Hilltop Holdings Inc. (HTH): Business Model Canvas [Dec-2025 Updated]

You're looking at this diversified financial player, Hilltop Holdings Inc., and wondering how its three main engines-Texas banking, national mortgage lending, and investment banking-actually fit together to generate returns. Honestly, it's a model built on balancing the steady interest income from PlainsCapital Bank's deposit base against the fee-heavy, national scale of PrimeLending's mortgage operations. With total assets hitting about $15.6 billion as of late Q3 2025, the real story isn't just the size; it's the disciplined capital deployment, like the $55.1 million they put back into share repurchases that quarter, which signals management's view on valuation. Below, we break down the nine essential blocks of this model, showing exactly where the value is created and what risks are baked into their structure.

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Key Partnerships

You're looking at how Hilltop Holdings Inc. (HTH) structures its external relationships to drive business across its segments. These partnerships are critical because they allow HTH to deploy capital flexibly and reach markets where it doesn't have a direct retail footprint, like the lower middle-market or national mortgage distribution.

Non-control investments via Hilltop Opportunity Partners (HOP) in lower middle-market companies.

Hilltop Opportunity Partners (HOP) focuses on non-control investments, using Hilltop Holdings' excess capital. Target investments are structured for lower middle-market companies with capital needs generally between $5 million and $25 million. A concrete example of value creation from this partnership model was the sale of its interest in Moser Holdings, LLC, which closed in the first quarter of 2025. Hilltop Opportunity Partners held an approximate 30% aggregate interest in that entity, which was sold for an aggregate transaction value of approximately $220 million, including $180 million in cash. This activity contributed to a preliminary after-tax gain of $23.6 million recognized in the first quarter of 2025. At December 31, 2024, the aggregate carrying value of HOP's merchant banking investments across various industries was approximately $74 million.

Correspondent lenders and wholesale partners for PrimeLending's national mortgage network.

PrimeLending relies on third-party channels to extend its national reach. While specific 2025 partner counts for Hilltop Holdings Inc. aren't public, industry context shows the importance of these channels. For instance, in 2024, correspondent lending accounted for 29.9% of total first-lien origination volume across the industry. PrimeLending itself focuses on delivering unmatched mortgage service through its national team of loan officers, while also managing joint venture initiatives with homebuilders.

Strategic alliances with technology and financial service vendors for operational support.

Operational efficiency is supported through external technology and service providers. PrimeLending, for example, announced a partnership with Blue Sage in late 2025, which is noted for delivering faster closings and productivity gains. These vendor relationships help maintain competitive positioning, especially as the company manages total assets of $15.8 billion as of March 31, 2025.

Co-underwriting and distribution partners for HilltopSecurities' municipal bond offerings.

HilltopSecurities actively partners to distribute municipal bond offerings, acting as both senior and co-managing underwriter. The firm leverages its network of over 2,000 separate institutional accounts for distribution to potential investors, which include Tier I, II, and III institutional investors, plus high net worth individuals. The team supporting an issue includes over 30 financial professionals. In the first quarter of 2025, Public Finance net revenues rose 34% year-over-year, driven by 11% more offerings. The firm forecasted a significant market size for 2025, predicting $745 billion in municipal bond issuance, which represents about a 50% increase from 2024 levels.

Partnership Element	Metric/Value	Date/Context
HOP Target Investment Size	$5 million to $25 million	Investment Criteria
HOP Investment Exit Value (Moser)	Approximately $220 million	Q1 2025 Transaction
HOP Merchant Banking Carrying Value	Approximately $74 million	December 31, 2024
HilltopSecurities Investor Portfolio Size	Over 2,000 separate institutional accounts	Distribution Network
HilltopSecurities Professionals Supporting an Issue	Over 30	Underwriting Support
2025 Forecasted Municipal Issuance	$745 billion	HilltopSecurities Forecast
HilltopSecurities Q1 2025 Public Finance Revenue Growth	34% Year-over-Year	Q1 2025 Results
HilltopSecurities Q1 2025 Offerings Increase	11% more offerings	Q1 2025 Results

The reliance on these external relationships is clear across the merchant bank and broker-dealer segments. For instance, the mortgage origination segment, PrimeLending, operates within a broader industry where correspondent lending made up 29.9% of volume in 2024. Hilltop Holdings Inc. reported total assets of $15.8 billion at March 31, 2025, underscoring the scale these partnerships help manage.

• HOP targets non-control investments in the lower middle-market.
• HilltopSecurities utilizes a distribution network of over 2,000 institutional accounts.
• PrimeLending's national network depends on external correspondent relationships.
• The Moser Energy Systems sale generated an approximate $220 million transaction value.
• HilltopSecurities professionals supporting an issue number over 30.

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Key Activities

You're looking at the core engine room of Hilltop Holdings Inc. as of late 2025. The Key Activities are where the rubber meets the road, translating strategy into hard numbers across its three main businesses.

Core commercial and consumer banking operations through PlainsCapital Bank remain a primary driver of profitability. For the third quarter of 2025, PlainsCapital Bank generated $55 million in pre-tax income, supported by strong core loan and deposit growth on a linked-quarter basis, plus healthy net interest margin expansion. The bank's total assets stood at $15.6 billion at September 30, 2025, with total deposits reaching $10.747 billion. Net Income year-to-date for PlainsCapital Bank was $104.494 million.

The mortgage origination, processing, and servicing arm, PrimeLending, faced headwinds in the third quarter of 2025 due to a dampened summer home-buying market. This resulted in a pre-tax loss of $7 million for the segment. Still, the activity level was significant, with mortgage loan origination production volume holding steady year-over-year at $2.3 billion for the quarter. Net gains from sale of loans and other mortgage production income and origination fees were $76.6 million in Q3 2025, marking a 4.2% decrease from the prior year's third quarter. They are defintely working hard to manage down fixed expenses there.

Investment banking and broker-dealer services, especially public finance advisory, through HilltopSecurities, provided robust support. This segment posted net revenues of $144 million, achieving a strong 18% pre-tax margin. Public Finance Services specifically showed strong growth, reporting a 28% revenue increase.

Disciplined capital management is a visible activity, directly impacting shareholder returns. During the third quarter of 2025, Hilltop Holdings Inc. paid $55.1 million to repurchase an aggregate of 1,701,274 shares of its common stock at an average price of $32.36 per share. Following an October authorization increase, the company has approximately $62 million of available share repurchase capacity through the expiration of the 2025 stock repurchase program in January 2026.

Finally, maintaining regulatory compliance across three distinct financial segments requires constant operational focus. As of September 30, 2025, Hilltop Holdings' Common Equity Tier 1 Capital Ratio stood at 20.33%, showing a solid capital base relative to regulatory requirements.

Here's a quick look at the segment performance metrics for Q3 2025:

Segment Activity Metric	PlainsCapital Bank (Banking)	PrimeLending (Mortgage)	HilltopSecurities (Broker-Dealer)
Pre-Tax Income/(Loss)	$55 million	($7 million)	Data not directly comparable to pre-tax income
Key Revenue/Income Figure	Net Interest Income: $112.4 million	Net Gains/Fees: $76.6 million	Net Revenues: $144 million
Key Volume/Ratio	Total Assets: $15.6 billion	Origination Volume: $2.3 billion	Pre-Tax Margin: 18%

The operational focus areas for Hilltop Holdings Inc. involve:

• Driving continued loan and deposit growth within PlainsCapital Bank.
• Aggressively managing fixed expenses in the mortgage origination business.
• Capitalizing on growth opportunities in Public Finance Services.
• Executing the authorized stock repurchase program through January 2026.
• Sustaining strong capital ratios, like the 20.33% CET1 ratio.

Finance: draft 13-week cash view by Friday.

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Key Resources

You're looking at the core assets Hilltop Holdings Inc. (HTH) relies on to execute its diversified financial strategy as of late 2025. These aren't just line items; they are the engines of the business.

PlainsCapital Bank's strong Texas-based deposit base and lending capacity is foundational. This Texas-focused bank is the financial cornerstone, boasting total deposits of $10.75 billion in its latest filing. Its lending capacity is evidenced by total loans and leases reaching $8.66 billion. The bank operates 58 domestic offices, maintaining a strong Texas footprint and achieving a Net Interest Margin (NIM) of 3.22% in its latest report, showing effective management of its funding costs. That NIM figure rose to 3.23% specifically for the third quarter of 2025.

The consolidated financial scale of Hilltop Holdings Inc. itself provides significant resource depth. As reported for the third quarter of 2025, the company's consolidated total assets stood at approximately $15.6 billion. This scale supports the operations across all subsidiaries.

The national reach of the mortgage arm, PrimeLending, is a key resource. The national brand and retail network of PrimeLending extends its capability, with operations spanning 48 U.S. states as of the end of 2024, providing a broad platform for mortgage origination volume, which was $2.3 billion in the third quarter of 2025.

For HilltopSecurities, the resource is the specialized expertise driving high-margin business lines. This is where you see the value of deep domain knowledge in investment banking and wealth management. The broker-dealer segment delivered a robust pre-tax margin of 18.3% on net revenues of $144.5 million in the third quarter of 2025. Specifically, the Wealth Management division generated net revenues of $50 million in that same quarter, reflecting strong fee-based capital.

You can see a snapshot of the financial scale supporting these operations:

Metric	Value as of September 30, 2025	Source Context
Consolidated Total Assets	$15.6 billion	Hilltop Holdings Inc. Q3 2025
Total Deposits (Consolidated)	$10.7 billion	Hilltop Holdings Inc. Q3 2025
PlainsCapital Bank Total Deposits	$10.75 billion	PlainsCapital Bank Latest Filing
PlainsCapital Bank Loans & Leases	$8.66 billion	PlainsCapital Bank Latest Filing
HilltopSecurities Net Revenues (Q3 2025)	$144.5 million	HilltopSecurities Q3 2025 Performance
HilltopSecurities Wealth Management Net Revenues (Q3 2025)	$50 million	HilltopSecurities Q3 2025 Performance
Common Equity Tier 1 Capital Ratio	20%	Hilltop Holdings Q3 2025 Capital Levels

The final critical resource is technology, which underpins efficiency across the enterprise. This isn't just about having systems; it's about systems that deliver measurable speed and scale. PrimeLending's use of the Blue Sage Digital Lending Platform is a concrete example of this, leading to a 27 percent faster closing timeline for loans. Furthermore, PlainsCapital Bank supports its relationship model with access to digital tools, including online banking and mobile banking capabilities for account management.

Here's what those technology-driven efficiencies look like:

• PrimeLending: 58 percent faster submission-to-underwriting time.
• PrimeLending: Originated over 250,000 loans since going live on the Blue Sage platform.
• PlainsCapital Bank: Offers digital check deposit and bill payment services.
• HilltopSecurities: Supports national trading and advisory services via its platforms.

Finance: draft 13-week cash view by Friday.

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Value Propositions

You're looking at the core value Hilltop Holdings Inc. (HTH) delivers across its diversified financial services platform as of late 2025. It's about balancing steady banking income with higher-margin fee-based services, which is key to its holding company structure.

Diversified financial services model that balances interest income with fee income.

The model shows a clear reliance on non-interest income, which outpaced net interest income in the third quarter of 2025. This diversification helps smooth out earnings when interest rate cycles shift. For the third quarter of 2025, Hilltop Holdings posted total revenues of $330.2 million, marking a 7.5% year-on-year increase.

Here's the quick math on the income mix for Q3 2025:

Income Component	Q3 2025 Amount	Year-over-Year Change
Net Interest Income (NII)	$112.4 million	7% growth
Total Noninterest Income	$217.8 million	8.7% increase

The broker-dealer segment, HilltopSecurities, was a strong fee earner, generating net revenues of $144.5 million in Q3 2025.

Full-service commercial banking and treasury management for Texas businesses.

PlainsCapital Bank serves as the financial cornerstone, driving core banking performance. In the third quarter of 2025, this segment generated $55 million in pre-tax income. The bank is actively growing its balance sheet, with net loans held for investment, net of allowance for credit losses, at $7.8 billion as of September 30, 2025. Total deposits stood at $10.7 billion at that date, reflecting a 2.7% sequential increase. The Net Interest Margin (NIM) for the quarter was 3.1%. Management projected full-year average bank loan growth for 2025 to be between 2% and 5%.

National residential mortgage origination with a reported customer satisfaction rating.

The mortgage origination business, primarily through PrimeLending, provides national reach but faced near-term headwinds. Origination production volume for Q3 2025 was $2.3 billion, flat compared to Q3 2024. Operationally, the segment posted a pre-tax loss of $7 million in Q3 2025. However, the value proposition around execution is evident in the margins on sold loans; net gains from mortgage loans sold to third parties, including broker fee income, improved to 239 basis points in Q3 2025. While the requested 96% customer satisfaction figure wasn't found, the broader J.D. Power 2025 U.S. Mortgage Origination Satisfaction Study noted that overall customer satisfaction with mortgage lenders was 760 on a 1,000-point scale.

Key mortgage segment metrics for Q3 2025:

• Mortgage loan origination volume: $2.3 billion.
• PrimeLending pre-tax result: $7 million loss.
• Net gains on sale margin: 239 basis points.

Leading municipal investment banking and public finance expertise.

HilltopSecurities' Public Finance division is a recognized leader, consistently ranking high for its advisory role. For the past year ending December 31, 2023, the division was ranked as the No. 2 municipal advisory firm nationwide based on the number of issues. This expertise translated to strong recent financial performance, with Public Finance Services achieving a 28% year-over-year increase in net revenues in Q3 2025. This follows a 34% YoY rise in net revenues on 11% more offerings in Q1 2025.

Financial stability and strong capital position as a holding company.

HTH maintains a strong capital structure that supports its operations and shareholder returns. As of September 30, 2025, total assets were $15.6 billion. The holding company demonstrated solid profitability ratios for Q3 2025, with a return on average assets of 1.20% and a return on average stockholders' equity of 8.35%. Efficiency is also a focus, with the reported efficiency ratio at 51.7%, significantly better than analyst forecasts of 84.1% for the quarter. Capital strength is underscored by the following ratios as of September 30, 2025:

• Tangible Book Value per Common Share: $35.69 (a 21.9% YoY increase).
• Common Equity Tier 1 (CET1) Capital Ratio: 20.33%.
• Total Capital Ratio: 22.90%.

The company returned $66 million to stockholders in Q3 2025 via $11 million in dividends and $55 million in share repurchases.

Finance: draft 13-week cash view by Friday.

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Customer Relationships

You're looking at how Hilltop Holdings Inc. structures its interactions with its diverse client base across banking, securities, and mortgage services as of late 2025. The approach is clearly segmented, moving from highly personal service for high-value clients to efficient digital channels for transactional needs.

Dedicated relationship managers for commercial and private banking clients.

For commercial and private banking clients through PlainsCapital Bank, the model emphasizes a high-touch, single point of contact approach, consistent with its identity as a relationship-driven banking leader in Texas. While the exact count of dedicated relationship managers isn't public, the overall human capital supporting the client base is substantial. At March 31, 2025, Hilltop Holdings employed approximately 3,640 people across its operations. PlainsCapital Bank itself operates with a statewide presence, having approximately 55 locations as of 2025, which serve as hubs for these personalized banking relationships.

The banking segment's focus on this relationship model supports its balance sheet, which held total deposits of $11.3 billion as of December 31, 2024.

High-touch, consultative advisory services for HilltopSecurities' institutional and wealth clients.

HilltopSecurities Inc. provides its institutional and wealth clients with advisory services, which is reflected in the segment's financial scale. As of December 31, 2024, the broker-dealer segment had total assets of $2.8 billion and reported net capital of $264.2 million. The firm's leadership brings decades of experience to offer guidance based on a holistic view of the financial landscapes.

The firm's structure supports specialized client service through various groups, including:

• Wealth Management
• Capital Markets
• Structured Finance
• Public Finance

Standardized, yet personalized, service for high-volume mortgage origination customers.

PrimeLending manages high-volume mortgage origination with a focus on efficiency, which is evident in its operational metrics. For the first quarter of 2025, mortgage loan origination production volume was $1.7 billion. The use of digital platforms is key to standardizing the process while maintaining speed for the customer.

Key performance indicators related to digital efficiency for PrimeLending include:

Metric	Value (Q1 2025 or latest available)
Loans Closed on Blue Sage Platform (Cumulative)	Over 250,000
Faster Closing Timeline Improvement	27 percent
Faster Submission-to-Underwriting Improvement	58 percent

Digital self-service options for routine banking transactions.

The broader trend in lending, which Hilltop Holdings' PrimeLending participates in, shows a strong shift to digital channels. This indicates that for routine transactions, self-service is a primary customer preference. In the digital lending space generally for 2025, mobile apps account for 78% of transactions, emphasizing the need for mobile-first design.

The company's overall commitment to its community, which underpins trust in its digital offerings, included a contribution of $3.9 million in donations in 2024.

The overall financial strength supporting these relationship models is shown by the company's tangible book value per share reaching $30.02 as of March 31, 2025.

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Channels

You're mapping out the distribution strategy for Hilltop Holdings Inc., which relies on a multi-faceted approach across its three main subsidiaries. The channels are a mix of traditional physical presence and modern digital reach.

PlainsCapital Bank's physical branch network serves as the core for its Texas-centric commercial and consumer banking. This channel is deeply rooted in local markets across the Lone Star State.

PrimeLending utilizes a broad national structure to reach mortgage customers. This includes direct interaction through retail offices, partnerships via wholesale channels, and correspondent banking relationships.

HilltopSecurities distributes its institutional sales and wealth management services through a national network of offices and desks, serving institutional investors and individuals across the country.

Digital channels are integrated across the group. PrimeLending, for instance, has seen significant results from its technology partnerships.

Here's a quick look at the scale of these distribution points as of late 2025 data available:

Channel Component	Subsidiary	Metric	Value (as of late 2025/closest date)
Physical Branch Network	PlainsCapital Bank	Texas Branch Locations	55 locations as of 2025
National Footprint (Consolidated)	Hilltop Holdings Inc.	Total Locations (June 30, 2025)	309 locations in 47 states
National Footprint (Consolidated)	Hilltop Holdings Inc.	Total Locations (March 31, 2025)	316 locations in 47 states
Institutional/Wealth Offices	HilltopSecurities	Approximate Offices (December 2024)	Approximately 40 offices in the United States
Loan Officer Scale	PrimeLending	Number of Loan Officers	Approximately 1,250 loan officers
Digital Channel Performance	PrimeLending	Loans Closed on Blue Sage Platform	Over 250,000 loans

The physical presence for PlainsCapital Bank is concentrated, focusing on relationship banking within Texas markets such as:

• Austin
• The Coastal Bend
• Dallas
• Fort Worth
• Houston
• Lubbock
• The Rio Grande Valley
• San Antonio

PrimeLending's national reach is supported by its personnel structure, which includes:

• Retail origination channel
• Wholesale origination channel
• Correspondent origination channel

HilltopSecurities' distribution for institutional sales desks and wealth management covers services including:

• Capital markets
• Public finance
• Retail brokerage
• Structured finance
• Securities clearing services

Digital adoption is evident in PrimeLending's use of technology to streamline processes. The partnership on the Blue Sage Digital Lending Platform resulted in specific efficiency gains:

• 27 percent faster closing timeline
• 58 percent faster submission-to-underwriting

For consumer and business clients of PlainsCapital Bank, digital access is a supporting channel, though the primary banking channel remains physical. The overall company footprint as of mid-2025 spanned operations in 47 states.

Finance: review Q3 2025 digital adoption metrics for PlainsCapital Bank by end of Q4.

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Customer Segments

You're looking at the client base for Hilltop Holdings Inc. as of late 2025. Here are the hard numbers tied to the distinct groups they serve across their banking, mortgage, and broker-dealer subsidiaries.

Small-to-mid-sized businesses (SMBs) and commercial real estate investors in Texas

This group is the core of the PlainsCapital Bank segment. The loan portfolio is described as primarily Texas-concentrated. For the third quarter of 2025, the Banking segment generated income before taxes of $54.7 million. At September 30, 2025, Hilltop Holdings' total assets stood at $15.61 billion. Loans held for investment, net of allowance for credit losses, were $8.13 billion at that same date.

Here is a snapshot of the scale of the banking operation:

Metric (As of September 30, 2025)	Amount
Total Assets	$15.61 billion
Loans Held for Investment (Net)	$8.13 billion
Total Deposits	$10.68 billion
PlainsCapital Bank Pre-Tax Income (Q3 2025)	$54.7 million

High-net-worth individuals and families seeking wealth management and private banking

These clients are served through the Wealth Management area within HilltopSecurities. In the first quarter of 2025, the Public Finance/Wealth group outperformed at HilltopSecurities. The firm's overall employee count was approximately 3,640 people across 316 locations in 47 states as of March 31, 2025.

Homebuyers and homeowners across the U.S. seeking purchase or refinance mortgages

PrimeLending handles residential mortgage lending throughout the United States. Mortgage loan origination production volume for the third quarter of 2025 was $2.3 billion. For the first quarter of 2025, the origination volume was $1.7 billion. In the third quarter of 2025, home purchase volume accounted for 88% of the total origination volume.

The mortgage segment's production volume figures:

• Origination Volume (Q3 2025): $2.3 billion
• Origination Volume (Q1 2025): $1.7 billion
• Home Purchase Share (Q3 2025): 88% of volume

U.S. municipalities, public entities, and institutional investors (HilltopSecurities)

HilltopSecurities is a full-service municipal investment bank serving these groups. Public Finance net revenues saw a 34% year-over-year increase in the first quarter of 2025. For the nine months year-to-date ending September 30, 2025, Public Finance net revenues were up 28% to $93.7 million. The broker-dealer segment generated income before taxes of $26.5 million in Q3 2025.

Key financial metrics for the broker-dealer segment in Q3 2025:

• Broker-Dealer Income Before Taxes: $26.5 million
• Public Finance Net Revenues YTD (2025): $93.7 million
• Public Finance Net Revenue Growth (Q1 2025 YoY): 34%

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Cost Structure

You're looking at the expense side of Hilltop Holdings Inc. (HTH), which is heavily influenced by its core banking and mortgage operations. For a financial holding company like Hilltop, the cost structure is dominated by personnel, the cost of funding its balance sheet, and the operational overhead to run its diverse subsidiaries.

Personnel costs are significant. As of the third quarter of 2025, Hilltop Holdings had approximately 3,646 total employees. This workforce supports PlainsCapital Bank, PrimeLending, and HilltopSecurities. You see the impact of this compensation in the tax line, as the effective tax rate for Q3 2025 was higher than the statutory rate primarily due to the impact of nondeductible compensation expense.

Interest expense on deposits and borrowed funds is a major cost driver, especially in the banking segment. While the specific interest expense isn't broken out, we know that Net Interest Income (NII) for Q3 2025 was $112.4 million, an increase of 7% year over year. Management noted ongoing work to optimize the cost of deposits, which is key since the Federal Reserve continued lowering short-term interest rates during the quarter.

Noninterest expenses aggregate the operational costs across the enterprise. For the third quarter of 2025, total non-interest expenses rose 2.9% from the prior-year quarter to $271.9 million. This total masks segment differences: the banking segment actually saw a decrease in noninterest expense, whereas the broker-dealer segment experienced an increase in noninterest expenses. These costs cover everything from the physical footprint of PlainsCapital Bank's 55 branch locations in Texas to the technology infrastructure supporting national mortgage origination through PrimeLending.

Credit quality costs, or the provision for credit losses, were favorable in the third quarter of 2025. Hilltop Holdings recorded a net reversal of credit losses of $2.5 million for the quarter. This reversal compares favorably to the $1.3 million reversal recorded in the third quarter of 2024. This positive movement was primarily driven by an improvement in asset quality across the portfolio.

Here's a quick look at some of those key cost-related metrics from the Q3 2025 results:

Cost Component Category	Q3 2025 Amount/Metric	Comparison/Context
Total Non-Interest Expenses	$271.9 million	Rose 2.9% from prior-year quarter
Net Interest Income (NII)	$112.4 million	Increased 7% year over year
Provision for Credit Losses (Net)	$2.5 million reversal	Compared to $1.3 million reversal in Q3 2024
Total Employees (as of 9/30/2025)	3,646	Supports compensation and benefits costs

The cost structure is clearly sensitive to interest rate environments, given the reliance on deposits for funding, and to the health of the loan book, as seen by the credit loss reversal. You've got a large fixed cost base in personnel, which is why management is prioritizing expense cuts at PrimeLending where mortgage origination volumes were weak.

• Compensation expense is a major component, evidenced by the impact of nondeductible compensation expense on the effective tax rate.
• The cost of funding is managed through optimizing deposit costs, even as NII grew to $112.4 million in Q3 2025.
• Non-interest expenses totaled $271.9 million in Q3 2025, with the banking segment seeing a decrease but the broker-dealer segment seeing an increase.
• Credit costs provided a benefit, with a $2.5 million net reversal of provision for credit losses.

Finance: draft the Q4 2025 expense projection by end of next week, focusing on the expected impact of PrimeLending expense cuts.

Hilltop Holdings Inc. (HTH) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for Hilltop Holdings Inc. (HTH) revenue streams as of late 2025, based on the latest reported figures.

The overall top-line performance shows momentum; Total revenue for the trailing twelve months ending Q3 2025 was approximately $1.26 billion. This TTM figure reflects growth of 7.66% year-over-year.

Revenue generation is clearly segmented across the core businesses:

• Net interest income (NII) from PlainsCapital Bank's loan and investment portfolios is a primary driver.
• Net gains from the sale of mortgage loans and origination fees come from PrimeLending.
• Fee income is generated by HilltopSecurities through investment banking, underwriting, and advisory services.
• Wealth management advisory and brokerage commissions contribute to the fee income base.

Here's a breakdown of the key components contributing to the Q3 2025 results, which inform the current revenue profile:

Revenue Source / Segment	Q3 2025 Financial Metric	Amount / Value
PlainsCapital Bank (Pre-Tax Income)	Pre-tax income generated	$55 million
PlainsCapital Bank (NII)	Net interest income	$112.4 million
PrimeLending	Net gains from sale of loans and origination fees	$76.6 million
PrimeLending	Pre-tax operating result	$7 million loss
HilltopSecurities	Net revenues	$144 million
HilltopSecurities	Pre-tax margin	18%

The banking segment, PlainsCapital Bank, showed strength with NII increasing 7% year-over-year in Q3 2025. The net interest margin (NIM) for the quarter was reported at 3.1%.

For the mortgage origination business, PrimeLending, net gains from the sale of loans and other mortgage production income and mortgage loan origination fees for the third quarter of 2025 were $76.6 million, a 4.2% decrease from Q3 2024. Despite this, mortgage loan origination production volume was flat year-over-year at $2.3 billion for Q3 2025. The segment posted a pre-tax loss of $7 million for the quarter.

The broker-dealer segment, HilltopSecurities, delivered robust results, achieving net revenues of $144 million with a pre-tax margin of 18% in the third quarter of 2025. This strength across all business lines, including wealth management, drove broad-based fee growth.

For Q3 2025 specifically, Hilltop Holdings reported total net revenue of approximately $332.7 million. Non-interest income for the quarter was $217.8 million, up 8.7% year-over-year.

Finance: draft 13-week cash view by Friday.