DALLAS–(BUSINESS WIRE)–Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the second quarter of 2025. Hilltop produced income to common stockholders of $36.1 million, or $0.57 per diluted share, for the second quarter of 2025, compared to $20.3 million, or $0.31 per diluted share, for the second quarter of 2024. Hilltop’s financial results for the second quarter, compared with the same period in 2024, primarily included a reversal of credit losses and an increase in net interest income within the banking segment, net revenues and noninterest expenses increased within the broker-dealer segment, and the mortgage origination segment had declines in net interest expense, noninterest income and noninterest expense.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per common share payable on August 29, 2025, to all common stockholders of record as of the close of business on August 15, 2025. Additionally, during the second quarter of 2025, Hilltop paid $34.9 million to repurchase an aggregate of 1,157,396 shares of its common stock at an average price of $30.17 per share pursuant to the 2025 stock repurchase program. These shares were returned to the pool of authorized but unissued shares of common stock.

Furthermore, in July 2025, the Hilltop Board of Directors authorized, subject to non-objection from the Board of Governors of the Federal Reserve, an increase to the aggregate amount of common stock that Hilltop may repurchase under the aforementioned stock repurchase program to $135.0 million, an increase of $35.0 million. As a result of share repurchases during 2025, Hilltop has approximately $67 million of available share repurchase capacity, subject to non-objection with respect to the additional $35.0 million, through the expiration of the 2025 stock repurchase program in January 2026.

The extent of the impact of uncertain economic conditions on our financial performance during the remainder of 2025 will depend in part on developments outside of our control, including, among others, the timing and significance of further changes in U.S. Treasury yields and mortgage interest rates, changes in funding costs, inflationary pressures, changes in the political environment, the impact of tariffs and reciprocal tariffs, and international armed conflicts and their impact on supply chains.

Jeremy B. Ford, Chairman, President and CEO of Hilltop, said, “During the second quarter of 2025, Hilltop delivered a 1% return on average assets and returned $47 million to stockholders through dividends and share repurchases. PlainsCapital Bank’s net interest margin expanded by 19 basis points as we continued to proactively manage deposit costs and benefited from a higher repricing of earning assets. HilltopSecurities produced a 5% year-over-year improvement in net revenue and a pre-tax margin of 5.8% in the face of a highly volatile quarter from long-term interest rates. PrimeLending had pre-tax income of $3.2 million on $2.4 billion of mortgage origination volume while operating in a persistently challenging home buying market. Notably, PrimeLending’s operating results include a one-time pre-tax benefit of $9.5 million associated with prior legal settlements. As we move into the second half of the year, we will continue to prioritize protecting our balance sheet and executing on our strategic priorities in order to create long-term stockholder value.”

Second Quarter 2025 Highlights for Hilltop:

The reversal of credit losses was $7.3 million during the second quarter of 2025, compared to a provision for credit losses of $9.3 million in the first quarter of 2025 and a provision for credit losses of $10.9 million in the second quarter of 2024;
- The reversal of credit losses during the second quarter of 2025 was primarily driven by changes in the U.S. economic outlook associated with collectively evaluated loans, loan portfolio changes and net charge-offs, partially offset by a build in the allowance related to specific reserves, including changes in loan mix and risk rating grade migration, within the banking segment, since the prior quarter.
On May 15, 2025, Hilltop redeemed all of its outstanding 5.75% Subordinated Notes due 2030 at a redemption price equal to the aggregate principal amount of $50 million, plus accrued and unpaid interest using cash on hand.
Noninterest income for the second quarter of 2025 included an aggregate of $6.1 million associated with the net effects of the receipt of $9.5 million by the mortgage origination segment from prior legal settlements and net downward adjustments to the preliminary pre-tax gain of $3.4 million from the sale of operations by the merchant bank equity investment;
- The aggregate preliminary pre-tax gain of $27.1 million ($21.0 million net of tax) associated with the sale of operations by a merchant bank equity investment is subject to change given customary post-closing adjustments, changes in the market value of the stock consideration included in transaction given certain restrictions, and liquidation of the investment vehicle.
For the second quarter of 2025, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was $80.7 million, compared to $92.9 million in the second quarter of 2024, a 13.1% decrease;
- Mortgage loan origination production volume was $2.4 billion during both the second quarter of 2025 and the second quarter of 2024;
- Net gains from mortgage loans sold to third parties, including broker fee income, increased to 233 basis points during the second quarter of 2025, compared to 232 basis points in the first quarter of 2025.
Hilltop’s consolidated annualized return on average assets and return on average stockholders’ equity for the second quarter of 2025 were 0.98% and 6.62%, respectively, compared to 0.59% and 3.84%, respectively, for the second quarter of 2024;
Hilltop’s book value per common share increased to $34.90 at June 30, 2025, compared to $34.29 at March 31, 2025;
Hilltop’s total assets were $15.4 billion and $15.8 billion at June 30, 2025 and March 31, 2025, respectively;
Loans¹, net of allowance for credit losses, were $7.6 billion and $7.5 billion at June 30, 2025 and March 31, 2025, respectively;
Non-accrual loans were $72.7 million, or 0.80% of total loans, at June 30, 2025, compared to $81.5 million, or 0.93% of total loans, at March 31, 2025;
Loans held for sale increased by 19.7% from March 31, 2025 to $979.9 million at June 30, 2025;
Total deposits were $10.4 billion and $10.8 billion at June 30, 2025 and March 31, 2025, respectively;
- Total estimated uninsured deposits were $5.2 billion, or approximately 50% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $347.3 million and internal accounts of $420.7 million, were $4.5 billion, or approximately 43% of total deposits, at June 30, 2025.
Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio² of 13.11% and a Common Equity Tier 1 Capital Ratio of 20.74% at June 30, 2025;
Hilltop’s consolidated net interest margin³increased to 3.01% for the second quarter of 2025, compared to 2.84% in the first quarter of 2025;
For the second quarter of 2025, noninterest income was $192.6 million, compared to $193.3 million in the second quarter of 2024, a 0.3% decrease;
For the second quarter of 2025, noninterest expense was $261.2 million, compared to $256.5 million in the second quarter of 2024, a 1.8% increase; and
Hilltop’s effective tax rate was 23.4% during the second quarter of 2025, compared to 22.5% during the same period in 2024.
- The effective tax rate for the second quarter of 2025 was higher than the applicable statutory rate primarily due to the impact of nondeductible compensation expense, other nondeductible expenses and other permanent adjustments, partially offset by investments in tax-exempt instruments.

________________________________________
¹	“Loans” reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $329.4 million and $324.2 million at June 30, 2025 and March 31, 2025, respectively.
²	Based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets.
³	Net interest margin is defined as net interest income divided by average interest-earning assets.

Consolidated Financial and Other Information

Consolidated Balance Sheets	June 30,			March 31,			December 31,			September 30,			June 30,
(in 000’s)	2025			2025			2024			2024			2024
Cash and due from banks	$	982,488		$	1,702,623		$	2,298,977		$	1,961,627		$	798,300
Federal funds sold		650			650			650			3,650			5,650
Assets segregated for regulatory purposes		47,158			88,451			70,963			55,628			51,046
Securities purchased under agreements to resell		93,878			99,099			88,728			81,766			111,914
Securities:
Trading, at fair value		675,757			647,158			524,916			540,836			721,384
Available for sale, at fair value, net ⁽¹⁾		1,408,347			1,405,170			1,396,549			1,405,700			1,433,107
Held to maturity, at amortized cost, net ⁽¹⁾		771,641			762,369			737,899			754,824			777,456
Equity, at fair value		4,996			286			297			287			254
		2,860,741			2,814,983			2,659,661			2,701,647			2,932,201
Loans held for sale		979,875			818,328			858,665			933,724			1,264,437
Loans held for investment, net of unearned income		8,061,204			7,966,777			7,950,551			7,979,630			8,173,520
Allowance for credit losses		(97,961	)		(106,197	)		(101,116	)		(110,918	)		(115,082	)
Loans held for investment, net		7,963,243			7,860,580			7,849,435			7,868,712			8,058,438

Broker-dealer and clearing organization receivables		1,469,628			1,450,077			1,452,366			1,220,784			1,297,175
Premises and equipment, net		139,179			143,957			148,245			157,803			161,746
Operating lease right-of-use assets		88,050			93,451			90,563			92,041			93,994
Mortgage servicing assets		7,887			6,903			5,723			45,742			52,902
Other assets		455,930			459,774			470,073			528,839			517,811
Goodwill		267,447			267,447			267,447			267,447			267,447
Other intangible assets, net		6,119			6,376			6,633			6,995			7,429
Total assets	$	15,362,273		$	15,812,699		$	16,268,129		$	15,926,405		$	15,620,490

Deposits:
Noninterest-bearing	$	2,790,958		$	2,859,828		$	2,768,707		$	2,831,539		$	2,845,441
Interest-bearing		7,600,599			7,972,138			8,296,615			7,959,908			7,528,415
Total deposits		10,391,557			10,831,966			11,065,322			10,791,447			10,373,856
Broker-dealer and clearing organization payables		1,461,683			1,446,886			1,331,902			1,110,373			1,285,226
Short-term borrowings		734,508			705,008			834,023			914,645			897,613
Securities sold, not yet purchased, at fair value		59,766			63,171			57,234			47,773			75,546
Notes payable		148,475			198,043			347,667			347,533			347,402
Operating lease liabilities		104,972			110,815			109,103			110,799			113,096
Other liabilities		234,467			227,988			304,566			397,976			365,140
Total liabilities		13,135,428			13,583,877			14,049,817			13,720,546			13,457,879

Common stock		630			642			650			650			650
Additional paid-in capital		1,022,474			1,037,138			1,052,219			1,050,497			1,047,523
Accumulated other comprehensive loss		(94,748	)		(100,654	)		(111,497	)		(98,168	)		(119,171	)
Retained earnings		1,270,286			1,262,586			1,248,593			1,224,117			1,205,467
Deferred compensation employee stock trust, net		—			—			—			—			1
Employee stock trust		—			—			—			—			(1	)
Total Hilltop stockholders’ equity		2,198,642			2,199,712			2,189,965			2,177,096			2,134,469
Noncontrolling interests		28,203			29,110			28,347			28,763			28,142
Total stockholders’ equity		2,226,845			2,228,822			2,218,312			2,205,859			2,162,611
Total liabilities & stockholders’ equity	$	15,362,273		$	15,812,699		$	16,268,129		$	15,926,405		$	15,620,490

________________________________________
(1)	At June 30, 2025, the amortized cost of the available for sale securities portfolio was $1,488,368, while the fair value of the held to maturity securities portfolio was $704,035.


	Three Months Ended
Consolidated Income Statements	June 30,			March 31,		December 31,			September 30,			June 30,
(in 000’s, except per share data)	2025			2025		2024			2024			2024
Interest income:
Loans, including fees	$	131,793		$	124,692	$	131,726		$	139,821		$	138,627
Securities borrowed		20,544			15,809		17,492			19,426			20,306
Securities:
Taxable		25,811			24,782		29,212			26,265			25,289
Tax-exempt		3,087			2,613		2,944			2,438			2,389
Other		15,946			24,903		27,216			23,092			20,532
Total interest income		197,181			192,799		208,590			211,042			207,143

Interest expense:
Deposits		57,056			60,051		67,411			70,641			68,095
Securities loaned		17,662			14,736		16,407			18,499			18,669
Short-term borrowings		7,694			8,103		10,992			10,878			10,676
Notes payable		3,106			3,653		3,910			3,555			3,604
Other		989			1,139		4,386			2,426			2,449
Total interest expense		86,507			87,682		103,106			105,999			103,493

Net interest income		110,674			105,117		105,484			105,043			103,650
Provision for (reversal of) credit losses		(7,340	)		9,338		(5,852	)		(1,270	)		10,934
Net interest income after provision for (reversal of) credit losses		118,014			95,779		111,336			106,313			92,716

Noninterest income:
Net gains from sale of loans and other mortgage production income		51,945			45,281		43,553			47,816			58,455
Mortgage loan origination fees		28,738			22,451		30,111			32,119			34,398
Securities commissions and fees		33,041			33,728		35,338			30,434			29,510
Investment and securities advisory fees and commissions		43,730			36,628		37,514			42,220			32,992
Other		35,180			75,252		49,074			47,854			37,950
Total noninterest income		192,634			213,340		195,590			200,443			193,305

Noninterest expense:
Employees’ compensation and benefits		176,410			176,240		173,334			177,987			169,998
Occupancy and equipment, net		21,064			19,782		25,707			22,317			21,297
Professional services		10,820			4,114		12,791			11,645			10,270
Other		52,882			51,337		50,925			52,363			54,899
Total noninterest expense		261,176			251,473		262,757			264,312			256,464

Income before income taxes		49,472			57,646		44,169			42,444			29,557
Income tax expense		11,583			13,114		6,285			9,539			6,658
Net income		37,889			44,532		37,884			32,905			22,899
Less: Net income attributable to noncontrolling interest		1,816			2,416		2,365			3,212			2,566
Income attributable to Hilltop	$	36,073		$	42,116	$	35,519		$	29,693		$	20,333

Earnings per common share:
Basic	$	0.57		$	0.65	$	0.55		$	0.46		$	0.31
Diluted	$	0.57		$	0.65	$	0.55		$	0.46		$	0.31

Cash dividends declared per common share	$	0.18		$	0.18	$	0.17		$	0.17		$	0.17

Weighted average shares outstanding:
Basic		63,637			64,613		64,935			64,928			65,085
Diluted		63,638			64,615		64,943			64,946			65,086


	Three Months Ended June 30, 2025
Segment Results						Mortgage						All Other and			Hilltop
(in 000’s)	Banking			Broker-Dealer		Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	94,919		$	13,151	$	(2,302	)	$	(166	)	$	5,072		$	110,674
Provision for (reversal of) credit losses		(7,343	)		3		—			—			—			(7,340	)
Noninterest income		11,892			96,502		90,248			(628	)		(5,380	)		192,634
Noninterest expense		59,226			103,253		84,736			14,285			(324	)		261,176
Income (loss) before taxes	$	54,928		$	6,397	$	3,210		$	(15,079	)	$	16		$	49,472


	Six Months Ended June 30, 2025
Segment Results						Mortgage						All Other and			Hilltop
(in 000’s)	Banking		Broker-Dealer			Origination			Corporate			Eliminations			Consolidated
Net interest income (expense)	$	185,469	$	24,719		$	(3,699	)	$	(1,035	)	$	10,337		$	215,791
Provision for (reversal of) credit losses		2,029		(31	)		—			—			—			1,998
Noninterest income		22,702		193,439			158,023			42,751			(10,941	)		405,974
Noninterest expense		111,156		202,576			159,396			40,176			(655	)		512,649
Income (loss) before taxes	$	94,986	$	15,613		$	(5,072	)	$	1,540		$	51		$	107,118


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
Selected Financial Data	2025			2025			2024			2024			2024

Hilltop Consolidated:
Return on average stockholders’ equity		6.62	%		7.82	%		6.50	%		5.51	%		3.84	%
Return on average assets		0.98	%		1.13	%		0.92	%		0.84	%		0.59	%
Net interest margin ⁽¹⁾		3.01	%		2.84	%		2.72	%		2.84	%		2.90	%
Net interest margin (taxable equivalent) ⁽²⁾:
As reported		3.04	%		2.86	%		2.74	%		2.85	%		2.92	%
Impact of purchase accounting		2 bps			4 bps			3 bps			2 bps			6 bps
Book value per common share ($)		34.90			34.29			33.71			33.51			32.86
Shares outstanding, end of period (000’s)		63,001			64,154			64,968			64,960			64,953
Dividend payout ratio ⁽³⁾		31.75	%		27.62	%		31.08	%		37.17	%		54.42	%

Banking Segment:
Net interest margin ⁽¹⁾		3.16	%		2.97	%		2.98	%		3.05	%		3.10	%
Net interest margin (taxable equivalent)⁽²⁾:
As reported		3.17	%		2.97	%		2.99	%		3.06	%		3.10	%
Impact of purchase accounting		3 bps			3 bps			4 bps			3 bps			7 bps
Accretion of discount on loans ($000’s)		586			1,045			1,076			737			1,945
Net recoveries (charge-offs) ($000’s)		(896	)		(4,257	)		(3,950	)		(2,894	)		(83	)
Return on average assets		1.35	%		0.96	%		1.24	%		1.14	%		0.81	%
Fee income ratio		11.1	%		10.7	%		10.7	%		10.3	%		9.1	%
Efficiency ratio		55.4	%		51.2	%		57.8	%		55.2	%		57.0	%
Employees’ compensation and benefits ($000’s)		32,146			34,102			33,313			31,920			33,352

Broker-Dealer Segment:
Net revenue ($000’s) ⁽⁴⁾		109,653			108,505			126,367			124,258			104,271
Employees’ compensation and benefits ($000’s)		73,493			68,064			75,150			75,912			66,181
Variable compensation expense ($000’s)		36,172			33,283			42,484			42,569			32,734
Compensation as a % of net revenue		67.0	%		62.7	%		59.5	%		61.1	%		63.5	%
Pre-tax margin ⁽⁵⁾		5.8	%		8.5	%		16.1	%		13.7	%		6.9	%

Mortgage Origination Segment:
Mortgage loan originations – volume ($000’s):
Home purchases		2,168,690			1,528,560			1,909,706			2,096,009			2,205,157
Refinancings		263,829			213,781			343,400			211,454			174,141
Total mortgage loan originations – volume		2,432,519			1,742,341			2,253,106			2,307,463			2,379,298
Mortgage loan sales – volume ($000’s)		2,135,291			1,744,555			2,065,356			2,569,678			1,838,841
Net gains from mortgage loan sales (basis points):
Loans sold to third parties		223			222			217			218			223
Broker fee income ⁽⁶⁾		10			10			9			6			10
Impact of loans retained by banking segment		(5	)		(8	)		(5	)		0			(5	)
As reported		228			224			221			224			228
Mortgage servicing rights asset ($000’s) ⁽⁷⁾		7,887			6,903			5,723			45,742			52,902
Employees’ compensation and benefits ($000’s)		62,214			53,339			56,402			60,573			61,624
Variable compensation expense ($000’s)		34,975			24,832			30,784			33,862			34,886

________________________________________
(1)	Net interest margin is defined as net interest income divided by average interest-earning assets.
(2)	Net interest margin (taxable equivalent), a non-GAAP measure, is defined as taxable equivalent net interest income divided by average interest-earning assets. Taxable equivalent adjustments are based on the applicable 21% federal income tax rate for all periods presented. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. The taxable equivalent adjustments to interest income for Hilltop (consolidated) were $0.8 million, $0.6 million, $0.7 million, $0.6 million and $0.6 million, respectively, for the periods presented and for the banking segment were $0.1 million, $0.2 million, $0.2 million, $0.2 million and $0.1 million, respectively, for the periods presented.
(3)	Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share.
(4)	Net revenue is defined as the sum of total broker-dealer net interest income and total broker-dealer noninterest income.
(5)	Pre-tax margin is defined as income before income taxes divided by net revenue.
(6)	Broker fee income is earned by the mortgage origination segment for facilitating mortgage loan transactions between PrimeLending customers and third-party mortgage lenders when the requested loan products are not offered by PrimeLending.
(7)	Reported on a consolidated basis and therefore does not include mortgage servicing rights assets related to loans serviced for the banking segment, which are eliminated in consolidation.


	June 30,			March 31,			December 31,			September 30,			June 30,
Capital Ratios	2025			2025			2024			2024			2024
Tier 1 capital (to average assets):
PlainsCapital		10.71	%		10.22	%		9.99	%		10.34	%		11.36	%
Hilltop		13.11	%		12.86	%		12.57	%		12.95	%		12.87	%
Common equity Tier 1 capital (to risk-weighted assets):
PlainsCapital		15.08	%		15.06	%		15.35	%		14.94	%		15.58	%
Hilltop		20.74	%		21.17	%		21.23	%		20.48	%		19.45	%
Tier 1 capital (to risk-weighted assets):
PlainsCapital		15.08	%		15.06	%		15.35	%		14.94	%		15.58	%
Hilltop		20.74	%		21.17	%		21.23	%		20.48	%		19.45	%
Total capital (to risk-weighted assets):
PlainsCapital		16.29	%		16.31	%		16.54	%		16.13	%		16.77	%
Hilltop		23.38	%		24.45	%		24.40	%		23.68	%		22.57	%


	June 30,			March 31,			December 31,			September 30,			June 30,
Non-Performing Assets Portfolio Data	2025			2025			2024			2024			2024
Loans accounted for on a non-accrual basis ($000’s):
Commercial real estate:
Non-owner occupied	$	4,107		$	4,241		$	7,166		$	8,042		$	6,894
Owner occupied		6,429			6,535			6,092			2,410			6,437
Commercial and industrial		40,990			51,987			59,025			66,929			80,755
Construction and land development		3,667			3,256			3,003			2,682			485
1-4 family residential		17,550			15,458			12,863			11,123			11,092
Consumer		—			—			—			—			1
Broker-dealer		—			—			—			—			—
Non-accrual loans ($000’s)	$	72,743		$	81,477		$	88,149		$	91,186		$	105,664

Non-accrual loans as a % of total loans		0.80	%		0.93	%		1.00	%		1.02	%		1.12	%

Other real estate owned ($000’s)		9,144			7,682			2,848			2,744			2,973

Other repossessed assets ($000’s)		—			—			98			413			464

Non-performing assets ($000’s)		81,887			89,159			91,095			94,343			109,101

Non-performing assets as a % of total assets		0.53	%		0.56	%		0.56	%		0.59	%		0.70	%

Loans past due 90 days or more and still accruing ($000’s) ⁽¹⁾		28,378			24,145			22,090			140,763			122,451

Contacts

Investor Relations Contact:

Matt Dunn

214-525-4636

[email protected]

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Author

Business Wire

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Business Wire 24 July 2025

13 minutes read

Author

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