Hilltop Holdings Inc.’s HTH first-quarter 2020 earnings of 51 cents per share beat the Zacks Consensus Estimate of 35 cents. Also, the bottom line compared favorably with the prior-year quarter’s earnings of 36 cents.The results reflected an improvement in revenues and a strong balance sheet position. However, higher operating expenses and a drastic rise in credit costs were major headwinds. These were enough to hurt investor sentiments. The company’s shares declined 7.8%, after the announcement of results last week.Net income applicable to common stockholders was $49.6 million, up 28% from the prior-year quarter.Revenues Improve, Costs RiseNet revenues were $382 million, increasing 17.8% year over year.Net interest income was $110.3 million, up 1.9% from the prior-year quarter. Net interest margin (taxable equivalent basis) was 3.42%, down 28 basis points (bps) from the prior-year quarter.Non-interest income jumped 25.8% from the year-ago quarter to $271.7 million. This rise was largely driven by a rise in all fee income components, except other income.Non-interest expenses increased 1.1% from the year-ago quarter to $281.9 million. The increase was mainly due to rise in employees' compensation and benefits costs.Credit Quality WorsensProvision for loan losses was $34.5 million, up substantially from $1 million in the prior year quarter. The company built a significant reserve amid coronavirus-related economic uncertainty.Non-performing assets as a percentage of total assets were 0.66%, up 26 bps. Also, non-performing loans were $87.4 million as of Mar 31, 2020, up significantly from $30.9 million recorded in the comparable period of 2019.Strong Balance SheetAs of Mar 31, 2020, Hilltop Holdings’ cash and due from banks was $524.4 million, up 20.9% from the prior quarter. Total shareholders’ equity was $2.2 billion, up 1.6% sequentially.As of Mar 31, 2020, net loans held for investment decreased 1.1% sequentially to $7.2 billion. However, total deposits were $9.9 billion, up 10.1% from the prior quarter.Profitability Improve, Capital Ratio DeterioratesReturn on average assets at the end of the reported quarter was 1.47%, up from 1.21% in the prior-year quarter. Also, return on average equity was 9.38%, up from 8.04% in the year-earlier quarter.Common equity tier 1 capital ratio was 15.96% as of Mar 31, 2020, down from 16.75% in the corresponding period of 2019. Moreover, total capital ratio was 17.00%, reflecting a fall from 17.64% in the prior-year quarter.Share Repurchase UpdateDuring the first quarter, Hilltop Holdings repurchased 0.7 million shares at an average price of $21.32 per share.In light of the uncertain outlook for 2020 due to the coronavirus pandemic and its aim of maintaining a strong capital and liquidity position during this period, the company has suspended the share buyback plan.Our TakeHilltop Holdings’ top-line growth is expected to remain decent, driven by modest loan demand. While higher costs, low interest rates and coronavirus-related slowdown are major near-term concerns, its strong balance sheet is expected to keep supporting financials.Hilltop Holdings Inc. Price, Consensus and EPS Surprise Hilltop Holdings Inc. price-consensus-eps-surprise-chart | Hilltop Holdings Inc. QuoteHilltop Holdings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksProsperity Bancshares Inc.’s PB first-quarter 2020 earnings per share of $1.39 surpassed the Zacks Consensus Estimate of $1.20. Also, the bottom line increased 17.8% year over year.Commerce Bancshares, Inc.’s CBSH first-quarter 2020 earnings per share of 44 cents lagged the Zacks Consensus Estimate of 50 cents. Also, the bottom line represents a decline of 45.7% from the prior-year quarter.Washington Federal’s WAFD second-quarter fiscal 2020 (ended Mar 31) earnings were 49 cents per share, missing the Zacks Consensus Estimate of 55 cents. The figure also declined 22.2% year over year.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hilltop Holdings Inc. (HTH): Free Stock Analysis Report Commerce Bancshares, Inc. (CBSH): Free Stock Analysis Report Prosperity Bancshares, Inc. (PB): Free Stock Analysis Report Washington Federal, Inc. (WAFD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research