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

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

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

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(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.)