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]

Company Overview - Health In Tech (Nasdaq: HIT) is an Insurtech platform company that leverages third-party AI technology to enhance processes in the healthcare industry through vertical integration, process simplification, and automation [4]. - The company aims to streamline the underwriting, sales, and service processes for insurance companies, licensed brokers, and third-party administrators (TPAs) [4]. Event Participation - Health In Tech will participate as a Gold Sponsor at the American Trust Investment Services National Conference 2025, scheduled for June 16–18, 2025, in San Diego, California [1][2]. - The conference will focus on business growth, collaboration, and innovation in financial services, bringing together registered representatives, advisors, and preferred sponsors [2]. Strategic Vision - CEO Tim Johnson expressed excitement about the conference, highlighting it as an opportunity to connect with influential advisors and showcase how the company's platform enhances transparency, efficiency, and affordability in healthcare benefits [3]. - Health In Tech plans to engage in one-on-one meetings, interact with attendees in the vendor room, and present its strategic vision to raise awareness of its platform and its role in driving innovation in the healthcare industry [3].