<div id="readability-page-1"><div>Hilltop Holdings Inc., a diversified financial services holding company, has released its 2025 Form 10-K report, showcasing robust financial performance, strategic initiatives, and addressing key challenges and risks. The company operates through three primary business segments: banking, broker-dealer, and mortgage origination, with a significant presence in Texas and nationwide operations. Financial Highlights <ul><li>Total Revenue: $1,281.8 million, reflecting a 5% increase from the previous year, driven by improvements in the broker-dealer and banking segments.</li><li>Net Interest Income: $440.7 million, a 5% increase from 2024, primarily due to decreased costs of deposits and redemption of certain notes payable.</li><li>Net Income: $172.0 million, a significant increase from $123.2 million in 2024, attributed to higher net interest income and noninterest income.</li><li>Income Attributable to Hilltop: $165.6 million, up from $113.2 million in 2024, reflecting strong performance across business segments.</li><li>Diluted EPS: $2.64, compared to $1.74 in 2024, indicating improved profitability and efficient cost management.</li><li>Noninterest Income: $841.1 million, a 9% increase from 2024, driven by gains in investment banking and advisory fees.</li><li>Noninterest Expense: $1,053.5 million, a 2% increase from 2024, primarily due to higher compensation costs in the broker-dealer segment.</li><li>Income Before Income Taxes: $221.1 million, a 43% increase from 2024, reflecting strong revenue growth and cost management.</li></ul> Business Highlights <ul><li>Business Segments: Hilltop Holdings Inc. operates through three primary business segments: banking, broker-dealer, and mortgage origination. Each segment is organized by the core products offered to their respective customers.</li><li>Banking Segment: Operated through PlainsCapital Bank, focuses on providing business and consumer banking services primarily in Texas. It includes commercial real estate, commercial and industrial loans, and mortgage warehouse lending.</li><li>Broker-Dealer Segment: Hilltop Broker-Dealers, including Hilltop Securities and Momentum Independent Network, provide investment banking and related financial services across the United States. Their operations include public finance services, structured finance, fixed income services, and wealth management.</li><li>Mortgage Origination Segment: PrimeLending, a subsidiary of PlainsCapital Bank, operates the mortgage origination segment. It is licensed to originate and close loans in all 50 states and the District of Columbia, with a significant portion of its operations concentrated in Texas, California, and South Carolina.</li><li>Geographical Performance: The banking operations are concentrated in Texas, while the broker-dealer services are provided nationwide, with significant revenue generated from Texas, New York, and California. PrimeLending's mortgage origination is also widespread, with 67% of its volume concentrated in ten states.</li><li>Sales Units: PrimeLending closed $8.9 billion in mortgage loan volume during 2025, with 85.9% related to home purchases.</li><li>Employee and Human Capital Resources: As of December 31, 2025, Hilltop employed approximately 3,500 full-time employees. The company emphasizes employee development and retention, with 39% of staff having tenure of ten years or more.</li><li>Competition: Hilltop faces significant competition across its business segments from national, regional, and community banks, as well as non-bank financial institutions and fintech companies.</li><li>Future Outlook: The company anticipates continued focus on organic growth and potential acquisitions to strengthen its financial services offerings. The mortgage origination segment expects loan volumes to be influenced by prevailing mortgage rates and commercial loan growth outlook.</li></ul> Strategic Initiatives <ul><li>Debt Management: Hilltop Holdings Inc. focused on strategic initiatives including the redemption of all outstanding 5% senior notes due 2025 and 5.75% Fixed-to-Floating Subordinated Notes due 2030, using cash on hand to satisfy these obligations.</li><li>Divestitures: The company entered into a definitive agreement to sell its interest in Moser Holdings, LLC, resulting in a significant pre-tax gain.</li><li>Stock Repurchase: The company increased its stock repurchase authorization to $185 million in 2025, reflecting a commitment to returning value to shareholders. In 2025, Hilltop Holdings repurchased $184 million worth of its common stock, totaling 5,705,205 shares at an average price of $32.26 per share.</li><li>Dividends: The company declared and paid total common dividends of $45.4 million, with a quarterly cash dividend of $0.20 per common share declared in January 2026, marking an 11% increase from the prior quarter.</li><li>Capital Position: The company maintained a strong capital position with a common equity Tier 1 risk-based capital ratio of 19.70% at the end of 2025.</li><li>Future Outlook: Hilltop Holdings plans to continue its strategic focus on capital management by maintaining a strong liquidity position and exploring opportunities for further stock repurchases under the new $125 million authorization for 2026. The company anticipates ongoing challenges due to economic uncertainties and interest rate fluctuations, which may impact its operating results and capital strategies in 2026. The company remains committed to managing its capital efficiently to support growth and shareholder returns.</li></ul> Challenges and Risks <ul><li>Credit Risk: The company is exposed to credit risk as a lender, with potential losses if borrowers fail to repay loans. The adequacy of allowances for credit losses is critical, and any misjudgment could lead to financial losses.</li><li>Cybersecurity Risks: Increasingly sophisticated cyber threats pose a risk to the company's operational systems and networks. A recent incident involving a third-party vendor highlighted vulnerabilities, with potential exposure to litigation and regulatory scrutiny.</li><li>Regulatory Risks: The company is subject to extensive regulation, and changes in laws, such as data privacy regulations, could increase operational costs and compliance risks.</li><li>Interest Rate Risks: Fluctuations in interest rates can significantly impact the company's net interest income and the valuation of its assets and liabilities. The company is particularly exposed due to a high percentage of variable-rate loans.</li><li>Geographic Concentration: The company's operations are heavily concentrated in Texas, making it vulnerable to regional economic downturns and natural disasters.</li><li>Market Risks: The company is exposed to market risks, including fluctuations in the securities markets, which could impact its broker-dealer segment.</li><li>Operational Risks: The company relies heavily on technology, and any failure to implement new technological solutions effectively could adversely affect business operations.</li><li>Environmental Risks: Climate change and related regulations could impact the company's operations and those of its customers, particularly in energy-dependent regions like Texas.</li><li>Management Strategies: Management acknowledges the challenges posed by the current economic environment, including inflationary pressures and interest rate fluctuations. Strategies to address these challenges include enhancing risk management practices and investing in technology to improve operational efficiency.</li><li>Market Risk Management: The company is actively monitoring interest rate risks and has implemented hedging strategies to mitigate exposure. However, these strategies may not fully protect against all risks, and the company remains vigilant in adjusting its risk management approaches as needed.</li></ul>SEC Filing: Hilltop Holdings Inc. [ HTH ] - 10-K - Feb. 13, 2026</div></div>

Hilltop Holdings Inc. has released its 2025 Form 10-K report, highlighting a total revenue of $1,281.8 million, a 5% increase from the previous year. Net income rose to $172.0 million, up from $123.2 million in 2024. The company operates in banking, broker-dealer, and mortgage origination segments, with a strong presence in Texas. Strategic initiatives include debt management, stock repurchase, and a focus on organic growth. Challenges include credit risk and cybersecurity threats. The company maintains a strong capital position with a Tier 1 capital ratio of 19.70%.

Hilltop Holdings Inc. SEC 10-K Report