Hilltop (HTH) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 ranged from $45.8 million to $46.7 million ($0.74 per diluted share), up significantly year-over-year, with ROAA at 1.2% and ROAE at 8.35%.

• Pre-tax income was led by the banking segment ($54.7–$55 million), while the mortgage segment posted a $7–$7.2 million pre-tax loss; broker-dealer segment delivered $26.5 million pre-tax income and an 18%+ pre-tax margin.

• Diluted EPS for Q3 2025 was $0.74, up from $0.46 in Q3 2024.

• Board declared a $0.18 per share quarterly dividend and repurchased $55–$55.1 million in stock during Q3 2025.

• Return on average equity reached 8.35%, and pre-provision net revenue increased 38% year-over-year.

Financial highlights

• Net interest income for Q3 2025 was $112–$112.4 million, up 7% year-over-year; noninterest income rose 8.7–9% to $217.8 million.

• Noninterest expenses increased to $271.9–$272 million, mainly due to higher variable compensation, but the efficiency ratio improved to 82.3%.

• Net charge-offs were $0.3 million (1 bp of loans); allowance for credit losses was 1.16% of loans.

• Book value per share increased to $35.69 and tangible book value per share to $31.23 at September 30, 2025.

• End-of-period loans HFI grew 3% year-over-year to $8.1 billion; deposits were $10.7 billion.

Outlook and guidance

• Full-year average total loans expected to increase 0–2% from 2024, excluding mortgage warehouse lending.

• Net interest income projected to rise 2–4% in 2025, assuming one Fed Funds rate cut; NII expected to remain stable with modest downward pressure in early 2026.

• Mortgage origination volume forecasted at $8–$9 billion for the year; segment expected to remain challenged but showing signs of stabilization.

• Noninterest expenses (excluding variable compensation) anticipated to remain stable; provision expense to average 0–10 bps.

• Management focused on executing strategic plans for 2026 amid economic uncertainty, inflation, and interest rate changes.