Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2022

Regulatory Matters

Schedule of comparison of the Plain Capital's and Hilltop's consolidated actual capital amounts and ratios to the regulatory minimum requirements and the Bank's regulatory minimum capital requirements and the Bank's regulatory minimum capital requirements needed to qualify as a well-capitalized institution without giving effect to the final Basel III capital rules adopted by the Federal Reserve Board

The following table shows PlainsCapital’s and Hilltop’s actual capital amounts and ratios in accordance with Basel III compared to the regulatory minimum capital requirements including conservation buffer ratio in effect at the end of the period (dollars in thousands). Based on actual capital amounts and ratios shown in the following table, PlainsCapital’s ratios place it in the “well capitalized” (as defined) capital category under regulatory requirements. Actual capital amounts and ratios as of September 30, 2022 reflect PlainsCapital’s and Hilltop’s decision to elect the transition option as issued by the federal banking regulatory agencies in March 2020 that permits banking institutions to mitigate the estimated cumulative regulatory capital effects from CECL over a five-year transitionary period.

									Minimum
									Capital
									Requirements
									Including
									Conservation		To Be Well
	September 30, 2022				December 31, 2021				Buffer		Capitalized
	Amount		Ratio		Amount		Ratio		Ratio		Ratio
Tier 1 capital (to average assets):
PlainsCapital	$	1,404,288	10.29	%	$	1,469,695	10.20	%	4.0	%	5.0	%
Hilltop		1,881,289	11.41	%		2,262,356	12.58	%	4.0	%	N/A
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		1,404,288	14.68	%		1,469,695	16.00	%	7.0	%	6.5	%
Hilltop		1,881,289	17.45	%		2,262,356	21.22	%	7.0	%	N/A
Tier 1 capital (to risk-weighted assets):
PlainsCapital		1,404,288	14.68	%		1,469,695	16.00	%	8.5	%	8.0	%
Hilltop		1,881,289	17.45	%		2,262,356	21.22	%	8.5	%	N/A
Total capital (to risk-weighted assets):
PlainsCapital		1,486,989	15.54	%		1,540,100	16.77	%	10.5	%	10.0	%
Hilltop		2,163,815	20.07	%		2,532,008	23.75	%	10.5	%	N/A

Schedule of net capital position

At September 30, 2022, the net capital position of each of the Hilltop Broker-Dealers was as follows (in thousands).

				Momentum
	Hilltop			Independent
	Securities			Network
Net capital	$	198,954		$	3,842
Less: required net capital		9,313			250
Excess net capital	$	189,641		$	3,592
Net capital as a percentage of aggregate debit items		42.7	%
Net capital in excess of 5% aggregate debit items	$	175,672