Momentum - First Quarter 2018

A Hilltop Holdings Publication

National Lloyds

National Lloyds Moves HQ to Dallas A move that has been months in the making, National Lloyds will complete its corporate headquarters relocation in early April. Announced last fall, the move marks the final step in transitioning all of the company’s customer service and functional operations from Waco to North Texas, where it will be better positioned to leverage shared resources with its parent company and other subsidiaries.

1st Quarter 2018

MOMENTUM

National Lloyds traces its Waco origins back to 1964. Dallas-based Hilltop Holdings acquired the company in 2007, and by 2016 National Lloyds was Hilltop’s only subsidiary not headquartered in the Dallas-Fort Worth area. “We believe this is the best strategy for the company going forward and conducive to helping National Lloyds grow,” said Hilltop Holdings Co-CEO and President Jeremy B. Ford. Hilltop has made a concerted effort to integrate its business units and the company has begun to achieve significant benefit from shared operations organization-wide. Prior to the corporate relocation, National Lloyds had an established presence in the Dallas market including customer service support operations. Additionally, over the course of the few years, the property and casualty insurance provider has gradually transferred a number of its functional operations—like HR, IT, legal,

Employees from National Loyds’ Waco office join members of the company’s Dallas team in a ribbon cutting ceremony to celebrate National Lloyds’ new corporate offices in Dallas.

compliance and marketing—to the area. Several of National Lloyds’ Waco employees have already made the transition to Dallas. A formal ribbon-cutting ceremony took place earlier this year to inaugurate the new corporate office space, which encompasses two floors of

the Republic Center office tower in downtown Dallas at 325 N. St. Paul Street. Hilltop Holdings and PlainsCapital Bank lease office space in the same building.

Hilltop Holdings employees: Alynn Eubanks, Michael Owen, Sheri Wise, Sharon McCormick, Rich Wyatt, and Thomas Ricks

Bridge Builders

Operating as one team to open new roads

PrimeLending

Joint Venture Program Reaping Rewards With few clear signs of inventory supply relief on the horizon, new homebuilders continue to wrestle with rising materials costs and a lack of qualified labor, contributing to shrinking profit margins. Enter PrimeLending Ventures Management, LLC, (PLVM), a wholly owned subsidiary of PrimeLending. PLVM develops and manages joint ventures—primarily in the new home construction industry—that offer a wide variety of home loans, including fixed and adjustable rate loans, home-purchase loans, and refinancing loans.

Building On Our Momentum Hilltop Holdings entered the New Year with a renewed focus on building bridges—connecting our business lines, employees, clients and communities to create new opportunities for shared growth and prosperity. Building on the momentum created last year by our company-wide reorganization, we’re excited about the potential ahead of us in 2018. Hilltop Holdings’ diverse business mix and national footprint allow us to serve clients across a range of sectors and geographic regions. We’re able to introduce them to new services and experienced professionals within their communities who share Hilltop’s sense of urgency and dedication to exceptional service. Whether it’s banking, investing, mortgage lending, financial advisory, or insurance, Hilltop Holdings’ family of companies and approximately 5,500 employees can connect our clients with solutions that make a difference. In this issue of Momentum, we highlight some of the many Hilltop employees who are building bridges between our business lines, communities, and clients to create new relationships and strengthen existing ones. They

are earning loyalty and helping us establish a more unified brand. We’re excited to see more of these important connections take place in the year ahead. Other articles in this issue include a look at PlainsCapital Bank’s recent 30th birthday celebration, which kicked off in Lubbock, Texas, where we awarded $30,000 in scholarships to local high school students. It’s a prime example of our company’s commitment to giving back to the communities that have given us so much support. We are fortunate that our clients are also our friends and neighbors and, as with all of Hilltop Holdings’ companies, PlainsCapital is dedicated to helping them succeed and flourish. Hilltop Holdings is also reaching out to new markets and strengthening the ties to those we

Jeremy B. Ford Co-CEO and President

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already serve, while continuing to build on our culture of excellence. In the pages that follow, we also take a look at some of the important rankings and recognition received by our businesses and leadership in 2017, as well as examples of our recent expansion and initiatives for growth in 2018. It’s an exciting time to be a part of the Hilltop family of companies. The diversity of our businesses and our capital structure opens new doors to work together and build new relationships. We’re passionate about what we do and we’re focused on finding new opportunities to help each other succeed. We know there is no limit to what we can achieve together as we continue to build bridges every day.

Alan B. White Co-CEO and Vice Chairman

PrimeLending regards the joint ventures as a winwin-win opportunity for new homeowners, the homebuilder, and PrimeLending. Homeowners enjoy the peace of mind that comes from choosing a lender that is a partner with the homebuilder they trust and appreciate, and together they work as a team to ensure a positive customer experience. The homebuilder realizes incremental revenue from the transaction based on ownership interest and can better manage the build phase with the mortgage process. PrimeLending leverages operational efficiencies, such as product offerings, secondary markets, processing systems and technologies, to not only reach a new market, but to lower the company’s overall average cost per loan origination. “Escalating government regulations and compliance guidelines have kept most homebuilders out of mortgage partnership programs,” said Susie Garza, executive vice president, director of joint venture strategy and licensing for PrimeLending. “But we have developed a proven model that gives homebuilders all of the benefits of having their own mortgage program—such as greater control and predictable residual income—without the day-to-day operational responsibilities.” PrimeLending has been successfully managing the homebuilder joint venture model since creating Highland HomeLoans (formerly Highland LoanSource) with Texas-based homebuilder Highland Homes in 2011. Six years later, Highland HomeLoans represented approximately 5 percent of PrimeLending’s total production in 2017, and an above industry-

Susie Garza, EVP, Director of JV Strategy and Licensing ; Diana Tarzia, VP, Managing Director, Jet HomeLoans; Mike Matthews, SVP, Joint Ventures; and Aaron Anderson, Director of Production, Highland HomeLoans

average capture rate, paving the way for other joint ventures to follow.

solutions to Dallas- and Fort Worth-area homebuyers beginning in early 2018.

Expanding the Joint Venture Footprint

Broader Benefits

Last year, PrimeLending formulated a strategic plan to establish new affiliate companies that fit the proven homebuilder model while focusing on states in which new joint ventures can operate under the exempt status for licensing. Under the leadership of Garza and Mike Matthews, senior vice president, joint ventures, PrimeLending successfully established two new joint ventures in 2017.

Hilltop Holdings' family of businesses affords the opportunity to leverage relationships across business lines. In the case of PrimeLending’s joint venture initiative, cooperation between PLVM and PlainsCapital Bank teams has resulted in wins for both companies. PLVM referred their joint venture partner Dream Finders Homes to PlainsCapital Bank to help establish a new builder line of credit. PlainsCapital returned the favor by connecting PLVM with several prominent home builders and customers in Texas.

Based in Fernandina Beach, Florida, Jet HomeLoans, LLC, is a joint venture between PLVM and Jet Home Loans Ventures, LLC, to support Dream Finders Homes, a premier national home builder. In addition to Florida, Jet HomeLoans is expected to offer home financing solutions in Colorado, Georgia, Maryland, South Carolina, Texas, Virginia and West Virginia. Grand Home Loans, LLC, is a joint venture between PLVM and Dallas-based Grand Homes, Inc. As a result of this affiliation, Grand Home Loans will begin offering home financing

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“It’s a huge advantage when PlainsCapital opens the door for me to discuss business opportunities with prospective homebuilder customers,” said Matthews. “All of Hilltop Holdings’ businesses share a reputation for delivering premier products and outstanding service; something we can all rely on and feel proud about.”

Hilltop Holdings

National Recognition

Thompson Earns Vanguard Award PrimeLending President Steve Thompson has earned numerous industry recognitions over the course of his career including being presented with the 2017 HousingWire Vanguard Award in December. The award is bestowed on select executives whose leadership abilities have made significant contributions to the housing and mortgage industry.

and expertise of outstanding leaders like Steve,” said Todd Salmans, chairman and CEO of PrimeLending. “He is known for his tireless work ethic, caring nature, and persistent drive to see strategies through to successful completion all qualities that are consistent with the high standards of character and integrity defined by the PrimeLending culture.”

Since joining the company in 2011, Thompson has led the charge to make PrimeLending’s production onboarding and training programs the most comprehensive, customized and impactful in the industry. Under his influence, PrimeLending has consistently grown national production numbers, ranking in the top 10 in purchase volume each year since 2012.1 Thompson built the production organization by attracting and retaining top industry talent and surrounding his team with best-in-class productivity tools, training, marketing and support.

PrimeLending boasts an impressive 96 percent customer satisfaction rating,2 has garnered more than 5,000 five-star reviews on Zillow®, and has been recognized as a top workplace in several categories by Fortune magazine.

“The future has never been brighter at PrimeLending, thanks in large part to the vision

At Hilltop Holdings, we pride ourselves on being a premier financial services company —an accomplishment made possible by our tremendous team. We are honored to receive numerous recognitions that highlight our standing as a company and our respective businesses as leaders within their industries. Hilltop was named No. 25 nationally by Forbes magazine in its 2018 best banks ranking of the top 100 largest publically traded banks and thrifts. Bank Director magazine’s 2017 Bank Performance Scorecard ranked Hilltop No. 11 nationally among the highest performing midsize banks between $5 billion and $50

Promoted from western division manager to national sales leader in 2013, Thompson quickly became a highly valued member of the executive leadership team. In October of last year, he was named president of the company. 1. Ranked by Marketrac for purchase units nationally for 2012 - 2016 2. Survey administered and managed by an independent third party following loan closing. 96% satisfaction rating refers to the rating customers gave to PrimeLending loan officers

“Proven loan officers who have their own book of business, existing relationships with homebuyers, and established networks that better connect them with the pool of prospective borrowers can have a significant and immediate impact,” said PrimeLending President Steve Thompson, citing industry research that shows

that the top 60 percent of loan originators create 93.7 percent of total loan volume.1 “It’s no secret that recruiting established producers will drive growth,” said Al Velasco, executive vice president, western division manager for PrimeLending. To support the aggresive growth strategy, PrimeLending’s marketing team led an internal review and evaluation process that included stakeholder interviews, borrower insights, competitive analysis, and market research. Based on the data, they identified the company’s most compelling loan officer benefits and captured those advantages in a powerful new recruiting campaign launched earlier this year. “Recruiting is a team sport, and every member of the PrimeLending team has a critical role to play,”

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largest U.S. clearing firms according to total number of broker-dealer clients.

In January, HilltopSecurities was announced as the No. 1 municipal advisor in the country based on the firm’s number of deals in 2017 and was ranked No. 3 based on par amount for the year, according to Ipreo MuniAnalytics, a provider of market intelligence for the financial services industry. The rankings were based on HilltopSecurities’ role as financial advisor on 946 issues for a par amount of $44.19 billion. HilltopSecurities also was named the thirdlargest clearing firm by Investment News magazine in its annual assessment of the

PrimeLending, one of the top 10 purchase mortgage lenders in the nation, earned several accolades from Fortune magazine, including being named No. 8 on Fortune’s 2017 list of Best Workplaces in Financial Services and Insurance. J. D. Powers’ annual U.S. Primary Mortgage Origination Satisfaction Survey, ranking mortgage lenders by consumer satisfaction levels, named PrimeLending No. 2 in the industry.

Hilltop Holdings Executives Recognized Among Top Business Leaders PrimeLending President Steve Thompson

Robust Expansion Efforts Underway At the end of 2017, PrimeLending launched an ambitious growth strategy to strategically increase the company’s national footprint over the next two years. The purchase mortgage lender is looking to add between 15 and 20 new main branches in select markets identified as underserved with high-growth potential for PrimeLending’s higher margin products—like renovation loans and government-backed homeowner assistance programs. Building the branches around top-performing loan officers is a key driver of the plan.

billion due to PlainsCapital Bank’s strong performance.

said Karen Blakeslee, executive vice president, eastern division manager. “We created a strong campaign and trained our people to tell the PrimeLending story in the most powerful way possible. As a result, we are seeing a surge in qualified candidates across the country.”

Unprecedented in scope, the Dallas 500 is a yearlong research initiative by the editors of DCEO, named the country’s best regional business magazine for the last five years by the national Alliance of Area Business Publishers. In developing the list, the editors identified the region’s most powerful top executives across 61 industries, providing an engaging and personal look at the people who have made Dallas-Fort Worth such a powerful economic force.

As the founder of PlainsCapital Bank, Hilltop

Holdings Co-CEO and Vice Chairman Alan B. White was among 12 banking leaders recognized, and HilltopSecurities Chairman and CEO Hill A. Feinberg was one of only six investment banking executives spotlighted on the list. Hilltop Holdings Chairman Gerald J. Ford was named to the Dallas 500’s Living Legends category recognizing some of the region’s most iconic political, business, and philanthropic leaders, including President George W. Bush, U.S. Ambassador to NATO Kay Bailey Hutchison, Hunt Oil Executive Chairman Ray Hunt, and Dallas Cowboys Owner Jerry Jones, to name a few.

Gerald J. Ford Hilltop Holdings Chairman

Alan B. White Hilltop Holdings Co-CEO and Vice Chairman

Hill A.Feinberg HilltopSecurities Chairman and CEO

A magnet for corporate headquarters and major company operations, North Texas is home to some of the largest companies in the country including the likes of ExxonMobil, AT&T, American Airlines, and Kimberly-Clark. The executive talent that resides in the region is extensive and reads as a Who’s Who in business. According to DCEO's 2018 Dallas 500, recognizing the most influential business leaders in North Texas, three Hilltop Holdings executives are counted among them.

As of March, eight new main branches have opened their doors in North Carolina, Montana, Arizona, Texas, Florida, Alabama, Louisiana, and Arkansas. “We’re not interested in expansion for expansion’s sake,” said Velasco. “We’re looking to add locations that fit our high standards for integrity, quality, and performance, as well.”

1. STRATMOR Goup

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HilltopSecurities

PlainsCapital Bank

PlainsCapital Celebrates 30th Anniversary At its heart, the PlainsCapital story is a West Texas story. In the late 1980s, White, an experienced Lubbock banker, viewed what he considered a growing industry trend away from relationshipbased banking toward a more rigid, corporate banking culture, which he attributed to the numerous mergers and acquisitions permeating the industry. In 1987, he formed PlainsCapital Corporation (PCC) with fellow bankers and founders John Owens and DeWayne “De” Pierce. PCC acquired Plains National Bank—a Lubbock bank with one location—the following year. The name was eventually changed from Plains National Bank to PlainsCapital Bank.

PlainsCapital Bank’s flagship Lubbock location at 50th and University

In February, PlainsCapital Bank marked a business milestone, celebrating its 30th anniversary. To commemorate the Dallas-based Bank’s founding in Lubbock on Feb. 11, 1988, PlainsCapital branches around the state celebrated with an array of customer and employee festivities. The Bank’s flagship Lubbock location hosted a week-long birthday celebration Feb. 12 – 16, featuring events, contests, giveaways, and complimentary food and beverages. “Thirty years is a significant milestone when you consider how far we’ve come,” said Hilltop Holdings Co-CEO and Vice Chairman and PlainsCapital Bank Chairman and Founder Alan B. White. “We are exceedingly grateful to the Lubbock community for giving a group of young bankers the opportunity to earn their trust when we first opened our doors in 1988. Our Lubbock roots and West Texas values have allowed us to grow the Bank beyond our imagination.” Kicking off the week’s festivities in Lubbock, PlainsCapital senior executives were joined by city and local education officials, including Lubbock ISD Superintendent Dr. Kathy Rollo, at a presentation where the Bank awarded $30,000 in college scholarships to 30 area high school students. The event highlighted the Bank’s rich history of philanthropy and community involvement, particularly its efforts supporting Lubbock education initiatives, schools, and young people. Lubbock Mayor Pro Tem Latrelle Joy

echoed these sentiments when she presented PlainsCapital with a special recognition on behalf of the Mayor and Lubbock City Council in honor of the Bank’s 30-year history of supporting and giving back to the community. “We’ve helped Lubbock grow, investing in the people, businesses, and organizations that have contributed to the area’s economic growth for the last 30 years,” said PlainsCapital Bank West Texas Chairman and Co-Founder John Owens. “That’s something we’re really proud of.”

PlainsCapital’s early years came at a time when the country, particularly Texas, was experiencing challenging economic conditions. Yet the Bank thrived. PlainsCapital’s community focus and emphasis on building enduring relationships with customers and employees resonated with West Texas business owners and bankers who gravitated to the Bank. PlainsCapital’s reputation for professionalism, market knowledge and local decision-making grew, along with its branch network, and within 10 years the Bank had expanded beyond West Texas, moving into markets across the state. In 2012, PlainsCapital merged with Hilltop Holdings Inc., a Dallas-based financial holding company. Today, PlainsCapital Bank is one of the leading community and commercial banks in the state with $9.6 billion in assets, operating 63 branches in eight major markets.

Awards Spotlight Public Finance Innovation Each year, the municipal bond industry pauses to honor the innovators within its field. This past December, at The Bond Buyer’s 16th annual Deal of the Year Awards ceremony in New York, two of HilltopSecurities’ municipal advisory teams were among those recognized for their creative approaches to public finance.

HilltopSecurities Regional Managing Director Laura Alexander, Director Ryan Chiriboga, and Associate William Bermudez were honored for their work on behalf of the Fort Worth Transportation Authority, navigating a $325 million private placement to fund a regional commuter rail line, which earned the Southwest Regional Deal of the Year for 2017. The City of Cambridge, Massachusetts’ $2 million minibond program, led by HilltopSecurities Managing Director Cinder McNerney, along with Directors Susan Kendall and Kristy Tofuri, earned the 2017 NonTraditional Financing Deal of the Year. “We are very fortunate to work with and assist our clients in developing financial plans that help them achieve their goals,” said HilltopSecurities Vice Chairman, Head of Public Finance David Medanich.

Celebrating the Southwest Regional Deal of the Year Award for 2017 at The Bond Buyer's 16th annual Deal of the Years Awards presentation in New York are (l-r): Jonathan Cranz and Brandon Hill with the Kelly Hart law firm, Partner Kevin Twining with the law firm Locke Lorde, HilltopSecurities Regional Managing Director Laura Alexander, and members of the Fort Worth Transportation Authority finance team—Scott Mahaffrey, Monica Fowler, Rhett Brady, and Doug Hartman

The Bond Buyer also named Kendall to its 2017 Trailblazing Women in Public Finance list in conjunction with the publication’s annual presentation of the Freda Johnson Award which honors leading women in public and private sector finance positions. Additionally, another HilltopSecurities financial advisor was recognized by the magazine earlier in the year. Director Joel Tindal was named as one of the municipal bond industry’s 28 Rising Stars in 2017. Ranked as the No. 1 financial advisor in the nation, HilltopSecurities’ public finance division is known for being an incubator for innovation and entrepreneurship in municipal finance. To date, 20 of the firm’s public finance projects—large- and small-scale—have earned Deal of the Year Awards recognitions. Medanich acknowledges the firm’s talented team of professionals as the driving force behind HilltopSecurities’ accomplishments.

Pictured (l–r): Lubbock ISD Superintendant Dr. Kathy Rollo joins PlainsCapital Bank Lubbock Market President Barry Ballinger, Mo the Buffalo, and PlainsCapital Bank West Texas Region Chairman John Owens as they present $30,000 in scholarships to area high school students in honor of PlainsCapital’s 30th anniversary.

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Earning the 2017 Non-Traditional Financing Deal of the Year Award are (l-r): Cambridge Assistant City Manager David Kale, HilltopSecurities Director Susan Kendall, Cambridge City Manager Louis DePasquale, HilltopSecurities Directors Kristy Tofuri and Kayla MacEwen, and Geogg Buswick with S&P Global’s U.S. Public Infrastructure Group

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“Our success is based on our commitment to be the best at what we do and always putting our clients’ needs first—that is our culture and our clients know it,” said Medanich.

PlainsCapital Bank

HilltopSecurities

Friedrich Leads Fixed Income Capital Markets

Supporting the Growth of Women-Owned Businesses all of the women share a similar perceptive, resourceful approach to their work. PlainsCapital’s dedicated focus on networking events creates opportunities to connect women executives and entrepreneurs with peers and prospective customers. But the Bank’s most important role is providing vital funding, enabling business owners to grow their operations. “In any business, it’s important to establish a lending relationship early to fuel growth and, more importantly, build up business assets,” said Williamson. “In the absence of a banking history—and business assets—it becomes harder for a lender to jump in down the road, when it comes time to scale.” PlainsCapital Bank Edinburg Market President Michael Williamson and Senior Vice President and Commercial Loan Officer Amy Cantu

Kenneth G. Friedrich, HilltopSecurities senior managing director, head of fixed income capital markets

HilltopSecurities named industry veteran Kenneth G. Friedrich to oversee the firm’s fixed income sales, trading, and syndication business, encompassing 15 offices in nine states coast to coast. In his new position as senior managing director, head of fixed income capital markets, Friedrich reports to Robert Peterson, HilltopSecurities president and chief operating officer.

Friedrich joined the company from New York State Environmental Facilities Corporation, where he served as chief financial officer. Prior to that, he served as head of municipal sales, trading, and syndication for New York-based RBC Capital Markets (formerly Dain Rauscher), where he spent the majority of his 30-year career, overseeing primary market pricing and distribution as well as secondary trading and sales for long-term municipal securities.

“We’re excited with Ken’s addition to the firm’s leadership team,” said Peterson, “and we look forward to his contributions to help strengthen our taxable and municipal fixed income sales, trading, and underwriting efforts across the country, particularly as they relate to middle market, as we continue to expand our capital markets business.”

HilltopSecurities Welcomes The Interstate Group The Interstate Group—an established institutional agency-only brokerage firm based in Charlotte, N.C.—joined HilltopSecurities this past fall. As part of the new affiliation, The Interstate Group re-branded as The Interstate Group, A Division of HilltopSecurities, and now processes all transactions through HilltopSecurities. In addition, The Interstate Group President Grady G. Thomas, Jr., and Chief Operating Officer Jay A. Thomas were named HilltopSecurities managing directors.

Chairman and CEO Hill A. Feinberg. “We are able to provide resources and expertise to support their current business, while they bring new clients and capabilities that are expected to strengthen our existing client relationships. We’re eager to work together to expand our respective competencies as we move forward.”

“We believe that the addition of The Interstate Group as part of the HilltopSecurities team is mutually beneficial,” said HilltopSecurities

“We’re proud to be part of the HilltopSecurities family,” said Thomas, Jr. “The strengths and values of our firms complement each other, as

In additon to the Charlotte location, The Interstate Group has offices in Atlanta and Dallas to support its sales and trading operations.

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do our clients. We look forward to pooling our resources and expertise as we seek to provide our clients with a stronger suite of products and services.” Since 1975, The Interstate Group has been at the forefront of the unbundled research model by integrating trading, sales and support services for institutional clients. This is provided through a specialized arrangement that allows the institutional investment community to obtain independent, third-party research and services with commission dollars. The Interstate Group also offers commission recapture for public and private employee benefit plans.

Women-owned companies are on the rise nationally, accounting for one in five U.S. businesses.1 Given that Texas appears at the top of most “best of” lists for its businessfriendly climate, it should come as no surprise that women business owners are making great strides in the Lone Star State. Women-owned enterprises play a vital role in boosting the Texas economy, and PlainsCapital Bank is supporting this growing business segment in several ways. According to a recent study,2 Texas was second only to California in total number of womenowned firms and tied for first in the nation for the economic “clout” of its women-owned businesses. PlainsCapital Bank Edinburg Market President Michael Williamson notes important contributions women-owned companies have made to the Rio Grande Valley economy, providing a stable and diversified tax base and helping to drive job creation in one of the fastest-growing areas of the country and the state. He points to the Bank’s support of business education and economic development initiatives—like The University of Texas Rio Grande Valley and startup accelerators like Edinburg-based Hive Effect—that help business owners grow their companies. Mentoring and networking are also key factors in business owners’ efforts to scale up, and

Williamson says PlainsCapital plays a role here, as well. “We are privileged to work with some of the pioneering women entrepreneurs who are making their mark on the region,” said Williamson. “They are strategic thinkers and hands-on managers who are very much involved in the day-to-day operations of their businesses, to the extent that it can be a challenge to network and develop relationships with other business owners or even business bankers who can provide added support in growing their operations.” Amy Cantu has witnessed first-hand the rise in the number of women-owned businesses in the Valley. A senior commercial loan officer based in Edinburg, she is one of PlainsCapital’s many talented women lenders and business bankers located throughout Texas. Over the course of her 25-year career with the Bank, Cantu has worked with numerous women entrepreneurs and executives. Some of her and the Bank's current customers include, respectively, the owners of a large commercial plumbing and electrical company, regional food manufacturer and distributor, and several prominent auto dealerships, as well as a district manager for a national insurance company. While their backgrounds and businesses vary, Cantu says

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Cantu agrees, noting that while women business owners in the Valley are strong-minded, they are also reserved—and prefer minimal debt. Cultivating banking relationships takes time, which is why Cantu considers herself first and foremost a relationship manager. “I focus on building a relationship with these women, learning about their companies, educating them on all of our services, and discovering how we can partner with them to support their business objectives," said Cantu. "Building a foundation of trust is key.” Because PlainsCapital is a commercial bank, it’s able to offer small- to mid-size companies layers of business support, from commercial loans and lines of credit to treasury management services, as well as wealth management services and private banking for high net worth customers and business owners. “We’re focused on building relationships with women in business leadership roles—be it startups, established companies, or large corporations—to support their networking, business development, and financial needs,” said Cantu. “We want to help grow and expand our economy and provide women-owned businesses in South Texas the assistance they need to succeed.” 1. American Banker Dec. 8, 2017 2. 2016 State of Women-Owned Businesses Report; American Express OPEN

ON THE COVER

Bridge Builders What began as informal conversations evolved into a collaborative relationship. While working with Eubanks to develop a broad trust services package between the Bank and HilltopSecurities, Wyatt introduced her to Thomas Ricks, president of PlainsCapital Bank North Dallas, and Zach Hunter, a senior loan officer with PlainsCapital, because of their familiarity and expertise working with collateral loans. Eubanks’ response: “When we explore opportunities to build bridges and work more closely together, it has the potential to create more opportunities for our clients.” This concept of building bridges illustrates the use of casual information flows between people within Hilltop to connect the company’s financial and employee resources with customers and community goals, providing information and solutions where it’s needed, when it’s needed, to those who need it. PrimeLending Mortgage Lender Sharon McCormick and HilltopSecurities Financial Advisor Michael Owen

What does HilltopSecurities Financial Advisor Michael Owen appreciate most about his experience working with the wealth management team at PlainsCapital Bank? “Their integrity—they do what they say and say what they do,” said the veteran HilltopSecurities financial advisor. Owen has two primary passions (three if you count Harley-Davidson motorcycles). The first is photography and the second is helping people navigate their financial futures. An admirer of Ansel Adams’ black and white landscapes, Owen subscribes to the belief that photographs are not taken, but are made into something greater than themselves. He carries this ethos through to his advisory work, where he strives to provide clients with comprehensive solutions that exceed their expectations. As a senior vice president in HilltopSecurities’ Private Client Group, he has built a career helping generations of clients address important financial concerns from retirement to life insurance. When one of Owen’s long-time clients wanted to explore her options for moving a family trust account from another bank, he was able to draw on relationships he has built with associates at PlainsCapital, introducing her to Jim Krieger, PlainsCapital’s chief fiduciary compliance officer, and Chip Glispin, a wealth strategist with PlainsCapital’s Wealth Management group.

“Being part of the Hilltop Holdings organization gives me the ability to best serve my clients’ interests in many ways,” said Owen.

Building Bridges

As a financial services provider, Hilltop Holdings helps create economically vibrant communities and improve the quality of life of residents and businesses across the country by drawing on the resources at its disposal: mortgage credit access, private banking, commercial lending, financial advisory, municipal advisory, and property and casualty insurance coverage. Building cooperative relationships across business lines allows Hilltop to bridge boundaries and achieve a shared understanding of the company’s strategic goals. Hilltop’s employees are providing examples of this cooperation every day. In her role as director of HilltopSecurities’ Advisory Services Group, Alynn Eubanks is also the firm’s point person for all things banking related, including securities-backed loans and trust services. Following the completion of HilltopSecurities’ merger and acquisition in 2016, Eubanks saw an opportunity to leverage the firm’s connection with PlainsCapital to potentially better serve the banking needs of financial advisors and their clients. So she reached out to Rich Wyatt, PlainsCapital Wealth Management's chief financial officer.

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“It’s the water cooler effect, where conversations help grow trust between people,” said PlainsCapital Bank Victory Park President J.J. Gomez. Such was the nature of conversations between Gomez and Dave Geschke, president and CEO of HilltopSecurities Independent Network and director of retail for HilltopSecurities Inc. When one of Geschke’s clients informed him that he was relocating his company from Chicago to Dallas—which meant needing to establish a new banking relationship—Geschke introduced him to Gomez and the PlainsCapital team. Informal conversations were the foundation that led Vito D’Angelo, a financial advisor with HilltopSecurities in Austin, to introduce two of his clients to Tom Neville, head of private banking and wealth management for PlainsCapital Bank. Upon discovering D’Angelo’s clients were in need of new lending relationships for their respective businesses, Neville subsequently introduced them to PlainsCapital Austin banker Rick Lindley. “The key to accomplishing great things on behalf of our customers and communities is identifying common goals and bringing the right groups of people together,” said Geschke. This is what PlainsCapital Bank Dallas Region Chairman George McCleskey had in mind when he invited Owen to speak to a group of senior loan officers within his Dallas lending team regarding 401(k) solutions for business owners

and how PlainsCapital lenders could help their commercial bank customers benefit from HilltopSecurities’ retail services. Similarly, when Owen had a mortgage-related question on behalf of a client, he reached out to Sharon McCormick at PrimeLending. What began as a casual conversation turned into a beneficial partnership with McCormick becoming a trusted mortgage resource to whom Owen now refers clients. McCormick specializes in self-employed borrowers—people who own their own companies—and works with a number of PlainsCapital and HilltopSecurities associates, assisting with their customers’ needs. Professional collaborations such as this also benefit employees personally. McCormick’s successful dealings with colleagues in a professional capacity has made her the go-to choice for handling their personal mortgage needs. Bill Pinkerton, a HilltopSecurities financial advisor in Monterey, California, recalls the seamless process of working with Dallasbased McCormick, even though she and her PrimeLending team were located in a completely different state and time zone. Pinkerton’s West Coast title company also gave the nationallyranked mortgage lender high marks.

years of mortgage lending experience, Raskin also is a prominent player within industry circles, such as the Texas Mortgage Bankers Association for which he currently serves as president. Like McCormick and Wise, Raskin has collaborated with numerous colleagues over the years, including PlainsCapital Bank Chief Operating Officer Brian Heflin and HilltopSecurities Chief Administrative Officer John Muschalek, working with their clients in Texas and nationally to develop mortgage plans that complement their specific financial goals. “Each time we provide a valued service or innovation, it reinforces the benefit of the Hilltop brand,” said Gomez.

Building Loyalty

In today’s financial landscape, customers have so many choices. What they want, and need, is greater value and tangible solutions from a trusted group of partners, resulting in a migration toward solutions-oriented relationships. In business, those who are still pursuing the tried and not-so-true ways are not benefitting their clients. Those willing to look for better ways will see the value of building bridges and connecting their organization to customers via a multitude of touchpoints.

Building A More Unified Brand

The nature of Hilltop’s respective businesses brings with it a heavy investment in customer relationships. Utilizing complementary resources and services across the organization helps clients achieve their goals and allows Hilltop to strengthen connections with the community. As a company comprised of bridge builders, Hilltop is better positioned to earn customer loyalty, organically grow its businesses, and fulfill the organization’s role as a force of positive change within its markets. Building a bridge is a team effort, and teams are most effective when relationships are good. Good relationships are built on trust—trust that is given and returned. In this way, it creates reciprocal confidence. The bridges that are being built—with customers, the community, and between businesses—are built gradually, but they endure. They open up new roads and possibilities and reflect Hilltop’s commitment to working hard as one company. One team.

“Working collaboratively with someone at an affiliate, I hold them to the same professional standards as I hold myself,” said Pinkerton. “I can speak first-hand to Sharon’s level of professionalism. Going forward, I feel very comfortable referring my clients to her and PrimeLending.” The National Lloyds President met with McCormick regarding assisting employees who are relocating from Waco, Texas, to the company’s new corporate headquarters in Dallas. PrimeLending has a unique position to serve as a link between Hilltop’s various companies, employees, and clients. It’s a line of business that helps unite the Hilltop family. Gomez concurs. He has forged several trusted referral relationships at PrimeLending, including industry veteran Sheri Wise. Gomez’s bank customers and business contacts have been so wowed by their experience working with Wise that they have come to refer business to her, as well. Mark Raskin is another key PrimeLending resource. A senior loan officer and branch manager in the Dallas market with nearly 20

PlainsCapital Bank Wealth Management Chief Financial Officer Rich Wyatt and HilltopSecurities Advisory Services Group Director Alynn Eubanks

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