Hilltop (HTH) 10-K 15 Feb 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Feb. 14, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	Hilltop Holdings Inc.
Entity Central Index Key	1,265,131
Trading Symbol	hth
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Public Float			$ 1,580
Entity Common Stock, Shares Outstanding		93,611,624

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 644,073	$ 486,977
Federal funds sold	400	405
Assets segregated for regulatory purposes	133,993	186,578
Securities purchased under agreements to resell	61,611	186,537
Securities:
Trading, at fair value	745,466	730,685
Available for sale, at fair value (amortized cost of $886,799 and $748,255, respectively)	875,658	744,319
Held to maturity, at amortized cost (fair value of $341,124 and $349,939, respectively)	351,012	355,849
Equity, at fair value	19,679	21,241
Total securities	1,991,815	1,852,094
Loans held for sale	1,393,246	1,715,357
Loans held for investment, net of unearned income	6,930,458	6,455,798
Allowance for loan losses	(59,486)	(63,686)
Loans held for investment, net	6,870,972	6,392,112
Broker-dealer and clearing organization receivables	1,440,287	1,464,378
Premises and equipment, net	237,373	177,577
Other assets	580,362	615,531
Goodwill	291,435	251,808
Other intangible assets, net	38,005	36,432
Total assets	13,683,572	13,365,786
Deposits:
Noninterest-bearing	2,560,750	2,411,849
Interest-bearing	5,975,406	5,566,270
Total deposits	8,536,156	7,978,119
Broker-dealer and clearing organization payables	1,294,925	1,287,563
Short-term borrowings	1,065,807	1,206,424
Securities sold, not yet purchased, at fair value	81,667	232,821
Notes payable	228,872	208,809
Junior subordinated debentures	67,012	67,012
Other liabilities	435,240	470,231
Total liabilities	11,709,679	11,450,979
Commitments and contingencies (see Notes 18 and 19)
Hilltop stockholders' equity:
Common stock, $0.01 par value, 125,000,000 shares authorized; 93,610,217 and 95,982,184 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively	936	960
Additional paid-in capital	1,489,816	1,526,369
Accumulated other comprehensive loss	(8,627)	(394)
Retained earnings	466,737	384,545
Deferred compensation employee stock trust, net	825	848
Employee stock trust (10,894 and 11,672 shares, at cost, respectively)	(217)	(247)
Total Hilltop stockholders' equity	1,949,470	1,912,081
Noncontrolling interests	24,423	2,726
Total stockholders' equity	1,973,893	1,914,807
Total liabilities and stockholders' equity	$ 13,683,572	$ 13,365,786

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Available for sale, amortized cost	$ 886,799	$ 748,255
Held to maturity, fair value	$ 341,124	$ 349,939
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	93,610,217	95,982,184
Common stock, shares outstanding	93,610,217	95,982,184
Employee stock trust, shares	10,894	11,672

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest income:
Loans, including fees	$ 436,725	$ 411,988	$ 389,637
Securities borrowed	66,914	41,048	29,518
Securities:
Taxable	50,975	36,472	26,233
Tax-exempt	6,834	5,807	6,222
Other	17,980	11,841	4,344
Total interest income	579,428	507,156	455,954
Interest expense:
Deposits	46,002	24,695	15,843
Securities loaned	56,733	32,337	22,510
Short-term borrowings	25,816	13,751	5,803
Notes payable	10,263	10,931	10,849
Junior subordinated debentures	3,663	3,016	2,676
Other	627	678	742
Total interest expense	143,104	85,408	58,423
Net interest income	436,324	421,748	397,531
Provision for loan losses	5,088	14,271	40,620
Net interest income after provision for loan losses	431,236	407,477	356,911
Noninterest income:
Net gains from sale of loans and other mortgage production income	445,116	538,468	606,991
Mortgage loan origination fees	103,563	93,944	96,267
Securities commissions and fees	150,989	156,464	157,906
Investment and securities advisory fees and commissions	90,066	109,920	115,992
Net insurance premiums earned	136,751	142,298	155,545
Other	96,305	163,970	154,264
Total noninterest income	1,022,790	1,205,064	1,286,965
Noninterest expense:
Employees' compensation and benefits	768,688	816,994	834,113
Occupancy and equipment, net	115,207	113,943	109,418
Professional services	105,752	101,521	128,176
Loss and loss adjustment expenses	79,347	94,701	89,243
Other	224,255	242,096	251,521
Total noninterest expense	1,293,249	1,369,255	1,412,471
Income before income taxes	160,777	243,286	231,405
Income tax expense	35,050	110,142	83,461
Net income	125,727	133,144	147,944
Less: Net income attributable to noncontrolling interest	4,286	600	2,050
Income attributable to Hilltop	$ 121,441	$ 132,544	$ 145,894
Earnings per common share:
Basic (in dollars per share)	$ 1.28	$ 1.36	$ 1.48
Diluted (in dollars per share)	$ 1.28	$ 1.36	$ 1.48
Weighted average share information:
Basic (in shares)	94,969	97,137	98,404
Diluted (in shares)	95,067	97,353	98,629

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 125,727	$ 133,144	$ 147,944
Other comprehensive income:
Net unrealized gains (losses) on securities available for sale, net of tax of $(1,558), $(565) and $1,264, respectively	(5,632)	(869)	(2,144)
Reclassification adjustment for gains (losses) included in net income, net of tax of $0, $(6) and $0, respectively		(10)
Comprehensive income	120,095	132,265	145,800
Less: comprehensive income attributable to noncontrolling interest	4,286	600	2,050
Comprehensive income applicable to Hilltop	$ 115,809	$ 131,665	$ 143,750

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net unrealized gains (losses) on securities available for sale, tax	$ (1,558)	$ (565)	$ 1,264
Other comprehensive income reclassification adjustment, tax	$ 0	$ (6)	$ 0

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, 2015	$ 1,736,954	$ 989	$ 1,577,270	$ 2,629	$ 155,475	$ 1,034	$ (443)	$ 1,171	$ 1,738,125
Balance (in shares) at Dec. 31, 2015		98,896,000					22,000
Increase (Decrease) in Stockholders' Equity
Net income	145,894				145,894			2,050	147,944
Other comprehensive income (loss), net	(2,144)			(2,144)					(2,144)
Issuance of common stock	4,139	$ 5	4,134						4,139
Issuance of common stock (in shares)		538,000
Stock-based compensation expense	10,058		10,058						10,058
Common stock issued to board members	429		429						429
Common stock issued to board members (in shares)		22,000
Issuance of common stock related to share-based awards, net	(2,747)	$ (1)	(2,746)						(2,747)
Issuance of common stock related to share-based awards, net (in shares)		(96,000)
Repurchase of common stock	(16,276)	$ (8)	(16,268)						(16,276)
Repurchase of common stock (in shares)		(816,000)
Dividends on common stock	(5,801)				(5,801)				(5,801)
Deferred compensation plan	3					(131)	$ 134		3
Deferred compensation plan (in shares)							(7,000)
Net cash contributed from noncontrolling interest								790	790
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	132,544				132,544			600	133,144
Other comprehensive income (loss), net	(879)			(879)					(879)
Stock-based compensation expense	10,307		10,307						10,307
Common stock issued to board members	451		451						451
Common stock issued to board members (in shares)		17,000
Issuance of common stock related to share-based awards, net	(3,264)	$ 4	(3,268)						(3,264)
Issuance of common stock related to share-based awards, net (in shares)		337,000
Repurchase of common stock	(74,454)	$ (29)	(53,998)		(20,427)				$ (74,454)
Repurchase of common stock (in shares)		(2,916,000)							(1,057,656)
Dividends on common stock	(23,140)				(23,140)				$ (23,140)
Deferred compensation plan	7					(55)	$ 62		7
Deferred compensation plan (in shares)							(3,000)
Net cash distributed to noncontrolling interest								(1,885)	(1,885)
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	121,441				121,441			4,286	125,727
Other comprehensive income (loss), net	(5,632)			(5,632)					(5,632)
Stock-based compensation expense	8,454		8,454						8,454
Common stock issued to board members	654		654						654
Common stock issued to board members (in shares)		30,000
Issuance of common stock related to share-based awards, net	(1,847)	$ 3	(1,850)						(1,847)
Issuance of common stock related to share-based awards, net (in shares)		327,000
Repurchase of common stock	(58,990)	$ (27)	(43,811)		(15,152)				$ (58,990)
Repurchase of common stock (in shares)		(2,729,000)							(2,729,568)
Dividends on common stock	(26,698)				(26,698)				$ (26,698)
Deferred compensation plan	7					(23)	$ 30		7
Deferred compensation plan (in shares)							(1,000)
Adoption of accounting standards (Note 33)				(2,601)	2,601
Net cash contributed from noncontrolling interest								17,411	17,411
Balance at Dec. 31, 2018	$ 1,949,470	$ 936	$ 1,489,816	$ (8,627)	$ 466,737	$ 825	$ (217)	$ 24,423	$ 1,973,893
Balance (in shares) at Dec. 31, 2018		93,610,000					11,000

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Jan. 24, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Cash dividends declared per common share	$ 0.08	$ 0.07	$ 0.07	$ 0.07	$ 0.07	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.28	$ 0.24	$ 0.06

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Activities
Net income	$ 125,727	$ 133,144	$ 147,944
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for loan losses	5,088	14,271	40,620
Depreciation, amortization and accretion, net	(2,345)	(13,869)	(49,765)
Net realized gains on securities		(16)
Net change in fair value of equity securities	2,486
Deferred income taxes	13,197	40,933	(9,690)
Other, net	8,838	12,085	16,564
Net change in securities purchased under agreements to resell	124,926	(97,107)	16,230
Net change in trading securities	(14,781)	(465,151)	(51,388)
Net change in broker-dealer and clearing organization receivables	23,618	(42,449)	(46,775)
Net change in FDIC indemnification asset	22,831	24,890	20,577
Net change in other assets	13,741	(47,352)	41,315
Net change in broker-dealer and clearing organization payables	(7,054)	(2,412)	(33,180)
Net change in other liabilities	(93,890)	(55,557)	11,752
Net change in securities sold, not yet purchased	(151,154)	78,932	23,845
Proceeds from sale of mortgage servicing rights asset	9,303	17,499	7,586
Net gains from sales of loans	(445,116)	(538,468)	(606,991)
Loans originated for sale	(14,287,551)	(15,014,118)	(16,026,911)
Proceeds from loans sold	15,041,676	15,634,027	16,337,299
Net cash provided by (used in) operating activities	389,540	(320,718)	(160,968)
Investing Activities
Proceeds from maturities and principal reductions of securities held to maturity	43,699	56,359	166,522
Proceeds from sales, maturities and principal reductions of securities available for sale	243,708	298,737	396,572
Proceeds from sales, maturities and principal reductions of equity securities	3
Purchases of securities held to maturity	(39,259)	(60,939)	(186,875)
Purchases of securities available for sale	(323,991)	(471,047)	(326,810)
Purchases of equity securities	(933)
Net change in loans held for investment	(110,615)	(216,562)	(555,040)
Purchases of premises and equipment and other assets	(68,079)	(31,152)	(41,941)
Proceeds from sales of premises and equipment and other real estate owned	25,847	32,297	73,032
Net cash received from (paid for) Federal Home Loan Bank and Federal Reserve Bank stock	3,198	34,346	(19,021)
Net cash paid for acquisition	(63,245)
Net cash used in investing activities	(289,667)	(357,961)	(493,561)
Financing Activities
Net change in deposits	196,060	857,155	153,131
Net change in short-term borrowings	(140,617)	(210,865)	469,916
Proceeds from notes payable	664,045	403,136	296,993
Payments on notes payable	(643,921)	(512,193)	(217,630)
Proceeds from issuance of common stock			4,139
Payments to repurchase common stock	(58,990)	(27,388)
Dividends paid on common stock	(26,698)	(23,140)	(5,801)
Net cash contributed from (distributed to) noncontrolling interest	17,411	(1,885)	790
Taxes paid on employee stock awards netting activity	(1,844)	(3,264)	(2,442)
Other, net	(813)	(674)	(868)
Net cash provided by financing activities	4,633	480,882	698,228
Net change in cash and cash equivalents	104,506	(197,797)	43,699
Cash, cash equivalents and restricted cash, beginning of period	673,960	871,757	828,058
Cash, cash equivalents and restricted cash, end of period	778,466	673,960	871,757
Supplemental Disclosures of Cash Flow Information
Cash paid for interest	143,201	84,309	58,429
Cash paid for income taxes, net of refunds	8,378	85,840	88,899
Supplemental Schedule of Non-Cash Activities
Construction in progress related to build-to-suit lease obligations	27,802
Conversion of loans to other real estate owned	6,899	8,853	20,184
Additions to mortgage servicing rights	$ 25,028	$ 16,401	$ 23,381

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of Cash, Cash Equivalents and Restricted Cash to Consolidated Balance Sheets
Cash and due from banks	$ 644,073	$ 486,977	$ 669,357
Federal funds sold	400	405	21,407
Assets segregated for regulatory purposes	133,993	186,578	180,993
Total cash, cash equivalents and restricted cash	$ 778,466	$ 673,960	$ 871,757	$ 828,058

Summary of Significant Accounti

Summary of Significant Accounting and Reporting Policies	12 Months Ended
	Dec. 31, 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. Basis of Presentation 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 (“VIE”) 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 (“HTS Independent Network”) and Hilltop Securities Asset Management, LLC, formerly known as First Southwest Asset Management, LLC. Hilltop Securities is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and 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 Hilltop Securities Asset Management, LLC, a wholly-owned subsidiary of First Southwest Holdings, LLC (“First Southwest”), is a registered investment adviser under the Investment Advisers Act of 1940. From January 1, 2016 to January 22, 2016, Securities Holdings’ subsidiaries also included First Southwest Company, LLC (“FSC”), First Southwest’s principal subsidiary and formerly a broker-dealer registered with the SEC and FINRA and a member of the NYSE. Hilltop also owns 100% of NLC, which operates through its wholly owned subsidiaries, National Lloyds Insurance Company (“NLIC”) and American Summit Insurance Company (“ASIC”). In addition, Hilltop owns 100% of the membership interest in each of HTH Hillcrest Project LLC and Hilltop Investments I, LLC. Hilltop Investments I, LLC owns 50% of the membership interest in HTH Diamond Hillcrest Land LLC which is consolidated under the aforementioned VIE Subsections of the ASC. These entities are related to the Hilltop Plaza investment discussed in detail in Note 17 to the consolidated financial statements and are collectively referred to as the “Hilltop Plaza Entities”. 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. 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. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“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, 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. Acquisition Accounting Acquisitions are accounted for under the acquisition method of accounting. Purchased assets, including identifiable intangible assets, and assumed liabilities are recorded at their respective acquisition date fair values. If the fair value of net assets purchased exceeds the consideration given, a bargain purchase gain is recognized. If the consideration given exceeds the fair value of the net assets received, goodwill is recognized. Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell (reverse repurchase agreements or reverse repos) are treated as collateralized financings and are carried at the amounts at which the securities will subsequently be resold as specified in the agreements. The Company is in possession of collateral with a fair value equal to or in excess of the contract amounts. 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, prepayment risk or other factors related to interest rate and prepayment risk. 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 reflect 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 subsequently 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 cash flows related to these securities, management primarily considers, (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. Loans Held for Sale Loans held for sale consist primarily of single-family residential mortgages funded through PrimeLending. These loans are generally on the consolidated balance sheet between 30 and 45 days. Substantially all mortgage loans originated by PrimeLending are sold to various investors in the secondary market, the majority with servicing released. Mortgage loans held for sale are carried at fair value in accordance with the provisions of the Fair Value Option Subsections of the ASC (the “Fair Value Option”). Changes in the fair value of the loans held for sale are recognized in earnings and fees and costs associated with origination are recognized as incurred. The specific identification method is used to determine realized gains and losses on sales of loans, which are reported as net gains (losses) in noninterest income. Loans sold are subject to certain indemnification provisions with investors, including the repurchase of loans sold and repayment of certain sales proceeds to investors under certain conditions. In addition, certain mortgage loans guaranteed by U.S. Government agencies and sold into Government National Mortgage Association (“GNMA”) pools may, under certain conditions specified in the government programs, become subject to repurchase by PrimeLending. When such loans subject to repurchase no longer qualify for sale accounting, they are reported as loans held for sale in the consolidated balance sheets. Loans Held for Investment Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal reduced by unearned income, net unamortized deferred fees and an allowance for loan losses. Unearned income on installment loans and interest on other loans is recognized using the effective interest method. Net fees received for providing loan commitments and letters of credit that result in loans are deferred and amortized to interest income over the life of the related loan, beginning with the initial borrowing. Net fees on commitments and letters of credit that are not expected to be funded are amortized to noninterest income over the commitment period. Income on direct financing leases is recognized on a basis that achieves a constant periodic rate of return on the outstanding investment. Impaired loans include non-accrual loans, troubled debt restructurings, purchased credit impaired (“PCI”) loans and partially charged-off loans. The accrual of interest on impaired loans is discontinued when, in management’s opinion, there is a clear indication that the borrower’s cash flow may not be sufficient to meet principal and interest payments, which is generally when a loan is 90 days past due unless the asset is both well secured and in the process of collection. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is charged against income. If the ultimate collectability of principal, wholly or partially, is in doubt, any payment received on a loan on which the accrual of interest has been suspended is applied to reduce principal to the extent necessary to eliminate such doubt. Once the collection of the remaining recorded loan balance is fully expected, interest income is recognized on a cash basis. Management has defined the loans acquired in a business combination as acquired loans. Acquired loans are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan losses. At acquisition, acquired loans are segregated between those considered to be credit impaired and those without credit impairment at acquisition. To make this determination, management considered such factors as past due status, non-accrual status and credit risk ratings. The fair value of acquired performing loans was determined by discounting expected cash flows, both principal and interest, at prevailing market interest rates. The difference between the fair value and principal balances due at acquisition date, the fair value discount, is accreted into income over the estimated life of each loan. Loans acquired in the Federal Deposit Insurance Corporation (“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”) were previously subject to loss-share agreements with the FDIC. At the close of business on September 30, 2018, the loss-share agreements for commercial assets with the FDIC expired, except for certain obligations on the part of the Bank that survived. On October 17, 2018, the Bank and the FDIC entered into a Termination Agreement pursuant to which all rights and obligations of the Bank and the FDIC under the FDIC loss-share agreements were resolved and terminated. Accordingly, loans which were previously referred to as either “covered loans” if covered by the loss-share agreements or otherwise “non-covered loans” are now collectively referred to as “loans held for investment.” PCI loans acquired by the Company are accounted for either on an individual loan basis or in pools. The Company has established under its PCI accounting policy a framework to aggregate certain acquired 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 similar risk characteristics used for the pooling of PCI loans are risk grade and loan collateral type. PCI loans show evidence of credit deterioration that make it probable that not all contractually required principal and interest payments will be collected. Their fair value was initially based on an estimate of cash flows, both principal and interest, expected to be collected, discounted at prevailing market rates of interest. Management estimates cash flows using key assumptions such as default rates, loss severity rates assuming default, prepayment speeds and estimated collateral values. The excess of cash flows expected to be collected from a loan or pool over its estimated fair value at acquisition is referred to as accretable yield and is recognized in interest income using an effective yield method over the remaining life of the loan or pool. The excess of total contractual cash flows over the cash flows expected to be received at acquisition is referred to as the nonaccretable difference. Subsequent to acquisition, management must update these estimates of cash flows expected to be collected at each reporting date. These updates require the continued use of key assumptions and estimates, similar to those used in the initial estimate of fair value. The Bank accretes the discount for PCI loans for which it can predict the timing and amount of cash flows. PCI loans for which a discount is accreted are reported as performing loans. Allowance for Loan Losses The allowance for loan losses is a reserve established through a provision for loan losses charged to or recovered from expense, which represents management’s best estimate of probable losses inherent in the existing portfolio of loans at the balance sheet date. The allowance for loan losses includes allowance allocations calculated in accordance with the regulatory Interagency Policy Statement on the Allowance for Loan and Lease Losses and the Receivables and Contingencies Topics of the ASC. The level of the allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions, and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond its control, including the performance of the loan portfolio, the economy and changes in interest rates. The Bank’s allowance for loan losses consists of three elements: (i) specific valuation allowances established for probable losses on individually impaired loans; (ii) general historical valuation allowances calculated based on historical loan loss experience for homogenous loans with similar collateral; and (iii) valuation allowances to adjust general reserves based on current economic conditions and other qualitative risk factors both internal and external to the Bank. The Bank’s methodology regarding the calculation of the allowance for loan losses is discussed in more detail within Note 5 to the consolidated financial statements. Broker-Dealer and Clearing Organization Transactions Amounts recorded in broker-dealer and clearing organization receivables and payables include securities lending activities, as well as amounts related to securities transactions for either customers of the Hilltop Broker-Dealers or for the accounts of the Hilltop Broker-Dealers. Securities borrowed and securities loaned transactions are generally reported as collateralized financings. Securities borrowed transactions require the Hilltop Broker-Dealers to deposit cash, letters of credit, or other collateral with the lender. With respect to securities loaned, the Hilltop Broker-Dealers receive collateral in the form of cash or other assets in an amount generally in excess of the market value of securities loaned. The Hilltop Broker-Dealers monitor the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. Interest income and interest expense associated with collateralized financings is included in the accompanying consolidated statements of operations. Insurance Premiums Receivable Insurance premiums receivable include premiums written and not yet collected. NLC routinely evaluates the receivable balance to determine if an allowance for uncollectible amounts is necessary. At December 31, 2018 and 2017, NLC determined that no valuation allowance was necessary. Deferred Policy Acquisition Costs Costs of acquiring insurance vary with, and are primarily related to, the successful acquisition of new and renewal business. These costs primarily consist of commissions, premium taxes and underwriting expenses, and are deferred and amortized over the terms of the policies or reinsurance treaties to which they relate. Proceeds from reinsurance transactions that represent recovery of acquisition costs reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense in proportion to net revenue recognized. Future investment income is considered in determining the recoverability of deferred policy acquisition costs. NLC regularly reviews the categories of acquisition costs that are deferred and assesses the recoverability of this asset. A premium deficiency and a corresponding charge to income is recognized if the sum of the expected loss and LAE, unamortized policy acquisition costs, and maintenance costs exceed related unearned insurance premiums and anticipated investment income. At December 31, 2018 and 2017, there was no premium deficiency. Reinsurance In the normal course of business, NLC seeks to reduce the loss that may arise from catastrophes or other events that could cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the reinsured policy. NLC routinely evaluates the receivable balance to determine if any uncollectible balances exist. 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 included in other assets within the consolidated balance sheets. Reinsurance assumed from other companies, including assumed premiums written and earned, and losses and LAE, is accounted for in the same manner as direct insurance written. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization computed principally on the straight-line method over the estimated useful lives of the assets, which range between 3 and 40 years. Gains or losses on disposals of premises and equipment are included in results of operations. Other Real Estate Owned Real estate acquired through foreclosure (“OREO”) is included in other assets within the consolidated balance sheets and is carried at management’s estimate of fair value, less estimated cost to sell. Any excess of recorded investment over fair value, less cost to sell, is charged against either the allowance for loan losses or the related PCI pool discount when property is initially transferred to OREO. Subsequent to the initial transfer to OREO, downward valuation adjustments are charged against earnings. Valuation adjustments, revenue and expenses from operations of the properties and resulting gains or losses on sale are included within the consolidated statements of operations in other noninterest income or expense, as appropriate. Prior to the termination of the FDIC loss-share agreements, acquired OREO previously subject to FDIC loss-share agreements was referred to as “covered OREO” and reported separately in the consolidated balance sheets. Covered OREO was reported exclusive of expected reimbursement cash flows from the FDIC. Foreclosed covered loan collateral was transferred into covered OREO at the collateral’s fair value, less selling costs. Covered OREO was initially recorded at its estimated fair value based on similar market comparable valuations, less estimated selling costs. Subsequently, loan collateral transferred to OREO was recorded at its net realizable value. Any subsequent valuation adjustments due to declines in fair value of the covered OREO were charged to noninterest expense, while any recoveries of previous valuation decreases were credited to noninterest expense. Subsequent to the termination of the loss-share agreements, OREO which was previously referred to as “covered OREO” if covered by the loss-share agreements or otherwise “non-covered OREO” is now collectively referred to as OREO. FDIC Indemnification Asset As previously discussed, the loss-share agreements with the FDIC entered into in connection with the FNB Transaction were terminated in the fourth quarter of 2018. Subsequent to the termination of the loss-share agreements and the receipt of payment from the FDIC, the remaining balance of the amounts receivable from the FDIC under the loss-share agreements (the “FDIC Indemnification Asset”) was removed from the consolidated balance sheets. The balance of the FDIC Indemnification Asset as of December 31, 2017, is included in other assets within the consolidated balance sheets. Prior to the termination of the loss-share agreements, the Company accounted for the FDIC Indemnification Asset in accordance with the Business Combination Topic of the ASC. The FDIC Indemnification Asset was initially recorded at fair value, based on the discounted value of expected future cash flows under the loss-share agreements. The difference between the present value and the undiscounted cash flows the Bank expected to collect from the FDIC was accreted into noninterest income or amortized into noninterest expense within the consolidated statements of operations over the life of the FDIC Indemnification Asset. The FDIC Indemnification Asset was reviewed quarterly and the accretion rate was adjusted for changes in the timing of cash flows expected to be collected from the FDIC. Cumulative net losses over the life of the loss-share agreements of less than $240.4 million reduced the value of the FDIC Indemnification Asset. Any amortization of changes in value of the FDIC Indemnification Asset was limited to the contractual term of the loss-share agreements. Changes to the FDIC Indemnification Asset were recorded as adjustments to other noninterest income or expense, as appropriate, within the consolidated statements of operations over the life of the loss-share agreements. Debt Issuance Costs The Company capitalizes debt issuance costs associated with financing of debt. These costs are amortized using the effective interest method over the repayment term of the debt. Unamortized debt issuance costs are presented in the consolidated balance sheets as a direct reduction from the associated debt liability. Debt issuance costs of $0.2 million during 2018 and $0.1 million during each of 2017 and 2016 were amortized and included in interest expense within the consolidated statements of operations. In April 2015, debt issuance costs of $1.9 million were capitalized in connection with Hilltop’s issuance of the 5% senior notes due 2025. Goodwill Goodwill, which represents the excess of cost over the fair value of the net assets acquired, is allocated to reporting units and tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount should be assessed. The Company performs required annual impairment tests of its goodwill as of October 1 st for each of its reporting units, which is one level below an operating segment. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill. The goodwill impairment test requires the Company to make judgments in determining what assumptions to use in the calculation. The process consists of estimating the fair value of each reporting unit based on valuation techniques, including a discounted cash flow model using revenue and profit forecasts and recent industry transaction and trading multiples of peers, and comparing those estimated fair values with the carrying values of the assets and liabilities of the reporting unit, which includes the allocated goodwill. If the estimated fair value is less than the carrying value, the Company is required to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, any loss recognized will not exceed the total amount of goodwill allocated to that reporting unit. Additional information concerning the results of the Company’s impairment test of goodwill is included in Note 9 to the consolidated financial statements. Intangibles and Other Long-Lived Assets Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. The Company’s intangible assets primarily consist of core deposits, trade names and customer relationships. Intangible assets with definite useful lives are generally amortized on the straight-line method over their estimated lives, although certain intangibles, including core deposits, and customer and agent relationships, are amortized on an accelerated basis. Amortization of intangible assets is recorded in other noninterest expense within the consolidated statements of operations. Intangible assets with indefinite useful lives are tested for impairment on an annual basis as of October 1 st , or more often if events or circumstances indicate there may be impairment, and not amortized until their lives are determined to be definite. Intangible assets with definite useful lives, premises and equipment, and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. Impaired assets are recorded at fair value. Mortgage Servicing Rights The Company determines its classes of residential mortgage servicing assets based on the asset type being serviced along with the methods used to manage the risk inherent in the servicing assets, which includes the market inputs used to value the servicing assets. The Company measures its servicing assets at fair value and reports changes in fair value through earnings. The retained mortgage servicing rights (“MSR”) asset is measured at fair value as of the date of sale of the related mortgage loan. Subsequent fair value measurements of the MSR asset are determined by valuing the projected net servicing cash flows, which are then discounted to estimate fair value using a discounted cash flow model. Assumptions used include market discount rates, anticipated prepayment speeds, delinquency and foreclosure rates, and ancillary fee income. The model assumptions and the MSR asset fair value estimates are compared to observable trades of similar portfolios as well as to MSR asset broker valuations and industry surveys, as available. The expected life of the loan can vary from management’s estimates due to prepayments by borrowers, especially when rates fall. Prepayments in excess of management’s estimates would adversely impact the recorded value of the MSR asset. The value of the MSR asset is also dependent upon the discount rate used in the model, which is based on current market rates that are reviewed by management on an ongoing basis. Any increase in the discount rate would reduce the value of the MSR asset. Derivative Financial Instruments The Company enters into various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. The Company’s derivative financial instruments also include interest rate lock commitments (“IRLCs”) executed with its customers that allow those customers to obtain a mortgage loan on a future date at an agreed-upon interest rate. The IRLCs, forward commitments, interest rate swaps, U.S. Treasury bond futures and options and Eurodollar futures meet the definition of a derivative under the provisions of the Derivatives and Hedging Topic of the ASC. Derivatives are recorded at fair value in the consolidated balance sheets. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the ex

Acquisition

Acquisition	12 Months Ended
	Dec. 31, 2018
Acquisition
Acquisition	2. Acquisition BORO Acquisition On August 1, 2018, in an effort to expand its Houston-area banking operations, the Company acquired privately-held The Bank of River Oaks (“BORO”) in an all-cash transaction (the “BORO Acquisition”). Pursuant to the terms of the definitive agreement, the Company paid cash in the aggregate amount of $85 million to the shareholders and option holders of BORO. The operations of BORO are included in the Bank’s operating results beginning August 1, 2018. BORO’s results of operations prior to the acquisition date are not included in the Company’s consolidated operating results. The BORO Acquisition was accounted for using the acquisition method of accounting, and accordingly, purchased assets, including identifiable intangible assets, and assumed liabilities were recorded at their respective acquisition date fair values. The resulting fair values of the identifiable assets acquired and liabilities assumed from BORO at August 1, 2018 are summarized in the following table (in thousands). Cash and due from banks $ 21,756 Securities 60,477 Loans held for investment 326,618 Other assets 25,912 Total identifiable assets acquired 434,763 Deposits 376,393 Short-term borrowings 10,000 Other liabilities 2,996 Total liabilities assumed 389,389 Net identifiable assets acquired 45,374 Goodwill resulting from the acquisition 39,627 Net assets acquired $ 85,001 The goodwill of $39.6 million resulting from the BORO Acquisition represents the inherent long-term value expected from the business opportunities created from combining BORO with the Company. The Company used significant estimates and assumptions to value the identifiable assets acquired and liabilities assumed. The amount of goodwill recorded in connection with the Company’s acquisition of BORO is not deductible for tax purposes. Included within the fair value of other assets in the table above are identifiable core deposits intangible assets recorded in connection with the BORO Acquisition of $10.0 million which is being amortized on an accelerated basis over an estimated useful life of six years. The fair value of the core deposit intangible assets was estimated using the net cost savings method, a variation of the income approach. This involved the use of the following significant assumptions: cost of deposits, customer attrition rate, and discount rate. During 2018, pre-tax transaction- and integration-related expenses of $8.2 million associated with the BORO Acquisition are included in noninterest expense within the consolidated statement of operations. Such expenses were for professional services and other incremental employee costs associated with the integration of BORO’s operations. In connection with the BORO Acquisition, the Company acquired loans both with and without evidence of credit quality deterioration since origination. The acquired loans were initially recorded at fair value with no carryover of any allowance for loan losses. Acquired loans were segregated between those considered to be PCI loans and those without credit impairment at acquisition. The following table presents details on acquired loans at the acquisition date (in thousands). Loans, excluding PCI Total Loans Held PCI Loans Loans for Investment Commercial real estate $ 119,188 $ 5,350 $ 124,538 1 - 4 family residential 55,487 39 55,526 Construction and land development 37,134 — 37,134 Commercial and industrial 98,259 2,127 100,386 Consumer 9,021 13 9,034 Total $ 319,089 $ 7,529 $ 326,618 The following table presents information about the PCI loans at acquisition (in thousands). Contractually required principal and interest payments $ 10,730 Nonaccretable difference 2,859 Cash flows expected to be collected 7,871 Accretable difference 342 Fair value of loans acquired with a deterioration of credit quality $ 7,529 The following table presents information about the acquired loans without credit impairment at acquisition (in thousands). Contractually required principal and interest payments $ 381,551 Contractual cash flows not expected to be collected 15,286 Fair value at acquisition 319,089

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 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 the retained 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 December 31, 2018 and 2017, the aggregate fair value of PrimeLending’s mortgage loans held for sale accounted for under the Fair Value Option was $1.26 billion and $1.58 billion, respectively, and the unpaid principal balance of those loans was $1.21 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, as further described below. 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. Trading Securities — Trading securities are reported at fair value primarily using either Level 1 or Level 2 inputs in the same manner as discussed below for available for sale securities. Available For Sale Securities — Most securities available for sale are reported at fair value using Level 2 inputs. The Company obtains fair value measurements from independent pricing services. As the Company is responsible for the determination of fair value, control processes are designed to ensure that the fair values received from independent pricing services are reasonable and the valuation techniques and assumptions used appear reasonable and consistent with prevailing market conditions. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the financial instruments’ terms and conditions, among other things. Equity Securities - For public common and preferred equity stocks, the determination of fair value uses Level 1 inputs based on observable market transactions. Loans Held for Sale — Mortgage loans held for sale are reported at fair value, as discussed above, using Level 2 inputs that consist of commitments on hand from investors or prevailing market prices. These instruments are held for relatively short periods, typically no more than 30 days. As a result, changes in instrument-specific credit risk are not a significant component of the change in fair value. 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, or unobservable, 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. Derivatives — Derivatives, which are included in other assets and liabilities within the Company’s consolidated balance sheets, are reported at fair value using either Level 2 or Level 3 inputs. The Bank uses dealer quotes to value interest rate swaps, forward purchase commitments and forward sale commitments executed for both hedging and non-hedging purposes. PrimeLending and the Hilltop Broker-Dealers use dealer quotes to value forward purchase commitments and forward sale commitments, respectively, executed for both hedging and non-hedging purposes. PrimeLending also issues IRLCs to its customers and the Hilltop Broker-Dealers issue forward purchase commitments to its clients that are valued based on the change in the fair value of the underlying mortgage loan from inception of the IRLC or purchase commitment to the balance sheet date, adjusted for projected loan closing rates. PrimeLending determines the value of the underlying mortgage loan as discussed in “Loans Held for Sale”, above. The Hilltop Broker-Dealers determine the value of the underlying mortgage loan from prices of comparable securities used to value forward sale commitments. Additionally, PrimeLending also uses dealer quotes to value Eurodollar futures and U.S Treasury bond futures and options used to hedge interest rate risk, and the Hilltop Broker-Dealers use dealer quotes to value Eurodollar futures and U.S. Treasury bond futures and options used to hedge changes in the fair value of securities. MSR Asset — 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 10 to the consolidated financial statements. Securities Sold, Not Yet Purchased — Securities sold, not yet purchased are reported at fair value primarily using either Level 1 or Level 2 inputs in the same manner as discussed above for trading and available for sale securities. 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 December 31, 2018 Inputs Inputs Inputs Fair Value Trading securities $ 7,947 $ 737,519 $ — $ 745,466 Available for sale securities — 875,658 — 875,658 Equity securities 19,679 — — 19,679 Loans held for sale — 1,207,311 50,464 1,257,775 Derivative assets — 35,010 — 35,010 MSR asset — — 66,102 66,102 Securities sold, not yet purchased 33,000 48,667 — 81,667 Derivative liabilities — 26,355 — 26,355 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 table includes 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 Year Additions Reductions Net Income Income (Loss) End of Year Year ended December 31, 2018 Loans held for sale $ 36,972 $ 61,573 $ (41,801) $ (6,280) $ — $ 50,464 MSR asset 54,714 25,028 (9,303) (4,337) — 66,102 Total $ 91,686 $ 86,601 $ (51,104) $ (10,617) $ — $ 116,566 Year ended December 31, 2017 Loans held for sale $ 35,801 $ 36,891 $ (26,773) $ (8,947) $ — $ 36,972 MSR asset 61,968 16,401 (17,499) (6,156) — 54,714 Total $ 97,769 $ 53,292 $ (44,272) $ (15,103) $ — $ 91,686 Year ended December 31, 2016 Trading securities $ 1 $ — $ — $ (1) $ — $ — Loans held for sale 25,880 60,999 (39,637) (11,441) — 35,801 MSR asset 52,285 23,381 (7,586) (6,112) — 61,968 Total $ 78,166 $ 84,380 $ (47,223) $ (17,554) $ — $ 97,769 All net realized and unrealized gains (losses) in the table above are reflected in the accompanying consolidated financial statements. Excluding the trading securities activity noted above, the unrealized gains (losses) relate to financial instruments still held at December 31, 2018. For Level 3 financial instruments measured at fair value on a recurring basis at December 31, 2018 and 2017, the significant unobservable inputs used in the fair value measurements were as follows. Range (Weighted-Average) December 31, Financial instrument Valuation Technique Unobservable Inputs 2018 2017 Loans held for sale Discounted cash flows / Market comparable Projected price 95 - 96 % ( 95 %) 90 - 95 % ( 95 %) MSR asset Discounted cash flows Constant prepayment rate 10.51 % 10.93 % Discount rate 11.11 % 11.03 % The Company had no transfers between Levels 1 and 2 during the periods presented. Any transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. 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). Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 Other Total Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ (8,063) $ — $ (8,063) $ 10,655 $ — $ 10,655 $ (8,275) $ — $ (8,275) MSR asset (4,337) — (4,337) (6,156) — (6,156) (6,112) — (6,112) The Company also determines the fair value of certain assets and liabilities on a non-recurring basis. In particular, the fair value of all assets acquired and liabilities assumed in an acquisition of a business are determined at their respective acquisition date fair values. 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. PCI loans with a fair value of $172.9 million, $822.8 million, $73.5 million and $7.5 million were acquired by the Company upon completion of the merger with PCC (the “PlainsCapital Merger”), the FNB Transaction, the acquisition of SWS Group, Inc. (the “SWS Merger”) and the BORO Acquisition, respectively (collectively, the “Bank Transactions”). 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. Estimates for these significant unobservable inputs and the resulting weighted average expected loss on PCI loans were as follows. PCI Loans PlainsCapital FNB SWS BORO December 31, 2018 Merger Transaction Merger Acquisition Weighted average default rate % % % % Weighted average loss severity rate % % % % Weighted average prepayment speed % % % % Resulting weighted average expected loss on PCI loans % % % % PCI Loans PlainsCapital FNB SWS December 31, 2017 Merger Transaction Merger Weighted average default rate % % % Weighted average loss severity rate % % % Weighted average prepayment speed % % % Resulting weighted average expected loss on PCI loans % % % 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 OREO properties. The resulting fair value measurements are classified as Level 2 inputs. At December 31, 2018 and 2017, the estimated fair value of OREO was $27.6 million and $40.6 million, respectively. As previously discussed, subsequent to the termination of the loss-share agreements, OREO which was previously referred to as “covered OREO” if covered by the loss-share agreements or otherwise “non-covered OREO” is now collectively referred to as OREO. The amounts are included in other assets within the consolidated balance sheets. During the reported periods, all fair value measurements for 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 Level 1 Level 2 Level 3 Total Year Ended December 31, December 31, 2018 Inputs Inputs Inputs Fair Value 2018 2017 2016 Impaired loans held for investment $ — $ — $ 76,711 $ 76,711 $ 2,481 $ (2,402) $ 3,643 Other real estate owned — 19,976 — 19,976 (2,757) (4,436) (19,036) 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. The methods for determining estimated fair value for financial assets and liabilities measured at fair value on a recurring or non-recurring basis are discussed above. For other financial assets and liabilities, the Company utilizes quoted market prices, if available, to estimate the fair value of financial instruments. Because no quoted market prices exist for a significant portion of the Company’s financial instruments, the fair value of such instruments has been derived based on management’s assumptions with respect to future economic conditions, the amount and timing of future cash flows, and estimated discount rates. Different assumptions could significantly affect these estimates. Accordingly, the estimates provided herein do not necessarily indicate amounts which could be realized in a current transaction. Further, as it is management’s intent to hold a significant portion of its financial instruments to maturity, it is not probable that the fair values shown below will be realized in a current transaction. Because of the wide range of permissible valuation techniques and the numerous estimates which must be made, it may be difficult to make reasonable comparisons of the Company’s fair value information to that of other financial institutions. The aggregate estimated fair value amount should in no way be construed as representative of the underlying value of Hilltop and its subsidiaries. The following methods and assumptions are typically used in estimating the fair value disclosures for financial instruments: Cash and Cash Equivalents — For cash and due from banks and federal funds sold, the carrying amount is a reasonable estimate of fair value. Assets Segregated for Regulatory Purposes — Assets segregated for regulatory purposes may consist of cash and securities with carrying amounts that approximate fair value. Securities Purchased Under Agreements to Resell — Securities purchased under agreements to resell are carried at the amounts at which the securities will subsequently be resold as specified in the agreements. The carrying amounts approximate fair value due to their short-term nature. Held to Maturity Securities — For securities held to maturity, estimated fair value equals quoted market price, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Loans Held for Sale — Loans held for sale consist primarily of certain mortgage loans held for sale that are subject to purchase by related parties. Such loans are reported at fair value, as discussed above, using Level 2 inputs that consist of commitments on hand from investors or prevailing market prices. Loans Held for Investment — In accordance with ASU 2016-01, effective January 1, 2018, the fair values of loans held for investment are measured using an exit price method. Broker-Dealer and Clearing Organization Receivables and Payables — The carrying amount approximates their fair value. FDIC Indemnification Asset — Prior to termination of the loss-share agreements, the fair value of the FDIC Indemnification Asset was based on Level 3 inputs, including the discounted value of expected future cash flows under the loss-share agreements. The discount rate contemplated the credit worthiness of the FDIC as counterparty to this asset, and considered an incremental discount rate risk premium reflective of the inherent uncertainty associated with the timing of the cash flows. Deposits — The estimated fair value of demand deposits, savings accounts and NOW accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. The carrying amount for variable-rate certificates of deposit approximates their fair values. Short-Term Borrowings — The carrying amounts of federal funds purchased, borrowings under repurchase agreements, Federal Home Loan Bank (“FHLB”) and other short-term borrowings approximate their fair values. Debt — The fair values are estimated using discounted cash flow analysis based on current incremental borrowing rates for similar types of borrowing arrangements. Other Assets and Liabilities — Other assets and liabilities primarily consists of cash surrender value of life insurance policies and accrued interest receivable and payable with carrying amounts that approximate their fair values using Level 2 inputs. The fair value of certain other receivables and investments is based on Level 3 inputs. 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 December 31, 2018 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 644,473 $ 644,473 $ — $ — $ 644,473 Assets segregated for regulatory purposes 133,993 133,993 — — 133,993 Securities purchased under agreements to resell 61,611 — 61,611 — 61,611 Held to maturity securities 351,012 — 341,124 — 341,124 Loans held for sale 135,471 — 135,471 — 135,471 Loans held for investment, net 6,870,972 — 578,363 6,445,810 7,024,173 Broker-dealer and clearing organization receivables 1,440,287 — 1,440,287 — 1,440,287 Other assets 69,720 — 68,573 1,147 69,720 Financial liabilities: Deposits 8,536,156 — 8,528,947 — 8,528,947 Broker-dealer and clearing organization payables 1,294,925 — 1,294,925 — 1,294,925 Short-term borrowings 1,065,807 — 1,065,807 — 1,065,807 Debt 295,884 — 293,685 — 293,685 Other liabilities 3,482 — 3,482 — 3,482 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 Assets segregated for regulatory purposes 186,578 186,578 — — 186,578 Securities purchased under agreements to resell 186,537 — 186,537 — 186,537 Held to maturity securities 355,849 — 349,939 — 349,939 Loans held for sale 133,753 — 133,754 — 133,754 Loans held for investment, net 6,392,112 — 577,889 6,098,254 6,676,143 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 $35.8 million and $38.7 million at December 31, 2018 and 2017, respectively, which are included within other assets in the consolidated balance sheets. Of the $35.8 million of such equity investments held at December 31, 2018, $20.4 million do not have readily determinable fair values as defined in ASU 2016-01 (see Note 33) and each is 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). Year ended December 31, 2018 Balance, beginning of year $ 22,946 Additional investments 8,643 Upward adjustments 3,663 Impairments and downward adjustments (4,083) Dispositions (10,793) Balance, end of year $ 20,376

Securities

Securities	12 Months Ended
	Dec. 31, 2018
Securities
Securities	4. Securities The fair value of trading securities are summarized as follows (in thousands). December 31, 2018 2017 U.S. Treasury securities $ 7,945 $ — U.S. government agencies: Bonds 1,494 52,078 Residential mortgage-backed securities 309,455 372,817 Commercial mortgage-backed securities 4,239 6,125 Collateralized mortgage obligations 206,813 5,122 Corporate debt securities 59,293 96,182 States and political subdivisions 126,748 170,413 Unit investment trusts 19,913 22,612 Private-label securitized product 5,680 1,631 Other 3,886 3,705 Totals $ 745,466 $ 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 obligation 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 $81.7 million and $232.8 million at December 31, 2018 and 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 December 31, 2018 Cost Gains Losses Fair Value U.S. Treasury securities $ 11,552 $ 30 $ (44) $ 11,538 U.S. government agencies: Bonds 85,492 552 (433) 85,611 Residential mortgage-backed securities 391,428 608 (6,962) 385,074 Commercial mortgage-backed securities 11,703 189 (120) 11,772 Collateralized mortgage obligations 281,450 385 (5,436) 276,399 Corporate debt securities 53,614 268 (580) 53,302 States and political subdivisions 51,560 608 (206) 51,962 Totals $ 886,799 $ 2,640 $ (13,781) $ 875,658 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 December 31, 2018 Cost Gains Losses Fair Value U.S. Treasury securities $ 9,903 $ 3 $ — $ 9,906 U.S. government agencies: Bonds $ 39,018 $ — $ (1,479) $ 37,539 Residential mortgage-backed securities 21,903 — (263) 21,640 Commercial mortgage-backed securities 87,065 271 (1,462) 85,874 Collateralized mortgage obligations 142,474 — (5,000) 137,474 States and political subdivisions 50,649 91 (2,049) 48,691 Totals $ 351,012 $ 365 $ (10,253) $ 341,124 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 losses of $0.9 million and unrealized net gains of $1.6 million from equity securities with fair values of $19.7 million and $21.2 million held at December 31, 2018 and December 31, 2017, respectively. The Company recognized net losses of $3.3 million during 2018, due to changes in the fair value of equity securities still held at the balance sheet date. During 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). December 31, 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 1 $ 981 $ 6 6 $ 15,449 $ 69 Unrealized loss for twelve months or longer 3 3,556 39 1 4,150 34 4 4,537 45 7 19,599 103 U.S. government agencies: Bonds: Unrealized loss for less than twelve months 3 24,772 5 10 83,476 366 Unrealized loss for twelve months or longer 3 30,472 428 — — — 6 55,244 433 10 83,476 366 Residential mortgage-backed securities: Unrealized loss for less than twelve months 8 66,791 432 15 121,968 820 Unrealized loss for twelve months or longer 27 194,228 6,530 11 93,358 2,920 35 261,019 6,962 26 215,326 3,740 Commercial mortgage-backed securities: Unrealized loss for less than twelve months — — — 1 5,048 48 Unrealized loss for twelve months or longer 1 4,953 120 — — — 1 4,953 120 1 5,048 48 Collateralized mortgage obligations: Unrealized loss for less than twelve months 11 44,394 498 16 90,886 819 Unrealized loss for twelve months or longer 28 140,483 4,938 17 80,492 3,323 39 184,877 5,436 33 171,378 4,142 Corporate debt securities: Unrealized loss for less than twelve months 8 16,256 282 1 5,073 25 Unrealized loss for twelve months or longer 8 15,665 297 — — — 16 31,921 579 1 5,073 25 States and political subdivisions: Unrealized loss for less than twelve months 29 8,590 27 9 6,981 97 Unrealized loss for twelve months or longer 18 9,029 179 9 2,876 18 47 17,619 206 18 9,857 115 Total available for sale: Unrealized loss for less than twelve months 60 161,784 1,250 58 328,881 2,244 Unrealized loss for twelve months or longer 88 398,385 12,531 38 180,876 6,295 148 $ 560,169 $ 13,781 96 $ 509,757 $ 8,539 December 31, 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 $ 5,950 $ 50 Unrealized loss for twelve months or longer 4 37,539 1,479 3 31,877 1,138 4 37,539 1,479 4 37,827 1,188 Residential mortgage-backed securities: Unrealized loss for less than twelve months 1 8,411 89 — — — Unrealized loss for twelve months or longer 3 13,229 174 — — — 4 21,640 263 — — — Commercial mortgage-backed securities: Unrealized loss for less than twelve months 1 4,973 27 7 39,396 271 Unrealized loss for twelve months or longer 13 59,670 1,435 2 12,659 464 14 64,643 1,462 9 52,055 735 Collateralized mortgage obligations: Unrealized loss for less than twelve months 1 2,051 26 10 37,064 264 Unrealized loss for twelve months or longer 24 135,423 4,974 12 128,270 3,705 25 137,474 5,000 22 165,334 3,969 States and political subdivisions: Unrealized loss for less than twelve months 9 6,431 56 22 11,079 71 Unrealized loss for twelve months or longer 86 32,909 1,993 46 18,598 688 95 39,340 2,049 68 29,677 759 Total held to maturity: Unrealized loss for less than twelve months 12 21,866 198 40 93,489 656 Unrealized loss for twelve months or longer 130 278,770 10,055 63 191,404 5,995 142 $ 300,636 $ 10,253 103 $ 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 2018, 2017 and 2016, the Company did not record any OTTI. While some of the securities held in the investment portfolio have decreased in value since the date of acquisition, the severity of loss and the duration of the loss position are not believed to be significant enough to warrant 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, nor is it 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 available for sale equity securities, at December 31, 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 $ 50,468 $ 50,354 $ 11,301 $ 11,305 Due after one year through five years 96,689 96,799 25,732 24,842 Due after five years through ten years 32,435 32,239 4,908 4,786 Due after ten years 22,626 23,021 57,629 55,203 202,218 202,413 99,570 96,136 Residential mortgage-backed securities 391,428 385,074 21,903 21,640 Collateralized mortgage obligations 281,450 276,399 142,474 137,474 Commercial mortgage-backed securities 11,703 11,772 87,065 85,874 $ 886,799 $ 875,658 $ 351,012 $ 341,124 During 2018, 2017 and 2016, the Company recognized net gains from its trading portfolio of $6.2 million, $20.2 million and $15.9 million, respectively. In addition, the Hilltop Broker-Dealers realized net gains from structured product trading activities of $41.9 million, $62.8 million and $109.8 million during 2018, 2017 and 2016, respectively. Other net realized gains on securities during 2018, 2017 and 2016 were nominal. All such net gains (losses) are recorded as a component of other noninterest income within the consolidated statements of operations. Securities with a carrying amount of $612.3 million and $738.5 million (with a fair value of $600.0 million and $730.1 million, respectively) at December 31, 2018 and 2017, respectively, were pledged by the Bank 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 the Company’s available for sale and held to maturity securities portfolios at December 31, 2018 and 2017. Mortgage-backed securities and collateralized mortgage obligations consist principally of 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 December 31, 2018 and 2017, NLC had investments on deposit in custody for various state insurance departments with carrying values of $9.5 million and $9.3 million, respectively.

Loans Held for Investment and A

Loans Held for Investment and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2018
Loans Held for Investment and Allowance for Loan Losses
Loans Held for Investment and Allowance for Loan Losses	5. Loans Held for Investment and Allowance for Loan Losses The Bank originates loans to customers primarily in Texas. Although the Bank has diversified loan and leasing portfolios and, generally, holds collateral against amounts advanced to customers, its debtors’ ability to honor their contracts is substantially dependent upon the general economic conditions of the region and of the industries in which its debtors operate, which consist primarily of agribusiness, construction, energy, real estate and wholesale/retail trade. The Hilltop Broker-Dealers make loans to customers and correspondents through transactions originated by both employees and independent retail representatives throughout the United States. The Hilltop Broker-Dealers control risk by requiring customers to maintain collateral in compliance with various regulatory and internal guidelines, which may vary based upon market conditions. Securities owned by customers and held as collateral for loans are not included in the consolidated financial statements. As previously discussed, the loans acquired in the FNB Transaction were subject to loss-share agreements with the FDIC. At the close of business on September 30, 2018, the loss-share agreements for commercial assets with the FDIC expired, except for certain obligations on the part of the Bank that survived. On October 17, 2018, the Bank and the FDIC entered into a Termination Agreement pursuant to which all rights and obligations of the Bank and the FDIC under the FDIC loss-share agreements were resolved and terminated. Accordingly, loans which were previously referred to as either “covered loans” if covered by the loss-share agreements or otherwise “non-covered loans” are now collectively referred to as “loans held for investment.” Loans that were previously covered by the FDIC loss-share agreements are included in the “covered” portfolio segment as of December 31, 2017 and prior. The majority of the loans previously covered by the FDIC loss-share agreements are comprised primarily of commercial real estate and 1-4 family residential loans. Loans held for investment summarized by portfolio segment are as follows (in thousands). December 31, 2018 2017 Commercial real estate $ 2,940,120 $ 2,582,167 Commercial and industrial 1,508,451 1,351,418 Construction and land development 932,909 962,605 1-4 family residential 679,263 429,357 Mortgage warehouse 243,806 329,787 Consumer 47,546 40,446 Broker-dealer (1) 578,363 577,889 Covered — 182,129 6,930,458 6,455,798 Allowance for loan losses (59,486) (63,686) Total loans held for investment, net of allowance $ 6,870,972 $ 6,392,112 (1) Primarily represents margin loans to customers and correspondents associated with broker-dealer segment operations. The Bank has lending policies in place with the goal of establishing an asset portfolio that will provide a return on stockholders’ equity sufficient to maintain capital to assets ratios that meet or exceed established regulations. Loans are underwritten with careful consideration of the borrower’s financial condition, the specific purpose of the loan, the primary sources of repayment and any collateral pledged to secure the loan. Underwriting procedures address financial components based on the size and complexity of the credit. The financial components include, but are not limited to, current and projected cash flows, shock analysis and/or stress testing, and trends in appropriate balance sheet and statement of operations ratios. The Bank’s loan policy provides specific underwriting guidelines by portfolio segment, including commercial and industrial, real estate, construction and land development, and consumer loans. The guidelines for each individual portfolio segment set forth permissible and impermissible loan types. With respect to each loan type, the guidelines within the Bank’s loan policy provide minimum requirements for the underwriting factors listed above. The Bank’s underwriting procedures also include an analysis of any collateral and guarantor. Collateral analysis includes a complete description of the collateral, as well as determined values, monitoring requirements, loan to value ratios, concentration risk, appraisal requirements and other information relevant to the collateral being pledged. Guarantor analysis includes liquidity and cash flow evaluation based on the significance with which the guarantors are expected to serve as secondary repayment sources. The Bank maintains a loan review department that reviews credit risk in response to both external and internal factors that potentially impact the performance of either individual loans or the overall loan portfolio. The loan review process reviews the creditworthiness of borrowers and determines compliance with the loan policy. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel. Results of these reviews are presented to management and the Bank’s board of directors. In connection with the Bank Transactions, the Company acquired loans both with and without evidence of credit quality deterioration since origination. The following table presents the carrying values and the outstanding balances of PCI loans (in thousands). December 31, 2018 2017 Carrying amount $ 93,072 $ 124,317 Outstanding balance 172,808 230,083 Changes in the accretable yield for PCI loans were as follows (in thousands). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 98,846 $ 156,847 $ 194,463 Additions 340 — — Reclassifications from nonaccretable difference, net (1) 26,166 12,946 47,407 Disposals of loans (1,226) (1,663) — Accretion (43,433) (69,284) (84,536) Transfer of loans to OREO (2) — — (487) Balance, end of year $ 80,693 $ 98,846 $ 156,847 (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. (2) Transfer of loans to OREO is the difference between the value removed from the pool and the expected cash flows for the loan. The remaining nonaccretable difference for PCI loans was $64.2 million and $91.9 million at December 31, 2018 and 2017, respectively. During 2018, 2017 and 2016, 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 PCI loan portfolio acquired in the FNB Transaction as a result of the Bank’s strategic decision to dedicate resources to the liquidation of those loans acquired in the FNB Transaction during the noted periods. Impaired loans exhibit a clear indication that the borrower’s cash flow may not be sufficient to meet principal and interest payments, which is generally when a loan is 90 days past due unless the asset is both well secured and in the process of collection. Impaired loans include non-accrual loans, troubled debt restructurings (“TDRs”), PCI loans and partially charged-off loans. The amounts shown in 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. 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 December 31, 2018 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial real estate: Non-owner occupied $ 42,668 $ 5,549 $ 7,540 $ 13,089 $ 1,125 Owner occupied 36,246 11,657 2,967 14,624 304 Commercial and industrial 27,403 5,491 1,068 6,559 72 Construction and land development 10,992 74 390 464 92 1-4 family residential 106,503 646 57,681 58,327 1,299 Mortgage warehouse — — — — — Consumer 2,185 9 — 9 — Broker-dealer — — — — — 225,997 23,426 69,646 93,072 2,892 Non-PCI Commercial real estate: Non-owner occupied — — — — — Owner occupied 5,231 4,098 — 4,098 — Commercial and industrial 22,277 9,891 1,740 11,631 721 Construction and land development 3,430 2,711 535 3,246 31 1-4 family residential 8,695 6,922 — 6,922 — Mortgage warehouse — — — — — Consumer 149 42 — 42 — Broker-dealer — — — — — 39,782 23,664 2,275 25,939 752 $ 265,779 $ 47,090 $ 71,921 $ 119,011 $ 3,644 Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related December 31, 2017 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial real estate: Non-owner occupied $ 20,155 $ 7,770 $ 8,207 $ 15,977 $ 722 Owner occupied 20,042 3,067 6,115 9,182 670 Commercial and industrial 19,752 3,610 2,489 89 Construction and land development 2,001 428 1,010 1,438 215 1-4 family residential 7,001 2,053 2,328 4,381 324 Mortgage warehouse — — — — — Consumer 2,377 12 115 127 18 Broker-dealer — — — — — Covered 226,889 2,641 84,472 87,113 2,697 298,217 19,581 104,736 124,317 4,735 Non-PCI Commercial real estate: Non-owner occupied — — — — — Owner occupied 15,504 10,934 3,686 14,620 932 Commercial and industrial 24,427 15,924 2,072 17,996 365 Construction and land development 668 — 611 611 93 1-4 family residential 1,596 1,177 — 1,177 — Mortgage warehouse — — — — — Consumer 162 56 — 56 — Broker-dealer — — — — — Covered 6,341 5,382 — 5,382 — 48,698 33,473 6,369 39,842 1,390 $ 346,915 $ 53,054 $ 111,105 $ 164,159 $ 6,125 Average investment in impaired loans is summarized by class in the following table (in thousands). Year Ended December 31, 2018 2017 2016 Commercial real estate: Non-owner occupied $ 14,533 $ 16,623 $ 19,871 Owner occupied 21,262 25,307 25,754 Commercial and industrial 21,143 19,189 20,216 Construction and land development 2,880 3,136 4,744 1-4 family residential 35,404 5,797 6,474 Mortgage warehouse — — — Consumer 117 361 659 Broker-dealer — — — Covered 46,248 $ 141,587 $ $ Non-accrual loans, excluding those classified as held for sale, are summarized by class in the following table (in thousands). December 31, December 31, 2018 2017 Commercial real estate: Non-owner occupied $ 1,226 $ — Owner occupied 4,098 14,620 Commercial and industrial 14,870 20,878 Construction and land development 3,278 611 1-4 family residential 7,026 1,614 Mortgage warehouse — — Consumer 41 56 Broker-dealer — — Covered — 5,104 $ 30,539 $ 42,883 At December 31, 2018 and 2017, non-accrual loans included PCI loans of $4.9 million and $3.3 million, respectively, for which discount accretion has been suspended because the extent and timing of cash flows from these PCI loans can no longer be reasonably estimated. In addition to the non-accrual loans in the table above, $3.4 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 December 31, 2018 and 2017, respectively. Interest income, including recoveries and cash payments, recorded on impaired loans was $1.4 million, $1.7 million and $1.3 million during 2018, 2017 and 2016, respectively. Except as noted above, 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. There were no TDRs granted during 2018. Information regarding TDRs granted during 2017 and 2016 is shown in the following table (in thousands). At December 31, 2018 and 2017, the Bank had nominal unadvanced commitments to borrowers whose loans have been restructured in TDRs. Year Ended December 31, 2017 Year Ended December 31, 2016 Number of Balance at Balance at Number of Balance at Balance at Loans Extension End of Period Loans Extension End of Period Commercial real estate: Non-owner occupied — $ — $ — — $ — $ — Owner occupied 2 4,775 4,629 — — — Commercial and industrial 1 1,357 1,186 1 1,196 944 Construction and land development 1 655 611 — — — 1-4 family residential — — — — — — Mortgage warehouse — — — — — — Consumer — — — — — — Broker-dealer — — — — — — Covered — — — — — — 4 $ 6,787 $ 6,426 1 $ 1,196 $ 944 All of the loan modifications included in the table above involved payment term extensions. The Bank did not grant principal reductions on any restructured loans during 2018, 2017 or 2016. There were no TDRs granted during the twelve months preceding December 31, 2018, for which a payment was at least 30 days past due. The following table presents information regarding TDRs granted during the twelve months preceding December 31, 2017, for which a payment was at least 30 days past due (dollars in thousands). Twelve Months Preceding December 31, 2017 Number of Balance at Balance at Loans Extension End of Period Commercial real estate: Non-owner occupied — $ — $ — Owner occupied 1 1,481 1,352 Commercial and industrial — — — Construction and land development 1 655 611 1-4 family residential — — — Mortgage warehouse — — — Consumer — — — Broker-dealer — — — Covered — — — 2 $ 2,136 $ 1,963 An analysis of the aging of the Company’s 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 December 31, 2018 30-59 Days 60-89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial real estate: Non-owner occupied $ 1,174 $ 199 $ — $ 1,373 $ 1,708,160 $ 13,089 $ 1,722,622 $ — Owner occupied 1,364 — 4,173 5,537 1,197,337 14,624 1,217,498 75 Commercial and industrial 1,792 1,049 11,051 13,892 1,488,000 6,559 1,508,451 3 Construction and land development 3,549 — — 3,549 928,896 464 932,909 — 1-4 family residential 5,987 2,484 1,950 10,421 610,515 58,327 679,263 — Mortgage warehouse — — — — 243,806 — 243,806 — Consumer 254 147 — 401 47,136 9 47,546 — Broker-dealer — — — — 578,363 — 578,363 — $ 14,120 $ 3,879 $ 17,174 $ 35,173 $ 6,802,213 $ 93,072 $ 6,930,458 $ 78 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 real estate: Non-owner occupied $ — $ — $ — $ — $ 1,473,942 $ 15,977 $ 1,489,919 $ — Owner occupied 442 — 2,195 2,637 1,080,429 9,182 1,092,248 — Commercial and industrial 2,702 312 5,714 1,336,591 6,099 1,351,418 640 Construction and land development 1,685 101 — 1,786 959,381 1,438 962,605 — 1-4 family residential 1,490 1,290 418 3,198 421,778 4,381 429,357 — Mortgage warehouse — — — 329,787 — 329,787 — Consumer 194 20 — 214 40,105 127 40,446 — Broker-dealer — — — — 577,889 — 577,889 — Covered 5,871 1,324 3,226 10,421 84,595 87,113 182,129 283 $ 12,384 $ 3,047 $ 11,553 $ 26,984 $ 6,304,497 $ 124,317 $ 6,455,798 $ 923 In addition to the loans shown in the table above, PrimeLending had $83.1 million and $84.5 million of loans included in loans held for sale (with an aggregate unpaid principal balance of $84.0 million and $85.2 million, respectively) that were 90 days past due and accruing interest at December 31, 2018 and 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 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 loans, as previously described, in the portfolio by class (in thousands). December 31, 2018 Pass Special Mention Substandard PCI Total Commercial real estate: Non-owner occupied $ 1,673,424 $ — $ 36,109 $ 13,089 $ 1,722,622 Owner occupied 1,175,225 2,083 25,566 14,624 1,217,498 Commercial and industrial 1,433,227 15,320 53,345 6,559 1,508,451 Construction and land development 929,130 — 3,315 464 932,909 1-4 family residential 601,264 393 19,279 58,327 679,263 Mortgage warehouse 243,806 — — — 243,806 Consumer 47,416 — 121 9 47,546 Broker-dealer 578,363 — — — 578,363 $ 6,681,855 $ 17,796 $ 137,735 $ 93,072 $ 6,930,458 December 31, 2017 Pass Special Mention Substandard PCI Total Commercial real estate: Non-owner occupied $ 1,460,758 $ 6,408 $ 6,776 $ 15,977 $ 1,489,919 Owner occupied 1,030,611 1,239 51,216 9,182 1,092,248 Commercial and industrial 1,275,489 17,354 52,476 6,099 1,351,418 Construction and land development 958,157 2,259 751 1,438 962,605 1-4 family residential 419,317 — 5,659 4,381 429,357 Mortgage warehouse 329,787 — — — 329,787 Consumer 40,211 — 108 127 40,446 Broker-dealer 577,889 — — — 577,889 Covered 81,583 356 13,077 87,113 182,129 $ 6,173,802 $ 27,616 $ 130,063 $ 124,317 $ 6,455,798 Allowance for Loan Losses It is management’s responsibility to, at the end of each quarter, or more frequently as deemed necessary, analyze the level of the allowance for loan losses to ensure that it is appropriate for the estimated credit losses in the portfolio. Estimated credit losses are the probable current amount of loans that the Company will be unable to collect given facts and circumstances as of the evaluation date. When management determines that a loan, or portion thereof is uncollectible, the loan, or portion thereof, is charged-off against the allowance for loan losses, or for acquired loans accounted for in pools, charged against either the pool discount or the post-acquisition allowance. Recoveries on charge-offs of loans acquired in the Bank Transactions that occurred prior to their acquisition represent contractual cash flows not expected to be collected and are recorded as accretion income. Recoveries on acquired loans charged-off subsequent to their acquisition are credited to the allowance for loan loss, except for recoveries on loans accounted for in pools, which are credited to the pool discount. The Company has developed a methodology that seeks to determine an allowance within the scope of the Receivables and Contingencies Topics of the ASC. Each of the loans that has been determined to be impaired is within the scope of the Receivables Topic. Impaired loans that are equal to or greater than $0.5 million are individually evaluated using one of three impairment measurement methods as of the evaluation date: (1) the present value of expected future cash flows discounted at the loan’s effective rate, (2) the loan’s observable market price, or (3) the fair value of the collateral if the loan is collateral dependent. Specific reserves are provided in the estimate of the allowance based on the measurement of impairment under these three methods, except for collateral dependent loans, which require the fair value method. All non-impaired loans are within the scope of the Contingencies Topic. Estimates of loss for the Contingencies Topic are calculated based on historical loss, adjusted for qualitative or environmental factors. The Bank uses a rolling three year average net loss rate to calculate historical loss factors. The analysis is conducted by call report loan category, and further disaggregates commercial and industrial loans by collateral type. The analysis uses net charge-off experience by considering charge-offs and recoveries in determining the loss rate. The historical loss calculation for the quarter is calculated by dividing the current quarter net charge-offs for each loan category by the quarter ended loan category balance. The Bank utilizes a weighted average loss rate to better represent recent trends. While historical loss experience provides a reasonable starting point for the analysis, historical losses are not the sole basis upon which the Company determines the appropriate level for the allowance for loan losses. Management considers recent qualitative or environmental factors that are likely to cause estimated credit losses associated with the existing portfolio to differ from historical loss experience, including but not limited to:  changes in the volume and severity of past due, non-accrual and classified loans;  changes in the nature, volume and terms of loans in the portfolio;  changes in lending policies and procedures;  changes in economic and business conditions and developments that affect the collectability of the portfolio;  changes in lending management and staff;  changes in the loan review system and the degree of oversight by the Bank’s board of directors; and  any concentrations of credit and changes in the level of such concentrations. Changes in the volume and severity of past due, non-accrual and classified loans, as well as changes in the nature, volume and terms of loans in the portfolio are key indicators of changes that could indicate a necessary adjustment to the historical loss factors. Classified loans are defined as loans having a well-defined weakness or weaknesses related to the borrower's financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected. The magnitude of the impact of these factors on the qualitative assessment of the allowance for loan loss changes from quarter to quarter. The loan review program is designed to identify and monitor problem loans by maintaining a credit grading process, requiring that timely and appropriate changes be made to reviewed loans and coordinating the delivery of the information necessary to assess the appropriateness of the allowance for loan losses. Loans are evaluated for impaired status when: (i) payments on the loan are delayed, typically by 90 days or more (unless the loan is both well secured and in the process of collection), (ii) the loan becomes classified, (iii) the loan is being reviewed in the normal course of the loan review scope, or (iv) the loan is identified by the servicing officer as a problem. In connection with the Bank Transactions, the Bank acquired loans both with and without evidence of credit quality deterioration since origination. PCI loans are accounted for in pools as well as on an individual loan basis. Cash flows expected to be collected are recast quarterly for each loan or pool. These evaluations require the continued use and updating of key assumptions and estimates such as default rates, loss severity given default and prepayment speed assumptions (similar to those used for the initial fair value estimate). Management judgment must be applied in developing these assumptions. If expected cash flows for a loan or pool decreases, an increase in the allowance for loan losses is made through a charge to the provision for loan losses. If expected cash flows for a loan or pool increase, any previously established allowance for loan losses is reversed and any remaining difference increases the accretable yield. This increase in accretable yield is taken into income over the remaining life of the loan. Loans without evidence of credit impairment at acquisition are subsequently evaluated for any required allowance at each reporting date. An allowance for loan losses is calculated using a methodology similar to that described above for originated loans. The allowance as determined for each loan collateral type is compared to the remaining fair value discount for that loan collateral type. If greater, the excess is recognized as an addition to the allowance through a provision for loan losses. If less than the discount, no additional allowance is recorded. Charge-offs and losses first reduce any remaining fair value discount for the loan and once the discount is depleted, losses are applied against the allowance established for that loan. 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. While the Company believes it has an appropriate allowance for the existing loan portfolio at December 31, 2018, additional provisions for losses on existing loans may be necessary in the future. During 2016, the Bank discovered irregularities in connection with a single loan that was in default. As a result, the Bank increased its provision for loan losses and recorded a $24.5 million charge-off during the second quarter of 2016, representing the entire outstanding principal balance of the loan. During the second quarter of 2017, the Bank recorded other noninterest income of $15.0 million from coverage provided by an insurance policy for forgery of a document delivered in connection with this loan. Changes in the allowance for loan losses, distributed by portfolio segment, are shown below (in thousands). Balance, Provision (recovery) Loans Recoveries on Balance, Year Ended December 31, 2018 beginning of year for loan losses charged off charged of loans end of year Commercial real estate $ 27,232 $ 668 $ (800) $ — $ 27,100 Commercial and industrial 23,698 6,750 (12,741) 4,273 21,980 Construction and land development 7,847 (1,792) — 6 6,061 1-4 family residential 4,245 (292) (143) 146 3,956 Mortgage warehouse — — — — — Consumer 311 (15) (93) 64 267 Broker-dealer 353 (231) — — 122 Total $ 63,686 $ 5,088 $ (13,777) $ 4,489 $ 59,486 Balance, Provision (recovery) Loans Recoveries on Balance, Year Ended December 31, 2017 beginning of year for loan losses charged off charged of loans end of year Commercial real estate $ 22,262 $ 4,320 $ (193) $ 24 $ 26,413 Commercial and industrial 21,369 6,725 (6,253) 1,833 23,674 Construction and land development 7,002 848 (13) 7 7,844 1-4 family residential 2,974 (701) (112) 201 2,362 Mortgage warehouse — — — — — Consumer 424 16 (208) 79 311 Broker-dealer 155 198 — — 353 Covered 413 2,865 (571) 22 2,729 Total $ 54,599 $ 14,271 $ (7,350) $ 2,166 $ 63,686 Balance, Provision (recovery) Loans Recoveries on Balance, Year Ended December 31, 2016 beginning of year for loan losses charged off charged of loans end of year Commercial real estate $ 15,669 $ 7,785 $ (1,243) $ 51 $ 22,262 Commercial and industrial 19,845 33,369 (33,776) 1,931 21,369 Construction and land development 6,064 938 — — 7,002 1-4 family residential 3,314 (488) (196) 344 2,974 Mortgage warehouse — — — — — Consumer 314 190 (203) 123 424 Broker-dealer 209 (53) (1) — 155 Covered 1,532 (1,121) (119) 121 413 Total $ 46,947 $ 40,620 $ (35,538) $ 2,570 $ 54,599 The loan portfolio was distributed by portfolio segment and impairment methodology as shown below (in thousands). Loans individually Loans collectively evaluated for evaluated for PCI December 31, 2018 impairment impairment loans Total Commercial real estate $ 3,909 $ 2,908,498 $ 27,713 $ 2,940,120 Commercial and industrial 10,741 1,491,151 6,559 1,508,451 Construction and land development 3,241 929,204 464 932,909 1-4 family residential — 620,936 58,327 679,263 Mortgage warehouse — 243,806 — 243,806 Consumer — 47,537 9 47,546 Broker-dealer — 578,363 — 578,363 Total $ 17,891 $ 6,819,495 $ 93,072 $ 6,930,458 Loans individually Loans collectively evaluated for evaluated for PCI December 31, 2017 impairment impairment loans Total Commercial real estate $ 13,782 $ 2,543,226 $ 25,159 $ 2,582,167 Commercial and industrial 16,819 1,328,500 6,099 1,351,418 Construction and land development 611 960,556 1,438 962,605 1-4 family residential — 424,976 4,381 429,357 Mortgage warehouse — 329,787 — 329,787 Consumer — 40,319 127 40,446 Broker-dealer — 577,889 — 577,889 Covered — 95,016 87,113 182,129 Total $ 31,212 $ 6,300,269 $ 124,317 $ 6,455,798 The allowance for loan losses was distributed by portfolio segment and impairment methodology as shown below (in thousands). Loans individually Loans collectively evaluated for evaluated for PCI December 31, 2018 impairment impairment loans Total Commercial real estate $ — $ 25,671 $ 1,429 $ 27,100 Commercial and industrial 721 21,187 72 21,980 Construction and land development 31 5,938 92 6,061 1-4 family residential — 2,657 1,299 3,956 Mortgage warehouse — — — — Consumer — 267 — 267 Broker-dealer — 122 — 122 Total $ 752 $ 55,842 $ 2,892 $ 59,486 Loans individually Loans collectively evaluated for evaluated for PCI December 31, 2017 impairment impairment loans Total Commercial real estate $ 932 $ 24,089 $ 1,392 $ 26,413 Commercial and industrial 365 23,220 89 23,674 Construction and land development 93 7,536 215 7,844 1-4 family residential — 2,038 324 2,362 Mortgage warehouse — — — — Consumer — 293 18 311 Broker-dealer — 353 — 353 Covered — 32 2,697 2,729 Total $ 1,390 $ 57,561 $ 4,735 $ 63,686

Covered Assets and Indemnificat

Covered Assets and Indemnification Asset	12 Months Ended
	Dec. 31, 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 (the “P&A Agreement”) by and among the FDIC (as receiver of FNB), the Bank and the FDIC, the Bank and the FDIC entered into loss-share agreements covering future losses incurred on certain acquired loans and OREO. The Company referred to acquired commercial and single family residential loan portfolios and OREO that were subject to the loss-share agreements as “covered loans” and “covered OREO”, respectively, and these assets were presented as separate line items in the Company’s consolidated balance sheets. Collectively, covered loans and covered OREO were referred to as “covered assets”. Pursuant to the loss-share agreements, the FDIC 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 were 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 were reimbursable to the FDIC for a particular asset was limited to book value losses and expenses actually billed plus any book value charge-offs incurred prior to the Bank Closing Date. There was 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 were in effect for five years and ten years, respectively, from the Bank Closing Date, and the loss recovery provisions to the FDIC were 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,” was measured separately from the covered loan portfolio because the agreements were not contractually embedded in the covered loans and were not transferable if the Bank chose to dispose of the covered loans. In accordance with the loss-share agreements, the Bank may have been 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 were less than the FDIC’s initial estimate of losses on covered assets. The “true-up” payment was calculated using a defined formula set forth in the P&A Agreement. At the close of business on September 30, 2018, the loss-share agreements for commercial assets with the FDIC expired, except for certain obligations on the part of the Bank that survived. On October 17, 2018, the Bank and the FDIC entered into a Termination Agreement pursuant to which the loss-share agreements for single family residential assets and commercial assets were terminated in exchange for the payment by the FDIC to the Bank of $6.26 million. Accordingly, loans which were previously referred to as either “covered loans” if covered by the loss-share agreements or otherwise “non-covered loans” are now collectively referred to as “loans held for investment.” Covered Other Real Estate Owned A summary of the activity in OREO previously covered by the FDIC loss-share agreements is as follows (in thousands) (1) . Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 36,744 $ 51,642 $ 99,090 Additions to covered OREO 5,284 6,700 13,876 Dispositions of covered OREO (10,145) (17,866) (42,843) Valuation adjustments in the period (2,027) (3,732) (18,481) Transfer to other assets as a result of loss-share termination (29,856) — — Balance, end of year $ — $ 36,744 $ 51,642 (1) The additions, dispositions and valuation adjustments during 2018 as presented in the table represent activity from January 1, 2018 through September 30, 2018, prior to the expiration and termination of the FDIC loss-share agreements. All previously “covered” OREO is included in other assets as of December 31, 2018. During 2018, 2017 and 2016, 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 periods presented above 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 fair value be recorded at the time such new information is received. Any increases to fair value up to the amount of cumulative losses previously recognized are recorded as gains when the asset is subsequently sold. As previously discussed, upon termination of the loss-share agreements, OREO acquired in the FNB Transaction which was previously identified as “covered” is now included in other assets within the consolidated balance sheets. FDIC Indemnification Asset A summary of the activity in the FDIC Indemnification Asset is as follows (in thousands). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 29,340 $ 71,313 $ 91,648 FDIC Indemnification Asset accretion (amortization) (6,509) (17,083) 242 Transfers to due from FDIC and other — (24,890) (20,577) FDIC loss-share termination (22,831) — — Balance, end of year $ — $ 29,340 $ 71,313 In October 2018, in conjunction with the receipt of the $6.26 million payment associated with the termination of the FDIC loss-share agreements, the then-remaining FDIC Indemnification Asset of $22.8 million and the FDIC true-up accrual of $16.6 million were removed with no further impact to the Company’s consolidated statements of operations.

Cash and Due from Banks

Cash and Due from Banks	12 Months Ended
	Dec. 31, 2018
Cash and Due from Banks
Cash and Due from Banks	7. Cash and Due from Banks Cash and due from banks consisted of the following (in thousands). December 31, 2018 2017 Cash on hand $ 47,621 $ 44,765 Clearings and collection items 83,949 92,271 Deposits at Federal Reserve Bank 425,770 248,442 Deposits at Federal Home Loan Bank 1,595 1,501 Deposits in FDIC-insured institutions 85,138 99,998 $ 644,073 $ 486,977 The amounts above include interest-bearing deposits of $469.4 million and $302.2 million at December 31, 2018 and 2017, respectively. Cash on hand and deposits at the Federal Reserve Bank satisfy regulatory reserve requirements at December 31, 2018.

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2018
Premises and Equipment
Premises and Equipment	8. Premises and Equipment The components of premises and equipment are summarized as follows (in thousands). December 31, 2018 2017 Land and premises $ 147,783 $ 111,203 Furniture and equipment 259,082 207,552 406,865 318,755 Less accumulated depreciation and amortization (169,492) (141,178) $ 237,373 $ 177,577 The amounts shown above include gross assets recorded under capital leases of $7.8 million and $8.4 million, with accumulated amortization of $3.6 million and $3.3 million at December 31, 2018 and 2017, respectively. Occupancy expense was reduced by rental income of $1.4 million, $1.8 million and $2.0 million during 2018, 2017 and 2016, respectively. Depreciation and amortization expense on premises and equipment, which includes amortization of capital leases, amounted to $33.1 million, $34.6 million and $35.4 million during 2018, 2017 and 2016, respectively.

Goodwill and Other Intangible

Goodwill and Other Intangible	12 Months Ended
	Dec. 31, 2018
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	9. Goodwill and Other Intangible Assets At December 31, 2018, the carrying amount of goodwill of $291.4 million was comprised of $39.6 million recorded during the third quarter of 2018 in connection with the BORO Acquisition, $24.0 million recorded in connection with the acquisition of NLC and $227.8 million recorded in connection with the PlainsCapital Merger. Other intangible assets of $38.0 million and $36.4 million at December 31, 2018 and 2017, respectively, include an indefinite lived intangible asset with an estimated fair value of $3.0 million related to state licenses acquired as a part of the NLC acquisition in January 2007. The Company performed required annual impairment tests of its goodwill and other intangible assets having an indefinite useful life as of October 1 st for each of its reporting units. At October 1, 2018, the Company determined that the estimated fair value of each of its reporting units exceeded its carrying value. The Company estimated the fair values of its reporting units based on both a market and income approach using historical, normalized actual and forecasted results. Based on this evaluation, the Company concluded that the goodwill and other identifiable intangible assets were fully realizable. The Company’s evaluation includes multiple assumptions, including estimated discounted cash flows and other estimates that may change over time. If future discounted cash flows become less than those projected by the Company, future impairment charges may become necessary that could have a materially adverse impact on the Company’s results of operations and financial condition. As quoted market prices in active stock markets are relevant evidence of fair value, a significant decline in the Company’s common stock trading price may indicate an impairment of goodwill. The carrying value of intangible assets subject to amortization was as follows (in thousands). Estimated Gross Net Useful Life Intangible Accumulated Intangible December 31, 2018 (Years) Assets Amortization Assets Core deposits 4 - 12 $ 48,930 $ (31,062) $ 17,868 Trademarks and trade names 15 - 20 20,000 (8,844) 11,156 Noncompete agreements 4 - 6 11,650 (11,650) — Customer contracts and relationships 12 - 14 21,400 (15,465) 5,935 Agent relationships 13 3,600 (3,554) 46 $ 105,580 $ (70,575) $ 35,005 Estimated Gross Net Useful Life Intangible Accumulated Intangible December 31, 2017 (Years) Assets Amortization Assets Core deposits 4 - 12 $ 38,930 $ (26,381) $ 12,549 Trademarks and trade names 15 - 20 20,000 (7,860) 12,140 Noncompete agreements 4 - 6 11,650 (10,529) 1,121 Customer contracts and relationships 12 - 14 21,400 (13,906) 7,494 Agent relationships 13 3,600 (3,472) 128 $ 95,580 $ (62,148) $ 33,432 Amortization expense related to intangible assets during 2018, 2017 and 2016 was $8.4 million, $8.3 million and $10.2 million, respectively. The estimated aggregate future amortization expense for intangible assets at December 31, 2018 is as follows (in thousands). 2019 $ 7,851 2020 6,539 2021 5,313 2022 3,987 2023 2,860 Thereafter 8,455 $ 35,005

Mortgage Servicing Rights

Mortgage Servicing Rights	12 Months Ended
	Dec. 31, 2018
Mortgage Servicing Rights
Mortgage Servicing Rights	10. 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). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 54,714 $ 61,968 $ 52,285 Additions 25,028 16,401 23,381 Sales (9,303) (17,499) (7,586) Changes in fair value: Due to changes in model inputs or assumptions (1) 159 (1,722) (153) Due to customer payoffs (4,496) (4,434) (5,959) Balance, end of year $ 66,102 $ 54,714 $ 61,968 December 31, 2018 2017 Mortgage loans serviced for others $ 5,086,461 $ 4,762,042 MSR asset as a percentage of serviced mortgage loans 1.30 % 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. December 31, 2018 2017 Weighted average constant prepayment rate 10.51 % 10.93 % Weighted average discount rate 11.11 % 11.03 % Weighted average life (in years) 7.1 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). December 31, 2018 2017 Constant prepayment rate: Impact of 10% adverse change $ (2,512) $ (1,948) Impact of 20% adverse change (4,980) (3,839) Discount rate: Impact of 10% adverse change (2,677) (2,135) Impact of 20% adverse change (5,139) (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 $23.3 million, $20.7 million and $23.8 million during 2018, 2017 and 2016, respectively, were included in other noninterest income within the consolidated statements of operations.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2018
Deposits
Deposits	11. Deposits Deposits are summarized as follows (in thousands). December 31, 2018 2017 Noninterest-bearing demand $ 2,560,750 $ 2,411,849 Interest-bearing: NOW accounts 1,358,196 1,202,752 Money market 2,725,541 2,222,555 Brokered - money market 5,000 101,624 Demand 393,685 411,771 Savings 184,700 218,812 Time 1,308,284 1,313,482 Brokered - time — 95,274 $ 8,536,156 $ 7,978,119 At December 31, 2018, deposits include $655.6 million of time deposit accounts that meet or exceed the FDIC insurance limit of $250,000. Scheduled maturities of interest-bearing time deposits at December 31, 2018 are as follows (in thousands). 2019 $ 991,402 2020 237,452 2021 21,269 2022 13,327 2023 and thereafter 44,834 $ 1,308,284

Short-term Borrowings

Short-term Borrowings	12 Months Ended
	Dec. 31, 2018
Short-term Borrowings
Short-term Borrowings	12. Short-term Borrowings Short-term borrowings are summarized as follows (in thousands). December 31, 2018 2017 Federal funds purchased $ 100,100 $ 101,775 Securities sold under agreements to repurchase 576,707 539,149 Federal Home Loan Bank 200,000 250,000 Short-term bank loans 189,000 315,500 $ 1,065,807 $ 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). Year Ended December 31, 2018 2017 2016 Average balance during the year $ 701,622 $ 588,847 $ 368,012 Average interest rate during the year 1.96 % 1.06 % 0.58 % Maximum month-end balance during the year 849,568 904,704 520,715 December 31, 2018 2017 Average interest rate at end of year 2.43 % 1.21 % Securities underlying the agreements at end of year: Carrying value $ 587,609 $ 581,636 Estimated fair value $ 618,231 $ 598,300 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. At December 31, 2018, the Bank had available collateral of $3.4 billion, substantially all of which was blanket collateral. Other information regarding FHLB short-term borrowings is shown in the following tables (dollars in thousands). Year Ended December 31, 2018 2017 2016 Average balance during the period $ 214,110 $ 390,616 $ 361,475 Average interest rate during the period 2.09 % 1.08 % 0.46 % Maximum month-end balance during the year $ 675,000 $ 850,000 $ 1,000,000 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 December 31, 2018 and 2017 was 3.35% and 2.27%, respectively.

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2018
Notes Payable
Notes Payable	13. Notes Payable Notes payable consisted of the following (in thousands). December 31, 2018 2017 Senior Notes due April 2025, net of discount of $1,393 and $1,545, respectively $ 148,607 $ 148,455 FHLB notes, net of premium of $222 and $436, respectively, with maturities ranging from September 2020 to June 2030 and interest payable monthly 4,391 19,402 NLIC note payable due May 2033, three-month LIBOR plus 4.10% (6.89% at December 31, 2018) with interest payable quarterly 10,000 10,000 NLIC note payable due September 2033, three-month LIBOR plus 4.05% (6.84% at December 31, 2018) with interest payable quarterly 10,000 10,000 ASIC note payable due April 2034, three-month LIBOR plus 4.05% (6.84% at December 31, 2018) with interest payable quarterly 7,500 7,500 Insurance company line of credit due December 30, 2019, 3.25% plus a calculated index rate (4.220% at December 31, 2018) with interest payable quarterly — 1,000 Ventures Management lines of credit due March 2019 48,374 12,452 $ 228,872 $ 208,809 Senior Notes On April 9, 2015, Hilltop completed an offering of $150.0 million aggregate principal amount of its 5% senior notes due 2025 (“Senior Unregistered Notes”) in a private offering that was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Senior Unregistered Notes were offered within the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to persons outside of the United States under Regulation S under the Securities Act. The Senior Unregistered Notes were issued pursuant to an indenture, dated as of April 9, 2015, by and between Hilltop and U.S. Bank National Association, as trustee. The net proceeds from the offering, after deducting estimated fees and expenses and the initial purchasers’ discounts, were approximately $148 million. Hilltop used the net proceeds of the offering to redeem all of Hilltop’s outstanding Non-Cumulative Perpetual Preferred Stock, Series B at an aggregate liquidation value of $114.1 million, plus accrued but unpaid dividends of $0.4 million, and Hilltop utilized the remainder for general corporate purposes. Unamortized debt issuance costs presented as a reduction from the Senior Notes are discussed further in Note 1 to the consolidated financial statements. In connection with the issuance of the Senior Unregistered Notes, on April 9, 2015, the Company entered into a registration rights agreement with the initial purchasers of the Senior Unregistered Notes. Under the terms of the registration rights agreement, the Company agreed to offer to exchange the Senior Unregistered Notes for notes registered under the Securities Act (the “Senior Registered Notes”). The terms of the Senior Registered Notes are substantially identical to the Senior Unregistered Notes for which they were exchanged (including principal amount, interest rate, maturity and redemption rights), except that the Senior Registered Notes generally are not subject to transfer restrictions. On May 22, 2015 and subject to the terms and conditions set forth in the Senior Registered Notes prospectus, the Company commenced an offer to exchange the Senior Unregistered Notes for Senior Registered Notes. Substantially all of the Senior Unregistered Notes were tendered in the exchange offer, and on June 22, 2015, the Company fulfilled its requirements under the registration rights agreement for the Senior Unregistered Notes by issuing Senior Registered Notes in exchange for the tendered Senior Unregistered Notes. The Senior Registered Notes and the Senior Unregistered Notes that remain outstanding are collectively referred to as the “Senior Notes.” The Senior Notes bear interest at a rate of 5% per year, payable semi-annually in arrears in cash on April 15 and October 15 of each year. The Senior Notes will mature on April 15, 2025, unless Hilltop redeems the Senior Notes, in whole at any time or in part from time to time, on or after January 15, 2025 (three months prior to the maturity date of the Senior Notes) at its election at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. The indenture contains covenants that limit the Company’s ability to, among other things and subject to certain significant exceptions: (i) dispose of or issue voting stock of certain of the Company’s bank subsidiaries or subsidiaries that own voting stock of the Company’s bank subsidiaries, (ii) incur or permit to exist any mortgage, pledge, encumbrance or lien or charge on the capital stock of certain of the Company’s bank subsidiaries or subsidiaries that own capital stock of the Company’s bank subsidiaries and (iii) sell all or substantially all of the Company’s assets or merge or consolidate with or into other companies. The indenture also provides for certain events of default, which, if any of them occurs, would permit or require the principal amount, premium, if any, and accrued and unpaid interest on the then outstanding Senior Notes to be declared immediately due and payable. Federal Home Loan Bank notes The FHLB notes, assumed by the Bank in the SWS Merger, have interest rates ranging from 2.88% to 5.70%, with a weighted average interest rate of 3.69% at December 31, 2018. The FHLB notes, as well as other borrowings from the FHLB, are collateralized by FHLB stock, a blanket lien on commercial and real estate loans, as well as by the amount of securities that are in safekeeping at the FHLB, the value of which was $3.4 billion at December 31, 2018. NLIC and ASIC Notes Payable The NLIC and ASIC notes payable to unaffiliated companies are each subordinated in right of payment to all policy claims and other indebtedness of NLIC and ASIC, respectively. Further, all payments of principal and interest require the prior approval of the Insurance Commissioner of the State of Texas and are only payable to the extent that the statutory surplus of NLIC exceeds $30 million and ASIC exceeds $15 million. The NLIC and ASIC loan agreements relating to the notes payable contain various covenants pertaining to limitations on additional debt, dividends, officer and director compensation, and minimum capital requirements. The Company was in compliance with the covenants at December 31, 2018. NLC has entered into an indenture relating to the NLIC and ASIC notes payable which provides that (i) if a person or group becomes the beneficial owner directly or indirectly of 50% or more of its equity securities and (ii) if NLC’s ratings are downgraded by a nationally recognized statistical rating organization as defined in the Securities Exchange Act of 1934, as amended (the “Exchange Act”), then each holder of the notes governed by such indenture has the right to require that NLC purchase such holder’s notes in whole or in part at a price equal to 100% of the outstanding principal amount. Insurance Company Line of Credit The Company’s insurance subsidiary has a line of credit with a financial institution which allows for borrowings by NLC of up to $7.5 million and is collateralized by substantially all of NLC’s assets. The loan agreements relating to the line of credit contain various financial and other covenants which must be maintained until all indebtedness to the financial institution is repaid. The Company was in compliance with the covenants at December 31, 2018. Ventures Management Lines of Credit At December 31, 2018, Ventures Management’s ABAs had combined available lines of credit totaling $110.0 million, $50.0 million of which was with a single unaffiliated bank and $60.0 million of which was with the Bank. At December 31, 2018, the outstanding balance of $48.4 million was related to two lines of credit, both with an unaffiliated bank with stated interest rates of the greater of a calculated index rate on mortgage notes or 2.75%. The weighted average interest rate of these two lines of credit at December 31, 2018 was 4.16%. The Ventures Management lines of credit are collateralized by mortgage notes, and the loan agreements relating to the lines of credit contain various financial and other covenants which must be maintained until all indebtedness to the financial institution is repaid. The Company was in compliance with the covenants at December 31, 2018. Scheduled Maturities Scheduled maturities for notes payable outstanding at December 31, 2018 are as follows (in thousands). 2019 $ 48,374 2020 2,389 2021 462 2022 157 2023 — Thereafter 178,661 $ 230,043

Junior Subordinated Debentures

Junior Subordinated Debentures and Trust Preferred Securities	12 Months Ended
	Dec. 31, 2018
Junior Subordinated Debentures and Trust Preferred Securities
Junior Subordinated Debentures and Trust Preferred Securities	14. Junior Subordinated Debentures and Trust Preferred Securities PCC has four statutory Trusts, three of which were formed under the laws of the state of Connecticut and one of which, PCC Statutory Trust IV, was formed under the laws of the state of Delaware. The Trusts were created for the sole purpose of issuing and selling preferred securities and common securities, using the resulting proceeds to acquire junior subordinated debentures issued by PCC (the “Debentures”). Accordingly, the Debentures are the sole assets of the Trusts, and payments under the Debentures are the sole revenue of the Trusts. All of the common securities are owned by PCC; however, PCC is not the primary beneficiary of the Trusts. Accordingly, the Trusts are not included in the Company’s consolidated financial statements. The Trusts have issued $65,000,000 of floating rate preferred securities and $2,012,000 of common securities and have invested the proceeds from the securities in floating rate Debentures of PCC. Information regarding the PCC Debentures is shown in the following table (in thousands). Investor Issue Date Amount PCC Statutory Trust I July 31, 2001 $ 18,042 PCC Statutory Trust II March 26, 2003 $ 18,042 PCC Statutory Trust III September 17, 2003 $ 15,464 PCC Statutory Trust IV February 22, 2008 $ 15,464 The stated term of the Debentures is 30 years with interest payable quarterly. The rate on the Debentures, which resets quarterly, is 3-month LIBOR plus an average spread of 3.22%. The total average interest rate at December 31, 2018 was 5.95%. The term, rate and other features of the preferred securities are the same as the Debentures. PCC’s obligations under the Debentures and related documents, taken together, constitute a full and unconditional guarantee of the Trust’s obligations under the preferred securities.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Taxes
Income Taxes	15. Income Taxes The significant components of the income tax provision are as follows (in thousands). Year Ended December 31, 2018 2017 2016 Current: Federal $ 19,504 $ 63,769 $ 82,970 State 2,349 $ 5,440 $ 10,181 21,853 69,209 93,151 Deferred: Federal 11,352 $ 40,176 $ (6,732) State 1,845 $ 757 $ (2,958) 13,197 40,933 (9,690) $ 35,050 $ 110,142 $ 83,461 The income tax provision differs from the amount that would be computed by applying the statutory Federal income tax rate to income before income taxes as a result of the following (in thousands). The applicable corporate federal income tax rates were 21% for 2018 and 35% for 2017 and 2016. Year Ended December 31, 2018 2017 2016 Computed tax at federal statutory rate $ 33,763 $ 85,150 $ 80,992 Tax effect of: Tax Legislation — 28,363 — Non-taxable acquisition adjustment 263 (6,682) — Nondeductible transaction costs 86 774 2,608 Nondeductible expenses 2,864 3,089 3,301 State income taxes 3,313 4,028 4,708 Tax-exempt income, net (1,432) (2,758) (2,850) Valuation allowance — — (2,094) Minority interest (900) (210) (718) Share-based compensation benefit (273) (412) (2,391) Prior year return to provision adjustment (1,682) (943) 251 Other (952) (257) (346) $ 35,050 $ $ 83,461 The components of the tax effects of temporary differences that give rise to the net deferred tax asset included in other assets within the consolidated balance sheets are as follows (in thousands). December 31, 2018 2017 Deferred tax assets: Net operating and built-in loss carryforward $ 9,656 $ 11,697 Purchase accounting adjustment - loans 19,673 24,883 Allowance for loan losses 14,137 15,105 Compensation and benefits 14,865 15,860 Legal and other reserves 3,483 4,359 Foreclosed property 3,974 5,859 Other 15,142 11,961 80,930 89,724 Deferred tax liabilities: Premises and equipment 12,344 10,288 FDIC Indemnification Asset — 2,960 Intangible assets 9,326 8,994 Derivatives 4,169 4,527 Loan servicing 15,761 13,184 Other 7,074 8,157 48,674 48,110 Net deferred tax asset $ 32,256 $ 41,614 The Tax Legislation enacted on December 22, 2017 significantly revised the U.S. corporate income tax by lowering corporate income tax rates. The Company’s results during the fourth quarter and full year of 2017 include the estimated impact of a non-recurring, non-cash charge of $28.4 million as a result of the enactment of the Tax Legislation. The charge was primarily due to the revaluation of deferred tax assets as a result of the reduction in the corporate tax rate from 35% to 21%, and other anticipated impacts associated with the Tax Legislation. Deferred tax asset amounts recorded in December 2017 following enactment of the Tax Legislation were final as of September 30, 2018. The Company’s effective tax rate was 21.8%, 45.3% and 36.1% during 2018, 2017 and 2016, respectively. The 2018 effective tax rate approximated statutory rates and included the effect of tax planning strategies in conjunction with the Tax Legislation, offset by non-deductible expenses. In addition, a tax benefit was recognized from the portion of the indemnification reserve that was a deductible settlement amount. The effective tax rate during 2017 was higher than the statutory rate primarily due to the revaluation of deferred tax assets as a result of the Tax Legislation, partially offset by a non-taxable gain recorded in the resolution of the SWS appraisal proceedings as the SWS Merger was a tax-free reorganization. The effective tax rate during 2016 was relatively consistent with the statutory rate, but did include effects related to non-deductible transaction costs associated with the SWS Merger, offset by the reversal of a valuation allowance of $2.2 million previously established on a deferred tax asset associated with the SWS Merger and the recognition of excess tax benefits on share-based payment awards as a result of the Company’s adoption of the provisions of Accounting Standards Update (“ASU”) 2016-09 as of January 1, 2016. At December 31, 2018 and 2017, the Company had net operating loss carryforwards for Federal income tax purposes of $20.9 million and $29.9 million, respectively (or $4.4 million and $6.3 million, respectively, on a tax effected basis at applicable rates for respective tax years). The net operating loss carryforwards are subject to an annual Section 382 limitation on their usage. These net operating loss carryforwards expire in starting in 2033. The Company expects to realize its current deferred tax asset for these net operating loss carryforwards through the implementation of certain tax planning strategies, core earnings, and reversal of timing differences. At December 31, 2018, the Company also had a recognized built-in loss (“RBIL”) carryover of $20.5 million from the ownership change resulting from the SWS Merger. These RBILs, if recognized during a five year recognition period before January 1, 2020, are subject to the annual Section 382 limitation rules similar to the Company’s net operating loss carryforwards. The RBIL’s are expected to be fully realized prior to any expiration. The Company’s remaining net unrealized built-in loss of $9.4 million, if recognized during a five year recognition period before January 1, 2020, would also be subject to the Section 382 limitation. Based on the Company’s evaluation of its deferred tax assets, management determined that no valuation allowance against its gross deferred tax assets was necessary at December 31, 2018 or 2017. GAAP requires the measurement of uncertain tax positions. Uncertain tax positions are the difference between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for accounting purposes. At December 31, 2018 and 2017, the total amount of gross unrecognized tax benefits was $3.1 million and $1.6 million, respectively, of which $2.5 million and $1.2 million, respectively, if recognized, would favorably impact the Company’s effective tax rate. The aggregate changes in gross unrecognized tax benefits, which excludes interest and penalties, are as follows (in thousands). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 1,574 $ 1,704 $ 644 Increases related to tax positions taken during a prior year 770 476 844 Decreases related to tax positions taken during a prior year — (1,273) — Increases related to tax positions taken during the current year 712 667 216 Balance, end of year $ 3,056 $ 1,574 $ 1,704 Specific positions that may be resolved include issues involving apportionment and tax credits. At December 31, 2018, the unrecognized tax benefit is recorded as taxes receivable, which is included in other assets within the consolidated balance sheet. The Company files income tax returns in U.S. federal and numerous state jurisdictions. The Company is subject to tax audits in numerous jurisdictions in the United States until the applicable statute of limitations expires. The Company is no longer subject to U.S. federal tax examinations for tax years prior to 2015. The Company is open for various state tax audits for tax years 2014 and later.

Employee Benefits

Employee Benefits	12 Months Ended
	Dec. 31, 2018
Employee Benefits
Employee Benefits	16. Employee Benefits Hilltop and its subsidiaries have benefit plans that provide for elective deferrals by employees under Section 401(k) of the Internal Revenue Code. Employee contributions are determined by the level of employee participation and related salary levels per Internal Revenue Service regulations. Hilltop and its subsidiaries match a portion of employee contributions based on the amount of eligible employees’ contributions and salaries. The amount charged to operating expense for these matching contributions totaled $15.0 million, $13.9 million and $15.1 million during 2018, 2017 and 2016, respectively. Effective upon the completion of the PlainsCapital Merger, the Company recorded a liability of $8.9 million associated with separate retention agreements entered into between Hilltop and two executive officers. At December 31, 2018 and 2017, the recorded liability, including interest, was $9.2 million and $9.1 million, respectively. The Bank purchased $15.0 million of flexible premium universal life insurance in 2001 to help finance the annual expense incurred in providing various employee benefits. At December 31, 2018 and 2017, the carrying value of the policies included in other assets was $26.5 million and $25.8 million, respectively. During each of 2018, 2017 and 2016, the Bank recorded income of $0.6 million related to the policies that was reported in other noninterest income within the consolidated statement of operations. Deferred Compensation Plan As a result of the SWS Merger, the Company assumed a deferred compensation plan (the “SWS Plan”) that allows former SWS eligible officers and employees to defer a portion of their bonus compensation and commissions. The SWS Plan matched 15% of the deferrals made by participants up to a predetermined limit through matching contributions that vest ratably over four years. Pursuant to the terms of the SWS Plan, the trustee periodically purchased the former SWS common stock in the open market. As a result of the SWS Merger, the former SWS common shares were converted into Hilltop common stock based on the terms of the merger agreement. No further contributions can be made to this plan. The assets of the SWS Plan are held in a rabbi trust and primarily include investments in company-owned life insurance (“COLI”) and Hilltop common stock. These assets are consolidated with those of the Company. Investments in COLI are carried at the cash surrender value of the insurance policies and recorded in other assets within the consolidated balance sheet at December 31, 2018 and 2017, respectively. Investments in Hilltop common stock, which are carried at cost, and the corresponding liability related to the deferred compensation plan are presented as components of stockholders’ equity as employee stock trust and deferred compensation employee stock trust, net, respectively, at December 31, 2018 and 2017, respectively.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2018
Related Party Transactions
Related Party Transactions	17. Related Party Transactions Pursuant to a Sublease Agreement, Diamond A Administration Company LLC (“Diamond A Admin”), an affiliate of Gerald J. Ford, the current Chairman of the Board of Hilltop and the beneficial owner of 16.8% of Hilltop common stock at December 31, 2018, provided office space to Hilltop at a cost of $24 thousand per month. This Sublease Agreement expired July 31, 2018 and was not renewed. Jeremy B. Ford, a director and the President and Co-Chief Executive Officer of Hilltop, is the beneficiary of a trust that owns a 49% limited partnership interest in Diamond A Financial, L.P. Diamond A Financial, L.P. owned 16.8% of the outstanding Hilltop common stock at December 31, 2018. He also is a director and the Secretary of Diamond A Admin, which provided office space to Hilltop as described in the preceding paragraph. Diamond A Admin is owned by Hunter’s Glen/Ford, Ltd., a limited partnership in which a trust for the benefit of Jeremy B. Ford is a 46% limited partner. Jeremy B. Ford is the son of Gerald J. Ford. Corey G. Prestidge, Hilltop’s General Counsel and Secretary, is the son-in-law of Gerald J. Ford. Accordingly, Messrs. Jeremy Ford and Corey Prestidge are brothers-in-law. In the ordinary course of business, the Bank has granted loans to certain directors, executive officers and their affiliates (collectively referred to as related parties) totaling $1.2 million and $34.6 million at December 31, 2018 and 2017, respectively. These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. For such loans during 2018, there were no principal additions and total principal payments were $33.5 million. At December 31, 2018 and 2017, the Bank held deposits of related parties of $126.3 million and $151.0 million, respectively. A related party is the lessor in an operating lease with the Bank. The Bank’s minimum payment under the lease is $0.5 million annually through 2028, for an aggregate remaining obligation of $5.0 million at December 31, 2018. The Bank purchased loans from a company for which a related party serves as a director, president and chief executive officer. At December 31, 2018 and 2017, the outstanding balance of the purchased loans was $1.2 million and $2.1 million, respectively. The loans were purchased with recourse in the ordinary course of business and the related party had no direct financial interest in the transaction. Hilltop Plaza Investment On July 31, 2018, HTH Diamond Hillcrest Land LLC (“Hillcrest Land LLC”) purchased approximately 1.7 acres of land in the City of University Park, Texas for $38.5 million. Hillcrest Land LLC is owned equally between Hilltop Investments I, LLC, a wholly owned entity of Hilltop, and Diamond Ground, LLC, an affiliate of Gerald J. Ford. Each of Hilltop Investments I, LLC and Diamond Ground, LLC contributed $19.3 million to Hillcrest Land LLC to complete the purchase. As the voting rights of Hillcrest Land LLC are shared equally between the Company and Diamond Ground, LLC, there is no primary beneficiary, and Diamond Ground, LLC’s interest in Hillcrest Land LLC has been reflected as a noncontrolling interest in the Company’s consolidated financial statements. Therefore, the Company has consolidated Hillcrest Land LLC under the VIE model according to the “most-closely associated” test. The purchased land is included within premises and equipment, net in the consolidated balance sheets. Any income (loss) associated with Hillcrest Land LLC is included within other noninterest income in the consolidated statements of operations. Trusts for which Jeremy Ford and the wife of Corey Prestidge are a beneficiary own 10.2% and 10.1%, respectively, of Diamond Ground, LLC. In connection with the purchase of the land, Hillcrest Land LLC entered into a 99-year ground lease of the land with three tenants-in-common: SPC Park Plaza Partners LLC (“Park Plaza LLC”), an unaffiliated entity which received an undivided 50% leasehold interest; HTH Hillcrest Project LLC (“HTH Project LLC”), a wholly owned subsidiary of Hilltop, which received an undivided 25% leasehold interest; and Diamond Hillcrest, LLC (“Diamond Hillcrest”), an entity owned by Mr. Gerald J. Ford, which received an undivided 25% leasehold interest (collectively, the “Co-Owners”). The ground lease is triple net. The base rent from the Co-Owners under the ground lease commences 18 months after the ground lease was signed at $1.8 million per year and increases 1.0% per year each January 1 thereafter. The ground lease was classified as an operating lease under ASC 840, and the accounting commencement date was determined to be July 31, 2018, the date the land was available to the Co-Owners. Concurrent with the ground lease, the Co-Owners entered into an agreement to purchase the improvements currently being constructed on the land, which is a mixed-use project containing a six-story building (“Hilltop Plaza”). HTH Project LLC and Diamond Hillcrest each own an undivided 25% interest in Hilltop Plaza. Park Plaza LLC owns the remaining undivided 50% interest in Hilltop Plaza. Park Plaza LLC has agreed to serve as the Co-Owner property manager under the Co-Owners Agreement; however, certain actions require unanimous approval of all Co-Owners. Hilltop Plaza will be funded through a $41.0 million construction loan from an unaffiliated third party bank, as well as cash contributions of $5.3 million from each of HTH Project LLC and Diamond Hillcrest. HTH Project LLC’s undivided interest in Hilltop Plaza is accounted for as an equity method investment as the tenants-in-common have joint control over decisions regarding Hilltop Plaza. The investment is included within other assets in the consolidated balance sheets and any income (loss) is included within other noninterest income in the consolidated statements of operations. Hilltop and the Bank entered into leases for an aggregate of approximately 72,000 of the total 119,000 square feet of rentable space in Hilltop Plaza to serve as the headquarters for both companies. The two separate 129-month office and retail leases have combined total base rent of approximately $35 million with the first nine months of rent abated. Move-in is expected in the fourth quarter of 2019. The office and retail leases were considered under the build-to-suit provisions of ASC 840, and the Company was determined to be the accounting owner of the project as its affiliate, HTH Project LLC, has an equity investment in the project. As such, the assets of Hilltop Plaza are recognized during the construction period as costs are incurred to construct the asset, with a corresponding liability representing the costs paid for by the lessor (the Co-Owners). At December 31, 2018, the $27.8 million of costs incurred to date are included within premises and equipment and other liabilities, respectively, in the consolidated balance sheets. All intercompany transactions associated with the Hilltop Plaza investment and the related transactions discussed above are eliminated in consolidation.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	18. Commitments and Contingencies During 2017, the Bank acted as agent on behalf of certain correspondent banks in the purchase and sale of federal funds that aggregated to $3.0 million at December 31, 2017. There were no such transactions during 2018. 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 an accrued probable loss. When the Company is able to estimate such probable 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 estimates 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. 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 (“HUD”) 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 DOJ related to this Inquiry. According to the Civil Investigative Demand, the DOJ conducted an investigation to determine whether PrimeLending violated the False Claims Act in connection with originating and underwriting single-family residential mortgage loans insured by the FHA. In order to avoid the delay, uncertainty, inconvenience and expense of protracted ligation, on October 23, 2018, PrimeLending entered into a Settlement Agreement and an Indemnification Agreement with the DOJ and HUD, respectively. In these agreements, PrimeLending did not admit to any liability or wrongdoing, and the DOJ and HUD did not make any concessions with respect to their alleged claims. These agreements provide for payments to each of the DOJ and HUD of $6.75 million. In exchange for these payments, each of the DOJ and HUD released any civil claims it may have related to certain loans originated by PrimeLending. The payments were made to the DOJ and HUD during the fourth quarter of 2018 and the indemnification liability related to this matter was released. Accordingly, the Company’s operating results or financial condition will not be impacted by this matter in future periods. 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 December 31, 2018 and 2017, the mortgage origination segment’s indemnification liability reserve totaled $10.7 million and $23.5 million, respectively. The provision for indemnification losses was $3.2 million, $4.0 million and $4.6 million during 2018, 2017 and 2016, 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 Year Ended December 31, 2018 2017 2016 Balance, beginning of period $ 33,702 $ 40,669 $ 57,298 Claims made 22,156 42,330 21,410 Claims resolved with no payment (13,169) (37,439) (19,696) Repurchases (8,250) (6,490) (4,164) Indemnification payments (655) (5,368) (14,179) Balance, end of period $ 33,784 $ 33,702 $ 40,669 Indemnification Liability Reserve Activity Year Ended December 31, 2018 2017 2016 Balance, beginning of period $ 23,472 $ 18,239 $ 16,640 Additions for new sales 3,170 3,962 4,638 Repurchases (612) (466) (392) Early payment defaults (368) (228) (241) Indemnification payments (13,687) (713) (2,482) Change in reserves for loans sold in prior years (1,274) 2,678 76 Balance, end of period $ 10,701 $ 23,472 $ 18,239 December 31, 2018 2017 Reserve for Indemnification Liability (1) : Specific claims $ 676 $ 646 Incurred but not reported claims 10,025 22,826 Total $ 10,701 $ 23,472 (1) As a result of the DOJ and HUD agreements discussed above, at December 31, 2018, the change in the Reserve for Indemnification Liability reflects the total of $13.5 million of payments made to the DOJ and HUD to resolve the specific claims related to this matter. These claims were included in incurred but not reported claims in prior periods. 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 As discussed in Note 16 to the consolidated financial statements, effective upon completion of the PlainsCapital Merger, Hilltop entered into separate retention agreements with two executive officers, one having an initial term of three years (with automatic one-year renewals at the end of two years and each anniversary thereof) and the other having an initial term of two years (with automatic one-year renewals at the end of the first year and each anniversary thereof). Each of these retention agreements provides for severance pay benefits if the executive officer’s employment is terminated without “cause”. In addition to these retention agreements, Hilltop and its subsidiaries maintain employment contracts with certain officers that provide for benefits in the event of a “change in control” as defined in these agreements. Hilltop and its subsidiaries lease space, primarily for corporate offices, branch facilities and automated teller machines, under noncancelable operating leases with remaining terms, including renewal options, of 1 to 10 years and under capital leases with remaining terms of 5 to 9 years. Rental expense under the operating leases was $42.9 million, $43.5 million and $41.9 million in 2018, 2017 and 2016, respectively. Future minimum lease payments under lease agreements that had commenced as of December 31, 2018, excluding intercompany leases and subleases which are eliminated in consolidation, are presented below (in thousands). Operating Leases Capital Leases 2019 $ 36,171 $ 1,186 2020 29,109 1,197 2021 21,058 1,212 2022 16,386 1,241 2023 12,361 1,280 Thereafter 18,264 3,460 Total minimum lease payments $ 133,349 9,576 Amount representing interest (1,221) Present value of minimum lease payments $ 8,355

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk	12 Months Ended
	Dec. 31, 2018
Financial Instruments with Off-Balance Sheet Risk
Financial Instruments with Off-Balance Sheet Risk	19. 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 $2.4 billion at December 31, 2018 and outstanding financial and performance standby letters of credit of $85.0 million at December 31, 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 and to hedge changes in the fair value of certain securities, 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	12 Months Ended
	Dec. 31, 2018
Stock-Based Compensation
Stock-Based Compensation	20. 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, 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 December 31, 2018, 1,246,880 shares of common stock remain available for issuance pursuant to the 2012 Plan, including shares that may be delivered pursuant to outstanding awards. Compensation expense related to the 2012 Plan was $9.1 million, $10.8 million and $10.5 million during 2018, 2017 and 2016, respectively. During 2018, 2017 and 2016, Hilltop granted 30,400, 16,859 and 21,224 shares of common stock, respectively, to certain non-employee members of the Company’s board of directors for services rendered to the Company pursuant to the 2012 Plan. Restricted Stock Awards and RSUs The Compensation Committee of the board of directors of the Company issued restricted shares of Hilltop common stock (“Restricted Stock Awards”) and RSUs pursuant to the 2012 Plan. The Restricted Stock Awards generally cliff vested on the third anniversary of the grant date and were subject to service conditions set forth in the award agreements, with associated costs recognized on a straight-line basis over the respective vesting periods. The award agreements governing the Restricted Stock Awards provided for accelerated vesting under certain conditions. As of September 30, 2017, all remaining Restricted Stock Awards had vested and none were outstanding. Certain RSUs are subject to time-based vesting conditions and generally provided for a cliff vest on the third anniversary of the grant date, while other RSUs provided for vesting based upon the achievement of certain performance goals over a three-year period subject to service conditions set forth in the award agreements, with associated costs generally recognized on a straight-line basis over the respective vesting periods. The RSUs are not transferable, and the shares of common stock issuable upon conversion of vested RSUs may be subject to transfer restrictions for a period of one year following conversion, subject to certain exceptions. In addition, the applicable RSU award agreements provide for accelerated vesting under certain conditions. The following table summarizes information about Restricted Stock Award and RSU activity for the noted periods (shares in thousands). Restricted Stock Awards RSUs Weighted Weighted Average Average Grant Date Grant Date Outstanding Fair Value Outstanding Fair Value Balance, December 31, 2015 453 $ 13.50 875 $ 21.22 Granted - $ - 598 $ 17.78 Vested/Released (447) $ 13.41 (7) $ 22.22 Forfeited (2) $ 19.72 (10) $ 20.70 Balance, December 31, 2016 4 $ 19.95 1,456 $ 19.83 Granted - $ - 450 $ 26.37 Vested/Released (4) $ 19.95 (451) $ 22.48 Forfeited - $ - (137) $ 22.41 Balance, December 31, 2017 - $ - 1,318 $ 20.89 Granted - $ - 510 $ 24.00 Vested/Released - $ - (406) $ 19.92 Forfeited - $ - (152) $ 20.97 Balance, December 31, 2018 - $ - 1,270 $ 22.44 Vested/Released Restricted Stock Awards and RSUs include an aggregate of 327,387 shares withheld to satisfy employee statutory tax obligations during 2018, 2017 and 2016. Pursuant to certain RSU award agreements, an aggregate of 17,481 vested RSUs at December 31, 2018 require deferral of the settlement in shares and statutory tax obligations to a future date. During 2018, the Compensation Committee of the board of directors of the Company awarded certain executives and key employees an aggregate of 486,155 RSUs pursuant to the 2012 Plan. At December 31, 2018, 366,827 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 December 31, 2018, in the aggregate, 1,010,075 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 December 31, 2018, unrecognized compensation expense related to outstanding RSUs of $12.8 million is expected to be recognized over a weighted average period of 1.25 years.

Regulatory Matters

Regulatory Matters	12 Months Ended
	Dec. 31, 2018
Regulatory Matters
Regulatory Matters	21. Regulatory Matters Banking and Hilltop PlainsCapital, which includes the Bank and PrimeLending, and Hilltop are subject to various regulatory capital requirements administered by the 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 is ultimately dependent upon its subsidiaries to provide funding for operating expenses, debt service and dividends. Various laws limit the payment of dividends and other distributions by subsidiaries to parent companies, and may therefore limit the Company’s ability to pay dividends on its common stock. In addition, the federal bank regulatory agencies have issued policy statements providing that FDIC-insured depository institutions and their holding companies should generally pay dividends only out of their current operating earnings. Furthermore, if required payments on the Company’s outstanding junior subordinated debentures held by its unconsolidated subsidiary trusts are not made or are suspended, the Company may be prohibited from paying dividends on its common stock. Regulatory authorities could also impose administratively stricter limitations on the ability of the Company’s subsidiaries to pay dividends to the Company if such limits were deemed appropriate to preserve certain capital adequacy requirements. In January 2015, the comprehensive capital framework (“Basel III”) for U.S. banking organizations became effective for PlainsCapital and Hilltop for reporting periods beginning after January 1, 2015 (subject to a phase-in period through January 2019). Under Basel III, total capital consists of two tiers of capital, Tier 1 and Tier 2. Tier 1 capital is further composed of common equity Tier 1 capital and additional Tier 1 capital. Total capital is the sum of Tier 1 capital and Tier 2 capital. 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 PlainsCapital and Hilltop. Based on the actual ratios as shown in the table below, Hilltop and the Bank exceed each of the capital conservation buffer requirements in effect as of December 31, 2018, as well as the fully phased-in requirements through 2019. In addition, under the final rules, bank holding companies with less than $15 billion in assets as of December 31, 2009 are allowed to continue to include junior subordinated debentures in Tier 1 capital, subject to certain restrictions. However, if an institution grows to above $15 billion in assets as a result of an acquisition, or organically grows to above $15 billion in assets and then makes an acquisition, the combined trust preferred issuances must be phased out of Tier 1 and into Tier 2 capital. All of the debentures issued to the Trusts, less the common stock of the Trusts, qualified as Tier 1 capital as of December 31, 2018, under guidance issued by the Board of Governors of the Federal Reserve System. The following tables show 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 December 31, 2018 and 2017, respectively (dollars in thousands). Based on the 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 December 31, 2018 Tier 1 capital (to average assets): PlainsCapital $ 1,183,447 12.47 % 4.0 % 4.0 % 5.0 % Hilltop 1,680,364 12.53 % 4.0 % 4.0 % N/A Common equity Tier 1 capital (to risk-weighted assets): PlainsCapital 1,183,447 13.90 % 6.375 % 7.0 % 6.5 % Hilltop 1,634,978 16.58 % 6.375 % 7.0 % N/A Tier 1 capital (to risk-weighted assets): PlainsCapital 1,183,447 13.90 % 7.875 % 8.5 % 8.0 % Hilltop 1,680,364 17.04 % 7.875 % 8.5 % N/A Total capital (to risk-weighted assets): PlainsCapital 1,245,177 14.63 % 9.875 % 10.5 % 10.0 % Hilltop 1,722,602 17.47 % 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 A reconciliation of equity capital to common equity Tier 1, Tier 1 and total capital (as defined) is as follows (in thousands). December 31, 2018 December 31, 2017 PlainsCapital Hilltop PlainsCapital Hilltop Total equity capital $ 1,459,985 $ 1,949,470 $ 1,379,402 $ 1,912,081 Add: Net unrealized holding losses (gains) on securities available for sale and held in trust 7,988 8,627 3,520 394 Deduct: Goodwill and other disallowed intangible assets (282,238) (319,942) (235,395) (273,466) Other (2,288) (3,177) — — Common equity Tier 1 capital (as defined) 1,183,447 1,634,978 1,147,527 1,639,009 Add: Tier 1 capital Trust preferred securities — 65,000 — 65,000 Deduct: Additional Tier 1 capital deductions — (19,614) — (15,651) Tier 1 capital (as defined) 1,183,447 1,680,364 1,147,527 1,688,358 Add: Allowable Tier 2 capital Allowance for loan losses, including unfunded commitments 61,730 61,852 65,266 65,618 Deduct: Additional Tier 2 capital deductions — (19,614) — (15,651) Total capital (as defined) $ 1,245,177 $ 1,722,602 $ 1,212,793 $ 1,738,325 Broker-Dealer Pursuant to the net capital requirements of the Exchange Act, Hilltop Securities elected to determine its net capital requirement 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 December 31, 2018, the net capital position of each of the Hilltop Broker-Dealers was as follows (in thousands). HTS Hilltop Independent Securities Network Net capital $ 193,995 $ 3,073 Less: required net capital 10,898 250 Excess net capital $ 183,097 $ 2,823 Net capital as a percentage of aggregate debit items 35.6 % Net capital in excess of 5% aggregate debit items $ 166,750 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 December 31, 2018 and 2017, the Hilltop Broker-Dealers held cash of $134.0 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 or securities in special reserve accounts for the benefit of proprietary accounts of introducing broker-dealers at December 31, 2018 and 2017. Mortgage Origination As a mortgage originator, PrimeLending and its subsidiaries are subject to minimum net worth and liquidity requirements established by HUD and 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 December 31, 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, 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). December 31, 2018 2017 Statutory capital and surplus: National Lloyds Insurance Company $ 78,637 $ 93,812 American Summit Insurance Company 17,908 22,778 Year Ended December 31, 2018 2017 2016 Statutory net income (loss): National Lloyds Insurance Company $ 9,114 $ (1,785) $ 13,043 American Summit Insurance Company (1,304) 742 2,124 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 December 31, 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 December 31, 2018, the Company’s insurance subsidiaries’ RBC ratio exceeded the level at which regulatory action would be required.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity
Stockholders' Equity	22. Stockholders’ Equity The Bank is subject to certain restrictions on the amount of dividends it may declare without prior regulatory approval. At December 31, 2018, $163.5 million of its earnings was available for dividend declaration without prior regulatory approval. At December 31, 2018, the maximum aggregate dividend that may be paid to NLC from its insurance company subsidiaries without regulatory approval was $11.7 million. Dividends During 2018, 2017 and 2016, the Company declared and paid cash dividends of $0.28, $0.24 and $0.06 per common share, or $26.7 million, $23.1 million and $5.8 million, respectively. On January 24, 2019, the Company announced that its board of directors declared a quarterly cash dividend of $0.08 per common share, payable on February 28, 2019, to all common stockholders of record as of the close of business on February 15, 2019. Stock Repurchase Programs The Company’s board of directors has periodically approved stock repurchase programs under which it authorized the Company to repurchase its outstanding common stock. Under the respective stock repurchase program authorized, the Company could repurchase shares in open-market purchases or through privately negotiated transactions as permitted under Rule 10b-18 promulgated under the Exchange Act. The extent to which the Company repurchased its shares and the timing of such repurchases depended upon market conditions and other corporate considerations, as determined by Hilltop’s management team. Repurchased shares will be returned to the Company’s pool of authorized but unissued shares of common stock. In January 2017, the Hilltop board of directors reauthorized the stock repurchase program originally approved during the second quarter of 2016 through January 2018. During 2017, the Company paid $27.4 million to repurchase an aggregate of 1,057,656 shares of common stock at an average price of $25.87 per share, inclusive of repurchases to offset dilution related to grants of stock-based compensation. This stock repurchase program expired in January 2018. All purchases were funded from available cash balances. In January 2018, the Hilltop board of directors authorized a 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, inclusive of repurchases to offset dilution related to grants of stock-based compensation. During 2018, the Company paid $59.0 million to repurchase an aggregate of 2,729,568 shares of common stock at an average price of $21.61 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. In January 2019, our board of directors authorized a new stock repurchase program through January 2020, pursuant to which we are authorized to repurchase, in the aggregate, up to $50.0 million of our outstanding common stock, inclusive of repurchases to offset dilution related to grants of stock-based compensation.

Other Noninterest Income and Ex

Other Noninterest Income and Expense	12 Months Ended
	Dec. 31, 2018
Other Noninterest Income and Expense
Other Noninterest Income and Expense	23. Other Noninterest Income and Expense The following table shows the components of other noninterest income and expense (in thousands). Year Ended December 31, 2018 2017 2016 Other noninterest income: Net gains from Hilltop Broker-Dealer trading activities $ 41,543 $ 70,922 $ 86,383 Service charges on depositor accounts 14,484 14,429 14,162 Trust fees 9,807 7,485 6,782 Net gain from trading securities portfolio 6,197 20,210 15,926 Insurance commissions 5,211 4,819 4,206 Insurance direct billing and other policy fees 3,930 4,353 4,818 Revenue from check and stored value cards 2,966 3,169 5,036 Rent and other income from other real estate owned 764 1,280 1,461 SWS merger appraisal proceeding — 11,757 — FDIC Indemnification Asset accretion — — 242 Other 11,403 25,546 15,248 $ 96,305 $ 163,970 $ 154,264 Other noninterest expense: Software and information technology $ 56,986 $ 45,891 $ 38,421 Brokerage commissions and fees 20,674 22,884 24,654 Mortgage origination and servicing 19,705 22,353 25,736 Unreimbursed loan closing costs 16,798 20,428 31,234 Business development 15,913 18,619 19,738 Travel, meals and entertainment 12,389 12,839 13,683 Amortization of intangible assets 8,426 8,263 10,174 FDIC indemnification asset amortization 6,509 17,083 — Office supplies 6,123 7,806 8,719 Funding fees 5,414 8,464 7,451 OREO and repossessed assets 3,885 4,004 13,438 FDIC "true-up" 250 2,100 8,750 Other 51,183 51,362 49,523 $ 224,255 $ 242,096 $ 251,521

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2018
Derivative Financial Instruments
Derivative Financial Instruments	24. 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 Bank’s 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”) and Eurodollar futures. Additionally, PrimeLending has interest rate risk relative to its MSR asset and uses derivative instruments, including 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. Additionally, Hilltop Securities uses both U.S. Treasury bond and Eurodollar futures to hedge changes in the fair value of their securities. 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 and forward commitments 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 values of PrimeLending’s derivative instruments decreased $12.8 million during 2018, compared with a decrease of $13.1 million during 2017 and an increase of $8.0 million during 2016. 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 decreased $0.4 million during 2018, compared with an increase of and $8.1 million during 2017 and a decrease of $23.4 million during 2016. The fair values of the Bank’s derivatives increased nominally during 2018, and increased $0.3 million and $0.4 million during 2017 and 2016, respectively. The changes in fair value were recorded as a component of other noninterest income. Derivative positions are presented in the following table (in thousands). December 31, 2018 December 31, 2017 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Derivative instruments: IRLCs $ 677,267 $ 17,421 $ 850,850 $ 18,851 Customer-based written options 31,200 (49) 21,637 38 Customer-based purchased options 31,200 49 21,637 (38) Commitments to purchase MBSs 2,359,630 10,467 2,831,635 (921) Commitments to sell MBSs 3,711,477 (19,315) 4,963,498 2,972 Interest rate swaps 15,104 82 25,971 51 U.S. Treasury bond futures and options (1) 367,200 — 214,500 — Eurodollar futures (1) 104,000 — — — (1) PrimeLending has cash collateral advances totaling $11.9 million and $0.8 million to offset net liability derivative positions on its commitments to sell MBSs at December 31, 2018 and 2017, respectively. In addition, PrimeLending and the Hilltop Broker-Dealers advanced cash collateral totaling $3.4 million and $3.2 million on its U.S. Treasury bond futures and options and Eurodollar futures at December 31, 2018 and 2017, respectively. These amounts are included in other assets within the consolidated balance sheets.

Balance Sheet Offsetting

Balance Sheet Offsetting	12 Months Ended
	Dec. 31, 2018
Balance Sheet Offsetting
Balance Sheet Offsetting	25. 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 December 31, 2018 Securities borrowed: Institutional counterparties $ 1,365,547 $ — $ 1,365,547 $ (1,307,121) $ — $ 58,426 Interest rate options: Customer counterparties 49 — 49 — — 49 Interest rate swaps: Institutional counterparties 88 — 88 — — 88 Reverse repurchase agreements: Institutional counterparties 61,611 — 61,611 (61,390) — 221 Forward MBS derivatives: Institutional counterparties 10,469 — 10,469 (10,469) — — $ 1,437,764 $ — $ 1,437,764 $ (1,378,980) $ — $ 58,784 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 December 31, 2018 Securities loaned: Institutional counterparties $ 1,186,073 $ — $ 1,186,073 $ (1,136,033) $ — $ 50,040 Interest rate options: Institutional counterparties 49 — 49 — — 49 Interest rate swaps: Institutional counterparties 6 — 6 — — 6 Repurchase agreements: Institutional counterparties 533,441 — 533,441 (533,441) — — Customer counterparties 43,266 — 43,266 (43,266) — — Forward MBS derivatives: Institutional counterparties 19,331 (15) 19,316 (7,728) — 11,588 $ 1,782,166 $ (15) $ 1,782,151 $ (1,720,468) $ — $ 61,683 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 December 31, 2018 and 2017. Remaining Contractual Maturities Overnight and Greater Than December 31, 2018 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: U.S. Treasury and agency securities $ 131,848 $ — $ — $ — $ 131,848 Asset-backed securities 444,859 — — — 444,859 Securities lending transactions: Corporate securities 113 — — — 113 Equity securities 1,185,960 — — — 1,185,960 Total $ 1,762,780 $ — $ — $ — $ 1,762,780 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,762,780 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	12 Months Ended
	Dec. 31, 2018
Broker-Dealer and Clearing Organization Receivables and Payables
Broker-Dealer and Clearing Organization Receivables and Payables	26. Broker-Dealer and Clearing Organization Receivables and Payables Broker-dealer and clearing organization receivables and payables consisted of the following (in thousands). December 31, 2018 2017 Receivables: Securities borrowed $ 1,365,547 $ 1,386,821 Securities failed to deliver 16,300 25,491 Trades in process of settlement 32,993 29,412 Other 25,447 22,654 $ 1,440,287 $ 1,464,378 Payables: Securities loaned $ 1,186,073 $ 1,215,093 Correspondents 29,311 30,160 Securities failed to receive 75,015 37,864 Trades in process of settlement — — Other 4,526 4,446 $ 1,294,925 $ 1,287,563

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs	12 Months Ended
	Dec. 31, 2018
Deferred Policy Acquisition Costs.
Deferred Policy Acquisition Costs	27. Deferred Policy Acquisition Costs Policy acquisition expenses, primarily commissions, premium taxes and underwriting expenses related to the successful issuance of a new or renewal policy incurred by NLC are deferred and charged against income ratably over the terms of the related policies. A summary of the activity in deferred policy acquisition costs is as follows (in thousands). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 16,988 $ 18,603 $ 19,874 Acquisition expenses capitalized 34,328 34,934 37,231 Amortization charged to income (34,683) (36,549) (38,502) Balance, end of year $ 16,633 $ 16,988 $ 18,603 Amortization is included in policy acquisition and other underwriting expenses in the accompanying consolidated statements of operations.

Reserve for Losses and Loss Adj

Reserve for Losses and Loss Adjustment Expenses	12 Months Ended
	Dec. 31, 2018
Reserve for Losses and Loss Adjustment Expenses
Reserve for Losses and Loss Adjustment Expenses	28. 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). December 31, 2018 2017 Reserve for unpaid losses and allocated LAE balance, net $ 16,498 $ 17,470 Reinsurance recoverables on unpaid losses 3,214 11,495 Unallocated LAE 840 1,248 Reserve for unpaid losses and LAE balance, gross $ 20,552 $ 30,213 A summary of claims loss reserve development activity is presented in the following table (in thousands). December 31, 2018 Total of IBNR Reserves Plus Expected Cumulative Accident Year Ended December 31, 2018 Development on Number of Year Paid Incurred Reported Claims Reported Claims 2014 $ 83,808 $ 83,894 $ 22 18,832 2015 86,549 86,961 171 20,611 2016 83,169 84,076 401 20,201 2017 86,319 88,025 1,047 20,757 2018 61,922 75,217 6,250 15,296 Total 401,767 $ 418,173 92 All outstanding reserves prior to 2014, net of reinsurance $ 16,498 Reserve for unpaid losses and allocated LAE, net of reinsurance

Reinsurance Activity

Reinsurance Activity	12 Months Ended
	Dec. 31, 2018
Reinsurance Activity
Reinsurance Activity	29. 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 December 31, 2018, total reinsurance recoverables and receivables had a carrying value of $5.4 million, which is included in other assets within the consolidated balance sheet. There was no allowance for uncollectible accounts at December 31, 2018, based on NLC’s quality requirements. Reinsurers with a balance in excess of 5% of the Company’s outstanding reinsurance receivables at December 31, 2018 are listed below (in thousands). Balances Due From A.M. Best Reinsurers Rating R+V Versicherung AG $ 817 N/A Partner Reinsurance Company Ltd. 812 A Arch Reinsurance Company 706 A+ Aspen Bermuda Ltd 276 A $ 2,611 The effects of reinsurance on premiums written and earned are summarized as follows (in thousands). Year Ended December 31, 2018 2017 2016 Written Earned Written Earned Written Earned Premiums from direct business $ 129,611 $ 133,112 $ 137,091 $ 144,990 $ 152,970 $ 159,884 Reinsurance assumed 12,917 12,516 12,150 11,767 11,338 11,024 Reinsurance ceded (8,749) (8,877) (12,280) (14,459) (14,962) (15,363) Net premiums $ 133,779 $ 136,751 $ 136,961 $ 142,298 $ 149,346 $ 155,545 The effects of reinsurance on incurred losses are as follows (in thousands). Year Ended December 31, 2018 2017 2016 Losses and LAE incurred $ 76,464 $ 138,358 $ 113,494 Reinsurance recoverables 2,883 (43,657) (24,251) Net loss and LAE incurred $ 79,347 $ 94,701 $ 89,243 Catastrophic coverage NLC’s liabilities for losses and LAE include liabilities for reported losses, liabilities for IBNR losses and liabilities for LAE less a reduction for reinsurance recoverables related to those liabilities. The amount of liabilities for reported claims is based primarily on a claim-by-claim evaluation of coverage, liability, injury severity or scope of property damage, and any other information considered relevant to estimating exposure presented by the claim. The amounts of liabilities for IBNR losses and LAE are estimated on the basis of historical trends, adjusted for changes in loss costs, underwriting standards, policy provisions, product mix and other factors. Estimating the liability for unpaid losses and LAE is inherently judgmental and is influenced by factors that are subject to significant variation. Liabilities for LAE are intended to cover the ultimate cost of settling claims, including investigation and defense of lawsuits resulting from such claims. Based upon the contractual terms of the reinsurance agreements, reinsurance recoverables offset, in part, NLC’s gross liabilities. Effective July 1, 2017, NLC renewed its catastrophic excess of loss reinsurance coverage for a two year-period. At December 31, 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 $6.0 million in excess of its $2.0 million retention to bridge to the primary program. The reinsurance 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 December 31, 2018, total retention for any one catastrophe that affects both NLIC and ASIC was limited to $8 million in the aggregate. Effective January 1, 2019, NLC renewed its underlying excess of loss contract that provides $10.0 million aggregate coverage in excess of NLC’s per event retention of $1.0 million and aggregate retention of $15.0 million for sub-catastrophic events. As of January 1, 2019, NLC retains 37.5% participation in this coverage, up from 17.5% participation during 2018. During August and September 2017, NLC experienced losses related to Hurricane Harvey in excess of retention. As of December 31, 2018, the total gross losses and LAE incurred associated with Hurricane Harvey was $16.4 million. However, because the losses exceeded retention, net exposure to NLC was $5.9 million retention and $1.4 million in reinstatement premiums. During 2018 and 2016, NLC experienced no significant catastrophes that resulted in losses in excess of retention at NLIC or ASIC. There were 11 tornado, hail, monsoon and wind storms during 2018 that fit the coverage criteria for the underlying excess of loss contract providing aggregate coverage for sub-catastrophic events. These events had a gross incurred loss total of $26.1 million. During 2017, the 16 tornado, hail and wind storms that exceeded retention had incurred losses of $38.1 million, which developed a reinsured recoverable of $4.6 million at the 100% subscription level. During 2016, the 15 tornado, hail and wind storms that exceeded retention had incurred losses of $44.0 million, which developed a reinsured recoverable of $10.0 million at the 91% subscription level. These losses have no effect on net loss and LAE incurred beyond retention because the catastrophic events exceeded retention levels and are fully recoverable. Any losses beyond the reinsurance coverage limits of $10.0 million for 2016 are retained by the Company and have an effect on the net loss and LAE incurred. The primary financial effect beyond the reinsurance retention is additional reinstatement premiums payable to the affected reinsurers. In addition to the $1.4 million in reinstatement premiums noted above related to Hurricane Harvey in 2017, reinstatement premiums during 2018, 2017 and 2016 of $0.1 million, $1.4 million and $0.6 million, respectively, were recorded as ceded premiums.

Segment and Related Information

Segment and Related Information	12 Months Ended
	Dec. 31, 2018
Segment and Related Information
Segment and Related Information	30. 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, and since August 1, 2018, the operations of the former BORO acquired in the BORO Acquisition. 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. 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 Year Ended December 31, 2018 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 370,732 $ 50,878 $ 1,485 $ 3,025 $ (9,176) $ 19,380 $ 436,324 Provision (recovery) for loan losses 5,319 (231) — — — — 5,088 Noninterest income 43,588 301,714 551,860 142,565 4,893 (21,830) 1,022,790 Noninterest expense 256,577 320,241 540,474 139,921 36,628 (592) 1,293,249 Income (loss) before income taxes $ 152,424 $ 32,582 $ 12,871 $ 5,669 $ (40,911) $ (1,858) $ 160,777 Mortgage All Other and Hilltop Year Ended December 31, 2017 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 366,581 $ 43,735 $ (915) $ 2,861 $ (10,069) $ 19,555 $ 421,748 Provision for loan losses 14,073 198 — — — — 14,271 Noninterest income 59,904 368,421 632,388 151,382 12,798 (19,829) 1,205,064 Noninterest expense 248,404 347,314 581,899 158,354 33,983 (699) 1,369,255 Income (loss) before income taxes $ 164,008 $ 64,644 $ 49,574 $ (4,111) $ (31,254) $ 425 $ 243,286 Mortgage All Other and Hilltop Year Ended December 31, 2016 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 363,083 $ 31,172 $ (11,589) $ 3,164 $ (7,257) $ 18,958 $ 397,531 Provision (recovery) for loan losses 40,673 (53) — — — — 40,620 Noninterest income 52,579 385,766 704,126 164,841 2 (20,349) 1,286,965 Noninterest expense 244,715 377,524 614,741 146,601 29,938 (1,048) 1,412,471 Income (loss) before income taxes $ 130,274 $ 39,467 $ 77,796 $ 21,404 $ (37,193) $ (343) $ 231,405 Mortgage All Other and Hilltop Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated December 31, 2018 Goodwill $ 247,368 $ 7,008 $ 13,071 $ 23,988 $ — $ — $ 291,435 Total assets $ 10,004,971 $ 3,213,115 $ 1,627,134 $ 253,513 $ 2,243,182 $ (3,658,343) $ 13,683,572 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	12 Months Ended
	Dec. 31, 2018
Earnings per Common Share
Earnings per Common Share	31. Earnings per Common Share The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data). Year Ended December 31, 2018 2017 2016 Basic earnings per share: Income attributable to Hilltop $ 121,441 $ 132,544 $ 145,894 Less: income applicable to participating shares — — (6) Net earnings available to Hilltop common stockholders $ 121,441 $ 132,544 $ 145,888 Weighted average shares outstanding - basic 94,969 97,137 98,404 Basic earnings per common share $ 1.28 $ 1.36 $ 1.48 Diluted earnings per share: Income attributable to Hilltop $ 121,441 $ 132,544 $ 145,894 Weighted average shares outstanding - basic 94,969 97,137 98,404 Effect of potentially dilutive securities 98 216 225 Weighted average shares outstanding - diluted 95,067 97,353 98,629 Diluted earnings per common share $ 1.28 $ 1.36 $ 1.48

Financial Statements of Parent

Financial Statements of Parent	12 Months Ended
	Dec. 31, 2018
Financial Statements of Parent
Financial Statements of Parent	32. Financial Statements of Parent The following tables present the condensed combined financial statements of the Company’s bank holding company entities, Hilltop and PCC. The tables also include the corporate activities associated with Hilltop Opportunity Partners LLC and the Hilltop Plaza Entities (in thousands). Investments in subsidiaries are determined using the equity method of accounting. Condensed Combined Statements of Operations and Comprehensive Income Year Ended December 31, 2018 2017 2016 Dividends from bank subsidiaries $ 42,000 $ 53,000 $ 87,826 Dividends from nonbank subsidiaries 37,500 41,500 — Investment income 3,089 312 382 Interest expense 12,265 10,381 7,639 Other income 4,893 12,798 2 General and administrative expense 36,628 33,983 29,938 Income before income taxes, equity in undistributed earnings of subsidiaries and preferred stock activity 38,589 63,246 50,633 Income tax benefit (7,767) (15,577) (10,077) Equity in undistributed earnings of subsidiaries 79,371 54,321 87,234 Net income $ 125,727 $ 133,144 $ 147,944 Other comprehensive income (loss), net (5,656) (879) (2,144) Comprehensive income $ 120,071 $ 132,265 $ 145,800 Condensed Combined Balance Sheets December 31, 2018 2017 2016 Assets: Cash and cash equivalents $ 54,405 $ 96,764 $ 118,290 Investment in subsidiaries: Bank subsidiaries 1,459,984 1,340,093 1,304,917 Nonbank subsidiaries 483,593 603,631 609,539 Other assets 245,200 66,490 3 Total assets $ 2,243,182 $ 2,106,978 $ 2,032,749 Liabilities and Stockholders’ Equity: Accounts payable and accrued expenses $ 58,319 $ 46,442 $ 13,929 Notes payable 215,620 148,455 148,311 Stockholders’ equity 1,969,243 1,912,081 1,870,509 Total liabilities and stockholders’ equity $ 2,243,182 $ 2,106,978 $ 2,032,749 Condensed Combined Statements of Cash Flows Year Ended December 31, 2018 2017 2016 Operating Activities: Net income $ 125,727 $ 133,144 $ 147,944 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (79,371) (54,321) (87,234) Net realized gains on equity investments (5,336) — — Deferred income taxes 217 2,511 (2,063) Other, net 19,368 (57,380) 20,812 Net cash provided by operating activities 60,605 23,954 79,459 Investing Activities: Reimbursement from nonbank subsidiaries — — 6,000 Capital contribution to bank and bank holding company subsidiaries — (10,000) — Capital contribution to nonbank subsidiaries — — (20,000) Purchases of equity investments (12,492) — — Purchases of premises and equipment and other (42,390) (4,241) (98) Proceeds from sales of equity investments 16,174 — — Net cash used in investing activities (38,708) (14,241) (14,098) Financing Activities: Proceeds from issuances of common stock — — 4,139 Payments to repurchase common stock (58,990) (27,388) — Dividends paid on common stock (26,698) (23,140) (5,801) Net cash contributed from noncontrolling interest 19,250 — — Other, net 2,182 19,289 (951) Net cash used in financing activities (64,256) (31,239) (2,613) Net change in cash, cash equivalents and restricted cash (42,359) (21,526) 62,748 Cash, cash equivalents and restricted cash, beginning of year 96,764 118,290 55,542 Cash, cash equivalents and restricted cash, end of year $ 54,405 $ 96,764 $ 118,290 Supplemental Schedule of Non-Cash Activities: Construction in progress related to build-to-suit lease obligations $ 27,802 $ — $ — Note receivable contributed from nonbank subsidiary $ 111,653 $ — $ —

Recently Issued Accounting Stan

Recently Issued Accounting Standards	12 Months Ended
	Dec. 31, 2018
Recently Issued Accounting Standards
Recently Issued Accounting Standards	33. Recently Issued Accounting Standards Accounting Standards Adopted During 2018 In June 2018, FASB issued ASU 2018-07 which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendment is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company early adopted the amendment as of July 1, 2018, which did not have a material effect on its consolidated financial statements. 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 material 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, which did not have a material effect on its consolidated financial statements during the current year. 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 statements of cash flows. We have adopted the requirements of the new standard as of January 1, 2018. As a result, assets segregated for regulatory purposes, which consist of cash and cash equivalents, are now included in the beginning-of-period and end-of-period total amounts shown on the statements of cash flows for 2018, 2017 and 2016. Furthermore, the consolidated statements of cash flows now include disclosure of the line items in the consolidated balance sheets which make up cash, cash equivalents and restricted cash. The adoption of this ASU had no impact on the Company’s financial condition or results of operations. 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 material effect on its 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 material 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 $35.8 million are included in other assets within the consolidated balance sheets at December 31, 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 material effect on the Company’s consolidated financial statements. On January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from Contracts with Customers, 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. The new standard outlines 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 standard also requires 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. 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. 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 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. Accounting Standards Issued But Not Yet Adopted In August 2018, FASB issued ASU 2018-15 which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software licenses). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendment also includes presentation and disclosure provisions regarding capitalized implementation costs. The amendment is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the provisions of the amendment and the impact on its future consolidated financial statements. In August 2018, FASB issued ASU 2018-13 which includes various removals, modifications and additions to existing guidance regarding fair value disclosures. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the provisions of the amendments but does not expect the amendments to have a material impact on its future consolidated financial statements. In July 2018, FASB issued ASU 2018-09 which clarifies, corrects and makes minor improvements to a wide variety of topics in the ASC. The amendments make the ASC easier to understand and apply by eliminating inconsistencies and providing clarifications. The transition and effective dates are based on the facts and circumstances of each amendment, with some amendments becoming effective upon issuance of the ASU, and others becoming effective for annual periods beginning after December 15, 2018. Those amendments that were effective upon issuance of the ASU did not have a significant impact on the Company’s consolidated financial statements. The Company is currently evaluating the impact of the adoption of the other amendments on its future consolidated financial statements. In August 2017, FASB issued ASU 2017-12 which provides targeted improvements to accounting for hedging activities. Subsequently, in October 2018, FASB issued ASU 2018-16. The purpose of the amendments 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 in addition to clarifying the benchmark interest rates which are eligible for purposes of applying hedge accounting under Topic 815. The amendments are 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 amendments 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. For available for sale debt securities, entities will be required to record allowances for credit losses rather than reduce the carrying amount, as required under the current OTTI model, and will be allowed to reverse previously established allowances in the event the credit of the issuer improves. 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 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 amendments and technical corrections in ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20. The new standard, which is codified in ASC 842, Leases, 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. The Company adopted the new standard as of January 1, 2019, using the required modified retrospective transition where the lessees and lessors are required to recognize and measure leases at the date of adoption. The Company’s implementation efforts are substantially complete, 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 recognized lease liabilities and corresponding right-to-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. 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. The Company expects to record operating lease liabilities in the range of approximately $120 million to $125 million and right-to-use assets in the range of approximately $110 million to $115 million upon completion of its implementation efforts during the first quarter of 2019. In addition, the Company reassessed its accounting ownership of the Hilltop Plaza assets under construction as of January 1, 2019, upon implementation of ASC 842 and concluded it is not the accounting owner under the new lease accounting standard. As such, the assets and liabilities of the project are required to be derecognized during the first quarter of 2019, with the offset recorded directly to retained earnings.

Selected Quarterly Financial In

Selected Quarterly Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2018
Selected Quarterly Financial Information (Unaudited)
Selected Quarterly Financial Information (Unaudited)	34 . Selected Quarterly Financial Information (Unaudited) Selected quarterly financial information is summarized as follows (in thousands, except per share data). Year Ended December 31, 2018 Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Interest income $ 157,702 $ 148,326 $ 140,040 $ 133,360 $ 579,428 Interest expense 39,987 37,985 35,192 29,940 143,104 Net interest income 117,715 110,341 104,848 103,420 436,324 Provision (recovery) for loan losses 6,926 (371) 340 (1,807) 5,088 Noninterest income 238,516 269,697 279,434 235,143 1,022,790 Noninterest expense 310,819 335,711 338,517 308,202 1,293,249 Income before income taxes 38,486 44,698 45,425 32,168 160,777 Income tax expense 8,928 7,600 11,034 7,488 35,050 Net income 29,558 37,098 34,391 24,680 125,727 Less: Net income attributable to noncontrolling interest 1,443 1,293 1,311 239 4,286 Income attributable to Hilltop $ 28,115 $ 35,805 $ 33,080 $ 24,441 $ 121,441 Earnings per common share: Basic $ 0.30 $ 0.38 $ 0.35 $ 0.25 $ 1.28 Diluted $ 0.30 $ 0.38 $ 0.35 $ 0.25 $ 1.28 Cash dividends declared per common share $ 0.07 $ 0.07 $ 0.07 $ 0.07 $ 0.28 Year Ended December 31, 2017 Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Interest income $ 133,665 $ 128,944 $ 136,306 $ 108,241 $ 507,156 Interest expense 24,973 23,964 20,330 16,141 85,408 Net interest income 108,692 104,980 115,976 92,100 421,748 Provision for loan losses 5,453 1,260 5,853 1,705 14,271 Noninterest income 290,456 298,477 344,692 271,439 1,205,064 Noninterest expense 328,670 353,842 366,251 320,492 1,369,255 Income before income taxes 65,025 48,355 88,564 41,342 243,286 Income tax expense 51,350 18,003 25,754 15,035 110,142 Net income 13,675 30,352 62,810 26,307 133,144 Less: Net income attributable to noncontrolling interest 247 146 334 (127) 600 Income attributable to Hilltop $ 13,428 $ 30,206 $ 62,476 $ 26,434 $ 132,544 Earnings per common share: Basic $ 0.14 $ 0.31 $ 0.64 $ 0.27 $ 1.36 Diluted $ 0.14 $ 0.31 $ 0.63 $ 0.27 $ 1.36 Cash dividends declared per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.24

Schedule I - Insurance Incurred

Schedule I - Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	12 Months Ended
	Dec. 31, 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 (in thousands) Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance December 31, 2018 Total of Incurred But Not Reported Reserves Plus Cumulative Development Number of Accident December 31, 2018 On Reported Reported Year 2014 2015 2016 2017 2018 Claims Claims 2014 $ 83,784 $ 85,037 $ 84,221 $ 84,074 $ 83,894 $ 22 18,832 2015 89,646 88,477 87,262 86,961 171 20,611 2016 84,771 85,189 84,076 401 20,201 2017 87,899 88,025 1,047 20,757 2018 75,217 6,250 15,296 $ 418,173 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident December 31, 2018 Year 2014 2015 2016 2017 2018 2014 $ 70,831 $ 79,713 $ 81,684 $ 83,346 $ 83,808 2015 71,820 82,940 85,507 86,549 2016 71,543 81,682 83,169 2017 77,675 86,319 2018 61,922 Total $ 401,767 All outstanding reserves prior to 2014, net of reinsurance 92 Reserve for unpaid losses and allocated loss adjustment expenses, net of reinsurance $ 16,498

Summary of Significant Accoun_2

Summary of Significant Accounting and Reporting Policies (Policies)	12 Months Ended
	Dec. 31, 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.
Basis of Presentation	Basis of Presentation 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 (“VIE”) 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 (“HTS Independent Network”) and Hilltop Securities Asset Management, LLC, formerly known as First Southwest Asset Management, LLC. Hilltop Securities is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and 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 Hilltop Securities Asset Management, LLC, a wholly-owned subsidiary of First Southwest Holdings, LLC (“First Southwest”), is a registered investment adviser under the Investment Advisers Act of 1940. From January 1, 2016 to January 22, 2016, Securities Holdings’ subsidiaries also included First Southwest Company, LLC (“FSC”), First Southwest’s principal subsidiary and formerly a broker-dealer registered with the SEC and FINRA and a member of the NYSE. Hilltop also owns 100% of NLC, which operates through its wholly owned subsidiaries, National Lloyds Insurance Company (“NLIC”) and American Summit Insurance Company (“ASIC”). In addition, Hilltop owns 100% of the membership interest in each of HTH Hillcrest Project LLC and Hilltop Investments I, LLC. Hilltop Investments I, LLC owns 50% of the membership interest in HTH Diamond Hillcrest Land LLC which is consolidated under the aforementioned VIE Subsections of the ASC. These entities are related to the Hilltop Plaza investment discussed in detail in Note 17 to the consolidated financial statements and are collectively referred to as the “Hilltop Plaza Entities”. 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. 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. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“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, 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.
Acquisition Accounting	Acquisition Accounting Acquisitions are accounted for under the acquisition method of accounting. Purchased assets, including identifiable intangible assets, and assumed liabilities are recorded at their respective acquisition date fair values. If the fair value of net assets purchased exceeds the consideration given, a bargain purchase gain is recognized. If the consideration given exceeds the fair value of the net assets received, goodwill is recognized.
Securities Purchased Under Agreements to Resell	Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell (reverse repurchase agreements or reverse repos) are treated as collateralized financings and are carried at the amounts at which the securities will subsequently be resold as specified in the agreements. The Company is in possession of collateral with a fair value equal to or in excess of the contract amounts.
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, prepayment risk or other factors related to interest rate and prepayment risk. 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 reflect 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 subsequently 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 cash flows related to these securities, management primarily considers, (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.
Loans Held for Sale	Loans Held for Sale Loans held for sale consist primarily of single-family residential mortgages funded through PrimeLending. These loans are generally on the consolidated balance sheet between 30 and 45 days. Substantially all mortgage loans originated by PrimeLending are sold to various investors in the secondary market, the majority with servicing released. Mortgage loans held for sale are carried at fair value in accordance with the provisions of the Fair Value Option Subsections of the ASC (the “Fair Value Option”). Changes in the fair value of the loans held for sale are recognized in earnings and fees and costs associated with origination are recognized as incurred. The specific identification method is used to determine realized gains and losses on sales of loans, which are reported as net gains (losses) in noninterest income. Loans sold are subject to certain indemnification provisions with investors, including the repurchase of loans sold and repayment of certain sales proceeds to investors under certain conditions. In addition, certain mortgage loans guaranteed by U.S. Government agencies and sold into Government National Mortgage Association (“GNMA”) pools may, under certain conditions specified in the government programs, become subject to repurchase by PrimeLending. When such loans subject to repurchase no longer qualify for sale accounting, they are reported as loans held for sale in the consolidated balance sheets.
Loans Held for Investment	Loans Held for Investment Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal reduced by unearned income, net unamortized deferred fees and an allowance for loan losses. Unearned income on installment loans and interest on other loans is recognized using the effective interest method. Net fees received for providing loan commitments and letters of credit that result in loans are deferred and amortized to interest income over the life of the related loan, beginning with the initial borrowing. Net fees on commitments and letters of credit that are not expected to be funded are amortized to noninterest income over the commitment period. Income on direct financing leases is recognized on a basis that achieves a constant periodic rate of return on the outstanding investment. Impaired loans include non-accrual loans, troubled debt restructurings, purchased credit impaired (“PCI”) loans and partially charged-off loans. The accrual of interest on impaired loans is discontinued when, in management’s opinion, there is a clear indication that the borrower’s cash flow may not be sufficient to meet principal and interest payments, which is generally when a loan is 90 days past due unless the asset is both well secured and in the process of collection. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is charged against income. If the ultimate collectability of principal, wholly or partially, is in doubt, any payment received on a loan on which the accrual of interest has been suspended is applied to reduce principal to the extent necessary to eliminate such doubt. Once the collection of the remaining recorded loan balance is fully expected, interest income is recognized on a cash basis. Management has defined the loans acquired in a business combination as acquired loans. Acquired loans are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan losses. At acquisition, acquired loans are segregated between those considered to be credit impaired and those without credit impairment at acquisition. To make this determination, management considered such factors as past due status, non-accrual status and credit risk ratings. The fair value of acquired performing loans was determined by discounting expected cash flows, both principal and interest, at prevailing market interest rates. The difference between the fair value and principal balances due at acquisition date, the fair value discount, is accreted into income over the estimated life of each loan. Loans acquired in the Federal Deposit Insurance Corporation (“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”) were previously subject to loss-share agreements with the FDIC. At the close of business on September 30, 2018, the loss-share agreements for commercial assets with the FDIC expired, except for certain obligations on the part of the Bank that survived. On October 17, 2018, the Bank and the FDIC entered into a Termination Agreement pursuant to which all rights and obligations of the Bank and the FDIC under the FDIC loss-share agreements were resolved and terminated. Accordingly, loans which were previously referred to as either “covered loans” if covered by the loss-share agreements or otherwise “non-covered loans” are now collectively referred to as “loans held for investment.” PCI loans acquired by the Company are accounted for either on an individual loan basis or in pools. The Company has established under its PCI accounting policy a framework to aggregate certain acquired 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 similar risk characteristics used for the pooling of PCI loans are risk grade and loan collateral type. PCI loans show evidence of credit deterioration that make it probable that not all contractually required principal and interest payments will be collected. Their fair value was initially based on an estimate of cash flows, both principal and interest, expected to be collected, discounted at prevailing market rates of interest. Management estimates cash flows using key assumptions such as default rates, loss severity rates assuming default, prepayment speeds and estimated collateral values. The excess of cash flows expected to be collected from a loan or pool over its estimated fair value at acquisition is referred to as accretable yield and is recognized in interest income using an effective yield method over the remaining life of the loan or pool. The excess of total contractual cash flows over the cash flows expected to be received at acquisition is referred to as the nonaccretable difference. Subsequent to acquisition, management must update these estimates of cash flows expected to be collected at each reporting date. These updates require the continued use of key assumptions and estimates, similar to those used in the initial estimate of fair value. The Bank accretes the discount for PCI loans for which it can predict the timing and amount of cash flows. PCI loans for which a discount is accreted are reported as performing loans.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is a reserve established through a provision for loan losses charged to or recovered from expense, which represents management’s best estimate of probable losses inherent in the existing portfolio of loans at the balance sheet date. The allowance for loan losses includes allowance allocations calculated in accordance with the regulatory Interagency Policy Statement on the Allowance for Loan and Lease Losses and the Receivables and Contingencies Topics of the ASC. The level of the allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions, and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond its control, including the performance of the loan portfolio, the economy and changes in interest rates. The Bank’s allowance for loan losses consists of three elements: (i) specific valuation allowances established for probable losses on individually impaired loans; (ii) general historical valuation allowances calculated based on historical loan loss experience for homogenous loans with similar collateral; and (iii) valuation allowances to adjust general reserves based on current economic conditions and other qualitative risk factors both internal and external to the Bank. The Bank’s methodology regarding the calculation of the allowance for loan losses is discussed in more detail within Note 5 to the consolidated financial statements.
Broker-Dealer and Clearing Organization Transactions	Broker-Dealer and Clearing Organization Transactions Amounts recorded in broker-dealer and clearing organization receivables and payables include securities lending activities, as well as amounts related to securities transactions for either customers of the Hilltop Broker-Dealers or for the accounts of the Hilltop Broker-Dealers. Securities borrowed and securities loaned transactions are generally reported as collateralized financings. Securities borrowed transactions require the Hilltop Broker-Dealers to deposit cash, letters of credit, or other collateral with the lender. With respect to securities loaned, the Hilltop Broker-Dealers receive collateral in the form of cash or other assets in an amount generally in excess of the market value of securities loaned. The Hilltop Broker-Dealers monitor the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. Interest income and interest expense associated with collateralized financings is included in the accompanying consolidated statements of operations.
Insurance Premiums Receivable	Insurance Premiums Receivable Insurance premiums receivable include premiums written and not yet collected. NLC routinely evaluates the receivable balance to determine if an allowance for uncollectible amounts is necessary. At December 31, 2018 and 2017, NLC determined that no valuation allowance was necessary.
Deferred Policy Acquisition Costs	Deferred Policy Acquisition Costs Costs of acquiring insurance vary with, and are primarily related to, the successful acquisition of new and renewal business. These costs primarily consist of commissions, premium taxes and underwriting expenses, and are deferred and amortized over the terms of the policies or reinsurance treaties to which they relate. Proceeds from reinsurance transactions that represent recovery of acquisition costs reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense in proportion to net revenue recognized. Future investment income is considered in determining the recoverability of deferred policy acquisition costs. NLC regularly reviews the categories of acquisition costs that are deferred and assesses the recoverability of this asset. A premium deficiency and a corresponding charge to income is recognized if the sum of the expected loss and LAE, unamortized policy acquisition costs, and maintenance costs exceed related unearned insurance premiums and anticipated investment income. At December 31, 2018 and 2017, there was no premium deficiency.
Reinsurance	Reinsurance In the normal course of business, NLC seeks to reduce the loss that may arise from catastrophes or other events that could cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the reinsured policy. NLC routinely evaluates the receivable balance to determine if any uncollectible balances exist. 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 included in other assets within the consolidated balance sheets. Reinsurance assumed from other companies, including assumed premiums written and earned, and losses and LAE, is accounted for in the same manner as direct insurance written.
Premises and Equipment	Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization computed principally on the straight-line method over the estimated useful lives of the assets, which range between 3 and 40 years. Gains or losses on disposals of premises and equipment are included in results of operations.
Other Real Estate Owned	Other Real Estate Owned Real estate acquired through foreclosure (“OREO”) is included in other assets within the consolidated balance sheets and is carried at management’s estimate of fair value, less estimated cost to sell. Any excess of recorded investment over fair value, less cost to sell, is charged against either the allowance for loan losses or the related PCI pool discount when property is initially transferred to OREO. Subsequent to the initial transfer to OREO, downward valuation adjustments are charged against earnings. Valuation adjustments, revenue and expenses from operations of the properties and resulting gains or losses on sale are included within the consolidated statements of operations in other noninterest income or expense, as appropriate. Prior to the termination of the FDIC loss-share agreements, acquired OREO previously subject to FDIC loss-share agreements was referred to as “covered OREO” and reported separately in the consolidated balance sheets. Covered OREO was reported exclusive of expected reimbursement cash flows from the FDIC. Foreclosed covered loan collateral was transferred into covered OREO at the collateral’s fair value, less selling costs. Covered OREO was initially recorded at its estimated fair value based on similar market comparable valuations, less estimated selling costs. Subsequently, loan collateral transferred to OREO was recorded at its net realizable value. Any subsequent valuation adjustments due to declines in fair value of the covered OREO were charged to noninterest expense, while any recoveries of previous valuation decreases were credited to noninterest expense. Subsequent to the termination of the loss-share agreements, OREO which was previously referred to as “covered OREO” if covered by the loss-share agreements or otherwise “non-covered OREO” is now collectively referred to as OREO.
FDIC Indemnification Asset	FDIC Indemnification Asset As previously discussed, the loss-share agreements with the FDIC entered into in connection with the FNB Transaction were terminated in the fourth quarter of 2018. Subsequent to the termination of the loss-share agreements and the receipt of payment from the FDIC, the remaining balance of the amounts receivable from the FDIC under the loss-share agreements (the “FDIC Indemnification Asset”) was removed from the consolidated balance sheets. The balance of the FDIC Indemnification Asset as of December 31, 2017, is included in other assets within the consolidated balance sheets. Prior to the termination of the loss-share agreements, the Company accounted for the FDIC Indemnification Asset in accordance with the Business Combination Topic of the ASC. The FDIC Indemnification Asset was initially recorded at fair value, based on the discounted value of expected future cash flows under the loss-share agreements. The difference between the present value and the undiscounted cash flows the Bank expected to collect from the FDIC was accreted into noninterest income or amortized into noninterest expense within the consolidated statements of operations over the life of the FDIC Indemnification Asset. The FDIC Indemnification Asset was reviewed quarterly and the accretion rate was adjusted for changes in the timing of cash flows expected to be collected from the FDIC. Cumulative net losses over the life of the loss-share agreements of less than $240.4 million reduced the value of the FDIC Indemnification Asset. Any amortization of changes in value of the FDIC Indemnification Asset was limited to the contractual term of the loss-share agreements. Changes to the FDIC Indemnification Asset were recorded as adjustments to other noninterest income or expense, as appropriate, within the consolidated statements of operations over the life of the loss-share agreements.
Debt Issuance Costs	Debt Issuance Costs The Company capitalizes debt issuance costs associated with financing of debt. These costs are amortized using the effective interest method over the repayment term of the debt. Unamortized debt issuance costs are presented in the consolidated balance sheets as a direct reduction from the associated debt liability. Debt issuance costs of $0.2 million during 2018 and $0.1 million during each of 2017 and 2016 were amortized and included in interest expense within the consolidated statements of operations. In April 2015, debt issuance costs of $1.9 million were capitalized in connection with Hilltop’s issuance of the 5% senior notes due 2025.
Goodwill	Goodwill Goodwill, which represents the excess of cost over the fair value of the net assets acquired, is allocated to reporting units and tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount should be assessed. The Company performs required annual impairment tests of its goodwill as of October 1 st for each of its reporting units, which is one level below an operating segment. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill. The goodwill impairment test requires the Company to make judgments in determining what assumptions to use in the calculation. The process consists of estimating the fair value of each reporting unit based on valuation techniques, including a discounted cash flow model using revenue and profit forecasts and recent industry transaction and trading multiples of peers, and comparing those estimated fair values with the carrying values of the assets and liabilities of the reporting unit, which includes the allocated goodwill. If the estimated fair value is less than the carrying value, the Company is required to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, any loss recognized will not exceed the total amount of goodwill allocated to that reporting unit. Additional information concerning the results of the Company’s impairment test of goodwill is included in Note 9 to the consolidated financial statements.
Intangibles and Other Long-Lived Assets	Intangibles and Other Long-Lived Assets Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. The Company’s intangible assets primarily consist of core deposits, trade names and customer relationships. Intangible assets with definite useful lives are generally amortized on the straight-line method over their estimated lives, although certain intangibles, including core deposits, and customer and agent relationships, are amortized on an accelerated basis. Amortization of intangible assets is recorded in other noninterest expense within the consolidated statements of operations. Intangible assets with indefinite useful lives are tested for impairment on an annual basis as of October 1 st , or more often if events or circumstances indicate there may be impairment, and not amortized until their lives are determined to be definite. Intangible assets with definite useful lives, premises and equipment, and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. Impaired assets are recorded at fair value.
Mortgage Servicing Rights	Mortgage Servicing Rights The Company determines its classes of residential mortgage servicing assets based on the asset type being serviced along with the methods used to manage the risk inherent in the servicing assets, which includes the market inputs used to value the servicing assets. The Company measures its servicing assets at fair value and reports changes in fair value through earnings. The retained mortgage servicing rights (“MSR”) asset is measured at fair value as of the date of sale of the related mortgage loan. Subsequent fair value measurements of the MSR asset are determined by valuing the projected net servicing cash flows, which are then discounted to estimate fair value using a discounted cash flow model. Assumptions used include market discount rates, anticipated prepayment speeds, delinquency and foreclosure rates, and ancillary fee income. The model assumptions and the MSR asset fair value estimates are compared to observable trades of similar portfolios as well as to MSR asset broker valuations and industry surveys, as available. The expected life of the loan can vary from management’s estimates due to prepayments by borrowers, especially when rates fall. Prepayments in excess of management’s estimates would adversely impact the recorded value of the MSR asset. The value of the MSR asset is also dependent upon the discount rate used in the model, which is based on current market rates that are reviewed by management on an ongoing basis. Any increase in the discount rate would reduce the value of the MSR asset.
Derivative Financial Instruments	Derivative Financial Instruments The Company enters into various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. The Company’s derivative financial instruments also include interest rate lock commitments (“IRLCs”) executed with its customers that allow those customers to obtain a mortgage loan on a future date at an agreed-upon interest rate. The IRLCs, forward commitments, interest rate swaps, U.S. Treasury bond futures and options and Eurodollar futures meet the definition of a derivative under the provisions of the Derivatives and Hedging Topic of the ASC. Derivatives are recorded at fair value in the consolidated balance sheets. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as hedges of fair values, the change in the fair value of both the derivative instrument and the hedged item are included in current earnings. Changes in the fair value of derivatives designated as hedges of cash flows are recorded in other comprehensive income (loss). Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the line item where the hedged item’s effect on earnings is recorded.
Revenue from Contracts with Customers	Revenue from Contracts with Customers Certain activities primarily within the Company’s broker-dealer and banking segments are subject to the provisions of ASC 606, Revenue from Contracts with Customers. The Company’s broker-dealer segment has six primary lines of business: (i) public banking, (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.
Reserve for Losses and Loss Adjustment Expenses	Reserve for Losses and Loss Adjustment Expenses The liability for losses and loss adjustment expenses (“LAE”) includes an amount determined from loss reports and individual cases and an amount, based on past experience, for losses incurred but not reported (“IBNR”). Such liabilities are based on estimates and, while management believes that the amount is adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in earnings currently. The liability for losses and LAE has not been reduced for reinsurance recoverable.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense for all share-based awards granted is based on the grant date fair value estimated in accordance with the provisions of the Stock Compensation Topic of the ASC. The Company recognizes these compensation costs for only those awards expected to vest over the service period of the award.
Advertising	Advertising Advertising costs are expensed as incurred. Advertising expense totaled $4.6 million, $4.7 million and $5.3 million during 2018, 2017 and 2016, respectively.
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recorded for the estimated future tax effects of the temporary difference between the tax basis and book basis of assets and liabilities reported in the accompanying consolidated balance sheets. The provision for income tax expense or benefit differs from the amounts of income taxes currently payable because certain items of income and expense included in the consolidated financial statements are recognized in different time periods by taxing authorities. Interest and penalties incurred related to tax matters are charged to other interest expense or other noninterest expense, respectively. The revaluation of deferred tax assets as a result of enacted tax rate changes, such as those found in the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”), is recognized within income tax expense in continuing operations in the period of enactment. Benefits from uncertain tax positions are recognized in the consolidated financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority having full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of cumulative benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold are recognized in the reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold are derecognized in the reporting period in which that threshold is no longer met. If the Company were to prevail on all uncertain tax positions, the effect would be a benefit to the Company’s effective tax rate. Due to uncertainties in any tax audit outcome, estimates of the ultimate settlement of unrecognized tax positions may change and the actual tax benefits may differ significantly from the estimate. Deferred tax assets, including net operating loss and tax credit carry forwards, are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that any portion of these tax attributes will not be realized. Periodic reviews of the carrying amount of deferred tax assets are made when it is more likely than not that all or a portion of a deferred tax asset will not be realized.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash For the purpose of presentation in the consolidated statements of cash flows, cash, cash equivalents and restricted cash are defined as the amounts included in the consolidated balance sheet captions “Cash and due from banks”, “Federal funds sold” and “Assets segregated for regulatory purposes.” Cash equivalents have original maturities of three months or less.
Repurchases of Common Stock	Repurchases of Common Stock In accordance with Maryland law, the Company uses the par value method of accounting for its stock repurchases, whereby the par value of the shares is deducted from common stock. The excess of the cost of shares acquired over the par value is allocated to additional paid-in capital based on an estimated average sales price per issued share with the excess amounts charged to retained earnings.
Basic and Diluted Net Income Per Share	Basic and Diluted Net Income Per 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. Throughout 2018, Hilltop had no instruments outstanding which qualified as participating securities. 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 2018 and 2017, restricted stock units (“RSUs”) were the only potentially dilutive non-participating instruments issued by Hilltop, while during 2016, stock options and RSUs were the only potentially dilutive non-participating instruments. 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.

Acquisition (Tables)

Acquisition (Tables)	12 Months Ended
	Dec. 31, 2018
Acquisition
Summary of fair values of the identifiable assets acquired, and liabilities assumed	The resulting fair values of the identifiable assets acquired and liabilities assumed from BORO at August 1, 2018 are summarized in the following table (in thousands). Cash and due from banks $ 21,756 Securities 60,477 Loans held for investment 326,618 Other assets 25,912 Total identifiable assets acquired 434,763 Deposits 376,393 Short-term borrowings 10,000 Other liabilities 2,996 Total liabilities assumed 389,389 Net identifiable assets acquired 45,374 Goodwill resulting from the acquisition 39,627 Net assets acquired $ 85,001
Schedule of loans acquired in business combination	The following table presents details on acquired loans at the acquisition date (in thousands). Loans, excluding PCI Total Loans Held PCI Loans Loans for Investment Commercial real estate $ 119,188 $ 5,350 $ 124,538 1 - 4 family residential 55,487 39 55,526 Construction and land development 37,134 — 37,134 Commercial and industrial 98,259 2,127 100,386 Consumer 9,021 13 9,034 Total $ 319,089 $ 7,529 $ 326,618
Schedule of PCI Loans at acquisition	The following table presents information about the PCI loans at acquisition (in thousands). Contractually required principal and interest payments $ 10,730 Nonaccretable difference 2,859 Cash flows expected to be collected 7,871 Accretable difference 342 Fair value of loans acquired with a deterioration of credit quality $ 7,529
Schedule of acquired loans without credit impairment	The following table presents information about the acquired loans without credit impairment at acquisition (in thousands). Contractually required principal and interest payments $ 381,551 Contractual cash flows not expected to be collected 15,286 Fair value at acquisition 319,089

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2018 Inputs Inputs Inputs Fair Value Trading securities $ 7,947 $ 737,519 $ — $ 745,466 Available for sale securities — 875,658 — 875,658 Equity securities 19,679 — — 19,679 Loans held for sale — 1,207,311 50,464 1,257,775 Derivative assets — 35,010 — 35,010 MSR asset — — 66,102 66,102 Securities sold, not yet purchased 33,000 48,667 — 81,667 Derivative liabilities — 26,355 — 26,355 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 table includes 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 Year Additions Reductions Net Income Income (Loss) End of Year Year ended December 31, 2018 Loans held for sale $ 36,972 $ 61,573 $ (41,801) $ (6,280) $ — $ 50,464 MSR asset 54,714 25,028 (9,303) (4,337) — 66,102 Total $ 91,686 $ 86,601 $ (51,104) $ (10,617) $ — $ 116,566 Year ended December 31, 2017 Loans held for sale $ 35,801 $ 36,891 $ (26,773) $ (8,947) $ — $ 36,972 MSR asset 61,968 16,401 (17,499) (6,156) — 54,714 Total $ 97,769 $ 53,292 $ (44,272) $ (15,103) $ — $ 91,686 Year ended December 31, 2016 Trading securities $ 1 $ — $ — $ (1) $ — $ — Loans held for sale 25,880 60,999 (39,637) (11,441) — 35,801 MSR asset 52,285 23,381 (7,586) (6,112) — 61,968 Total $ 78,166 $ 84,380 $ (47,223) $ (17,554) $ — $ 97,769
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 December 31, 2018 and 2017, the significant unobservable inputs used in the fair value measurements were as follows. Range (Weighted-Average) December 31, Financial instrument Valuation Technique Unobservable Inputs 2018 2017 Loans held for sale Discounted cash flows / Market comparable Projected price 95 - 96 % ( 95 %) 90 - 95 % ( 95 %) MSR asset Discounted cash flows Constant prepayment rate 10.51 % 10.93 % Discount rate 11.11 % 11.03 %
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). Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 Other Total Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ (8,063) $ — $ (8,063) $ 10,655 $ — $ 10,655 $ (8,275) $ — $ (8,275) MSR asset (4,337) — (4,337) (6,156) — (6,156) (6,112) — (6,112)
Schedule of significant unobservable inputs weighted average rates on Impaired Loans	Estimates for these significant unobservable inputs and the resulting weighted average expected loss on PCI loans were as follows. PCI Loans PlainsCapital FNB SWS BORO December 31, 2018 Merger Transaction Merger Acquisition Weighted average default rate % % % % Weighted average loss severity rate % % % % Weighted average prepayment speed % % % % Resulting weighted average expected loss on PCI loans % % % % PCI Loans PlainsCapital FNB SWS December 31, 2017 Merger Transaction Merger Weighted average default rate % % % Weighted average loss severity rate % % % Weighted average prepayment speed % % % Resulting weighted average expected loss on PCI loans % % %
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 Level 1 Level 2 Level 3 Total Year Ended December 31, December 31, 2018 Inputs Inputs Inputs Fair Value 2018 2017 2016 Impaired loans held for investment $ — $ — $ 76,711 $ 76,711 $ 2,481 $ (2,402) $ 3,643 Other real estate owned — 19,976 — 19,976 (2,757) (4,436) (19,036)
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 December 31, 2018 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 644,473 $ 644,473 $ — $ — $ 644,473 Assets segregated for regulatory purposes 133,993 133,993 — — 133,993 Securities purchased under agreements to resell 61,611 — 61,611 — 61,611 Held to maturity securities 351,012 — 341,124 — 341,124 Loans held for sale 135,471 — 135,471 — 135,471 Loans held for investment, net 6,870,972 — 578,363 6,445,810 7,024,173 Broker-dealer and clearing organization receivables 1,440,287 — 1,440,287 — 1,440,287 Other assets 69,720 — 68,573 1,147 69,720 Financial liabilities: Deposits 8,536,156 — 8,528,947 — 8,528,947 Broker-dealer and clearing organization payables 1,294,925 — 1,294,925 — 1,294,925 Short-term borrowings 1,065,807 — 1,065,807 — 1,065,807 Debt 295,884 — 293,685 — 293,685 Other liabilities 3,482 — 3,482 — 3,482 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 Assets segregated for regulatory purposes 186,578 186,578 — — 186,578 Securities purchased under agreements to resell 186,537 — 186,537 — 186,537 Held to maturity securities 355,849 — 349,939 — 349,939 Loans held for sale 133,753 — 133,754 — 133,754 Loans held for investment, net 6,392,112 — 577,889 6,098,254 6,676,143 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). Year ended December 31, 2018 Balance, beginning of year $ 22,946 Additional investments 8,643 Upward adjustments 3,663 Impairments and downward adjustments (4,083) Dispositions (10,793) Balance, end of year $ 20,376

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2018
Securities
Summary of trading securities	The fair value of trading securities are summarized as follows (in thousands). December 31, 2018 2017 U.S. Treasury securities $ 7,945 $ — U.S. government agencies: Bonds 1,494 52,078 Residential mortgage-backed securities 309,455 372,817 Commercial mortgage-backed securities 4,239 6,125 Collateralized mortgage obligations 206,813 5,122 Corporate debt securities 59,293 96,182 States and political subdivisions 126,748 170,413 Unit investment trusts 19,913 22,612 Private-label securitized product 5,680 1,631 Other 3,886 3,705 Totals $ 745,466 $ 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 December 31, 2018 Cost Gains Losses Fair Value U.S. Treasury securities $ 11,552 $ 30 $ (44) $ 11,538 U.S. government agencies: Bonds 85,492 552 (433) 85,611 Residential mortgage-backed securities 391,428 608 (6,962) 385,074 Commercial mortgage-backed securities 11,703 189 (120) 11,772 Collateralized mortgage obligations 281,450 385 (5,436) 276,399 Corporate debt securities 53,614 268 (580) 53,302 States and political subdivisions 51,560 608 (206) 51,962 Totals $ 886,799 $ 2,640 $ (13,781) $ 875,658 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 December 31, 2018 Cost Gains Losses Fair Value U.S. Treasury securities $ 9,903 $ 3 $ — $ 9,906 U.S. government agencies: Bonds $ 39,018 $ — $ (1,479) $ 37,539 Residential mortgage-backed securities 21,903 — (263) 21,640 Commercial mortgage-backed securities 87,065 271 (1,462) 85,874 Collateralized mortgage obligations 142,474 — (5,000) 137,474 States and political subdivisions 50,649 91 (2,049) 48,691 Totals $ 351,012 $ 365 $ (10,253) $ 341,124 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). December 31, 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 1 $ 981 $ 6 6 $ 15,449 $ 69 Unrealized loss for twelve months or longer 3 3,556 39 1 4,150 34 4 4,537 45 7 19,599 103 U.S. government agencies: Bonds: Unrealized loss for less than twelve months 3 24,772 5 10 83,476 366 Unrealized loss for twelve months or longer 3 30,472 428 — — — 6 55,244 433 10 83,476 366 Residential mortgage-backed securities: Unrealized loss for less than twelve months 8 66,791 432 15 121,968 820 Unrealized loss for twelve months or longer 27 194,228 6,530 11 93,358 2,920 35 261,019 6,962 26 215,326 3,740 Commercial mortgage-backed securities: Unrealized loss for less than twelve months — — — 1 5,048 48 Unrealized loss for twelve months or longer 1 4,953 120 — — — 1 4,953 120 1 5,048 48 Collateralized mortgage obligations: Unrealized loss for less than twelve months 11 44,394 498 16 90,886 819 Unrealized loss for twelve months or longer 28 140,483 4,938 17 80,492 3,323 39 184,877 5,436 33 171,378 4,142 Corporate debt securities: Unrealized loss for less than twelve months 8 16,256 282 1 5,073 25 Unrealized loss for twelve months or longer 8 15,665 297 — — — 16 31,921 579 1 5,073 25 States and political subdivisions: Unrealized loss for less than twelve months 29 8,590 27 9 6,981 97 Unrealized loss for twelve months or longer 18 9,029 179 9 2,876 18 47 17,619 206 18 9,857 115 Total available for sale: Unrealized loss for less than twelve months 60 161,784 1,250 58 328,881 2,244 Unrealized loss for twelve months or longer 88 398,385 12,531 38 180,876 6,295 148 $ 560,169 $ 13,781 96 $ 509,757 $ 8,539
Schedule of held-to-maturity and equity securities continuous unrealized loss position	December 31, 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 $ 5,950 $ 50 Unrealized loss for twelve months or longer 4 37,539 1,479 3 31,877 1,138 4 37,539 1,479 4 37,827 1,188 Residential mortgage-backed securities: Unrealized loss for less than twelve months 1 8,411 89 — — — Unrealized loss for twelve months or longer 3 13,229 174 — — — 4 21,640 263 — — — Commercial mortgage-backed securities: Unrealized loss for less than twelve months 1 4,973 27 7 39,396 271 Unrealized loss for twelve months or longer 13 59,670 1,435 2 12,659 464 14 64,643 1,462 9 52,055 735 Collateralized mortgage obligations: Unrealized loss for less than twelve months 1 2,051 26 10 37,064 264 Unrealized loss for twelve months or longer 24 135,423 4,974 12 128,270 3,705 25 137,474 5,000 22 165,334 3,969 States and political subdivisions: Unrealized loss for less than twelve months 9 6,431 56 22 11,079 71 Unrealized loss for twelve months or longer 86 32,909 1,993 46 18,598 688 95 39,340 2,049 68 29,677 759 Total held to maturity: Unrealized loss for less than twelve months 12 21,866 198 40 93,489 656 Unrealized loss for twelve months or longer 130 278,770 10,055 63 191,404 5,995 142 $ 300,636 $ 10,253 103 $ 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 available for sale equity securities, at December 31, 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 $ 50,468 $ 50,354 $ 11,301 $ 11,305 Due after one year through five years 96,689 96,799 25,732 24,842 Due after five years through ten years 32,435 32,239 4,908 4,786 Due after ten years 22,626 23,021 57,629 55,203 202,218 202,413 99,570 96,136 Residential mortgage-backed securities 391,428 385,074 21,903 21,640 Collateralized mortgage obligations 281,450 276,399 142,474 137,474 Commercial mortgage-backed securities 11,703 11,772 87,065 85,874 $ 886,799 $ 875,658 $ 351,012 $ 341,124

Loans Held for Investment and_2

Loans Held for Investment and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2018
Loans Held for Investment and Allowance for Loan Losses
Summary of non-covered loans by portfolio segment	Loans held for investment summarized by portfolio segment are as follows (in thousands). December 31, 2018 2017 Commercial real estate $ 2,940,120 $ 2,582,167 Commercial and industrial 1,508,451 1,351,418 Construction and land development 932,909 962,605 1-4 family residential 679,263 429,357 Mortgage warehouse 243,806 329,787 Consumer 47,546 40,446 Broker-dealer (1) 578,363 577,889 Covered — 182,129 6,930,458 6,455,798 Allowance for loan losses (59,486) (63,686) Total loans held for investment, net of allowance $ 6,870,972 $ 6,392,112 (1) Primarily represents margin loans to customers and correspondents associated with 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 PCI loans (in thousands). December 31, 2018 2017 Carrying amount $ 93,072 $ 124,317 Outstanding balance 172,808 230,083
Schedule of changes in the accretable yield for the PCI loans	Changes in the accretable yield for PCI loans were as follows (in thousands). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 98,846 $ 156,847 $ 194,463 Additions 340 — — Reclassifications from nonaccretable difference, net (1) 26,166 12,946 47,407 Disposals of loans (1,226) (1,663) — Accretion (43,433) (69,284) (84,536) Transfer of loans to OREO (2) — — (487) Balance, end of year $ 80,693 $ 98,846 $ 156,847 (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. (2) Transfer of loans to 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	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 December 31, 2018 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial real estate: Non-owner occupied $ 42,668 $ 5,549 $ 7,540 $ 13,089 $ 1,125 Owner occupied 36,246 11,657 2,967 14,624 304 Commercial and industrial 27,403 5,491 1,068 6,559 72 Construction and land development 10,992 74 390 464 92 1-4 family residential 106,503 646 57,681 58,327 1,299 Mortgage warehouse — — — — — Consumer 2,185 9 — 9 — Broker-dealer — — — — — 225,997 23,426 69,646 93,072 2,892 Non-PCI Commercial real estate: Non-owner occupied — — — — — Owner occupied 5,231 4,098 — 4,098 — Commercial and industrial 22,277 9,891 1,740 11,631 721 Construction and land development 3,430 2,711 535 3,246 31 1-4 family residential 8,695 6,922 — 6,922 — Mortgage warehouse — — — — — Consumer 149 42 — 42 — Broker-dealer — — — — — 39,782 23,664 2,275 25,939 752 $ 265,779 $ 47,090 $ 71,921 $ 119,011 $ 3,644 Unpaid Recorded Recorded Total Contractual Investment with Investment with Recorded Related December 31, 2017 Principal Balance No Allowance Allowance Investment Allowance PCI Commercial real estate: Non-owner occupied $ 20,155 $ 7,770 $ 8,207 $ 15,977 $ 722 Owner occupied 20,042 3,067 6,115 9,182 670 Commercial and industrial 19,752 3,610 2,489 89 Construction and land development 2,001 428 1,010 1,438 215 1-4 family residential 7,001 2,053 2,328 4,381 324 Mortgage warehouse — — — — — Consumer 2,377 12 115 127 18 Broker-dealer — — — — — Covered 226,889 2,641 84,472 87,113 2,697 298,217 19,581 104,736 124,317 4,735 Non-PCI Commercial real estate: Non-owner occupied — — — — — Owner occupied 15,504 10,934 3,686 14,620 932 Commercial and industrial 24,427 15,924 2,072 17,996 365 Construction and land development 668 — 611 611 93 1-4 family residential 1,596 1,177 — 1,177 — Mortgage warehouse — — — — — Consumer 162 56 — 56 — Broker-dealer — — — — — Covered 6,341 5,382 — 5,382 — 48,698 33,473 6,369 39,842 1,390 $ 346,915 $ 53,054 $ 111,105 $ 164,159 $ 6,125
Summary of average investment in impaired loans by class	Average investment in impaired loans is summarized by class in the following table (in thousands). Year Ended December 31, 2018 2017 2016 Commercial real estate: Non-owner occupied $ 14,533 $ 16,623 $ 19,871 Owner occupied 21,262 25,307 25,754 Commercial and industrial 21,143 19,189 20,216 Construction and land development 2,880 3,136 4,744 1-4 family residential 35,404 5,797 6,474 Mortgage warehouse — — — Consumer 117 361 659 Broker-dealer — — — Covered 46,248 $ 141,587 $ $
Summary of non-accrual loans by class	Non-accrual loans, excluding those classified as held for sale, are summarized by class in the following table (in thousands). December 31, December 31, 2018 2017 Commercial real estate: Non-owner occupied $ 1,226 $ — Owner occupied 4,098 14,620 Commercial and industrial 14,870 20,878 Construction and land development 3,278 611 1-4 family residential 7,026 1,614 Mortgage warehouse — — Consumer 41 56 Broker-dealer — — Covered — 5,104 $ 30,539 $ 42,883
Schedule of information regarding TDRs granted	There were no TDRs granted during 2018. Information regarding TDRs granted during 2017 and 2016 is shown in the following table (in thousands). At December 31, 2018 and 2017, the Bank had nominal unadvanced commitments to borrowers whose loans have been restructured in TDRs. Year Ended December 31, 2017 Year Ended December 31, 2016 Number of Balance at Balance at Number of Balance at Balance at Loans Extension End of Period Loans Extension End of Period Commercial real estate: Non-owner occupied — $ — $ — — $ — $ — Owner occupied 2 4,775 4,629 — — — Commercial and industrial 1 1,357 1,186 1 1,196 944 Construction and land development 1 655 611 — — — 1-4 family residential — — — — — — Mortgage warehouse — — — — — — Consumer — — — — — — Broker-dealer — — — — — — Covered — — — — — — 4 $ 6,787 $ 6,426 1 $ 1,196 $ 944 All of the loan modifications included in the table above involved payment term extensions. The Bank did not grant principal reductions on any restructured loans during 2018, 2017 or 2016. There were no TDRs granted during the twelve months preceding December 31, 2018, for which a payment was at least 30 days past due. The following table presents information regarding TDRs granted during the twelve months preceding December 31, 2017, for which a payment was at least 30 days past due (dollars in thousands). Twelve Months Preceding December 31, 2017 Number of Balance at Balance at Loans Extension End of Period Commercial real estate: Non-owner occupied — $ — $ — Owner occupied 1 1,481 1,352 Commercial and industrial — — — Construction and land development 1 655 611 1-4 family residential — — — Mortgage warehouse — — — Consumer — — — Broker-dealer — — — Covered — — — 2 $ 2,136 $ 1,963
Schedule of analysis of the aging of the entity's loan portfolio	An analysis of the aging of the Company’s 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 December 31, 2018 30-59 Days 60-89 Days 90 Days or More Past Due Loans Loans Loans Loans 90 Days or More Commercial real estate: Non-owner occupied $ 1,174 $ 199 $ — $ 1,373 $ 1,708,160 $ 13,089 $ 1,722,622 $ — Owner occupied 1,364 — 4,173 5,537 1,197,337 14,624 1,217,498 75 Commercial and industrial 1,792 1,049 11,051 13,892 1,488,000 6,559 1,508,451 3 Construction and land development 3,549 — — 3,549 928,896 464 932,909 — 1-4 family residential 5,987 2,484 1,950 10,421 610,515 58,327 679,263 — Mortgage warehouse — — — — 243,806 — 243,806 — Consumer 254 147 — 401 47,136 9 47,546 — Broker-dealer — — — — 578,363 — 578,363 — $ 14,120 $ 3,879 $ 17,174 $ 35,173 $ 6,802,213 $ 93,072 $ 6,930,458 $ 78 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 real estate: Non-owner occupied $ — $ — $ — $ — $ 1,473,942 $ 15,977 $ 1,489,919 $ — Owner occupied 442 — 2,195 2,637 1,080,429 9,182 1,092,248 — Commercial and industrial 2,702 312 5,714 1,336,591 6,099 1,351,418 640 Construction and land development 1,685 101 — 1,786 959,381 1,438 962,605 — 1-4 family residential 1,490 1,290 418 3,198 421,778 4,381 429,357 — Mortgage warehouse — — — 329,787 — 329,787 — Consumer 194 20 — 214 40,105 127 40,446 — Broker-dealer — — — — 577,889 — 577,889 — Covered 5,871 1,324 3,226 10,421 84,595 87,113 182,129 283 $ 12,384 $ 3,047 $ 11,553 $ 26,984 $ 6,304,497 $ 124,317 $ 6,455,798 $ 923
Schedule of internal risk grades of loans by class	The following tables present the internal risk grades of loans, as previously described, in the portfolio by class (in thousands). December 31, 2018 Pass Special Mention Substandard PCI Total Commercial real estate: Non-owner occupied $ 1,673,424 $ — $ 36,109 $ 13,089 $ 1,722,622 Owner occupied 1,175,225 2,083 25,566 14,624 1,217,498 Commercial and industrial 1,433,227 15,320 53,345 6,559 1,508,451 Construction and land development 929,130 — 3,315 464 932,909 1-4 family residential 601,264 393 19,279 58,327 679,263 Mortgage warehouse 243,806 — — — 243,806 Consumer 47,416 — 121 9 47,546 Broker-dealer 578,363 — — — 578,363 $ 6,681,855 $ 17,796 $ 137,735 $ 93,072 $ 6,930,458 December 31, 2017 Pass Special Mention Substandard PCI Total Commercial real estate: Non-owner occupied $ 1,460,758 $ 6,408 $ 6,776 $ 15,977 $ 1,489,919 Owner occupied 1,030,611 1,239 51,216 9,182 1,092,248 Commercial and industrial 1,275,489 17,354 52,476 6,099 1,351,418 Construction and land development 958,157 2,259 751 1,438 962,605 1-4 family residential 419,317 — 5,659 4,381 429,357 Mortgage warehouse 329,787 — — — 329,787 Consumer 40,211 — 108 127 40,446 Broker-dealer 577,889 — — — 577,889 Covered 81,583 356 13,077 87,113 182,129 $ 6,173,802 $ 27,616 $ 130,063 $ 124,317 $ 6,455,798
Schedule of changes in the allowance for loan losses by portfolio segment	Changes in the allowance for loan losses, distributed by portfolio segment, are shown below (in thousands). Balance, Provision (recovery) Loans Recoveries on Balance, Year Ended December 31, 2018 beginning of year for loan losses charged off charged of loans end of year Commercial real estate $ 27,232 $ 668 $ (800) $ — $ 27,100 Commercial and industrial 23,698 6,750 (12,741) 4,273 21,980 Construction and land development 7,847 (1,792) — 6 6,061 1-4 family residential 4,245 (292) (143) 146 3,956 Mortgage warehouse — — — — — Consumer 311 (15) (93) 64 267 Broker-dealer 353 (231) — — 122 Total $ 63,686 $ 5,088 $ (13,777) $ 4,489 $ 59,486 Balance, Provision (recovery) Loans Recoveries on Balance, Year Ended December 31, 2017 beginning of year for loan losses charged off charged of loans end of year Commercial real estate $ 22,262 $ 4,320 $ (193) $ 24 $ 26,413 Commercial and industrial 21,369 6,725 (6,253) 1,833 23,674 Construction and land development 7,002 848 (13) 7 7,844 1-4 family residential 2,974 (701) (112) 201 2,362 Mortgage warehouse — — — — — Consumer 424 16 (208) 79 311 Broker-dealer 155 198 — — 353 Covered 413 2,865 (571) 22 2,729 Total $ 54,599 $ 14,271 $ (7,350) $ 2,166 $ 63,686 Balance, Provision (recovery) Loans Recoveries on Balance, Year Ended December 31, 2016 beginning of year for loan losses charged off charged of loans end of year Commercial real estate $ 15,669 $ 7,785 $ (1,243) $ 51 $ 22,262 Commercial and industrial 19,845 33,369 (33,776) 1,931 21,369 Construction and land development 6,064 938 — — 7,002 1-4 family residential 3,314 (488) (196) 344 2,974 Mortgage warehouse — — — — — Consumer 314 190 (203) 123 424 Broker-dealer 209 (53) (1) — 155 Covered 1,532 (1,121) (119) 121 413 Total $ 46,947 $ 40,620 $ (35,538) $ 2,570 $ 54,599
Schedule of loan portfolio distributed by portfolio segment and impairment methodology	The loan portfolio was distributed by portfolio segment and impairment methodology as shown below (in thousands). Loans individually Loans collectively evaluated for evaluated for PCI December 31, 2018 impairment impairment loans Total Commercial real estate $ 3,909 $ 2,908,498 $ 27,713 $ 2,940,120 Commercial and industrial 10,741 1,491,151 6,559 1,508,451 Construction and land development 3,241 929,204 464 932,909 1-4 family residential — 620,936 58,327 679,263 Mortgage warehouse — 243,806 — 243,806 Consumer — 47,537 9 47,546 Broker-dealer — 578,363 — 578,363 Total $ 17,891 $ 6,819,495 $ 93,072 $ 6,930,458 Loans individually Loans collectively evaluated for evaluated for PCI December 31, 2017 impairment impairment loans Total Commercial real estate $ 13,782 $ 2,543,226 $ 25,159 $ 2,582,167 Commercial and industrial 16,819 1,328,500 6,099 1,351,418 Construction and land development 611 960,556 1,438 962,605 1-4 family residential — 424,976 4,381 429,357 Mortgage warehouse — 329,787 — 329,787 Consumer — 40,319 127 40,446 Broker-dealer — 577,889 — 577,889 Covered — 95,016 87,113 182,129 Total $ 31,212 $ 6,300,269 $ 124,317 $ 6,455,798
Schedule of allowance for loan losses distributed by portfolio segment and impairment methodology	The allowance for loan losses was distributed by portfolio segment and impairment methodology as shown below (in thousands). Loans individually Loans collectively evaluated for evaluated for PCI December 31, 2018 impairment impairment loans Total Commercial real estate $ — $ 25,671 $ 1,429 $ 27,100 Commercial and industrial 721 21,187 72 21,980 Construction and land development 31 5,938 92 6,061 1-4 family residential — 2,657 1,299 3,956 Mortgage warehouse — — — — Consumer — 267 — 267 Broker-dealer — 122 — 122 Total $ 752 $ 55,842 $ 2,892 $ 59,486 Loans individually Loans collectively evaluated for evaluated for PCI December 31, 2017 impairment impairment loans Total Commercial real estate $ 932 $ 24,089 $ 1,392 $ 26,413 Commercial and industrial 365 23,220 89 23,674 Construction and land development 93 7,536 215 7,844 1-4 family residential — 2,038 324 2,362 Mortgage warehouse — — — — Consumer — 293 18 311 Broker-dealer — 353 — 353 Covered — 32 2,697 2,729 Total $ 1,390 $ 57,561 $ 4,735 $ 63,686

Covered Assets and Indemnific_2

Covered Assets and Indemnification Asset (Tables)	12 Months Ended
	Dec. 31, 2018
Covered Assets and Indemnification Asset
Summary of the activity in covered OREO	A summary of the activity in OREO previously covered by the FDIC loss-share agreements is as follows (in thousands) (1) . Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 36,744 $ 51,642 $ 99,090 Additions to covered OREO 5,284 6,700 13,876 Dispositions of covered OREO (10,145) (17,866) (42,843) Valuation adjustments in the period (2,027) (3,732) (18,481) Transfer to other assets as a result of loss-share termination (29,856) — — Balance, end of year $ — $ 36,744 $ 51,642
Summary of the activity in the FDIC Indemnification Asset	A summary of the activity in the FDIC Indemnification Asset is as follows (in thousands). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 29,340 $ 71,313 $ 91,648 FDIC Indemnification Asset accretion (amortization) (6,509) (17,083) 242 Transfers to due from FDIC and other — (24,890) (20,577) FDIC loss-share termination (22,831) — — Balance, end of year $ — $ 29,340 $ 71,313

Cash and Due from Banks (Tables

Cash and Due from Banks (Tables)	12 Months Ended
	Dec. 31, 2018
Cash and Due from Banks
Schedule of cash and due from banks	Cash and due from banks consisted of the following (in thousands). December 31, 2018 2017 Cash on hand $ 47,621 $ 44,765 Clearings and collection items 83,949 92,271 Deposits at Federal Reserve Bank 425,770 248,442 Deposits at Federal Home Loan Bank 1,595 1,501 Deposits in FDIC-insured institutions 85,138 99,998 $ 644,073 $ 486,977

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Premises and Equipment
Summary of the components of premises and equipment	The components of premises and equipment are summarized as follows (in thousands). December 31, 2018 2017 Land and premises $ 147,783 $ 111,203 Furniture and equipment 259,082 207,552 406,865 318,755 Less accumulated depreciation and amortization (169,492) (141,178) $ 237,373 $ 177,577

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill and Other Intangible Assets
Schedule of carrying value of intangible assets subject to amortization	The carrying value of intangible assets subject to amortization was as follows (in thousands). Estimated Gross Net Useful Life Intangible Accumulated Intangible December 31, 2018 (Years) Assets Amortization Assets Core deposits 4 - 12 $ 48,930 $ (31,062) $ 17,868 Trademarks and trade names 15 - 20 20,000 (8,844) 11,156 Noncompete agreements 4 - 6 11,650 (11,650) — Customer contracts and relationships 12 - 14 21,400 (15,465) 5,935 Agent relationships 13 3,600 (3,554) 46 $ 105,580 $ (70,575) $ 35,005 Estimated Gross Net Useful Life Intangible Accumulated Intangible December 31, 2017 (Years) Assets Amortization Assets Core deposits 4 - 12 $ 38,930 $ (26,381) $ 12,549 Trademarks and trade names 15 - 20 20,000 (7,860) 12,140 Noncompete agreements 4 - 6 11,650 (10,529) 1,121 Customer contracts and relationships 12 - 14 21,400 (13,906) 7,494 Agent relationships 13 3,600 (3,472) 128 $ 95,580 $ (62,148) $ 33,432
Schedule of estimated aggregate future amortization expense for intangible assets	The estimated aggregate future amortization expense for intangible assets at December 31, 2018 is as follows (in thousands). 2019 $ 7,851 2020 6,539 2021 5,313 2022 3,987 2023 2,860 Thereafter 8,455 $ 35,005

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	12 Months Ended
	Dec. 31, 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). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 54,714 $ 61,968 $ 52,285 Additions 25,028 16,401 23,381 Sales (9,303) (17,499) (7,586) Changes in fair value: Due to changes in model inputs or assumptions (1) 159 (1,722) (153) Due to customer payoffs (4,496) (4,434) (5,959) Balance, end of year $ 66,102 $ 54,714 $ 61,968 December 31, 2018 2017 Mortgage loans serviced for others $ 5,086,461 $ 4,762,042 MSR asset as a percentage of serviced mortgage loans 1.30 % 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	December 31, 2018 2017 Weighted average constant prepayment rate 10.51 % 10.93 % Weighted average discount rate 11.11 % 11.03 % Weighted average life (in years) 7.1 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). December 31, 2018 2017 Constant prepayment rate: Impact of 10% adverse change $ (2,512) $ (1,948) Impact of 20% adverse change (4,980) (3,839) Discount rate: Impact of 10% adverse change (2,677) (2,135) Impact of 20% adverse change (5,139) (4,103)

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2018
Deposits
Summary of deposits	Deposits are summarized as follows (in thousands). December 31, 2018 2017 Noninterest-bearing demand $ 2,560,750 $ 2,411,849 Interest-bearing: NOW accounts 1,358,196 1,202,752 Money market 2,725,541 2,222,555 Brokered - money market 5,000 101,624 Demand 393,685 411,771 Savings 184,700 218,812 Time 1,308,284 1,313,482 Brokered - time — 95,274 $ 8,536,156 $ 7,978,119
Summary of scheduled maturities of interest-bearing time deposits	Scheduled maturities of interest-bearing time deposits at December 31, 2018 are as follows (in thousands). 2019 $ 991,402 2020 237,452 2021 21,269 2022 13,327 2023 and thereafter 44,834 $ 1,308,284

Short-term Borrowings (Tables)

Short-term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2018
Short-term borrowings
Schedule of short-term borrowings	Short-term borrowings are summarized as follows (in thousands). December 31, 2018 2017 Federal funds purchased $ 100,100 $ 101,775 Securities sold under agreements to repurchase 576,707 539,149 Federal Home Loan Bank 200,000 250,000 Short-term bank loans 189,000 315,500 $ 1,065,807 $ 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). Year Ended December 31, 2018 2017 2016 Average balance during the year $ 701,622 $ 588,847 $ 368,012 Average interest rate during the year 1.96 % 1.06 % 0.58 % Maximum month-end balance during the year 849,568 904,704 520,715 December 31, 2018 2017 Average interest rate at end of year 2.43 % 1.21 % Securities underlying the agreements at end of year: Carrying value $ 587,609 $ 581,636 Estimated fair value $ 618,231 $ 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). Year Ended December 31, 2018 2017 2016 Average balance during the period $ 214,110 $ 390,616 $ 361,475 Average interest rate during the period 2.09 % 1.08 % 0.46 % Maximum month-end balance during the year $ 675,000 $ 850,000 $ 1,000,000 December 31, 2018 2017 Average interest rate at end of period % %

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2018
Notes Payable
Schedule of notes payable	Notes payable consisted of the following (in thousands). December 31, 2018 2017 Senior Notes due April 2025, net of discount of $1,393 and $1,545, respectively $ 148,607 $ 148,455 FHLB notes, net of premium of $222 and $436, respectively, with maturities ranging from September 2020 to June 2030 and interest payable monthly 4,391 19,402 NLIC note payable due May 2033, three-month LIBOR plus 4.10% (6.89% at December 31, 2018) with interest payable quarterly 10,000 10,000 NLIC note payable due September 2033, three-month LIBOR plus 4.05% (6.84% at December 31, 2018) with interest payable quarterly 10,000 10,000 ASIC note payable due April 2034, three-month LIBOR plus 4.05% (6.84% at December 31, 2018) with interest payable quarterly 7,500 7,500 Insurance company line of credit due December 30, 2019, 3.25% plus a calculated index rate (4.220% at December 31, 2018) with interest payable quarterly — 1,000 Ventures Management lines of credit due March 2019 48,374 12,452 $ 228,872 $ 208,809
Scheduled maturities of notes payable	Scheduled maturities for notes payable outstanding at December 31, 2018 are as follows (in thousands). 2019 $ 48,374 2020 2,389 2021 462 2022 157 2023 — Thereafter 178,661 $ 230,043

Junior Subordinated Debenture_2

Junior Subordinated Debentures and Trust Preferred Securities (Tables)	12 Months Ended
	Dec. 31, 2018
Junior Subordinated Debentures and Trust Preferred Securities
Schedule of information regarding the PlainsCapital Debentures	Information regarding the PCC Debentures is shown in the following table (in thousands). Investor Issue Date Amount PCC Statutory Trust I July 31, 2001 $ 18,042 PCC Statutory Trust II March 26, 2003 $ 18,042 PCC Statutory Trust III September 17, 2003 $ 15,464 PCC Statutory Trust IV February 22, 2008 $ 15,464

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes
Schedule of components of the provision for income tax provision (benefit)	The significant components of the income tax provision are as follows (in thousands). Year Ended December 31, 2018 2017 2016 Current: Federal $ 19,504 $ 63,769 $ 82,970 State 2,349 $ 5,440 $ 10,181 21,853 69,209 93,151 Deferred: Federal 11,352 $ 40,176 $ (6,732) State 1,845 $ 757 $ (2,958) 13,197 40,933 (9,690) $ 35,050 $ 110,142 $ 83,461
Schedule of reconciliation of the income tax provision (benefit) and the amount that would be computed by applying the statutory Federal income tax rate to income (loss) before income taxes	The income tax provision differs from the amount that would be computed by applying the statutory Federal income tax rate to income before income taxes as a result of the following (in thousands). The applicable corporate federal income tax rates were 21% for 2018 and 35% for 2017 and 2016. Year Ended December 31, 2018 2017 2016 Computed tax at federal statutory rate $ 33,763 $ 85,150 $ 80,992 Tax effect of: Tax Legislation — 28,363 — Non-taxable acquisition adjustment 263 (6,682) — Nondeductible transaction costs 86 774 2,608 Nondeductible expenses 2,864 3,089 3,301 State income taxes 3,313 4,028 4,708 Tax-exempt income, net (1,432) (2,758) (2,850) Valuation allowance — — (2,094) Minority interest (900) (210) (718) Share-based compensation benefit (273) (412) (2,391) Prior year return to provision adjustment (1,682) (943) 251 Other (952) (257) (346) $ 35,050 $ $ 83,461
Schedule of components of the tax effects of temporary differences that give rise to the net deferred tax asset	The components of the tax effects of temporary differences that give rise to the net deferred tax asset included in other assets within the consolidated balance sheets are as follows (in thousands). December 31, 2018 2017 Deferred tax assets: Net operating and built-in loss carryforward $ 9,656 $ 11,697 Purchase accounting adjustment - loans 19,673 24,883 Allowance for loan losses 14,137 15,105 Compensation and benefits 14,865 15,860 Legal and other reserves 3,483 4,359 Foreclosed property 3,974 5,859 Other 15,142 11,961 80,930 89,724 Deferred tax liabilities: Premises and equipment 12,344 10,288 FDIC Indemnification Asset — 2,960 Intangible assets 9,326 8,994 Derivatives 4,169 4,527 Loan servicing 15,761 13,184 Other 7,074 8,157 48,674 48,110 Net deferred tax asset $ 32,256 $ 41,614
Schedule of changes in gross unrecognized tax benefits, which excludes interest and penalties	The aggregate changes in gross unrecognized tax benefits, which excludes interest and penalties, are as follows (in thousands). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 1,574 $ 1,704 $ 644 Increases related to tax positions taken during a prior year 770 476 844 Decreases related to tax positions taken during a prior year — (1,273) — Increases related to tax positions taken during the current year 712 667 216 Balance, end of year $ 3,056 $ 1,574 $ 1,704

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 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 Year Ended December 31, 2018 2017 2016 Balance, beginning of period $ 33,702 $ 40,669 $ 57,298 Claims made 22,156 42,330 21,410 Claims resolved with no payment (13,169) (37,439) (19,696) Repurchases (8,250) (6,490) (4,164) Indemnification payments (655) (5,368) (14,179) Balance, end of period $ 33,784 $ 33,702 $ 40,669 Indemnification Liability Reserve Activity Year Ended December 31, 2018 2017 2016 Balance, beginning of period $ 23,472 $ 18,239 $ 16,640 Additions for new sales 3,170 3,962 4,638 Repurchases (612) (466) (392) Early payment defaults (368) (228) (241) Indemnification payments (13,687) (713) (2,482) Change in reserves for loans sold in prior years (1,274) 2,678 76 Balance, end of period $ 10,701 $ 23,472 $ 18,239 December 31, 2018 2017 Reserve for Indemnification Liability (1) : Specific claims $ 676 $ 646 Incurred but not reported claims 10,025 22,826 Total $ 10,701 $ 23,472 (1) As a result of the DOJ and HUD agreements discussed above, at December 31, 2018, the change in the Reserve for Indemnification Liability reflects the total of $13.5 million of payments made to the DOJ and HUD to resolve the specific claims related to this matter. These claims were included in incurred but not reported claims in prior periods.
Schedule of future minimum lease payments under non-cancelable operating and capital leases	Future minimum lease payments under lease agreements that had commenced as of December 31, 2018, excluding intercompany leases and subleases which are eliminated in consolidation, are presented below (in thousands). Operating Leases Capital Leases 2019 $ 36,171 $ 1,186 2020 29,109 1,197 2021 21,058 1,212 2022 16,386 1,241 2023 12,361 1,280 Thereafter 18,264 3,460 Total minimum lease payments $ 133,349 9,576 Amount representing interest (1,221) Present value of minimum lease payments $ 8,355

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2018
Stock-Based Compensation
Schedule of nonvested RSU activity	The following table summarizes information about Restricted Stock Award and RSU activity for the noted periods (shares in thousands). Restricted Stock Awards RSUs Weighted Weighted Average Average Grant Date Grant Date Outstanding Fair Value Outstanding Fair Value Balance, December 31, 2015 453 $ 13.50 875 $ 21.22 Granted - $ - 598 $ 17.78 Vested/Released (447) $ 13.41 (7) $ 22.22 Forfeited (2) $ 19.72 (10) $ 20.70 Balance, December 31, 2016 4 $ 19.95 1,456 $ 19.83 Granted - $ - 450 $ 26.37 Vested/Released (4) $ 19.95 (451) $ 22.48 Forfeited - $ - (137) $ 22.41 Balance, December 31, 2017 - $ - 1,318 $ 20.89 Granted - $ - 510 $ 24.00 Vested/Released - $ - (406) $ 19.92 Forfeited - $ - (152) $ 20.97 Balance, December 31, 2018 - $ - 1,270 $ 22.44

Regulatory Matters (Tables)

Regulatory Matters (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2018 Tier 1 capital (to average assets): PlainsCapital $ 1,183,447 12.47 % 4.0 % 4.0 % 5.0 % Hilltop 1,680,364 12.53 % 4.0 % 4.0 % N/A Common equity Tier 1 capital (to risk-weighted assets): PlainsCapital 1,183,447 13.90 % 6.375 % 7.0 % 6.5 % Hilltop 1,634,978 16.58 % 6.375 % 7.0 % N/A Tier 1 capital (to risk-weighted assets): PlainsCapital 1,183,447 13.90 % 7.875 % 8.5 % 8.0 % Hilltop 1,680,364 17.04 % 7.875 % 8.5 % N/A Total capital (to risk-weighted assets): PlainsCapital 1,245,177 14.63 % 9.875 % 10.5 % 10.0 % Hilltop 1,722,602 17.47 % 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 reconciliation of equity capital to common equity Tier 1, Tier 1 and total capital (as defined)	A reconciliation of equity capital to common equity Tier 1, Tier 1 and total capital (as defined) is as follows (in thousands). December 31, 2018 December 31, 2017 PlainsCapital Hilltop PlainsCapital Hilltop Total equity capital $ 1,459,985 $ 1,949,470 $ 1,379,402 $ 1,912,081 Add: Net unrealized holding losses (gains) on securities available for sale and held in trust 7,988 8,627 3,520 394 Deduct: Goodwill and other disallowed intangible assets (282,238) (319,942) (235,395) (273,466) Other (2,288) (3,177) — — Common equity Tier 1 capital (as defined) 1,183,447 1,634,978 1,147,527 1,639,009 Add: Tier 1 capital Trust preferred securities — 65,000 — 65,000 Deduct: Additional Tier 1 capital deductions — (19,614) — (15,651) Tier 1 capital (as defined) 1,183,447 1,680,364 1,147,527 1,688,358 Add: Allowable Tier 2 capital Allowance for loan losses, including unfunded commitments 61,730 61,852 65,266 65,618 Deduct: Additional Tier 2 capital deductions — (19,614) — (15,651) Total capital (as defined) $ 1,245,177 $ 1,722,602 $ 1,212,793 $ 1,738,325
Schedule of net capital position	At December 31, 2018, the net capital position of each of the Hilltop Broker-Dealers was as follows (in thousands). HTS Hilltop Independent Securities Network Net capital $ 193,995 $ 3,073 Less: required net capital 10,898 250 Excess net capital $ 183,097 $ 2,823 Net capital as a percentage of aggregate debit items 35.6 % Net capital in excess of 5% aggregate debit items $ 166,750
Summary of statutory capital and surplus and statutory net income (loss) of each insurance subsidiary	A summary of statutory capital and surplus and statutory net income of each insurance subsidiary is as follows (in thousands). December 31, 2018 2017 Statutory capital and surplus: National Lloyds Insurance Company $ 78,637 $ 93,812 American Summit Insurance Company 17,908 22,778 Year Ended December 31, 2018 2017 2016 Statutory net income (loss): National Lloyds Insurance Company $ 9,114 $ (1,785) $ 13,043 American Summit Insurance Company (1,304) 742 2,124

Other Noninterest Income and _2

Other Noninterest Income and Expense (Tables)	12 Months Ended
	Dec. 31, 2018
Other Noninterest Income and Expense
Schedule of components of other noninterest income and expense	The following table shows the components of other noninterest income and expense (in thousands). Year Ended December 31, 2018 2017 2016 Other noninterest income: Net gains from Hilltop Broker-Dealer trading activities $ 41,543 $ 70,922 $ 86,383 Service charges on depositor accounts 14,484 14,429 14,162 Trust fees 9,807 7,485 6,782 Net gain from trading securities portfolio 6,197 20,210 15,926 Insurance commissions 5,211 4,819 4,206 Insurance direct billing and other policy fees 3,930 4,353 4,818 Revenue from check and stored value cards 2,966 3,169 5,036 Rent and other income from other real estate owned 764 1,280 1,461 SWS merger appraisal proceeding — 11,757 — FDIC Indemnification Asset accretion — — 242 Other 11,403 25,546 15,248 $ 96,305 $ 163,970 $ 154,264 Other noninterest expense: Software and information technology $ 56,986 $ 45,891 $ 38,421 Brokerage commissions and fees 20,674 22,884 24,654 Mortgage origination and servicing 19,705 22,353 25,736 Unreimbursed loan closing costs 16,798 20,428 31,234 Business development 15,913 18,619 19,738 Travel, meals and entertainment 12,389 12,839 13,683 Amortization of intangible assets 8,426 8,263 10,174 FDIC indemnification asset amortization 6,509 17,083 — Office supplies 6,123 7,806 8,719 Funding fees 5,414 8,464 7,451 OREO and repossessed assets 3,885 4,004 13,438 FDIC "true-up" 250 2,100 8,750 Other 51,183 51,362 49,523 $ 224,255 $ 242,096 $ 251,521

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2018
Derivative Financial Instruments
Schedule of derivative positions	Derivative positions are presented in the following table (in thousands). December 31, 2018 December 31, 2017 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Derivative instruments: IRLCs $ 677,267 $ 17,421 $ 850,850 $ 18,851 Customer-based written options 31,200 (49) 21,637 38 Customer-based purchased options 31,200 49 21,637 (38) Commitments to purchase MBSs 2,359,630 10,467 2,831,635 (921) Commitments to sell MBSs 3,711,477 (19,315) 4,963,498 2,972 Interest rate swaps 15,104 82 25,971 51 U.S. Treasury bond futures and options (1) 367,200 — 214,500 — Eurodollar futures (1) 104,000 — — — (1)

Balance Sheet Offsetting (Table

Balance Sheet Offsetting (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2018 Securities borrowed: Institutional counterparties $ 1,365,547 $ — $ 1,365,547 $ (1,307,121) $ — $ 58,426 Interest rate options: Customer counterparties 49 — 49 — — 49 Interest rate swaps: Institutional counterparties 88 — 88 — — 88 Reverse repurchase agreements: Institutional counterparties 61,611 — 61,611 (61,390) — 221 Forward MBS derivatives: Institutional counterparties 10,469 — 10,469 (10,469) — — $ 1,437,764 $ — $ 1,437,764 $ (1,378,980) $ — $ 58,784 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 December 31, 2018 Securities loaned: Institutional counterparties $ 1,186,073 $ — $ 1,186,073 $ (1,136,033) $ — $ 50,040 Interest rate options: Institutional counterparties 49 — 49 — — 49 Interest rate swaps: Institutional counterparties 6 — 6 — — 6 Repurchase agreements: Institutional counterparties 533,441 — 533,441 (533,441) — — Customer counterparties 43,266 — 43,266 (43,266) — — Forward MBS derivatives: Institutional counterparties 19,331 (15) 19,316 (7,728) — 11,588 $ 1,782,166 $ (15) $ 1,782,151 $ (1,720,468) $ — $ 61,683 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 December 31, 2018 and 2017. Remaining Contractual Maturities Overnight and Greater Than December 31, 2018 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: U.S. Treasury and agency securities $ 131,848 $ — $ — $ — $ 131,848 Asset-backed securities 444,859 — — — 444,859 Securities lending transactions: Corporate securities 113 — — — 113 Equity securities 1,185,960 — — — 1,185,960 Total $ 1,762,780 $ — $ — $ — $ 1,762,780 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,762,780 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 Or_2

Broker-Dealer and Clearing Organization Receivables and Payables (Tables)	12 Months Ended
	Dec. 31, 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). December 31, 2018 2017 Receivables: Securities borrowed $ 1,365,547 $ 1,386,821 Securities failed to deliver 16,300 25,491 Trades in process of settlement 32,993 29,412 Other 25,447 22,654 $ 1,440,287 $ 1,464,378 Payables: Securities loaned $ 1,186,073 $ 1,215,093 Correspondents 29,311 30,160 Securities failed to receive 75,015 37,864 Trades in process of settlement — — Other 4,526 4,446 $ 1,294,925 $ 1,287,563

Deferred Policy Acquisition C_2

Deferred Policy Acquisition Cost (Tables)	12 Months Ended
	Dec. 31, 2018
Deferred Policy Acquisition Costs.
Schedule of activity in deferred policy acquisition costs	A summary of the activity in deferred policy acquisition costs is as follows (in thousands). Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 16,988 $ 18,603 $ 19,874 Acquisition expenses capitalized 34,328 34,934 37,231 Amortization charged to income (34,683) (36,549) (38,502) Balance, end of year $ 16,633 $ 16,988 $ 18,603

Reserve for Losses and Loss A_2

Reserve for Losses and Loss Adjustment Expenses (Tables)	12 Months Ended
	Dec. 31, 2018
Reserve 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). December 31, 2018 2017 Reserve for unpaid losses and allocated LAE balance, net $ 16,498 $ 17,470 Reinsurance recoverables on unpaid losses 3,214 11,495 Unallocated LAE 840 1,248 Reserve for unpaid losses and LAE balance, gross $ 20,552 $ 30,213
Summary of claims loss reserve development activity	A summary of claims loss reserve development activity is presented in the following table (in thousands). December 31, 2018 Total of IBNR Reserves Plus Expected Cumulative Accident Year Ended December 31, 2018 Development on Number of Year Paid Incurred Reported Claims Reported Claims 2014 $ 83,808 $ 83,894 $ 22 18,832 2015 86,549 86,961 171 20,611 2016 83,169 84,076 401 20,201 2017 86,319 88,025 1,047 20,757 2018 61,922 75,217 6,250 15,296 Total 401,767 $ 418,173 92 All outstanding reserves prior to 2014, net of reinsurance $ 16,498 Reserve for unpaid losses and allocated LAE, net of reinsurance

Reinsurance Activity (Tables)

Reinsurance Activity (Tables)	12 Months Ended
	Dec. 31, 2018
Reinsurance Activity
Schedule of reinsurers with a balance in excess of 5% of outstanding reinsurance receivables	Reinsurers with a balance in excess of 5% of the Company’s outstanding reinsurance receivables at December 31, 2018 are listed below (in thousands). Balances Due From A.M. Best Reinsurers Rating R+V Versicherung AG $ 817 N/A Partner Reinsurance Company Ltd. 812 A Arch Reinsurance Company 706 A+ Aspen Bermuda Ltd 276 A $ 2,611
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). Year Ended December 31, 2018 2017 2016 Written Earned Written Earned Written Earned Premiums from direct business $ 129,611 $ 133,112 $ 137,091 $ 144,990 $ 152,970 $ 159,884 Reinsurance assumed 12,917 12,516 12,150 11,767 11,338 11,024 Reinsurance ceded (8,749) (8,877) (12,280) (14,459) (14,962) (15,363) Net premiums $ 133,779 $ 136,751 $ 136,961 $ 142,298 $ 149,346 $ 155,545
Schedule of effects of reinsurance on incurred losses	The effects of reinsurance on incurred losses are as follows (in thousands). Year Ended December 31, 2018 2017 2016 Losses and LAE incurred $ 76,464 $ 138,358 $ 113,494 Reinsurance recoverables 2,883 (43,657) (24,251) Net loss and LAE incurred $ 79,347 $ 94,701 $ 89,243

Segment and Related Informati_2

Segment and Related Information (Tables)	12 Months Ended
	Dec. 31, 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 Year Ended December 31, 2018 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 370,732 $ 50,878 $ 1,485 $ 3,025 $ (9,176) $ 19,380 $ 436,324 Provision (recovery) for loan losses 5,319 (231) — — — — 5,088 Noninterest income 43,588 301,714 551,860 142,565 4,893 (21,830) 1,022,790 Noninterest expense 256,577 320,241 540,474 139,921 36,628 (592) 1,293,249 Income (loss) before income taxes $ 152,424 $ 32,582 $ 12,871 $ 5,669 $ (40,911) $ (1,858) $ 160,777 Mortgage All Other and Hilltop Year Ended December 31, 2017 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 366,581 $ 43,735 $ (915) $ 2,861 $ (10,069) $ 19,555 $ 421,748 Provision for loan losses 14,073 198 — — — — 14,271 Noninterest income 59,904 368,421 632,388 151,382 12,798 (19,829) 1,205,064 Noninterest expense 248,404 347,314 581,899 158,354 33,983 (699) 1,369,255 Income (loss) before income taxes $ 164,008 $ 64,644 $ 49,574 $ (4,111) $ (31,254) $ 425 $ 243,286 Mortgage All Other and Hilltop Year Ended December 31, 2016 Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated Net interest income (expense) $ 363,083 $ 31,172 $ (11,589) $ 3,164 $ (7,257) $ 18,958 $ 397,531 Provision (recovery) for loan losses 40,673 (53) — — — — 40,620 Noninterest income 52,579 385,766 704,126 164,841 2 (20,349) 1,286,965 Noninterest expense 244,715 377,524 614,741 146,601 29,938 (1,048) 1,412,471 Income (loss) before income taxes $ 130,274 $ 39,467 $ 77,796 $ 21,404 $ (37,193) $ (343) $ 231,405 Mortgage All Other and Hilltop Banking Broker-Dealer Origination Insurance Corporate Eliminations Consolidated December 31, 2018 Goodwill $ 247,368 $ 7,008 $ 13,071 $ 23,988 $ — $ — $ 291,435 Total assets $ 10,004,971 $ 3,213,115 $ 1,627,134 $ 253,513 $ 2,243,182 $ (3,658,343) $ 13,683,572 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)	12 Months Ended
	Dec. 31, 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). Year Ended December 31, 2018 2017 2016 Basic earnings per share: Income attributable to Hilltop $ 121,441 $ 132,544 $ 145,894 Less: income applicable to participating shares — — (6) Net earnings available to Hilltop common stockholders $ 121,441 $ 132,544 $ 145,888 Weighted average shares outstanding - basic 94,969 97,137 98,404 Basic earnings per common share $ 1.28 $ 1.36 $ 1.48 Diluted earnings per share: Income attributable to Hilltop $ 121,441 $ 132,544 $ 145,894 Weighted average shares outstanding - basic 94,969 97,137 98,404 Effect of potentially dilutive securities 98 216 225 Weighted average shares outstanding - diluted 95,067 97,353 98,629 Diluted earnings per common share $ 1.28 $ 1.36 $ 1.48

Financial Statements of Parent

Financial Statements of Parent (Tables)	12 Months Ended
	Dec. 31, 2018
Financial Statements of Parent
Schedule of Condensed Combined Statements of Operations and Comprehensive Income (Loss)	The following tables present the condensed combined financial statements of the Company’s bank holding company entities, Hilltop and PCC. The tables also include the corporate activities associated with Hilltop Opportunity Partners LLC and the Hilltop Plaza Entities (in thousands). Investments in subsidiaries are determined using the equity method of accounting. Condensed Combined Statements of Operations and Comprehensive Income Year Ended December 31, 2018 2017 2016 Dividends from bank subsidiaries $ 42,000 $ 53,000 $ 87,826 Dividends from nonbank subsidiaries 37,500 41,500 — Investment income 3,089 312 382 Interest expense 12,265 10,381 7,639 Other income 4,893 12,798 2 General and administrative expense 36,628 33,983 29,938 Income before income taxes, equity in undistributed earnings of subsidiaries and preferred stock activity 38,589 63,246 50,633 Income tax benefit (7,767) (15,577) (10,077) Equity in undistributed earnings of subsidiaries 79,371 54,321 87,234 Net income $ 125,727 $ 133,144 $ 147,944 Other comprehensive income (loss), net (5,656) (879) (2,144) Comprehensive income $ 120,071 $ 132,265 $ 145,800
Schedule of Condensed Combined Balance Sheets	December 31, 2018 2017 2016 Assets: Cash and cash equivalents $ 54,405 $ 96,764 $ 118,290 Investment in subsidiaries: Bank subsidiaries 1,459,984 1,340,093 1,304,917 Nonbank subsidiaries 483,593 603,631 609,539 Other assets 245,200 66,490 3 Total assets $ 2,243,182 $ 2,106,978 $ 2,032,749 Liabilities and Stockholders’ Equity: Accounts payable and accrued expenses $ 58,319 $ 46,442 $ 13,929 Notes payable 215,620 148,455 148,311 Stockholders’ equity 1,969,243 1,912,081 1,870,509 Total liabilities and stockholders’ equity $ 2,243,182 $ 2,106,978 $ 2,032,749
Schedule of Condensed Combined Statements of Cash Flows	Condensed Combined Statements of Cash Flows Year Ended December 31, 2018 2017 2016 Operating Activities: Net income $ 125,727 $ 133,144 $ 147,944 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (79,371) (54,321) (87,234) Net realized gains on equity investments (5,336) — — Deferred income taxes 217 2,511 (2,063) Other, net 19,368 (57,380) 20,812 Net cash provided by operating activities 60,605 23,954 79,459 Investing Activities: Reimbursement from nonbank subsidiaries — — 6,000 Capital contribution to bank and bank holding company subsidiaries — (10,000) — Capital contribution to nonbank subsidiaries — — (20,000) Purchases of equity investments (12,492) — — Purchases of premises and equipment and other (42,390) (4,241) (98) Proceeds from sales of equity investments 16,174 — — Net cash used in investing activities (38,708) (14,241) (14,098) Financing Activities: Proceeds from issuances of common stock — — 4,139 Payments to repurchase common stock (58,990) (27,388) — Dividends paid on common stock (26,698) (23,140) (5,801) Net cash contributed from noncontrolling interest 19,250 — — Other, net 2,182 19,289 (951) Net cash used in financing activities (64,256) (31,239) (2,613) Net change in cash, cash equivalents and restricted cash (42,359) (21,526) 62,748 Cash, cash equivalents and restricted cash, beginning of year 96,764 118,290 55,542 Cash, cash equivalents and restricted cash, end of year $ 54,405 $ 96,764 $ 118,290 Supplemental Schedule of Non-Cash Activities: Construction in progress related to build-to-suit lease obligations $ 27,802 $ — $ — Note receivable contributed from nonbank subsidiary $ 111,653 $ — $ —

Selected Quarterly Financial _2

Selected Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Selected Quarterly Financial Information (Unaudited)
Schedule of quarterly financial information	Selected quarterly financial information is summarized as follows (in thousands, except per share data). Year Ended December 31, 2018 Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Interest income $ 157,702 $ 148,326 $ 140,040 $ 133,360 $ 579,428 Interest expense 39,987 37,985 35,192 29,940 143,104 Net interest income 117,715 110,341 104,848 103,420 436,324 Provision (recovery) for loan losses 6,926 (371) 340 (1,807) 5,088 Noninterest income 238,516 269,697 279,434 235,143 1,022,790 Noninterest expense 310,819 335,711 338,517 308,202 1,293,249 Income before income taxes 38,486 44,698 45,425 32,168 160,777 Income tax expense 8,928 7,600 11,034 7,488 35,050 Net income 29,558 37,098 34,391 24,680 125,727 Less: Net income attributable to noncontrolling interest 1,443 1,293 1,311 239 4,286 Income attributable to Hilltop $ 28,115 $ 35,805 $ 33,080 $ 24,441 $ 121,441 Earnings per common share: Basic $ 0.30 $ 0.38 $ 0.35 $ 0.25 $ 1.28 Diluted $ 0.30 $ 0.38 $ 0.35 $ 0.25 $ 1.28 Cash dividends declared per common share $ 0.07 $ 0.07 $ 0.07 $ 0.07 $ 0.28 Year Ended December 31, 2017 Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Interest income $ 133,665 $ 128,944 $ 136,306 $ 108,241 $ 507,156 Interest expense 24,973 23,964 20,330 16,141 85,408 Net interest income 108,692 104,980 115,976 92,100 421,748 Provision for loan losses 5,453 1,260 5,853 1,705 14,271 Noninterest income 290,456 298,477 344,692 271,439 1,205,064 Noninterest expense 328,670 353,842 366,251 320,492 1,369,255 Income before income taxes 65,025 48,355 88,564 41,342 243,286 Income tax expense 51,350 18,003 25,754 15,035 110,142 Net income 13,675 30,352 62,810 26,307 133,144 Less: Net income attributable to noncontrolling interest 247 146 334 (127) 600 Income attributable to Hilltop $ 13,428 $ 30,206 $ 62,476 $ 26,434 $ 132,544 Earnings per common share: Basic $ 0.14 $ 0.31 $ 0.64 $ 0.27 $ 1.36 Diluted $ 0.14 $ 0.31 $ 0.63 $ 0.27 $ 1.36 Cash dividends declared per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.24

Summary of Significant Accoun_3

Summary of Significant Accounting and Reporting Policies - Basis of Presentation, Ownership (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018item	Aug. 01, 2018USD ($)
Basis of Presentation
Number of primary operating business units | item	3
BORO
Basis of Presentation
Total identifiable assets acquired		$ 434,763
Loans held for investment		326,618
Total liabilities assumed		389,389
Deposits		$ 376,393
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%
HTH Hillcrest Project LLC
Basis of Presentation
Membership ownership percentage	100.00%
Hilltop Investments I, LLC
Basis of Presentation
Membership ownership percentage	100.00%
PPC | PlainsCapital (the Bank)
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 (the Bank) | PrimeLending
Basis of Presentation
Ownership percentage	100.00%
PrimeLending | Ventures Management
Basis of Presentation
Membership ownership percentage	100.00%
Hilltop Investments I, LLC | Hillcrest Land LLC
Basis of Presentation
Membership ownership percentage	50.00%

Summary of Significant Accoun_4

Summary of Significant Accounting and Reporting Policies - Basis of Presentation - Loans (Details)	12 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)
Insurance Premiums Receivable
Valuation allowance for uncollectible amounts	$ 0	$ 0
Deferred Policy Acquisition Costs.
Premium deficiency	$ 0	$ 0
Minimum
Loans Held for Sale
Number of layers of common risk characteristics based on which certain acquired loans aggregated into various loan pools to determine respective fair values | item	2
Minimum | Single Family Residential Loans
Loans Held for Sale
Loans held-for-sale, period reported on balance sheet	30 days
Maximum
Loans Held for Sale
Loans held-for-sale, period reported on balance sheet	30 days
Maximum | Single Family Residential Loans
Loans Held for Sale
Loans held-for-sale, period reported on balance sheet	45 days
Acquired loans
Loans Held for Sale
Carryover of Allowance for Loan and Lease Losses, Loans Acquired	$ 0

Summary of Significant Accoun_5

Summary of Significant Accounting and Reporting Policies - Premises and Equipment (Details) - Property, Plant and Equipment	12 Months Ended
	Dec. 31, 2018
Minimum
Premises and Equipment
Estimated useful lives	3 years
Maximum
Premises and Equipment
Estimated useful lives	40 years

Summary of Significant Accoun_6

Summary of Significant Accounting and Reporting Policies - Other Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Apr. 09, 2015USD ($)
FDIC Indemnification Asset
Threshold amount of cumulative net losses over the life of the loss-share agreements which will reduce the FDIC Indemnification Asset		$ 240.4
Advertising
Advertising Expense	$ 4.6	4.7	$ 5.3
Broker-Dealer
Debt Instrument
Number of primary lines of business | item	6
Banking
Debt Instrument
Number of primary lines of business | item	3
Interest Expense
Debt Instrument
Debt issuance costs amortized	$ 0.2	$ 0.1	$ 0.1
Senior Notes due April 2025
Debt Instrument
Interest rate (as a percent)			5.00%
Senior Notes due April 2025 | Private Placement
Debt Instrument
Capitalized debt issuance costs				$ 1.9
Interest rate (as a percent)				5.00%

Acquisition - Identifiable Asse

Acquisition - Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Aug. 01, 2018	Dec. 31, 2018	Dec. 31, 2017
Fair values of the identifiable assets acquired, and liabilities assumed
Goodwill resulting from the acquisition		$ 291,435	$ 251,808
BORO
Fair values of the identifiable assets acquired, and liabilities assumed
Cash and due from banks	$ 21,756
Securities	60,477
Loans held for investment	326,618
Other assets	25,912
Total identifiable assets acquired	434,763
Deposits	376,393
Short-term borrowings	10,000
Other liabilities	2,996
Total liabilities assumed	389,389
Net identifiable assets acquired	45,374
Goodwill resulting from the acquisition	39,627
Net assets acquired	$ 85,001
Allocation to intangible assets
Transaction and integration related expenses		$ 8,200
Core Deposits | BORO
Allocation to intangible assets
Estimated Useful Life	6 years
Intangible Assets	$ 10,000

Acquisition - Acquired Loans at

Acquisition - Acquired Loans at Acquisition Date (Details) - BORO $ in Thousands	Aug. 01, 2018USD ($)
Information about the acquired loans at acquisition
Carryover of the allowance for loan losses recorded	$ 0
Total loans	326,618
Commercial real estate
Information about the acquired loans at acquisition
Total loans	124,538
1 - 4 family residential
Information about the acquired loans at acquisition
Total loans	55,526
Construction and land development
Information about the acquired loans at acquisition
Total loans	37,134
Commercial and industrial
Information about the acquired loans at acquisition
Total loans	100,386
Consumer
Information about the acquired loans at acquisition
Total loans	9,034
Non-PCI
Information about the acquired loans at acquisition
Total loans	319,089
Non-PCI | Commercial real estate
Information about the acquired loans at acquisition
Total loans	119,188
Non-PCI | 1 - 4 family residential
Information about the acquired loans at acquisition
Total loans	55,487
Non-PCI | Construction and land development
Information about the acquired loans at acquisition
Total loans	37,134
Non-PCI | Commercial and industrial
Information about the acquired loans at acquisition
Total loans	98,259
Non-PCI | Consumer
Information about the acquired loans at acquisition
Total loans	9,021
PCI loans
Information about the acquired loans at acquisition
Total loans	7,529
PCI loans | Commercial real estate
Information about the acquired loans at acquisition
Total loans	5,350
PCI loans | 1 - 4 family residential
Information about the acquired loans at acquisition
Total loans	39
PCI loans | Commercial and industrial
Information about the acquired loans at acquisition
Total loans	2,127
PCI loans | Consumer
Information about the acquired loans at acquisition
Total loans	$ 13

Acquisition - Loans at Acquisit

Acquisition - Loans at Acquisition, Additional Info. and Pro Forma Results (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Aug. 01, 2018	Dec. 31, 2017
PCI loans
Acquisitions
Nonaccretable difference	$ 64,200		$ 91,900
BORO
Acquisitions
Total loans		$ 326,618
BORO | PCI loans
Acquisitions
Contractually required principal and interest payments		10,730
Nonaccretable difference		2,859
Cash flows expected to be collected		7,871
Accretable difference		342
Total loans		7,529
BORO | Non-PCI
Acquisitions
Contractually required principal and interest payments		381,551
Contractual cash flows not expected to be collected		15,286
Total loans		$ 319,089

Fair Value Measurements - FV Op

Fair Value Measurements - FV Option (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value measurements
Mortgage loans held for sale, fair value	$ 1,260	$ 1,580
Mortgage loans held for sale, unpaid principal balance	$ 1,210	$ 1,530
Maximum
Fair value measurements
Loans Held for Sale Period of Time	30 days

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financial assets:
Trading securities	$ 745,466	$ 730,685
Available for sale securities	875,658	744,319
Equity securities	19,679	21,241
Financial liabilities:
Securities sold, not yet purchased	81,667	232,821
Recurring
Financial assets:
Trading securities	745,466	730,685
Available for sale securities	875,658	744,319
Equity securities	19,679	21,241
Loans held for sale	1,257,775	1,581,603
Derivative assets	35,010	34,150
MSR asset	66,102	54,714
Financial liabilities:
Securities sold, not yet purchased	81,667	232,821
Derivative liabilities	26,355	13,197
Recurring | Level 1
Financial assets:
Trading securities	7,947	3,329
Equity securities	19,679	21,241
Financial liabilities:
Securities sold, not yet purchased	33,000	156,586
Recurring | Level 2
Financial assets:
Trading securities	737,519	727,356
Available for sale securities	875,658	744,319
Loans held for sale	1,207,311	1,544,631
Derivative assets	35,010	34,150
Financial liabilities:
Securities sold, not yet purchased	48,667	76,235
Derivative liabilities	26,355	13,197
Recurring | Level 3
Financial assets:
Loans held for sale	50,464	36,972
MSR asset	$ 66,102	$ 54,714

Fair Value Measurements - Roll

Fair Value Measurements - Roll Forward, Level 3 (Details) - Level 3 - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Rollforward for financial instruments measured at fair value using Level 3 inputs
Asset balance, beginning of period	$ 91,686	$ 97,769	$ 78,166
Purchases/Additions	86,601	53,292	84,380
Sales/Reductions	(51,104)	(44,272)	(47,223)
Total gains or losses (realized or unrealized):
Included in Net Income	(10,617)	(15,103)	(17,554)
Asset balance, end of period	116,566	91,686	97,769
Trading securities.
Rollforward for financial instruments measured at fair value using Level 3 inputs
Asset balance, beginning of period			1
Total gains or losses (realized or unrealized):
Included in Net Income			(1)
Loans Held for Sale
Rollforward for financial instruments measured at fair value using Level 3 inputs
Asset balance, beginning of period	36,972	35,801	25,880
Purchases/Additions	61,573	36,891	60,999
Sales/Reductions	(41,801)	(26,773)	(39,637)
Total gains or losses (realized or unrealized):
Included in Net Income	(6,280)	(8,947)	(11,441)
Asset balance, end of period	50,464	36,972	35,801
MSR
Rollforward for financial instruments measured at fair value using Level 3 inputs
Asset balance, beginning of period	54,714	61,968	52,285
Purchases/Additions	25,028	16,401	23,381
Sales/Reductions	(9,303)	(17,499)	(7,586)
Total gains or losses (realized or unrealized):
Included in Net Income	(4,337)	(6,156)	(6,112)
Asset balance, end of period	$ 66,102	$ 54,714	$ 61,968

Fair Value Measurements - Level

Fair Value Measurements - Level 3, Inputs, Recurring (Details) - Level 3 - Recurring - item	Dec. 31, 2018	Dec. 31, 2017
Loans Held for Sale
Significant unobservable inputs used in the fair value measurements
Loans Held-for-sale, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Loans Held-for-sale, Measurement Input [Extensible List]	us-gaap:MeasurementInputPriceVolatilityMember	us-gaap:MeasurementInputPriceVolatilityMember
Loans Held for Sale | Weighted average
Significant unobservable inputs used in the fair value measurements
Loans Held-for-sale, Measurement Input	95	95
Loans Held for Sale | Minimum
Significant unobservable inputs used in the fair value measurements
Loans Held-for-sale, Measurement Input	95	90
Loans Held for Sale | Maximum
Significant unobservable inputs used in the fair value measurements
Loans Held-for-sale, Measurement Input	96	95
MSR
Significant unobservable inputs used in the fair value measurements
Servicing Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
MSR | Constant Prepayment Rate
Significant unobservable inputs used in the fair value measurements
Servicing Asset, Measurement Input	10.51	10.93
MSR | Discount Rate
Significant unobservable inputs used in the fair value measurements
Servicing Asset, Measurement Input	11.11	11.03

Fair Value Measurements - Chang

Fair Value Measurements - Change in FV (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Transfers Between Level 1 and Level 2
Transfers of assets from level 1 to level 2	$ 0	$ 0	$ 0
Transfers of assets from level 2 to level 1	0	0	0
Transfers of liabilities from level 1 to level 2	0	0	0
Transfers of liabilities from level 2 to level 1	0	0	0
Fair Value Option
Net Gains (Losses)	445,116	538,468	606,991
Other Noninterest Income	96,305	163,970	154,264
Loans Held for Sale
Fair Value Option
Net Gains (Losses)	(8,063)	10,655	(8,275)
Total Changes in Fair Value	(8,063)	10,655	(8,275)
MSR
Fair Value Option
Net Gains (Losses)	(4,337)	(6,156)	(6,112)
Total Changes in Fair Value	$ (4,337)	$ (6,156)	$ (6,112)

Fair Value Measurements - Impai

Fair Value Measurements - Impaired Loans (Details) $ in Thousands	Dec. 31, 2018	Aug. 01, 2018USD ($)	Dec. 31, 2017	Jan. 01, 2015USD ($)	Sep. 13, 2013USD ($)	Nov. 30, 2012USD ($)
PPC | Level 3 | PCI loans
Fair value measurements
Fair value of loans acquired						$ 172,900
PPC | Level 3 | Weighted average | PCI loans
Fair Value Inputs
Loans, measurement input	48		42
PPC | Level 3 | Weighted average | Default Rate | PCI loans
Fair Value Inputs
Loans, measurement input	81		64
PPC | Level 3 | Weighted average | Severity Rate | PCI loans
Fair Value Inputs
Loans, measurement input	59		66
PPC | Level 3 | Weighted average | Prepayment Rate | PCI loans
Fair Value Inputs
Loans, measurement input	0		0
FNB | Level 3 | PCI loans
Fair value measurements
Fair value of loans acquired					$ 822,800
FNB | Level 3 | Weighted average | PCI loans
Fair Value Inputs
Loans, measurement input	4		7
FNB | Level 3 | Weighted average | Default Rate | PCI loans
Fair Value Inputs
Loans, measurement input	34		41
FNB | Level 3 | Weighted average | Severity Rate | PCI loans
Fair Value Inputs
Loans, measurement input	12		18
FNB | Level 3 | Weighted average | Prepayment Rate | PCI loans
Fair Value Inputs
Loans, measurement input	6		7
SWS | Level 3 | PCI loans
Fair value measurements
Fair value of loans acquired				$ 73,500
SWS | Level 3 | Weighted average | PCI loans
Fair Value Inputs
Loans, measurement input	20		17
SWS | Level 3 | Weighted average | Default Rate | PCI loans
Fair Value Inputs
Loans, measurement input	71		60
SWS | Level 3 | Weighted average | Severity Rate | PCI loans
Fair Value Inputs
Loans, measurement input	28		28
SWS | Level 3 | Weighted average | Prepayment Rate | PCI loans
Fair Value Inputs
Loans, measurement input	0		0
BORO
Fair value measurements
Fair value of loans acquired		$ 326,618
BORO | PCI loans
Fair value measurements
Fair value of loans acquired		7,529
BORO | Level 3 | PCI loans
Fair value measurements
Fair value of loans acquired		$ 7,500
BORO | Level 3 | Weighted average | PCI loans
Fair Value Inputs
Loans, measurement input	26
BORO | Level 3 | Weighted average | Default Rate | PCI loans
Fair Value Inputs
Loans, measurement input	63
BORO | Level 3 | Weighted average | Severity Rate | PCI loans
Fair Value Inputs
Loans, measurement input	42
BORO | Level 3 | Weighted average | Prepayment Rate | PCI loans
Fair Value Inputs
Loans, measurement input	0

Fair Value Measurements - OREO

Fair Value Measurements - OREO (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value
Total Gains (Losses) of impaired loans	$ (6,926)	$ 371	$ (340)	$ 1,807	$ (5,453)	$ (1,260)	$ (5,853)	$ (1,705)	$ (5,088)	$ (14,271)	$ (40,620)
Level 2 | Estimate of Fair Value | Other Assets
Fair Value
Other real estate owned	27,600				$ 40,600				27,600	40,600
Nonrecurring | Estimate of Fair Value
Fair Value
Impaired loans	76,711								76,711
Other real estate owned	19,976								19,976
Total Gains (Losses) of impaired loans									2,481	(2,402)	3,643
Total Gains (Losses) of other real estate owned									(2,757)	$ (4,436)	$ (19,036)
Nonrecurring | Level 2 | Estimate of Fair Value
Fair Value
Other real estate owned	19,976								19,976
Nonrecurring | Level 3 | Estimate of Fair Value
Fair Value
Impaired loans	$ 76,711								$ 76,711

Fair Value Measurements - Estim

Fair Value Measurements - Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financial assets:
Held to maturity securities	$ 341,124	$ 349,939
Broker-dealer and clearing organization receivables	1,440,287	1,464,378
FDIC indemnification asset		29,340	$ 71,313	$ 91,648
Financial liabilities:
Broker-dealer and clearing organization payables	1,294,925	1,287,563
Carrying Amount
Financial assets:
Cash and cash equivalents	644,473	487,382
Assets segregated for regulatory purposes	133,993	186,578
Securities purchased under agreements to resell	61,611	186,537
Held to maturity securities	351,012	355,849
Loans held for sale	135,471	133,753
Loans held for investment, net	6,870,972	6,392,112
Broker-dealer and clearing organization receivables	1,440,287	1,464,378
FDIC indemnification asset		29,340
Other assets	69,720	64,862
Financial liabilities:
Deposits	8,536,156	7,978,119
Broker-dealer and clearing organization payables	1,294,925	1,287,563
Short-term borrowings	1,065,807	1,206,424
Debt	295,884	275,821
Other liabilities	3,482	4,795
Estimate of Fair Value
Financial assets:
Cash and cash equivalents	644,473	487,382
Assets segregated for regulatory purposes	133,993	186,578
Securities purchased under agreements to resell	61,611	186,537
Held to maturity securities	341,124	349,939
Loans held for sale	135,471	133,754
Loans held for investment, net	7,024,173	6,676,143
Broker-dealer and clearing organization receivables	1,440,287	1,464,378
FDIC indemnification asset		20,122
Other assets	69,720	64,862
Financial liabilities:
Deposits	8,528,947	7,973,101
Broker-dealer and clearing organization payables	1,294,925	1,287,563
Short-term borrowings	1,065,807	1,206,424
Debt	293,685	289,719
Other liabilities	3,482	4,795
Estimate of Fair Value | Level 1
Financial assets:
Cash and cash equivalents	644,473	487,382
Assets segregated for regulatory purposes	133,993	186,578
Estimate of Fair Value | Level 2
Financial assets:
Securities purchased under agreements to resell	61,611	186,537
Held to maturity securities	341,124	349,939
Loans held for sale	135,471	133,754
Loans held for investment, net	578,363	577,889
Broker-dealer and clearing organization receivables	1,440,287	1,464,378
Other assets	68,573	59,053
Financial liabilities:
Deposits	8,528,947	7,973,101
Broker-dealer and clearing organization payables	1,294,925	1,287,563
Short-term borrowings	1,065,807	1,206,424
Debt	293,685	289,719
Other liabilities	3,482	4,795
Estimate of Fair Value | Level 3
Financial assets:
Loans held for investment, net	6,445,810	6,098,254
FDIC indemnification asset		20,122
Other assets	$ 1,147	$ 5,809

Fair Value Measurements - Adjus

Fair Value Measurements - Adjustments to the carrying value of investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Adjustments to the carrying value of these investments
Balance, beginning of period	$ 22,946
Additional investments	8,643
Upward adjustments	3,663
Impairments and downward adjustments	(4,083)
Dispositions	(10,793)
Balance, end of period	20,376
Other Assets
Equity Securities without Readily Determinable Fair Value
Other equity investments	$ 35,800	$ 38,700

Securities - Trading Securities

Securities - Trading Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Schedule of fair value of trading securities
Trading Securities	$ 745,466	$ 730,685
Investment-related Liabilities
Securities sold, not yet purchased, at fair value	81,667	232,821
US Treasury Securities
Schedule of fair value of trading securities
Trading Securities	7,945
Bonds
Schedule of fair value of trading securities
Trading Securities	1,494	52,078
Residential mortgage-backed Securities
Schedule of fair value of trading securities
Trading Securities	309,455	372,817
Commercial mortgage-backed securities
Schedule of fair value of trading securities
Trading Securities	4,239	6,125
Collateralized mortgage obligations
Schedule of fair value of trading securities
Trading Securities	206,813	5,122
Corporate securities
Schedule of fair value of trading securities
Trading Securities	59,293	96,182
States and political subdivisions
Schedule of fair value of trading securities
Trading Securities	126,748	170,413
Unit investment trusts
Schedule of fair value of trading securities
Trading Securities	19,913	22,612
Private-label securitized product
Schedule of fair value of trading securities
Trading Securities	5,680	1,631
Other
Schedule of fair value of trading securities
Trading Securities	$ 3,886	$ 3,705

Securities - AFS and HTM, Amort

Securities - AFS and HTM, Amortized Cost and FV (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Available for sale
Total amortized cost	$ 886,799	$ 748,255
Gross Unrealized Gains	2,640	4,603
Gross Unrealized Losses	(13,781)	(8,539)
Fair Value	875,658	744,319
Held to maturity
Amortized cost	351,012	355,849
Unrealized Gains	365	741
Unrealized Losses	(10,253)	(6,651)
Held to maturity, fair value	341,124	349,939
Equity Securities
Unrealized net (losses) gains from equity securities	(900)	1,600
Equity, at fair value	19,679	21,241
Recognized net loss on equity securities	3,300
US Treasury Securities
Available for sale
Total amortized cost	11,552	24,665
Gross Unrealized Gains	30	107
Gross Unrealized Losses	(44)	(103)
Fair Value	11,538	24,669
Held to maturity
Amortized cost	9,903
Unrealized Gains	3
Held to maturity, fair value	9,906
Bonds
Available for sale
Total amortized cost	85,492	96,177
Gross Unrealized Gains	552	829
Gross Unrealized Losses	(433)	(366)
Fair Value	85,611	96,640
Held to maturity
Amortized cost	39,018	39,015
Unrealized Losses	(1,479)	(1,188)
Held to maturity, fair value	37,539	37,827
Residential mortgage-backed Securities
Available for sale
Total amortized cost	391,428	246,707
Gross Unrealized Gains	608	538
Gross Unrealized Losses	(6,962)	(3,740)
Fair Value	385,074	243,505
Held to maturity
Amortized cost	21,903	16,130
Unrealized Gains		44
Unrealized Losses	(263)
Held to maturity, fair value	21,640	16,174
Commercial mortgage-backed securities
Available for sale
Total amortized cost	11,703	11,966
Gross Unrealized Gains	189	105
Gross Unrealized Losses	(120)	(48)
Fair Value	11,772	12,023
Held to maturity
Amortized cost	87,065	71,373
Unrealized Gains	271	241
Unrealized Losses	(1,462)	(735)
Held to maturity, fair value	85,874	70,879
Collateralized mortgage obligations
Available for sale
Total amortized cost	281,450	237,848
Gross Unrealized Gains	385	106
Gross Unrealized Losses	(5,436)	(4,142)
Fair Value	276,399	233,812
Held to maturity
Amortized cost	142,474	173,928
Unrealized Gains		19
Unrealized Losses	(5,000)	(3,969)
Held to maturity, fair value	137,474	169,978
Corporate securities
Available for sale
Total amortized cost	53,614	66,868
Gross Unrealized Gains	268	1,819
Gross Unrealized Losses	(580)	(25)
Fair Value	53,302	68,662
States and political subdivisions
Available for sale
Total amortized cost	51,560	64,024
Gross Unrealized Gains	608	1,099
Gross Unrealized Losses	(206)	(115)
Fair Value	51,962	65,008
Held to maturity
Amortized cost	50,649	55,403
Unrealized Gains	91	437
Unrealized Losses	(2,049)	(759)
Held to maturity, fair value	$ 48,691	$ 55,081

Securities - AFS in an Unrealiz

Securities - AFS in an Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)item
Number of Securities
Unrealized loss for less than twelve months | item	60	58
Unrealized loss for twelve months or longer | item	88	38
Total | item	148	96
Fair Value
Unrealized loss for less than twelve months	$ 161,784	$ 328,881
Unrealized loss for twelve months or longer	398,385	180,876
Total	560,169	509,757
Unrealized Loss
Unrealized loss for less than twelve months	1,250	2,244
Unrealized loss for twelve months or longer	12,531	6,295
Total	$ 13,781	$ 8,539
US Treasury Securities
Number of Securities
Unrealized loss for less than twelve months | item	1	6
Unrealized loss for twelve months or longer | item	3	1
Total | item	4	7
Fair Value
Unrealized loss for less than twelve months	$ 981	$ 15,449
Unrealized loss for twelve months or longer	3,556	4,150
Total	4,537	19,599
Unrealized Loss
Unrealized loss for less than twelve months	6	69
Unrealized loss for twelve months or longer	39	34
Total	$ 45	$ 103
Bonds
Number of Securities
Unrealized loss for less than twelve months | item	3	10
Unrealized loss for twelve months or longer | item	3
Total | item	6	10
Fair Value
Unrealized loss for less than twelve months	$ 24,772	$ 83,476
Unrealized loss for twelve months or longer	30,472
Total	55,244	83,476
Unrealized Loss
Unrealized loss for less than twelve months	5	366
Unrealized loss for twelve months or longer	428
Total	$ 433	$ 366
Residential mortgage-backed Securities
Number of Securities
Unrealized loss for less than twelve months | item	8	15
Unrealized loss for twelve months or longer | item	27	11
Total | item	35	26
Fair Value
Unrealized loss for less than twelve months	$ 66,791	$ 121,968
Unrealized loss for twelve months or longer	194,228	93,358
Total	261,019	215,326
Unrealized Loss
Unrealized loss for less than twelve months	432	820
Unrealized loss for twelve months or longer	6,530	2,920
Total	$ 6,962	$ 3,740
Commercial mortgage-backed securities
Number of Securities
Unrealized loss for less than twelve months | item		1
Unrealized loss for twelve months or longer | item	1
Total | item	1	1
Fair Value
Unrealized loss for less than twelve months		$ 5,048
Unrealized loss for twelve months or longer	$ 4,953
Total	4,953	5,048
Unrealized Loss
Unrealized loss for less than twelve months		48
Unrealized loss for twelve months or longer	120
Total	$ 120	$ 48
Collateralized mortgage obligations
Number of Securities
Unrealized loss for less than twelve months | item	11	16
Unrealized loss for twelve months or longer | item	28	17
Total | item	39	33
Fair Value
Unrealized loss for less than twelve months	$ 44,394	$ 90,886
Unrealized loss for twelve months or longer	140,483	80,492
Total	184,877	171,378
Unrealized Loss
Unrealized loss for less than twelve months	498	819
Unrealized loss for twelve months or longer	4,938	3,323
Total	$ 5,436	$ 4,142
Corporate securities
Number of Securities
Unrealized loss for less than twelve months | item	8	1
Unrealized loss for twelve months or longer | item	8
Total | item	16	1
Fair Value
Unrealized loss for less than twelve months	$ 16,256	$ 5,073
Unrealized loss for twelve months or longer	15,665
Total	31,921	5,073
Unrealized Loss
Unrealized loss for less than twelve months	282	25
Unrealized loss for twelve months or longer	297
Total	$ 579	$ 25
States and political subdivisions
Number of Securities
Unrealized loss for less than twelve months | item	29	9
Unrealized loss for twelve months or longer | item	18	9
Total | item	47	18
Fair Value
Unrealized loss for less than twelve months	$ 8,590	$ 6,981
Unrealized loss for twelve months or longer	9,029	2,876
Total	17,619	9,857
Unrealized Loss
Unrealized loss for less than twelve months	27	97
Unrealized loss for twelve months or longer	179	18
Total	$ 206	$ 115

Securities - HTM in an Unrealiz

Securities - HTM in an Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)item
Number of Securities
Unrealized loss for less than twelve months | item	12	40
Unrealized loss for twelve months or longer | item	130	63
Total | item	142	103
Fair Value
Unrealized loss for less than twelve months	$ 21,866	$ 93,489
Unrealized loss for twelve months or longer	278,770	191,404
Total	300,636	284,893
Unrealized Losses
Unrealized loss for less than twelve months	198	656
Unrealized loss for twelve months or longer	10,055	5,995
Total	$ 10,253	$ 6,651
Bonds
Number of Securities
Unrealized loss for less than twelve months | item		1
Unrealized loss for twelve months or longer | item	4	3
Total | item	4	4
Fair Value
Unrealized loss for less than twelve months		$ 5,950
Unrealized loss for twelve months or longer	$ 37,539	31,877
Total	37,539	37,827
Unrealized Losses
Unrealized loss for less than twelve months		50
Unrealized loss for twelve months or longer	1,479	1,138
Total	$ 1,479	$ 1,188
Residential mortgage-backed Securities
Number of Securities
Unrealized loss for less than twelve months | item	1
Unrealized loss for twelve months or longer | item	3
Total | item	4
Fair Value
Unrealized loss for less than twelve months	$ 8,411
Unrealized loss for twelve months or longer	13,229
Total	21,640
Unrealized Losses
Unrealized loss for less than twelve months	89
Unrealized loss for twelve months or longer	174
Total	$ 263
Commercial mortgage-backed securities
Number of Securities
Unrealized loss for less than twelve months | item	1	7
Unrealized loss for twelve months or longer | item	13	2
Total | item	14	9
Fair Value
Unrealized loss for less than twelve months	$ 4,973	$ 39,396
Unrealized loss for twelve months or longer	59,670	12,659
Total	64,643	52,055
Unrealized Losses
Unrealized loss for less than twelve months	27	271
Unrealized loss for twelve months or longer	1,435	464
Total	$ 1,462	$ 735
Collateralized mortgage obligations
Number of Securities
Unrealized loss for less than twelve months | item	1	10
Unrealized loss for twelve months or longer | item	24	12
Total | item	25	22
Fair Value
Unrealized loss for less than twelve months	$ 2,051	$ 37,064
Unrealized loss for twelve months or longer	135,423	128,270
Total	137,474	165,334
Unrealized Losses
Unrealized loss for less than twelve months	26	264
Unrealized loss for twelve months or longer	4,974	3,705
Total	$ 5,000	$ 3,969
States and political subdivisions
Number of Securities
Unrealized loss for less than twelve months | item	9	22
Unrealized loss for twelve months or longer | item	86	46
Total | item	95	68
Fair Value
Unrealized loss for less than twelve months	$ 6,431	$ 11,079
Unrealized loss for twelve months or longer	32,909	18,598
Total	39,340	29,677
Unrealized Losses
Unrealized loss for less than twelve months	56	71
Unrealized loss for twelve months or longer	1,993	688
Total	$ 2,049	$ 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	Dec. 31, 2018	Dec. 31, 2017
AFS, Amortized Cost, Rolling Maturity
Due in one year or less	$ 50,468
Due after one year through five years	96,689
Due after five years through ten years	32,435
Due after ten years	22,626
Total	202,218
Total amortized cost	886,799	$ 748,255
AFS, Fair Value, Rolling Maturity
Due in one year or less	50,354
Due after one year through five years	96,799
Due after five years through ten years	32,239
Due after ten years	23,021
Total	202,413
Fair Value	875,658	744,319
Residential mortgage-backed Securities
AFS, Amortized Cost, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	391,428
Total amortized cost	391,428	246,707
AFS, Fair Value, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	385,074
Fair Value	385,074	243,505
Collateralized mortgage obligations
AFS, Amortized Cost, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	281,450
Total amortized cost	281,450	237,848
AFS, Fair Value, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	276,399
Fair Value	276,399	$ 233,812
Commercial mortgage-backed Securities
AFS, Amortized Cost, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	11,703
AFS, Fair Value, Rolling Maturity
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	$ 11,772

Securities - HTM Contractual Ma

Securities - HTM Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
HTM, Amortized Cost, Rolling Maturities
Due in one year or less	$ 11,301
Due after one year through five years	25,732
Due after five years through ten years	4,908
Due after ten years	57,629
Total	99,570
Amortized cost	351,012	$ 355,849
HTM, Fair Value, Rolling Maturities
Due in one year or less	11,305
Due after one year through five years	24,842
Due after five years through ten years	4,786
Due after ten years	55,203
Total	96,136
Fair Value	341,124	349,939
Residential mortgage-backed Securities
HTM, Amortized Cost, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	21,903
Amortized cost	21,903	16,130
HTM, Fair Value, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	21,640
Fair Value	21,640	16,174
Collateralized mortgage obligations
HTM, Amortized Cost, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	142,474
Amortized cost	142,474	173,928
HTM, Fair Value, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	137,474
Fair Value	137,474	$ 169,978
Commercial mortgage-backed Securities
HTM, Amortized Cost, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	87,065
HTM, Fair Value, Rolling Maturities
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities	$ 85,874

Securities - Additional Informa

Securities - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Securities
Realized net gains from trading securities portfolio	$ 6.2	$ 20.2	$ 15.9
Carrying amount of securities pledged	612.3	738.5
Fair value of securities pledged	600	730.1
Hilltop Broker-Dealers
Securities
Realized net gains from trading securities portfolio	41.9	62.8	$ 109.8
NLC
Securities
Deposit with various state insurance departments	$ 9.5	$ 9.3

Loans Held for Investment and_3

Loans Held for Investment and Allowance for Loan Losses - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loans
Loans held for investment	$ 6,930,458	$ 6,455,798
Allowance for loan losses	(59,486)	(63,686)	$ (54,599)	$ (46,947)
Loans held for investment, net	6,870,972	6,392,112
Commercial real estate
Loans
Loans held for investment	2,940,120	2,582,167
Allowance for loan losses		(26,413)	(22,262)	(15,669)
Commercial and industrial
Loans
Loans held for investment	1,508,451	1,351,418
Allowance for loan losses		(23,674)	(21,369)	(19,845)
Construction and land development
Loans
Loans held for investment	932,909	962,605
Allowance for loan losses		(7,844)	(7,002)	(6,064)
1 - 4 family residential
Loans
Loans held for investment	679,263	429,357
Allowance for loan losses		(2,362)	(2,974)	(3,314)
Mortgage warehouse
Loans
Loans held for investment	243,806	329,787
Consumer
Loans
Loans held for investment	47,546	40,446
Allowance for loan losses		(311)	(424)	(314)
Broker-dealer
Loans
Loans held for investment	$ 578,363	577,889
Allowance for loan losses		(353)	(155)	(209)
Covered Loan
Loans
Loans held for investment		182,129
Allowance for loan losses		$ (2,729)	$ (413)	$ (1,532)

Loans Held for Investment and_4

Loans Held for Investment and Allowance for Loan Losses - PCI Loans (Details) - PCI loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Carrying values and the outstanding contractual balances of the PCI loans
Carrying amount	$ 93,072	$ 124,317
Outstanding balance	172,808	230,083
Changes in the accretable yield for the acquired impaired loans
Balance, beginning of year	98,846	156,847	$ 194,463
Additions	340
Reclassifications from nonaccretable difference, net	26,166	12,946	47,407
Disposals of loans	(1,226)	(1,663)
Accretion	(43,433)	(69,284)	(84,536)
Transfer of loans to OREO			(487)
Balance, end of year	80,693	98,846	$ 156,847
Nonaccretable difference	$ 64,200	$ 91,900

Loans Held for Investment and_5

Loans Held for Investment and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Impaired loans
Days outstanding loans and leases receivable are generally considered past due	90 days
Non-covered impaired loans
Unpaid Contractual Principal balance	$ 265,779	$ 346,915
Recorded Investment with No Allowance	47,090	53,054
Recorded Investment with Allowance	71,921	111,105
Total Recorded Investment	119,011	164,159
Related Allowance	3,644	6,125
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	141,587	185,498	$ 259,639
Non-accrual loans
Non-accrual loans	30,539	42,883
Interest income recorded on accruing impaired loans	1,400	1,700	1,300
Non-owner occupied
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	14,533	16,623	19,871
Non-accrual loans
Non-accrual loans	1,226
Owner occupied
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	21,262	25,307	25,754
Non-accrual loans
Non-accrual loans	4,098	14,620
Commercial and industrial
Non-covered impaired loans
Unpaid Contractual Principal balance		19,752
Recorded Investment with No Allowance		3,610
Recorded Investment with Allowance		2,489
Total Recorded Investment		6,099
Related Allowance		89
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	21,143	19,189	20,216
Non-accrual loans
Non-accrual loans	14,870	20,878
Secured by Residential Properties
Non-accrual loans
Non-accrual loans held for sale	3,400	2,700
Construction and land development
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	2,880	3,136	4,744
Non-accrual loans
Non-accrual loans	3,278	611
1 - 4 family residential
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	35,404	5,797	6,474
Non-accrual loans
Non-accrual loans	7,026	1,614
Consumer
Non-covered impaired loans
Unpaid Contractual Principal balance	149
Recorded Investment with No Allowance	42
Total Recorded Investment	42
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	117	361	659
Non-accrual loans
Non-accrual loans	41	56
Covered Loan
Average investment in non-covered impaired loans
Average investment in non-covered impaired loans	46,248	115,085	$ 181,921
Non-accrual loans
Non-accrual loans		5,104
PCI loans
Non-covered impaired loans
Unpaid Contractual Principal balance	225,997	298,217
Recorded Investment with No Allowance	23,426	19,581
Recorded Investment with Allowance	69,646	104,736
Total Recorded Investment	93,072	124,317
Related Allowance	2,892	4,735
Non-accrual loans
Non-accrual loans	4,900	3,300
PCI loans | Non-owner occupied
Non-covered impaired loans
Unpaid Contractual Principal balance	42,668	20,155
Recorded Investment with No Allowance	5,549	7,770
Recorded Investment with Allowance	7,540	8,207
Total Recorded Investment	13,089	15,977
Related Allowance	1,125	722
PCI loans | Owner occupied
Non-covered impaired loans
Unpaid Contractual Principal balance	36,246	20,042
Recorded Investment with No Allowance	11,657	3,067
Recorded Investment with Allowance	2,967	6,115
Total Recorded Investment	14,624	9,182
Related Allowance	304	670
PCI loans | Commercial and industrial
Non-covered impaired loans
Unpaid Contractual Principal balance	27,403
Recorded Investment with No Allowance	5,491
Recorded Investment with Allowance	1,068
Total Recorded Investment	6,559
Related Allowance	72
PCI loans | Construction and land development
Non-covered impaired loans
Unpaid Contractual Principal balance	10,992	2,001
Recorded Investment with No Allowance	74	428
Recorded Investment with Allowance	390	1,010
Total Recorded Investment	464	1,438
Related Allowance	92	215
PCI loans | 1 - 4 family residential
Non-covered impaired loans
Unpaid Contractual Principal balance	106,503	7,001
Recorded Investment with No Allowance	646	2,053
Recorded Investment with Allowance	57,681	2,328
Total Recorded Investment	58,327	4,381
Related Allowance	1,299	324
PCI loans | Consumer
Non-covered impaired loans
Unpaid Contractual Principal balance	2,185	2,377
Recorded Investment with No Allowance	9	12
Recorded Investment with Allowance		115
Total Recorded Investment	9	127
Related Allowance		18
PCI loans | Covered Loan
Non-covered impaired loans
Unpaid Contractual Principal balance		226,889
Recorded Investment with No Allowance		2,641
Recorded Investment with Allowance		84,472
Total Recorded Investment		87,113
Related Allowance		2,697
Non-PCI
Non-covered impaired loans
Unpaid Contractual Principal balance	39,782	48,698
Recorded Investment with No Allowance	23,664	33,473
Recorded Investment with Allowance	2,275	6,369
Total Recorded Investment	25,939	39,842
Related Allowance	752	1,390
Non-PCI | Owner occupied
Non-covered impaired loans
Unpaid Contractual Principal balance	5,231	15,504
Recorded Investment with No Allowance	4,098	10,934
Recorded Investment with Allowance		3,686
Total Recorded Investment	4,098	14,620
Related Allowance		932
Non-PCI | Commercial and industrial
Non-covered impaired loans
Unpaid Contractual Principal balance	22,277	24,427
Recorded Investment with No Allowance	9,891	15,924
Recorded Investment with Allowance	1,740	2,072
Total Recorded Investment	11,631	17,996
Related Allowance	721	365
Non-PCI | Construction and land development
Non-covered impaired loans
Unpaid Contractual Principal balance	3,430	668
Recorded Investment with No Allowance	2,711
Recorded Investment with Allowance	535	611
Total Recorded Investment	3,246	611
Related Allowance	31	93
Non-PCI | 1 - 4 family residential
Non-covered impaired loans
Unpaid Contractual Principal balance	8,695	1,596
Recorded Investment with No Allowance	6,922	1,177
Total Recorded Investment	$ 6,922	1,177
Non-PCI | Consumer
Non-covered impaired loans
Unpaid Contractual Principal balance		162
Recorded Investment with No Allowance		56
Total Recorded Investment		56
Non-PCI | Covered Loan
Non-covered impaired loans
Unpaid Contractual Principal balance		6,341
Recorded Investment with No Allowance		5,382
Total Recorded Investment		$ 5,382

Loans Held for Investment and_6

Loans Held for Investment and Allowance for Loan Losses - TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018loan	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan
TDRs, Non-covered loans
Number of TDR loans granted | loan	0
Number of TDRs granted in preceding twelve months for which payment was at least 30 days past due | loan	0
AB Note | Minimum | PlainsCapital (the Bank)
TDRs, Non-covered loans
Number of loans into which a single loan may be reconfigured | loan	2
Payment Term Extension
TDRs, Non-covered loans
Number of TDR loans granted | loan		4	1
TDR at extension		$ 6,787	$ 1,196
TDR modification, end of period		$ 6,426	$ 944
Number of TDRs granted in preceding twelve months for which payment was at least 30 days past due | loan		2
TDR modifications, in which a payment was at least 30 days past due		$ 2,136
TDR with payment at least 30 days past due		$ 1,963
Owner occupied | Payment Term Extension
TDRs, Non-covered loans
Number of TDR loans granted | loan		2
TDR at extension		$ 4,775
TDR modification, end of period		$ 4,629
Number of TDRs granted in preceding twelve months for which payment was at least 30 days past due | loan		1
TDR modifications, in which a payment was at least 30 days past due		$ 1,481
TDR with payment at least 30 days past due		$ 1,352
Commercial and industrial | Payment Term Extension
TDRs, Non-covered loans
Number of TDR loans granted | loan		1	1
TDR at extension		$ 1,357	$ 1,196
TDR modification, end of period		$ 1,186	$ 944
Construction and land development | Payment Term Extension
TDRs, Non-covered loans
Number of TDR loans granted | loan		1
TDR at extension		$ 655
TDR modification, end of period		$ 611
Number of TDRs granted in preceding twelve months for which payment was at least 30 days past due | loan		1
TDR modifications, in which a payment was at least 30 days past due		$ 655
TDR with payment at least 30 days past due		$ 611

Loans Held for Investment and_7

Loans Held for Investment and Allowance for Loan Losses - Aging (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	$ 35,173	$ 26,984
Current Loans	6,802,213	6,304,497
Loans held for investment	6,930,458	6,455,798
Accruing Loans Past Due 90 Days or More	78	923
Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	14,120	12,384
Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	3,879	3,047
Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	17,174	11,553
PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	93,072	124,317
Commercial real estate
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	2,940,120	2,582,167
Commercial real estate | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	27,713	25,159
Non-owner occupied
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,373
Current Loans	1,708,160	1,473,942
Loans held for investment	1,722,622	1,489,919
Non-owner occupied | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,174
Non-owner occupied | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	199
Non-owner occupied | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	13,089	15,977
Owner occupied
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	5,537	2,637
Current Loans	1,197,337	1,080,429
Loans held for investment	1,217,498	1,092,248
Accruing Loans Past Due 90 Days or More	75
Owner occupied | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,364	442
Owner occupied | Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	4,173	2,195
Owner occupied | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	14,624	9,182
Commercial and industrial
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	13,892	8,728
Current Loans	1,488,000	1,336,591
Loans held for investment	1,508,451	1,351,418
Accruing Loans Past Due 90 Days or More	3	640
Commercial and industrial | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,792	2,702
Commercial and industrial | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,049	312
Commercial and industrial | Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	11,051	5,714
Commercial and industrial | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	6,559	6,099
Construction and land development
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	3,549	1,786
Current Loans	928,896	959,381
Loans held for investment	932,909	962,605
Construction 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	3,549	1,685
Construction 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		101
Construction and land development | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	464	1,438
Secured by Commercial Properties
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	932,909
Secured by Commercial Properties | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	464
1 - 4 family residential
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	10,421	3,198
Current Loans	610,515	421,778
Loans held for investment	679,263	429,357
1 - 4 family residential | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	5,987	1,490
1 - 4 family residential | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	2,484	1,290
1 - 4 family residential | Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	1,950	418
1 - 4 family residential | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	58,327	4,381
Mortgage warehouse
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans		0
Current Loans	243,806	329,787
Loans held for investment	243,806	329,787
Consumer
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	401	214
Current Loans	47,136	40,105
Loans held for investment	47,546	40,446
Consumer | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	254	194
Consumer | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans	147	20
Consumer | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment	9	127
Broker-dealer
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Current Loans	578,363	577,889
Loans held for investment	578,363	577,889
Covered Loan
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans		10,421
Current Loans		84,595
Loans held for investment		182,129
Accruing Loans Past Due 90 Days or More		283
Covered Loan | Financing Receivables, 30 to 59 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans		5,871
Covered Loan | Financing Receivables, 60 to 89 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans		1,324
Covered Loan | Financing Receivables, Equal to Greater than 90 Days Past Due
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Total Past Due Loans		3,226
Covered Loan | PCI loans
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Loans held for investment		87,113
PrimeLending | U.S. Government Agencies
Non-Covered Loans and Allowance for Non-Covered Loan Losses
Accruing Loans Past Due 90 Days or More	83,100	84,500
Unpaid principal balance loans past due 90 days or more	$ 84,000	$ 85,200

Loans Held for Investment and_8

Loans Held for Investment and Allowance for Loan Losses - Internal Risk Grades (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Internal risk grades of non-covered loans
Loans held for investment	$ 6,930,458	$ 6,455,798
Pass
Internal risk grades of non-covered loans
Loans held for investment	6,681,855	6,173,802
Special Mention
Internal risk grades of non-covered loans
Loans held for investment	17,796	27,616
Substandard
Internal risk grades of non-covered loans
Loans held for investment	137,735	130,063
Commercial real estate
Internal risk grades of non-covered loans
Loans held for investment	2,940,120	2,582,167
Non-owner occupied
Internal risk grades of non-covered loans
Loans held for investment	1,722,622	1,489,919
Non-owner occupied | Pass
Internal risk grades of non-covered loans
Loans held for investment	1,673,424	1,460,758
Non-owner occupied | Special Mention
Internal risk grades of non-covered loans
Loans held for investment		6,408
Non-owner occupied | Substandard
Internal risk grades of non-covered loans
Loans held for investment	36,109	6,776
Owner occupied
Internal risk grades of non-covered loans
Loans held for investment	1,217,498	1,092,248
Owner occupied | Pass
Internal risk grades of non-covered loans
Loans held for investment	1,175,225	1,030,611
Owner occupied | Special Mention
Internal risk grades of non-covered loans
Loans held for investment	2,083	1,239
Owner occupied | Substandard
Internal risk grades of non-covered loans
Loans held for investment	25,566	51,216
Commercial and industrial
Internal risk grades of non-covered loans
Loans held for investment	1,508,451	1,351,418
Commercial and industrial | Pass
Internal risk grades of non-covered loans
Loans held for investment	1,433,227	1,275,489
Commercial and industrial | Special Mention
Internal risk grades of non-covered loans
Loans held for investment	15,320	17,354
Commercial and industrial | Substandard
Internal risk grades of non-covered loans
Loans held for investment	53,345	52,476
Construction and land development
Internal risk grades of non-covered loans
Loans held for investment	932,909	962,605
Construction and land development | Pass
Internal risk grades of non-covered loans
Loans held for investment		958,157
Construction and land development | Special Mention
Internal risk grades of non-covered loans
Loans held for investment		2,259
Construction and land development | Substandard
Internal risk grades of non-covered loans
Loans held for investment		751
Secured by Commercial Properties
Internal risk grades of non-covered loans
Loans held for investment	932,909
Secured by Commercial Properties | Pass
Internal risk grades of non-covered loans
Loans held for investment	929,130
Secured by Commercial Properties | Substandard
Internal risk grades of non-covered loans
Loans held for investment	3,315
1 - 4 family residential
Internal risk grades of non-covered loans
Loans held for investment	679,263	429,357
1 - 4 family residential | Pass
Internal risk grades of non-covered loans
Loans held for investment	601,264	419,317
1 - 4 family residential | Special Mention
Internal risk grades of non-covered loans
Loans held for investment	393
1 - 4 family residential | Substandard
Internal risk grades of non-covered loans
Loans held for investment	19,279	5,659
Mortgage warehouse
Internal risk grades of non-covered loans
Loans held for investment	243,806	329,787
Mortgage warehouse | Pass
Internal risk grades of non-covered loans
Loans held for investment	243,806	329,787
Consumer
Internal risk grades of non-covered loans
Loans held for investment	47,546	40,446
Consumer | Pass
Internal risk grades of non-covered loans
Loans held for investment	47,416	40,211
Consumer | Substandard
Internal risk grades of non-covered loans
Loans held for investment	121	108
Broker-dealer
Internal risk grades of non-covered loans
Loans held for investment	578,363	577,889
Broker-dealer | Pass
Internal risk grades of non-covered loans
Loans held for investment	578,363	577,889
Covered Loan
Internal risk grades of non-covered loans
Loans held for investment		182,129
Covered Loan | Pass
Internal risk grades of non-covered loans
Loans held for investment		81,583
Covered Loan | Special Mention
Internal risk grades of non-covered loans
Loans held for investment		356
Covered Loan | Substandard
Internal risk grades of non-covered loans
Loans held for investment		13,077
PCI loans
Internal risk grades of non-covered loans
Loans held for investment	93,072	124,317
PCI loans | Commercial real estate
Internal risk grades of non-covered loans
Loans held for investment	27,713	25,159
PCI loans | Non-owner occupied
Internal risk grades of non-covered loans
Loans held for investment	13,089	15,977
PCI loans | Owner occupied
Internal risk grades of non-covered loans
Loans held for investment	14,624	9,182
PCI loans | Commercial and industrial
Internal risk grades of non-covered loans
Loans held for investment	6,559	6,099
PCI loans | Construction and land development
Internal risk grades of non-covered loans
Loans held for investment	464	1,438
PCI loans | Secured by Commercial Properties
Internal risk grades of non-covered loans
Loans held for investment	464
PCI loans | 1 - 4 family residential
Internal risk grades of non-covered loans
Loans held for investment	58,327	4,381
PCI loans | Consumer
Internal risk grades of non-covered loans
Loans held for investment	$ 9	127
PCI loans | Covered Loan
Internal risk grades of non-covered loans
Loans held for investment		$ 87,113

Loans Held for Investment and_9

Loans Held for Investment and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended									12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
Allowance for loan losses
Charge-off of single loan, currently in default									$ 24,500
Other noninterest income coverage provided by an insurance policy for forgery							$ 15,000
Changes in the allowance for loan losses
Balance, beginning of the year				$ 63,686						$ 63,686
Balance, beginning of the year				63,686				$ 54,599		63,686	$ 54,599	$ 46,947
Provision (recovery) for loan losses	$ 6,926	$ (371)	$ 340	(1,807)	$ 5,453	$ 1,260	$ 5,853	1,705		5,088	14,271	40,620
Loans charged off										(13,777)	(7,350)	(35,538)
Recoveries on charged off loans										4,489	2,166	2,570
Balance, end of the year	59,486				63,686					59,486	63,686
Balance, end of the year	59,486				63,686					59,486	63,686	54,599
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment													$ 17,891	$ 31,212
Loans collectively evaluated for impairment													6,819,495	6,300,269
Loans held for investment													6,930,458	6,455,798
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment, allowance													752	1,390
Loans collectively evaluated for impairment, allowance													55,842	57,561
Total loans, allowance	59,486			63,686	63,686					63,686	63,686		59,486	63,686
Total loans, allowance	59,486			63,686	63,686			54,599		63,686	54,599	46,947	59,486	63,686
Commercial real estate
Changes in the allowance for loan losses
Balance, beginning of the year				27,232						27,232
Balance, beginning of the year				26,413				22,262		26,413	22,262	15,669
Provision (recovery) for loan losses										668	4,320	7,785
Loans charged off										(800)	(193)	(1,243)
Recoveries on charged off loans											24	51
Balance, end of the year	27,100				27,232					27,100	27,232
Balance, end of the year					26,413						26,413	22,262
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment													3,909	13,782
Loans collectively evaluated for impairment													2,908,498	2,543,226
Loans held for investment													2,940,120	2,582,167
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment, allowance														932
Loans collectively evaluated for impairment, allowance													25,671	24,089
Total loans, allowance	27,100			27,232	27,232					27,232	27,232		27,100	27,232
Total loans, allowance				26,413	26,413			22,262		26,413	22,262	15,669		26,413
Commercial and industrial
Changes in the allowance for loan losses
Balance, beginning of the year				23,698						23,698
Balance, beginning of the year				23,674				21,369		23,674	21,369	19,845
Provision (recovery) for loan losses										6,750	6,725	33,369
Loans charged off										(12,741)	(6,253)	(33,776)
Recoveries on charged off loans										4,273	1,833	1,931
Balance, end of the year	21,980				23,698					21,980	23,698
Balance, end of the year					23,674						23,674	21,369
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment													10,741	16,819
Loans collectively evaluated for impairment													1,491,151	1,328,500
Loans held for investment													1,508,451	1,351,418
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment, allowance													721	365
Loans collectively evaluated for impairment, allowance													21,187	23,220
Total loans, allowance	21,980			23,698	23,698					23,698	23,698		21,980	23,698
Total loans, allowance				23,674	23,674			21,369		23,674	21,369	19,845		23,674
Construction and land development
Changes in the allowance for loan losses
Balance, beginning of the year				7,847						7,847
Balance, beginning of the year				7,844				7,002		7,844	7,002	6,064
Provision (recovery) for loan losses										(1,792)	848	938
Loans charged off											(13)
Recoveries on charged off loans										6	7
Balance, end of the year	6,061				7,847					6,061	7,847
Balance, end of the year					7,844						7,844	7,002
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment													3,241	611
Loans collectively evaluated for impairment													929,204	960,556
Loans held for investment													932,909	962,605
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment, allowance													31	93
Loans collectively evaluated for impairment, allowance													5,938	7,536
Total loans, allowance	6,061			7,847	7,847					7,847	7,847		6,061	7,847
Total loans, allowance				7,844	7,844			7,002		7,844	7,002	6,064		7,844
1 - 4 family residential
Changes in the allowance for loan losses
Balance, beginning of the year				4,245						4,245
Balance, beginning of the year				2,362				2,974		2,362	2,974	3,314
Provision (recovery) for loan losses										(292)	(701)	(488)
Loans charged off										(143)	(112)	(196)
Recoveries on charged off loans										146	201	344
Balance, end of the year	3,956				4,245					3,956	4,245
Balance, end of the year					2,362						2,362	2,974
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment													620,936	424,976
Loans held for investment													679,263	429,357
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance													2,657	2,038
Total loans, allowance	3,956			4,245	4,245					4,245	4,245		3,956	4,245
Total loans, allowance				2,362	2,362			2,974		2,362	2,974	3,314		2,362
Mortgage warehouse
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment													243,806	329,787
Loans held for investment													243,806	329,787
Consumer
Changes in the allowance for loan losses
Balance, beginning of the year				311						311
Balance, beginning of the year				311				424		311	424	314
Provision (recovery) for loan losses										(15)	16	190
Loans charged off										(93)	(208)	(203)
Recoveries on charged off loans										64	79	123
Balance, end of the year	267				311					267	311
Balance, end of the year					311						311	424
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment													47,537	40,319
Loans held for investment													47,546	40,446
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance													267	293
Total loans, allowance	267			311	311					311	311		267	311
Total loans, allowance				311	311			424		311	424	314		311
Broker-dealer
Changes in the allowance for loan losses
Balance, beginning of the year				353						353
Balance, beginning of the year				353				155		353	155	209
Provision (recovery) for loan losses										(231)	198	(53)
Loans charged off												(1)
Balance, end of the year	122				353					122	353
Balance, end of the year					353						353	155
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment													578,363	577,889
Loans held for investment													578,363	577,889
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance													122	353
Total loans, allowance	122			353	353					353	353		122	353
Total loans, allowance				353	353			155		353	155	209		353
Covered Loan
Changes in the allowance for loan losses
Balance, beginning of the year				2,729				413		2,729	413	1,532
Provision (recovery) for loan losses											2,865	(1,121)
Loans charged off											(571)	(119)
Recoveries on charged off loans											22	121
Balance, end of the year					2,729						2,729	413
Loan portfolio distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment														95,016
Loans held for investment														182,129
Allowance for loan losses distributed by portfolio segment and impairment methodology
Loans collectively evaluated for impairment, allowance														32
Total loans, allowance				2,729	2,729			$ 413		2,729	413	$ 1,532		2,729
PCI loans
Changes in the allowance for loan losses
Balance, beginning of the year				4,735						4,735
Balance, end of the year	2,892									2,892
Balance, end of the year					4,735						4,735
Loan portfolio distributed by portfolio segment and impairment methodology
Loans held for investment													93,072	124,317
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	2,892									2,892			2,892
Total loans, allowance				4,735	4,735					4,735	4,735			4,735
PCI loans | Commercial real estate
Changes in the allowance for loan losses
Balance, beginning of the year				1,392						1,392
Balance, end of the year	1,429									1,429
Balance, end of the year					1,392						1,392
Loan portfolio distributed by portfolio segment and impairment methodology
Loans held for investment													27,713	25,159
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	1,429									1,429			1,429
Total loans, allowance				1,392	1,392					1,392	1,392			1,392
PCI loans | Commercial and industrial
Changes in the allowance for loan losses
Balance, beginning of the year				89						89
Balance, end of the year	72									72
Balance, end of the year					89						89
Loan portfolio distributed by portfolio segment and impairment methodology
Loans held for investment													6,559	6,099
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	72									72			72
Total loans, allowance				89	89					89	89			89
PCI loans | Construction and land development
Changes in the allowance for loan losses
Balance, beginning of the year				215						215
Balance, end of the year	92									92
Balance, end of the year					215						215
Loan portfolio distributed by portfolio segment and impairment methodology
Loans held for investment													464	1,438
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	92									92			92
Total loans, allowance				215	215					215	215			215
PCI loans | 1 - 4 family residential
Changes in the allowance for loan losses
Balance, beginning of the year				324						324
Balance, end of the year	1,299									1,299
Balance, end of the year					324						324
Loan portfolio distributed by portfolio segment and impairment methodology
Loans held for investment													58,327	4,381
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance	$ 1,299									1,299			1,299
Total loans, allowance				324	324					324	324			324
PCI loans | Consumer
Changes in the allowance for loan losses
Balance, beginning of the year				18						18
Balance, end of the year					18						18
Loan portfolio distributed by portfolio segment and impairment methodology
Loans held for investment													9	127
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance				18	18					18	18			18
PCI loans | Covered Loan
Changes in the allowance for loan losses
Balance, beginning of the year				2,697						2,697
Balance, end of the year					2,697						2,697
Loan portfolio distributed by portfolio segment and impairment methodology
Loans held for investment														87,113
Allowance for loan losses distributed by portfolio segment and impairment methodology
Total loans, allowance				$ 2,697	$ 2,697					$ 2,697	$ 2,697			$ 2,697
Originated Financing Receivable
Allowance for loan losses
Rolling period considered for average net loss rate to calculate historical loss factors										3 years
Originated Financing Receivable | Minimum
Loan portfolio distributed by portfolio segment and impairment methodology
Loans individually evaluated for impairment													$ 500

Covered Assets and Indemnific_3

Covered Assets and Indemnification Asset - Indemnification Asset (Details) - PlainsCapital (the Bank) - USD ($) $ in Thousands	Oct. 17, 2018	Sep. 13, 2013
Termination Agreement With FDIC
Loans
FDIC, collections received	$ 6,260
FNB | Covered
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
FNB | Covered | Commercial Loan
Loans
Period of loss-sharing agreements in effect		5 years
Period of loss recovery provisions in effect		8 years
FNB | Covered | 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 Indemnific_4

Covered Assets and Indemnification Asset - Covered OREO (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Activity in covered OREO
Balance, beginning of period	$ 36,744	$ 51,642	$ 99,090
Additions to covered OREO	5,284	6,700	13,876
Dispositions of covered OREO	(10,145)	(17,866)	(42,843)
Valuation adjustments in the period	(2,027)	(3,732)	(18,481)
Transfer to other assets as a result of loss-share termination	$ (29,856)
Balance, end of period		$ 36,744	$ 51,642

Covered Assets and Indemnific_5

Covered Assets and Indemnification Asset - FDIC Indemnification Asset (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Activity in the FDIC Indemnification Asset
Balance, beginning of period		$ 29,340	$ 71,313	$ 91,648
FDIC Indemnification Asset accretion (amortization)		(6,509)	(17,083)	242
Transfers to due from FDIC and other			(24,890)	(20,577)
FDIC loss share termination		$ (22,831)
Balance, end of period			$ 29,340	$ 71,313
Termination Agreement With FDIC | Settlement Agreement with DOJ And HUD
Activity in the FDIC Indemnification Asset
FDIC loss share termination	$ (22,800)
Cash received from FDIC upon termination	6,260
Reversal of FDIC true-up accrual	$ 16,600

Cash and Due from Banks (Detail

Cash and Due from Banks (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and Due from Banks
Cash on hand	$ 47,621	$ 44,765
Clearings and collection items	83,949	92,271
Deposits at Federal Reserve Bank	425,770	248,442
Deposits at Federal Home Loan Bank	1,595	1,501
Deposits in FDIC-insured institutions	85,138	99,998
Cash and due from banks	644,073	486,977	$ 669,357
Interest-bearing deposits	$ 469,400	$ 302,200

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Premises and Equipment
Premises and equipment, gross	$ 406,865	$ 318,755
Less accumulated depreciation and amortization	(169,492)	(141,178)
Premises and equipment, net	237,373	177,577
Assets recorded under capital leases	7,800	8,400
Accumulated amortization for assets under capital leases	3,600	3,300
Rental income	1,400	1,800	$ 2,000
Depreciation and amortization expense	33,100	34,600	$ 35,400
Land and premises
Premises and Equipment
Premises and equipment, gross	147,783	111,203
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	$ 259,082	$ 207,552

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets - Goodwill and Other (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2007	Sep. 30, 2018	Dec. 31, 2018	Aug. 01, 2018	Dec. 31, 2017	Nov. 30, 2012
Goodwill and Other Intangible Assets
Carrying amount of goodwill			$ 291,435		$ 251,808
Other intangible assets, net			$ 38,005		$ 36,432
NLC
Goodwill and Other Intangible Assets
Estimated fair value of indefinite lived intangible assets related to state licenses acquired as a part of the NLC acquisition	$ 3,000
Goodwill in connection with acquisition	$ 24,000
PPC
Goodwill and Other Intangible Assets
Carrying amount of goodwill						$ 227,800
BORO
Goodwill and Other Intangible Assets
Carrying amount of goodwill				$ 39,627
Goodwill in connection with acquisition		$ 39,600

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Carrying value of intangible assets subject to amortization
Gross Intangible Assets	$ 105,580	$ 95,580
Accumulated Amortization	(70,575)	(62,148)
Net Intangible Assets	35,005	33,432
Amortization expense related to intangible assets	8,426	8,263	$ 10,174
Core Deposits
Carrying value of intangible assets subject to amortization
Gross Intangible Assets	48,930	38,930
Accumulated Amortization	(31,062)	(26,381)
Net Intangible Assets	$ 17,868	$ 12,549
Core Deposits | Minimum
Carrying value of intangible assets subject to amortization
Estimated Useful Life	4 years	4 years
Core Deposits | Maximum
Carrying value of intangible assets subject to amortization
Estimated Useful Life	12 years	12 years
Trademarks and Trade Names
Carrying value of intangible assets subject to amortization
Gross Intangible Assets	$ 20,000	$ 20,000
Accumulated Amortization	(8,844)	(7,860)
Net Intangible Assets	$ 11,156	$ 12,140
Trademarks and Trade Names | Minimum
Carrying value of intangible assets subject to amortization
Estimated Useful Life	15 years	15 years
Trademarks and Trade Names | Maximum
Carrying value of intangible assets subject to amortization
Estimated Useful Life	20 years	20 years
Noncompete Agreements
Carrying value of intangible assets subject to amortization
Gross Intangible Assets	$ 11,650	$ 11,650
Accumulated Amortization	$ (11,650)	(10,529)
Net Intangible Assets		$ 1,121
Noncompete Agreements | Minimum
Carrying value of intangible assets subject to amortization
Estimated Useful Life	4 years	4 years
Noncompete Agreements | Maximum
Carrying value of intangible assets subject to amortization
Estimated Useful Life	6 years	6 years
Customer contracts and relationships
Carrying value of intangible assets subject to amortization
Gross Intangible Assets	$ 21,400	$ 21,400
Accumulated Amortization	(15,465)	(13,906)
Net Intangible Assets	$ 5,935	$ 7,494
Customer contracts and relationships | Minimum
Carrying value of intangible assets subject to amortization
Estimated Useful Life	12 years	12 years
Customer contracts and relationships | Maximum
Carrying value of intangible assets subject to amortization
Estimated Useful Life	14 years	14 years
Agent relationships
Carrying value of intangible assets subject to amortization
Gross Intangible Assets	$ 3,600	$ 3,600
Accumulated Amortization	(3,554)	(3,472)
Net Intangible Assets	$ 46	$ 128
Estimated Useful Life	13 years	13 years

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Estimated aggregate future amortization expense for intangible assets
2,019	$ 7,851
2,020	6,539
2,021	5,313
2,022	3,987
2,023	2,860
Thereafter	8,455
Net Intangible Assets	$ 35,005	$ 33,432

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - MSR - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Change in fair value of mortgage servicing rights
Balance, beginning of year	$ 54,714	$ 61,968	$ 52,285
Additions	25,028	16,401	23,381
Sales	(9,303)	(17,499)	(7,586)
Changes in fair value: Due to changes in model inputs or assumptions	159	(1,722)	(153)
Changes in fair value: Due to customer payoffs	(4,496)	(4,434)	(5,959)
Balance, end of year	66,102	54,714	$ 61,968
Mortgage loans serviced for others	$ 5,086,461	$ 4,762,042
MSR asset as a percentage of serviced mortgage loans	1.30%	1.15%
Key Assumptions
Weighted average constant prepayment rate (as a percent)	10.51%	10.93%
Weighted average discount rate (as a percent)	11.11%	11.03%
Weighted average life (in years)	7 years 1 month 6 days	6 years 10 months 24 days

Mortgage Servicing Rights - Sen

Mortgage Servicing Rights - Sensitivity Analysis (Details) - MSR - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Sensitivity analysis
Constant prepayment rate: Impact of 10% adverse change	$ (2,512)	$ (1,948)
Constant prepayment rate: Impact of 20% adverse change	(4,980)	(3,839)
Discount rate: Impact of 10% adverse change	(2,677)	(2,135)
Discount rate: Impact of 20% adverse change	(5,139)	(4,103)
Contractually specified servicing fees, late fees and ancillary fees	$ 23,300	$ 20,700	$ 23,800

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deposits
Noninterest-bearing demand	$ 2,560,750	$ 2,411,849
Interest-bearing:
NOW accounts	1,358,196	1,202,752
Money market	2,725,541	2,222,555
Brokered - money market	5,000	101,624
Demand	393,685	411,771
Savings	184,700	218,812
Time	1,308,284	1,313,482
Brokered - time		95,274
Total deposits	8,536,156	$ 7,978,119
Time deposits that meet or exceed FDIC insurance limit	655,600
Scheduled maturities of interest-bearing time deposits
2,019	991,402
2,020	237,452
2,021	21,269
2,022	13,327
2023 and thereafter	44,834
Time deposits	$ 1,308,284

Short-term Borrowings (Details)

Short-term Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Short-term borrowings
Short-term borrowings	$ 1,065,807	$ 1,206,424
Hilltop Broker-Dealers
Short-term borrowings
Weighted average interest rate (as a percent)	3.35%	2.27%
Federal funds purchased.
Short-term borrowings
Short-term borrowings	$ 100,100	$ 101,775
Securities sold under agreement to repurchase.
Short-term borrowings
Short-term borrowings	576,707	539,149
FHLB notes
Short-term borrowings
Short-term borrowings	200,000	250,000
Average balance during the year	$ 214,110	$ 390,616	$ 361,475
Average interest rate during the year	2.09%	1.08%	0.46%
Maximum month-end balance during the year	$ 675,000	$ 850,000	$ 1,000,000
Average interest rate at end of year (as a percent)	2.65%	1.30%
Amount of available collateral	$ 3,400,000
FHLB notes | Maximum
Short-term borrowings
Maturity term of debt	365 days
Short-term bank loans.
Short-term borrowings
Short-term borrowings	$ 189,000	$ 315,500
Federal funds purchased and securities sold under agreements to repurchase.
Short-term borrowings
Average balance during the year	$ 701,622	$ 588,847	$ 368,012
Average interest rate during the year	1.96%	1.06%	0.58%
Maximum month-end balance during the year	$ 849,568	$ 904,704	$ 520,715
Average interest rate at end of year (as a percent)	2.43%	1.21%
Securities underlying the agreements at end of period: Carrying value	$ 587,609	$ 581,636
Securities underlying the agreements at end of period: Estimated fair value	$ 618,231	$ 598,300

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	Apr. 09, 2015	Dec. 31, 2018	Dec. 31, 2016	Dec. 31, 2017	Apr. 28, 2015
Debt Instrument
Notes payable		$ 228,872		$ 208,809
Series B Preferred Stock
Debt Instrument
Aggregate liquidation value					$ 114,100
Unpaid dividend					$ 400
Senior Notes due April 2025
Debt Instrument
Notes payable		148,607		148,455
Unamortized discount		1,393		1,545
Period before maturity for redemption of Senior Notes			3 months
Percentage of redemption price			100.00%
Interest rate (as a percent)			5.00%
Senior Notes due April 2025 | Private Placement
Debt Instrument
Aggregate principal amount	$ 150,000
Net proceeds from the offering, after deducting estimated fee and expenses and the initial purchaser’ discounts	$ 148,000
Interest rate (as a percent)	5.00%
FHLB notes
Debt Instrument
Notes payable		4,391		19,402
Unamortized premium		$ 222		436
Weighted average interest rate		3.69%
Debt instrument, collateral		$ 3,400,000
FHLB notes | Minimum
Debt Instrument
Interest rate (as a percent)		2.88%
FHLB notes | Maximum
Debt Instrument
Interest rate (as a percent)		5.70%
NLIC note payable due May 2033
Debt Instrument
Notes payable		$ 10,000		10,000
NLIC note payable due May 2033 | three-month LIBOR
Debt Instrument
Margin on interest rate (as a percent)		4.10%
Interest rate at year end (as a percent)		6.89%
NLIC note payable due September 2033
Debt Instrument
Notes payable		$ 10,000		10,000
NLIC note payable due September 2033 | three-month LIBOR
Debt Instrument
Margin on interest rate (as a percent)		4.05%
Interest rate at year end (as a percent)		6.84%
ASIC note payable due April 2034
Debt Instrument
Notes payable		$ 7,500		7,500
ASIC note payable due April 2034 | three-month LIBOR
Debt Instrument
Margin on interest rate (as a percent)		4.05%
Interest rate at year end (as a percent)		6.84%
Insurance company line of credit due December 31, 2018
Debt Instrument
Notes payable				1,000
Margin on interest rate (as a percent)		3.25%
Interest rate at year end (as a percent)		4.22%
Ventures Management line of credit
Debt Instrument
Notes payable		$ 48,374		$ 12,452
Maximum borrowing capacity		$ 110,000
Single unaffiliated bank
Debt Instrument
Interest rate (as a percent)		2.75%
Maximum borrowing capacity		$ 50,000
Outstanding borrowing		$ 48,400
Calculated index rate (as a percent)		4.16%
Bank
Debt Instrument
Maximum borrowing capacity		$ 60,000
NLIC | Insurance Notes Payable
Debt Instrument
Statutory surplus of NLIC and ASIC		30,000
ASIC | Insurance Notes Payable
Debt Instrument
Statutory surplus of NLIC and ASIC		$ 15,000
NLC | Insurance Notes Payable
Debt Instrument
Debt instrument repurchase minimum beneficial ownership interest percentage acquired		50.00%
Percentage of debt instrument agreement price at which each holder has right to require entity to purchase notes expressed as minimum percentage of outstanding principal		100.00%
NLC | Insurance company line of credit due December 31, 2018
Debt Instrument
Maximum borrowing capacity		$ 7,500

Notes Payable - Scheduled Matur

Notes Payable - Scheduled Maturities (Details) $ in Thousands	Dec. 31, 2018USD ($)
Scheduled maturities
2,019	$ 48,374
2,020	2,389
2,021	462
2,022	157
Thereafter	178,661
Total Notes Payable	$ 230,043

Junior Subordinated Debenture_3

Junior Subordinated Debentures and Trust Preferred Securities (Details)	12 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2016USD ($)	Feb. 22, 2008USD ($)	Sep. 17, 2003USD ($)	Mar. 26, 2003USD ($)	Jul. 31, 2001USD ($)
Junior subordinated debentures and trust preferred securities
Floating rate preferred securities issued by the trusts		$ 4,139,000
PPC
Junior subordinated debentures and trust preferred securities
Number of statutory trusts owned by subsidiary | item	4
PPC | Special-purpose entity, parent not primary beneficiary | Debentures | Four statutory trusts
Junior subordinated debentures and trust preferred securities
Stated term	30 years
Average interest rate (as a percent)	5.95%
PPC | Special-purpose entity, parent not primary beneficiary | Debentures | Four statutory trusts | three-month LIBOR
Junior subordinated debentures and trust preferred securities
Margin on interest rate	3-month LIBOR
Average spread on variable rate basis (as a percent)	3.22%
PPC | Special-purpose entity, parent not primary beneficiary | Debentures | P C C Statutory Trust I
Junior subordinated debentures and trust preferred securities
Amount						$ 18,042,000
PPC | Special-purpose entity, parent not primary beneficiary | Debentures | P C C Statutory Trust I I
Junior subordinated debentures and trust preferred securities
Amount					$ 18,042,000
PPC | Special-purpose entity, parent not primary beneficiary | Debentures | P C C Statutory Trust I I I
Junior subordinated debentures and trust preferred securities
Amount				$ 15,464,000
PPC | Special-purpose entity, parent not primary beneficiary | Debentures | PCC Statutory Trust IV
Junior subordinated debentures and trust preferred securities
Amount			$ 15,464,000
PPC | Special-purpose entity, parent not primary beneficiary | Floating rate preferred securities | Four statutory trusts
Junior subordinated debentures and trust preferred securities
Floating rate preferred securities issued by the trusts	$ 65,000,000
PPC | Special-purpose entity, parent not primary beneficiary | Common Class A | Four statutory trusts
Junior subordinated debentures and trust preferred securities
Floating rate preferred securities issued by the trusts	$ 2,012,000
PPC | CONNECTICUT
Junior subordinated debentures and trust preferred securities
Number of statutory trusts owned by subsidiary, which were formed under laws of state | item	3
PCC Statutory Trust IV | Delaware
Junior subordinated debentures and trust preferred securities
Number of statutory trusts owned by subsidiary, which were formed under laws of state | item	1

Income Taxes - Provision (Detai

Income Taxes - Provision (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current:
Federal									$ 19,504	$ 63,769	$ 82,970
State									2,349	5,440	10,181
Total									21,853	69,209	93,151
Deferred:
Federal									11,352	40,176	(6,732)
State									1,845	757	(2,958)
Total									13,197	40,933	(9,690)
Income tax provision (benefit)	$ 8,928	$ 7,600	$ 11,034	$ 7,488	$ 51,350	$ 18,003	$ 25,754	$ 15,035	$ 35,050	$ 110,142	$ 83,461
Statutory Federal income tax rate (as a percent)									21.00%	35.00%	35.00%
Reconciliation of the income tax provision (benefit) and the amount that would be computed by applying the statutory federal income tax rate to income (loss) before income taxes
Computed tax at federal statutory rate									$ 33,763	$ 85,150	$ 80,992
Tax effect of:
Tax Legislation										28,363
Non-taxable acquisition adjustment									263	(6,682)
Nondeductible transaction costs									86	774	2,608
Nondeductible expenses									2,864	3,089	3,301
State income taxes									3,313	4,028	4,708
Tax-exempt income, net									(1,432)	(2,758)	(2,850)
Valuation allowance											(2,094)
Minority interest									(900)	(210)	(718)
Share-based compensation benefit									(273)	(412)	(2,391)
Prior year return to provision adjustment									(1,682)	(943)	251
Other									(952)	(257)	(346)
Income tax provision (benefit)	$ 8,928	$ 7,600	$ 11,034	$ 7,488	$ 51,350	$ 18,003	$ 25,754	$ 15,035	$ 35,050	$ 110,142	$ 83,461

Income Taxes - Deferred Taxes (

Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Net operating and built-in-loss carryforward	$ 9,656	$ 11,697
Purchase accounting adjustment - loans	19,673	24,883
Allowance for loan losses	14,137	15,105
Compensation and benefits	14,865	15,860
Legal and other reserves	3,483	4,359
Foreclosed property	3,974	5,859
Other	15,142	11,961
Deferred tax assets	80,930	89,724
Deferred tax liabilities:
Premises and equipment	12,344	10,288
FDIC Indemnification Asset		2,960
Intangible assets	9,326	8,994
Derivatives	4,169	4,527
Loan servicing	15,761	13,184
Other	7,074	8,157
Deferred Tax Liabilities	48,674	48,110
Net deferred tax asset	$ 32,256	$ 41,614

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes
Non-recurring, non-cash charge as of result of the Tax Legislation	$ 28,400		$ 28,400
Statutory Federal income tax rate (as a percent)		21.00%	35.00%	35.00%
Effective income tax rate (as a percent)		21.80%	45.30%	36.10%
Net operating loss carryforwards	29,900	$ 20,900	$ 29,900
Net operating loss carryforwards, tax effected basis	6,300	4,400	6,300
Recognized built-in loss carryforward ("RBIL")		$ 20,500
Realized built-in-loss recognition period		5 years
Net unrealized built-in-loss carryforward		$ 9,400
Net unrealized built-in-loss recognition period		5 years
Valuation allowance on deferred tax assets for net operating loss carryforwards	$ 0	$ 0	0
SWS
Income Taxes
Reversal of valuation allowance			$ (2,200)

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Uncertain tax positions
Unrecognized tax benefits if recognized would favorably impact the effective tax rate	$ 2,500	$ 1,200
Unrecognized Tax Benefits
Balance, beginning of year	1,574	1,704	$ 644
Increases related to tax positions taken during a prior year	770	476	844
Decreases related to tax positions taken during a prior year		(1,273)
Increases related to tax positions taken during the current year	712	667	216
Balance, end of year	$ 3,056	$ 1,574	$ 1,704

Employee Benefits (Details)

Employee Benefits (Details) $ in Millions	Jan. 01, 2015USD ($)	Nov. 30, 2012USD ($)item	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2001USD ($)
Employee Benefits
Matching contributions			$ 15	$ 13.9	$ 15.1
Liability recorded upon completion of merger		$ 8.9
Number of executive officers of PlainsCapital with retention agreements | item		2
Liability, including interest			9.2	9.1
Flexible premium universal life insurance
Amount of insurance purchased						$ 15
Carrying value of the policies			26.5	25.8
Income related to the policies			$ 0.6	$ 0.6	$ 0.6
SWS Plan
Employee Benefits
Deferred compensation plan, matching percentage	15.00%
Deferred compensation plan, vesting period	4 years
Contributions allowed under plan	$ 0

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Related Party Transactions
Aggregate remaining lease obligation	$ 133,349
Diamond A Administration Company LLC
Related Party Transactions
Ownership interest (as a percent)	16.80%
Diamond A Financial LP
Related Party Transactions
Ownership interest (as a percent)	16.80%
PlainsCapital (the Bank)
Related Party Transactions
Deposits of related parties held	$ 126,300	$ 151,000
Co-Chief Executive Officer | Diamond A Administration Company LLC
Related Party Transactions
Ownership interest (as a percent)	46.00%
Co-Chief Executive Officer | Diamond A Financial LP
Related Party Transactions
Ownership interest (as a percent)	49.00%
Diamond A Administration Company LLC | Sublease Agreement
Related Party Transactions
Services and office space cost per month	$ 24
Directors Executive Officers and Affiliates | PlainsCapital (the Bank)
Related Party Transactions
Loans to related parties	1,200	34,600
Total principal additions to loans	0
Total principal payments	33,500
Lessor | PlainsCapital (the Bank) | Lease Agreements
Related Party Transactions
Future minimum payments due annually through 2028	500
Aggregate remaining lease obligation	5,000
Related Party Company | PlainsCapital (the Bank)
Related Party Transactions
Loan Purchases	$ 1,200	$ 2,100

Related Party Transactions - Hi

Related Party Transactions - Hilltop Plaza Investment (Details) $ in Millions	1 Months Ended	12 Months Ended
	Jul. 31, 2018USD ($)aitem	Dec. 31, 2018USD ($)ft²tenantitem
Jeremy Ford | Diamond Ground, LLC
Commitments and Contingencies
Ownership interest (as a percent)		10.20%
Wife of Corey Prestidge | Diamond Ground, LLC
Commitments and Contingencies
Ownership interest (as a percent)		10.10%
Hilltop Plaza
Commitments and Contingencies
Construction Loan		$ 41
Net Rentable Area | ft²		119,000
Costs incurred and capitalized		$ 27.8
Hilltop and the Bank | Hilltop Plaza
Commitments and Contingencies
Area of building subject to lease | ft²		72,000
Number of office and retail lease | item		2
Total base rent		$ 35
Rent abated		9 months
Hilltop | Hilltop Plaza
Commitments and Contingencies
Term of contract		129 months
PlainsCapital (the Bank) | Hilltop Plaza
Commitments and Contingencies
Term of contract		129 months
Hillcrest Land LLC
Commitments and Contingencies
Acres of land | a	1.7
Payments to acquire land	$ 38.5
Primary Beneficiary | item	0
Ground lease term		99 years
Number of tenants | tenant		3
Ground lease commences		18 months
Ground lease		$ 1.8
Annual ground lease increase (as percent)		1.00%
Hilltop Investments I, LLC
Commitments and Contingencies
Investment contribution	$ 19.3
Diamond Ground, LLC
Commitments and Contingencies
Investment contribution	$ 19.3
Park Plaza
Commitments and Contingencies
Leasehold interest		50.00%
Park Plaza | Hilltop Plaza
Commitments and Contingencies
Ownership interest (as percent)		50.00%
HTH Hillcrest Project LLC
Commitments and Contingencies
Leasehold interest		25.00%
HTH Hillcrest Project LLC | Hilltop Plaza
Commitments and Contingencies
Ownership interest (as percent)		25.00%
Cash contributions		$ 5.3
Diamond Hillcrest
Commitments and Contingencies
Leasehold interest		25.00%
Diamond Hillcrest | Hilltop Plaza
Commitments and Contingencies
Ownership interest (as percent)		25.00%

Commitments and Contingencies -

Commitments and Contingencies - Legal (Details)	Oct. 23, 2018USD ($)	May 30, 2017USD ($)$ / sharesshares	Jan. 01, 2015$ / shares	Nov. 30, 2012item	Jun. 30, 2017USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Reserve for Indemnification Liability:
Number of executive officers | item				2
Retention Agreement
Reserve for Indemnification Liability:
Number of executive officers | item				2
Retention Agreement | Chief Executive Officer One of Plains Capital Bank
Reserve for Indemnification Liability:
Retention agreement term				3 years
Renewal period of contract				1 year
Period from date of agreement at which initial renewal of agreement may occur				2 years
Retention Agreement | Chief Executive Officer Two of Plains Capital Bank
Reserve for Indemnification Liability:
Retention agreement term				2 years
Renewal period of contract				1 year
SWS
Commitments and Contingencies
Fair value acquisition price (in dollars per share) | $ / shares			$ 6.92
Consideration paid in cash | $ / shares			$ 1.94
Conversion of common stock			0.2496
Representation and Warranty Claims
Roll-forward of claims activity for loans put-back to the mortgage origination segment
Balance, beginning of period						$ 33,702,000	$ 40,669,000	$ 57,298,000
Claims made						22,156,000	42,330,000	21,410,000
Claims resolved with no payment						(13,169,000)	(37,439,000)	(19,696,000)
Repurchases						(8,250,000)	(6,490,000)	(4,164,000)
Indemnification payments						(655,000)	(5,368,000)	(14,179,000)
Balance, end of period						33,784,000	33,702,000	40,669,000
Reserve for Indemnification Liability:
Total						33,702,000	40,669,000	57,298,000	$ 33,784,000	$ 33,702,000
Indemnification Agreement
Commitments and Contingencies
Provision for indemnification losses						3,200,000	4,000,000	4,600,000
Roll-forward of claims activity for loans put-back to the mortgage origination segment
Balance, beginning of period						23,472,000	18,239,000	16,640,000
Additions for new sales						3,170,000	3,962,000	4,638,000
Repurchases						(612,000)	(466,000)	(392,000)
Early payment defaults						(368,000)	(228,000)	(241,000)
Indemnification payments						(13,687,000)	(713,000)	(2,482,000)
Change in reserves for loans sold in prior years						(1,274,000)	2,678,000	76,000
Balance, end of period						10,701,000	23,472,000	18,239,000
Reserve for Indemnification Liability:
Specific claims									676,000	646,000
Incurred but not reported claims									10,025,000	22,826,000
Total						23,472,000	$ 18,239,000	$ 16,640,000	10,701,000	23,472,000
Shareholder Lawsuits | SWS
Commitments and Contingencies
Fair value acquisition price (in dollars per share) | $ / shares		$ 6.38
Consideration paid in cash | $ / shares		$ 6.38
Number of shares of SWS common stock held by purported shareholders | shares		7,438,453
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
Settlement Agreement with DOJ And HUD | Indemnification Agreement
Commitments and Contingencies
Payments for Legal Settlements						$ 13,500,000
Settlement To DOJ
Commitments and Contingencies
Payments for Legal Settlements	$ 6,750,000
Settlement To HUD
Commitments and Contingencies
Payments for Legal Settlements	$ 6,750,000
PlainsCapital (the Bank)
Commitments and Contingencies
Aggregate amount of federal funds purchased and sold for which the Bank acts as an agent on behalf of certain correspondent banks									$ 0	$ 3,000,000

Commitments and Contingencies_2

Commitments and Contingencies - Lease Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies
Rental expense under the operating leases	$ 42,900	$ 43,500	$ 41,900
Future minimum lease payments under operating leases
2,019	36,171
2,020	29,109
2,021	21,058
2,022	16,386
2,023	12,361
Thereafter	18,264
Total minimum lease payments	133,349
Future minimum lease payments under capital leases
2,019	1,186
2,020	1,197
2,021	1,212
2,022	1,241
2,023	1,280
Thereafter	3,460
Total minimum lease payments	9,576
Amount representing interest	(1,221)
Present value of minimum lease payments	$ 8,355
Minimum
Commitments and Contingencies
Remaining terms of noncancelable operating leases	1 year
Remaining term of capital leases	5 years
Maximum
Commitments and Contingencies
Remaining terms of noncancelable operating leases	10 years
Remaining term of capital leases	9 years

Financial Instruments with Of_2

Financial Instruments with Off-Balance Sheet Risk (Details) $ in Millions	Dec. 31, 2018USD ($)
Unused commitments to extend credit
Financial Instruments with Off-Balance Sheet Risk
Outstanding commitments	$ 2,400
Standby letters of credit
Financial Instruments with Off-Balance Sheet Risk
Outstanding commitments	$ 85

Stock-Based Compensation - Plan

Stock-Based Compensation - Plan Information (Details) - 2012 Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017	Dec. 31, 2015	Sep. 30, 2012
Stock based compensation
Number of awards approved for grant (in shares)						4,000,000
Common stock remaining available for issuance (in shares)	1,246,880
Compensation expense	$ 9.1	$ 10.8	$ 10.5
Restricted Stock Awards
Stock based compensation
Number of shares outstanding			4,000	0	453,000
RSUs
Stock based compensation
Number of shares outstanding	1,270,000	1,318,000	1,456,000		875,000
Vesting period	3 years
Transfer restrictions period	1 year
Board of Directors
Stock based compensation
Common shares granted to members of board of directors as compensation for director services	30,400	16,859	21,224

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU Activity (Details) - 2012 Plan - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
RSUs
Number of shares outstanding
Balance at the beginning of the period ( in shares)	1,318	1,456	875
Granted (in shares)	510	450	598
Vested/Released (in shares)	(406)	(451)	(7)
Forfeited (in shares)	(152)	(137)	(10)
Balance at the end of the period ( in shares)	1,270	1,318	1,456
Weighted Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share)	$ 20.89	$ 19.83	$ 21.22
Grant date fair value (in dollars per share)	24	26.37	17.78
Vested/Released (in dollars per share)	19.92	22.48	22.22
Forfeited (in dollars per share)	20.97	22.41	20.70
Balance at the end of the period (in dollars per share)	$ 22.44	$ 20.89	$ 19.83
Restricted Stock Awards
Number of shares outstanding
Balance at the beginning of the period ( in shares)		4	453
Vested/Released (in shares)		(4)	(447)
Forfeited (in shares)			(2)
Balance at the end of the period ( in shares)			4
Weighted Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share)		$ 19.95	$ 13.50
Vested/Released (in dollars per share)		$ 19.95	13.41
Forfeited (in dollars per share)			19.72
Balance at the end of the period (in dollars per share)			$ 19.95

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - 2012 Plan - USD ($) $ in Millions	12 Months Ended			36 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
RSUs
Stock based compensation
Vested RSUs which require deferral of share settlement and statutory tax obligations	17,481			17,481
Number of shares awarded (in shares)	510,000	450,000	598,000
Number of awards subject to time-based vesting (in shares)	1,010,075
Number of awards vesting upon achievement of performance goals (in shares)	258,773
Vesting period	3 years
Unrecognized compensation expense	$ 12.8			$ 12.8
Weighted average period for unrecognized compensation expense (in years)	1 year 3 months
RSUs and RSAs
Stock based compensation
Vested/Released number of shares withheld to satisfy employee statutory tax obligations (in shares)				327,387
Certain Executives and Key Employees | RSUs
Stock based compensation
Number of shares awarded (in shares)	486,155
Number of awards subject to time-based vesting (in shares)	366,827
Number of awards vesting upon achievement of performance goals (in shares)	84,626
Vesting period	3 years

Regulatory Matters - Minimum Ca

Regulatory Matters - Minimum Capital Requirements (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
PlainsCapital (the Bank)
Tier 1 capital (to average assets)
Actual Amount	$ 1,183,447	$ 1,147,527
Actual Ratio (as a percent)	12.47%	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	$ 1,183,447	$ 1,147,527
Actual Ratio (as a percent)	13.90%	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	$ 1,183,447	$ 1,147,527
Actual Ratio (as a percent)	13.90%	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	$ 1,245,177	$ 1,212,793
Actual Ratio (as a percent)	14.63%	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	$ 1,680,364	$ 1,688,358
Actual Ratio (as a percent)	12.53%	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	$ 1,634,978	$ 1,639,009
Actual Ratio (as a percent)	16.58%	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	$ 1,680,364	$ 1,688,358
Actual Ratio (as a percent)	17.04%	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	$ 1,722,602	$ 1,738,325
Actual Ratio (as a percent)	17.47%	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	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of equity capital to Tier 1 and total capital (as defined)
Total equity capital	$ 1,949,470	$ 1,912,081
Net Capital
Amount required to be segregated in cash and securities for the benefit of customers	133,993	186,578	$ 180,993
Hilltop Securities
Net Capital
Net capital	193,995
Less required net capital	10,898
Excess net capital	$ 183,097
Net capital as a percentage of aggregate debit items	35.60%
Net capital in excess of 5% aggregate debt items	$ 166,750
HTS Independent Network
Net Capital
Net capital	3,073
Less required net capital	250
Excess net capital	2,823
Hilltop Broker-Dealers
Net Capital
Amount required to be segregated in cash and securities for the benefit of customers	134,000	186,600
PlainsCapital (the Bank)
Reconciliation of equity capital to Tier 1 and total capital (as defined)
Total equity capital	1,459,985	1,379,402
Add:
Net unrealized holding losses (gains) on securities available for sale and held in trust	7,988	3,520
Deduct:
Goodwill and other disallowed intangible assets	(282,238)	(235,395)
Other	(2,288)
Common equity Tier 1 capital (as defined)	1,183,447	1,147,527
Deduct:
Tier 1 capital (as defined)	1,183,447	1,147,527
Add: Allowable Tier 2 capital
Allowance for loan losses, including unfunded commitments	61,730	65,266
Deduct:
Total capital (as defined)	1,245,177	1,212,793
Hilltop
Reconciliation of equity capital to Tier 1 and total capital (as defined)
Total equity capital	1,949,470	1,912,081
Add:
Net unrealized holding losses (gains) on securities available for sale and held in trust	8,627	394
Deduct:
Goodwill and other disallowed intangible assets	(319,942)	(273,466)
Other	(3,177)
Common equity Tier 1 capital (as defined)	1,634,978	1,639,009
Add: Tier 1 capital
Trust preferred securities	65,000	65,000
Deduct:
Additional Tier 1 capital deductions	(19,614)	(15,651)
Tier 1 capital (as defined)	1,680,364	1,688,358
Add: Allowable Tier 2 capital
Allowance for loan losses, including unfunded commitments	61,852	65,618
Deduct:
Additional Tier 2 capital deduction	(19,614)	(15,651)
Total capital (as defined)	$ 1,722,602	$ 1,738,325

Regulatory Matters - Insurance

Regulatory Matters - Insurance Subsidiaries (Details) - Texas Department of Insurance - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
NLIC
Insurance
Statutory capital and surplus	$ 78,637	$ 93,812
Statutory net income (loss)	9,114	(1,785)	$ 13,043
ASIC
Insurance
Statutory capital and surplus	17,908	22,778
Statutory net income (loss)	$ (1,304)	$ 742	$ 2,124

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 24, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 31, 2019	Jul. 31, 2018	Jan. 31, 2018
Stock repurchase program
Cash dividends declared per common share	$ 0.08	$ 0.07	$ 0.07	$ 0.07	$ 0.07	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.28	$ 0.24	$ 0.06
Cash dividends paid per common share										$ 0.28	$ 0.24	$ 0.06
Cash dividends paid										$ 26,700	$ 23,100	$ 5,800
Repurchase common stock authorized amount													$ 50,000	$ 100,000	$ 50,000
Payments to repurchase shares										$ 58,990	$ 27,388
Repurchase of common stock (in shares)										2,729,568	1,057,656
Average price (per share)										$ 21.61	$ 25.87
PlainsCapital (the Bank)
Stock repurchase program
Earnings available for dividend payments without regulatory approval		$ 163,500								$ 163,500
NLC
Stock repurchase program
Maximum dividends that may be paid without regulatory approval		$ 11,700								$ 11,700

Other Noninterest Income and _3

Other Noninterest Income and Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other noninterest income:
Net gains from Hilltop Broker-Dealer trading activities	$ 41,543	$ 70,922	$ 86,383
Service charges on depositor accounts	14,484	14,429	14,162
Trust fees	9,807	7,485	6,782
Net gains from trading securities portfolio	6,197	20,210	15,926
Insurance commissions	5,211	4,819	4,206
Insurance direct billing and other policy fees	3,930	4,353	4,818
Revenue from check and stored value cards	2,966	3,169	5,036
Rent and other income from other real estate owned	764	1,280	1,461
SWS Merger appraisal proceeding		11,757
FDIC indemnification asset accretion			242
Other	11,403	25,546	15,248
Other noninterest income	96,305	163,970	154,264
Other noninterest expense:
Software and Information technology	56,986	45,891	38,421
Brokerage commissions and fees	20,674	22,884	24,654
Mortgage origination and servicing	19,705	22,353	25,736
Unreimbursed loan closing costs	16,798	20,428	31,234
Business development	15,913	18,619	19,738
Travel, meals and entertainment	12,389	12,839	13,683
Amortization of intangible assets	8,426	8,263	10,174
FDIC Indemnification Asset amortization	6,509	17,083
Office supplies	6,123	7,806	8,719
Funding fees	5,414	8,464	7,451
OREO and repossessed assets	3,885	4,004	13,438
FDIC "true-up"	250	2,100	8,750
Other	51,183	51,362	49,523
Other noninterest expense	$ 224,255	$ 242,096	$ 251,521

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
PrimeLending
Derivative financial instruments
Net gain (loss) due to changes in the fair value of the derivative instruments	$ (12,800)	$ (13,100)	$ 8,000
Hilltop Broker-Dealers
Derivative financial instruments
Net gain (loss) due to changes in the fair value of the derivative instruments	(400)	8,100	(23,400)
PlainsCapital (the Bank)
Derivative financial instruments
Net gain (loss) due to changes in the fair value of the derivative instruments		300	$ 400
Interest Rate Lock Commitments
Derivative financial instruments
Notional Amount	677,267	850,850
Estimated Fair Value	17,421	18,851
Customer-based written options
Derivative financial instruments
Notional Amount	31,200	21,637
Estimated Fair Value	(49)	38
Customer-based purchased options
Derivative financial instruments
Notional Amount	31,200	21,637
Estimated Fair Value	49	(38)
Commitments to Purchase MBSs
Derivative financial instruments
Notional Amount	2,359,630	2,831,635
Estimated Fair Value	10,467	(921)
Commitments to Sell MBSs
Derivative financial instruments
Notional Amount	3,711,477	4,963,498
Estimated Fair Value	(19,315)	2,972
Commitments to Sell MBSs | PrimeLending
Derivative financial instruments
Cash collateral advanced to offset net derivative liability	11,900	800
Interest rate swaps
Derivative financial instruments
Notional Amount	15,104	25,971
Estimated Fair Value	82	51
U.S. Treasury bond futures and options
Derivative financial instruments
Notional Amount	367,200	214,500
Eurodollar futures
Derivative financial instruments
Notional Amount	104,000
Treasury bond futures and options and Eurodollar futures | PrimeLending and Hilltop Broker-Dealers
Derivative financial instruments
Cash collateral advanced to offset net derivative liability	$ 3,400	$ 3,200

Balance Sheet Offsetting - Asse

Balance Sheet Offsetting - Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Reverse repurchase agreements:
Net Amounts of Assets Presented in the Balance Sheet	$ 61,611	$ 186,537
Total
Gross Amounts of Recognized Assets	1,437,764	1,576,972
Net Amounts of Assets Presented in the Balance Sheet	1,437,764	1,576,972
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(1,378,980)	(1,517,138)
Net Amount	58,784	59,834
Institutional counterparties
Securities borrowed:
Gross Amounts of Recognized Assets	1,365,547	1,386,821
Net Amounts of Assets Presented in the Balance Sheet	1,365,547	1,386,821
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(1,307,121)	(1,327,536)
Net Amount	58,426	59,285
Interest Rate Options | Customer counterparties
Derivatives:
Gross Amounts of Recognized Assets	49	38
Net Amounts of Assets Presented in the Balance Sheet	49	38
Gross Amounts Not Offset in the Balance Sheet
Net Amounts of Assets Presented in the Balance Sheet	49	38
Interest rate swaps | Institutional counterparties
Securities borrowed:
Gross Amounts of Recognized Assets	88
Net Amounts of Assets Presented in the Balance Sheet	88
Gross Amounts Not Offset in the Balance Sheet
Net Amount	88
Reverse repurchase agreements | Institutional counterparties
Reverse repurchase agreements:
Gross Amounts of Recognized Assets	61,611	186,537
Net Amounts of Assets Presented in the Balance Sheet	61,611	186,537
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(61,390)	(186,026)
Net Amount	221	511
Forward MBS Derivatives | Institutional counterparties
Derivatives:
Gross Amounts of Recognized Assets	10,469	3,576
Net Amounts of Assets Presented in the Balance Sheet	10,469	3,576
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	$ (10,469)	$ (3,576)

Balance Sheet Offsetting - Liab

Balance Sheet Offsetting - Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Total
Gross Amounts of Recognized Liabilities	$ 1,782,166	$ 1,757,011
Gross Amounts Offset in the Balance Sheet	(15)	(1,257)
Net Amounts of Liabilities Presented in the Balance Sheet	1,782,151	1,755,754
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(1,720,468)	(1,698,701)
Net Amount	61,683	57,053
Institutional counterparties
Securities loaned:
Gross Amounts of Recognized Liabilities	1,186,073	1,215,093
Net Amounts of Liabilities Presented in the Balance Sheets	1,186,073	1,215,093
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(1,136,033)	(1,157,198)
Net Amount	50,040	57,895
Institutional counterparties | Interest Rate Options
Derivatives:
Gross Amounts of Recognized Liabilities	49	38
Net Amounts of Liabilities Presented in the Balance Sheet	49	38
Gross Amounts Not Offset in the Balance Sheet
Net Amount	49	38
Institutional counterparties | Interest rate swaps
Derivatives:
Gross Amounts of Recognized Liabilities	6	35
Gross Amounts Offset in the Balance Sheet		(86)
Net Amounts of Liabilities Presented in the Balance Sheet	6	(51)
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments		(1,059)
Net Amount	6	(1,110)
Institutional counterparties | Repurchase agreements
Repurchase agreements:
Gross Amounts of Recognized Liabilities	533,441	409,058
Net Amounts of Liabilities Presented in the Balance Sheet	533,441	409,058
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(533,441)	(409,058)
Net Amount	0	0
Institutional counterparties | Forward MBS Derivatives
Derivatives:
Gross Amounts of Recognized Liabilities	19,331	2,696
Gross Amounts Offset in the Balance Sheet	(15)	(1,171)
Net Amounts of Liabilities Presented in the Balance Sheet	19,316	1,525
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(7,728)	(1,295)
Net Amount	11,588	230
Customer counterparties | Repurchase agreements
Repurchase agreements:
Gross Amounts of Recognized Liabilities	43,266	130,091
Net Amounts of Liabilities Presented in the Balance Sheet	43,266	130,091
Gross Amounts Not Offset in the Balance Sheet
Financial Instruments	(43,266)	(130,091)
Net Amount	$ 0	$ 0

Balance Sheet Offsetting - Secu

Balance Sheet Offsetting - Secured Borrowings (Details) $ in Thousands	Dec. 31, 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	$ 1,762,780	$ 1,754,242
Gross amount of recognized liabilities for repurchase agreements and securities lending in offsetting disclosure above	1,762,780	1,754,242
Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Total borrowings	1,762,780	1,754,242
US Treasury and agency securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements transactions	131,848	181,915
US Treasury and agency securities | Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements transactions	131,848	181,915
Assets-backed securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements transactions	444,859	357,234
Assets-backed securities | Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements transactions	444,859	357,234
Corporate securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Securities lending transactions	113	11,499
Corporate securities | Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Securities lending transactions	113	11,499
Equity securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Securities lending transactions	1,185,960	1,203,594
Equity securities | Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Securities lending transactions	$ 1,185,960	$ 1,203,594

Broker-Dealer and Clearing Or_3

Broker-Dealer and Clearing Organization Receivables and Payables (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Receivables:
Securities borrowed	$ 1,365,547	$ 1,386,821
Securities failed to deliver	16,300	25,491
Trades in process of settlement	32,993	29,412
Other	25,447	22,654
Total receivables	1,440,287	1,464,378
Payables:
Securities loaned	1,186,073	1,215,093
Correspondents	29,311	30,160
Securities failed to receive	75,015	37,864
Other	4,526	4,446
Total Payables	$ 1,294,925	$ 1,287,563

Deferred Policy Acquisition C_3

Deferred Policy Acquisition Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Activity in deferred acquisition costs
Balance, beginning of year	$ 16,988	$ 18,603	$ 19,874
Acquisition expenses capitalized	34,328	34,934	37,231
Amortization charged to income	(34,683)	(36,549)	(38,502)
Balance, end of year	$ 16,633	$ 16,988	$ 18,603

Reserve for Losses and Loss A_3

Reserve for Losses and Loss Adjustment Expenses - Reserve (Details) - USD ($) $ in Thousands	Dec. 31, 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	$ 16,498	$ 17,470
Reinsurance recoverables on unpaid losses	3,214	11,495
Unallocated LAE	840	1,248
Reserve for unpaid losses and LAE balance, gross	$ 20,552	$ 30,213

Reserve for Losses and Loss A_4

Reserve for Losses and Loss Adjustment Expenses - Activity (Details) $ in Thousands	Dec. 31, 2018USD ($)claim	Dec. 31, 2017USD ($)
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 401,767
Total incurred	418,173
All outstanding reserves prior to 2014, net of reinsurance	92
Reserve for unpaid losses and allocated LAE, net of reinsurance	16,498	$ 17,470
2,014
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	83,808
Total incurred	83,894
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 22
Cumulative Number of Reported Claims | claim	18,832
2,015
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 86,549
Total incurred	86,961
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 171
Cumulative Number of Reported Claims | claim	20,611
2,016
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 83,169
Total incurred	84,076
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 401
Cumulative Number of Reported Claims | claim	20,201
2,017
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 86,319
Total incurred	88,025
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 1,047
Cumulative Number of Reported Claims | claim	20,757
2,018
Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Total paid	$ 61,922
Total incurred	75,217
Total of IBNR Reserves Plus Expected Development on Reported claims	$ 6,250
Cumulative Number of Reported Claims | claim	15,296

Reinsurance Activity - Credit R

Reinsurance Activity - Credit Risk (Details) $ in Thousands	Dec. 31, 2018USD ($)
Reinsurance activity
Balances due from Companies	$ 5,400
Allowance for uncollectible accounts	$ 0
Threshold percentage for disclosure of reinsurance recoverables	5.00%
Total
Reinsurance activity
Balances due from Companies	$ 2,611
R and V Versicherung AG
Reinsurance activity
Balances due from Companies	817
AM Best, A Rating | Partner Reinsurance
Reinsurance activity
Balances due from Companies	812
AM Best, A Rating | Aspen Bermuda
Reinsurance activity
Balances due from Companies	276
AM Best, A+ Rating | Arch Reinsurance Co
Reinsurance activity
Balances due from Companies	$ 706

Reinsurance Activity - Effects

Reinsurance Activity - Effects of Reinsurance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earned
Net premiums	$ 136,751	$ 142,298	$ 155,545
Effect of reinsurance on incurred losses
Net loss and LAE incurred	79,347	94,701	89,243
Property and casualty
Written
Premiums from direct business	129,611	137,091	152,970
Reinsurance assumed	12,917	12,150	11,338
Reinsurance ceded	(8,749)	(12,280)	(14,962)
Net premiums	133,779	136,961	149,346
Earned
Premiums from direct business	133,112	144,990	159,884
Reinsurance assumed	12,516	11,767	11,024
Reinsurance ceded	(8,877)	(14,459)	(15,363)
Net premiums	136,751	142,298	155,545
Effect of reinsurance on incurred losses
Loss and LAE incurred	76,464	138,358	113,494
Reinsurance recoverables	2,883	(43,657)	(24,251)
Net loss and LAE incurred	$ 79,347	$ 94,701	$ 89,243

Reinsurance Activity - Coverage

Reinsurance Activity - Coverage (Details) $ in Millions	Jan. 01, 2019USD ($)	Jul. 01, 2017	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)item
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
NLC | Catastrophic coverage
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)	37.50%		17.50%
Number of significant catastrophe experienced | item			0		0
Renewal period of reinsurance contract		2 years
Number of tornado, hail and wind storms experienced | item			11	16	15
Incurred losses			$ 26.1	$ 38.1	$ 44
Reinsurance recoverable favorable (loss)				$ 4.6	$ 10
Reinsurance recoverable subscription level				100.00%	91.00%
Reinstatement premiums			0.1	$ 1.4	$ 0.6
NLC | Catastrophic coverage | Sub-catastrophic
Reinsurance activity
Retention amount	$ 15
NLC | Catastrophic coverage | Hurricane Harvey
Reinsurance activity
Total gross losses and LAE incurred			16.4
Net exposure retention			5.9
Reinstatement premiums			$ 1.4
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
NLIC | Catastrophic coverage
Reinsurance activity
Retention amount			8
ASIC | Catastrophic coverage
Reinsurance activity
Retention amount			1.5
ASIC | Underlying Coverage
Reinsurance activity
Retention amount			2
Reinsurance in excess of retention			$ 6

Segment and Related Informati_3

Segment and Related Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2018USD ($)segment	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Information about the revenues, operating results, goodwill and assets
Number of reportable segments | segment									4
Net interest income (expense)	$ 117,715	$ 110,341	$ 104,848	$ 103,420	$ 108,692	$ 104,980	$ 115,976	$ 92,100	$ 436,324	$ 421,748	$ 397,531
Provision (recovery) for loan losses	6,926	(371)	340	(1,807)	5,453	1,260	5,853	1,705	5,088	14,271	40,620
Noninterest income	238,516	269,697	279,434	235,143	290,456	298,477	344,692	271,439	1,022,790	1,205,064	1,286,965
Noninterest expense	310,819	335,711	338,517	308,202	328,670	353,842	366,251	320,492	1,293,249	1,369,255	1,412,471
Income before income taxes	38,486	$ 44,698	$ 45,425	$ 32,168	65,025	$ 48,355	$ 88,564	$ 41,342	160,777	243,286	231,405
Goodwill	291,435				251,808				291,435	251,808
Total assets	13,683,572				13,365,786				13,683,572	13,365,786
Operating segment | Banking
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)									370,732	366,581	363,083
Provision (recovery) for loan losses									5,319	14,073	40,673
Noninterest income									43,588	59,904	52,579
Noninterest expense									256,577	248,404	244,715
Income before income taxes									152,424	164,008	130,274
Goodwill	247,368				207,741				247,368	207,741
Total assets	10,004,971				9,558,718				10,004,971	9,558,718
Operating segment | Broker-Dealer
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)									50,878	43,735	31,172
Provision (recovery) for loan losses									(231)	198	(53)
Noninterest income									301,714	368,421	385,766
Noninterest expense									320,241	347,314	377,524
Income before income taxes									32,582	64,644	39,467
Goodwill	7,008				7,008				7,008	7,008
Total assets	3,213,115				3,394,911				3,213,115	3,394,911
Operating segment | Mortgage Origination
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)									1,485	(915)	(11,589)
Noninterest income									551,860	632,388	704,126
Noninterest expense									540,474	581,899	614,741
Income before income taxes									12,871	49,574	77,796
Goodwill	13,071				13,071				13,071	13,071
Total assets	1,627,134				1,937,327				1,627,134	1,937,327
Operating segment | Insurance Segment
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)									3,025	2,861	3,164
Noninterest income									142,565	151,382	164,841
Noninterest expense									139,921	158,354	146,601
Income before income taxes									5,669	(4,111)	21,404
Goodwill	23,988				23,988				23,988	23,988
Total assets	253,513				291,639				253,513	291,639
Corporate
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)									(9,176)	(10,069)	(7,257)
Noninterest income									4,893	12,798	2
Noninterest expense									36,628	33,983	29,938
Income before income taxes									(40,911)	(31,254)	(37,193)
Total assets	2,243,182				2,106,978				2,243,182	2,106,978
All Other and Eliminations.
Information about the revenues, operating results, goodwill and assets
Net interest income (expense)									19,380	19,555	18,958
Noninterest income									(21,830)	(19,829)	(20,349)
Noninterest expense									(592)	(699)	(1,048)
Income before income taxes									(1,858)	425	$ (343)
Total assets	$ (3,658,343)				$ (3,923,787)				$ (3,658,343)	$ (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								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Basic earnings per share:
Income attributable to Hilltop									$ 121,441	$ 132,544	$ 145,894
Less: income applicable to participating shares											(6)
Net earnings available to Hilltop common stockholders									$ 121,441	$ 132,544	$ 145,888
Weighted average shares outstanding - basic									94,969	97,137	98,404
Basic earnings per common share (in dollars per share)	$ 0.30	$ 0.38	$ 0.35	$ 0.25	$ 0.14	$ 0.31	$ 0.64	$ 0.27	$ 1.28	$ 1.36	$ 1.48
Diluted earnings per share:
Income attributable to Hilltop									$ 121,441	$ 132,544	$ 145,894
Weighted average shares outstanding - basic									94,969	97,137	98,404
Effect of potentially dilutive securities (in shares)									98	216	225
Weighted average shares outstanding - diluted									95,067	97,353	98,629
Diluted earnings per common share (in dollars per share)	$ 0.30	$ 0.38	$ 0.35	$ 0.25	$ 0.14	$ 0.31	$ 0.63	$ 0.27	$ 1.28	$ 1.36	$ 1.48

Financial Statements of Paren_2

Financial Statements of Parent - Operations and Comp Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
Interest expense	$ 39,987	$ 37,985	$ 35,192	$ 29,940	$ 24,973	$ 23,964	$ 20,330	$ 16,141	$ 143,104	$ 85,408	$ 58,423
Income tax benefit	8,928	7,600	11,034	7,488	51,350	18,003	25,754	15,035	35,050	110,142	83,461
Net income	$ 29,558	$ 37,098	$ 34,391	$ 24,680	$ 13,675	$ 30,352	$ 62,810	$ 26,307	125,727	133,144	147,944
Other comprehensive income (loss), net									(5,632)	(879)	(2,144)
Comprehensive income									120,095	132,265	145,800
Bank Holding Entities and Corporate Activities
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
Dividends from bank subsidiaries									42,000	53,000	87,826
Dividends from nonbank subsidiaries									37,500	41,500
Investment income									3,089	312	382
Interest expense									12,265	10,381	7,639
Other income									4,893	12,798	2
General and administrative expense									36,628	33,983	29,938
Income before income taxes, equity in undistributed earnings of subsidiaries and preferred stock activity									38,589	63,246	50,633
Income tax benefit									(7,767)	(15,577)	(10,077)
Equity in undistributed earnings of subsidiaries									79,371	54,321	87,234
Net income									125,727	133,144	147,944
Other comprehensive income (loss), net									(5,656)	(879)	(2,144)
Comprehensive income									$ 120,071	$ 132,265	$ 145,800

Financial Statements of Paren_3

Financial Statements of Parent - Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investment in subsidiaries:
Other assets	$ 580,362	$ 615,531
Total assets	13,683,572	13,365,786
Liabilities and Stockholders' Equity
Notes payable	228,872	208,809
Stockholders' equity	1,949,470	1,912,081
Total liabilities and stockholders' equity	13,683,572	13,365,786
Bank Holding Entities and Corporate Activities
Assets
Cash and cash equivalents	54,405	96,764	$ 118,290
Investment in subsidiaries:
Bank subsidiaries	1,459,984	1,340,093	1,304,917
Nonbank subsidiaries	483,593	603,631	609,539
Other assets	245,200	66,490	3
Total assets	2,243,182	2,106,978	2,032,749
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses	58,319	46,442	13,929
Notes payable	215,620	148,455	148,311
Stockholders' equity	1,969,243	1,912,081	1,870,509
Total liabilities and stockholders' equity	$ 2,243,182	$ 2,106,978	$ 2,032,749

Financial Statements of Paren_4

Financial Statements of Parent - Cash flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Activities:
Net income	$ 29,558	$ 37,098	$ 34,391	$ 24,680	$ 13,675	$ 30,352	$ 62,810	$ 26,307	$ 125,727	$ 133,144	$ 147,944
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized gains on equity investments									2,486
Deferred income taxes									13,197	40,933	(9,690)
Net cash provided by (used in) operating activities									389,540	(320,718)	(160,968)
Investing Activities:
Purchases of equity securities									(933)
Purchases of premises and equipment and other assets									(68,079)	(31,152)	(41,941)
Net cash used in investing activities									(289,667)	(357,961)	(493,561)
Financing Activities:
Proceeds from issuances of common stock											4,139
Payments to repurchase common stock									(58,990)	(27,388)
Dividends paid on common stock									(26,698)	(23,140)	(5,801)
Net cash contributed from noncontrolling interest									17,411	(1,885)	790
Other, net									(813)	(674)	(868)
Net cash provided by financing activities									4,633	480,882	698,228
Net change in cash and cash equivalents									104,506	(197,797)	43,699
Cash, cash equivalents and restricted cash, beginning of period				673,960				871,757	673,960	871,757	828,058
Cash, cash equivalents and restricted cash, end of period	778,466				673,960				778,466	673,960	871,757
Supplemental Schedule of Non-Cash Activities:
Construction in progress related to build-to-suit lease obligations									27,802
Bank Holding Entities and Corporate Activities
Operating Activities:
Net income									125,727	133,144	147,944
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries									(79,371)	(54,321)	(87,234)
Net realized gains on equity investments									(5,336)
Deferred income taxes									217	2,511	(2,063)
Other, net									19,368	(57,380)	20,812
Net cash provided by (used in) operating activities									60,605	23,954	79,459
Investing Activities:
Reimbursement from nonbank subsidiaries											6,000
Capital contribution to bank and bank holding company subsidiaries										(10,000)
Capital contribution to nonbank subsidiaries											(20,000)
Purchases of equity securities									(12,492)
Purchases of premises and equipment and other assets									(42,390)	(4,241)	(98)
Proceeds from sales of equity investments									16,174
Net cash used in investing activities									(38,708)	(14,241)	(14,098)
Financing Activities:
Proceeds from issuances of common stock											4,139
Payments to repurchase common stock									(58,990)	(27,388)
Dividends paid on common stock									(26,698)	(23,140)	(5,801)
Net cash contributed from noncontrolling interest									19,250
Other, net									2,182	19,289	(951)
Net cash provided by financing activities									(64,256)	(31,239)	(2,613)
Net change in cash and cash equivalents									(42,359)	(21,526)	62,748
Cash, cash equivalents and restricted cash, beginning of period				$ 96,764				$ 118,290	96,764	118,290	55,542
Cash, cash equivalents and restricted cash, end of period	$ 54,405				$ 96,764				54,405	$ 96,764	$ 118,290
Supplemental Schedule of Non-Cash Activities:
Construction in progress related to build-to-suit lease obligations									27,802
Note receivable contributed from nonbank subsidiary									$ 111,653

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Recent Accounting Pronouncements
Accumulated other comprehensive income (loss)		$ (8,627)		$ (394)
Retained earnings		466,737		384,545
Equity securities		19,679		21,241
Other Assets
Recent Accounting Pronouncements
Other equity investments		35,800		$ 38,700
ASU 2016-01 | Other Assets
Recent Accounting Pronouncements
Other equity investments		$ 35,800
Adjustment | ASU 2018-02 | Early adoption
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
Forecast adjustment | ASU 2016-02 | Minimum
Recent Accounting Pronouncements
Operating lease liabilities	$ 120,000
Operating Lease, Right-of-Use Asset	110,000
Forecast adjustment | ASU 2016-02 | Maximum
Recent Accounting Pronouncements
Operating lease liabilities	125,000
Operating Lease, Right-of-Use Asset	$ 115,000
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09
Recent Accounting Pronouncements
Retained earnings			$ 0

Selected Quarterly Financial _3

Selected Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 24, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Selected Quarterly Financial Information (Unaudited)
Interest income		$ 157,702	$ 148,326	$ 140,040	$ 133,360	$ 133,665	$ 128,944	$ 136,306	$ 108,241	$ 579,428	$ 507,156	$ 455,954
Interest expense		39,987	37,985	35,192	29,940	24,973	23,964	20,330	16,141	143,104	85,408	58,423
Net interest income		117,715	110,341	104,848	103,420	108,692	104,980	115,976	92,100	436,324	421,748	397,531
Provision (recovery) for loan losses		6,926	(371)	340	(1,807)	5,453	1,260	5,853	1,705	5,088	14,271	40,620
Noninterest income		238,516	269,697	279,434	235,143	290,456	298,477	344,692	271,439	1,022,790	1,205,064	1,286,965
Noninterest expense		310,819	335,711	338,517	308,202	328,670	353,842	366,251	320,492	1,293,249	1,369,255	1,412,471
Income before income taxes		38,486	44,698	45,425	32,168	65,025	48,355	88,564	41,342	160,777	243,286	231,405
Income tax expense		8,928	7,600	11,034	7,488	51,350	18,003	25,754	15,035	35,050	110,142	83,461
Net income		29,558	37,098	34,391	24,680	13,675	30,352	62,810	26,307	125,727	133,144	147,944
Less: Net income attributable to noncontrolling interest		1,443	1,293	1,311	239	247	146	334	(127)	4,286	600	2,050
Income attributable to Hilltop		$ 28,115	$ 35,805	$ 33,080	$ 24,441	$ 13,428	$ 30,206	$ 62,476	$ 26,434	$ 121,441	$ 132,544	$ 145,894
Earnings per common share:
Basic (in dollars per share)		$ 0.30	$ 0.38	$ 0.35	$ 0.25	$ 0.14	$ 0.31	$ 0.64	$ 0.27	$ 1.28	$ 1.36	$ 1.48
Diluted (in dollars per share)		0.30	0.38	0.35	0.25	0.14	0.31	0.63	0.27	1.28	1.36	1.48
Cash dividends declared per common share	$ 0.08	$ 0.07	$ 0.07	$ 0.07	$ 0.07	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.28	$ 0.24	$ 0.06

Schedule I - Insurance Incurr_2

Schedule I - Insurance Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net Of Reinsurance (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)claim	Dec. 31, 2017USD ($)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
Total incurred	$ 418,173
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
Total paid	401,767
All outstanding reserves prior to 2014, net of reinsurance	92
Reserve for unpaid losses and allocated loss adjustment expenses, net of reinsurance	16,498	$ 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	83,894
Total of incurred but not reported reserves plus expected development on reported claims	$ 22
Cumulative Number of Reported Claims | claim	18,832
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
2,018	83,808
Total paid	83,808
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	86,961
Total of incurred but not reported reserves plus expected development on reported claims	$ 171
Cumulative Number of Reported Claims | claim	20,611
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2,015	$ 71,820
2,016	82,940
2,017	85,507
2,018	86,549
Total paid	86,549
2,016
Incurred losses and allocated loss adjustment expenses, net of reinsurance
2,016	84,771
2,017	85,189
Total incurred	84,076
Total of incurred but not reported reserves plus expected development on reported claims	$ 401
Cumulative Number of Reported Claims | claim	20,201
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2,016	$ 71,543
2,017	81,682
2,018	83,169
Total paid	83,169
2,017
Incurred losses and allocated loss adjustment expenses, net of reinsurance
2,017	87,899
Total incurred	88,025
Total of incurred but not reported reserves plus expected development on reported claims	$ 1,047
Cumulative Number of Reported Claims | claim	20,757
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2,017	$ 77,675
2,018	86,319
Total paid	86,319
2,018
Incurred losses and allocated loss adjustment expenses, net of reinsurance
Total incurred	75,217
Total of incurred but not reported reserves plus expected development on reported claims	$ 6,250
Cumulative Number of Reported Claims | claim	15,296
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2,018	$ 61,922
Total paid	$ 61,922