Hilltop Holdings Inc. Reports $37.9 Million Net Income for Q2 2025

Hilltop Holdings Inc. reported its financial results for the second quarter of 2025, revealing a net income of $37.9 million, or $0.57 per diluted share, compared to $22.9 million, or $0.31 per diluted share, in the same period last year. For the first half of 2025, the company achieved a net income of $82.4 million, or $1.22 per diluted share, up from $52.4 million, or $0.74 per diluted share, in the first half of 2024. The increase in profitability was attributed to a reversal of credit losses and a rise in net interest income, which reached $110.7 million for the quarter, a 6.5% increase from $103.7 million in the prior year.

Total revenue for the second quarter was $303.3 million, slightly down from $303.6 million in the same quarter of 2024. The decline was primarily due to a decrease in noninterest income, which totaled $192.6 million, compared to $193.3 million a year earlier. The banking segment contributed significantly to the overall performance, with a net interest income of $94.9 million, reflecting a 3% increase year-over-year. The broker-dealer segment also showed resilience, generating $6.4 million in income before taxes, although it was a decrease from $7.2 million in the previous year.

In terms of operational metrics, Hilltop's total assets decreased to $15.4 billion as of June 30, 2025, down from $16.3 billion at the end of 2024. The decline was largely driven by a reduction in cash and due from banks, which fell to $982.5 million from $2.3 billion. Total deposits also decreased to $10.4 billion, down from $11.1 billion, reflecting a competitive environment for deposit gathering. The company’s loans held for investment increased to $8.1 billion, up from $7.9 billion, with a notable increase in commercial real estate loans.

Strategically, Hilltop has been active in managing its capital structure, redeeming $150 million in senior notes and $50 million in subordinated notes during the first half of 2025. The company also initiated a stock repurchase program, repurchasing approximately 2.2 million shares for $68.2 million. Looking ahead, Hilltop anticipates continued challenges from economic uncertainties, including interest rate fluctuations and inflationary pressures, which may impact its operating results. The company remains focused on maintaining its capital ratios above regulatory requirements, with a common equity Tier 1 capital ratio of 20.74% as of June 30, 2025, well above the minimum requirement.