DALLAS–(BUSINESS WIRE)–Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the third quarter of 2025. Hilltop produced income to common stockholders of $45.8 million, or $0.74 per diluted share, for the third quarter of 2025, compared to $29.7 million, or $0.46 per diluted share, for the third quarter of 2024. Hilltop’s financial results for the third quarter, compared with the same period in 2024, primarily included increases in the reversal of credit losses and net interest income and a decrease in noninterest expense within the banking segment, net revenues and noninterest expenses increased within the broker-dealer segment, and the mortgage origination segment had declines in noninterest income, noninterest expense and net interest expense.
Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per common share payable on November 21, 2025, to all common stockholders of record as of the close of business on November 7, 2025. Additionally, during the third quarter of 2025, Hilltop paid $55.1 million to repurchase an aggregate of 1,701,274 shares of its common stock at an average price of $32.36 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 October 2025, the Hilltop Board of Directors authorized an increase to the aggregate amount of common stock that Hilltop may repurchase under the aforementioned stock repurchase program to $185.0 million, an increase of $50.0 million. As a result of share repurchases during 2025, Hilltop has approximately $62 million of available share repurchase capacity 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, “Hilltop delivered a 1.2% return on average assets during the third quarter on net income of $46 million. Within PlainsCapital Bank, strong core loan and deposit growth on a linked-quarter basis, along with healthy net interest margin expansion, generated $55 million in pre-tax income during the third quarter. A dampened summer home-buying market weighed down PrimeLending’s operating results as the company produced a pre-tax loss of $7 million on flat year-over-year origination volumes and depressed origination fees. We continue to actively manage down fixed expenses within our mortgage origination business. Additionally, robust results within all business lines at HilltopSecurities resulted in a pre-tax margin of 18% on net revenues of $144 million.
“Further, Hilltop Holdings returned $66 million to stockholders via $11 million in quarterly dividends and $55 million in repurchases of Hilltop shares. As we close out 2025, we are working diligently to implement and execute strategic plans for 2026 that will continue to prioritize serving our clients and creating long-term stockholder value.”
Third Quarter 2025 Highlights for Hilltop:
-
The reversal of credit losses was $2.5 million during the third quarter of 2025, compared to a reversal of credit losses of $7.3 million in the second quarter of 2025 and a reversal of credit losses of $1.3 million in the third quarter of 2024;
- The reversal of credit losses during the third quarter of 2025 was primarily driven by changes in the U.S. economic outlook associated with collectively evaluated loans and loan portfolio changes, including changes in loan mix and risk rating grade migration, within the banking segment, partially offset by a build in the allowance related to specific reserves, since the prior quarter.
-
For the third quarter of 2025, net gains from sale of loans and other mortgage production income and mortgage loan origination fees was $76.6 million, compared to $79.9 million in the third quarter of 2024, a 4.2% decrease;
- Mortgage loan origination production volume was $2.3 billion during the third quarter of 2025, compared to $2.3 billion during the third quarter of 2024;
- Net gains from mortgage loans sold to third parties, including broker fee income, increased to 239 basis points during the third quarter of 2025, compared to 233 basis points in the second quarter of 2025.
- Hilltop’s consolidated annualized return on average assets and return on average stockholders’ equity for the third quarter of 2025 were 1.20% and 8.35%, respectively, compared to 0.84% and 5.51%, respectively, for the third quarter of 2024;
- Hilltop’s book value per common share increased to $35.69 at September 30, 2025, compared to $34.90 at June 30, 2025;
- Hilltop’s total assets were $15.6 billion and $15.4 billion at September 30, 2025 and June 30, 2025, respectively;
- Loans1, net of allowance for credit losses, were $7.8 billion and $7.6 billion at September 30, 2025 and June 30, 2025, respectively;
- Non-accrual loans were $68.3 million, or 0.75% of total loans, at September 30, 2025, compared to $72.7 million, or 0.80% of total loans, at June 30, 2025;
- Loans held for sale decreased by 13.3% from June 30, 2025 to $849.4 million at September 30, 2025;
-
Total deposits were $10.7 billion and $10.4 billion at September 30, 2025 and June 30, 2025, respectively;
- Total estimated uninsured deposits were $5.7 billion, or approximately 54% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $592.1 million and internal accounts of $370.2 million, were $4.8 billion, or approximately 45% of total deposits, at September 30, 2025.
- Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio2 of 13.13% and a Common Equity Tier 1 Capital Ratio of 20.33% at September 30, 2025;
- Hilltop’s consolidated net interest margin3 increased to 3.06% for the third quarter of 2025, compared to 3.01% in the second quarter of 2025;
- For the third quarter of 2025, noninterest income was $217.8 million, compared to $200.4 million in the third quarter of 2024, an 8.7% increase;
- For the third quarter of 2025, noninterest expense was $271.9 million, compared to $264.3 million in the third quarter of 2024, a 2.9% increase; and
-
Hilltop’s effective tax rate was 23.2% during the third quarter of 2025, compared to 22.5% during the same period in 2024.
- The effective tax rate for the third 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.
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____________________ |
|
|
1 |
“Loans” reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $325.3 million and $329.4 million at September 30, 2025 and June 30, 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 |
||||||||||||||||||||
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|||||
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Consolidated Balance Sheets |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
Cash and due from banks |
|
$ |
1,277,283 |
|
|
$ |
982,488 |
|
|
$ |
1,702,623 |
|
|
$ |
2,298,977 |
|
|
$ |
1,961,627 |
|
|
Federal funds sold |
|
|
650 |
|
|
|
650 |
|
|
|
650 |
|
|
|
650 |
|
|
|
3,650 |
|
|
Assets segregated for regulatory purposes |
|
|
5,050 |
|
|
|
47,158 |
|
|
|
88,451 |
|
|
|
70,963 |
|
|
|
55,628 |
|
|
Securities purchased under agreements to resell |
|
|
78,909 |
|
|
|
93,878 |
|
|
|
99,099 |
|
|
|
88,728 |
|
|
|
81,766 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Trading, at fair value |
|
|
574,434 |
|
|
|
675,757 |
|
|
|
647,158 |
|
|
|
524,916 |
|
|
|
540,836 |
|
|
Available for sale, at fair value, net (1) |
|
|
1,443,612 |
|
|
|
1,408,347 |
|
|
|
1,405,170 |
|
|
|
1,396,549 |
|
|
|
1,405,700 |
|
|
Held to maturity, at amortized cost, net (1) |
|
|
755,012 |
|
|
|
771,641 |
|
|
|
762,369 |
|
|
|
737,899 |
|
|
|
754,824 |
|
|
Equity, at fair value |
|
|
248 |
|
|
|
4,996 |
|
|
|
286 |
|
|
|
297 |
|
|
|
287 |
|
|
|
|
|
2,773,306 |
|
|
|
2,860,741 |
|
|
|
2,814,983 |
|
|
|
2,659,661 |
|
|
|
2,701,647 |
|
|
Loans held for sale |
|
|
849,357 |
|
|
|
979,875 |
|
|
|
818,328 |
|
|
|
858,665 |
|
|
|
933,724 |
|
|
Loans held for investment, net of unearned income |
|
|
8,227,194 |
|
|
|
8,061,204 |
|
|
|
7,966,777 |
|
|
|
7,950,551 |
|
|
|
7,979,630 |
|
|
Allowance for credit losses |
|
|
(95,168 |
) |
|
|
(97,961 |
) |
|
|
(106,197 |
) |
|
|
(101,116 |
) |
|
|
(110,918 |
) |
|
Loans held for investment, net |
|
|
8,132,026 |
|
|
|
7,963,243 |
|
|
|
7,860,580 |
|
|
|
7,849,435 |
|
|
|
7,868,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
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Broker-dealer and clearing organization receivables |
|
|
1,519,005 |
|
|
|
1,469,628 |
|
|
|
1,450,077 |
|
|
|
1,452,366 |
|
|
|
1,220,784 |
|
|
Premises and equipment, net |
|
|
136,830 |
|
|
|
139,179 |
|
|
|
143,957 |
|
|
|
148,245 |
|
|
|
157,803 |
|
|
Operating lease right-of-use assets |
|
|
87,464 |
|
|
|
88,050 |
|
|
|
93,451 |
|
|
|
90,563 |
|
|
|
92,041 |
|
|
Mortgage servicing assets |
|
|
12,273 |
|
|
|
7,887 |
|
|
|
6,903 |
|
|
|
5,723 |
|
|
|
45,742 |
|
|
Other assets |
|
|
459,588 |
|
|
|
455,930 |
|
|
|
459,774 |
|
|
|
470,073 |
|
|
|
528,839 |
|
|
Goodwill |
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
|
|
267,447 |
|
|
Other intangible assets, net |
|
|
5,862 |
|
|
|
6,119 |
|
|
|
6,376 |
|
|
|
6,633 |
|
|
|
6,995 |
|
|
Total assets |
|
$ |
15,605,050 |
|
|
$ |
15,362,273 |
|
|
$ |
15,812,699 |
|
|
$ |
16,268,129 |
|
|
$ |
15,926,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Noninterest-bearing |
|
$ |
2,766,155 |
|
|
$ |
2,790,958 |
|
|
$ |
2,859,828 |
|
|
$ |
2,768,707 |
|
|
$ |
2,831,539 |
|
|
Interest-bearing |
|
|
7,909,316 |
|
|
|
7,600,599 |
|
|
|
7,972,138 |
|
|
|
8,296,615 |
|
|
|
7,959,908 |
|
|
Total deposits |
|
|
10,675,471 |
|
|
|
10,391,557 |
|
|
|
10,831,966 |
|
|
|
11,065,322 |
|
|
|
10,791,447 |
|
|
Broker-dealer and clearing organization payables |
|
|
1,445,280 |
|
|
|
1,461,683 |
|
|
|
1,446,886 |
|
|
|
1,331,902 |
|
|
|
1,110,373 |
|
|
Short-term borrowings |
|
|
680,979 |
|
|
|
734,508 |
|
|
|
705,008 |
|
|
|
834,023 |
|
|
|
914,645 |
|
|
Securities sold, not yet purchased, at fair value |
|
|
65,119 |
|
|
|
59,766 |
|
|
|
63,171 |
|
|
|
57,234 |
|
|
|
47,773 |
|
|
Notes payable |
|
|
148,530 |
|
|
|
148,475 |
|
|
|
198,043 |
|
|
|
347,667 |
|
|
|
347,533 |
|
|
Operating lease liabilities |
|
|
104,134 |
|
|
|
104,972 |
|
|
|
110,815 |
|
|
|
109,103 |
|
|
|
110,799 |
|
|
Other liabilities |
|
|
269,297 |
|
|
|
234,467 |
|
|
|
227,988 |
|
|
|
304,566 |
|
|
|
397,976 |
|
|
Total liabilities |
|
|
13,388,810 |
|
|
|
13,135,428 |
|
|
|
13,583,877 |
|
|
|
14,049,817 |
|
|
|
13,720,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common stock |
|
|
613 |
|
|
|
630 |
|
|
|
642 |
|
|
|
650 |
|
|
|
650 |
|
|
Additional paid-in capital |
|
|
998,644 |
|
|
|
1,022,474 |
|
|
|
1,037,138 |
|
|
|
1,052,219 |
|
|
|
1,050,497 |
|
|
Accumulated other comprehensive loss |
|
|
(87,254 |
) |
|
|
(94,748 |
) |
|
|
(100,654 |
) |
|
|
(111,497 |
) |
|
|
(98,168 |
) |
|
Retained earnings |
|
|
1,276,539 |
|
|
|
1,270,286 |
|
|
|
1,262,586 |
|
|
|
1,248,593 |
|
|
|
1,224,117 |
|
|
Total Hilltop stockholders’ equity |
|
|
2,188,542 |
|
|
|
2,198,642 |
|
|
|
2,199,712 |
|
|
|
2,189,965 |
|
|
|
2,177,096 |
|
|
Noncontrolling interests |
|
|
27,698 |
|
|
|
28,203 |
|
|
|
29,110 |
|
|
|
28,347 |
|
|
|
28,763 |
|
|
Total stockholders’ equity |
|
|
2,216,240 |
|
|
|
2,226,845 |
|
|
|
2,228,822 |
|
|
|
2,218,312 |
|
|
|
2,205,859 |
|
|
Total liabilities & stockholders’ equity |
|
$ |
15,605,050 |
|
|
$ |
15,362,273 |
|
|
$ |
15,812,699 |
|
|
$ |
16,268,129 |
|
|
$ |
15,926,405 |
|
|
____________________ |
|
|
(1) |
At September 30, 2025, the amortized cost of the available for sale securities portfolio was $1,514,825, while the fair value of the held to maturity securities portfolio was $696,835. |
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|
|
Three Months Ended |
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|
Consolidated Income Statements |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loans, including fees |
|
$ |
135,773 |
|
|
$ |
131,793 |
|
|
$ |
124,692 |
|
$ |
131,726 |
|
|
$ |
139,821 |
|
|
Securities borrowed |
|
|
21,175 |
|
|
|
20,544 |
|
|
|
15,809 |
|
|
17,492 |
|
|
|
19,426 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Taxable |
|
|
25,452 |
|
|
|
25,811 |
|
|
|
24,782 |
|
|
29,212 |
|
|
|
26,265 |
|
|
Tax-exempt |
|
|
3,512 |
|
|
|
3,087 |
|
|
|
2,613 |
|
|
2,944 |
|
|
|
2,438 |
|
|
Other |
|
|
14,349 |
|
|
|
15,946 |
|
|
|
24,903 |
|
|
27,216 |
|
|
|
23,092 |
|
|
Total interest income |
|
|
200,261 |
|
|
|
197,181 |
|
|
|
192,799 |
|
|
208,590 |
|
|
|
211,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Deposits |
|
|
57,001 |
|
|
|
57,056 |
|
|
|
60,051 |
|
|
67,411 |
|
|
|
70,641 |
|
|
Securities loaned |
|
|
19,430 |
|
|
|
17,662 |
|
|
|
14,736 |
|
|
16,407 |
|
|
|
18,499 |
|
|
Short-term borrowings |
|
|
7,867 |
|
|
|
7,694 |
|
|
|
8,103 |
|
|
10,992 |
|
|
|
10,878 |
|
|
Notes payable |
|
|
2,404 |
|
|
|
3,106 |
|
|
|
3,653 |
|
|
3,910 |
|
|
|
3,555 |
|
|
Other |
|
|
1,171 |
|
|
|
989 |
|
|
|
1,139 |
|
|
4,386 |
|
|
|
2,426 |
|
|
Total interest expense |
|
|
87,873 |
|
|
|
86,507 |
|
|
|
87,682 |
|
|
103,106 |
|
|
|
105,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net interest income |
|
|
112,388 |
|
|
|
110,674 |
|
|
|
105,117 |
|
|
105,484 |
|
|
|
105,043 |
|
|
Provision for (reversal of) credit losses |
|
|
(2,511 |
) |
|
|
(7,340 |
) |
|
|
9,338 |
|
|
(5,852 |
) |
|
|
(1,270 |
) |
|
Net interest income after provision for (reversal of) credit losses |
|
|
114,899 |
|
|
|
118,014 |
|
|
|
95,779 |
|
|
111,336 |
|
|
|
106,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net gains from sale of loans and other mortgage production income |
|
|
51,730 |
|
|
|
51,945 |
|
|
|
45,281 |
|
|
43,553 |
|
|
|
47,816 |
|
|
Mortgage loan origination fees |
|
|
24,850 |
|
|
|
28,738 |
|
|
|
22,451 |
|
|
30,111 |
|
|
|
32,119 |
|
|
Securities commissions and fees |
|
|
38,719 |
|
|
|
33,041 |
|
|
|
33,728 |
|
|
35,338 |
|
|
|
30,434 |
|
|
Investment and securities advisory fees and commissions |
|
|
53,349 |
|
|
|
43,730 |
|
|
|
36,628 |
|
|
37,514 |
|
|
|
42,220 |
|
|
Other |
|
|
49,159 |
|
|
|
35,180 |
|
|
|
75,252 |
|
|
49,074 |
|
|
|
47,854 |
|
|
Total noninterest income |
|
|
217,807 |
|
|
|
192,634 |
|
|
|
213,340 |
|
|
195,590 |
|
|
|
200,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Employees’ compensation and benefits |
|
|
190,027 |
|
|
|
176,410 |
|
|
|
176,240 |
|
|
173,334 |
|
|
|
177,987 |
|
|
Occupancy and equipment, net |
|
|
19,930 |
|
|
|
21,064 |
|
|
|
19,782 |
|
|
25,707 |
|
|
|
22,317 |
|
|
Professional services |
|
|
12,681 |
|
|
|
10,820 |
|
|
|
4,114 |
|
|
12,791 |
|
|
|
11,645 |
|
|
Other |
|
|
49,265 |
|
|
|
52,882 |
|
|
|
51,337 |
|
|
50,925 |
|
|
|
52,363 |
|
|
Total noninterest expense |
|
|
271,903 |
|
|
|
261,176 |
|
|
|
251,473 |
|
|
262,757 |
|
|
|
264,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income before income taxes |
|
|
60,803 |
|
|
|
49,472 |
|
|
|
57,646 |
|
|
44,169 |
|
|
|
42,444 |
|
|
Income tax expense |
|
|
14,129 |
|
|
|
11,583 |
|
|
|
13,114 |
|
|
6,285 |
|
|
|
9,539 |
|
|
Net income |
|
|
46,674 |
|
|
|
37,889 |
|
|
|
44,532 |
|
|
37,884 |
|
|
|
32,905 |
|
|
Less: Net income attributable to noncontrolling interest |
|
|
856 |
|
|
|
1,816 |
|
|
|
2,416 |
|
|
2,365 |
|
|
|
3,212 |
|
|
Income attributable to Hilltop |
|
$ |
45,818 |
|
|
$ |
36,073 |
|
|
$ |
42,116 |
|
$ |
35,519 |
|
|
$ |
29,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
0.74 |
|
|
$ |
0.57 |
|
|
$ |
0.65 |
|
$ |
0.55 |
|
|
$ |
0.46 |
|
|
Diluted |
|
$ |
0.74 |
|
|
$ |
0.57 |
|
|
$ |
0.65 |
|
$ |
0.55 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash dividends declared per common share |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
|
62,146 |
|
|
|
63,637 |
|
|
|
64,613 |
|
|
64,935 |
|
|
|
64,928 |
|
|
Diluted |
|
|
62,168 |
|
|
|
63,638 |
|
|
|
64,615 |
|
|
64,943 |
|
|
|
64,946 |
|
|
|
|
Three Months Ended September 30, 2025 |
|||||||||||||||||||||
|
Segment Results |
|
Banking |
|
Broker-Dealer |
|
Mortgage |
|
Corporate |
|
All Other and |
|
Hilltop |
|||||||||||
|
Net interest income (expense) |
|
$ |
96,846 |
|
|
$ |
12,662 |
|
$ |
(2,051 |
) |
|
$ |
443 |
|
|
$ |
4,488 |
|
|
$ |
112,388 |
|
|
Provision for (reversal of) credit losses |
|
|
(2,621 |
) |
|
|
110 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,511 |
) |
|
Noninterest income |
|
|
11,001 |
|
|
|
131,832 |
|
|
76,608 |
|
|
|
3,081 |
|
|
|
(4,715 |
) |
|
|
217,807 |
|
|
Noninterest expense |
|
|
55,778 |
|
|
|
117,912 |
|
|
81,791 |
|
|
|
16,672 |
|
|
|
(250 |
) |
|
|
271,903 |
|
|
Income (loss) before taxes |
|
$ |
54,690 |
|
|
$ |
26,472 |
|
$ |
(7,234 |
) |
|
$ |
(13,148 |
) |
|
$ |
23 |
|
|
$ |
60,803 |
|
|
|
|
Nine Months Ended September 30, 2025 |
|||||||||||||||||||||
|
Segment Results |
|
Banking |
|
Broker-Dealer |
|
Mortgage |
|
Corporate |
|
All Other and |
|
Hilltop |
|||||||||||
|
(in 000’s) |
|
||||||||||||||||||||||
|
Net interest income (expense) |
|
$ |
282,315 |
|
|
$ |
37,381 |
|
$ |
(5,749 |
) |
|
$ |
(592 |
) |
|
$ |
14,824 |
|
|
$ |
328,179 |
|
|
Provision for (reversal of) credit losses |
|
|
(592 |
) |
|
|
79 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(513 |
) |
|
Noninterest income |
|
|
33,703 |
|
|
|
325,271 |
|
|
234,631 |
|
|
|
45,832 |
|
|
|
(15,656 |
) |
|
|
623,781 |
|
|
Noninterest expense |
|
|
166,934 |
|
|
|
320,488 |
|
|
241,187 |
|
|
|
56,848 |
|
|
|
(905 |
) |
|
|
784,552 |
|
|
Income (loss) before taxes |
|
$ |
149,676 |
|
|
$ |
42,085 |
|
$ |
(12,305 |
) |
|
$ |
(11,608 |
) |
|
$ |
73 |
|
|
$ |
167,921 |
|
|
|
|
Three Months Ended |
||||||||||||||||||
|
Selected Financial Data |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Hilltop Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Return on average stockholders’ equity |
|
|
8.35 |
% |
|
|
6.62 |
% |
|
|
7.82 |
% |
|
|
6.50 |
% |
|
|
5.51 |
% |
|
Return on average assets |
|
|
1.20 |
% |
|
|
0.98 |
% |
|
|
1.13 |
% |
|
|
0.92 |
% |
|
|
0.84 |
% |
|
Net interest margin (1) |
|
|
3.06 |
% |
|
|
3.01 |
% |
|
|
2.84 |
% |
|
|
2.72 |
% |
|
|
2.84 |
% |
|
Net interest margin (taxable equivalent) (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
As reported |
|
|
3.09 |
% |
|
|
3.04 |
% |
|
|
2.86 |
% |
|
|
2.74 |
% |
|
|
2.85 |
% |
|
Impact of purchase accounting |
|
|
2 bps |
|
|
2 bps |
|
|
4 bps |
|
|
3 bps |
|
|
2 bps |
|||||
|
Book value per common share ($) |
|
|
35.69 |
|
|
|
34.90 |
|
|
|
34.29 |
|
|
|
33.71 |
|
|
|
33.51 |
|
|
Shares outstanding, end of period (000’s) |
|
|
61,326 |
|
|
|
63,001 |
|
|
|
64,154 |
|
|
|
64,968 |
|
|
|
64,960 |
|
|
Dividend payout ratio (3) |
|
|
24.41 |
% |
|
|
31.75 |
% |
|
|
27.62 |
% |
|
|
31.08 |
% |
|
|
37.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Banking Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net interest margin (1) |
|
|
3.23 |
% |
|
|
3.16 |
% |
|
|
2.97 |
% |
|
|
2.98 |
% |
|
|
3.05 |
% |
|
Net interest margin (taxable equivalent) (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
As reported |
|
|
3.23 |
% |
|
|
3.17 |
% |
|
|
2.97 |
% |
|
|
2.99 |
% |
|
|
3.06 |
% |
|
Impact of purchase accounting |
|
|
2 bps |
|
|
3 bps |
|
|
3 bps |
|
|
4 bps |
|
|
3 bps |
|||||
|
Accretion of discount on loans ($000’s) |
|
|
559 |
|
|
|
586 |
|
|
|
1,045 |
|
|
|
1,076 |
|
|
|
737 |
|
|
Net recoveries (charge-offs) ($000’s) |
|
|
(282 |
) |
|
|
(896 |
) |
|
|
(4,257 |
) |
|
|
(3,950 |
) |
|
|
(2,894 |
) |
|
Return on average assets |
|
|
1.34 |
% |
|
|
1.35 |
% |
|
|
0.96 |
% |
|
|
1.24 |
% |
|
|
1.14 |
% |
|
Fee income ratio |
|
|
10.2 |
% |
|
|
11.1 |
% |
|
|
10.7 |
% |
|
|
10.7 |
% |
|
|
10.3 |
% |
|
Efficiency ratio |
|
|
51.7 |
% |
|
|
55.4 |
% |
|
|
51.2 |
% |
|
|
57.8 |
% |
|
|
55.2 |
% |
|
Employees’ compensation and benefits ($000’s) |
|
|
31,925 |
|
|
|
32,146 |
|
|
|
34,102 |
|
|
|
33,313 |
|
|
|
31,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Broker-Dealer Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net revenue ($000’s) (4) |
|
|
144,494 |
|
|
|
109,653 |
|
|
|
108,505 |
|
|
|
126,367 |
|
|
|
124,258 |
|
|
Employees’ compensation and benefits ($000’s) |
|
|
86,997 |
|
|
|
73,493 |
|
|
|
68,064 |
|
|
|
75,150 |
|
|
|
75,912 |
|
|
Variable compensation expense ($000’s) |
|
|
50,756 |
|
|
|
36,172 |
|
|
|
33,283 |
|
|
|
42,484 |
|
|
|
42,569 |
|
|
Compensation as a % of net revenue |
|
|
60.2 |
% |
|
|
67.0 |
% |
|
|
62.7 |
% |
|
|
59.5 |
% |
|
|
61.1 |
% |
|
Pre-tax margin (5) |
|
|
18.3 |
% |
|
|
5.8 |
% |
|
|
8.5 |
% |
|
|
16.1 |
% |
|
|
13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Mortgage Origination Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Mortgage loan originations – volume ($000’s): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Home purchases |
|
|
2,027,568 |
|
|
|
2,168,690 |
|
|
|
1,528,560 |
|
|
|
1,909,706 |
|
|
|
2,096,009 |
|
|
Refinancings |
|
|
269,136 |
|
|
|
263,829 |
|
|
|
213,781 |
|
|
|
343,400 |
|
|
|
211,454 |
|
|
Total mortgage loan originations – volume |
|
|
2,296,704 |
|
|
|
2,432,519 |
|
|
|
1,742,341 |
|
|
|
2,253,106 |
|
|
|
2,307,463 |
|
|
Mortgage loan sales – volume ($000’s) |
|
|
2,220,126 |
|
|
|
2,135,291 |
|
|
|
1,744,555 |
|
|
|
2,065,356 |
|
|
|
2,569,678 |
|
|
Net gains from mortgage loan sales (basis points): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loans sold to third parties (6) |
|
|
226 |
|
|
|
223 |
|
|
|
222 |
|
|
|
217 |
|
|
|
218 |
|
|
Broker fee income (7) |
|
|
13 |
|
|
|
10 |
|
|
|
10 |
|
|
|
9 |
|
|
|
6 |
|
|
Impact of loans retained by banking segment |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
— |
|
|
As reported |
|
|
234 |
|
|
|
228 |
|
|
|
224 |
|
|
|
221 |
|
|
|
224 |
|
|
Mortgage servicing rights asset ($000’s) (8) |
|
|
12,273 |
|
|
|
7,887 |
|
|
|
6,903 |
|
|
|
5,723 |
|
|
|
45,742 |
|
|
Employees’ compensation and benefits ($000’s) |
|
|
60,036 |
|
|
|
62,214 |
|
|
|
53,339 |
|
|
|
56,402 |
|
|
|
60,573 |
|
|
Variable compensation expense ($000’s) |
|
|
32,665 |
|
|
|
34,975 |
|
|
|
24,832 |
|
|
|
30,784 |
|
|
|
33,862 |
|
|
____________________ |
|
|
(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 $1.0 million, $0.8 million, $0.6 million, $0.7 million and $0.6 million, respectively, for the periods presented and for the banking segment were $0.3 million, $0.1 million, $0.2 million, $0.2 million and $0.2 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) |
Net gains from mortgage loans sold to third parties reflects provisions for anticipated indemnification claims and penalties for early payoff of loans which had the effect of lowering such net gains from mortgage loans sold to third parties by 9, 7, 17, 13 and 7 basis points, respectively, for the periods presented. |
|
(7) |
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. |
|
(8) |
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. |
|
Capital Ratios |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
Tier 1 capital (to average assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
PlainsCapital |
|
|
10.74 |
% |
|
|
10.71 |
% |
|
|
10.22 |
% |
|
|
9.99 |
% |
|
|
10.34 |
% |
|
Hilltop |
|
|
13.13 |
% |
|
|
13.11 |
% |
|
|
12.86 |
% |
|
|
12.57 |
% |
|
|
12.95 |
% |
|
Common equity Tier 1 capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
PlainsCapital |
|
|
14.81 |
% |
|
|
15.08 |
% |
|
|
15.06 |
% |
|
|
15.35 |
% |
|
|
14.94 |
% |
|
Hilltop |
|
|
20.33 |
% |
|
|
20.74 |
% |
|
|
21.17 |
% |
|
|
21.23 |
% |
|
|
20.48 |
% |
|
Tier 1 capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
PlainsCapital |
|
|
14.81 |
% |
|
|
15.08 |
% |
|
|
15.06 |
% |
|
|
15.35 |
% |
|
|
14.94 |
% |
|
Hilltop |
|
|
20.33 |
% |
|
|
20.74 |
% |
|
|
21.17 |
% |
|
|
21.23 |
% |
|
|
20.48 |
% |
|
Total capital (to risk-weighted assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
PlainsCapital |
|
|
15.96 |
% |
|
|
16.29 |
% |
|
|
16.31 |
% |
|
|
16.54 |
% |
|
|
16.13 |
% |
|
Hilltop |
|
|
22.90 |
% |
|
|
23.38 |
% |
|
|
24.45 |
% |
|
|
24.40 |
% |
|
|
23.68 |
% |
|
Non-Performing Assets Portfolio Data |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
Loans accounted for on a non-accrual basis ($000’s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Non-owner occupied |
|
$ |
3,969 |
|
|
$ |
4,107 |
|
|
$ |
4,241 |
|
|
$ |
7,166 |
|
|
$ |
8,042 |
|
|
Owner occupied |
|
|
7,119 |
|
|
|
6,429 |
|
|
|
6,535 |
|
|
|
6,092 |
|
|
|
2,410 |
|
|
Commercial and industrial |
|
|
41,457 |
|
|
|
40,990 |
|
|
|
51,987 |
|
|
|
59,025 |
|
|
|
66,929 |
|
|
Construction and land development |
|
|
1,007 |
|
|
|
3,667 |
|
|
|
3,256 |
|
|
|
3,003 |
|
|
|
2,682 |
|
|
1-4 family residential |
|
|
14,701 |
|
|
|
17,550 |
|
|
|
15,458 |
|
|
|
12,863 |
|
|
|
11,123 |
|
|
Consumer |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Broker-dealer |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Non-accrual loans ($000’s) |
|
$ |
68,253 |
|
|
$ |
72,743 |
|
|
$ |
81,477 |
|
|
$ |
88,149 |
|
|
$ |
91,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Non-accrual loans as a % of total loans |
|
|
0.75 |
% |
|
|
0.80 |
% |
|
|
0.93 |
% |
|
|
1.00 |
% |
|
|
1.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other real estate owned ($000’s) |
|
|
8,289 |
|
|
|
9,144 |
|
|
|
7,682 |
|
|
|
2,848 |
|
|
|
2,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other repossessed assets ($000’s) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
98 |
|
|
|
413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Non-performing assets ($000’s) |
|
|
76,542 |
|
|
|
81,887 |
|
|
|
89,159 |
|
|
|
91,095 |
|
|
|
94,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Non-performing assets as a % of total assets |
|
|
0.49 |
% |
|
|
0.53 |
% |
|
|
0.56 |
% |
|
|
0.56 |
% |
|
|
0.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loans past due 90 days or more and still accruing ($000’s) (1) |
|
|
28,388 |
|
|
|
28,378 |
|
|
|
24,145 |
|
|
|
22,090 |
|
|
|
140,763 |
|
Contacts
Investor Relations Contact:
Matt Dunn
214-525-4636
[email protected]
