Segment and Related Information

3 Months Ended

Mar. 31, 2026

Segment and Related Information

Segment and Related Information

22. Segment and Related Information

The Company has two primary business units, PCC (banking and mortgage origination) and Securities Holdings (broker-dealer). Under GAAP, the Company’s business units are comprised of three reportable business segments organized primarily by the core products offered to the segments’ respective customers: banking, broker-dealer and mortgage origination. These segments reflect the manner in which operations are managed and the criteria used by the chief operating decision maker (“CODM”), the Company’s President and Chief Executive Officer. For each reportable business segment, the CODM primarily uses income (loss) before taxes to evaluate segment performance, develop strategy and allocate resources. The CODM also uses net revenues, comprised of net interest income and noninterest income, which provides comparability of financial performance trends for the reportable business segments.

The banking segment includes the operations of the Bank. The broker-dealer segment includes the operations of Securities Holdings, and the mortgage origination segment is composed of PrimeLending.

Corporate includes certain activities not allocated to specific business segments. These activities include holding company financing and investing activities, merchant banking investment opportunities and management and administrative services to support the overall operations of the Company.

Balance sheet amounts not discussed previously and the elimination of intercompany transactions are included in “All Other and Eliminations.” Transactions between segments consist primarily of borrowed funds and FDIC sweep investments. Interest is paid by the mortgage origination and broker-dealer segments for use of the warehouse lines of credit maintained by the banking segment and for a note payable maintained with the corporate segment, respectively. Additionally, the broker-dealer segment receives fee income for the FDIC sweep investments placed with the banking segment.

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

Three Months Ended March 31, 2026	Banking		Broker-Dealer		Mortgage Origination		Corporate		All Other and Eliminations		Hilltop Consolidated
Interest income	$	150,202	$	33,313	$	12,501	$	3,812	$	(15,538)	$	184,290
Interest expense (1)		51,478		21,421		13,428		2,383		(16,517)		72,193
Net interest income (expense)		98,724		11,892		(927)		1,429		979		112,097
Noninterest income		11,081		104,175		72,969		1,429		(1,239)		188,415
Net revenue	$	109,805	$	116,067	$	72,042	$	2,858	$	(260)	$	300,512
Provision for (reversal of) credit losses		1,759		6		—		—		—		1,765
Non-variable compensation and benefits		35,744		34,803		26,364		6,859		—		103,770
Variable compensation (2)		—		36,469		28,723		—		—		65,192
Occupancy and equipment, net		9,660		4,139		4,197		1,999		(166)		19,829
Professional services		2,275		4,733		3,378		859		—		11,245
Other segment expense items (3)		13,305		21,141		11,739		2,176		(94)		48,267
	$	60,984	$	101,285	$	74,401	$	11,893	$	(260)	$	248,303
Income (loss) before taxes	$	47,062	$	14,776	$	(2,359)	$	(9,035)	$	—	$	50,444

Three Months Ended March 31, 2025	Banking		Broker-Dealer		Mortgage Origination		Corporate		All Other and Eliminations		Hilltop Consolidated
Interest income	$	158,545	$	34,823	$	11,230	$	2,815	$	(14,614)	$	192,799
Interest expense (1)		67,995		23,255		12,627		3,684		(19,879)		87,682
Net interest income (expense)		90,550		11,568		(1,397)		(869)		5,265		105,117
Noninterest income		10,810		96,937		67,775		43,379		(5,561)		213,340
Net revenue	$	101,360	$	108,505	$	66,378	$	42,510	$	(296)	$	318,457
Provision for (reversal of) credit losses		9,372		(34)		—		—		—		9,338
Non-variable compensation and benefits		34,102		34,781		28,507		9,420		—		106,810
Variable compensation (2)		—		33,283		24,832		11,315		—		69,430
Occupancy and equipment, net		8,489		4,851		4,775		1,834		(167)		19,782
Professional services		(4,157)		4,456		3,152		755		(92)		4,114
Other segment expense items (3)		13,496		21,952		13,394		2,567		(72)		51,337
	$	51,930	$	99,323	$	74,660	$	25,891	$	(331)	$	251,473
Income (loss) before taxes	$	40,058	$	9,216	$	(8,282)	$	16,619	$	35	$	57,646

(1) Significant interest expenses for each reportable segment that are regularly provided to the CODM include:

Banking segment – primarily comprised of deposit interest expense.

Broker-dealer segment – primarily comprised of securities loaned and short-term borrowings interest expense.

Mortgage origination segment – primarily comprised of interest incurred on warehouse lines of credit held with the Bank.

(2) Variable compensation represents performance-based commissions and incentives.

(3) Other segment items for certain reportable segments that are regularly provided to the CODM include:  
  Broker-dealer – included brokerage fees expense and travel, meals and entertainment expense.  
  Mortgage origination segment – included mortgage origination and servicing expenses, unreimbursed loan closing costs and business

development expense.

					Mortgage				All Other and		Hilltop
	Banking		Broker-Dealer		Origination		Corporate		Eliminations		Consolidated
March 31, 2026
Goodwill	$	247,368	$	7,008	$	13,071	$	—	$	—	$	267,447
Total assets	$	12,451,921	$	3,107,780	$	973,682	$	2,354,540	$	(3,186,067)	$	15,701,856
December 31, 2025
Goodwill	$	247,368	$	7,008	$	13,071	$	—	$	—	$	267,447
Total assets	$	12,743,756	$	2,929,088	$	1,091,437	$	2,370,468	$	(3,289,755)	$	15,844,994