Hilltop Holdings(US:HTH)2025-10-24 20:31Financial Performance - Net interest income for Q3 2025 was $112.4 million, an increase of 6.4% from $105.0 million in Q3 2024[278] - Total noninterest income for Q3 2025 reached $217.8 million, up 8.5% from $200.4 million in Q3 2024[278] - Net income attributable to Hilltop for Q3 2025 was $45.8 million, a 54.1% increase compared to $29.7 million in Q3 2024[278] - Diluted earnings per common share for Q3 2025 were $0.74, compared to $0.46 in Q3 2024, reflecting a 60.9% increase[278] - Total noninterest income for Q3 2025 was $76.6 million, a decline of 4.2% from $79.9 million in Q3 2024[416] - Noninterest income for the nine months ended September 30, 2025, was $45.8 million, an increase of $29.1 million compared to $16.7 million in 2024[441] Assets and Equity - Total assets as of September 30, 2025, were $15.6 billion, down from $16.3 billion at the end of 2024[278] - The common equity to assets ratio improved to 14.02% as of September 30, 2025, compared to 13.46% at the end of 2024[278] - The tangible common equity to tangible assets ratio was 12.49% as of September 30, 2025, up from 11.98% at the end of 2024[278] - Total assets decreased to $15,605,050 thousand in September 2025 from $16,268,129 thousand in December 2024, a decline of 4.1%[285] - The equity to assets ratio improved to 14.02% in September 2025 compared to 13.46% in December 2024[285] - The allowance for credit losses was $95.2 million as of September 30, 2025, compared to $101.1 million at December 31, 2024, indicating improved credit quality[462] Dividends and Stock Repurchase - The company declared total common dividends of $34.4 million during the nine months ended September 30, 2025, with a quarterly cash dividend of $0.18 per share declared on October 23, 2025[280] - The stock repurchase program was increased to $185.0 million, with $123.2 million spent to repurchase 3,905,210 shares at an average price of $31.56 per share[281] Segment Performance - The banking segment contributed $54.7 million to income before income taxes in Q3 2025, while the mortgage origination segment incurred a loss of $7.2 million[283] - The mortgage origination segment reported a loss before income taxes of $7.234 million for the three months ended September 30, 2025, an improvement from a loss of $8.718 million in the same period of 2024[397] - Total net revenue for the broker-dealer segment increased by $20.236 million to $144.494 million for the three months ended September 30, 2025, compared to the same period in 2024[381] - The broker-dealer segment's total noninterest income increased by $19.983 million to $131.832 million for the three months ended September 30, 2025[382] Interest Income and Expenses - The net interest margin for the three months ended September 30, 2025, was 3.06%, up from 2.84% in 2024[326] - The average yield on loans held for investment was 5.95% for the three months ended September 30, 2025, down from 6.19% in 2024[335] - The total interest-bearing liabilities for the nine months ended September 30, 2025, were $10,347,747 thousand, with an annualized interest expense of $262,062 thousand[336] - The average yield on interest-earning assets decreased by 37 basis points to 5.29% for the nine months ended September 30, 2025[368] Economic Outlook and Risks - Economic uncertainties, including interest rate changes and inflation, are anticipated to adversely impact operating results for the remainder of 2025[302] - The company expects an increase in the effective income tax rate due to the disallowance of certain business expenses under new tax legislation signed on July 4, 2025[291] Loan Performance - Loans held for investment, gross, amounted to $7,773,525 million in Q3 2025, with an annualized yield of 5.85%, down from $7,698,935 million and 6.07% in Q3 2024[1] - The banking segment's loan portfolio included warehouse lines of credit extended to PrimeLending totaling $1.3 billion, with $796.5 million drawn as of September 30, 2025[462] - The mortgage origination segment's total loan origination volume is a key performance measure, essential for generating income through mortgage loan sales and related fees[410] Noninterest Expenses - Noninterest expense decreased by $1,779 thousand during the three months ended September 30, 2025, totaling $55,778 thousand compared to $57,557 thousand in 2024, and decreased by $4,593 thousand for the nine months[343] - Noninterest expenses for the three months ended September 30, 2025, were $16.7 million, an increase of $1.0 million compared to $15.6 million in 2024[441] Capital Ratios - The common equity Tier 1 risk-based capital ratio at the end of the period was 20.33% for the nine months ended September 30, 2025, down from 20.48% in 2024[326] - The common equity Tier 1 risk-based capital ratio is defined as common equity Tier 1 risk-based capital divided by risk-weighted assets[330]