| Segment and Related Information |
22. 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 (“CODM”), the Company’s President and Chief Executive Officer. For each reportable business segment, the CODM primarily uses income (loss) before income taxes to evaluate segment performance, develop strategy and allocate resources. The CODM also uses net revenues, comprised of net interest income and noninterest income, which provides comparability of financial performance trends for the reportable business segments. 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.” Transactions between segments consist primarily of borrowed funds and FDIC sweep investments. Interest is paid by the mortgage origination and broker-dealer segments for use of the warehouse lines of credit maintained by the banking segment and for a note payable maintained with the corporate segment, respectively. Additionally, the broker-dealer segment receives fee income for the FDIC sweep investments placed with the banking segment. The following tables present certain information about reportable business segment revenues, operating results, goodwill and assets (in thousands). | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | Banking | | Broker-Dealer | | Mortgage Origination | | Corporate | | All Other and Eliminations | | Hilltop Consolidated | Interest income | | $ | 150,931 | | $ | 36,665 | | $ | 13,630 | | $ | 3,813 | | $ | (15,993) | | $ | 189,046 | Interest expense (1) | | | 51,461 | | | 23,684 | | | 14,496 | | | 2,357 | | | (18,803) | | | 73,195 | Net interest income (expense) | | | 99,470 | | | 12,981 | | | (866) | | | 1,456 | | | 2,810 | | | 115,851 | Noninterest income | | | 12,212 | | | 110,993 | | | 78,969 | | | 894 | | | (3,110) | | | 199,958 | Net revenue | | $ | 111,682 | | $ | 123,974 | | $ | 78,103 | | $ | 2,350 | | $ | (300) | | $ | 315,809 | | | | | | | | | | | | | | | | | | | | Provision for (reversal of) credit losses | | | (1,027) | | | 53 | | | — | | | — | | | — | | | (974) | | | | | | | | | | | | | | | | | | | | Non-variable compensation and benefits | | | 33,523 | | | 33,858 | | | 26,224 | | | 8,774 | | | — | | | 102,379 | Variable compensation (2) | | | — | | | 43,003 | | | 34,514 | | | — | | | — | | | 77,517 | Occupancy and equipment, net | | | 8,880 | | | 4,543 | | | 4,138 | | | 2,032 | | | (166) | | | 19,427 | Professional services | | | 2,708 | | | 5,267 | | | 3,557 | | | 1,115 | | | — | | | 12,647 | Other segment expense items (3) | | | 16,353 | | | 24,871 | | | 11,685 | | | 1,985 | | | (128) | | | 54,766 | | | $ | 61,464 | | $ | 111,542 | | $ | 80,118 | | $ | 13,906 | | $ | (294) | | $ | 266,736 | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | | $ | 51,245 | | $ | 12,379 | | $ | (2,015) | | $ | (11,556) | | $ | (6) | | $ | 50,047 |
| | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Banking | | Broker-Dealer | | Mortgage Origination | | Corporate | | All Other and Eliminations | | Hilltop Consolidated | Interest income | | $ | 301,132 | | $ | 69,978 | | $ | 26,131 | | $ | 7,625 | | $ | (31,530) | | $ | 373,336 | Interest expense (1) | | | 102,938 | | | 45,104 | | | 27,925 | | | 4,740 | | | (35,319) | | | 145,388 | Net interest income (expense) | | | 198,194 | | | 24,874 | | | (1,794) | | | 2,885 | | | 3,789 | | | 227,948 | Noninterest income | | | 23,292 | | | 215,167 | | | 151,938 | | | 2,323 | | | (4,347) | | | 388,373 | Net revenue | | $ | 221,486 | | $ | 240,041 | | $ | 150,144 | | $ | 5,208 | | $ | (558) | | $ | 616,321 | | | | | | | | | | | | | | | | | | | | Provision for (reversal of) credit losses | | | 732 | | | 59 | | | — | | | — | | | — | | | 791 | | | | | | | | | | | | | | | | | | | | Non-variable compensation and benefits | | | 69,267 | | | 68,661 | | | 52,588 | | | 15,633 | | | — | | | 206,149 | Variable compensation (2) | | | — | | | 79,472 | | | 63,237 | | | — | | | — | | | 142,709 | Occupancy and equipment, net | | | 18,540 | | | 8,682 | | | 8,335 | | | 4,030 | | | (331) | | | 39,256 | Professional services | | | 4,983 | | | 10,000 | | | 6,935 | | | 1,974 | | | — | | | 23,892 | Other segment expense items (3) | | | 29,657 | | | 46,012 | | | 23,424 | | | 4,161 | | | (221) | | | 103,033 | | | $ | 122,447 | | $ | 212,827 | | $ | 154,519 | | $ | 25,798 | | $ | (552) | | $ | 515,039 | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | | $ | 98,307 | | $ | 27,155 | | $ | (4,375) | | $ | (20,590) | | $ | (6) | | $ | 100,491 |
| | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | Banking | | Broker-Dealer | | Mortgage Origination | | Corporate | | All Other and Eliminations | | Hilltop Consolidated | Interest income | | $ | 159,396 | | $ | 39,432 | | $ | 14,143 | | $ | 2,914 | | $ | (18,704) | | $ | 197,181 | Interest expense (1) | | | 64,477 | | | 26,281 | | | 16,445 | | | 3,080 | | | (23,776) | | | 86,507 | Net interest income (expense) | | | 94,919 | | | 13,151 | | | (2,302) | | | (166) | | | 5,072 | | | 110,674 | Noninterest income | | | 11,892 | | | 96,502 | | | 90,248 | | | (628) | | | (5,380) | | | 192,634 | Net revenue | | $ | 106,811 | | $ | 109,653 | | $ | 87,946 | | $ | (794) | | $ | (308) | | $ | 303,308 | | | | | | | | | | | | | | | | | | | | Provision for (reversal of) credit losses | | | (7,343) | | | 3 | | | — | | | — | | | — | | | (7,340) | | | | | | | | | | | | | | | | | | | | Non-variable compensation and benefits | | | 32,146 | | | 37,321 | | | 27,239 | | | 9,402 | | | — | | | 106,108 | Variable compensation (2) | | | — | | | 36,172 | | | 34,975 | | | (845) | | | — | | | 70,302 | Occupancy and equipment, net | | | 10,176 | | | 4,613 | | | 4,543 | | | 1,898 | | | (166) | | | 21,064 | Professional services | | | 2,429 | | | 4,196 | | | 2,916 | | | 1,317 | | | (38) | | | 10,820 | Other segment expense items (3) | | | 14,475 | | | 20,951 | | | 15,063 | | | 2,513 | | | (120) | | | 52,882 | | | $ | 59,226 | | $ | 103,253 | | $ | 84,736 | | $ | 14,285 | | $ | (324) | | $ | 261,176 | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | | $ | 54,928 | | $ | 6,397 | | $ | 3,210 | | $ | (15,079) | | $ | 16 | | $ | 49,472 |
| | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | Banking | | Broker-Dealer | | Mortgage Origination | | Corporate | | All Other and Eliminations | | Hilltop Consolidated | Interest income | | $ | 317,941 | | $ | 74,255 | | $ | 25,373 | | $ | 5,729 | | $ | (33,318) | | $ | 389,980 | Interest expense (1) | | | 132,472 | | | 49,536 | | | 29,072 | | | 6,764 | | | (43,655) | | | 174,189 | Net interest income (expense) | | | 185,469 | | | 24,719 | | | (3,699) | | | (1,035) | | | 10,337 | | | 215,791 | Noninterest income | | | 22,702 | | | 193,439 | | | 158,023 | | | 42,751 | | | (10,941) | | | 405,974 | Net revenue | | $ | 208,171 | | $ | 218,158 | | $ | 154,324 | | $ | 41,716 | | $ | (604) | | $ | 621,765 | | | | | | | | | | | | | | | | | | | | Provision for (reversal of) credit losses | | | 2,029 | | | (31) | | | — | | | — | | | — | | | 1,998 | | | | | | | | | | | | | | | | | | | | Non-variable compensation and benefits | | | 66,248 | | | 72,102 | | | 55,746 | | | 18,822 | | | — | | | 212,918 | Variable compensation (2) | | | — | | | 69,455 | | | 59,807 | | | 10,470 | | | — | | | 139,732 | Occupancy and equipment, net | | | 18,665 | | | 9,464 | | | 9,318 | | | 3,732 | | | (333) | | | 40,846 | Professional services | | | (1,728) | | | 8,652 | | | 6,068 | | | 2,072 | | | (130) | | | 14,934 | Other segment expense items (3) | | | 27,971 | | | 42,903 | | | 28,457 | | | 5,080 | | | (192) | | | 104,219 | | | $ | 111,156 | | $ | 202,576 | | $ | 159,396 | | $ | 40,176 | | $ | (655) | | $ | 512,649 | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | | $ | 94,986 | | $ | 15,613 | | $ | (5,072) | | $ | 1,540 | | $ | 51 | | $ | 107,118 |
| (1) | Significant interest expenses for each reportable segment that are regularly provided to the CODM include: |
Banking segment – primarily comprised of deposit interest expense. Broker-dealer segment – primarily comprised of securities loaned and short-term borrowings interest expense. Mortgage origination segment – primarily comprised of interest incurred on warehouse lines of credit held with the Bank. | (2) | Variable compensation represents performance-based commissions and incentives. |
| (3) | Other segment items for certain reportable segments that are regularly provided to the CODM include:
Broker-dealer – included brokerage fees expense and travel, meals and entertainment expense.
Mortgage origination segment – included mortgage origination and servicing expenses, unreimbursed loan closing costs and business |
development expense. | | | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage | | | | | All Other and | | Hilltop | | | Banking | | Broker-Dealer | | Origination | | Corporate | | Eliminations | | Consolidated | June 30, 2026 | | | | | | | | | | | | | | | | | | | Goodwill | | $ | 247,368 | | $ | 7,008 | | $ | 13,071 | | $ | — | | $ | — | | $ | 267,447 | | | | | | | | | | | | | | | | | | | | Total assets | | $ | 12,663,757 | | $ | 3,144,265 | | $ | 1,140,084 | | $ | 2,321,810 | | $ | (3,269,097) | | $ | 16,000,819 | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | | | | | | | | Goodwill | | $ | 247,368 | | $ | 7,008 | | $ | 13,071 | | $ | — | | $ | — | | $ | 267,447 | | | | | | | | | | | | | | | | | | | | Total assets | | $ | 12,743,756 | | $ | 2,929,088 | | $ | 1,091,437 | | $ | 2,370,468 | | $ | (3,289,755) | | $ | 15,844,994 |
|