Hilltop Holdings(US:HTH)2025-10-23 20:30Financial Performance - Hilltop reported net income of $45.8 million, or $0.74 per diluted share, for Q3 2025, a significant increase from $29.7 million, or $0.46 per diluted share, in Q3 2024, representing a 54.5% year-over-year growth[1] - Hilltop's consolidated annualized return on average assets and return on average stockholders' equity for Q3 2025 were 1.20% and 8.35%, respectively, up from 0.84% and 5.51% in Q3 2024[8] - Net income attributable to Hilltop for the three months ended September 30, 2025, was $45,818,000, a significant increase of 27.1% from $36,073,000 in the previous quarter[10] - Basic earnings per share increased to $0.74, compared to $0.57 in the previous quarter, reflecting a growth of 29.8%[10] Income and Revenue - Noninterest income rose to $217.8 million in Q3 2025, an 8.7% increase from $200.4 million in Q3 2024[8] - Total interest income for the three months ended September 30, 2025, was $200,261,000, an increase of 1.1% from $197,181,000 in the previous quarter[10] - Net interest income for the three months ended September 30, 2025, was $113.334 million, an increase from $105.624 million in the prior year[17] - Noninterest income totaled $217,807,000, up from $192,634,000 in the previous quarter, marking an increase of 13.1%[10] Asset and Deposit Growth - Total assets increased to $15.6 billion at September 30, 2025, compared to $15.4 billion at June 30, 2025[8] - Hilltop's total deposits grew to $10.7 billion at September 30, 2025, up from $10.4 billion at June 30, 2025[8] Credit Quality - The reversal of credit losses was $2.5 million in Q3 2025, compared to $1.3 million in Q3 2024, indicating improved credit quality[6] - Non-accrual loans totaled $68.253 million, representing 0.75% of total loans as of September 30, 2025, a decrease from 1.02% a year earlier[16] - Total non-performing assets amounted to $76.542 million, or 0.49% of total assets, as of September 30, 2025[16] Capital Management - The company repurchased 1,701,274 shares for $55.1 million at an average price of $32.36 per share during Q3 2025[2] - The Board of Directors authorized an increase in the stock repurchase program to $185.0 million, up by $50.0 million[3] - Hilltop's Tier 1 capital ratio to average assets was 13.13% as of September 30, 2025, up from 12.95% a year earlier[15] Dividends - Hilltop declared a quarterly cash dividend of $0.18 per common share, payable on November 21, 2025[2] - The company declared cash dividends of $0.18 per common share, consistent with the previous quarter[10] Operational Efficiency - The efficiency ratio improved to 51.7% for the quarter, down from 55.4% in the previous quarter[11] Market and Competitive Risks - The company acknowledges known and unknown risks that may cause actual results to differ materially from forward-looking statements[21] - Key risks include credit risks of lending activities, effectiveness of data security controls, and changes in economic conditions[21] - The company faces competition from various financial institutions and investment firms in its banking and mortgage segments[21] - Risks associated with merger and acquisition integration are highlighted as a significant concern[21] - Changes in interest rate environment and economic disruptions are noted as potential impacts on business performance[21] - Legal and regulatory proceedings are identified as ongoing risks that could affect the company's performance[21] Strategic Focus - The company is focused on the effective use of excess capital to enhance growth opportunities[21] - Changes in federal and state regulations, including those under the Dodd-Frank Act, are critical factors influencing business strategy[21] - The company does not assume any duty to update forward-looking statements unless required by law[21] Employment and Operations - Hilltop employed approximately 3,600 people and operated 312 locations in 47 states as of September 30, 2025[20] - The company will host a conference call on October 24, 2025, to review third quarter 2025 financial results[19]