multi-platform financial organization with a team of players as diverse as our family of companies. What binds us together are our shared principles. They are the bedrock beneath our surface. Our culture is the landscape above — the embodiment of our values and principles. In nature, landscapes change over time. As we continue to grow our culture will evolve. It is important that we stick to our values and not compromise them as our organization’s scale changes. Why are we so focused on culture and values? We believe our company is a vehicle to do good, and we believe in using the power of business to impact the world in a positive way. We want Hilltop to be a collection of people who want to be here for each other and for a common cause. We have a powerful vision, and to deliver on our vision it is imperative that we are all in the same boat rowing towards the same point on the horizon.

Hilltop has a strong, deep-rooted “culture of doing” thanks to the initiative of our employees. Our strong sense of integrity, collaboration, adaptability, respect, and excellence are the principles that embody not only what we strive to show in every endeavor, but really what we want the company to be as a whole. The philosophies embedded in our core principles can be seen in the articles throughout this issue of Momentum. On the following pages, you will read about the industry-wide respect and recognition well-earned by HilltopSecurities’ public finance division, the pursuit of claims service excellence at National

Jeremy B. Ford Co-CEO and President

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Lloyds, PlainsCapital Bank’s reputation for integrity that has enabled it to earn and keep the confidence of its customers, and the spirit of collaboration at PrimeLending that is making it possible for underserved families to experience the joy of homeownership. Across our businesses, we are working to build a legacy of which we can be proud. The responsibility to protect and enhance that legacy lies with everyone in our company. This is a duty we must uphold to our customers and the communities we serve through our ongoing commitment to the principles that define our success.

Alan B. White Co-CEO and Vice Chairman

All municipalities, big or small, are faced with the challenge of juggling limited resources. Asset management serves an important role for strategic and financial reasons in that it provides a mechanism for local governments to increase investment revenue while helping to fund vital community services and infrastructure. As FSAM's senior portfolio managers, McIntyre and Director Greg Warner have led the asset management group for nearly 20 years. While growing portfolio assets to the tune of $12 billion is a point of pride for the firm, McIntyre and Warner have placed greater emphasis on safeguarding their clients’ investments to ensure stable cash flows while developing solutions that provide steady income streams to meet their clients’ current and long-term needs. The firm’s investment portfolio consists mainly of U.S. government and agency securities, municipal debt, short-term promissory notes, CDs, money market funds, and local government

FSAM's Leadership team (l-r): Director Greg Warner and Managing Director Scott McIntyre

investment pools. Investments are typically managed on a non-discretionary basis, which often means a higher degree of client interaction. “We think of ourselves as extended staff for our clients,” said Warner. “They need information and guidance as much as anything else. We strive to make the investment process simple for them.” McIntyre joined the company in 1998. At the time, FSAM’s investment portfolio was just under $2.5 billion serving 18 clients, and the asset management group was comprised of two people—McIntyre, located in Austin, and an analyst in Dallas cranking out monthly investment reports. McIntyre soon brought Warner on board. “When I hired Greg, we initially didn’t have a desk for him, so I cleared off a corner of mine

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and he pulled up a chair and went straight to work,” said McIntyre. The partnership proved a success. FSAM’s reputation grew and assets increased steadily over the next 10 years, until the financial crisis hit in 2008. In the years following, asset growth remained relatively flat in the near-zero rate environment. In 2015, interest rates began to reverse course and growth picked up significantly. While safety has always been the primary investment objective, followed by liquidity and yield, McIntyre and Warner have always strived to match clients’ needs to market-appropriate strategies in any given rate environment. Today, FSAM’s client roster numbers 50, and the portfolio management team has grown to six professional staff members.

Hilltop Holdings

HilltopSecurities and auxiliary services related to the compliance/ regulatory aspects of debt issuances via continuing disclosure and arbitrage rebate. HilltopSecurities public finance business looms heavy over the U.S. municipal finance industry, and Medanich is tasked with delivering on its reputation while growing it in new directions. The seeds of the business were planted 70 years ago and have borne fruit through the hard work of entrepreneurial bankers who have created strong relationships with state and local governments across the country. In fact, the division’s dominance in a wide range of sectors continues to garner the attention of issuers, resulting in an ever-growing footprint and more opportunities for the business to expand its services and client base.

William “Decker” Jackson founded FirstSouthwest in 1946.

of state and local governments—from the heart of Texas to the shores of Alaska—trailblazing complex financing structures that are still used by many investment banks to this day. In 1991, Feinberg and a group of investors acquired control of the firm, further instilling in its associates an unparalleled dedication to client service and an unimpeded entrepreneurial spirit. Under Feinberg’s leadership and shrewd business acumen, the next 17 years (1991 – 2008) saw the firm’s expansion to key markets up and down the western and eastern seaboards via organic growth and strategic acquisitions. In just the past decade, the company has undergone immense change. Seeking to continue its expansion, FirstSouthwest found a consistent source of capital in 2008 by uniting with PlainsCapital via a stock-for-stock merger. The firm and its public finance division grew yet again in 2016 when it merged with Hilltop Holdings’ other broker-dealer subsidiary, Southwest Securities, to form HilltopSecurities. As a result, the two mergers expanded the firm’s presence into 17 states and 30 offices in the U.S. During that same time, the firm also grew its suite of services for public entities to include municipal advisory and underwriting, municipal cash management via government investment pools and investment management services,

education, he was reticent to hire her. “You invest a good amount of resources in a new banker when you bring them on,” Feinberg said. “I figured with her experience and education, she wouldn’t stick around long.” Yet, to Feinberg’s delight, Alexander proved him wrong —she’s been with the division for more than two decades. “That investment has paid off many times over,” he said. During her 20 years with the firm, Alexander has been able to combine her love of education and finance by helping issuers in higher and secondary education finance projects that advance communities and their residents. She recently began a two-year appointment as president of the Fort Worth Country Day board of trustees, the school she attended as a student and served as a teacher and a banker.

Hilltop Unveils I.C.A.R.E. What does a company stand for? What values does it embody? What do its services contribute to the world? In 2017, Hilltop Holdings set out to answer these questions succinctly and meaningfully by establishing a set of core principle statements for the company. A company’s culture is heavily influenced by its beliefs, attitudes, and actions, and according to Hilltop Holdings Co-CEO and Vice Chairman Alan B. White, the process of defining and developing the culture at Hilltop begins with a clear understanding of its principles.

Now as a member of the strategic planning committee, Alexander has a hand in directing the future of the division. With Medanich at the helm, along with the support of Robert Coulter, Public Finance has continued to stack up accolades.

“Defining our core principles involves more than just slapping a few cookie-cutter words onto a piece of paper,” said White. “It’s about identifying the beliefs that matter to us and putting them into motion, because when we act on them they become our compass, pointing us in the direction we want to go.”

$2.9 Billion Michigan Finance Authority

HilltopSecurities' municipal advisory business was ranked as the nation’s No. 2 financial advisor in 2016 by par amount and number of new issues; its municipal cash management firm hit a new milestone in assets under management of nearly $12 billion; and, after having recruited a group of experienced and well-respected bankers in Chicago, Missouri, Michigan, and Arizona

In establishing its set of core principles, Hilltop’s leadership team worked with employees across the company’s different business lines to identify common ideas and themes. Based on the feedback received, five core principles were identified: integrity,

$1.5 Billion Atlanta Department of Aviation

Rankings Based on Total Issues

Recent Award - Winning Deals $810 Million Texas Water Development Board $15.7 Million Northwest Dallas County Flood Control District $150 Million State of Hawaii Department of Business, Economic Development and Tourism

Investing in the Future Bankers like Medanich and Alexander serve as apt examples of the firm's commitment to its associates and clients. Both came of age in the industry and were cultivated by the culture of FirstSouthwest. While Medanich was born into it, coming to love his father’s profession, Alexander’s drive for banking is a tale of two passions: education and finance. After a short stint as an algebra teacher at Fort Worth Country Day, Alexander pursued master’s degrees in education and business at Stanford University. During her last year in school, she was referred to Hill Feinberg and FirstSouthwest by Mary Williams. However, Feinberg says after reviewing Alexander’s impressive resume and

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• Collaboration – employing a “greater good” approach in the way we work with one another in our clients’ best interests

• Integrity – acting with the highest moral and ethical standards, treating others with dignity, and communicating honestly and transparently

• Adaptability – challenging the status quo and continually evolving in the pursuit of new possibilities

OUR PRINCIPLES

ntegrity ollaboration daptability espect xcellence

• Respect – how we should ALWAYS treat one another • Excellence – not just in terms of our performance, but also in how we hold ourselves accountable and deliver on our promises “The most important information we can convey is who we are and what we stand for,” said Jeremy B. Ford, co-CEO and president of Hilltop Holdings. “Our core principles are the soul of our company. They reflect our culture, our focus, and the win mentality that is shared by everyone at Hilltop.” White added, “Our principles are the momentum that drives our actions, guides our decisions, and enables us to earn the confidence of our customers and the communities we serve.”

New CIO Named

#1 General Purpose/Public Improvement

Hilltop Holdings has appointed Toby Pennycuff, former head of information technology at Essex Property Trust, as its new chief information officer. An industry veteran, Pennycuff provides strategic vision and leadership in the development and implementation of information technology solutions that provide business value and effective management of technology risks.

#1 Surface Transportation (Toll Roads, Highways, Streets) #1 Cities and Towns #1 Water and Wastewater #2 Combined Utilities #2 General Transportation #2 Higher Education #2 Mass Transit #4 Airports Rankings source: Ipreo MuniAnalytics® For the one year period ending 12/31/16.

collaboration, adaptability, respect, and excellence — I.C.A.R.E. Taken individually, they can be interpreted as follows:

Toby Pennycuff Hilltop Holdings Chief Information Officer

In this newly created position, Pennycuff reports directly to Hilltop Holdings Chief Administrative Officer Darren Parmenter and works closely with IT leaders across the company’s subsidiaries as he oversees day-to-day IT functions to support the operations needs of Hilltop’s four business

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units: banking, mortgage origination, financial advisory, and insurance. Over the course of his 40-year career, Pennycuff has held increasingly senior information technology positions in the banking, travel, retail, and professional service industries including vice president and chief technology officer at EDS (acquired by Hewlett Packard in 2008), senior vice president and chief technology officer at JC Penney, principal and chief technology officer at PennMann Technology, and most recently chief information officer for Essex Property Trust, Inc.

HilltopSecurities

PlainsCapital Bank

Value in Relationships

HilltopSecurities Public Finance: is an independent government agency charged with improving transportation systems in Central Texas. In accepting the appointment, Wilkerson was introduced to HilltopSecurities (then FirstSouthwest) Regional Managing Director Richard Ramirez and the HilltopSecurities public finance team, who were already working with CTRMA to help structure funding for multi-modal transportation solutions for the region—in particular, toll roads.

Austin customer Ray Wilkerson is joined by PlainsCapital Bank Austin Region Chair Paul Holubec (left) and HilltopSecurities Regional Managing Director Richard Ramirez (right).

The relationship between a bank and its corporate customers is one of symbiosis—a bank needs the customer as much as the customer needs the bank. However, to just focus on the nuts and bolts of traditional lending and cash flow management tools is to miss what makes the relationship relevant. In a vastly competitive and commoditized industry, how does a bank earn the respect and loyalty of its corporate customers? Service. This is the hallmark of PlainsCapital Bank’s culture, where relationships are key. Customer Ray Wilkerson is an example of the relevance of relationship building. A prominent commercial real estate developer in Austin for 40 years, Wilkerson has been a PlainsCapital customer since 2002, not long after the Bank first entered the Austin market. At the time, Wilkerson had been with his existing bank for 20 years, even serving on its board. While he didn’t know PlainsCapital per se, he knew James Huffines, a well-known Austin banker and community leader whom PlainsCapital had brought on board to help establish its presence in the region. Huffines approached Wilkerson with the radical idea of pursuing a new banking direction. “I knew James, knew his integrity, and I knew this was going to be a good relationship,” said Wilkerson.

Soon after, Huffines introduced Wilkerson to Paul Holubec, PlainsCapital Austin region chair, who immediately went to work fostering a relationship with Wilkerson, taking the time to understand his industry and specific banking needs. “We were focused on creating a unique banking experience for Ray,” said Holubec, “based not just on his financial needs, but on understanding his business as well, from zoning and property tax credits to many other land-use policy issues that directly impact real estate development. We were looking to build a strategic partnership with him.” According to Wilkerson, success in any business takes patience, and it takes a team. “Paul has done a tremendous job in finding and retaining talented people and building a stable team of bankers who are accessible, flexible and willing to listen and work with me,” said Wilkerson. “You can’t put a value on that.” The level of service exemplified by PlainsCapital can also be found at the Austin office of its sister company, HilltopSecurities, of which Wilkerson is a client as well. Separate from his commercial real estate business, Wilkerson serves as chairman of the Central Texas Regional Mobility Authority (CTRMA)—a gubernatorial appointment he received in 2009. The CTRMA

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According to Ramirez, the CTRMA projects are unique, as they require balancing the region’s significant transportation needs with environmental sensitivities and complex funding issues. To date, HilltopSecurities has worked with Wilkerson and CTRMA to develop three self-sustaining toll road projects with three more in the works, earning the confidence and support of both the community and the bond market. Ramirez credits their success to the in-depth relationship he and his team have established with Wilkerson and CTRMA over the years.

Quietly Going About the Business of Building America Medanich, who also serves as president of FirstSouthwest Asset Management, has been with the firm for 36 years and is well known throughout the industry for his work on numerous high-profile deals and for the staunch dedication he has to serving his clients. David Medanich Vice Chairman, Head of Public Finance HilltopSecurities

Laura Alexander Regional Managing Director Public Finance HilltopSecurities

According to Holubec, PlainsCapital and HilltopSecurities share the same core values and commitment to best-in-class service that runs throughout Hilltop Holdings’ family of companies.

After a 45-year career in the municipal securities industry, HilltopSecurities Head of Public Finance and Vice Chairman Jack Addams recently celebrated his retirement surrounded by financial professionals who laid the groundwork for public works projects across the nation—minds who ran numbers and structured financings that have contributed to the growth of cities and economies and shaped the American landscape. FirstSouthwest’s— and now HilltopSecurities'—public finance division has been an incubator for innovation and entrepreneurship in municipal finance, consistently ranking as one of the nation’s top municipal advisory and underwriting practices. For the past 17 years, Addams led the charge, developing a practice and a team of bankers and financial professionals who, quite literally, defined what it means to be a municipal financial advisor.

“We recognize the bigger picture in the work we do,” said Holubec. “We take great pride in the long-term relationships we work to build with our customers, be it commercial lending or public infrastructure funding, because what lies in the quality of these relationships is the potential to create positive economic and social impacts directly in the communities where we are invested. Our relevance, our success, is in direct proportion to the success of our clients.”

Succeeding Addams is Vice Chairman David Medanich, who was named HilltopSecurities Head of Public Finance in 2016. Although he’s new to the position, his affiliation with the company is longstanding and unique: his father, Frank Medanich, was one of the firm’s initial employees, joining in 1947 as a U.S. Securities and Exchange Commission examiner and retiring after 50 years of service as executive vice president.

“Client satisfaction is essential for a successful public finance practice,” said Ramirez. “Being effective at what we do and delivering a good product for customers and the community goes hand-in-hand with building a solid client relationship, like the one we have strived to create with Ray and CTRMA.” “To deal with complex issues like commercial real estate and the viability of transportation infrastructure, you need a dedicated, reliable team of sophisticated, out-of-the-box thinkers, like the partnerships I have with PlainsCapital Bank and HilltopSecurities,” said Wilkerson. “The trust, continuity of people, credibility in the marketplace, proof in production—it’s all there.”

“David would be lost without his client interactions,” said Regional Managing Director Laura Alexander. “Nobody is more passionate about this business than he is.” This devotion to public finance and client relationships is the rule rather than the exception at HilltopSecurities. The firm is about people— bankers and analysts, support staff and admins, and most of all, clients. In fact, HilltopSecurities public finance has made a name for itself by cultivating a strong entrepreneurial environment that gives employees room to flex their intellect and creativity. Alexander is a prime example of this culture. She’s worked beside Medanich for the past 20 years in the firm’s Fort Worth office and serves as the chair of its strategic planning committee. The committee—comprised of Medanich, Alexander, Drew Masterson, regional managing director, Steve Kantor,

regional managing director, and Robert Coulter, managing director—was created upon the merger of FirstSouthwest and Southwest Securities at the direction of Chairman and CEO Hill A. Feinberg, who sought to bring together public finance’s best and brightest bankers to help create a strategic path for the future of the firm. Yet, to understand the direction in which the committee would lead the discipline, it’s important to understand its past. Public Finance: A Tradition of Entrepreneurs FirstSouthwest Company was founded in 1946 by Texas businessman William “Decker” Jackson and a group of investors who saw opportunity in the state’s need for infrastructure and public services. The company made a niche for itself by serving municipalities and public entities ignored by Wall Street investment banking firms. By advising public entities on developing financial plans and the most cost-effective means to sell their bonds, the firm became a recognized and sought-after practice in Texas and the Southwestern U.S. Business caught fire for the firm and the following four decades (1950 - 1990) were an unprecedented success. The firm served as financial advisor and underwriter to a large swath

FirstSouthwest’s Frank Medanich was photographed left of then Sen. Lyndon B. Johnson at the formation of the North Texas Municipal Water District in 1951. Medanich joined the Firm in 1947 and retired as executive vice president in 1997.

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PlainsCapital Bank

PrimeLending

PrimeLending Upgrades Mobile Partner App

Helping Communities Thrive As the saying goes, when the water rises all boats are lifted. PlainsCapital understands the ripple effect that comes from investing in the communities it serves. That’s why the Bank continually partners with local organizations and charities to build vital partnerships designed to help communities prosper. This past spring, PlainsCapital donated dozens of iPads to support community literacy and economic development initiatives in North Texas and the Rio Grande Valley, respectively.

As part of the grand opening festivities for PlainsCapital’s new Gaston Ave. branch, the Bank presented iPads to the Boys & Girls Clubs of Greater Dallas to support its afterschool education programs. The Bank also donated dozens of iPads to Hive Effect—a small business incubator developed by the Edinburg Economic Development Corporation in partnership with Grindstone Coworking—to help bolster the organization’s entrepreneur support services and classes and support the region’s growing start-up and small business climate.

PlainsCapital Bank Gaston Ave. presents iPads to the Boys & Girls Clubs of Greater Dallas.

Executive Promotions Advancements in technology are providing amazing opportunities to deliver better lending experiences to customers. As an established player in the mortgage industry with a history of developing solutions to create better borrowing experiences, PrimeLending is focused on improving its existing technology tools, and in some cases creating new technology solutions from the ground up. That was the impetus behind PrimeLending’s mobile partner app. Originally launched in 2014, the app was designed to make it easier for real estate professionals, homebuilders, and other industry partners to do business with the company. The recently upgraded version of the app is a real differencemaker in the industry, according to Tim Elkins, PrimeLending’s executive vice president and chief information officer. Its automated features create a distinctive, user-friendly experience for the company’s business partners, while helping PrimeLending address important issues like regulatory compliance, efficiency, and cycle time. “The ultimate goal of technology is to make the lending business better, and by that, we mean making information more easily accessible,” said Elkins. “One of the great things about technology is that it enables us to continually evolve. Each time we adopt new technology,

it pushes us to rethink how our processes and systems work.” PrimeLending’s newly upgraded mobile partner app is unique to the industry in terms of the level of integration it has with the company’s loan origination system, providing business partners an unmatched view of the status of their client’s loan progress. For the PrimeLending loan originator, this technology streamlines communications by providing business partners with direct access to the time-sensitive information their clients need. Elkins refers to the upgraded features as industry-leading—something no one else has. “A lot of our competitors buy apps written by outside developers and private label them, but our technology is proprietary, developed and written in-house by our own IT professionals,” said Elkins. “We took the step of investing in the proprietary technology because we have the first-hand knowledge, as well as the vision for where things in the industry are going, and the ideas on how to make our business better and more efficient. We also have the capacity for making these changes possible.” With 30 years in the mortgage arena, PrimeLending has broad perspective on the

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lending business beyond technology—unlike app developers—and understands the overall operational and functional needs of the lending process, subsequently bringing different kinds of needed solutions to the table. Using the app, PrimeLending’s partners can track the progress of customers’ loans in real-time, follow multiple loans at the same time, receive instant status updates, estimate closing dates, create emails and text messages with contact details automatically populated, share contact information, and request updated prequalification letters. “Realtors can track loans through the life cycle, from origination to underwriting, appraisal, and closing, eliminating the need to call or email the lending officer for the status. This is the real value of the app,” said Elkins.

PlainsCapital Bank recently announced the promotion of ten executive bank officers. In the Dallas market, Cole Dulaney was promoted to president of the Turtle Creek branch, Tom Pulley was promoted to president of the Republic Center and Renaissance branches, Jerry Sanders was promoted to president of the DeSoto branch, and Kellie Davidson was promoted to executive vice president of the Gaston Ave. branch. Additionally, Thomas Ricks was promoted to president of commercial banking for Victory Park and, effective Oct. 1, 2017, following Doug Cook’s retirement, Thomas will assume the role of president of the North Dallas branch and Cass Robinson will assume the role of president of commercial lending for Victory Park.

In the Fort Worth market, Brian Lixey has been promoted to president of Western Place and Martin Talley was promoted to president of Aledo Willow Park. Additionally, Steve Botelho was promoted to executive vice president of the Shoreline branch in Corpus Christi and Sean Mills was promoted to executive vice president of the Austin Downtown branch. “These individuals have been significant contributors to our success,” said PlainsCapital Bank President and CEO Jerry Schaffner. “Their new roles reflect the management structure we need to continue the execution of our strategic plan to be the best commercial and retail bank in every market we serve.”

Steve Botelho EVP Corpus Christi Shoreline

Cole Dulaney President Dallas Turtle Creek

Kellie Davidson EVP Dallas Gaston Ave.

Brian Lixey President Fort Worth Western Place

Martin Talley President Aledo Willow Park

Jerry Sanders President DeSoto

The need for convenience, easy access, and transparency pushed PrimeLending to invest in better partner-facing, and ultimately customerfacing, technology tools. The PrimeLending mobile partner app is free and available on Apple® and Android™ mobile platforms.

Sean Mills EVP Austin Downtown

Tom Pulley President Dallas Republic Center and Renaissance

Thomas Ricks President North Dallas

Cass Robinson President of Lending Dallas Victory Park

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PrimeLending

PrimeLending ON THE COVER

Giving Homebuyers an Edge The current housing market—characterized by rising home prices coupled with a shrinking inventory, strict lending standards, and tight credit—presents sobering challenges for many would-be buyers. The diminishing inventory of available homes for sale has contributed to swelling prices, pushing up rents and forcing more people to remain tenants. From affordability issues to qualifying for a mortgage, the barriers to homeownership are significant. However, the greatest barrier is saving for a down payment and closing costs.1 One third of rental households are cost-burdened, spending more than 30 percent of their gross income on housing.2 Additionally, while low interest rates generally make monthly mortgage payments more affordable than monthly rental rates, the upfront costs prevent many families from taking advantage of the savings— particularly those with lower incomes. A number of organizations have made efforts to address these barriers. Such efforts work, often jointly, to create homeownership opportunities. Case in point, PrimeLending’s NeighborhoodEdge program provides up to $1,500 in closing cost assistance for qualified first-time homebuyers based on their income and the location of the property they want to purchase.

PrimeLending Vice President and Director of Multicultural Lending Latonia Donaldson and PrimeLending Executive Vice President, National Production Manager Steve Thompson.

For many Americans, purchasing a home can help launch their family on a path of upward mobility. Homeownership remains a major vehicle for wealth-building in this country. Done right, it can put families on the path to growing equity and building assets—a necessary step toward securing generational wealth. Put simply, buying the right home the right way can be a big step toward bridging the growing wealth gap. For 30 years, PrimeLending’s mission has been to help families realize the dream of homeownership.

Understanding the important role affordable housing plays in strengthening communities, the company recognizes that the most significant obstacle to homeownership for underserved and low-to-moderate income (LMI) households is the level of resources needed to meet upfront down payment and closing costs. That is why PrimeLending launched the NeighborhoodEdge® program in 2015 to provide financial assistance to qualified homebuyers in the form of closing cost credits.

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homeownership a reality for this family by making it more affordable for them to get into a home, either by helping them meet their down payment goal or just giving them a little extra financial cushion—money they can put toward buying furniture or paying their utilities,” said Arias. The challenge for the mortgage industry in general is to educate people who feel disenfranchised with homeownership that it’s not out of their reach. According to PrimeLending Executive Vice President, National Production Manager Steve Thompson, there are borrowers out there with sufficient credit, and who generally have the cash flow and ability to make monthly payments, but for whom the upfront portion is typically the greatest hurdle. “In an extremely tight housing market, such as we’re currently seeing, it’s important now more than ever to provide low-to-moderate income families with the tools and resources to help them succeed in homeownership,” said Thompson. “A substantial number of buyers can’t afford to purchase a modestly priced home often times because of the upfront costs. NeighborhoodEdge is a way to help lessen this obstacle for families while enabling communities to increase their homeownership rates.”

often the largest source of household wealth for many individuals, financial gain isn’t the only reason to aspire to owning a home. Decent and affordable housing has tremendous social and economic benefits that affect the health, education, and welfare of families and communities.

Latonia Donaldson, PrimeLending vice president and director of multicultural lending, said the NeighborhoodEdge program was born out of a larger discussion within the company on ways to build sustainable homeownership opportunities for this challenged market segment.

According to a national housing survey3, among the most cited reasons for wanting to own a home were to have a good place to raise children, a safe place to live, and control over one’s living environment. Additional research4 shows that people who own a home are more likely to vote, be part of civic and neighborhood organizations, and have children who tend to stay in school longer.

“This particular program was meant to work in conjunction with down payment assistance programs already out there in an effort to give homebuyers an added edge," said Donaldson. "It speaks directly to the need.” According to Donaldson, PrimeLending has several initiatives designed to help facilitate homeownership opportunities for underserved and LMI families. These efforts tend to fall into one of three categories: making homeownership affordable, like NeighborhoodEdge; expanding access to safe and sound financing; and preparing potential buyers to be successful homeowners. Donaldson adds that while homeownership is

“Homeownership is in the nation’s interest when it can bring stability to families, new vitality to communities, bridge the wealth gap, and contribute to overall economic growth,” said Thompson. “At PrimeLending, our goal is not just to help families get into homes, but to do right by them. We want people to succeed in homeownership.” 1. 2017 Zillow Housing Aspiration Report 2. Harvard University Joint Center for Housing Studies. 3. Fannie Mae National Housing Survey 2012 4. National Association of Realtors Social Benefits of Homeownership and Stable Housing Study 2012

Volunteers in Action

Christina Arias was excited when the NeighborhoodEdge program was unveiled two years ago. A loan officer for PrimeLending in Dallas, Arias works with a number of LMI clients, educating them on income-based assistance programs and grants.

On April 5, 2017, PrimeLending volunteers gathered at Minnie’s Food Pantry in Plano, Texas, just north of Dallas, to help feed people in North Texas. They spent the day sorting food, packing groceries, and helping customers load the contents of their shopping carts into waiting vehicles.

“Fifteen hundred dollars may not sound like a lot, but for a lower income household, this amount can provide a great deal of assistance,” said Arias. This is certainly the case for two of Arias’ clients, a married couple with kids who have steady employment at a fast food restaurant and who have managed to save $4,000 to put toward buying a home for their family. “Their savings, coupled with down payment assistance and PrimeLending’s NeighborhoodEdge, can help make the dream of

As one of the top 10 purchase mortgage lenders in the country, PrimeLending initially rolled out the program in Texas, where the company is headquartered, before expanding it nationally in December of last year. The popularity has been such that more than $1 million in closing cost credits have been disbursed to date.

PrimeLending employees, including Chairman and CEO Todd Salmans (left), volunteer at a Dallas-area food pantry.

According to Dudley Strawn, PrimeLending’s executive vice president, human resources, this is just one of many events coordinated throughout the year by the company’s Employee Engagement Council (EEC). The EEC is a group of enthusiastic employee volunteers who work

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together to plan community activities and coordinate employee appreciation and company celebration events. “Volunteering together not only strengthens our relationships with fellow teammates, it provides an invaluable service to the communities in which we work and live,” said Strawn. “We are so grateful for the EEC members who give of their time so generously, and for our employees who answer the call whenever we ask for volunteers. A servant leadership spirit is at the very heart of who we are at PrimeLending.”