Hilltop (HTH) Q4 2025 earnings summary

Executive summary

• Q4 2025 net income was $42 million ($0.69 per diluted share), with full-year net income of $166 million, up 46% year-over-year.

• PlainsCapital Bank delivered $43.5 million pre-tax income in Q4, while PrimeLending posted a $5 million pre-tax loss; HilltopSecurities achieved $26 million pre-tax income and an 18% pre-tax margin.

• $229 million was returned to shareholders in 2025 via dividends and share repurchases.

• Board declared a quarterly cash dividend of $0.20 per share, an 11% increase, and authorized a new $125 million stock repurchase program.

• Return on average assets for Q4 was 1.1%, and return on average equity was 7.6%.

Financial highlights

• Q4 net interest income grew 7% year-over-year; noninterest income grew 11% to $217.4 million.

• Full-year total revenue was $1.3 billion, up 8%; efficiency ratio improved to 81.5% in Q4.

• Net interest margin for Q4 expanded to 3.29% at PlainsCapital Bank and 3.02% consolidated.

• Allowance for credit losses ended Q4 at $91.5 million (1.1% of loans), with a $7.8 million provision in Q4.

• Tangible book value per share increased to $31.83 at year-end 2025.

Outlook and guidance

• Expecting 4%-6% average bank loan growth in 2026, excluding PrimeLending and Mortgage Warehouse Lending.

• Broker-dealer pre-tax margin guidance remains at 10%-14% for 2026.

• Guidance assumes three Fed rate cuts in 2026; each 25 bps cut impacts NII by ~$4.5 million annually.

• Non-variable expenses expected to increase 0%-2%, remaining stable at $180–$190 million per quarter.

• Effective tax rate anticipated at 22%-24%.