Third Quarter 2026
Filed Oct 22, 2026Hilltop Holdings Inc. Announces Financial Results for Third Quarter 2026
Income attributable to Hilltop declined to $24.9 million from $45.8 million and diluted EPS declined to $0.44 from $0.74, as a $10.2 million provision for credit losses replaced prior-year reversals and mortgage and broker-dealer results weakened. Net interest income and consolidated net interest margin increased sequentially, deposits grew, and non-accrual loans declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Income attributable to Hilltop, three months ended September 30GAAP | $24.9M | – | – |
| Net income, three months ended September 30GAAP | $26,324 (in 000's) | – | – |
| Basic earnings per common share, three months ended September 30GAAP | $0.44 | – | – |
| Diluted earnings per common share, three months ended September 30GAAP | $0.44 | – | – |
| Net interest income, three months ended September 30GAAP | $122,370 (in 000's) | – | – |
| Provision for (reversal of) credit losses, three months ended September 30GAAP | $10,166 (in 000's) | – | – |
| Net interest income after provision for (reversal of) credit losses, three months ended September 30GAAP | $112,204 (in 000's) | – | – |
| Total noninterest income, three months ended September 30GAAP | $187.1M | – | 14.1% decrease |
| Net gains from sale of loans and other mortgage production income and mortgage loan origination fees, three months ended September 30GAAP | $67.7M | – | 11.6% decrease |
| Total noninterest expense, three months ended September 30GAAP | $264.1M | – | 2.9% decrease |
| Income before income taxes, three months ended September 30GAAP | $35,211 (in 000's) | – | – |
| Income tax expense, three months ended September 30GAAP | $8,887 (in 000's) | – | – |
| Effective tax rate, three months ended September 30GAAP | 25.2% | – | – |
| Consolidated return on average assets, three months ended September 30GAAP | 0.67% | – | – |
| Consolidated return on average stockholders' equity, three months ended September 30GAAP | 4.67% | – | – |
| Consolidated net interest margin, three months ended September 30GAAP | 3.33% | – | – |
| Consolidated net interest margin, taxable equivalent, three months ended September 30non-GAAP | 3.35% | – | – |
| Book value per common shareGAAP | $36.99 | – | – |
| Total assetsGAAP | $16.2B | – | – |
| Loans, net of allowance for credit lossesGAAP | $8.3B | – | – |
| Total depositsGAAP | $11B | – | – |
| Non-accrual loansGAAP | $51.4 million, or 0.54% of total loans | – | – |
| Non-performing assetsGAAP | $60,216 (in 000's) | – | – |
| Non-performing assets as a % of total assetsGAAP | 0.37% | – | – |
| Loans past due 90 days or more and still accruingGAAP | $46,330 (in 000's) | – | – |
| Loans held for saleGAAP | $625.6M | decreased by 37.7% | – |
| Tier 1 Leverage Ratioother | 12.63% | – | – |
| Common Equity Tier 1 Capital Ratioother | 18.28% | – | – |
| Mortgage loan originations - volume, three months ended September 30other | $2,210,213 (in 000's) | – | – |
| Mortgage loan sales - volume, three months ended September 30other | $2,423,284 (in 000's) | – | – |
| Net gains from mortgage loan sales, as reported, three months ended September 30other | 201 basis points | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| BankingGenerated $44 million of pre-tax income, with healthy net interest margin expansion and earning asset growth partially offset by a $10 million provision for credit losses. | Not reported | – | – |
| Broker-DealerProduced $7 million in pre-tax income, primarily driven by strong Public Finance Services and Wealth Management results, while Structured Finance and Fixed Income Services were negatively impacted by the speed and size of the change in long-term interest rates. | $116,625 (in 000's) net revenue | – | – |
| Mortgage OriginationReported a pre-tax loss of $11 million as the intra-quarter increase in mortgage rates depressed purchase activity and reduced the mark-to-market value of existing loans in the pipeline. | $67,711 (in 000's) noninterest income | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Quarterly cash dividend of $0.22 per common share, payable on November 20, 2026 to stockholders of record as of the close of business on November 6, 2026.
- Paid $20.0 million to repurchase an aggregate of 512,075 shares of common stock at an average price of $38.96 per share during the third quarter of 2026.
- Approximately $86 million of available share repurchase capacity through the expiration of the 2026 stock repurchase program in January 2027.
- Returned approximately $33 million to stockholders through dividends and share repurchases.
What drove it
- Consolidated net interest margin increased to 3.33% from 3.21% in the second quarter of 2026.
- Banking segment net interest margin increased to 3.49% from 3.42% in the second quarter of 2026.
- Banking segment earning asset growth and net interest margin expansion supported $44 million of pre-tax income.
- Public Finance Services and Wealth Management produced strong results within HilltopSecurities.
- Non-accrual loans declined to $51.4 million, or 0.54% of total loans, from $54.8 million, or 0.57% of total loans, at June 30, 2026.
Concerns
- The provision for credit losses was $10.2 million, compared with reversals of $1.0 million in the second quarter of 2026 and $2.5 million in the third quarter of 2025.
- PrimeLending reported a pre-tax loss of $11 million as higher mortgage rates depressed purchase activity and reduced the mark-to-market value of loans in the pipeline.
- Broker-dealer pre-tax margin was 5.9%, compared with 10.0% in the second quarter of 2026 and 18.3% in the third quarter of 2025.
- Noninterest income declined to $187.1 million from $217.8 million in the third quarter of 2025.
- Loans past due 90 days or more and still accruing increased to $46,330 (in 000's) from $40,226 (in 000's) at June 30, 2026.
- Estimated uninsured deposits were $6.0 billion, or approximately 55% of total deposits, at September 30, 2026.
What to watch
- Credit-loss provisioning and the loan mix, risk rating grade migration, specific reserves, net loan growth, and U.S. economic outlook factors cited by the company.
- Mortgage purchase activity, pipeline mark-to-market effects, mortgage loan origination volume, and gains on loans sold to third parties.
- The effect of long-term interest-rate changes on Structured Finance and Fixed Income Services.
- Deposit growth, uninsured deposit levels, funding costs, and the consolidated net interest margin.
- Capital deployment under the 2026 stock repurchase program, which expires in January 2027.
Balance sheet and cash flow
- Cash and due from banks was $1,205,044 (in 000's) at September 30, 2026, compared with $750,508 (in 000's) at June 30, 2026.
- Total assets were $16,219,734 (in 000's) at September 30, 2026, compared with $16,000,819 (in 000's) at June 30, 2026.
- Total deposits were $11,034,849 (in 000's) at September 30, 2026, compared with $10,514,053 (in 000's) at June 30, 2026.
- Notes payable was $148,762 (in 000's) at September 30, 2026, compared with $148,703 (in 000's) at June 30, 2026.
- Total stockholders' equity was $2,130,871 (in 000's) at September 30, 2026, compared with $2,156,296 (in 000's) at June 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
Hilltop reported a weaker third quarter in earnings terms. Income attributable to Hilltop was $24.9 million, or $0.44 per diluted share, compared with $45.8 million, or $0.74 per diluted share, in the third quarter of 2025. Income before income taxes was $35.2 million versus $60.8 million. The principal pressure was credit costs: the company recorded a $10.2 million provision for credit losses after a $2.5 million reversal in the prior-year quarter and a $1.0 million reversal in the second quarter of 2026.
Core banking trends improved sequentially. Net interest income was $122.4 million, compared with $115.9 million in the second quarter, while consolidated net interest margin increased to 3.33% from 3.21%. The banking segment generated $44 million of pre-tax income, supported by net interest margin expansion and earning asset growth. Total deposits rose to $11.0 billion from $10.5 billion at June 30, 2026, and loans, net of allowance for credit losses, increased to $8.3 billion from $8.2 billion.
Fee-oriented businesses were the principal earnings drag. Total noninterest income fell to $187.1 million from $217.8 million in the third quarter of 2025. Mortgage production income and origination fees were $67.7 million, down 11.6%, while mortgage loan origination volume was $2.2 billion compared with $2.3 billion. PrimeLending recorded a pre-tax loss of $11 million amid higher mortgage rates, lower purchase activity, and pipeline mark-to-market pressure. HilltopSecurities remained profitable but its $7 million of pre-tax income and 5.9% pre-tax margin reflected pressure on rate-sensitive Structured Finance and Fixed Income Services.
Expense control partly offset revenue pressure. Noninterest expense declined to $264.1 million from $271.9 million, although the decline was materially smaller than the reduction in noninterest income. Asset quality indicators improved in several areas, with non-accrual loans at $51.4 million, or 0.54% of total loans, and non-performing assets at $60.2 million. However, loans past due 90 days or more and still accruing rose to $46.3 million from $40.2 million in the prior quarter, and the company highlighted loan mix, risk-rating migration, specific reserves, and economic-outlook changes as drivers of the credit provision.
Capital remained substantial, with a Tier 1 Leverage Ratio of 12.63% and a Common Equity Tier 1 Capital Ratio of 18.28%, though both were below their June 30, 2026 levels. Hilltop paid $20.0 million for share repurchases and declared a $0.22 per-share quarterly dividend. The release did not provide quantitative forward guidance. Management instead highlighted uncertainty from tariffs, Treasury yields, mortgage interest rates, funding costs, inflation, energy prices, conflicts, and supply-chain effects as factors expected to continue adversely affecting operating results during the remainder of 2026.
Management, verbatim
Through a volatile quarter marked by a policy reversal from the Federal Reserve and rapidly rising rates, Hilltop delivered a 0.67% return on average assets and returned approximately $33 million to stockholders through dividends and share repurchases.
Jeremy B. Ford, Chairman, President and CEO of Hilltop
During the third quarter, PlainsCapital Bank generated a 1.1% return on average assets and $44 million of pre-tax income as healthy net interest margin expansion and earning asset growth were partially offset by a $10 million provision for credit losses.
Jeremy B. Ford, Chairman, President and CEO of Hilltop
PrimeLending reported a pre-tax loss of $11 million as the dramatic intra-quarter increase in mortgage rates depressed purchase activity across the market and reduced the mark-to-market value of existing loans in the pipeline.
Jeremy B. Ford, Chairman, President and CEO of Hilltop
Not in the filing
stated, not guessed- Forward quantitative guidance was not provided.
- Previous outlook was not provided.
- GAAP or non-GAAP total revenue was not reported.
- Gross margin was not reported.
- GAAP operating income was not reported.
- Non-GAAP earnings measures other than taxable-equivalent net interest margin were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- CFO commentary was not provided in the filing text.
- Banking segment revenue was not reported as a standalone line item.
- Year-over-year and sequential percentage changes for most income-statement line items were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.