Hilltop (HTH) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $36.1 million ($0.57 per diluted share), up from $20.3 million in Q2 2024, driven by a reversal of credit losses and higher net interest income in banking.

• All major segments reported positive pre-tax income, with PlainsCapital Bank leading at $54.9 million.

• A $9.5 million legal settlement at PrimeLending contributed a nonrecurring after-tax gain of $7.4 million.

• $47 million was returned to stockholders through dividends and share repurchases; quarterly dividend of $0.18 per share declared.

• Board authorized an increase in the stock repurchase program to $135 million, with $67 million remaining capacity as of July 2025.

Financial highlights

• Net interest income for Q2 2025 was $110.7 million, up 7% year-over-year, driven by lower deposit and borrowing costs.

• Noninterest income was $192.6 million, flat year-over-year; noninterest expense rose 1.8% to $261.2 million.

• Reversal of credit losses was $7.3 million in Q2 2025, compared to a $10.9 million provision in Q2 2024.

• Book value per share at June 30, 2025 was $34.90; tangible book value per share was $30.56.

• Consolidated return on average assets was 0.98% and return on average equity was 6.62% for Q2 2025, up from 0.59% and 3.84% in Q2 2024.

Outlook and guidance

• Full-year average loan growth outlook adjusted to 0%–2% for 2025; deposit growth also projected at 0%–2%.

• Net interest income forecasted to rise 2%–4% for 2025, assuming two Fed rate cuts.

• Expense growth in non-variable costs guided higher due to inflation in personnel and software expenses.

• Management will continue to prioritize balance sheet protection and strategic execution amid economic uncertainty, including interest rate volatility and inflation.

• Uncertainties remain regarding the impact of central Texas flooding in July 2025 on loan portfolios.