Hilltop Holdings' Net Income Soars 41.8% on Strong Noninterest Income

TL;DR

**HTH is crushing it, with net income up over 40% this quarter, making it a strong buy for growth-focused traders.**

AI Summary

Hilltop Holdings Inc. reported a significant increase in net income for the three months ended September 30, 2025, reaching $46.674 million, up from $32.905 million in the prior year, representing a 41.8% increase. For the nine months ended September 30, 2025, net income rose to $129.095 million from $85.326 million in 2024, a 51.3% increase. Total interest income decreased to $200.261 million for the quarter from $211.042 million, while total interest expense also declined to $87.873 million from $105.999 million, resulting in a net interest income increase to $112.388 million from $105.043 million. Noninterest income saw a healthy rise to $217.807 million for the quarter, compared to $200.443 million in the same period last year, driven by net gains from sale of loans and increased securities commissions and investment advisory fees. The company also reported a reversal of credit losses of $2.511 million for the quarter, a positive change from a reversal of $1.270 million in the prior year. Total assets decreased to $15.605 billion as of September 30, 2025, from $16.268 billion at December 31, 2024, primarily due to a reduction in cash and due from banks by over $1 billion.

Why It Matters

This strong performance, particularly the significant jump in net income and noninterest income, signals Hilltop Holdings' resilience and effective strategy in a dynamic financial landscape. For investors, the increased earnings per share to $0.74 basic for the quarter (up from $0.46) and $1.95 for the nine months (up from $1.19) could indicate a robust return on investment and potential for future growth. Employees may benefit from the company's stability and growth, while customers could see continued investment in services. In a competitive market, Hilltop's ability to grow net interest income despite overall interest income decline, coupled with strong noninterest revenue, positions it favorably against peers.

Risk Assessment

Risk Level: medium — While net income is up significantly, total assets decreased by $663 million from December 31, 2024, to September 30, 2025, primarily driven by a $1.02 billion reduction in cash and due from banks. This substantial decrease in liquidity, alongside a reduction in total deposits by $389.851 million, could pose a medium-term risk if not managed effectively, despite the positive earnings trend.

Analyst Insight

Investors should consider HTH for its strong earnings growth and increased profitability, evidenced by the 41.8% rise in quarterly net income. However, closely monitor the company's liquidity position and deposit trends in future filings, as the significant reduction in cash and deposits warrants attention. This could be an opportune time for long-term investors to initiate or add to positions, given the positive operational momentum.

Financial Highlights

debt To Equity

N/A

revenue

$318.068M

operating Margin

N/A

total Assets

$15.605B

total Debt

N/A

net Income

$46.674M

eps

$0.74

gross Margin

N/A

cash Position

$1.277B

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $46.674M — Net Income (Q3 2025) (Increased 41.8% from $32.905M in Q3 2024)
• $129.095M — Net Income (YTD Sep 2025) (Increased 51.3% from $85.326M in YTD Sep 2024)
• $112.388M — Net Interest Income (Q3 2025) (Increased from $105.043M in Q3 2024)
• $217.807M — Noninterest Income (Q3 2025) (Increased from $200.443M in Q3 2024)
• $2.511M — Reversal of Credit Losses (Q3 2025) (Positive change from $1.270M reversal in Q3 2024)
• $15.605B — Total Assets (Sep 30, 2025) (Decreased from $16.268B at Dec 31, 2024)
• $1.02B — Decrease in Cash and Due from Banks (From Dec 31, 2024 to Sep 30, 2025)
• $0.74 — Basic EPS (Q3 2025) (Increased from $0.46 in Q3 2024)
• 61,328,537 — Common Stock Outstanding (As of October 22, 2025)
• $10,675,471 — Total Deposits (Sep 30, 2025) (Decreased from $11,065,322 at Dec 31, 2024)

Key Players & Entities

• Hilltop Holdings Inc. (company) — registrant
• PlainsCapital Bank (company) — primary banking subsidiary
• Hilltop Securities Holdings LLC (company) — broker-dealer and mortgage origination subsidiary
• PrimeLending (company) — mortgage origination subsidiary
• SEC (regulator) — Securities and Exchange Commission
• $46.674 million (dollar_amount) — Net income for Q3 2025
• $129.095 million (dollar_amount) — Net income for nine months ended Sep 30, 2025
• $15.605 billion (dollar_amount) — Total assets as of Sep 30, 2025
• $1.02 billion (dollar_amount) — Decrease in cash and due from banks
• $0.74 (dollar_amount) — Basic EPS for Q3 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: The company's profitability is sensitive to changes in interest rates, which affect net interest income. While net interest income increased in Q3 2025, a significant portion of assets and liabilities are interest-sensitive.
• Cybersecurity and Data Breaches [high — operational]: As a financial institution, Hilltop Holdings is a target for cyberattacks. A breach could lead to significant financial losses, reputational damage, and regulatory penalties.
• Regulatory Compliance [high — regulatory]: The company operates in a highly regulated environment. Changes in banking and securities regulations, or failure to comply, could result in fines, sanctions, or restrictions on operations.
• Economic Downturn [medium — market]: A general economic slowdown or recession could negatively impact loan demand, increase credit losses, and reduce fee income from investment banking and brokerage services.
• Liquidity Risk [medium — financial]: While deposits remain substantial at $10.675 billion, a significant decrease in cash and due from banks ($1.277 billion from $2.299 billion) warrants monitoring for potential liquidity strains, especially during periods of market stress.
• Integration of Acquisitions [low — operational]: The company has a history of acquisitions. Failure to successfully integrate acquired businesses could disrupt operations and hinder the realization of expected synergies.
• Litigation and Legal Proceedings [low — legal]: Like many financial institutions, Hilltop Holdings is subject to various lawsuits and legal proceedings. Adverse outcomes could result in significant financial liabilities.

Industry Context

Hilltop Holdings operates within the highly competitive financial services industry, encompassing banking, wealth management, and investment banking. The sector is characterized by evolving regulatory landscapes, technological advancements, and fluctuating interest rate environments. Key trends include a focus on digital transformation, consolidation, and the increasing importance of non-interest income sources.

Regulatory Implications

As a financial holding company and bank holding company, Hilltop Holdings is subject to stringent oversight from various regulatory bodies, including the Federal Reserve, SEC, and FINRA. Compliance with capital requirements, consumer protection laws, and anti-money laundering regulations is paramount. Any changes in these regulations or instances of non-compliance can significantly impact operations and profitability.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Q3 2025 — Reported strong net income growth of 41.8% and a significant increase in noninterest income, driven by loan sales and advisory fees.
• 2025-12-31: End of Fiscal Year 2024 — Total assets were $16.268 billion, with cash and due from banks at $2.299 billion.
• 2024-12-31: End of Fiscal Year 2024 — Total deposits were $11.065 billion.
• 2024-01-01: Adoption of ASU 2023-05 — Company adopted new accounting standard for joint ventures, with no material impact.

Glossary

Net Interest Income

The difference between the interest income generated by a financial institution and the interest paid out to its lenders and depositors. (A key measure of profitability for banks, reflecting the spread between lending and borrowing costs.)

Noninterest Income

Revenue generated from sources other than traditional interest-bearing activities, such as fees, commissions, and trading gains. (Diversifies revenue streams and can be a significant driver of profitability, as seen with Hilltop's gains from loan sales and advisory fees.)

Allowance for Credit Losses

An estimate of the amount of uncollectible loans in a company's portfolio. (A contra-asset account that reduces the carrying value of loans to their net realizable amount. A reversal indicates improved credit quality or recoveries.)

Federal Funds Sold

Short-term lending of funds between financial institutions, typically overnight, to meet reserve requirements. (Represents a component of a bank's short-term investments and liquidity management.)

Broker-dealer

A firm or individual that is licensed to engage in the buying and selling of securities on behalf of customers and for its own account. (Hilltop Holdings has significant operations in this area through its Securities Holdings subsidiary, contributing to noninterest income.)

Variable Interest Entities (VIEs)

A type of legal entity where the equity investors do not have the characteristics of a controlling financial interest. The entity is typically consolidated by its primary beneficiary. (Hilltop consolidates certain entities related to the Hilltop Plaza investment under VIE rules.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Hilltop Holdings Inc. has demonstrated robust growth in net income, with a 41.8% increase for Q3 2025 and a 51.3% increase year-to-date. This growth is supported by a healthy rise in noninterest income, up 8.7% for the quarter, driven by gains on loan sales and advisory fees, alongside an improvement in net interest income. However, total assets have seen a decrease, primarily due to a significant reduction in cash and due from banks, which warrants further investigation into liquidity management.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share HTH New York Stock Exchan

Filing Documents

• hth-20250930x10q.htm (10-Q) — 10488KB
• hth-20250930xex31d1.htm (EX-31.1) — 18KB
• hth-20250930xex31d2.htm (EX-31.2) — 18KB
• hth-20250930xex32d1.htm (EX-32.1) — 15KB
• 0001104659-25-102164.txt ( ) — 37744KB
• hth-20250930.xsd (EX-101.SCH) — 107KB
• hth-20250930_cal.xml (EX-101.CAL) — 164KB
• hth-20250930_def.xml (EX-101.DEF) — 537KB
• hth-20250930_lab.xml (EX-101.LAB) — 1072KB
• hth-20250930_pre.xml (EX-101.PRE) — 815KB
• hth-20250930x10q_htm.xml (XML) — 10647KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1 .

Financial Statements

Financial Statements 3 Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Comprehensive Income 5 Consolidated Statements of Stockholders' Equity 6 Consolidated Statements of Cash Flows 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 48 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 96 Item 4.

Controls and Procedures

Controls and Procedures 101

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 102 Item 1A.

Risk Factors

Risk Factors 102 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 102 Item 5. Other Information 102 Item 6. Exhibits 103 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. HILLTOP HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (Unaudited) September 30, December 31, 2025 2024 Assets Cash and due from banks $ 1,277,283 $ 2,298,977 Federal funds sold 650 650 Assets segregated for regulatory purposes 5,050 70,963 Securities purchased under agreements to resell 78,909 88,728 Securities: Trading, at fair value 574,434 524,916 Available for sale, at fair value, net (amortized cost of $ 1,514,825 and $ 1,498,415 , respectively) 1,443,612 1,396,549 Held to maturity, at amortized cost, net (fair value of $ 696,835 and $ 649,872 , respectively) 755,012 737,899 Equity, at fair value 248 297 2,773,306 2,659,661 Loans held for sale 849,357 858,665 Loans held for investment, net of unearned income 8,227,194 7,950,551 Allowance for credit losses ( 95,168 ) ( 101,116 ) Loans held for investment, net 8,132,026 7,849,435 Broker-dealer and clearing organization receivables 1,519,005 1,452,366 Premises and equipment, net 136,830 148,245 Operating lease right-of-use assets 87,464 90,563 Mortgage servicing rights 12,273 5,723 Other assets 459,588 470,073 Goodwill 267,447 267,447 Other intangible assets, net 5,862 6,633 Total assets $ 15,605,050 $ 16,268,129 Liabilities and Stockholders' Equity Deposits: Noninterest-bearing $ 2,766,155 $ 2,768,707 Interest-bearing 7,909,316 8,296,615 Total deposits 10,675,471 11,065,322 Broker-dealer and clearing organization payables 1,445,280 1,331,902 Short-term borrowings 680,979 834,023 Securities sold, not yet purchased, at fair value 65,119 57,234 Notes payable 148,530 347,667 Operating lease liabilities 104,134 109,103 Other liabilities 269,297 304,566 Total liabilities 13,388,810 14,049,817 Commitments and contingencies (see N

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Summary of Significant Accounting and Reporting Policies Nature of Operations Hilltop Holdings Inc. ("Hilltop" and, collectively with its subsidiaries, the "Company") is a financial holding company registered under the Bank Holding Company Act of 1956. The Company's primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank (the "Bank"). In addition, the Company provides an array of financial products and services through its broker-dealer and mortgage origination subsidiaries. The Company, headquartered in Dallas, Texas, provides its products and services through two primary business units, PlainsCapital Corporation ("PCC") and Hilltop Securities Holdings LLC ("Securities Holdings"). PCC is a financial holding company, that provides, through its subsidiaries, traditional banking and wealth, investment and treasury management services primarily in Texas and residential mortgage loans throughout the United States. Securities Holdings is a holding company that provides, through its subsidiaries, investment banking and other related financial services, including municipal advisory, sales, trading and underwriting of taxable and tax-exempt fixed income securities, clearing, securities lending, structured finance and retail brokerage services throughout the United States. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"), and in conformity with the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes required by GAA

Notes to Consolidated Financial Statements (continued)

Notes to Consolidated Financial Statements (continued) (Unaudited) ("FINRA") and a member of the New York Stock Exchange ("NYSE"). Momentum Independent Network is an introducing broker-dealer that is also registered with the SEC and FINRA. Hilltop Securities and Momentum Independent Network are both registered with the Commodity Futures Trading Commission as non-guaranteed introducing brokers and as members of the National Futures Association. Additionally, Hilltop Securities, Momentum Independent Network and Hilltop Securities Asset Management, LLC are registered investment advisers under the Investment Advisers Act of 1940. In addition, Hilltop owns 100 % of the membership interest in each of HTH Hillcrest Project LLC and Hilltop Investments I, LLC. Hilltop Investments I, LLC owns 50 % of the membership interest in HTH Diamond Hillcrest Land LLC ("Hillcrest Land LLC") which is consolidated under the requirements of the Variable Interest Entities ("VIE") Subsections of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). These entities are related to the Hilltop Plaza investment discussed in detail in Note 17 to the consolidated financial statements included in the Company's 2024 Form 10-K and are collectively referred to as the "Hilltop Plaza Entities." The consolidated financial statements include the accounts of the above-named entities. Intercompany transactions and balances have been eliminated. Noncontrolling interests have been recorded for minority ownership in entities that are not wholly owned and are presented in compliance with the provisions of Noncontrolling Interest in Subsidiary Subsections of the ASC. In preparing these consolidated financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all stockholders and other financial statement users, or filed with the SEC. Signifi

Notes to Consolidated Financial Statements (continued)

Notes to Consolidated Financial Statements (continued) (Unaudited) In December 2023, the FASB issued ASU 2023-09 to improve disclosures and presentation requirements to the transparency of the income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments are effective in annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the provisions of the amendments, which are not expected to have an impact on its financial condition or results of operations. The Company expects to adopt this guidance in its Annual Report on Form 10-K for the year ending December 31, 2025. In November 2024, the FASB issued ASU 2024-03, which was further clarified through the issuance of ASU 2025-01 in January 2025, to improve disclosure on an entity's expenses and provide more detailed information for specific expense categories in the notes to financial statements at interim and annual reporting periods. The amendments are effective in annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is cu