Hilltop Holdings Environmental, Social and Governance Report 2020

Page 6

OUR COMPANIES PL A IN S C A P I TA L B A NK

Small Business Administration Loans

$60,269,000

PlainsCapital Bank is a leader in the United States Small Business Administration (SBA) program originating a large volume of SBA 504 loans annually. The SBA was developed to promote

2020 community development loans originations

economic development to create and retain jobs. PlainsCapital collaborates with the SBA to finance small businesses looking to expand. The program helps businesses that may not qualify for conventional financing by giving them access to financing

2020 Capital Resources Provided in Select Industries

backed with as little as 10 percent owner equity.

Commercial Loan Funds

$32.9 million in SBA 504 Loans Funded in 2020

2020 Bank Lending Activity

# Loans

Small Business & Small Farm Loans

Loan Value (000s)

4,244

$743,410

28

$69,153

Home Mortgage Loan Originations

175

$112,533

Home Mortgage Loan Purchase

650

$192,571

5,097

$1,117,667

Community Development Loans

TOTAL

Childcare Care & Youth Services

$ 17,343,000

Education

$ 10,362,000

Energy

$ 5,245,000

Environmental

$ 1,745,000

Farming

$ 80,925,000

Petroleum/Natural Gas Distribution

$ 10,958,000

Recycling /Conservation

$ 5,984,000

Partnership (HELP). During 2020, PlainsCapital provided $113,000 in HELP funds to 20 borrowers.

Community Development Loans PlainsCapital Bank received a “Satisfactory” rating on its most

STRESS TESTING

recent Community Reinvestment Act (CRA) performance

Historically, we perform capital stress testing with semi-annual

evaluation by the Federal Reserve, dated March 12, 2018.

stress test simulations. These simulations utilize the CCAR

PlainsCapital Bank has a number of CRA assessments areas

scenarios released by the Federal Reserve Bank early in the year

(AAs) in diverse parts of Texas, including in the North Texas,

while later in the year, Hilltop Holdings will generally seek to

Central Texas, West Texas, Southern Rio Grande Valley

utilize Moody’s based scenarios to conduct more idiosyncratic

(bordering Mexico), and Southern Coastal regions. The Bank

stress testing. Results not only assist management in assessing

continues to provide resources that support the Financing

overall levels of capital but aid in defining our “stress scenario”

Capital Improvements in our Texas Communities.

zones. Our capital policy defines the capital required to be well capitalized per regulatory definitions. The policy also defines the operating capital we can use for business as usual growth

HELP Loans

in addition to strategic initiatives (M&A, share repurchase,

PlainsCapital Bank is a participating member with the Federal

dividends, etc.).

Home Loan Bank of Dallas Homebuyer Equity Leverage

5


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