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Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $42 million for Q4 2025, equating to $0.69 per diluted share, with a return on average assets of 1.1% and return on average equity of 7.6% [7] - For the full year 2025, consolidated income attributable to common stockholders was $165.6 million, representing a 46% increase compared to the prior year [15] - Total revenues for 2025 increased by 8% to approximately $1.3 billion, while expenses grew by only 2%, resulting in positive operating leverage of 6% [15] Business Line Data and Key Metrics Changes - PlainsCapital Bank experienced an expansion in net interest margin, increasing by 12 basis points year-over-year, and generated $43.5 million in pre-tax income [4][7] - PrimeLending reported a pre-tax loss of $5 million in Q4 2025, with origination volume of $2.4 billion, indicating a seasonal rebound despite ongoing industry challenges [9][10] - Hilltop Securities achieved a pre-tax margin of 18% on net revenues of $138 million, with public finance services seeing a 20% year-over-year increase in net revenues [10][11] Market Data and Key Metrics Changes - The average total deposits for Q4 2025 were approximately $10.7 billion, a decline of $233 million compared to Q4 2024, driven by the return of sweep deposits [19] - The interest-bearing deposit cost decreased to 269 basis points, down 44 basis points from the prior year [20] - Mortgage-related income and fees increased by $2.5 million compared to Q4 2024, driven by improvements in lock and originated volumes [20] Company Strategy and Development Direction - Hilltop aims to be a full solution provider to clients, focusing on executing strategic initiatives while maintaining solid capital levels with a Common Equity Tier 1 capital ratio of 19.7% [12] - The company is actively evaluating acquisition opportunities while also focusing on organic growth amidst a competitive market environment [47][48] - Management emphasized the importance of operational cost reductions and efficiency improvements to navigate the challenging mortgage industry landscape [10][25] Management Comments on Operating Environment and Future Outlook - Management noted a positive interest rate environment supporting expanded net interest margins, despite increasing competition [8] - The outlook for 2026 anticipates average bank loan growth of 4%-6%, excluding the impact of loans retained from PrimeLending [26] - There is uncertainty regarding interest rates and inflation, but management remains optimistic about the company's positioning for long-term success [28] Other Important Information - Hilltop returned $229 million to stockholders through share repurchases and dividends in 2025 [6] - The allowance for credit losses decreased by $3.6 million to $91.5 million, with net charge-offs of $11.5 million recorded in Q4 2025 [15][17] Q&A Session Summary Question: Expectations for broker-dealer fees and pre-tax margin for 2026 - Management expressed confidence in the stability of broker-dealer fees and indicated that a pre-tax margin of 13.5% is a reasonable baseline for 2026 [33][38] Question: Sensitivity of NII to potential Fed rate cuts - Management noted that every 25 basis points reduction in rates could impact NII by approximately $4.5 million, with broker fee income being more variable [39][41] Question: Discussion on capital priorities and M&A opportunities - Management highlighted the increase in dividends and standard share repurchase authorization, while also evaluating acquisition opportunities amidst a competitive landscape [46][48] Question: Loan growth pipeline and pricing competition - The loan pipeline entering 2026 is approximately $2.6 billion, with management noting increased competition in loan pricing due to the current rate environment [58] Question: Expectations for gain on sale margins in the mortgage sector - Management expects stable revenue from gain on sale margins and mortgage origination fees, with a projected range of 350-360 basis points [59][60]

Financial Data and Key Metrics Changes - Hilltop reported a net income of approximately $42 million for Q4 2025, equating to $0.69 per diluted share, with a return on average assets of 1.1% and return on average equity of 7.6% [7] - For the full year 2025, consolidated income attributable to common stockholders was $165.6 million, representing a 46% increase compared to the prior year [15] - Total revenues for 2025 increased by 8% to approximately $1.3 billion, while expenses grew by only 2%, resulting in positive operating leverage of 6% [15] Business Line Data and Key Metrics Changes - PlainsCapital Bank experienced an expansion in net interest margin, increasing by 12 basis points year-over-year, and generated $43.5 million in pre-tax income [4][7] - PrimeLending reported a pre-tax loss of $5 million in Q4 2025, with origination volume of $2.4 billion, indicating a seasonal rebound despite ongoing profitability challenges [9] - Hilltop Securities achieved a pre-tax margin of 18% on net revenues of $138 million, with Public Finance Services seeing a 20% year-over-year increase in net revenues [10][11] Market Data and Key Metrics Changes - The average total deposits for Q4 2025 were approximately $10.7 billion, a decline of $233 million compared to Q4 2024, driven by the return of sweep deposits [19] - Mortgage-related income and fees increased by $2.5 million year-over-year, with purchase mortgage volumes stable at $1.9 billion and refinance volumes up by 49% [20][22] - The allowance for credit losses decreased by $3.6 million to $91.5 million, yielding an allowance to total loans ratio of 1.1% [15][27] Company Strategy and Development Direction - Hilltop aims to be a full solution provider to clients, focusing on strategic initiatives to enhance service offerings [12] - The company is actively evaluating acquisition opportunities while also prioritizing organic growth amidst a competitive market [46] - Management expressed optimism about the performance of key business lines, particularly Public Finance and Wealth Management, while acknowledging challenges in Fixed Income Services [34][35] Management's Comments on Operating Environment and Future Outlook - Management noted a positive interest rate environment supporting expanded net interest margins, despite increasing competition [8] - The outlook for 2026 anticipates average bank loan growth of 4%-6%, with expectations of continued challenges in the mortgage market [26] - Management highlighted the uncertainty in the market regarding interest rates and inflation but remains confident in the company's positioning for long-term success [28] Other Important Information - Hilltop returned $229 million to stockholders through share repurchases and dividends in 2025 [6] - The company maintains a Common Equity Tier One capital ratio of 19.7% and a Tangible Book Value per share of $31.83, reflecting solid capital levels [12] Q&A Session Summary Question: Insights on broker-dealer fees and expectations for 2026 - Management expressed confidence in the stability of broker-dealer fees and indicated that the pre-tax margin of 13.5% is a reasonable baseline for 2026 [33][38] Question: Discussion on capital priorities and M&A opportunities - Management confirmed an 11% increase in dividends and a share repurchase authorization of $125 million, while continuing to evaluate acquisition opportunities [46] Question: Expectations for loan growth and pricing competition - The loan pipeline entering 2026 is robust at $2.6 billion, with management optimistic about organic growth despite pricing competition [57] Question: Gain on sale margins outlook - Management expects total revenue from gain on sale margins and mortgage origination fees to remain stable, with a projected range of 350-360 basis points [59]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $42 million or $0.69 per diluted share for Q4 2025, with a return on average assets of 1.1% and return on average equity of 7.6% [6] - For the full year 2025, consolidated income attributable to common stockholders was $165.6 million, equating to $2.64 per diluted share, representing a growth of 46% [13] - Net interest income grew by 7% year-over-year, while non-interest income increased by 11%, contributing to a 26% improvement in diluted EPS [12] Business Line Data and Key Metrics Changes - PlainsCapital Bank saw an expansion in net interest margin, with a pre-tax income of $43.5 million and a return on average assets of 1.05% [6] - PrimeLending reported a pre-tax loss of $5 million in Q4 2025, despite a seasonally healthy origination volume of $2.4 billion [8] - Hilltop Securities generated pre-tax income of $26 million on net revenues of $138 million, achieving a pre-tax margin of 18% [10] Market Data and Key Metrics Changes - The average total deposits for Q4 2025 were approximately $10.7 billion, declining by $233 million compared to Q4 2024 [18] - Mortgage-related income and fees increased by $2.5 million year-over-year, driven by improvements in lock and originated volumes [20] - Public Finance, Wealth Management, and Structured Finance business lines within Hilltop Securities all generated higher fee income compared to the prior year [21] Company Strategy and Development Direction - Hilltop aims to be a full solution provider to clients, focusing on executing strategic initiatives [11] - The company is actively evaluating acquisition opportunities while also focusing on organic growth [44] - Management expressed optimism about the performance of Public Finance and Wealth Management, expecting continued improvement in these areas [32] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the market regarding interest rates, inflation, and overall economic health, but remains optimistic about the company's positioning for long-term success [14][27] - The company expects full-year average bank loan growth of 4%-6% for 2026, excluding the impact of loans retained from PrimeLending [25] - Management anticipates that interest-bearing deposit costs will decrease somewhat over the coming quarters [19] Other Important Information - Hilltop returned $229 million to stockholders through share repurchases and common dividends in 2025 [5] - The allowance for credit losses decreased by $3.6 million to $91.5 million during the quarter [14] Q&A Session Summary Question: Expectations for broker-dealer fees and pre-tax margin for 2026 - Management expressed confidence in the stability of broker-dealer fees and indicated that a pre-tax margin of 13.5% is a reasonable baseline for 2026 [31][36] Question: Sensitivity of NII and broker-dealer fees to Fed cuts - Management noted that every 25 basis points reduction in rates could impact NII by about $4.5 million annually, with broker fee income being more variable [38] Question: Capital priorities and M&A opportunities - Management highlighted the increase in dividends and the standard share repurchase authorization, while also evaluating acquisition opportunities in a competitive market [44][45] Question: Loan growth and pricing competition - The loan pipeline entering 2026 is approximately $2.6 billion, with management feeling optimistic about organic loan growth despite pricing competition [55] Question: Gain on sale margins expectations - Management expects total revenue from gain on sale margins and mortgage origination fees to remain stable, with a projected range of 350-360 basis points [57]

Core Insights - Hilltop Holdings Inc. (HTH) reported fourth-quarter 2025 earnings of 69 cents per share, exceeding the Zacks Consensus Estimate of 46 cents, marking a 25.5% increase from the prior-year quarter [1][9] - The company's net income attributable to common stockholders was $41.6 million, up 17.1% year over year, with earnings per share for 2025 at $2.64, surpassing the consensus estimate of $1.93 by a significant margin [2] Financial Performance - Net revenues for the fourth quarter reached $329.9 million, a 9.6% increase year over year, beating the Zacks Consensus Estimate of $302.8 million [3] - For the full year 2025, net revenues increased by 7.8% to $1.28 billion, also surpassing the Zacks Consensus Estimate of $1.24 billion [3] Income and Expenses - Net interest income (NII) rose 6.7% year over year to $112.5 million, with a net interest margin (NIM) of 3.04%, expanding by 30 basis points [4] - Non-interest income was $217.4 million, up 11.1%, driven by increases across all components except for mortgage loan origination fees [4] - Non-interest expenses increased by 2.3% to $268.9 million, primarily due to higher employee compensation and benefits costs [5] Credit Quality - The provision for credit losses was $7.8 million, contrasting with a reversal of credit losses of $5.9 million in the prior-year quarter, attributed to specific reserves and higher net charge-offs [6] - Non-performing assets as a percentage of total assets decreased to 0.39%, down 17 basis points from the year-ago quarter [7] Profitability and Capital Ratios - Return on average assets improved to 1.09%, up from 0.92% in the prior-year quarter, while return on average stockholders' equity increased to 7.60% from 6.50% [8] - The common equity tier 1 capital ratio was 19.70%, down from 21.23% year-over-year, and the total capital ratio decreased to 22.20% from 24.40% [10] Capital Distribution - The company repurchased 1.8 million shares for $60.8 million at an average price of $33.77 per share and authorized a new stock repurchase program of up to $125 million through January 2027 [11] - A quarterly cash dividend of 20 cents per share was announced, representing an 11% increase from the previous payout [12] Strategic Outlook - The company's restructuring efforts and improving fee income, along with decent loan demand, are expected to support revenue growth, although concerns remain regarding the mortgage origination segment and asset quality [13]

Core Insights - PropQwiz is a mobile trivia game that allows players to guess real home listing prices for a chance to win significant cash prizes, including a recent $350,000 Grand Prize awarded to a player [2][3][4] - The game is designed to engage users who are already interested in real estate, providing them with an opportunity to turn their casual interest into potential homeownership [5][6] Company Overview - PropQwiz is presented by PrimeLending, a PlainsCapital Company, which is a national home lender focused on simplifying the mortgage process and enhancing customer satisfaction [7][9] - PrimeLending has a 96% customer satisfaction rating, indicating strong performance in customer service and loan processing [8] Game Mechanics - The game features a daily live event where players receive five clues about a real home and have 15 seconds to guess its price, earning entries (PropTIX) based on the accuracy of their guesses [3][5] - PropQwiz also offers weekly rent prizes, having distributed over $75,000 in total since its launch [5] Community Engagement - Since its launch, PropQwiz has cultivated a growing community of players who participate daily, learning about home values and competing for prizes [5][6]

Financial Performance - Hilltop Holdings reported revenue of $329.89 million for the quarter ended December 2025, representing a 9.6% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $0.69, up from $0.55 in the same quarter last year, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $302.84 million by 8.93%, while the EPS surpassed the consensus estimate of $0.46 by 50% [1] Key Metrics - Average outstanding balance of interest-earning assets was $14.8 billion, higher than the estimated $14.44 billion [4] - Non-accrual loans stood at $53.45 million, below the average estimate of $65.72 million [4] - Net interest margin was reported at 3%, matching the average estimate [4] - Non-performing assets totaled $61.47 million, lower than the estimated $74.63 million [4] - Efficiency ratio was 54.1%, significantly better than the average estimate of 84.7% [4] - Total noninterest income reached $217.36 million, exceeding the average estimate of $195.22 million [4] - Net interest income was reported at $112.53 million, above the estimated $107.64 million [4] - Net gains from the sale of loans and other mortgage production income were $49.58 million, slightly above the average estimate of $49.4 million [4] - Noninterest income from other sources was $17.52 million, below the average estimate of $36.88 million [4] - Investment and securities advisory fees and commissions totaled $47.63 million, lower than the estimated $50.61 million [4] - Mortgage loan origination fees were reported at $26.6 million, exceeding the average estimate of $25.25 million [4] Stock Performance - Shares of Hilltop Holdings have returned +7.3% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

分组1 - Hilltop Holdings reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.55 per share a year ago, resulting in an earnings surprise of +50.00% [1] - The company achieved revenues of $329.89 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 8.93%, and up from $301.07 million year-over-year [2] - Hilltop Holdings has outperformed the S&P 500 with a share price increase of about 7.3% since the beginning of the year, compared to the S&P 500's gain of 1.9% [3] 分组2 - The earnings outlook for Hilltop Holdings is positive, with current consensus EPS estimates of $0.51 for the coming quarter and $2.16 for the current fiscal year, alongside expected revenues of $309.93 million and $1.27 billion respectively [7] - The Zacks Industry Rank for Banks - Southeast, to which Hilltop Holdings belongs, is currently in the top 18% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Core Insights - Hilltop Holdings Inc. reported a strong financial performance for the fourth quarter and full year 2025, with income attributable to common stockholders reaching $41.6 million, or $0.69 per diluted share, compared to $35.5 million, or $0.55 per diluted share, in the same quarter of 2024 [1] - For the full year 2025, income attributable to common stockholders was $165.6 million, or $2.64 per diluted share, up from $113.2 million, or $1.74 per diluted share, in 2024 [1] - The company declared a quarterly cash dividend of $0.20 per common share, marking an 11% increase from the previous quarter [1] Financial Performance - The provision for credit losses in Q4 2025 was $7.8 million, compared to a reversal of credit losses of $2.5 million in Q3 2025 and a reversal of $5.9 million in Q4 2024 [1] - Net gains from the sale of loans and other mortgage production income increased to $76.2 million in Q4 2025, a 3.4% rise from $73.7 million in Q4 2024 [1] - Mortgage loan origination production volume was $2.4 billion in Q4 2025, compared to $2.3 billion in Q4 2024 [1] Capital Management - Hilltop's Board of Directors authorized a new stock repurchase program allowing for the repurchase of up to $125 million of outstanding common stock through January 2027 [1] - In Q4 2025, the company repurchased 1,799,995 shares for $60.8 million at an average price of $33.77 per share [1] - Total stockholder equity at the end of 2025 was $2.2 billion, with a book value per common share of $36.42 [2] Segment Performance - PlainsCapital Bank showed healthy core loan and deposit growth, achieving a return on average assets of 1.17% [1] - PrimeLending reduced pre-tax losses by 48% despite a challenging home-buying market, indicating operational efficiency improvements [1] - HilltopSecurities generated $501 million in net revenue with a pre-tax margin of 13.5%, benefiting from strong performance in Structured Finance, Wealth Management, and Public Finance [1] Tax and Regulatory Insights - The effective tax rate for Q4 2025 was 19.2%, lower than the 14.2% in Q4 2024, primarily due to investments in tax-exempt instruments and state refund claims [1] - Total deposits at December 31, 2025, included approximately $5.9 billion in estimated uninsured deposits, representing about 54% of total deposits [1]