Hilltop Holdings Q3 net income, EPS fall on higher credit loss provisions

By Reuters News


Overview

  • US regional bank's Q3 net income and EPS declined yr/yr amid higher credit loss provisions

  • Company repurchased $20 mln of stock during Q3 under 2026 buyback program

  • Rising interest rates and market volatility weighed on mortgage and interest rate-sensitive businesses


Outlook

  • Company expects adverse impact on operating results to continue for remainder of 2026 due to economic conditions

  • Hilltop cites uncertainty from political environment, tariffs, and interest rates as factors for 2026 outlook


Result Drivers

  • NET INTEREST MARGIN - PlainsCapital Bank saw net interest margin expansion and earning asset growth, partially offset by higher credit loss provisions

  • MORTGAGE RATE IMPACT - PrimeLending's results were negatively affected by rising mortgage rates, which reduced purchase activity and loan values

  • PUBLIC FINANCE & WEALTH MANAGEMENT - HilltopSecurities' Public Finance Services and Wealth Management business lines drove segment profitability


Company press release: Full Story


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.44

Q3 PrimeLending Pretax Loss

$11 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Hilltop Holdings Inc. is $41.00, about 12.3% above its October 21 closing price of $36.50

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

  • Oct 20 - Synchrony Financial's Q3 net earnings fall 17%

  • Oct 20 - Ally Financial Q3 adjusted revenue beats estimates

  • Oct 20 - Northrop Grumman Q3 revenue slightly misses; lifts 2026 profit guidance on strong demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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