Hilltop (HTH) 10-Q 26 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 26, 2018
Document and Entity Information
Entity Registrant Name	Hilltop Holdings Inc.
Entity Central Index Key	1,265,131
Trading Symbol	hth
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		94,576,828

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 353,432	$ 486,977
Federal funds sold	403	405
Securities purchased under agreements to resell	229,172	186,537
Assets segregated for regulatory purposes	128,417	186,578
Securities:
Trading, at fair value	634,197	730,685
Available for sale, at fair value (amortized cost of $826,515 and $748,255, respectively)	811,218	744,319
Held to maturity, at amortized cost (fair value of $339,702 and $349,939, respectively)	353,192	355,849
Equity, at fair value	21,218	21,241
Total securities	1,819,825	1,852,094
Loans held for sale	1,953,562	1,715,357
Non-covered loans, net of unearned income	6,384,660	6,273,669
Allowance for non-covered loan losses	(59,996)	(60,957)
Non-covered loans, net	6,324,664	6,212,712
Covered loans, net of allowance of $1,974 and $2,729, respectively	158,996	179,400
Broker-dealer and clearing organization receivables	1,614,951	1,464,378
Premises and equipment, net	172,911	177,577
FDIC indemnification asset	23,525	29,340
Covered other real estate owned	34,895	36,744
Other assets	589,897	549,447
Goodwill	251,808	251,808
Other intangible assets, net	32,716	36,432
Total assets	13,689,174	13,365,786
Deposits:
Noninterest-bearing	2,468,332	2,411,849
Interest-bearing	5,345,290	5,566,270
Total deposits	7,813,622	7,978,119
Broker-dealer and clearing organization payables	1,409,904	1,287,563
Short-term borrowings	1,610,735	1,206,424
Securities sold, not yet purchased, at fair value	251,581	232,821
Notes payable	227,736	208,809
Junior subordinated debentures	67,012	67,012
Other liabilities	392,171	470,231
Total liabilities	11,772,761	11,450,979
Commitments and contingencies (see Notes 12 and 13)
Hilltop stockholders' equity:
Common stock, $0.01 par value, 125,000,000 shares authorized; 94,570,757 and 95,982,184 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	946	960
Additional paid-in capital	1,502,105	1,526,369
Accumulated other comprehensive income (loss)	(11,846)	(394)
Retained earnings	419,683	384,545
Deferred compensation employee stock trust, net	857	848
Employee stock trust (11,217 and 11,672 shares, at cost, respectively)	(252)	(247)
Total Hilltop stockholders' equity	1,911,493	1,912,081
Noncontrolling interests	4,920	2,726
Total stockholders' equity	1,916,413	1,914,807
Total liabilities and stockholders' equity	$ 13,689,174	$ 13,365,786

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Available for sale, amortized cost	$ 826,515	$ 748,255
Held to maturity, fair value	339,702	349,939
Covered loans, allowance	$ 1,974	$ 2,729
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	94,570,757	95,982,184
Common stock, shares outstanding	94,570,757	95,982,184
Employee stock trust, shares	11,217	11,672

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest income:
Loans, including fees	$ 103,924	$ 113,793	$ 203,868	$ 203,784
Securities borrowed	17,486	9,597	33,786	17,650
Securities:
Taxable	12,516	8,833	23,469	15,433
Tax-exempt	1,697	1,375	3,469	2,619
Other	4,417	2,708	8,808	5,061
Total interest income	140,040	136,306	273,400	244,547
Interest expense:
Deposits	10,136	5,464	18,811	10,154
Securities loaned	15,075	7,481	28,814	13,821
Short-term borrowings	6,466	3,648	10,509	5,066
Notes payable	2,437	2,826	4,934	5,640
Junior subordinated debentures	918	744	1,740	1,455
Other	160	167	324	335
Total interest expense	35,192	20,330	65,132	36,471
Net interest income	104,848	115,976	208,268	208,076
Provision (recovery) for loan losses	340	5,853	(1,467)	7,558
Net interest income after provision (recovery) for loan losses	104,508	110,123	209,735	200,518
Noninterest income:
Net gains from sale of loans and other mortgage production income	132,478	153,688	238,245	277,838
Mortgage loan origination fees	29,318	25,976	49,944	45,532
Securities commissions and fees	38,320	37,804	77,037	76,861
Investment and securities advisory fees and commissions	21,965	25,537	40,319	47,739
Net insurance premiums earned	34,105	36,020	68,420	72,160
Other	23,248	65,667	40,612	96,001
Total noninterest income	279,434	344,692	514,577	616,131
Noninterest expense:
Employees' compensation and benefits	200,632	214,719	383,232	401,605
Occupancy and equipment, net	27,893	27,919	55,723	55,212
Professional services	26,020	26,696	50,724	51,741
Loss and loss adjustment expenses	24,409	33,184	39,941	54,884
Other	59,563	63,733	117,099	123,301
Total noninterest expense	338,517	366,251	646,719	686,743
Income before income taxes	45,425	88,564	77,593	129,906
Income tax expense	11,034	25,754	18,522	40,789
Net income	34,391	62,810	59,071	89,117
Less: Net income attributable to noncontrolling interest	1,311	334	1,550	207
Income attributable to Hilltop	$ 33,080	$ 62,476	$ 57,521	$ 88,910
Earnings per common share:
Basic (in dollars per share)	$ 0.35	$ 0.64	$ 0.60	$ 0.90
Diluted (in dollars per share)	0.35	0.63	0.60	0.90
Cash dividends declared per common share	$ 0.07	$ 0.06	$ 0.14	$ 0.12
Weighted average share information:
Basic (in shares)	95,270	98,154	95,625	98,295
Diluted (in shares)	95,358	98,414	95,727	98,576

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 34,391	$ 62,810	$ 59,071	$ 89,117
Other comprehensive income:
Net unrealized gains (losses) on securities available for sale, net of tax of $(602), $696, $(2,495) and $927, respectively	(2,148)	1,224	(8,851)	1,636
Reclassification adjustment for gains included in net income, net of tax of $0, $(5), $0 and $(5), respectively		(9)		(9)
Comprehensive income	32,243	64,025	50,220	90,744
Less: comprehensive income attributable to noncontrolling interest	1,311	334	1,550	207
Comprehensive income applicable to Hilltop	$ 30,932	$ 63,691	$ 48,670	$ 90,537

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net unrealized gains (losses) on securities available for sale and other, tax	$ (602)	$ 696	$ (2,495)	$ 927
Other comprehensive income reclassification adjustment, tax	$ 0	$ (5)	$ 0	$ (5)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Hilltop.	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Accumulated Deficit).	Deferred Compensation Employee Stock Trust, Net	Employee Stock Trust	Noncontrolling Interest	Total
Balance at Dec. 31, 2016	$ 1,870,509	$ 985	$ 1,572,877	$ 485	$ 295,568	$ 903	$ (309)	$ 4,011	$ 1,874,520
Balance (in shares) at Dec. 31, 2016		98,544,000					15,000
Increase (Decrease) in Stockholders' Equity
Net income	88,910				88,910			207	89,117
Other comprehensive income	1,627			1,627					1,627
Stock-based compensation expense	5,687		5,687						5,687
Common stock issued to board members	212		212						212
Common stock issued to board members (in shares)		7,000
Issuance of common stock related to share-based awards, net	(2,131)	$ 3	(2,134)						(2,131)
Issuance of common stock related to share-based awards, net (in shares)		244,000
Repurchase of common stock	(63,075)	$ (25)	(46,739)		(16,311)				(63,075)
Repurchase of common stock (in shares)		(2,462,000)
Dividends on common stock	(11,603)				(11,603)				(11,603)
Deferred compensation plan	3					(58)	$ 61		3
Deferred compensation plan (in shares)							(3,000)
Net cash distributed to noncontrolling interest								(1,304)	(1,304)
Balance at Jun. 30, 2017	1,890,139	$ 963	1,529,903	2,112	356,564	845	$ (248)	2,914	1,893,053
Balance (in shares) at Jun. 30, 2017		96,333,000					12,000
Balance at Dec. 31, 2017	1,912,081	$ 960	1,526,369	(394)	384,545	848	$ (247)	2,726	1,914,807
Balance (in shares) at Dec. 31, 2017		95,982,000					12,000
Increase (Decrease) in Stockholders' Equity
Net income	57,521				57,521			1,550	59,071
Other comprehensive income	(8,851)			(8,851)					(8,851)
Stock-based compensation expense	4,549		4,549						4,549
Common stock issued to board members	248		248						248
Common stock issued to board members (in shares)		10,000
Issuance of common stock related to share-based awards, net	(1,729)	$ 3	(1,732)						(1,729)
Issuance of common stock related to share-based awards, net (in shares)		281,000
Repurchase of common stock	(38,877)	$ (17)	(27,329)		(11,531)				$ (38,877)
Repurchase of common stock (in shares)		(1,702,000)							(1,702,696)
Dividends on common stock	(13,453)				(13,453)				$ (13,453)
Deferred compensation plan	4					9	$ (5)		4
Deferred compensation plan (in shares)							(1,000)
Adoption of accounting standards (Note 2)				(2,601)	2,601
Net cash distributed from noncontrolling interest								644	644
Balance at Jun. 30, 2018	$ 1,911,493	$ 946	$ 1,502,105	$ (11,846)	$ 419,683	$ 857	$ (252)	$ 4,920	$ 1,916,413
Balance (in shares) at Jun. 30, 2018		94,571,000					11,000

CONSOLIDATED STATEMENTS OF STO8

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Cash dividends declared per common share	$ 0.07	$ 0.06	$ 0.14	$ 0.12

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities
Net income	$ 59,071	$ 89,117
Adjustments to reconcile net income to net cash used in operating activities:
Provision (recovery) for loan losses	(1,467)	7,558
Depreciation, amortization and accretion, net	3,412	(14,436)
Net realized gains on securities		(14)
Net change in fair value of equity securities	512
Deferred income taxes	734	2,615
Other, net	4,926	5,264
Net change in securities purchased under agreements to resell	(42,635)	(35,758)
Net change in assets segregated for regulatory purposes	58,161	13,428
Net change in trading securities	96,488	(205,951)
Net change in broker-dealer and clearing organization receivables	(172,846)	(45,566)
Net change in FDIC indemnification asset		22,824
Net change in other assets	2,897	(48,794)
Net change in broker-dealer and clearing organization payables	52,574	75,004
Net change in other liabilities	(90,078)	(132,731)
Net change in securities sold, not yet purchased	18,760	(4,020)
Proceeds from sale of mortgage servicing rights asset	9,303	17,499
Net gains from sales of loans	(238,245)	(277,838)
Loans originated for sale	(7,308,972)	(7,151,419)
Proceeds from loans sold	7,286,188	7,221,859
Net cash used in operating activities	(261,217)	(461,359)
Investing Activities
Proceeds from maturities and principal reductions of securities held to maturity	24,047	27,975
Proceeds from sales, maturities and principal reductions of securities available for sale	90,950	197,327
Proceeds from sales, maturities and principal reductions of equity securities	3
Purchases of securities held to maturity	(21,634)	(36,299)
Purchases of securities available for sale	(170,328)	(361,530)
Purchases of equity securities	(492)
Net change in loans	(49,003)	(195,832)
Purchases of premises and equipment and other assets	(12,252)	(13,771)
Proceeds from sales of premises and equipment and other real estate owned	8,172	18,071
Net cash received from Federal Home Loan Bank and Federal Reserve Bank stock	(16,626)	8,165
Net cash used in investing activities	(147,163)	(355,894)
Financing Activities
Net change in deposits	(94,730)	483,993
Net change in short-term borrowings	404,311	97,780
Proceeds from notes payable	267,194	173,052
Payments on notes payable	(248,167)	(190,631)
Payments to repurchase common stock	(38,877)	(16,009)
Dividends paid on common stock	(13,453)	(11,603)
Net cash received from (distributed to) noncontrolling interest	644	(1,304)
Taxes paid on employee stock awards netting activity	(1,726)	(2,131)
Other, net	(363)	(332)
Net cash provided by financing activities	274,833	532,815
Net change in cash and cash equivalents	(133,547)	(284,438)
Cash and cash equivalents, beginning of period	487,382	690,764
Cash and cash equivalents, end of period	353,835	406,326
Supplemental Disclosures of Cash Flow Information
Cash paid for interest	65,349	36,299
Cash paid for income taxes, net of refunds	966	26,703
Supplemental Schedule of Non-Cash Activities
Conversion of loans to other real estate owned	4,846	5,644
Additions to mortgage servicing rights	$ 9,729	$ 2,490

Summary of Significant Accounti

Summary of Significant Accounting and Reporting Policies	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting and Reporting Policies
Summary of Significant Accounting and Reporting Policies	1. Summary of Significant Accounting and Reporting Policies Nature of Operations Hilltop Holdings Inc. (“Hilltop” and, collectively with its subsidiaries, the “Company”) is a financial holding company registered under the Bank Holding Company Act of 1956. The Company’s primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank (the “Bank”). In addition, the Company provides an array of financial products and services through its broker-dealer, mortgage origination and insurance subsidiaries. The Company, headquartered in Dallas, Texas, provides its products and services through three primary business units, PlainsCapital Corporation (“PCC”), Hilltop Securities Holdings LLC (“Securities Holdings”) and National Lloyds Corporation (“NLC”). PCC is a financial holding company that provides, through its subsidiaries, traditional banking, wealth and investment management and treasury management services primarily in Texas and residential mortgage lending throughout the United States. Securities Holdings is a holding company that provides, through its subsidiaries, investment banking and other related financial services, including municipal advisory, sales, trading and underwriting of taxable and tax-exempt fixed income securities, equity trading, clearing, securities lending, structured finance and retail brokerage services throughout the United States. NLC is a property and casualty insurance holding company that provides, through its subsidiaries, fire and homeowners insurance to low value dwellings and manufactured homes primarily in Texas and other areas of the southern United States. On February 13, 2018, the Company entered into a definitive agreement to acquire privately-held, Houston-based The Bank of River Oaks (“BORO”) in an all-cash transaction. Under the terms of the definitive agreement, the Company has agreed to pay cash in the aggregate amount of $85 million to the shareholders and option holders of BORO. As of December 31, 2017, BORO had total assets, gross loans and deposits of $454.4 million, $343.6 million and $406.1 million, respectively. The acquisition was approved by BORO shareholders in May 2018 and was subsequently approved by regulators. The transaction is expected to close on or about August 1, 2018. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), and in conformity with the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K”). Results for interim periods are not necessarily indicative of results to be expected for a full year or any future period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates regarding the allowance for loan losses, the fair values of financial instruments, the amounts receivable from the Federal Deposit Insurance Corporation (the “FDIC”) under loss-share agreements (the “FDIC Indemnification Asset”), reserves for losses and loss adjustment expenses (“LAE”), the mortgage loan indemnification liability, and the potential impairment of assets are particularly subject to change. The Company has applied its critical accounting policies and estimation methods consistently in all periods presented in these consolidated financial statements. Hilltop owns 100% of the outstanding stock of PCC. PCC owns 100% of the outstanding stock of the Bank and 100% of the membership interest in Hilltop Opportunity Partners LLC, formerly known as PlainsCapital Equity, LLC, a merchant bank utilized to facilitate investments in companies engaged in non-financial activities. The Bank owns 100% of the outstanding stock of PrimeLending, a PlainsCapital Company (“PrimeLending”). PrimeLending owns a 100% membership interest in PrimeLending Ventures Management, LLC (“Ventures Management”), which holds an ownership interest in and is the managing member of certain affiliated business arrangements (“ABAs”). PCC also owns 100% of the outstanding common securities of PCC Statutory Trusts I, II, III and IV (the “Trusts”), which are not included in the consolidated financial statements under the requirements of the Variable Interest Entities Subsections of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) because the primary beneficiaries of the Trusts are not within the consolidated group. Hilltop has a 100% membership interest in Securities Holdings, which operates through its wholly owned subsidiaries, Hilltop Securities Inc. (“Hilltop Securities”), Hilltop Securities Independent Network Inc. (“HTS Independent Network”) (collectively, the “Hilltop Broker-Dealers”) and First Southwest Asset Management, LLC. Hilltop Securities is a broker-dealer registered with the SEC and Financial Industry Regulatory Authority (“FINRA”) and a member of the New York Stock Exchange (“NYSE”), HTS Independent Network is an introducing broker-dealer that is also registered with the SEC and FINRA, and First Southwest Asset Management, LLC is a registered investment adviser under the Investment Advisers Act of 1940. Hilltop also owns 100% of NLC, which operates through its wholly owned subsidiaries, National Lloyds Insurance Company (“NLIC”) and American Summit Insurance Company (“ASIC”). The consolidated financial statements include the accounts of the above-named entities. Intercompany transactions and balances have been eliminated. Noncontrolling interests have been recorded for minority ownership in entities that are not wholly owned and are presented in compliance with the provisions of Noncontrolling Interest in Subsidiary Subsections of the ASC. Certain reclassifications have been made to the prior period consolidated financial statements to conform with the current period presentation, including reclassifications due to the adoption of new accounting pronouncements. In preparing these consolidated financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all stockholders and other financial statement users, or filed with the SEC. Significant accounting policies are detailed in Note 1 to the consolidated financial statements included in the Company’s 2017 Form 10-K. The Company has updated its accounting policies related to securities as a result of the adoption of Accounting Standards Update (“ASU”) 2016-01 as presented below. Securities Management classifies securities at the time of purchase and reassesses such designation at each balance sheet date. Securities held for resale to facilitate principal transactions with customers are classified as trading, and are carried at fair value, with changes in fair value reflected in the consolidated statements of operations. Hilltop reports interest income on trading securities as interest income on securities and other changes in fair value as other noninterest income. Debt securities held but not intended to be held to maturity or on a long-term basis are classified as available for sale. Securities included in this category are those that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk, and other factors related to interest rate and resultant prepayment risk changes. Debt securities available for sale are carried at fair value. Unrealized holding gains and losses on debt securities available for sale, net of taxes, are reported in other comprehensive income (loss) until realized. Premiums and discounts are recognized in interest income using the effective interest method and consider any optionality that may be embedded in the security. Equity securities are carried at fair value, with changes in fair value reflected in the consolidated statements of operations. Equity securities that do not have readily determinable fair values are initially recorded at cost and are remeasured when there is (i) an observable transaction involving the same investment, (ii) an observable transaction involving a similar investment from the same issuer or (iii) an impairment. These remeasurements are reflected in the consolidated statements of operations. Purchases and sales (and related gain or loss) of securities are recorded on the trade date, based on specific identification. Declines in the fair value of available-for-sale debt securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the other-than-temporary impairment (“OTTI”) is related to credit losses. The amount of the OTTI related to other factors is recognized in other comprehensive income (loss). In estimating OTTI, management considers in developing its best estimate of cash flows, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the historic and implied volatility of the security, (iv) failure of the issuer to make scheduled interest payments and (v) changes to the rating of the security by a rating agency.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
	Jun. 30, 2018
Recently Issued Accounting Standards
Recently Issued Accounting Standards	2. Recently Issued Accounting Standards Adoption of New Accounting Standards In February 2018, FASB issued ASU 2018-02 to help organizations address certain stranded income tax effects in accumulated other comprehensive income (“AOCI”) resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”). The amendment provides an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the changes in the U.S. federal corporate income tax rate in the Tax Legislation (or portion thereof) is recorded. The amendment also includes disclosure requirements regarding the issuer’s accounting policy for releasing income tax effects from AOCI. The amendment is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. As permitted within the amendment, the Company elected to early adopt and apply the provisions of this amendment as of January 1, 2018. The adoption of the amendment resulted in a reclassification of $0.1 million from AOCI to retained earnings, representing an increase to retained earnings. This reclassification is included within the adoption of accounting standards line item in the consolidated statements of stockholders’ equity. In May 2017, FASB issued ASU 2017-09 which provides clarity and reduces both diversity in practice and cost and complexity associated with changes to the terms or conditions of a share-based payment award and, specifically, which changes require an entity to apply modification accounting. The amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted the amendments as of January 1, 2018, which did not have a significant effect on the Company’s consolidated financial statements. In January 2017, FASB issued ASU 2017-01 which provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendment is effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2017, using the prospective method. The Company adopted the amendment as of January 1, 2018 and will prospectively apply its provisions. In November 2016, FASB issued ASU 2016-18 which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We have adopted the requirements of the new standard as of January 1, 2018. The adoption of this ASU had no impact on our consolidated statements of cash flows. In October 2016, FASB issued ASU 2016-16 which addresses improvement in accounting for income tax consequences of intra-equity transfers of assets other than inventory. The amendment requires that an entity recognize the income tax consequences of the intra-equity transfer of an asset other than inventory when the transfer occurs. The amendment was effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2017, using the modified retrospective transition method. The Company adopted the amendment as of January 1, 2018, which did not have a significant effect on the Company’s consolidated financial statements. In August 2016, FASB issued ASU 2016-15 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows and to eliminate the diversity in practice related to such classifications. The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2017 using a retrospective transition method. The Company adopted the amendments as of January 1, 2018, which did not have a significant effect on the Company’s consolidated financial statements. In January 2016, FASB issued ASU 2016-01 related to financial instruments and subsequently issued technical corrections to the amendment in ASU 2018-03. The amendments require that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The amendments also impact financial liabilities under the Fair Value Option and the presentation and disclosure requirements for financial instruments and modify the required process used to evaluate deferred tax assets on available for sale securities. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted the amendments as of January 1, 2018, which resulted in $21.2 million of securities being reclassified from available for sale to equity within the consolidated balance sheets consistent with the provisions of the amendments, while certain other equity investments of $42.2 million are included in other assets within the consolidated balance sheets at June 30, 2018. The adoption of the amendments also resulted in $2.5 million being reclassified from accumulated other comprehensive income to retained earnings, representing an increase to retained earnings as of January 1, 2018. This reclassification is included within the adoption of accounting standards line item in the consolidated statement of stockholders’ equity. All subsequent changes in fair value related to these equity investments will be recognized in net income. Additionally, the enhanced disclosures required by the amendments are included within the notes to the consolidated financial statements, including the disclosure of the fair value of the loan portfolio using an exit price method instead of the prior discounted cash flow method. These disclosure changes did not have a significant effect on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 by one year, to clarify the principles for recognizing revenue from contracts with customers. The FASB has subsequently issued several amendments to the standard, including clarification of principal versus agent considerations, narrow scope improvements and other technical corrections, all of which are codified in ASC 606, Revenue from Contracts with Customers . The amendments outline a single comprehensive model for entities to depict the transfer of goods or services to customers in amounts that reflect the payment to which a company expects to be entitled in exchange for those goods or services. The amendments also require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2017 and have been adopted as of January 1, 2018 using the modified, cumulative-effect approach wherein the guidance is applied only to existing contracts as of the date of initial application and to new contracts entered into thereafter. Revenue from the Company’s mortgage origination and insurance segments are not in the scope of the new guidance, while certain revenue from contracts with customers within the broker-dealer and banking segments are subject to the new guidance. There were no material changes to the revenue recognition policies of the banking segment upon adoption. The revenue recognition policies within the Company’s broker-dealer segment were affected upon adoption of ASC 606. Specifically, the new guidance required changes to the principal versus agent conclusion for certain advisory and underwriting revenues and expenses which, as of January 1, 2018, are recorded on a gross basis while legacy guidance required these revenues to be recognized net of the related expenses. Conversely, certain contract costs related to clearing and retail operations are now netted against the revenues while the legacy guidance required these revenues and expenses to be recognized on a gross basis. These changes did not have a material effect on the Company’s consolidated financial statements during the three and six months ended June 30, 2018. As the measurement and timing of revenue recognition was not affected for any of the Company’s revenue streams, the implementation of the new guidance had no impact on opening retained earnings as of January 1, 2018. The Company’s broker-dealer segment has six primary lines of business: (i) public finance, (ii) capital markets, (iii) retail, (iv) structured finance, (v) clearing services and (vi) securities lending. Revenue from contracts with customers subject to the guidance in ASC 606 from the broker-dealer segment is included within the securities commissions and fees and investment and securities advisory fees and commissions line items within the consolidated statements of operations. Commissions and fees revenue is generally recognized at a point in time upon the delivery of contracted services based on a predefined contractual amount or on the trade date for trade execution services based on prevailing market prices and internal and regulatory guidelines. The Company’s banking segment has three primary lines of business: (i) business banking, (ii) personal banking and (iii) wealth and investment management. Revenue from contracts with customers subject to the guidance in ASC 606 from the banking segment (certain retail and trust fees) is included within the other noninterest income line item within the consolidated statements of operations. Retail and trust fees are generally recognized at the time the related transaction occurs or when services are completed. Fees are based on the dollar amount of the transaction or are otherwise predefined in contracts associated with each customer account depending on the type of account and services provided. Accounting Standards Issued But Not Yet Adopted In August 2017, FASB issued ASU 2017-12 which provides targeted improvements to accounting for hedging activities. The purpose of the amendment is to better align a company’s risk management activities with its financial reporting for hedging relationships, to simplify the hedge accounting requirements and to improve the disclosures of hedging arrangements. The amendment is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted, and all transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The Company has not historically applied hedge accounting to its derivative transactions. However, the Company is currently evaluating the provisions of the amendment and the impact, if any, on its future consolidated financial statements. In June 2016, FASB issued ASU 2016-13 which sets forth a “current expected credit loss” (CECL) model which requires entities to measure all credit losses expected over the life of an exposure (or pool of exposures) for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The new standard, which is codified in ASC 326, Financial Instruments – Credit Losses , replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. The new standard also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The new standard is effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2019 with a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. The Company does not intend to adopt the provisions of the new standard early. The Company’s cross-functional team has begun the implementation of new credit forecasting models and a credit scoring system that will be utilized to estimate the likelihood of default and loss severity at the individual loan level as a part of its credit loss estimation methodology in accordance with the new standard. In addition, the Company continues to identify and assess key interpretive policy issues, as well as design and build new or modified policies and procedures that will be used to calculate its credit loss reserves. However, the magnitude of the change in allowance for loan losses upon adoption will depend on, among other things, the portfolio composition and quality at the adoption date, as well as economic conditions and forecasts at that time. In February 2016, FASB issued ASU 2016-02 related to leases and subsequently issued technical corrections in ASU 2018-10. The new standard is intended to increase transparency and comparability among organizations and require lessees to record a right-to-use asset and liability representing the obligation to make lease payments for long-term leases. Accounting by lessors will remain largely unchanged. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Adoption will require a modified retrospective transition where the lessees and lessors are required to recognize and measure leases at the date of adoption which is January 1, 2019 for calendar year-end entities. The Company’s implementation efforts are ongoing, including the installation of an enhanced technology solution, which will aid in determining the magnitude of the increases in assets and liabilities and their impact on the consolidated financial statements. The Company expects to recognize lease liabilities and corresponding right-of-use assets (at their present value) related to predominantly all of the future minimum lease payments required under operating leases as disclosed in Note 18 to the consolidated financial statements in the 2017 Form 10-K. Upon implementation, the balance sheet effects of the new lease accounting standard will also impact regulatory capital ratios, performance ratios, and other measures which are dependent upon asset or liability balances. However, the population of contracts subject to balance sheet recognition, their initial measurement, and the expected impact to the aforementioned balances and measures remains under evaluation.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Measurements
Fair Value Measurements	3. Fair Value Measurements Fair Value Measurements and Disclosures The Company determines fair values in compliance with The Fair Value Measurements and Disclosures Topic of the ASC (the “Fair Value Topic”). The Fair Value Topic defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. The Fair Value Topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Fair Value Topic assumes that transactions upon which fair value measurements are based occur in the principal market for the asset or liability being measured. Further, fair value measurements made under the Fair Value Topic exclude transaction costs and are not the result of forced transactions. The Fair Value Topic includes a fair value hierarchy that classifies fair value measurements based upon the inputs used in valuing the assets or liabilities that are the subject of fair value measurements. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs, as indicated below. · Level 1 Inputs : Unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. · Level 2 Inputs : Observable inputs other than Level 1 prices. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, prepayment speeds, default rates, credit risks and loss severities), and inputs that are derived from or corroborated by market data, among others. · Level 3 Inputs : Unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Level 3 inputs include pricing models and discounted cash flow techniques, among others . Fair Value Option The Company has elected to measure substantially all of PrimeLending’s mortgage loans held for sale and retained mortgage servicing rights (“MSR”) asset at fair value, under the provisions of the Fair Value Option. The Company elected to apply the provisions of the Fair Value Option to these items so that it would have the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. At June 30, 2018 and December 31, 2017, the aggregate fair value of PrimeLending’s mortgage loans held for sale accounted for under the Fair Value Option was $1.81 billion and $1.58 billion, respectively, and the unpaid principal balance of those loans was $1.75 billion and $1.53 billion, respectively. The interest component of fair value is reported as interest income on loans in the accompanying consolidated statements of operations. The Company holds a number of financial instruments that are measured at fair value on a recurring basis, either by the application of the Fair Value Option or other authoritative pronouncements. The fair values of those instruments are determined primarily using Level 2 inputs. Those inputs include quotes from mortgage loan investors and derivatives dealers and data from independent pricing services. The fair value of loans held for sale is determined using an exit price method. The following tables present information regarding financial assets and liabilities measured at fair value on a recurring basis (in thousands). Level 1 Level 2 Level 3 Total June 30, 2018 Inputs Inputs Inputs Fair Value Trading securities $ 1,051 $ 633,146 $ — $ 634,197 Available for sale securities — 811,218 — 811,218 Equity securities 21,218 — — 21,218 Loans held for sale — Derivative assets — 56,050 — 56,050 MSR asset — — 57,373 Securities sold, not yet purchased 67,867 — 251,581 Derivative liabilities — 30,179 — 30,179 Level 1 Level 2 Level 3 Total December 31, 2017 Inputs Inputs Inputs Fair Value Trading securities $ 3,329 $ 727,356 $ — $ 730,685 Available for sale securities — 744,319 — 744,319 Equity securities 21,241 — — 21,241 Loans held for sale — 1,544,631 36,972 1,581,603 Derivative assets — 34,150 — 34,150 MSR asset — — 54,714 54,714 Securities sold, not yet purchased 156,586 76,235 — 232,821 Derivative liabilities — 13,197 — 13,197 The following tables include a rollforward for those financial instruments measured at fair value using Level 3 inputs (in thousands). Total Gains or Losses (Realized or Unrealized) Balance at Included in Other Beginning of Purchases/ Sales/ Included in Comprehensive Balance at Period Additions Reductions Net Income Income (Loss) End of Period Three months ended June 30, 2018 Loans held for sale $ 43,483 $ 8,071 $ (8,538) $ (2,235) $ — $ 40,781 MSR asset 63,957 3,068 (9,303) (349) — 57,373 Total $ 107,440 $ 11,139 $ (17,841) $ (2,584) $ — $ 98,154 Six months ended June 30, 2018 Loans held for sale $ 36,972 $ 20,550 $ (12,513) $ (4,228) $ — $ 40,781 MSR asset 54,714 9,729 (9,303) 2,233 — 57,373 Total $ 91,686 $ 30,279 $ (21,816) $ (1,995) $ — $ 98,154 Three months ended June 30, 2017 Loans held for sale 30,214 8,675 (6,722) (2,130) — 30,037 MSR asset 45,573 1,266 — (3,259) — 43,580 Total $ 75,787 $ 9,941 $ (6,722) $ (5,389) $ — $ 73,617 Six months ended June 30, 2017 Loans held for sale 35,801 16,503 (17,423) (4,844) — 30,037 MSR asset 61,968 2,490 (17,499) (3,379) — 43,580 Total $ 97,769 $ 18,993 $ (34,922) $ (8,223) $ — $ 73,617 All net realized and unrealized gains (losses) in the tables above are reflected in the accompanying consolidated financial statements. The unrealized gains (losses) relate to financial instruments still held at June 30, 2018. For Level 3 financial instruments measured at fair value on a recurring basis at June 30, 2018, the significant unobservable inputs used in the fair value measurements were as follows. Range Financial instrument Valuation Technique Unobservable Inputs (Weighted-Average) Loans held for sale Discounted cash flows / Market comparable Projected price 94 - 97 % ( 94 %) MSR asset Discounted cash flows Constant prepayment rate 9.27 % Discount rate 11.09 % The fair value of certain loans held for sale that cannot be sold through normal sale channels or are non-performing is measured using Level 3 inputs. The fair value of such loans is generally based upon estimates of expected cash flows using unobservable inputs, including listing prices of comparable assets, uncorroborated expert opinions, and/or management’s knowledge of underlying collateral. The MSR asset, which is included in other assets within the Company’s consolidated balance sheets, is reported at fair value using Level 3 inputs. The MSR asset is valued by projecting net servicing cash flows, which are then discounted to estimate the fair value. The fair value of the MSR asset is impacted by a variety of factors. Prepayment rates and discount rates, the most significant unobservable inputs, are discussed further in Note 7 to the consolidated financial statements. The Company had no transfers between Levels 1 and 2 during the periods presented. The following table presents those changes in fair value of instruments recognized in the consolidated statements of operations that are accounted for under the Fair Value Option (in thousands). Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ 22,604 $ — $ 22,604 $ 22,231 $ — $ 22,231 MSR asset (349) — (349) (3,259) — (3,259) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ 7,724 $ — $ 7,724 $ 31,093 $ — $ 31,093 MSR asset 2,233 — 2,233 (3,379) — (3,379) The Company also determines the fair value of certain assets and liabilities on a non-recurring basis. In addition, facts and circumstances may dictate a fair value measurement when there is evidence of impairment. Assets and liabilities measured on a non-recurring basis include the items discussed below. Impaired Loans — The Company reports individually impaired loans based on the underlying fair value of the collateral through specific allowances within the allowance for loan losses. Purchased credit impaired (“PCI”) loans with a fair value of $172.9 million, $822.8 million and $73.5 million were acquired by the Company upon completion of the merger with PCC (the “PlainsCapital Merger”), the FDIC-assisted transaction whereby the Bank acquired certain assets and assumed certain liabilities of Edinburg, Texas-based First National Bank (“FNB”) on September 13, 2013 (the “FNB Transaction”), and the acquisition of SWS Group, Inc. (“SWS”) in a stock and cash transaction (the "SWS Merger"), whereby SWS’s banking subsidiary, Southwest Securities, FSB, was merged into the Bank, respectively (collectively, the “Bank Transactions”). Substantially all PCI loans acquired in the FNB Transaction are covered by FDIC loss-share agreements. The fair value of PCI loans was determined using Level 3 inputs, including estimates of expected cash flows that incorporated significant unobservable inputs regarding default rates, loss severity rates assuming default, prepayment speeds on acquired loans accounted for in pools (“Pooled Loans”), and estimated collateral values. At June 30, 2018, estimates for these significant unobservable inputs were as follows. PCI Loans PlainsCapital FNB SWS Merger Transaction Merger Weighted average default rate % % % Weighted average loss severity rate % % % Weighted average prepayment speed % % % At June 30, 2018, the resulting weighted average expected loss on PCI loans associated with the PlainsCapital Merger, FNB Transaction and SWS Merger was 54%, 6% and 20%, respectively. The Company obtains updated appraisals of the fair value of collateral securing impaired collateral-dependent loans at least annually, in accordance with regulatory guidelines. The Company also reviews the fair value of such collateral on a quarterly basis. If the quarterly review indicates that the fair value of the collateral may have deteriorated, the Company orders an updated appraisal of the fair value of the collateral. Because the Company obtains updated appraisals when evidence of a decline in the fair value of collateral exists, it typically does not adjust appraised values. Other Real Estate Owned — The Company determines fair value primarily using independent appraisals of other real estate owned (“OREO”) properties. The resulting fair value measurements are classified as Level 2 inputs. In the FNB Transaction, the Bank acquired OREO of $135.2 million, all of which is covered by FDIC loss-share agreements. At June 30, 2018 and December 31, 2017, the estimated fair value of covered OREO was $34.9 million and $36.7 million, respectively, and the underlying fair value measurements utilized Level 2 inputs. The fair value of non-covered OREO at June 30, 2018 and December 31, 2017 was $2.9 million and $3.9 million, respectively, and is included in other assets within the consolidated balance sheets. During the reported periods, all fair value measurements for non-covered OREO subsequent to initial recognition utilized Level 2 inputs. The following table presents information regarding certain assets and liabilities measured at fair value on a non-recurring basis for which a change in fair value has been recorded during reporting periods subsequent to initial recognition (in thousands). Total Gains (Losses) for the Total Gains (Losses) for the Level 1 Level 2 Level 3 Total Three Months Ended June 30, Six Months Ended June 30, June 30, 2018 Inputs Inputs Inputs Fair Value 2018 2017 2018 2017 Non-covered impaired loans $ — $ — $ 19,465 $ 19,465 $ (1,446) $ (274) $ (1,471) $ (470) Covered impaired loans — — 72,953 72,953 844 (611) 746 (977) Non-covered other real estate owned — 225 — 225 (25) (108) (76) (123) Covered other real estate owned — 15,996 — 15,996 (669) (943) (1,724) (2,135) The Fair Value of Financial Instruments Subsection of the ASC requires disclosure of the fair value of financial assets and liabilities, including the financial assets and liabilities previously discussed. In accordance with ASU 2016-01, effective January 1, 2018, the fair values of non-covered and covered loans are measured using an exit price method. There have been no other changes to the methods for determining estimated fair value for financial assets and liabilities as described in detail in Note 3 to the consolidated financial statements included in the Company’s 2017 Form 10-K. The following tables present the carrying values and estimated fair values of financial instruments not measured at fair value on either a recurring or non-recurring basis (in thousands). Estimated Fair Value Carrying Level 1 Level 2 Level 3 June 30, 2018 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 353,835 $ 353,835 $ — $ — $ 353,835 Securities purchased under agreements to resell 229,172 — 229,172 — 229,172 Assets segregated for regulatory purposes 128,417 128,417 — — 128,417 Held to maturity securities 353,192 — 339,702 — 339,702 Loans held for sale 139,448 — 139,448 — 139,448 Non-covered loans, net 6,324,664 — 600,162 5,812,057 6,412,219 Covered loans, net 158,996 — — 234,533 234,533 Broker-dealer and clearing organization receivables 1,614,951 — 1,614,951 — 1,614,951 FDIC indemnification asset 23,525 — — 17,787 17,787 Other assets 66,245 — 65,951 294 66,245 Financial liabilities: Deposits 7,813,622 — 7,802,515 — 7,802,515 Broker-dealer and clearing organization payables 1,409,904 — 1,409,904 — 1,409,904 Short-term borrowings 1,610,735 — 1,610,735 — 1,610,735 Debt 294,748 — 292,494 — 292,494 Other liabilities 4,583 — 4,583 — 4,583 Estimated Fair Value Carrying Level 1 Level 2 Level 3 December 31, 2017 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 487,382 $ 487,382 $ — $ — $ 487,382 Securities purchased under agreements to resell 186,537 — 186,537 — 186,537 Assets segregated for regulatory purposes 186,578 186,578 — — 186,578 Held to maturity securities 355,849 — 349,939 — 349,939 Loans held for sale 133,754 — 133,754 — 133,754 Non-covered loans, net 6,212,712 — 577,889 5,828,868 6,406,757 Covered loans, net 179,400 — — 269,386 269,386 Broker-dealer and clearing organization receivables 1,464,378 — 1,464,378 — 1,464,378 FDIC indemnification asset 29,340 — — 20,122 20,122 Other assets 64,862 — 59,053 5,809 64,862 Financial liabilities: Deposits 7,978,119 — 7,973,101 — 7,973,101 Broker-dealer and clearing organization payables 1,287,563 — 1,287,563 — 1,287,563 Short-term borrowings 1,206,424 — 1,206,424 — 1,206,424 Debt 275,821 — 289,719 — 289,719 Other liabilities 4,795 — 4,795 — 4,795 The Company held equity investments other than securities of $42.2 million and $38.7 million at June 30, 2018 and December 31, 2017, respectively, which are included within other assets in the consolidated balance sheets. Of the $42.2 million held at June 30, 2018, $26.2 million do not have readily determinable fair values and are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The following table presents the adjustments to the carrying value of these investments (in thousands). Three months ended, Six months ended, June 30, 2018 June 30, 2018 Balance, beginning of period $ 21,906 $ 22,946 Impairments and downward adjustments (2) (1,314) Additional investments and upward adjustments 4,247 4,519 Balance, end of period $ 26,151 $ 26,151

Securities

Securities	6 Months Ended
	Jun. 30, 2018
Securities
Securities	4. Securities The fair value of trading securities is summarized as follows (in thousands). June 30, December 31, 2018 2017 U.S. Treasury securities $ 1,033 $ — U.S. government agencies: Bonds 57,996 52,078 Residential mortgage-backed securities 338,892 372,817 Commercial mortgage-backed securities 8,664 6,125 Collateralized mortgage obligations 1 5,122 Corporate debt securities 80,361 96,182 States and political subdivisions 112,646 170,413 Unit investment trusts 27,480 22,612 Private-label securitized product 3,684 1,631 Other 3,440 3,705 Totals $ 634,197 $ 730,685 The Hilltop Broker-Dealers enter into transactions that represent commitments to purchase and deliver securities at prevailing future market prices to facilitate customer transactions and satisfy such commitments. Accordingly, the Hilltop Broker-Dealers’ ultimate obligations may exceed the amount recognized in the financial statements. These securities, which are carried at fair value and reported as securities sold, not yet purchased in the consolidated balance sheets, had a value of $251.6 million and $232.8 million at June 30, 2018 and December 31, 2017, respectively. The amortized cost and fair value of available for sale and held to maturity securities are summarized as follows (in thousands). Available for Sale Amortized Unrealized Unrealized June 30, 2018 Cost Gains Losses Fair Value U.S. Treasury securities $ 34,671 $ — $ (123) $ 34,548 U.S. government agencies: Bonds 70,258 417 (736) 69,939 Residential mortgage-backed securities 311,305 232 (8,749) 302,788 Commercial mortgage-backed securities 11,817 11 (250) 11,578 Collateralized mortgage obligations 283,370 266 (6,594) 277,042 Corporate debt securities 57,162 331 (505) 56,988 States and political subdivisions 57,932 657 (254) 58,335 Totals $ 826,515 $ 1,914 $ (17,211) $ 811,218 Available for Sale Amortized Unrealized Unrealized December 31, 2017 Cost Gains Losses Fair Value U.S. Treasury securities $ 24,665 $ 107 $ (103) $ 24,669 U.S. government agencies: Bonds 96,177 829 (366) 96,640 Residential mortgage-backed securities 246,707 538 (3,740) 243,505 Commercial mortgage-backed securities 11,966 105 (48) 12,023 Collateralized mortgage obligations 237,848 106 (4,142) 233,812 Corporate debt securities 66,868 1,819 (25) 68,662 States and political subdivisions 64,024 1,099 (115) 65,008 Totals $ 748,255 $ 4,603 $ (8,539) $ 744,319 Held to Maturity Amortized Unrealized Unrealized June 30, 2018 Cost Gains Losses Fair Value U.S. government agencies: Bonds $ 39,016 $ — $ (2,007) $ 37,009 Residential mortgage-backed securities 24,051 — (483) 23,568 Commercial mortgage-backed securities 79,776 — (2,509) 77,267 Collateralized mortgage obligations 157,000 — (6,646) 150,354 States and political subdivisions 53,349 69 (1,914) 51,504 Totals $ 353,192 $ 69 $ (13,559) $ 339,702 Held to Maturity Amortized Unrealized Unrealized December 31, 2017 Cost Gains Losses Fair Value U.S. government agencies: Bonds $ 39,015 $ — $ (1,188) $ 37,827 Residential mortgage-backed securities 16,130 44 — 16,174 Commercial mortgage-backed securities 71,373 241 (735) 70,879 Collateralized mortgage obligations 173,928 19 (3,969) 169,978 States and political subdivisions 55,403 437 (759) 55,081 Totals $ 355,849 $ 741 $ (6,651) $ 349,939 Additionally, the Company had unrealized net gains of $1.0 million and $1.6 million from equity securities with fair values of $21.2 million held at both June 30, 2018 and December 31, 2017, respectively. The Company recognized net gains of $0.1 million during the three months ended June 30, 2018, and net losses of $0.5 million during the six months ended June 30, 2018, due to changes in the fair value of equity securities still held at the balance sheet date. During the three and six months ended June 30, 2018, net gains recognized from equity securities sold were nominal. Information regarding available for sale, held to maturity and equity securities that were in an unrealized loss position is shown in the following tables (dollars in thousands). June 30, 2018 December 31, 2017 Number of Unrealized Number of Unrealized Securities Fair Value Losses Securities Fair Value Losses Available for Sale U.S. treasury securities: Unrealized loss for less than twelve months 8 $ 31,388 $ 103 6 $ 15,449 $ 69 Unrealized loss for twelve months or longer 3 3,159 20 1 4,150 34 11 34,547 123 7 19,599 103 U.S. government agencies: Bonds: Unrealized loss for less than twelve months 7 57,133 736 10 83,476 366 Unrealized loss for twelve months or longer — — — — — — 7 57,133 736 10 83,476 366 Residential mortgage-backed securities: Unrealized loss for less than twelve months 24 190,497 4,443 15 121,968 820 Unrealized loss for twelve months or longer 10 76,637 4,306 11 93,358 2,920 34 267,134 8,749 26 215,326 3,740 Commercial mortgage-backed securities: Unrealized loss for less than twelve months 2 8,654 250 1 5,048 48 Unrealized loss for twelve months or longer — — — — — — 2 8,654 250 1 5,048 48 Collateralized mortgage obligations: Unrealized loss for less than twelve months 22 111,616 2,003 16 90,886 819 Unrealized loss for twelve months or longer 19 90,124 4,591 17 80,492 3,323 41 201,740 6,594 33 171,378 4,142 Corporate debt securities: Unrealized loss for less than twelve months 16 34,019 505 1 5,073 25 Unrealized loss for twelve months or longer — — — — — — 16 34,019 505 1 5,073 25 States and political subdivisions: Unrealized loss for less than twelve months 21 12,511 229 9 6,981 97 Unrealized loss for twelve months or longer 7 2,423 25 9 2,876 18 28 14,934 254 18 9,857 115 Total available for sale: Unrealized loss for less than twelve months 100 445,818 8,269 58 328,881 2,244 Unrealized loss for twelve months or longer 39 172,343 8,942 38 180,876 6,295 139 $ 618,161 $ 17,211 96 $ 509,757 $ 8,539 June 30, 2018 December 31, 2017 Number of Unrealized Number of Unrealized Securities Fair Value Losses Securities Fair Value Losses Held to Maturity U.S. government agencies: Bonds: Unrealized loss for less than twelve months 1 $ 5,714 $ 286 1 $ 5,950 $ 50 Unrealized loss for twelve months or longer 3 31,295 1,721 3 31,877 1,138 4 37,009 2,007 4 37,827 1,188 Residential mortgage-backed securities: Unrealized loss for less than twelve months 4 23,568 483 — — — Unrealized loss for twelve months or longer — — — — — — 4 23,568 483 — — — Commercial mortgage-backed securities: Unrealized loss for less than twelve months 15 58,293 1,737 7 39,396 271 Unrealized loss for twelve months or longer 2 12,188 773 2 12,659 464 17 70,481 2,510 9 52,055 735 Collateralized mortgage obligations: Unrealized loss for less than twelve months 11 32,718 816 10 37,064 264 Unrealized loss for twelve months or longer 14 117,636 5,829 12 128,270 3,705 25 150,354 6,645 22 165,334 3,969 States and political subdivisions: Unrealized loss for less than twelve months 58 25,086 398 22 11,079 71 Unrealized loss for twelve months or longer 46 17,749 1,516 46 18,598 688 104 42,835 1,914 68 29,677 759 Total held to maturity: Unrealized loss for less than twelve months 89 145,379 3,720 40 93,489 656 Unrealized loss for twelve months or longer 65 178,868 9,839 63 191,404 5,995 154 $ 324,247 $ 13,559 103 $ 284,893 $ 6,651 Equity Common and preferred stock: Unrealized loss for less than twelve months — — — 1 944 13 Unrealized loss for twelve months or longer — — — 1 6,800 103 — $ — $ — 2 $ 7,744 $ 116 During the three and six months ended June 30, 2018 and 2017, the Company did not record any OTTI. While some of the securities held in the Company’s investment portfolio have decreased in value since the date of acquisition, the severity of loss and the duration of the loss position are not significant enough to warrant recording any OTTI of the securities. Factors considered in the Company’s analysis include the reasons for the unrealized loss position, the severity and duration of the unrealized loss position, credit worthiness, and forecasted performance of the investee. The Company does not intend to sell, nor does the Company believe that it is likely that the Company will be required to sell, these securities before the recovery of the cost basis. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties. The amortized cost and fair value of securities, excluding trading and equity securities, at June 30, 2018 are shown by contractual maturity below (in thousands). Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value Due in one year or less $ 87,491 $ 87,501 $ 2,253 $ 2,252 Due after one year through five years 97,703 97,369 12,819 12,381 Due after five years through ten years 15,283 14,897 17,568 16,722 Due after ten years 19,546 20,043 59,725 57,158 220,023 219,810 92,365 88,513 Residential mortgage-backed securities 311,305 302,788 24,051 23,568 Collateralized mortgage obligations 283,370 277,042 157,000 150,354 Commercial mortgage-backed securities 11,817 11,578 79,776 77,267 $ 826,515 $ 811,218 $ 353,192 $ 339,702 The Company realized net gains of $6.8 million and $7.0 million from its trading portfolio during the three months ended June 30, 2018 and 2017, respectively, and $1.9 million and $12.9 million during the six months ended June 30, 2018 and 2017, respectively. In addition, the Hilltop Broker-Dealers realized net gains from structured product trading activities of $0.4 million and $10.5 million during the three months ended June 30, 2018 and 2017, respectively, and $17.4 million and $17.0 million during the six months ended June 30, 2018 and 2017, respectively. All such realized net gains and losses are recorded as a component of other noninterest income within the consolidated statements of operations. Securities with a carrying amount of $630.2 million and $738.5 million (with a fair value of $613.6 million and $730.1 million, respectively) at June 30, 2018 and December 31, 2017, respectively, were pledged to secure public and trust deposits, federal funds purchased and securities sold under agreements to repurchase, and for other purposes as required or permitted by law. Substantially all of these pledged securities were included in our available for sale and held to maturity securities portfolios at June 30, 2018 and December 31, 2017. Mortgage-backed securities and collateralized mortgage obligations consist primarily of Government National Mortgage Association (“GNMA”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) pass-through and participation certificates. GNMA securities are guaranteed by the full faith and credit of the United States, while FNMA and FHLMC securities are fully guaranteed by those respective United States government-sponsored agencies, and conditionally guaranteed by the full faith and credit of the United States. At both June 30, 2018 and December 31, 2017, NLC had investments on deposit in custody for various state insurance departments with aggregate carrying values of $9.3 million.

Non-Covered Loans and Allowance

Non-Covered Loans and Allowance for Non-Covered Loan Losses	6 Months Ended
	Jun. 30, 2018
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Non-Covered Loans and Allowance for Non-Covered Loan Losses	5. Non-Covered Loans and Allowance for Non-Covered Loan Losses Non-covered loans refer to loans not covered by the FDIC loss-share agreements. Covered loans are discussed in Note 6 to the consolidated financial statements. Non-covered loans summarized by portfolio segment are as follows (in thousands). June 30, December 31, 2018 2017 Commercial and industrial $ 1,655,431 $ 1,681,205 Real estate 3,142,496 3,011,524 Construction and land development 948,309 962,605 Consumer 38,262 40,446 Broker-dealer (1) 600,162 577,889 6,384,660 6,273,669 Allowance for non-covered loan losses (59,996) (60,957) Total non-covered loans, net of allowance $ 6,324,664 $ 6,212,712 (1) Represents margin loans to customers and correspondents associated with our broker-dealer segment operations. In connection with the Bank Transactions, the Company acquired non-covered loans both with and without evidence of credit quality deterioration since origination. The following table presents the carrying values and the outstanding balances of non-covered PCI loans (in thousands). June 30, December 31, 2018 2017 Carrying amount $ 26,665 $ 37,204 Outstanding balance 39,714 51,064 Changes in the accretable yield for non-covered PCI loans were as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 6,093 $ 11,442 $ 7,013 $ 13,116 Reclassifications from nonaccretable difference, net (1) (92) 438 550 577 Disposals of loans — (61) (98) (61) Accretion (742) (2,026) (2,206) (3,839) Balance, end of period $ 5,259 $ 9,793 $ 5,259 $ 9,793 (1) Reclassifications from nonaccretable difference are primarily due to net increases in expected cash flows in the quarterly recasts. Reclassifications to nonaccretable difference occur when accruing loans are moved to non-accrual and expected cash flows are no longer predictable and the accretable yield is eliminated. The remaining nonaccretable difference for non-covered PCI loans was $19.1 million and $19.2 million at June 30, 2018 and December 31, 2017, respectively. Impaired loans exhibit a clear indication that the borrower’s cash flow may not be sufficient to meet contractual principal and interest payments, which generally occurs when a loan is 90 days past due unless the asset is both well secured and in the process of collection. Non-covered impaired loans include non-accrual loans, troubled debt restructurings (“TDRs”), PCI loans and partially charged-off loans. The amounts shown in the following tables include loans accounted for on an individual basis, as well as acquired Pooled Loans. For Pooled Loans, the recorded investment with allowance and the related allowance consider impairment measured at the pool level. Non-covered impaired loans, segregated between those considered to be PCI loans and those without credit impairment at acquisition, are summarized by class in the following tables (in thousands). Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related June 30, 2018 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial and industrial: Secured $ 15,315 $ 3,935 $ 1,120 $ 5,055 $ 58 Unsecured — — — — — Real estate: Secured by commercial properties 24,947 8,610 8,152 16,762 969 Secured by residential properties 6,263 1,930 1,999 3,929 322 Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 1,417 271 648 919 154 Consumer 2,083 — — — — Broker-dealer — — — — — 50,025 14,746 11,919 26,665 1,503 Non-PCI Commercial and industrial: Secured 25,451 13,406 5,430 18,836 2,501 Unsecured 656 425 — 425 — Real estate: Secured by commercial properties 14,124 8,171 4,767 12,938 810 Secured by residential properties 1,241 803 — 803 — Construction and land development: Residential construction loans 15 — — — — Commercial construction loans and land development 631 — 568 568 85 Consumer 155 49 — 49 — Broker-dealer — — — — — 42,273 22,854 10,765 33,619 3,396 $ 92,298 $ 37,600 $ 22,684 $ 60,284 $ 4,899 Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related December 31, 2017 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial and industrial: Secured $ 19,752 $ 3,610 $ 2,489 $ 6,099 $ 89 Unsecured — — — — — Real estate: Secured by commercial properties 34,598 7,583 12,092 19,675 1,391 Secured by residential properties 12,600 5,307 4,558 9,865 325 Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 2,001 428 1,010 1,438 215 Consumer 2,377 12 115 127 18 Broker-dealer — — — — — 71,328 16,940 20,264 37,204 2,038 Non-PCI Commercial and industrial: Secured 23,666 15,308 2,072 17,380 365 Unsecured 761 616 — 616 — Real estate: Secured by commercial properties 15,504 10,934 3,686 14,620 932 Secured by residential properties 1,596 1,177 — 1,177 — Construction and land development: Residential construction loans 15 — — — — Commercial construction loans and land development 653 — 611 611 93 Consumer 162 56 — 56 — Broker-dealer — — — — — 42,357 28,091 6,369 34,460 1,390 $ 113,685 $ 45,031 $ 26,633 $ 71,664 $ 3,428 Average recorded investment in non-covered impaired loans is summarized by class in the following table (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Commercial and industrial: Secured $ 23,581 $ 16,950 $ 23,685 $ 15,093 Unsecured 475 748 521 821 Real estate: Secured by commercial properties 30,245 37,189 31,998 37,362 Secured by residential properties 4,973 11,461 7,887 11,630 Construction and land development: Residential construction loans — — — 14 Commercial construction loans and land development 1,673 3,170 1,768 3,580 Consumer 54 462 116 480 Broker-dealer — — — — $ 61,001 $ 69,980 $ 65,975 $ 68,980 Non-covered non-accrual loans, excluding those classified as held for sale, are summarized by class in the following table (in thousands). June 30, December 31, 2018 2017 Commercial and industrial: Secured $ 22,390 $ 20,262 Unsecured 425 616 Real estate: Secured by commercial properties 14,256 14,620 Secured by residential properties 1,217 1,614 Construction and land development: Residential construction loans — — Commercial construction loans and land development 569 611 Consumer 49 56 Broker-dealer — — $ 38,906 $ 37,779 At June 30, 2018 and December 31, 2017, non-covered non-accrual loans included non-covered PCI loans of $5.3 million and $3.3 million, respectively, for which discount accretion has been suspended because the extent and timing of cash flows from these non-covered PCI loans can no longer be reasonably estimated. In addition to the non-covered non-accrual loans in the table above, $3.1 million and $2.7 million of real estate loans secured by residential properties and classified as held for sale were in non-accrual status at June 30, 2018 and December 31, 2017, respectively. Interest income, including recoveries and cash payments, recorded on non-covered impaired loans was $0.1 million during both the three months ended June 30, 2018 and 2017, and $0.1 million and $0.4 million during the six months ended June 30, 2018 and 2017, respectively. Except as noted above, non-covered PCI loans are considered to be performing due to the application of the accretion method. The Bank classifies loan modifications as TDRs when it concludes that it has both granted a concession to a debtor and that the debtor is experiencing financial difficulties. Loan modifications are typically structured to create affordable payments for the debtor and can be achieved in a variety of ways. The Bank modifies loans by reducing interest rates and/or lengthening loan amortization schedules. The Bank may also reconfigure a single loan into two or more loans (“A/B Note”). The typical A/B Note restructure results in a “bad” loan which is charged off and a “good” loan or loans, the terms of which comply with the Bank’s customary underwriting policies. The debt charged off on the “bad” loan is not forgiven to the debtor. The Bank did not grant any TDRs during three or six months ended June 30, 2018. Information regarding TDRs granted during the three and six months ended June 30, 2017 is shown in the following tables (dollars in thousands). At June 30, 2018 and December 31, 2017, the Bank had nominal unadvanced commitments to borrowers whose loans have been restructured in TDRs. Three Months Ended June 30, 2017 Number of Balance at Balance at Loans Extension End of Period Commercial and industrial: Secured — $ — $ — Unsecured — — — Real estate: Secured by commercial properties — — — Secured by residential properties — — — Construction and land development: Residential construction loans — — — Commercial construction loans and land development 1 655 632 Consumer — — — Broker-dealer — — — 1 $ 655 $ 632 Six Months Ended June 30, 2017 Number of Balance at Balance at Loans Extension End of Period Commercial and industrial: Secured 1 $ 1,357 $ 1,279 Unsecured — — — Real estate: Secured by commercial properties 1 1,481 1,417 Secured by residential properties — — — Construction and land development: Residential construction loans — — — Commercial construction loans and land development 1 655 632 Consumer — — — Broker-dealer — — — 3 $ 3,493 $ 3,328 All of the non-covered loan modifications included in the tables above involved payment term extensions. The Bank did not grant principal reductions on any restructured non-covered loans during the three and six months ended June 30, 2018 and 2017. The following table presents information regarding TDRs granted during the twelve months preceding June 30, 2018 and 2017, respectively, for which a payment was at least 30 days past due (dollars in thousands). Twelve Months Preceding June 30, 2018 Twelve Months Preceding June 30, 2017 Number of Balance at Balance at Number of Balance at Balance at Loans Extension End of Period Loans Extension End of Period Commercial and industrial: Secured — $ — $ — — $ — $ — Unsecured — — — — — — Real estate: Secured by commercial properties 1 3,294 3,206 1 1,481 1,417 Secured by residential properties — — — — — — Construction and land development: Residential construction loans — — — — — — Commercial construction loans and land development — — — — — — Consumer — — — — — — Broker-dealer — — — — — — 1 $ 3,294 $ 3,206 1 $ 1,481 $ 1,417 An analysis of the aging of the Company’s non-covered loan portfolio is shown in the following tables (in thousands). Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Current PCI Total Past Due June 30, 2018 30-59 Days 60-89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial and industrial: Secured $ 6,301 $ 1,394 $ 2,739 $ 10,434 $ 1,519,644 $ 5,055 $ 1,535,133 $ — Unsecured 432 25 — 457 119,841 — 120,298 — Real estate: Secured by commercial properties 428 3,206 1,821 5,455 2,295,193 16,762 2,317,410 — Secured by residential properties 1,171 — 769 1,940 819,217 3,929 825,086 688 Construction and land development: Residential construction loans 1,054 — — 1,054 208,601 — 209,655 — Commercial construction loans and land development 51 400 — 451 737,284 919 738,654 — Consumer 227 40 — 267 37,995 — 38,262 — Broker-dealer — — — — 600,162 — 600,162 — $ 9,664 $ 5,065 $ 5,329 $ 20,058 $ 6,337,937 $ 26,665 $ 6,384,660 $ 688 Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Current PCI Total Past Due December 31, 2017 30-59 Days 60-89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial and industrial: Secured $ 2,060 $ 312 $ 5,714 $ 8,086 $ 1,544,131 $ 6,099 $ 1,558,316 $ 640 Unsecured 642 — — 642 122,247 — 122,889 — Real estate: Secured by commercial properties 442 — 2,195 2,637 2,213,331 19,675 2,235,643 — Secured by residential properties 1,490 1,290 418 3,198 762,818 9,865 775,881 — Construction and land development: Residential construction loans 315 — — 315 176,937 — 177,252 — Commercial construction loans and land development 1,370 101 — 1,471 782,444 1,438 785,353 — Consumer 194 20 — 214 40,105 127 40,446 — Broker-dealer — — — — 577,889 — 577,889 — $ 6,513 $ 1,723 $ 8,327 $ 16,563 $ 6,219,902 $ 37,204 $ 6,273,669 $ 640 In addition to the non-covered loans shown in the tables above, PrimeLending had $73.4 million and $84.5 million of loans included in loans held for sale (with an aggregate unpaid principal balance of $74.0 million and $85.2 million, respectively) that were 90 days past due and accruing interest at June 30, 2018 and December 31, 2017, respectively. These loans are guaranteed by U.S. government agencies and include loans that are subject to repurchase, or have been repurchased, by PrimeLending. Management tracks credit quality trends on a quarterly basis related to: (i) past due levels, (ii) non-performing asset levels, (iii) classified loan levels, (iv) net charge-offs, and (v) general economic conditions in state and local markets. The Company utilizes a risk grading matrix to assign a risk grade to each of the loans in its portfolio with the exception of broker-dealer margin loans. A risk rating is assigned based on an assessment of the borrower’s management, collateral position, financial capacity, and economic factors. The general characteristics of the various risk grades are described below. Pass – “Pass” loans present a range of acceptable risks to the Company. Loans that would be considered virtually risk-free are rated Pass – low risk. Loans that exhibit sound standards based on the grading factors above and present a reasonable risk to the Company are rated Pass – normal risk. Loans that exhibit a minor weakness in one or more of the grading criteria but still present an acceptable risk to the Company are rated Pass – high risk. Special Mention – “Special Mention” loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in a deterioration of the repayment prospects for the loans and weaken the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose the Company to sufficient risk to require adverse classification. Substandard – “Substandard” loans are inadequately protected by the current sound worth and paying capacity of the obligor or the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Many substandard loans are considered impaired. PCI – “PCI” loans exhibited evidence of credit deterioration at acquisition that made it probable that all contractually required principal payments would not be collected. The following tables present the internal risk grades of non-covered loans, as previously described, in the portfolio by class (in thousands). June 30, 2018 Pass Special Mention Substandard PCI Total Commercial and industrial: Secured $ 1,462,355 $ 6,600 $ 61,123 $ 5,055 $ 1,535,133 Unsecured 119,289 — 1,009 — 120,298 Real estate: Secured by commercial properties 2,233,481 4,740 62,427 16,762 2,317,410 Secured by residential properties 809,996 — 11,161 3,929 825,086 Construction and land development: Residential construction loans 209,655 — — — 209,655 Commercial construction loans and land development 737,143 — 592 919 738,654 Consumer 38,139 — 123 — 38,262 Broker-dealer 600,162 — — — 600,162 $ 6,210,220 $ 11,340 $ 136,435 $ 26,665 $ 6,384,660 December 31, 2017 Pass Special Mention Substandard PCI Total Commercial and industrial: Secured $ 1,483,502 $ 17,354 $ 51,361 $ 6,099 $ 1,558,316 Unsecured 121,774 — 1,115 — 122,889 Real estate: Secured by commercial properties 2,154,595 7,647 53,726 19,675 2,235,643 Secured by residential properties 756,091 — 9,925 9,865 775,881 Construction and land development: Residential construction loans 177,252 — — — 177,252 Commercial construction loans and land development 780,905 2,259 751 1,438 785,353 Consumer 40,211 — 108 127 40,446 Broker-dealer 577,889 — — — 577,889 $ 6,092,219 $ 27,260 $ 116,986 $ 37,204 $ 6,273,669 Allowance for Loan Losses The allowance for loan losses is subject to regulatory examinations and determinations as to adequacy, which may take into account such factors as the methodology used to calculate the allowance and the size of the allowance. The Company’s analysis of the level of the allowance for loan losses to ensure that it is appropriate for the estimated credit losses in the portfolio consistent with the Interagency Policy Statement on the Allowance for Loan and Lease Losses and the Receivables and Contingencies Topics of the ASC is described in detail in Note 5 to the consolidated financial statements included in the Company’s 2017 Form 10-K. Changes in the allowance for non-covered loan losses, distributed by portfolio segment, are shown below (in thousands). Commercial and Construction and Three Months Ended June 30, 2018 Industrial Real Estate Land Development Consumer Broker-Dealer Total Balance, beginning of period $ 23,269 $ 29,300 $ 7,449 $ 276 $ 77 $ 60,371 Provision (recovery) for loan losses 1,815 (767) (178) (75) 340 1,135 Loans charged off (2,233) (24) — (30) — (2,287) Recoveries on charged off loans 666 75 — 36 — 777 Balance, end of period $ 23,517 $ 28,584 $ 7,271 $ 207 $ 417 $ 59,996 Commercial and Construction and Six Months Ended June 30, 2018 Industrial Real Estate Land Development Consumer Broker-Dealer Total Balance, beginning of period $ 23,674 $ 28,775 $ 7,844 $ 311 $ 353 $ 60,957 Provision (recovery) for loan losses 119 (264) (573) (109) 64 (763) Loans charged off (3,416) (30) — (43) — (3,489) Recoveries on charged off loans 3,140 103 — 48 — 3,291 Balance, end of period $ 23,517 $ 28,584 $ 7,271 $ 207 $ 417 $ 59,996 Commercial and Construction and Three Months Ended June 30, 2017 Industrial Real Estate Land Development Consumer Broker-Dealer Total Balance, beginning of period $ 21,679 $ 26,112 $ 6,879 $ 464 $ 23 $ 55,157 Provision for loan losses 735 2,779 766 165 448 4,893 Loans charged off (1,200) (218) — (127) — (1,545) Recoveries on charged off loans 620 61 — 22 — 703 Balance, end of period $ 21,834 $ 28,734 $ 7,645 $ 524 $ 471 $ 59,208 Commercial and Construction and Six Months Ended June 30, 2017 Industrial Real Estate Land Development Consumer Broker-Dealer Total Balance, beginning of period $ 21,369 $ 25,236 $ 7,002 $ 424 $ 155 $ 54,186 Provision for loan losses 1,210 3,701 654 221 316 6,102 Loans charged off (1,805) (300) (11) (161) — (2,277) Recoveries on charged off loans 1,060 97 — 40 — 1,197 Balance, end of period $ 21,834 $ 28,734 $ 7,645 $ 524 $ 471 $ 59,208 The non-covered loan portfolio was distributed by portfolio segment and impairment methodology as shown below (in thousands). Commercial and Construction and June 30, 2018 Industrial Real Estate Land Development Consumer Broker-Dealer Total Loans individually evaluated for impairment $ 18,653 $ 12,679 $ 569 $ — $ — $ 31,901 Loans collectively evaluated for impairment 1,631,723 3,109,126 946,821 38,262 600,162 6,326,094 PCI Loans 5,055 20,691 919 — — 26,665 $ 1,655,431 $ 3,142,496 $ 948,309 $ 38,262 $ 600,162 $ 6,384,660 Commercial and Construction and December 31, 2017 Industrial Real Estate Land Development Consumer Broker-Dealer Total Loans individually evaluated for impairment $ 16,819 $ 13,782 $ 611 $ — $ — $ 31,212 Loans collectively evaluated for impairment 1,658,287 2,968,202 960,556 40,319 577,889 6,205,253 PCI Loans 6,099 29,540 1,438 127 — 37,204 $ 1,681,205 $ 3,011,524 $ 962,605 $ 40,446 $ 577,889 $ 6,273,669 The allowance for non-covered loan losses was distributed by portfolio segment and impairment methodology as shown below (in thousands). Commercial and Construction and June 30, 2018 Industrial Real Estate Land Development Consumer Broker-Dealer Total Loans individually evaluated for impairment $ 2,501 $ 810 $ 85 $ — $ — $ 3,396 Loans collectively evaluated for impairment 20,958 26,483 7,032 207 417 55,097 PCI Loans 58 1,291 154 — — 1,503 $ 23,517 $ 28,584 $ 7,271 $ 207 $ 417 $ 59,996 Commercial and Construction and December 31, 2017 Industrial Real Estate Land Development Consumer Broker-Dealer Total Loans individually evaluated for impairment $ 365 $ 932 $ 93 $ — $ — $ 1,390 Loans collectively evaluated for impairment 23,220 26,127 7,536 293 353 57,529 PCI Loans 89 1,716 215 18 — 2,038 $ 23,674 $ 28,775 $ 7,844 $ 311 $ 353 $ 60,957

Covered Assets and Indemnificat

Covered Assets and Indemnification Asset	6 Months Ended
	Jun. 30, 2018
Covered Assets and Indemnification Asset
Covered Assets and Indemnification Asset	6. Covered Assets and Indemnification Asset The Bank acquired certain assets and assumed certain liabilities of FNB in connection with an FDIC-assisted transaction on September 13, 2013 (the “Bank Closing Date”). As part of the Purchase and Assumption Agreement by and among the FDIC (as receiver of FNB), the Bank and the FDIC (the “P&A Agreement”), the Bank and the FDIC entered into loss-share agreements covering future losses incurred on certain acquired loans and OREO. The Company refers to acquired commercial and single family residential loan portfolios and OREO that are subject to the loss-share agreements as “covered loans” and “covered OREO”, respectively, and these assets are presented as separate line items in the Company’s consolidated balance sheets. Collectively, covered loans and covered OREO are referred to as “covered assets”. Pursuant to the loss-share agreements, the FDIC has agreed to reimburse the Bank the following amounts with respect to the covered assets: (i) 80% of net losses on the first $240.4 million of net losses incurred; (ii) 0% of net losses in excess of $240.4 million up to and including $365.7 million of net losses incurred; and (iii) 80% of net losses in excess of $365.7 million of net losses incurred. Net losses are defined as book value losses plus certain defined expenses incurred in the resolution of assets, less subsequent recoveries. Under the loss-share agreement for commercial assets, the amount of subsequent recoveries that are reimbursable to the FDIC for a particular asset is limited to book value losses and expenses actually billed plus any book value charge-offs incurred prior to the Bank Closing Date. There is no limit on the amount of subsequent recoveries reimbursable to the FDIC under the loss-share agreement for single family residential assets. The loss-share agreements for commercial and single family residential assets are in effect for five years and ten years, respectively, from the Bank Closing Date, and the loss recovery provisions to the FDIC are in effect for eight years and ten years, respectively, from the Bank Closing Date. The asset arising from the loss-share agreements, referred to as the “FDIC Indemnification Asset,” is measured separately from the covered loan portfolio because the agreements are not contractually embedded in the covered loans and are not transferable should the Bank choose to dispose of the covered loans. In accordance with the loss-share agreements, the Bank may be required to make a “true-up” payment to the FDIC approximately ten years following the Bank Closing Date if its actual net realized losses over the life of the loss-share agreements are less than the FDIC’s initial estimate of losses on covered assets. The “true-up” payment is calculated using a defined formula set forth in the P&A Agreement. At June 30, 2018, the Bank has recorded a related “true-up” payment accrual of $16.6 million based on the current estimate of aggregate realized losses on covered assets over the life of the loss-share agreements. Covered Loans and Allowance for Covered Loan Losses Loans acquired in the FNB Transaction that are subject to a loss-share agreement are referred to as “covered loans” and reported separately in the consolidated balance sheets. Covered loans are reported exclusive of the cash flow reimbursements that may be received from the FDIC. The Bank’s portfolio of acquired covered loans had a fair value of $1.1 billion as of the Bank Closing Date, with no carryover of any allowance for loan losses. Acquired covered loans were preliminarily segregated between those considered to be PCI loans and those without credit impairment at acquisition. In connection with the FNB Transaction, the Bank acquired loans both with and without evidence of credit quality deterioration since origination. The Company’s accounting policies for acquired covered loans, including covered PCI loans, are consistent with the accounting policies for acquired non-covered loans, as described in Note 5 to the consolidated financial statements. The Company has established under its PCI accounting policy a framework to aggregate certain acquired covered loans into various loan pools based on a minimum of two layers of similar risk characteristics for the purpose of determining their respective fair values as of their acquisition dates, and for applying the subsequent recognition and measurement provisions for income accretion and impairment testing. The following table presents the carrying value of the covered loans summarized by portfolio segment (in thousands). June 30, December 31, 2018 2017 Commercial and industrial $ 938 $ 1,055 Real estate 158,672 179,359 Construction and land development 1,360 1,715 160,970 182,129 Allowance for covered loans (1,974) (2,729) Total covered loans, net of allowance $ 158,996 $ 179,400 The following table presents the carrying value and the outstanding contractual balance of covered PCI loans (in thousands). June 30, December 31, 2018 2017 Carrying amount $ 75,473 $ 87,113 Outstanding balance 151,529 179,019 Changes in the accretable yield for covered PCI loans were as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 87,593 $ 142,466 $ 91,833 $ 143,731 Reclassifications from nonaccretable difference, net (1) 3,228 11,618 9,715 23,024 Transfer of loans to covered OREO (2) (656) (662) (847) (780) Accretion (8,772) (25,115) (19,308) (37,668) Balance, end of period $ 81,393 $ 128,307 $ 81,393 $ 128,307 (1) Reclassifications from nonaccretable difference are primarily due to net increases in expected cash flows in the quarterly recasts, but may also include the reclassification and immediate income recognition of nonaccretable difference due to the favorable resolution of loans accounted for individually. Reclassifications to nonaccretable difference occur when accruing loans are moved to non-accrual and expected cash flows are no longer predictable and the accretable yield is eliminated. (2) Transfer of loans to covered OREO is the difference between the value removed from the pool and the expected cash flows for the loan. The remaining nonaccretable difference for covered PCI loans was $57.2 million and $72.7 million at June 30, 2018 and December 31, 2017, respectively. During the three and six months ended June 30, 2018 and 2017, a combination of factors affecting the inputs to the Bank’s quarterly recast process led to the reclassifications from nonaccretable difference to accretable yield. These transfers resulted from revised cash flows that reflect better-than-expected performance of the covered PCI loan portfolio as a result of the Bank’s strategic decision to dedicate resources to the liquidation of covered loans during the noted periods. Covered impaired loans include non-accrual loans, TDRs, PCI loans and partially charged-off loans. The amounts shown in the following tables include Pooled Loans, as well as loans accounted for on an individual basis. For Pooled Loans, the recorded investment with allowance and the related allowance consider impairment measured at the pool level. Covered impaired loans, segregated between those considered to be PCI loans and those without credit impairment at acquisition, are summarized by class in the following tables (in thousands). Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related June 30, 2018 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial and industrial: Secured $ 3,372 $ — $ 147 $ 147 $ 15 Unsecured 5,443 — — — — Real estate: Secured by commercial properties 62,824 5,326 12,057 17,383 889 Secured by residential properties 115,541 248 57,695 57,943 1,047 Construction and land development: Residential construction loans 645 — — — — Commercial construction loans and land development 10,467 — — — — 198,292 5,574 69,899 75,473 1,951 Non-PCI Commercial and industrial: Secured 44 — — — — Unsecured — — — — — Real estate: Secured by commercial properties — — — — — Secured by residential properties 6,610 5,550 — 5,550 — Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 9 5 — 5 — 6,663 5,555 — 5,555 — $ 204,955 $ 11,129 $ 69,899 $ 81,028 $ 1,951 Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related December 31, 2017 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial and industrial: Secured $ 3,783 $ — $ 194 $ 194 $ 19 Unsecured 5,732 — — — — Real estate: Secured by commercial properties 80,223 2,388 21,171 23,559 1,817 Secured by residential properties 125,361 249 63,107 63,356 861 Construction and land development: Residential construction loans 672 — — — — Commercial construction loans and land development 11,118 4 — 4 — 226,889 2,641 84,472 87,113 2,697 Non-PCI Commercial and industrial: Secured 44 — — — — Unsecured — — — — — Real estate: Secured by commercial properties — — — — — Secured by residential properties 6,279 5,370 — 5,370 — Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 18 12 — 12 — 6,341 5,382 — 5,382 — $ 233,230 $ 8,023 $ 84,472 $ 92,495 $ 2,697 Average investment in covered impaired loans is summarized by class in the following table (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Commercial and industrial: Secured $ 144 $ 644 $ 171 $ 887 Unsecured — 171 — 234 Real estate: Secured by commercial properties 17,547 37,752 20,471 41,734 Secured by residential properties 65,772 71,734 66,110 73,689 Construction and land development: Residential construction loans — — — — Commercial construction loans and land development 8 2,537 11 3,846 $ 83,471 $ 112,838 $ 86,763 $ 120,390 Covered non-accrual loans are summarized by class in the following table (in thousands). June 30, December 31, 2018 2017 Commercial and industrial: Secured $ — $ — Unsecured — — Real estate: Secured by commercial properties — — Secured by residential properties 5,271 5,087 Construction and land development: Residential construction loans — — Commercial construction loans and land development 6 17 $ 5,277 $ 5,104 At both June 30, 2018 and December 31, 2017, there were no covered non-accrual loans included in covered PCI loans for which discount accretion had been suspended because the extent and timing of cash flows from these covered PCI loans could no longer be reasonably estimated. Interest income, including recoveries and cash payments, recorded on covered impaired loans was $0.2 million during both the three months ended June 30, 2018 and 2017, while interest income recorded on covered impaired loans during both the six months ended June 30, 2018 and 2017 was $0.3 million. Except as noted above, covered PCI loans are considered to be performing due to the application of the accretion method. The Bank classifies loan modifications of covered loans as TDRs in a manner consistent with that of non-covered loans as discussed in Note 5 to the consolidated financial statements. The Bank did not grant any TDRs during the three and six months ended June 30, 2018 and 2017. Pooled Loans are not in the scope of the disclosure requirements for TDRs. At June 30, 2018 and December 31, 2017, the Bank had nominal unadvanced commitments to borrowers whose loans have been restructured in TDRs. There were no TDRs granted during the twelve months preceding June 30, 2018 or 2017 for which payment was at least 30 days past due. An analysis of the aging of the Bank’s covered loan portfolio is shown in the following tables (in thousands). Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Current PCI Total (Non ‑ PCI) Past Due June 30, 2018 30 ‑ 59 Days 60 ‑ 89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial and industrial: Secured $ — $ — $ — $ — $ 791 $ 147 $ 938 $ — Unsecured — — — — — — — — Real estate: Secured by commercial properties 66 — — 66 9,902 17,383 27,351 — Secured by residential properties 2,397 1,535 1,776 5,708 67,670 57,943 131,321 — Construction and land development: Residential construction loans — — — — — — — — Commercial construction loans and land development — — — — 1,360 — 1,360 — $ 2,463 $ 1,535 $ 1,776 $ 5,774 $ 79,723 $ 75,473 $ 160,970 $ — Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Current PCI Total (Non ‑ PCI) Past Due December 31, 2017 30 ‑ 59 Days 60 ‑ 89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial and industrial: Secured $ — $ — $ — $ — $ 861 $ 194 $ 1,055 $ — Unsecured — — — — — — — — Real estate: Secured by commercial properties 209 113 — 322 11,472 23,559 35,353 — Secured by residential properties 5,624 1,211 3,226 10,061 70,589 63,356 144,006 283 Construction and land development: Residential construction loans — — — — — — — — Commercial construction loans and land development 38 — — 38 1,673 4 1,715 — $ 5,871 $ 1,324 $ 3,226 $ 10,421 $ 84,595 $ 87,113 $ 182,129 $ 283 The Bank assigns a risk grade to each of its covered loans in a manner consistent with the existing loan review program and risk grading matrix used for non-covered loans, as described in Note 5 to the consolidated financial statements. The following tables present the internal risk grades of covered loans in the portfolio by class (in thousands). June 30, 2018 Pass Special Mention Substandard PCI Total Commercial and industrial: Secured $ 392 $ — $ 399 $ 147 $ 938 Unsecured — — — — — Real estate: Secured by commercial properties 9,208 — 760 17,383 27,351 Secured by residential properties 57,048 343 15,987 57,943 131,321 Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 1,342 — 18 — 1,360 $ 67,990 $ 343 $ 17,164 $ 75,473 $ 160,970 December 31, 2017 Pass Special Mention Substandard PCI Total Commercial and industrial: Secured $ 429 $ — $ 432 $ 194 $ 1,055 Unsecured — — — — — Real estate: Secured by commercial properties 10,961 — 833 23,559 35,353 Secured by residential properties 68,544 356 11,750 63,356 144,006 Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 1,649 — 62 4 1,715 $ 81,583 $ 356 $ 13,077 $ 87,113 $ 182,129 The Bank’s impairment methodology for covered loans is consistent with the methodology for non-covered loans, and is discussed in detail in Notes 5 and 6 to the consolidated financial statements included in the Company’s 2017 Form 10-K. Changes in the allowance for covered loan losses, distributed by portfolio segment, are shown below (in thousands). Commercial and Construction and Three months ended June 30, 2018 Industrial Real Estate Land Development Total Balance, beginning of period $ 45 $ 2,776 $ 2 $ 2,823 Provision (recovery) for loan losses (26) (764) (5) (795) Loans charged off — (57) — (57) Recoveries on charged off loans — — 3 3 Balance, end of period $ 19 $ 1,955 $ — $ 1,974 Commercial and Construction and Six months ended June 30, 2018 Industrial Real Estate Land Development Total Balance, beginning of period $ 24 $ 2,702 $ 3 $ 2,729 Provision (recovery) for loan losses (5) (690) (9) (704) Loans charged off — (57) — (57) Recoveries on charged off loans — — 6 6 Balance, end of period $ 19 $ 1,955 $ — $ 1,974 Commercial and Construction and Three months ended June 30, 2017 Industrial Real Estate Land Development Total Balance, beginning of period $ 16 $ 736 $ 1 $ 753 Provision for loan losses 28 309 623 960 Loans charged off — (362) — (362) Recoveries on charged off loans 3 1 4 8 Balance, end of period $ 47 $ 684 $ 628 $ 1,359 Commercial and Construction and Six months ended June 30, 2017 Industrial Real Estate Land Development Total Balance, beginning of period $ 35 $ 378 $ — $ 413 Provision for loan losses 12 822 622 1,456 Loans charged off (6) (521) — (527) Recoveries on charged off loans 6 5 6 17 Balance, end of period $ 47 $ 684 $ 628 $ 1,359 The covered loan portfolio was distributed by portfolio segment and impairment methodology as shown below (in thousands). Commercial and Construction and June 30, 2018 Industrial Real Estate Land Development Total Loans individually evaluated for impairment $ — $ — $ — $ — Loans collectively evaluated for impairment 791 83,346 1,360 85,497 PCI Loans 147 75,326 — 75,473 $ 938 $ 158,672 $ 1,360 $ 160,970 Commercial and Construction and December 31, 2017 Industrial Real Estate Land Development Total Loans individually evaluated for impairment $ — $ — $ — $ — Loans collectively evaluated for impairment 861 92,444 1,711 95,016 PCI Loans 194 86,915 4 87,113 $ 1,055 $ 179,359 $ 1,715 $ 182,129 The allowance for covered loan losses was distributed by portfolio segment and impairment methodology as shown below (in thousands). Commercial and Construction and June 30, 2018 Industrial Real Estate Land Development Total Loans individually evaluated for impairment $ — $ — $ — $ — Loans collectively evaluated for impairment 4 19 — 23 PCI Loans 15 1,936 — 1,951 $ 19 $ 1,955 $ — $ 1,974 Commercial and Construction and December 31, 2017 Industrial Real Estate Land Development Total Loans individually evaluated for impairment $ — $ — $ — $ — Loans collectively evaluated for impairment 5 24 3 32 PCI Loans 19 2,678 — 2,697 $ 24 $ 2,702 $ 3 $ 2,729 Covered Other Real Estate Owned A summary of the activity in covered OREO is as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 35,777 $ 45,374 $ 36,744 $ 51,642 Additions to covered OREO 2,351 3,404 4,846 5,127 Dispositions of covered OREO (2,565) (5,531) (4,972) (12,330) Valuation adjustments in the period (668) (943) (1,723) (2,135) Balance, end of period $ 34,895 $ 42,304 $ 34,895 $ 42,304 During the three and six months ended June 30, 2018 and 2017, the Bank wrote down certain covered OREO assets to fair value to reflect new appraisals on certain OREO acquired in the FNB Transaction and OREO acquired from the foreclosure on certain FNB loans acquired in the FNB Transaction. Although the Bank recorded a fair value discount on the acquired assets upon acquisition, in some cases additional downward valuations were required. The downward valuations recorded during the three and six months ended June 30, 2018 and 2017 were related to covered assets subject to the loss-share agreements with the FDIC. These additional downward valuation adjustments reflect changes to the assumptions regarding the fair value of the OREO, including in some cases the intended use of the OREO due to the availability of more information, as well as the passage of time. The process of determining fair value is subjective in nature and requires the use of significant estimates and assumptions. Although the Bank makes market-based assumptions when valuing acquired assets, new information may come to light that causes estimates to increase or decrease. When the Bank determines, based on subsequent information, that its estimates require adjustment, the Bank records the adjustment. The accounting for such adjustments requires that the decreases to the initially recorded fair value be recorded at the time such new information is received, while increases to fair value are recorded when the asset is subsequently sold. FDIC Indemnification Asset A summary of the activity in the FDIC Indemnification Asset is as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 25,458 $ 47,940 $ 29,340 $ 71,313 FDIC Indemnification Asset accretion (amortization) (1,933) (4,236) (5,815) (8,185) Transfers to due from FDIC and other — (3,400) — (22,824) Balance, end of period $ 23,525 $ 40,304 $ 23,525 $ 40,304 As of June 30, 2018, the Bank had billed $147.8 million to and collected $145.8 million from the FDIC, which represented reimbursable covered losses and expenses through September 30, 2017.

Mortgage Servicing Rights

Mortgage Servicing Rights	6 Months Ended
	Jun. 30, 2018
Mortgage Servicing Rights
Mortgage Servicing Rights	7. Mortgage Servicing Rights The following tables present the changes in fair value of the Company’s MSR asset, as included in other assets within the consolidated balance sheets, and other information related to the serviced portfolio (dollars in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 63,957 $ 45,573 $ 54,714 $ 61,968 Additions 3,068 1,266 9,729 2,490 Sales (9,303) — (9,303) (17,499) Changes in fair value: Due to changes in model inputs or assumptions (1) 1,032 (2,064) 4,673 (1,207) Due to customer payoffs (1,381) (1,195) (2,440) (2,172) Balance, end of period $ 57,373 $ 43,580 $ 57,373 $ 43,580 June 30, December 31, 2018 2017 Mortgage loans serviced for others $ 4,394,219 $ 4,762,042 MSR asset as a percentage of serviced mortgage loans 1.31 % 1.15 % (1) Primarily represents normal customer payments, changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates and the refinement of other MSR model assumptions. The key assumptions used in measuring the fair value of the Company’s MSR asset were as follows. June 30, December 31, 2018 2017 Weighted average constant prepayment rate 9.27 % 10.93 % Weighted average discount rate 11.09 % 11.03 % Weighted average life (in years) 7.6 6.9 A sensitivity analysis of the fair value of the Company’s MSR asset to certain key assumptions is presented in the following table (in thousands). June 30, December 31, 2018 2017 Constant prepayment rate: Impact of 10% adverse change $ (1,704) $ (1,948) Impact of 20% adverse change (3,473) (3,839) Discount rate: Impact of 10% adverse change (2,401) (2,135) Impact of 20% adverse change (4,604) (4,103) This sensitivity analysis presents the effect of hypothetical changes in key assumptions on the fair value of the MSR asset. The effect of such hypothetical change in assumptions generally cannot be extrapolated because the relationship of the change in one key assumption to the change in the fair value of the MSR asset is not linear. In addition, in the analysis, the impact of an adverse change in one key assumption is calculated independent of any impact on other assumptions. In reality, changes in one assumption may change another assumption. Contractually specified servicing fees, late fees and ancillary fees earned of $6.1 million and $5.0 million during the three months ended June 30, 2018 and 2017, respectively, and $11.8 million and $11.5 million during the six months ended June 30, 2018 and 2017, respectively, were included in net gains from sale of loans and other mortgage production income within the consolidated statements of operations.

Deposits

Deposits	6 Months Ended
	Jun. 30, 2018
Deposits
Deposits	8. Deposits Deposits are summarized as follows (in thousands). June 30, December 31, 2018 2017 Noninterest-bearing demand $ 2,468,332 $ 2,411,849 Interest-bearing: NOW accounts 1,272,098 1,202,752 Money market 2,209,780 2,222,555 Brokered - money market 9,911 101,624 Demand 354,232 411,771 Savings 200,643 218,812 Time 1,298,626 1,313,482 Brokered - time — 95,274 $ 7,813,622 $ 7,978,119

Short-term Borrowings

Short-term Borrowings	6 Months Ended
	Jun. 30, 2018
Short-term Borrowings
Short-term Borrowings	9. Short-term Borrowings Short-term borrowings are summarized as follows (in thousands). June 30, December 31, 2018 2017 Federal funds purchased $ 78,350 $ 101,775 Securities sold under agreements to repurchase 502,885 539,149 Federal Home Loan Bank 675,000 250,000 Short-term bank loans 354,500 315,500 $ 1,610,735 $ 1,206,424 Federal funds purchased and securities sold under agreements to repurchase generally mature daily, on demand, or on some other short-term basis. The Bank and the Hilltop Broker-Dealers execute transactions to sell securities under agreements to repurchase with both customers and other broker-dealers. Securities involved in these transactions are held by the Bank, the Hilltop Broker-Dealers or a third-party dealer. Information concerning federal funds purchased and securities sold under agreements to repurchase is shown in the following tables (dollars in thousands). Six Months Ended June 30, 2018 2017 Average balance during the period $ 721,167 $ 500,830 Average interest rate during the period 1.63 % 0.86 % June 30, December 31, 2018 2017 Average interest rate at end of period 1.74 % 1.21 % Securities underlying the agreements at end of period: Carrying value $ 514,378 $ 581,636 Estimated fair value $ 531,130 $ 598,300 Federal Home Loan Bank (“FHLB”) short-term borrowings mature over terms not exceeding 365 days and are collateralized by FHLB Dallas stock, nonspecified real estate loans and certain specific commercial real estate loans. Other information regarding FHLB short-term borrowings is shown in the following tables (dollars in thousands). Six Months Ended June 30, 2018 2017 Average balance during the period $ 117,956 $ 355,249 Average interest rate during the period 1.91 % 0.92 % June 30, December 31, 2018 2017 Average interest rate at end of period % % The Hilltop Broker-Dealers use short-term bank loans periodically to finance securities owned, margin loans to customers and correspondents, and underwriting activities. Interest on the borrowings varies with the federal funds rate. The weighted average interest rate on the borrowings at June 30, 2018 and December 31, 2017 was 2.82% and 2.27%, respectively.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2018
Notes Payable
Notes Payable	10. Notes Payable Notes payable consisted of the following (in thousands). June 30, December 31, 2018 2017 Senior Notes due April 2025, net of discount of $1,469 and $1,545, respectively $ 148,531 $ 148,455 FHLB notes, net of premium of $261 and $436, respectively, with maturities ranging from September 2020 to June 2030 4,603 19,402 NLIC note payable due May 2033 10,000 10,000 NLIC note payable due September 2033 10,000 10,000 ASIC note payable due April 2034 7,500 7,500 Insurance company line of credit due December 31, 2018 — 1,000 Ventures Management lines of credit due January 2019 47,102 12,452 $ 227,736 $ 208,809

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Taxes
Income Taxes	11. Income Taxes The Company applies an estimated annual effective rate to interim period pre-tax income to calculate the income tax provision for the quarter in accordance with the principal method prescribed by the accounting guidance established for computing income taxes in interim periods. The Company’s effective tax rates were 24.3% and 29.1% during the three months ended June 30, 2018 and 2017, respectively, and 23.9% and 31.4% during the six months ended June 30, 2018 and 2017, respectively. The 2018 effective tax rates approximated the applicable statutory rates. The effective tax rates during the three and six months ended June 30, 2017 were lower than the statutory rate primarily due to a nontaxable increase to other noninterest income recorded as part of the resolution of the SWS matter as discussed in Note 12 to the consolidated financial statements, as the SWS Merger was a tax-free reorganization under Section 368(a) the Internal Revenue Code. The decreases in the Company’s effective tax rates from periods in 2017 to periods in 2018 were primarily driven by the reduction in the corporate tax rate from 35% to 21% pursuant to the enactment of the Tax Legislation. Certain deferred tax asset amounts recorded in December 2017 following enactment of the Tax Legislation are considered reasonable estimates as of June 30, 2018 and could be adjusted during the measurement period, which will end in December 2018, as a result of further refinement of calculations, changes in interpretations and assumptions made, guidance that may be issued and actions the Company may take as a result of the Tax Legislation.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	12. Commitments and Contingencies Legal Matters The Company is subject to loss contingencies related to litigation, claims, investigations and legal and administrative cases and proceedings arising in the ordinary course of business. The Company evaluates these contingencies based on information currently available, including advice of counsel. The Company establishes accruals for those matters when a loss contingency is considered probable and the related amount is reasonably estimable. Any accruals are periodically reviewed and may be adjusted as circumstances change. A portion of the Company’s exposure with respect to loss contingencies may be offset by applicable insurance coverage. In determining the amounts of any accruals or estimates of possible loss contingencies, the Company does not take into account the availability of insurance coverage, other than that provided by reinsurers in the insurance segment. When it is practicable, the Company estimates loss contingencies for possible litigation and claims, whether or not there is accrued probable loss. When the Company is able to estimate such probably losses, and when it estimates that it is reasonably possible it could incur losses in excess of amounts accrued, the Company is required to make a disclosure of the aggregate estimation. As available information changes, however, the matters for which the Company is able to estimate, as well as the estimate themselves, will be adjusted accordingly. Assessments of litigation and claims exposures are difficult due to many factors that involve inherent unpredictability. Those factors include the following: the varying stages of the proceedings, particularly in the early stages; unspecified, unsupported, or uncertain damages; damages other than compensatory, such as punitive damages; a matter presenting meaningful legal uncertainties, including novel issues of law; multiple defendants and jurisdictions; whether discovery has begun or is complete; whether meaningful settlement discussions have commenced; and whether the claim involves a class action and if so, how the class is defined. As a result of some of these factors, the Company may be unable to estimate reasonably possible losses with respect to some or all of the pending and threatened litigation and claims asserted against the Company. Following completion of Hilltop’s acquisition of SWS, several purported holders of shares of SWS common stock (the “Petitioners”) filed petitions in the Court of Chancery of the State of Delaware (the “Court”) seeking appraisal for their shares pursuant to Section 262 of the Delaware General Corporation Law. These petitions were consolidated as In re SWS Group, Inc. , C.A. No. 10554-VCG. On May 30, 2017, the Court issued its Memorandum Opinion in the matter. The Court found the “fair value” of the shares of SWS common stock as of the date of the transaction was $6.38 per share. Accordingly, Hilltop paid cash of $6.38 per share, plus statutory interest from the effective date of the merger until the date of payment, to the Petitioners and the other stockholders of SWS who properly demanded appraisal rights under Delaware law, collectively representing 7,438,453 shares. Each outstanding share of SWS common stock, other than shares held by Hilltop, in treasury by SWS or by stockholders who properly demanded appraisal rights under Delaware law, was converted into the right to receive 0.2496 shares of Hilltop common stock and $1.94 in cash, the aggregate value of which was $6.92 per share of SWS common stock as of the effective date of the merger. The resolution of this matter resulted in 1,856,638 shares of HTH common stock, which had been held in escrow during the pendency of the proceeding, being returned to the Company’s pool of authorized but unissued shares of common stock and a pre-tax net increase to other noninterest income of $11.6 million during the second quarter of 2017. This change in common stock is reflected in repurchases of common stock within the consolidated statements of stockholders’ equity included in the Company’s 2017 Form 10-K. Certain Petitioners filed an appeal to the Court’s Memorandum Opinion. On February 23, 2018, the Delaware Supreme Court affirmed the decision of the lower Court. The Company is involved in information-gathering requests and investigations (both formal and informal), as well as reviews, examinations and proceedings (collectively, “Inquiries”) by various governmental regulatory agencies, law enforcement authorities and self-regulatory bodies regarding certain of its businesses, business practices and policies, as well as the conduct of persons with whom it does business. Additional Inquiries will arise from time to time. In connection with those Inquiries, the Company receives document requests, subpoenas and other requests for information. The Inquiries, including the Inquiry described below, could develop into administrative, civil or criminal proceedings or enforcement actions that could result in consequences that have a material effect on the Company's consolidated financial position, results of operations or cash flows as a whole. Such consequences could include adverse judgments, findings, settlements, penalties, fines, orders, injunctions, restitution, or alterations in the Company’s business practices, and could result in additional expenses and collateral costs, including reputational damage. As a part of an industry-wide Inquiry, PrimeLending received a subpoena from the Office of Inspector General of the U.S. Department of Housing and Urban Development regarding mortgage-related practices, including those relating to origination practices for loans insured by the Federal Housing Administration (the “FHA”). On August 20, 2014, PrimeLending received a Civil Investigative Demand from the United States Department of Justice (the “DOJ”) related to this Inquiry. According to the Civil Investigative Demand, the DOJ is conducting an investigation to determine whether PrimeLending has violated the False Claims Act in connection with originating and underwriting single-family residential mortgage loans insured by the FHA. The DOJ has advised PrimeLending that, based upon its review of a sample of loans for which an FHA insurance claim was paid by the U.S. Department of Housing and Urban Development (“HUD”), some of the loans do not meet FHA underwriting guidelines. PrimeLending, based upon its own review of the loan sample, does not agree with the sampling methodology and loan analysis employed by the DOJ. Remedies in these proceedings or settlements may include statutory damages, indemnification, fines and/or penalties. Many institutions have settled these matters on terms that included large monetary penalties. PrimeLending has fully cooperated with this Inquiry, continues to discuss this matter with the DOJ and adjusts its indemnification reserve based upon such discussions. While the final outcome of litigation and claims exposures or of any Inquiries is inherently unpredictable, management is currently of the opinion that the outcome of pending and threatened litigation and Inquiries will not, except related to specific matters disclosed above, have a material effect on the Company’s business, consolidated financial position, results of operations or cash flows as a whole. However, in the event of unexpected future developments, it is reasonably possible that an adverse outcome in any matter, including the matters discussed above, could be material to the Company’s business, consolidated financial position, results of operations or cash flows for any particular reporting period of occurrence. Indemnification Liability Reserve The mortgage origination segment may be responsible to agencies, investors, or other parties for errors or omissions relating to its representations and warranties that each loan sold meets certain requirements, including representations as to underwriting standards and the validity of certain borrower representations in connection with the loan. If determined to be at fault, the mortgage origination segment either repurchases the affected loan from or indemnifies the claimant against loss. The mortgage origination segment has established an indemnification liability reserve for such probable losses. Generally, the mortgage origination segment first becomes aware that an agency, investor, or other party believes a loss has been incurred on a sold loan when it receives a written request from the claimant to repurchase the loan or reimburse the claimant’s losses. Upon completing its review of the claimant’s request, the mortgage origination segment establishes a specific claims reserve for the loan if it concludes its obligation to the claimant is both probable and reasonably estimable. An additional reserve has been established for probable agency, investor or other party losses that may have been incurred, but not yet reported to the mortgage origination segment based upon a reasonable estimate of such losses. Factors considered in the calculation of this reserve include, but are not limited to, the total volume of loans sold exclusive of specific claimant requests, actual claim settlements and the severity of estimated losses resulting from future claims, and the mortgage origination segment’s history of successfully curing defects identified in claim requests. While the mortgage origination segment’s sales contracts typically include borrower early payment default repurchase provisions, these provisions have not been a primary driver of claims to date, and therefore, are not a primary factor considered in the calculation of this reserve. At June 30, 2018 and December 31, 2017, the mortgage origination segment’s indemnification liability reserve totaled $23.9 million and $23.5 million, respectively. The provision for indemnification losses was $1.0 million and $1.1 million during the three months ended June 30, 2018 and 2017, respectively, and $1.7 million and $2.0 million during the six months ended June 30, 2018 and 2017, respectively. The following tables provide for a rollforward of claims activity for loans put-back to the mortgage origination segment based upon an alleged breach of a representation or warranty with respect to a loan sold and related indemnification liability reserve activity (in thousands). Representation and Warranty Specific Claims Activity - Origination Loan Balance Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 32,321 $ 39,245 $ 33,702 $ 40,669 Claims made 5,361 8,650 12,350 17,029 Claims resolved with no payment (5,892) (9,991) (11,753) (18,088) Repurchases (1,245) (226) (3,334) (1,688) Indemnification payments — (5,124) (420) (5,368) Balance, end of period $ 30,545 $ 32,554 $ 30,545 $ 32,554 Indemnification Liability Reserve Activity Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 23,332 $ 18,952 $ 23,472 $ 18,239 Additions for new sales 1,014 1,145 1,743 1,992 Repurchases (85) (23) (245) (125) Early payment defaults (41) (60) (188) (129) Indemnification payments (4) (671) (121) (713) Change in reserves for loans sold in prior years (306) 3,024 (751) 3,103 Balance, end of period $ 23,910 $ 22,367 $ 23,910 $ 22,367 June 30, December 31, 2018 2017 Reserve for Indemnification Liability: Specific claims $ 999 $ 646 Incurred but not reported claims 22,911 22,826 Total $ 23,910 $ 23,472 Although management considers the total indemnification liability reserve to be appropriate, there may be changes in the reserve over time to address incurred losses, due to unanticipated adverse changes in the economy and historical loss patterns, discrete events adversely affecting specific borrowers or industries, and/or actions taken by institutions or investors. The impact of such matters is considered in the reserving process when probable and estimable. Other Contingencies In connection with the FNB Transaction, the Bank entered into two loss-share agreements with the FDIC that collectively cover $1.2 billion of loans and OREO acquired in the FNB Transaction. Pursuant to the loss-share agreements, the FDIC has agreed to reimburse the Bank the following amounts with respect to the covered assets: (i) 80% of net losses on the first $240.4 million of net losses incurred; (ii) 0% of net losses in excess of $240.4 million up to and including $365.7 million of net losses incurred; and (iii) 80% of net losses in excess of $365.7 million of net losses incurred. Net losses are defined as book value losses plus certain defined expenses incurred in the resolution of assets, less subsequent recoveries. Under the loss-share agreement for commercial assets, the amount of subsequent recoveries that are reimbursable to the FDIC for a particular asset is limited to book value losses and expenses actually billed plus any book value charge-offs incurred prior to the Bank Closing Date. There is no limit on the amount of subsequent recoveries reimbursable to the FDIC under the loss-share agreement for single family residential assets. The loss-share agreements for commercial and single family residential assets are in effect for five years and ten years, respectively, from the Bank Closing Date and the loss recovery provisions to the FDIC are in effect for eight years and ten years, respectively, from the Bank Closing Date. As part of the loss-share agreements, the Bank is subject to annual FDIC compliance audits. As discussed in Note 6 to the consolidated financial statements, and in accordance with the loss-share agreements, the Bank may be required to make a “true-up” payment to the FDIC approximately ten years following the Bank Closing Date if its actual net realized losses over the life of the loss-share agreements are less than the FDIC’s initial estimate of losses on covered assets. The “true-up” payment is calculated using a defined formula set forth in the P&A Agreement. While the ultimate amount of any “true-up” payment is unknown at this time and will vary based upon the amount of future losses or recoveries within our covered loan portfolio, the Bank has recorded a related “true-up” payment accrual of $16.6 million at June 30, 2018 based on the current estimate of aggregate realized losses on covered assets over the life of the loss-share agreements. The initial estimate of the FDIC Indemnification Asset at the Bank Closing Date was recorded at the present value of 80% of $240.4 million. As of June 30, 2018, the Bank projects that the sum of actual plus projected covered losses and reimbursable expenses subject to the loss-share agreements will be less than $240.4 million. As of June 30, 2018, the Bank had billed $184.7 million of covered net losses to the FDIC, of which 80%, or $147.8 million, were reimbursable under the loss-share agreements. As of June 30, 2018, the Bank had received aggregate reimbursements of $145.8 million from the FDIC, which represented reimbursable covered losses and expenses through September 30, 2017.

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk	6 Months Ended
	Jun. 30, 2018
Financial Instruments with Off-Balance Sheet Risk
Financial Instruments with Off-Balance Sheet Risk	13. Financial Instruments with Off-Balance Sheet Risk The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit that involve varying degrees of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. The contract amounts of those instruments reflect the extent of involvement (and therefore the exposure to credit loss) the Bank has in particular classes of financial instruments. Commitments to extend credit are agreements to lend to a customer provided that the terms established in the contract are met. Commitments generally have fixed expiration dates and may require payment of fees. Because some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers. In the aggregate, the Bank had outstanding unused commitments to extend credit of $2.0 billion at June 30, 2018 and outstanding financial and performance standby letters of credit of $25.1 million at June 30, 2018. The Bank uses the same credit policies in making commitments and standby letters of credit as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary, in these transactions is based on management’s credit evaluation of the borrower. Collateral held varies but may include real estate, accounts receivable, marketable securities, interest-bearing deposit accounts, inventory, and property, plant and equipment. In the normal course of business, the Hilltop Broker-Dealers execute, settle, and finance various securities transactions that may expose the Hilltop Broker-Dealers to off-balance sheet risk in the event that a customer or counterparty does not fulfill its contractual obligations. Examples of such transactions include the sale of securities not yet purchased by customers or for the accounts of the Hilltop Broker-Dealers, use of derivatives to support certain non-profit housing organization clients, clearing agreements between the Hilltop Broker-Dealers and various clearinghouses and broker-dealers, secured financing arrangements that involve pledged securities, and when-issued underwriting and purchase commitments.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Stock-Based Compensation	14. Stock-Based Compensation Pursuant to the Hilltop Holdings Inc. 2012 Equity Incentive Plan (the “2012 Plan”), the Company may grant nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance awards, dividend equivalent rights and other awards to employees of the Company, its subsidiaries and outside directors of the Company. In the aggregate, 4,000,000 shares of common stock may be delivered pursuant to awards granted under the 2012 Plan. At June 30, 2018, 1,267,430 shares of common stock remained available for issuance pursuant to awards granted under the 2012 Plan, excluding shares that may be delivered pursuant to outstanding awards. Compensation expense related to the 2012 Plan was $2.5 million and $3.2 million during the three months ended June 30, 2018 and 2017, respectively, and $4.8 million and $5.9 million during the six months ended June 30, 2018 and 2017, respectively. During the six months ended June 30, 2018 and 2017, Hilltop granted 10,024 and 7,513 shares of common stock, respectively, pursuant to the 2012 Plan to certain non-employee members of the Company’s board of directors for services rendered to the Company. Restricted Stock Units The following table summarizes information about nonvested RSU activity for the six months ended June 30, 2018 (shares in thousands). RSUs Weighted Average Grant Date Outstanding Fair Value Balance, December 31, 2017 1,318 $ 20.89 Granted 457 $ 23.37 Vested/Released (355) $ 19.79 Forfeited (100) $ 19.78 Balance, June 30, 2018 1,320 $ 22.13 Vested/Released RSUs include an aggregate of 73,661 shares withheld to satisfy employee statutory tax obligations during the six months ended June 30, 2018. Pursuant to certain RSU award agreements, an aggregate of 17,481 vested RSUs at June 30, 2018 require deferral of the settlement in shares and statutory tax obligations to a future date. During the six months ended June 30, 2018, the Compensation Committee of the board of directors of the Company awarded certain executives and key employees an aggregate of 433,268 RSUs pursuant to the 2012 Plan. At June 30, 2018, 335,560 of these outstanding RSUs are subject to time-based vesting conditions and generally cliff vest on the third anniversary of the grant date, and 84,626 of these outstanding RSUs will cliff vest based upon the achievement of certain performance goals over a three-year period. At June 30, 2018, in the aggregate, 1,061,629 of the outstanding RSUs are subject to time-based vesting conditions and generally cliff vest on the third anniversary of the grant date, and 258,773 outstanding RSUs cliff vest based upon the achievement of certain performance goals over a three-year period. At June 30, 2018, unrecognized compensation expense related to outstanding RSUs of $17.9 million is expected to be recognized over a weighted average period of 1.65 years.

Regulatory Matters

Regulatory Matters	6 Months Ended
	Jun. 30, 2018
Regulatory Matters
Regulatory Matters	15. Regulatory Matters Banking and Hilltop PlainsCapital, which includes the Bank and PrimeLending, and Hilltop are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional discretionary — actions by regulators that, if undertaken, could have a direct, material effect on the consolidated financial statements. The regulations require PlainsCapital and Hilltop to meet specific capital adequacy guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company performs reviews of the classification and calculation of risk-weighted assets to ensure accuracy and compliance with the Basel III regulatory capital requirements. The capital classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the companies to maintain minimum amounts and ratios (set forth in the following table) of Tier 1 capital (as defined in the regulations) to total average assets (as defined), and minimum ratios of common equity Tier 1, Tier 1 and total capital (as defined) to risk-weighted assets (as defined). In order to avoid limitations on capital distributions, including dividend payments, stock repurchases and certain discretionary bonus payments to executive officers, Basel III also implemented a capital conservation buffer, which requires a banking organization to hold a buffer above its minimum risk-based capital requirements. This buffer will help to ensure that banking organizations conserve capital when it is most needed, allowing them to better weather periods of economic stress. The buffer is measured relative to risk-weighted assets. The phase-in of the capital conservation buffer requirements began on January 1, 2016 for Hilltop and PlainsCapital. Based on the actual ratios as shown in the table below, Hilltop and PlainsCapital exceed each of the capital conservation buffer requirements in effect as of June 30, 2018, as well as the fully phased-in requirements through 2019. The following table shows PlainsCapital’s and Hilltop’s actual capital amounts and ratios in accordance with Basel III compared to the regulatory minimum capital requirements including conservation buffer in effect at the end of the period and on a fully phased-in basis as if such requirements were currently in effect as measured at June 30, 2018 and December 31, 2017, respectively (dollars in thousands). Based on actual capital amounts and ratios shown in the following table, PlainsCapital’s ratios place it in the “well capitalized” (as defined) capital category under regulatory requirements. Minimum Capital Requirements Including Conservation Buffer In Effect at Fully To Be Well Actual End of Period Phased In Capitalized Amount Ratio Ratio Ratio Ratio June 30, 2018 Tier 1 capital (to average assets): PlainsCapital $ 1,174,264 12.80 % 4.0 % 4.0 % 5.0 % Hilltop 1,689,009 12.90 % 4.0 % 4.0 % N/A Common equity Tier 1 capital (to risk-weighted assets): PlainsCapital 1,174,264 14.59 % 6.375 % 7.0 % 6.5 % Hilltop 1,643,623 17.61 % 6.375 % 7.0 % N/A Tier 1 capital (to risk-weighted assets): PlainsCapital 1,174,264 14.59 % 7.875 % 8.5 % 8.0 % Hilltop 1,689,009 18.10 % 7.875 % 8.5 % N/A Total capital (to risk-weighted assets): PlainsCapital 1,237,812 15.38 % 9.875 % 10.5 % 10.0 % Hilltop 1,733,360 18.58 % 9.875 % 10.5 % N/A Minimum Capital Requirements Including Conservation Buffer In Effect at Fully To Be Well Actual End of Period Phased In Capitalized Amount Ratio Ratio Ratio Ratio December 31, 2017 Tier 1 capital (to average assets): PlainsCapital $ 1,147,527 12.32 % 4.0 % 4.0 % 5.0 % Hilltop 1,688,358 12.94 % 4.0 % 4.0 % N/A Common equity Tier 1 capital (to risk-weighted assets): PlainsCapital 1,147,527 14.47 % 5.75 % 7.0 % 6.5 % Hilltop 1,639,009 17.71 % 5.75 % 7.0 % N/A Tier 1 capital (to risk-weighted assets): PlainsCapital 1,147,527 14.47 % 7.25 % 8.5 % 8.0 % Hilltop 1,688,358 18.24 % 7.25 % 8.5 % N/A Total capital (to risk-weighted assets): PlainsCapital 1,212,793 15.29 % 9.25 % 10.5 % 10.0 % Hilltop 1,738,325 18.78 % 9.25 % 10.5 % N/A Broker-Dealer Pursuant to the net capital requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Hilltop Securities has elected to determine its net capital requirements using the alternative method. Accordingly, Hilltop Securities is required to maintain minimum net capital, as defined in Rule 15c3-1 promulgated under the Exchange Act, equal to the greater of $250,000 and $1,000,000, respectively, or 2% of aggregate debit balances, as defined in Rule 15c3-3 promulgated under the Exchange Act. Additionally, the net capital rule of the NYSE provides that equity capital may not be withdrawn or cash dividends paid if resulting net capital would be less than 5% of the aggregate debit items. HTS Independent Network follows the primary (aggregate indebtedness) method, as defined in Rule 15c3-1 promulgated under the Exchange Act, which requires the maintenance of the larger of minimum net capital of $250,000 or 1/15 of aggregate indebtedness. At June 30, 2018, the net capital position of each of the Hilltop Broker-Dealers was as follows (in thousands). HTS Hilltop Independent Securities Network Net capital $ 205,730 $ 3,362 Less: required net capital 11,427 250 Excess net capital $ 194,303 $ 3,112 Net capital as a percentage of aggregate debit items 36.0 % Net capital in excess of 5% aggregate debit items $ 177,161 Under certain conditions, Hilltop Securities may be required to segregate cash and securities in a special reserve account for the benefit of customers under Rule 15c3-3 promulgated under the Exchange Act. Assets segregated under the provisions of the Exchange Act are not available for general corporate purposes. At June 30, 2018 and December 31, 2017, the Hilltop Broker-Dealers held cash of $128.4 million and $186.6 million, respectively, segregated in special reserve bank accounts for the benefit of customers. The Hilltop Broker-Dealers were not required to segregate cash and securities in special reserve accounts for the benefit of proprietary accounts of introducing broker-dealers at June 30, 2018 or December 31, 2017. Mortgage Origination As a mortgage originator, PrimeLending and its subsidiaries are subject to minimum net worth and liquidity requirements established by the HUD and the GNMA, as applicable. On an annual basis, PrimeLending and its subsidiaries submit audited financial statements to HUD and GNMA, as applicable, documenting their respective compliance with minimum net worth and liquidity requirements. As of June 30, 2018, PrimeLending and its subsidiaries’ net worth and liquidity exceeded the amounts required by both HUD and GNMA, as applicable. Insurance The statutory financial statements of the Company's insurance subsidiaries, which are domiciled in the State of Texas, are presented on the basis of accounting practices prescribed or permitted by the Texas Department of Insurance. Texas has adopted the statutory accounting practices of the National Association of Insurance Commissioners (“NAIC”) as the basis of its statutory accounting practices with certain differences that are not significant to the insurance company subsidiaries’ statutory equity. A summary of statutory capital and surplus and statutory net income of each insurance subsidiary is as follows (in thousands). June 30, December 31, 2018 2017 Capital and surplus: National Lloyds Insurance Company $ 93,578 $ 93,812 American Summit Insurance Company 23,910 22,778 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Statutory net income (loss): National Lloyds Insurance Company $ (2,633) $ (7,152) $ 1,134 $ (6,516) American Summit Insurance Company 394 (309) 1,283 523 Regulations of the Texas Department of Insurance require insurance companies to maintain minimum levels of statutory surplus to ensure their ability to meet their obligations to policyholders. At June 30, 2018, the Company's insurance subsidiaries had statutory surplus in excess of the minimum required. The NAIC has adopted a risk based capital (“RBC”) formula for insurance companies that establishes minimum capital requirements indicating various levels of available regulatory action on an annual basis relating to insurance risk, asset credit risk, interest rate risk and business risk. The RBC formula is used by the NAIC and certain state insurance regulators as an early warning tool to identify companies that require additional scrutiny or regulatory action. At June 30, 2018, the Company's insurance subsidiaries' RBC ratio exceeded the level at which regulatory action would be required.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity
Stockholders' Equity	16. Stockholders’ Equity Dividends On July 26, 2018, the Company announced that its board of directors declared a quarterly cash dividend of $0.07 per common share, payable on August 31, 2018, to all common stockholders of record as of the close of business on August 15, 2018. Stock Repurchase Program In January 2018, the Hilltop board of directors authorized a new stock repurchase program through January 2019 pursuant to which the Company was originally authorized to repurchase, in the aggregate, up to $50.0 million of its outstanding common stock. In July 2018, the Hilltop board of directors authorized an increase to the aggregate amount of common stock the Company may repurchase under this program to $100.0 million, which is inclusive of repurchases to offset dilution related to grants of stock-based compensation. During the six months ended June 30, 2018, the Company paid $38.8 million to repurchase an aggregate of 1,702,696 shares of common stock at an average price of $22.81 per share. These shares were returned to the Company’s pool of authorized but unissued shares of common stock. The purchases were funded from available cash balances. The Company’s stock repurchase program and related accounting policy are discussed in detail in Note 1 and Note 22 to the consolidated financial statements included in the Company’s 2017 Form 10-K.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2018
Derivative Financial Instruments
Derivative Financial Instruments	17. Derivative Financial Instruments The Company uses various derivative financial instruments to mitigate interest rate risk. The Bank’s interest rate risk management strategy involves effectively managing the re-pricing characteristics of certain assets and liabilities to mitigate potential adverse impacts from changes in interest rates on the net interest margin. PrimeLending has interest rate risk relative to interest rate lock commitments (“IRLCs”) and its inventory of mortgage loans held for sale. PrimeLending is exposed to such interest rate risk from the time an IRLC is made to an applicant to the time the related mortgage loan is sold. To mitigate interest rate risk, PrimeLending executes forward commitments to sell mortgage-backed securities (“MBSs”). Additionally, PrimeLending has interest rate risk relative to its MSR asset and uses derivative instruments, including interest rate swaps, swaptions, and U.S. Treasury bond futures and options to hedge this risk. The Hilltop Broker-Dealers use forward commitments to both purchase and sell MBSs to facilitate customer transactions and as a means to hedge related exposure to interest rate risk in certain inventory positions. Non-Hedging Derivative Instruments and the Fair Value Option As discussed in Note 3 to the consolidated financial statements, the Company has elected to measure substantially all mortgage loans held for sale at fair value under the provisions of the Fair Value Option. The election provides the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without applying complex hedge accounting provisions. The fair values of PrimeLending’s IRLCs, forward commitments, interest rate swaps and swaptions, and U.S. Treasury bond futures and options are recorded in other assets or other liabilities, as appropriate, and changes in the fair values of these derivative instruments are recorded as a component of net gains from sale of loans and other mortgage production income. The fair value of PrimeLending’s derivative instruments decreased $3.1 million and increased $8.8 million during the three months ended June 30, 2018 and 2017, respectively, and increased $6.9 million and $9.5 million during the six months ended June 30, 2018 and 2017, respectively. Changes in fair value are attributable to changes in the volume of IRLCs, mortgage loans held for sale, commitments to purchase and sell MBSs and MSR assets, and changes in market interest rates. Changes in market interest rates also conversely affect the value of PrimeLending’s mortgage loans held for sale and its MSR asset, which are measured at fair value under the Fair Value Option. The effect of the change in market interest rates on PrimeLending’s loans held for sale and MSR asset is discussed in Note 3 to the consolidated financial statements. The fair values of the Hilltop Broker-Dealers’ and the Bank’s derivative instruments are recorded in other assets or other liabilities, as appropriate. The fair values of the Hilltop Broker-Dealers’ derivatives increased $3.0 million and $9.9 million during the three months ended June 30, 2018 and 2017, respectively, while the fair values of the Bank’s derivatives increased nominally during the three months ended June 30, 2018 and 2017, respectively. The fair values of the Hilltop Broker-Dealers’ derivatives decreased $2.2 million and increased $16.2 million during the six months ended June 30, 2018 and 2017, respectively, while the fair values of the Bank’s derivatives increased $0.2 million and $0.1 million during the six months ended June 30, 2018 and 2017, respectively. Derivative positions are presented in the following table (in thousands). June 30, 2018 December 31, 2017 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Derivative instruments: IRLCs $ 1,390,728 $ 31,475 $ 850,850 $ 18,851 Customer-based written options 30,889 (109) 21,637 38 Customer-based purchased options 30,889 109 21,637 (38) Commitments to purchase MBSs 3,153,297 7,297 2,831,635 (921) Commitments to sell MBSs 5,753,361 (13,112) 4,963,498 2,972 Interest rate swaps 24,102 211 25,971 51 U.S. Treasury bond futures and options (1) 198,000 — 214,500 — (1) Changes in the fair value of these contracts are settled daily with PrimeLending’s counterparty. PrimeLending had cash collateral advances totaling $8.2 million and $0.8 million to offset net liability derivative positions on its commitments to sell MBSs at June 30, 2018 and December 31, 2017, respectively. In addition, PrimeLending advanced cash collateral totaling $3.2 million on its U.S. Treasury bond futures and options at both June 30, 2018 and December 31, 2017. These amounts are included in other assets within the consolidated balance sheets.

Balance Sheet Offsetting

Balance Sheet Offsetting	6 Months Ended
	Jun. 30, 2018
Balance Sheet Offsetting
Balance Sheet Offsetting	18. Balance Sheet Offsetting Certain financial instruments, including resale and repurchase agreements, securities lending arrangements and derivatives, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The following tables present the assets and liabilities subject to enforceable master netting arrangements, repurchase agreements, or similar agreements with offsetting rights (in thousands). Gross Amounts Not Offset in Net Amounts the Balance Sheet Gross Amounts Gross Amounts of Assets Cash of Recognized Offset in the Presented in the Financial Collateral Net Assets Balance Sheet Balance Sheet Instruments Pledged Amount June 30, 2018 Securities borrowed: Institutional counterparties $ 1,491,182 $ — $ 1,491,182 $ (1,424,434) $ — $ 66,748 Interest rate options: Customer counterparties 109 — 109 — — 109 Interest rate swaps: Institutional counterparties 211 — 211 (909) — (698) Reverse repurchase agreements: Institutional counterparties 229,172 — 229,172 (228,049) — 1,123 Forward MBS derivatives: Institutional counterparties 7,297 — 7,297 (7,297) — — $ 1,727,971 $ — $ 1,727,971 $ (1,660,689) $ — $ 67,282 December 31, 2017 Securities borrowed: Institutional counterparties $ 1,386,821 $ — $ 1,386,821 $ (1,327,536) $ — $ 59,285 Interest rate options: Customer counterparties 38 — 38 — — 38 Reverse repurchase agreements: Institutional counterparties 186,537 — 186,537 (186,026) — 511 Forward MBS derivatives: Institutional counterparties 3,576 — 3,576 (3,576) — — $ 1,576,972 $ — $ 1,576,972 $ (1,517,138) $ — $ 59,834 Gross Amounts Not Offset in Net Amounts the Balance Sheet Gross Amounts Gross Amounts of Liabilities Cash of Recognized Offset in the Presented in the Financial Collateral Net Liabilities Balance Sheet Balance Sheet Instruments Pledged Amount June 30, 2018 Securities loaned: Institutional counterparties $ 1,316,128 $ — $ 1,316,128 $ (1,254,389) $ — $ 61,739 Interest rate options: Institutional counterparties 109 — 109 — — 109 Repurchase agreements: Institutional counterparties 418,566 — 418,566 (418,566) — — Customer counterparties 84,319 — 84,319 (84,319) — — Forward MBS derivatives: Institutional counterparties 14,050 (938) 13,112 (7,123) — 5,989 $ 1,833,172 $ (938) $ 1,832,234 $ (1,764,397) $ — $ 67,837 December 31, 2017 Securities loaned: Institutional counterparties $ 1,215,093 $ — $ 1,215,093 $ (1,157,198) $ — $ 57,895 Interest rate options: Institutional counterparties 38 — 38 — — 38 Interest rate swaps: Institutional counterparties 35 (86) (51) (1,059) — (1,110) Repurchase agreements: Institutional counterparties 409,058 — 409,058 (409,058) — — Customer counterparties 130,091 — 130,091 (130,091) — — Forward MBS derivatives: Institutional counterparties 2,696 (1,171) 1,525 (1,295) — 230 $ 1,757,011 $ (1,257) $ 1,755,754 $ (1,698,701) $ — $ 57,053 Secured Borrowing Arrangements Secured Borrowings (Repurchase Agreements) — The Company participates in transactions involving securities sold under repurchase agreements, which are secured borrowings and generally mature one to thirty days from the transaction date or involve arrangements with no definite termination date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transactions. The Company may be required to provide additional collateral based on the fair value of the underlying securities, which is monitored on a daily basis. Securities Lending Activities — The Company’s securities lending activities include lending securities for other broker-dealers, lending institutions and its own clearing and retail operations. These activities involve lending securities to other broker-dealers to cover short sales, to complete transactions in which there has been a failure to deliver securities by the required settlement date and as a conduit for financing activities. When lending securities, the Company receives cash or similar collateral and generally pays interest (based on the amount of cash deposited) to the other party to the transaction. Securities lending transactions are executed pursuant to written agreements with counterparties that generally require securities loaned to be marked-to-market on a daily basis. The Company receives collateral in the form of cash in an amount generally in excess of the fair value of securities loaned. The Company monitors the fair value of securities loaned on a daily basis, with additional collateral obtained or refunded, as necessary. Collateral adjustments are made on a daily basis through the facilities of various clearinghouses. The Company is a principal in these securities lending transactions and is liable for losses in the event of a failure of any other party to honor its contractual obligation. Management sets credit limits with each counterparty and reviews these limits regularly to monitor the risk level with each counterparty. The Company is subject to credit risk through its securities lending activities if securities prices decline rapidly because the value of the Company’s collateral could fall below the amount of the indebtedness it secures. In rapidly appreciating markets, credit risk increases due to short positions. The Company’s securities lending business subjects the Company to credit risk if a counterparty fails to perform or if collateral securing its obligations is insufficient. In securities transactions, the Company is subject to credit risk during the period between the execution of a trade and the settlement by the customer. The following tables present the remaining contractual maturities of repurchase agreement and securities lending transactions accounted for as secured borrowings (in thousands). The Company had no repurchase-to-maturity transactions outstanding at both June 30, 2018 and December 31, 2017. Remaining Contractual Maturities Overnight and Greater Than June 30, 2018 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: U.S. Treasury and agency securities $ 145,005 $ — $ — $ — $ 145,005 Asset-backed securities 357,880 — — — 357,880 Securities lending transactions: Corporate securities 1,266 — — — 1,266 Equity securities 1,314,862 — — — 1,314,862 Total $ 1,819,013 $ — $ — $ — $ 1,819,013 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,819,013 Amount related to agreements not included in offsetting disclosure above $ — Remaining Contractual Maturities Overnight and Greater Than December 31, 2017 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: U.S. Treasury and agency securities $ 181,915 $ — $ — $ — $ 181,915 Asset-backed securities 357,234 — — — 357,234 Securities lending transactions: Corporate securities 11,499 — — — 11,499 Equity securities 1,203,594 — — — 1,203,594 Total $ 1,754,242 $ — $ — $ — $ 1,754,242 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,754,242 Amount related to agreements not included in offsetting disclosure above $ —

Broker-Dealer and Clearing Orga

Broker-Dealer and Clearing Organization Receivables and Payables	6 Months Ended
	Jun. 30, 2018
Broker-Dealer and Clearing Organization Receivables and Payables
Broker-Dealer and Clearing Organization Receivables and Payables	19. Broker-Dealer and Clearing Organization Receivables and Payables Broker-dealer and clearing organization receivables and payables consisted of the following (in thousands). June 30, December 31, 2018 2017 Receivables: Securities borrowed $ 1,491,182 $ 1,386,821 Securities failed to deliver 58,522 25,491 Trades in process of settlement 47,174 29,412 Other 18,073 22,654 $ 1,614,951 $ 1,464,378 Payables: Securities loaned $ 1,316,128 $ 1,215,093 Correspondents 26,537 30,160 Securities failed to receive 60,041 37,864 Other 7,198 4,446 $ 1,409,904 $ 1,287,563

Reserves for Losses and Loss Ad

Reserves for Losses and Loss Adjustment Expenses	6 Months Ended
	Jun. 30, 2018
Reserves for Losses and Loss Adjustment Expenses
Reserve for Losses and Loss Adjustment Expenses	20. Reserve for Losses and Loss Adjustment Expenses A summary of NLC’s reserve for unpaid losses and LAE, as included in other liabilities within the consolidated balance sheets, is as follows (in thousands). June 30, December 31, 2018 2017 Reserve for unpaid losses and allocated LAE balance, net $ 21,004 $ 17,470 Reinsurance recoverables on unpaid losses 6,091 11,495 Unallocated LAE 1,148 1,248 Reserve for unpaid losses and LAE balance, gross $ 28,243 $ 30,213 A summary of claims loss reserve development activity is presented in the following table (dollars in thousands). June 30, 2018 Total of IBNR Reserves Plus Expected Cumulative Accident Six Months Ended June 30, 2018 Development on Number of Year Paid Incurred Reported Claims Reported Claims 2014 83,640 84,050 13,150 2015 86,175 87,205 410 15,121 2016 82,671 84,614 1,490 21,451 2017 85,089 89,107 2,659 21,308 2018 23,338 36,431 5,669 5,779 Total 360,913 $ 381,407 510 All outstanding reserves prior to 2014, net of reinsurance $ 21,004 Reserve for unpaid losses and allocated LAE, net of reinsurance

Reinsurance Activity

Reinsurance Activity	6 Months Ended
	Jun. 30, 2018
Reinsurance Activity
Reinsurance Activity	21. Reinsurance Activity NLC limits the maximum net loss that can arise from large risks or risks in concentrated areas of exposure by reinsuring (ceding) certain levels of risk. Substantial amounts of business are ceded, and these reinsurance contracts do not relieve NLC from its obligations to policyholders. Such reinsurance includes quota share, excess of loss, catastrophe, and other forms of reinsurance on essentially all property and casualty lines of insurance. Net insurance premiums earned, losses and LAE and policy acquisition and other underwriting expenses are reported net of the amounts related to reinsurance ceded to other companies. Amounts recoverable from reinsurers related to the portions of the liability for losses and LAE and unearned insurance premiums ceded to them are reported as assets. Failure of reinsurers to honor their obligations could result in losses to NLC; consequently, allowances are established for amounts deemed uncollectible as NLC evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. At June 30, 2018, total reinsurance recoverables and receivables had a carrying value of $8.8 million, which is included in other assets within the consolidated balance sheets. There was no allowance for uncollectible accounts at June 30, 2018, based on NLC’s quality requirements. The effects of reinsurance on premiums written and earned are summarized as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Written Earned Written Earned Written Earned Written Earned Premiums from direct business $ 35,801 $ 33,372 $ 37,792 $ 36,753 $ 68,886 $ 66,740 $ 73,588 $ 73,952 Reinsurance assumed 3,567 3,111 3,358 2,910 6,609 6,111 6,227 5,728 Reinsurance ceded (2,335) (2,378) (2,974) (3,643) (4,345) (4,431) (6,187) (7,520) Net premiums $ 37,033 $ 34,105 $ 38,176 $ 36,020 $ 71,150 $ 68,420 $ 73,628 $ 72,160 The effects of reinsurance on incurred losses are as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Losses and LAE incurred $ 23,869 $ 33,352 $ 37,321 $ 55,654 Reinsurance recoverables 540 (168) 2,620 (770) Net loss and LAE incurred $ 24,409 $ 33,184 $ 39,941 $ 54,884 Catastrophic coverage At June 30, 2018, NLC had catastrophic excess of loss reinsurance coverage of losses per event in excess of $8 million retention by NLIC and $1.5 million retention by ASIC. ASIC maintained an underlying layer of coverage, providing $6.5 million of reinsurance coverage in excess of its $1.5 million retention to bridge to the primary program. The reinsurance for NLIC and ASIC in excess of $8 million is comprised of three layers of protection: $17 million in excess of $8 million retention and/or loss; $30 million in excess of $25 million loss; and $50 million in excess of $55 million loss. NLIC and ASIC retain no participation in any of the layers, beyond the first $8 million and $1.5 million, respectively. At June 30, 2018, total retention for any one catastrophe that affects both NLIC and ASIC was limited to $8 million in the aggregate. Effective January 1, 2018, NLC renewed its underlying excess of loss contract that provides $10 million aggregate coverage in excess of NLC’s per event retention of $1.0 million and aggregate retention of $17.5 million for sub-catastrophic events. As of January 1, 2018, NLC retains 17.5% participation in this coverage, up from no participation during 2017.

Segment and Related Information

Segment and Related Information	6 Months Ended
	Jun. 30, 2018
Segment and Related Information
Segment and Related Information	22. 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 Company’s chief operating decision maker function to evaluate segment performance, develop strategy and allocate resources. The chief operating decision maker function consists of the Company’s President and Co-Chief Executive Officer and the Company’s Vice Chairman and Co-Chief Executive Officer. The banking segment includes the operations of the Bank, the broker-dealer segment includes the operations of Securities Holdings, the mortgage origination segment is composed of PrimeLending, and the insurance segment is composed of NLC. 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 including, but not limited to, certain executive management, corporate relations, legal, finance and acquisition costs. 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, 2018 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 87,958 $ 12,890 $ 704 $ 793 $ (2,482) $ 4,985 $ 104,848 Provision for loan losses — 340 — — — — 340 Noninterest income 10,644 73,589 162,759 36,546 1,436 (5,540) 279,434 Noninterest expense 65,542 77,967 150,026 39,712 5,340 (70) 338,517 Income (loss) before income taxes $ 33,060 $ 8,172 $ 13,437 $ (2,373) $ (6,386) $ (485) $ 45,425 Mortgage All Other and Hilltop Six Months Ended June 30, 2018 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 174,596 $ 25,441 $ 1,645 $ 1,580 $ (4,573) $ 9,579 $ 208,268 Provision (recovery) for loan losses (1,531) 64 — — — — (1,467) Noninterest income 20,823 142,135 289,862 71,564 724 (10,531) 514,577 Noninterest expense 124,913 155,743 280,729 70,725 14,743 (134) 646,719 Income (loss) before income taxes $ 72,037 $ 11,769 $ 10,778 $ 2,419 $ (18,592) $ (818) $ 77,593 Mortgage All Other and Hilltop Three Months Ended June 30, 2017 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 102,191 $ 10,349 $ 996 $ 602 $ (2,288) $ 4,126 $ 115,976 Provision for loan losses 5,405 448 — — — — 5,853 Noninterest income 25,499 92,810 179,637 38,413 12,608 (4,275) 344,692 Noninterest expense 62,511 86,901 161,369 49,416 6,298 (244) 366,251 Income (loss) before income taxes $ 59,774 $ 15,810 $ 19,264 $ (10,401) $ 4,022 $ 95 $ 88,564 Mortgage All Other and Hilltop Six Months Ended June 30, 2017 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 184,274 $ 18,837 $ (885) $ 1,119 $ (4,823) $ 9,554 $ 208,076 Provision for loan losses 7,241 316 — — — 1 7,558 Noninterest income 37,910 175,362 323,275 76,723 12,609 (9,748) 616,131 Noninterest expense 123,325 168,558 293,207 86,429 15,685 (461) 686,743 Income (loss) before income taxes $ 91,618 $ 25,325 $ 29,183 $ (8,587) $ (7,899) $ 266 $ 129,906 Mortgage All Other and Hilltop Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated June 30, 2018 Goodwill $ 207,741 $ 7,008 $ 13,071 $ 23,988 $ — $ — $ 251,808 Total assets $ 9,778,476 $ 3,445,391 $ 2,171,149 $ 292,186 $ 2,078,735 $ (4,076,763) $ 13,689,174 December 31, 2017 Goodwill $ 207,741 $ 7,008 $ 13,071 $ 23,988 $ — $ — $ 251,808 Total assets $ 9,558,718 $ 3,394,911 $ 1,937,327 $ 291,639 $ 2,106,978 $ (3,923,787) $ 13,365,786

Earnings per Common Share

Earnings per Common Share	6 Months Ended
	Jun. 30, 2018
Earnings per Common Share
Earnings per Common Share	23. Earnings per Common Share Nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of earnings per share pursuant to the two-class method prescribed by the Earnings Per Share Topic of the ASC. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Restricted Stock Awards were the only instruments issued by Hilltop which previously qualified as participating securities through August 2017 when these awards vested. Net earnings, less any preferred dividends accumulated for the period (whether or not declared), is allocated between the common stock and participating securities pursuant to the two-class method. Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested restricted shares. Diluted earnings per common share is computed in a similar manner, except that first the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares, excluding the participating securities, were issued using the treasury stock method. During the three months ended June 30, 2018, RSUs were the only potentially dilutive non-participating instruments issued by Hilltop. Next, the Company determines and includes in the diluted earnings per common share calculation the more dilutive effect of the participating securities using the treasury stock method or the two-class method. Undistributed losses are not allocated to the nonvested share-based payment awards (the participating securities) under the two-class method as the holders are not contractually obligated to share in the losses of the Company. The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic earnings per share: Income attributable to Hilltop $ 33,080 $ 62,476 $ 57,521 $ 88,910 Less: income applicable to participating shares — (2) — (3) Net earnings available to Hilltop common stockholders $ 33,080 $ 62,474 $ 57,521 $ 88,907 Weighted average shares outstanding - basic 95,270 98,154 95,625 98,295 Basic earnings per common share $ 0.35 $ 0.64 $ 0.60 $ 0.90 Diluted earnings per share: Income attributable to Hilltop $ 33,080 $ 62,476 $ 57,521 $ 88,910 Weighted average shares outstanding - basic 95,270 98,154 95,625 98,295 Effect of potentially dilutive securities 88 260 102 281 Weighted average shares outstanding - diluted 95,358 98,414 95,727 98,576 Diluted earnings per common share $ 0.35 $ 0.63 $ 0.60 $ 0.90

Schedule I - Insurance Incurred

Schedule I - Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	6 Months Ended
	Jun. 30, 2018
Schedule Of Insurance Incurred And Cumulative Paid Losses And Allocated Loss Adjustment Expenses, Net Of Reinsurance
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	SCHEDULE I – Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (dollars in thousands) Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance June 30, 2018 Total of Incurred But Not Reported Reserves Plus Cumulative June 30, 2018 Development Number of Accident 2014 2015 2016 2017 2018 On Reported Reported Year Unaudited Unaudited Unaudited Unaudited Unaudited Claims Claims 2014 $ 83,784 $ 85,037 $ 84,221 $ 84,074 $ 84,050 $ 87 13,150 2015 89,646 88,477 87,262 87,205 410 15,121 2016 84,771 85,189 84,614 1,490 21,451 2017 87,899 89,107 2,659 21,308 2018 36,431 5,669 5,779 $ 381,407 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance June 30, 2018 Accident 2014 2015 2016 2017 2018 Year Unaudited Unaudited Unaudited Unaudited Unaudited 2014 $ 70,831 $ 79,713 $ 81,684 $ 83,346 $ 83,640 2015 71,820 82,940 85,507 86,175 2016 71,543 81,682 82,671 2017 77,675 85,089 2018 23,338 Total $ 360,913 All outstanding reserves prior to 2014, net of reinsurance 510 Reserve for unpaid losses and allocated loss adjustment expenses, net of reinsurance $ 21,004

Summary of Significant Accoun34

Summary of Significant Accounting and Reporting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting and Reporting Policies
Nature of Operations	Nature of Operations Hilltop Holdings Inc. (“Hilltop” and, collectively with its subsidiaries, the “Company”) is a financial holding company registered under the Bank Holding Company Act of 1956. The Company’s primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank (the “Bank”). In addition, the Company provides an array of financial products and services through its broker-dealer, mortgage origination and insurance subsidiaries. The Company, headquartered in Dallas, Texas, provides its products and services through three primary business units, PlainsCapital Corporation (“PCC”), Hilltop Securities Holdings LLC (“Securities Holdings”) and National Lloyds Corporation (“NLC”). PCC is a financial holding company that provides, through its subsidiaries, traditional banking, wealth and investment management and treasury management services primarily in Texas and residential mortgage lending throughout the United States. Securities Holdings is a holding company that provides, through its subsidiaries, investment banking and other related financial services, including municipal advisory, sales, trading and underwriting of taxable and tax-exempt fixed income securities, equity trading, clearing, securities lending, structured finance and retail brokerage services throughout the United States. NLC is a property and casualty insurance holding company that provides, through its subsidiaries, fire and homeowners insurance to low value dwellings and manufactured homes primarily in Texas and other areas of the southern United States. On February 13, 2018, the Company entered into a definitive agreement to acquire privately-held, Houston-based The Bank of River Oaks (“BORO”) in an all-cash transaction. Under the terms of the definitive agreement, the Company has agreed to pay cash in the aggregate amount of $85 million to the shareholders and option holders of BORO. As of December 31, 2017, BORO had total assets, gross loans and deposits of $454.4 million, $343.6 million and $406.1 million, respectively. The acquisition was approved by BORO shareholders in May 2018 and was subsequently approved by regulators. The transaction is expected to close on or about August 1, 2018.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), and in conformity with the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K”). Results for interim periods are not necessarily indicative of results to be expected for a full year or any future period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates regarding the allowance for loan losses, the fair values of financial instruments, the amounts receivable from the Federal Deposit Insurance Corporation (the “FDIC”) under loss-share agreements (the “FDIC Indemnification Asset”), reserves for losses and loss adjustment expenses (“LAE”), the mortgage loan indemnification liability, and the potential impairment of assets are particularly subject to change. The Company has applied its critical accounting policies and estimation methods consistently in all periods presented in these consolidated financial statements. Hilltop owns 100% of the outstanding stock of PCC. PCC owns 100% of the outstanding stock of the Bank and 100% of the membership interest in Hilltop Opportunity Partners LLC, formerly known as PlainsCapital Equity, LLC, a merchant bank utilized to facilitate investments in companies engaged in non-financial activities. The Bank owns 100% of the outstanding stock of PrimeLending, a PlainsCapital Company (“PrimeLending”). PrimeLending owns a 100% membership interest in PrimeLending Ventures Management, LLC (“Ventures Management”), which holds an ownership interest in and is the managing member of certain affiliated business arrangements (“ABAs”). PCC also owns 100% of the outstanding common securities of PCC Statutory Trusts I, II, III and IV (the “Trusts”), which are not included in the consolidated financial statements under the requirements of the Variable Interest Entities Subsections of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) because the primary beneficiaries of the Trusts are not within the consolidated group. Hilltop has a 100% membership interest in Securities Holdings, which operates through its wholly owned subsidiaries, Hilltop Securities Inc. (“Hilltop Securities”), Hilltop Securities Independent Network Inc. (“HTS Independent Network”) (collectively, the “Hilltop Broker-Dealers”) and First Southwest Asset Management, LLC. Hilltop Securities is a broker-dealer registered with the SEC and Financial Industry Regulatory Authority (“FINRA”) and a member of the New York Stock Exchange (“NYSE”), HTS Independent Network is an introducing broker-dealer that is also registered with the SEC and FINRA, and First Southwest Asset Management, LLC is a registered investment adviser under the Investment Advisers Act of 1940. Hilltop also owns 100% of NLC, which operates through its wholly owned subsidiaries, National Lloyds Insurance Company (“NLIC”) and American Summit Insurance Company (“ASIC”). The consolidated financial statements include the accounts of the above-named entities. Intercompany transactions and balances have been eliminated. Noncontrolling interests have been recorded for minority ownership in entities that are not wholly owned and are presented in compliance with the provisions of Noncontrolling Interest in Subsidiary Subsections of the ASC. Certain reclassifications have been made to the prior period consolidated financial statements to conform with the current period presentation, including reclassifications due to the adoption of new accounting pronouncements. In preparing these consolidated financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all stockholders and other financial statement users, or filed with the SEC. Significant accounting policies are detailed in Note 1 to the consolidated financial statements included in the Company’s 2017 Form 10-K. The Company has updated its accounting policies related to securities as a result of the adoption of Accounting Standards Update (“ASU”) 2016-01 as presented below.
Securities	Securities Management classifies securities at the time of purchase and reassesses such designation at each balance sheet date. Securities held for resale to facilitate principal transactions with customers are classified as trading, and are carried at fair value, with changes in fair value reflected in the consolidated statements of operations. Hilltop reports interest income on trading securities as interest income on securities and other changes in fair value as other noninterest income. Debt securities held but not intended to be held to maturity or on a long-term basis are classified as available for sale. Securities included in this category are those that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk, and other factors related to interest rate and resultant prepayment risk changes. Debt securities available for sale are carried at fair value. Unrealized holding gains and losses on debt securities available for sale, net of taxes, are reported in other comprehensive income (loss) until realized. Premiums and discounts are recognized in interest income using the effective interest method and consider any optionality that may be embedded in the security. Equity securities are carried at fair value, with changes in fair value reflected in the consolidated statements of operations. Equity securities that do not have readily determinable fair values are initially recorded at cost and are remeasured when there is (i) an observable transaction involving the same investment, (ii) an observable transaction involving a similar investment from the same issuer or (iii) an impairment. These remeasurements are reflected in the consolidated statements of operations. Purchases and sales (and related gain or loss) of securities are recorded on the trade date, based on specific identification. Declines in the fair value of available-for-sale debt securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the other-than-temporary impairment (“OTTI”) is related to credit losses. The amount of the OTTI related to other factors is recognized in other comprehensive income (loss). In estimating OTTI, management considers in developing its best estimate of cash flows, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the historic and implied volatility of the security, (iv) failure of the issuer to make scheduled interest payments and (v) changes to the rating of the security by a rating agency.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Measurements
Schedule of information regarding financial assets and liabilities measured at fair value on a recurring basis	The following tables present information regarding financial assets and liabilities measured at fair value on a recurring basis (in thousands). Level 1 Level 2 Level 3 Total June 30, 2018 Inputs Inputs Inputs Fair Value Trading securities $ 1,051 $ 633,146 $ — $ 634,197 Available for sale securities — 811,218 — 811,218 Equity securities 21,218 — — 21,218 Loans held for sale — Derivative assets — 56,050 — 56,050 MSR asset — — 57,373 Securities sold, not yet purchased 67,867 — 251,581 Derivative liabilities — 30,179 — 30,179 Level 1 Level 2 Level 3 Total December 31, 2017 Inputs Inputs Inputs Fair Value Trading securities $ 3,329 $ 727,356 $ — $ 730,685 Available for sale securities — 744,319 — 744,319 Equity securities 21,241 — — 21,241 Loans held for sale — 1,544,631 36,972 1,581,603 Derivative assets — 34,150 — 34,150 MSR asset — — 54,714 54,714 Securities sold, not yet purchased 156,586 76,235 — 232,821 Derivative liabilities — 13,197 — 13,197
Rollforward for financial instruments measured at fair value using Level 3 inputs	The following tables include a rollforward for those financial instruments measured at fair value using Level 3 inputs (in thousands). Total Gains or Losses (Realized or Unrealized) Balance at Included in Other Beginning of Purchases/ Sales/ Included in Comprehensive Balance at Period Additions Reductions Net Income Income (Loss) End of Period Three months ended June 30, 2018 Loans held for sale $ 43,483 $ 8,071 $ (8,538) $ (2,235) $ — $ 40,781 MSR asset 63,957 3,068 (9,303) (349) — 57,373 Total $ 107,440 $ 11,139 $ (17,841) $ (2,584) $ — $ 98,154 Six months ended June 30, 2018 Loans held for sale $ 36,972 $ 20,550 $ (12,513) $ (4,228) $ — $ 40,781 MSR asset 54,714 9,729 (9,303) 2,233 — 57,373 Total $ 91,686 $ 30,279 $ (21,816) $ (1,995) $ — $ 98,154 Three months ended June 30, 2017 Loans held for sale 30,214 8,675 (6,722) (2,130) — 30,037 MSR asset 45,573 1,266 — (3,259) — 43,580 Total $ 75,787 $ 9,941 $ (6,722) $ (5,389) $ — $ 73,617 Six months ended June 30, 2017 Loans held for sale 35,801 16,503 (17,423) (4,844) — 30,037 MSR asset 61,968 2,490 (17,499) (3,379) — 43,580 Total $ 97,769 $ 18,993 $ (34,922) $ (8,223) $ — $ 73,617
Schedule of significant unobservable inputs used in the fair value measurements	For Level 3 financial instruments measured at fair value on a recurring basis at June 30, 2018, the significant unobservable inputs used in the fair value measurements were as follows. Range Financial instrument Valuation Technique Unobservable Inputs (Weighted-Average) Loans held for sale Discounted cash flows / Market comparable Projected price 94 - 97 % ( 94 %) MSR asset Discounted cash flows Constant prepayment rate 9.27 % Discount rate 11.09 %
Schedule of changes in fair value for instruments reported at fair value under the Fair Value Option	The following table presents those changes in fair value of instruments recognized in the consolidated statements of operations that are accounted for under the Fair Value Option (in thousands). Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ 22,604 $ — $ 22,604 $ 22,231 $ — $ 22,231 MSR asset (349) — (349) (3,259) — (3,259) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ 7,724 $ — $ 7,724 $ 31,093 $ — $ 31,093 MSR asset 2,233 — 2,233 (3,379) — (3,379)
Schedule of significant unobservable inputs weighted average rates on Impaired Loans	At June 30, 2018, estimates for these significant unobservable inputs were as follows. PCI Loans PlainsCapital FNB SWS Merger Transaction Merger Weighted average default rate % % % Weighted average loss severity rate % % % Weighted average prepayment speed % % %
Schedule of information regarding certain assets and liabilities measured at fair value on a non-recurring basis for which a change in fair value has been recorded during reporting periods subsequent to initial recognition	The following table presents information regarding certain assets and liabilities measured at fair value on a non-recurring basis for which a change in fair value has been recorded during reporting periods subsequent to initial recognition (in thousands). Total Gains (Losses) for the Total Gains (Losses) for the Level 1 Level 2 Level 3 Total Three Months Ended June 30, Six Months Ended June 30, June 30, 2018 Inputs Inputs Inputs Fair Value 2018 2017 2018 2017 Non-covered impaired loans $ — $ — $ 19,465 $ 19,465 $ (1,446) $ (274) $ (1,471) $ (470) Covered impaired loans — — 72,953 72,953 844 (611) 746 (977) Non-covered other real estate owned — 225 — 225 (25) (108) (76) (123) Covered other real estate owned — 15,996 — 15,996 (669) (943) (1,724) (2,135)
Schedule of carrying values and estimated fair values of financial instruments	The following tables present the carrying values and estimated fair values of financial instruments not measured at fair value on either a recurring or non-recurring basis (in thousands). Estimated Fair Value Carrying Level 1 Level 2 Level 3 June 30, 2018 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 353,835 $ 353,835 $ — $ — $ 353,835 Securities purchased under agreements to resell 229,172 — 229,172 — 229,172 Assets segregated for regulatory purposes 128,417 128,417 — — 128,417 Held to maturity securities 353,192 — 339,702 — 339,702 Loans held for sale 139,448 — 139,448 — 139,448 Non-covered loans, net 6,324,664 — 600,162 5,812,057 6,412,219 Covered loans, net 158,996 — — 234,533 234,533 Broker-dealer and clearing organization receivables 1,614,951 — 1,614,951 — 1,614,951 FDIC indemnification asset 23,525 — — 17,787 17,787 Other assets 66,245 — 65,951 294 66,245 Financial liabilities: Deposits 7,813,622 — 7,802,515 — 7,802,515 Broker-dealer and clearing organization payables 1,409,904 — 1,409,904 — 1,409,904 Short-term borrowings 1,610,735 — 1,610,735 — 1,610,735 Debt 294,748 — 292,494 — 292,494 Other liabilities 4,583 — 4,583 — 4,583 Estimated Fair Value Carrying Level 1 Level 2 Level 3 December 31, 2017 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 487,382 $ 487,382 $ — $ — $ 487,382 Securities purchased under agreements to resell 186,537 — 186,537 — 186,537 Assets segregated for regulatory purposes 186,578 186,578 — — 186,578 Held to maturity securities 355,849 — 349,939 — 349,939 Loans held for sale 133,754 — 133,754 — 133,754 Non-covered loans, net 6,212,712 — 577,889 5,828,868 6,406,757 Covered loans, net 179,400 — — 269,386 269,386 Broker-dealer and clearing organization receivables 1,464,378 — 1,464,378 — 1,464,378 FDIC indemnification asset 29,340 — — 20,122 20,122 Other assets 64,862 — 59,053 5,809 64,862 Financial liabilities: Deposits 7,978,119 — 7,973,101 — 7,973,101 Broker-dealer and clearing organization payables 1,287,563 — 1,287,563 — 1,287,563 Short-term borrowings 1,206,424 — 1,206,424 — 1,206,424 Debt 275,821 — 289,719 — 289,719 Other liabilities 4,795 — 4,795 — 4,795
Schedule of adjustments to the carrying value of these investments	The following table presents the adjustments to the carrying value of these investments (in thousands). Three months ended, Six months ended, June 30, 2018 June 30, 2018 Balance, beginning of period $ 21,906 $ 22,946 Impairments and downward adjustments (2) (1,314) Additional investments and upward adjustments 4,247 4,519 Balance, end of period $ 26,151 $ 26,151

Securities (Tables)

Securities (Tables)	6 Months Ended
	Jun. 30, 2018
Securities
Summary of trading securities	The fair value of trading securities is summarized as follows (in thousands). June 30, December 31, 2018 2017 U.S. Treasury securities $ 1,033 $ — U.S. government agencies: Bonds 57,996 52,078 Residential mortgage-backed securities 338,892 372,817 Commercial mortgage-backed securities 8,664 6,125 Collateralized mortgage obligations 1 5,122 Corporate debt securities 80,361 96,182 States and political subdivisions 112,646 170,413 Unit investment trusts 27,480 22,612 Private-label securitized product 3,684 1,631 Other 3,440 3,705 Totals $ 634,197 $ 730,685
Summary of amortized cost and fair value of available for sale securities	The amortized cost and fair value of available for sale and held to maturity securities are summarized as follows (in thousands). Available for Sale Amortized Unrealized Unrealized June 30, 2018 Cost Gains Losses Fair Value U.S. Treasury securities $ 34,671 $ — $ (123) $ 34,548 U.S. government agencies: Bonds 70,258 417 (736) 69,939 Residential mortgage-backed securities 311,305 232 (8,749) 302,788 Commercial mortgage-backed securities 11,817 11 (250) 11,578 Collateralized mortgage obligations 283,370 266 (6,594) 277,042 Corporate debt securities 57,162 331 (505) 56,988 States and political subdivisions 57,932 657 (254) 58,335 Totals $ 826,515 $ 1,914 $ (17,211) $ 811,218 Available for Sale Amortized Unrealized Unrealized December 31, 2017 Cost Gains Losses Fair Value U.S. Treasury securities $ 24,665 $ 107 $ (103) $ 24,669 U.S. government agencies: Bonds 96,177 829 (366) 96,640 Residential mortgage-backed securities 246,707 538 (3,740) 243,505 Commercial mortgage-backed securities 11,966 105 (48) 12,023 Collateralized mortgage obligations 237,848 106 (4,142) 233,812 Corporate debt securities 66,868 1,819 (25) 68,662 States and political subdivisions 64,024 1,099 (115) 65,008 Totals $ 748,255 $ 4,603 $ (8,539) $ 744,319
Summary of amortized cost and fair value of held to maturity securities	Held to Maturity Amortized Unrealized Unrealized June 30, 2018 Cost Gains Losses Fair Value U.S. government agencies: Bonds $ 39,016 $ — $ (2,007) $ 37,009 Residential mortgage-backed securities 24,051 — (483) 23,568 Commercial mortgage-backed securities 79,776 — (2,509) 77,267 Collateralized mortgage obligations 157,000 — (6,646) 150,354 States and political subdivisions 53,349 69 (1,914) 51,504 Totals $ 353,192 $ 69 $ (13,559) $ 339,702 Held to Maturity Amortized Unrealized Unrealized December 31, 2017 Cost Gains Losses Fair Value U.S. government agencies: Bonds $ 39,015 $ — $ (1,188) $ 37,827 Residential mortgage-backed securities 16,130 44 — 16,174 Commercial mortgage-backed securities 71,373 241 (735) 70,879 Collateralized mortgage obligations 173,928 19 (3,969) 169,978 States and political subdivisions 55,403 437 (759) 55,081 Totals $ 355,849 $ 741 $ (6,651) $ 349,939
Schedule of information regarding available for sale securities that were in an unrealized loss position	Information regarding available for sale, held to maturity and equity securities that were in an unrealized loss position is shown in the following tables (dollars in thousands). June 30, 2018 December 31, 2017 Number of Unrealized Number of Unrealized Securities Fair Value Losses Securities Fair Value Losses Available for Sale U.S. treasury securities: Unrealized loss for less than twelve months 8 $ 31,388 $ 103 6 $ 15,449 $ 69 Unrealized loss for twelve months or longer 3 3,159 20 1 4,150 34 11 34,547 123 7 19,599 103 U.S. government agencies: Bonds: Unrealized loss for less than twelve months 7 57,133 736 10 83,476 366 Unrealized loss for twelve months or longer — — — — — — 7 57,133 736 10 83,476 366 Residential mortgage-backed securities: Unrealized loss for less than twelve months 24 190,497 4,443 15 121,968 820 Unrealized loss for twelve months or longer 10 76,637 4,306 11 93,358 2,920 34 267,134 8,749 26 215,326 3,740 Commercial mortgage-backed securities: Unrealized loss for less than twelve months 2 8,654 250 1 5,048 48 Unrealized loss for twelve months or longer — — — — — — 2 8,654 250 1 5,048 48 Collateralized mortgage obligations: Unrealized loss for less than twelve months 22 111,616 2,003 16 90,886 819 Unrealized loss for twelve months or longer 19 90,124 4,591 17 80,492 3,323 41 201,740 6,594 33 171,378 4,142 Corporate debt securities: Unrealized loss for less than twelve months 16 34,019 505 1 5,073 25 Unrealized loss for twelve months or longer — — — — — — 16 34,019 505 1 5,073 25 States and political subdivisions: Unrealized loss for less than twelve months 21 12,511 229 9 6,981 97 Unrealized loss for twelve months or longer 7 2,423 25 9 2,876 18 28 14,934 254 18 9,857 115 Total available for sale: Unrealized loss for less than twelve months 100 445,818 8,269 58 328,881 2,244 Unrealized loss for twelve months or longer 39 172,343 8,942 38 180,876 6,295 139 $ 618,161 $ 17,211 96 $ 509,757 $ 8,539
Schedule of held-to-maturity and equity securities continuous unrealized loss position	June 30, 2018 December 31, 2017 Number of Unrealized Number of Unrealized Securities Fair Value Losses Securities Fair Value Losses Held to Maturity U.S. government agencies: Bonds: Unrealized loss for less than twelve months 1 $ 5,714 $ 286 1 $ 5,950 $ 50 Unrealized loss for twelve months or longer 3 31,295 1,721 3 31,877 1,138 4 37,009 2,007 4 37,827 1,188 Residential mortgage-backed securities: Unrealized loss for less than twelve months 4 23,568 483 — — — Unrealized loss for twelve months or longer — — — — — — 4 23,568 483 — — — Commercial mortgage-backed securities: Unrealized loss for less than twelve months 15 58,293 1,737 7 39,396 271 Unrealized loss for twelve months or longer 2 12,188 773 2 12,659 464 17 70,481 2,510 9 52,055 735 Collateralized mortgage obligations: Unrealized loss for less than twelve months 11 32,718 816 10 37,064 264 Unrealized loss for twelve months or longer 14 117,636 5,829 12 128,270 3,705 25 150,354 6,645 22 165,334 3,969 States and political subdivisions: Unrealized loss for less than twelve months 58 25,086 398 22 11,079 71 Unrealized loss for twelve months or longer 46 17,749 1,516 46 18,598 688 104 42,835 1,914 68 29,677 759 Total held to maturity: Unrealized loss for less than twelve months 89 145,379 3,720 40 93,489 656 Unrealized loss for twelve months or longer 65 178,868 9,839 63 191,404 5,995 154 $ 324,247 $ 13,559 103 $ 284,893 $ 6,651 Equity Common and preferred stock: Unrealized loss for less than twelve months — — — 1 944 13 Unrealized loss for twelve months or longer — — — 1 6,800 103 — $ — $ — 2 $ 7,744 $ 116
Schedule of amortized cost and fair value of securities, excluding trading and equity available for sale securities, by contractual maturity	The amortized cost and fair value of securities, excluding trading and equity securities, at June 30, 2018 are shown by contractual maturity below (in thousands). Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value Due in one year or less $ 87,491 $ 87,501 $ 2,253 $ 2,252 Due after one year through five years 97,703 97,369 12,819 12,381 Due after five years through ten years 15,283 14,897 17,568 16,722 Due after ten years 19,546 20,043 59,725 57,158 220,023 219,810 92,365 88,513 Residential mortgage-backed securities 311,305 302,788 24,051 23,568 Collateralized mortgage obligations 283,370 277,042 157,000 150,354 Commercial mortgage-backed securities 11,817 11,578 79,776 77,267 $ 826,515 $ 811,218 $ 353,192 $ 339,702

Non-Covered Loans and Allowan37

Non-Covered Loans and Allowance for Non-Covered Loan Losses (Tables) - Noncovered	6 Months Ended
	Jun. 30, 2018
Loans
Summary of non-covered loans by portfolio segment	Non-covered loans summarized by portfolio segment are as follows (in thousands). June 30, December 31, 2018 2017 Commercial and industrial $ 1,655,431 $ 1,681,205 Real estate 3,142,496 3,011,524 Construction and land development 948,309 962,605 Consumer 38,262 40,446 Broker-dealer (1) 600,162 577,889 6,384,660 6,273,669 Allowance for non-covered loan losses (59,996) (60,957) Total non-covered loans, net of allowance $ 6,324,664 $ 6,212,712 (1) Represents margin loans to customers and correspondents associated with our broker-dealer segment operations.
Schedule of carrying values and the outstanding balances of the PCI loans	The following table presents the carrying values and the outstanding balances of non-covered PCI loans (in thousands). June 30, December 31, 2018 2017 Carrying amount $ 26,665 $ 37,204 Outstanding balance 39,714 51,064
Schedule of changes in the accretable yield for the PCI loans	Changes in the accretable yield for non-covered PCI loans were as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 6,093 $ 11,442 $ 7,013 $ 13,116 Reclassifications from nonaccretable difference, net (1) (92) 438 550 577 Disposals of loans — (61) (98) (61) Accretion (742) (2,026) (2,206) (3,839) Balance, end of period $ 5,259 $ 9,793 $ 5,259 $ 9,793 (1) Reclassifications from nonaccretable difference are primarily due to net increases in expected cash flows in the quarterly recasts. Reclassifications to nonaccretable difference occur when accruing loans are moved to non-accrual and expected cash flows are no longer predictable and the accretable yield is eliminated.
Summary of impaired loans by class	Non-covered impaired loans, segregated between those considered to be PCI loans and those without credit impairment at acquisition, are summarized by class in the following tables (in thousands). Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related June 30, 2018 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial and industrial: Secured $ 15,315 $ 3,935 $ 1,120 $ 5,055 $ 58 Unsecured — — — — — Real estate: Secured by commercial properties 24,947 8,610 8,152 16,762 969 Secured by residential properties 6,263 1,930 1,999 3,929 322 Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 1,417 271 648 919 154 Consumer 2,083 — — — — Broker-dealer — — — — — 50,025 14,746 11,919 26,665 1,503 Non-PCI Commercial and industrial: Secured 25,451 13,406 5,430 18,836 2,501 Unsecured 656 425 — 425 — Real estate: Secured by commercial properties 14,124 8,171 4,767 12,938 810 Secured by residential properties 1,241 803 — 803 — Construction and land development: Residential construction loans 15 — — — — Commercial construction loans and land development 631 — 568 568 85 Consumer 155 49 — 49 — Broker-dealer — — — — — 42,273 22,854 10,765 33,619 3,396 $ 92,298 $ 37,600 $ 22,684 $ 60,284 $ 4,899 Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related December 31, 2017 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial and industrial: Secured $ 19,752 $ 3,610 $ 2,489 $ 6,099 $ 89 Unsecured — — — — — Real estate: Secured by commercial properties 34,598 7,583 12,092 19,675 1,391 Secured by residential properties 12,600 5,307 4,558 9,865 325 Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 2,001 428 1,010 1,438 215 Consumer 2,377 12 115 127 18 Broker-dealer — — — — — 71,328 16,940 20,264 37,204 2,038 Non-PCI Commercial and industrial: Secured 23,666 15,308 2,072 17,380 365 Unsecured 761 616 — 616 — Real estate: Secured by commercial properties 15,504 10,934 3,686 14,620 932 Secured by residential properties 1,596 1,177 — 1,177 — Construction and land development: Residential construction loans 15 — — — — Commercial construction loans and land development 653 — 611 611 93 Consumer 162 56 — 56 — Broker-dealer — — — — — 42,357 28,091 6,369 34,460 1,390 $ 113,685 $ 45,031 $ 26,633 $ 71,664 $ 3,428
Summary of average investment in impaired loans by class	Average recorded investment in non-covered impaired loans is summarized by class in the following table (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Commercial and industrial: Secured $ 23,581 $ 16,950 $ 23,685 $ 15,093 Unsecured 475 748 521 821 Real estate: Secured by commercial properties 30,245 37,189 31,998 37,362 Secured by residential properties 4,973 11,461 7,887 11,630 Construction and land development: Residential construction loans — — — 14 Commercial construction loans and land development 1,673 3,170 1,768 3,580 Consumer 54 462 116 480 Broker-dealer — — — — $ 61,001 $ 69,980 $ 65,975 $ 68,980
Summary of non-accrual loans by class	Non-covered non-accrual loans, excluding those classified as held for sale, are summarized by class in the following table (in thousands). June 30, December 31, 2018 2017 Commercial and industrial: Secured $ 22,390 $ 20,262 Unsecured 425 616 Real estate: Secured by commercial properties 14,256 14,620 Secured by residential properties 1,217 1,614 Construction and land development: Residential construction loans — — Commercial construction loans and land development 569 611 Consumer 49 56 Broker-dealer — — $ 38,906 $ 37,779
Schedule of information regarding TDRs granted	The Bank did not grant any TDRs during three or six months ended June 30, 2018. Information regarding TDRs granted during the three and six months ended June 30, 2017 is shown in the following tables (dollars in thousands). At June 30, 2018 and December 31, 2017, the Bank had nominal unadvanced commitments to borrowers whose loans have been restructured in TDRs. Three Months Ended June 30, 2017 Number of Balance at Balance at Loans Extension End of Period Commercial and industrial: Secured — $ — $ — Unsecured — — — Real estate: Secured by commercial properties — — — Secured by residential properties — — — Construction and land development: Residential construction loans — — — Commercial construction loans and land development 1 655 632 Consumer — — — Broker-dealer — — — 1 $ 655 $ 632 Six Months Ended June 30, 2017 Number of Balance at Balance at Loans Extension End of Period Commercial and industrial: Secured 1 $ 1,357 $ 1,279 Unsecured — — — Real estate: Secured by commercial properties 1 1,481 1,417 Secured by residential properties — — — Construction and land development: Residential construction loans — — — Commercial construction loans and land development 1 655 632 Consumer — — — Broker-dealer — — — 3 $ 3,493 $ 3,328 All of the non-covered loan modifications included in the tables above involved payment term extensions. The Bank did not grant principal reductions on any restructured non-covered loans during the three and six months ended June 30, 2018 and 2017. The following table presents information regarding TDRs granted during the twelve months preceding June 30, 2018 and 2017, respectively, for which a payment was at least 30 days past due (dollars in thousands). Twelve Months Preceding June 30, 2018 Twelve Months Preceding June 30, 2017 Number of Balance at Balance at Number of Balance at Balance at Loans Extension End of Period Loans Extension End of Period Commercial and industrial: Secured — $ — $ — — $ — $ — Unsecured — — — — — — Real estate: Secured by commercial properties 1 3,294 3,206 1 1,481 1,417 Secured by residential properties — — — — — — Construction and land development: Residential construction loans — — — — — — Commercial construction loans and land development — — — — — — Consumer — — — — — — Broker-dealer — — — — — — 1 $ 3,294 $ 3,206 1 $ 1,481 $ 1,417
Schedule of analysis of the aging of the entity's loan portfolio	An analysis of the aging of the Company’s non-covered loan portfolio is shown in the following tables (in thousands). Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Current PCI Total Past Due June 30, 2018 30-59 Days 60-89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial and industrial: Secured $ 6,301 $ 1,394 $ 2,739 $ 10,434 $ 1,519,644 $ 5,055 $ 1,535,133 $ — Unsecured 432 25 — 457 119,841 — 120,298 — Real estate: Secured by commercial properties 428 3,206 1,821 5,455 2,295,193 16,762 2,317,410 — Secured by residential properties 1,171 — 769 1,940 819,217 3,929 825,086 688 Construction and land development: Residential construction loans 1,054 — — 1,054 208,601 — 209,655 — Commercial construction loans and land development 51 400 — 451 737,284 919 738,654 — Consumer 227 40 — 267 37,995 — 38,262 — Broker-dealer — — — — 600,162 — 600,162 — $ 9,664 $ 5,065 $ 5,329 $ 20,058 $ 6,337,937 $ 26,665 $ 6,384,660 $ 688 Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Current PCI Total Past Due December 31, 2017 30-59 Days 60-89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial and industrial: Secured $ 2,060 $ 312 $ 5,714 $ 8,086 $ 1,544,131 $ 6,099 $ 1,558,316 $ 640 Unsecured 642 — — 642 122,247 — 122,889 — Real estate: Secured by commercial properties 442 — 2,195 2,637 2,213,331 19,675 2,235,643 — Secured by residential properties 1,490 1,290 418 3,198 762,818 9,865 775,881 — Construction and land development: Residential construction loans 315 — — 315 176,937 — 177,252 — Commercial construction loans and land development 1,370 101 — 1,471 782,444 1,438 785,353 — Consumer 194 20 — 214 40,105 127 40,446 — Broker-dealer — — — — 577,889 — 577,889 — $ 6,513 $ 1,723 $ 8,327 $ 16,563 $ 6,219,902 $ 37,204 $ 6,273,669 $ 640
Schedule of internal risk grades of loans by class	The following tables present the internal risk grades of non-covered loans, as previously described, in the portfolio by class (in thousands). June 30, 2018 Pass Special Mention Substandard PCI Total Commercial and industrial: Secured $ 1,462,355 $ 6,600 $ 61,123 $ 5,055 $ 1,535,133 Unsecured 119,289 — 1,009 — 120,298 Real estate: Secured by commercial properties 2,233,481 4,740 62,427 16,762 2,317,410 Secured by residential properties 809,996 — 11,161 3,929 825,086 Construction and land development: Residential construction loans 209,655 — — — 209,655 Commercial construction loans and land development 737,143 — 592 919 738,654 Consumer 38,139 — 123 — 38,262 Broker-dealer 600,162 — — — 600,162 $ 6,210,220 $ 11,340 $ 136,435 $ 26,665 $ 6,384,660 December 31, 2017 Pass Special Mention Substandard PCI Total Commercial and industrial: Secured $ 1,483,502 $ 17,354 $ 51,361 $ 6,099 $ 1,558,316 Unsecured 121,774 — 1,115 — 122,889 Real estate: Secured by commercial properties 2,154,595 7,647 53,726 19,675 2,235,643 Secured by residential properties 756,091 — 9,925 9,865 775,881 Construction and land development: Residential construction loans 177,252 — — — 177,252 Commercial construction loans and land development 780,905 2,259 751 1,438 785,353 Consumer 40,211 — 108 127 40,446 Broker-dealer 577,889 — — — 577,889 $ 6,092,219 $ 27,260 $ 116,986 $ 37,204 $ 6,273,669
Schedule of changes in the allowance for loan losses by portfolio segment	Changes in the allowance for non-covered loan losses, distributed by portfolio segment, are shown below (in thousands). Commercial and Construction and Three Months Ended June 30, 2018 Industrial Real Estate Land Development Consumer Broker-Dealer Total Balance, beginning of period $ 23,269 $ 29,300 $ 7,449 $ 276 $ 77 $ 60,371 Provision (recovery) for loan losses 1,815 (767) (178) (75) 340 1,135 Loans charged off (2,233) (24) — (30) — (2,287) Recoveries on charged off loans 666 75 — 36 — 777 Balance, end of period $ 23,517 $ 28,584 $ 7,271 $ 207 $ 417 $ 59,996 Commercial and Construction and Six Months Ended June 30, 2018 Industrial Real Estate Land Development Consumer Broker-Dealer Total Balance, beginning of period $ 23,674 $ 28,775 $ 7,844 $ 311 $ 353 $ 60,957 Provision (recovery) for loan losses 119 (264) (573) (109) 64 (763) Loans charged off (3,416) (30) — (43) — (3,489) Recoveries on charged off loans 3,140 103 — 48 — 3,291 Balance, end of period $ 23,517 $ 28,584 $ 7,271 $ 207 $ 417 $ 59,996 Commercial and Construction and Three Months Ended June 30, 2017 Industrial Real Estate Land Development Consumer Broker-Dealer Total Balance, beginning of period $ 21,679 $ 26,112 $ 6,879 $ 464 $ 23 $ 55,157 Provision for loan losses 735 2,779 766 165 448 4,893 Loans charged off (1,200) (218) — (127) — (1,545) Recoveries on charged off loans 620 61 — 22 — 703 Balance, end of period $ 21,834 $ 28,734 $ 7,645 $ 524 $ 471 $ 59,208 Commercial and Construction and Six Months Ended June 30, 2017 Industrial Real Estate Land Development Consumer Broker-Dealer Total Balance, beginning of period $ 21,369 $ 25,236 $ 7,002 $ 424 $ 155 $ 54,186 Provision for loan losses 1,210 3,701 654 221 316 6,102 Loans charged off (1,805) (300) (11) (161) — (2,277) Recoveries on charged off loans 1,060 97 — 40 — 1,197 Balance, end of period $ 21,834 $ 28,734 $ 7,645 $ 524 $ 471 $ 59,208
Schedule of loan portfolio distributed by portfolio segment and impairment methodology	The non-covered loan portfolio was distributed by portfolio segment and impairment methodology as shown below (in thousands). Commercial and Construction and June 30, 2018 Industrial Real Estate Land Development Consumer Broker-Dealer Total Loans individually evaluated for impairment $ 18,653 $ 12,679 $ 569 $ — $ — $ 31,901 Loans collectively evaluated for impairment 1,631,723 3,109,126 946,821 38,262 600,162 6,326,094 PCI Loans 5,055 20,691 919 — — 26,665 $ 1,655,431 $ 3,142,496 $ 948,309 $ 38,262 $ 600,162 $ 6,384,660 Commercial and Construction and December 31, 2017 Industrial Real Estate Land Development Consumer Broker-Dealer Total Loans individually evaluated for impairment $ 16,819 $ 13,782 $ 611 $ — $ — $ 31,212 Loans collectively evaluated for impairment 1,658,287 2,968,202 960,556 40,319 577,889 6,205,253 PCI Loans 6,099 29,540 1,438 127 — 37,204 $ 1,681,205 $ 3,011,524 $ 962,605 $ 40,446 $ 577,889 $ 6,273,669
Schedule of allowance for loan losses distributed by portfolio segment and impairment methodology	The allowance for non-covered loan losses was distributed by portfolio segment and impairment methodology as shown below (in thousands). Commercial and Construction and June 30, 2018 Industrial Real Estate Land Development Consumer Broker-Dealer Total Loans individually evaluated for impairment $ 2,501 $ 810 $ 85 $ — $ — $ 3,396 Loans collectively evaluated for impairment 20,958 26,483 7,032 207 417 55,097 PCI Loans 58 1,291 154 — — 1,503 $ 23,517 $ 28,584 $ 7,271 $ 207 $ 417 $ 59,996 Commercial and Construction and December 31, 2017 Industrial Real Estate Land Development Consumer Broker-Dealer Total Loans individually evaluated for impairment $ 365 $ 932 $ 93 $ — $ — $ 1,390 Loans collectively evaluated for impairment 23,220 26,127 7,536 293 353 57,529 PCI Loans 89 1,716 215 18 — 2,038 $ 23,674 $ 28,775 $ 7,844 $ 311 $ 353 $ 60,957

Covered Assets and Indemnific38

Covered Assets and Indemnification Asset (Tables) - Covered	6 Months Ended
	Jun. 30, 2018
Loans
Summary of carrying value of the loans	The following table presents the carrying value of the covered loans summarized by portfolio segment (in thousands). June 30, December 31, 2018 2017 Commercial and industrial $ 938 $ 1,055 Real estate 158,672 179,359 Construction and land development 1,360 1,715 160,970 182,129 Allowance for covered loans (1,974) (2,729) Total covered loans, net of allowance $ 158,996 $ 179,400
Schedule of carrying value and the outstanding balance of the PCI loans	The following table presents the carrying value and the outstanding contractual balance of covered PCI loans (in thousands). June 30, December 31, 2018 2017 Carrying amount $ 75,473 $ 87,113 Outstanding balance 151,529 179,019
Schedule of changes in the accretable yield for the PCI loans	Changes in the accretable yield for covered PCI loans were as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 87,593 $ 142,466 $ 91,833 $ 143,731 Reclassifications from nonaccretable difference, net (1) 3,228 11,618 9,715 23,024 Transfer of loans to covered OREO (2) (656) (662) (847) (780) Accretion (8,772) (25,115) (19,308) (37,668) Balance, end of period $ 81,393 $ 128,307 $ 81,393 $ 128,307 (1) Reclassifications from nonaccretable difference are primarily due to net increases in expected cash flows in the quarterly recasts, but may also include the reclassification and immediate income recognition of nonaccretable difference due to the favorable resolution of loans accounted for individually. Reclassifications to nonaccretable difference occur when accruing loans are moved to non-accrual and expected cash flows are no longer predictable and the accretable yield is eliminated. (2) Transfer of loans to covered OREO is the difference between the value removed from the pool and the expected cash flows for the loan.
Summary of impaired loans by class	Covered impaired loans, segregated between those considered to be PCI loans and those without credit impairment at acquisition, are summarized by class in the following tables (in thousands). Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related June 30, 2018 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial and industrial: Secured $ 3,372 $ — $ 147 $ 147 $ 15 Unsecured 5,443 — — — — Real estate: Secured by commercial properties 62,824 5,326 12,057 17,383 889 Secured by residential properties 115,541 248 57,695 57,943 1,047 Construction and land development: Residential construction loans 645 — — — — Commercial construction loans and land development 10,467 — — — — 198,292 5,574 69,899 75,473 1,951 Non-PCI Commercial and industrial: Secured 44 — — — — Unsecured — — — — — Real estate: Secured by commercial properties — — — — — Secured by residential properties 6,610 5,550 — 5,550 — Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 9 5 — 5 — 6,663 5,555 — 5,555 — $ 204,955 $ 11,129 $ 69,899 $ 81,028 $ 1,951 Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related December 31, 2017 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial and industrial: Secured $ 3,783 $ — $ 194 $ 194 $ 19 Unsecured 5,732 — — — — Real estate: Secured by commercial properties 80,223 2,388 21,171 23,559 1,817 Secured by residential properties 125,361 249 63,107 63,356 861 Construction and land development: Residential construction loans 672 — — — — Commercial construction loans and land development 11,118 4 — 4 — 226,889 2,641 84,472 87,113 2,697 Non-PCI Commercial and industrial: Secured 44 — — — — Unsecured — — — — — Real estate: Secured by commercial properties — — — — — Secured by residential properties 6,279 5,370 — 5,370 — Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 18 12 — 12 — 6,341 5,382 — 5,382 — $ 233,230 $ 8,023 $ 84,472 $ 92,495 $ 2,697
Summary of average investment in impaired loans by class	Average investment in covered impaired loans is summarized by class in the following table (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Commercial and industrial: Secured $ 144 $ 644 $ 171 $ 887 Unsecured — 171 — 234 Real estate: Secured by commercial properties 17,547 37,752 20,471 41,734 Secured by residential properties 65,772 71,734 66,110 73,689 Construction and land development: Residential construction loans — — — — Commercial construction loans and land development 8 2,537 11 3,846 $ 83,471 $ 112,838 $ 86,763 $ 120,390
Summary of non-accrual loans by class	Covered non-accrual loans are summarized by class in the following table (in thousands). June 30, December 31, 2018 2017 Commercial and industrial: Secured $ — $ — Unsecured — — Real estate: Secured by commercial properties — — Secured by residential properties 5,271 5,087 Construction and land development: Residential construction loans — — Commercial construction loans and land development 6 17 $ 5,277 $ 5,104
Schedule of analysis of the aging of the entity's loan portfolio	An analysis of the aging of the Bank’s covered loan portfolio is shown in the following tables (in thousands). Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Current PCI Total (Non ‑ PCI) Past Due June 30, 2018 30 ‑ 59 Days 60 ‑ 89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial and industrial: Secured $ — $ — $ — $ — $ 791 $ 147 $ 938 $ — Unsecured — — — — — — — — Real estate: Secured by commercial properties 66 — — 66 9,902 17,383 27,351 — Secured by residential properties 2,397 1,535 1,776 5,708 67,670 57,943 131,321 — Construction and land development: Residential construction loans — — — — — — — — Commercial construction loans and land development — — — — 1,360 — 1,360 — $ 2,463 $ 1,535 $ 1,776 $ 5,774 $ 79,723 $ 75,473 $ 160,970 $ — Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Current PCI Total (Non ‑ PCI) Past Due December 31, 2017 30 ‑ 59 Days 60 ‑ 89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial and industrial: Secured $ — $ — $ — $ — $ 861 $ 194 $ 1,055 $ — Unsecured — — — — — — — — Real estate: Secured by commercial properties 209 113 — 322 11,472 23,559 35,353 — Secured by residential properties 5,624 1,211 3,226 10,061 70,589 63,356 144,006 283 Construction and land development: Residential construction loans — — — — — — — — Commercial construction loans and land development 38 — — 38 1,673 4 1,715 — $ 5,871 $ 1,324 $ 3,226 $ 10,421 $ 84,595 $ 87,113 $ 182,129 $ 283
Schedule of internal risk grades of loans	The following tables present the internal risk grades of covered loans in the portfolio by class (in thousands). June 30, 2018 Pass Special Mention Substandard PCI Total Commercial and industrial: Secured $ 392 $ — $ 399 $ 147 $ 938 Unsecured — — — — — Real estate: Secured by commercial properties 9,208 — 760 17,383 27,351 Secured by residential properties 57,048 343 15,987 57,943 131,321 Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 1,342 — 18 — 1,360 $ 67,990 $ 343 $ 17,164 $ 75,473 $ 160,970 December 31, 2017 Pass Special Mention Substandard PCI Total Commercial and industrial: Secured $ 429 $ — $ 432 $ 194 $ 1,055 Unsecured — — — — — Real estate: Secured by commercial properties 10,961 — 833 23,559 35,353 Secured by residential properties 68,544 356 11,750 63,356 144,006 Construction and land development: Residential construction loans — — — — — Commercial construction loans and land development 1,649 — 62 4 1,715 $ 81,583 $ 356 $ 13,077 $ 87,113 $ 182,129
Schedule of changes in the allowance for loan losses by portfolio segment	Changes in the allowance for covered loan losses, distributed by portfolio segment, are shown below (in thousands). Commercial and Construction and Three months ended June 30, 2018 Industrial Real Estate Land Development Total Balance, beginning of period $ 45 $ 2,776 $ 2 $ 2,823 Provision (recovery) for loan losses (26) (764) (5) (795) Loans charged off — (57) — (57) Recoveries on charged off loans — — 3 3 Balance, end of period $ 19 $ 1,955 $ — $ 1,974 Commercial and Construction and Six months ended June 30, 2018 Industrial Real Estate Land Development Total Balance, beginning of period $ 24 $ 2,702 $ 3 $ 2,729 Provision (recovery) for loan losses (5) (690) (9) (704) Loans charged off — (57) — (57) Recoveries on charged off loans — — 6 6 Balance, end of period $ 19 $ 1,955 $ — $ 1,974 Commercial and Construction and Three months ended June 30, 2017 Industrial Real Estate Land Development Total Balance, beginning of period $ 16 $ 736 $ 1 $ 753 Provision for loan losses 28 309 623 960 Loans charged off — (362) — (362) Recoveries on charged off loans 3 1 4 8 Balance, end of period $ 47 $ 684 $ 628 $ 1,359 Commercial and Construction and Six months ended June 30, 2017 Industrial Real Estate Land Development Total Balance, beginning of period $ 35 $ 378 $ — $ 413 Provision for loan losses 12 822 622 1,456 Loans charged off (6) (521) — (527) Recoveries on charged off loans 6 5 6 17 Balance, end of period $ 47 $ 684 $ 628 $ 1,359
Schedule of loan portfolio distributed by portfolio segment and impairment methodology	The covered loan portfolio was distributed by portfolio segment and impairment methodology as shown below (in thousands). Commercial and Construction and June 30, 2018 Industrial Real Estate Land Development Total Loans individually evaluated for impairment $ — $ — $ — $ — Loans collectively evaluated for impairment 791 83,346 1,360 85,497 PCI Loans 147 75,326 — 75,473 $ 938 $ 158,672 $ 1,360 $ 160,970 Commercial and Construction and December 31, 2017 Industrial Real Estate Land Development Total Loans individually evaluated for impairment $ — $ — $ — $ — Loans collectively evaluated for impairment 861 92,444 1,711 95,016 PCI Loans 194 86,915 4 87,113 $ 1,055 $ 179,359 $ 1,715 $ 182,129
Schedule of allowance for loan losses distributed by portfolio segment and impairment methodology	The allowance for covered loan losses was distributed by portfolio segment and impairment methodology as shown below (in thousands). Commercial and Construction and June 30, 2018 Industrial Real Estate Land Development Total Loans individually evaluated for impairment $ — $ — $ — $ — Loans collectively evaluated for impairment 4 19 — 23 PCI Loans 15 1,936 — 1,951 $ 19 $ 1,955 $ — $ 1,974 Commercial and Construction and December 31, 2017 Industrial Real Estate Land Development Total Loans individually evaluated for impairment $ — $ — $ — $ — Loans collectively evaluated for impairment 5 24 3 32 PCI Loans 19 2,678 — 2,697 $ 24 $ 2,702 $ 3 $ 2,729
Summary of the activity in covered OREO	A summary of the activity in covered OREO is as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 35,777 $ 45,374 $ 36,744 $ 51,642 Additions to covered OREO 2,351 3,404 4,846 5,127 Dispositions of covered OREO (2,565) (5,531) (4,972) (12,330) Valuation adjustments in the period (668) (943) (1,723) (2,135) Balance, end of period $ 34,895 $ 42,304 $ 34,895 $ 42,304
Summary of the activity in the FDIC Indemnification Asset	A summary of the activity in the FDIC Indemnification Asset is as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 25,458 $ 47,940 $ 29,340 $ 71,313 FDIC Indemnification Asset accretion (amortization) (1,933) (4,236) (5,815) (8,185) Transfers to due from FDIC and other — (3,400) — (22,824) Balance, end of period $ 23,525 $ 40,304 $ 23,525 $ 40,304

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	6 Months Ended
	Jun. 30, 2018
Mortgage Servicing Rights
Schedule of change in fair value of the Company's MSR, as included in other assets within the consolidated balance sheets	The following tables present the changes in fair value of the Company’s MSR asset, as included in other assets within the consolidated balance sheets, and other information related to the serviced portfolio (dollars in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 63,957 $ 45,573 $ 54,714 $ 61,968 Additions 3,068 1,266 9,729 2,490 Sales (9,303) — (9,303) (17,499) Changes in fair value: Due to changes in model inputs or assumptions (1) 1,032 (2,064) 4,673 (1,207) Due to customer payoffs (1,381) (1,195) (2,440) (2,172) Balance, end of period $ 57,373 $ 43,580 $ 57,373 $ 43,580 June 30, December 31, 2018 2017 Mortgage loans serviced for others $ 4,394,219 $ 4,762,042 MSR asset as a percentage of serviced mortgage loans 1.31 % 1.15 % (1) Primarily represents normal customer payments, changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates and the refinement of other MSR model assumptions.
Schedule of key assumptions used in measuring the fair value of the Company's MSR	June 30, December 31, 2018 2017 Weighted average constant prepayment rate 9.27 % 10.93 % Weighted average discount rate 11.09 % 11.03 % Weighted average life (in years) 7.6 6.9
Schedule of sensitivity analysis of fair value of the Company's MSR to certain key assumptions	A sensitivity analysis of the fair value of the Company’s MSR asset to certain key assumptions is presented in the following table (in thousands). June 30, December 31, 2018 2017 Constant prepayment rate: Impact of 10% adverse change $ (1,704) $ (1,948) Impact of 20% adverse change (3,473) (3,839) Discount rate: Impact of 10% adverse change (2,401) (2,135) Impact of 20% adverse change (4,604) (4,103)

Deposits (Tables)

Deposits (Tables)	6 Months Ended
	Jun. 30, 2018
Deposits
Summary of deposits	Deposits are summarized as follows (in thousands). June 30, December 31, 2018 2017 Noninterest-bearing demand $ 2,468,332 $ 2,411,849 Interest-bearing: NOW accounts 1,272,098 1,202,752 Money market 2,209,780 2,222,555 Brokered - money market 9,911 101,624 Demand 354,232 411,771 Savings 200,643 218,812 Time 1,298,626 1,313,482 Brokered - time — 95,274 $ 7,813,622 $ 7,978,119

Short-term Borrowings (Tables)

Short-term Borrowings (Tables)	6 Months Ended
	Jun. 30, 2018
Short-term borrowings
Schedule of short-term borrowings	Short-term borrowings are summarized as follows (in thousands). June 30, December 31, 2018 2017 Federal funds purchased $ 78,350 $ 101,775 Securities sold under agreements to repurchase 502,885 539,149 Federal Home Loan Bank 675,000 250,000 Short-term bank loans 354,500 315,500 $ 1,610,735 $ 1,206,424
Federal funds purchased and securities sold under agreements to repurchase.
Short-term borrowings
Schedule of short-term borrowings	Information concerning federal funds purchased and securities sold under agreements to repurchase is shown in the following tables (dollars in thousands). Six Months Ended June 30, 2018 2017 Average balance during the period $ 721,167 $ 500,830 Average interest rate during the period 1.63 % 0.86 % June 30, December 31, 2018 2017 Average interest rate at end of period 1.74 % 1.21 % Securities underlying the agreements at end of period: Carrying value $ 514,378 $ 581,636 Estimated fair value $ 531,130 $ 598,300
FHLB notes
Short-term borrowings
Schedule of short-term borrowings	Other information regarding FHLB short-term borrowings is shown in the following tables (dollars in thousands). Six Months Ended June 30, 2018 2017 Average balance during the period $ 117,956 $ 355,249 Average interest rate during the period 1.91 % 0.92 % June 30, December 31, 2018 2017 Average interest rate at end of period % %

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Payable
Schedule of notes payable	Notes payable consisted of the following (in thousands). June 30, December 31, 2018 2017 Senior Notes due April 2025, net of discount of $1,469 and $1,545, respectively $ 148,531 $ 148,455 FHLB notes, net of premium of $261 and $436, respectively, with maturities ranging from September 2020 to June 2030 4,603 19,402 NLIC note payable due May 2033 10,000 10,000 NLIC note payable due September 2033 10,000 10,000 ASIC note payable due April 2034 7,500 7,500 Insurance company line of credit due December 31, 2018 — 1,000 Ventures Management lines of credit due January 2019 47,102 12,452 $ 227,736 $ 208,809

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies
Schedule of roll-forward of claims activity for loans put-back to the mortgage origination segment	The following tables provide for a rollforward of claims activity for loans put-back to the mortgage origination segment based upon an alleged breach of a representation or warranty with respect to a loan sold and related indemnification liability reserve activity (in thousands). Representation and Warranty Specific Claims Activity - Origination Loan Balance Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 32,321 $ 39,245 $ 33,702 $ 40,669 Claims made 5,361 8,650 12,350 17,029 Claims resolved with no payment (5,892) (9,991) (11,753) (18,088) Repurchases (1,245) (226) (3,334) (1,688) Indemnification payments — (5,124) (420) (5,368) Balance, end of period $ 30,545 $ 32,554 $ 30,545 $ 32,554 Indemnification Liability Reserve Activity Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 23,332 $ 18,952 $ 23,472 $ 18,239 Additions for new sales 1,014 1,145 1,743 1,992 Repurchases (85) (23) (245) (125) Early payment defaults (41) (60) (188) (129) Indemnification payments (4) (671) (121) (713) Change in reserves for loans sold in prior years (306) 3,024 (751) 3,103 Balance, end of period $ 23,910 $ 22,367 $ 23,910 $ 22,367 June 30, December 31, 2018 2017 Reserve for Indemnification Liability: Specific claims $ 999 $ 646 Incurred but not reported claims 22,911 22,826 Total $ 23,910 $ 23,472

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Schedule of nonvested RSU activity	The following table summarizes information about nonvested RSU activity for the six months ended June 30, 2018 (shares in thousands). RSUs Weighted Average Grant Date Outstanding Fair Value Balance, December 31, 2017 1,318 $ 20.89 Granted 457 $ 23.37 Vested/Released (355) $ 19.79 Forfeited (100) $ 19.78 Balance, June 30, 2018 1,320 $ 22.13

Regulatory Matters (Tables)

Regulatory Matters (Tables)	6 Months Ended
	Jun. 30, 2018
Regulatory Matters
Schedule of comparison of the Plain Capital'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	Minimum Capital Requirements Including Conservation Buffer In Effect at Fully To Be Well Actual End of Period Phased In Capitalized Amount Ratio Ratio Ratio Ratio June 30, 2018 Tier 1 capital (to average assets): PlainsCapital $ 1,174,264 12.80 % 4.0 % 4.0 % 5.0 % Hilltop 1,689,009 12.90 % 4.0 % 4.0 % N/A Common equity Tier 1 capital (to risk-weighted assets): PlainsCapital 1,174,264 14.59 % 6.375 % 7.0 % 6.5 % Hilltop 1,643,623 17.61 % 6.375 % 7.0 % N/A Tier 1 capital (to risk-weighted assets): PlainsCapital 1,174,264 14.59 % 7.875 % 8.5 % 8.0 % Hilltop 1,689,009 18.10 % 7.875 % 8.5 % N/A Total capital (to risk-weighted assets): PlainsCapital 1,237,812 15.38 % 9.875 % 10.5 % 10.0 % Hilltop 1,733,360 18.58 % 9.875 % 10.5 % N/A Minimum Capital Requirements Including Conservation Buffer In Effect at Fully To Be Well Actual End of Period Phased In Capitalized Amount Ratio Ratio Ratio Ratio December 31, 2017 Tier 1 capital (to average assets): PlainsCapital $ 1,147,527 12.32 % 4.0 % 4.0 % 5.0 % Hilltop 1,688,358 12.94 % 4.0 % 4.0 % N/A Common equity Tier 1 capital (to risk-weighted assets): PlainsCapital 1,147,527 14.47 % 5.75 % 7.0 % 6.5 % Hilltop 1,639,009 17.71 % 5.75 % 7.0 % N/A Tier 1 capital (to risk-weighted assets): PlainsCapital 1,147,527 14.47 % 7.25 % 8.5 % 8.0 % Hilltop 1,688,358 18.24 % 7.25 % 8.5 % N/A Total capital (to risk-weighted assets): PlainsCapital 1,212,793 15.29 % 9.25 % 10.5 % 10.0 % Hilltop 1,738,325 18.78 % 9.25 % 10.5 % N/A
Schedule of net capital position	At June 30, 2018, the net capital position of each of the Hilltop Broker-Dealers was as follows (in thousands). HTS Hilltop Independent Securities Network Net capital $ 205,730 $ 3,362 Less: required net capital 11,427 250 Excess net capital $ 194,303 $ 3,112 Net capital as a percentage of aggregate debit items 36.0 % Net capital in excess of 5% aggregate debit items $ 177,161
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 of each insurance subsidiary is as follows (in thousands). June 30, December 31, 2018 2017 Capital and surplus: National Lloyds Insurance Company $ 93,578 $ 93,812 American Summit Insurance Company 23,910 22,778 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Statutory net income (loss): National Lloyds Insurance Company $ (2,633) $ (7,152) $ 1,134 $ (6,516) American Summit Insurance Company 394 (309) 1,283 523

Derivative Financial Instrume46

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Financial Instruments
Schedule of derivative positions	Derivative positions are presented in the following table (in thousands). June 30, 2018 December 31, 2017 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Derivative instruments: IRLCs $ 1,390,728 $ 31,475 $ 850,850 $ 18,851 Customer-based written options 30,889 (109) 21,637 38 Customer-based purchased options 30,889 109 21,637 (38) Commitments to purchase MBSs 3,153,297 7,297 2,831,635 (921) Commitments to sell MBSs 5,753,361 (13,112) 4,963,498 2,972 Interest rate swaps 24,102 211 25,971 51 U.S. Treasury bond futures and options (1) 198,000 — 214,500 — (1) Changes in the fair value of these contracts are settled daily with PrimeLending’s counterparty.

Balance Sheet Offsetting (Table

Balance Sheet Offsetting (Tables)	6 Months Ended
	Jun. 30, 2018
Balance Sheet Offsetting
Schedule of the assets subject to an enforceable master netting arrangement or repurchase agreements	The following tables present the assets and liabilities subject to enforceable master netting arrangements, repurchase agreements, or similar agreements with offsetting rights (in thousands). Gross Amounts Not Offset in Net Amounts the Balance Sheet Gross Amounts Gross Amounts of Assets Cash of Recognized Offset in the Presented in the Financial Collateral Net Assets Balance Sheet Balance Sheet Instruments Pledged Amount June 30, 2018 Securities borrowed: Institutional counterparties $ 1,491,182 $ — $ 1,491,182 $ (1,424,434) $ — $ 66,748 Interest rate options: Customer counterparties 109 — 109 — — 109 Interest rate swaps: Institutional counterparties 211 — 211 (909) — (698) Reverse repurchase agreements: Institutional counterparties 229,172 — 229,172 (228,049) — 1,123 Forward MBS derivatives: Institutional counterparties 7,297 — 7,297 (7,297) — — $ 1,727,971 $ — $ 1,727,971 $ (1,660,689) $ — $ 67,282 December 31, 2017 Securities borrowed: Institutional counterparties $ 1,386,821 $ — $ 1,386,821 $ (1,327,536) $ — $ 59,285 Interest rate options: Customer counterparties 38 — 38 — — 38 Reverse repurchase agreements: Institutional counterparties 186,537 — 186,537 (186,026) — 511 Forward MBS derivatives: Institutional counterparties 3,576 — 3,576 (3,576) — — $ 1,576,972 $ — $ 1,576,972 $ (1,517,138) $ — $ 59,834
Schedule of the liabilities subject to an enforceable master netting arrangement or repurchase agreements	Gross Amounts Not Offset in Net Amounts the Balance Sheet Gross Amounts Gross Amounts of Liabilities Cash of Recognized Offset in the Presented in the Financial Collateral Net Liabilities Balance Sheet Balance Sheet Instruments Pledged Amount June 30, 2018 Securities loaned: Institutional counterparties $ 1,316,128 $ — $ 1,316,128 $ (1,254,389) $ — $ 61,739 Interest rate options: Institutional counterparties 109 — 109 — — 109 Repurchase agreements: Institutional counterparties 418,566 — 418,566 (418,566) — — Customer counterparties 84,319 — 84,319 (84,319) — — Forward MBS derivatives: Institutional counterparties 14,050 (938) 13,112 (7,123) — 5,989 $ 1,833,172 $ (938) $ 1,832,234 $ (1,764,397) $ — $ 67,837 December 31, 2017 Securities loaned: Institutional counterparties $ 1,215,093 $ — $ 1,215,093 $ (1,157,198) $ — $ 57,895 Interest rate options: Institutional counterparties 38 — 38 — — 38 Interest rate swaps: Institutional counterparties 35 (86) (51) (1,059) — (1,110) Repurchase agreements: Institutional counterparties 409,058 — 409,058 (409,058) — — Customer counterparties 130,091 — 130,091 (130,091) — — Forward MBS derivatives: Institutional counterparties 2,696 (1,171) 1,525 (1,295) — 230 $ 1,757,011 $ (1,257) $ 1,755,754 $ (1,698,701) $ — $ 57,053
Schedule of contractual maturities of repurchase agreements and secured borrowing transactions	The following tables present the remaining contractual maturities of repurchase agreement and securities lending transactions accounted for as secured borrowings (in thousands). The Company had no repurchase-to-maturity transactions outstanding at both June 30, 2018 and December 31, 2017. Remaining Contractual Maturities Overnight and Greater Than June 30, 2018 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: U.S. Treasury and agency securities $ 145,005 $ — $ — $ — $ 145,005 Asset-backed securities 357,880 — — — 357,880 Securities lending transactions: Corporate securities 1,266 — — — 1,266 Equity securities 1,314,862 — — — 1,314,862 Total $ 1,819,013 $ — $ — $ — $ 1,819,013 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,819,013 Amount related to agreements not included in offsetting disclosure above $ — Remaining Contractual Maturities Overnight and Greater Than December 31, 2017 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: U.S. Treasury and agency securities $ 181,915 $ — $ — $ — $ 181,915 Asset-backed securities 357,234 — — — 357,234 Securities lending transactions: Corporate securities 11,499 — — — 11,499 Equity securities 1,203,594 — — — 1,203,594 Total $ 1,754,242 $ — $ — $ — $ 1,754,242 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,754,242 Amount related to agreements not included in offsetting disclosure above $ —

Broker-Dealer and Clearing Or48

Broker-Dealer and Clearing Organization Receivables and Payables (Tables)	6 Months Ended
	Jun. 30, 2018
Broker-Dealer and Clearing Organization Receivables and Payables
Schedule of broker-dealer and clearing organization receivables and payables	Broker-dealer and clearing organization receivables and payables consisted of the following (in thousands). June 30, December 31, 2018 2017 Receivables: Securities borrowed $ 1,491,182 $ 1,386,821 Securities failed to deliver 58,522 25,491 Trades in process of settlement 47,174 29,412 Other 18,073 22,654 $ 1,614,951 $ 1,464,378 Payables: Securities loaned $ 1,316,128 $ 1,215,093 Correspondents 26,537 30,160 Securities failed to receive 60,041 37,864 Other 7,198 4,446 $ 1,409,904 $ 1,287,563

Reserves for Losses and Loss 49

Reserves for Losses and Loss Adjustment Expenses (Tables)	6 Months Ended
	Jun. 30, 2018
Reserves for Losses and Loss Adjustment Expenses
Schedule of information regarding the reserve for unpaid losses and loss adjustment expenses ("LAE") as included in other liabilities within the consolidated balance sheets	A summary of NLC’s reserve for unpaid losses and LAE, as included in other liabilities within the consolidated balance sheets, is as follows (in thousands). June 30, December 31, 2018 2017 Reserve for unpaid losses and allocated LAE balance, net $ 21,004 $ 17,470 Reinsurance recoverables on unpaid losses 6,091 11,495 Unallocated LAE 1,148 1,248 Reserve for unpaid losses and LAE balance, gross $ 28,243 $ 30,213
Summary of claims loss reserve development activity	A summary of claims loss reserve development activity is presented in the following table (dollars in thousands). June 30, 2018 Total of IBNR Reserves Plus Expected Cumulative Accident Six Months Ended June 30, 2018 Development on Number of Year Paid Incurred Reported Claims Reported Claims 2014 83,640 84,050 13,150 2015 86,175 87,205 410 15,121 2016 82,671 84,614 1,490 21,451 2017 85,089 89,107 2,659 21,308 2018 23,338 36,431 5,669 5,779 Total 360,913 $ 381,407 510 All outstanding reserves prior to 2014, net of reinsurance $ 21,004 Reserve for unpaid losses and allocated LAE, net of reinsurance

Reinsurance Activity (Tables)

Reinsurance Activity (Tables)	6 Months Ended
	Jun. 30, 2018
Reinsurance Activity
Schedule of effects of reinsurance on premiums written and earned	The effects of reinsurance on premiums written and earned are summarized as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Written Earned Written Earned Written Earned Written Earned Premiums from direct business $ 35,801 $ 33,372 $ 37,792 $ 36,753 $ 68,886 $ 66,740 $ 73,588 $ 73,952 Reinsurance assumed 3,567 3,111 3,358 2,910 6,609 6,111 6,227 5,728 Reinsurance ceded (2,335) (2,378) (2,974) (3,643) (4,345) (4,431) (6,187) (7,520) Net premiums $ 37,033 $ 34,105 $ 38,176 $ 36,020 $ 71,150 $ 68,420 $ 73,628 $ 72,160
Schedule of effects of reinsurance on incurred losses	The effects of reinsurance on incurred losses are as follows (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Losses and LAE incurred $ 23,869 $ 33,352 $ 37,321 $ 55,654 Reinsurance recoverables 540 (168) 2,620 (770) Net loss and LAE incurred $ 24,409 $ 33,184 $ 39,941 $ 54,884

Segment and Related Informati51

Segment and Related Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment and Related Information
Schedule of information about the segment revenues, operating results, goodwill, and assets of entity's reportable segments	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, 2018 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 87,958 $ 12,890 $ 704 $ 793 $ (2,482) $ 4,985 $ 104,848 Provision for loan losses — 340 — — — — 340 Noninterest income 10,644 73,589 162,759 36,546 1,436 (5,540) 279,434 Noninterest expense 65,542 77,967 150,026 39,712 5,340 (70) 338,517 Income (loss) before income taxes $ 33,060 $ 8,172 $ 13,437 $ (2,373) $ (6,386) $ (485) $ 45,425 Mortgage All Other and Hilltop Six Months Ended June 30, 2018 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 174,596 $ 25,441 $ 1,645 $ 1,580 $ (4,573) $ 9,579 $ 208,268 Provision (recovery) for loan losses (1,531) 64 — — — — (1,467) Noninterest income 20,823 142,135 289,862 71,564 724 (10,531) 514,577 Noninterest expense 124,913 155,743 280,729 70,725 14,743 (134) 646,719 Income (loss) before income taxes $ 72,037 $ 11,769 $ 10,778 $ 2,419 $ (18,592) $ (818) $ 77,593 Mortgage All Other and Hilltop Three Months Ended June 30, 2017 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 102,191 $ 10,349 $ 996 $ 602 $ (2,288) $ 4,126 $ 115,976 Provision for loan losses 5,405 448 — — — — 5,853 Noninterest income 25,499 92,810 179,637 38,413 12,608 (4,275) 344,692 Noninterest expense 62,511 86,901 161,369 49,416 6,298 (244) 366,251 Income (loss) before income taxes $ 59,774 $ 15,810 $ 19,264 $ (10,401) $ 4,022 $ 95 $ 88,564 Mortgage All Other and Hilltop Six Months Ended June 30, 2017 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 184,274 $ 18,837 $ (885) $ 1,119 $ (4,823) $ 9,554 $ 208,076 Provision for loan losses 7,241 316 — — — 1 7,558 Noninterest income 37,910 175,362 323,275 76,723 12,609 (9,748) 616,131 Noninterest expense 123,325 168,558 293,207 86,429 15,685 (461) 686,743 Income (loss) before income taxes $ 91,618 $ 25,325 $ 29,183 $ (8,587) $ (7,899) $ 266 $ 129,906 Mortgage All Other and Hilltop Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated June 30, 2018 Goodwill $ 207,741 $ 7,008 $ 13,071 $ 23,988 $ — $ — $ 251,808 Total assets $ 9,778,476 $ 3,445,391 $ 2,171,149 $ 292,186 $ 2,078,735 $ (4,076,763) $ 13,689,174 December 31, 2017 Goodwill $ 207,741 $ 7,008 $ 13,071 $ 23,988 $ — $ — $ 251,808 Total assets $ 9,558,718 $ 3,394,911 $ 1,937,327 $ 291,639 $ 2,106,978 $ (3,923,787) $ 13,365,786

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings per Common Share
Schedule of the computation of basic and diluted earnings per common share	The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic earnings per share: Income attributable to Hilltop $ 33,080 $ 62,476 $ 57,521 $ 88,910 Less: income applicable to participating shares — (2) — (3) Net earnings available to Hilltop common stockholders $ 33,080 $ 62,474 $ 57,521 $ 88,907 Weighted average shares outstanding - basic 95,270 98,154 95,625 98,295 Basic earnings per common share $ 0.35 $ 0.64 $ 0.60 $ 0.90 Diluted earnings per share: Income attributable to Hilltop $ 33,080 $ 62,476 $ 57,521 $ 88,910 Weighted average shares outstanding - basic 95,270 98,154 95,625 98,295 Effect of potentially dilutive securities 88 260 102 281 Weighted average shares outstanding - diluted 95,358 98,414 95,727 98,576 Diluted earnings per common share $ 0.35 $ 0.63 $ 0.60 $ 0.90

Summary of Significant Accoun53

Summary of Significant Accounting and Reporting Policies - Basis of Presentation, Ownership (Details) $ in Thousands	Feb. 13, 2018USD ($)	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
Basis of Presentation
Number of primary business units | item		3
Assets		$ 13,689,174	$ 13,365,786
Deposits		$ 7,813,622	7,978,119
BORO
Basis of Presentation
Aggregate purchase price, cash	$ 85,000
PPC
Basis of Presentation
Ownership percentage		100.00%
Securities Holdings
Basis of Presentation
Ownership percentage		100.00%
NLC
Basis of Presentation
Ownership percentage		100.00%
PPC | PlainsCapital
Basis of Presentation
Ownership percentage		100.00%
PPC | Hilltop Opportunity Partners LLC
Basis of Presentation
Membership ownership percentage		100.00%
PPC | PCC Statutory Trusts
Basis of Presentation
Ownership percentage		100.00%
PlainsCapital | PrimeLending
Basis of Presentation
Ownership percentage		100.00%
PrimeLending | Ventures Management
Basis of Presentation
Membership ownership percentage		100.00%
BORO
Basis of Presentation
Assets			454,400
Loans			343,600
Deposits			$ 406,100

Recently Issued Accounting St54

Recently Issued Accounting Standards (Details) $ in Thousands	Jun. 30, 2018USD ($)item	Jan. 01, 2018USD ($)	Dec. 31, 2017USD ($)
Recent Accounting Pronouncements
Accumulated other comprehensive income (loss)	$ (11,846)		$ (394)
Retained earnings	419,683		384,545
Equity securities	21,218		21,241
Other equity investments	$ 42,200		$ 38,700
Broker-Dealer
Recent Accounting Pronouncements
Number of primary lines of business | item	6
Banking
Recent Accounting Pronouncements
Number of primary lines of business | item	3
ASU 2018-02 | Other Assets
Recent Accounting Pronouncements
Other equity investments	$ 42,200
Adjustment | ASU 2018-02
Recent Accounting Pronouncements
Accumulated other comprehensive income (loss)		$ (100)
Retained earnings		100
Adjustment | ASU 2016-01
Recent Accounting Pronouncements
Accumulated other comprehensive income (loss)		(2,500)
Retained earnings		2,500
Equity securities		21,200
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09
Recent Accounting Pronouncements
Retained earnings		$ 0

Fair Value Measurements - FV Op

Fair Value Measurements - FV Option (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Fair Value Measurements
Mortgage loans held for sale, fair value	$ 1,810	$ 1,580
Mortgage loans held for sale, unpaid principal balance	$ 1,750	$ 1,530

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial assets:
Trading securities	$ 634,197	$ 730,685
Available for sale securities	811,218	744,319
Equity securities	21,218	21,241
Financial liabilities:
Securities sold, not yet purchased	251,581	232,821
Recurring
Financial assets:
Trading securities	634,197	730,685
Available for sale securities	811,218	744,319
Equity securities	21,218	21,241
Loans held for sale	1,814,114	1,581,603
Derivative assets	56,050	34,150
MSR asset	57,373	54,714
Financial liabilities:
Securities sold, not yet purchased	251,581	232,821
Derivative liabilities	30,179	13,197
Recurring | Level 1
Financial assets:
Trading securities	1,051	3,329
Equity securities	21,218	21,241
Financial liabilities:
Securities sold, not yet purchased	183,714	156,586
Recurring | Level 2
Financial assets:
Trading securities	633,146	727,356
Available for sale securities	811,218	744,319
Loans held for sale	1,773,333	1,544,631
Derivative assets	56,050	34,150
Financial liabilities:
Securities sold, not yet purchased	67,867	76,235
Derivative liabilities	30,179	13,197
Recurring | Level 3
Financial assets:
Loans held for sale	40,781	36,972
MSR asset	$ 57,373	$ 54,714

Fair Value Measurements - Roll

Fair Value Measurements - Roll Forward, Level 3 (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Rollforward for financial instruments measured at fair value using Level 3 inputs
Asset balance, beginning of period	$ 107,440	$ 75,787	$ 91,686	$ 97,769
Purchases/Additions	11,139	9,941	30,279	18,993
Sales/Reductions	(17,841)	(6,722)	(21,816)	(34,922)
Total gains or losses (realized or unrealized):
Included in Net Income	(2,584)	(5,389)	(1,995)	(8,223)
Asset balance, end of period	98,154	73,617	98,154	73,617
Loans Held for Sale
Rollforward for financial instruments measured at fair value using Level 3 inputs
Asset balance, beginning of period	43,483	30,214	36,972	35,801
Purchases/Additions	8,071	8,675	20,550	16,503
Sales/Reductions	(8,538)	(6,722)	(12,513)	(17,423)
Total gains or losses (realized or unrealized):
Included in Net Income	(2,235)	(2,130)	(4,228)	(4,844)
Asset balance, end of period	40,781	30,037	40,781	30,037
MSR
Rollforward for financial instruments measured at fair value using Level 3 inputs
Asset balance, beginning of period	63,957	45,573	54,714	61,968
Purchases/Additions	3,068	1,266	9,729	2,490
Sales/Reductions	(9,303)		(9,303)	(17,499)
Total gains or losses (realized or unrealized):
Included in Net Income	(349)	(3,259)	2,233	(3,379)
Asset balance, end of period	$ 57,373	$ 43,580	$ 57,373	$ 43,580

Fair Value Measurements - Level

Fair Value Measurements - Level 3, Inputs, Recurring (Details) - Level 3 - Recurring - Discounted cash flow	6 Months Ended
	Jun. 30, 2018
Loans Held for Sale | Weighted average
Significant unobservable inputs used in the fair value measurements
Projected price (as a percent)	94.00%
Loans Held for Sale | Minimum
Significant unobservable inputs used in the fair value measurements
Projected price (as a percent)	94.00%
Loans Held for Sale | Maximum
Significant unobservable inputs used in the fair value measurements
Projected price (as a percent)	97.00%
MSR | Weighted average
Significant unobservable inputs used in the fair value measurements
Constant prepayment rate (as a percent)	9.27%
Discount rates (as a percent)	11.09%

Fair Value Measurements - Chang

Fair Value Measurements - Change in FV (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Fair Value, Transfers Between Level 1 and Level 2
Transfers of assets from level 1 to level 2	$ 0	$ 0	$ 0	$ 0
Transfers of assets from level 2 to level 1	0	0	0	0
Transfers of liabilities from level 1 to level 2	0	0	0	0
Transfers of liabilities from level 2 to level 1	0	0	0	0
Fair Value Option
Net Gains (Losses)	132,478	153,688	238,245	277,838
Other Noninterest Income	23,248	65,667	40,612	96,001
Loans Held for Sale
Fair Value Option
Net Gains (Losses)	22,604	22,231	7,724	31,093
Total Changes in Fair Value	22,604	22,231	7,724	31,093
MSR
Fair Value Option
Net Gains (Losses)	(349)	(3,259)	2,233	(3,379)
Total Changes in Fair Value	$ (349)	$ (3,259)	$ 2,233	$ (3,379)

Fair Value Measurements - Impai

Fair Value Measurements - Impaired Loans (Details) - Level 3 - PCI loans - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jan. 01, 2015	Sep. 13, 2013	Nov. 30, 2012
PPC
Fair value measurements
Fair value of loans acquired				$ 172.9
PPC | Weighted average
Fair Value Inputs [Abstract]
Weighted average default rate	81.00%
Weighted average loss severity rate	66.00%
Weighted average prepayment speed	0.00%
Weighted average expected loss	54.00%
FNB
Fair value measurements
Fair value of loans acquired			$ 822.8
FNB | Weighted average
Fair Value Inputs [Abstract]
Weighted average default rate	38.00%
Weighted average loss severity rate	15.00%
Weighted average prepayment speed	6.00%
Weighted average expected loss	6.00%
SWS
Fair value measurements
Fair value of loans acquired		$ 73.5
SWS | Weighted average
Fair Value Inputs [Abstract]
Weighted average default rate	69.00%
Weighted average loss severity rate	29.00%
Weighted average prepayment speed	0.00%
Weighted average expected loss	20.00%

Fair Value Measurements - OREO

Fair Value Measurements - OREO (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 13, 2013
Fair Value
Non-covered impaired loans	$ 6,324,664		$ 6,324,664			$ 6,212,712
Covered impaired loans	158,996		158,996			179,400
Covered other real estate owned	34,895	$ 42,304	34,895	$ 42,304	$ 35,777	36,744	$ 45,374	$ 51,642
Total Gains (Losses) of impaired loans	(340)	(5,853)	1,467	(7,558)
Covered
Fair Value
Covered impaired loans	158,996		158,996			179,400
Total Gains (Losses) of impaired loans	795	(960)	704	(1,456)
Noncovered
Fair Value
Non-covered impaired loans	6,324,664		6,324,664			6,212,712
Total Gains (Losses) of impaired loans	(1,135)	(4,893)	763	(6,102)
Estimate of Fair Value
Fair Value
Non-covered impaired loans	6,412,219		6,412,219			6,406,757
Covered impaired loans	234,533		234,533			269,386
Level 2 | Estimate of Fair Value
Fair Value
Non-covered impaired loans	600,162		600,162			577,889
Level 2 | Estimate of Fair Value | Covered
Fair Value
Covered other real estate owned	34,900		34,900			36,700
Level 2 | Estimate of Fair Value | Noncovered | Other Assets
Fair Value
Non-covered other real estate owned	2,900		2,900			3,900
Level 3 | Estimate of Fair Value
Fair Value
Non-covered impaired loans	5,812,057		5,812,057			5,828,868
Covered impaired loans	234,533		234,533			$ 269,386
Nonrecurring | Estimate of Fair Value | Covered
Fair Value
Covered impaired loans	72,953		72,953
Covered other real estate owned	15,996		15,996
Total Gains (Losses) of impaired loans	844	(611)	746	(977)
Total Gains (Losses) of other real estate owned	(669)	(943)	(1,724)	(2,135)
Nonrecurring | Estimate of Fair Value | Noncovered
Fair Value
Non-covered impaired loans	19,465		19,465
Non-covered other real estate owned	225		225
Total Gains (Losses) of impaired loans	(1,446)	(274)	(1,471)	(470)
Total Gains (Losses) of other real estate owned	(25)	$ (108)	(76)	$ (123)
Nonrecurring | Level 2 | FNB | Covered | PlainsCapital
Fair value measurements
Acquired OREO									$ 135,200
Nonrecurring | Level 2 | Estimate of Fair Value | Covered
Fair Value
Covered other real estate owned	15,996		15,996
Nonrecurring | Level 2 | Estimate of Fair Value | Noncovered
Fair Value
Non-covered other real estate owned	225		225
Nonrecurring | Level 3 | Estimate of Fair Value | Covered
Fair Value
Covered impaired loans	72,953		72,953
Nonrecurring | Level 3 | Estimate of Fair Value | Noncovered
Fair Value
Non-covered impaired loans	$ 19,465		$ 19,465

Fair Value Measurements - Estim

Fair Value Measurements - Estimated Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Financial assets:
Held to maturity securities	$ 339,702		$ 349,939
Non-covered loans, net	6,324,664		6,212,712
Covered loans, net	158,996		179,400
Broker-dealer and clearing organization receivables	1,614,951		1,464,378
FDIC indemnification asset	23,525	$ 25,458	29,340	$ 40,304	$ 47,940	$ 71,313
Financial liabilities:
Broker-dealer and clearing organization payables	1,409,904		1,287,563
Carrying Amount
Financial assets:
Cash and cash equivalents	353,835		487,382
Securities purchased under agreements to resell	229,172		186,537
Assets segregated for regulatory purposes	128,417		186,578
Held to maturity securities	353,192		355,849
Loans held for sale	139,448		133,754
Non-covered loans, net	6,324,664		6,212,712
Covered loans, net	158,996		179,400
Broker-dealer and clearing organization receivables	1,614,951		1,464,378
FDIC indemnification asset	23,525		29,340
Other assets	66,245		64,862
Financial liabilities:
Deposits	7,813,622		7,978,119
Broker-dealer and clearing organization payables	1,409,904		1,287,563
Short-term borrowings	1,610,735		1,206,424
Debt	294,748		275,821
Other liabilities	4,583		4,795
Estimate of Fair Value
Financial assets:
Cash and cash equivalents	353,835		487,382
Securities purchased under agreements to resell	229,172		186,537
Assets segregated for regulatory purposes	128,417		186,578
Held to maturity securities	339,702		349,939
Loans held for sale	139,448		133,754
Non-covered loans, net	6,412,219		6,406,757
Covered loans, net	234,533		269,386
Broker-dealer and clearing organization receivables	1,614,951		1,464,378
FDIC indemnification asset	17,787		20,122
Other assets	66,245		64,862
Financial liabilities:
Deposits	7,802,515		7,973,101
Broker-dealer and clearing organization payables	1,409,904		1,287,563
Short-term borrowings	1,610,735		1,206,424
Debt	292,494		289,719
Other liabilities	4,583		4,795
Estimate of Fair Value | Level 1
Financial assets:
Cash and cash equivalents	353,835		487,382
Assets segregated for regulatory purposes	128,417		186,578
Estimate of Fair Value | Level 2
Financial assets:
Securities purchased under agreements to resell	229,172		186,537
Held to maturity securities	339,702		349,939
Loans held for sale	139,448		133,754
Non-covered loans, net	600,162		577,889
Broker-dealer and clearing organization receivables	1,614,951		1,464,378
Other assets	65,951		59,053
Financial liabilities:
Deposits	7,802,515		7,973,101
Broker-dealer and clearing organization payables	1,409,904		1,287,563
Short-term borrowings	1,610,735		1,206,424
Debt	292,494		289,719
Other liabilities	4,583		4,795
Estimate of Fair Value | Level 3
Financial assets:
Non-covered loans, net	5,812,057		5,828,868
Covered loans, net	234,533		269,386
FDIC indemnification asset	17,787		20,122
Other assets	$ 294		$ 5,809

Fair Value Measurements - Adjus

Fair Value Measurements - Adjustments to the carrying value of investments (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Fair Value Measurements
Other equity investments	$ 42,200	$ 42,200	$ 38,700
Adjustments to the carrying value of these investments
Balance, beginning of period	21,906	22,946
Impairments and downward adjustments	(2)	(1,314)
Additional investments and upward adjustments	4,247	4,519
Balance, end of period	$ 26,151	$ 26,151

Securities - Trading Securities

Securities - Trading Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of fair value of trading securities
Trading Securities	$ 634,197	$ 730,685
Investment-related Liabilities
Securities sold, not yet purchased, at fair value	251,581	232,821
US Treasury Securities
Schedule of fair value of trading securities
Trading Securities	1,033
Bonds
Schedule of fair value of trading securities
Trading Securities	57,996	52,078
Residential mortgage-backed Securities
Schedule of fair value of trading securities
Trading Securities	338,892	372,817
Commercial mortgage-backed securities
Schedule of fair value of trading securities
Trading Securities	8,664	6,125
Collateralized mortgage obligations
Schedule of fair value of trading securities
Trading Securities	1	5,122
Corporate securities
Schedule of fair value of trading securities
Trading Securities	80,361	96,182
States and political subdivisions
Schedule of fair value of trading securities
Trading Securities	112,646	170,413
Unit investment trusts
Schedule of fair value of trading securities
Trading Securities	27,480	22,612
Private-label securitized product
Schedule of fair value of trading securities
Trading Securities	3,684	1,631
Other
Schedule of fair value of trading securities
Trading Securities	$ 3,440	$ 3,705

Securities - AFS and HTM, Amort

Securities - AFS and HTM, Amortized Cost and FV (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Available for sale
Total amortized cost	$ 826,515	$ 826,515	$ 748,255
Gross Unrealized Gains	1,914	1,914	4,603
Gross Unrealized Losses	(17,211)	(17,211)	(8,539)
Fair Value	811,218	811,218	744,319
Held to maturity
Amortized cost	353,192	353,192	355,849
Unrealized Gains	69	69	741
Unrealized Losses	(13,559)	(13,559)	(6,651)
Held to maturity, fair value	339,702	339,702	349,939
Unrealized net gains from equity securities		1,000	1,600
Equity, at fair value	21,218	21,218	21,241
Recognized net gain (loss) on equity securities	100	(500)
US Treasury Securities
Available for sale
Total amortized cost	34,671	34,671	24,665
Gross Unrealized Gains			107
Gross Unrealized Losses	(123)	(123)	(103)
Fair Value	34,548	34,548	24,669
Bonds
Available for sale
Total amortized cost	70,258	70,258	96,177
Gross Unrealized Gains	417	417	829
Gross Unrealized Losses	(736)	(736)	(366)
Fair Value	69,939	69,939	96,640
Held to maturity
Amortized cost	39,016	39,016	39,015
Unrealized Losses	(2,007)	(2,007)	(1,188)
Held to maturity, fair value	37,009	37,009	37,827
Residential mortgage-backed Securities
Available for sale
Total amortized cost	311,305	311,305	246,707
Gross Unrealized Gains	232	232	538
Gross Unrealized Losses	(8,749)	(8,749)	(3,740)
Fair Value	302,788	302,788	243,505
Held to maturity
Amortized cost	24,051	24,051	16,130
Unrealized Gains			44
Unrealized Losses	(483)	(483)
Held to maturity, fair value	23,568	23,568	16,174
Commercial mortgage-backed securities
Available for sale
Total amortized cost	11,817	11,817	11,966
Gross Unrealized Gains	11	11	105
Gross Unrealized Losses	(250)	(250)	(48)
Fair Value	11,578	11,578	12,023
Held to maturity
Amortized cost	79,776	79,776	71,373
Unrealized Gains			241
Unrealized Losses	(2,509)	(2,509)	(735)
Held to maturity, fair value	77,267	77,267	70,879
Collateralized mortgage obligations
Available for sale
Total amortized cost	283,370	283,370	237,848
Gross Unrealized Gains	266	266	106
Gross Unrealized Losses	(6,594)	(6,594)	(4,142)
Fair Value	277,042	277,042	233,812
Held to maturity
Amortized cost	157,000	157,000	173,928
Unrealized Gains			19
Unrealized Losses	(6,646)	(6,646)	(3,969)
Held to maturity, fair value	150,354	150,354	169,978
Corporate securities
Available for sale
Total amortized cost	57,162	57,162	66,868
Gross Unrealized Gains	331	331	1,819
Gross Unrealized Losses	(505)	(505)	(25)
Fair Value	56,988	56,988	68,662
States and political subdivisions
Available for sale
Total amortized cost	57,932	57,932	64,024
Gross Unrealized Gains	657	657	1,099
Gross Unrealized Losses	(254)	(254)	(115)
Fair Value	58,335	58,335	65,008
Held to maturity
Amortized cost	53,349	53,349	55,403
Unrealized Gains	69	69	437
Unrealized Losses	(1,914)	(1,914)	(759)
Held to maturity, fair value	$ 51,504	$ 51,504	$ 55,081

Securities - AFS in an Unrealiz

Securities - AFS in an Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item
Number of Securities
Unrealized loss for less than twelve months | item	100	58
Unrealized loss for twelve months or longer | item	39	38
Total | item	139	96
Fair Value
Unrealized loss for less than twelve months	$ 445,818	$ 328,881
Unrealized loss for twelve months or longer	172,343	180,876
Total	618,161	509,757
Unrealized Loss
Unrealized loss for less than twelve months	8,269	2,244
Unrealized loss for twelve months or longer	8,942	6,295
Total	$ 17,211	$ 8,539
US Treasury Securities
Number of Securities
Unrealized loss for less than twelve months | item	8	6
Unrealized loss for twelve months or longer | item	3	1
Total | item	11	7
Fair Value
Unrealized loss for less than twelve months	$ 31,388	$ 15,449
Unrealized loss for twelve months or longer	3,159	4,150
Total	34,547	19,599
Unrealized Loss
Unrealized loss for less than twelve months	103	69
Unrealized loss for twelve months or longer	20	34
Total	$ 123	$ 103
Bonds
Number of Securities
Unrealized loss for less than twelve months | item	7	10
Total | item	7	10
Fair Value
Unrealized loss for less than twelve months	$ 57,133	$ 83,476
Total	57,133	83,476
Unrealized Loss
Unrealized loss for less than twelve months	736	366
Total	$ 736	$ 366
Residential mortgage-backed Securities
Number of Securities
Unrealized loss for less than twelve months | item	24	15
Unrealized loss for twelve months or longer | item	10	11
Total | item	34	26
Fair Value
Unrealized loss for less than twelve months	$ 190,497	$ 121,968
Unrealized loss for twelve months or longer	76,637	93,358
Total	267,134	215,326
Unrealized Loss
Unrealized loss for less than twelve months	4,443	820
Unrealized loss for twelve months or longer	4,306	2,920
Total	$ 8,749	$ 3,740
Commercial mortgage-backed securities
Number of Securities
Unrealized loss for less than twelve months | item	2	1
Total | item	2	1
Fair Value
Unrealized loss for less than twelve months	$ 8,654	$ 5,048
Total	8,654	5,048
Unrealized Loss
Unrealized loss for less than twelve months	250	48
Total	$ 250	$ 48
Collateralized mortgage obligations
Number of Securities
Unrealized loss for less than twelve months | item	22	16
Unrealized loss for twelve months or longer | item	19	17
Total | item	41	33
Fair Value
Unrealized loss for less than twelve months	$ 111,616	$ 90,886
Unrealized loss for twelve months or longer	90,124	80,492
Total	201,740	171,378
Unrealized Loss
Unrealized loss for less than twelve months	2,003	819
Unrealized loss for twelve months or longer	4,591	3,323
Total	$ 6,594	$ 4,142
Corporate securities
Number of Securities
Unrealized loss for less than twelve months | item	16	1
Total | item	16	1
Fair Value
Unrealized loss for less than twelve months	$ 34,019	$ 5,073
Total	34,019	5,073
Unrealized Loss
Unrealized loss for less than twelve months	505	25
Total	$ 505	$ 25
States and political subdivisions
Number of Securities
Unrealized loss for less than twelve months | item	21	9
Unrealized loss for twelve months or longer | item	7	9
Total | item	28	18
Fair Value
Unrealized loss for less than twelve months	$ 12,511	$ 6,981
Unrealized loss for twelve months or longer	2,423	2,876
Total	14,934	9,857
Unrealized Loss
Unrealized loss for less than twelve months	229	97
Unrealized loss for twelve months or longer	25	18
Total	$ 254	$ 115

Securities - HTM in an Unrealiz

Securities - HTM in an Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item
Number of Securities
Unrealized loss for less than twelve months | item	89	40
Unrealized loss for twelve months or longer | item	65	63
Total | item	154	103
Fair Value
Unrealized loss for less than twelve months	$ 145,379	$ 93,489
Unrealized loss for twelve months or longer	178,868	191,404
Total	324,247	284,893
Unrealized Losses
Unrealized loss for less than twelve months	3,720	656
Unrealized loss for twelve months or longer	9,839	5,995
Total	$ 13,559	$ 6,651
Bonds
Number of Securities
Unrealized loss for less than twelve months | item	1	1
Unrealized loss for twelve months or longer | item	3	3
Total | item	4	4
Fair Value
Unrealized loss for less than twelve months	$ 5,714	$ 5,950
Unrealized loss for twelve months or longer	31,295	31,877
Total	37,009	37,827
Unrealized Losses
Unrealized loss for less than twelve months	286	50
Unrealized loss for twelve months or longer	1,721	1,138
Total	$ 2,007	$ 1,188
Residential mortgage-backed Securities
Number of Securities
Unrealized loss for less than twelve months | item	4
Total | item	4
Fair Value
Unrealized loss for less than twelve months	$ 23,568
Total	23,568
Unrealized Losses
Unrealized loss for less than twelve months	483
Total	$ 483
Commercial mortgage-backed securities
Number of Securities
Unrealized loss for less than twelve months | item	15	7
Unrealized loss for twelve months or longer | item	2	2
Total | item	17	9
Fair Value
Unrealized loss for less than twelve months	$ 58,293	$ 39,396
Unrealized loss for twelve months or longer	12,188	12,659
Total	70,481	52,055
Unrealized Losses
Unrealized loss for less than twelve months	1,737	271
Unrealized loss for twelve months or longer	773	464
Total	$ 2,510	$ 735
Collateralized mortgage obligations
Number of Securities
Unrealized loss for less than twelve months | item	11	10
Unrealized loss for twelve months or longer | item	14	12
Total | item	25	22
Fair Value
Unrealized loss for less than twelve months	$ 32,718	$ 37,064
Unrealized loss for twelve months or longer	117,636	128,270
Total	150,354	165,334
Unrealized Losses
Unrealized loss for less than twelve months	816	264
Unrealized loss for twelve months or longer	5,829	3,705
Total	$ 6,645	$ 3,969
States and political subdivisions
Number of Securities
Unrealized loss for less than twelve months | item	58	22
Unrealized loss for twelve months or longer | item	46	46
Total | item	104	68
Fair Value
Unrealized loss for less than twelve months	$ 25,086	$ 11,079
Unrealized loss for twelve months or longer	17,749	18,598
Total	42,835	29,677
Unrealized Losses
Unrealized loss for less than twelve months	398	71
Unrealized loss for twelve months or longer	1,516	688
Total	$ 1,914	$ 759

Securities - Equity Securities

Securities - Equity Securities Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2017USD ($)item
Number of securities
Unrealized loss for less than twelve months | item	1
Unrealized loss for twelve months or longer | item	1
Total | item	2
Fair Value
Unrealized loss for less than twelve months	$ 944
Unrealized loss for twelve months or longer	6,800
Total	7,744
Unrealized Losses
Unrealized loss for less than twelve months	13
Unrealized loss for twelve months or longer	103
Total	$ 116

Securities - AFS Contractual Ma

Securities - AFS Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
AFS, Amortized Cost, Rolling Maturity
Due in one year or less	$ 87,491
Due after one year through five years	97,703
Due after five years through ten years	15,283
Due after ten years	19,546
Total	220,023
Total amortized cost	826,515	$ 748,255
AFS, Fair Value, Rolling Maturity
Due in one year or less	87,501
Due after one year through five years	97,369
Due after five years through ten years	14,897
Due after ten years	20,043
Total	219,810
Fair Value	811,218	744,319
Residential mortgage-backed Securities
AFS, Amortized Cost, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	311,305
Total amortized cost	311,305	246,707
AFS, Fair Value, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	302,788
Fair Value	302,788	243,505
Collateralized mortgage obligations
AFS, Amortized Cost, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	283,370
Total amortized cost	283,370	237,848
AFS, Fair Value, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	277,042
Fair Value	277,042	$ 233,812
Commercial mortgage-backed Securities
AFS, Amortized Cost, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	11,817
AFS, Fair Value, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	$ 11,578

Securities - HTM Contractual Ma

Securities - HTM Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
HTM, Amortized Cost, Rolling Maturities
Due in one year or less	$ 2,253
Due after one year through five years	12,819
Due after five years through ten years	17,568
Due after ten years	59,725
Total	92,365
Amortized cost	353,192	$ 355,849
HTM, Fair Value, Rolling Maturities
Due in one year or less	2,252
Due after one year through five years	12,381
Due after five years through ten years	16,722
Due after ten years	57,158
Total	88,513
Fair Value	339,702	349,939
Residential mortgage-backed Securities
HTM, Amortized Cost, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	24,051
Amortized cost	24,051	16,130
HTM, Fair Value, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	23,568
Fair Value	23,568	16,174
Collateralized mortgage obligations
HTM, Amortized Cost, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	157,000
Amortized cost	157,000	173,928
HTM, Fair Value, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	150,354
Fair Value	150,354	$ 169,978
Commercial mortgage-backed Securities
HTM, Amortized Cost, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	79,776
HTM, Fair Value, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	$ 77,267

Securities - Additional Informa

Securities - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Securities
Realized net gains from trading securities portfolio	$ 6.8	$ 7	$ 1.9	$ 12.9
Carrying amount of securities pledged	630.2		630.2		$ 738.5
Fair value of securities pledged	613.6		613.6		730.1
Hilltop Broker-Dealers
Securities
Realized net gains from trading securities portfolio	0.4	$ 10.5	17.4	$ 17
NLC
Securities
Deposit with various state insurance departments	$ 9.3		$ 9.3		$ 9.3

Non-Covered Loans and Allowan72

Non-Covered Loans and Allowance for Non-Covered Loan Losses - Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Loans
Total loans	$ 6,384,660		$ 6,273,669
Allowance for loan losses	(59,996)		(60,957)
Non-covered loans, net	6,324,664		6,212,712
Noncovered
Loans
Total loans	6,384,660		6,273,669
Allowance for loan losses	(59,996)	$ (60,371)	(60,957)	$ (59,208)	$ (55,157)	$ (54,186)
Non-covered loans, net	6,324,664		6,212,712
Noncovered | Commercial and industrial
Loans
Total loans	1,655,431		1,681,205
Allowance for loan losses	(23,517)	(23,269)	(23,674)	(21,834)	(21,679)	(21,369)
Noncovered | Real estate
Loans
Total loans	3,142,496		3,011,524
Allowance for loan losses	(28,584)	(29,300)	(28,775)	(28,734)	(26,112)	(25,236)
Noncovered | Construction and land development
Loans
Total loans	948,309		962,605
Allowance for loan losses	(7,271)	(7,449)	(7,844)	(7,645)	(6,879)	(7,002)
Noncovered | Consumer
Loans
Total loans	38,262		40,446
Allowance for loan losses	(207)	(276)	(311)	(524)	(464)	(424)
Noncovered | Broker-dealer
Loans
Total loans	600,162		577,889
Allowance for loan losses	$ (417)	$ (77)	$ (353)	$ (471)	$ (23)	$ (155)

Non-Covered Loans and Allowan73

Non-Covered Loans and Allowance for Non-Covered Loan Losses - PCI Loans (Details) - PCI loans - Noncovered - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Carrying values and the outstanding contractual balances of the PCI loans
Carrying amount	$ 26,665		$ 26,665		$ 37,204
Outstanding balance	39,714		39,714		51,064
Changes in the accretable yield for the acquired impaired loans
Balance, beginning of period	6,093	$ 11,442	7,013	$ 13,116
Reclassifications from nonaccretable difference, net	(92)	438	550	577
Disposals of loans		(61)	(98)	(61)
Accretion	(742)	(2,026)	(2,206)	(3,839)
Balance, end of period	5,259	$ 9,793	5,259	$ 9,793
Nonaccretable difference	$ 19,100		$ 19,100		$ 19,200

Non-Covered Loans and Allowan74

Non-Covered Loans and Allowance for Non-Covered Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Impaired loans
Days outstanding loans and leases receivable are generally considered past due			90 days
Noncovered
Non-covered impaired loans
Unpaid Contractual Principal balance	$ 92,298		$ 92,298		$ 113,685
Recorded Investment with No Allowance	37,600		37,600		45,031
Recorded Investment with Allowance	22,684		22,684		26,633
Total Recorded Investment	60,284		60,284		71,664
Related Allowance	4,899		4,899		3,428
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	61,001	$ 69,980	65,975	$ 68,980
Non-accrual loans
Non-accrual loans	38,906		38,906		37,779
Interest income recorded on accruing impaired loans	100	100	100	400
Noncovered | Secured
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	23,581	16,950	23,685	15,093
Non-accrual loans
Non-accrual loans	22,390		22,390		20,262
Noncovered | Unsecured
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	475	748	521	821
Non-accrual loans
Non-accrual loans	425		425		616
Noncovered | Secured by Commercial Properties
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	30,245	37,189	31,998	37,362
Non-accrual loans
Non-accrual loans	14,256		14,256		14,620
Noncovered | Secured by Residential Properties
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	4,973	11,461	7,887	11,630
Non-accrual loans
Non-accrual loans	1,217		1,217		1,614
Non-accrual loans held for sale	3,100		3,100		2,700
Noncovered | Residential Construction Loans
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans				14
Noncovered | Commercial construction loans and land development
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	1,673	3,170	1,768	3,580
Non-accrual loans
Non-accrual loans	569		569		611
Noncovered | Consumer
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	54	$ 462	116	$ 480
Non-accrual loans
Non-accrual loans	49		49		56
Noncovered | PCI loans
Non-covered impaired loans
Unpaid Contractual Principal balance	50,025		50,025		71,328
Recorded Investment with No Allowance	14,746		14,746		16,940
Recorded Investment with Allowance	11,919		11,919		20,264
Total Recorded Investment	26,665		26,665		37,204
Related Allowance	1,503		1,503		2,038
Non-accrual loans
Non-accrual loans	5,300		5,300		3,300
Noncovered | PCI loans | Secured
Non-covered impaired loans
Unpaid Contractual Principal balance	15,315		15,315		19,752
Recorded Investment with No Allowance	3,935		3,935		3,610
Recorded Investment with Allowance	1,120		1,120		2,489
Total Recorded Investment	5,055		5,055		6,099
Related Allowance	58		58		89
Noncovered | PCI loans | Secured by Commercial Properties
Non-covered impaired loans
Unpaid Contractual Principal balance	24,947		24,947		34,598
Recorded Investment with No Allowance	8,610		8,610		7,583
Recorded Investment with Allowance	8,152		8,152		12,092
Total Recorded Investment	16,762		16,762		19,675
Related Allowance	969		969		1,391
Noncovered | PCI loans | Secured by Residential Properties
Non-covered impaired loans
Unpaid Contractual Principal balance	6,263		6,263		12,600
Recorded Investment with No Allowance	1,930		1,930		5,307
Recorded Investment with Allowance	1,999		1,999		4,558
Total Recorded Investment	3,929		3,929		9,865
Related Allowance	322		322		325
Noncovered | PCI loans | Commercial construction loans and land development
Non-covered impaired loans
Unpaid Contractual Principal balance	1,417		1,417		2,001
Recorded Investment with No Allowance	271		271		428
Recorded Investment with Allowance	648		648		1,010
Total Recorded Investment	919		919		1,438
Related Allowance	154		154		215
Noncovered | PCI loans | Consumer
Non-covered impaired loans
Unpaid Contractual Principal balance	2,083		2,083		2,377
Recorded Investment with No Allowance					12
Recorded Investment with Allowance					115
Total Recorded Investment					127
Related Allowance					18
Noncovered | Non-PCI
Non-covered impaired loans
Unpaid Contractual Principal balance	42,273		42,273		42,357
Recorded Investment with No Allowance	22,854		22,854		28,091
Recorded Investment with Allowance	10,765		10,765		6,369
Total Recorded Investment	33,619		33,619		34,460
Related Allowance	3,396		3,396		1,390
Noncovered | Non-PCI | Secured
Non-covered impaired loans
Unpaid Contractual Principal balance	25,451		25,451		23,666
Recorded Investment with No Allowance	13,406		13,406		15,308
Recorded Investment with Allowance	5,430		5,430		2,072
Total Recorded Investment	18,836		18,836		17,380
Related Allowance	2,501		2,501		365
Noncovered | Non-PCI | Unsecured
Non-covered impaired loans
Unpaid Contractual Principal balance	656		656		761
Recorded Investment with No Allowance	425		425		616
Total Recorded Investment	425		425		616
Noncovered | Non-PCI | Secured by Commercial Properties
Non-covered impaired loans
Unpaid Contractual Principal balance	14,124		14,124		15,504
Recorded Investment with No Allowance	8,171		8,171		10,934
Recorded Investment with Allowance	4,767		4,767		3,686
Total Recorded Investment	12,938		12,938		14,620
Related Allowance	810		810		932
Noncovered | Non-PCI | Secured by Residential Properties
Non-covered impaired loans
Unpaid Contractual Principal balance	1,241		1,241		1,596
Recorded Investment with No Allowance	803		803		1,177
Total Recorded Investment	803		803		1,177
Noncovered | Non-PCI | Residential Construction Loans
Non-covered impaired loans
Unpaid Contractual Principal balance	15		15		15
Noncovered | Non-PCI | Commercial construction loans and land development
Non-covered impaired loans
Unpaid Contractual Principal balance	631		631		653
Recorded Investment with Allowance	568		568		611
Total Recorded Investment	568		568		611
Related Allowance	85		85		93
Noncovered | Non-PCI | Consumer
Non-covered impaired loans
Unpaid Contractual Principal balance	155		155		162
Recorded Investment with No Allowance	49		49		56
Total Recorded Investment	$ 49		$ 49		$ 56

Non-Covered Loans and Allowan75

Non-Covered Loans and Allowance for Non-Covered Loan Losses - TDRs (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018item	Jun. 30, 2017USD ($)loan	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)loanitem
AB Note | Minimum | PlainsCapital
TDRs, Non-covered loans
Number of loans into which a single loan may be reconfigured | item			2
Noncovered
TDRs, Non-covered loans
Number of TDR loans granted | item	0		0
Noncovered | Payment Term Extension
TDRs, Non-covered loans
Number of TDR loans granted		1		3
TDR at extension		$ 655		$ 3,493
Total Modifications		$ 632		$ 3,328
Number of TDRs granted in preceding twelve months for which payment was at least 30 days past due | item			1	1
TDR modifications, in which a payment was at least 30 days past due			$ 3,294	$ 1,481
TDR with payment at least 30 days past due			$ 3,206	$ 1,417
Noncovered | Secured | Payment Term Extension
TDRs, Non-covered loans
Number of TDR loans granted | loan				1
TDR at extension				$ 1,357
Total Modifications				$ 1,279
Noncovered | Secured by Commercial Properties | Payment Term Extension
TDRs, Non-covered loans
Number of TDR loans granted | loan				1
TDR at extension				$ 1,481
Total Modifications				$ 1,417
Number of TDRs granted in preceding twelve months for which payment was at least 30 days past due | item			1	1
TDR modifications, in which a payment was at least 30 days past due			$ 3,294	$ 1,481
TDR with payment at least 30 days past due			$ 3,206	$ 1,417
Noncovered | Commercial construction loans and land development | Payment Term Extension
TDRs, Non-covered loans
Number of TDR loans granted | loan		1		1
TDR at extension		$ 655		$ 655
Total Modifications		$ 632		$ 632

Non-Covered Loans and Allowan76

Non-Covered Loans and Allowance for Non-Covered Loan Losses - Aging (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total loans	$ 6,384,660	$ 6,273,669
Noncovered
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	20,058	16,563
Current Loans	6,337,937	6,219,902
Total loans	6,384,660	6,273,669
Accruing Loans Past Due 90 Days or More	688	640
Noncovered | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	9,664	6,513
Noncovered | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	5,065	1,723
Noncovered | Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	5,329	8,327
Noncovered | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total loans	26,665	37,204
Noncovered | Secured
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	10,434	8,086
Current Loans	1,519,644	1,544,131
Total loans	1,535,133	1,558,316
Accruing Loans Past Due 90 Days or More		640
Noncovered | Secured | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	6,301	2,060
Noncovered | Secured | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,394	312
Noncovered | Secured | Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	2,739	5,714
Noncovered | Secured | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total loans	5,055	6,099
Noncovered | Unsecured
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	457	642
Current Loans	119,841	122,247
Total loans	120,298	122,889
Noncovered | Unsecured | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	432	642
Noncovered | Unsecured | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	25
Noncovered | Secured by Commercial Properties
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	5,455	2,637
Current Loans	2,295,193	2,213,331
Total loans	2,317,410	2,235,643
Noncovered | Secured by Commercial Properties | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	428	442
Noncovered | Secured by Commercial Properties | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	3,206
Noncovered | Secured by Commercial Properties | Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,821	2,195
Noncovered | Secured by Commercial Properties | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total loans	16,762	19,675
Noncovered | Secured by Residential Properties
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,940	3,198
Current Loans	819,217	762,818
Total loans	825,086	775,881
Accruing Loans Past Due 90 Days or More	688
Noncovered | Secured by Residential Properties | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,171	1,490
Noncovered | Secured by Residential Properties | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans		1,290
Noncovered | Secured by Residential Properties | Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	769	418
Noncovered | Secured by Residential Properties | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total loans	3,929	9,865
Noncovered | Residential Construction Loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,054	315
Current Loans	208,601	176,937
Total loans	209,655	177,252
Noncovered | Residential Construction Loans | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,054	315
Noncovered | Commercial construction loans and land development
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	451	1,471
Current Loans	737,284	782,444
Total loans	738,654	785,353
Noncovered | Commercial construction loans and land development | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	51	1,370
Noncovered | Commercial construction loans and land development | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	400	101
Noncovered | Commercial construction loans and land development | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total loans	919	1,438
Noncovered | Consumer
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	267	214
Current Loans	37,995	40,105
Total loans	38,262	40,446
Noncovered | Consumer | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	227	194
Noncovered | Consumer | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	40	20
Noncovered | Consumer | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total loans		127
Noncovered | Broker-dealer
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Current Loans	600,162	577,889
Total loans	600,162	577,889
Noncovered | PrimeLending | U.S. Government Agencies
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Accruing Loans Past Due 90 Days or More	73,400	84,500
Unpaid principal balance loans past due 90 days or more	$ 74,000	$ 85,200

Non-Covered Loans and Allowan77

Non-Covered Loans and Allowance for Non-Covered Loan Losses - Internal Risk Grades (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Internal risk grades of non-covered loans
Total loans	$ 6,384,660	$ 6,273,669
Noncovered
Internal risk grades of non-covered loans
Total loans	6,384,660	6,273,669
Noncovered | Pass
Internal risk grades of non-covered loans
Total loans	6,210,220	6,092,219
Noncovered | Special Mention
Internal risk grades of non-covered loans
Total loans	11,340	27,260
Noncovered | Substandard
Internal risk grades of non-covered loans
Total loans	136,435	116,986
Noncovered | Secured
Internal risk grades of non-covered loans
Total loans	1,535,133	1,558,316
Noncovered | Secured | Pass
Internal risk grades of non-covered loans
Total loans	1,462,355	1,483,502
Noncovered | Secured | Special Mention
Internal risk grades of non-covered loans
Total loans	6,600	17,354
Noncovered | Secured | Substandard
Internal risk grades of non-covered loans
Total loans	61,123	51,361
Noncovered | Unsecured
Internal risk grades of non-covered loans
Total loans	120,298	122,889
Noncovered | Unsecured | Pass
Internal risk grades of non-covered loans
Total loans	119,289	121,774
Noncovered | Unsecured | Substandard
Internal risk grades of non-covered loans
Total loans	1,009	1,115
Noncovered | Secured by Commercial Properties
Internal risk grades of non-covered loans
Total loans	2,317,410	2,235,643
Noncovered | Secured by Commercial Properties | Pass
Internal risk grades of non-covered loans
Total loans	2,233,481	2,154,595
Noncovered | Secured by Commercial Properties | Special Mention
Internal risk grades of non-covered loans
Total loans	4,740	7,647
Noncovered | Secured by Commercial Properties | Substandard
Internal risk grades of non-covered loans
Total loans	62,427	53,726
Noncovered | Secured by Residential Properties
Internal risk grades of non-covered loans
Total loans	825,086	775,881
Noncovered | Secured by Residential Properties | Pass
Internal risk grades of non-covered loans
Total loans	809,996	756,091
Noncovered | Secured by Residential Properties | Substandard
Internal risk grades of non-covered loans
Total loans	11,161	9,925
Noncovered | Residential Construction Loans
Internal risk grades of non-covered loans
Total loans	209,655	177,252
Noncovered | Residential Construction Loans | Pass
Internal risk grades of non-covered loans
Total loans	209,655	177,252
Noncovered | Commercial construction loans and land development
Internal risk grades of non-covered loans
Total loans	738,654	785,353
Noncovered | Commercial construction loans and land development | Pass
Internal risk grades of non-covered loans
Total loans	737,143	780,905
Noncovered | Commercial construction loans and land development | Special Mention
Internal risk grades of non-covered loans
Total loans		2,259
Noncovered | Commercial construction loans and land development | Substandard
Internal risk grades of non-covered loans
Total loans	592	751
Noncovered | Consumer
Internal risk grades of non-covered loans
Total loans	38,262	40,446
Noncovered | Consumer | Pass
Internal risk grades of non-covered loans
Total loans	38,139	40,211
Noncovered | Consumer | Substandard
Internal risk grades of non-covered loans
Total loans	123	108
Noncovered | Broker-dealer
Internal risk grades of non-covered loans
Total loans	600,162	577,889
Noncovered | Broker-dealer | Pass
Internal risk grades of non-covered loans
Total loans	600,162	577,889
Noncovered | PCI loans
Internal risk grades of non-covered loans
Total loans	26,665	37,204
Noncovered | PCI loans | Secured
Internal risk grades of non-covered loans
Total loans	5,055	6,099
Noncovered | PCI loans | Secured by Commercial Properties
Internal risk grades of non-covered loans
Total loans	16,762	19,675
Noncovered | PCI loans | Secured by Residential Properties
Internal risk grades of non-covered loans
Total loans	3,929	9,865
Noncovered | PCI loans | Commercial construction loans and land development
Internal risk grades of non-covered loans
Total loans	$ 919	1,438
Noncovered | PCI loans | Consumer
Internal risk grades of non-covered loans
Total loans		$ 127

Non-Covered Loans and Allowan78

Non-Covered Loans and Allowance for Non-Covered Loan Losses - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Changes in the allowance for loan losses
Balance, beginning of period			$ 60,957
Provision (recovery) for loan losses	$ 340	$ 5,853	(1,467)	$ 7,558
Balance, end of period	59,996		59,996
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					$ 6,384,660	$ 6,273,669
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	59,996		60,957		59,996	60,957
Noncovered
Changes in the allowance for loan losses
Balance, beginning of period	60,371	55,157	60,957	54,186
Provision (recovery) for loan losses	1,135	4,893	(763)	6,102
Loans charged off	(2,287)	(1,545)	(3,489)	(2,277)
Recoveries on charged off loans	777	703	3,291	1,197
Balance, end of period	59,996	59,208	59,996	59,208
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment					31,901	31,212
Loans collectively evaluated for impairment					6,326,094	6,205,253
Total loans					6,384,660	6,273,669
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment, allowance					3,396	1,390
Loans collectively evaluated for impairment, allowance					55,097	57,529
Total loans, allowance	60,371	55,157	60,957	54,186	59,996	60,957
Noncovered | Commercial and industrial
Changes in the allowance for loan losses
Balance, beginning of period	23,269	21,679	23,674	21,369
Provision (recovery) for loan losses	1,815	735	119	1,210
Loans charged off	(2,233)	(1,200)	(3,416)	(1,805)
Recoveries on charged off loans	666	620	3,140	1,060
Balance, end of period	23,517	21,834	23,517	21,834
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment					18,653	16,819
Loans collectively evaluated for impairment					1,631,723	1,658,287
Total loans					1,655,431	1,681,205
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment, allowance					2,501	365
Loans collectively evaluated for impairment, allowance					20,958	23,220
Total loans, allowance	23,269	21,679	23,674	21,369	23,517	23,674
Noncovered | Real estate
Changes in the allowance for loan losses
Balance, beginning of period	29,300	26,112	28,775	25,236
Provision (recovery) for loan losses	(767)	2,779	(264)	3,701
Loans charged off	(24)	(218)	(30)	(300)
Recoveries on charged off loans	75	61	103	97
Balance, end of period	28,584	28,734	28,584	28,734
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment					12,679	13,782
Loans collectively evaluated for impairment					3,109,126	2,968,202
Total loans					3,142,496	3,011,524
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment, allowance					810	932
Loans collectively evaluated for impairment, allowance					26,483	26,127
Total loans, allowance	29,300	26,112	28,775	25,236	28,584	28,775
Noncovered | Construction and land development
Changes in the allowance for loan losses
Balance, beginning of period	7,449	6,879	7,844	7,002
Provision (recovery) for loan losses	(178)	766	(573)	654
Loans charged off				(11)
Balance, end of period	7,271	7,645	7,271	7,645
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment					569	611
Loans collectively evaluated for impairment					946,821	960,556
Total loans					948,309	962,605
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment, allowance					85	93
Loans collectively evaluated for impairment, allowance					7,032	7,536
Total loans, allowance	7,449	6,879	7,844	7,002	7,271	7,844
Noncovered | Consumer
Changes in the allowance for loan losses
Balance, beginning of period	276	464	311	424
Provision (recovery) for loan losses	(75)	165	(109)	221
Loans charged off	(30)	(127)	(43)	(161)
Recoveries on charged off loans	36	22	48	40
Balance, end of period	207	524	207	524
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment					38,262	40,319
Total loans					38,262	40,446
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance					207	293
Total loans, allowance	276	464	311	424	207	311
Noncovered | Broker-dealer
Changes in the allowance for loan losses
Balance, beginning of period	77	23	353	155
Provision (recovery) for loan losses	340	448	64	316
Balance, end of period	417	471	417	471
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment					600,162	577,889
Total loans					600,162	577,889
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance					417	353
Total loans, allowance	77	$ 23	353	$ 155	417	353
Noncovered | PCI loans
Changes in the allowance for loan losses
Balance, beginning of period			2,038
Balance, end of period	1,503		1,503
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					26,665	37,204
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	1,503		2,038		1,503	2,038
Noncovered | PCI loans | Commercial and industrial
Changes in the allowance for loan losses
Balance, beginning of period			89
Balance, end of period	58		58
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					5,055	6,099
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	58		89		58	89
Noncovered | PCI loans | Real estate
Changes in the allowance for loan losses
Balance, beginning of period			1,716
Balance, end of period	1,291		1,291
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					20,691	29,540
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	1,291		1,716		1,291	1,716
Noncovered | PCI loans | Construction and land development
Changes in the allowance for loan losses
Balance, beginning of period			215
Balance, end of period	154		154
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					919	1,438
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	$ 154		215		$ 154	215
Noncovered | PCI loans | Consumer
Changes in the allowance for loan losses
Balance, beginning of period			18
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans						127
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance			$ 18			$ 18

Covered Assets and Indemnific79

Covered Assets and Indemnification Asset - Indemnification Asset (Details) - PlainsCapital - FNB - Covered - USD ($) $ in Thousands	Sep. 13, 2013	Jun. 30, 2018
Loans
Percentage of net losses to be absorbed by FDIC on the first $240.4 million of net losses incurred as per the loss sharing agreement	80.00%
Threshold amount of net losses incurred for 80% of net losses to be absorbed by FDIC as per the loss sharing agreement, first layer	$ 240,400
Percentage of net losses to be absorbed by FDIC in excess of $240.4 million up to and including $365.7 million of net losses incurred as per the loss sharing agreement	0.00%
Percentage of net losses to be absorbed by FDIC in excess of $365.7 million of net losses incurred as per the loss sharing agreement	80.00%
Threshold amount of net losses incurred for 0% of net losses to be absorbed by FDIC as per the loss sharing agreement, second layer	$ 365,700
Threshold limit of subsequent recoveries reimbursable to the FDIC under the loss share agreement	$ 0
Period for which payment is required to be made to the FDIC of true-up amount	10 years
Payment accrual based on the current aggregate estimate of realized losses		$ 16,600
Commercial Loan
Loans
Period of loss-sharing agreements in effect	5 years
Period of loss recovery provisions in effect	8 years
Single Family Residential Loans
Loans
Period of loss-sharing agreements in effect	10 years
Period of loss recovery provisions in effect	10 years

Covered Assets and Indemnific80

Covered Assets and Indemnification Asset - Covered Loans Summary (Details) $ in Thousands	Sep. 13, 2013USD ($)	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
Covered Loans
Allowance for covered loans		$ (1,974)	$ (2,729)
Total covered loans, net of allowance		158,996	179,400
Covered
Covered Loans
Total covered loans		160,970	182,129
Allowance for covered loans		(1,974)	(2,729)
Total covered loans, net of allowance		158,996	179,400
Covered | Commercial and industrial
Covered Loans
Total covered loans		938	1,055
Covered | Real estate
Covered Loans
Total covered loans		158,672	179,359
Covered | Construction and land development
Covered Loans
Total covered loans		$ 1,360	$ 1,715
Covered | Acquired loans
Loans
Fair value of loans acquired	$ 1,100,000
Carryover of the allowance for loan losses recorded	$ 0
Minimum number of layers of common risk | item		2

Covered Assets and Indemnific81

Covered Assets and Indemnification Asset - Covered PCI Loans (Details) - Covered - PCI loans - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Carrying value and the outstanding contractual balance of the covered PCI loans
Carrying amount	$ 75,473		$ 75,473		$ 87,113
Outstanding balance	151,529		151,529		179,019
Changes in the accretable yield for the acquired impaired loans
Balance, beginning of period	87,593	$ 142,466	91,833	$ 143,731
Reclassifications from nonaccretable difference, net	3,228	11,618	9,715	23,024
Transfer of loans to covered OREO	(656)	(662)	(847)	(780)
Accretion	(8,772)	(25,115)	(19,308)	(37,668)
Balance, end of period	81,393	$ 128,307	81,393	$ 128,307
Nonaccretable difference	$ 57,200		$ 57,200		$ 72,700

Covered Assets and Indemnific82

Covered Assets and Indemnification Asset - Impaired Loans (Details) - Covered - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Impaired loans
Unpaid Contractual Principal Balance	$ 204,955		$ 204,955		$ 233,230
Recorded Investment with No Allowance	11,129		11,129		8,023
Recorded Investment with Allowance	69,899		69,899		84,472
Total Recorded Investment	81,028		81,028		92,495
Related Allowance	1,951		1,951		2,697
Average investment in covered impaired loans
Average investment	83,471	$ 112,838	86,763	$ 120,390
Non-accrual loans
Non-accrual loans	5,277		5,277		5,104
Interest income recorded	200	200	300	300
Secured
Average investment in covered impaired loans
Average investment	144	644	171	887
Unsecured
Average investment in covered impaired loans
Average investment		171		234
Secured by Commercial Properties
Average investment in covered impaired loans
Average investment	17,547	37,752	20,471	41,734
Secured by Residential Properties
Average investment in covered impaired loans
Average investment	65,772	71,734	66,110	73,689
Non-accrual loans
Non-accrual loans	5,271		5,271		5,087
Commercial construction loans and land development
Average investment in covered impaired loans
Average investment	8	$ 2,537	11	$ 3,846
Non-accrual loans
Non-accrual loans	6		6		17
PCI loans
Impaired loans
Unpaid Contractual Principal Balance	198,292		198,292		226,889
Recorded Investment with No Allowance	5,574		5,574		2,641
Recorded Investment with Allowance	69,899		69,899		84,472
Total Recorded Investment	75,473		75,473		87,113
Related Allowance	1,951		1,951		2,697
PCI loans | Secured
Impaired loans
Unpaid Contractual Principal Balance	3,372		3,372		3,783
Recorded Investment with Allowance	147		147		194
Total Recorded Investment	147		147		194
Related Allowance	15		15		19
PCI loans | Unsecured
Impaired loans
Unpaid Contractual Principal Balance	5,443		5,443		5,732
PCI loans | Secured by Commercial Properties
Impaired loans
Unpaid Contractual Principal Balance	62,824		62,824		80,223
Recorded Investment with No Allowance	5,326		5,326		2,388
Recorded Investment with Allowance	12,057		12,057		21,171
Total Recorded Investment	17,383		17,383		23,559
Related Allowance	889		889		1,817
PCI loans | Secured by Residential Properties
Impaired loans
Unpaid Contractual Principal Balance	115,541		115,541		125,361
Recorded Investment with No Allowance	248		248		249
Recorded Investment with Allowance	57,695		57,695		63,107
Total Recorded Investment	57,943		57,943		63,356
Related Allowance	1,047		1,047		861
PCI loans | Residential Construction Loans
Impaired loans
Unpaid Contractual Principal Balance	645		645		672
PCI loans | Commercial construction loans and land development
Impaired loans
Unpaid Contractual Principal Balance	10,467		10,467		11,118
Recorded Investment with No Allowance					4
Total Recorded Investment					4
Non-PCI
Impaired loans
Unpaid Contractual Principal Balance	6,663		6,663		6,341
Recorded Investment with No Allowance	5,555		5,555		5,382
Total Recorded Investment	5,555		5,555		5,382
Non-PCI | Secured
Impaired loans
Unpaid Contractual Principal Balance	44		44		44
Non-PCI | Secured by Residential Properties
Impaired loans
Unpaid Contractual Principal Balance	6,610		6,610		6,279
Recorded Investment with No Allowance	5,550		5,550		5,370
Total Recorded Investment	5,550		5,550		5,370
Non-PCI | Commercial construction loans and land development
Impaired loans
Unpaid Contractual Principal Balance	9		9		18
Recorded Investment with No Allowance	5		5		12
Total Recorded Investment	$ 5		$ 5		$ 12

Covered Assets and Indemnific83

Covered Assets and Indemnification Asset - TDRs (Details) - Covered - loan	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Recorded Investment in loans
Number of TDR loans granted	0	0	0	0
Number of TDRs granted in preceding twelve months for which payment was at least 30 days past due			0	0

Covered Assets and Indemnific84

Covered Assets and Indemnification Asset - Aging (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Covered Assets and Indemnification Asset
Total loans	$ 6,384,660	$ 6,273,669
Covered
Covered Assets and Indemnification Asset
Total Past Due Loans	5,774	10,421
Current Loans	79,723	84,595
Total loans	160,970	182,129
Accruing Loans Past Due 90 Days or More		283
Covered | Financing Receivables, 30 to 59 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans	2,463	5,871
Covered | Financing Receivables, 60 to 89 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans	1,535	1,324
Covered | Financing Receivables, Equal to Greater than 90 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans	1,776	3,226
Covered | PCI loans
Covered Assets and Indemnification Asset
Total loans	75,473	87,113
Covered | Secured
Covered Assets and Indemnification Asset
Current Loans	791	861
Total loans	938	1,055
Covered | Secured | PCI loans
Covered Assets and Indemnification Asset
Total loans	147	194
Covered | Secured by Commercial Properties
Covered Assets and Indemnification Asset
Total Past Due Loans	66	322
Current Loans	9,902	11,472
Total loans	27,351	35,353
Covered | Secured by Commercial Properties | Financing Receivables, 30 to 59 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans	66	209
Covered | Secured by Commercial Properties | Financing Receivables, 60 to 89 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans		113
Covered | Secured by Commercial Properties | PCI loans
Covered Assets and Indemnification Asset
Total loans	17,383	23,559
Covered | Secured by Residential Properties
Covered Assets and Indemnification Asset
Total Past Due Loans	5,708	10,061
Current Loans	67,670	70,589
Total loans	131,321	144,006
Accruing Loans Past Due 90 Days or More		283
Covered | Secured by Residential Properties | Financing Receivables, 30 to 59 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans	2,397	5,624
Covered | Secured by Residential Properties | Financing Receivables, 60 to 89 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans	1,535	1,211
Covered | Secured by Residential Properties | Financing Receivables, Equal to Greater than 90 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans	1,776	3,226
Covered | Secured by Residential Properties | PCI loans
Covered Assets and Indemnification Asset
Total loans	57,943	63,356
Covered | Commercial construction loans and land development
Covered Assets and Indemnification Asset
Total Past Due Loans		38
Current Loans	1,360	1,673
Total loans	$ 1,360	1,715
Covered | Commercial construction loans and land development | Financing Receivables, 30 to 59 Days Past Due
Covered Assets and Indemnification Asset
Total Past Due Loans		38
Covered | Commercial construction loans and land development | PCI loans
Covered Assets and Indemnification Asset
Total loans		$ 4

Covered Assets and Indemnific85

Covered Assets and Indemnification Asset - Internal Risk Grades (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Internal risk grades of covered loans in the portfolio
Total loans	$ 6,384,660	$ 6,273,669
Covered
Internal risk grades of covered loans in the portfolio
Total loans	160,970	182,129
Covered | PCI loans
Internal risk grades of covered loans in the portfolio
Total loans	75,473	87,113
Covered | Pass
Internal risk grades of covered loans in the portfolio
Total loans	67,990	81,583
Covered | Special Mention
Internal risk grades of covered loans in the portfolio
Total loans	343	356
Covered | Substandard
Internal risk grades of covered loans in the portfolio
Total loans	17,164	13,077
Covered | Secured
Internal risk grades of covered loans in the portfolio
Total loans	938	1,055
Covered | Secured | PCI loans
Internal risk grades of covered loans in the portfolio
Total loans	147	194
Covered | Secured | Pass
Internal risk grades of covered loans in the portfolio
Total loans	392	429
Covered | Secured | Substandard
Internal risk grades of covered loans in the portfolio
Total loans	399	432
Covered | Secured by Commercial Properties
Internal risk grades of covered loans in the portfolio
Total loans	27,351	35,353
Covered | Secured by Commercial Properties | PCI loans
Internal risk grades of covered loans in the portfolio
Total loans	17,383	23,559
Covered | Secured by Commercial Properties | Pass
Internal risk grades of covered loans in the portfolio
Total loans	9,208	10,961
Covered | Secured by Commercial Properties | Substandard
Internal risk grades of covered loans in the portfolio
Total loans	760	833
Covered | Secured by Residential Properties
Internal risk grades of covered loans in the portfolio
Total loans	131,321	144,006
Covered | Secured by Residential Properties | PCI loans
Internal risk grades of covered loans in the portfolio
Total loans	57,943	63,356
Covered | Secured by Residential Properties | Pass
Internal risk grades of covered loans in the portfolio
Total loans	57,048	68,544
Covered | Secured by Residential Properties | Special Mention
Internal risk grades of covered loans in the portfolio
Total loans	343	356
Covered | Secured by Residential Properties | Substandard
Internal risk grades of covered loans in the portfolio
Total loans	15,987	11,750
Covered | Commercial construction loans and land development
Internal risk grades of covered loans in the portfolio
Total loans	1,360	1,715
Covered | Commercial construction loans and land development | PCI loans
Internal risk grades of covered loans in the portfolio
Total loans		4
Covered | Commercial construction loans and land development | Pass
Internal risk grades of covered loans in the portfolio
Total loans	1,342	1,649
Covered | Commercial construction loans and land development | Substandard
Internal risk grades of covered loans in the portfolio
Total loans	$ 18	$ 62

Covered Assets and Indemnific86

Covered Assets and Indemnification Asset - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Changes in the allowance for loan losses
Balance, beginning of period			$ 60,957
Provision (recovery) for loan losses	$ 340	$ 5,853	(1,467)	$ 7,558
Balance, end of period	59,996		59,996
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					$ 6,384,660	$ 6,273,669
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	59,996		60,957		59,996	60,957
Covered
Changes in the allowance for loan losses
Balance, beginning of period	2,823	753	2,729	413
Provision (recovery) for loan losses	(795)	960	(704)	1,456
Loans charged off	(57)	(362)	(57)	(527)
Recoveries on charged off loans	3	8	6	17
Balance, end of period	1,974	1,359	1,974	1,359
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment					85,497	95,016
Total loans					160,970	182,129
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance					23	32
Total loans, allowance	2,823	753	2,729	413	1,974	2,729
Covered | Commercial and industrial
Changes in the allowance for loan losses
Balance, beginning of period	45	16	24	35
Provision (recovery) for loan losses	(26)	28	(5)	12
Loans charged off				(6)
Recoveries on charged off loans		3		6
Balance, end of period	19	47	19	47
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment					791	861
Total loans					938	1,055
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance					4	5
Total loans, allowance	45	16	24	35	19	24
Covered | Real estate
Changes in the allowance for loan losses
Balance, beginning of period	2,776	736	2,702	378
Provision (recovery) for loan losses	(764)	309	(690)	822
Loans charged off	(57)	(362)	(57)	(521)
Recoveries on charged off loans		1		5
Balance, end of period	1,955	684	1,955	684
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment					83,346	92,444
Total loans					158,672	179,359
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance					19	24
Total loans, allowance	2,776	736	2,702	378	1,955	2,702
Covered | Construction and land development
Changes in the allowance for loan losses
Balance, beginning of period	2	1	3
Provision (recovery) for loan losses	(5)	623	(9)	622
Recoveries on charged off loans	3	4	6	6
Balance, end of period		628		628
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment					1,360	1,711
Total loans					1,360	1,715
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance						3
Total loans, allowance	2	$ 1	3	$ 628		3
Covered | PCI loans
Changes in the allowance for loan losses
Balance, beginning of period			2,697
Balance, end of period	1,951		1,951
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					75,473	87,113
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	1,951		2,697		1,951	2,697
Covered | PCI loans | Commercial and industrial
Changes in the allowance for loan losses
Balance, beginning of period			19
Balance, end of period	15		15
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					147	194
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	15		19		15	19
Covered | PCI loans | Real estate
Changes in the allowance for loan losses
Balance, beginning of period			2,678
Balance, end of period	1,936		1,936
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans					75,326	86,915
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	$ 1,936		$ 2,678		$ 1,936	2,678
Covered | PCI loans | Construction and land development
Loan portfolio distributed by portfolio segment and impairment methodology
Total loans						$ 4

Covered Assets and Indemnific87

Covered Assets and Indemnification Asset - Covered OREO (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Activity in covered OREO
Balance, beginning of period	$ 35,777	$ 45,374	$ 36,744	$ 51,642
Additions to covered OREO	2,351	3,404	4,846	5,127
Dispositions of covered OREO	(2,565)	(5,531)	(4,972)	(12,330)
Valuation adjustments in the period	(668)	(943)	(1,723)	(2,135)
Balance, end of period	$ 34,895	$ 42,304	$ 34,895	$ 42,304

Covered Assets and Indemnific88

Covered Assets and Indemnification Asset - FDIC Indemnification Asset (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Activity in the FDIC Indemnification Asset
Balance, beginning of period	$ 25,458	$ 47,940	$ 29,340	$ 71,313
FDIC Indemnification Asset accretion (amortization)	(1,933)	(4,236)	(5,815)	(8,185)
Transfers to due from FDIC and other		(3,400)		(22,824)
Balance, end of period	$ 23,525	$ 40,304	23,525	$ 40,304
FDIC, collections billed			147,800
FDIC, collections received			$ 145,800

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - MSR - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Change in fair value of mortgage servicing rights
Balance, beginning of year	$ 63,957	$ 45,573	$ 54,714	$ 61,968	$ 61,968
Additions	3,068	1,266	9,729	2,490
Sales	(9,303)		(9,303)	(17,499)
Changes in fair value: Due to changes in model inputs or assumptions	1,032	(2,064)	4,673	(1,207)
Changes in fair value: Due to customer payoffs	(1,381)	(1,195)	(2,440)	(2,172)
Balance, end of year	57,373	$ 43,580	57,373	$ 43,580	54,714
Mortgage loans serviced for others	$ 4,394,219		$ 4,394,219		$ 4,762,042
MSR asset as a percentage of serviced mortgage loans	1.31%		1.31%		1.15%
Key Assumptions
Weighted average constant prepayment rate (as a percent)			9.27%		10.93%
Weighted average discount rate (as a percent)			11.09%		11.03%
Weighted average life (in years)			7 years 7 months 6 days		6 years 10 months 24 days

Mortgage Servicing Rights - Sen

Mortgage Servicing Rights - Sensitivity Analysis (Details) - MSR - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Sensitivity analysis
Constant prepayment rate: Impact of 10% adverse change	$ (1,704)		$ (1,704)		$ (1,948)
Constant prepayment rate: Impact of 20% adverse change	(3,473)		(3,473)		(3,839)
Discount rate: Impact of 10% adverse change	(2,401)		(2,401)		(2,135)
Discount rate: Impact of 20% adverse change	(4,604)		(4,604)		$ (4,103)
Contractually specified servicing fees, late fees and ancillary fees	$ 6,100	$ 5,000	$ 11,800	$ 11,500

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deposits
Noninterest-bearing demand	$ 2,468,332	$ 2,411,849
Interest-bearing:
NOW accounts	1,272,098	1,202,752
Money market	2,209,780	2,222,555
Brokered - money market	9,911	101,624
Demand	354,232	411,771
Savings	200,643	218,812
Time	1,298,626	1,313,482
Brokered - time		95,274
Total deposits	$ 7,813,622	$ 7,978,119

Short-term Borrowings (Details)

Short-term Borrowings (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Short-term borrowings
Short-term borrowings	$ 1,610,735		$ 1,206,424
Hilltop Broker-Dealers
Short-term borrowings
Weighted average interest rate (as a percent)	2.82%		2.27%
Federal funds purchased.
Short-term borrowings
Short-term borrowings	$ 78,350		$ 101,775
Securities sold under agreement to repurchase.
Short-term borrowings
Short-term borrowings	502,885		539,149
FHLB notes
Short-term borrowings
Short-term borrowings	675,000		$ 250,000
Average balance during the year	$ 117,956	$ 355,249
Average interest rate during the year	1.91%	0.92%
Average interest rate at end of year (as a percent)	2.07%		1.30%
FHLB notes | Maximum
Short-term borrowings
Maturity term of debt	365 days
Short-term bank loans.
Short-term borrowings
Short-term borrowings	$ 354,500		$ 315,500
Federal funds purchased and securities sold under agreements to repurchase.
Short-term borrowings
Average balance during the year	$ 721,167	$ 500,830
Average interest rate during the year	1.63%	0.86%
Average interest rate at end of year (as a percent)	1.74%		1.21%
Securities underlying the agreements at end of period: Carrying value	$ 514,378		$ 581,636
Securities underlying the agreements at end of period: Estimated fair value	$ 531,130		$ 598,300

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument
Notes payable	$ 227,736	$ 208,809
Senior Notes due April 2025
Debt Instrument
Notes payable	148,531	148,455
Unamortized discount	1,469	1,545
FHLB notes
Debt Instrument
Notes payable	4,603	19,402
Unamortized premium	261	436
NLIC note payable due May 2033
Debt Instrument
Notes payable	10,000	10,000
NLIC note payable due September 2033
Debt Instrument
Notes payable	10,000	10,000
ASIC note payable due April 2034
Debt Instrument
Notes payable	7,500	7,500
Insurance company line of credit due December 31, 2018
Debt Instrument
Notes payable		1,000
Ventures Management line of credit
Debt Instrument
Notes payable	$ 47,102	$ 12,452

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Taxes
Statutory Federal income tax rate (as a percent)			21.00%		35.00%
Effective income tax rate (as a percent)	24.30%	29.10%	23.90%	31.40%

Commitments and Contingencies95

Commitments and Contingencies (Details)	May 30, 2017USD ($)$ / sharesshares	Jan. 01, 2015$ / shares	Sep. 13, 2013USD ($)item	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Reserve for Indemnification Liability:
FDIC, collections received						$ 145,800,000
SWS
Commitments and Contingencies
Conversion of common stock		0.2496
Consideration paid in cash | $ / shares		$ 1.94
Fair value acquisition price (in dollars per share) | $ / shares		$ 6.92
Representation and Warranty Claims
Roll-forward of claims activity for loans put-back to the mortgage origination segment
Balance, beginning of period				$ 32,321,000	$ 39,245,000	33,702,000	$ 40,669,000
Claims made				5,361,000	8,650,000	12,350,000	17,029,000
Claims resolved with no payment				(5,892,000)	(9,991,000)	(11,753,000)	(18,088,000)
Repurchases				(1,245,000)	(226,000)	(3,334,000)	(1,688,000)
Indemnification payments					(5,124,000)	(420,000)	(5,368,000)
Balance, end of period				30,545,000	32,554,000	30,545,000	32,554,000
Reserve for Indemnification Liability:
Total				32,321,000	39,245,000	33,702,000	40,669,000	$ 30,545,000	$ 33,702,000
Indemnification Agreement
Commitments and Contingencies
Provision for indemnification losses				1,000,000	1,100,000	1,700,000	2,000,000
Roll-forward of claims activity for loans put-back to the mortgage origination segment
Balance, beginning of period				23,332,000	18,952,000	23,472,000	18,239,000
Additions for new sales				1,014,000	1,145,000	1,743,000	1,992,000
Repurchases				(85,000)	(23,000)	(245,000)	(125,000)
Early payment defaults				(41,000)	(60,000)	(188,000)	(129,000)
Indemnification payments				(4,000)	(671,000)	(121,000)	(713,000)
Change in reserves for loans sold in prior years				(306,000)	3,024,000	(751,000)	3,103,000
Balance, end of period				23,910,000	22,367,000	23,910,000	22,367,000
Reserve for Indemnification Liability:
Specific claims								999,000	646,000
Incurred but not reported claims								22,911,000	22,826,000
Total				$ 23,332,000	18,952,000	23,472,000	$ 18,239,000	23,910,000	$ 23,472,000
Shareholder Lawsuits | SWS
Commitments and Contingencies
Number of shares of SWS common stock held by purported shareholders | shares	7,438,453
Consideration paid in cash | $ / shares	$ 6.38
Fair value acquisition price (in dollars per share) | $ / shares	$ 6.38
Stock released from escrow and returned to unissued shares of common stock	$ 1,856,638
Pre-tax net increase to noninterest income					$ 11,600,000
PlainsCapital | FNB | Covered
Reserve for Indemnification Liability:
Number of loss-sharing agreements | item			2
Loans and OREO acquired			$ 1,200,000,000
Percentage of net losses to be absorbed by FDIC on the first $240.4 million of net losses incurred as per the loss sharing agreement			80.00%
Threshold amount of net losses incurred for 80% of net losses to be absorbed by FDIC as per the loss sharing agreement, first layer			$ 240,400,000
Percentage of net losses to be absorbed by FDIC in excess of $240.4 million up to and including $365.7 million of net losses incurred as per the loss sharing agreement			0.00%
Threshold amount of net losses incurred for 0% of net losses to be absorbed by FDIC as per the loss sharing agreement, second layer			$ 365,700,000
Percentage of net losses to be absorbed by FDIC in excess of $365.7 million of net losses incurred as per the loss sharing agreement			80.00%
Threshold limit of subsequent recoveries reimbursable to the FDIC under the loss share agreement			$ 0
Period for which payment is required to be made to the FDIC of true-up amount			10 years
Payment accrual based on the current aggregate estimate of realized losses								$ 16,600,000
Percentage of initial estimate of losses under loss sharing agreement			80.00%
Amount of initial estimate of losses under loss sharing agreement			$ 240,400,000
Covered net losses billed to the FDIC						$ 184,700,000
Percentage of covered net losses reimbursable under the loss-share agreements						80.00%
Amount of covered net losses reimbursable under the loss-share agreements						$ 147,800,000
FDIC, collections received						145,800,000
PlainsCapital | FNB | Covered | Commercial Loan
Reserve for Indemnification Liability:
Period of loss-sharing agreements in effect			5 years
Period of loss recovery provisions in effect			8 years
PlainsCapital | FNB | Covered | Single Family Residential Loans
Reserve for Indemnification Liability:
Period of loss-sharing agreements in effect			10 years
Period of loss recovery provisions in effect			10 years
PlainsCapital | FNB | Maximum | Covered
Reserve for Indemnification Liability:
Covered losses and reimbursable expenses						$ 240,400,000

Financial Instruments with Of96

Financial Instruments with Off-Balance Sheet Risk (Details) $ in Millions	Jun. 30, 2018USD ($)
Unused commitments to extend credit
Financial Instruments with Off-Balance Sheet Risk
Outstanding commitments	$ 2,000
Standby letters of credit
Financial Instruments with Off-Balance Sheet Risk
Outstanding commitments	$ 25.1

Stock-Based Compensation - Plan

Stock-Based Compensation - Plan Information (Details) - 2012 Plan - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock based compensation
Number of awards approved for grant (in shares)	4,000,000		4,000,000
Common stock remaining available for issuance (in shares)	1,267,430		1,267,430
Compensation expense	$ 2.5	$ 3.2	$ 4.8	$ 5.9
Board of Directors
Stock based compensation
Common shares granted to members of board of directors as compensation for director services			10,024	7,513

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU Activity (Details) - 2012 Plan - RSUs shares in Thousands	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Number of shares outstanding
Balance at the beginning of the period ( in shares) | shares	1,318
Granted (in shares) | shares	457
Vested/Released (in shares) | shares	(355)
Forfeited (in shares) | shares	(100)
Balance at the end of the period ( in shares) | shares	1,320
Weighted Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 20.89
Grant date fair value (in dollars per share) | $ / shares	23.37
Vested/Released (in dollars per share) | $ / shares	19.79
Forfeited (in dollars per share) | $ / shares	19.78
Balance at the end of the period (in dollars per share) | $ / shares	$ 22.13

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)shares
RSUs and RSAs
Stock based compensation
Vested/Released number of shares withheld to satisfy employee statutory tax obligations (in shares)	73,661
2012 Plan | RSUs
Stock based compensation
Vested RSUs which require deferral of share settlement and statutory tax obligations	17,481
Number of shares awarded (in shares)	457,000
Number of awards subject to time-based vesting (in shares)	1,061,629
Number of awards vesting upon achievement of performance goals (in shares)	258,773
Performance period	3 years
Vesting period	3 years
Unrecognized compensation expense | $	$ 17.9
Weighted average period for unrecognized compensation expense (in years)	1 year 7 months 24 days
2012 Plan | Certain Executives and Key Employees | RSUs
Stock based compensation
Number of shares awarded (in shares)	433,268
Number of awards subject to time-based vesting (in shares)	335,560
Number of awards vesting upon achievement of performance goals (in shares)	84,626
Performance period	3 years
Vesting period	3 years

Regulatory Matters - Minimum Ca

Regulatory Matters - Minimum Capital Requirements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
PlainsCapital
Tier 1 capital (to average assets)
Actual Amount	$ 1,174,264	$ 1,147,527
Actual Ratio (as a percent)	12.80%	12.32%
Minimum Capital Requirement Including Conservation Buffer in effect at end of period, ratio (as a percent)	4.00%	4.00%
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent)	4.00%	4.00%
To Be Well Capitalized Minimum Capital Requirements, Ratio (as a percent)	5.00%	5.00%
Common equity Tier 1 capital (to risk weighted assets)
Actual Amount	$ 1,174,264	$ 1,147,527
Actual Ratio (as a percent)	14.59%	14.47%
Minimum Capital Requirement Including Conservation Buffer in effect at end of period, ratio (as a percent)	6.375%	5.75%
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent)	7.00%	7.00%
To Be Well Capitalized Minimum Capital Requirements, Ratio (as a percent)	6.50%	6.50%
Tier 1 capital (to risk-weighted assets)
Actual Amount	$ 1,174,264	$ 1,147,527
Actual Ratio (as a percent)	14.59%	14.47%
Minimum Capital Requirement Including Conservation Buffer in effect at end of period, ratio (as a percent)	7.875%	7.25%
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent)	8.50%	8.50%
To Be Well Capitalized Minimum Capital Requirements, Ratio (as a percent)	8.00%	8.00%
Total capital (to risk-weighted assets)
Actual Amount	$ 1,237,812	$ 1,212,793
Actual Ratio (as a percent)	15.38%	15.29%
Minimum Capital Requirement Including Conservation Buffer in effect at end of period, ratio (as a percent)	9.875%	9.25%
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent)	10.50%	10.50%
To Be Well Capitalized Minimum Capital Requirements, Ratio (as a percent)	10.00%	10.00%
Hilltop
Tier 1 capital (to average assets)
Actual Amount	$ 1,689,009	$ 1,688,358
Actual Ratio (as a percent)	12.90%	12.94%
Minimum Capital Requirement Including Conservation Buffer in effect at end of period, ratio (as a percent)	4.00%	4.00%
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent)	4.00%	4.00%
Common equity Tier 1 capital (to risk weighted assets)
Actual Amount	$ 1,643,623	$ 1,639,009
Actual Ratio (as a percent)	17.61%	17.71%
Minimum Capital Requirement Including Conservation Buffer in effect at end of period, ratio (as a percent)	6.375%	5.75%
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent)	7.00%	7.00%
Tier 1 capital (to risk-weighted assets)
Actual Amount	$ 1,689,009	$ 1,688,358
Actual Ratio (as a percent)	18.10%	18.24%
Minimum Capital Requirement Including Conservation Buffer in effect at end of period, ratio (as a percent)	7.875%	7.25%
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent)	8.50%	8.50%
Total capital (to risk-weighted assets)
Actual Amount	$ 1,733,360	$ 1,738,325
Actual Ratio (as a percent)	18.58%	18.78%
Minimum Capital Requirement Including Conservation Buffer in effect at end of period, ratio (as a percent)	9.875%	9.25%
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent)	10.50%	10.50%

Regulatory Matters - Net Capita

Regulatory Matters - Net Capital Position, Broker-Dealers (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Net Capital
Amount required to be segregated in cash and securities for the benefit of customers	$ 128,417	$ 186,578
Hilltop Securities
Net Capital
Net capital	205,730
Less required net capital	11,427
Excess net capital	$ 194,303
Net capital as a percentage of aggregate debit items	36.00%
Net capital in excess of 5% aggregate debt items	$ 177,161
HTS Independent Network
Net Capital
Net capital	3,362
Less required net capital	250
Excess net capital	3,112
Hilltop Broker-Dealers
Net Capital
Amount required to be segregated in cash and securities for the benefit of customers	$ 128,400	$ 186,600

Regulatory Matters - Insurance

Regulatory Matters - Insurance Subsidiaries (Details) - Texas Department of Insurance - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
NLIC
Insurance
Capital and surplus	$ 93,578		$ 93,578		$ 93,812
Statutory net income (loss)	(2,633)	$ (7,152)	1,134	$ (6,516)
ASIC
Insurance
Capital and surplus	23,910		23,910		$ 22,778
Statutory net income (loss)	$ 394	$ (309)	$ 1,283	$ 523

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jul. 31, 2018	Jul. 26, 2018	Jan. 31, 2018
Stockholders' Equity
Dividend declared per share				$ 0.07
Repurchase common stock authorized amount			$ 100,000		$ 50,000
Payments to repurchase shares	$ 38,877	$ 16,009
Repurchase of common stock (in shares)	1,702,696
Average price (per share)	$ 22.81

Derivative Financial Instrum104

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Not Designated as Hedging Instrument | PrimeLending
Derivative financial instruments
Net gain (loss) due to changes in the fair value of the derivative instruments	$ (3,100)	$ 8,800	$ 6,900	$ 9,500
Not Designated as Hedging Instrument | Hilltop Broker-Dealers
Derivative financial instruments
Net gain (loss) due to changes in the fair value of the derivative instruments	3,000	$ 9,900	(2,200)	16,200
Not Designated as Hedging Instrument | PlainsCapital
Derivative financial instruments
Net gain (loss) due to changes in the fair value of the derivative instruments			200	$ 100
Interest Rate Lock Commitments
Derivative financial instruments
Notional Amount	1,390,728		1,390,728		$ 850,850
Estimated Fair Value	31,475		31,475		18,851
Customer-based written options
Derivative financial instruments
Notional Amount	30,889		30,889		21,637
Estimated Fair Value	(109)		(109)		38
Customer-based purchased options
Derivative financial instruments
Notional Amount	30,889		30,889		21,637
Estimated Fair Value	109		109		(38)
Commitments to Purchase MBSs
Derivative financial instruments
Notional Amount	3,153,297		3,153,297		2,831,635
Estimated Fair Value	7,297		7,297		(921)
Commitments to Sell MBSs
Derivative financial instruments
Notional Amount	5,753,361		5,753,361		4,963,498
Estimated Fair Value	(13,112)		(13,112)		2,972
Commitments to Sell MBSs | PrimeLending
Derivative financial instruments
Cash collateral advanced to offset net derivative liability	8,200		8,200		800
Interest rate swaps
Derivative financial instruments
Notional Amount	24,102		24,102		25,971
Estimated Fair Value	211		211		51
U.S. Treasury bond futures and options
Derivative financial instruments
Notional Amount	198,000		198,000		214,500
U.S. Treasury bond futures and options | PrimeLending
Derivative financial instruments
Cash collateral advanced to offset net derivative liability	$ 3,200		$ 3,200		$ 3,200

Balance Sheet Offsetting - Asse

Balance Sheet Offsetting - Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Reverse repurchase agreements:
Net Amounts of Assets Presented in the Balance Sheet	$ 229,172	$ 186,537
Total
Gross Amounts of Recognized Assets	1,727,971	1,576,972
Net Amounts of Assets Presented in the Balance Sheet	1,727,971	1,576,972
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(1,660,689)	(1,517,138)
Net Amount	67,282	59,834
Institutional counterparties
Securities borrowed:
Gross Amounts of Recognized Assets	1,491,182	1,386,821
Net Amounts of Assets Presented in the Balance Sheet	1,491,182	1,386,821
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(1,424,434)	(1,327,536)
Net Amount	66,748	59,285
Interest Rate Options | Customer counterparties
Derivatives:
Gross Amounts of Recognized Assets	109	38
Net Amounts of Assets Presented in the Balance Sheet	109	38
Gross Amounts Not Offset in the Balance Sheet
Net Amounts of Assets Presented in the Balance Sheet	109	38
Interest rate swaps | Institutional counterparties
Derivatives:
Gross Amounts of Recognized Assets	211
Net Amounts of Assets Presented in the Balance Sheet	211
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(909)
Net Amounts of Assets Presented in the Balance Sheet	(698)
Reverse repurchase agreements | Institutional counterparties
Reverse repurchase agreements:
Gross Amounts of Recognized Assets	229,172	186,537
Net Amounts of Assets Presented in the Balance Sheet	229,172	186,537
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(228,049)	(186,026)
Net Amount	1,123	511
Forward MBS Derivatives | Institutional counterparties
Derivatives:
Gross Amounts of Recognized Assets	7,297	3,576
Net Amounts of Assets Presented in the Balance Sheet	7,297	3,576
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(7,297)	(3,576)
Net Amounts of Assets Presented in the Balance Sheet	$ 0	$ 0

Balance Sheet Offsetting - Liab

Balance Sheet Offsetting - Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Total
Gross Amounts of Recognized Liabilities	$ 1,833,172	$ 1,757,011
Gross Amounts Offset in the Balance Sheet	(938)	(1,257)
Net Amounts of Liabilities Presented in the Balance Sheet	1,832,234	1,755,754
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(1,764,397)	(1,698,701)
Net Amount	67,837	57,053
Institutional counterparties
Securities loaned:
Gross Amounts of Recognized Liabilities	1,316,128	1,215,093
Net Amounts of Liabilities Presented in the Balance Sheets	1,316,128	1,215,093
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(1,254,389)	(1,157,198)
Net Amount	61,739	57,895
Institutional counterparties | Interest Rate Options
Derivatives:
Gross Amounts of Recognized Liabilities	109	38
Net Amounts of Liabilities Presented in the Balance Sheet	109	38
Gross Amounts Not Offset in the Balance Sheet
Net Amount	109	38
Institutional counterparties | Interest rate swaps
Derivatives:
Gross Amounts of Recognized Liabilities		35
Gross Amounts Offset in the Balance Sheet		(86)
Net Amounts of Liabilities Presented in the Balance Sheet		(51)
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments		(1,059)
Net Amount		(1,110)
Institutional counterparties | Repurchase agreements
Repurchase agreements:
Gross Amounts of Recognized Liabilities	418,566	409,058
Net Amounts of Liabilities Presented in the Balance Sheet	418,566	409,058
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(418,566)	(409,058)
Net Amount	0	0
Institutional counterparties | Forward MBS Derivatives
Derivatives:
Gross Amounts of Recognized Liabilities	14,050	2,696
Gross Amounts Offset in the Balance Sheet	(938)	(1,171)
Net Amounts of Liabilities Presented in the Balance Sheet	13,112	1,525
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(7,123)	(1,295)
Net Amount	5,989	230
Customer counterparties | Repurchase agreements
Repurchase agreements:
Gross Amounts of Recognized Liabilities	84,319	130,091
Net Amounts of Liabilities Presented in the Balance Sheet	84,319	130,091
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(84,319)	(130,091)
Net Amount	$ 0	$ 0

Balance Sheet Offsetting - Secu

Balance Sheet Offsetting - Secured Borrowings (Details) $ in Thousands	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Number of repurchase-to-maturity transactions outstanding | item	0	0
Total borrowings	$ 1,819,013	$ 1,754,242
Gross amount of recognized liabilities for repurchase agreements and securities lending in offsetting disclosure above	1,819,013	1,754,242
Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Total borrowings	1,819,013	1,754,242
US Treasury and agency securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements transactions	145,005	181,915
US Treasury and agency securities | Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements transactions	145,005	181,915
Assets-backed securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements transactions	357,880	357,234
Assets-backed securities | Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements transactions	357,880	357,234
Corporate securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Securities lending transactions	1,266	11,499
Corporate securities | Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Securities lending transactions	1,266	11,499
Equity securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Securities lending transactions	1,314,862	1,203,594
Equity securities | Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Securities lending transactions	$ 1,314,862	$ 1,203,594

Broker-Dealer and Clearing O108

Broker-Dealer and Clearing Organization Receivables and Payables (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Receivables:
Securities borrowed	$ 1,491,182	$ 1,386,821
Securities failed to deliver	58,522	25,491
Trades in process of settlement	47,174	29,412
Other	18,073	22,654
Total receivables	1,614,951	1,464,378
Payables:
Securities loaned	1,316,128	1,215,093
Correspondents	26,537	30,160
Securities failed to receive	60,041	37,864
Other	7,198	4,446
Total Payables	$ 1,409,904	$ 1,287,563

Reserves for Losses and Loss109

Reserves for Losses and Loss Adjustment Expenses - Reserve (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Information regarding of the reserve for unpaid losses and loss adjustment expenses
Reserve for unpaid losses and allocated LAE balance, net	$ 21,004	$ 17,470
Reinsurance recoverables on unpaid losses	6,091	11,495
Unallocated LAE	1,148	1,248
Reserve for unpaid losses and LAE balance, gross	$ 28,243	$ 30,213

Reserves for Losses and Loss110

Reserves for Losses and Loss Adjustment Expenses - Activity (Details) $ in Thousands	Jun. 30, 2018USD ($)claim	Dec. 31, 2017USD ($)
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 360,913
Total incurred	381,407
All outstanding reserves prior to 2014, net of reinsurance	510
Reserve for unpaid losses and allocated LAE, net of reinsurance	21,004	$ 17,470
2,014
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	83,640
Total incurred	84,050
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 87
Cumulative Number of Reported Claims | claim	13,150
2,015
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 86,175
Total incurred	87,205
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 410
Cumulative Number of Reported Claims | claim	15,121
2,016
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 82,671
Total incurred	84,614
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 1,490
Cumulative Number of Reported Claims | claim	21,451
2,017
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 85,089
Total incurred	89,107
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 2,659
Cumulative Number of Reported Claims | claim	21,308
2,018
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 23,338
Total incurred	36,431
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 5,669
Cumulative Number of Reported Claims | claim	5,779

Reinsurance Activity - Credit R

Reinsurance Activity - Credit Risk (Details) $ in Thousands	Jun. 30, 2018USD ($)
Reinsurance Activity
Balances due from Companies	$ 8,800
Allowance for uncollectible accounts	$ 0

Reinsurance Activity - Effects

Reinsurance Activity - Effects of Reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earned
Net premiums	$ 34,105	$ 36,020	$ 68,420	$ 72,160
Effect of reinsurance on incurred losses
Net loss and LAE incurred	24,409	33,184	39,941	54,884
Property and casualty
Written
Premiums from direct business	35,801	37,792	68,886	73,588
Reinsurance assumed	3,567	3,358	6,609	6,227
Reinsurance ceded	(2,335)	(2,974)	(4,345)	(6,187)
Net premiums	37,033	38,176	71,150	73,628
Earned
Premiums from direct business	33,372	36,753	66,740	73,952
Reinsurance assumed	3,111	2,910	6,111	5,728
Reinsurance ceded	(2,378)	(3,643)	(4,431)	(7,520)
Net premiums	34,105	36,020	68,420	72,160
Effect of reinsurance on incurred losses
Loss and LAE incurred	23,869	33,352	37,321	55,654
Reinsurance recoverables	540	(168)	2,620	(770)
Net loss and LAE incurred	$ 24,409	$ 33,184	$ 39,941	$ 54,884

Reinsurance Activity - Coverage

Reinsurance Activity - Coverage (Details) $ in Millions	Jan. 01, 2018USD ($)	Jun. 30, 2018USD ($)item	Dec. 31, 2017
Catastrophic coverage | First layer of protection
Reinsurance activity
Retention amount		$ 8
Reinsurance in excess of retention		17
Catastrophic coverage | Second layer of protection
Reinsurance activity
Retention amount		25
Reinsurance coverage in losses per event		30
Catastrophic coverage | Third layer of protection
Reinsurance activity
Retention amount		55
Reinsurance coverage in losses per event		50
NLIC | Catastrophic coverage
Reinsurance activity
Retention amount		8
ASIC | Catastrophic coverage
Reinsurance activity
Retention amount		1.5
Reinsurance in excess of retention		$ 6.5
NLC
Reinsurance activity
Number of layers of protection under reinsurance | item		3
Aggregate coverage in excess of retention for per event retention and sub-catastrophic event	$ 10
Retention amount per event	$ 1
Participation retained (as a percent)	17.50%		0.00%
NLC | Catastrophic coverage | Sub-catastrophic
Reinsurance activity
Retention amount	$ 17.5
NLIC and ASIC | Catastrophic coverage
Reinsurance activity
Number of catastrophe that could be experienced with limited retention | item		1
NLIC and ASIC | Catastrophic coverage | Maximum
Reinsurance activity
Retention amount		$ 8

Segment and Related Informat114

Segment and Related Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Information about the revenues, operating results, goodwill and assets
Number of reportable segments | segment			4
Net interest income (expense)	$ 104,848	$ 115,976	$ 208,268	$ 208,076
Provision (recovery) for loan losses	340	5,853	(1,467)	7,558
Noninterest income	279,434	344,692	514,577	616,131
Noninterest expense	338,517	366,251	646,719	686,743
Income before income taxes	45,425	88,564	77,593	129,906
Goodwill	251,808		251,808		$ 251,808
Total assets	13,689,174		13,689,174		13,365,786
Operating segment | Banking
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)	87,958	102,191	174,596	184,274
Provision (recovery) for loan losses		5,405	(1,531)	7,241
Noninterest income	10,644	25,499	20,823	37,910
Noninterest expense	65,542	62,511	124,913	123,325
Income before income taxes	33,060	59,774	72,037	91,618
Goodwill	207,741		207,741		207,741
Total assets	9,778,476		9,778,476		9,558,718
Operating segment | Broker-Dealer
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)	12,890	10,349	25,441	18,837
Provision (recovery) for loan losses	340	448	64	316
Noninterest income	73,589	92,810	142,135	175,362
Noninterest expense	77,967	86,901	155,743	168,558
Income before income taxes	8,172	15,810	11,769	25,325
Goodwill	7,008		7,008		7,008
Total assets	3,445,391		3,445,391		3,394,911
Operating segment | Mortgage Origination
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)	704	996	1,645	(885)
Noninterest income	162,759	179,637	289,862	323,275
Noninterest expense	150,026	161,369	280,729	293,207
Income before income taxes	13,437	19,264	10,778	29,183
Goodwill	13,071		13,071		13,071
Total assets	2,171,149		2,171,149		1,937,327
Operating segment | Insurance Segment
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)	793	602	1,580	1,119
Noninterest income	36,546	38,413	71,564	76,723
Noninterest expense	39,712	49,416	70,725	86,429
Income before income taxes	(2,373)	(10,401)	2,419	(8,587)
Goodwill	23,988		23,988		23,988
Total assets	292,186		292,186		291,639
Corporate
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)	(2,482)	(2,288)	(4,573)	(4,823)
Noninterest income	1,436	12,608	724	12,609
Noninterest expense	5,340	6,298	14,743	15,685
Income before income taxes	(6,386)	4,022	(18,592)	(7,899)
Total assets	2,078,735		2,078,735		2,106,978
All Other and Eliminations.
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)	4,985	4,126	9,579	9,554
Provision (recovery) for loan losses				1
Noninterest income	(5,540)	(4,275)	(10,531)	(9,748)
Noninterest expense	(70)	(244)	(134)	(461)
Income before income taxes	(485)	$ 95	(818)	$ 266
Total assets	$ (4,076,763)		$ (4,076,763)		$ (3,923,787)

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic earnings per share:
Income attributable to Hilltop	$ 33,080	$ 62,476	$ 57,521	$ 88,910
Less: income applicable to participating shares		(2)		(3)
Net earnings available to Hilltop common stockholders	$ 33,080	$ 62,474	$ 57,521	$ 88,907
Weighted average shares outstanding - basic	95,270	98,154	95,625	98,295
Basic earnings per common share (in dollars per share)	$ 0.35	$ 0.64	$ 0.60	$ 0.90
Diluted earnings per share:
Income attributable to Hilltop	$ 33,080	$ 62,476	$ 57,521	$ 88,910
Weighted average shares outstanding - basic	95,270	98,154	95,625	98,295
Effect of potentially dilutive securities (in shares)	88	260	102	281
Weighted average shares outstanding - diluted	95,358	98,414	95,727	98,576
Diluted earnings per common share (in dollars per share)	$ 0.35	$ 0.63	$ 0.60	$ 0.90

Schedule I - Insurance Incur116

Schedule I - Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net Of Reinsurance (Details) $ in Thousands	Jun. 30, 2018USD ($)claim	Dec. 31, 2017USD ($)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
Total incurred	$ 381,407
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
Total paid	360,913
All outstanding reserves prior to 2014, net of reinsurance	510
Reserve for unpaid losses and allocated loss adjustment expenses, net of reinsurance	21,004	$ 17,470
2,014
Incurred losses and allocated loss adjustment expenses, net of reinsurance
2,014	83,784
2,015	85,037
2,016	84,221
2,017	84,074
Total incurred	84,050
Total of incurred but not reported reserves plus expected development on reported claims	$ 87
Cumulative Number of Reported Claims | claim	13,150
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2,014	$ 70,831
2,015	79,713
2,016	81,684
2,017	83,346
Total paid	83,640
2,015
Incurred losses and allocated loss adjustment expenses, net of reinsurance
2,015	89,646
2,016	88,477
2,017	87,262
Total incurred	87,205
Total of incurred but not reported reserves plus expected development on reported claims	$ 410
Cumulative Number of Reported Claims | claim	15,121
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2,015	$ 71,820
2,016	82,940
2,017	85,507
Total paid	86,175
2,016
Incurred losses and allocated loss adjustment expenses, net of reinsurance
2,016	84,771
2,017	85,189
Total incurred	84,614
Total of incurred but not reported reserves plus expected development on reported claims	$ 1,490
Cumulative Number of Reported Claims | claim	21,451
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2,016	$ 71,543
2,017	81,682
Total paid	82,671
2,017
Incurred losses and allocated loss adjustment expenses, net of reinsurance
2,017	87,899
Total incurred	89,107
Total of incurred but not reported reserves plus expected development on reported claims	$ 2,659
Cumulative Number of Reported Claims | claim	21,308
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2,017	$ 77,675
Total paid	85,089
2,018
Incurred losses and allocated loss adjustment expenses, net of reinsurance
Total incurred	36,431
Total of incurred but not reported reserves plus expected development on reported claims	$ 5,669
Cumulative Number of Reported Claims | claim	5,779
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
Total paid	$ 23,338