Hilltop Hldgs (NYSE:HTH) reported first-quarter financial results on Friday. The transcript from the company’s first-quarter earnings call has been provided below.
Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more.
View the webcast at https://events.q4inc.com/attendee/472534358
Summary
Hilltop Holdings Inc reported a net income of approximately $38 million or $0.64 per diluted share for the first quarter of 2026, with a return on average assets of 1% and return on average equity of 7.1%.
Plains Capital Bank experienced a favorable net interest margin of 3.38% and generated $47 million in pre-tax income, supported by active management of the deposit portfolio and growth in core loans and deposits.
Prime Lending narrowed its pre-tax loss to $2 million, benefiting from higher loan origination volumes and improved gain on sale margins, though overall profitability remains challenged by affordability issues and interest rate volatility.
Hilltop Securities delivered strong earnings with pre-tax income of $15 million and net revenue of $116 million, driven by solid performance in public finance services, structured finance, and wealth management.
The company maintains strong capital levels with a common equity tier 1 capital ratio of 19.1%, and returned $11.8 million to stockholders through dividends and $47.5 million in share repurchases.
Future outlook anticipates continued growth in core deposits and loans, with expectations for modest seasonal volatility, and a stable net interest income despite competitive pressures.
Management remains focused on strategic investments in technology and client-facing resources to drive productivity and future growth, while maintaining caution amidst geopolitical and economic uncertainties.
Full Transcript
Jordan (Operator)
Thank you for standing by. My name is Jordan and I’ll be your conference operator today. At this time, I would like to welcome everyone to Hilltop Holdings Inc First Quarter 2026 Earnings Conference Call and webcast. All lines have been placed on mute to prevent any background noise. After the Speaker’s remarks, there will be a question and answer session. If you’d like to ask a question during this time, simply press STAR followed by the number one on your telephone keypad. If you’d like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Matt Dunn. Please go ahead. Thank you.
Matt Dunn
Before we get started, please note that certain statements during today’s presentation that are not statements of historical fact, including statements concerning such items as our outlook, business strategy, future plans, financial condition, credit risks and trends in credit allowance for credit losses, liquidity and sources of funding, funding costs, dividends, stock repurchases, subsequent events and impacts of interest rate changes. As well as such, other items referenced in the preface of our presentation are forward looking statements. These statements are based on management’s current expectations concerning future events that by their nature are subject to risks and uncertainties. Our actual results, capital liquidity and financial condition may differ materially from these statements due to a variety of factors, including the precautionary statements referenced in the preface of our presentation and those included in our most recent annual and quarterly reports filed with the SEC. Please note that certain information presented is preliminary and based upon data available at this time. Except to the extent required by law, we expressly disclaim any obligation to update earlier statements as a result of new information. Additionally, this presentation includes certain non-GAAP measures including tangible common equity and tangible book value per share. A reconciliation of these measures to the nearest GAAP measure may be found in the appendix to this presentation, which is posted on our website@ir.hilltop.com. I will now turn the call over to Jeremy Ford.
Jeremy Ford
Thank you, Matt and good morning. For the first quarter, Hilltop reported net income of approximately $38 million or $0.64 per diluted share. Return on average assets for the period was 1% and return on average equity was 7.1%. To summarize, the quarter, PlainsCapital Bank reported a continued expansion in net interest margin while generating year over year growth in both core loans and core deposits. PrimeLending narrowed its operating loss when compared to the first quarter of 2025 as the mortgage business benefited from higher origination volumes and Hilltop Securities delivered strong earnings as net revenues across its business lines showed good momentum to start the year at PlainsCapital Bank. A favorable 3.38% net interest margin and the continued execution on a robust loan pipeline helped to produce $47 million of pre tax income and and a 1.2% return on average assets for the quarter. Operating results at the bank were supported by active management of the deposit portfolio and a further remixing of earning assets into core loans. This combination led to an increase in net interest income of $8 million versus the first quarter of 2025. Results in the quarter included a $1.8 million provision expense. This was largely driven by a stressed auto note credit that we have discussed in prior quarters. Will is going to provide further commentary on credit in his prepared remarks. The bank is poised to deliver continued core loan growth as we seek to organically recruit talented bankers to our platform and expand on our existing customer base by offering value enhancing products and services. Additionally, we expect to grow core deposits on a year over year basis, but we anticipate modest seasonal seasonal volatility in core deposit balances. We believe the backdrop of a healthy Texas economy and a constructive shape to the yield curve will continue to provide a favorable operating environment for PlainsCapital Bank moving to PrimeLending where the company reported a pre tax loss of $2 million during the first quarter. The improvement in financial results was primarily driven by year over year increases in loan origination volumes and gain on sale margins as well as cost structure enhancements that were implemented in 2025. However, overall profitability within the mortgage business remains under pressure from stubborn headwinds such as affordability and the interest rate lock. In effect, the spring and summer months historically drive elevated origination volumes at PrimeLending. However, persistent volatility in long term interest rates creates greater uncertainty around second and third quarter production than in a typical year. Given the structural challenges that homebuyers currently face, we anticipate that overall volumes will be materially impacted by prevailing mortgage rates. We remain focused on achieving internal productivity metrics to best position the business for profitability in this prolonged mortgage cycle. During the quarter, Hilltop Securities generated pre tax income of $15 million on net revenue of $116 million for a pre tax margin of 12.7%. Speaking to the business lines at Hilltop Securities, Public Finance Services continued to produce solid top line results as it delivered 23.6 million DOL net revenue which is a modest decline versus last year’s robust first quarter. Structured finance showed strength in a volatile interest rate environment as the business line delivered net revenue of $23.6 million benefiting from a material increase in TBA lock volume on a year over year basis in wealth management results further improved versus the prior year’s first quarter from higher advisory fees and transaction fees. We continue to see organic growth in the wealth business in the midst of a competitive operating environment. Finally, Fixed income services delivered $14 million of net revenue which was a 58% increase compared to the first quarter of 2025, primarily from strong sales volumes. Despite the highly volatile interest rate environment, Hilltop Securities produced a solid first quarter and improve pre tax income by 60% on a year over year basis. The firm continues to add scale to our core competencies and deliver value to our clients. Moving to page four, Hilltop maintains strong capital levels with a common equity tier 1 capital ratio of 19.1%. Additionally, tangible book value per share increased to $31.97 during the period. We returned $11.8 million to stockholders through dividends and repurchased $47.5 million in shares. Thank you and I’ll now turn the presentation over to Will to discuss our financials in more detail.
Will
Thank you, Jeremy and I’ll start on page five. As Jeremy discussed, for the first quarter of 2026, Hilltop reported consolidated income attributable to common stockholders $37.8 million, equating to $0.64 per diluted share. Quarter’s results included 7% growth in net interest income driven by ongoing efforts …
This post was originally published here
