Hilltop (HTH) investor relations material

Executive summary

• Net income for Q2 2026 was $36.5 million ($0.63 per diluted share), up from $36.1 million ($0.57 per share) in Q2 2025, with ROAA at 0.99% and ROAE at 6.89%.

• PlainsCapital Bank drove earnings with $51.2 million pre-tax income and NIM of 3.42%, while PrimeLending posted a $2 million pre-tax loss amid mortgage market headwinds.

• HilltopSecurities delivered $12.4 million pre-tax income and a 10% pre-tax margin, led by Wealth Management and Structured Finance.

• Quarterly cash dividend increased by 10% to $0.22 per share; $47 million spent on share repurchases in Q2 2026.

• Board authorized an increase in the stock repurchase program to $200 million, with $59 million returned to shareholders in Q2 2026.

Financial highlights

• Net interest income for Q2 2026 was $115.9 million, up 5% year-over-year; noninterest income was $200.0 million, up 4% year-over-year.

• Noninterest expenses for Q2 2026 were $266.7 million, up 2% year-over-year; efficiency ratio was 84.5%.

• Net interest margin improved to 3.21% in Q2 2026, up from 3.01% in Q2 2025.

• Tangible book value per share increased to $32.36 at June 30, 2026; book value per share was $37.12.

• Allowance for credit losses as a percentage of total loans was 0.98% at June 30, 2026.

Outlook and guidance

• Full-year average loan growth guidance raised to 5%-7% for 2026, excluding mortgage warehouse and retained loans.

• Net interest income expected to remain stable; NIM may decline modestly in the second half.

• Management expects continued execution on strategic priorities amid ongoing economic uncertainty, with headwinds from elevated rates and inflation.

• Mortgage origination volume forecasted at $8.5-$9.5 billion; deposit funding costs to be influenced by competition.

• Broker-dealer fee guidance set at -3% to 1%, with constructive outlook for Public Finance, Wealth Management, and Structured Finance.