Segment and Related Information

6 Months Ended

Jun. 30, 2022

Segment and Related Information

Segment and Related Information

21. 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, 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 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.” 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 June 30, 2022	Banking		Broker-Dealer		Origination		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	101,259	$	12,578	$	(1,291)	$	(3,190)	$	2,700	$	112,056
Provision for (reversal of) credit losses		5,025		311		—		—		—		5,336
Noninterest income		12,467		87,651		140,082		2,080		(3,007)		239,273
Noninterest expense		57,331		90,817		133,169		17,561		(335)		298,543
Income (loss) before taxes	$	51,370	$	9,101	$	5,622	$	(18,671)	$	28	$	47,450
					Mortgage				All Other and		Hilltop
Six Months Ended June 30, 2022	Banking		Broker-Dealer		Origination		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	193,329	$	24,096	$	(3,127)	$	(6,580)	$	4,329	$	212,047
Provision for (reversal of) credit losses		4,975		476		—		—		—		5,451
Noninterest income		25,237		148,341		283,276		3,846		(4,999)		455,701
Noninterest expense		115,761		171,464		268,027		30,354		(713)		584,893
Income (loss) before taxes	$	97,830	$	497	$	12,122	$	(33,088)	$	43	$	77,404

					Mortgage				All Other and		Hilltop
Three Months Ended June 30, 2021	Banking		Broker-Dealer		Origination		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	105,468	$	10,682	$	(5,953)	$	(4,687)	$	2,406	$	107,916
Provision for (reversal of) credit losses		(28,775)		55		—		—		—		(28,720)
Noninterest income		10,242		83,463		241,965		6,877		(2,648)		339,899
Noninterest expense		57,514		87,234		186,963		12,072		(415)		343,368
Income (loss) before taxes	$	86,971	$	6,856	$	49,049	$	(9,882)	$	173	$	133,167

					Mortgage				All Other and		Hilltop
Six Months Ended June 30, 2021	Banking		Broker-Dealer		Origination		Corporate		Eliminations		Consolidated
Net interest income (expense)	$	209,352	$	21,196	$	(13,051)	$	(9,379)	$	5,480	$	213,598
Provision for (reversal of) credit losses		(33,950)		121		—		—		—		(33,829)
Noninterest income		21,566		182,086		552,409		7,383		(5,960)		757,484
Noninterest expense		113,302		178,638		397,297		21,660		(867)		710,030
Income (loss) before taxes	$	151,566	$	24,523	$	142,061	$	(23,656)	$	387	$	294,881

					Mortgage				All Other and		Hilltop
	Banking		Broker-Dealer		Origination		Corporate		Eliminations		Consolidated
June 30, 2022
Goodwill	$	247,368	$	7,008	$	13,071	$	—	$	—	$	267,447
Total assets	$	13,826,898	$	2,659,850	$	1,820,074	$	2,444,889	$	(4,035,972)	$	16,715,739
December 31, 2021
Goodwill	$	247,368	$	7,008	$	13,071	$	—	$	—	$	267,447
Total assets	$	14,944,249	$	3,673,346	$	2,207,822	$	2,940,670	$	(5,077,007)	$	18,689,080