Hilltop (HTH) Financials

Hilltop Holdings (NYSE: HTH) showed a mixed but generally stable operating picture in Q1 2026, with solid profitability, but weaker cash generation and a notable increase in funding and leverage needs.

For the quarter ended March 31, 2026, Hilltop produced net income attributable to common shareholders of $37.8 million, or $0.64 per share, down slightly from $41.6 million and $0.68 per share in Q4 2025. Revenue also eased sequentially to $300.5 million from $329.9 million, as lower non-interest income and higher operating costs outweighed relatively steady net interest income.

Over the last several quarters, the company’s earnings have been fairly resilient, but the trend in cash flow is more uneven. Q1 2026 operating cash flow was negative $127.3 million, a sharp reversal from positive $272.95 million in Q3 2025 and negative $82.9 million in Q4 2025. That kind of volatility is common in banking, but it does suggest deposit and balance sheet movements are having a big impact on cash results.

The balance sheet remains sizable and asset-rich, with $15.7 billion in total assets and $2.17 billion in total equity and noncontrolling interests at the end of Q1 2026. However, debt and deposit composition continue to matter: total liabilities were $13.5 billion, including $2.47 billion of short-term debt and $7.7 billion of interest-bearing deposits. Cash on hand declined materially versus prior periods, ending Q1 2026 at $874 million compared with $1.28 billion in Q3 2025 and $1.70 billion in Q1 2025.

• Profitability remained solid: Q1 2026 net income attributable to common shareholders was $37.8 million, or $0.64 per share.
• Net interest income stayed steady: NII was $112.1 million, roughly in line with recent quarters and showing the core banking spread business is still generating income.
• Non-interest income remained meaningful: Q1 2026 non-interest income was $188.4 million, supporting total revenue even as some lines softened.
• Credit costs stayed low: Provision for credit losses was just $1.8 million in Q1 2026, well below many earlier quarters.
• Equity base remains substantial: Total common equity of $2.14 billion provides a meaningful buffer.
• Revenue dipped sequentially: Total revenue fell to $300.5 million from $329.9 million in Q4 2025, though it remained within a fairly consistent range.
• Fee income is still a major contributor: Other service charges and investment-related income remain important drivers of earnings, making results partly dependent on capital markets and client activity.
• Book value trends were fairly stable: Common equity moved modestly quarter to quarter, indicating no major balance sheet disruption.
• Operating cash flow was negative: Q1 2026 operating cash flow came in at -$127.3 million, which is a concern if the pattern persists.
• Balance sheet leverage remains significant: Short-term debt of $2.47 billion is large relative to cash and common equity.
• Cash declined sharply from a year ago: Cash and due from banks fell from $1.70 billion in Q1 2025 to $874 million in Q1 2026.
• Expense pressure remains visible: Salaries and employee benefits were $169.0 million in Q1 2026, keeping non-interest expense elevated at $248.3 million.

Bottom line: Hilltop looks like a bank that is still generating acceptable earnings, but the quality of near-term cash flow was weaker in Q1 2026. For investors, the key questions are whether deposit flows stabilize, whether operating cash generation improves, and whether the company can keep earnings steady without leaning too heavily on balance sheet funding.