Segment and Related Information

3 Months Ended

Mar. 31, 2015

Segment and Related Information

Segment and Related Information

21. Segment and Related Information

The Company currently has four reportable business segments that are organized primarily by the core products offered to the segments’ respective customers. These segments reflect the manner in which operations are managed and the criteria used by the Company’s chief operating decision maker function to evaluate segment performance, develop strategy and allocate resources. The chief operating decision maker function consists of the President and Chief Executive Officer of the Company and the Chief Executive Officer of PlainsCapital.

The banking segment includes the operations of the Bank and, since January 1, 2015, the operations of the former SWS FSB acquired in the SWS Merger. The broker-dealer segment includes the operations of First Southwest and, since January 1, 2015, the operations of Southwest Securities and SWS Financial acquired in the SWS Merger. The mortgage origination segment is composed of PrimeLending, while the insurance segment is composed of NLC.

Corporate includes certain activities not allocated to specific business segments. These activities include holding company financing and investing activities, and management and administrative services to support the overall operations of the Company including, but not limited to, certain executive management, corporate relations, legal, finance and acquisition costs not allocated to business segments.

Balance sheet amounts for remaining subsidiaries not discussed previously and the elimination of intercompany transactions are included in “All Other and Eliminations.” The following tables present certain information about reportable segment revenues, operating results, goodwill and assets (in thousands).

					Mortgage								All Other and			Hilltop
Three Months Ended March 31, 2015	Banking		Broker-Dealer		Origination			Insurance		Corporate			Eliminations			Consolidated
Net interest income (expense)	$	83,442	$	7,996	$	(3,014	)	$	757	$	109		$	4,102		$	93,392
Provision for loan losses	2,486		201		—			—		—			—			2,687
Noninterest income	58,775		122,877		135,292			41,845		—			(4,417		)	354,372
Noninterest expense	58,532		90,795		122,302			33,466		9,626			(245		)	314,476
Income (loss) before income taxes	$	81,199	$	39,877	$	9,976		$	9,136	$	(9,517	)	$	(70	)	$	130,601

						Mortgage								All Other and			Hilltop
Three Months Ended March 31, 2014	Banking		Broker-Dealer			Origination			Insurance		Corporate			Eliminations			Consolidated
Net interest income (expense)	$	79,572	$	2,629		$	(4,139	)	980		$	1,692		$	4,687		$	85,421
Provision for loan losses	3,228		14			—			—		—			—			3,242
Noninterest income	16,228		24,597			91,763			42,773		—			(5,261		)	170,100
Noninterest expense	60,677		27,365			90,632			32,341		2,188			(574		)	212,629
Income (loss) before income taxes	$	31,895	$	(153	)	$	(3,008	)	$	11,412	$	(496	)	$	—		$	39,650
March 31, 2015
Goodwill	$	207,741	$	7,008		$	13,071		$	23,988	$	—		$	—		$	251,808
Total assets	$	8,373,160	$	3,747,053		$	1,412,742		$	343,959	$	1,810,205		$	(3,124,225	)	$	12,562,894
December 31, 2014
Goodwill	$	207,741	$	7,008		$	13,071		$	23,988	$	—		$	—		$	251,808
Total assets	$	8,036,729	$	758,636		$	1,498,846		$	328,693	$	1,522,655		$	(2,903,143	)	$	9,242,416