You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: These statements are based on management's current expectations concerning future events that by their nature are subject to risk and uncertainties.
Except to the extent required by law, we expressly disclaim any obligation to update earlier statements as a result of new information.
For the third quarter, Hilltop reported net income of $93 million or $1.15 per diluted share.
Return on average assets for the period was 2.1% and return on average equity was 15%.
These favorable operating results again demonstrate the strength of Hilltop's diversified model and our businesses and our people execute on their strategies and capabilities.
PlainsCapital Bank had another strong quarter with pre-tax income of $63 million and a return on average assets of 1.4%.
Income during the period included $4.6 million of PPP loan-related origination fees and a $5.8 million reversal of provision.
We have seen continued improvement in our asset quality, which is a reflection of both the bank's sound lending practices and the healthier economic outlook.
Total average bank loans declined $252 million or 4% versus Q2 2021 as PPP balances ran off.
Excluding PPP loans, average bank loans were stable in the quarter.
Although the lending environment is extremely competitive and many of our clients remain flush with liquidity, we have seen growth in our loan pipeline, which is at its highest level since the pandemic.
The current pipeline is heavily commercial real estate, specifically in residential lot development, industrial and multifamily across the major Texas markets.
Payoffs will remain a challenge though, as our quality real estate clients continue to find attractive opportunities for their projects in the permanent financing markets.
Total average deposits remain stable linked-quarter with average deposits excluding broker deposits increasing by $200 million or 2% from Q2 2021 and $1.9 billion or 16% from prior year.
We continue to see growth in both interest bearing and non-interest-bearing accounts since Q3 2020 we have run off almost $1 billion in broker deposits.
This was another strong quarter for PrimeLending generating $62 million in pre-tax income.
Although a decline from the astonishing levels in 2020 volumes and pricing held on longer than anticipated and as a result we were able to deliver favorable returns during the period.
PrimeLending originated $5.6 billion in volume in the quarter from its continued strength in home purchase volume.
Refinancing volume as a percent of total volume decreased to 29% from 35% during the same period in 2020.
If current mortgage rates remain relatively unchanged through the end of the year, we believe this downward trend of refinancing volumes will continue.
Gain on sale margin of loans sold to third parties declined by 17 basis points linked-quarter to the 359 basis points.
Margins remain pressured as we see competition reacting to the decline in refinancing volume.
And as our product mix has shifted where the relatively higher margin government product is lagging.
Our team at PrimeLending remains acutely focused on monitoring pricing and margins.
PrimeLending continues to recruit productive loan officers and has hired 127 year to date bringing total loan officer headcount to 1,314.
This is a primary focus as we target purchase oriented loan officers to help offset the lower margins we expect in the coming quarters.
We believe our exceptional team purchase orientation, technology investments and focus on customer experience will continue to drive attractive returns from the mortgage business.
During the quarter, HilltopSecurities generated $17.4 million of pre-tax income on net revenues of $127 million or a pre-tax margin of 13.8%.
This was a good quarter for the public finance business in particular with revenues up $12 million from prior year, predominantly from a few larger deals.
We are encouraged by the potential for growth in the municipal finance market with the healthy current pipeline and the anticipation of increased future infrastructure spending.
Revenues within the structured finance business decreased by $26 million from last year as the overall mortgage market has declined from the astonishing levels in 2020.
From a historical average perspective, volumes are still strong and revenues rebounded by $24 million linked quarter.
We continue to build on the structured finance business by solidifying existing relationships and adding new clients.
Within our fixed income business, customer demand weakened given expectations of higher interest rates on the horizon, a trend that has been seen across the industry.
While all product areas were challenged in the quarter HilltopSecurities has made several key additions in the business, including leadership for our middle market sales effort, which has been a strategic priority for several years.
Therefore, we remain focused on growing our market share and profitability in fixed income.
Overall, HilltopSecurities is well-positioned as we have added key infrastructure producers and leadership to broaden our core capabilities and customer penetration as a leading municipal investment bank.
Moving to page 4, as a result of strong and diversified earnings, we continue to grow our tangible book value while returning capital to shareholders.
Our capital levels remain very strong with the common equity Tier 1 capital ratio of 21.3% at quarter end, and we have grown our tangible book value per share by 18% over the last quarter to $27.77.
During the quarter, Hilltop returned $84 million to shareholders through dividends and share repurchases.
The $74 million in shares repurchased are part of the $150 million share authorization the board granted earlier this year.
This week, the Hilltop Board of Directors authorized an additional increase to the stock repurchase program of $50 million, bringing the total authorization to $200 million.
As a result of dividends and share repurchase efforts, Hilltop has returned $153 million in capital to shareholders year-to-date.
Additionally, we paid down $67 million in trust preferred securities during the quarter, which will reduce our annual interest expense by over $2 million going forward.
In conclusion, we are very pleased with the results for the quarter.
All businesses showed solid momentum going into the fourth quarter and are performing well against our strategic objectives.
We feel well-positioned with a team and capital in place to continue growing long-term shareholder value.
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As Jeremy discussed, for the third quarter of 2021, Hilltop recorded consolidated income attributable to common stockholders of $93 million, equating to $1.15 per diluted share.
Included in the third quarter results was a net reversal of provision for credit losses of $5.8 million.
During the third quarter, Hilltop recorded a modest net recovery of charge-offs.
On page 6, we have detailed the significant drivers to the change in allowance for credit losses for the period.
The most significant drivers in the quarter were the positive migration of certain credits in the portfolio and the further improvement in the expected macroeconomic outlook.
These were somewhat offset by the increase in specific reserves taken against a small number of credits that experienced deterioration during the quarter.
First, related to the macroeconomic outlook, we leveraged the Moody's S7 scenario for our third quarter analysis, consistent with our second quarter outlook selection.
This scenario considered lower overall GDP rates, higher inflation and higher ongoing unemployment than other market consensus outlooks.
As said, the S7 scenario did improve from the prior period, and the impact of the improvement resulted in the release of $6 million of credit reserves during the third quarter.
Second key driver was the ongoing improvement in credit quality across the portfolio.
During the quarter, the portfolio experienced positive migration across a number of industries and geographies resulting from improving financial performance and more resilient outlook for future periods.
Further, the portfolio of loans that are currently under active deferral plan build a $17 million from $76 million at the end of the second quarter of '21.
The result of the improvements at the client level equated to a net release of credit reserves of $5 million during the third quarter.
The net impact of these changes resulted in an allowance for credit losses for the period ending September 30 of $109.5 million or 1.45% of total loans.
Further, the coverage ratio of ACL to total loans increases from 1.74% from loans that we believe have lower loss potential, including PPP broker-dealer and mortgage warehouse loans are excluded.
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Net interest income in the third quarter equated to $105 million, including $8.3 million of PPP-related interest and fee income, as well as purchase accounting accretion.
Net interest margin declined versus the second quarter of 2021 driven by lower PPP fee recognition, higher average cash balances, and continued pressure on loan HFI yields.
Somewhat offsetting these items were higher loans held for sale yield, resulting from higher overall mortgage rates, coupled with lower interest-bearing deposit cost, which have continued to trend lower finishing the quarter down 4 basis points versus the second quarter of '21 at 28 basis points.
We continue to expect that interest-bearing deposit costs will move modestly lower over the coming quarters as the consumer CD portfolio continues to mature and reset to lower yields.
As it relates to asset yields, the current competitive environment for commercial loans is resulting in substantial pressure on loan yields for new originations, which were 3.8% during the third quarter and is also challenging our ability to maintain current loan flow rates.
Given overall market and competitive conditions, we expect that NIM will remain pressured into the fourth quarter of '21 moving lower to between 240 basis points and 250 basis points by year end.
Turning to page 8, total non-interest income for the third quarter of '21 equated to $368 million.
Third quarter mortgage-related income and fees decreased by $114 million versus the third quarter of 2020 driven by lower origination volumes, declining gain on sale margins, and lower locked volumes.
As it relates to gain on sale margins, we noted in our key driver table in the lower right of the page the gain on sale margins on loans fell 18 basis points versus the prior quarter.
Further, we are providing the impact of gain on sale margin related to those loans that have been retained on the balance sheet, which for the third quarter equated to 13 basis points.
During the third quarter of 2021, the environment in mortgage banking remained resilient and is expected to continue to shift to a more purchase mortgage-centric marketplace with approximately 71% of our origination volumes serving as purchase mortgages.
During the third quarter, purchase mortgage volumes declined modestly to 3.95 billion, while refinance volumes declined 12% or $235 million versus the second quarter origination levels.
We expect this trend to continue for the more purchase-centric mortgage market over the coming quarters, and we continue to expect the gain on sale margins for the third-party sales will fall within a full year average range of 360 basis points to 385 basis points.
In addition, other income declined by $36 million, driven primarily by declines in TBA locked volumes, coupled with lower volumes and market depth in the fixed-income capital markets.
As we've noted in the past, the structured finance and fixed income capital markets businesses can be volatile from period-to-period, as they are impacted by interest rates, market volatility, origination volume trends and overall market liquidity.
Lastly, our public finance and retail brokerage businesses at the broker-dealer drove solid revenue growth as highlighted in the securities-related fee growth of $15 million versus the prior-year period.
This growth highlights the impact of our ongoing investments in enhanced products and service capabilities across HilltopSecurities, which has provided our bankers with additional tools and capabilities to support their clients.
Turning to page 9, non-interest expenses decreased from the same period in the prior year by $44 million to $355 million.
The decline in expenses versus the prior year was driven by decline in variable compensation of approximately $35 million at HilltopSecurities and PrimeLending.
This decline in variable compensation was linked to lower revenues in the quarter compared to the prior year period.
The bank continues to deliver improved efficiency, as highlighted in the sub-50% efficiency ratio.
This has been driven by lower overall headcount as well as benefits from strong mortgage production and the acceleration of PPP fees into current period income.
As we've noted in the past, we expect that over the longer term, the efficiency ratio at the bank will fall within a range of 50% to 55%.
Moving to page 10, in the period, HFI loans equated to $7.6 billion, relatively stable with the second quarter levels.
As we've noted previously, we've seen substantial increases in competition for funded loans across the Texas markets, which we expect will continue into 2022.
Further, the ongoing growth in available liquidity both on bank balance sheets and consumer balance sheets could further delay a return to more normal commercial loan growth rates for at least a few quarters.
We continue to expect that full year 2021 average total loan growth excluding PPP loans will be within a range of zero to 3%.
During the third quarter of '21, PrimeLending locked approximately $243 million of loans to be retained by PlainsCapital over the coming months.
These loans had an average yield of 2.95% and average FICO and LTV of 776% and 64%, respectively.
Moving to page 11, third quarter credit trends continue to reflect the slow but steady recovery in the Texas economy, which is supporting improved customer cash flows and fewer borrowers on active deferral programs.
As of September 30, we have approximately $17 million of loans on active deferral programs down from $76 million at June 30.
Further, the allowance for credit losses to period end loan ratio for the active deferral loans equates to 22.8% at September 30.
As is show on the graph at the bottom right of the page, the allowance for credit loss coverage including both mortgage warehouse lending as well as PPP loans at the bank ended the third quarter at 1.58%.
We continue to believe that both mortgage warehouse lending as well as our PPP loans will maintain lower loss content over time.
Excluding mortgage warehouse and PPP loans, the bank's ACL to end-of-period loans HFI ratio equated to 1.74%.
Tuning to page 12, third quarter end-of-period total deposits were approximately $12.1 billion, increasing by $398 million versus the second quarter of 2021.
Given our strong liquidity position and balance sheet profile, we are expecting to continue to allow broker deposits to mature and run-off.
At 09/30, Hilltop maintained $243 million of broker deposits that have a blended yield of 33 basis points.
While deposit levels remain elevated, it should be noted that we remain focused on growing our client base and deepening wallet share through the sales of our commercial treasury products and services and focused client acquisition efforts.
Turning to page 13, in 2021, we continue to remain nimble as the pandemic evolves to ensure the safety of our teammates and our clients.
Further, our financial priorities for 2021 remains centered on delivering great customer service to our clients, attracting new customers to our franchise, supporting the communities where we serve, maintaining a moderate risk profile, and delivering long-term shareholder value.
Given the current uncertainties in the marketplace, we're not providing specific financial guidance, but we are continuing to provide commentary.
This is the most current outlook for the remainder of 2021 with the understanding that the business environment, including the impacts of the pandemic could remain volatile.
That said, we will continue to provide updates during our future quarterly calls.

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q3 earnings per share $1.15 from continuing operations.

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