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), with ROAA at 1.20% and ROAE at 8.35%, reflecting strong banking and broker-dealer performance and continued mortgage headwinds.

• Pre-tax income: PlainsCapital Bank $54.7–$55 million, Hilltop Securities $26.5 million (18%+ pre-tax margin), PrimeLending $7–$7.2 million pre-tax loss.

• Leadership changes at PlainsCapital Bank, including new Chief Credit Officer and Dallas region chairman.

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

• Pre-provision net revenue increased 38% year-over-year.

Financial highlights

• Net interest income rose 7% year-over-year to $112.4 million; noninterest income increased 8.7%–9% to $217.8 million; noninterest expenses rose 2.9%–3% to $271.9 million.

• Tangible book value per share increased to $31.23; book value per share reached $35.69 at September 30, 2025.

• Net charge-offs for the quarter were $0.3 million, or one basis point of the loan portfolio.

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

• Total assets grew to $15.6 billion at September 30, 2025.

Outlook and guidance

• Net interest income expected to remain stable with modest downward pressure in Q1 2026; full-year average total loans projected to increase 0%-2% from 2024, excluding mortgage warehouse lending and retained mortgages.

• Net interest income projected to rise 2–4% in 2025, assuming one Fed Funds rate cut; broker-dealer pre-tax margins expected to revert to low teens after a strong Q3.

• Mortgage origination volume forecasted at $8–$9 billion for the year; loan production in the mortgage segment expected to decrease in Q4 2025.

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

• Management is focused on executing strategic plans for 2026 to drive long-term stockholder value.