Hilltop Holdings Inc. reported its financial results for the third quarter of 2025, revealing a net income of $46.7 million, or $0.74 per diluted share, compared to $32.9 million, or $0.46 per diluted share, for the same period in 2024. For the nine months ended September 30, 2025, the company achieved a net income of $129.1 million, or $1.95 per diluted share, up from $85.3 million, or $1.19 per diluted share, in the prior year. The increase in profitability was attributed to a rise in net interest income, which reached $112.4 million for the quarter, a 7% increase from $105.0 million in the previous year, and a reversal of credit losses amounting to $2.5 million, compared to a provision of $1.3 million in the same quarter last year.
Total revenue for the third quarter was $330.2 million, reflecting a 9% increase from $303.4 million in the prior year. This growth was driven by a 9% rise in noninterest income, which totaled $217.8 million, compared to $200.4 million in the same quarter of 2024. The broker-dealer segment contributed significantly to this increase, with noninterest income rising due to higher securities commissions and fees. However, the mortgage origination segment experienced a decline in noninterest income, primarily due to lower mortgage loan origination fees and net gains from the sale of loans.
In terms of operational metrics, Hilltop's total assets decreased to $15.6 billion as of September 30, 2025, down from $16.3 billion at the end of 2024. The company reported a decrease in total deposits to $10.7 billion, compared to $11.1 billion at the end of the previous year. The decline in deposits was attributed to competitive pressures and a shift in customer preferences towards higher-yielding interest-bearing accounts. The company’s allowance for credit losses stood at $95.2 million, representing 1.16% of total loans held for investment, which increased to $8.2 billion from $7.9 billion at the end of 2024.
Strategically, Hilltop has been active in managing its capital structure, redeeming $150 million in senior notes and $50 million in subordinated notes during the year. The company also announced an increase in its stock repurchase program to $185 million, with $123.2 million spent on repurchases in the first nine months of 2025. Looking ahead, Hilltop anticipates continued challenges in the mortgage origination segment due to fluctuating interest rates and economic uncertainties, but remains focused on maintaining its capital position and managing liquidity effectively.
Overall, Hilltop Holdings Inc. demonstrated solid financial performance in the third quarter of 2025, with significant contributions from its banking and broker-dealer segments, while navigating challenges in the mortgage origination market. The company’s proactive measures in capital management and strategic investments position it well for future growth amidst a dynamic economic landscape.
About Hilltop Holdings Inc.
Hilltop Holdings Inc. is a diversified Texas-based financial holding company offering banking, broker-dealer, and mortgage origination services. Its primary operations include retail and commercial banking, investment banking, and residential mortgage lending across the U.S. The company emphasizes personalized customer service, organic growth, and strategic acquisitions, supported by strong capital positions and extensive regulatory compliance within the financial services industry.
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