What is Hilltop Holdings's gross profit margin?

Did Hilltop Holdings beat or miss consensus estimates last quarter?

What were the key takeaways from Hilltop Holdings’s earnings call?

What is Hilltop Holdings's latest dividend and current dividend yield?

What is the market's earnings forecast for Hilltop Holdings next quarter?

What were the key takeaways from Hilltop Holdings's earnings call?

What is the revenue and EPS growth rate for Hilltop Holdings year over year?

What factors drove the changes in Hilltop Holdings's revenue and profit?

**Key Takeaways**
- **Financial Performance**: Q3 net income $45.8M, driven by PlainsCapital's 1.34% ROA and HilltopSecurities' 18% pretax margin. PrimeLending faces headwinds but focuses on cost reduction.
- **Growth Drivers**: Commercial real estate loans up 8% YoY, with $750M pipeline expansion. Broker-dealer net revenue growth across all lines.
- **Credit Management**: ACL at 1.16% of loans, with active auto portfolio workout reducing commitments from $290M to $77M.
- **Strategic Moves**: Increased share buybacks ($55M Q3), leadership transitions, and M&A focus in Texas.
- **Risk Factors**: Mortgage market challenges (low home sales, affordability), competitive loan pricing, and auto portfolio exposure.

**【CEO Summary Section】**
- **Third Quarter Results**: Reported net income of $45.8 million ($0.74 per diluted share), with PlainsCapital Bank contributing $55 million pretax income and a 1.34% ROA. PrimeLending reported a $7 million pretax loss due to subdued mortgage origination volumes, while HilltopSecurities achieved a 18% pretax margin on $144.5 million net revenue.
- **Business Highlights**: PlainsCapital saw 6% core deposit growth and a 4 basis point loan yield increase. HilltopSecurities' Public Finance, Structured Finance, and Wealth Management lines each grew net revenue by $5 million+ year-over-year. PrimeLending focused on cost reduction and talent recruitment to restore profitability.
- **Leadership Transition**: Darrell Adams retiring as Chief Credit Officer; Brent Raindl promoted to Chief Credit Officer, Thomas Ricks to Dallas Region Chairman.

**【CFO Financial Commentary1】**
- **Net Interest Income (NII)**: $112 million (7% YoY growth), driven by deposit cost optimization and higher-yielding commercial loans. NIM increased 5 basis points to 306 basis points.
- **Expense Management**: Noninterest expenses rose $7.6 million YoY to $272 million, primarily due to variable compensation tied to broker-dealer revenue growth.
- **Loan Growth**: Average HFI loans $8.1 billion, up 3.1% YoY. Commercial real estate loans grew 8% ($338 million), with pipelines expanding by $750 million QoQ.

**【CFO Financial Commentary2】**
- **Credit Metrics**: Allowance for credit losses (ACL) at $95 million (1.16% of loans), with a $2.6 million reversal of provision. Net charge-offs at 1 basis point of portfolio, reflecting conservative credit culture.
- **Auto Portfolio Update**: Auto note commitments reduced from $290 million to $77 million, with 2 nonaccrual clients under active workout.
- **Rate Outlook**: Anticipate 1 rate cut in 2025Q4 and 2 in 2026H1, with deposit betas expected to decline but remain above 60%.

**【Q&A Highlights】**
- **NII Guidance**: 2025Q4 NII expected to remain stable with modest downward pressure, due to rate cuts and competitive loan pricing.
- **Share Buybacks**: Increased buybacks ($55 million Q3) reflect excess capital and stock valuation; authorization for accelerated repurchases requested.
- **M&A Strategy**: Actively evaluating Texas market opportunities amid out-of-state entrants, focusing on client and banker synergies.
- **Broker-Dealer Performance**: Q3 strength in public finance, structured finance, wealth management; expect 12-13% pretax margin normalization in 2026.
- **Government Shutdown Impact**: Minimal direct impact on broker-dealer operations; potential delays in SBA and USDA loan processing.

Hilltop Holdings Inc. (HTH) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HTH

HTH fundamentals

You can ask Aime