Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for Q3 2025, with a return on average assets of 1.2% and return on average equity of 8.35% [4] - Net interest income increased by $7.4 million or 7% year-over-year, driven by improving deposit costs and growth in higher yielding commercial loans [14] - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [12][13] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, with a return on average assets of 1.34% [4] - PrimeLending reported a pre-tax loss of $7 million due to subdued mortgage origination volumes, with existing home sales at their lowest level in over 30 years [6][7] - Hilltop Securities Inc. generated pre-tax income of $26.5 million on net revenues of $144.5 million, with a pre-tax margin of 18% [7][8] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis, attributed to seasonal cash inflows from large balance customers [5] - Mortgage revenues declined by $3.4 million year-over-year, with origination volumes stable but gain on sale margins improving by 8 basis points [17][18] - The fixed income business showed a 13% increase in net revenues year-over-year, reflecting robust industry volumes [8] Company Strategy and Development Direction - The company aims to increase market share despite elevated competition in Texas, focusing on core loan growth and managing interest expenses [5][22] - Hilltop Securities continues to invest in core areas of expertise, leveraging its national brand built on trust [9] - The leadership transition at PlainsCapital Bank is seen as an opportunity for continued growth while maintaining the bank's legacy and credit culture [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to manage credit risks and maintain a conservative credit culture despite competitive pressures [22][23] - The outlook for 2025 reflects current assessments of the economy and market conditions, with a focus on producing quality outcomes for clients and communities [24] - Management anticipates continued challenges in the mortgage market but expects gradual improvement into 2026 [18] Other Important Information - Hilltop maintains strong capital levels with a common equity tier one capital ratio of 20% and tangible book value per share increased by $0.67 to $31.23 [9] - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares during the quarter [9] Q&A Session Summary Question: NII guidance and near-term outlook - Management explained that the NII guidance was not increased due to expected rate cuts and potential paydowns impacting loan growth [26][28] Question: Stock buyback strategy and M&A outlook - Management confirmed a consistent approach to share repurchases given excess capital and discussed opportunities in the Texas market for potential M&A [30][31] Question: Auto portfolio exposure - Management addressed concerns regarding the auto portfolio, noting a reduction in commitments and ongoing workout efforts for non-accrual clients [32][33] Question: Broker-dealer fee income - Management highlighted strong performance in public finance and other segments, but anticipated a reversion to lower pre-tax margins in the future [42][44] Question: Effects of government shutdown - Management indicated no primary effects on the broker-dealer from the government shutdown, but noted potential processing delays in mortgage and SBA areas [51][52]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for Q3 2025, with a return on average assets of 1.2% and return on average equity of 8.35% [4] - Net interest income increased by $7.4 million or 7% year-over-year, totaling $112 million, driven by improved deposit costs and growth in higher yielding commercial loans [14] - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [12] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, with a return on average assets of 1.34% [4] - PrimeLending reported a pre-tax loss of $7 million due to subdued mortgage origination volumes, with existing home sales at their lowest level in over 30 years [6] - Hilltop Securities Inc. produced pre-tax income of $26.5 million on net revenues of $144.5 million, achieving a pre-tax margin of 18% [7] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis, attributed to seasonal cash inflows from large balance customers [5] - Average total deposits remained stable at approximately $10.5 billion year-over-year, with a focus on growing interest-bearing products [16] - Mortgage revenues declined by $3.4 million year-over-year, reflecting challenges in the mortgage banking sector due to higher interest rates and home prices [17][18] Company Strategy and Development Direction - The company aims to maintain strong capital levels with a common equity tier one capital ratio of 20% and plans to continue share repurchases to signal confidence in its stock [9][31] - Hilltop Securities is investing in core areas of expertise and leveraging its national brand to enhance client service [9] - The leadership team is focused on optimizing costs and productivity at PrimeLending while growing the client-facing sales team [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the bank's ability to manage competition and maintain a conservative credit culture despite elevated market competition [5][22] - The outlook for 2025 reflects ongoing uncertainties in the market regarding interest rates and inflation, with a focus on producing quality outcomes for clients [24] - Management does not anticipate significant systemic risk across the portfolio but remains vigilant in assessing potential credit risks [13] Other Important Information - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares during the quarter [9] - A leadership transition is occurring at PlainsCapital Bank, with the promotion of Brent Randall to Chief Credit Officer [10] Q&A Session Summary Question: NII guidance and near-term outlook - Management explained that the NII guidance was not increased due to expected rate cuts and potential asset contraction, emphasizing the balance sheet's asset sensitivity [26][28] Question: Stock buybacks and M&A outlook - Management confirmed a consistent approach to share repurchases given excess capital and discussed opportunities for growth through M&A in the Texas market [30][31] Question: Auto portfolio exposure - Management addressed concerns about the auto portfolio, noting a reduction in commitments and ongoing workout efforts for non-accrual clients [32][33] Question: Broker-dealer fee income - Management highlighted strong performance in public finance and structured finance, while acknowledging that some fee growth may not be sustainable [42][43] Question: Effects of government shutdown - Management indicated no primary effects from the government shutdown on the broker-dealer, but noted potential processing delays in the mortgage space [51][52]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for Q3 2025, with a return on average assets of 1.2% and return on average equity of 8.35% [4][13] - Net interest income increased by $7.4 million or 7% year-over-year, driven by improving deposit costs and growth in higher yielding commercial loans [16][19] - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [13][14] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, with a return on average assets of 1.34% [4][5] - PrimeLending reported a pre-tax loss of $7 million due to subdued mortgage origination volumes and pressure on margins [6][8] - Hilltop Securities Inc. generated pre-tax income of $26.5 million on net revenues of $144.5 million, achieving a pre-tax margin of 18% [8][10] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis, attributed to seasonal cash inflows [5] - Existing home sales across the country reached their lowest level in over 30 years, impacting PrimeLending's performance [7][20] - Hilltop Securities experienced solid growth in public finance, structured finance, and wealth management, with net revenues increasing significantly year-over-year [9][21] Company Strategy and Development Direction - The company aims to focus on reducing fixed expenses and recruiting talented mortgage originators to restore profitability at PrimeLending [8][20] - Hilltop Securities continues to invest in core areas of expertise and leverage its national brand to serve clients effectively [10][21] - The company is exploring opportunities for growth through potential M&A in the Texas market, which has seen increased interest from out-of-market entrants [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong capital levels with a common equity tier one capital ratio of 20% and tangible book value per share increasing to $31.23 [10] - The outlook for 2025 reflects current assessments of the economy and market conditions, with expectations for continued challenges in the mortgage market [25] - Management remains vigilant regarding credit risks and is focused on early detection and aggressive workout strategies [24] Other Important Information - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares during the quarter [10] - A leadership transition is occurring at PlainsCapital Bank, with the promotion of Brent Randall to Chief Credit Officer [11] Q&A Session Summary Question: NII guidance and margin expectations - Management explained that the NII guidance was not increased due to expected rate cuts and potential asset contraction, emphasizing the balance sheet's asset sensitivity [27][28] Question: Stock buyback strategy and M&A outlook - Management confirmed a consistent approach to share repurchases given the current stock price and excess capital, while also exploring M&A opportunities in Texas [30][31] Question: Auto portfolio exposure - Management acknowledged subprime exposure in the auto portfolio but stated that they are closely monitoring and managing the situation [32][38] Question: Broker-dealer fee income and future expectations - Management highlighted strong performance across all broker-dealer business lines in Q3 but anticipated a reversion to lower pre-tax margins in the future [40][41]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for the third quarter [4] - Return on average assets for the period was 1.2% and return on average equity was 8.35% [4] - Net interest income increased by $7.4 million or 7% year-over-year, driven by improving deposit costs and growth in new higher yielding commercial loans [18] - Tangible book value per share increased by $0.67 to $31.23 [11] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pretax income on $12.6 billion of average assets, resulting in a return on average assets of 1.34% [5] - PrimeLending reported a pretax loss of $7 million due to subdued mortgage origination volumes [7] - Hilltop Securities produced pretax income of $26.5 million on net revenues of $144.5 million, achieving a pretax margin of 18% [9] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis [6] - Existing home sales across the country reached their lowest level in over thirty years, impacting PrimeLending's performance [8] - Hilltop Securities experienced a 28% year-over-year increase in net revenues in public finance services [9] Company Strategy and Development Direction - The company aims to increase market share despite elevated competition in Texas [6] - Hilltop Securities continues to invest in core areas of expertise and leverage its national brand [10] - The leadership team at PrimeLending is focused on optimizing costs and productivity to restore profitability [21] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in the mortgage market due to higher interest rates and home prices [21] - The company anticipates one additional 25 basis point rate cut in 2025, followed by two more in 2026 [18] - Management remains vigilant in assessing risk and negative credit migration, focusing on early detection and aggressive workout when necessary [26] Other Important Information - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [15] - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares [11] - A leadership transition is occurring at PlainsCapital Bank with the retirement of the Chief Credit Officer [12] Q&A Session Summary Question: NII guidance and near-term outlook - Management explained that they remain asset sensitive and did not increase the overall loan growth profile due to expected paydowns and production [30] Question: Stock buybacks and M&A outlook - Management confirmed they are leaning into share repurchases given their excess capital position and discussed opportunities in the Texas market for potential M&A [37][38] Question: Auto portfolio exposure - Management acknowledged subprime exposure in the auto financing sector but emphasized their proactive management and workout efforts [40][46] Question: Broker dealer fee income - Management noted strong performance across all business units in the broker dealer segment but expects some reversion to lower levels in the future [49][51]

Core Insights - Mortgage rates are trending down, with the national average 30-year fixed mortgage rate falling to 6.19%, which is 35 basis points lower than a year ago [1][17] - The 15-year fixed mortgage rate also decreased to 5.44%, marking a decline of more than a quarter point compared to last October [1][17] - High refinancing activity continues, accounting for over half of all mortgage activity for the sixth consecutive week due to lower rates [2] Current Mortgage Rates - The current national average rates for various mortgage types include: - 30-year fixed: 6.19% - 15-year fixed: 5.44% - 5/1 ARM: 6.26% - 7/1 ARM: 6.41% [1][6][17] Future Projections - Industry forecasts suggest that mortgage rates will remain stable for the rest of the year, with the 30-year rate expected to stay at 6% or higher for most of 2026 [15][18] - Fannie Mae projects a slight decrease to 5.9% in Q4 2026, while the Mortgage Bankers Association anticipates a 30-year mortgage rate of 6.4% by the end of 2025 [15][18]

Core Insights - The average rate for a 30-year fixed mortgage has decreased to 6.19%, down from 6.27% the previous week, marking the lowest level in over a year [10][12] - The decline in mortgage rates is attributed to expectations of a Federal Reserve rate cut and signs of a cooling economy [11][12] Mortgage Rate Trends - The 30-year fixed-rate mortgage rate was above 7% at the start of 2025, but has now dropped nearly a full percentage point [1] - Economists predict that mortgage rates may continue to decline slightly through 2026, but will likely remain within the 6%–7% range [5][6] Housing Market Impact - The decrease in mortgage rates, combined with softening home prices, is improving affordability for buyers [8] - In September, the typical home sold for 1.4% below asking price, the largest discount for that month since 2019 [8] - Sales of existing homes in September rose at the fastest pace in seven months, indicating a positive response from buyers [8][9] Economic Context - The sharp drop in mortgage rates is notable amid an ongoing federal government shutdown, which has limited the release of most economic data [3] - Freddie Mac continues to publish its weekly mortgage survey despite the shutdown, reflecting its ongoing role in the mortgage market [3]

Core Insights - Mortgage rates have reached their lowest level in 12 months, providing relief for home buyers [1] - The 30-year fixed-rate mortgage averaged 6.19% as of October 23, down 8 basis points from the previous week [2][3] - A separate survey indicated a slightly lower rate of 6.17% as of October 22, driven by investor expectations of a Federal Reserve rate cut [4] Mortgage Rate Trends - The decline in mortgage rates is linked to a drop in the 10-year Treasury yield, which typically influences mortgage rates [4] - Homeowners are responding to lower rates with increased refinance applications, indicating renewed interest in the housing market [5] Market Reactions - Home sales saw a modest increase of 1.5% in September, with optimism that falling rates will further stimulate sales [7] - Despite improvements in affordability due to lower rates, the housing market remains out of reach for many buyers [8]

Core Points - Firm Capital Mortgage Investment Corporation announced the partial exercise of the over-allotment option for its offering of 5.50% convertible unsecured subordinated debentures, resulting in an additional $3,150,000 issued, bringing the total to $28,150,000 [1][2] - The underwriting syndicate for the debenture offering was led by CIBC Capital Markets and TD Securities Inc., along with several other financial institutions [2] - The net proceeds from the over-allotment option will be utilized to repay existing indebtedness [2] Company Overview - Firm Capital Mortgage Investment Corporation is an investor in mortgages through its mortgage banker, Firm Capital Corporation, which provides various financing options including residential and commercial real estate financing [5] - The Corporation's investment objective focuses on preserving shareholders' equity while providing a stable stream of monthly dividends from investments in niche markets underserved by larger lending institutions [5] - The Corporation has been operational since October 1999 and aims to develop a diversified mortgage portfolio to ensure stable returns for shareholders [5]

Core Insights - Mortgage rates are currently decreasing, with the 30-year fixed mortgage rate at 6.15% and the 15-year fixed rate at 5.48% [1] - The 30-year rate has dropped by more than a quarter point in just three weeks, indicating a potential opportunity for locking in rates [1] Current Mortgage Rates - The current national average mortgage rates include: - 30-year fixed: 6.15% - 20-year fixed: 5.75% - 15-year fixed: 5.48% - 5/1 ARM: 6.30% - 7/1 ARM: 6.35% [5] Refinance Rates - Current refinance rates are generally higher than purchase rates, with the 30-year fixed refinance rate at 6.24% [16] Comparison of Mortgage Types - A $400,000 mortgage with a 30-year term at 6.15% results in a monthly payment of approximately $2,437, leading to $477,289 in interest over the term [8] - A 15-year mortgage at 5.48% for the same amount results in a monthly payment of about $3,264, with total interest paid being $187,536 [8] Adjustable vs. Fixed-Rate Mortgages - Fixed-rate mortgages lock in the interest rate from the start, while adjustable-rate mortgages (ARMs) have a fixed rate for an initial period before adjusting based on market conditions [10][11] - ARMs may start with lower rates but carry the risk of increases after the initial period [12] Future Rate Expectations - Economists do not anticipate significant drops in mortgage rates before the end of 2025, despite recent Federal Reserve rate cuts [13][17] - The Federal Reserve is expected to implement additional rate cuts, which may influence mortgage rates slightly lower in 2026 [14][18]

Core Insights - Mortgage rates are currently decreasing, with the 30-year fixed mortgage rate at 6.15% and the 15-year fixed rate at 5.48% [1] - The 30-year rate has dropped by more than a quarter point in the last three weeks, indicating a potential opportunity for locking in rates [1] Current Mortgage Rates - The national average for the 30-year fixed mortgage is 6.15%, while the 15-year fixed is at 5.48% [5][16] - Refinance rates are generally higher than purchase rates, with the current 30-year refinance rate at 6.24% [5][16] Mortgage Comparison - A $400,000 mortgage at a 30-year term with a 6.15% rate results in a monthly payment of approximately $2,437, leading to $477,289 in interest over the term [8] - Conversely, a 15-year mortgage at a 5.48% rate would require a monthly payment of about $3,264, resulting in $187,536 in interest [8] Rate Trends and Predictions - Economists do not anticipate significant drops in mortgage rates before the end of 2025, despite recent Federal Reserve rate cuts [13][17] - The CME FedWatch tool indicates a nearly 99% chance of a quarter-point cut in the upcoming Federal Reserve meeting [14] Adjustable vs. Fixed-Rate Mortgages - Fixed-rate mortgages lock in the interest rate from the start, while adjustable-rate mortgages (ARMs) can change after an initial fixed period [10][11] - ARMs may start with lower rates but carry the risk of increases after the initial period [12]