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 and the mortgage origination segment is composed of PrimeLending. As discussed in Note 3 to the consolidated financial statements, during the first quarter of 2020, management had determined that the insurance segment met the criteria to be presented as discontinued operations. On June 30, 2020, Hilltop completed the sale of NLC. Accordingly, insurance segment results and its assets and liabilities have been presented as discontinued operations 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 June 30, 2020 | | Banking | | Broker-Dealer | | Origination | | Insurance | | Corporate | | Eliminations | | Consolidated | | Net interest income (expense) | | $ | 94,102 | | $ | 9,663 | | $ | (1,667) | | $ | — | | $ | (3,232) | | $ | 5,692 | | $ | 104,558 | | Provision for credit losses | | | 65,600 | | | 426 | | | — | | | — | | | — | | | — | | | 66,026 | | Noninterest income | | | 10,656 | | | 122,961 | | | 340,487 | | | — | | | 550 | | | (6,529) | | | 468,125 | | Noninterest expense | | | 56,622 | | | 104,411 | | | 200,493 | | | — | | | 8,888 | | | (205) | | | 370,209 | | Income (loss) from continuing operations before taxes | | | (17,464) | | | 27,787 | | | 138,327 | | | — | | | (11,570) | | | (632) | | | 136,448 | | Income (loss) from discontinued operations before taxes | | | — | | | — | | | — | | | (1,911) | | | 32,341 | | | — | | | 30,430 | | | | $ | (17,464) | | $ | 27,787 | | $ | 138,327 | | $ | (1,911) | | $ | 20,771 | | $ | (632) | | $ | 166,878 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage | | | | | | | All Other and | | Hilltop | | Six Months Ended June 30, 2020 | | Banking | | Broker-Dealer | | Origination | | Insurance | | Corporate | | Eliminations | | Consolidated | | Net interest income (expense) | | $ | 188,025 | | $ | 22,836 | | $ | (1,299) | | $ | — | | $ | (4,888) | | $ | 10,220 | | $ | 214,894 | | Provision for credit losses | | | 99,875 | | | 700 | | | — | | | — | | | — | | | — | | | 100,575 | | Noninterest income | | | 19,427 | | | 209,170 | | | 519,455 | | | — | | | 2,838 | | | (11,052) | | | 739,838 | | Noninterest expense | | | 113,589 | | | 185,350 | | | 340,045 | | | — | | | 13,741 | | | (615) | | | 652,110 | | Income (loss) from continuing operations before taxes | | | (6,012) | | | 45,956 | | | 178,111 | | | — | | | (15,791) | | | (217) | | | 202,047 | | Income from discontinued operations before taxes | | | — | | | — | | | — | | | 2,103 | | | 32,341 | | | — | | | 34,444 | | | | $ | (6,012) | | $ | 45,956 | | $ | 178,111 | | $ | 2,103 | | $ | 16,550 | | $ | (217) | | $ | 236,491 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage | | | | | | | All Other and | | Hilltop | | Three Months Ended June 30, 2019 | | Banking | | Broker-Dealer | | Origination | | Insurance | | Corporate | | Eliminations | | Consolidated | | Net interest income (expense) | | $ | 93,423 | | $ | 11,410 | | $ | (1,031) | | $ | — | | $ | (1,331) | | $ | 4,813 | | $ | 107,284 | | Provision for (reversal of) credit losses | | | (670) | | | (2) | | | — | | | — | | | — | | | — | | | (672) | | Noninterest income | | | 10,742 | | | 105,559 | | | 164,548 | | | — | | | 648 | | | (4,794) | | | 276,703 | | Noninterest expense | | | 58,251 | | | 94,870 | | | 141,721 | | | — | | | 9,274 | | | (28) | | | 304,088 | | Income (loss) from continuing operations before taxes | | | 46,584 | | | 22,101 | | | 21,796 | | | — | | | (9,957) | | | 47 | | | 80,571 | | Loss from discontinued operations before taxes | | | — | | | — | | | — | | | (2,829) | | | — | | | — | | | (2,829) | | | | $ | 46,584 | | $ | 22,101 | | $ | 21,796 | | $ | (2,829) | | $ | (9,957) | | $ | 47 | | $ | 77,742 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage | | | | | | | All Other and | | Hilltop | | Six Months Ended June 30, 2019 | | Banking | | Broker-Dealer | | Origination | | Insurance | | Corporate | | Eliminations | | Consolidated | | Net interest income (expense) | | $ | 186,113 | | $ | 24,260 | | $ | (1,499) | | $ | — | | $ | (2,661) | | $ | 9,360 | | $ | 215,573 | | Provision for (reversal of) credit losses | | | 355 | | | (76) | | | — | | | — | | | — | | | — | | | 279 | | Noninterest income | | | 21,362 | | | 196,865 | | | 282,580 | | | — | | | 1,360 | | | (9,501) | | | 492,666 | | Noninterest expense | | | 118,977 | | | 182,677 | | | 256,398 | | | — | | | 24,836 | | | (53) | | | 582,835 | | Income (loss) from continuing operations before taxes | | | 88,143 | | | 38,524 | | | 24,683 | | | — | | | (26,137) | | | (88) | | | 125,125 | | Income from discontinued operations before taxes | | | — | | | — | | | — | | | 3,980 | | | — | | | — | | | 3,980 | | | | $ | 88,143 | | $ | 38,524 | | $ | 24,683 | | $ | 3,980 | | $ | (26,137) | | $ | (88) | | $ | 129,105 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage | | | | | | | All Other and | | Hilltop | | | | Banking | | Broker-Dealer | | Origination | | Insurance | | Corporate | | Eliminations | | Consolidated | | June 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | Goodwill | | $ | 247,368 | | $ | 7,008 | | $ | 13,071 | | $ | — | | $ | — | | $ | — | | $ | 267,447 | | | | | | | | | | | | | | | | | | | | | | | | | Total assets | | $ | 13,575,474 | | $ | 2,954,978 | | $ | 2,972,527 | | $ | — | | $ | 2,828,281 | | $ | (5,397,144) | | $ | 16,934,116 | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | Goodwill | | $ | 247,368 | | $ | 7,008 | | $ | 13,071 | | $ | — | | $ | — | | $ | — | | $ | 267,447 | | | | | | | | | | | | | | | | | | | | | | | | | Assets of discontinued operations | | $ | — | | $ | — | | $ | — | | $ | 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 | |
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