Segment and Related Information

9 Months Ended

Sep. 30, 2013

Segment and Related Information

Segment and Related Information

20. Segment and Related Information

The Company has four reportable segments that are organized primarily by the core products offered to the segments’ respective customers. The banking segment includes the operations of the Bank. The operations of PrimeLending comprise the mortgage origination segment. The insurance segment is composed of NLC. The financial advisory segment is composed of First Southwest.

Balance sheet amounts for Hilltop and its remaining subsidiaries not discussed in the previous paragraph are included in “All Other and Eliminations.”

As discussed in Note 2 to the consolidated financial statements, the Company acquired PlainsCapital and its subsidiaries on November 30, 2012. Prior to this acquisition, the Company operated as a single segment through its insurance subsidiary, NLC, given the integrated monitoring, control and management of its fire and homeowners insurance business lines.

The following presents certain information about reportable segment revenues, operating results, goodwill and assets (in thousands).

			Mortgage					Financial			All Other and			Hilltop
	Banking		Origination			Insurance		Advisory			Eliminations			Consolidated
Three Months Ended September 30, 2013
Net interest income (expense)	$	70,230	$	(8,907	)	$	902	$	2,682		$	6,545		$	71,452
Provision for loan losses	10,661		—			—		(3		)	—			10,658
Noninterest income	17,156		127,460			42,162		25,709			(6,729		)	205,758
Noninterest expense	34,474		115,135			38,795		28,324			(111		)	216,617
Income (loss) before income taxes	$	42,251	$	3,418		$	4,269	$	70		$	(73	)	$	49,935

			Mortgage						Financial		All Other and			Hilltop
	Banking		Origination			Insurance			Advisory		Eliminations			Consolidated
Nine Months Ended September 30, 2013
Net interest income (expense)	$	206,661	$	(32,849	)	$	2,755		$	9,409	$	21,162		$	207,138
Provision for loan losses	34,927		—			—			25		—			34,952
Noninterest income	41,041		439,246			122,365			77,349		(21,732		)	658,269
Noninterest expense	98,484		373,405			135,729			84,887		(497		)	692,008
Income (loss) before income taxes	$	114,291	$	32,992		$	(10,609	)	$	1,846	$	(73	)	$	138,447
September 30, 2013
Goodwill	$	207,741	$	13,071		$	23,988		$	7,008	$	—		$	251,808
Total assets	$	8,143,611	$	1,212,909		$	306,308		$	530,959	$	(1,100,195	)	$	9,093,592
December 31, 2012
Goodwill	$	209,703	$	13,071		$	23,988		$	7,008	$	—		$	253,770
Total assets	$	6,195,775	$	1,548,384		$	305,699		$	592,017	$	(1,355,010	)	$	7,286,865