Primelending profits, but outlook still dim

Primelending returned to the black in the second quarter, but ongoing housing market challenges look set to apply further downward pressure to the mortgage business’ bottom line, leaders of its parent company warned. 

Mortgage originations brought in $3.21 million of pre-tax income for Hilltop Holdings, parent company of Plainscapital Bank and Primelending, during the second quarter. The number improved from a $8.28 million loss three months earlier, which Hilltop attributed in part to seasonal home buying patterns. The latest pre-tax profit represented an increase of 138% year over year. 

A nonrecurring legal settlement of $9.5 million also factored into second-quarter 2025 results.

Despite signs of improving profitability, leaders struck a cautious tone for the near-term outlook in…