| 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 September 30, | | Nine Months Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Increase (decrease) in fair value of derivatives during period: | | | | | | | | | | | | | PrimeLending | | $ | 4,836 | | $ | 6,180 | | $ | 8,987 | | $ | 570 | Hilltop Broker-Dealers | | | (6,460) | | | 2,312 | | | (13,010) | | | 1,658 | Bank | | | 19 | | | 9 | | | 77 | | | (24) |
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| Schedule of derivative positions |
Derivative positions are presented in the following table (in thousands). | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | Notional | | Estimated | | Notional | | Estimated | | | Amount | | Fair Value | | Amount | | Fair Value | Derivative instruments (not designated as hedges): | | | | | | | | | | | | | IRLCs | | $ | 503,080 | | $ | (225) | | $ | 456,734 | | $ | 5,997 | Commitments to purchase MBSs | | | 1,504,911 | | | (19,501) | | | 1,586,198 | | | 7,311 | Commitments to sell MBSs | | | 1,741,917 | | | 17,924 | | | 2,383,043 | | | (6,344) | Interest rate swaps | | | 53,500 | | | 5,214 | | | 53,470 | | | (666) | Interest rate swaps back-to-back (asset) (1) | | | 88,768 | | | 1,528 | | | 110,437 | | | 1,495 | Interest rate swaps back-to-back (liability) (1) | | | 88,768 | | | (1,522) | | | 110,437 | | | (1,551) | U.S. Treasury bond futures and options (2) | | | 161,600 | | | — | | | 217,220 | | | — | Interest rate and other futures (2) | | | 258,400 | | | — | | | 9,250 | | | — | Credit default swaps | | | 55,000 | | | 87 | | | 40,000 | | | 7 | | | | | | | | | | | | | | Derivative instruments (designated as hedges): | | | | | | | | | | | | | Interest rate swaps designated as cash flow hedges | | $ | 145,000 | | $ | 3,873 | | $ | 137,000 | | $ | 1,291 | Interest rate swaps designated as fair value hedges (3) | | | 294,846 | | | 35,106 | | | 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 September 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 $284.8 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 $249.5 million and $323.4 million as of September 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 $35.2 million and $24.0 million as of September 30, 2026 and December 31, 2025, respectively. |
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