Momentum - Fourth Quarter 2017

A Hilltop Holdings Publication

MOMENTUM

Hillltop Holdings Coast to Coast

Hilltop Supports Emmitt Smith Gran Fondo In only its second year, the Emmitt Smith Gran Fondo has quickly become an annual favorite for North Texas biking enthusiasts. On Sept.

30, more than 1,400 cyclists converged in Frisco, Texas, just north of Dallas, to take part in the premier, multi-course cycling event hosted by the former Dallas Cowboy running back and avid biker in support of his namesake cause—Pat & Emmitt Smith Charities—in its mission to support underserved youth in North Texas.

The Dallas-based Hilltop Holdings family of companies was well-represented at the race, with PlainsCapital Bank, PrimeLending, and

HilltopSecurities providing more than 100 cyclists and volunteers for the event of which PlainsCapital was the presenting sponsor.

Spectators surrounded the start and finish line at Frisco Rough Riders stadium, cheering on participants. From professional cyclists to recreational riders, the event had something for everyone, including a competitive 100-mile timed race, as well as 100-kilometer, 45-mile, and 22-mile courses and a two-mile family fun ride. Capping off the festivities, Smith and his wife Pat made a check presentation to the Dallas ISD’s grant program for $18,000 to help fund college scholarships for area students.

4th Quarter 2017

PlainsCapital Bank Closing Coordinator Assistant Armando De La O and Emmitt Smith.

2017 National Recognitions HILLTOP HOLDINGS

FORBES BEST BANKS IN AMERICA

HILLTOP HOLDINGS

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PRIMELENDING

FORTUNE BEST WORKPLACES FOR WOMEN

FORBES BEST TEXAS BASED BANKS IN AMERICA

HILLTOPSECURITIES

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PRIMELENDING

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FORTUNE BEST WORKPLACES IN FINANCIAL AND INSURANCE

INVESTMENT NEWS LARGEST CUSTODIAN AND CLEARING FIRMS

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PRIMELENDING

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J.D. POWER U.S. PRIMARY MORTGAGE ORIGINATION SATISFACTION

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PRIMELENDING

DALLAS MORNING NEWS BEST PLACES TO WORK © 2017 Hilltop Holdings Inc. Product of the Marketing & Communications Department

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The Star Attraction PlainsCapital Shines at Dallas Cowboys’ Sprawling New Headquarters

PrimeLending United States Air Force veteran and production manager for PrimeLending in Redding, Calif.

“The VA home loan is a great way of helping our veterans establish credit and build a strong financial future with homeownership at the heart of that foundation.”

years. The company however, recognized that the statistically low utilization rate of VA loans relative to the number of homes being purchased meant there was an opportunity to do more to help military families take advantage of their VA benefits.

The VA home loan is the only loan program broadly available that enables the borrower to purchase a home with no down payment and no monthly mortgage insurance required. In addition, ‘make-sense’ underwriting standards and reasonable credit and income requirements, coupled with the current low interest rate environment, make VA loans an attractive program for veterans and active members of the military, many of whom might otherwise struggle to secure home financing.

“Many qualifying veterans and surviving spouses don’t take advantage of the VA home loan program for a number of reasons,” said Schmitt. “They may not be aware of all of the advantages, or they’re under the impression that it’s a complicated process mired in red tape.

There’s also the possibility that, as lenders, we could be doing more to help educate veterans on the program."

As one of the top 10 purchase mortgage lenders in the country, Dallas-based PrimeLending has processed thousands of VA loans over the

Reflecting on the Things That Matter The end of the year provides an opportunity to summarize our accomplishments. It also gives us the opportunity to emphasize the things we believe really matter, and what we think that means for our company now and in the years to come.

We continue to take the longer view over short-term tactics, and we have made tremendous progress in moving the company’s agenda forward in 2017. As indicated by our most recent earnings report, Hilltop Holdings increased its total assets to $13.5 billion and generated $119 million in net income for the first three quarters of the year—up nearly 10 percent compared to the same period last year—strengthening our balance sheet.

Our solid performance in the face of Hurricanes Harvey and Irma, which affected both Hilltop and our customers, further supports our diversified operating model. It also reflects something more—a difference in how people across our organization think, act, and work together. The results we’ve seen reflect the overall soundness of our strategic priorities and the consistent performance of the nearly 5,500 people who work here.

2017 sharpened our definition of what’s unique about Hilltop Holdings’ response to a changing world, balancing ambition with our enduring values and using that experience to create a competitive advantage. This past year also reinforced our conviction to direct all aspects of our business—our talent, capabilities, resources, and reputation—toward the ultimate goal of helping our customers and the communities we serve to succeed.

Contained on the following pages are a few examples that speak to our efforts in these matters, from HilltopSecurities’ holistic approach to helping customers manage their financial futures, to PlainsCapital’s growing digital banking platform, PrimeLending’s industry-leading customer service initiatives, and National Lloyds’ rising stature within the real estate investment community. But perhaps

Jeremy B. Ford Co-CEO and President

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the greatest testament to our evolution as a company was reflected in the manner by which we responded collectively and individually to aid colleagues, customers, and communities who fell victim to the catastrophic storms.

We have a great deal of which to be proud, and we carry our accomplishments and lessons from 2017 into the New Year along with the essential optimism that pushes us to continue to innovate and grow. We also carry the knowledge that the way forward can only be guided by our coherent understanding of how we are going to act. Thanks to the caliber and performance of our people and the earned trust and support of our customers and communities we serve, we remain confident in our path.

Happy holidays, and we will see you in 2018!

Alan B. White Co-CEO and Vice Chairman

This past January, PrimeLending launched the “Watching Your Six – No Lender Fees” VA home loan program to help increase awareness of VA home loan benefits for buyers. In taking the unique step of waiving the lender fees on

all VA loans, which adds yet another benefit to the program by making it even more accessible for borrowers, the company is calling attention to the fact that military members have access to one of the most financially advantageous and flexible home purchasing programs on the market. Additionally, borrowers benefit from working with PrimeLending’s experienced VA lending officers who know how to successfully navigate the VA loan process and provide a seamless, transparent experience for customers from start to finish.

“It was an honor to serve my country as a member of the U.S. Air Force,” said Schmitt. “At PrimeLending, we recognize that working with our military families is a privilege, and we want to make sure we are doing our part to support as many of our service men and women as possible on their journey to becoming new or even more successful homeowners.”

Committed to Customer Satisfaction J.D. Power recently released its 2017 U.S. Primary Mortgage Origination Satisfaction Survey identifying which mortgage lenders hold the highest marks in consumer satisfaction, and PrimeLending was ranked No. 2.

According to PrimeLending President Steve Thompson, the recognition confirms PrimeLending’s own 96 percent customer satisfaction survey results1 and the more than 6,000 five-star reviews the company has garnered on Zillow, the leading online real estate database company.

reported high levels of customer satisfaction in their loan representatives scored substantially higher than those with low levels of trust. Some of the driving factors that contributed to higher levels of trust included loan representative follow-through, continuity in working with a single loan representative, and representatives proactively providing status updates.

“Earning a J.D. Power distinction in customer satisfaction translates across all industries, and we are honored to receive this recognition,” said Thomson. "We are obsessed with exceeding customer expectations and believe wholeheartedly that continuing to deliver our unmatched level of outstanding service will propel us to the top spot on this list."

As one of the top 10 purchase mortgage lenders in the country, PrimeLending conducts its own on-going customer satisfaction survey as part of its comprehensive customer satisfaction program. PrimeLending engages every customer for valuable feedback, inviting them to complete an online satisfaction survey. The company, in turn, uses the information to improve the lending process and customer experience. Developed by an independent advisory firm, PrimeLending’s survey measures a wide range of factors, including product offering, communication, price, knowledge, timeliness, and service quality.

Among the findings from the J.D. Power survey was the correlation between customer satisfaction and the level of trust customers had in their loan representatives. Companies that

This past January, PrimeLending added another component to its customer satisfaction program, proactively inviting customers to post reviews of their lending experience on Zillow. Widely

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considered as the go-to source for real estate buyers, agents, and even industry analysts, the Zillow website generates approximately 160 million visitors a month on average. The real-time ratings and comments from customers provides an added resource of information that PrimeLending incorporates with its online survey findings. To date, PrimeLending has generated more than 6,000 Zillow reviews, surpassing a number of its top competitors, while maintaining a consistent five-star rating from customers.

Thompson attributes PrimeLending’s outstanding customer satisfaction results to the company’s unique culture built around one simple belief— investing in talented, dedicated people.

“Having passionate, motivated people who care about our customers is our greatest asset,” said Thompson. “It is the secret to PrimeLending’s success and the reason so many customers trust us to guide them through the mortgage process.”

1. Survey administered and managed by an independent third party following loan closing. The 96 percent satisfaction rating refers to the rating customers gave to PrimeLending loan officers.

Hilltop Holdings

PrimeLending

PrimeLending Names Steve Thompson President Steve Thompson has been appointed president of PrimeLending. In his new role, Thompson, who previously served as executive vice president of national production, will continue to lead the company’s 1,300-plus loan originators nationwide, as well as take on responsibility for national operations, capital markets, affliated businesses, and marketing.

“Since joining PrimeLending, Steve has had a tremendous positive impact as a leader on the production team and our organization as a whole,” said Todd Salmans, chairman and CEO of PrimeLending. “He has set the bar extremely high, demonstrating an unwavering commitment to our principles, a keen understanding of the marketplace, and the drive and genuine dedication to bring out the very best in those around him.”

Thompson first joined PrimeLending in 2011 as western division manager, quickly earning a promotion to national sales manager in 2013 and becoming a highly valued member

of the executive leadership team. Under his leadership, PrimeLending has consistently grown national production numbers, ranking in the top 10 in purchase volume each year since 2012. In building the company’s successful production organization, Thompson is credited with attracting and retaining talented people and surrounding them with best-in-class productivity tools, training, and support. As a result, PrimeLending has maintained a 96 percent customer satisfaction rating and has been recognized as a top workplace in several categories by Fortune magazine.

Prior to joining PrimeLending, Thompson held numerous leadership and production positions within the mortgage and financial services industries, including key roles at several prominent national mortgage lenders. A native of California, Thompson received a B.S. in economics from the University of California, Los Angeles, and an M.B.A. from the Paul Merage School of Business at the University of California, Irvine.

In the days immediately following Hurricane Harvey’s landfall, Hilltop and its family of companies—PlainsCapital Bank, PrimeLending, HilltopSecurities, and National Lloyds—initiated a hurricane relief campaign and employee fundraising drive. Thanks to the amazing generosity of our employees, we raised more than $200,000 toward the relief and recovery efforts along the Texas Gulf Coast. The amount represents Hilltop's initial $50,000 corporate donation announced on Aug. 31, 2017, plus funds raised from the company-wide donation drive.

Steve Thompson President PrimeLending

Homeownership Benefits for Veterans More than 21 million veterans and service members live in the U.S., but only roughly six percent of them who bought homes in the past five years did so by taking advantage of the substantial benefits offered through a U.S. Department of Veterans Affairs (VA) home loan.

PrimeLending is looking to help change that by waiving the lender fees on all VA loans for customers.

Hurricane Relief Efforts

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Referred to as our Hilltop Harvey Heroes, a collection of some of their stories are posted to the Hilltop Holdings website at hilltop-holdings.com/hurricane.

Retirement Marks Distinguished Career

A prominent figure in Texas banking for more than 35 years, Huffines held executive positions at Dallas BancShares Corp. and Republic National Bank of Dallas prior to joining PlainsCapital in 2001 as chairman of the Central and South Texas regions. Huffines was instrumental in creating the Bank’s growth and expansion across Texas in the early 2000s.

“Our military men and women sacrifice so much to serve our nation,” said Sabrina Schmitt, a

employees who stepped into the breach with the resources they had to help neighbors and strangers in need.”

In addition to the charitable donations, Hilltop employees from across the state responded to the call for help from overwhelmed local government officials and first responders. They came with boats, supplies, and large cookers in tow, assisting with water rescue efforts in Houston, feeding displaced storm victims along the coast, implementing emergency supply drives, volunteering at shelters, and participating in the massive clean-up efforts, among others.

Hilltop Holdings Chief Operating Officer for Subsidiaries James Richard Huffines will retire at the end of the year, effective Dec. 31, 2017.

Huffines assumed the role of overseeing Hilltop’s companywide business operations in September 2016, after serving as president and chief operating officer of PlainsCapital Corporation— the holding company of Hilltop subsidiaries PlainsCapital Bank and PrimeLending, a position he held from November 15, 2010 to 2016. He currently serves on the board of directors for Hilltop Holdings, as well as PlainsCapital Bank, PrimeLending, and HilltopSecurties.

Established in 1944 as part of the original Servicemen’s Readjustment Act (better known as the GI Bill of Rights), the VA home loan is a government-backed mortgage program designed to help retired and active-duty military men and women and eligible surviving spouses become homeowners. VA home loans are provided by private lenders, such as PrimeLending, with the VA guaranteeing a portion of the loan, enabling lenders to offer more favorable terms to homebuyers.

“The remarkable acts of heroism and generosity that we witnessed from ordinary people, including members of our own Hilltop family, in an unprecedented humanitarian relief effort was awe-inspiring,” said Hilltop Holdings Co-CEO and President Jeremy B. Ford and Co-CEO and Vice Chairman Alan B. White. “We are exceptionally proud of our

Huffines graduated from the University of Texas with a B.B.A. in finance and from the Southwestern Graduate School of Banking at Southern Methodist University. A recognized business, community, and civic leader, he has served on the boards of numerous organizations including: chairman of the University of Texas System board of regents; the University of Texas Investment Management Company (UTIMCO) board of directors, a $30 billion endowment for higher education in Texas; The Dallas Foundation board of governors; Dallas Citizens Council board of directors and executive committee member; chairman of the Governor’s University Research Initiative advisory board; and the Energy Future Holdings (formerly TXU) board of directors and audit committee chairman. Additionally, Huffines has served on the boards of the Texas Bankers Association, Texas Business Leadership Council, Texas State History Museum Foundation, University of Texas Southwestern Medical Foundation, and both the Dallas and Austin Symphony Orchestra boards, respectively.

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James R. Huffines Hilltop Holdings Chief Operating Officer for Subsidiaries

National Lloyds

PlainsCapital Bank

Prominent Houston Bankers Help Launch The Private Bank at PlainsCapital that up to 70 percent of high net worth families lose their wealth by the second generation.

To preserve their wealth, families need a wellconsidered wealth management and succession plan, even though it can be a difficult issue to address.

“This is where we believe PlainsCapital can play a key role,” said Schaller. “Wealth preservation is no longer just about investing assets, it should also include developing a succession plan and getting the next generation involved.”

The Private Bank at PlainsCapital creates solutions for clients utilizing a full team of specialists, including trust, investment, and banking professionals, as well as financial planners, attorneys and more. They offer specialized wealth management strategies to help multigenerational high net worth families preserve and grow their wealth by focusing on the following key areas: Houston private banking executives Jeff Horner, PlainsCapital Bank senior vice president and wealth strategist, and Steve Schaller, PlainsCapital Bank executive vice president and market manager.

PlainsCapital Bank has hired two Houston-area industry veterans to help lead the Bank’s private banking initiative in the greater Houston and Coastal Bend areas. Steve Schaller, CFA, serves as executive vice president and market manager, and Jeff Horner, CFP, serves as senior vice president and wealth strategist. They report to Thomas Neville, executive vice president and head of private banking and wealth management for PlainsCapital.

As tenured private bankers experienced in serving high net worth individual (HNWI) clients and family offices and overseeing billion-dollar portfolios, Schaller and Horner will focus on building PlainsCapital’s private banking presence in Houston and along the Gulf Coast region.

They will specialize in private wealth planning, trust, and investment management services for business owners, executives, entrepreneurs, and other HNWI clients and families.

“We are excited to welcome Steve and Jeff, who bring experience, expertise, and recognized reputations as accomplished professionals, particularly in the Houston market,” said Neville.

“Their background working with HNWI clients to help them meet their financial goals is a strong fit

with PlainsCapital—both in core competencies and core values—as we expand the scope of our private banking services.”

In their new roles, Schaller and Horner will help lead the Bank’s initiative to brand its private banking services as The Private Bank at PlainsCapital in its markets throughout Texas. The Private Bank at PlainsCapital allows the Bank to more effectively serve the evolving HNWI market, including the increasingly multigenerational nature of the sector.

“The Private Bank at PlainsCapital enables us to broaden and deepen our best-in-class services specifically as they pertain to family offices and succession planning—an important step in our wealth management growth strategy as we expand our capabilities to provide a dedicated offering to high net worth individuals throughout the state,” Neville said.

According to the U.S. Wealth Report for 2015, wealth among HNWIs in the U.S. grew to $15.2 trillion, with the largest increase in new HNWIs coming from Texas and the West Coast.

Houston was ranked 7th for total number of HNWIs. According to Schaller, studies show

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• Planning and family dynamics • Asset management • Private banking • Trust, fiduciary and administrative services • Foundations and endowments PlainsCapital is an established, well-known, highly regulated financial entity that offers clients simplicity and security. Backed by Hilltop Holdings, a $13-billion Dallas-based holding company, the Bank has assisted Texas clients with their private banking and wealth management needs for three decades.

Well known in the Houston private banking community, Schaller brings 30 years of banking experience to his new role, including 16 years of portfolio management and investment experience in client management, asset allocation, investment program implementation and new business acquisition. He earned his Bachelor of Science and MBA degrees from Vanderbilt University.

Horner has more than 15 years of experience providing customized wealth planning services to HNWIs. He earned his Bachelor of Business Administration degree from Baylor University.

Schaller and Horner office at PlainsCapital’s Kirby Grove location in Houston.

cash flow is an important issue. The payment flexibility National Lloyds builds into its service is ideal for these types of investors.”

According to Goodyear, customers can choose to pay one comprehensive bill or utilize National Lloyds’ payment plan, whichever best accommodates their cash flow needs at the time—like being able to free up funds for periodic property renovations, for example.

National Lloyds recognizes that the situations and circumstances of property owners vary from one to another; however, they all share the common need to insure their investments— whether they have one rental property or hundreds. National Lloyds’ landlord and rental property policies can be easily tailored to meet the insurance coverage needs of the small-scale investor, as well as the professional landlord.

Long-time National Lloyds partner and agent Rich Keltner of Keltner Insurance Inc. in

Memphis, Tennessee, works with both types of investors. His customers particularly appreciate National Lloyds’ ability to handle multiple billing options.

“Investors frequently have property portfolios where some or all of their rental homes are mortgaged,” said Keltner. “National Lloyds can insure them all. They even take care of coordinating with the bank—or banks, as is often the case—for billing purposes and to ensure they have the necessary coverage documents. This is just one example of how National Lloyds helps to streamline the process for my customers and eliminate some of the financial legwork that comes with managing their investments.”

National Lloyds’ landlord and rental property program, in addition to offering competitive levels of liability coverage relative to the industry, provides convenient and flexible insurance solutions catering to the business

needs of property investors. It's also backed

by National Lloyds’ A.M. Best “A” Rating, demonstrating the company’s proven expertise in settling these types of claims and protecting policyholders’ financial interests.

“Ultimately people are buying insurance to protect their property investments and themselves from financial loss in the event of a claim, be it from fire, flood, lightning, windstorm, personal injury or other perils,” said Palczewski.

1. National Lloyds’ landlord and rental property policies cover primarily stick-built single-family homes and residences designed for one to four families (townhomes, duplexes, triplexes, and fourplexes) valued up to $250,000.

2. Investopedia, "Why does the real estate sector apeal to growth investors?" June 11, 2015.

3. 2017 National Association of Realtors Investment and Vacation Home Buyers Survey 4. 2017 National Association of Realtors Investment and Vacation Home Buyers Survey 5. National Lloyds currently underwrites policies in nine states: Texas, Arizona, Tennessee, Georgia, Missouri, Oklahoma, New Mexico, Nevada, and Louisiana.

A New Era in Manufactured Homes The resurgence in manufactured home sales has coincided with the increased demand for affordable housing options nationwide, and would-be buyers new to the market have discovered an industry that has evolved in both aesthetics and service.

A manufactured home’s price tag—a fraction of the cost of a new, single-family, site-built home— holds vast appeal for many prospective buyers.

And while price may be a motivating driver for customers to visit a retailer, the features and amenities of today’s manufactured homes are often the deciding factor in making a purchase.

Updates to the federal HUD code in recent years mean builders are producing energy efficient, durable homes that marry thoughtful, modern design with eco-friendly, sustainable materials.

Gone are the bland, cookie-cutter designs of the past. Today’s prospective buyers are met with a revitalized product that showcases high-end amenities on par with traditional site-built homes.

In addition to producing homes that are large on aesthetics, the industry has also evolved in its approach to home sales.

“We have become a kind of one stop shop for buyers,” said Clint Gordon, owner of Bentli Homes, located just east of Dallas. “Along with selling homes, we provide a number of

financing requirements as well as their claims needs down the road,” said Lynett Pirtle, operations manager for Nalico General Agency Inc. Dallas-based Nalico General Agency Inc., a subsidiary of National Lloyd Corporation, has been a major player in the POS manufactured dwelling insurance space for almost 35 years.

Licensed in more than 30 states, the company has a concentrated presence in Texas, Oklahoma and Tennessee, and continues to grow in other markets.

Photo courtesy of ManufacturedHomes.com

other services, from land packages to helping customers navigate the lending process, including providing on-site home insurance policies.”

According to Gordon, the vast majority of manufactured homes are purchased through financing, which is contingent on having the home insured. Point-of-sale (POS) insurance serves an important role in the home sale process.

“Dealers want and need a trusted insurance partner to aid customers with their upfront

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“From the homebuyer’s perspective, the dealer— someone like Clint—is the front-end person in the insurance transaction,” said Pirtle. “While he may initiate the process, our job is to deliver on the relationship by ensuring the homebuyer’s experience going forward is positive and making any future claims or inquiries they may have as simple as possible. Simplicity is key.

If homebuyers are subjected to a frustrating experience on our end, it can reflect badly on the dealer.”

Nalico has earned the confidence of the nearly 150 manufactured home dealers with which it partners by consistently meeting the needs of their customers.

PlainsCapital Bank

National Lloyds

Growing Number of Real Estate Investors Spotlights Role of Asset Protection

ON THE COVER

New North Texas Branches Call Dallas Cowboys HQ Home region’s thriving economy, particularly Dallas’ northern communities, which are experiencing a whirlwind of growth and development with Frisco at the epicenter.

structure, like in the case of a fire or flood.

However, rental property coverage is broader than that, approaching asset protection from a more comprehensive financial perspective, such as offsetting costs from loss of rental income associated with a covered property damage claim or liability protection in the unforeseen event of someone being injured due to a property accident.

“We are very excited to expand our presence in the growing and dynamic Frisco market,” said Robertson. “North Texas is one of the fastestgrowing areas in the country, and The Star in Frisco is located right in the heart of it.”

PlainsCapital’s location at The Star offers a full suite of commercial banking services including lending, deposit accounts, cash management, and treasury management, as well as customized solutions to meet customers’ financial needs.

At the end of the day, rental insurance is about safeguarding your investment and preserving your existing wealth.

PlainsCapital Bank, The Star in Frisco

National Lloyds Director of Field Operations Joe Palczewski (left) with Gary Goodyear, president of Bluebonnett Insurance Group, LLC, and Krista Cross, Bluebonnett Insurance Group production manager

It’s a common dilemma. People want to invest but don’t know where, how, or what might yield the best financial results. Whether you are looking to diversify your investment portfolio beyond stocks and bonds, supplement your income stream, or achieve other financial goals, a growing number of people are taking the plunge into real estate investing—particularly residential rental properties.

The key to success in rental property investing lies in treating it like the business it is and taking the necessary steps to protect your assets.

Insurance is a vital part of successful property investing, enabling buyers to safeguard their assets while insulating themselves against losses that could wreak financial havoc—like fire, flood, liability, loss of rental income, capital expenditures and more. Dallas-based National Lloyds Insurance Company specializes in the niche business of providing customized insurance policies for real estate investors, particularly those specific to the landlord and rental property market.1 Real estate, while subject to economic cycles, has historically been a strong growth sector.

Following the financial crisis of 2008, the

real estate sector has since bounced back, recovering to post five-year returns as of 20142. According to a recent industry survey 3, investment home sales comprised 20 percent of all real estate transactions in 2016 with nearly half of investors—42 percent—primarily purchasing properties for rental income generation. And while a bad rental property is equally capable of losing money like a bad stock, some of the investment advantages that show up on paper include rental income, property appreciation, and tax benefits, not to mention that properties can be purchased with borrowed funds. That said, investors should be prepared for the full cost and responsibility that comes with owning and operating a rental property or landlord business.

“Losses happen, regardless of whether or not they are in a property owner’s control,” said National Lloyds Director of Field Operations Joe Palczewski. “Fortunately, a number of these losses can be covered with a customized landlord insurance policy from National Lloyds.”

According to Palczewski, people new to the rental property business often process insurance solely as it relates to the physical

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National Lloyds has provided property and casualty insurance to customers since its founding in 1948. The company’s expertise in insuring smaller, lower-valued homes makes it a good fit for the landlord and rental property market where the median investment home sale price is $155,000.4 Twenty percent of National Lloyds’ book is comprised of landlord and rental policies.

Real estate investors look for carriers that understand their specific insurance situation.

National Lloyds has established itself as a recognized player in the market, providing a program for insurance agents5 designed to help build and support their growing landlord and rental property business.

Gary Goodyear can attest to the benefits of partnering with an insurance provider that specializes in the rental property arena. The owner of San Antonio-based Bluebonnett Insurance Group, Goodyear’s relationship with National Lloyds dates back more than 15 years. Because he works with a large number of professional investors with sizeable property portfolios, Goodyear cites National Lloyds’ easily customizable policies and convenient payment options as strong selling points.

“For the investor with dozens of rental properties, this is their business and they are focused on protecting their investments,” said Goodyear. “Because they also are having to write large checks to cover costs associated with managing a sizeable number of properties,

The regional economic boom continues to push the Dallas metroplex further north to accommodate the area’s growing population and business needs. To support the region’s thriving economy, on October 18, PlainsCapital Bank announced the opening of its two newest locations in North Texas—a retail branch and a lending office located at The Star in Frisco, the impressive new billion-dollar-plus, mixed-use development anchored by the Dallas Cowboys’ world headquarters.

The retail branch at The Star features a

4,000-square-foot, full-service lobby at 6635 Cowboys Way, Ste. 100, directly on the Ring of Honor Walk honoring former Dallas Cowboys players for their outstanding contributions to the team franchise. Across the street from the retail branch is the 5,000-square-foot commercial lending office located at One Cowboys Way, Ste. 250, in the heart of the Dallas Cowboys headquarters building.

PlainsCapital Bank Frisco President Jamie Robertson said the new location strengthens PlainsCapital’s commitment to support the

According to Robertson, the new location enables the Bank to more than double the size of its Frisco operations to better serve the community’s growing commercial base.

“We believe in building strong relationships with our customers, and we are making a substantial investment in the future of this area,” said Robertson.

PlainsCapital’s other Frisco branch is located at 2500 Legacy Drive, Ste. 150.

Mobile Banking Usage on the Rise What started as cashless transactions with credit cards and debit cards entered a new era with the advent of online and mobile banking.

Technology has brought us to a place where financial transactions that once required driving to a bank, swiping a card, or exchanging actual money have been replaced by the convenience of a computer, tablet, or phone screen. Online and mobile banking represent the growing face of digital banking, however it’s the evolution and usage of the mobile channel that is accelerating the most.

Mobile devices have become an important part of people’s lives and the way they connect with the world and have helped to fuel the mobile banking market. PlainsCapital Bank’s mobile banking app supports this growing trend, providing innovative features and functionality that enable customers to easily manage their money anywhere, anytime.

Consumers were first introduced to the convenience of managing their own bank transactions through online (internet) banking.

The proliferation of mobile technology and smartphones took convenience to the next level, Continued on next page

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HilltopSecurities

PlainsCapital Bank/HilltopSecurities Mobile Banking, continued

allowing customers greater freedom to access their accounts irrespective of time or place and without the need to log into a personal computer or laptop.

“People don’t stay put and neither does their money,” said Sam Roark, PlainsCapital Bank vice president and delivery channels manager.

“Mobile banking is an ideal money management tool for people on the go.”

While banks like PlainsCapital are making their websites easier to use on smartphones and mobile devices, mobile banking is more commonly associated with customers accessing their accounts through their bank’s mobile app.

According to a recent Federal Reserve Board report , nearly half of adults with bank accounts and mobile phones use mobile banking. Not surprising, 82 percent of mobile banking users

have installed their bank’s mobile app on their devices. PlainsCapital experienced significant growth in mobile banking usage in the first half of 2017 alone, reporting a nearly 20 percent increase in transactions through the mobile banking app.

Additionally, the number of new mobile banking app users increased by more than 25 percent for the same period.

PlainsCapital’s mobile banking app provides customers with new ways of bringing their finances into focus. Features that were previously only available through online banking have been pushed to the mobile banking app, from accessing accounts and checking balances to monitoring transactions, transferring money, and more.

The robust functionality means added features like mobile deposit capture, bill pay, Apple Pay®, and People Pay (a peer-to-peer electronic money transfer system) provide even greater convenience to customers.

“Mobile devices present unique opportunities for increased depth and sophistication of transactions that are only possible through the mobile banking app,” said Roark. “Plus, the simple design and intuitive interface allow for a more user-friendly mobile banking experience.”

PlainsCapital debuted the first generation of its mobile banking app in 2010, followed by an upgraded version in 2016.

According to Roark, PlainsCapital’s goal is to continue expanding its array of digital banking services and extending the features within its online channel to mobile devices, which have become indespensible tools for customers.

PlainsCapital’s mobile banking app is available for iOS and Android operating systems. *Apple Pay is a registered trademark of Apple, Inc.

HilltopSecurities Wealth Management The Benefits of Holistic Planning

HilltopSecurities’ wealth management business has roots extending back to the firm’s founding in Dallas more than four decades ago. As one of HilltopSecurities’ six core business lines, wealth management serves individual investors with a focus on delivering the highest level of client service, all while adapting to an ever-changing industry and regulatory climate.

Today, HilltopSecurities’ wealth management division is comprised of two affiliation models with a combined headcount of approximately 340 financial advisors. HilltopSecurities PCG—led

by Pacific Coast regional director Alan Lennick and Gulf Coast regional director Steve Jones— maintains branches in Texas, Oklahoma, and California, while HilltopSecurities Independent Network has registered representatives in 26 states.

“HilltopSecurities’ footprint is becoming more recognizable across the nation,” said Dave Geschke, director of retail for HilltopSecurities and president/CEO of HilltopSecurities Independent Network. “Wealth management, in particular, works with a clientele who place a premium on trust. Because of that, we’ve gone to great lengths to position our brand and our reputation to point to one thing: integrity.”

In keeping with its tradition of adaptability, during the last two years, the wealth management division has begun strategically rolling out a holistic financial planning approach to the business mix of their advisors. The addition will help ensure the firm remains compliant with industry regulations, while meeting the comprehensive financial planning needs of its clients.

HilltopSecurities is supporting the holistic planning model by ensuring financial advisors have the support they need to grow their business. Wealth management has aligned its support areas— including the Insurance Group, the Advisory Services Group and the Business Development Group—and launched technologies like the financial-planning software MoneyGuidePro® and the contact management software Redtail in order to help advisors integrate the approach.

Founded as MidSouthwest Securities in 1972 (later changed to Southwest Securities), the firm’s wealth management business began two years later with the addition of Private Client Group (PCG) offices in Lufkin and Nacogdoches, Texas. In 1986, Southwest Securities added its independent advisor channel—known today as HilltopSecurities Independent Network.

From its single office in 1972, Southwest Securities grew into one of the largest New York Stock Exchange member firms headquartered in

the Southwest with offices across the country.

In 2015, Hilltop Holdings acquired the firm and combined it with FirstSouthwest the following year to create HilltopSecurities.

HilltopSecurites Director of Retail and President/CEO of HilltopSecurities Independent Network Dave Geschke and HilltopSecurities Managing Director and Head of HilltopSecurites Independent Network Will Nelson.

6

A key component of HilltopSecurities’ holistic approach is its Certainty Circle of Life (CCOL) philosophy. The philosophy empowers advisors to go beyond basic investment strategies to recommend services and products that can help clients plan for sustainable income during

mySavings

myLegacy

myBasics

Certainty Circle of Life

myProtection

myRetirement

HilltopSecurities Wealth Management Model

their pre-and post-retirement years, as well as address important risk management strategies like long-term care and appropriate life insurance vehicles, among others. Each stage of the circle is personalized and connected to the next, allowing clients to make smart, informed decisions throughout their life’s journey.

At the core of CCOL is the ability to strengthen the overall client relationship. And, by serving the holistic financial planning needs of clients, advisors stand to gain new assets to manage and become familiar with their clients’ heirs—an important point of emphasis in the industry when considering the estimated $30 trillion wealth transfer on the horizon as a new generation comes of age. 1 “We’ve found that many of our wealth management clients want more personalization when it comes to their relationship with the firm,” said Geschke. “The Certainty Circle of Life

7

delivers on that need, while also placing emphasis on helping our advisors grow their books and remain in line with industry regulations.”

While some firms are starting to move toward a similar advisory model, HilltopSecurities Managing Director and Head of HilltopSecurities Independent Network Will Nelson is adamant that HilltopSecurities is a cut above.

“With the Certainty Circle of Life, we’re not trying to fit advisors and their clients into a pre-formed structure,” Nelson said. “We work to support every advisor’s unique business model, but we’re also developing a leading-edge, relationshipbased model that benefits both advisors and clients.”

1. Anna Robaton, “Promises, Problems on Horizon as $30T Wealth Transfer looms.” CNBC.com. Accessed Nov. 7, 2017, https://www.cnbc.com/2017/02/16/promises-problems-onhorizon-as-30t-wealth-transfer-looms.html

HilltopSecurities

PlainsCapital Bank/HilltopSecurities Mobile Banking, continued

allowing customers greater freedom to access their accounts irrespective of time or place and without the need to log into a personal computer or laptop.

“People don’t stay put and neither does their money,” said Sam Roark, PlainsCapital Bank vice president and delivery channels manager.

“Mobile banking is an ideal money management tool for people on the go.”

While banks like PlainsCapital are making their websites easier to use on smartphones and mobile devices, mobile banking is more commonly associated with customers accessing their accounts through their bank’s mobile app.

According to a recent Federal Reserve Board report , nearly half of adults with bank accounts and mobile phones use mobile banking. Not surprising, 82 percent of mobile banking users

have installed their bank’s mobile app on their devices. PlainsCapital experienced significant growth in mobile banking usage in the first half of 2017 alone, reporting a nearly 20 percent increase in transactions through the mobile banking app.

Additionally, the number of new mobile banking app users increased by more than 25 percent for the same period.

PlainsCapital’s mobile banking app provides customers with new ways of bringing their finances into focus. Features that were previously only available through online banking have been pushed to the mobile banking app, from accessing accounts and checking balances to monitoring transactions, transferring money, and more.

The robust functionality means added features like mobile deposit capture, bill pay, Apple Pay®, and People Pay (a peer-to-peer electronic money transfer system) provide even greater convenience to customers.

“Mobile devices present unique opportunities for increased depth and sophistication of transactions that are only possible through the mobile banking app,” said Roark. “Plus, the simple design and intuitive interface allow for a more user-friendly mobile banking experience.”

PlainsCapital debuted the first generation of its mobile banking app in 2010, followed by an upgraded version in 2016.

According to Roark, PlainsCapital’s goal is to continue expanding its array of digital banking services and extending the features within its online channel to mobile devices, which have become indespensible tools for customers.

PlainsCapital’s mobile banking app is available for iOS and Android operating systems. *Apple Pay is a registered trademark of Apple, Inc.

HilltopSecurities Wealth Management The Benefits of Holistic Planning

HilltopSecurities’ wealth management business has roots extending back to the firm’s founding in Dallas more than four decades ago. As one of HilltopSecurities’ six core business lines, wealth management serves individual investors with a focus on delivering the highest level of client service, all while adapting to an ever-changing industry and regulatory climate.

Today, HilltopSecurities’ wealth management division is comprised of two affiliation models with a combined headcount of approximately 340 financial advisors. HilltopSecurities PCG—led

by Pacific Coast regional director Alan Lennick and Gulf Coast regional director Steve Jones— maintains branches in Texas, Oklahoma, and California, while HilltopSecurities Independent Network has registered representatives in 26 states.

“HilltopSecurities’ footprint is becoming more recognizable across the nation,” said Dave Geschke, director of retail for HilltopSecurities and president/CEO of HilltopSecurities Independent Network. “Wealth management, in particular, works with a clientele who place a premium on trust. Because of that, we’ve gone to great lengths to position our brand and our reputation to point to one thing: integrity.”

In keeping with its tradition of adaptability, during the last two years, the wealth management division has begun strategically rolling out a holistic financial planning approach to the business mix of their advisors. The addition will help ensure the firm remains compliant with industry regulations, while meeting the comprehensive financial planning needs of its clients.

HilltopSecurities is supporting the holistic planning model by ensuring financial advisors have the support they need to grow their business. Wealth management has aligned its support areas— including the Insurance Group, the Advisory Services Group and the Business Development Group—and launched technologies like the financial-planning software MoneyGuidePro® and the contact management software Redtail in order to help advisors integrate the approach.

Founded as MidSouthwest Securities in 1972 (later changed to Southwest Securities), the firm’s wealth management business began two years later with the addition of Private Client Group (PCG) offices in Lufkin and Nacogdoches, Texas. In 1986, Southwest Securities added its independent advisor channel—known today as HilltopSecurities Independent Network.

From its single office in 1972, Southwest Securities grew into one of the largest New York Stock Exchange member firms headquartered in

the Southwest with offices across the country.

In 2015, Hilltop Holdings acquired the firm and combined it with FirstSouthwest the following year to create HilltopSecurities.

HilltopSecurites Director of Retail and President/CEO of HilltopSecurities Independent Network Dave Geschke and HilltopSecurities Managing Director and Head of HilltopSecurites Independent Network Will Nelson.

6

A key component of HilltopSecurities’ holistic approach is its Certainty Circle of Life (CCOL) philosophy. The philosophy empowers advisors to go beyond basic investment strategies to recommend services and products that can help clients plan for sustainable income during

mySavings

myLegacy

myBasics

Certainty Circle of Life

myProtection

myRetirement

HilltopSecurities Wealth Management Model

their pre-and post-retirement years, as well as address important risk management strategies like long-term care and appropriate life insurance vehicles, among others. Each stage of the circle is personalized and connected to the next, allowing clients to make smart, informed decisions throughout their life’s journey.

At the core of CCOL is the ability to strengthen the overall client relationship. And, by serving the holistic financial planning needs of clients, advisors stand to gain new assets to manage and become familiar with their clients’ heirs—an important point of emphasis in the industry when considering the estimated $30 trillion wealth transfer on the horizon as a new generation comes of age. 1 “We’ve found that many of our wealth management clients want more personalization when it comes to their relationship with the firm,” said Geschke. “The Certainty Circle of Life

7

delivers on that need, while also placing emphasis on helping our advisors grow their books and remain in line with industry regulations.”

While some firms are starting to move toward a similar advisory model, HilltopSecurities Managing Director and Head of HilltopSecurities Independent Network Will Nelson is adamant that HilltopSecurities is a cut above.

“With the Certainty Circle of Life, we’re not trying to fit advisors and their clients into a pre-formed structure,” Nelson said. “We work to support every advisor’s unique business model, but we’re also developing a leading-edge, relationshipbased model that benefits both advisors and clients.”

1. Anna Robaton, “Promises, Problems on Horizon as $30T Wealth Transfer looms.” CNBC.com. Accessed Nov. 7, 2017, https://www.cnbc.com/2017/02/16/promises-problems-onhorizon-as-30t-wealth-transfer-looms.html

PlainsCapital Bank

National Lloyds

Growing Number of Real Estate Investors Spotlights Role of Asset Protection

ON THE COVER

New North Texas Branches Call Dallas Cowboys HQ Home region’s thriving economy, particularly Dallas’ northern communities, which are experiencing a whirlwind of growth and development with Frisco at the epicenter.

structure, like in the case of a fire or flood.

However, rental property coverage is broader than that, approaching asset protection from a more comprehensive financial perspective, such as offsetting costs from loss of rental income associated with a covered property damage claim or liability protection in the unforeseen event of someone being injured due to a property accident.

“We are very excited to expand our presence in the growing and dynamic Frisco market,” said Robertson. “North Texas is one of the fastestgrowing areas in the country, and The Star in Frisco is located right in the heart of it.”

PlainsCapital’s location at The Star offers a full suite of commercial banking services including lending, deposit accounts, cash management, and treasury management, as well as customized solutions to meet customers’ financial needs.

At the end of the day, rental insurance is about safeguarding your investment and preserving your existing wealth.

PlainsCapital Bank, The Star in Frisco

National Lloyds Director of Field Operations Joe Palczewski (left) with Gary Goodyear, president of Bluebonnett Insurance Group, LLC, and Krista Cross, Bluebonnett Insurance Group production manager

It’s a common dilemma. People want to invest but don’t know where, how, or what might yield the best financial results. Whether you are looking to diversify your investment portfolio beyond stocks and bonds, supplement your income stream, or achieve other financial goals, a growing number of people are taking the plunge into real estate investing—particularly residential rental properties.

The key to success in rental property investing lies in treating it like the business it is and taking the necessary steps to protect your assets.

Insurance is a vital part of successful property investing, enabling buyers to safeguard their assets while insulating themselves against losses that could wreak financial havoc—like fire, flood, liability, loss of rental income, capital expenditures and more. Dallas-based National Lloyds Insurance Company specializes in the niche business of providing customized insurance policies for real estate investors, particularly those specific to the landlord and rental property market.1 Real estate, while subject to economic cycles, has historically been a strong growth sector.

Following the financial crisis of 2008, the

real estate sector has since bounced back, recovering to post five-year returns as of 20142. According to a recent industry survey 3, investment home sales comprised 20 percent of all real estate transactions in 2016 with nearly half of investors—42 percent—primarily purchasing properties for rental income generation. And while a bad rental property is equally capable of losing money like a bad stock, some of the investment advantages that show up on paper include rental income, property appreciation, and tax benefits, not to mention that properties can be purchased with borrowed funds. That said, investors should be prepared for the full cost and responsibility that comes with owning and operating a rental property or landlord business.

“Losses happen, regardless of whether or not they are in a property owner’s control,” said National Lloyds Director of Field Operations Joe Palczewski. “Fortunately, a number of these losses can be covered with a customized landlord insurance policy from National Lloyds.”

According to Palczewski, people new to the rental property business often process insurance solely as it relates to the physical

8

National Lloyds has provided property and casualty insurance to customers since its founding in 1948. The company’s expertise in insuring smaller, lower-valued homes makes it a good fit for the landlord and rental property market where the median investment home sale price is $155,000.4 Twenty percent of National Lloyds’ book is comprised of landlord and rental policies.

Real estate investors look for carriers that understand their specific insurance situation.

National Lloyds has established itself as a recognized player in the market, providing a program for insurance agents5 designed to help build and support their growing landlord and rental property business.

Gary Goodyear can attest to the benefits of partnering with an insurance provider that specializes in the rental property arena. The owner of San Antonio-based Bluebonnett Insurance Group, Goodyear’s relationship with National Lloyds dates back more than 15 years. Because he works with a large number of professional investors with sizeable property portfolios, Goodyear cites National Lloyds’ easily customizable policies and convenient payment options as strong selling points.

“For the investor with dozens of rental properties, this is their business and they are focused on protecting their investments,” said Goodyear. “Because they also are having to write large checks to cover costs associated with managing a sizeable number of properties,

The regional economic boom continues to push the Dallas metroplex further north to accommodate the area’s growing population and business needs. To support the region’s thriving economy, on October 18, PlainsCapital Bank announced the opening of its two newest locations in North Texas—a retail branch and a lending office located at The Star in Frisco, the impressive new billion-dollar-plus, mixed-use development anchored by the Dallas Cowboys’ world headquarters.

The retail branch at The Star features a

4,000-square-foot, full-service lobby at 6635 Cowboys Way, Ste. 100, directly on the Ring of Honor Walk honoring former Dallas Cowboys players for their outstanding contributions to the team franchise. Across the street from the retail branch is the 5,000-square-foot commercial lending office located at One Cowboys Way, Ste. 250, in the heart of the Dallas Cowboys headquarters building.

PlainsCapital Bank Frisco President Jamie Robertson said the new location strengthens PlainsCapital’s commitment to support the

According to Robertson, the new location enables the Bank to more than double the size of its Frisco operations to better serve the community’s growing commercial base.

“We believe in building strong relationships with our customers, and we are making a substantial investment in the future of this area,” said Robertson.

PlainsCapital’s other Frisco branch is located at 2500 Legacy Drive, Ste. 150.

Mobile Banking Usage on the Rise What started as cashless transactions with credit cards and debit cards entered a new era with the advent of online and mobile banking.

Technology has brought us to a place where financial transactions that once required driving to a bank, swiping a card, or exchanging actual money have been replaced by the convenience of a computer, tablet, or phone screen. Online and mobile banking represent the growing face of digital banking, however it’s the evolution and usage of the mobile channel that is accelerating the most.

Mobile devices have become an important part of people’s lives and the way they connect with the world and have helped to fuel the mobile banking market. PlainsCapital Bank’s mobile banking app supports this growing trend, providing innovative features and functionality that enable customers to easily manage their money anywhere, anytime.

Consumers were first introduced to the convenience of managing their own bank transactions through online (internet) banking.

The proliferation of mobile technology and smartphones took convenience to the next level, Continued on next page

5

National Lloyds

PlainsCapital Bank

Prominent Houston Bankers Help Launch The Private Bank at PlainsCapital that up to 70 percent of high net worth families lose their wealth by the second generation.

To preserve their wealth, families need a wellconsidered wealth management and succession plan, even though it can be a difficult issue to address.

“This is where we believe PlainsCapital can play a key role,” said Schaller. “Wealth preservation is no longer just about investing assets, it should also include developing a succession plan and getting the next generation involved.”

The Private Bank at PlainsCapital creates solutions for clients utilizing a full team of specialists, including trust, investment, and banking professionals, as well as financial planners, attorneys and more. They offer specialized wealth management strategies to help multigenerational high net worth families preserve and grow their wealth by focusing on the following key areas: Houston private banking executives Jeff Horner, PlainsCapital Bank senior vice president and wealth strategist, and Steve Schaller, PlainsCapital Bank executive vice president and market manager.

PlainsCapital Bank has hired two Houston-area industry veterans to help lead the Bank’s private banking initiative in the greater Houston and Coastal Bend areas. Steve Schaller, CFA, serves as executive vice president and market manager, and Jeff Horner, CFP, serves as senior vice president and wealth strategist. They report to Thomas Neville, executive vice president and head of private banking and wealth management for PlainsCapital.

As tenured private bankers experienced in serving high net worth individual (HNWI) clients and family offices and overseeing billion-dollar portfolios, Schaller and Horner will focus on building PlainsCapital’s private banking presence in Houston and along the Gulf Coast region.

They will specialize in private wealth planning, trust, and investment management services for business owners, executives, entrepreneurs, and other HNWI clients and families.

“We are excited to welcome Steve and Jeff, who bring experience, expertise, and recognized reputations as accomplished professionals, particularly in the Houston market,” said Neville.

“Their background working with HNWI clients to help them meet their financial goals is a strong fit

with PlainsCapital—both in core competencies and core values—as we expand the scope of our private banking services.”

In their new roles, Schaller and Horner will help lead the Bank’s initiative to brand its private banking services as The Private Bank at PlainsCapital in its markets throughout Texas. The Private Bank at PlainsCapital allows the Bank to more effectively serve the evolving HNWI market, including the increasingly multigenerational nature of the sector.

“The Private Bank at PlainsCapital enables us to broaden and deepen our best-in-class services specifically as they pertain to family offices and succession planning—an important step in our wealth management growth strategy as we expand our capabilities to provide a dedicated offering to high net worth individuals throughout the state,” Neville said.

According to the U.S. Wealth Report for 2015, wealth among HNWIs in the U.S. grew to $15.2 trillion, with the largest increase in new HNWIs coming from Texas and the West Coast.

Houston was ranked 7th for total number of HNWIs. According to Schaller, studies show

4

• Planning and family dynamics • Asset management • Private banking • Trust, fiduciary and administrative services • Foundations and endowments PlainsCapital is an established, well-known, highly regulated financial entity that offers clients simplicity and security. Backed by Hilltop Holdings, a $13-billion Dallas-based holding company, the Bank has assisted Texas clients with their private banking and wealth management needs for three decades.

Well known in the Houston private banking community, Schaller brings 30 years of banking experience to his new role, including 16 years of portfolio management and investment experience in client management, asset allocation, investment program implementation and new business acquisition. He earned his Bachelor of Science and MBA degrees from Vanderbilt University.

Horner has more than 15 years of experience providing customized wealth planning services to HNWIs. He earned his Bachelor of Business Administration degree from Baylor University.

Schaller and Horner office at PlainsCapital’s Kirby Grove location in Houston.

cash flow is an important issue. The payment flexibility National Lloyds builds into its service is ideal for these types of investors.”

According to Goodyear, customers can choose to pay one comprehensive bill or utilize National Lloyds’ payment plan, whichever best accommodates their cash flow needs at the time—like being able to free up funds for periodic property renovations, for example.

National Lloyds recognizes that the situations and circumstances of property owners vary from one to another; however, they all share the common need to insure their investments— whether they have one rental property or hundreds. National Lloyds’ landlord and rental property policies can be easily tailored to meet the insurance coverage needs of the small-scale investor, as well as the professional landlord.

Long-time National Lloyds partner and agent Rich Keltner of Keltner Insurance Inc. in

Memphis, Tennessee, works with both types of investors. His customers particularly appreciate National Lloyds’ ability to handle multiple billing options.

“Investors frequently have property portfolios where some or all of their rental homes are mortgaged,” said Keltner. “National Lloyds can insure them all. They even take care of coordinating with the bank—or banks, as is often the case—for billing purposes and to ensure they have the necessary coverage documents. This is just one example of how National Lloyds helps to streamline the process for my customers and eliminate some of the financial legwork that comes with managing their investments.”

National Lloyds’ landlord and rental property program, in addition to offering competitive levels of liability coverage relative to the industry, provides convenient and flexible insurance solutions catering to the business

needs of property investors. It's also backed

by National Lloyds’ A.M. Best “A” Rating, demonstrating the company’s proven expertise in settling these types of claims and protecting policyholders’ financial interests.

“Ultimately people are buying insurance to protect their property investments and themselves from financial loss in the event of a claim, be it from fire, flood, lightning, windstorm, personal injury or other perils,” said Palczewski.

1. National Lloyds’ landlord and rental property policies cover primarily stick-built single-family homes and residences designed for one to four families (townhomes, duplexes, triplexes, and fourplexes) valued up to $250,000.

2. Investopedia, "Why does the real estate sector apeal to growth investors?" June 11, 2015.

3. 2017 National Association of Realtors Investment and Vacation Home Buyers Survey 4. 2017 National Association of Realtors Investment and Vacation Home Buyers Survey 5. National Lloyds currently underwrites policies in nine states: Texas, Arizona, Tennessee, Georgia, Missouri, Oklahoma, New Mexico, Nevada, and Louisiana.

A New Era in Manufactured Homes The resurgence in manufactured home sales has coincided with the increased demand for affordable housing options nationwide, and would-be buyers new to the market have discovered an industry that has evolved in both aesthetics and service.

A manufactured home’s price tag—a fraction of the cost of a new, single-family, site-built home— holds vast appeal for many prospective buyers.

And while price may be a motivating driver for customers to visit a retailer, the features and amenities of today’s manufactured homes are often the deciding factor in making a purchase.

Updates to the federal HUD code in recent years mean builders are producing energy efficient, durable homes that marry thoughtful, modern design with eco-friendly, sustainable materials.

Gone are the bland, cookie-cutter designs of the past. Today’s prospective buyers are met with a revitalized product that showcases high-end amenities on par with traditional site-built homes.

In addition to producing homes that are large on aesthetics, the industry has also evolved in its approach to home sales.

“We have become a kind of one stop shop for buyers,” said Clint Gordon, owner of Bentli Homes, located just east of Dallas. “Along with selling homes, we provide a number of

financing requirements as well as their claims needs down the road,” said Lynett Pirtle, operations manager for Nalico General Agency Inc. Dallas-based Nalico General Agency Inc., a subsidiary of National Lloyd Corporation, has been a major player in the POS manufactured dwelling insurance space for almost 35 years.

Licensed in more than 30 states, the company has a concentrated presence in Texas, Oklahoma and Tennessee, and continues to grow in other markets.

Photo courtesy of ManufacturedHomes.com

other services, from land packages to helping customers navigate the lending process, including providing on-site home insurance policies.”

According to Gordon, the vast majority of manufactured homes are purchased through financing, which is contingent on having the home insured. Point-of-sale (POS) insurance serves an important role in the home sale process.

“Dealers want and need a trusted insurance partner to aid customers with their upfront

9

“From the homebuyer’s perspective, the dealer— someone like Clint—is the front-end person in the insurance transaction,” said Pirtle. “While he may initiate the process, our job is to deliver on the relationship by ensuring the homebuyer’s experience going forward is positive and making any future claims or inquiries they may have as simple as possible. Simplicity is key.

If homebuyers are subjected to a frustrating experience on our end, it can reflect badly on the dealer.”

Nalico has earned the confidence of the nearly 150 manufactured home dealers with which it partners by consistently meeting the needs of their customers.

Hilltop Holdings

PrimeLending

PrimeLending Names Steve Thompson President Steve Thompson has been appointed president of PrimeLending. In his new role, Thompson, who previously served as executive vice president of national production, will continue to lead the company’s 1,300-plus loan originators nationwide, as well as take on responsibility for national operations, capital markets, affliated businesses, and marketing.

“Since joining PrimeLending, Steve has had a tremendous positive impact as a leader on the production team and our organization as a whole,” said Todd Salmans, chairman and CEO of PrimeLending. “He has set the bar extremely high, demonstrating an unwavering commitment to our principles, a keen understanding of the marketplace, and the drive and genuine dedication to bring out the very best in those around him.”

Thompson first joined PrimeLending in 2011 as western division manager, quickly earning a promotion to national sales manager in 2013 and becoming a highly valued member

of the executive leadership team. Under his leadership, PrimeLending has consistently grown national production numbers, ranking in the top 10 in purchase volume each year since 2012. In building the company’s successful production organization, Thompson is credited with attracting and retaining talented people and surrounding them with best-in-class productivity tools, training, and support. As a result, PrimeLending has maintained a 96 percent customer satisfaction rating and has been recognized as a top workplace in several categories by Fortune magazine.

Prior to joining PrimeLending, Thompson held numerous leadership and production positions within the mortgage and financial services industries, including key roles at several prominent national mortgage lenders. A native of California, Thompson received a B.S. in economics from the University of California, Los Angeles, and an M.B.A. from the Paul Merage School of Business at the University of California, Irvine.

In the days immediately following Hurricane Harvey’s landfall, Hilltop and its family of companies—PlainsCapital Bank, PrimeLending, HilltopSecurities, and National Lloyds—initiated a hurricane relief campaign and employee fundraising drive. Thanks to the amazing generosity of our employees, we raised more than $200,000 toward the relief and recovery efforts along the Texas Gulf Coast. The amount represents Hilltop's initial $50,000 corporate donation announced on Aug. 31, 2017, plus funds raised from the company-wide donation drive.

Steve Thompson President PrimeLending

Homeownership Benefits for Veterans More than 21 million veterans and service members live in the U.S., but only roughly six percent of them who bought homes in the past five years did so by taking advantage of the substantial benefits offered through a U.S. Department of Veterans Affairs (VA) home loan.

PrimeLending is looking to help change that by waiving the lender fees on all VA loans for customers.

Hurricane Relief Efforts

10

Referred to as our Hilltop Harvey Heroes, a collection of some of their stories are posted to the Hilltop Holdings website at hilltop-holdings.com/hurricane.

Retirement Marks Distinguished Career

A prominent figure in Texas banking for more than 35 years, Huffines held executive positions at Dallas BancShares Corp. and Republic National Bank of Dallas prior to joining PlainsCapital in 2001 as chairman of the Central and South Texas regions. Huffines was instrumental in creating the Bank’s growth and expansion across Texas in the early 2000s.

“Our military men and women sacrifice so much to serve our nation,” said Sabrina Schmitt, a

employees who stepped into the breach with the resources they had to help neighbors and strangers in need.”

In addition to the charitable donations, Hilltop employees from across the state responded to the call for help from overwhelmed local government officials and first responders. They came with boats, supplies, and large cookers in tow, assisting with water rescue efforts in Houston, feeding displaced storm victims along the coast, implementing emergency supply drives, volunteering at shelters, and participating in the massive clean-up efforts, among others.

Hilltop Holdings Chief Operating Officer for Subsidiaries James Richard Huffines will retire at the end of the year, effective Dec. 31, 2017.

Huffines assumed the role of overseeing Hilltop’s companywide business operations in September 2016, after serving as president and chief operating officer of PlainsCapital Corporation— the holding company of Hilltop subsidiaries PlainsCapital Bank and PrimeLending, a position he held from November 15, 2010 to 2016. He currently serves on the board of directors for Hilltop Holdings, as well as PlainsCapital Bank, PrimeLending, and HilltopSecurties.

Established in 1944 as part of the original Servicemen’s Readjustment Act (better known as the GI Bill of Rights), the VA home loan is a government-backed mortgage program designed to help retired and active-duty military men and women and eligible surviving spouses become homeowners. VA home loans are provided by private lenders, such as PrimeLending, with the VA guaranteeing a portion of the loan, enabling lenders to offer more favorable terms to homebuyers.

“The remarkable acts of heroism and generosity that we witnessed from ordinary people, including members of our own Hilltop family, in an unprecedented humanitarian relief effort was awe-inspiring,” said Hilltop Holdings Co-CEO and President Jeremy B. Ford and Co-CEO and Vice Chairman Alan B. White. “We are exceptionally proud of our

Huffines graduated from the University of Texas with a B.B.A. in finance and from the Southwestern Graduate School of Banking at Southern Methodist University. A recognized business, community, and civic leader, he has served on the boards of numerous organizations including: chairman of the University of Texas System board of regents; the University of Texas Investment Management Company (UTIMCO) board of directors, a $30 billion endowment for higher education in Texas; The Dallas Foundation board of governors; Dallas Citizens Council board of directors and executive committee member; chairman of the Governor’s University Research Initiative advisory board; and the Energy Future Holdings (formerly TXU) board of directors and audit committee chairman. Additionally, Huffines has served on the boards of the Texas Bankers Association, Texas Business Leadership Council, Texas State History Museum Foundation, University of Texas Southwestern Medical Foundation, and both the Dallas and Austin Symphony Orchestra boards, respectively.

3

James R. Huffines Hilltop Holdings Chief Operating Officer for Subsidiaries

PrimeLending United States Air Force veteran and production manager for PrimeLending in Redding, Calif.

“The VA home loan is a great way of helping our veterans establish credit and build a strong financial future with homeownership at the heart of that foundation.”

years. The company however, recognized that the statistically low utilization rate of VA loans relative to the number of homes being purchased meant there was an opportunity to do more to help military families take advantage of their VA benefits.

The VA home loan is the only loan program broadly available that enables the borrower to purchase a home with no down payment and no monthly mortgage insurance required. In addition, ‘make-sense’ underwriting standards and reasonable credit and income requirements, coupled with the current low interest rate environment, make VA loans an attractive program for veterans and active members of the military, many of whom might otherwise struggle to secure home financing.

“Many qualifying veterans and surviving spouses don’t take advantage of the VA home loan program for a number of reasons,” said Schmitt. “They may not be aware of all of the advantages, or they’re under the impression that it’s a complicated process mired in red tape.

There’s also the possibility that, as lenders, we could be doing more to help educate veterans on the program."

As one of the top 10 purchase mortgage lenders in the country, Dallas-based PrimeLending has processed thousands of VA loans over the

Reflecting on the Things That Matter The end of the year provides an opportunity to summarize our accomplishments. It also gives us the opportunity to emphasize the things we believe really matter, and what we think that means for our company now and in the years to come.

We continue to take the longer view over short-term tactics, and we have made tremendous progress in moving the company’s agenda forward in 2017. As indicated by our most recent earnings report, Hilltop Holdings increased its total assets to $13.5 billion and generated $119 million in net income for the first three quarters of the year—up nearly 10 percent compared to the same period last year—strengthening our balance sheet.

Our solid performance in the face of Hurricanes Harvey and Irma, which affected both Hilltop and our customers, further supports our diversified operating model. It also reflects something more—a difference in how people across our organization think, act, and work together. The results we’ve seen reflect the overall soundness of our strategic priorities and the consistent performance of the nearly 5,500 people who work here.

2017 sharpened our definition of what’s unique about Hilltop Holdings’ response to a changing world, balancing ambition with our enduring values and using that experience to create a competitive advantage. This past year also reinforced our conviction to direct all aspects of our business—our talent, capabilities, resources, and reputation—toward the ultimate goal of helping our customers and the communities we serve to succeed.

Contained on the following pages are a few examples that speak to our efforts in these matters, from HilltopSecurities’ holistic approach to helping customers manage their financial futures, to PlainsCapital’s growing digital banking platform, PrimeLending’s industry-leading customer service initiatives, and National Lloyds’ rising stature within the real estate investment community. But perhaps

Jeremy B. Ford Co-CEO and President

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the greatest testament to our evolution as a company was reflected in the manner by which we responded collectively and individually to aid colleagues, customers, and communities who fell victim to the catastrophic storms.

We have a great deal of which to be proud, and we carry our accomplishments and lessons from 2017 into the New Year along with the essential optimism that pushes us to continue to innovate and grow. We also carry the knowledge that the way forward can only be guided by our coherent understanding of how we are going to act. Thanks to the caliber and performance of our people and the earned trust and support of our customers and communities we serve, we remain confident in our path.

Happy holidays, and we will see you in 2018!

Alan B. White Co-CEO and Vice Chairman

This past January, PrimeLending launched the “Watching Your Six – No Lender Fees” VA home loan program to help increase awareness of VA home loan benefits for buyers. In taking the unique step of waiving the lender fees on

all VA loans, which adds yet another benefit to the program by making it even more accessible for borrowers, the company is calling attention to the fact that military members have access to one of the most financially advantageous and flexible home purchasing programs on the market. Additionally, borrowers benefit from working with PrimeLending’s experienced VA lending officers who know how to successfully navigate the VA loan process and provide a seamless, transparent experience for customers from start to finish.

“It was an honor to serve my country as a member of the U.S. Air Force,” said Schmitt. “At PrimeLending, we recognize that working with our military families is a privilege, and we want to make sure we are doing our part to support as many of our service men and women as possible on their journey to becoming new or even more successful homeowners.”

Committed to Customer Satisfaction J.D. Power recently released its 2017 U.S. Primary Mortgage Origination Satisfaction Survey identifying which mortgage lenders hold the highest marks in consumer satisfaction, and PrimeLending was ranked No. 2.

According to PrimeLending President Steve Thompson, the recognition confirms PrimeLending’s own 96 percent customer satisfaction survey results1 and the more than 6,000 five-star reviews the company has garnered on Zillow, the leading online real estate database company.

reported high levels of customer satisfaction in their loan representatives scored substantially higher than those with low levels of trust. Some of the driving factors that contributed to higher levels of trust included loan representative follow-through, continuity in working with a single loan representative, and representatives proactively providing status updates.

“Earning a J.D. Power distinction in customer satisfaction translates across all industries, and we are honored to receive this recognition,” said Thomson. "We are obsessed with exceeding customer expectations and believe wholeheartedly that continuing to deliver our unmatched level of outstanding service will propel us to the top spot on this list."

As one of the top 10 purchase mortgage lenders in the country, PrimeLending conducts its own on-going customer satisfaction survey as part of its comprehensive customer satisfaction program. PrimeLending engages every customer for valuable feedback, inviting them to complete an online satisfaction survey. The company, in turn, uses the information to improve the lending process and customer experience. Developed by an independent advisory firm, PrimeLending’s survey measures a wide range of factors, including product offering, communication, price, knowledge, timeliness, and service quality.

Among the findings from the J.D. Power survey was the correlation between customer satisfaction and the level of trust customers had in their loan representatives. Companies that

This past January, PrimeLending added another component to its customer satisfaction program, proactively inviting customers to post reviews of their lending experience on Zillow. Widely

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considered as the go-to source for real estate buyers, agents, and even industry analysts, the Zillow website generates approximately 160 million visitors a month on average. The real-time ratings and comments from customers provides an added resource of information that PrimeLending incorporates with its online survey findings. To date, PrimeLending has generated more than 6,000 Zillow reviews, surpassing a number of its top competitors, while maintaining a consistent five-star rating from customers.

Thompson attributes PrimeLending’s outstanding customer satisfaction results to the company’s unique culture built around one simple belief— investing in talented, dedicated people.

“Having passionate, motivated people who care about our customers is our greatest asset,” said Thompson. “It is the secret to PrimeLending’s success and the reason so many customers trust us to guide them through the mortgage process.”

1. Survey administered and managed by an independent third party following loan closing. The 96 percent satisfaction rating refers to the rating customers gave to PrimeLending loan officers.

A Hilltop Holdings Publication

MOMENTUM

Hillltop Holdings Coast to Coast

Hilltop Supports Emmitt Smith Gran Fondo In only its second year, the Emmitt Smith Gran Fondo has quickly become an annual favorite for North Texas biking enthusiasts. On Sept.

30, more than 1,400 cyclists converged in Frisco, Texas, just north of Dallas, to take part in the premier, multi-course cycling event hosted by the former Dallas Cowboy running back and avid biker in support of his namesake cause—Pat & Emmitt Smith Charities—in its mission to support underserved youth in North Texas.

The Dallas-based Hilltop Holdings family of companies was well-represented at the race, with PlainsCapital Bank, PrimeLending, and

HilltopSecurities providing more than 100 cyclists and volunteers for the event of which PlainsCapital was the presenting sponsor.

Spectators surrounded the start and finish line at Frisco Rough Riders stadium, cheering on participants. From professional cyclists to recreational riders, the event had something for everyone, including a competitive 100-mile timed race, as well as 100-kilometer, 45-mile, and 22-mile courses and a two-mile family fun ride. Capping off the festivities, Smith and his wife Pat made a check presentation to the Dallas ISD’s grant program for $18,000 to help fund college scholarships for area students.

4th Quarter 2017

PlainsCapital Bank Closing Coordinator Assistant Armando De La O and Emmitt Smith.

2017 National Recognitions HILLTOP HOLDINGS

FORBES BEST BANKS IN AMERICA

HILLTOP HOLDINGS

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PRIMELENDING

FORTUNE BEST WORKPLACES FOR WOMEN

FORBES BEST TEXAS BASED BANKS IN AMERICA

HILLTOPSECURITIES

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PRIMELENDING

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FORTUNE BEST WORKPLACES IN FINANCIAL AND INSURANCE

INVESTMENT NEWS LARGEST CUSTODIAN AND CLEARING FIRMS

NO.

2

PRIMELENDING

NO.

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J.D. POWER U.S. PRIMARY MORTGAGE ORIGINATION SATISFACTION

NO.

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PRIMELENDING

DALLAS MORNING NEWS BEST PLACES TO WORK © 2017 Hilltop Holdings Inc. Product of the Marketing & Communications Department

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NO.

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The Star Attraction PlainsCapital Shines at Dallas Cowboys’ Sprawling New Headquarters