Hilltop Holdings Inc. Announces Financial Results for Second Quarter 2025

DALLAS– 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;
• Loans ¹, 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 Ratio ² of 13.11% and a Common Equity Tier 1 Capital Ratio of 20.74% at June 30, 2025;
• Hilltop’s consolidated net interest margin ³ increased 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.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, July 25, 2025. Hilltop Chairman, President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review second quarter 2025 financial results. Interested parties can access the conference call by dialing 800-549-8228 (Toll Free North America) or (+1) 289-819-1520 (International Toll) and then using the conference ID 82549. The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop.com).

About Hilltop

Hilltop Holdings is a Dallas-based financial holding company. Its primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank. PlainsCapital Bank’s wholly owned subsidiary, PrimeLending, provides residential mortgage lending throughout the United States. Hilltop Holdings’ broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. At June 30, 2025, Hilltop employed approximately 3,700 people and operated 309 locations in 47 states. Hilltop Holdings’ common stock is listed on the New York Stock Exchange under the symbol “HTH.” Find more information at Hilltop.com, PlainsCapital.com, PrimeLending.com and Hilltopsecurities.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements speak only as of the date they are made and, except as required by law, we do not assume any duty to update forward-looking statements. Such forward-looking statements include, but are not limited to, statements concerning such things as our plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact, and may be identified by words such as “aim,” “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “position,” “probable,” “progressing,” “projects,” “prudent,” “seeks,” “should,” “steady,” “target,” “view,” “will” or “would” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: (i) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (ii) effectiveness of our data security controls in the face of cyber attacks and any legal, reputational and financial risks following a cybersecurity incident; (iii) changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil; (iv) changes in the interest rate environment; (v) risks associated with concentration in real estate related loans; (vi) the effects of indebtedness on our ability to manage our business successfully, including the restrictions imposed by the indenture governing our indebtedness; (vii) disruptions to the economy and financial services industry, risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators, including increases in the cost of our deposit insurance assessments; (viii) cost and availability of capital; (ix) changes in state and federal laws, regulations or policies affecting one or more of our business segments, including changes in policies under the new Presidential administration, changes in regulatory fees, deposit insurance premiums, capital requirements and the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”); (x) changes in key management; (xi) competition in our banking, broker-dealer, and mortgage origination segments from other banks and financial institutions as well as investment banking and financial advisory firms, mortgage bankers, asset-based non-bank lenders and government agencies; (xii) legal and regulatory proceedings; (xiii) risks associated with merger and acquisition integration; and (xiv) our ability to use excess capital in an effective manner. For further discussion of such factors, see the risk factors described in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other reports that are filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement.

Source: Hilltop Holdings Inc.