Segment and Related Information

3 Months Ended

Mar. 31, 2020

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 chief operating decision maker, the Company’s President and Chief Executive Officer, to evaluate segment performance, develop strategy and allocate resources.

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.

As discussed in Note 3 to the consolidated financial statements, management determined that the pending sale of NLC represents a strategic shift away from one of the historically core business units of the Company. Accordingly, as of March 31, 2020 and for all prior periods, insurance segment results have been presented as discontinued operations and its assets and liabilities have been classified as held for sale in the consolidated financial statements and in the tables below.

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.” 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, 2020	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	93,923	$	13,173	$	368	$	—	$	(1,656)	$	4,528	$	110,336
Provision for credit losses		34,275		274		—		—		—		—		34,549
Noninterest income		8,771		86,209		178,968		—		2,309		(4,544)		271,713
Noninterest expense		56,967		80,939		139,552		—		4,853		(410)		281,901
Income (loss) before taxes from continuing operations		11,452		18,169		39,784		—		(4,200)		394		65,599
Income before taxes from discontinued operations		—		—		—		4,014		—		—		4,014
	$	11,452	$	18,169	$	39,784	$	4,014	$	(4,200)	$	394	$	69,613

					Mortgage						All Other and		Hilltop
Three Months Ended March 31, 2019	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	92,690	$	12,850	$	(467)	$	—	$	(1,330)	$	4,546	$	108,289
Provision for (reversal of) credit losses		1,025		(74)		—		—		—		—		951
Noninterest income		10,621		91,307		118,033		—		538		(4,536)		215,963
Noninterest expense		60,726		87,807		114,677		—		15,562		(25)		278,747
Income (loss) before taxes from continuing operations		41,560		16,424		2,889		—		(16,354)		35		44,554
Income before taxes from discontinued operations		—		—		—		6,809		—		—		6,809
	$	41,560	$	16,424	$	2,889	$	6,809	$	(16,354)	$	35	$	51,363

					Mortgage						All Other and		Hilltop
	Banking		Broker-Dealer		Origination		Insurance		Corporate		Eliminations		Consolidated
March 31, 2020
Goodwill	$	247,368	$	7,008	$	13,071	$	—	$	—	$	—	$	267,447
Assets held for sale	$	—	$	—	$	—	$	249,758	$	—	$	—	$	249,758
Total assets	$	11,616,994	$	3,406,300	$	2,607,131	$	249,758	$	2,448,412	$	(4,622,345)	$	15,706,250
December 31, 2019
Goodwill	$	247,368	$	7,008	$	13,071	$	—	$	—	$	—	$	267,447
Assets held for sale	$	—	$	—	$	—	$	248,429	$	—	$	—	$	248,429
Total assets	$	11,147,344	$	3,457,068	$	2,357,415	$	248,429	$	2,393,604	$	(4,431,412)	$	15,172,448