HTH earnings analysis
What we found in HTH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Hilltop delivered Q2 revenue of $315.809 million and diluted EPS of $0.63, with year-over-year NII and margin expansion plus strong broker-dealer execution offsetting weakness in mortgage origination. Revenue increased 4.1% year over year and 5.1% sequentially, while EPS increased 10.5% year over year but slipped from $0.64 in Q1. The principal offsets are PrimeLending's $2.015 million pretax loss, rising potential problem loans, declining deposits and continued macroeconomic uncertainty. Free cash flow and capex were not disclosed in the provided filing extract.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth and EPS beat
- Q2 total revenue, defined as net interest income plus noninterest income, increased 4.1% year over year to $315.809 million from $303.308 million; it also rose 5.1% sequentially from an implied Q1 level of $300.512 million. Diluted EPS increased 10.5% year over year to $0.63 from $0.57, though it declined 1.6% sequentially from $0.64 in Q1.
- NII and margin expanded
- Consolidated net interest income grew $5.177 million year over year to $115.851 million, while net interest margin expanded 20 basis points to 3.21% from 3.01%. Lower deposit funding costs were the principal driver: the average rate on interest-bearing deposits fell to 2.37% from 2.91%.
- Broker-dealer earnings improved
- Broker-dealer Q2 net revenue rose $14.321 million, or 13.1%, to $123.974 million, and pretax income nearly doubled to $12.379 million from $6.397 million. Structured-finance principal transactions, commissions and fees increased $8.982 million to $20.172 million.
- Loan growth supports banking NII
- Loans held for investment increased $360.975 million from year-end to $8.673 billion, including $133.993 million growth in non-owner-occupied CRE and $63.210 million in C&I loans. Banking net interest income rose $4.551 million to $99.470 million despite a $368.510 million decline in average interest-earning assets.
- Capital return accelerated
- Hilltop repurchased 2,488,216 shares for $94.5 million at an average $37.99 per share in the first half, and increased its repurchase authorization to $200.0 million in July; approximately $106 million remained available. The board also raised the quarterly dividend 10% to $0.22 per share.
- Holding-company liquidity remains solid
- Holding-company cash and cash equivalents increased $87.9 million from year-end to $300.6 million, aided by $235.0 million of subsidiary dividends. Hilltop states this liquidity is sufficient for foreseeable needs, while its CET1 ratio remained strong at 18.34% versus a 7.0% minimum including the conservation buffer.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Mortgage segment reverted to loss
- PrimeLending recorded a $2.015 million Q2 pretax loss, versus $3.210 million of pretax income a year earlier. The comparison includes a $9.5 million settlement received in Q2 2025, but management also cites continued affordability pressure, elevated rates and economic uncertainty; Q2 originations declined 1.6% to $2.394 billion.
- Problem loans and charge-offs increased
- Credit quality requires monitoring: potential problem loans increased to $186.7 million at June 30 from $124.9 million at December 31, while six-month net charge-offs rose to $7.472 million from $5.153 million. Management's downside macro scenario would increase the modeled allowance by approximately $52 million, to a 1.8% weighted-average expected loss rate.
- Funding mix became more borrowings-heavy
- Total deposits declined $364.027 million from December 31 to $10.514 billion, while short-term borrowings rose $566.332 million to $1.243 billion. Estimated uninsured deposits were $5.7 billion, or 55% of deposits, creating sensitivity to deposit flows and funding competition.
- Macro outlook remains a headwind
- Management expects tariffs, elevated energy prices, international armed conflicts, inflationary pressures and interest-rate uncertainty to continue adversely affecting operating results through the remainder of 2026. Its baseline forecast assumes unemployment rises from 4.2% in Q2 2026 to 4.6% in the first half of 2027.
- No formal risk-factor updates
- No material changes to the risk factors in the 2025 Form 10-K were reported in this 10-Q. Nevertheless, the filing identifies $3.814 billion of commercial real-estate loans, including $516.842 million in office loans, as an area requiring continued credit-risk oversight.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.63
- Segment
- Banking: $111.682 million of Q2 net revenue ($99.470 million net interest income plus $12.212 million noninterest income), versus $106.811 million a year earlier.
- Segment
- Broker-dealer: $123.974 million of Q2 net revenue, versus $109.653 million a year earlier.
- Segment
- Mortgage origination: $78.103 million of Q2 net revenue ($78.969 million noninterest income less $0.866 million net interest expense), versus $87.946 million a year earlier.
What they said about what is next.
The 10-Q does not provide company-wide revenue or EPS guidance. Management expects third-quarter 2026 mortgage production to approximate Q2 2026 production of $2.394 billion, citing continuing seasonal home-purchase activity.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 24, 2026
- Hilltop reported Q1 2026 diluted EPS of $0.64 and consolidated revenue of $300,512,000 (net interest income $112,097,000 + noninterest income $188,415,000). Net interest income rose 7% year-over-year while total…
- 10-K · February 13, 2026
- Hilltop Holdings positions itself as a diversified, Texas-based financial holding company focused on banking, broker-dealer and mortgage origination businesses, pursuing organic growth and acquisitions ("We endeavor to…
- 10-Q · April 28, 2025
- Hilltop reported Q1 2025 diluted EPS of $0.65 and net income of $44,532,000, up from $0.42 and $29,522,000 in Q1 2024. Net interest income was $105,117,000 and noninterest income rose to $213,340,000, while net cash…
- 10-K · February 14, 2025
- Hilltop Holdings describes a diversified financial-services strategy built on a Texas-centric banking franchise, a broker-dealer, and a national mortgage origination business (PrimeLending). At December 31, 2024 the…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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