[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section provides the company's financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for H1 2025 show increased net income driven by credit loss reversal and higher net interest income, despite a decrease in total assets [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$15.36 billion** by June 30, 2025, primarily due to reduced cash, while stockholders' equity remained stable Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Total Assets** | **$15,362,273** | **$16,268,129** | | Cash and due from banks | $982,488 | $2,298,977 | | Securities | $2,860,741 | $2,659,661 | | Loans held for investment, net | $7,963,243 | $7,849,435 | | **Total Liabilities** | **$13,135,428** | **$14,049,817** | | Total deposits | $10,391,557 | $11,065,322 | | Notes payable | $148,475 | $347,667 | | **Total Stockholders' Equity** | **$2,226,845** | **$2,218,312** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Net income significantly increased in Q2 and H1 2025, driven by a credit loss reversal and higher net interest income Quarterly Performance Summary (in thousands, except per share data) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | | :--- | :--- | :--- | | Net Interest Income | $110,674 | $103,650 | | Provision for (reversal of) credit losses | $(7,340) | $10,934 | | Total Noninterest Income | $192,634 | $193,305 | | Total Noninterest Expense | $261,176 | $256,464 | | **Income attributable to Hilltop** | **$36,073** | **$20,333** | | **Diluted EPS** | **$0.57** | **$0.31** | Six-Month Performance Summary (in thousands, except per share data) | Metric | H1 2025 (USD) | H1 2024 (USD) | | :--- | :--- | :--- | | Net Interest Income | $215,791 | $207,271 | | Provision for (reversal of) credit losses | $1,998 | $8,063 | | Total Noninterest Income | $405,974 | $374,923 | | Total Noninterest Expense | $512,649 | $506,487 | | **Income attributable to Hilltop** | **$78,189** | **$48,001** | | **Diluted EPS** | **$1.22** | **$0.74** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by **$1.34 billion** in H1 2025, primarily due to cash used in operating and financing activities Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Net cash used in operating activities | $(228,761) | $(364,459) | | Net cash provided by (used in) investing activities | $(97,516) | $29,497 | | Net cash used in financing activities | $(1,014,017) | $(726,787) | | **Net change in cash, cash equivalents and restricted cash** | **$(1,340,294)** | **$(1,061,749)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, financial instruments, and key events including a merchant bank gain and debt redemptions - The company's business is conducted through two primary units: **PlainsCapital Corporation (PCC)** for banking and mortgage services, and **Hilltop Securities Holdings LLC** for broker-dealer and investment banking services[21](index=21&type=chunk) - A preliminary pre-tax gain of **$27.1 million** (**$21.0 million** net of tax) was recognized in H1 2025 from the sale of the company's interest in Moser Holdings, LLC, a merchant bank investment[68](index=68&type=chunk) - The company redeemed all of its outstanding **$150 million Senior Notes** in January 2025 and all of its **$50 million 5.75% Subordinated Notes** due 2030 in May 2025[152](index=152&type=chunk)[153](index=153&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights strong H1 2025 performance driven by a merchant bank gain and credit loss reversal, alongside capital strength and market challenges - The company's board authorized a new stock repurchase program of up to **$100.0 million** in January 2025, which was later increased to **$135.0 million** in July 2025. During the first six months of 2025, the company repurchased **2.2 million shares** for **$68.2 million**[258](index=258&type=chunk) - Management notes that while funding costs remain elevated, the cost of deposits decreased in H1 2025 compared to H1 2024 as actions were taken to reduce interest paid on interest-bearing deposits[269](index=269&type=chunk) - The company is evaluating potential loss exposures from the central Texas flooding that occurred in July 2025, which could impact the banking and mortgage origination segments[277](index=277&type=chunk) [Consolidated Operating Results](index=63&type=section&id=Consolidated%20Operating%20Results) Consolidated net income significantly increased in Q2 and H1 2025, driven by credit loss reversal and improved net interest margin Key Performance Indicators | Ratio | Q2 2025 (%) | Q2 2024 (%) | H1 2025 (%) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Return on average stockholders' equity | 6.62% | 3.84% | 7.21% | 4.54% | | Return on average assets | 0.98% | 0.59% | 1.05% | 0.67% | | Net interest margin (taxable equivalent) | 3.04% | 2.92% | 2.95% | 2.89% | [Segment Results](index=66&type=section&id=Segment%20Results) Banking segment income rose significantly due to credit loss reversal, while other segments showed mixed results including a mortgage legal settlement Income (Loss) Before Taxes by Segment (in thousands) | Segment | Q2 2025 (USD) | Q2 2024 (USD) | H1 2025 (USD) | H1 2024 (USD) | | :--- | :--- | :--- | :--- | :--- | | Banking | $54,928 | $32,813 | $94,986 | $83,155 | | Broker-Dealer | $6,397 | $7,225 | $15,613 | $26,143 | | Mortgage Origination | $3,210 | $1,350 | $(5,072) | $(15,099) | | Corporate | $(15,079) | $(11,868) | $1,540 | $(26,571) | - The Mortgage Origination segment received **$9.5 million** from legal settlements in April 2025, which significantly contributed to its Q2 profitability[368](index=368&type=chunk)[384](index=384&type=chunk) [Financial Condition](index=85&type=section&id=Financial%20Condition) Total assets decreased to **$15.4 billion**, while the loan portfolio grew modestly and ACL decreased due to an improved macroeconomic outlook - The allowance for credit losses was determined using a single **'baseline' macroeconomic forecast** from Moody's Analytics as of June 30, 2025, a shift from the more pessimistic 'S5' alternative scenario used previously[440](index=440&type=chunk) - A sensitivity analysis shows that a downside **'S3' economic scenario** would increase the ACL by approximately **$66 million**, while an upside **'S1' scenario** would decrease it by about **$12 million**[454](index=454&type=chunk)[455](index=455&type=chunk) - Total estimated uninsured deposits were **$5.2 billion** (**50%** of total deposits). Excluding collateralized and internal accounts, uninsured deposits were **$4.5 billion** (**43%** of total deposits)[480](index=480&type=chunk) [Liquidity and Capital Resources](index=93&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, with regulatory ratios well above thresholds despite cash decrease from debt redemptions Regulatory Capital Ratios (June 30, 2025) | Ratio | Hilltop (%) | PlainsCapital (%) | Minimum Requirement (incl. buffer) (%) | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 | 20.74% | 15.08% | 7.0% | | Tier 1 Capital | 20.74% | 15.08% | 8.5% | | Total Capital | 23.38% | 16.29% | 10.5% | | Tier 1 Leverage | 13.11% | 10.71% | 4.0% | - The Bank had available liquidity of **$6.55 billion** at June 30, 2025, primarily from **FHLB capacity ($4.3 billion)** and its available investment portfolio (**$1.4 billion**)[505](index=505&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=94&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company primarily manages interest rate risk, with the banking segment being asset sensitive, while other segments face specific market exposures Banking Segment Interest Rate Sensitivity Analysis (June 30, 2025) | Change in Rates (bps) | Change in Net Interest Income (Amount in thousands) | Change in Net Interest Income (%) | Change in Economic Value of Equity (Amount in thousands) | Change in Economic Value of Equity (%) | | :--- | :--- | :--- | :--- | :--- | | +200 | $38,950 | 9.24% | $157,684 | 9.73% | | +100 | $20,120 | 4.77% | $94,001 | 5.80% | | -100 | $(19,436) | (4.61)% | $(155,396) | (9.59)% | - The mortgage origination segment's primary market exposure is interest rate risk impacting mortgage loans held for sale, interest rate lock commitments (IRLCs), and mortgage servicing rights (MSRs). This risk is managed through forward commitments to sell mortgage-backed securities[544](index=544&type=chunk)[545](index=545&type=chunk) [Item 4. Controls and Procedures](index=99&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal controls during Q2 2025 - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[553](index=553&type=chunk) - No changes in internal control over financial reporting occurred during the second fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[554](index=554&type=chunk) [PART II — OTHER INFORMATION](index=100&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, and other disclosures relevant to the company's operations [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including an ongoing investigative inquiry into PrimeLending's float down option - PrimeLending is cooperating with an ongoing investigative inquiry from the U.S. Attorney for the Western District of Virginia regarding its float down option, which has included grand jury subpoenas[166](index=166&type=chunk) [Item 1A. Risk Factors](index=100&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors have occurred since the 2024 Form 10-K filing - No material changes to risk factors have occurred since the filing of the **2024 Form 10-K**[558](index=558&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1.16 million shares** of common stock in Q2 2025 as part of an increased repurchase program Common Stock Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 817,396 | $30.29 | | June 2025 | 340,000 | $29.80 | | **Total** | **1,157,396** | **$30.14** | [Item 5. Other Information](index=100&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading arrangements were adopted, terminated, or modified by directors or officers in Q2 2025 - There were no adoptions, terminations, or modifications of **Rule 10b5-1 trading arrangements** by directors or executive officers during the three months ended June 30, 2025[561](index=561&type=chunk) [Item 6. Exhibits](index=101&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including officer certifications and XBRL data

Hilltop (HTH) Q2 2025 Earnings Call July 25, 2025 09:00 AM ET Company ParticipantsMatthew Dunn - Corporate Development Officer & Head - IRJeremy Ford - Chairman, President and CEOWilliam Furr - CFOWoody Lay - Vice PresidentTim Mitchell - Senior Equity Research AssociateJordan Ghent - Senior Research AssociateOperatorGood morning, ladies and gentlemen, and welcome to the Hilltop Holdings Second Quarter twenty twenty five Earnings Conference Call and Webcast. At this time, note that all participant lines are ...

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $36 million or $0.57 per diluted share, with a return on average assets of 1% and return on average equity of 6.6% [4] - The net interest margin increased by 19 basis points, while the blended cost of deposits declined by 9 basis points [5][6] - Net interest income for the second quarter was $110.7 million, reflecting a year-over-year increase of 7% [14][17] - The allowance for credit losses declined by $8.2 million to $98 million, with net charge-offs of approximately $900,000 [15][16] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pretax income on average assets of $12.7 billion, resulting in a return on average assets of 1.35% [5] - PrimeLending reported a pretax gain of $3 million, including a nonrecurring legal settlement of $9.5 million [9] - Hilltop Securities generated pretax income of $6 million on net revenues of $110 million, with public finance services seeing a 36% year-over-year increase in net revenues [11] Market Data and Key Metrics Changes - Average total deposits at PlainsCapital declined during the quarter, reflecting normal seasonal flows related to tax payments and distributions [18] - Core deposits increased by approximately $275 million year-over-year [8] - Mortgage revenues declined by $12 million, driven by lower valuation marks on the pipeline and lower loan origination fees [20] Company Strategy and Development Direction - The company aims to return its mortgage business to profitability while managing deposit costs and expanding lending activity [24] - Hilltop continues to focus on prudent growth of revenue producers while gaining efficiency across middle and back office functions [21] - The company anticipates ongoing activity in M&A, looking for cash-type deals due to trading at a discount on a tangible book value basis [51] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the work being done to support customers and communities, despite uncertainties in the market regarding interest rates and inflation [24] - The outlook for 2025 reflects the current assessment of the economy and market conditions, with adjustments expected as the market changes [25] - The company expects to recapture a material portion of deposits in the second half of 2025 as seasonal inflows occur [7] Other Important Information - The company returned over $46 million to stockholders through dividends and share repurchases during the quarter [5] - The tangible book value per share increased by $0.54 to $30.56 [13] Q&A Session Summary Question: Regarding the broker dealer business and elevated efficiency ratio - Management indicated that the elevated efficiency ratio is largely a reflection of the revenue mix, with public finance services up and structured finance flat to down [27][28] Question: On fixed expense guidance and incremental expense outlook - Management noted ongoing inflation in personnel and software expenses as drivers for the increased expense outlook [30] Question: About the net interest margin and deposit beta - Management highlighted improvements in analytic capabilities and a more rational marketplace as factors contributing to a higher than expected deposit beta [31][32] Question: On loan growth and competition - Management discussed strong pipelines and the impact of competition on loan growth, indicating that it will take time to fund commitments [36][41] Question: On capital management and share repurchases - Management expressed satisfaction with share repurchases and indicated plans to continue this strategy, while also evaluating M&A opportunities [50][51] Question: About credit improvements and classified loans - Management attributed improvements in classified loans to pay downs and effective workout activities by the credit team [53] Question: On deposit costs and outflows - Management clarified that recent outflows were seasonal and expected to rebuild in the second half of the year [55]

Core Insights - Hilltop Holdings Inc. (HTH) reported second-quarter 2025 earnings of 57 cents per share, exceeding the Zacks Consensus Estimate of 41 cents, and reflecting an 83.9% increase from the prior-year quarter [1][9] - The earnings growth was driven by higher net interest income (NII) and a reversal of provisions, although higher non-interest expenses and lower non-interest income, along with a decline in deposits, posed challenges [1][10] Financial Performance - Net income attributable to common stockholders was $36.1 million, representing a 77.4% year-over-year increase, surpassing the estimate of $22.4 million [2] - Net revenues for the second quarter totaled $303.3 million, a 2.1% year-over-year increase, but fell short of the Zacks Consensus Estimate of $307.6 million [3] - NII rose by 6.8% year over year to $110.7 million, exceeding the estimate of $106.1 million, while the net interest margin (NIM) improved to 3.04%, up 12 basis points from the previous year [3] - Non-interest income decreased slightly to $192.6 million, missing the projected $196.3 million, primarily due to declines in most components except for securities commissions and fees [4] - Non-interest expenses increased by 1.8% year over year to $261.2 million, slightly below the estimate of $262.4 million [4] Loan and Deposit Trends - As of June 30, 2025, net loans held for investment were $8 billion, reflecting a 1.3% sequential increase, while total deposits decreased by 4.1% to $10.4 billion [5] Credit Quality and Capital Ratios - Hilltop Holdings experienced a reversal of credit losses amounting to $7.3 million, compared to a provision for credit losses of $10.9 million in the prior-year quarter [6] - Non-performing assets as a percentage of total assets improved to 0.53%, down 17 basis points from the previous year [6] - Return on average assets increased to 0.98% from 0.59% year over year, and return on average stockholders' equity rose to 6.62% from 3.84% [7] - The common equity tier 1 capital ratio improved to 20.74% from 19.45% year over year, while the total capital ratio increased to 23.38% from 22.57% [7] Strategic Outlook - The company's restructuring efforts, improving fee income, and favorable interest rates are expected to support revenue growth, although challenges remain in the Mortgage Origination segment and asset quality [10]

Hilltop Holdings Inc. Q2 2025 Earnings Presentation July 25, 2025 2 Preface Corporate Headquarters 6565 Hillcrest Ave Dallas, TX 75205 Phone: 214-855-2177 www.hilltop.com Additional Information Please Contact: Matt Dunn Phone: 214-525-4636 Email: mdunn@hilltop.com FORWARD-LOOKING STATEMENTS This presentation and statements made by representatives of Hilltop Holdings Inc. ("Hilltop" or the "Company") during the course of this presentation include "forward- looking statements" within the meaning of the Privat ...

Hilltop Holdings (HTH) reported $303.31 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 2.1%. EPS of $0.57 for the same period compares to $0.31 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $307.62 million, representing a surprise of -1.4%. The company delivered an EPS surprise of +39.02%, with the consensus EPS estimate being $0.41.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wal ...

Group 1 - Hilltop Holdings reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and up from $0.31 per share a year ago, representing an earnings surprise of +39.02% [1] - The company posted revenues of $303.31 million for the quarter ended June 2025, which was 1.4% below the Zacks Consensus Estimate, but an increase from $296.95 million year-over-year [2] - Hilltop Holdings has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has gained approximately 9.5% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $320.73 million, and for the current fiscal year, it is $1.88 on revenues of $1.24 billion [7] - The Zacks Industry Rank for Banks - Southeast, to which Hilltop Holdings belongs, is currently in the top 9% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Exhibit 99.1 Investor Relations Contact: Matt Dunn 214-525-4636 mdunn@hilltop.com Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per common share payable on August 29, 2025, to all common stockholders of record as of the close of business on August 15, 2025. Additionally, during the second quarter of 2025, Hilltop paid $34.9 million to repurchase an aggregate of 1,157,396 shares of its common stock at an average price of $30.17 per share pursuant to the 2025 s ...

The market expects Hilltop Holdings (HTH) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 24, might help the stock move higher if these key numbers are bette ...

Investors might want to bet on Hilltop Holdings (HTH) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changin ...