Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2025

Core Insights - Hilltop Holdings Inc. reported a 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, driven by improved credit loss reversals and net interest income [1][5][9] Financial Performance - The reversal of credit losses was $2.5 million in Q3 2025, compared to $1.3 million in Q3 2024, indicating a positive shift in the economic outlook [9] - Net interest income for Q3 2025 was $112.4 million, up from $105.0 million in Q3 2024, reflecting a net interest margin increase to 3.06% from 2.84% [11][9] - Noninterest income rose to $217.8 million in Q3 2025, an 8.7% increase from $200.4 million in Q3 2024 [9][13] - Total assets increased to $15.6 billion at the end of Q3 2025, up from $15.4 billion at the end of Q2 2025 [9] Shareholder Returns - The Board declared a quarterly cash dividend of $0.18 per common share, payable on November 21, 2025 [2] - Hilltop repurchased 1,701,274 shares for $55.1 million at an average price of $32.36 per share during Q3 2025 [2][3] - The total amount authorized for share repurchase was increased to $185 million, providing approximately $62 million of available capacity through January 2026 [3] Segment Performance - PlainsCapital Bank generated $55 million in pre-tax income, supported by strong loan and deposit growth [5] - The mortgage origination segment faced challenges with a pre-tax loss of $7 million due to a dampened home-buying market, despite stable origination volumes of $2.3 billion [5][9] - HilltopSecurities achieved a pre-tax margin of 18% on net revenues of $144 million, indicating robust performance across business lines [5] Capital and Asset Quality - Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio of 13.13% and a Common Equity Tier 1 Capital Ratio of 20.33% as of September 30, 2025 [9][15] - Non-accrual loans decreased to $68.3 million, or 0.75% of total loans, down from 0.80% in the previous quarter [9][15]