| Schedule of changes in fair value of derivatives |
Changes in the fair value of derivatives are presented in the following table (in thousands). | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Increase (decrease) in fair value of derivatives during period: | | | | | | | | | | | | | PrimeLending | | $ | (5,142) | | $ | (6,598) | | $ | 4,150 | | $ | (5,610) | Hilltop Broker-Dealers | | | 1,400 | | | (4,905) | | | (6,550) | | | (655) | Bank | | | 35 | | | (10) | | | 58 | | | (33) |
|
| Schedule of derivative positions |
Derivative positions are presented in the following table (in thousands). | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | Notional | | Estimated | | Notional | | Estimated | | | Amount | | Fair Value | | Amount | | Fair Value | Derivative instruments (not designated as hedges): | | | | | | | | | | | | | IRLCs | | $ | 672,920 | | $ | 8,790 | | $ | 456,734 | | $ | 5,997 | Commitments to purchase MBSs | | | 1,689,278 | | | 4,112 | | | 1,586,198 | | | 7,311 | Commitments to sell MBSs | | | 2,422,495 | | | (5,592) | | | 2,383,043 | | | (6,344) | Interest rate swaps | | | 38,000 | | | (1,548) | | | 53,470 | | | (666) | Interest rate swaps back-to-back (asset) (1) | | | 105,768 | | | 522 | | | 110,437 | | | 1,495 | Interest rate swaps back-to-back (liability) (1) | | | 105,768 | | | (535) | | | 110,437 | | | (1,551) | U.S. Treasury bond futures and options (2) | | | 144,300 | | | — | | | 217,220 | | | — | Interest rate and other futures (2) | | | 347,400 | | | — | | | 9,250 | | | — | Credit default swaps | | | 45,000 | | | — | | | 40,000 | | | 7 | | | | | | | | | | | | | | Derivative instruments (designated as hedges): | | | | | | | | | | | | | Interest rate swaps designated as cash flow hedges | | $ | 130,000 | | $ | 1,691 | | $ | 137,000 | | $ | 1,291 | Interest rate swaps designated as fair value hedges (3) | | | 317,009 | | | 26,762 | | | 317,335 | | | 23,858 |
| (1) | Noted derivative instruments include both customer-facing derivatives as well as offsetting derivatives facing other dealer banks. The fair value of these derivatives include a net credit valuation adjustment that was nominal at June 30, 2026 and December 31, 2025, respectively, reducing the fair value of the liability. |
| (2) | Noted derivative instruments include contracts between the Hilltop Broker-Dealers and PrimeLending and their respective counterparties with changes in fair value of the contracts that are settled daily. |
| (3) | The Company designated $307.0 million and $347.3 million as the hedged amount (from a closed portfolio of prepayable available for sale securities and loans held for investment with a carrying value of $280.1 million and $323.4 million as of June 30, 2026 and December 31, 2025, respectively), of which, a subset of these hedges are in portfolio layer hedging relationships. The cumulative basis adjustment included in the carrying value of the hedged items totaled $26.9 million and $24.0 million as of June 30, 2026 and December 31, 2025, respectively. |
|