Hilltop Holdings Inc. Reports $44.5 Million Net Income in Q1 2025

Hilltop Holdings Inc. reported its financial results for the first quarter of 2025, revealing a net income of $44.5 million, or $0.65 per diluted share, compared to $29.5 million, or $0.42 per diluted share, in the same period last year. The company's total revenue for the quarter was $405.5 million, a 17.5% increase from $345.2 million in the first quarter of 2024. This growth was primarily driven by a rise in noninterest income, which reached $213.3 million, up from $181.6 million a year earlier, largely due to increased gains from the sale of loans and other mortgage production income.

In terms of operational metrics, Hilltop's total assets decreased to $15.8 billion as of March 31, 2025, down from $16.3 billion at the end of 2024. The decline in total assets was attributed to a reduction in cash and due from banks, which fell to $1.7 billion from $2.3 billion. Total deposits also decreased to $10.8 billion, down from $11.1 billion, reflecting a strategic shift in the company's funding approach amid competitive pressures in the banking sector. The company’s allowance for credit losses increased to $106.2 million from $101.1 million, reflecting a proactive stance in managing credit risk amid changing economic conditions.

Strategically, Hilltop completed a significant transaction in January 2025, selling its interest in Moser Acquisition, Inc. for a preliminary pre-tax gain of $30.5 million. This transaction was recorded as part of other noninterest income in the financial statements. Additionally, the company has initiated a stock repurchase program, authorizing the buyback of up to $100 million of its common stock, with $33.3 million spent on repurchases during the first quarter. The board also declared a quarterly cash dividend of $0.18 per share, consistent with the previous quarter.

The company’s banking segment contributed $40.1 million to income before taxes, while the broker-dealer segment added $9.2 million. However, the mortgage origination segment reported a loss of $8.3 million before taxes, reflecting ongoing challenges in the mortgage market due to fluctuating interest rates and economic uncertainties. The overall outlook for Hilltop remains cautious, with management highlighting the potential impacts of economic headwinds, including inflation and interest rate volatility, on future performance. The company continues to monitor these factors closely as it navigates the evolving financial landscape.