HTH · Hilltop Holdings Inc.

Hilltop Holdings Inc. reported Q1 2026 results with income attributable to common stockholders of $37.8 million, or $0.64 per diluted share, down slightly from $42.1 million, or $0.65 per share, in Q1 2025. Key drivers included a sharp reduction in provision for credit losses to $1.8 million from $9.3 million year-over-year, primarily due to specific reserves, net charge-offs, and improved U.S. economic outlook for collectively evaluated loans. Net interest income rose to $112.1 million from $105.1 million, supported by net interest margin expansion to 3.13% from 3.02% in the prior quarter, reflecting PlainsCapital Bank's loan/deposit growth and margin improvement yielding 1.2% return on average assets. Noninterest income declined 11.7% to $188.4 million, driven by lower principal transactions and investment banking fees, though mortgage segment showed strength with $72.9 million in gains/fees (up 7.6%) on $2.0 billion origination volume and 261 bps gain-on-sale margin. Noninterest expense fell 1.3% to $248.3 million, aiding pre-tax income of $50.4 million. CEO Jeremy B. Ford highlighted strong segment performance: PlainsCapital Bank with loan/deposit growth, PrimeLending reducing losses via higher volumes/margins, and HilltopSecurities at 12.7% pre-tax margin on $116 million revenues. Balance sheet remained solid with $15.7 billion total assets, $8.0 billion net loans (up QoQ), though deposits dipped to $10.5 billion; capital ratios strong at 12.82% Tier 1 Leverage and 19.08% CET1. Company returned $59 million to shareholders via $47.5 million buyback (1.24 million shares at $38.40 avg) and $0.20 dividend (up from $0.18). Management noted ongoing economic volatility from tariffs, rates, and geopolitics impacting results.