Segment and Related Information

9 Months Ended

Sep. 30, 2017

Segment and Related Information

Segment and Related Information

22. 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 Company’s President and Co-Chief Executive Officer and the Company’s Vice Chairman and Co-Chief Executive Officer.

The banking segment includes the operations of the Bank, the broker-dealer segment includes the operations of Securities Holdings, 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 September 30, 2017	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	89,322	$	12,215	$	94	$	864	$	(2,589)	$	5,074	$	104,980
Provision for loan losses		1,665		(405)		—		—		—		—		1,260
Noninterest income		11,414		91,418		163,758		36,839		182		(5,134)		298,477
Noninterest expense		62,750		83,836		151,056		47,015		9,325		(140)		353,842
Income (loss) before income taxes	$	36,321	$	20,202	$	12,796	$	(9,312)	$	(11,732)	$	80	$	48,355
					Mortgage						All Other and		Hilltop
Nine Months Ended September 30, 2017	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	273,595	$	31,052	$	(791)	$	1,982	$	(7,413)	$	14,631	$	313,056
Provision for loan losses		8,907		(89)		—		—		—		—		8,818
Noninterest income		49,323		266,779		487,033		113,562		12,792		(14,881)		914,608
Noninterest expense		186,075		252,395		444,263		133,444		25,010		(602)		1,040,585
Income (loss) before income taxes	$	127,936	$	45,525	$	41,979	$	(17,900)	$	(19,631)	$	352	$	178,261

					Mortgage						All Other and		Hilltop
Three Months Ended September 30, 2016	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	90,549	$	7,823	$	(3,076)	$	716	$	(1,854)	$	5,012	$	99,170
Provision for loan losses		4,179		(189)		—		—		—		—		3,990
Noninterest income		12,711		103,511		202,560		41,170		—		(5,494)		354,458
Noninterest expense		61,536		94,094		168,303		30,415		10,041		(256)		364,133
Income (loss) before income taxes	$	37,545	$	17,429	$	31,181	$	11,471	$	(11,895)	$	(226)	$	85,505

					Mortgage						All Other and		Hilltop
Nine Months Ended September 30, 2016	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	268,682	$	22,314	$	(7,941)	$	2,213	$	(5,413)	$	13,552	$	293,407
Provision for loan losses		36,292		(19)		—		—		—		—		36,273
Noninterest income		39,012		287,293		541,779		124,366		2		(14,614)		977,838
Noninterest expense		181,016		270,135		465,463		118,506		22,373		(806)		1,056,687
Income (loss) before income taxes	$	90,386	$	39,491	$	68,375	$	8,073	$	(27,784)	$	(256)	$	178,285

					Mortgage						All Other and		Hilltop
	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
September 30, 2017
Goodwill	$	207,741	$	7,008	$	13,071	$	23,988	$	—	$	—	$	251,808
Total assets	$	9,708,778	$	3,432,228	$	2,176,943	$	327,767	$	2,041,901	$	(4,154,817)	$	13,532,800
December 31, 2016
Goodwill	$	207,741	$	7,008	$	13,071	$	23,988	$	—	$	—	$	251,808
Total assets	$	9,527,518	$	2,777,849	$	2,042,458	$	347,252	$	2,032,749	$	(3,989,764)	$	12,738,062