Hilltop (HTH) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 ranged from $37.8 million to $39.0 million ($0.64 per diluted share), with ROAA at 1.02% and ROAE at 7.12%.

• PlainsCapital Bank delivered $47.1 million pre-tax income, with net interest margin expansion and loan growth.

• PrimeLending narrowed its operating loss to $2.4 million, driven by higher origination volumes and improved margins.

• HilltopSecurities posted $14.8 million pre-tax income, with net revenue growth in fixed income and wealth management.

• $59 million was returned to stockholders through dividends and share repurchases in Q1 2026.

Financial highlights

• Net interest income grew 7% year-over-year to $112.1 million, driven by deposit management and loan growth.

• Noninterest income declined to $188.4 million, mainly due to lower merchant banking gains.

• Noninterest expense decreased to $248.3 million, reflecting lower compensation and benefits.

• Provision for credit losses was $1.8 million, down from $9.3 million in Q1 2025.

• Book value per share was $36.63; tangible book value per share was $31.97.

Outlook and guidance

• Management expects continued economic uncertainty, with deposit costs and loan demand influenced by market rates, competition, and customer behavior.

• Mortgage origination volume guidance maintained at $9–$10 billion for 2026, with stable gain on sale margins.

• Non-variable expenses expected to rise modestly (0–2%) due to inflation and technology investments.

• Guidance assumes two additional Fed rate cuts in 2026; if no cuts occur, NII could be $8–$10 million higher.

• Provision expense expected at 15–30 basis points of average loans HFI; effective tax rate 22%-24%.