CORRECTED-Hilltop Holdings Q2 net income edges up

Corrects table to specify pretax loss was only for the PrimeLending segment, and fixes figure to $2.0 million from $2.4 billion

Overview

• U.S. financial holding company reported Q2 net income up slightly, with diluted EPS rising yr/yr

• Company raised quarterly dividend by 10% and repurchased $47 mln in shares in Q2

• Mortgage origination unit posted pre-tax loss as higher rates subdued summer homebuying

Outlook

• Company expects adverse impacts on results from economic uncertainty and market volatility for remainder of 2026

• Hilltop says it will focus on executing strategic priorities and prudent capital management in H2 2026

Result Drivers

• BANKING SEGMENT - PlainsCapital Bank benefited from core loan growth and higher net interest margin, supporting pre-tax income

• MORTGAGE HEADWINDS - PrimeLending posted a pre-tax loss as higher mortgage rates led to a subdued start to the summer homebuying season

• STRONG WEALTH & STRUCTURED FINANCE - HilltopSecurities' results were driven by strong quarters in Wealth Management and Structured Finance

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", 4 "hold" and no "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 $40.00, about 4.9% above its July 22 closing price of $38.14

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 23 - Huntington Bancshares' quarterly profit rises on interest income boost

• July 21 - Equifax sees downbeat annual revenue amid tough mortgage market

• July 22 - US 30-year mortgage hits 11-month high, MBA says

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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.)