New York, Jan 30, 2026, 15:27 EST — Regular session
- Shares gained roughly 3% in afternoon trading following Hilltop’s stronger Q4 profit and dividend hike
- The board greenlit a fresh $125 million share buyback plan set to run until January 2027
- With rate expectations shifting, investors turn their focus to the 2026 loan pipeline and looming credit costs
Shares of Hilltop Holdings Inc climbed 2.9% to $37.87 Friday afternoon. The Dallas-based lender and broker-dealer group reported stronger quarterly profits and boosted returns for shareholders.
The shift went against a weaker trend in U.S. financials, as the SPDR S&P Regional Banking ETF slipped 0.4% and the Financial Select Sector SPDR ETF fell by the same margin simultaneously.
Timing is key. Investors are fast to back banks that hold earnings steady amid shifting rates and stubborn funding costs. But they’re quick to penalize any hint of credit trouble. Hilltop straddles this tightrope, combining a Texas bank, a national mortgage platform, and a securities arm all in one. (Hilltop Holdings)
Hilltop reported late Thursday a quarterly profit of $41.6 million, or $0.69 per diluted share, for the period ending Dec. 31, up from $35.5 million, or $0.55, a year earlier. CEO Jeremy Ford described 2025 as “a strong year,” noting the company returned $231 million to shareholders through dividends and buybacks. (Business Wire)
The board bumped the quarterly dividend to $0.20 per share, with payment set for Feb. 27 to shareholders on record by Feb. 13. It also greenlit a fresh stock buyback plan, allowing up to $125 million through January 2027.
Hilltop repurchased roughly 1.8 million shares in the fourth quarter, shelling out $60.8 million. Throughout 2025, the company spent $184.0 million on buybacks, paying an average of $32.26 per share. By year-end, book value per share had risen to $36.42.
Mortgage results showed some movement but weren’t exactly steady. The company posted $2.4 billion in mortgage originations for the quarter, edging up from $2.3 billion a year ago. Meanwhile, gains on loans sold, other mortgage production income, and origination fees climbed to $76.2 million.
Loans at the bank, net of allowance, totaled $7.9 billion as of Dec. 31, while deposits reached $10.9 billion. The net interest margin—essentially the bank’s earnings on interest-bearing assets after funding costs—fell slightly to 3.02% from 3.06% in the previous quarter.
Credit remains the snag. Hilltop set aside a $7.8 million provision for credit losses, reversing some earlier gains this year, while non-accrual loans slipped to 0.58% of total loans from 0.75% at Sept. 30.
During Friday’s call, Ford told analysts the loan pipeline heading into 2026 stood at roughly $2.6 billion, which he described as “on the high side” for the bank. He added that rate changes still have a significant impact on earnings, estimating that each 25 basis point move — a quarter of a percentage point — could shift annual net interest income by about $4 million to $5 million. (The Motley Fool)
Traders will be focused on the outlook next week. Hilltop’s business mix reacts to rates moving either way: falling yields may squeeze certain bank spreads, yet they can boost mortgage demand and benefit segments of the securities operation.
This could easily backfire. Management pointed to uncertainty over Treasury yields, mortgage rates, funding costs, and inflation. They also emphasized that buyback authorizations might be adjusted up or down based on conditions and capital requirements.
Investors are zeroing in on two immediate markers: whether the $2.6 billion pipeline actually turns into funded loans, and if the new repurchase program sees any action. The dividend record date is Feb. 13, with payments set for Feb. 27.
