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Investing.com -- Hilltop Holdings Inc. (NYSE:HTH) reported third-quarter earnings that exceeded analyst expectations, but shares fell 2% in after-hours trading Thursday as investors focused on continued weakness in the company’s mortgage origination segment.
The Dallas-based financial holding company posted earnings of $0.74 per diluted share for the third quarter, significantly beating the analyst consensus of $0.51. Revenue reached $332.71 million, surpassing estimates of $310.62 million. Net income rose to $45.8 million compared to $29.7 million in the same period last year.
Despite the strong overall performance, Hilltop’s mortgage origination segment recorded a pre-tax loss of $7.2 million during the quarter. Mortgage loan origination fees declined 22.6% YoY to $24.9 million, while total mortgage production volume remained flat at $2.3 billion compared to the third quarter of 2024.
"A dampened summer home-buying market weighed down PrimeLending’s operating results," said Jeremy B. Ford, Chairman, President and CEO of Hilltop. "We continue to actively manage down fixed expenses within our mortgage origination business."
The banking segment showed strength with pre-tax income of $54.7 million, driven by net interest margin expansion to 3.23% from 3.05% in the year-ago quarter. The broker-dealer segment also performed well, generating pre-tax income of $26.5 million on net revenues of $144.5 million, resulting in an 18% pre-tax margin.
Hilltop maintained strong capital levels with a Tier 1 Leverage Ratio of 13.13% and returned $66 million to stockholders through $11 million in dividends and $55 million in share repurchases during the quarter. The company’s board also authorized a $50 million increase to its share repurchase program, bringing the total available capacity to approximately $62 million.
The company declared a quarterly cash dividend of $0.18 per share, payable on November 21, 2025.
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