Segment and Related Information

3 Months Ended

Mar. 31, 2016

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. For the third quarter of 2015, the Company began presenting the bargain purchase gain associated with the SWS Merger, previously allocated to the banking and broker-dealer reportable business segments, within corporate to better reflect segment performance. This change is reflected in the segment operating results within noninterest income for the three months ended March 31, 2015. Additionally, related amounts previously reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 will be revised in future filings. This change had no impact on the Company’s consolidated results of operations.

The banking segment includes the operations of the Bank. The broker-dealer segment includes the operations of the Hilltop Broker-Dealers, while the mortgage origination segment is composed of PrimeLending, and 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.

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

					Mortgage						All Other and		Hilltop
Three Months Ended March 31, 2016	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	86,105	$	7,051	$	(2,569)	$	740	$	(1,714)	$	3,928	$	93,541
Provision for loan losses		3,500		(93)		—		—		—		—		3,407
Noninterest income		12,956		80,883		146,338		41,804		1		(4,296)		277,686
Noninterest expense		64,357		84,261		134,671		36,375		5,849		(312)		325,201
Income (loss) before income taxes	$	31,204	$	3,766	$	9,098	$	6,169	$	(7,562)	$	(56)	$	42,619

					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		19,309		79,528		135,292		41,845		81,289		(4,417)		352,846
Noninterest expense		58,532		90,795		122,302		33,466		9,626		(245)		314,476
Income (loss) before income taxes	$	41,733	$	(3,472)	$	9,976	$	9,136	$	71,772	$	(70)	$	129,075
March 31, 2016
Goodwill	$	207,741	$	7,008	$	13,071	$	23,988	$	—	$	—	$	251,808
Total assets	$	8,591,995	$	2,692,691	$	1,570,635	$	347,328	$	1,926,204	$	(3,396,925)	$	11,731,928
December 31, 2015
Goodwill	$	207,741	$	7,008	$	13,071	$	23,988	$	—	$	—	$	251,808
Total assets	$	8,707,433	$	2,673,455	$	1,737,843	$	349,259	$	1,905,547	$	(3,506,536)	$	11,867,001