Hilltop Holdings Q3 2026 income falls to $24.9 million

Hilltop Holdings Inc. (NYSE: HTH) reported third-quarter 2026 income attributable to common stockholders of $24.9 million, a decline from $45.8 million in the same period last year. The company recorded diluted earnings per share of $0.44 for the quarter, down from $0.74 in the third quarter of 2025.

The Board of Directors declared a quarterly cash dividend of $0.22 per common share, payable on November 20, 2026 to shareholders of record as of November 6, 2026. During the third quarter, Hilltop repurchased 512,075 shares of its common stock for $20.0 million at an average price of $38.96 per share under its 2026 stock repurchase program. These shares were returned to the authorized but unissued pool, leaving approximately $86 million in available repurchase capacity through the program's expiration in January 2027.

Jeremy B. Ford, Chairman, President and CEO, stated that Hilltop achieved a 0.67% return on average assets while distributing roughly $33 million to shareholders via dividends and buybacks during a volatile period characterized by Federal Reserve policy shifts and rising rates. PlainsCapital Bank generated a 1.1% return on average assets and $44 million in pre-tax income, with net interest margin expansion and earning asset growth partially offset by a $10 million provision for credit losses. PrimeLending reported an $11 million pre-tax loss as intra-quarter increases in mortgage rates depressed purchase activity and reduced the mark-to-market value of loans in the pipeline.

HilltopSecurities produced a 5.9% pre-tax margin on $117 million of net revenues, delivering $7 million in pre-tax income primarily through Public Finance Services and Wealth Management. Interest-rate-sensitive lines including Structured Finance and Fixed Income Services were negatively impacted by the speed and size of changes in long-term interest rates.

The provision for credit losses totaled $10.2 million in the third quarter of 2026, compared to reversals of $1.0 million in the second quarter of 2026 and $2.5 million in the third quarter of 2025. This increase was driven by loan portfolio changes, including mix shifts, risk rating migration, net loan growth, specific reserve builds, and changes in the U.S. economic outlook for collectively evaluated loans.

Mortgage production volumes decreased to $2.2 billion in the third quarter of 2026 from $2.3 billion in the prior year period. Net gains from mortgage loans sold to third parties fell to 211 basis points from 229 basis points in the second quarter of 2026. Noninterest income declined 14.1% to $187.1 million, while noninterest expense decreased 2.9% to $264.1 million.

Hilltop's consolidated net interest margin increased to 3.33% for the third quarter of 2026 from 3.21% in the second quarter. Total assets stood at $16.2 billion as of September 30, 2026, up from $16.0 billion at June 30, 2026. Loans held for sale decreased by 37.7% to $625.6 million over the same period, while total deposits rose to $11.0 billion from $10.5 billion.

Capital ratios remained strong with a Tier 1 Leverage Ratio of 12.63% and a Common Equity Tier 1 Capital Ratio of 18.28% at September 30, 2026. Book value per common share decreased slightly to $36.99 from $37.12 at June 30, 2026. The effective tax rate for the quarter was 25.2%, higher than the prior year's 23.2%, primarily due to nondeductible expenses and valuation allowances.