Hilltop Holdings Stock Earnings Reports

Hilltop reported Q1 2026 net income of $37.8M ($0.64/share) with a 1.0% ROA and 7.1% ROE. Key drivers: PlainsCapital Bank delivered strong net interest margin (3.38%) and year-over-year growth in core loans and deposits, producing $47M pretax and a 1.2% ROA; PrimeLending narrowed its operating loss as origination volumes and margins improved but mortgage profitability remains pressured by affordability and rate-driven lock-in effects; HilltopSecurities posted $15M pretax on $116M revenue with strong fixed income, structured finance and public finance performance. Net interest income grew ~7% YoY, aided by an improved deposit beta (74% through the first 175 bps of Fed cuts) and a shift from excess cash into loans. Management expects full‑year average HFI loan growth of 4–6% and retains mortgage production guidance of $9–$10B, though volumes are uncertain given recent rate volatility and geopolitical events. Credit: allowance for credit losses declined to $89M (1.06% of loans HFI), Q1 net charge-offs were $4.3M (largely auto note portfolio), and nonperforming assets rose modestly due to one CRE credit. Capital remains strong: CET1 of 19.1% and tangible book value per share of $31.97. Capital returns: $11.8M dividends and $47.5M in buybacks in the quarter, with a $125M repurchase authorization for the year. Management assumes two Fed rate cuts in 2026 in current guidance and notes NII/NIM are sensitive to the rate path and continued deposit competition. Expense control and productivity initiatives continue, with modest technology and client-facing investments expected.