- Hilltop Holdings Inc. reports a 52% increase in net income for Q1 2025, rising to $42.1 million compared to $27.7 million in Q1 2024.
- The company declared a quarterly cash dividend of $0.18 per share, payable on May 22, 2025.
- A 17.5% rise in noninterest income was noted, mainly due to a $30.5 million gain from a merchant bank equity investment sale.
Hilltop Holdings Inc. (HTH, Financial) announced robust financial results for the first quarter of 2025, reporting a net income of $42.1 million, or $0.65 per diluted share, marking a significant increase from $27.7 million, or $0.42 per diluted share, in the same period of 2024.
The financial performance was buoyed by a notable preliminary gain from the sale of operations by a merchant bank equity investment, which contributed a pre-tax gain of $30.5 million ($23.6 million net of tax) to noninterest income. This was a part of the company's strategy to optimize its investment portfolio.
Despite the challenging economic conditions, Hilltop's banking segment remained resilient, though its pre-tax income was affected by a $9.4 million provision for credit losses. However, net interest income and net interest margin held steady. Meanwhile, Hilltop’s brokerage segment faced headwinds in its Fixed Income Services line, leading to an 8.5% pre-tax margin.
The mortgage origination segment showed a slight increase in noninterest income with a 1.6% rise in mortgage production income compared to the previous year, despite a static production volume of $1.7 billion.
The company's book value per share increased to $34.29 as of March 31, 2025, from $33.71 at the end of 2024. Moreover, Hilltop announced a quarterly cash dividend of $0.18 per common share, to be paid on May 22, 2025, with a record date of May 8, 2025.
During the first quarter, Hilltop executed a share repurchase program, buying back 1,046,540 shares at an average price of $31.80 per share, totaling $33.3 million, thereby enhancing shareholder value.
Despite uncertainties in the economic landscape, including potential changes in U.S. Treasury yields and mortgage interest rates, Hilltop maintains a solid capital position, with a Tier 1 Leverage Ratio of 12.86% and a Common Equity Tier 1 Capital Ratio of 21.29% as of March 31, 2025.
