Hilltop Holdings Q3 Earnings Beat on Y/Y Increase in Revenues

Hilltop Holdings Inc.’s HTH third-quarter 2025 earnings of 74 cents per share handily beat the Zacks Consensus Estimate of 49 cents. Moreover, the bottom line surged 60.9% from the prior-year quarter.Results primarily benefited from higher net interest income (NII) and non-interest income. Also, higher loan balances and an improvement in credit quality were other positives. However, an increase in non-interest expenses was the spoilsport.Net income attributable to common stockholders was $45.8 million, up 54.3% year over year. Our estimate for the metric was $27.9 million.Hilltop Holdings’ Revenues Improve, Expenses RiseNet revenues in the third quarter were $330.2 million, which rose 8.1% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $308.3 million.NII increased 7% year over year to $112.4 million. Our estimate for the metric was $111 million.The net interest margin (NIM) (taxable-equivalent basis) was 3.09%, which expanded 24 basis points (bps) year over year. We had expected NIM to be 3.07%.Non-interest income was $217.8 million, up 8.7% year over year. The rise was driven by an increase in all components, except for mortgage loan origination fees. We had projected the metric to be $197 million.Non-interest expenses rose 2.9% from the prior-year quarter to $271.9 million. We projected total non-interest expenses of $264.7 million.As of Sept. 30, 2025, net loans held for investment were $8.1 billion, up 2.1% sequentially. Total deposits were $10.7 billion, up 2.7% from the end of the previous quarter. Our estimates for net loans held for investment and total deposits were $8.1 billion and $10.8 billion, respectively.Hilltop Holdings’ Credit Quality ImprovesIn the third quarter of 2025, Hilltop Holdings recorded a reversal of credit losses of $2.5 million compared with $1.3 million in the prior-year quarter.As of Sept. 30, 2025, non-performing assets, as a percentage of total assets, were 0.49%, which decreased 10 bps from the year-ago quarter.HTH’s Profitability Ratios Improve, Capital Ratios WorsenReturn on average assets at the end of the reported quarter was 1.20%, up from the prior-year quarter’s 0.84%. The return on average stockholders’ equity was 8.35%, which increased from 5.51%.The common equity tier 1 capital ratio was 20.33% as of Sept. 30, 2025, down from 20.48% in the corresponding period of 2024. The total capital ratio was 22.90%, down from the year-ago period’s 23.68%.HTH’s Share Repurchase UpdateIn the reported quarter, the company repurchased shares worth $55.1 million at an average price of $32.36 per share.In October, HTH’s board of directors authorized an increase in the repurchase authorization to $185 million.Our Take on Hilltop HoldingsHTH’s business restructuring efforts and improving fee income, along with relatively decent loan demand, will aid the top line. However, subdued Mortgage Origination segment performance and deteriorating asset quality are worrisome.Hilltop Holdings Inc. Price, Consensus and EPS Surprise Hilltop Holdings Inc. price-consensus-eps-surprise-chart | Hilltop Holdings Inc. QuoteHilltop Holdings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksZions Bancorporation’s ZION third-quarter 2025 adjusted EPS of $1.54 beat the Zacks Consensus Estimate of $1.40. Moreover, the bottom line rose 12.4% from the year-ago quarter.The results were primarily aided by higher NII and non-interest income. Additionally, a higher deposit balance was a positive. However, a rise in adjusted non-interest expenses and provisions, alongside a decline in loans, was a major headwind for ZION.F.N.B. Corporation’s FNB third-quarter 2025 adjusted earnings of 41 cents per share beat the Zacks Consensus Estimate of 37 cents. Also, the bottom line compared favorably with earnings of 34 cents in the prior-year quarter.FNB’s results benefited from growth in NII and non-interest income. Higher loans and deposits were other positives. However, higher provisions and adjusted expenses were the undermining factors.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zions Bancorporation, N.A. (ZION): Free Stock Analysis Report Hilltop Holdings Inc. (HTH): Free Stock Analysis Report F.N.B. Corporation (FNB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks