Net income rose on stronger banking and broker-dealer results despite mortgage losses, with net interest margin up 8 basis points sequentially.
Hilltop (NYSE:HTH) reported second-quarter net income of $36.5 million, or $0.63 per diluted share, driven by growth in its banking and broker-dealer segments. The company’s net interest margin expanded 8 basis points to 3.21% from the prior quarter, supported by lower deposit costs and loan growth.
PlainsCapital Bank generated $51 million in pretax income, while HilltopSecurities contributed $12 million. PrimeLending posted a $2 million pretax loss amid a challenging mortgage market. Consolidated net interest income rose 5% year-over-year to $116 million, including $800,000 from purchase accounting accretion.
Management expects net interest margin to remain near current levels but could see modest declines in the second half of 2026 if the Fed raises rates in December as projected.