Hilltop Holdings Inc.

Hilltop reported second-quarter 2026 net income of $36.5 million, or $0.63 per diluted share. Net interest income was $116 million, up 5.0% year over year, and noninterest income was up 4.0% year over year; noninterest expense rose 2.0% to $267 million, largely from variable compensation. Net interest margin increased 8 basis points sequentially to 3.21%, while PlainsCapital Bank’s margin reached 3.42%. The company recorded a $1 million net reversal in provision for credit losses, and the allowance for credit losses declined $4 million to $85 million. For full-year 2026, management increased expected average loan growth to 5.0% to 7.0%. Management also said the broker-dealer fee guide is negative 3.0% to 1.0%, and expects NIM to moderate slightly or remain near current levels in the second half, with net interest income relatively stable.

Jeremy Blue Ford emphasized that PlainsCapital Bank’s loan pipeline remains robust and that the Texas economy continues to provide a healthy backdrop. He said the bank is well positioned for organic growth despite rising competition, and reiterated a commitment to recruiting relationship-based bankers and investing behind the bank’s momentum. On the broker-dealer side, he described strong first-half performance and said the firm remains focused on deepening client connectivity across core businesses.

William Furr highlighted the quarter’s financial drivers: $36.5 million of income attributable to common shareholders, $116 million of net interest income, and a $1 million provision reversal. He pointed to lower deposit costs, a shift in the balance sheet toward loans, and higher revenue in structured finance and wealth management as key supports, while noting mortgage revenue remained pressured and gain-on-sale margin declined to 217 basis points. He also said average total deposits were about $10.4 billion, interest-bearing deposit costs fell to 3.27%, the ACL ended at $85 million, and the company returned $11.6 million to stockholders through dividends and repurchased $47 million in shares.

Analysts focused on loan growth, deposit trends, broker-dealer sensitivity to rates, and capital returns. Management said loan yields are currently running in the 6.5% to 7.0% range depending on asset class, repricing benefits should be modest, and the loan-to-deposit ratio is moving toward a more normalized level around 85% over time. On broker-dealer outlook, management said a steeper curve helps fixed income, higher rates can pressure public finance and sweep fees, and they remain constructive on public finance, wealth management, and structured finance. On capital deployment, they said organic growth remains first priority, capital return second, and they still have ample capacity for M&A.