HilltopSecurities Overview Brochure

ADVANCING OPPORTUNITY FINANCIAL

S INCE 19 4 6

ADVANCING TRUSTED

RELATIONSHIPS

CO R P O R AT E OV ER V I E W

We don't follow herd.

We the leadherd. it. We lead it.

We the don’t follow

Our Mission To be the most trusted financial solutions provider in the United States.

HilltopSecurities

helps

advance

the

financial

opportunities

of

communities, businesses, and individuals alike. But that’s only part of the story. Our work redefines the idea of community involvement and impacts

We don'twhat follow thetheherd. matters most: city you love, the company you work for, and the

We lead it.

financial future of you and your family.

How do we do it? By trusting in your resolve to move your bold visions forward, and by

• Municipal issuers

continually working to earn

• Institutional investors

your trust while we help you

• Housing finance agencies

pursue them.

We

believe

it’s

the

• Broker-dealers and RIAs

ideal

• Individual investors

approach for those who believe in creating a better future.

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ADVANCING YOUR D EFINITION OF

SUCCESS TAILORED SOLUTIONS Every need is different, so every solution must be unique. It begins with listening, and working to truly understand your objective.

Our wealth of product knowledge and diversity of services, including risk and cost analysis,

75+ YEA RS OF HISTORY Established in 1946, HilltopSecurities is a unique blend of financial strength, deep industry knowledge, and decades of experience helping clients pursue their bold visions.

enables us to find sound solutions tailored to meet your needs.

FORTHRIGHT ADVICE AND DIVERSITY OF THOUGHT Being a leading municipal bank means being a reflection of the people in the communities we serve. Our diverse team of professionals explores proposed solutions through candid conversations and a realistic look at the anticipated results. Because being aware and informed lets you make confident decisions.

This is how we build long-term relationships and help enrich the financial future of communities, businesses, and individuals.

SM

As part of Hilltop Holdings, we’re backed by a strong and diverse financial services enterprise. Nothing represents this better than our iconic buffalo, “Mo,” a symbol for our unified power and the unstoppable momentum of an advancing herd.

CO R P O R AT E OV ER V I E W

1946 First Southwest Company forms as a broker-dealer specializing in public finance.

1972

Southwest Securities Inc. incorporates and becomes one of the first broker-dealers to enter the fully disclosed securities clearing business.

1997 SWS Group Inc. lists on the New York Stock Exchange.

2002 Southwest Securities adds 48 correspondent firms with prompt merger of MJK Clearing.

2004 Hilltop Holdings Inc. completes IPO on the NYSE.

2008 PlainsCapital Corporation acquires FirstSouthwest.

SWS GROUP INC. ACQUIRES M.L. STERN & COMPANY.

2012 Hilltop Holdings acquires PlainsCapital Corp.

2016

2021

HilltopSecurities forms from merger of FirstSouthwest and Southwest Securities.

HilltopSecurities celebrates its 75th anniversary and move to HilltopSecurities Tower in downtown Dallas, demonstrating its ongoing commitment to the local community.

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STRENGTH AND

MOMENTUM Hilltop Holdings Inc. (NYSE: HTH), HilltopSecurities’ parent company, is a publicly traded, diversified financial services company built on a proven record of strength and momentum. With deep roots in Texas and a national footprint stretching from coast to coast, Hilltop provides commercial banking, mortgage origination, and investment banking services through three primary operating subsidiaries.

$11.2BN $16.9BN BBB & A-

TOTAL DEPOSITS 1

TOTAL HOLDING COMPANY ASSETS 1 RATED INVESTMENT GRADE BY FITCH RATINGS AND KROLL BOND RATING AGENCY, RESPECTIVELY 2 1. As of Dec. 31, 2020. Hilltop Holdings Form 10-Q. 2. As of June 11, 2020.

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ABOUT OUR PARENT

DIVERSIFIED, YET SYNERGISTIC BUSINESSES Hilltop Holdings’ primary business lines include commercial banking (PlainsCapital Bank), mortgage origination (PrimeLending), and municipal investment banking (HilltopSecurities). This diverse, yet complementary, mix of businesses allows Hilltop to create synergies across our family of companies and market areas.

PlainsCapital Bank was founded in 1988 by a group of young bankers who dreamed of bringing relationship banking to their hometown of Lubbock, Texas. With the acquisition of Plains National Bank, a Lubbock financial institution with one branch and approximately $198.8 million in assets, they began growing the bank one relationship at a time. Over 30 years later, PlainsCapital Bank is the fourth-largest bank in Texas based on deposits and has a statewide presence with approximately 60 locations in markets such as Austin, Corpus Christi, Dallas, Fort Worth, Houston, Lubbock, San Antonio, and the Rio Grande Valley.3

HilltopSecurities was created through the merger of Southwest Securities and FirstSouthwest, two Dallas-based broker-dealers with national footprints and more than a century of combined history. HilltopSecurities is one of the leading municipal investment banks and one of the largest clearing services firms in the United States.4 The firm’s areas of focus include public finance, wealth management, fixed income capital markets, and structured finance/debt capital markets.

Since its inception in 1986, PrimeLending has grown from 20 employees to approximately 2,500 employees—including a team of approximately 1,225 loan officers nationwide—who produced $23 billion in closed mortgage loan volume during 2020. As of Dec. 31, 2020, PrimeLending maintained a 96% customer satisfaction rating.5

3. Based on Texas deposit market share of Texas-based banks. Deposit balance as of June 30, 2020. 4. Based on number of transactions as municipal advisor for the 10-year period ending Dec. 31, 2020, per Ipreo MuniAnalytics; Based on number of reported broker-dealer clients as of Aug. 17, 2019, per Investment News. 5. Survey administered and managed by an independent third party following loan closing. 96% satisfaction rating refers to the average rating customers have given loan officers for the period 01/1/20-12/31/20.

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HILLTOPSECURITIES’

4 DIVISIONS

OUR POSITION OF

PUBLIC FINANCE

STRENGTH

FIXED INCOME CAPITAL MARKETS STRUCTURED FINANCE/DCM WEALTH MANAGEMENT

TOTAL CLIENT ASSETS CUSTODIED

$37

$427 M

TOTAL EQUIT Y

TOTAL HFA LOAN RATE LOCKS SINCE 2012

MUNICIPAL ASSETS UNDER MANAGEMENT

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$50+ $43

OUR FIRM BY THE NUMBERS

1

800

MUNICIPAL ADVISOR IN

DIVERSE PROFESSIONALS

THE NATION BY NUMBER

PROVIDING FINANCIAL

OF ISSUES, AND NO. 3 BY

SOLUTIONS FROM 50+

AGGREGATE PAR AMOUNT

OFFICES NATIONWIDE1

FOR THE PAST 10 YEARS

BILLION

MILLION BILLION BILLION

#

2

3

ONE OF THE NATION’S LARGEST CLEARING FIRMS BY NUMBER

4

OF BROKER-DEALER CLIENTS.

5

6

1

#

TBA ADMINISTRATION 7

SERVICE PROVIDER TO HFAs

8

1. As of Dec. 31, 2020. HilltopSecurities is currently registered in 53 states and/or U.S. territories and jurisdictions. 2. For the ten-year period ending Dec. 31, 2020. Ipreo MuniAnalytics. 3. As of June 30, 2020, based on firm records. 4. Capital position as of Dec. 31, 2020 (unaudited). HilltopSecurities FOCUS Report. 5. As of Aug. 17, 2019.

Investment News. 6. As of Feb. 11, 2021. Internal company records. 7. As of Dec. 31, 2020. Figure includes treasury management and municipal advisor consulting assets, as well as assets held by JP Morgan in co-administrated government investment pools. 8. Represents 18 HFA clients and 200 programs, as of March 31, 2021.

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ADVANCING PUBLIC

FINANCE As a leader in municipal investment banking, we understand your bold objectives. In the past decade, we’ve served on more than 1,100 financings a year for a total par amount of over $500 billion.1 Our nationwide network of public finance, fixed income, and debt capital markets professionals work across geographic boundaries to partner with you and deliver a full suite of innovative solutions for all your financial needs.

W E H E L P A D VA N C E :

•

Airports

•

Benefit Plan Services

•

Convention Centers/Hotels

•

General Obligation Projects

•

Health Care

•

Higher Education

•

Housing Projects

•

Port Authorities

•

Public Power

•

Public-Private Partnerships

•

School Districts

•

Special Development Districts, Assessment or Taxing

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•

Student Loans

•

Toll Roads/Rapid Transit

•

Water & Sewer Facilities

PUBLIC FINANCE

A S S E T M A N A G E M E N T/A R B I T R A G E

M U N IC I PA L A DV I S O RY

R EBATE

For over 70 years, we’ve delivered municipal advisory services

As an SEC-registered investment advisor and independent

to states, municipalities, and nonprofits. As an investment

arbitrage rebate provider, we deliver informed investment

banking solutions provider, our tailored approach goes

advice, customized financial asset management, and post-

beyond debt issuances and helps advance your community

issuance compliance services to public entities nationwide.

and its financial needs. It’s why we rank as one of the top

With over $15 billion under management,2 we are a leader in

municipal advisory firms in the nation.

municipal asset management.

M U N ICI PA L OR IGI NAT ION & U N DE RW R IT I NG

GOVERNMENT IN VESTMENT POOLS

We maintain a national underwriting presence and

Local governments need sound investment options for their cash management programs. We partner with J.P. Morgan

distribute product across all investor segments—from the

Asset Management to administer AAAm-rated government

largest institutions to individual investors. Our dedicated

investment pools in Texas and Florida.3 With nearly $20

bankers, underwriters, traders, and sales professionals

billion in assets under management,4 the pool approach has

cover over 1,000 separate institutional accounts and

become the choice for many of our clients.

connect to more than 100,000 retail accounts to market your issue to the right investors.

CONTINUING DISCLOSUR E Our experienced in-house disclosure team helps you comply

FIXED INCOME IN VESTMENTS

with increasingly important disclosure requirements set forth in SEC Rule 15c2-12.

Our fixed income sales and trading desk gives you access to U.S. Treasury, agency debt products, and commercial paper products from our own inventory, dealer inventories, and our clients who are also seeking financial solutions.

C OM M U N I T Y I M PAC T B Y T H E N U M B E R S

1

#

MUNICIPAL ADVISORY FIRM NATIONWIDE, BASED ON NUMBER OF TRANSACTIONS IN THE PAST DECADE1

38+

29 DEAL OF THE YEAR

OFFICES IN 19 STATES PROVIDING FINANCIAL SOLUTIONS

AWARDS AND COUNTING 5

1,000+

1. For the 10-year period ending Dec. 31, 2020. Ipreo MuniAnalytics. 2. As of Dec. 31, 2020. Based on internal firm records.

3. A AAm rating is the highest principal stability fund rating assigned by S&P Global Ratings and is obtained after Standard & Poor’s evaluates a number of factors, including credit quality, market price exposure, and management.

Ratings are subject to change and do not remove market risk. 4. Total pool AUM reflects peak balances in calendar year 2020 for each pool: TexSTAR (Aug. 6, 2020), LOGIC (June 25, 2020), and FLSTAR (Oct. 19, 2020). 5. When serving as municipal advisor. At Nov. 9, 2020. Awarded by The Bond Buyer, Institutional Investor, and International Financing.

FINANCINGS PER YEAR AS EITHER MUNICIPAL ADVISOR OR UNDERWRITER 1

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HIL LTOP S ECUR I T I E S .COM

ADVANCING STRUCTURED

FINANCE As a full-service investment bank, our solutions go beyond traditional debt issuance.

We actively participate in the debt capital markets, allowing the entities we serve to broaden their financial options. Leveraging the firm’s financial expertise and broad distribution capabilities, we deliver innovative financing solutions, consulting and project finance services to debt issuers, private enterprises, and state and local housing finance agencies.

$16.4BN $1.6BN

NOTIONAL VALUE OF SWAP/ COMMODITY ADVISORY, VALUATION, AND ACCT. CONSULTING IN 2020 1

PAR AMOUNT OF HIGH YIELD & SPECIALTY FINANCINGS IN 2020 2

$48BN+

ACCEPTED HFA RATE LOCKS SINCE 2012 3

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STRUCTURED FINANCE/ D EB T C A P I TA L M A R K E T S

STRUCTURING HOUSING SOLUTIONS

Our approach to balance sheet management enables public and private entities to deliver sustainable economic growth.

HOUSING A DV ISORY

Our wide range of services include interest rate/commodity

For over 50 years, we’ve been helping housing finance

risk management advisory, online surveillance services,

agencies (HFAs) make housing more affordable in their

accounting consulting solutions, and structured investment

communities. Our team works closely with single- and multi-

strategies.

family issuers across the United States to find taxable and tax-exempt solutions.

OR IGINATION

T B A H E D G I N G &

We align investor and issuer objectives through a full suite

PIPELINE M A NAGEMENT

of capital stack solutions outside of traditional investment-

As the industry-leading HFA to-be-announced (TBA)

grade underwriting, including public entity loans, private

program provider,4 we have the experience, technology,

placements, swap and commodity advisory, commercial

and capital to help you structure and implement a program

paper underwriting, and variable rate remarketing.

that drives robust mortgage orientation and provides your participants with competitive rates.

COMMODITIES

COMPLI A NCE A DMINISTR ATION

As a partner to institutional and retail clients, we can offer

Our award-winning housing team leverages proprietary

hedging advice and execution to better serve their financial

technology

needs.

to

help

HFAs

manage

compliance

administration and marketing for mortgage financing and payment assistance programs.

1. For fiscal year 2020. 2. As senior/sole underwriter, placement agent, secured commercial paper dealer, and remarketing agent from Jan. 1, 2020 to Dec. 31, 2020.

3. As of Feb. 11, 2021. Internal company records. 4. Based on 2019 data. Factbook.

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ADVANCING FIXED

INCOME For institutional investors and issuers, our deep knowledge and issuers, our deep knowledge and active participation across the financial markets translates to relevant, real-time information and product offerings. With this insight, we put our strong capital position to work, maintaining markets in a wide variety of securities— including U.S. Treasury, agency, corporate, mortgage-backed, municipal, securitized products, and commercial paper—to help you meet your objectives in the marketplace.

1,500+

TIER 1 INSTITUTIONAL AND MIDDLE MARKET CLIENTS SERVED ACROSS ALL 50 STATES. 1

$690MM+

FIXED INCOME SECURITIES DAILY INVENTORY

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F I X ED IN CO M E C A P I TA L M A R K E T S

I N V E S T M E N T G R A D E A N D H I G H -Y I E L D

SY NDICATION & PR IM A RY ISSUA NCE

S A L E S & T R A D I N G

We have a proven track record of structuring complex instruments on a regional and national basis, and we excel

Our electronic trading platform and high-touch coverage

in the primary issuance of negotiated and competitive

model provide a large and diverse set of domestic and

municipal securities, government-sponsored enterprise

international institutions and individual investors with

(GSE) agency securities, HFA pooled securities, and state

investment solutions across the credit spectrum.

HFA collateralized mortgage obligations (CMOs).

1. Capital position as of Dec. 31, 2020 (unaudited). HilltopSecurities FOCUS Report.

FIXED INCOME SA LES & TR A DING With more than 200 trading and sales personnel in multiple trading locations across the country, our sizable presence gives you access to a wide range of suitable investment products—from U.S. Treasuries, GSE agencies,

250+

and commercial paper, to CDs, CMOs, corporates, and mortgage-backed and municipal securities.

SECURITIZED PRODUCTS SA LES & T R A D I N G Our mortgage-trading professionals specialize in both agency and non-agency mortgage markets. We serve as a pipeline manager and dealer of HFA specified pools and

SALES & TRADING PROFESSIONALS

CMOs, a primary issuer and market marker in other agency

ACROSS THE COUNTRY PROVIDING

CMOs and collateral, and a broker-dealer in non-agency

FINANCIAL GUIDANCE

RMBS and ABS securities and loans.

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ADVANCING W E A LT H

MANAGEMENT Whether it’s financial planning, growing your nest egg, or maximizing your income in retirement, our wealth management services are relationship based, technology forward, and tailored to meet your needs. For individual investors, we help put your financial life on track.

150+ 200 #3

PRIVATE CLIENT GROUP FINANCIAL PROFESSIONALS 1

APPROX. MOMENTUM INDEPENDENT NETWORK ADVISOR REPRESENTATIVES

CLEARING AND CUSTODY FIRM FOR FINANCIAL ADVISORS, MONEY MANAGERS, INSURANCE COMPANIES, BANKS, MUTUAL FUNDS, AND PUBLIC ENTITIES. 2

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W E A LTH M A N AG EM EN T

PE R S ON A L W E A LT H M A N AGE M E N T

CLEA RING SERVICES

We provide individual investors with a highly customized,

We help more than 130 broker-dealers and RIAs navigate

high-touch wealth management experience rooted in

the ever-changing landscape of retail and institutional

sound financial planning services and a full suite of

financial services by partnering with industry experts.

investment products. Whether it’s planning for college,

Our suite of execution, clearing, custody, and processing

taking your dream vacation, or enjoying retirement, our

solutions are customized to meet your needs, regardless of

financial professionals can help you realize your financial

your business mix.

goals.

SECURITIES LENDING

BROKER-A FFILI ATION MODELS

Our long-term counterparty relationships with broker-

Private Client Group

dealers, institutional investors, and our own wealth

Our private client group is comprised of more than 150

advisor networks provide us with a robust inventory and market perspective. With decades of experience, we can

financial professionals who serve individual investors

help you mitigate risk, realize competitive returns, and

across the country from offices in Texas, California,

meet your investing objectives.

Oklahoma, and Minnesota. 3

FIXED INCOME EXPERTISE As a municipal investment bank, asset manager, and trading firm, our active involvement in the fixed income

Momentum Independent Network Inc.

markets gives us unique visibility into the characteristics of

Our independent network is comprised of nearly 200

suitable products that can help you establish a predictable

investment advisor representatives who serve individual

source of income.

investors in more than 30 states from coast to coast. 3 1. Individual investors should conduct tax planning and estate and divorce settlement planning in conjunction with a qualified tax or legal advisor.

2. Based on reported number of broker-dealer clients as of Aug. 17, 2019.

Investment News. 3. As of March 4, 2021.

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ADVANCING EXPERIENCED

LEADERSHIP

H I L L T O P S E C U R I T I E S EXECUTIVE COMMITTEE

At HilltopSecurities, our executive committee is comprised of an experienced team of financial services professionals from a wide range of practice areas. These leaders collaborate on a daily basis to design, execute, and manage our business strategy.

M. BR A DLEY WINGES President & CEO Hilltop Securities Inc.

CL A RE GR ACA Executive Managing Director Chief Administrative Officer

D AV I D H O L L E R A N Senior Managing Director Chief Operating Officer

MIKE EDGE Executive Managing Director Chief Financial Officer

D AV I D M E D A N I C H Executive Managing Director Co-Head of Public Finance

MIKE BA RTOLOTTA Senior Managing Director Co-Head of Public Finance/Debt Capital Markets

MICH A EL M A R Z Executive Managing Director Head of Structured Finance

A .J. M AGGIO Executive Managing Director Co-Head of Fixed Income Capital Markets

JA SON LISEC Executive Managing Director Co-Head of Fixed Income Capital Markets

JOHN MUSCH A LEK Executive Managing Director Head of Wealth Management

L A N A CA LT ON Executive Managing Director Head of Clearing Services

MELINDA FLEMING Head of Human Resources Hilltop Securities Inc.

BRIAN WITTNEBEN Executive Managing Director General Counsel

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N AT I O N W I D E E X P ER T I S E

R EGIONA L W ITH A NATIONA L R E ACH

While we’re based in Texas, we maintain nearly 50 offices nationwide across the United States. Our national footprint gives us a holistic view of the solutions and services deployed in major markets throughout the country, informing our approach and advancing our value for clients from coast to coast.

Find specific location and contact information for all of our branches at HilltopSecurities.com.

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HIL LTOP S ECUR I T I E S .COM

717 N . H A R W O O D S T R E E T, S U I T E 3 4 0 0 DALL A S, TX 75201

1. 8 3 3 .4 H I L LTO P

H I L LTO P S ECUR I T I E S .CO M

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