Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2014

Regulatory Matters

Schedule of comparison of the Bank's and Hilltop's consolidated actual capital amounts and ratios to the regulatory minimum requirements and the Bank's regulatory minimum capital requirements and the Bank's regulatory minimum capital requirements needed to qualify as a well-capitalized institution without giving effect to the final Basel III capital rules adopted by the Federal Reserve Board

The following table shows the Bank’s and Hilltop’s consolidated actual capital amounts and ratios compared to the regulatory minimum capital requirements and the Bank’s regulatory minimum capital requirements needed to qualify as a “well-capitalized” institution (dollars in thousands), without giving effect to the final Basel III capital rules.

									To Be Well Capitalized
					Minimum Capital				Minimum Capital
	Actual				Requirements				Requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2014
Tier 1 capital (to average assets):
Bank	$	845,656	10.31	%	$	328,025	4	%	$	410,031	5	%
Hilltop	1,231,724		14.17	%	347,619		4	%	N/A		N/A
Tier 1 capital (to risk-weighted assets):
Bank	845,656		13.74	%	246,099		4	%	369,148		6	%
Hilltop	1,231,724		19.02	%	259,078		4	%	N/A		N/A
Total capital (to risk-weighted assets):
Bank	888,744		14.45	%	492,198		8	%	615,247		10	%
Hilltop	1,275,023		19.69	%	518,157		8	%	N/A		N/A
December 31, 2013
Tier 1 capital (to average assets):
Bank	$	762,364	9.29	%	$	328,275	4	%	$	410,344	5	%
Hilltop	1,112,424		12.81	%	347,480		4	%	N/A		N/A
Tier 1 capital (to risk-weighted assets):
Bank	762,364		13.38	%	227,984		4	%	341,976		6	%
Hilltop	1,112,424		18.53	%	240,159		4	%	N/A		N/A
Total capital (to risk-weighted assets):
Bank	797,771		14.00	%	455,968		8	%	569,960		10	%
Hilltop	1,148,736		19.13	%	480,318		8	%	N/A		N/A

Schedule of reconciliation of equity capital to Tier 1 and total capital (as defined)

A reconciliation of equity capital to Tier 1 and total capital (as defined) is as follows (in thousands).

	December 31, 2014						December 31, 2013
	Bank			Hilltop			Bank			Hilltop
Total equity capital	$	1,104,048		$	1,460,452		$	985,519		$	1,311,141
Add:
Minority interests	787			787			781			781
Trust preferred securities	—			65,000			—			65,000
Net unrealized holding losses on securities available for sale and held in trust	3,484			(651		)	42,901			34,863
Deduct:
Goodwill and other disallowed intangible assets	(259,048		)	(290,052		)	(264,822		)	(297,174		)
Other	(3,615		)	(3,812		)	(2,015		)	(2,187		)
Tier 1 capital (as defined)	845,656			1,231,724			762,364			1,112,424
Add: Allowable Tier 2 capital
Allowance for loan losses	43,088			43,088			35,407			35,407
Net unrealized holding losses on equity securities	—			211			—			905
Total capital (as defined)	$	888,744		$	1,275,023		$	797,771		$	1,148,736

Summary of statutory capital and surplus and statutory net income of each insurance subsidiary

A summary of statutory capital and surplus and statutory net income (loss) of each insurance subsidiary is as follows (in thousands).

	December 31,
	2014		2013
Capital and surplus:
National Lloyds Insurance Company	$	113,023	$	98,602
American Summit Insurance Company	28,966		26,452

	Year Ended December 31,
	2014		2013		2012
Statutory net income (loss):
National Lloyds Insurance Company	$	14,893	$	3,583	$	(3,858	)
American Summit Insurance Company	2,554		521		972