Hilltop Holdings Inc. Announces Financial Results for First Quarter 2026

Hilltop Holdings Inc. Announces Financial Results for First Quarter 2026 DALLAS--( BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”) today announced financial results for the first quarter of 2026. Hilltop produced income attributable to common stockholders of $37.8 million, or $0.64 per diluted share, for the first quarter of 2026, compared to $42.1 million, or $0.65 per diluted share, for the first quarter of 2025.

Hilltop also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per common share payable on May 22, 2026 to all common stockholders of record as of the close of business on May 8, 2026. Additionally, during the first quarter of 2026, Hilltop paid $47.5 million to repurchase an aggregate of 1,238,216 shares of its common stock at an average price of $38.40 per share pursuant to the 2026 stock repurchase program. These shares were returned to the pool of authorized but unissued shares of common stock.

The extent of the impact of uncertain economic conditions on our financial performance during the remainder of 2026 will depend in part on developments outside of our control, including, among others, changes in the political environment, the impact of tariffs and reciprocal tariffs, the timing and significance of further changes in U.S. Treasury yields and mortgage interest rates, and a volatile economic forecast. These conditions, coupled with exposure to changes in funding costs, inflationary pressures, and international armed conflicts and their impact on supply chains within our business segments during the first quarter of 2026 have had, and are expected to continue to have, an adverse impact on our operating results during the remainder of 2026.

Jeremy B. Ford, Chairman, President and CEO of Hilltop, said, “Amid a volatile quarter, Hilltop delivered strong operating results with all three lines of business reporting improved year-over-year financial results. At PlainsCapital Bank, loan and deposit growth, combined with meaningful net interest margin expansion, generated a 1.2% return on average assets. PrimeLending further reduced its operating losses in the quarter by capitalizing on higher origination volumes and an expanded gain on sale margin. HilltopSecurities produced a 12.7% pre-tax margin on $116 million of net revenues driven by relative strength across its business lines. For the quarter, Hilltop produced a 1.0% return on average assets and returned $59 million to stockholders through dividends and share repurchases.”

First Quarter 2026 Highlights for Hilltop:

“Loans” reflect loans held for investment excluding broker-dealer margin loans, net of allowance for credit losses, of $361.0 million and $344.5 million at March 31, 2026 and December 31, 2025, respectively.

Total deposits at March 31, 2026 included estimated uninsured deposits of $5.9 billion, or approximately 56% of total deposits, while estimated uninsured deposits, excluding collateralized deposits of $640.8 million and internal accounts of $448.2 million, were $4.8 billion, or approximately 46% of total deposits.

Based on the end of period Tier 1 capital divided by total average assets during the quarter, excluding goodwill and intangible assets.

Net interest margin is defined as net interest income divided by average interest-earning assets.

Consolidated Financial and Other Information

Consolidated Balance Sheets

March 31,

December 31,

September 30,

June 30,

March 31,

(in 000's)

2026

2025

Cash and due from banks

874,194

1,231,944

1,277,283

982,488

1,702,623

Federal funds sold

650

Assets segregated for regulatory purposes

17,673

20,211

5,050

47,158

88,451

Securities purchased under agreements to resell

133,088

55,977

78,909

93,878

99,099

Securities:

Trading, at fair value

698,106

617,408

574,434

675,757

647,158

Available for sale, at fair value, net (1)

1,469,670

1,491,048

1,443,612

1,408,347

1,405,170

Held to maturity, at amortized cost, net (1)

759,628

728,329

755,012

771,641

762,369

Equity, at fair value

238

265

248

4,996

286

2,927,642

2,837,050

2,773,306

2,860,741

2,814,983

Loans held for sale

807,745

950,142

849,357

979,875

818,328

Loans held for investment, net of unearned income

8,433,673

8,311,952

8,227,194

8,061,204

7,966,777

Allowance for credit losses

(88,997

)

(91,537

)

(95,168

)

(97,961

)

(106,197

)

Loans held for investment, net

8,344,676

8,220,415

8,132,026

7,963,243

7,860,580

Broker-dealer and clearing organization receivables

1,625,156

1,588,882

1,519,005

1,469,628

1,450,077

Premises and equipment, net

135,551

132,820

136,830

139,179

143,957

Operating lease right-of-use assets

89,845

83,757

87,464

88,050

93,451

Mortgage servicing assets

20,045

17,491

12,273

7,887

6,903

Other assets

452,779

432,603

459,588

455,930

459,774

Goodwill

267,447

Other intangible assets, net

5,365

5,605

5,862

6,119

6,376

Total assets

15,701,856

15,844,994

15,605,050

15,362,273

15,812,699

Deposits:

Noninterest-bearing

2,830,008

2,831,919

2,766,155

2,790,958

2,859,828

Interest-bearing

7,701,541

8,046,161

7,909,316

7,600,599

7,972,138

Total deposits

10,531,549

10,878,080

10,675,471

10,391,557

10,831,966

Broker-dealer and clearing organization payables

1,481,998

1,518,503

1,445,280

1,461,683

1,446,886

Short-term borrowings

990,807

676,882

680,979

734,508

705,008

Securities sold, not yet purchased, at fair value

63,346

37,955

65,119

59,766

63,171

Notes payable

148,645

148,587

148,530

148,475

198,043

Operating lease liabilities

106,166

100,155

104,134

104,972

110,815

Other liabilities

205,621

287,226

269,297

234,467

227,988

Total liabilities

13,528,132

13,647,388

13,388,810

13,135,428

13,583,877

Common stock

585

595

613

630

642

Additional paid-in capital

953,176

973,072

998,644

1,022,474

1,037,138

Accumulated other comprehensive loss

(82,348

)

(79,877

)

(87,254

)

(94,748

)

(100,654

)

Retained earnings

1,272,618

1,274,611

1,276,539

1,270,286

1,262,586

Total Hilltop stockholders' equity

2,144,031

2,168,401

2,188,542

2,198,642

2,199,712

Noncontrolling interests

29,693

29,205

27,698

28,203

29,110

Total stockholders' equity

2,173,724

2,197,606

2,216,240

2,226,845

2,228,822

Total liabilities & stockholders' equity

15,701,856

15,844,994

15,605,050

15,362,273

15,812,699

(1)

At March 31, 2026, the amortized cost of the available for sale securities portfolio was $1,537,980, while the fair value of the held to maturity securities portfolio was $702,496.

Three Months Ended

Consolidated Income Statements

March 31,

December 31,

September 30,

June 30,

March 31,

(in 000's, except per share data)

2026

2025

Interest income:

Loans, including fees

130,086

133,546

135,773

131,793

124,692

Securities borrowed

14,203

17,753

21,175

20,544

15,809

Securities:

Taxable

26,919

25,088

25,452

25,811

24,782

Tax-exempt

3,021

3,509

3,512

3,087

2,613

Other

10,061

13,913

14,349

15,946

24,903

Total interest income

184,290

193,809

200,261

197,181

192,799

Interest expense:

Deposits

48,325

54,167

57,001

57,056

60,051

Securities loaned

12,842

16,020

19,430

17,662

14,736

Short-term borrowings

7,587

7,637

7,867

7,694

8,103

Notes payable

2,355

2,317

2,404

3,106

3,653

Other

1,084

1,141

1,171

989

1,139

Total interest expense

72,193

81,282

87,873

86,507

87,682

Net interest income

112,097

112,527

112,388

110,674

105,117

Provision for (reversal of) credit losses

1,765

7,824

(2,511

)

(7,340

)

9,338

Net interest income after provision for (reversal of) credit losses

110,332

104,703

114,899

118,014

95,779

Noninterest income (1):

Net gains from sale of loans and other mortgage production income

50,972

49,580

51,730

51,945

45,281

Mortgage loan origination fees

21,910

26,602

24,850

28,738

22,451

Principal transactions, commissions and fees

66,534

76,033

74,066

47,856

55,313

Investment banking, advisory and administrative fees

36,920

47,627

53,349

43,730

36,628

Other

12,079

17,518

13,812

20,365

53,667

Total noninterest income

188,415

217,360

217,807

192,634

213,340

Noninterest expense:

Employees' compensation and benefits

168,962

187,960

190,027

176,410

176,240

Occupancy and equipment, net

19,829

20,818

19,930

21,064

19,782

Professional services

11,245

12,386

12,681

10,820

4,114

Other

48,267

47,757

49,265

52,882

51,337

Total noninterest expense

248,303

268,921

271,903

261,176

251,473

Income before income taxes

50,444

53,142

60,803

49,472

57,646

Income tax expense

11,425

10,218

14,129

11,583

13,114

Net income

39,019

42,924

46,674

37,889

44,532

Less: Net income attributable to noncontrolling interest

1,183

1,340

856

1,816

2,416

Income attributable to Hilltop

37,836

41,584

45,818

36,073

42,116

Earnings per common share:

Basic

0.64

0.69

0.74

0.57

0.65

Diluted

0.64

0.69

0.74

0.57

0.65

Cash dividends declared per common share

0.20

0.18

Weighted average shares outstanding:

Basic

59,124

60,457

62,146

63,637

64,613

Diluted

59,207

60,498

62,168

63,638

64,615

(1)

During the three months ended December 31, 2025, certain financial statement line items within the noninterest income section of the consolidated income statement were reclassified to better align disclosures to business activities. These reclassifications were applied retrospectively to all prior periods presented. Total noninterest income did not change as a result of these reclassifications.

Three Months Ended March 31, 2026

Segment Results

Mortgage

All Other and

Hilltop

(in 000's)

Banking

Broker-Dealer

Origination

Corporate

Eliminations

Consolidated

Net interest income (expense)

98,724

11,892

(927

)

1,429

979

112,097

Provision for (reversal of) credit losses

1,759

—

1,765

Noninterest income

11,081

104,175

72,969

1,429

(1,239

)

188,415

Noninterest expense

60,984

101,285

74,401

11,893

(260

)

248,303

Income (loss) before taxes

47,062

14,776

(2,359

)

(9,035

)

—

50,444

Three Months Ended March 31, 2025

Segment Results

Mortgage

All Other and

Hilltop

(in 000's)

Banking

Broker-Dealer

Origination

Corporate

Eliminations

Consolidated

Net interest income (expense)

90,550

11,568

(1,397

)

(869

)

5,265

105,117

Provision for (reversal of) credit losses

9,372

(34

)

—

9,338

Noninterest income

10,810

96,937

67,775

43,379

(5,561

)

213,340

Noninterest expense

51,930

99,323

74,660

25,891

(331

)

251,473

Income (loss) before taxes

40,058

9,216

(8,282

)

16,619

57,646

March 31,

December 31,

September 30,

June 30,

March 31,

Capital Ratios

2026

2025

Tier 1 capital (to average assets):

PlainsCapital

9.54

10.60

10.74

10.71

10.22

Hilltop

12.82

12.78

13.13

13.11

12.86

Common equity Tier 1 capital (to risk-weighted assets):

PlainsCapital

12.71

14.49

14.81

15.08

15.06

Hilltop

19.08

19.70

20.33

20.74

21.17

Tier 1 capital (to risk-weighted assets):

PlainsCapital

12.71

14.49

14.81

15.08

15.06

Hilltop

19.08

19.70

20.33

20.74

21.17

Total capital (to risk-weighted assets):

PlainsCapital

13.77

15.60

15.96

16.29

16.31

Hilltop

21.50

22.20

22.90

23.38

24.45

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Selected Financial Data

2026

2025

Hilltop Consolidated:

Return on average stockholders' equity

7.12

7.60

8.35

6.62

7.82

Return on average assets

1.02

1.09

1.20

0.98

1.13

Net interest margin (1)

3.13

3.02

3.06

3.01

2.84

Net interest margin (taxable equivalent) (2):

As reported

3.15

3.04

3.09

3.04

2.86

Impact of purchase accounting

4 bps

3 bps

2 bps

4 bps

Book value per common share ($)

36.63

36.42

35.69

34.90

34.29

Shares outstanding, end of period (000's)

58,530

59,540

61,326

63,001

64,154

Dividend payout ratio (3)

31.25

26.17

24.41

31.75

27.62

Banking Segment:

Net interest margin (1)

3.38

3.29

3.23

3.16

2.97

Net interest margin (taxable equivalent) (2):

As reported

3.39

3.29

3.23

3.17

2.97

Impact of purchase accounting

5 bps

4 bps

2 bps

3 bps

Accretion of discount on loans ($000's)

1,260

961

572

588

1,045

Net recoveries (charge-offs) ($000's)

(4,305

)

(11,455

)

(282

)

(896

)

(4,257

)

Return on average assets

1.17

1.05

1.34

1.35

0.96

Fee income ratio

10.1

11.0

10.2

11.1

10.7

Efficiency ratio

55.5

54.1

51.7

55.4

51.2

Employees' compensation and benefits ($000's)

35,744

33,241

31,925

32,146

34,102

Broker-Dealer Segment:

Net revenue ($000's) (4)

116,067

138,374

144,494

109,653

108,505

Employees' compensation and benefits ($000's)

71,272

83,361

86,997

73,493

68,064

Variable compensation expense ($000's)

36,469

49,635

50,756

36,172

33,283

Compensation as a % of net revenue

61.4

60.2

67.0

62.7

Pre-tax margin (5)

12.7

18.4

18.3

5.8

8.5

Mortgage Origination Segment:

Mortgage loan originations - volume ($000's):

Home purchases

1,428,157

1,918,395

2,027,568

2,168,690

1,528,560

Refinancings

600,569

511,960

269,136

263,829

213,781

Total mortgage loan originations - volume

2,028,726

2,430,355

2,296,704

2,432,519

1,742,341

Mortgage loan sales - volume ($000's)

2,021,018

2,180,088

2,220,126

2,135,291

1,744,555

Net gains from mortgage loan sales (basis points):

Loans sold to third parties (6)

248

236

226

223

222

Broker fee income (7)

Impact of loans retained by banking segment

)

As reported

254

246

234

228

224

Mortgage servicing rights asset ($000's) (8)

20,045

17,491

12,273

7,887

6,903

Employees' compensation and benefits ($000's)

55,087

59,657

60,036

62,214

53,339

Variable compensation expense ($000's)

28,723

34,275

32,665

34,975

24,832

(1)

Net interest margin is defined as net interest income divided by average interest-earning assets.

(2)

Net interest margin (taxable equivalent), a non-GAAP measure, is defined as taxable equivalent net interest income divided by average interest-earning assets. Taxable equivalent adjustments are based on the applicable 21% federal income tax rate for all periods presented. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. The taxable equivalent adjustments to interest income for Hilltop (consolidated) were $0.8 million, $0.8 million, $1.0 million, $0.8 million and $0.6 million, respectively, for the periods presented and for the banking segment were $0.2 million, $0.1 million, $0.3 million, $0.1 million and $0.2 million, respectively, for the periods presented.

(3)

Dividend payout ratio is defined as cash dividends declared per common share divided by basic earnings per common share.

(4)

Net revenue is defined as the sum of total broker-dealer net interest income and total broker-dealer noninterest income.

(5)

Pre-tax margin is defined as income before income taxes divided by net revenue.

(6)

Net gains from mortgage loans sold to third parties reflects provisions for anticipated indemnification claims and penalties for early payoff of loans which had the effect of lowering such net gains from mortgage loans sold to third parties by 7, 8, 9, 7 and 17 basis points, respectively, for the periods presented.

(7)

Broker fee income is earned by the mortgage origination segment for facilitating mortgage loan transactions between PrimeLending customers and third-party mortgage lenders when the requested loan products are not offered by PrimeLending.

(8)

Reported on a consolidated basis and therefore does not include mortgage servicing rights assets related to loans serviced for the banking segment, which are eliminated in consolidation.

March 31,

December 31,

September 30,

June 30,

March 31,

Non-Performing Assets Portfolio Data

2026

2025

Loans accounted for on a non-accrual basis ($000's):

Commercial real estate:

Non-owner occupied

15,288

3,873

3,969

4,107

4,241

Owner occupied

10,218

5,617

7,119

6,429

6,535

Commercial and industrial

22,237

28,581

41,457

40,990

51,987

Construction and land development

844

1,010

1,007

3,667

3,256

1-4 family residential

12,419

14,367

14,701

17,550

15,458

Consumer

—

Broker-dealer

—

Non-accrual loans ($000's)

61,006

53,448

68,253

72,743

81,477

Non-accrual loans as a % of total loans

0.66

0.58

0.75

0.80

0.93

Other real estate owned ($000's)

8,473

8,020

8,289

9,144

7,682

Other repossessed assets ($000's)

—

Non-performing assets ($000's)

69,479

61,468

76,542

81,887

89,159

Non-performing assets as a % of total assets

0.44

0.39

0.49

0.53

0.56

Loans past due 90 days or more and still accruing ($000's) (1)

40,155

33,811

28,388

28,378

24,145

(1)

Loans past due 90 days or more and still accruing were primarily comprised of loans held for sale and guaranteed by U.S. government agencies, including loans that are subject to repurchase, or have been repurchased, by PrimeLending.

Three Months Ended March 31,

2026

2025

Average

Interest

Annualized

Average

Interest

Annualized

Net Interest Margin

Outstanding

Earned

Yield or

Outstanding

Earned

Yield or

(Taxable Equivalent) Details (1)

Balance

or Paid

Rate

Balance

or Paid

Rate

Assets

Interest-earning assets

Loans held for sale

845,782

12,353

5.84

709,094

11,438

6.45

Loans held for investment, gross (2)

8,297,552

117,733

5.75

7,890,745

113,254

5.82

Investment securities - taxable

2,529,893

26,919

4.26

2,455,590

24,782

4.04

Investment securities - non-taxable (3)

356,410

3,797

4.26

321,128

3,253

4.05

Federal funds sold and securities purchased under agreements to resell

87,371

963

4.47

100,691

1,820

7.33

Interest-bearing deposits in other financial institutions

857,761

7,541

3.57

2,037,462

21,192

4.22

Securities borrowed

1,435,543

14,203

3.96

1,390,797

15,809

4.55

Other

119,239

1,557

5.30

117,155

1,891

6.55

Interest-earning assets, gross (3)

14,529,551

185,066

5.17

15,022,662

193,439

5.22

Allowance for credit losses

(91,822

)

(100,704

)

Interest-earning assets, net

14,437,729

14,921,958

Noninterest-earning assets

1,003,519

1,012,700

Total assets

15,441,248

15,934,658

Liabilities and Stockholders' Equity

Interest-bearing liabilities

Interest-bearing deposits

7,881,301

48,325

2.49

8,186,423

60,051

2.97

Securities loaned

1,420,058

12,842

3.67

1,381,819

14,736

4.33

Notes payable and other borrowings

959,120

11,026

4.66

1,065,835

12,895

4.91

Total interest-bearing liabilities

10,260,479

72,193

2.85

10,634,077

87,682

3.34

Noninterest-bearing liabilities

Noninterest-bearing deposits

2,728,216

2,696,247

Other liabilities

267,998

391,617

Total liabilities

13,256,693

13,721,941

Stockholders’ equity

2,155,173

2,184,937

Noncontrolling interest

29,382

27,780

Total liabilities and stockholders' equity

15,441,248

15,934,658

Net interest income (3)

112,873

105,757

Net interest spread (3)

2.32

1.88

Net interest margin (3)

3.15

2.86

(1)

Information presented on a consolidated basis (dollars in thousands).

(2)

Average balance includes non-accrual loans.

(3)

Presented on a taxable-equivalent basis with annualized taxable equivalent adjustments based on the applicable 21% federal income tax rate for the periods presented. The adjustment to interest income was $0.8 million and $0.6 million for the three months ended March 31, 2026 and 2025, respectively.

Conference Call Information

Hilltop will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, April 24, 2026. Hilltop Chairman, President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review first quarter 2026 financial results. Interested parties can access the conference call by dialing 800-715-9871 (Toll Free North America) or (+1) 646-307-1963 (International Toll) and then using the conference ID 4151629. The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website ( http://ir.hilltop.com).

About Hilltop

Hilltop Holdings is a Dallas-based financial holding company. Its primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank. PlainsCapital Bank’s wholly owned subsidiary, PrimeLending, provides residential mortgage lending throughout the United States. Hilltop Holdings’ broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. At March 31, 2026, Hilltop employed approximately 3,520 people and operated 303 locations in 47 states. Hilltop Holdings’ common stock is listed on the New York Stock Exchange and NYSE Texas under the symbol “HTH.” Find more information at Hilltop.com, PlainsCapital.com, PrimeLending.com and Hilltopsecurities.com.

FORWARD-LOOKING STATEMENTS

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated or implied in such statements. Forward-looking statements speak only as of the date they are made and, except as required by law, we do not assume any duty to update forward-looking statements. Such forward-looking statements include, but are not limited to, statements concerning such things as our outlook, plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact, and may be identified by words such as “aim,” “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “position,” “probable,” “progressing,” “projects,” “prudent,” “seeks,” “should,” “steady,” “target,” “view,” “will,” “working” or “would” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: (i) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (ii) effectiveness of our data security controls in the face of cyber-attacks and any legal, reputational and financial risks following a cybersecurity incident; (iii) changes in general economic, market and business conditions in areas or markets where we compete, including changes in the price of crude oil; (iv) changes in the interest rate environment; (v) risks associated with concentration in real estate related loans; (vi) the effects of indebtedness on our ability to manage our business successfully, including the restrictions imposed by the indenture governing our indebtedness; (vii) disruptions to the economy and financial services industry, risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators, including increases in the cost of our deposit insurance assessments; (viii) cost and availability of capital; (ix) changes in state and federal laws, regulations or policies affecting one or more of our business segments, including changes in policies under the new Presidential administration, changes in regulatory fees, deposit insurance premiums, capital requirements and the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”); (x) changes in key management; (xi) competition in our banking, broker-dealer, and mortgage origination segments from other banks and financial institutions as well as investment banking and financial advisory firms, mortgage bankers, asset-based non-bank lenders and government agencies; (xii) legal and regulatory proceedings; and (xiii) our ability to use excess capital in an effective manner. For further discussion of such factors, see the risk factors described in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other reports that are filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement.