Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 28, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-31987 | |
Entity Registrant Name | Hilltop HoldingsĀ Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 84-1477939 | |
Entity Address, Address Line One | 6565 Hillcrest Avenue | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75205 | |
City Area Code | 214 | |
Local Phone Number | 855-2177 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | HTH | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 78,960,605 | |
Entity Central Index Key | 0001265131 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 2,463,111 | $ 1,062,560 |
Federal funds sold | 406 | 386 |
Assets segregated for regulatory purposes | 269,506 | 290,357 |
Securities purchased under agreements to resell | 155,908 | 80,319 |
Securities: | ||
Trading, at fair value | 609,813 | 694,255 |
Available for sale, at fair value, net (amortized cost of $1,996,995 and $1,435,919, respectively) | 1,994,183 | 1,462,205 |
Held to maturity, at amortized cost, net (fair value of $288,112 and $326,671, respectively) | 277,419 | 311,944 |
Equity, at fair value | 221 | 140 |
Total securities | 2,881,636 | 2,468,544 |
Loans held for sale | 2,108,878 | 2,788,386 |
Loans held for investment, net of unearned income | 7,552,926 | 7,693,141 |
Allowance for credit losses | (109,512) | (149,044) |
Loans held for investment, net | 7,443,414 | 7,544,097 |
Broker-dealer and clearing organization receivables | 1,419,652 | 1,404,727 |
Premises and equipment, net | 210,026 | 211,595 |
Operating lease right-of-use assets | 115,942 | 105,757 |
Mortgage servicing rights | 110,931 | 143,742 |
Other assets | 526,339 | 555,983 |
Goodwill | 267,447 | 267,447 |
Other intangible assets, net | 16,455 | 20,364 |
Total assets | 17,989,651 | 16,944,264 |
Deposits: | ||
Noninterest-bearing | 4,433,148 | 3,612,384 |
Interest-bearing | 7,699,014 | 7,629,935 |
Total deposits | 12,132,162 | 11,242,319 |
Broker-dealer and clearing organization payables | 1,496,923 | 1,368,373 |
Short-term borrowings | 747,040 | 695,798 |
Securities sold, not yet purchased, at fair value | 113,064 | 79,789 |
Notes payable | 395,804 | 381,987 |
Operating lease liabilities | 134,296 | 125,450 |
Junior subordinated debentures | 67,012 | |
Other liabilities | 468,020 | 632,889 |
Total liabilities | 15,487,309 | 14,593,617 |
Commitments and contingencies (see Notes 14 and 15) | ||
Hilltop stockholders' equity: | ||
Common stock, $0.01 par value, 125,000,000 shares authorized; 78,959,055 and 82,184,893 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 790 | 822 |
Additional paid-in capital | 1,270,272 | 1,317,929 |
Accumulated other comprehensive income | 367 | 17,763 |
Retained earnings | 1,204,307 | 986,792 |
Deferred compensation employee stock trust, net | 751 | 771 |
Employee stock trust (5,806 and 6,930 shares, at cost, at September 30, 2021 and December 31, 2020, respectively) | (116) | (138) |
Total Hilltop stockholders' equity | 2,476,371 | 2,323,939 |
Noncontrolling interests | 25,971 | 26,708 |
Total stockholders' equity | 2,502,342 | 2,350,647 |
Total liabilities and stockholders' equity | $ 17,989,651 | $ 16,944,264 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Available for sale, amortized cost | $ 1,996,995 | $ 1,435,919 |
Held to maturity, fair value | $ 288,112 | $ 326,671 |
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 | 78,959,055 | 82,184,893 |
Common stock, shares outstanding | 78,959,055 | 82,184,893 |
Employee stock trust, shares | 5,806 | 6,930 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest income: | ||||
Loans, including fees | $ 99,769 | $ 104,955 | $ 308,208 | $ 323,983 |
Securities borrowed | 8,585 | 10,705 | 53,143 | 36,915 |
Securities: | ||||
Taxable | 12,341 | 11,035 | 33,717 | 38,428 |
Tax-exempt | 2,687 | 1,687 | 7,127 | 4,836 |
Other | 1,796 | 1,446 | 4,723 | 5,472 |
Total interest income | 125,178 | 129,828 | 406,918 | 409,634 |
Interest expense: | ||||
Deposits | 5,303 | 10,700 | 19,220 | 37,771 |
Securities loaned | 6,519 | 8,729 | 44,350 | 30,802 |
Short-term borrowings | 2,400 | 2,346 | 6,786 | 9,457 |
Notes payable | 5,465 | 4,904 | 15,515 | 11,090 |
Junior subordinated debentures | 419 | 608 | 1,558 | 2,163 |
Other | (18) | 641 | 801 | 1,557 |
Total interest expense | 20,088 | 27,928 | 88,230 | 92,840 |
Net interest income | 105,090 | 101,900 | 318,688 | 316,794 |
Provision for (reversal of) credit losses | (5,819) | (602) | (39,648) | 99,973 |
Net interest income after provision for (reversal of) credit losses | 110,909 | 102,502 | 358,336 | 216,821 |
Noninterest income: | ||||
Net gains from sale of loans and other mortgage production income | 203,152 | 307,896 | 669,857 | 753,699 |
Mortgage loan origination fees | 38,780 | 47,681 | 124,081 | 121,576 |
Securities commissions and fees | 34,412 | 32,496 | 111,026 | 106,799 |
Investment and securities advisory fees and commissions | 49,646 | 36,866 | 109,609 | 89,166 |
Other | 41,955 | 77,772 | 110,856 | 171,309 |
Total noninterest income | 367,945 | 502,711 | 1,125,429 | 1,242,549 |
Noninterest expense: | ||||
Employees' compensation and benefits | 258,679 | 294,907 | 777,518 | 768,156 |
Occupancy and equipment, net | 25,428 | 26,124 | 74,861 | 71,820 |
Professional services | 14,542 | 17,522 | 44,366 | 48,057 |
Other | 56,525 | 60,792 | 168,459 | 163,422 |
Total noninterest expense | 355,174 | 399,345 | 1,065,204 | 1,051,455 |
Income from continuing operations before income taxes | 123,680 | 205,868 | 418,561 | 407,915 |
Income tax expense | 28,257 | 46,820 | 97,261 | 93,776 |
Income from continuing operations | 95,423 | 159,048 | 321,300 | 314,139 |
Income from discontinued operations, net of income taxes | 736 | 34,662 | ||
Net income | 95,423 | 159,784 | 321,300 | 348,801 |
Less: Net income attributable to noncontrolling interest | 2,517 | 6,505 | 8,990 | 17,410 |
Income attributable to Hilltop | $ 92,906 | $ 153,279 | $ 312,310 | $ 331,391 |
Basic: | ||||
Earnings from continuing operations | $ 1.16 | $ 1.69 | $ 3.84 | $ 3.29 |
Earnings from discontinued operations | 0.01 | 0.38 | ||
Basic earnings per common share (in dollars per share) | 1.16 | 1.70 | 3.84 | 3.67 |
Diluted: | ||||
Earnings from continuing operations | 1.15 | 1.69 | 3.82 | 3.29 |
Earnings from discontinued operations | 0.01 | 0.38 | ||
Diluted earnings per common share (in dollars per share) | $ 1.15 | $ 1.70 | $ 3.82 | $ 3.67 |
Weighted average share information: | ||||
Basic | 80,109 | 90,200 | 81,306 | 90,291 |
Diluted | 80,542 | 90,200 | 81,763 | 90,291 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 95,423 | $ 159,784 | $ 321,300 | $ 348,801 |
Other comprehensive income: | ||||
Change in fair value of cash flow and fair value hedges, net of tax of $88, $92, $522 and $(951), respectively | 1,417 | 311 | 5,061 | (3,266) |
Net unrealized gains (losses) on securities available for sale, net of tax of $(2,444), $(99), $(6,619) and $4,554, respectively | (8,143) | (338) | (22,385) | 15,512 |
Reclassification adjustment for gains (losses) included in net income, net of tax of $0, $1, $(21) and $37, respectively | 4 | (72) | 125 | |
Comprehensive income | 88,697 | 159,761 | 303,904 | 361,172 |
Less: comprehensive income attributable to noncontrolling interest | 2,517 | 6,505 | 8,990 | 17,410 |
Comprehensive income applicable to Hilltop | $ 86,180 | $ 153,256 | $ 294,914 | $ 343,762 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Cash flow hedge, tax | $ 88 | $ 92 | $ 522 | $ (951) |
Net unrealized gains on securities available for sale, tax | (2,444) | (99) | (6,619) | 4,554 |
Reclassification adjustment, tax | $ 0 | $ 1 | $ (21) | $ 37 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | ParentCumulative Effect, Period of Adoption, Adjustment | Parent | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Deferred Compensation Employee Stock Trust, Net | Employee Stock Trust | Noncontrolling Interest | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at Dec. 31, 2019 | $ (5,691) | $ 2,103,039 | $ 906 | $ 1,445,233 | $ 11,419 | $ (5,691) | $ 644,860 | $ 776 | $ (155) | $ 25,757 | $ (5,691) | $ 2,128,796 |
Balance (in shares) at Dec. 31, 2019 | 90,641,000 | 8,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 331,391 | 331,391 | 17,410 | 348,801 | ||||||||
Other comprehensive income (loss) | 12,371 | 12,371 | 12,371 | |||||||||
Stock-based compensation expense | 10,549 | 10,549 | 10,549 | |||||||||
Common stock issued to board members | 439 | 439 | 439 | |||||||||
Common stock issued to board members (in shares) | 25,000 | |||||||||||
Issuance of common stock related to share-based awards, net | (1,088) | $ 3 | (1,091) | (1,088) | ||||||||
Issuance of common stock related to share-based awards, net (in shares) | 293,000 | |||||||||||
Repurchases of common stock | (15,250) | $ (7) | (11,542) | (3,701) | (15,250) | |||||||
Repurchases of common stock (in shares) | (721,000) | |||||||||||
Dividends on common stock | (24,398) | (24,398) | (24,398) | |||||||||
Deferred compensation plan | 10 | (2) | $ 12 | 10 | ||||||||
Deferred compensation plan (in shares) | (1,000) | |||||||||||
Net cash distributed to noncontrolling interest | (15,806) | (15,806) | ||||||||||
Balance at Sep. 30, 2020 | 2,411,372 | $ 902 | 1,443,588 | 23,790 | 942,461 | 774 | $ (143) | 27,361 | 2,438,733 | |||
Balance (in shares) at Sep. 30, 2020 | 90,238,000 | 7,000 | ||||||||||
Balance at Jun. 30, 2020 | 2,262,360 | $ 902 | 1,439,686 | 23,813 | 797,331 | 778 | $ (150) | 29,773 | 2,292,133 | |||
Balance (in shares) at Jun. 30, 2020 | 90,222,000 | 8,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 153,279 | 153,279 | 6,505 | 159,784 | ||||||||
Other comprehensive income (loss) | (23) | (23) | (23) | |||||||||
Stock-based compensation expense | 3,790 | 3,790 | 3,790 | |||||||||
Common stock issued to board members | 147 | 147 | 147 | |||||||||
Common stock issued to board members (in shares) | 7,000 | |||||||||||
Issuance of common stock related to share-based awards, net | (64) | (64) | (64) | |||||||||
Issuance of common stock related to share-based awards, net (in shares) | 9,000 | |||||||||||
Repurchases of common stock | (1) | 29 | (30) | (1) | ||||||||
Dividends on common stock | (8,119) | (8,119) | (8,119) | |||||||||
Deferred compensation plan | 3 | (4) | $ 7 | 3 | ||||||||
Deferred compensation plan (in shares) | (1,000) | |||||||||||
Net cash distributed to noncontrolling interest | (8,917) | (8,917) | ||||||||||
Balance at Sep. 30, 2020 | 2,411,372 | $ 902 | 1,443,588 | 23,790 | 942,461 | 774 | $ (143) | 27,361 | 2,438,733 | |||
Balance (in shares) at Sep. 30, 2020 | 90,238,000 | 7,000 | ||||||||||
Balance at Dec. 31, 2020 | 2,323,939 | $ 822 | 1,317,929 | 17,763 | 986,792 | 771 | $ (138) | 26,708 | 2,350,647 | |||
Balance (in shares) at Dec. 31, 2020 | 82,185,000 | 7,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 312,310 | 312,310 | 8,990 | 321,300 | ||||||||
Other comprehensive income (loss) | (17,396) | (17,396) | (17,396) | |||||||||
Stock-based compensation expense | 12,889 | 12,889 | 12,889 | |||||||||
Common stock issued to board members | 449 | 449 | 449 | |||||||||
Common stock issued to board members (in shares) | 13,000 | |||||||||||
Issuance of common stock related to share-based awards, net | (2,691) | $ 3 | (2,694) | (2,691) | ||||||||
Issuance of common stock related to share-based awards, net (in shares) | 394,000 | |||||||||||
Repurchases of common stock | (123,631) | $ (35) | (58,301) | (65,295) | $ (123,631) | |||||||
Repurchases of common stock (in shares) | (3,633,000) | (3,632,482) | ||||||||||
Dividends on common stock | (29,500) | (29,500) | $ (29,500) | |||||||||
Deferred compensation plan | 2 | (20) | $ 22 | 2 | ||||||||
Deferred compensation plan (in shares) | (1,000) | |||||||||||
Net cash distributed to noncontrolling interest | (9,727) | (9,727) | ||||||||||
Balance at Sep. 30, 2021 | 2,476,371 | $ 790 | 1,270,272 | 367 | 1,204,307 | 751 | $ (116) | 25,971 | 2,502,342 | |||
Balance (in shares) at Sep. 30, 2021 | 78,959,000 | 6,000 | ||||||||||
Balance at Jun. 30, 2021 | 2,470,281 | $ 812 | 1,302,439 | 7,093 | 1,159,304 | 754 | $ (121) | 26,095 | 2,496,376 | |||
Balance (in shares) at Jun. 30, 2021 | 81,153,000 | 6,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 92,906 | 92,906 | 2,517 | 95,423 | ||||||||
Other comprehensive income (loss) | (6,726) | (6,726) | (6,726) | |||||||||
Stock-based compensation expense | 4,103 | 4,103 | 4,103 | |||||||||
Common stock issued to board members | 152 | 152 | 152 | |||||||||
Common stock issued to board members (in shares) | 5,000 | |||||||||||
Issuance of common stock related to share-based awards, net | (441) | (441) | (441) | |||||||||
Issuance of common stock related to share-based awards, net (in shares) | 43,000 | |||||||||||
Repurchases of common stock | (74,160) | $ (22) | (35,981) | (38,157) | (74,160) | |||||||
Repurchases of common stock (in shares) | (2,242,000) | |||||||||||
Dividends on common stock | (9,746) | (9,746) | (9,746) | |||||||||
Deferred compensation plan | 2 | (3) | $ 5 | 2 | ||||||||
Net cash distributed to noncontrolling interest | (2,641) | (2,641) | ||||||||||
Balance at Sep. 30, 2021 | $ 2,476,371 | $ 790 | $ 1,270,272 | $ 367 | $ 1,204,307 | $ 751 | $ (116) | $ 25,971 | $ 2,502,342 | |||
Balance (in shares) at Sep. 30, 2021 | 78,959,000 | 6,000 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Oct. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||||
Cash dividends declared per common share | $ 0.12 | $ 0.12 | $ 0.09 | $ 0.36 | $ 0.27 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities | ||
Net income | $ 321,300 | $ 348,801 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for (reversal of) credit losses | (39,648) | 99,973 |
Depreciation, amortization and accretion, net | 18,393 | 15,093 |
Deferred income taxes | (382) | (73) |
Other, net | 14,049 | 4,145 |
Net change in securities purchased under agreements to resell | (75,589) | (31,072) |
Net change in trading securities | 84,442 | 21,825 |
Net change in broker-dealer and clearing organization receivables | (223,819) | 491,035 |
Net change in other assets | (50,625) | (94,997) |
Net change in broker-dealer and clearing organization payables | 152,755 | (273,013) |
Net change in other liabilities | (105,402) | 147,058 |
Net change in securities sold, not yet purchased | 33,275 | 12,206 |
Proceeds from sale of mortgage servicing rights asset | 116,000 | 18,650 |
Change in valuation of mortgage servicing rights asset | (12,821) | 32,408 |
Net gains from sales of loans | (669,857) | (753,699) |
Loans originated for sale | (21,563,008) | (19,351,752) |
Proceeds from loans sold | 22,874,493 | 19,417,331 |
Net cash used in operating activities for continuing operations | 873,556 | 103,919 |
Net cash used in operating activities for discontinued operations | (29,269) | |
Net cash used in operating activities | 873,556 | 74,650 |
Investing Activities | ||
Proceeds from maturities and principal reductions of securities held to maturity | 34,082 | 69,937 |
Proceeds from sales, maturities and principal reductions of securities available for sale | 507,365 | 321,049 |
Purchases of securities held to maturity | (7,553) | |
Purchases of securities available for sale | (1,075,154) | (704,933) |
Net change in loans held for investment | 360,518 | (647,420) |
Purchases of premises and equipment and other assets | (22,079) | (25,331) |
Proceeds from sales of premises and equipment and other real estate owned | 4,252 | 20,912 |
Net cash received from (paid to) Federal Home Loan Bank and Federal Reserve Bank stock | (82) | 22,847 |
Net cash used in investing activities for continuing operations | (191,098) | (950,492) |
Net cash provided by investing activities for discontinued operations | 1,941 | |
Net cash received from disposal of discontinued operations | 85,499 | |
Net cash used in investing activities | (191,098) | (863,052) |
Financing Activities | ||
Net change in deposits | 865,638 | 2,208,031 |
Net change in short-term borrowings | 51,203 | (645,160) |
Proceeds from notes payable | 739,372 | 1,200,343 |
Payments on notes payable | (792,893) | (1,060,681) |
Payments to repurchase common stock | (123,631) | (15,250) |
Dividends paid on common stock | (29,500) | (24,398) |
Net cash distributed to noncontrolling interest | (9,727) | (15,806) |
Other, net | (3,200) | (1,560) |
Net cash provided by financing activities | 697,262 | 1,645,519 |
Net change in cash, cash equivalents and restricted cash | 1,379,720 | 857,117 |
Cash, cash equivalents and restricted cash, beginning of period | 1,353,303 | 642,789 |
Cash, cash equivalents and restricted cash, end of period | 2,733,023 | 1,499,906 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for interest | 85,069 | 87,798 |
Cash paid for income taxes, net of refunds | 83,129 | 87,581 |
Supplemental Schedule of Non-Cash Activities | ||
Conversion of loans to other real estate owned | 2,924 | 13,669 |
Additions to mortgage services rights | $ 70,368 | $ 123,266 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash to Consolidated Balance Sheets | ||||
Cash and due from banks | $ 2,463,111 | $ 1,062,560 | $ 1,277,865 | |
Federal funds sold | 406 | 386 | 420 | |
Assets segregated for regulatory purposes | 269,506 | 290,357 | 221,621 | |
Total cash, cash equivalents and restricted cash | $ 2,733,023 | $ 1,353,303 | $ 1,499,906 | $ 642,789 |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting and Reporting Policies | |
Summary of Significant Accounting and Reporting Policies | 1. Summary of Significant Accounting and Reporting Policies ā Nature of Operations ā Hilltop Holdings Inc. (āHilltopā and, collectively with its subsidiaries, the āCompanyā) is a financial holding company registered under the Bank Holding Company Act of 1956. The Companyās primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank (the āBankā). In addition, the Company provides an array of financial products and services through its broker-dealer and mortgage origination subsidiaries. ā On June 30, 2020, Hilltop completed the sale of all of the outstanding capital stock of National Lloyds Corporation (āNLCā), which comprised the operations of the former insurance segment, for cash proceeds of $154.1 million, and was subject to post-closing adjustments. Accordingly, NLCās results for the three and nine months ended September 30, 2020 have been presented as discontinued operations in the consolidated financial statements. For further details, see Note 3 to the consolidated financial statements. ā The Company, headquartered in Dallas, Texas, provides its products and services through two primary business units within continuing operations, PlainsCapital Corporation (āPCCā) and Hilltop Securities Holdings LLC (āSecurities Holdingsā). 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, clearing, securities lending, structured finance and retail brokerage services throughout the United States. Unless otherwise noted, the Companyās notes to the consolidated financial statements present information limited to continuing operations. ā As a result of the spread of the novel coronavirus (āCOVID-19ā) pandemic, economic uncertainties have contributed to significant volatility in the global economy, as well as banking and other financial activity in the areas in which the Company operates. The effects of COVID-19 have had, and may continue to have, an adverse effect on the financial markets and overall economic conditions on an unprecedented scale. The Companyās business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19. COVID-19 presents material uncertainty which could have a material adverse effect on the Companyās business, financial condition, results of operations and cash flows. ā Basis of Presentation ā The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (āGAAPā), and in conformity with the rules and regulations of the Securities and Exchange Commission (the āSECā). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Companyās Annual Report on Form 10-K for the year ended December 31, 2020 (ā2020 Form 10-Kā). Results for interim periods are not necessarily indicative of results to be expected for a full year or any future period. ā The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates regarding the allowance for credit losses, the fair values of financial instruments, the mortgage loan indemnification liability, and the potential impairment of goodwill and identifiable intangible 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. Actual amounts and values as of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date. ā 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, 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 (āPrimeLendingā). ā PrimeLending owns a 100% membership interest in PrimeLending Ventures Management, LLC (āVentures Managementā), which holds an ownership interest in and is the managing member of certain affiliated business arrangements (āABAsā). ā PCC also owned 100% of the outstanding common securities of PCC Statutory Trusts I, II, III and IV (the āTrustsā), which were not included in the consolidated financial statements under the requirements of the Variable Interest Entities (āVIEā) Subsections of the Financial Accounting Standards Board (āFASBā) Accounting Standards Codification (āASCā) because the primary beneficiaries of the Trusts are not within the consolidated group. Following receipt of regulatory approval, during June, July and August 2021, PCC submitted to the trustees of each of the Trusts notices to redeem in full outstanding junior subordinated debentures of $67.0 million issued by PCC, which resulted in the full redemption to the holders of the associated preferred securities and common securities during the third quarter of 2021. ā Hilltop has a 100% membership interest in Securities Holdings, which operates through its wholly owned subsidiaries, Hilltop Securities Inc. (āHilltop Securitiesā), Momentum Independent Network Inc. (āMomentum Independent Networkā and collectively with Hilltop Securities, the āHilltop Broker-Dealersā) and Hilltop Securities Asset Management, LLC. Hilltop Securities is a broker-dealer registered with the SEC and Financial Industry Regulatory Authority (āFINRAā) and a member of the New York Stock Exchange (āNYSEā), Momentum Independent Network is an introducing broker-dealer that is also registered with the SEC and FINRA. Hilltop Securities, Momentum Independent Network and Hilltop Securities Asset Management, LLC are registered investment advisers under the Investment Advisers Act of 1940. ā In addition, Hilltop owns 100% of the membership interest in each of HTH Hillcrest Project LLC (āHTH Project LLCā) and Hilltop % of the membership interest in HTH Diamond Hillcrest Land LLC (āHillcrest Land LLCā) 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 20 to the consolidated financial statements included in the Companyās 2020 Form 10-K and are collectively referred to as the āHilltop Plaza Entities.ā ā 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. ā 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. ā Significant accounting policies are detailed in Note 1 to the consolidated financial statements included in the Companyās 2020 Form 10-K. ā |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2021 | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards ā Accounting Standards Adopted During 2021 ā In January 2020, FASB issued Accounting Standards Update (āASUā) 2020-01 to clarify the interaction among ASC 321, ASC 323, and ASC 815 for equity securities, equity method investments, and certain financial instruments to acquire equity securities. ASU 2020-01 clarifies whether re-measurement of equity investments is appropriate when observable transactions cause the equity method to be triggered or discontinued. ASU 2020-01 also provides that certain forward contracts and purchased options to acquire equity securities will be measured under ASC 321 without an assessment of subsequent accounting upon settlement or exercise. The amendment is effective in periods beginning after December 15, 2020. The Company adopted the provisions of this amendment as of January 1, 2021. The adoption of these provisions did not have a material impact on its consolidated financial statements. ā In July 2021, FASB issued ASU 2021-05, which amends ASC 842 to require lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses if they were classified as sales-type or direct financing leases. As permitted within the amendment, the Company elected to early adopt the provisions as of July 31, 2021. The adoption of this amendment did not have a material impact on the Companyās consolidated financial statements. ā Accounting Standards Issued But Not Yet Adopted ā In August 2021, FASB issued ASU 2021-06 to both clarify and improve disclosures related to depository lending and investment companies. The amendments in ASU 2021-06 are effective for fiscal years beginning after December 15, 2021. The Company is currently evaluating the impact of adoption on its consolidated financial statements, but does not believe the adoption of this amendment will have a material impact on its consolidated financial statements. ā ā |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations | |
Discontinued Operations | T 3. Discontinued Operations ā NLC Sale ā On June 30, 2020, Hilltop completed the sale of all of the outstanding capital stock of NLC, which comprised the operations of the insurance segment, for cash proceeds of $154.1 million. During 2020, Hilltop recognized an aggregate gain associated with this transaction of $36.8 million, net of customary transaction costs of $5.1 million and was subject to post-closing adjustments. The resulting book gain from this sale transaction was not recognized for tax purposes due to the excess tax basis over book basis being greater than the recorded book gain. Any tax loss related to this transaction is deemed disallowed pursuant to the rules under the Internal Revenue Code. ā During the first quarter of 2020, management determined that the then-pending sale of NLC met the criteria to be presented as discontinued operations. All related notes to the consolidated financial statements for discontinued operations have been included in this note. ā The following table presents the results of discontinued operations for NLC for the periods indicated (in thousands). ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā September 30, 2020 ā September 30, 2020 Interest income: ā ā ā ā ā Securities: ā ā ā ā ā Taxable $ ā ā $ 1,752 Other ā ā ā ā 71 Total interest income ā ā ā ā 1,823 ā ā ā ā ā ā Interest expense: ā ā ā ā ā Notes payable ā ā ā ā 775 ā ā ā ā ā ā Noninterest income: ā ā ā ā ā Net insurance premiums earned ā ā ā ā 65,077 Other ā ā ā ā 3,051 Total noninterest income ā ā ā ā 68,128 ā ā ā ā ā ā Noninterest expense: ā ā ā ā ā Employees' compensation and benefits ā ā ā ā 6,002 Occupancy and equipment, net ā ā ā ā 464 Professional services ā ā ā ā 18,201 Loss and loss adjustment expenses ā ā ā ā 38,419 Other ā ā ā ā 3,987 Total noninterest expense ā ā ā ā 67,073 ā ā ā ā ā ā Income from discontinued operations before income taxes ā ā ā ā 2,103 Gain on disposal of discontinued operations ā 736 ā ā 33,077 Income tax expense ā ā ā ā 518 Income from discontinued operations, net of income taxes $ 736 ā $ 34,662 ā Reinsurance Activity ā The effects of reinsurance on premiums written and earned are included within discontinued operations and are summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā ā September 30, 2020 ā September 30, 2020 ā Written Earned Written Earned Premiums from direct business ā $ ā ā $ ā ā $ 63,811 ā $ 61,384 Reinsurance assumed ā ā ā ā ā 6,396 ā 6,452 Reinsurance ceded ā ā ā ā ā (2,759) ā (2,759) Net premiums ā $ ā ā $ ā ā $ 67,448 ā $ 65,077 ā ā The effects of reinsurance on incurred losses and LAE are included within discontinued operations and are as follows (in thousands). ā ā ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā September 30, 2020 September 30, 2020 Losses and LAE incurred ā $ ā ā $ 38,225 Reinsurance recoverables ā ā ā 194 Net loss and LAE incurred ā $ ā ā $ 38,419 ā |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | 4. Fair Value Measurements ā Fair Value Measurements and Disclosures ā The Company determines fair values in compliance with The Fair Value Measurements and Disclosures Topic of the ASC (the āFair Value Topicā). 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. ā 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. ā ā Level 1 Inputs : Unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. ā ā 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. ā ā Level 3 Inputs : Unobservable inputs that reflect an entityās own estimates 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 . ā Fair Value Option ā The Company has elected to measure substantially all of PrimeLendingās mortgage loans held for sale and the retained mortgage servicing rights (āMSRā) 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 September 30, 2021 and December 31, 2020, the aggregate fair value of PrimeLendingās mortgage loans held for sale accounted for under the Fair Value Option was $1.90 billion and $2.52 billion, respectively, and the unpaid principal balance of those loans was $1.85 billion and $2.41 billion, respectively. The interest component of fair value is reported as interest income on loans in the accompanying consolidated statements of operations. ā 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. ā The following tables present information regarding financial assets and liabilities measured at fair value on a recurring basis (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 1 Level 2 Level 3 Total September 30, 2021 ā Inputs ā Inputs ā Inputs ā Fair Value Trading securities ā $ 8,301 ā $ 601,512 ā $ ā ā $ 609,813 ā Available for sale securities ā ā ā ā ā 1,994,183 ā ā ā ā ā 1,994,183 ā Equity securities ā ā 221 ā ā ā ā ā ā ā ā 221 ā Loans held for sale ā ā ā ā ā 1,828,626 ā ā 72,519 ā ā 1,901,145 ā Derivative assets ā ā ā ā ā 89,440 ā ā ā ā ā 89,440 ā MSR asset ā ā ā ā ā ā ā ā 110,931 ā ā 110,931 ā Securities sold, not yet purchased ā ā 79,725 ā ā 33,339 ā ā ā ā ā 113,064 ā Derivative liabilities ā ā ā ā ā 27,349 ā ā ā ā ā 27,349 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 1 Level 2 Level 3 ā Total ā December 31, 2020 ā Inputs ā Inputs ā Inputs ā ā Fair Value ā Trading securities ā $ 45,390 ā $ 648,865 ā $ ā ā $ 694,255 ā Available for sale securities ā ā ā ā ā 1,462,205 ā ā ā ā ā 1,462,205 ā Equity securities ā ā 140 ā ā ā ā ā ā ā ā 140 ā Loans held for sale ā ā ā ā ā 2,449,588 ā ā 71,816 ā ā 2,521,404 ā Derivative assets ā ā ā ā ā 126,898 ā ā ā ā ā 126,898 ā MSR asset ā ā ā ā ā ā ā ā 143,742 ā ā 143,742 ā Securities sold, not yet purchased ā ā 54,494 ā ā 25,295 ā ā ā ā ā 79,789 ā Derivative liabilities ā ā ā ā ā 74,598 ā ā ā ā ā 74,598 ā ā The following tables include a rollforward for those financial instruments measured at fair value using Level 3 inputs (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total Gains or Losses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (Realized or Unrealized) ā ā ā ā Balance, ā ā Transfers ā Included in Other ā ā ā Beginning of ā Purchases/ ā Sales/ ā to (from) ā Included in ā Comprehensive ā Balance, ā ā Period ā Additions ā Reductions ā Level 3 ā Net Income ā Income (Loss) ā End of Period Three months ended September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans held for sale ā $ 71,433 ā $ 18,817 ā $ (22,207) ā $ (2,291) ā $ 6,767 ā $ ā ā $ 72,519 MSR asset ā 124,497 ā ā 20,252 ā ā (31,366) ā ā ā ā ā (2,452) ā ā ā ā 110,931 Total ā $ 195,930 ā $ 39,069 ā $ (53,573) ā $ (2,291) ā $ 4,315 ā $ ā ā $ 183,450 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans held for sale ā $ 71,816 ā $ 50,273 ā $ (51,718) ā $ (4,099) ā $ 6,247 ā $ ā ā $ 72,519 MSR asset ā ā 143,742 ā ā 70,368 ā ā (116,000) ā ā ā ā ā 12,821 ā ā ā ā ā 110,931 Total ā $ 215,558 ā $ 120,641 ā $ (167,718) ā $ (4,099) ā $ 19,068 ā $ ā ā $ 183,450 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans held for sale ā $ 91,936 ā $ 5,338 ā $ (20,182) ā $ 1,097 ā $ (6,003) ā $ ā ā $ 72,186 MSR asset ā ā 81,264 ā ā 59,351 ā ā ā ā ā ā ā ā (12,903) ā ā ā ā ā 127,712 Total ā $ 173,200 ā $ 64,689 ā $ (20,182) ā $ 1,097 ā $ (18,906) ā $ ā ā $ 199,898 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans held for sale ā $ 67,195 ā $ 53,961 ā $ (51,125) ā $ 10,064 ā $ (7,909) ā $ ā ā $ 72,186 MSR asset ā ā 55,504 ā ā 123,266 ā ā (18,650) ā ā ā ā ā (32,408) ā ā ā ā ā 127,712 Total ā $ 122,699 ā $ 177,227 ā $ (69,775) ā $ 10,064 ā $ (40,317) ā $ ā ā $ 199,898 ā All net realized and unrealized gains (losses) in the tables above are reflected in the accompanying consolidated financial statements. The unrealized gains (losses) relate to financial instruments still held at September 30, 2021. ā For Level 3 financial instruments measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Range (Weighted-Average) Financial instrument Valuation Technique Unobservable Inputs September 30, 2021 ā December 31, 2020 Loans ā Market comparable ā Projected price ā 94 - 96 % ( 96 %) ā 91 - 94 % ( 94 %) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā MSR asset ā Discounted cash flows ā Constant prepayment rate ā ā ā ā 10.02 % ā ā ā ā ā 12.15 % ā ā ā ā ā Discount rate ā ā ā ā 14.31 % ā ā ā ā ā 14.60 % ā ā The fair value of certain loans held for sale that cannot be sold through normal sale channels or are non-performing is measured using Level 3 inputs. The fair value of such loans is generally based upon estimates of expected cash flows using unobservable inputs, including listing prices of comparable assets, uncorroborated expert opinions, and/or managementās knowledge of underlying collateral. ā The MSR asset 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 and discount rates, the most significant unobservable inputs, are discussed further in Note 8 to the consolidated financial statements. The decrease in the prepayment rate used to value the MSR asset at September 30, 2021, compared to December 31, 2020, reflects the effect of increased mortgage rates reducing consumer refinancing activity. ā 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. ā 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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, 2021 ā Three Months Ended September 30, 2020 ā ā Other Total ā Other Total ā ā Net ā Noninterest ā Changes in ā Net ā Noninterest ā Changes in ā ā Gains (Losses) ā Income ā Fair Value ā Gains (Losses) ā Income ā Fair Value Loans held for sale ā $ (32,694) ā $ ā ā $ (32,694) ā $ (9,167) ā $ ā ā $ (9,167) MSR asset ā (2,452) ā ā ā (2,452) ā (12,903) ā ā ā (12,903) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, 2021 ā Nine Months Ended September 30, 2020 ā ā Other Total ā Other Total ā ā Net ā Noninterest ā Changes in ā Net ā Noninterest ā Changes in ā ā Gains (Losses) ā Income ā Fair Value ā Gains (Losses) ā Income ā Fair Value Loans held for sale ā $ (55,211) ā $ ā ā $ (55,211) ā $ 49,311 ā $ ā ā $ 49,311 MSR asset ā 12,821 ā ā ā 12,821 ā (32,408) ā ā ā (32,408) ā 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. There have been no changes to the methods for determining estimated fair value for financial assets and liabilities as described in detail in Note 5 to the consolidated financial statements included in the Companyās 2020 Form 10-K. ā 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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Estimated Fair Value ā Carrying Level 1 Level 2 Level 3 ā ā September 30, 2021 ā Amount ā Inputs ā Inputs ā Inputs ā Total Financial assets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 2,463,517 ā $ 2,463,517 ā $ ā ā $ ā ā $ 2,463,517 Assets segregated for regulatory purposes ā ā 269,506 ā ā 269,506 ā ā ā ā ā ā ā ā 269,506 Securities purchased under agreements to resell ā ā 155,908 ā ā ā ā ā 155,908 ā ā ā ā ā 155,908 Held to maturity securities ā ā 277,419 ā ā ā ā ā 288,112 ā ā ā ā ā 288,112 Loans held for sale ā ā 207,733 ā ā ā ā ā 207,733 ā ā ā ā ā 207,733 Loans held for investment, net ā ā 7,443,414 ā ā ā ā ā 645,901 ā ā 7,084,518 ā ā 7,730,419 Broker-dealer and clearing organization receivables ā 1,419,652 ā ā ā 1,419,652 ā ā ā 1,419,652 Other assets ā 71,464 ā ā ā 69,938 ā 1,526 ā 71,464 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Financial liabilities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Deposits ā 12,132,162 ā ā ā 12,137,502 ā ā ā 12,137,502 Broker-dealer and clearing organization payables ā 1,496,923 ā ā ā 1,496,923 ā ā ā 1,496,923 Short-term borrowings ā 747,040 ā ā ā 747,040 ā ā ā 747,040 Debt ā 395,804 ā ā ā 395,804 ā ā ā 395,804 Other liabilities ā 10,099 ā ā ā 10,099 ā ā ā 10,099 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Estimated Fair Value ā Carrying Level 1 Level 2 Level 3 ā ā December 31, 2020 ā Amount ā Inputs ā Inputs ā Inputs ā Total Financial assets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 1,062,946 ā $ 1,062,946 ā $ ā ā $ ā ā $ 1,062,946 Assets segregated for regulatory purposes ā ā 290,357 ā ā 290,357 ā ā ā ā ā ā ā ā 290,357 Securities purchased under agreements to resell ā ā 80,319 ā ā ā ā ā 80,319 ā ā ā ā ā 80,319 Held to maturity securities ā ā 311,944 ā ā ā ā ā 326,671 ā ā ā ā ā 326,671 Loans held for sale ā ā 266,982 ā ā ā ā ā 266,982 ā ā ā ā ā 266,982 Loans held for investment, net ā ā 7,544,097 ā ā ā ā ā 437,007 ā ā 7,351,411 ā ā 7,788,418 Broker-dealer and clearing organization receivables ā 1,404,727 ā ā ā 1,404,727 ā ā ā 1,404,727 Other assets ā 74,881 ā ā ā 73,111 ā 1,770 ā 74,881 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Financial liabilities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Deposits ā 11,242,319 ā ā ā 11,256,629 ā ā ā 11,256,629 Broker-dealer and clearing organization payables ā 1,368,373 ā ā ā 1,368,373 ā ā ā 1,368,373 Short-term borrowings ā 695,798 ā ā ā 695,798 ā ā ā 695,798 Debt ā 448,999 ā ā ā 448,999 ā ā ā 448,999 Other liabilities ā 6,133 ā ā ā 6,133 ā ā ā 6,133 ā The Company held equity investments other than securities of $53.9 million and $63.6 million at September 30, 2021 and December 31, 2020, respectively, which are included within other assets in the consolidated balance sheets. Of the $53.9 million of such equity investments held at September 30, 2021, $16.5 million do not have readily determinable fair values 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 during the periods presented (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā 2021 2020 ā 2021 2020 Balance, beginning of period $ 26,988 $ 20,613 ā $ 22,844 $ 19,771 Upward adjustments ā ā 122 ā ā 2,221 ā ā 6,006 ā ā 3,852 Impairments and downward adjustments ā ā (253) ā ā (826) ā ā (1,017) ā ā (1,615) Dispositions ā (10,390) ā ā ā (11,366) ā ā Balance, end of period ā $ 16,467 ā $ 22,008 ā $ 16,467 ā $ 22,008 ā |
Securities
Securities | 9 Months Ended |
Sep. 30, 2021 | |
Securities | |
Securities | ā 5. Securities ā The fair value of trading securities is summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 U.S. Treasury securities $ 3,401 $ 40,491 U.S. government agencies: ā ā ā ā ā ā Bonds ā ā 14,883 ā ā 40 Residential mortgage-backed securities ā 196,241 ā 336,081 Commercial mortgage-backed securities ā ā ā 876 Collateralized mortgage obligations ā ā 54,065 ā ā 69,172 Corporate debt securities ā ā 72,029 ā ā 62,481 States and political subdivisions ā ā 264,044 ā ā 171,573 Private-label securitized product ā ā 177 ā ā 8,571 Other ā ā 4,973 ā ā 4,970 Totals ā $ 609,813 ā $ 694,255 ā In addition to the securities shown above, 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-Dealersā ultimate obligations may exceed the amount recognized in the financial statements. These securities, which are carried at fair value and reported as securities sold, not yet purchased in the consolidated balance sheets, had a value of $113.1 million and $79.8 million at September 30, 2021 and December 31, 2020, respectively. ā The amortized cost and fair value of available for sale and held to maturity securities are summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Available for Sale ā ā Amortized ā Unrealized ā Unrealized ā ā ā September 30, 2021 ā Cost ā Gains ā Losses ā Fair Value U.S. Treasury securities ā $ 4,972 ā $ ā ā $ (16) ā $ 4,956 U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā Bonds ā ā 45,181 ā ā 1,010 ā ā (72) ā ā 46,119 Residential mortgage-backed securities ā 901,720 ā 10,784 ā (8,247) ā 904,257 Commercial mortgage-backed securities ā ā 205,290 ā 476 ā (8,129) ā 197,637 Collateralized mortgage obligations ā 794,258 ā 3,992 ā (4,241) ā 794,009 States and political subdivisions ā 45,574 ā 1,887 ā (256) ā 47,205 Totals ā $ 1,996,995 ā $ 18,149 ā $ (20,961) ā $ 1,994,183 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Available for Sale ā ā Amortized ā Unrealized ā Unrealized ā ā ā December 31, 2020 ā Cost ā Gains ā Losses ā Fair Value U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā Bonds ā $ 82,036 ā $ 1,095 ā $ (325) ā $ 82,806 Residential mortgage-backed securities ā 624,863 ā 17,194 ā (446) ā 641,611 Commercial mortgage-backed securities ā ā 124,929 ā 768 ā (1,159) ā 124,538 Collateralized mortgage obligations ā 559,362 ā 6,916 ā (370) ā 565,908 States and political subdivisions ā 44,729 ā 2,613 ā ā ā 47,342 Totals ā $ 1,435,919 ā $ 28,586 ā $ (2,300) ā $ 1,462,205 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held to Maturity ā ā Amortized ā Unrealized ā Unrealized ā ā ā September 30, 2021 Cost Gains Losses Fair Value U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā Residential mortgage-backed securities ā $ 10,755 ā $ 518 ā $ ā ā $ 11,273 Commercial mortgage-backed securities ā ā 150,060 ā 6,727 ā ā ā 156,787 Collateralized mortgage obligations ā 48,210 ā 1,070 ā ā ā 49,280 States and political subdivisions ā 68,394 ā 2,402 ā (24) ā 70,772 Totals ā $ 277,419 ā $ 10,717 ā $ (24) ā $ 288,112 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held to Maturity ā ā Amortized ā Unrealized ā Unrealized ā ā ā December 31, 2020 Cost Gains Losses Fair Value U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā Residential mortgage-backed securities ā $ 13,547 ā $ 708 ā $ ā ā $ 14,255 Commercial mortgage-backed securities ā ā 152,820 ā ā 9,205 ā ā ā ā ā 162,025 Collateralized mortgage obligations ā 74,932 ā 2,036 ā ā ā 76,968 States and political subdivisions ā 70,645 ā 2,778 ā ā ā 73,423 Totals ā $ 311,944 ā $ 14,727 ā $ ā ā $ 326,671 ā Additionally, the Company had unrealized net gains of $0.2 and $0.1 million at September 30, 2021 and December 31, 2020, respectively, from equity securities with fair values of $0.2 million and $0.1 million held at September 30, 2021 and December 31, 2020, respectively. The Company recognized nominal net gains and net losses during the three and nine months ended September 30, 2021 and 2020, respectively, due to changes in the fair value of equity securities still held at the balance sheet date. During the three and nine months ended September 30, 2021 and 2020, net gains recognized from equity securities sold were nominal. ā Information regarding available for sale and held to maturity securities that were in an unrealized loss position is shown in the following tables (dollars in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā Number of ā ā Unrealized Number of ā ā Unrealized ā ā Securities ā Fair Value ā Losses ā Securities ā Fair Value ā Losses Available for Sale ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. treasury securities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 1 ā $ 4,956 ā $ 16 ā ā $ ā ā $ ā Unrealized loss for twelve months or longer ā ā ā ā ā ā ā ā ā ā ā 1 ā 4,956 ā 16 ā ā ā ā ā U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Bonds: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 1 ā ā 4,985 ā ā 15 8 ā ā 60,298 ā ā 325 Unrealized loss for twelve months or longer 1 ā 6,389 ā 57 ā ā ā ā ā ā 2 ā ā 11,374 ā ā 72 8 ā 60,298 ā 325 Residential mortgage-backed securities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 58 ā 608,502 ā 7,983 15 ā 86,287 ā 429 Unrealized loss for twelve months or longer 5 ā 27,357 ā 264 ā ā ā ā ā ā 63 ā ā 635,859 ā ā 8,247 15 ā 86,287 ā 429 Commercial mortgage-backed securities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 11 ā 132,020 ā 4,765 10 ā 105,386 ā 1,176 Unrealized loss for twelve months or longer 7 ā 59,021 ā 3,364 ā ā ā ā ā ā 18 ā ā 191,041 ā ā 8,129 10 ā 105,386 ā 1,176 Collateralized mortgage obligations: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 39 ā 363,054 ā 3,943 10 ā 101,990 ā 324 Unrealized loss for twelve months or longer 7 ā 46,686 ā 298 5 ā 13,611 ā 46 ā 46 ā ā 409,740 ā ā 4,241 15 ā 115,601 ā 370 States and political subdivisions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 25 ā 8,993 ā 256 ā ā ā ā ā Unrealized loss for twelve months or longer ā ā ā ā ā ā ā ā ā ā ā 25 ā ā 8,993 ā ā 256 ā ā ā ā ā Total available for sale: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 135 ā 1,122,510 ā 16,978 43 ā 353,961 ā 2,254 Unrealized loss for twelve months or longer 20 ā 139,453 ā 3,983 5 ā 13,611 ā 46 ā 155 ā $ 1,261,963 ā $ 20,961 48 ā $ 367,572 ā $ 2,300 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā Number of ā ā Unrealized Number of ā ā Unrealized ā ā Securities ā Fair Value ā Losses ā Securities ā Fair Value ā Losses Held to Maturity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā States and political subdivisions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 6 ā $ 1,831 ā $ 21 2 ā $ 578 ā $ ā Unrealized loss for twelve months or longer 1 ā 264 ā 3 ā ā ā ā ā ā 7 ā 2,095 ā 24 2 ā 578 ā ā Total held to maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 6 ā 1,831 ā 21 2 ā 578 ā ā Unrealized loss for twelve months or longer 1 ā 264 ā 3 ā ā ā ā ā ā 7 ā $ 2,095 ā $ 24 2 ā $ 578 ā $ ā ā Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties. The amortized cost and fair value of securities, excluding trading and equity securities, at September 30, 2021 are shown by contractual maturity below (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Available for Sale ā Held to Maturity ā Amortized ā ā Amortized ā ā ā ā Cost ā Fair Value Cost ā Fair Value Due in one year or less ā $ 2,025 ā $ 2,053 ā $ 667 ā $ 682 Due after one year through five years ā 36,055 ā 37,118 ā 1,179 ā 1,199 Due after five years through ten years ā 15,487 ā 16,096 ā 14,094 ā 14,643 Due after ten years ā 42,160 ā 43,013 ā 52,454 ā 54,248 ā ā 95,727 ā 98,280 ā 68,394 ā 70,772 ā ā ā ā ā ā ā ā ā ā ā ā ā Residential mortgage-backed securities ā 901,720 ā 904,257 ā 10,755 ā 11,273 Collateralized mortgage obligations ā 794,258 ā 794,009 ā 48,210 ā 49,280 Commercial mortgage-backed securities ā 205,290 ā 197,637 ā 150,060 ā 156,787 ā ā $ 1,996,995 ā $ 1,994,183 ā $ 277,419 ā $ 288,112 ā The Company recognized net gains of $2.0 million and $86.2 million from its trading portfolio during the three months ended September 30, 2021 and 2020, respectively, and $21.8 million and $106.7 million during the nine months ended September 30, 2021 and 2020, respectively. In addition, the Hilltop Broker-Dealers realized net gains from structured product trading activities of $17.0 million and net losses from structured product trading activities of $14.4 million during the three months ended September 30, 2021 and 2020, respectively, and net gains from structured product trading activities of $52.1 million and $27.8 million during the nine months ended September 30, 2021 and 2020, respectively. The Company had nominal other realized gains on securities during the three months ended September 30, 2021 and 2020, respectively. Other realized losses on securities during the nine months ended September 30, 2021 were $0.1 million, compared with other realized gains on securities of $0.2 million during the nine months ended September 30, 2020. All such realized gains and losses are recorded as a component of other noninterest income within the consolidated statements of operations. ā Securities with a carrying amount of $704.1 million and $712.3 million (with a fair value of $718.3 million and $733.8 million, respectively) at September 30, 2021 and December 31, 2020, 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 available for sale and held to maturity securities portfolios at September 30, 2021 and December 31, 2020. ā Mortgage-backed securities and collateralized mortgage obligations consist primarily of Government National Mortgage Association (āGNMAā), Federal National Mortgage Association (āFNMAā) and Federal Home Loan Mortgage Corporation (āFHLMCā) 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 enterprises, and conditionally guaranteed by the full faith and credit of the United States. |
Loans Held for Investment
Loans Held for Investment | 9 Months Ended |
Sep. 30, 2021 | |
Loans Held for Investment | |
Loans Held for Investment | 6. Loans Held for Investment ā 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 debtorsā 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. ā Loans held for investment summarized by portfolio segment are as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Commercial real estate ā $ 3,032,141 ā $ 3,133,903 Commercial and industrial (1) ā 1,950,797 ā ā 2,627,774 Construction and land development ā 789,693 ā ā 828,852 1-4 family residential ā ā 1,104,847 ā ā 629,938 Consumer ā ā 29,547 ā ā 35,667 Broker-dealer (2) ā ā 645,901 ā ā 437,007 ā ā 7,552,926 ā 7,693,141 Allowance for credit losses ā (109,512) ā ā (149,044) Total loans held for investment, net of allowance ā $ 7,443,414 ā $ 7,544,097 (1) Included loans totaling $133.2 million and $486.7 million at September 30, 2021 and December 31, 2020, respectively, funded through the Paycheck Protection Program. (2) Primarily represents margin loans to customers and correspondents associated with broker-dealer segment operations. ā ā The following table provides details associated with non-accrual loans, excluding those classified as held for sale (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Non-accrual Loans ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā Interest Income Recognized ā ā With ā With No ā ā ā ā With ā With No ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā Allowance Allowance Total Allowance Allowance Total 2021 2020 2021 2020 Commercial real estate: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Non-owner occupied ā $ 417 ā $ 900 ā $ 1,317 ā $ 1,213 ā $ 445 ā $ 1,658 ā $ 76 ā $ 99 ā $ 204 ā $ 88 Owner occupied ā 3,071 ā ā 1,317 ā ā 4,388 ā 3,473 ā ā 6,002 ā ā 9,475 ā ā 345 ā ā 156 ā ā 574 ā ā 241 Commercial and industrial ā ā 21,291 ā ā 8,517 ā ā 29,808 ā ā 10,821 ā ā 23,228 ā ā 34,049 ā ā 179 ā ā 312 ā ā 653 ā ā 714 Construction and land development ā 2 ā ā 364 ā ā 366 ā 102 ā ā 405 ā ā 507 ā ā 13 ā ā 36 ā ā 48 ā ā 89 1-4 family residential ā 1,432 ā ā 18,476 ā ā 19,908 ā 4,726 ā ā 16,651 ā ā 21,377 ā ā 796 ā ā 134 ā ā 2,837 ā ā 1,299 Consumer ā 24 ā ā ā ā ā 24 ā 28 ā ā ā ā ā 28 ā ā 1 ā ā 2 ā ā (120) ā ā (1) Broker-dealer ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 26,237 ā $ 29,574 ā $ 55,811 ā $ 20,363 ā $ 46,731 ā $ 67,094 ā $ 1,410 ā $ 739 ā $ 4,196 ā $ 2,430 ā At September 30, 2021 and December 31, 2020, $5.3 million and $10.9 million, respectively, of real estate loans secured by residential properties and classified as held for sale were in non-accrual status. ā Loans accounted for on a non-accrual basis decreased $11.3 million from December 31, 2020 to September 30, 2021, primarily due to decreases in commercial real estate owner occupied loans of $5.1 million, commercial and industrial loans of $4.2 million, and 1-4 family residential loans of $1.5 million. The respective decreases in commercial real estate owner occupied loans and commercial and industrial loans in non-accrual status since December 31, 2020 were primarily due to principal paydowns associated with five relationships. ā The Company considers non-accrual loans to be collateral-dependent unless there are underlying mitigating circumstances. The practical expedient to measure the allowance using the fair value of the collateral has been implemented. ā The Bank classifies loan modifications as troubled debt restructurings (āTDRsā) 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 (āA/B Noteā). The typical A/B Note restructure results in a ābadā loan which is charged off and a āgoodā loan or loans, the terms of which comply with the Bankās customary underwriting policies. The debt charged off on the ābadā loan is not forgiven to the debtor. ā In March 2020, the CARES Act was passed, which, among other things, allows the Bank to suspend the requirements for certain loan modifications to be categorized as a TDR, including the related impairment for accounting purposes. On December 27, 2020, the Consolidated Appropriations Act 2021 was signed into law . ā During the three months ended September 30, 2021 there were no TDRs granted that do not qualify for the CARES Act exemption, while there was one TDR granted during the nine months ended September 30, 2021 with an aggregate balance at date of extension and at September 30, 2021 of $0.7 million that does not qualify for the CARES Act exemption. During the three months ended September 30, 2020 there were no TDRs granted, while there were two TDRs granted during the nine months ended September 30, 2020 with an aggregate balance at date of extension of $7.8 million and an aggregate balance at September 30, 2020 of $3.2 million. The Bank had no unadvanced commitments to borrowers whose loans had been restructured in TDRs at September 30, 2021 and nominal commitments to such borrowers at December 31, 2020. There were $0.1 million TDRs granted during the twelve months preceding September 30, 2021, while there were no TDRs granted during the twelve months preceding September 30, 2020, for which a payment was at least 30 days past due. ā An analysis of the aging of the Companyās loan portfolio is shown in the following tables (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accruing Loans ā ā Loans Past Due ā Loans Past Due ā Loans Past Due ā Total Past ā Current ā Total ā Past Due September 30, 2021 ā 30-59 Days ā 60-89 Days ā 90 Days or More ā Due Loans ā Loans ā Loans ā 90 Days or More Commercial real estate: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Non-owner occupied ā $ 1,621 ā $ ā ā $ 199 ā $ 1,820 ā $ 1,722,798 ā $ 1,724,618 ā $ ā Owner occupied ā 149 ā ā ā ā ā 2,274 ā ā 2,423 ā ā 1,305,100 ā ā 1,307,523 ā ā ā Commercial and industrial ā ā 603 ā ā 632 ā ā 13,936 ā ā 15,171 ā ā 1,935,626 ā ā 1,950,797 ā ā 1 Construction and land development ā 10 ā ā 77 ā ā ā ā ā 87 ā ā 789,606 ā ā 789,693 ā ā ā 1-4 family residential ā 4,009 ā ā 1,676 ā ā 7,021 ā ā 12,706 ā ā 1,092,141 ā ā 1,104,847 ā ā 88 Consumer ā 154 ā ā 3 ā ā 23 ā ā 180 ā ā 29,367 ā ā 29,547 ā ā ā Broker-dealer ā ā ā ā ā ā ā ā ā ā ā ā ā 645,901 ā ā 645,901 ā ā ā ā ā $ 6,546 ā $ 2,388 ā $ 23,453 ā $ 32,387 ā $ 7,520,539 ā $ 7,552,926 ā $ 89 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accruing Loans ā ā Loans Past Due ā Loans Past Due ā Loans Past Due ā Total Past ā Current ā Total ā Past Due December 31, 2020 ā 30-59 Days ā 60-89 Days ā 90 Days or More ā Due Loans ā Loans ā Loans ā 90 Days or More Commercial real estate: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Non-owner occupied ā $ 1,919 ā $ ā ā $ 199 ā $ 2,118 ā $ 1,786,193 ā $ 1,788,311 ā $ ā Owner occupied ā 195 ā ā 522 ā ā 8,328 ā ā 9,045 ā ā 1,336,547 ā ā 1,345,592 ā ā ā Commercial and industrial ā ā 3,114 ā ā 407 ā ā 7,318 ā ā 10,839 ā ā 2,616,935 ā ā 2,627,774 ā ā 6 Construction and land development ā 19 ā ā ā ā ā ā ā ā 19 ā ā 828,833 ā ā 828,852 ā ā ā 1-4 family residential ā 8,110 ā ā 3,040 ā ā 12,420 ā ā 23,570 ā ā 606,368 ā ā 629,938 ā ā ā Consumer ā 172 ā ā 123 ā ā 26 ā ā 321 ā ā 35,346 ā ā 35,667 ā ā ā Broker-dealer ā ā ā ā ā ā ā ā ā ā ā ā ā 437,007 ā ā 437,007 ā ā ā ā ā $ 13,529 ā $ 4,092 ā $ 28,291 ā $ 45,912 ā $ 7,647,229 ā $ 7,693,141 ā $ 6 ā In addition to the loans shown in the tables above, PrimeLending had $175.6 million and $243.6 million of loans included in loans held for sale (with an aggregate unpaid principal balance of $177.2 million and $245.5 million, respectively) that were 90 days past due and accruing interest at September 30, 2021 and December 31, 2020, respectively. These loans are guaranteed by U.S. government agencies and include loans that are subject to repurchase, or have been repurchased, by PrimeLending. ā In response to the COVID-19 pandemic, the Company allowed modifications, such as payment deferrals for up to 90 days and temporary forbearance, to credit-worthy borrowers who are experiencing temporary hardship due to the effects of COVID-19. These short-term modifications generally meet the criteria of the CARES Act and, therefore, they are not reported as past due or placed on non-accrual status (provided the loans were not past due or on non-accrual status prior to the deferral). The Company elected to accrue and recognize interest income on these modifications during the payment deferral period. ā Additionally, the Company granted temporary forbearance to borrowers of a federally backed mortgage loan experiencing financial hardship due, directly or indirectly, to the COVID-19 pandemic. The CARES Act, which among other things, established the ability for financial institutions to grant a forbearance for up to 180 days, which can be extended for an additional 180-day period upon the request of the borrower. During that time, no fees, penalties or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the mortgage contract will accrue on the borrowerās account. As of September 30, 2021, PrimeLending had $99.5 million of loans subject to repurchase under a forbearance agreement related to delinquencies on or after April 1, 2020. ā Management tracks credit quality trends on a quarterly basis related to: (i) past due levels, (ii) non-performing asset levels, (iii) classified loan levels, and (iv) general economic conditions in state and local markets. The Company defines classified loans as loans with a risk rating of substandard, doubtful or loss. There have been no changes to the risk rating internal grades utilized for commercial loans as described in detail in Note 7 to the consolidated financial statements in the Companyās 2020 Form 10-K. ā The following table presents loans held for investment grouped by asset class and credit quality indicator, segregated by year of origination or renewal (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Amortized Cost Basis by Origination Year ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2016 and ā ā ā ā ā ā September 30, 2021 ā 2021 ā 2020 ā 2019 ā 2018 ā 2017 ā ā Prior ā Revolving ā Total Commercial real estate: non-owner occupied ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 1-3 (Pass low risk) ā $ 17,984 ā $ 14,856 ā $ 24,145 ā $ 9,102 ā $ 1,379 ā $ 19,704 ā $ (4) ā $ 87,166 Internal Grade 4-7 (Pass normal risk) ā ā 235,408 ā ā 207,049 ā ā 113,457 ā ā 50,614 ā ā 42,473 ā ā 68,139 ā ā 33,405 ā ā 750,545 Internal Grade 8-11 (Pass high risk and watch) ā ā 92,225 ā ā 226,326 ā ā 128,586 ā ā 96,780 ā ā 56,898 ā ā 142,747 ā ā 1,219 ā ā 744,781 Internal Grade 12 (Special mention) ā ā ā ā ā ā ā ā 3,167 ā ā 1,210 ā ā ā ā ā 3,423 ā ā ā ā ā 7,800 Internal Grade 13 (Substandard accrual) ā ā 24,370 ā ā 8,995 ā ā 16,142 ā ā 16,866 ā ā 17,809 ā ā 48,727 ā ā 100 ā ā 133,009 Internal Grade 14 (Substandard non-accrual) ā ā 417 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 900 ā ā ā ā ā 1,317 Commercial real estate: owner occupied ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 1-3 (Pass low risk) ā $ 116,722 ā $ 64,383 ā $ 17,413 ā $ 29,476 ā $ 32,386 ā $ 37,852 ā $ 4 ā $ 298,236 Internal Grade 4-7 (Pass normal risk) ā ā 149,531 ā ā 123,342 ā ā 120,207 ā ā 89,486 ā ā 27,442 ā ā 83,316 ā ā 15,191 ā ā 608,515 Internal Grade 8-11 (Pass high risk and watch) ā ā 49,084 ā ā 107,022 ā ā 44,373 ā ā 83,934 ā ā 20,594 ā ā 34,431 ā ā 7,888 ā ā 347,326 Internal Grade 12 (Special mention) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 13 (Substandard accrual) ā ā 576 ā ā 14,642 ā ā 5,331 ā ā 7,691 ā ā 6,828 ā ā 13,990 ā ā ā ā ā 49,058 Internal Grade 14 (Substandard non-accrual) ā ā 1,602 ā ā ā ā ā (3) ā ā 350 ā ā 2,271 ā ā 168 ā ā ā ā ā 4,388 Commercial and industrial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 1-3 (Pass low risk) ā $ 20,215 ā $ 32,018 ā $ 26,301 ā $ 7,741 ā $ 8,963 ā $ 2,655 ā $ 58,993 ā $ 156,886 Internal Grade 4-7 (Pass normal risk) ā ā 87,493 ā ā 100,455 ā ā 31,496 ā ā 25,226 ā ā 15,217 ā ā 16,710 ā ā 275,095 ā ā 551,692 Internal Grade 8-11 (Pass high risk and watch) ā ā 84,927 ā ā 87,955 ā ā 39,591 ā ā 15,075 ā ā 7,662 ā ā 7,076 ā ā 292,171 ā ā 534,457 Internal Grade 12 (Special mention) ā ā ā ā ā 23 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2,106 ā ā 2,129 Internal Grade 13 (Substandard accrual) ā ā 2,250 ā ā 10,839 ā ā 1,471 ā ā 7,280 ā ā 4,212 ā ā 3,875 ā ā 6,699 ā ā 36,626 Internal Grade 14 (Substandard non-accrual) ā ā 6,619 ā ā 17,977 ā ā 511 ā ā 1,772 ā ā 225 ā ā 87 ā ā 2,617 ā ā 29,808 Construction and land development ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 1-3 (Pass low risk) ā $ 15,898 ā $ 27,992 ā $ 5,166 ā $ 3,746 ā $ 241 ā $ 4,078 ā $ 1,450 ā $ 58,571 Internal Grade 4-7 (Pass normal risk) ā ā 212,531 ā ā 170,416 ā ā 39,782 ā ā 11,603 ā ā 1,982 ā ā 3,310 ā ā 25,021 ā ā 464,645 Internal Grade 8-11 (Pass high risk and watch) ā ā 91,197 ā ā 75,871 ā ā 48,342 ā ā 1,125 ā ā 469 ā ā 1,945 ā ā 22,608 ā ā 241,557 Internal Grade 12 (Special mention) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 13 (Substandard accrual) ā ā ā ā ā ā ā ā 28 ā ā ā ā ā 5,347 ā ā ā ā ā ā ā ā 5,375 Internal Grade 14 (Substandard non-accrual) ā ā 381 ā ā ā ā ā ā ā ā ā ā ā ā ā ā (15) ā ā ā ā ā 366 Construction and land development - individuals ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā FICO less than 620 ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā FICO between 620 and 720 ā ā 944 ā ā 287 ā ā ā ā ā 1,226 ā ā ā ā ā ā ā ā ā ā ā 2,457 FICO greater than 720 ā ā 10,396 ā ā 5,744 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 16,140 Substandard non-accrual ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Other (1) ā ā 582 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 582 1-4 family residential ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā FICO less than 620 ā $ 472 ā $ 1,556 ā $ 722 ā $ 3,632 ā $ 53 ā $ 26,855 ā $ 255 ā $ 33,545 FICO between 620 and 720 ā ā 14,627 ā ā 12,452 ā ā 8,093 ā ā 7,748 ā ā 7,196 ā ā 35,937 ā ā 911 ā ā 86,964 FICO greater than 720 ā ā 561,557 ā ā 140,097 ā ā 60,302 ā ā 34,483 ā ā 19,508 ā ā 59,801 ā ā 3,757 ā ā 879,505 Substandard non-accrual ā ā ā ā ā 14 ā ā 1,063 ā ā 273 ā ā 122 ā ā 18,436 ā ā ā ā ā 19,908 Other (1) ā ā 58,137 ā ā 9,604 ā ā 8,406 ā ā 4,821 ā ā 790 ā ā 2,300 ā ā 867 ā ā 84,925 Consumer ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā FICO less than 620 ā $ 967 ā $ 577 ā $ 437 ā $ 55 ā $ 74 ā $ 50 ā $ 346 ā $ 2,506 FICO between 620 and 720 ā ā 3,478 ā ā 1,811 ā ā 976 ā ā 188 ā ā 444 ā ā 78 ā ā 1,887 ā ā 8,862 FICO greater than 720 ā ā 4,066 ā ā 3,088 ā ā 979 ā ā 468 ā ā 58 ā ā 18 ā ā 3,385 ā ā 12,062 Substandard non-accrual ā ā ā ā ā ā ā ā ā ā ā ā ā ā 23 ā ā 1 ā ā ā ā ā 24 Other (1) ā ā 3,891 ā ā 1,349 ā ā 416 ā ā 41 ā ā 14 ā ā 27 ā ā 355 ā ā 6,093 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total loans with credit quality measures ā $ 1,868,547 ā $ 1,466,740 ā $ 746,900 ā $ 512,012 ā $ 280,680 ā $ 636,621 ā $ 756,326 ā $ 6,267,826 Commercial and industrial (mortgage warehouse lending) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 505,976 Commercial and industrial (Paycheck Protection Program loans) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 133,223 Broker-Dealer (margin loans and correspondent receivables) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 645,901 Total loans held for investment ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 7,552,926 (1) Loans classified in this category were assigned a FICO score based on various factors specific to the borrower for credit modeling purposes. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | 7. Allowance for Credit Losses ā ā ā Available for Sale Securities and Held to Maturity Securities ā The Company has evaluated available for sale debt securities that are in an unrealized loss position and has determined that any decline in value is unrelated to credit loss and related to changes in market interest rates since purchase. None of the available for sale debt securities held were past due at September 30, 2021. In addition, as of September 30, 2021, the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis. The Company does not expect to have credit losses associated with the debt securities and no allowance was recognized on the debt securities portfolio at transition. ā Loans Held for Investment ā The allowance for credit losses for loans held for investment represents managementās best estimate of all expected credit losses over the expected contractual life of our existing portfolio. Management revised its methodology for determining the allowance for credit losses upon the implementation of the current expected credit losses (āCECLā) standard. Management considers the level of allowance for credit losses to be a reasonable and supportable estimate of expected credit losses inherent within the loans held for investment portfolio as of September 30, 2021. While the Company believes it has an appropriate allowance for the existing loan portfolio at September 30, 2021, additional provision for losses on existing loans may be necessary in the future. Future changes in the allowance for credit losses are expected to be volatile given dependence upon, among other things, the portfolio composition and quality, as well as the impact of significant drivers, including prepayment assumptions and macroeconomic conditions and forecasts. In addition to the allowance for credit losses, the Company maintains a separate allowance for credit losses related to off-balance sheet credit exposures, including unfunded loan commitments, and this amount is included in other liabilities within the consolidated balance sheets. For further information on the policies that govern the estimation of the allowances for credit losses levels, see Note 1 to the consolidated financial statements in the Companyās 2020 Form 10-K. ā One of the most significant judgments involved in estimating the Companyās allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the reasonable and supportable forecast period. To determine our best estimate of expected credit losses as of September 30, 2021, the Company utilized a single macroeconomic alternative baseline, or S7, scenario published by Moodyās Analytics in September 2021 that was updated to reflect the U.S. economic outlook. This alternative baseline scenario reflects the initial continuing recovery of the economy, as in the baseline scenario published by Moodyās Analytics, in addition to the risk of acceleration of inflation followed by a Federal Reserve policy response that would tighten credit and cause the economy to fall into recession. Significant variables that impact the modeled losses across our loan portfolios are the U.S. Real Gross Domestic Product, or GDP, growth rates and unemployment rate assumptions. Changes in these assumptions and forecasts of economic conditions could significantly affect the estimate of expected credit losses at the balance sheet date or between reporting periods. ā The COVID-19 pandemic disrupted financial markets and overall economic conditions that have affected borrowers across our lending portfolios. Significant judgment is required to estimate the severity and duration of the current economic uncertainties, as well as its potential impact on borrower defaults and loss severity. In particular, macroeconomic conditions and forecasts are rapidly changing and remain highly uncertain as COVID-19 cases and vaccine effectiveness, as well as government stimulus and policy measures, evolve nationally and in key geographies. ā During the first quarter of 2020, the Company adopted the new CECL standard and recorded transition adjustment entries that resulted in an allowance for credit losses of $73.7 million as of January 1, 2020, an increase of $12.6 million. This increase included an increase in credit losses of $18.9 million from the expansion of the loss horizon to life of loan, partially offset by the elimination of the non-credit component within the historical allowance related to previously categorized PCI loans of $6.3 million. ā During the three months ended September 30, 2020, the allowance included a net reversal of credit losses on individually evaluated loans of $1.2 million, while the provision for credit losses on expected losses of collectively evaluated loans accounted for $0.6 million of the total provision primarily due to the identified changes in the Bankās loan portfolio composition and credit quality being offset by improvements in macroeconomic factor assumptions and qualitative factors from the prior quarter. The change in the allowance during the three months ended September 30, 2020 was also impacted by net charge-offs of $0.6 million. During the nine months ended September 30, 2020, the significant build in the allowance included provision for credit losses on individually evaluated loans of $22.6 million, while the provision for credit losses on expected losses of collectively evaluated loans accounted for $77.2 million of the total provision primarily due to the increase in the expected lifetime credit losses under CECL attributable to the deteriorating economic outlook associated with the impact of the market disruption caused by the COVID-19 pandemic. The changes in the allowance for credit losses during the noted periods were also attributable to other factors including, but not limited to, loan growth and loan mix. The change in the allowance during the nine months ended September 30, 2020 was also impacted by net charge-offs of $18.5 million, primarily associated with loans specifically reserved for during the first quarter of 2020. ā During the three and nine months ended September 30, 2021, the decreases in the allowance reflect improvement in both realized economic results and the macroeconomic outlook and were significantly comprised of net reversals of credit losses on expected losses of collectively evaluated loans of $11.0 million and $45.2 million, respectively. Such reversals were primarily due to improvements in both macroeconomic forecast assumptions and credit quality metrics on COVID-19 impacted industry sector exposures. The net impact to the allowance of changes associated with individually evaluated loans during the three and nine months ended September 30, 2021 included a provision for credit losses of $5.2 million and $5.6 million, respectively. The changes in the allowance for credit losses during the noted periods were primarily attributable to the Bank and also reflected other factors including, but not limited to, loan mix, and changes in loan balances and qualitative factors from the prior quarter. The changes in the allowance during both the three and nine months ended September 30, 2021 were also impacted by net recoveries of $0.1 million. ā Changes in the allowance for credit losses for loans held for investment, distributed by portfolio segment, are shown below (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, Transition Provision for ā Recoveries on Balance, ā ā Beginning of ā Adjustment ā (Reversal of) ā Loans ā Charged Off ā End of Three Months Ended September 30, 2021 ā Period ā CECL ā Credit Losses ā Charged Off ā Loans ā Period Commercial real estate ā $ 77,633 ā $ ā ā $ (8,993) ā $ (124) ā $ 19 ā $ 68,535 Commercial and industrial ā 27,866 ā ā ā ā 2,398 ā ā (317) ā ā 598 ā 30,545 Construction and land development ā 5,185 ā ā ā ā (85) ā ā ā ā ā ā ā 5,100 1-4 family residential ā 3,659 ā ā ā ā 946 ā ā (87) ā ā 20 ā 4,538 Consumer ā ā 592 ā ā ā ā ā (41) ā ā (73) ā ā 26 ā ā 504 Broker-dealer ā ā 334 ā ā ā ā ā (44) ā ā ā ā ā ā ā ā 290 Total ā $ 115,269 ā $ ā ā $ (5,819) ā $ (601) ā $ 663 ā $ 109,512 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, Transition Provision for ā Recoveries on Balance, ā ā Beginning of ā Adjustment ā (Reversal of) ā Loans ā Charged Off ā End of Nine Months Ended September 30, 2021 ā Period ā CECL ā Credit Losses ā Charged Off ā Loans ā Period Commercial real estate ā $ 109,629 ā $ ā ā $ (41,037) ā $ (310) ā $ 253 ā $ 68,535 Commercial and industrial ā 27,703 ā ā ā ā ā 2,848 ā ā (1,738) ā ā 1,732 ā 30,545 Construction and land development ā 6,677 ā ā ā ā ā (1,577) ā ā ā ā ā ā ā 5,100 1-4 family residential ā 3,946 ā ā ā ā ā 358 ā ā (248) ā ā 482 ā 4,538 Consumer ā ā 876 ā ā ā ā ā (317) ā ā (226) ā ā 171 ā ā 504 Broker-dealer ā ā 213 ā ā ā ā ā 77 ā ā ā ā ā ā ā ā 290 Total ā $ 149,044 ā $ ā ā $ (39,648) ā $ (2,522) ā $ 2,638 ā $ 109,512 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, Transition Provision for ā Recoveries on Balance, ā ā Beginning of ā Adjustment ā (Reversal of) ā Loans ā Charged Off ā End of Three Months Ended September 30, 2020 ā Period ā CECL ā Credit Losses ā Charged Off ā Loans ā Period Commercial real estate ā $ 106,551 ā $ ā ā $ (2,527) ā $ (29) ā $ 571 ā $ 104,566 Commercial and industrial ā 31,863 ā ā ā ā ā 7,274 ā ā (1,341) ā ā 382 ā 38,178 Construction and land development ā 8,393 ā ā ā ā ā (2,123) ā ā ā ā ā ā ā 6,270 1-4 family residential ā 7,399 ā ā ā ā ā (2,213) ā ā (144) ā ā 10 ā 5,052 Consumer ā ā 1,429 ā ā ā ā ā (411) ā ā (100) ā ā 84 ā ā 1,002 Broker-dealer ā ā 748 ā ā ā ā ā (602) ā ā ā ā ā ā ā ā 146 Total ā $ 156,383 ā $ ā ā $ (602) ā $ (1,614) ā $ 1,047 ā $ 155,214 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, Transition Provision for ā Recoveries on Balance, ā ā Beginning of ā Adjustment ā (Reversal of) ā Loans ā Charged Off ā End of Nine Months Ended September 30, 2020 ā Period ā CECL ā Credit Losses ā Charged Off ā Loans ā Period Commercial real estate ā $ 31,595 ā $ 8,073 ā $ 68,823 ā $ (4,517) ā $ 592 ā $ 104,566 Commercial and industrial ā 17,964 ā ā 3,193 ā ā 30,896 ā ā (15,325) ā ā 1,450 ā 38,178 Construction and land development ā 4,878 ā ā 577 ā ā 815 ā ā (2) ā ā 2 ā 6,270 1-4 family residential ā 6,386 ā ā (29) ā ā (813) ā ā (517) ā ā 25 ā 5,052 Consumer ā ā 265 ā ā 748 ā ā 154 ā ā (473) ā ā 308 ā ā 1,002 Broker-dealer ā ā 48 ā ā ā ā ā 98 ā ā ā ā ā ā ā ā 146 Total ā $ 61,136 ā $ 12,562 ā $ 99,973 ā $ (20,834) ā $ 2,377 ā $ 155,214 ā Unfunded Loan Commitments ā The Bank uses a process similar to that used in estimating the allowance for credit losses on the funded portion to estimate the allowance for credit loss on unfunded loan commitments. The allowance is based on the estimated exposure at default, multiplied by the lifetime Probability of Default grade and Loss Given Default grade for that particular loan segment. The Bank estimates expected losses by calculating a commitment usage factor based on industry usage factors. The commitment usage factor is applied over the relevant contractual period. Loss factors from the underlying loans to which commitments are related are applied to the results of the usage calculation to estimate any liability for credit losses related for each loan type. The expected losses on unfunded commitments align with statistically calculated parameters used to calculate the allowance for credit losses on the funded portion. There is no reserve calculated for letters of credit as they are issued primarily as credit enhancements and the likelihood of funding is low. ā Changes in the allowance for credit losses for loans with off-balance sheet credit exposures are shown below (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā 2021 2020 ā 2021 ā 2020 Balance, beginning of period ā $ 7,981 ā $ 9,031 ā $ 8,388 ā $ 2,075 Transition adjustment CECL accounting standard ā ā ā ā ā ā ā ā ā ā ā 3,837 Other noninterest expense ā ā (1,183) ā ā 287 ā ā (1,590) ā ā 3,406 Balance, end of period ā $ 6,798 ā $ 9,318 ā $ 6,798 ā $ 9,318 ā As previously discussed, the Company adopted the new CECL standard and recorded a transition adjustment entry that resulted in an allowance for credit losses of $5.9 million as of January 1, 2020. During the three and nine months ended September 30, 2020, the increase in the reserve for unfunded commitments was primarily due to the macroeconomic uncertainties associated with the impact of the market disruption caused by COVID-19 conditions. During the three and nine months ended September 30, 2021, the decreases in the reserve for unfunded commitments were primarily due to improvements in loan expected loss rates. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2021 | |
Mortgage Servicing Rights | |
Mortgage Servicing Rights | 8. Mortgage Servicing Rights ā The following tables present the changes in fair value of the Companyās MSR asset and other information related to the serviced portfolio (dollars in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, Nine Months Ended September 30, ā ā 2021 ā 2020 2021 ā 2020 ā Balance, beginning of period $ 124,497 ā $ 81,264 ā $ 143,742 ā $ 55,504 ā Additions 20,252 ā 59,351 ā 70,368 ā 123,266 ā Sales (31,366) ā ā ā (116,000) ā (18,650) ā Changes in fair value: ā ā ā ā ā ā ā ā ā ā ā ā Due to changes in model inputs or assumptions (1) 3,525 ā (10,145) ā 32,199 ā (26,023) ā Due to customer payoffs (5,977) ā (2,758) ā (19,378) ā (6,385) ā Balance, end of period $ 110,931 ā $ 127,712 ā $ 110,931 ā $ 127,712 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā ā ā ā ā ā ā 2021 ā 2020 ā Mortgage loans serviced for others (2) ā ā ā ā ā ā $ 8,672,818 ā $ 14,643,623 ā MSR asset as a percentage of serviced mortgage loans ā ā ā ā ā ā 1.28 % 0.98 % (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. Included in the three and nine months ended September 30, 2021 are MSR asset fair value adjustments totaling $3.3 million and $22.2 million, respectively, which reflect the difference between the MSR asset carrying values and the sale prices reflected in the letters of intent to sell the applicable MSR assets. (2) Represents unpaid principal balance of mortgage loans serviced for others. ā The key assumptions used in measuring the fair value of the Companyās MSR asset were as follows. ā ā ā ā ā ā ā ā ā September 30, ā ā December 31, ā ā ā 2021 ā 2020 ā Weighted average constant prepayment rate 10.02 % ā 12.15 % Weighted average discount rate 14.31 % ā 14.60 % Weighted average life (in years) 7.1 ā ā 6.3 ā ā A sensitivity analysis of the fair value of the Companyās MSR asset to certain key assumptions is presented in the following table (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Constant prepayment rate: ā ā ā ā ā ā Impact of 10% adverse change ā $ (2,467) ā $ (5,639) Impact of 20% adverse change ā (5,043) ā (11,164) Discount rate: ā ā ā ā ā ā Impact of 10% adverse change ā (3,885) ā (6,435) Impact of 20% adverse change ā (7,399) ā (12,287) ā 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. ā Contractually specified servicing fees, late fees and ancillary fees earned of $15.6 million and $10.3 million during the three months ended September 30, 2021 and 2020, respectively, and $47.9 million and $21.3 million during the nine months ended September 30, 2021 and 2020, respectively, were included in net gains from sale of loans and other mortgage production income within the consolidated statements of operations. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits | |
Deposits | 9. Deposits ā Deposits are summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Noninterest-bearing demand ā $ 4,433,148 ā $ 3,612,384 Interest-bearing: ā ā ā ā ā ā Demand accounts ā 2,906,009 ā 2,399,341 Brokered - demand ā 104,796 ā 282,426 Money market ā 3,132,456 ā 2,716,878 Brokered - money market ā 108,196 ā 124,243 Savings ā 306,755 ā 276,327 Time ā 1,110,325 ā 1,506,435 Brokered - time ā 30,477 ā 324,285 ā ā $ 12,132,162 ā $ 11,242,319 ā |
Short-term Borrowings
Short-term Borrowings | 9 Months Ended |
Sep. 30, 2021 | |
Short-term Borrowings | |
Short-term Borrowings | 10. Short-term Borrowings ā Short-term borrowings are summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Federal funds purchased ā $ 159,825 ā $ 180,325 Securities sold under agreements to repurchase ā 155,294 ā 237,856 Federal Home Loan Bank ā ā ā ā Short-term bank loans ā ā 64,000 ā ā ā Commercial paper ā 367,921 ā 277,617 ā ā $ 747,040 ā $ 695,798 ā Federal Funds Purchased and Securities Sold under Agreements to Repurchase ā 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. ā Information concerning federal funds purchased and securities sold under agreements to repurchase is shown in the following tables (dollars in thousands). ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, ā ā ā 2021 ā 2020 Average balance during the period ā $ 328,853 ā $ 547,925 ā Average interest rate during the period ā 0.37 % ā 1.03 % ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2021 2020 ā Average interest rate at end of period ā 0.29 % ā 0.25 % Securities underlying the agreements at end of period: ā ā ā ā ā ā ā Carrying value ā $ 156,402 ā $ 237,913 ā Estimated fair value ā $ 172,111 ā $ 262,554 ā ā Federal Home Loan Bank (āFHLBā) ā FHLB short-term borrowings mature over terms not exceeding 365 days and are collateralized by FHLB Dallas stock, nonspecified real estate loans and certain specific commercial real estate loans. Other information regarding FHLB short-term borrowings is shown in the following table (dollars in thousands). ā ā ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, ā ā ā ā 2021 ā 2020 ā ā Average balance during the period ā $ ā ā $ 51,606 ā ā Average interest rate during the period ā ā ā % ā 1.62 % ā ā ā ā ā ā ā ā ā ā ā Short-Term Bank Loans ā 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 September 30, 2021 was 1.25%. ā Commercial Paper ā Hilltop Securities uses the net proceeds (after deducting related issuance expenses) from the sale of two commercial paper programs for general corporate purposes, including working capital and the funding of a portion of its securities inventories. The commercial paper notes (āCP Notesā) may be issued with maturities of 14 days to 270 days from the date of issuance. The CP Notes are issued under two separate programs, Series 2019-1 CP Notes and Series 2019-2 CP Notes, in maximum aggregate amounts of $300 million and $200 million, respectively. The CP Notes are not redeemable prior to maturity or subject to voluntary prepayment and do not bear interest, but are sold at a discount to par. The CP Notes are secured by a pledge of collateral owned by Hilltop Securities. As of September 30, 2021, the weighted average maturity of the CP Notes was 159 days at a rate of 1.06%, with a weighted average remaining life of 85 days. At September 30, 2021, the aggregate amount outstanding under these secured arrangements was $367.9 million, which was collateralized by securities held for firm accounts valued at $400.5 million. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2021 | |
Notes Payable | |
Notes Payable | 11. Notes Payable ā Notes payable consisted of the following (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Senior Notes due April 2025, net of discount of $931 and $1,063, respectively ā $ 149,069 ā $ 148,937 Subordinated Notes due May 2030, net of discount of $727 and $793, respectively ā ā 49,273 ā ā 49,207 Subordinated Notes due May 2035, net of discount of $2,264 and $2,392, respectively ā ā 147,736 ā ā 147,608 Ventures Management lines of credit ā 49,726 ā 36,235 ā ā $ 395,804 ā $ 381,987 ā |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | 12. Leases ā Supplemental balance sheet information related to finance leases is as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā ā December 31, ā ā 2021 ā ā 2020 Finance leases: ā ā ā ā ā ā Premises and equipment ā $ 7,780 ā $ 7,780 Accumulated depreciation ā ā (5,210) ā ā (4,768) Premises and equipment, net ā $ 2,570 ā $ 3,012 ā The components of lease costs, including short-term lease costs, are as follows (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā 2021 ā 2020 ā 2021 ā 2020 Operating lease cost ā $ 9,727 ā $ 11,067 ā $ 29,130 ā $ 32,318 Less operating lease and sublease income ā ā (343) ā ā (363) ā ā (1,024) ā ā (1,336) Net operating lease cost ā $ 9,384 ā $ 10,704 ā $ 28,106 ā $ 30,982 ā ā ā ā ā ā ā ā ā ā ā ā ā Finance lease cost: ā ā ā ā ā ā ā ā ā ā ā ā Amortization of ROU assets ā $ 147 ā $ 147 ā $ 442 ā $ 442 Interest on lease liabilities ā ā 129 ā ā 139 ā ā 396 ā ā 424 Total finance lease cost ā $ 276 ā $ 286 ā $ 838 ā $ 866 ā Supplemental cash flow information related to leases is as follows (in thousands). ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, ā ā 2021 ā 2020 Cash paid for amounts included in the measurement of lease liabilities: ā ā ā ā ā ā Operating cash flows from operating leases ā $ 28,160 ā $ 27,994 Operating cash flows from finance leases ā ā 396 ā ā 424 Financing cash flows from finance leases ā ā 509 ā ā 472 Right-of-use assets obtained in exchange for lease obligations: ā ā ā ā ā ā Operating leases ā $ 37,086 ā $ 8,773 Finance leases ā ā ā ā ā ā ā ā Information regarding the lease terms and discount rates of the Companyās leases is as follows. ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā ā Weighted Average ā ā ā Weighted Average ā ā ā ā Remaining Lease ā Weighted Average ā Remaining Lease ā Weighted Average Lease Classification ā Term (Years) ā Discount Rate ā Term (Years) ā Discount Rate Operating ā 6.0 ā 4.01 % ā 5.5 ā 4.67 % Finance ā 5.0 ā 4.83 % ā 5.6 ā 4.81 % ā Future minimum lease payments under lease agreements as of September 30, 2021, are presented below (in thousands). ā ā ā ā ā ā ā ā Operating Leases ā Finance Leases 2021 $ 444 ā $ 307 2022 ā 33,994 ā ā 1,241 2023 ā 29,196 ā ā 1,280 2024 ā 21,068 ā ā 1,163 2025 ā 15,669 ā ā 886 Thereafter ā 51,163 ā ā 1,411 Total minimum lease payments ā 151,534 ā ā 6,288 Less amount representing interest ā (17,238) ā ā (1,938) Lease liabilities $ 134,296 ā $ 4,350 ā As of September 30, 2021, the Company had additional operating leases that have not yet commenced with aggregate future minimum lease payments of approximately $1.6 million. These operating leases are expected to commence between October 2021 and December 2021 with lease terms ranging from three |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | 13. Income Taxes ā The Company applies an estimated annual effective rate to interim period pre-tax income to calculate the income tax provision for the quarter in accordance with the principal method prescribed by the accounting guidance established for computing income taxes in interim periods. The Companyās effective tax rates from continuing operations were 22.8% and 22.7% for the three months ended September 30, 2021 and 2020, respectively, and 23.2% and 23.0% for the nine months ended September 30, 2021 and 2020, respectively, and approximated the applicable statutory rates for such periods. ā |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 14. Commitments and Contingencies ā Legal Matters ā 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 Companyās 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. 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. ā 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. ā The Company is involved in information-gathering requests and investigations (both formal and informal), as well as reviews, examinations and proceedings (collectively, āInquiriesā) 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 could develop into administrative, civil or criminal proceedings or enforcement actions that could result in consequences that have a material effect on the Companyās 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 Companyās business practices, and could result in additional expenses and collateral costs, including reputational damage. ā PrimeLending received an investigative inquiry from the United States Attorney for the Western District of Virginia regarding PrimeLendingās float down option. At this time, the United States Attorney has requested certain materials with respect to this matter, and PrimeLending is fully cooperating with such requests. ā 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 Companyās 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 Companyās business, consolidated financial position, results of operations or cash flows for any particular reporting period of occurrence. ā Indemnification Liability Reserve ā 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. ā 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 claimantās losses. Upon completing its review of the claimantās 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. ā 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 segmentās history of successfully curing defects identified in claim requests. In addition, the mortgage origination segment has considered that GNMA, FNMA and FHLMC have imposed certain restrictions on loans the agencies will accept under a forbearance agreement resulting from the COVID-19 pandemic, which could increase the magnitude of indemnification losses on these loans. ā While the mortgage origination segmentās 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. ā At September 30, 2021 and December 31, 2020, the mortgage origination segmentās indemnification liability reserve totaled $26.0 million and $21.5 million, respectively. The provision for indemnification losses was $2.5 million and $3.1 million during the three months ended September 30, 2021 and 2020, respectively, and $8.0 million and $7.7 million during the nine months ended September 30, 2021 and 2020, respectively. ā 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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Representation and Warranty Specific Claims ā ā Activity - Origination Loan Balance ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā 2021 2020 ā 2021 2020 Balance, beginning of period ā $ 32,763 ā $ 35,194 ā $ 30,085 ā $ 32,144 Claims made ā 5,412 ā 2,558 ā 19,100 ā 14,770 Claims resolved with no payment ā (4,217) ā (45) ā (9,088) ā (1,702) Repurchases ā (3,981) ā (1,582) ā (9,238) ā (8,965) Indemnification payments ā (267) ā ā ā (1,149) ā (122) Balance, end of period ā $ 29,710 ā $ 36,125 ā $ 29,710 ā $ 36,125 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Indemnification Liability Reserve Activity ā Three Months Ended September 30, Nine Months Ended September 30, ā ā 2021 2020 2021 2020 Balance, beginning of period ā $ 26,372 ā $ 15,463 ā $ 21,531 ā $ 11,776 Additions for new sales ā 2,702 ā 3,066 ā 8,568 ā 6,688 Repurchases ā (2,687) ā (133) ā (3,086) ā (613) Early payment defaults ā (116) ā (413) ā (152) ā (815) Indemnification payments ā (78) ā ā ā (342) ā (40) Change in reserves for loans sold in prior years ā (220) ā ā ā (546) ā 987 Balance, end of period ā $ 25,973 ā $ 17,983 ā $ 25,973 ā $ 17,983 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā ā ā ā ā ā 2021 ā 2020 ā ā ā ā ā Reserve for Indemnification Liability: ā ā ā ā ā ā ā ā ā ā ā ā Specific claims ā $ 196 ā $ 961 ā ā ā ā ā ā Incurred but not reported claims ā 25,777 ā 20,570 ā ā ā ā ā ā Total ā $ 25,973 ā $ 21,531 ā ā ā ā ā ā ā 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. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2021 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | 15. Financial Instruments with Off-Balance Sheet Risk ā Banking ā 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. ā 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. ā In the aggregate, the Bank had outstanding unused commitments to extend credit of $2.1 billion at September 30, 2021 and outstanding financial and performance standby letters of credit of $87.2 million at September 30, 2021. ā The Bank uses the same credit policies in making commitments and standby letters of credit as it does for loans held for investment. The amount of collateral obtained, if deemed necessary, in these transactions is based on managementās 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. ā Broker-Dealer ā 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 | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 16. Stock-Based Compensation ā Since 2012, the Company has issued stock-based incentive awards pursuant to the Hilltop Holdings Inc. 2012 Equity Incentive Plan (the ā2012 Planā). In July 2020, pursuant to stockholdersā approval, the Company adopted the Hilltop Holdings Inc. 2020 Equity Incentive Plan (the ā2020 Planā). The 2020 Plan serves as successor to the 2012 Plan. The 2012 Plan and the 2020 Plan are referred to collectively as āthe Equity Plans.ā ā During the nine months ended September 30, 2021 and 2020, Hilltop granted 12,957 and 25,817 shares of common stock, respectively, pursuant to the Equity Plans to certain non-employee members of the Companyās board of directors for services rendered to the Company. ā Restricted Stock Units ā The following table summarizes information about nonvested restricted stock unit (āRSUā) activity for the nine months ended September 30, 2021 (shares in thousands). ā ā ā ā ā ā ā ā ā ā ā RSUs ā ā ā ā ā Weighted ā ā ā ā ā Average ā ā ā ā ā Grant Date ā Outstanding Fair Value Balance, December 31, 2020 ā 1,833 ā $ 21.48 ā Granted ā 532 ā $ 32.93 ā Vested/Released ā (473) ā $ 27.65 ā Forfeited ā (17) ā $ 22.51 Balance, September 30, 2021 ā 1,875 ā $ 23.17 ā Vested/Released RSUs include an aggregate of 78,432 shares withheld to satisfy employee statutory tax obligations during the nine months ended September 30, 2021. ā During the nine months ended September 30, 2021, the Compensation Committee of the board of directors of the Company awarded certain executives and key employees an aggregate of 471,505 RSUs pursuant to the Equity Plans. Of the RSUs granted during the nine months ended September 30, 2021, 318,387 that were outstanding at September 30, 2021, are subject to time-based vesting conditions and generally cliff vest on the third anniversary of the grant date. Of the RSUs granted during the nine months ended September 30, 2021, 150,668 that were outstanding at September 30, 2021 ā At September 30, 2021, in the aggregate, 1,510,530 of the outstanding RSUs are subject to time-based vesting conditions and generally cliff vest on the third anniversary of the grant date, and 364,149 outstanding RSUs cliff vest based upon the achievement of certain performance goals over a three-year period. At September 30, 2021 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Matters | |
Regulatory Matters | 17. Regulatory Matters ā Banking and Hilltop ā PlainsCapital, which includes the Bank and PrimeLending, and Hilltop are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory ā and possibly additional discretionary ā actions by regulators that, if undertaken, could have a direct, material effect on the consolidated financial statements. The regulations require PlainsCapital and Hilltop to meet specific capital adequacy guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company performs reviews of the classification and calculation of risk-weighted assets to ensure accuracy and compliance with the Basel III regulatory capital requirements as implemented by the Board of Governors of the Federal Reserve System. 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). ā In order to avoid limitations on capital distributions, including dividend payments, stock repurchases and certain discretionary bonus payments to executive officers, Basel III requires banking organizations to maintain a capital conservation buffer above minimum risk-based capital requirements measured relative to risk-weighted assets. ā The following table shows PlainsCapitalās and Hilltopās actual capital amounts and ratios in accordance with Basel III compared to the regulatory minimum capital requirements including conservation buffer ratio in effect at the end of the period (dollars in thousands). Based on actual capital amounts and ratios shown in the following table, PlainsCapitalās ratios place it in the āwell capitalizedā (as defined) capital category under regulatory requirements. Actual capital amounts and ratios as of September 30, 2021 reflect PlainsCapitalās and Hilltopās decision to elect the transition option as issued by the federal banking regulatory agencies in March 2020 that permits banking institutions to mitigate the estimated cumulative regulatory capital effects from CECL over a five-year transitionary period. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Minimum ā ā ā ā ā ā ā ā ā ā ā ā ā ā Capital ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Requirements ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Including ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Conservation ā To Be Well ā ā September 30, 2021 ā December 31, 2020 ā Buffer ā Capitalized ā Amount Ratio Amount Ratio Ratio Ratio Tier 1 capital (to average assets): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā PlainsCapital ā $ 1,398,761 10.02 % $ 1,385,842 10.44 % 4.0 % 5.0 % Hilltop ā 2,209,309 12.64 % 2,111,580 12.64 % 4.0 % N/A ā Common equity Tier 1 capital ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā PlainsCapital ā ā 1,398,761 15.40 % ā 1,385,842 14.40 % 7.0 % 6.5 % Hilltop ā ā 2,209,309 21.28 % ā 2,046,580 18.97 % 7.0 % N/A ā Tier 1 capital (to risk-weighted assets): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā PlainsCapital ā 1,398,761 15.40 % 1,385,842 14.40 % 8.5 % 8.0 % Hilltop ā 2,209,309 21.28 % 2,111,580 19.57 % 8.5 % N/A ā Total capital (to risk-weighted assets): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā PlainsCapital ā 1,482,471 16.32 % 1,470,364 15.27 % 10.5 % 10.0 % Hilltop ā 2,492,353 24.00 % 2,409,684 22.34 % 10.5 % N/A ā ā Broker-Dealer ā Pursuant to the net capital requirements of the Securities Exchange Act of 1934, as amended (the āExchange Actā), Hilltop Securities has elected to determine its net capital requirements using the alternative method. Accordingly, Hilltop Securities is required to maintain minimum net capital, as defined in Rule 15c3-1 promulgated under the Exchange Act, equal to the greater of $1,000,000 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. Momentum 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 $250,000 or 6-2/3% of aggregate indebtedness. ā At September 30, 2021, the net capital position of each of the Hilltop Broker-Dealers was as follows (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā Momentum ā ā ā Hilltop ā Independent ā ā Securities Network Net capital ā $ 228,135 ā $ 4,111 ā Less: required net capital ā ā 11,249 ā ā 283 ā Excess net capital ā $ 216,886 ā $ 3,828 ā ā ā ā ā ā ā ā ā Net capital as a percentage of aggregate debit items ā ā 40.6 % ā ā ā Net capital in excess of 5% aggregate debit items ā $ 200,012 ā ā ā ā ā 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 for regulatory purposes under the provisions of the Exchange Act are restricted and not available for general corporate purposes. At September 30, 2021 and December 31, 2020, the Hilltop Broker-Dealers held cash of $269.5 million and $290.4 million, respectively, segregated in special reserve bank accounts for the benefit of customers. The Hilltop Broker-Dealers were not required to segregate cash and securities in special reserve accounts for the benefit of proprietary accounts of introducing broker-dealers at September 30, 2021 or December 31, 2020. ā Mortgage Origination ā 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 September 30, 2021, PrimeLending and its subsidiariesā net worth and liquidity exceeded the amounts required by both HUD and GNMA, as applicable. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity | |
Stockholders' Equity | 18. Stockholdersā Equity ā Dividends ā During the nine months ended September 30, 2021 and 2020, the Company declared and paid cash dividends of $0.36 and $0.27 per common share, or an aggregate of $29.5 million and $24.4 million, respectively. ā On October 28, 2021, Hilltopās board of directors declared a quarterly cash dividend of $0.12 per common share, payable on November 30, 2021, to all common stockholders of record as of the close of business on November 15, 2021. ā Stock Repurchases ā In January 2021, the Hilltop board of directors authorized a new stock repurchase program through January 2022, pursuant to which the Company was originally authorized to repurchase, in the aggregate, up to $75.0 million of its outstanding common stock. In July 2021, the Hilltop board of directors authorized an increase to the aggregate amount of common stock the Company may repurchase under this program by $75.0 million to $150.0 ā During the nine months ended September 30, 2021, the Company paid $123.6 million to repurchase an aggregate of 3,632,482 shares of common stock at a weighted average price of $34.01 per share. The Companyās stock repurchase program, prior year repurchases and related accounting policy are discussed in detail in Note 1 and Note 25 to the consolidated financial statements included in the Companyās 2020 Form 10-K. ā |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 19. Derivative Financial Instruments ā The Company uses various derivative financial instruments to mitigate interest rate risk. The Bankās 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 Bankās net interest margin. Additionally, the Bank manages variability of cash flows associated with its variable rate debt in interest-related cash outflows with interest rate swap contracts. PrimeLending has interest rate risk relative to interest rate lock commitments (āIRLCsā) 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 (āMBSsā) and Eurodollar futures. Additionally, PrimeLending has interest rate risk relative to its MSR asset and uses derivative instruments, including interest rate swaps and U.S. Treasury bond futures and options to hedge this risk. The Hilltop Broker-Dealers use forward commitments to both purchase and sell MBSs to facilitate customer transactions and as a means to hedge related exposure to interest rate risk in certain inventory positions. Additionally, Hilltop Securities uses various derivative instruments, including U.S. Treasury bond futures and options, Eurodollar futures and municipal market data, or MMD, rate locks, to hedge changes in the fair value of its securities. ā Non-Hedging Derivative Instruments and the Fair Value Option ā As discussed in Note 4 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 hedge accounting provisions. The fair values of PrimeLendingās 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. These 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 PrimeLendingās 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 PrimeLendingās loans held for sale and MSR asset is discussed in Note 8 to the consolidated financial statements. The fair values of the Hilltop Broker-Dealersā and the Bankās derivative instruments are recorded in other assets or other liabilities, as appropriate. Changes in the fair value of derivatives are presented in the following table (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā ā 2021 2020 2021 2020 ā Increase (decrease) in fair value of derivatives during period: ā ā ā ā ā ā ā ā ā ā ā ā ā PrimeLending ā $ 780 ā $ 23,286 ā $ 555 ā $ 90,429 ā Hilltop Broker-Dealers ā ā 11,427 ā ā (3,542) ā ā (3,845) ā ā 8,466 ā Bank ā ā 7 ā ā 118 ā ā 26 ā ā (17) ā ā Hedging Derivative Instruments ā The Company has entered into interest rate swap contracts to manage the exposure to changes in fair value associated with certain available for sale fixed rate collateralized mortgage backed securities and fixed rate loans held for investment attributable to changes in the designated benchmark interest rate. Certain of these fair value hedges have been designated as a last-of-layer hedge, which provides the Company the ability to execute a fair value hedge of the interest rate risk associated with a portfolio of similar prepayable assets whereby the last dollar amount estimated to remain in the portfolio of assets is identified as the hedged item. Additionally, the Company has outstanding interest rate swap contracts designated as cash flow hedges and utilized to manage the variability of cash flows associated with its variable rate borrowings. ā Under each of its interest rate swap contracts designated as hedges, the Company receives a floating rate and pays a fixed rate on the outstanding notional amount. The Company assesses the hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative. To the extent that the derivative instruments are highly effective in offsetting the variability of the hedged cash flows or fair value, changes in the fair value of the derivative are included as a component of other comprehensive loss on our consolidated balance sheets. Although the Company has determined at the onset of the hedges that the derivative instruments will be highly effective hedges throughout the term of the contract, any portion of derivative instruments subsequently determined to be ineffective will be recognized in earnings. ā Derivative positions are presented in the following table (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā Notional Estimated Notional Estimated ā ā Amount ā Fair Value ā Amount ā Fair Value Derivative instruments (not designated as hedges): ā ā ā ā ā ā ā ā ā ā ā ā IRLCs ā $ 2,061,068 ā $ 40,279 ā $ 2,470,013 ā $ 76,048 Commitments to purchase MBSs ā 1,759,435 ā 4,745 ā 2,478,041 ā 22,311 Commitments to sell MBSs ā ā 4,646,594 ā 14,703 ā 6,141,079 ā (40,621) Interest rate swaps ā ā 60,245 ā 27 ā 43,786 ā (2,196) U.S. Treasury bond futures and options (1) ā ā 215,600 ā ā ā 225,400 ā ā Eurodollar and other futures (1) ā ā 1,182,000 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Derivative instruments (designated as hedges): ā ā ā ā ā ā ā ā ā ā ā ā Interest rate swaps designated as cash flow hedges ā $ 150,000 ā $ (812) ā $ 105,000 ā $ (3,112) Interest rate swaps designated as fair value hedges (2) ā ā 172,751 ā ā 3,149 ā ā 60,618 ā ā (130) (1) Changes in the fair value of these contracts are settled daily with the respective counterparties of PrimeLending and the Hilltop Broker-Dealers. (2) The Company designated $172.8 million and $60.6 million as the hedged amount (from a closed portfolio of prepayable available for sale securities and loans held for investment with a carrying value of $169.6 million and $60.7 million as of September 30, 2021 and December 31, 2020, respectively), of which, a subset of these hedges are in last-of-layer hedging relationships. The cumulative basis adjustment included in the carrying value of the hedged items totaled $3.2 million and $0.1 million as of September 30, 2021 and December 31, 2020, respectively. ā The decrease in the estimated fair value of the IRLCs at September 30, 2021, compared to December 31, 2020, was driven by a decrease in the total volume of IRLCs in addition to a decrease in the average value of individual IRLCs. The decrease in the average value of individual IRLCs was due to an increase in mortgage interest rates throughout the nine months ended September 30, 2021. ā PrimeLending held no cash collateral advances, in other liabilities within the consolidated balance sheets, to offset net asset derivative positions on its commitments to sell MBSs at September 30, 2021. PrimeLending had advanced cash collateral totaling $26.1 million to offset net liability positions on its commitments to sell MBSs at December 31, 2020. In addition, PrimeLending and the Hilltop Broker-Dealers had advanced cash collateral totaling $0.7 million and $2.7 million on various derivative instruments at September 30, 2021 and December 31, 2020, respectively. The advanced cash collateral amounts are included in other assets within the consolidated balance sheets. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 9 Months Ended |
Sep. 30, 2021 | |
Balance Sheet Offsetting | |
Balance Sheet Offsetting | 20. Balance Sheet Offsetting ā 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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross Amounts Not Offset in ā ā ā ā ā ā ā ā ā ā ā Net Amounts ā the Balance Sheet ā ā ā ā Gross Amounts Gross Amounts of Assets ā Cash ā ā ā of Recognized ā Offset in the ā Presented in the ā Financial ā Collateral ā Net ā ā Assets ā Balance Sheet ā Balance Sheet ā Instruments ā Pledged ā Amount September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities borrowed: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā $ 1,377,261 ā $ ā ā $ 1,377,261 ā $ (1,318,830) ā $ ā ā $ 58,431 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate swaps: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 73 ā ā ā ā ā 73 ā ā (73) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Reverse repurchase agreements: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 155,908 ā ā ā ā ā 155,908 ā ā (155,908) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Forward MBS derivatives: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 20,650 ā (1,198) ā 19,452 ā (11,079) ā ā ā 8,373 ā ā $ 1,553,892 ā $ (1,198) ā $ 1,552,694 ā $ (1,485,890) ā $ ā ā $ 66,804 December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities borrowed: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā $ 1,338,855 ā $ ā ā $ 1,338,855 ā $ (1,273,955) ā $ ā ā $ 64,900 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Reverse repurchase agreements: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 80,319 ā ā ā ā ā 80,319 ā ā (79,925) ā ā ā ā ā 394 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Forward MBS derivatives: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 22,311 ā ā ā ā ā 22,311 ā ā (22,311) ā ā ā ā ā ā ā ā $ 1,441,485 ā $ ā ā $ 1,441,485 ā $ (1,376,191) ā $ ā ā $ 65,294 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross Amounts Not Offset in ā ā ā ā ā ā ā ā ā ā ā Net Amounts ā the Balance Sheet ā ā ā ā Gross Amounts Gross Amounts of Liabilities ā Cash ā ā ā of Recognized ā Offset in the ā Presented in the ā Financial ā Collateral ā Net ā ā Liabilities ā Balance Sheet ā Balance Sheet ā Instruments ā Pledged ā Amount September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities loaned: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā $ 1,350,722 ā $ ā ā $ 1,350,722 ā $ (1,283,622) ā $ ā ā $ 67,100 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate swaps: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 46 ā ā ā 46 ā ā ā ā ā 46 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Repurchase agreements: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 155,237 ā ā ā 155,237 ā (145,564) ā ā ā 9,673 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Forward MBS derivatives: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 4 ā ā ā 4 ā (4) ā ā ā ā ā ā $ 1,506,009 ā $ ā ā $ 1,506,009 ā $ (1,429,190) ā $ ā ā $ 76,819 December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities loaned: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā $ 1,245,066 ā $ ā ā $ 1,245,066 ā $ (1,179,090) ā $ ā ā $ 65,976 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate swaps: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 2,196 ā ā ā 2,196 ā (2,123) ā ā ā 73 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Repurchase agreements: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 237,856 ā ā ā 237,856 ā (237,856) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Forward MBS derivatives: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 40,741 ā (120) ā 40,621 ā (12,670) ā ā ā 27,951 ā ā $ 1,525,859 ā $ (120) ā $ 1,525,739 ā $ (1,431,739) ā $ ā ā $ 94,000 ā Secured Borrowing Arrangements ā Secured Borrowings (Repurchase Agreements) ā one ā Securities Lending Activities ā ā 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 Companyās collateral could fall below the amount of the indebtedness it secures. In rapidly appreciating markets, credit risk increases due to short positions. The Companyās 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. ā 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 September 30, 2021 and December 31, 2020. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Remaining Contractual Maturities ā ā Overnight and ā ā ā ā ā Greater Than ā ā ā September 30, 2021 ā Continuous ā Up to 30 Days ā 30-90 Days ā 90 Days ā Total Repurchase agreement transactions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. Treasury and agency securities ā $ ā ā $ 10,000 ā $ ā ā $ ā ā $ 10,000 Asset-backed securities ā ā 41,551 ā ā 21,781 ā ā 81,905 ā ā ā ā ā 145,237 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities lending transactions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate securities ā ā 113 ā ā ā ā ā ā ā ā ā ā ā 113 Equity securities ā ā 1,350,609 ā ā ā ā ā ā ā ā ā ā ā 1,350,609 Total ā $ 1,392,273 ā $ 31,781 ā $ 81,905 ā $ ā ā $ 1,505,959 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above ā ā ā ā $ 1,505,959 Amount related to agreements not included in offsetting disclosure above ā ā ā ā ā ā ā ā ā ā ā ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Remaining Contractual Maturities ā ā Overnight and ā ā ā ā ā Greater Than ā ā ā December 31, 2020 ā Continuous ā Up to 30 Days ā 30-90 Days ā 90 Days ā Total Repurchase agreement transactions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Asset-backed securities ā $ 110,831 ā $ ā ā $ 127,025 ā $ ā ā $ 237,856 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities lending transactions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate securities ā ā 113 ā ā ā ā ā ā ā ā ā ā ā 113 Equity securities ā ā 1,244,953 ā ā ā ā ā ā ā ā ā ā ā 1,244,953 Total ā $ 1,355,897 ā $ ā ā $ 127,025 ā $ ā ā $ 1,482,922 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above ā ā ā ā $ 1,482,922 Amount related to agreements not included in offsetting disclosure above ā ā ā ā ā ā ā ā ā ā ā ā ā $ ā ā |
Broker-Dealer and Clearing Orga
Broker-Dealer and Clearing Organization Receivables and Payables | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer and Clearing Organization Receivables and Payables | |
Broker-Dealer and Clearing Organization Receivables and Payables | 21. Broker-Dealer and Clearing Organization Receivables and Payables ā Broker-dealer and clearing organization receivables and payables consisted of the following (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Receivables: ā ā ā ā ā ā Securities borrowed ā $ 1,377,261 ā $ 1,338,855 Securities failed to deliver ā 38,447 ā 58,244 Other ā 3,944 ā 7,628 ā ā $ 1,419,652 ā $ 1,404,727 Payables: ā ā ā ā ā ā Securities loaned ā $ 1,350,722 ā $ 1,245,066 Correspondents ā 38,648 ā 33,547 Securities failed to receive ā 82,897 ā 61,589 Trades in process of settlement ā 21,126 ā 21,765 Other ā 3,530 ā 6,406 ā ā $ 1,496,923 ā $ 1,368,373 ā |
Segment and Related Information
Segment and Related Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment and Related Information | |
Segment and Related Information | 22. Segment and Related Information ā Following the sale of NLC on June 30, 2020, we have two primary business units within continuing operations, PCC (banking and mortgage origination) and Securities Holdings (broker-dealer). Under GAAP, our continuing operations business units are comprised of three reportable business segments organized primarily by the core products offered to the segmentsā respective customers: banking, broker-dealer and mortgage origination. These segments reflect the manner in which operations are managed and the criteria used by the chief operating decision maker, the Companyās President and Chief Executive Officer, to evaluate segment performance, develop strategy and allocate resources. ā The banking segment includes the operations of the Bank. The broker-dealer segment includes the operations of Securities Holdings and the mortgage origination segment is composed of PrimeLending. ā As discussed in Note 3 to the consolidated financial statements, during the first quarter of 2020, management had determined that the insurance segment met the criteria to be presented as discontinued operations. On June 30, 2020, Hilltop completed the sale of NLC, which comprised the operations of the former insurance segment. As a result, insurance segment results for the three and nine months ended September 30, 2020 have been presented as discontinued operations in the consolidated financial statements. There was no income from discontinued operations before taxes during the three months ended September 30, 2020, while income from discontinued operations before taxes was $2.1 million during the nine months ended September 30, 2020. ā 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. ā Balance sheet amounts not discussed previously and the elimination of intercompany transactions are included in āAll Other and Eliminations.ā The following tables present certain information about continuing operations reportable business segment revenues, operating results, goodwill and assets (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā ā All Other and Continuing Three Months Ended September 30, 2021 ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations Operations Net interest income (expense) ā $ 99,978 ā $ 10,427 ā $ (3,503) ā $ (4,341) ā $ 2,529 ā $ 105,090 Provision for (reversal of) credit losses ā ā (5,775) ā ā (44) ā ā ā ā ā ā ā ā ā ā (5,819) Noninterest income ā ā 11,727 ā ā 116,143 ā ā 242,270 ā ā 757 ā ā (2,952) ā 367,945 Noninterest expense ā 54,567 ā 109,193 ā 176,587 ā ā 15,355 ā (528) ā 355,174 Income (loss) from continuing operations before taxes ā $ 62,913 ā $ 17,421 ā $ 62,180 ā $ (18,939) ā $ 105 ā $ 123,680 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā ā ā ā All Other and ā Continuing Nine Months Ended September 30, 2021 ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations ā Operations Net interest income (expense) ā $ 309,330 ā $ 31,623 ā $ (16,554) ā $ (13,720) ā $ 8,009 ā $ 318,688 Provision for (reversal of) credit losses ā ā (39,725) ā ā 77 ā ā ā ā ā ā ā ā ā ā ā (39,648) Noninterest income ā ā 33,293 ā ā 298,229 ā ā 794,679 ā ā 8,140 ā ā (8,912) ā ā 1,125,429 Noninterest expense ā 167,869 ā 287,831 ā 573,884 ā 37,015 ā (1,395) ā 1,065,204 Income (loss) from continuing operations before taxes ā $ 214,479 ā $ 41,944 ā $ 204,241 ā $ (42,595) ā $ 492 ā $ 418,561 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā All Other and ā Continuing Three Months Ended September 30, 2020 ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations ā Operations Net interest income (expense) ā $ 96,416 ā $ 8,168 ā $ (2,349) ā $ (4,594) ā $ 4,259 ā $ 101,900 Provision for (reversal of) credit losses ā ā ā ā ā (602) ā ā ā ā ā ā ā ā ā ā ā (602) Noninterest income ā ā 9,819 ā ā 141,022 ā ā 355,471 ā ā 477 ā ā (4,078) ā ā 502,711 Noninterest expense ā 55,980 ā 114,393 ā 207,176 ā 21,999 ā (203) ā 399,345 Income (loss) from continuing operations before taxes ā $ 50,255 ā $ 35,399 ā $ 145,946 ā $ (26,116) ā $ 384 ā $ 205,868 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā All Other and Continuing Nine Months Ended September 30, 2020 ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations ā Operations Net interest income (expense) ā $ 284,440 ā $ 31,005 ā $ (3,647) ā $ (9,482) ā $ 14,478 ā $ 316,794 Provision for (reversal of) credit losses ā 99,875 ā ā 98 ā ā ā ā ā ā ā ā ā ā 99,973 Noninterest income ā 29,246 ā ā 350,192 ā ā 874,926 ā ā 3,315 ā ā (15,130) ā 1,242,549 Noninterest expense ā 169,569 ā 299,743 ā 547,222 ā ā 35,741 ā ā (820) ā 1,051,455 Income (loss) from continuing operations before taxes ā $ 44,242 ā $ 81,356 ā $ 324,057 ā $ (41,908) ā $ 168 ā $ 407,915 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā All Other and Continuing ā ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations ā Operations September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Goodwill ā $ 247,368 ā $ 7,008 ā $ 13,071 ā $ ā ā $ ā ā $ 267,447 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total assets ā $ 14,254,083 ā $ 3,426,534 ā $ 2,537,342 ā $ 2,926,781 ā $ (5,155,089) ā $ 17,989,651 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Goodwill ā $ 247,368 ā $ 7,008 ā $ 13,071 ā $ ā ā $ ā ā $ 267,447 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total assets ā $ 13,338,930 ā $ 3,196,346 ā $ 3,285,005 ā $ 2,823,374 ā $ (5,699,391) ā $ 16,944,264 ā |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings per Common Share | |
Earnings per Common Share | 23. Earnings per Common Share ā The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā 2021 2020 2021 2020 Basic earnings per share: ā ā ā ā ā ā ā ā ā ā ā ā Income from continuing operations ā $ 92,906 ā $ 152,543 ā $ 312,310 ā $ 296,729 Income from discontinued operations ā ā ā ā ā 736 ā ā ā ā ā 34,662 Income attributable to Hilltop ā $ 92,906 ā $ 153,279 ā $ 312,310 ā $ 331,391 ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding - basic ā 80,109 ā 90,200 ā 81,306 ā 90,291 ā ā ā ā ā ā ā ā ā ā ā ā ā Basic earnings per common share: ā ā ā ā ā ā ā ā ā ā ā ā Income from continuing operations ā $ 1.16 ā $ 1.69 ā $ 3.84 ā $ 3.29 Income from discontinued operations ā ā ā ā ā 0.01 ā ā ā ā ā 0.38 ā ā $ 1.16 ā $ 1.70 ā $ 3.84 ā $ 3.67 Diluted earnings per share: ā ā ā ā ā ā ā ā ā ā ā ā Income from continuing operations ā $ 92,906 ā $ 152,543 ā $ 312,310 ā $ 296,729 Income from discontinued operations ā ā ā ā ā 736 ā ā ā ā ā 34,662 Income attributable to Hilltop ā $ 92,906 ā $ 153,279 ā $ 312,310 ā $ 331,391 ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding - basic ā 80,109 ā 90,200 ā 81,306 ā 90,291 Effect of potentially dilutive securities ā 433 ā ā ā ā 457 ā ā Weighted average shares outstanding - diluted ā 80,542 ā 90,200 ā 81,763 ā 90,291 ā ā ā ā ā ā ā ā ā ā ā ā ā Diluted earnings per common share: ā ā ā ā ā ā ā ā ā ā ā ā Income from continuing operations ā $ 1.15 ā $ 1.69 ā $ 3.82 ā $ 3.29 Income from discontinued operations ā ā ā ā ā 0.01 ā ā ā ā ā 0.38 ā ā $ 1.15 ā $ 1.70 ā $ 3.82 ā $ 3.67 ā |
Summary of Significant Accoun_2
Summary of Significant Accounting and Reporting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting and Reporting Policies | |
Nature of Operations | Nature of Operations ā Hilltop Holdings Inc. (āHilltopā and, collectively with its subsidiaries, the āCompanyā) is a financial holding company registered under the Bank Holding Company Act of 1956. The Companyās primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank (the āBankā). In addition, the Company provides an array of financial products and services through its broker-dealer and mortgage origination subsidiaries. ā On June 30, 2020, Hilltop completed the sale of all of the outstanding capital stock of National Lloyds Corporation (āNLCā), which comprised the operations of the former insurance segment, for cash proceeds of $154.1 million, and was subject to post-closing adjustments. Accordingly, NLCās results for the three and nine months ended September 30, 2020 have been presented as discontinued operations in the consolidated financial statements. For further details, see Note 3 to the consolidated financial statements. ā The Company, headquartered in Dallas, Texas, provides its products and services through two primary business units within continuing operations, PlainsCapital Corporation (āPCCā) and Hilltop Securities Holdings LLC (āSecurities Holdingsā). 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, clearing, securities lending, structured finance and retail brokerage services throughout the United States. Unless otherwise noted, the Companyās notes to the consolidated financial statements present information limited to continuing operations. ā As a result of the spread of the novel coronavirus (āCOVID-19ā) pandemic, economic uncertainties have contributed to significant volatility in the global economy, as well as banking and other financial activity in the areas in which the Company operates. The effects of COVID-19 have had, and may continue to have, an adverse effect on the financial markets and overall economic conditions on an unprecedented scale. The Companyās business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19. COVID-19 presents material uncertainty which could have a material adverse effect on the Companyās business, financial condition, results of operations and cash flows. ā |
Basis of Presentation | Basis of Presentation ā The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (āGAAPā), and in conformity with the rules and regulations of the Securities and Exchange Commission (the āSECā). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Companyās Annual Report on Form 10-K for the year ended December 31, 2020 (ā2020 Form 10-Kā). Results for interim periods are not necessarily indicative of results to be expected for a full year or any future period. ā The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates regarding the allowance for credit losses, the fair values of financial instruments, the mortgage loan indemnification liability, and the potential impairment of goodwill and identifiable intangible 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. Actual amounts and values as of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date. ā 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, 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 (āPrimeLendingā). ā PrimeLending owns a 100% membership interest in PrimeLending Ventures Management, LLC (āVentures Managementā), which holds an ownership interest in and is the managing member of certain affiliated business arrangements (āABAsā). ā PCC also owned 100% of the outstanding common securities of PCC Statutory Trusts I, II, III and IV (the āTrustsā), which were not included in the consolidated financial statements under the requirements of the Variable Interest Entities (āVIEā) Subsections of the Financial Accounting Standards Board (āFASBā) Accounting Standards Codification (āASCā) because the primary beneficiaries of the Trusts are not within the consolidated group. Following receipt of regulatory approval, during June, July and August 2021, PCC submitted to the trustees of each of the Trusts notices to redeem in full outstanding junior subordinated debentures of $67.0 million issued by PCC, which resulted in the full redemption to the holders of the associated preferred securities and common securities during the third quarter of 2021. ā Hilltop has a 100% membership interest in Securities Holdings, which operates through its wholly owned subsidiaries, Hilltop Securities Inc. (āHilltop Securitiesā), Momentum Independent Network Inc. (āMomentum Independent Networkā and collectively with Hilltop Securities, the āHilltop Broker-Dealersā) and Hilltop Securities Asset Management, LLC. Hilltop Securities is a broker-dealer registered with the SEC and Financial Industry Regulatory Authority (āFINRAā) and a member of the New York Stock Exchange (āNYSEā), Momentum Independent Network is an introducing broker-dealer that is also registered with the SEC and FINRA. Hilltop Securities, Momentum Independent Network and Hilltop Securities Asset Management, LLC are registered investment advisers under the Investment Advisers Act of 1940. ā In addition, Hilltop owns 100% of the membership interest in each of HTH Hillcrest Project LLC (āHTH Project LLCā) and Hilltop % of the membership interest in HTH Diamond Hillcrest Land LLC (āHillcrest Land LLCā) 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 20 to the consolidated financial statements included in the Companyās 2020 Form 10-K and are collectively referred to as the āHilltop Plaza Entities.ā ā 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. ā 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. ā Significant accounting policies are detailed in Note 1 to the consolidated financial statements included in the Companyās 2020 Form 10-K. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations | |
Schedule of discontinued operations | ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā September 30, 2020 ā September 30, 2020 Interest income: ā ā ā ā ā Securities: ā ā ā ā ā Taxable $ ā ā $ 1,752 Other ā ā ā ā 71 Total interest income ā ā ā ā 1,823 ā ā ā ā ā ā Interest expense: ā ā ā ā ā Notes payable ā ā ā ā 775 ā ā ā ā ā ā Noninterest income: ā ā ā ā ā Net insurance premiums earned ā ā ā ā 65,077 Other ā ā ā ā 3,051 Total noninterest income ā ā ā ā 68,128 ā ā ā ā ā ā Noninterest expense: ā ā ā ā ā Employees' compensation and benefits ā ā ā ā 6,002 Occupancy and equipment, net ā ā ā ā 464 Professional services ā ā ā ā 18,201 Loss and loss adjustment expenses ā ā ā ā 38,419 Other ā ā ā ā 3,987 Total noninterest expense ā ā ā ā 67,073 ā ā ā ā ā ā Income from discontinued operations before income taxes ā ā ā ā 2,103 Gain on disposal of discontinued operations ā 736 ā ā 33,077 Income tax expense ā ā ā ā 518 Income from discontinued operations, net of income taxes $ 736 ā $ 34,662 |
Schedule of effects of reinsurance on premiums written and earned | The effects of reinsurance on premiums written and earned are included within discontinued operations and are summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā ā September 30, 2020 ā September 30, 2020 ā Written Earned Written Earned Premiums from direct business ā $ ā ā $ ā ā $ 63,811 ā $ 61,384 Reinsurance assumed ā ā ā ā ā 6,396 ā 6,452 Reinsurance ceded ā ā ā ā ā (2,759) ā (2,759) Net premiums ā $ ā ā $ ā ā $ 67,448 ā $ 65,077 |
Schedule of effects of reinsurance on incurred losses | ā The effects of reinsurance on incurred losses and LAE are included within discontinued operations and are as follows (in thousands). ā ā ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā September 30, 2020 September 30, 2020 Losses and LAE incurred ā $ ā ā $ 38,225 Reinsurance recoverables ā ā ā 194 Net loss and LAE incurred ā $ ā ā $ 38,419 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 1 Level 2 Level 3 Total September 30, 2021 ā Inputs ā Inputs ā Inputs ā Fair Value Trading securities ā $ 8,301 ā $ 601,512 ā $ ā ā $ 609,813 ā Available for sale securities ā ā ā ā ā 1,994,183 ā ā ā ā ā 1,994,183 ā Equity securities ā ā 221 ā ā ā ā ā ā ā ā 221 ā Loans held for sale ā ā ā ā ā 1,828,626 ā ā 72,519 ā ā 1,901,145 ā Derivative assets ā ā ā ā ā 89,440 ā ā ā ā ā 89,440 ā MSR asset ā ā ā ā ā ā ā ā 110,931 ā ā 110,931 ā Securities sold, not yet purchased ā ā 79,725 ā ā 33,339 ā ā ā ā ā 113,064 ā Derivative liabilities ā ā ā ā ā 27,349 ā ā ā ā ā 27,349 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 1 Level 2 Level 3 ā Total ā December 31, 2020 ā Inputs ā Inputs ā Inputs ā ā Fair Value ā Trading securities ā $ 45,390 ā $ 648,865 ā $ ā ā $ 694,255 ā Available for sale securities ā ā ā ā ā 1,462,205 ā ā ā ā ā 1,462,205 ā Equity securities ā ā 140 ā ā ā ā ā ā ā ā 140 ā Loans held for sale ā ā ā ā ā 2,449,588 ā ā 71,816 ā ā 2,521,404 ā Derivative assets ā ā ā ā ā 126,898 ā ā ā ā ā 126,898 ā MSR asset ā ā ā ā ā ā ā ā 143,742 ā ā 143,742 ā Securities sold, not yet purchased ā ā 54,494 ā ā 25,295 ā ā ā ā ā 79,789 ā Derivative liabilities ā ā ā ā ā 74,598 ā ā ā ā ā 74,598 ā ā |
Rollforward for financial instruments measured at fair value using Level 3 inputs | The following tables include a rollforward for those financial instruments measured at fair value using Level 3 inputs (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total Gains or Losses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (Realized or Unrealized) ā ā ā ā Balance, ā ā Transfers ā Included in Other ā ā ā Beginning of ā Purchases/ ā Sales/ ā to (from) ā Included in ā Comprehensive ā Balance, ā ā Period ā Additions ā Reductions ā Level 3 ā Net Income ā Income (Loss) ā End of Period Three months ended September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans held for sale ā $ 71,433 ā $ 18,817 ā $ (22,207) ā $ (2,291) ā $ 6,767 ā $ ā ā $ 72,519 MSR asset ā 124,497 ā ā 20,252 ā ā (31,366) ā ā ā ā ā (2,452) ā ā ā ā 110,931 Total ā $ 195,930 ā $ 39,069 ā $ (53,573) ā $ (2,291) ā $ 4,315 ā $ ā ā $ 183,450 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans held for sale ā $ 71,816 ā $ 50,273 ā $ (51,718) ā $ (4,099) ā $ 6,247 ā $ ā ā $ 72,519 MSR asset ā ā 143,742 ā ā 70,368 ā ā (116,000) ā ā ā ā ā 12,821 ā ā ā ā ā 110,931 Total ā $ 215,558 ā $ 120,641 ā $ (167,718) ā $ (4,099) ā $ 19,068 ā $ ā ā $ 183,450 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans held for sale ā $ 91,936 ā $ 5,338 ā $ (20,182) ā $ 1,097 ā $ (6,003) ā $ ā ā $ 72,186 MSR asset ā ā 81,264 ā ā 59,351 ā ā ā ā ā ā ā ā (12,903) ā ā ā ā ā 127,712 Total ā $ 173,200 ā $ 64,689 ā $ (20,182) ā $ 1,097 ā $ (18,906) ā $ ā ā $ 199,898 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans held for sale ā $ 67,195 ā $ 53,961 ā $ (51,125) ā $ 10,064 ā $ (7,909) ā $ ā ā $ 72,186 MSR asset ā ā 55,504 ā ā 123,266 ā ā (18,650) ā ā ā ā ā (32,408) ā ā ā ā ā 127,712 Total ā $ 122,699 ā $ 177,227 ā $ (69,775) ā $ 10,064 ā $ (40,317) ā $ ā ā $ 199,898 ā |
Schedule of significant unobservable inputs used in the fair value measurements | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Range (Weighted-Average) Financial instrument Valuation Technique Unobservable Inputs September 30, 2021 ā December 31, 2020 Loans ā Market comparable ā Projected price ā 94 - 96 % ( 96 %) ā 91 - 94 % ( 94 %) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā MSR asset ā Discounted cash flows ā Constant prepayment rate ā ā ā ā 10.02 % ā ā ā ā ā 12.15 % ā ā ā ā ā Discount rate ā ā ā ā 14.31 % ā ā ā ā ā 14.60 % ā |
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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, 2021 ā Three Months Ended September 30, 2020 ā ā Other Total ā Other Total ā ā Net ā Noninterest ā Changes in ā Net ā Noninterest ā Changes in ā ā Gains (Losses) ā Income ā Fair Value ā Gains (Losses) ā Income ā Fair Value Loans held for sale ā $ (32,694) ā $ ā ā $ (32,694) ā $ (9,167) ā $ ā ā $ (9,167) MSR asset ā (2,452) ā ā ā (2,452) ā (12,903) ā ā ā (12,903) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, 2021 ā Nine Months Ended September 30, 2020 ā ā Other Total ā Other Total ā ā Net ā Noninterest ā Changes in ā Net ā Noninterest ā Changes in ā ā Gains (Losses) ā Income ā Fair Value ā Gains (Losses) ā Income ā Fair Value Loans held for sale ā $ (55,211) ā $ ā ā $ (55,211) ā $ 49,311 ā $ ā ā $ 49,311 MSR asset ā 12,821 ā ā ā 12,821 ā (32,408) ā ā ā (32,408) |
Schedule of carrying values and estimated fair values of financial instruments | ā 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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Estimated Fair Value ā Carrying Level 1 Level 2 Level 3 ā ā September 30, 2021 ā Amount ā Inputs ā Inputs ā Inputs ā Total Financial assets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 2,463,517 ā $ 2,463,517 ā $ ā ā $ ā ā $ 2,463,517 Assets segregated for regulatory purposes ā ā 269,506 ā ā 269,506 ā ā ā ā ā ā ā ā 269,506 Securities purchased under agreements to resell ā ā 155,908 ā ā ā ā ā 155,908 ā ā ā ā ā 155,908 Held to maturity securities ā ā 277,419 ā ā ā ā ā 288,112 ā ā ā ā ā 288,112 Loans held for sale ā ā 207,733 ā ā ā ā ā 207,733 ā ā ā ā ā 207,733 Loans held for investment, net ā ā 7,443,414 ā ā ā ā ā 645,901 ā ā 7,084,518 ā ā 7,730,419 Broker-dealer and clearing organization receivables ā 1,419,652 ā ā ā 1,419,652 ā ā ā 1,419,652 Other assets ā 71,464 ā ā ā 69,938 ā 1,526 ā 71,464 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Financial liabilities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Deposits ā 12,132,162 ā ā ā 12,137,502 ā ā ā 12,137,502 Broker-dealer and clearing organization payables ā 1,496,923 ā ā ā 1,496,923 ā ā ā 1,496,923 Short-term borrowings ā 747,040 ā ā ā 747,040 ā ā ā 747,040 Debt ā 395,804 ā ā ā 395,804 ā ā ā 395,804 Other liabilities ā 10,099 ā ā ā 10,099 ā ā ā 10,099 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Estimated Fair Value ā Carrying Level 1 Level 2 Level 3 ā ā December 31, 2020 ā Amount ā Inputs ā Inputs ā Inputs ā Total Financial assets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 1,062,946 ā $ 1,062,946 ā $ ā ā $ ā ā $ 1,062,946 Assets segregated for regulatory purposes ā ā 290,357 ā ā 290,357 ā ā ā ā ā ā ā ā 290,357 Securities purchased under agreements to resell ā ā 80,319 ā ā ā ā ā 80,319 ā ā ā ā ā 80,319 Held to maturity securities ā ā 311,944 ā ā ā ā ā 326,671 ā ā ā ā ā 326,671 Loans held for sale ā ā 266,982 ā ā ā ā ā 266,982 ā ā ā ā ā 266,982 Loans held for investment, net ā ā 7,544,097 ā ā ā ā ā 437,007 ā ā 7,351,411 ā ā 7,788,418 Broker-dealer and clearing organization receivables ā 1,404,727 ā ā ā 1,404,727 ā ā ā 1,404,727 Other assets ā 74,881 ā ā ā 73,111 ā 1,770 ā 74,881 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Financial liabilities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Deposits ā 11,242,319 ā ā ā 11,256,629 ā ā ā 11,256,629 Broker-dealer and clearing organization payables ā 1,368,373 ā ā ā 1,368,373 ā ā ā 1,368,373 Short-term borrowings ā 695,798 ā ā ā 695,798 ā ā ā 695,798 Debt ā 448,999 ā ā ā 448,999 ā ā ā 448,999 Other liabilities ā 6,133 ā ā ā 6,133 ā ā ā 6,133 |
Schedule of adjustments to the carrying value of these investments | The following table presents the adjustments to the carrying value of these investments during the periods presented (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā 2021 2020 ā 2021 2020 Balance, beginning of period $ 26,988 $ 20,613 ā $ 22,844 $ 19,771 Upward adjustments ā ā 122 ā ā 2,221 ā ā 6,006 ā ā 3,852 Impairments and downward adjustments ā ā (253) ā ā (826) ā ā (1,017) ā ā (1,615) Dispositions ā (10,390) ā ā ā (11,366) ā ā Balance, end of period ā $ 16,467 ā $ 22,008 ā $ 16,467 ā $ 22,008 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Securities | |
Summary of trading securities | The fair value of trading securities is summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 U.S. Treasury securities $ 3,401 $ 40,491 U.S. government agencies: ā ā ā ā ā ā Bonds ā ā 14,883 ā ā 40 Residential mortgage-backed securities ā 196,241 ā 336,081 Commercial mortgage-backed securities ā ā ā 876 Collateralized mortgage obligations ā ā 54,065 ā ā 69,172 Corporate debt securities ā ā 72,029 ā ā 62,481 States and political subdivisions ā ā 264,044 ā ā 171,573 Private-label securitized product ā ā 177 ā ā 8,571 Other ā ā 4,973 ā ā 4,970 Totals ā $ 609,813 ā $ 694,255 |
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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Available for Sale ā ā Amortized ā Unrealized ā Unrealized ā ā ā September 30, 2021 ā Cost ā Gains ā Losses ā Fair Value U.S. Treasury securities ā $ 4,972 ā $ ā ā $ (16) ā $ 4,956 U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā Bonds ā ā 45,181 ā ā 1,010 ā ā (72) ā ā 46,119 Residential mortgage-backed securities ā 901,720 ā 10,784 ā (8,247) ā 904,257 Commercial mortgage-backed securities ā ā 205,290 ā 476 ā (8,129) ā 197,637 Collateralized mortgage obligations ā 794,258 ā 3,992 ā (4,241) ā 794,009 States and political subdivisions ā 45,574 ā 1,887 ā (256) ā 47,205 Totals ā $ 1,996,995 ā $ 18,149 ā $ (20,961) ā $ 1,994,183 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Available for Sale ā ā Amortized ā Unrealized ā Unrealized ā ā ā December 31, 2020 ā Cost ā Gains ā Losses ā Fair Value U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā Bonds ā $ 82,036 ā $ 1,095 ā $ (325) ā $ 82,806 Residential mortgage-backed securities ā 624,863 ā 17,194 ā (446) ā 641,611 Commercial mortgage-backed securities ā ā 124,929 ā 768 ā (1,159) ā 124,538 Collateralized mortgage obligations ā 559,362 ā 6,916 ā (370) ā 565,908 States and political subdivisions ā 44,729 ā 2,613 ā ā ā 47,342 Totals ā $ 1,435,919 ā $ 28,586 ā $ (2,300) ā $ 1,462,205 |
Summary of amortized cost and fair value of held to maturity securities | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held to Maturity ā ā Amortized ā Unrealized ā Unrealized ā ā ā September 30, 2021 Cost Gains Losses Fair Value U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā Residential mortgage-backed securities ā $ 10,755 ā $ 518 ā $ ā ā $ 11,273 Commercial mortgage-backed securities ā ā 150,060 ā 6,727 ā ā ā 156,787 Collateralized mortgage obligations ā 48,210 ā 1,070 ā ā ā 49,280 States and political subdivisions ā 68,394 ā 2,402 ā (24) ā 70,772 Totals ā $ 277,419 ā $ 10,717 ā $ (24) ā $ 288,112 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held to Maturity ā ā Amortized ā Unrealized ā Unrealized ā ā ā December 31, 2020 Cost Gains Losses Fair Value U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā Residential mortgage-backed securities ā $ 13,547 ā $ 708 ā $ ā ā $ 14,255 Commercial mortgage-backed securities ā ā 152,820 ā ā 9,205 ā ā ā ā ā 162,025 Collateralized mortgage obligations ā 74,932 ā 2,036 ā ā ā 76,968 States and political subdivisions ā 70,645 ā 2,778 ā ā ā 73,423 Totals ā $ 311,944 ā $ 14,727 ā $ ā ā $ 326,671 |
Schedule of information regarding available for sale securities that were in an unrealized loss position | Information regarding available for sale and held to maturity securities that were in an unrealized loss position is shown in the following tables (dollars in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā Number of ā ā Unrealized Number of ā ā Unrealized ā ā Securities ā Fair Value ā Losses ā Securities ā Fair Value ā Losses Available for Sale ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. treasury securities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 1 ā $ 4,956 ā $ 16 ā ā $ ā ā $ ā Unrealized loss for twelve months or longer ā ā ā ā ā ā ā ā ā ā ā 1 ā 4,956 ā 16 ā ā ā ā ā U.S. government agencies: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Bonds: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 1 ā ā 4,985 ā ā 15 8 ā ā 60,298 ā ā 325 Unrealized loss for twelve months or longer 1 ā 6,389 ā 57 ā ā ā ā ā ā 2 ā ā 11,374 ā ā 72 8 ā 60,298 ā 325 Residential mortgage-backed securities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 58 ā 608,502 ā 7,983 15 ā 86,287 ā 429 Unrealized loss for twelve months or longer 5 ā 27,357 ā 264 ā ā ā ā ā ā 63 ā ā 635,859 ā ā 8,247 15 ā 86,287 ā 429 Commercial mortgage-backed securities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 11 ā 132,020 ā 4,765 10 ā 105,386 ā 1,176 Unrealized loss for twelve months or longer 7 ā 59,021 ā 3,364 ā ā ā ā ā ā 18 ā ā 191,041 ā ā 8,129 10 ā 105,386 ā 1,176 Collateralized mortgage obligations: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 39 ā 363,054 ā 3,943 10 ā 101,990 ā 324 Unrealized loss for twelve months or longer 7 ā 46,686 ā 298 5 ā 13,611 ā 46 ā 46 ā ā 409,740 ā ā 4,241 15 ā 115,601 ā 370 States and political subdivisions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 25 ā 8,993 ā 256 ā ā ā ā ā Unrealized loss for twelve months or longer ā ā ā ā ā ā ā ā ā ā ā 25 ā ā 8,993 ā ā 256 ā ā ā ā ā Total available for sale: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 135 ā 1,122,510 ā 16,978 43 ā 353,961 ā 2,254 Unrealized loss for twelve months or longer 20 ā 139,453 ā 3,983 5 ā 13,611 ā 46 ā 155 ā $ 1,261,963 ā $ 20,961 48 ā $ 367,572 ā $ 2,300 |
Schedule of information regarding held to maturity securities that were in an unrealized loss position | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā Number of ā ā Unrealized Number of ā ā Unrealized ā ā Securities ā Fair Value ā Losses ā Securities ā Fair Value ā Losses Held to Maturity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā States and political subdivisions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 6 ā $ 1,831 ā $ 21 2 ā $ 578 ā $ ā Unrealized loss for twelve months or longer 1 ā 264 ā 3 ā ā ā ā ā ā 7 ā 2,095 ā 24 2 ā 578 ā ā Total held to maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized loss for less than twelve months 6 ā 1,831 ā 21 2 ā 578 ā ā Unrealized loss for twelve months or longer 1 ā 264 ā 3 ā ā ā ā ā ā 7 ā $ 2,095 ā $ 24 2 ā $ 578 ā $ ā |
Schedule of amortized cost and fair value of securities, excluding trading and equity available for sale securities, by contractual maturity | The amortized cost and fair value of securities, excluding trading and equity securities, at September 30, 2021 are shown by contractual maturity below (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Available for Sale ā Held to Maturity ā Amortized ā ā Amortized ā ā ā ā Cost ā Fair Value Cost ā Fair Value Due in one year or less ā $ 2,025 ā $ 2,053 ā $ 667 ā $ 682 Due after one year through five years ā 36,055 ā 37,118 ā 1,179 ā 1,199 Due after five years through ten years ā 15,487 ā 16,096 ā 14,094 ā 14,643 Due after ten years ā 42,160 ā 43,013 ā 52,454 ā 54,248 ā ā 95,727 ā 98,280 ā 68,394 ā 70,772 ā ā ā ā ā ā ā ā ā ā ā ā ā Residential mortgage-backed securities ā 901,720 ā 904,257 ā 10,755 ā 11,273 Collateralized mortgage obligations ā 794,258 ā 794,009 ā 48,210 ā 49,280 Commercial mortgage-backed securities ā 205,290 ā 197,637 ā 150,060 ā 156,787 ā ā $ 1,996,995 ā $ 1,994,183 ā $ 277,419 ā $ 288,112 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans Held for Investment | |
Summary of loans held for investment by portfolio segment | Loans held for investment summarized by portfolio segment are as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Commercial real estate ā $ 3,032,141 ā $ 3,133,903 Commercial and industrial (1) ā 1,950,797 ā ā 2,627,774 Construction and land development ā 789,693 ā ā 828,852 1-4 family residential ā ā 1,104,847 ā ā 629,938 Consumer ā ā 29,547 ā ā 35,667 Broker-dealer (2) ā ā 645,901 ā ā 437,007 ā ā 7,552,926 ā 7,693,141 Allowance for credit losses ā (109,512) ā ā (149,044) Total loans held for investment, net of allowance ā $ 7,443,414 ā $ 7,544,097 (1) Included loans totaling $133.2 million and $486.7 million at September 30, 2021 and December 31, 2020, respectively, funded through the Paycheck Protection Program. (2) Primarily represents margin loans to customers and correspondents associated with broker-dealer segment operations. |
Summary of non-accrual loans by portfolio segment | The following table provides details associated with non-accrual loans, excluding those classified as held for sale (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Non-accrual Loans ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā Interest Income Recognized ā ā With ā With No ā ā ā ā With ā With No ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā Allowance Allowance Total Allowance Allowance Total 2021 2020 2021 2020 Commercial real estate: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Non-owner occupied ā $ 417 ā $ 900 ā $ 1,317 ā $ 1,213 ā $ 445 ā $ 1,658 ā $ 76 ā $ 99 ā $ 204 ā $ 88 Owner occupied ā 3,071 ā ā 1,317 ā ā 4,388 ā 3,473 ā ā 6,002 ā ā 9,475 ā ā 345 ā ā 156 ā ā 574 ā ā 241 Commercial and industrial ā ā 21,291 ā ā 8,517 ā ā 29,808 ā ā 10,821 ā ā 23,228 ā ā 34,049 ā ā 179 ā ā 312 ā ā 653 ā ā 714 Construction and land development ā 2 ā ā 364 ā ā 366 ā 102 ā ā 405 ā ā 507 ā ā 13 ā ā 36 ā ā 48 ā ā 89 1-4 family residential ā 1,432 ā ā 18,476 ā ā 19,908 ā 4,726 ā ā 16,651 ā ā 21,377 ā ā 796 ā ā 134 ā ā 2,837 ā ā 1,299 Consumer ā 24 ā ā ā ā ā 24 ā 28 ā ā ā ā ā 28 ā ā 1 ā ā 2 ā ā (120) ā ā (1) Broker-dealer ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 26,237 ā $ 29,574 ā $ 55,811 ā $ 20,363 ā $ 46,731 ā $ 67,094 ā $ 1,410 ā $ 739 ā $ 4,196 ā $ 2,430 |
Schedule of analysis of the aging of the entity's loan portfolio | An analysis of the aging of the Companyās loan portfolio is shown in the following tables (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accruing Loans ā ā Loans Past Due ā Loans Past Due ā Loans Past Due ā Total Past ā Current ā Total ā Past Due September 30, 2021 ā 30-59 Days ā 60-89 Days ā 90 Days or More ā Due Loans ā Loans ā Loans ā 90 Days or More Commercial real estate: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Non-owner occupied ā $ 1,621 ā $ ā ā $ 199 ā $ 1,820 ā $ 1,722,798 ā $ 1,724,618 ā $ ā Owner occupied ā 149 ā ā ā ā ā 2,274 ā ā 2,423 ā ā 1,305,100 ā ā 1,307,523 ā ā ā Commercial and industrial ā ā 603 ā ā 632 ā ā 13,936 ā ā 15,171 ā ā 1,935,626 ā ā 1,950,797 ā ā 1 Construction and land development ā 10 ā ā 77 ā ā ā ā ā 87 ā ā 789,606 ā ā 789,693 ā ā ā 1-4 family residential ā 4,009 ā ā 1,676 ā ā 7,021 ā ā 12,706 ā ā 1,092,141 ā ā 1,104,847 ā ā 88 Consumer ā 154 ā ā 3 ā ā 23 ā ā 180 ā ā 29,367 ā ā 29,547 ā ā ā Broker-dealer ā ā ā ā ā ā ā ā ā ā ā ā ā 645,901 ā ā 645,901 ā ā ā ā ā $ 6,546 ā $ 2,388 ā $ 23,453 ā $ 32,387 ā $ 7,520,539 ā $ 7,552,926 ā $ 89 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accruing Loans ā ā Loans Past Due ā Loans Past Due ā Loans Past Due ā Total Past ā Current ā Total ā Past Due December 31, 2020 ā 30-59 Days ā 60-89 Days ā 90 Days or More ā Due Loans ā Loans ā Loans ā 90 Days or More Commercial real estate: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Non-owner occupied ā $ 1,919 ā $ ā ā $ 199 ā $ 2,118 ā $ 1,786,193 ā $ 1,788,311 ā $ ā Owner occupied ā 195 ā ā 522 ā ā 8,328 ā ā 9,045 ā ā 1,336,547 ā ā 1,345,592 ā ā ā Commercial and industrial ā ā 3,114 ā ā 407 ā ā 7,318 ā ā 10,839 ā ā 2,616,935 ā ā 2,627,774 ā ā 6 Construction and land development ā 19 ā ā ā ā ā ā ā ā 19 ā ā 828,833 ā ā 828,852 ā ā ā 1-4 family residential ā 8,110 ā ā 3,040 ā ā 12,420 ā ā 23,570 ā ā 606,368 ā ā 629,938 ā ā ā Consumer ā 172 ā ā 123 ā ā 26 ā ā 321 ā ā 35,346 ā ā 35,667 ā ā ā Broker-dealer ā ā ā ā ā ā ā ā ā ā ā ā ā 437,007 ā ā 437,007 ā ā ā ā ā $ 13,529 ā $ 4,092 ā $ 28,291 ā $ 45,912 ā $ 7,647,229 ā $ 7,693,141 ā $ 6 |
Schedule of internal risk grades of loans by class | The following table presents loans held for investment grouped by asset class and credit quality indicator, segregated by year of origination or renewal (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Amortized Cost Basis by Origination Year ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2016 and ā ā ā ā ā ā September 30, 2021 ā 2021 ā 2020 ā 2019 ā 2018 ā 2017 ā ā Prior ā Revolving ā Total Commercial real estate: non-owner occupied ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 1-3 (Pass low risk) ā $ 17,984 ā $ 14,856 ā $ 24,145 ā $ 9,102 ā $ 1,379 ā $ 19,704 ā $ (4) ā $ 87,166 Internal Grade 4-7 (Pass normal risk) ā ā 235,408 ā ā 207,049 ā ā 113,457 ā ā 50,614 ā ā 42,473 ā ā 68,139 ā ā 33,405 ā ā 750,545 Internal Grade 8-11 (Pass high risk and watch) ā ā 92,225 ā ā 226,326 ā ā 128,586 ā ā 96,780 ā ā 56,898 ā ā 142,747 ā ā 1,219 ā ā 744,781 Internal Grade 12 (Special mention) ā ā ā ā ā ā ā ā 3,167 ā ā 1,210 ā ā ā ā ā 3,423 ā ā ā ā ā 7,800 Internal Grade 13 (Substandard accrual) ā ā 24,370 ā ā 8,995 ā ā 16,142 ā ā 16,866 ā ā 17,809 ā ā 48,727 ā ā 100 ā ā 133,009 Internal Grade 14 (Substandard non-accrual) ā ā 417 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 900 ā ā ā ā ā 1,317 Commercial real estate: owner occupied ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 1-3 (Pass low risk) ā $ 116,722 ā $ 64,383 ā $ 17,413 ā $ 29,476 ā $ 32,386 ā $ 37,852 ā $ 4 ā $ 298,236 Internal Grade 4-7 (Pass normal risk) ā ā 149,531 ā ā 123,342 ā ā 120,207 ā ā 89,486 ā ā 27,442 ā ā 83,316 ā ā 15,191 ā ā 608,515 Internal Grade 8-11 (Pass high risk and watch) ā ā 49,084 ā ā 107,022 ā ā 44,373 ā ā 83,934 ā ā 20,594 ā ā 34,431 ā ā 7,888 ā ā 347,326 Internal Grade 12 (Special mention) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 13 (Substandard accrual) ā ā 576 ā ā 14,642 ā ā 5,331 ā ā 7,691 ā ā 6,828 ā ā 13,990 ā ā ā ā ā 49,058 Internal Grade 14 (Substandard non-accrual) ā ā 1,602 ā ā ā ā ā (3) ā ā 350 ā ā 2,271 ā ā 168 ā ā ā ā ā 4,388 Commercial and industrial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 1-3 (Pass low risk) ā $ 20,215 ā $ 32,018 ā $ 26,301 ā $ 7,741 ā $ 8,963 ā $ 2,655 ā $ 58,993 ā $ 156,886 Internal Grade 4-7 (Pass normal risk) ā ā 87,493 ā ā 100,455 ā ā 31,496 ā ā 25,226 ā ā 15,217 ā ā 16,710 ā ā 275,095 ā ā 551,692 Internal Grade 8-11 (Pass high risk and watch) ā ā 84,927 ā ā 87,955 ā ā 39,591 ā ā 15,075 ā ā 7,662 ā ā 7,076 ā ā 292,171 ā ā 534,457 Internal Grade 12 (Special mention) ā ā ā ā ā 23 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2,106 ā ā 2,129 Internal Grade 13 (Substandard accrual) ā ā 2,250 ā ā 10,839 ā ā 1,471 ā ā 7,280 ā ā 4,212 ā ā 3,875 ā ā 6,699 ā ā 36,626 Internal Grade 14 (Substandard non-accrual) ā ā 6,619 ā ā 17,977 ā ā 511 ā ā 1,772 ā ā 225 ā ā 87 ā ā 2,617 ā ā 29,808 Construction and land development ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 1-3 (Pass low risk) ā $ 15,898 ā $ 27,992 ā $ 5,166 ā $ 3,746 ā $ 241 ā $ 4,078 ā $ 1,450 ā $ 58,571 Internal Grade 4-7 (Pass normal risk) ā ā 212,531 ā ā 170,416 ā ā 39,782 ā ā 11,603 ā ā 1,982 ā ā 3,310 ā ā 25,021 ā ā 464,645 Internal Grade 8-11 (Pass high risk and watch) ā ā 91,197 ā ā 75,871 ā ā 48,342 ā ā 1,125 ā ā 469 ā ā 1,945 ā ā 22,608 ā ā 241,557 Internal Grade 12 (Special mention) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Internal Grade 13 (Substandard accrual) ā ā ā ā ā ā ā ā 28 ā ā ā ā ā 5,347 ā ā ā ā ā ā ā ā 5,375 Internal Grade 14 (Substandard non-accrual) ā ā 381 ā ā ā ā ā ā ā ā ā ā ā ā ā ā (15) ā ā ā ā ā 366 Construction and land development - individuals ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā FICO less than 620 ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā FICO between 620 and 720 ā ā 944 ā ā 287 ā ā ā ā ā 1,226 ā ā ā ā ā ā ā ā ā ā ā 2,457 FICO greater than 720 ā ā 10,396 ā ā 5,744 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 16,140 Substandard non-accrual ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Other (1) ā ā 582 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 582 1-4 family residential ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā FICO less than 620 ā $ 472 ā $ 1,556 ā $ 722 ā $ 3,632 ā $ 53 ā $ 26,855 ā $ 255 ā $ 33,545 FICO between 620 and 720 ā ā 14,627 ā ā 12,452 ā ā 8,093 ā ā 7,748 ā ā 7,196 ā ā 35,937 ā ā 911 ā ā 86,964 FICO greater than 720 ā ā 561,557 ā ā 140,097 ā ā 60,302 ā ā 34,483 ā ā 19,508 ā ā 59,801 ā ā 3,757 ā ā 879,505 Substandard non-accrual ā ā ā ā ā 14 ā ā 1,063 ā ā 273 ā ā 122 ā ā 18,436 ā ā ā ā ā 19,908 Other (1) ā ā 58,137 ā ā 9,604 ā ā 8,406 ā ā 4,821 ā ā 790 ā ā 2,300 ā ā 867 ā ā 84,925 Consumer ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā FICO less than 620 ā $ 967 ā $ 577 ā $ 437 ā $ 55 ā $ 74 ā $ 50 ā $ 346 ā $ 2,506 FICO between 620 and 720 ā ā 3,478 ā ā 1,811 ā ā 976 ā ā 188 ā ā 444 ā ā 78 ā ā 1,887 ā ā 8,862 FICO greater than 720 ā ā 4,066 ā ā 3,088 ā ā 979 ā ā 468 ā ā 58 ā ā 18 ā ā 3,385 ā ā 12,062 Substandard non-accrual ā ā ā ā ā ā ā ā ā ā ā ā ā ā 23 ā ā 1 ā ā ā ā ā 24 Other (1) ā ā 3,891 ā ā 1,349 ā ā 416 ā ā 41 ā ā 14 ā ā 27 ā ā 355 ā ā 6,093 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total loans with credit quality measures ā $ 1,868,547 ā $ 1,466,740 ā $ 746,900 ā $ 512,012 ā $ 280,680 ā $ 636,621 ā $ 756,326 ā $ 6,267,826 Commercial and industrial (mortgage warehouse lending) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 505,976 Commercial and industrial (Paycheck Protection Program loans) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 133,223 Broker-Dealer (margin loans and correspondent receivables) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 645,901 Total loans held for investment ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 7,552,926 (1) Loans classified in this category were assigned a FICO score based on various factors specific to the borrower for credit modeling purposes. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Losses | |
Schedule of changes in the allowance for loan losses by portfolio segment | Changes in the allowance for credit losses for loans held for investment, distributed by portfolio segment, are shown below (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, Transition Provision for ā Recoveries on Balance, ā ā Beginning of ā Adjustment ā (Reversal of) ā Loans ā Charged Off ā End of Three Months Ended September 30, 2021 ā Period ā CECL ā Credit Losses ā Charged Off ā Loans ā Period Commercial real estate ā $ 77,633 ā $ ā ā $ (8,993) ā $ (124) ā $ 19 ā $ 68,535 Commercial and industrial ā 27,866 ā ā ā ā 2,398 ā ā (317) ā ā 598 ā 30,545 Construction and land development ā 5,185 ā ā ā ā (85) ā ā ā ā ā ā ā 5,100 1-4 family residential ā 3,659 ā ā ā ā 946 ā ā (87) ā ā 20 ā 4,538 Consumer ā ā 592 ā ā ā ā ā (41) ā ā (73) ā ā 26 ā ā 504 Broker-dealer ā ā 334 ā ā ā ā ā (44) ā ā ā ā ā ā ā ā 290 Total ā $ 115,269 ā $ ā ā $ (5,819) ā $ (601) ā $ 663 ā $ 109,512 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, Transition Provision for ā Recoveries on Balance, ā ā Beginning of ā Adjustment ā (Reversal of) ā Loans ā Charged Off ā End of Nine Months Ended September 30, 2021 ā Period ā CECL ā Credit Losses ā Charged Off ā Loans ā Period Commercial real estate ā $ 109,629 ā $ ā ā $ (41,037) ā $ (310) ā $ 253 ā $ 68,535 Commercial and industrial ā 27,703 ā ā ā ā ā 2,848 ā ā (1,738) ā ā 1,732 ā 30,545 Construction and land development ā 6,677 ā ā ā ā ā (1,577) ā ā ā ā ā ā ā 5,100 1-4 family residential ā 3,946 ā ā ā ā ā 358 ā ā (248) ā ā 482 ā 4,538 Consumer ā ā 876 ā ā ā ā ā (317) ā ā (226) ā ā 171 ā ā 504 Broker-dealer ā ā 213 ā ā ā ā ā 77 ā ā ā ā ā ā ā ā 290 Total ā $ 149,044 ā $ ā ā $ (39,648) ā $ (2,522) ā $ 2,638 ā $ 109,512 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, Transition Provision for ā Recoveries on Balance, ā ā Beginning of ā Adjustment ā (Reversal of) ā Loans ā Charged Off ā End of Three Months Ended September 30, 2020 ā Period ā CECL ā Credit Losses ā Charged Off ā Loans ā Period Commercial real estate ā $ 106,551 ā $ ā ā $ (2,527) ā $ (29) ā $ 571 ā $ 104,566 Commercial and industrial ā 31,863 ā ā ā ā ā 7,274 ā ā (1,341) ā ā 382 ā 38,178 Construction and land development ā 8,393 ā ā ā ā ā (2,123) ā ā ā ā ā ā ā 6,270 1-4 family residential ā 7,399 ā ā ā ā ā (2,213) ā ā (144) ā ā 10 ā 5,052 Consumer ā ā 1,429 ā ā ā ā ā (411) ā ā (100) ā ā 84 ā ā 1,002 Broker-dealer ā ā 748 ā ā ā ā ā (602) ā ā ā ā ā ā ā ā 146 Total ā $ 156,383 ā $ ā ā $ (602) ā $ (1,614) ā $ 1,047 ā $ 155,214 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, Transition Provision for ā Recoveries on Balance, ā ā Beginning of ā Adjustment ā (Reversal of) ā Loans ā Charged Off ā End of Nine Months Ended September 30, 2020 ā Period ā CECL ā Credit Losses ā Charged Off ā Loans ā Period Commercial real estate ā $ 31,595 ā $ 8,073 ā $ 68,823 ā $ (4,517) ā $ 592 ā $ 104,566 Commercial and industrial ā 17,964 ā ā 3,193 ā ā 30,896 ā ā (15,325) ā ā 1,450 ā 38,178 Construction and land development ā 4,878 ā ā 577 ā ā 815 ā ā (2) ā ā 2 ā 6,270 1-4 family residential ā 6,386 ā ā (29) ā ā (813) ā ā (517) ā ā 25 ā 5,052 Consumer ā ā 265 ā ā 748 ā ā 154 ā ā (473) ā ā 308 ā ā 1,002 Broker-dealer ā ā 48 ā ā ā ā ā 98 ā ā ā ā ā ā ā ā 146 Total ā $ 61,136 ā $ 12,562 ā $ 99,973 ā $ (20,834) ā $ 2,377 ā $ 155,214 |
Schedule of changes in the allowance for credit losses for loans with off-balance sheet credit exposures | Changes in the allowance for credit losses for loans with off-balance sheet credit exposures are shown below (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā 2021 2020 ā 2021 ā 2020 Balance, beginning of period ā $ 7,981 ā $ 9,031 ā $ 8,388 ā $ 2,075 Transition adjustment CECL accounting standard ā ā ā ā ā ā ā ā ā ā ā 3,837 Other noninterest expense ā ā (1,183) ā ā 287 ā ā (1,590) ā ā 3,406 Balance, end of period ā $ 6,798 ā $ 9,318 ā $ 6,798 ā $ 9,318 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Mortgage Servicing Rights | |
Schedule of change in fair value of the Company's MSR asset | The following tables present the changes in fair value of the Companyās MSR asset and other information related to the serviced portfolio (dollars in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, Nine Months Ended September 30, ā ā 2021 ā 2020 2021 ā 2020 ā Balance, beginning of period $ 124,497 ā $ 81,264 ā $ 143,742 ā $ 55,504 ā Additions 20,252 ā 59,351 ā 70,368 ā 123,266 ā Sales (31,366) ā ā ā (116,000) ā (18,650) ā Changes in fair value: ā ā ā ā ā ā ā ā ā ā ā ā Due to changes in model inputs or assumptions (1) 3,525 ā (10,145) ā 32,199 ā (26,023) ā Due to customer payoffs (5,977) ā (2,758) ā (19,378) ā (6,385) ā Balance, end of period $ 110,931 ā $ 127,712 ā $ 110,931 ā $ 127,712 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā ā ā ā ā ā ā 2021 ā 2020 ā Mortgage loans serviced for others (2) ā ā ā ā ā ā $ 8,672,818 ā $ 14,643,623 ā MSR asset as a percentage of serviced mortgage loans ā ā ā ā ā ā 1.28 % 0.98 % (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. Included in the three and nine months ended September 30, 2021 are MSR asset fair value adjustments totaling $3.3 million and $22.2 million, respectively, which reflect the difference between the MSR asset carrying values and the sale prices reflected in the letters of intent to sell the applicable MSR assets. (2) Represents unpaid principal balance of mortgage loans serviced for others. |
Schedule of key assumptions used in measuring the fair value of the Company's MSR | ā ā ā ā ā ā ā ā ā September 30, ā ā December 31, ā ā ā 2021 ā 2020 ā Weighted average constant prepayment rate 10.02 % ā 12.15 % Weighted average discount rate 14.31 % ā 14.60 % Weighted average life (in years) 7.1 ā ā 6.3 ā |
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 Companyās MSR asset to certain key assumptions is presented in the following table (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Constant prepayment rate: ā ā ā ā ā ā Impact of 10% adverse change ā $ (2,467) ā $ (5,639) Impact of 20% adverse change ā (5,043) ā (11,164) Discount rate: ā ā ā ā ā ā Impact of 10% adverse change ā (3,885) ā (6,435) Impact of 20% adverse change ā (7,399) ā (12,287) |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits | |
Summary of deposits | Deposits are summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Noninterest-bearing demand ā $ 4,433,148 ā $ 3,612,384 Interest-bearing: ā ā ā ā ā ā Demand accounts ā 2,906,009 ā 2,399,341 Brokered - demand ā 104,796 ā 282,426 Money market ā 3,132,456 ā 2,716,878 Brokered - money market ā 108,196 ā 124,243 Savings ā 306,755 ā 276,327 Time ā 1,110,325 ā 1,506,435 Brokered - time ā 30,477 ā 324,285 ā ā $ 12,132,162 ā $ 11,242,319 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Short-term borrowings | |
Schedule of short-term borrowings | Short-term borrowings are summarized as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Federal funds purchased ā $ 159,825 ā $ 180,325 Securities sold under agreements to repurchase ā 155,294 ā 237,856 Federal Home Loan Bank ā ā ā ā Short-term bank loans ā ā 64,000 ā ā ā Commercial paper ā 367,921 ā 277,617 ā ā $ 747,040 ā $ 695,798 |
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). ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, ā ā ā 2021 ā 2020 Average balance during the period ā $ 328,853 ā $ 547,925 ā Average interest rate during the period ā 0.37 % ā 1.03 % ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2021 2020 ā Average interest rate at end of period ā 0.29 % ā 0.25 % Securities underlying the agreements at end of period: ā ā ā ā ā ā ā Carrying value ā $ 156,402 ā $ 237,913 ā Estimated fair value ā $ 172,111 ā $ 262,554 ā |
FHLB notes | |
Short-term borrowings | |
Schedule of short-term borrowings | Other information regarding FHLB short-term borrowings is shown in the following table (dollars in thousands). ā ā ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, ā ā ā ā 2021 ā 2020 ā ā Average balance during the period ā $ ā ā $ 51,606 ā ā Average interest rate during the period ā ā ā % ā 1.62 % ā ā ā ā ā ā ā ā ā ā |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Payable | |
Schedule of notes payable | Notes payable consisted of the following (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Senior Notes due April 2025, net of discount of $931 and $1,063, respectively ā $ 149,069 ā $ 148,937 Subordinated Notes due May 2030, net of discount of $727 and $793, respectively ā ā 49,273 ā ā 49,207 Subordinated Notes due May 2035, net of discount of $2,264 and $2,392, respectively ā ā 147,736 ā ā 147,608 Ventures Management lines of credit ā 49,726 ā 36,235 ā ā $ 395,804 ā $ 381,987 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to finance leases is as follows (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā ā December 31, ā ā 2021 ā ā 2020 Finance leases: ā ā ā ā ā ā Premises and equipment ā $ 7,780 ā $ 7,780 Accumulated depreciation ā ā (5,210) ā ā (4,768) Premises and equipment, net ā $ 2,570 ā $ 3,012 ā |
Schedule of components of lease costs | The components of lease costs, including short-term lease costs, are as follows (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā 2021 ā 2020 ā 2021 ā 2020 Operating lease cost ā $ 9,727 ā $ 11,067 ā $ 29,130 ā $ 32,318 Less operating lease and sublease income ā ā (343) ā ā (363) ā ā (1,024) ā ā (1,336) Net operating lease cost ā $ 9,384 ā $ 10,704 ā $ 28,106 ā $ 30,982 ā ā ā ā ā ā ā ā ā ā ā ā ā Finance lease cost: ā ā ā ā ā ā ā ā ā ā ā ā Amortization of ROU assets ā $ 147 ā $ 147 ā $ 442 ā $ 442 Interest on lease liabilities ā ā 129 ā ā 139 ā ā 396 ā ā 424 Total finance lease cost ā $ 276 ā $ 286 ā $ 838 ā $ 866 |
Schedule of supplemental cash flow information | Supplemental cash flow information related to leases is as follows (in thousands). ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, ā ā 2021 ā 2020 Cash paid for amounts included in the measurement of lease liabilities: ā ā ā ā ā ā Operating cash flows from operating leases ā $ 28,160 ā $ 27,994 Operating cash flows from finance leases ā ā 396 ā ā 424 Financing cash flows from finance leases ā ā 509 ā ā 472 Right-of-use assets obtained in exchange for lease obligations: ā ā ā ā ā ā Operating leases ā $ 37,086 ā $ 8,773 Finance leases ā ā ā ā ā ā |
Schedule of lease terms and discount rates | Information regarding the lease terms and discount rates of the Companyās leases is as follows. ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā ā Weighted Average ā ā ā Weighted Average ā ā ā ā Remaining Lease ā Weighted Average ā Remaining Lease ā Weighted Average Lease Classification ā Term (Years) ā Discount Rate ā Term (Years) ā Discount Rate Operating ā 6.0 ā 4.01 % ā 5.5 ā 4.67 % Finance ā 5.0 ā 4.83 % ā 5.6 ā 4.81 % |
Schedule of future minimum lease payments under operating leases | Future minimum lease payments under lease agreements as of September 30, 2021, are presented below (in thousands). ā ā ā ā ā ā ā ā Operating Leases ā Finance Leases 2021 $ 444 ā $ 307 2022 ā 33,994 ā ā 1,241 2023 ā 29,196 ā ā 1,280 2024 ā 21,068 ā ā 1,163 2025 ā 15,669 ā ā 886 Thereafter ā 51,163 ā ā 1,411 Total minimum lease payments ā 151,534 ā ā 6,288 Less amount representing interest ā (17,238) ā ā (1,938) Lease liabilities $ 134,296 ā $ 4,350 ā |
Schedule of future minimum lease payments under finance leases | ā ā ā ā ā ā ā ā Operating Leases ā Finance Leases 2021 $ 444 ā $ 307 2022 ā 33,994 ā ā 1,241 2023 ā 29,196 ā ā 1,280 2024 ā 21,068 ā ā 1,163 2025 ā 15,669 ā ā 886 Thereafter ā 51,163 ā ā 1,411 Total minimum lease payments ā 151,534 ā ā 6,288 Less amount representing interest ā (17,238) ā ā (1,938) Lease liabilities $ 134,296 ā $ 4,350 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Schedule of rollforward 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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Representation and Warranty Specific Claims ā ā Activity - Origination Loan Balance ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā 2021 2020 ā 2021 2020 Balance, beginning of period ā $ 32,763 ā $ 35,194 ā $ 30,085 ā $ 32,144 Claims made ā 5,412 ā 2,558 ā 19,100 ā 14,770 Claims resolved with no payment ā (4,217) ā (45) ā (9,088) ā (1,702) Repurchases ā (3,981) ā (1,582) ā (9,238) ā (8,965) Indemnification payments ā (267) ā ā ā (1,149) ā (122) Balance, end of period ā $ 29,710 ā $ 36,125 ā $ 29,710 ā $ 36,125 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Indemnification Liability Reserve Activity ā Three Months Ended September 30, Nine Months Ended September 30, ā ā 2021 2020 2021 2020 Balance, beginning of period ā $ 26,372 ā $ 15,463 ā $ 21,531 ā $ 11,776 Additions for new sales ā 2,702 ā 3,066 ā 8,568 ā 6,688 Repurchases ā (2,687) ā (133) ā (3,086) ā (613) Early payment defaults ā (116) ā (413) ā (152) ā (815) Indemnification payments ā (78) ā ā ā (342) ā (40) Change in reserves for loans sold in prior years ā (220) ā ā ā (546) ā 987 Balance, end of period ā $ 25,973 ā $ 17,983 ā $ 25,973 ā $ 17,983 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā ā ā ā ā ā 2021 ā 2020 ā ā ā ā ā Reserve for Indemnification Liability: ā ā ā ā ā ā ā ā ā ā ā ā Specific claims ā $ 196 ā $ 961 ā ā ā ā ā ā Incurred but not reported claims ā 25,777 ā 20,570 ā ā ā ā ā ā Total ā $ 25,973 ā $ 21,531 ā ā ā ā ā ā ā |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Schedule of nonvested RSU activity | The following table summarizes information about nonvested restricted stock unit (āRSUā) activity for the nine months ended September 30, 2021 (shares in thousands). ā ā ā ā ā ā ā ā ā ā ā RSUs ā ā ā ā ā Weighted ā ā ā ā ā Average ā ā ā ā ā Grant Date ā Outstanding Fair Value Balance, December 31, 2020 ā 1,833 ā $ 21.48 ā Granted ā 532 ā $ 32.93 ā Vested/Released ā (473) ā $ 27.65 ā Forfeited ā (17) ā $ 22.51 Balance, September 30, 2021 ā 1,875 ā $ 23.17 ā |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 | The following table shows PlainsCapitalās and Hilltopās actual capital amounts and ratios in accordance with Basel III compared to the regulatory minimum capital requirements including conservation buffer ratio in effect at the end of the period (dollars in thousands). Based on actual capital amounts and ratios shown in the following table, PlainsCapitalās ratios place it in the āwell capitalizedā (as defined) capital category under regulatory requirements. Actual capital amounts and ratios as of September 30, 2021 reflect PlainsCapitalās and Hilltopās decision to elect the transition option as issued by the federal banking regulatory agencies in March 2020 that permits banking institutions to mitigate the estimated cumulative regulatory capital effects from CECL over a five-year transitionary period. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Minimum ā ā ā ā ā ā ā ā ā ā ā ā ā ā Capital ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Requirements ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Including ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Conservation ā To Be Well ā ā September 30, 2021 ā December 31, 2020 ā Buffer ā Capitalized ā Amount Ratio Amount Ratio Ratio Ratio Tier 1 capital (to average assets): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā PlainsCapital ā $ 1,398,761 10.02 % $ 1,385,842 10.44 % 4.0 % 5.0 % Hilltop ā 2,209,309 12.64 % 2,111,580 12.64 % 4.0 % N/A ā Common equity Tier 1 capital ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā PlainsCapital ā ā 1,398,761 15.40 % ā 1,385,842 14.40 % 7.0 % 6.5 % Hilltop ā ā 2,209,309 21.28 % ā 2,046,580 18.97 % 7.0 % N/A ā Tier 1 capital (to risk-weighted assets): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā PlainsCapital ā 1,398,761 15.40 % 1,385,842 14.40 % 8.5 % 8.0 % Hilltop ā 2,209,309 21.28 % 2,111,580 19.57 % 8.5 % N/A ā Total capital (to risk-weighted assets): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā PlainsCapital ā 1,482,471 16.32 % 1,470,364 15.27 % 10.5 % 10.0 % Hilltop ā 2,492,353 24.00 % 2,409,684 22.34 % 10.5 % N/A ā ā |
Schedule of net capital position | At September 30, 2021, the net capital position of each of the Hilltop Broker-Dealers was as follows (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā Momentum ā ā ā Hilltop ā Independent ā ā Securities Network Net capital ā $ 228,135 ā $ 4,111 ā Less: required net capital ā ā 11,249 ā ā 283 ā Excess net capital ā $ 216,886 ā $ 3,828 ā ā ā ā ā ā ā ā ā Net capital as a percentage of aggregate debit items ā ā 40.6 % ā ā ā Net capital in excess of 5% aggregate debit items ā $ 200,012 ā ā ā ā ā |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Financial Instruments | |
Schedule of changes in fair value of derivatives | Changes in the fair value of derivatives are presented in the following table (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā ā 2021 2020 2021 2020 ā Increase (decrease) in fair value of derivatives during period: ā ā ā ā ā ā ā ā ā ā ā ā ā PrimeLending ā $ 780 ā $ 23,286 ā $ 555 ā $ 90,429 ā Hilltop Broker-Dealers ā ā 11,427 ā ā (3,542) ā ā (3,845) ā ā 8,466 ā Bank ā ā 7 ā ā 118 ā ā 26 ā ā (17) ā |
Schedule of derivative positions | Derivative positions are presented in the following table (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2021 ā December 31, 2020 ā Notional Estimated Notional Estimated ā ā Amount ā Fair Value ā Amount ā Fair Value Derivative instruments (not designated as hedges): ā ā ā ā ā ā ā ā ā ā ā ā IRLCs ā $ 2,061,068 ā $ 40,279 ā $ 2,470,013 ā $ 76,048 Commitments to purchase MBSs ā 1,759,435 ā 4,745 ā 2,478,041 ā 22,311 Commitments to sell MBSs ā ā 4,646,594 ā 14,703 ā 6,141,079 ā (40,621) Interest rate swaps ā ā 60,245 ā 27 ā 43,786 ā (2,196) U.S. Treasury bond futures and options (1) ā ā 215,600 ā ā ā 225,400 ā ā Eurodollar and other futures (1) ā ā 1,182,000 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Derivative instruments (designated as hedges): ā ā ā ā ā ā ā ā ā ā ā ā Interest rate swaps designated as cash flow hedges ā $ 150,000 ā $ (812) ā $ 105,000 ā $ (3,112) Interest rate swaps designated as fair value hedges (2) ā ā 172,751 ā ā 3,149 ā ā 60,618 ā ā (130) (1) Changes in the fair value of these contracts are settled daily with the respective counterparties of PrimeLending and the Hilltop Broker-Dealers. (2) The Company designated $172.8 million and $60.6 million as the hedged amount (from a closed portfolio of prepayable available for sale securities and loans held for investment with a carrying value of $169.6 million and $60.7 million as of September 30, 2021 and December 31, 2020, respectively), of which, a subset of these hedges are in last-of-layer hedging relationships. The cumulative basis adjustment included in the carrying value of the hedged items totaled $3.2 million and $0.1 million as of September 30, 2021 and December 31, 2020, respectively. |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross Amounts Not Offset in ā ā ā ā ā ā ā ā ā ā ā Net Amounts ā the Balance Sheet ā ā ā ā Gross Amounts Gross Amounts of Assets ā Cash ā ā ā of Recognized ā Offset in the ā Presented in the ā Financial ā Collateral ā Net ā ā Assets ā Balance Sheet ā Balance Sheet ā Instruments ā Pledged ā Amount September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities borrowed: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā $ 1,377,261 ā $ ā ā $ 1,377,261 ā $ (1,318,830) ā $ ā ā $ 58,431 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate swaps: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 73 ā ā ā ā ā 73 ā ā (73) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Reverse repurchase agreements: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 155,908 ā ā ā ā ā 155,908 ā ā (155,908) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Forward MBS derivatives: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 20,650 ā (1,198) ā 19,452 ā (11,079) ā ā ā 8,373 ā ā $ 1,553,892 ā $ (1,198) ā $ 1,552,694 ā $ (1,485,890) ā $ ā ā $ 66,804 December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities borrowed: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā $ 1,338,855 ā $ ā ā $ 1,338,855 ā $ (1,273,955) ā $ ā ā $ 64,900 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Reverse repurchase agreements: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 80,319 ā ā ā ā ā 80,319 ā ā (79,925) ā ā ā ā ā 394 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Forward MBS derivatives: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 22,311 ā ā ā ā ā 22,311 ā ā (22,311) ā ā ā ā ā ā ā ā $ 1,441,485 ā $ ā ā $ 1,441,485 ā $ (1,376,191) ā $ ā ā $ 65,294 |
Schedule of the liabilities subject to an enforceable master netting arrangement or repurchase agreements | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross Amounts Not Offset in ā ā ā ā ā ā ā ā ā ā ā Net Amounts ā the Balance Sheet ā ā ā ā Gross Amounts Gross Amounts of Liabilities ā Cash ā ā ā of Recognized ā Offset in the ā Presented in the ā Financial ā Collateral ā Net ā ā Liabilities ā Balance Sheet ā Balance Sheet ā Instruments ā Pledged ā Amount September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities loaned: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā $ 1,350,722 ā $ ā ā $ 1,350,722 ā $ (1,283,622) ā $ ā ā $ 67,100 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate swaps: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 46 ā ā ā 46 ā ā ā ā ā 46 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Repurchase agreements: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 155,237 ā ā ā 155,237 ā (145,564) ā ā ā 9,673 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Forward MBS derivatives: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 4 ā ā ā 4 ā (4) ā ā ā ā ā ā $ 1,506,009 ā $ ā ā $ 1,506,009 ā $ (1,429,190) ā $ ā ā $ 76,819 December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities loaned: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā $ 1,245,066 ā $ ā ā $ 1,245,066 ā $ (1,179,090) ā $ ā ā $ 65,976 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate swaps: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā ā 2,196 ā ā ā 2,196 ā (2,123) ā ā ā 73 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Repurchase agreements: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 237,856 ā ā ā 237,856 ā (237,856) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Forward MBS derivatives: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Institutional counterparties ā 40,741 ā (120) ā 40,621 ā (12,670) ā ā ā 27,951 ā ā $ 1,525,859 ā $ (120) ā $ 1,525,739 ā $ (1,431,739) ā $ ā ā $ 94,000 |
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 September 30, 2021 and December 31, 2020. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Remaining Contractual Maturities ā ā Overnight and ā ā ā ā ā Greater Than ā ā ā September 30, 2021 ā Continuous ā Up to 30 Days ā 30-90 Days ā 90 Days ā Total Repurchase agreement transactions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. Treasury and agency securities ā $ ā ā $ 10,000 ā $ ā ā $ ā ā $ 10,000 Asset-backed securities ā ā 41,551 ā ā 21,781 ā ā 81,905 ā ā ā ā ā 145,237 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities lending transactions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate securities ā ā 113 ā ā ā ā ā ā ā ā ā ā ā 113 Equity securities ā ā 1,350,609 ā ā ā ā ā ā ā ā ā ā ā 1,350,609 Total ā $ 1,392,273 ā $ 31,781 ā $ 81,905 ā $ ā ā $ 1,505,959 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above ā ā ā ā $ 1,505,959 Amount related to agreements not included in offsetting disclosure above ā ā ā ā ā ā ā ā ā ā ā ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Remaining Contractual Maturities ā ā Overnight and ā ā ā ā ā Greater Than ā ā ā December 31, 2020 ā Continuous ā Up to 30 Days ā 30-90 Days ā 90 Days ā Total Repurchase agreement transactions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Asset-backed securities ā $ 110,831 ā $ ā ā $ 127,025 ā $ ā ā $ 237,856 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities lending transactions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate securities ā ā 113 ā ā ā ā ā ā ā ā ā ā ā 113 Equity securities ā ā 1,244,953 ā ā ā ā ā ā ā ā ā ā ā 1,244,953 Total ā $ 1,355,897 ā $ ā ā $ 127,025 ā $ ā ā $ 1,482,922 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above ā ā ā ā $ 1,482,922 Amount related to agreements not included in offsetting disclosure above ā ā ā ā ā ā ā ā ā ā ā ā ā $ ā |
Broker-Dealer and Clearing Or_2
Broker-Dealer and Clearing Organization Receivables and Payables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer and Clearing Organization Receivables and Payables | |
Schedule of broker-dealer and clearing organization receivables and payables | ā Broker-dealer and clearing organization receivables and payables consisted of the following (in thousands). ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2021 2020 Receivables: ā ā ā ā ā ā Securities borrowed ā $ 1,377,261 ā $ 1,338,855 Securities failed to deliver ā 38,447 ā 58,244 Other ā 3,944 ā 7,628 ā ā $ 1,419,652 ā $ 1,404,727 Payables: ā ā ā ā ā ā Securities loaned ā $ 1,350,722 ā $ 1,245,066 Correspondents ā 38,648 ā 33,547 Securities failed to receive ā 82,897 ā 61,589 Trades in process of settlement ā 21,126 ā 21,765 Other ā 3,530 ā 6,406 ā ā $ 1,496,923 ā $ 1,368,373 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 continuing operations reportable business segment revenues, operating results, goodwill and assets (in thousands). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā ā All Other and Continuing Three Months Ended September 30, 2021 ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations Operations Net interest income (expense) ā $ 99,978 ā $ 10,427 ā $ (3,503) ā $ (4,341) ā $ 2,529 ā $ 105,090 Provision for (reversal of) credit losses ā ā (5,775) ā ā (44) ā ā ā ā ā ā ā ā ā ā (5,819) Noninterest income ā ā 11,727 ā ā 116,143 ā ā 242,270 ā ā 757 ā ā (2,952) ā 367,945 Noninterest expense ā 54,567 ā 109,193 ā 176,587 ā ā 15,355 ā (528) ā 355,174 Income (loss) from continuing operations before taxes ā $ 62,913 ā $ 17,421 ā $ 62,180 ā $ (18,939) ā $ 105 ā $ 123,680 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā ā ā ā All Other and ā Continuing Nine Months Ended September 30, 2021 ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations ā Operations Net interest income (expense) ā $ 309,330 ā $ 31,623 ā $ (16,554) ā $ (13,720) ā $ 8,009 ā $ 318,688 Provision for (reversal of) credit losses ā ā (39,725) ā ā 77 ā ā ā ā ā ā ā ā ā ā ā (39,648) Noninterest income ā ā 33,293 ā ā 298,229 ā ā 794,679 ā ā 8,140 ā ā (8,912) ā ā 1,125,429 Noninterest expense ā 167,869 ā 287,831 ā 573,884 ā 37,015 ā (1,395) ā 1,065,204 Income (loss) from continuing operations before taxes ā $ 214,479 ā $ 41,944 ā $ 204,241 ā $ (42,595) ā $ 492 ā $ 418,561 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā All Other and ā Continuing Three Months Ended September 30, 2020 ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations ā Operations Net interest income (expense) ā $ 96,416 ā $ 8,168 ā $ (2,349) ā $ (4,594) ā $ 4,259 ā $ 101,900 Provision for (reversal of) credit losses ā ā ā ā ā (602) ā ā ā ā ā ā ā ā ā ā ā (602) Noninterest income ā ā 9,819 ā ā 141,022 ā ā 355,471 ā ā 477 ā ā (4,078) ā ā 502,711 Noninterest expense ā 55,980 ā 114,393 ā 207,176 ā 21,999 ā (203) ā 399,345 Income (loss) from continuing operations before taxes ā $ 50,255 ā $ 35,399 ā $ 145,946 ā $ (26,116) ā $ 384 ā $ 205,868 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā All Other and Continuing Nine Months Ended September 30, 2020 ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations ā Operations Net interest income (expense) ā $ 284,440 ā $ 31,005 ā $ (3,647) ā $ (9,482) ā $ 14,478 ā $ 316,794 Provision for (reversal of) credit losses ā 99,875 ā ā 98 ā ā ā ā ā ā ā ā ā ā 99,973 Noninterest income ā 29,246 ā ā 350,192 ā ā 874,926 ā ā 3,315 ā ā (15,130) ā 1,242,549 Noninterest expense ā 169,569 ā 299,743 ā 547,222 ā ā 35,741 ā ā (820) ā 1,051,455 Income (loss) from continuing operations before taxes ā $ 44,242 ā $ 81,356 ā $ 324,057 ā $ (41,908) ā $ 168 ā $ 407,915 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage ā All Other and Continuing ā ā Banking ā Broker-Dealer ā Origination ā Corporate ā Eliminations ā Operations September 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Goodwill ā $ 247,368 ā $ 7,008 ā $ 13,071 ā $ ā ā $ ā ā $ 267,447 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total assets ā $ 14,254,083 ā $ 3,426,534 ā $ 2,537,342 ā $ 2,926,781 ā $ (5,155,089) ā $ 17,989,651 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Goodwill ā $ 247,368 ā $ 7,008 ā $ 13,071 ā $ ā ā $ ā ā $ 267,447 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total assets ā $ 13,338,930 ā $ 3,196,346 ā $ 3,285,005 ā $ 2,823,374 ā $ (5,699,391) ā $ 16,944,264 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings per Common Share | |
Schedule of the computation of basic and diluted earnings per common share | ā The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā 2021 2020 2021 2020 Basic earnings per share: ā ā ā ā ā ā ā ā ā ā ā ā Income from continuing operations ā $ 92,906 ā $ 152,543 ā $ 312,310 ā $ 296,729 Income from discontinued operations ā ā ā ā ā 736 ā ā ā ā ā 34,662 Income attributable to Hilltop ā $ 92,906 ā $ 153,279 ā $ 312,310 ā $ 331,391 ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding - basic ā 80,109 ā 90,200 ā 81,306 ā 90,291 ā ā ā ā ā ā ā ā ā ā ā ā ā Basic earnings per common share: ā ā ā ā ā ā ā ā ā ā ā ā Income from continuing operations ā $ 1.16 ā $ 1.69 ā $ 3.84 ā $ 3.29 Income from discontinued operations ā ā ā ā ā 0.01 ā ā ā ā ā 0.38 ā ā $ 1.16 ā $ 1.70 ā $ 3.84 ā $ 3.67 Diluted earnings per share: ā ā ā ā ā ā ā ā ā ā ā ā Income from continuing operations ā $ 92,906 ā $ 152,543 ā $ 312,310 ā $ 296,729 Income from discontinued operations ā ā ā ā ā 736 ā ā ā ā ā 34,662 Income attributable to Hilltop ā $ 92,906 ā $ 153,279 ā $ 312,310 ā $ 331,391 ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding - basic ā 80,109 ā 90,200 ā 81,306 ā 90,291 Effect of potentially dilutive securities ā 433 ā ā ā ā 457 ā ā Weighted average shares outstanding - diluted ā 80,542 ā 90,200 ā 81,763 ā 90,291 ā ā ā ā ā ā ā ā ā ā ā ā ā Diluted earnings per common share: ā ā ā ā ā ā ā ā ā ā ā ā Income from continuing operations ā $ 1.15 ā $ 1.69 ā $ 3.82 ā $ 3.29 Income from discontinued operations ā ā ā ā ā 0.01 ā ā ā ā ā 0.38 ā ā $ 1.15 ā $ 1.70 ā $ 3.82 ā $ 3.67 |
Summary of Significant Accoun_3
Summary of Significant Accounting and Reporting Policies - Basis of Presentation, Ownership (Details) $ in Thousands | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($) |
Basis of Presentation | |||
Number of primary business units | item | 2 | ||
Junior subordinated debentures | $ 67,012 | ||
NLC | Discontinued Operations, Disposed of by sale | |||
Basis of Presentation | |||
Cash proceeds from sale | $ 154,100 | ||
PPC | |||
Basis of Presentation | |||
Ownership percentage | 100.00% | ||
Securities Holdings | |||
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% | ||
Junior subordinated debentures | $ 67,000 | ||
PlainsCapital (the Bank) | Prime Lending | |||
Basis of Presentation | |||
Ownership percentage | 100.00% | ||
Prime Lending | 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% |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Discontinued Operations, Disposed of by sale - NLC - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 |
Discontinued Operations | ||||
Cash proceeds from sale | $ 154,100 | |||
Net gains on disposal of discontinued operations | $ 736 | $ 33,077 | $ 36,800 | |
Transaction cost | $ 5,100 |
Discontinued Operations - Opera
Discontinued Operations - Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | |
Discontinued Operations | |||
Income from discontinued operations before income taxes | $ 0 | $ 2,100 | |
Income from discontinued operations, net of income taxes | 736 | 34,662 | |
Discontinued Operations, Disposed of by sale | NLC | |||
Discontinued Operations | |||
Securities: Taxable | 1,752 | ||
Other | 71 | ||
Total interest income | 1,823 | ||
Interest expense - notes payable | 775 | ||
Net insurance premiums earned | 65,077 | ||
Other | 3,051 | ||
Total noninterest income | 68,128 | ||
Employees' compensation and benefits | 6,002 | ||
Occupancy and equipment, net | 464 | ||
Professional services | 18,201 | ||
Loss and loss adjustment expenses | 38,419 | ||
Other | 3,987 | ||
Total noninterest expense | 67,073 | ||
Income from discontinued operations before income taxes | 2,103 | ||
Gain on disposal of discontinued operations | 736 | 33,077 | $ 36,800 |
Income tax expense | 518 | ||
Income from discontinued operations, net of income taxes | $ 736 | $ 34,662 |
Discontinued Operations - Effec
Discontinued Operations - Effects of Reinsurance (Details) - NLC - Discontinued Operations, Disposed of by sale $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Written | |
Premiums from direct business | $ 63,811 |
Reinsurance assumed | 6,396 |
Reinsurance ceded | (2,759) |
Net premiums | 67,448 |
Earned | |
Premiums from direct business | 61,384 |
Reinsurance assumed | 6,452 |
Reinsurance ceded | (2,759) |
Net premiums | 65,077 |
Effect of reinsurance on incurred losses | |
Losses and LAE incurred | 38,225 |
Reinsurance recoverables | 194 |
Net loss and LAE incurred | $ 38,419 |
Fair Value Measurements - FV Op
Fair Value Measurements - FV Option (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurements | ||
Mortgage loans held for sale, fair value | $ 1,900 | $ 2,520 |
Mortgage loans held for sale, unpaid principal balance | $ 1,850 | $ 2,410 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Trading securities | $ 609,813 | $ 694,255 |
Available for sale securities | 1,994,183 | 1,462,205 |
Equity securities | 221 | 140 |
MSR asset | 110,931 | 143,742 |
Financial liabilities: | ||
Securities sold, not yet purchased | 113,064 | 79,789 |
Recurring | ||
Financial assets: | ||
Trading securities | 609,813 | 694,255 |
Available for sale securities | 1,994,183 | 1,462,205 |
Equity securities | 221 | 140 |
Loans held for sale | 1,901,145 | 2,521,404 |
Derivative assets | 89,440 | 126,898 |
MSR asset | 110,931 | 143,742 |
Financial liabilities: | ||
Securities sold, not yet purchased | 113,064 | 79,789 |
Derivative liabilities | 27,349 | 74,598 |
Recurring | Level 1 | ||
Financial assets: | ||
Trading securities | 8,301 | 45,390 |
Equity securities | 221 | 140 |
Financial liabilities: | ||
Securities sold, not yet purchased | 79,725 | 54,494 |
Recurring | Level 2 | ||
Financial assets: | ||
Trading securities | 601,512 | 648,865 |
Available for sale securities | 1,994,183 | 1,462,205 |
Loans held for sale | 1,828,626 | 2,449,588 |
Derivative assets | 89,440 | 126,898 |
Financial liabilities: | ||
Securities sold, not yet purchased | 33,339 | 25,295 |
Derivative liabilities | 27,349 | 74,598 |
Recurring | Level 3 | ||
Financial assets: | ||
Loans held for sale | 72,519 | 71,816 |
MSR asset | $ 110,931 | $ 143,742 |
Fair Value Measurements - Roll
Fair Value Measurements - Roll Forward, Level 3 (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Rollforward for financial instruments measured at fair value using Level 3 inputs | ||||
Asset balance, beginning of period | $ 195,930 | $ 173,200 | $ 215,558 | $ 122,699 |
Purchases/Additions | 39,069 | 64,689 | 120,641 | 177,227 |
Sales/Reductions | (53,573) | (20,182) | (167,718) | (69,775) |
Transfers to (from) Level 3 | (2,291) | 1,097 | (4,099) | 10,064 |
Total gains or losses (realized or unrealized): | ||||
Included in Net Income | 4,315 | (18,906) | 19,068 | (40,317) |
Asset balance, end of period | 183,450 | 199,898 | 183,450 | 199,898 |
Loans Held for Sale | ||||
Rollforward for financial instruments measured at fair value using Level 3 inputs | ||||
Asset balance, beginning of period | 71,433 | 91,936 | 71,816 | 67,195 |
Purchases/Additions | 18,817 | 5,338 | 50,273 | 53,961 |
Sales/Reductions | (22,207) | (20,182) | (51,718) | (51,125) |
Transfers to (from) Level 3 | (2,291) | 1,097 | (4,099) | 10,064 |
Total gains or losses (realized or unrealized): | ||||
Included in Net Income | 6,767 | (6,003) | 6,247 | (7,909) |
Asset balance, end of period | 72,519 | 72,186 | 72,519 | 72,186 |
MSR asset | ||||
Rollforward for financial instruments measured at fair value using Level 3 inputs | ||||
Asset balance, beginning of period | 124,497 | 81,264 | 143,742 | 55,504 |
Purchases/Additions | 20,252 | 59,351 | 70,368 | 123,266 |
Sales/Reductions | (31,366) | (116,000) | (18,650) | |
Total gains or losses (realized or unrealized): | ||||
Included in Net Income | (2,452) | (12,903) | 12,821 | (32,408) |
Asset balance, end of period | $ 110,931 | $ 127,712 | $ 110,931 | $ 127,712 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3, Inputs, Recurring (Details) - Level 3 - Recurring | Sep. 30, 2021item | Dec. 31, 2020item |
Loans Held for Sale | ||
Significant unobservable inputs used in the fair value measurements | ||
Loans Held-for-sale, Valuation Technique [Extensible List] | hth:MarketComparisonValuationTechniqueMember | hth:MarketComparisonValuationTechniqueMember |
Loans Held-for-sale, Measurement Input [Extensible List] | Projected Price | Projected Price |
Loans Held for Sale | Projected Price | Weighted average | ||
Significant unobservable inputs used in the fair value measurements | ||
Loans Held-for-sale, Measurement Input | 0.96 | 0.94 |
Loans Held for Sale | Projected Price | Minimum | ||
Significant unobservable inputs used in the fair value measurements | ||
Loans Held-for-sale, Measurement Input | 0.94 | 0.91 |
Loans Held for Sale | Projected Price | Maximum | ||
Significant unobservable inputs used in the fair value measurements | ||
Loans Held-for-sale, Measurement Input | 0.96 | 0.94 |
MSR asset | Constant Prepayment Rate | ||
Significant unobservable inputs used in the fair value measurements | ||
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
MSR asset | Constant Prepayment Rate | Weighted average | ||
Significant unobservable inputs used in the fair value measurements | ||
Servicing Asset, Measurement Input | 0.1002 | 0.1215 |
MSR asset | Discount Rate | Weighted average | ||
Significant unobservable inputs used in the fair value measurements | ||
Servicing Asset, Measurement Input | 0.1431 | 0.1460 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in FV (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Transfers Between Level 1 and Level 2 | ||||
Transfers of assets from level 1 to level 2 | $ 0 | $ 0 | $ 0 | $ 0 |
Transfers of assets from level 2 to level 1 | 0 | 0 | 0 | 0 |
Transfers of liabilities from level 1 to level 2 | 0 | 0 | 0 | 0 |
Transfers of liabilities from level 2 to level 1 | 0 | 0 | 0 | 0 |
Fair Value Option | ||||
Net Gains (Losses) | 203,152 | 307,896 | 669,857 | 753,699 |
Other Noninterest Income | 41,955 | 77,772 | 110,856 | 171,309 |
Loans Held for Sale | ||||
Fair Value Option | ||||
Net Gains (Losses) | (32,694) | (9,167) | (55,211) | 49,311 |
Total Changes in Fair Value | (32,694) | (9,167) | (55,211) | 49,311 |
MSR asset | ||||
Fair Value Option | ||||
Net Gains (Losses) | (2,452) | (12,903) | 12,821 | (32,408) |
Total Changes in Fair Value | $ (2,452) | $ (12,903) | $ 12,821 | $ (32,408) |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Held to maturity securities | $ 288,112 | $ 326,671 |
Loans held for investment, net | 7,443,414 | 7,544,097 |
Broker-dealer and clearing organization receivables | 1,419,652 | 1,404,727 |
Financial liabilities: | ||
Broker-dealer and clearing organization payables | 1,496,923 | 1,368,373 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 2,463,517 | 1,062,946 |
Assets segregated for regulatory purposes | 269,506 | 290,357 |
Securities purchased under agreements to resell | 155,908 | 80,319 |
Held to maturity securities | 277,419 | 311,944 |
Loans held for sale | 207,733 | 266,982 |
Loans held for investment, net | 7,443,414 | 7,544,097 |
Broker-dealer and clearing organization receivables | 1,419,652 | 1,404,727 |
Other assets | 71,464 | 74,881 |
Financial liabilities: | ||
Deposits | 12,132,162 | 11,242,319 |
Broker-dealer and clearing organization payables | 1,496,923 | 1,368,373 |
Short-term borrowings | 747,040 | 695,798 |
Debt | 395,804 | 448,999 |
Other liabilities | 10,099 | 6,133 |
Estimate of Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 2,463,517 | 1,062,946 |
Assets segregated for regulatory purposes | 269,506 | 290,357 |
Securities purchased under agreements to resell | 155,908 | 80,319 |
Held to maturity securities | 288,112 | 326,671 |
Loans held for sale | 207,733 | 266,982 |
Loans held for investment, net | 7,730,419 | 7,788,418 |
Broker-dealer and clearing organization receivables | 1,419,652 | 1,404,727 |
Other assets | 71,464 | 74,881 |
Financial liabilities: | ||
Deposits | 12,137,502 | 11,256,629 |
Broker-dealer and clearing organization payables | 1,496,923 | 1,368,373 |
Short-term borrowings | 747,040 | 695,798 |
Debt | 395,804 | 448,999 |
Other liabilities | 10,099 | 6,133 |
Estimate of Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 2,463,517 | 1,062,946 |
Assets segregated for regulatory purposes | 269,506 | 290,357 |
Estimate of Fair Value | Level 2 | ||
Financial assets: | ||
Securities purchased under agreements to resell | 155,908 | 80,319 |
Held to maturity securities | 288,112 | 326,671 |
Loans held for sale | 207,733 | 266,982 |
Loans held for investment, net | 645,901 | 437,007 |
Broker-dealer and clearing organization receivables | 1,419,652 | 1,404,727 |
Other assets | 69,938 | 73,111 |
Financial liabilities: | ||
Deposits | 12,137,502 | 11,256,629 |
Broker-dealer and clearing organization payables | 1,496,923 | 1,368,373 |
Short-term borrowings | 747,040 | 695,798 |
Debt | 395,804 | 448,999 |
Other liabilities | 10,099 | 6,133 |
Estimate of Fair Value | Level 3 | ||
Financial assets: | ||
Loans held for investment, net | 7,084,518 | 7,351,411 |
Other assets | $ 1,526 | $ 1,770 |
Fair Value Measurements - Adjus
Fair Value Measurements - Adjustments to the carrying value of investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Adjustments to the carrying value of these investments | |||||
Balance, beginning of period | $ 26,988 | $ 20,613 | $ 22,844 | $ 19,771 | |
Upward adjustments | 122 | 2,221 | 6,006 | 3,852 | |
Impairments and downward adjustments | (253) | (826) | (1,017) | (1,615) | |
Dispositions | (10,390) | (11,366) | |||
Balance, end of period | 16,467 | $ 22,008 | 16,467 | $ 22,008 | |
Other Assets | |||||
Equity Securities without Readily Determinable Fair Value | |||||
Other equity investments | $ 53,900 | $ 53,900 | $ 63,600 |
Securities - Trading Securities
Securities - Trading Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of fair value of trading securities | ||
Debt Securities, Trading | $ 609,813 | $ 694,255 |
Investment-related Liabilities | ||
Securities sold, not yet purchased, at fair value | 113,064 | 79,789 |
US Treasury Securities | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | 3,401 | 40,491 |
Bonds | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | 14,883 | 40 |
Residential Mortgage Backed Securities | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | 196,241 | 336,081 |
Commercial mortgage-backed securities | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | 876 | |
Collateralized Mortgage Obligations | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | 54,065 | 69,172 |
Corporate debt securities | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | 72,029 | 62,481 |
States and political subdivisions | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | 264,044 | 171,573 |
Private-label securitized product | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | 177 | 8,571 |
Other | ||
Schedule of fair value of trading securities | ||
Debt Securities, Trading | $ 4,973 | $ 4,970 |
Securities - AFS and HTM, Amort
Securities - AFS and HTM, Amortized Cost and FV (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Available for sale | ||
Amortized cost | $ 1,996,995 | $ 1,435,919 |
Unrealized Gains | 18,149 | 28,586 |
Unrealized Losses | (20,961) | (2,300) |
Fair Value | 1,994,183 | 1,462,205 |
Held to maturity | ||
Amortized cost | 277,419 | 311,944 |
Unrealized Gains | 10,717 | 14,727 |
Unrealized Losses | (24) | |
Held to maturity, fair value | 288,112 | 326,671 |
Equity Securities | ||
Unrealized net gains from equity securities | 200 | 100 |
Equity, at fair value | 221 | 140 |
US Treasury Securities | ||
Available for sale | ||
Amortized cost | 4,972 | |
Unrealized Losses | (16) | |
Fair Value | 4,956 | |
Bonds | ||
Available for sale | ||
Amortized cost | 45,181 | 82,036 |
Unrealized Gains | 1,010 | 1,095 |
Unrealized Losses | (72) | (325) |
Fair Value | 46,119 | 82,806 |
Residential Mortgage Backed Securities | ||
Available for sale | ||
Amortized cost | 901,720 | 624,863 |
Unrealized Gains | 10,784 | 17,194 |
Unrealized Losses | (8,247) | (446) |
Fair Value | 904,257 | 641,611 |
Held to maturity | ||
Amortized cost | 10,755 | 13,547 |
Unrealized Gains | 518 | 708 |
Held to maturity, fair value | 11,273 | 14,255 |
Commercial mortgage-backed securities | ||
Available for sale | ||
Amortized cost | 205,290 | 124,929 |
Unrealized Gains | 476 | 768 |
Unrealized Losses | (8,129) | (1,159) |
Fair Value | 197,637 | 124,538 |
Held to maturity | ||
Amortized cost | 150,060 | 152,820 |
Unrealized Gains | 6,727 | 9,205 |
Held to maturity, fair value | 156,787 | 162,025 |
Collateralized Mortgage Obligations | ||
Available for sale | ||
Amortized cost | 794,258 | 559,362 |
Unrealized Gains | 3,992 | 6,916 |
Unrealized Losses | (4,241) | (370) |
Fair Value | 794,009 | 565,908 |
Held to maturity | ||
Amortized cost | 48,210 | 74,932 |
Unrealized Gains | 1,070 | 2,036 |
Held to maturity, fair value | 49,280 | 76,968 |
States and political subdivisions | ||
Available for sale | ||
Amortized cost | 45,574 | 44,729 |
Unrealized Gains | 1,887 | 2,613 |
Unrealized Losses | (256) | |
Fair Value | 47,205 | 47,342 |
Held to maturity | ||
Amortized cost | 68,394 | 70,645 |
Unrealized Gains | 2,402 | 2,778 |
Unrealized Losses | (24) | |
Held to maturity, fair value | $ 70,772 | $ 73,423 |
Securities - AFS in an Unrealiz
Securities - AFS in an Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Number of Securities | ||
Unrealized loss for less than twelve months | item | 135 | 43 |
Unrealized loss for twelve months or longer | item | 20 | 5 |
Total | item | 155 | 48 |
Fair Value | ||
Unrealized loss for less than twelve months | $ 1,122,510 | $ 353,961 |
Unrealized loss for twelve months or longer | 139,453 | 13,611 |
Total | 1,261,963 | 367,572 |
Unrealized Loss | ||
Unrealized loss for less than twelve months | 16,978 | 2,254 |
Unrealized loss for twelve months or longer | 3,983 | 46 |
Total | $ 20,961 | $ 2,300 |
US Treasury Securities | ||
Number of Securities | ||
Unrealized loss for less than twelve months | item | 1 | |
Total | item | 1 | |
Fair Value | ||
Unrealized loss for less than twelve months | $ 4,956 | |
Total | 4,956 | |
Unrealized Loss | ||
Unrealized loss for less than twelve months | 16 | |
Total | $ 16 | |
Bonds | ||
Number of Securities | ||
Unrealized loss for less than twelve months | item | 1 | 8 |
Unrealized loss for twelve months or longer | item | 1 | |
Total | item | 2 | 8 |
Fair Value | ||
Unrealized loss for less than twelve months | $ 4,985 | $ 60,298 |
Unrealized loss for twelve months or longer | 6,389 | |
Total | 11,374 | 60,298 |
Unrealized Loss | ||
Unrealized loss for less than twelve months | 15 | 325 |
Unrealized loss for twelve months or longer | 57 | |
Total | $ 72 | $ 325 |
Residential Mortgage Backed Securities | ||
Number of Securities | ||
Unrealized loss for less than twelve months | item | 58 | 15 |
Unrealized loss for twelve months or longer | item | 5 | |
Total | item | 63 | 15 |
Fair Value | ||
Unrealized loss for less than twelve months | $ 608,502 | $ 86,287 |
Unrealized loss for twelve months or longer | 27,357 | |
Total | 635,859 | 86,287 |
Unrealized Loss | ||
Unrealized loss for less than twelve months | 7,983 | 429 |
Unrealized loss for twelve months or longer | 264 | |
Total | $ 8,247 | $ 429 |
Commercial mortgage-backed securities | ||
Number of Securities | ||
Unrealized loss for less than twelve months | item | 11 | 10 |
Unrealized loss for twelve months or longer | item | 7 | |
Total | item | 18 | 10 |
Fair Value | ||
Unrealized loss for less than twelve months | $ 132,020 | $ 105,386 |
Unrealized loss for twelve months or longer | 59,021 | |
Total | 191,041 | 105,386 |
Unrealized Loss | ||
Unrealized loss for less than twelve months | 4,765 | 1,176 |
Unrealized loss for twelve months or longer | 3,364 | |
Total | $ 8,129 | $ 1,176 |
Collateralized Mortgage Obligations | ||
Number of Securities | ||
Unrealized loss for less than twelve months | item | 39 | 10 |
Unrealized loss for twelve months or longer | item | 7 | 5 |
Total | item | 46 | 15 |
Fair Value | ||
Unrealized loss for less than twelve months | $ 363,054 | $ 101,990 |
Unrealized loss for twelve months or longer | 46,686 | 13,611 |
Total | 409,740 | 115,601 |
Unrealized Loss | ||
Unrealized loss for less than twelve months | 3,943 | 324 |
Unrealized loss for twelve months or longer | 298 | 46 |
Total | $ 4,241 | $ 370 |
States and political subdivisions | ||
Number of Securities | ||
Unrealized loss for less than twelve months | item | 25 | |
Total | item | 25 | |
Fair Value | ||
Unrealized loss for less than twelve months | $ 8,993 | |
Total | 8,993 | |
Unrealized Loss | ||
Unrealized loss for less than twelve months | 256 | |
Total | $ 256 |
Securities - HTM in an Unrealiz
Securities - HTM in an Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Number of Securities | ||
Unrealized loss for less than twelve months | item | 6 | 2 |
Unrealized loss for twelve months or longer | item | 1 | |
Total | item | 7 | 2 |
Fair Value | ||
Unrealized loss for less than twelve months | $ 1,831 | $ 578 |
Unrealized loss for twelve months or longer | 264 | |
Total | 2,095 | $ 578 |
Unrealized Losses | ||
Unrealized loss for less than twelve months | 21 | |
Unrealized loss for twelve months or longer | 3 | |
Total | $ 24 | |
States and political subdivisions | ||
Number of Securities | ||
Unrealized loss for less than twelve months | item | 6 | 2 |
Unrealized loss for twelve months or longer | item | 1 | |
Total | item | 7 | 2 |
Fair Value | ||
Unrealized loss for less than twelve months | $ 1,831 | $ 578 |
Unrealized loss for twelve months or longer | 264 | |
Total | 2,095 | $ 578 |
Unrealized Losses | ||
Unrealized loss for less than twelve months | 21 | |
Unrealized loss for twelve months or longer | 3 | |
Total | $ 24 |
Securities - AFS Contractual Ma
Securities - AFS Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
AFS, Amortized Cost, Rolling Maturity | ||
Due in one year or less | $ 2,025 | |
Due after one year through five years | 36,055 | |
Due after five years through ten years | 15,487 | |
Due after ten years | 42,160 | |
Total | 95,727 | |
Amortized cost | 1,996,995 | $ 1,435,919 |
AFS, Fair Value, Rolling Maturity | ||
Due in one year or less | 2,053 | |
Due after one year through five years | 37,118 | |
Due after five years through ten years | 16,096 | |
Due after ten years | 43,013 | |
Total | 98,280 | |
Fair Value | 1,994,183 | 1,462,205 |
Residential Mortgage Backed Securities | ||
AFS, Amortized Cost, Rolling Maturity | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 901,720 | |
Amortized cost | 901,720 | 624,863 |
AFS, Fair Value, Rolling Maturity | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 904,257 | |
Fair Value | 904,257 | 641,611 |
Collateralized Mortgage Obligations | ||
AFS, Amortized Cost, Rolling Maturity | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 794,258 | |
Amortized cost | 794,258 | 559,362 |
AFS, Fair Value, Rolling Maturity | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 794,009 | |
Fair Value | 794,009 | 565,908 |
Commercial mortgage-backed securities | ||
AFS, Amortized Cost, Rolling Maturity | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 205,290 | |
Amortized cost | 205,290 | 124,929 |
AFS, Fair Value, Rolling Maturity | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 197,637 | |
Fair Value | $ 197,637 | $ 124,538 |
Securities - HTM Contractual Ma
Securities - HTM Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
HTM, Amortized Cost, Rolling Maturities | ||
Due in one year or less | $ 667 | |
Due after one year through five years | 1,179 | |
Due after five years through ten years | 14,094 | |
Due after ten years | 52,454 | |
Total | 68,394 | |
Amortized cost | 277,419 | $ 311,944 |
HTM, Fair Value, Rolling Maturities | ||
Due in one year or less | 682 | |
Due after one year through five years | 1,199 | |
Due after five years through ten years | 14,643 | |
Due after ten years | 54,248 | |
Total | 70,772 | |
Fair Value | 288,112 | 326,671 |
Residential Mortgage Backed Securities | ||
HTM, Amortized Cost, Rolling Maturities | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 10,755 | |
Amortized cost | 10,755 | 13,547 |
HTM, Fair Value, Rolling Maturities | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 11,273 | |
Fair Value | 11,273 | 14,255 |
Collateralized Mortgage Obligations | ||
HTM, Amortized Cost, Rolling Maturities | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 48,210 | |
Amortized cost | 48,210 | 74,932 |
HTM, Fair Value, Rolling Maturities | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 49,280 | |
Fair Value | 49,280 | 76,968 |
Commercial mortgage-backed securities | ||
HTM, Amortized Cost, Rolling Maturities | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 150,060 | |
Amortized cost | 150,060 | 152,820 |
HTM, Fair Value, Rolling Maturities | ||
Mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities | 156,787 | |
Fair Value | $ 156,787 | $ 162,025 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Securities | |||||
Realized net gains (losses) from trading securities portfolio | $ 2 | $ 86.2 | $ 21.8 | $ 106.7 | |
Realized net gains (losses) from other securities | (0.1) | 0.2 | |||
Carrying amount of securities pledged | 704.1 | 704.1 | $ 712.3 | ||
Fair value of securities pledged | 718.3 | 718.3 | $ 733.8 | ||
Hilltop Broker-Dealers | |||||
Securities | |||||
Realized net gains (losses) from trading securities portfolio | $ 17 | $ (14.4) | $ 52.1 | $ 27.8 |
Loans Held for Investment - Sum
Loans Held for Investment - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Loans | ||||||
Total loans | $ 7,552,926 | $ 7,693,141 | ||||
Allowance for loan losses | (109,512) | $ (115,269) | (149,044) | $ (155,214) | $ (156,383) | $ (61,136) |
Loans held for investment, net | 7,443,414 | 7,544,097 | ||||
Commercial real estate | ||||||
Loans | ||||||
Total loans | 3,032,141 | 3,133,903 | ||||
Allowance for loan losses | (68,535) | (77,633) | (109,629) | (104,566) | (106,551) | (31,595) |
Commercial and industrial | ||||||
Loans | ||||||
Total loans | 1,950,797 | 2,627,774 | ||||
Allowance for loan losses | (30,545) | (27,866) | (27,703) | (38,178) | (31,863) | (17,964) |
Commercial and industrial | Loans Funded Through Paycheck Protection Program | ||||||
Loans | ||||||
Total loans | 133,200 | 486,700 | ||||
Construction and land development | ||||||
Loans | ||||||
Total loans | 789,693 | 828,852 | ||||
Allowance for loan losses | (5,100) | (5,185) | (6,677) | (6,270) | (8,393) | (4,878) |
1 - 4 family residential | ||||||
Loans | ||||||
Total loans | 1,104,847 | 629,938 | ||||
Allowance for loan losses | (4,538) | (3,659) | (3,946) | (5,052) | (7,399) | (6,386) |
Consumer | ||||||
Loans | ||||||
Total loans | 29,547 | 35,667 | ||||
Allowance for loan losses | (504) | (592) | (876) | (1,002) | (1,429) | (265) |
Broker-dealer | ||||||
Loans | ||||||
Total loans | 645,901 | 437,007 | ||||
Allowance for loan losses | $ (290) | $ (334) | $ (213) | $ (146) | $ (748) | $ (48) |
Loans Held for Investment - Non
Loans Held for Investment - Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Non-accrual loans | |||||
Non-accrual Loans With Allowance | $ 26,237 | $ 26,237 | $ 20,363 | ||
Non-accrual Loans With No Allowance | 29,574 | 29,574 | 46,731 | ||
Non-accrual loans | 55,811 | 55,811 | 67,094 | ||
Interest Income Recognized | 1,410 | $ 739 | 4,196 | $ 2,430 | |
Decrease in non-accrual status loans | 11,300 | ||||
Commercial real estate | |||||
Non-accrual loans | |||||
Decrease in non-accrual status loans | 5,100 | ||||
Commercial real estate | Non-owner occupied | |||||
Non-accrual loans | |||||
Non-accrual Loans With Allowance | 417 | 417 | 1,213 | ||
Non-accrual Loans With No Allowance | 900 | 900 | 445 | ||
Non-accrual loans | 1,317 | 1,317 | 1,658 | ||
Interest Income Recognized | 76 | 99 | 204 | 88 | |
Commercial real estate | Owner occupied | |||||
Non-accrual loans | |||||
Non-accrual Loans With Allowance | 3,071 | 3,071 | 3,473 | ||
Non-accrual Loans With No Allowance | 1,317 | 1,317 | 6,002 | ||
Non-accrual loans | 4,388 | 4,388 | 9,475 | ||
Interest Income Recognized | 345 | 156 | 574 | 241 | |
Commercial and industrial | |||||
Non-accrual loans | |||||
Non-accrual Loans With Allowance | 21,291 | 21,291 | 10,821 | ||
Non-accrual Loans With No Allowance | 8,517 | 8,517 | 23,228 | ||
Non-accrual loans | 29,808 | 29,808 | 34,049 | ||
Interest Income Recognized | 179 | 312 | 653 | 714 | |
Decrease in non-accrual status loans | 4,200 | ||||
Construction and land development | |||||
Non-accrual loans | |||||
Non-accrual Loans With Allowance | 2 | 2 | 102 | ||
Non-accrual Loans With No Allowance | 364 | 364 | 405 | ||
Non-accrual loans | 366 | 366 | 507 | ||
Interest Income Recognized | 13 | 36 | 48 | 89 | |
1 - 4 family residential | |||||
Non-accrual loans | |||||
Non-accrual Loans With Allowance | 1,432 | 1,432 | 4,726 | ||
Non-accrual Loans With No Allowance | 18,476 | 18,476 | 16,651 | ||
Non-accrual loans | 19,908 | 19,908 | 21,377 | ||
Interest Income Recognized | 796 | 134 | 2,837 | 1,299 | |
Decrease in non-accrual status loans | 1,500 | ||||
1 - 4 family residential | Secured by Residential Properties | |||||
Non-accrual loans | |||||
Non-accrual loans held for sale | 5,300 | 5,300 | 10,900 | ||
Consumer | |||||
Non-accrual loans | |||||
Non-accrual Loans With Allowance | 24 | 24 | 28 | ||
Non-accrual loans | 24 | 24 | $ 28 | ||
Interest Income Recognized | $ 1 | $ 2 | $ (120) | $ (1) |
Loans Held for Investment - TDR
Loans Held for Investment - TDRs (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
TDRs, Non-covered loans | |||||
COVID-19 related loan modifications | $ 15 | $ 1,000 | |||
COVID-19 loans modified and in deferral period | $ 17 | $ 17 | |||
Number of TDR loans granted | loan | 0 | 0 | 1 | 2 | |
TDR at extension | $ 0.7 | $ 7.8 | |||
TDR modifications, end of period | $ 3.2 | ||||
Unadvanced commitments to borrowers | $ 0 | 0 | |||
TDR with payment at least 30 days past due | $ 0.1 | ||||
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 |
Loans Held for Investment - Agi
Loans Held for Investment - Aging (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | $ 32,387 | $ 45,912 |
Current Loans | 7,520,539 | 7,647,229 |
Total loans | 7,552,926 | 7,693,141 |
Accruing Loans Past Due 90 Days or More | 89 | 6 |
Financing Receivables, 30 to 59 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 6,546 | 13,529 |
Financing Receivables, 60 to 89 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 2,388 | 4,092 |
Financing Receivables, Greater than 90 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 23,453 | 28,291 |
Prime Lending | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Repurchase under a forbearance agreement | 99,500 | |
Prime Lending | U S Government Agencies Secured | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Accruing Loans Past Due 90 Days or More | 175,600 | 243,600 |
Unpaid principal balance loans past due 90 days or more | 177,200 | 245,500 |
Commercial real estate | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total loans | 3,032,141 | 3,133,903 |
Commercial real estate | Non-owner occupied | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 1,820 | 2,118 |
Current Loans | 1,722,798 | 1,786,193 |
Total loans | 1,724,618 | 1,788,311 |
Commercial real estate | 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 | 1,621 | 1,919 |
Commercial real estate | Non-owner occupied | Financing Receivables, Greater than 90 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 199 | 199 |
Commercial real estate | Owner occupied | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 2,423 | 9,045 |
Current Loans | 1,305,100 | 1,336,547 |
Total loans | 1,307,523 | 1,345,592 |
Commercial real estate | Owner occupied | Financing Receivables, 30 to 59 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 149 | 195 |
Commercial real estate | Owner occupied | Financing Receivables, 60 to 89 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 522 | |
Commercial real estate | Owner occupied | Financing Receivables, Greater than 90 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 2,274 | 8,328 |
Commercial and industrial | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 15,171 | 10,839 |
Current Loans | 1,935,626 | 2,616,935 |
Total loans | 1,950,797 | 2,627,774 |
Accruing Loans Past Due 90 Days or More | 1 | 6 |
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 | 603 | 3,114 |
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 | 632 | 407 |
Commercial and industrial | Financing Receivables, Greater than 90 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 13,936 | 7,318 |
Construction and land development | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 87 | 19 |
Current Loans | 789,606 | 828,833 |
Total loans | 789,693 | 828,852 |
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 | 10 | 19 |
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 | 77 | |
1 - 4 family residential | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 12,706 | 23,570 |
Current Loans | 1,092,141 | 606,368 |
Total loans | 1,104,847 | 629,938 |
Accruing Loans Past Due 90 Days or More | 88 | |
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 | 4,009 | 8,110 |
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 | 1,676 | 3,040 |
1 - 4 family residential | Financing Receivables, Greater than 90 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 7,021 | 12,420 |
Consumer | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 180 | 321 |
Current Loans | 29,367 | 35,346 |
Total loans | 29,547 | 35,667 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 154 | 172 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 3 | 123 |
Consumer | Financing Receivables, Greater than 90 Days Past Due | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Total Past Due Loans | 23 | 26 |
Broker-dealer | ||
Non-Covered Loans and Allowance for Non-Covered Loan Losses | ||
Current Loans | 645,901 | 437,007 |
Total loans | $ 645,901 | $ 437,007 |
Loans Held for Investment - Int
Loans Held for Investment - Internal Risk Grades (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Internal risk grades of non-covered loans | ||
2021 | $ 1,868,547 | |
2020 | 1,466,740 | |
2019 | 746,900 | |
2018 | 512,012 | |
2017 | 280,680 | |
2016 and Prior | 636,621 | |
Revolving | 756,326 | |
Total loans with credit quality measures | 6,267,826 | |
Total loans | 7,552,926 | $ 7,693,141 |
Mortgage Warehouse Lending | ||
Internal risk grades of non-covered loans | ||
Loans without credit quality measures | 505,976 | |
Loans Funded Through Paycheck Protection Program | ||
Internal risk grades of non-covered loans | ||
Loans without credit quality measures | 133,223 | |
Commercial real estate | ||
Internal risk grades of non-covered loans | ||
Total loans | 3,032,141 | 3,133,903 |
Commercial real estate | Non-owner occupied | ||
Internal risk grades of non-covered loans | ||
Total loans | 1,724,618 | 1,788,311 |
Commercial real estate | Non-owner occupied | Internal Grade 1-3 (Pass low risk) | ||
Internal risk grades of non-covered loans | ||
2021 | 17,984 | |
2020 | 14,856 | |
2019 | 24,145 | |
2018 | 9,102 | |
2017 | 1,379 | |
2016 and Prior | 19,704 | |
Revolving | (4) | |
Total loans with credit quality measures | 87,166 | |
Commercial real estate | Non-owner occupied | Internal Grade 4-7 (Pass normal risk) | ||
Internal risk grades of non-covered loans | ||
2021 | 235,408 | |
2020 | 207,049 | |
2019 | 113,457 | |
2018 | 50,614 | |
2017 | 42,473 | |
2016 and Prior | 68,139 | |
Revolving | 33,405 | |
Total loans with credit quality measures | 750,545 | |
Commercial real estate | Non-owner occupied | Internal Grade 8-11 (Pass high risk and watch) | ||
Internal risk grades of non-covered loans | ||
2021 | 92,225 | |
2020 | 226,326 | |
2019 | 128,586 | |
2018 | 96,780 | |
2017 | 56,898 | |
2016 and Prior | 142,747 | |
Revolving | 1,219 | |
Total loans with credit quality measures | 744,781 | |
Commercial real estate | Non-owner occupied | Internal Grade 12 (Special mention) | ||
Internal risk grades of non-covered loans | ||
2019 | 3,167 | |
2018 | 1,210 | |
2016 and Prior | 3,423 | |
Total loans with credit quality measures | 7,800 | |
Commercial real estate | Non-owner occupied | Internal Grade 13 (Substandard accrual) | ||
Internal risk grades of non-covered loans | ||
2021 | 24,370 | |
2020 | 8,995 | |
2019 | 16,142 | |
2018 | 16,866 | |
2017 | 17,809 | |
2016 and Prior | 48,727 | |
Revolving | 100 | |
Total loans with credit quality measures | 133,009 | |
Commercial real estate | Non-owner occupied | Internal Grade 14 (Substandard non-accrual) | ||
Internal risk grades of non-covered loans | ||
2021 | 417 | |
2016 and Prior | 900 | |
Total loans with credit quality measures | 1,317 | |
Commercial real estate | Owner occupied | ||
Internal risk grades of non-covered loans | ||
Total loans | 1,307,523 | 1,345,592 |
Commercial real estate | Owner occupied | Internal Grade 1-3 (Pass low risk) | ||
Internal risk grades of non-covered loans | ||
2021 | 116,722 | |
2020 | 64,383 | |
2019 | 17,413 | |
2018 | 29,476 | |
2017 | 32,386 | |
2016 and Prior | 37,852 | |
Revolving | 4 | |
Total loans with credit quality measures | 298,236 | |
Commercial real estate | Owner occupied | Internal Grade 4-7 (Pass normal risk) | ||
Internal risk grades of non-covered loans | ||
2021 | 149,531 | |
2020 | 123,342 | |
2019 | 120,207 | |
2018 | 89,486 | |
2017 | 27,442 | |
2016 and Prior | 83,316 | |
Revolving | 15,191 | |
Total loans with credit quality measures | 608,515 | |
Commercial real estate | Owner occupied | Internal Grade 8-11 (Pass high risk and watch) | ||
Internal risk grades of non-covered loans | ||
2021 | 49,084 | |
2020 | 107,022 | |
2019 | 44,373 | |
2018 | 83,934 | |
2017 | 20,594 | |
2016 and Prior | 34,431 | |
Revolving | 7,888 | |
Total loans with credit quality measures | 347,326 | |
Commercial real estate | Owner occupied | Internal Grade 13 (Substandard accrual) | ||
Internal risk grades of non-covered loans | ||
2021 | 576 | |
2020 | 14,642 | |
2019 | 5,331 | |
2018 | 7,691 | |
2017 | 6,828 | |
2016 and Prior | 13,990 | |
Total loans with credit quality measures | 49,058 | |
Commercial real estate | Owner occupied | Internal Grade 14 (Substandard non-accrual) | ||
Internal risk grades of non-covered loans | ||
2021 | 1,602 | |
2019 | (3) | |
2018 | 350 | |
2017 | 2,271 | |
2016 and Prior | 168 | |
Total loans with credit quality measures | 4,388 | |
Commercial and industrial | ||
Internal risk grades of non-covered loans | ||
Total loans | 1,950,797 | 2,627,774 |
Commercial and industrial | Internal Grade 1-3 (Pass low risk) | ||
Internal risk grades of non-covered loans | ||
2021 | 20,215 | |
2020 | 32,018 | |
2019 | 26,301 | |
2018 | 7,741 | |
2017 | 8,963 | |
2016 and Prior | 2,655 | |
Revolving | 58,993 | |
Total loans with credit quality measures | 156,886 | |
Commercial and industrial | Internal Grade 4-7 (Pass normal risk) | ||
Internal risk grades of non-covered loans | ||
2021 | 87,493 | |
2020 | 100,455 | |
2019 | 31,496 | |
2018 | 25,226 | |
2017 | 15,217 | |
2016 and Prior | 16,710 | |
Revolving | 275,095 | |
Total loans with credit quality measures | 551,692 | |
Commercial and industrial | Internal Grade 8-11 (Pass high risk and watch) | ||
Internal risk grades of non-covered loans | ||
2021 | 84,927 | |
2020 | 87,955 | |
2019 | 39,591 | |
2018 | 15,075 | |
2017 | 7,662 | |
2016 and Prior | 7,076 | |
Revolving | 292,171 | |
Total loans with credit quality measures | 534,457 | |
Commercial and industrial | Internal Grade 12 (Special mention) | ||
Internal risk grades of non-covered loans | ||
2020 | 23 | |
Revolving | 2,106 | |
Total loans with credit quality measures | 2,129 | |
Commercial and industrial | Internal Grade 13 (Substandard accrual) | ||
Internal risk grades of non-covered loans | ||
2021 | 2,250 | |
2020 | 10,839 | |
2019 | 1,471 | |
2018 | 7,280 | |
2017 | 4,212 | |
2016 and Prior | 3,875 | |
Revolving | 6,699 | |
Total loans with credit quality measures | 36,626 | |
Commercial and industrial | Internal Grade 14 (Substandard non-accrual) | ||
Internal risk grades of non-covered loans | ||
2021 | 6,619 | |
2020 | 17,977 | |
2019 | 511 | |
2018 | 1,772 | |
2017 | 225 | |
2016 and Prior | 87 | |
Revolving | 2,617 | |
Total loans with credit quality measures | 29,808 | |
Commercial and industrial | Loans Funded Through Paycheck Protection Program | ||
Internal risk grades of non-covered loans | ||
Total loans | 133,200 | 486,700 |
Construction and land development | ||
Internal risk grades of non-covered loans | ||
Total loans | 789,693 | 828,852 |
Construction and land development | FICO Score, 620 to 720 | ||
Internal risk grades of non-covered loans | ||
2021 | 944 | |
2020 | 287 | |
2018 | 1,226 | |
Total loans with credit quality measures | 2,457 | |
Construction and land development | FICO Score, Greater than 720 | ||
Internal risk grades of non-covered loans | ||
2021 | 10,396 | |
2020 | 5,744 | |
Total loans with credit quality measures | 16,140 | |
Construction and land development | Other | ||
Internal risk grades of non-covered loans | ||
2021 | 582 | |
Total loans with credit quality measures | 582 | |
Construction and land development | Internal Grade 1-3 (Pass low risk) | ||
Internal risk grades of non-covered loans | ||
2021 | 15,898 | |
2020 | 27,992 | |
2019 | 5,166 | |
2018 | 3,746 | |
2017 | 241 | |
2016 and Prior | 4,078 | |
Revolving | 1,450 | |
Total loans with credit quality measures | 58,571 | |
Construction and land development | Internal Grade 4-7 (Pass normal risk) | ||
Internal risk grades of non-covered loans | ||
2021 | 212,531 | |
2020 | 170,416 | |
2019 | 39,782 | |
2018 | 11,603 | |
2017 | 1,982 | |
2016 and Prior | 3,310 | |
Revolving | 25,021 | |
Total loans with credit quality measures | 464,645 | |
Construction and land development | Internal Grade 8-11 (Pass high risk and watch) | ||
Internal risk grades of non-covered loans | ||
2021 | 91,197 | |
2020 | 75,871 | |
2019 | 48,342 | |
2018 | 1,125 | |
2017 | 469 | |
2016 and Prior | 1,945 | |
Revolving | 22,608 | |
Total loans with credit quality measures | 241,557 | |
Construction and land development | Internal Grade 13 (Substandard accrual) | ||
Internal risk grades of non-covered loans | ||
2019 | 28 | |
2017 | 5,347 | |
Total loans with credit quality measures | 5,375 | |
Construction and land development | Internal Grade 14 (Substandard non-accrual) | ||
Internal risk grades of non-covered loans | ||
2021 | 381 | |
2016 and Prior | (15) | |
Total loans with credit quality measures | 366 | |
1 - 4 family residential | ||
Internal risk grades of non-covered loans | ||
Total loans | 1,104,847 | 629,938 |
1 - 4 family residential | FICO Score, Less than 620 | ||
Internal risk grades of non-covered loans | ||
2021 | 472 | |
2020 | 1,556 | |
2019 | 722 | |
2018 | 3,632 | |
2017 | 53 | |
2016 and Prior | 26,855 | |
Revolving | 255 | |
Total loans with credit quality measures | 33,545 | |
1 - 4 family residential | FICO Score, 620 to 720 | ||
Internal risk grades of non-covered loans | ||
2021 | 14,627 | |
2020 | 12,452 | |
2019 | 8,093 | |
2018 | 7,748 | |
2017 | 7,196 | |
2016 and Prior | 35,937 | |
Revolving | 911 | |
Total loans with credit quality measures | 86,964 | |
1 - 4 family residential | FICO Score, Greater than 720 | ||
Internal risk grades of non-covered loans | ||
2021 | 561,557 | |
2020 | 140,097 | |
2019 | 60,302 | |
2018 | 34,483 | |
2017 | 19,508 | |
2016 and Prior | 59,801 | |
Revolving | 3,757 | |
Total loans with credit quality measures | 879,505 | |
1 - 4 family residential | Substandard non-accrual | ||
Internal risk grades of non-covered loans | ||
2020 | 14 | |
2019 | 1,063 | |
2018 | 273 | |
2017 | 122 | |
2016 and Prior | 18,436 | |
Total loans with credit quality measures | 19,908 | |
1 - 4 family residential | Other | ||
Internal risk grades of non-covered loans | ||
2021 | 58,137 | |
2020 | 9,604 | |
2019 | 8,406 | |
2018 | 4,821 | |
2017 | 790 | |
2016 and Prior | 2,300 | |
Revolving | 867 | |
Total loans with credit quality measures | 84,925 | |
Consumer | ||
Internal risk grades of non-covered loans | ||
Total loans | 29,547 | 35,667 |
Consumer | FICO Score, Less than 620 | ||
Internal risk grades of non-covered loans | ||
2021 | 967 | |
2020 | 577 | |
2019 | 437 | |
2018 | 55 | |
2017 | 74 | |
2016 and Prior | 50 | |
Revolving | 346 | |
Total loans with credit quality measures | 2,506 | |
Consumer | FICO Score, 620 to 720 | ||
Internal risk grades of non-covered loans | ||
2021 | 3,478 | |
2020 | 1,811 | |
2019 | 976 | |
2018 | 188 | |
2017 | 444 | |
2016 and Prior | 78 | |
Revolving | 1,887 | |
Total loans with credit quality measures | 8,862 | |
Consumer | FICO Score, Greater than 720 | ||
Internal risk grades of non-covered loans | ||
2021 | 4,066 | |
2020 | 3,088 | |
2019 | 979 | |
2018 | 468 | |
2017 | 58 | |
2016 and Prior | 18 | |
Revolving | 3,385 | |
Total loans with credit quality measures | 12,062 | |
Consumer | Substandard non-accrual | ||
Internal risk grades of non-covered loans | ||
2017 | 23 | |
2016 and Prior | 1 | |
Total loans with credit quality measures | 24 | |
Consumer | Other | ||
Internal risk grades of non-covered loans | ||
2021 | 3,891 | |
2020 | 1,349 | |
2019 | 416 | |
2018 | 41 | |
2017 | 14 | |
2016 and Prior | 27 | |
Revolving | 355 | |
Total loans with credit quality measures | 6,093 | |
Broker-dealer | ||
Internal risk grades of non-covered loans | ||
Loans without credit quality measures | 645,901 | |
Total loans | $ 645,901 | $ 437,007 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Allowance for loan losses | ||||||||
Available for sale debt securities past due | $ 0 | $ 0 | ||||||
Allowance for credit losses | 109,512 | $ 155,214 | 109,512 | $ 155,214 | $ 115,269 | $ 149,044 | $ 156,383 | $ 61,136 |
Increase in allowance on individually evaluated loans | 1,200 | 22,600 | ||||||
Increase in allowance on collectively evaluated loans | 11,000 | 600 | 45,200 | 77,200 | ||||
Provision for (reversal of) credit losses | $ 5,200 | 5,600 | ||||||
Allowance for Loan and Lease Losses Write-offs, Net | $ 600 | $ (100) | $ 18,500 | |||||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||||
Allowance for loan losses | ||||||||
Allowance for credit losses | 73,700 | |||||||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Allowance for loan losses | ||||||||
Allowance for credit losses | 12,562 | |||||||
Allowance in credit loss from expansion of horizon to life of loan | 18,900 | |||||||
Non-credit component with allowance of previous categorized PCI loans | $ 6,300 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | $ 115,269 | $ 156,383 | $ 149,044 | $ 61,136 |
Provision for (reversal of) credit losses | (5,819) | (602) | (39,648) | 99,973 |
Loans Charged Off | (601) | (1,614) | (2,522) | (20,834) |
Recoveries on Charged Off Loans | 663 | 1,047 | 2,638 | 2,377 |
Balance, End of Period | 109,512 | 155,214 | 109,512 | 155,214 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 12,562 | |||
Commercial real estate | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 77,633 | 106,551 | 109,629 | 31,595 |
Provision for (reversal of) credit losses | (8,993) | (2,527) | (41,037) | 68,823 |
Loans Charged Off | (124) | (29) | (310) | (4,517) |
Recoveries on Charged Off Loans | 19 | 571 | 253 | 592 |
Balance, End of Period | 68,535 | 104,566 | 68,535 | 104,566 |
Commercial real estate | ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 8,073 | |||
Commercial and industrial | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 27,866 | 31,863 | 27,703 | 17,964 |
Provision for (reversal of) credit losses | 2,398 | 7,274 | 2,848 | 30,896 |
Loans Charged Off | (317) | (1,341) | (1,738) | (15,325) |
Recoveries on Charged Off Loans | 598 | 382 | 1,732 | 1,450 |
Balance, End of Period | 30,545 | 38,178 | 30,545 | 38,178 |
Commercial and industrial | ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 3,193 | |||
Construction and land development | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 5,185 | 8,393 | 6,677 | 4,878 |
Provision for (reversal of) credit losses | (85) | (2,123) | (1,577) | 815 |
Loans Charged Off | (2) | |||
Recoveries on Charged Off Loans | 2 | |||
Balance, End of Period | 5,100 | 6,270 | 5,100 | 6,270 |
Construction and land development | ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 577 | |||
1 - 4 family residential | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 3,659 | 7,399 | 3,946 | 6,386 |
Provision for (reversal of) credit losses | 946 | (2,213) | 358 | (813) |
Loans Charged Off | (87) | (144) | (248) | (517) |
Recoveries on Charged Off Loans | 20 | 10 | 482 | 25 |
Balance, End of Period | 4,538 | 5,052 | 4,538 | 5,052 |
1 - 4 family residential | ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | (29) | |||
Consumer | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 592 | 1,429 | 876 | 265 |
Provision for (reversal of) credit losses | (41) | (411) | (317) | 154 |
Loans Charged Off | (73) | (100) | (226) | (473) |
Recoveries on Charged Off Loans | 26 | 84 | 171 | 308 |
Balance, End of Period | 504 | 1,002 | 504 | 1,002 |
Consumer | ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 748 | |||
Broker-dealer | ||||
Changes in the allowance for loan losses for loans held for investments | ||||
Balance, Beginning of Period | 334 | 748 | 213 | 48 |
Provision for (reversal of) credit losses | (44) | (602) | 77 | 98 |
Balance, End of Period | $ 290 | $ 146 | $ 290 | $ 146 |
Allowance for Credit Losses - O
Allowance for Credit Losses - Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in the allowance for credit losses for loans with off-balance sheet credit exposures | ||||
Balance, beginning of period | $ 7,981 | $ 9,031 | $ 8,388 | $ 2,075 |
Transition adjustment CECL accounting standard | 3,837 | |||
Other noninterest expense | (1,183) | 287 | (1,590) | 3,406 |
Balance, end of period | $ 6,798 | $ 9,318 | $ 6,798 | 9,318 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Changes in the allowance for credit losses for loans with off-balance sheet credit exposures | ||||
Balance, beginning of period | $ 5,900 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Change in fair value of mortgage servicing rights | |||||
Balance, beginning of year | $ 143,742 | ||||
Balance, end of year | $ 110,931 | 110,931 | $ 143,742 | ||
MSR asset | |||||
Change in fair value of mortgage servicing rights | |||||
Balance, beginning of year | 124,497 | $ 81,264 | 143,742 | $ 55,504 | 55,504 |
Additions | 20,252 | 59,351 | 70,368 | 123,266 | |
Sales | (31,366) | (116,000) | (18,650) | ||
Changes in fair value: Due to changes in model inputs or assumptions | 3,525 | (10,145) | 32,199 | (26,023) | |
Changes in fair value: Due to customer payoffs | (5,977) | (2,758) | (19,378) | (6,385) | |
Balance, end of year | 110,931 | $ 127,712 | 110,931 | $ 127,712 | 143,742 |
Mortgage loans serviced for others | $ 8,672,818 | $ 8,672,818 | $ 14,643,623 | ||
MSR asset as a percentage of serviced mortgage loans | 1.28% | 1.28% | 0.98% | ||
Mortgage servicing assets adjustment, fair value | $ 3,300 | $ 22,200 | |||
Key Assumptions | |||||
Weighted average constant prepayment rate (as a percent) | 10.02% | 12.15% | |||
Weighted average discount rate (as a percent) | 14.31% | 14.60% | |||
Weighted average life (in years) | 7 years 1 month 6 days | 6 years 3 months 18 days |
Mortgage Servicing Rights - Sen
Mortgage Servicing Rights - Sensitivity Analysis (Details) - MSR asset - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Sensitivity analysis | |||||
Constant prepayment rate: Impact of 10% adverse change | $ (2,467) | $ (2,467) | $ (5,639) | ||
Constant prepayment rate: Impact of 20% adverse change | (5,043) | (5,043) | (11,164) | ||
Discount rate: Impact of 10% adverse change | (3,885) | (3,885) | (6,435) | ||
Discount rate: Impact of 20% adverse change | (7,399) | (7,399) | $ (12,287) | ||
Contractually specified servicing fees, late fees and ancillary fees | $ 15,600 | $ 10,300 | $ 47,900 | $ 21,300 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposits | ||
Noninterest-bearing demand | $ 4,433,148 | $ 3,612,384 |
Interest-bearing: | ||
Demand accounts | 2,906,009 | 2,399,341 |
Brokered - demand | 104,796 | 282,426 |
Money market | 3,132,456 | 2,716,878 |
Brokered - money market | 108,196 | 124,243 |
Savings | 306,755 | 276,327 |
Time | 1,110,325 | 1,506,435 |
Brokered - time | 30,477 | 324,285 |
Total deposits | $ 12,132,162 | $ 11,242,319 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2020USD ($) | |
Short-term borrowings | ||||
Short-term borrowings | $ 747,040 | $ 695,798 | ||
Federal Funds Purchased. | ||||
Short-term borrowings | ||||
Short-term borrowings | 159,825 | 180,325 | ||
Securities Sold under Agreements to Repurchase | ||||
Short-term borrowings | ||||
Short-term borrowings | $ 155,294 | 237,856 | ||
FHLB notes | ||||
Short-term borrowings | ||||
Average balance during the period | $ 51,606 | |||
Average interest rate during the period | 1.62% | |||
FHLB notes | Maximum | ||||
Short-term borrowings | ||||
Maturity term of debt | 365 days | |||
Short Term Bank Loans. | ||||
Short-term borrowings | ||||
Short-term borrowings | $ 64,000 | |||
Short Term Bank Loans. | Hilltop Broker-Dealers | ||||
Short-term borrowings | ||||
Weighted average interest rate on short-term bank loan borrowings (as a percent) | 1.25% | |||
Commercial paper | ||||
Short-term borrowings | ||||
Short-term borrowings | $ 367,921 | $ 277,617 | ||
Number of commercial paper programs initiated | item | 2 | |||
Weighted average maturity term | 159 days | |||
Weighted average interest rate on short-term bank loan borrowings (as a percent) | 1.06% | |||
Weighted average remaining life | 85 days | |||
Debt instrument, collateral | $ 400,500 | |||
Commercial paper | Minimum | ||||
Short-term borrowings | ||||
Maturity term of debt | 14 days | |||
Commercial paper | Maximum | ||||
Short-term borrowings | ||||
Maturity term of debt | 270 days | |||
Series 2019-1 CP Notes | ||||
Short-term borrowings | ||||
Maximum borrowing capacity | $ 300,000 | |||
Series 2019-2 CP Notes | ||||
Short-term borrowings | ||||
Maximum borrowing capacity | $ 200,000 | |||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | ||||
Short-term borrowings | ||||
Average balance during the period | $ 328,853 | $ 547,925 | ||
Average interest rate during the period | 0.37% | 1.03% | ||
Average interest rate at end of period (as a percent) | 0.29% | 0.25% | ||
Securities underlying the agreements at end of period: Carrying value | $ 156,402 | $ 237,913 | ||
Securities underlying the agreements at end of period: Estimated fair value | $ 172,111 | $ 262,554 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument | ||
Notes payable | $ 395,804 | $ 381,987 |
Senior Notes due April 2025 | ||
Debt Instrument | ||
Notes payable | 149,069 | 148,937 |
Unamortized discount | 931 | 1,063 |
Subordinated Notes due May 2030 | ||
Debt Instrument | ||
Notes payable | 49,273 | 49,207 |
Unamortized discount | 727 | 793 |
Subordinated Notes Due May 2035 | ||
Debt Instrument | ||
Notes payable | 147,736 | 147,608 |
Unamortized discount | 2,264 | 2,392 |
Ventures Management lines of credit | ||
Debt Instrument | ||
Notes payable | $ 49,726 | $ 36,235 |
Lease - Supplemental balance sh
Lease - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finance leases: | ||
Premises and equipment | $ 7,780 | $ 7,780 |
Accumulated depreciation | (5,210) | (4,768) |
Premises and equipment, net | $ 2,570 | $ 3,012 |
Lease - Components of lease cos
Lease - Components of lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of operating lease costs | ||||
Operating lease cost | $ 9,727 | $ 11,067 | $ 29,130 | $ 32,318 |
Less operating lease and sublease income | (343) | (363) | (1,024) | (1,336) |
Net operating lease cost | 9,384 | 10,704 | 28,106 | 30,982 |
Amortization of ROU assets | 147 | 147 | 442 | 442 |
Interest on lease liabilities | 129 | 139 | 396 | 424 |
Total finance lease cost | $ 276 | $ 286 | $ 838 | $ 866 |
Lease - Supplemental cash flow
Lease - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases | ||
Operating cash flows from operating leases | $ 28,160 | $ 27,994 |
Operating cash flows from finance leases | 396 | 424 |
Financing cash flows from finance leases | 509 | 472 |
Right-of-use assets obtained in exchange for new lease obligations - Operating leases | $ 37,086 | $ 8,773 |
Lease - Lease terms and discoun
Lease - Lease terms and discount rates (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases | ||
Operating - Weighted Average Remaining Lease Term (Years) | 6 years | 5 years 6 months |
Finance - Weighted Average Remaining Lease Term (Years) | 5 years | 5 years 7 months 6 days |
Operating - Weighted Average Discount Rate | 4.01% | 4.67% |
Finance - Weighted Average Discount Rate | 4.83% | 4.81% |
Lease - Lease maturities (Detai
Lease - Lease maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating leases maturities | ||
2021 | $ 444 | |
2022 | 33,994 | |
2023 | 29,196 | |
2024 | 21,068 | |
2025 | 15,669 | |
Thereafter | 51,163 | |
Total minimum lease payments | 151,534 | |
Less amount representing interest | (17,238) | |
Lease liabilities | 134,296 | $ 125,450 |
Finance Leases maturities: | ||
2021 | 307 | |
2022 | 1,241 | |
2023 | 1,280 | |
2024 | 1,163 | |
2025 | 886 | |
Thereafter | 1,411 | |
Total minimum lease payments | 6,288 | |
Less amount representing interest | (1,938) | |
Lease liabilities | $ 4,350 |
Lease - Operating leases that h
Lease - Operating leases that have not yet commenced (Details) $ in Millions | Sep. 30, 2021USD ($) |
Leases | |
Additional operating leases that have not yet commenced | $ 1.6 |
Minimum | |
Leases | |
Expected to commence | 3 years |
Maximum | |
Leases | |
Expected to commence | 6 years |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes | ||||
Effective income tax rate (as a percent) | 22.80% | 22.70% | 23.20% | 23.00% |
Commitments and Contingencies -
Commitments and Contingencies - Legal (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Roll-forward of claims activity for loans put-back to the mortgage origination segment | |||||
Balance, beginning of period | $ 21,531 | ||||
Balance, end of period | $ 25,973 | 25,973 | |||
Reserve for Indemnification Liability: | |||||
Total | 25,973 | 25,973 | $ 21,531 | ||
Representation and Warranty Claims | |||||
Roll-forward of claims activity for loans put-back to the mortgage origination segment | |||||
Balance, beginning of period | 32,763 | $ 35,194 | 30,085 | $ 32,144 | |
Claims made | 5,412 | 2,558 | 19,100 | 14,770 | |
Claims resolved with no payment | (4,217) | (45) | (9,088) | (1,702) | |
Repurchases | (3,981) | (1,582) | (9,238) | (8,965) | |
Indemnification payments | (267) | (1,149) | (122) | ||
Balance, end of period | 29,710 | 36,125 | 29,710 | 36,125 | |
Reserve for Indemnification Liability: | |||||
Total | 29,710 | 36,125 | 29,710 | 36,125 | 30,085 |
Indemnification Agreement | |||||
Commitments and Contingencies | |||||
Provision for indemnification losses | 2,500 | 3,100 | 8,000 | 7,700 | |
Roll-forward of claims activity for loans put-back to the mortgage origination segment | |||||
Balance, beginning of period | 26,372 | 15,463 | 21,531 | 11,776 | |
Additions for new sales | 2,702 | 3,066 | 8,568 | 6,688 | |
Repurchases | (2,687) | (133) | (3,086) | (613) | |
Early payment defaults | (116) | (413) | (152) | (815) | |
Indemnification payments | (78) | (342) | (40) | ||
Change in reserves for loans sold in prior years | (220) | (546) | 987 | ||
Balance, end of period | 25,973 | 17,983 | 25,973 | 17,983 | |
Reserve for Indemnification Liability: | |||||
Specific claims | 196 | 196 | 961 | ||
Incurred but not reported claims | 25,777 | 25,777 | 20,570 | ||
Total | $ 25,973 | $ 17,983 | $ 25,973 | $ 17,983 | $ 21,531 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Details) $ in Millions | Sep. 30, 2021USD ($) |
Unused commitments to extend credit | |
Financial Instruments with Off-Balance Sheet Risk | |
Outstanding commitments | $ 2,100 |
Standby letters of credit | |
Financial Instruments with Off-Balance Sheet Risk | |
Outstanding commitments | $ 87.2 |
Stock-Based Compensation - Plan
Stock-Based Compensation - Plan Information (Details) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
2020 Plan | Board of Directors | ||
Stock based compensation | ||
Common shares granted to members of board of directors as compensation for director services | 12,957 | 25,817 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Activity (Details) - 2020 Plan - RSUs shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of shares outstanding | |
Balance at the beginning of the period ( in shares) | shares | 1,833 |
Granted (in shares) | shares | 532 |
Vested/Released (in shares) | shares | (473) |
Forfeited (in shares) | shares | (17) |
Balance at the end of the period ( in shares) | shares | 1,875 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 21.48 |
Grant date fair value (in dollars per share) | $ / shares | 32.93 |
Vested/Released (in dollars per share) | $ / shares | 27.65 |
Forfeited (in dollars per share) | $ / shares | 22.51 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 23.17 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - 2020 Plan - RSUs $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)shares | |
Stock based compensation | |
Vested/Released number of shares withheld to satisfy employee statutory tax obligations (in shares) | 78,432 |
Number of shares awarded (in shares) | 532,000 |
Number of awards subject to time-based vesting (in shares) | 1,510,530 |
Number of awards vesting upon achievement of performance goals (in shares) | 364,149 |
Performance period | 3 years |
Vesting period | 3 years |
Unrecognized compensation expense | $ | $ 24.4 |
Weighted average period for unrecognized compensation expense (in years) | 1 year 4 months 24 days |
Certain Executives and Key Employees | |
Stock based compensation | |
Number of shares awarded (in shares) | 471,505 |
Number of awards subject to time-based vesting (in shares) | 318,387 |
Number of awards vesting upon achievement of performance goals (in shares) | 150,668 |
Performance period | 3 years |
Vesting period | 3 years |
Regulatory Matters - Minimum Ca
Regulatory Matters - Minimum Capital Requirements (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Regulatory matters | ||
Regulatory capital effects from CECL transitionary period | 5 years | |
PlainsCapital (the Bank) | ||
Tier 1 capital (to average assets) | ||
Actual Amount | $ 1,398,761 | $ 1,385,842 |
Actual Ratio (as a percent) | 10.02 | 10.44 |
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent) | 4.00% | |
To Be Well Capitalized Minimum Capital Requirements, Ratio (as a percent) | 5 | |
Common equity Tier 1 capital (to risk weighted assets) | ||
Actual Amount | $ 1,398,761 | $ 1,385,842 |
Actual Ratio (as a percent) | 15.40 | 14.40 |
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent) | 7.00% | |
To Be Well Capitalized Minimum Capital Requirements, Ratio (as a percent) | 6.5 | |
Tier 1 capital (to risk-weighted assets) | ||
Actual Amount | $ 1,398,761 | $ 1,385,842 |
Actual Ratio (as a percent) | 15.40 | 14.40 |
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent) | 8.50% | |
To Be Well Capitalized Minimum Capital Requirements, Ratio (as a percent) | 8 | |
Total capital (to risk-weighted assets) | ||
Actual Amount | $ 1,482,471 | $ 1,470,364 |
Actual Ratio (as a percent) | 16.32 | 15.27 |
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent) | 10.50% | |
To Be Well Capitalized Minimum Capital Requirements, Ratio (as a percent) | 10 | |
Hilltop | ||
Tier 1 capital (to average assets) | ||
Actual Amount | $ 2,209,309 | $ 2,111,580 |
Actual Ratio (as a percent) | 12.64 | 12.64 |
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent) | 4.00% | |
Common equity Tier 1 capital (to risk weighted assets) | ||
Actual Amount | $ 2,209,309 | $ 2,046,580 |
Actual Ratio (as a percent) | 21.28 | 18.97 |
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent) | 7.00% | |
Tier 1 capital (to risk-weighted assets) | ||
Actual Amount | $ 2,209,309 | $ 2,111,580 |
Actual Ratio (as a percent) | 21.28 | 19.57 |
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent) | 8.50% | |
Total capital (to risk-weighted assets) | ||
Actual Amount | $ 2,492,353 | $ 2,409,684 |
Actual Ratio (as a percent) | 24 | 22.34 |
Minimum Capital Requirement Including Conservation Buffer fully phased-in, ratio (as a percent) | 10.50% |
Regulatory Matters - Net Capita
Regulatory Matters - Net Capital Position, Broker-Dealers (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Net Capital | |||
Amount required to be segregated in cash and securities for the benefit of customers | $ 269,506 | $ 290,357 | $ 221,621 |
Hilltop Securities | |||
Net Capital | |||
Net capital | 228,135 | ||
Less required net capital | 11,249 | ||
Excess net capital | $ 216,886 | ||
Net capital as a percentage of aggregate debit items | 40.60% | ||
Net capital in excess of 5% aggregate debt items | $ 200,012 | ||
HTS Independent Network | |||
Net Capital | |||
Net capital | 4,111 | ||
Less required net capital | 283 | ||
Excess net capital | 3,828 | ||
Hilltop Broker-Dealers | |||
Net Capital | |||
Amount required to be segregated in cash and securities for the benefit of customers | $ 269,500 | $ 290,400 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 31, 2021 | Jul. 31, 2021 | Jan. 31, 2021 |
Stock repurchase program | ||||||||
Cash dividends declared per common share | $ 0.12 | $ 0.12 | $ 0.09 | $ 0.36 | $ 0.27 | |||
Cash dividends paid | $ 29,500 | $ 24,400 | ||||||
Repurchase common stock authorized amount | $ 75,000 | |||||||
Payments to repurchase shares | $ 123,631 | $ 15,250 | ||||||
Repurchase of common stock (in shares) | 3,632,482 | |||||||
Average price (per share) | $ 34.01 | |||||||
Minimum | ||||||||
Stock repurchase program | ||||||||
Repurchase common stock authorized amount | $ 50,000 | $ 75,000 | ||||||
Maximum | ||||||||
Stock repurchase program | ||||||||
Repurchase common stock authorized amount | $ 200,000 | $ 150,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Derivative financial instruments | |||||
Available for sale securities | $ 1,994,183,000 | $ 1,994,183,000 | $ 1,462,205,000 | ||
Not designated as hedges | Prime Lending | |||||
Derivative financial instruments | |||||
Increase (decrease) in the fair value of the derivatives | 780,000 | $ 23,286,000 | 555,000 | $ 90,429,000 | |
Not designated as hedges | Hilltop Broker-Dealers | |||||
Derivative financial instruments | |||||
Increase (decrease) in the fair value of the derivatives | 11,427,000 | (3,542,000) | (3,845,000) | 8,466,000 | |
Not designated as hedges | PlainsCapital (the Bank) | |||||
Derivative financial instruments | |||||
Increase (decrease) in the fair value of the derivatives | 7,000 | $ 118,000 | 26,000 | $ (17,000) | |
Designated as hedges | |||||
Derivative financial instruments | |||||
Available for sale securities | 169,600,000 | 169,600,000 | 60,700,000 | ||
Cumulative adjustment in available for sale securities | 3,200,000 | 3,200,000 | 100,000 | ||
IRLCs | Not designated as hedges | |||||
Derivative financial instruments | |||||
Notional Amount | 2,061,068,000 | 2,061,068,000 | 2,470,013,000 | ||
Estimated Fair Value | 40,279,000 | 40,279,000 | 76,048,000 | ||
Commitments to Purchase MBSs | Not designated as hedges | |||||
Derivative financial instruments | |||||
Notional Amount | 1,759,435,000 | 1,759,435,000 | 2,478,041,000 | ||
Estimated Fair Value | 4,745,000 | 4,745,000 | 22,311,000 | ||
Commitments to Sell MBSs | Not designated as hedges | |||||
Derivative financial instruments | |||||
Notional Amount | 4,646,594,000 | 4,646,594,000 | 6,141,079,000 | ||
Estimated Fair Value | 14,703,000 | 14,703,000 | (40,621,000) | ||
Commitments to Sell MBSs | Not designated as hedges | Prime Lending | |||||
Derivative financial instruments | |||||
Cash collateral advanced to offset net derivative liability | 26,100,000 | ||||
Commitments to Sell MBSs | Not designated as hedges | Prime Lending | Other Liabilities | |||||
Derivative financial instruments | |||||
Cash collateral advanced to offset net derivative liability | 0 | 0 | |||
Interest rate swaps | Not designated as hedges | |||||
Derivative financial instruments | |||||
Notional Amount | 60,245,000 | 60,245,000 | 43,786,000 | ||
Estimated Fair Value | 27,000 | 27,000 | (2,196,000) | ||
Interest rate swaps | Cash Flow Hedging | Designated as hedges | |||||
Derivative financial instruments | |||||
Notional Amount | 150,000,000 | 150,000,000 | 105,000,000 | ||
Estimated Fair Value | (812,000) | (812,000) | (3,112,000) | ||
Interest rate swaps | Fair Value Hedging | Designated as hedges | |||||
Derivative financial instruments | |||||
Notional Amount | 172,751,000 | 172,751,000 | 60,618,000 | ||
Estimated Fair Value | 3,149,000 | 3,149,000 | (130,000) | ||
U.S. Treasury bond futures and options | Not designated as hedges | |||||
Derivative financial instruments | |||||
Notional Amount | 215,600,000 | 215,600,000 | 225,400,000 | ||
Eurodollar futures | Not designated as hedges | |||||
Derivative financial instruments | |||||
Notional Amount | 1,182,000,000 | 1,182,000,000 | |||
Treasury bond futures and options and Eurodollar futures | Not designated as hedges | PrimeLending and Hilltop Broker-Dealers | |||||
Derivative financial instruments | |||||
Cash collateral advanced to offset net derivative liability | $ 700,000 | $ 700,000 | $ 2,700,000 |
Balance Sheet Offsetting - Asse
Balance Sheet Offsetting - Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Reverse repurchase agreements: | ||
Net Amounts of Assets Presented in the Balance Sheet | $ 155,908 | $ 80,319 |
Total | ||
Gross Amounts of Recognized Assets | 1,553,892 | 1,441,485 |
Gross Amounts Offset in the Balance Sheet | (1,198) | |
Net Amounts of Assets Presented in the Balance Sheet | 1,552,694 | 1,441,485 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (1,485,890) | (1,376,191) |
Net Amount | 66,804 | 65,294 |
Institutional Counterparties | ||
Securities borrowed: | ||
Gross Amounts of Recognized Assets | 1,377,261 | 1,338,855 |
Net Amounts of Assets Presented in the Balance Sheet | 1,377,261 | 1,338,855 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (1,318,830) | (1,273,955) |
Net Amount | 58,431 | 64,900 |
Interest rate swaps | Institutional Counterparties | ||
Derivatives: | ||
Gross Amounts of Recognized Assets | 73 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Assets Presented in the Balance Sheet | 73 | |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (73) | |
Cash Collateral Pledged | 0 | |
Net Amounts of Assets Presented in the Balance Sheet | 0 | |
Reverse repurchase agreements | Institutional Counterparties | ||
Reverse repurchase agreements: | ||
Gross Amounts of Recognized Assets | 155,908 | 80,319 |
Net Amounts of Assets Presented in the Balance Sheet | 155,908 | 80,319 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (155,908) | (79,925) |
Net Amount | 0 | 394 |
Forward MBS Derivatives | Institutional Counterparties | ||
Derivatives: | ||
Gross Amounts of Recognized Assets | 20,650 | 22,311 |
Gross Amounts Offset in the Balance Sheet | (1,198) | |
Net Amounts of Assets Presented in the Balance Sheet | 19,452 | 22,311 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (11,079) | (22,311) |
Net Amounts of Assets Presented in the Balance Sheet | $ 8,373 | $ 0 |
Balance Sheet Offsetting - Liab
Balance Sheet Offsetting - Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Total | ||
Gross Amounts of Recognized Liabilities | $ 1,506,009 | $ 1,525,859 |
Gross Amounts Offset in the Balance Sheet | (120) | |
Net Amounts of Liabilities Presented in the Balance Sheet | 1,506,009 | 1,525,739 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (1,429,190) | (1,431,739) |
Net Amount | 76,819 | 94,000 |
Institutional Counterparties | ||
Securities loaned: | ||
Gross Amounts of Recognized Liabilities | 1,350,722 | 1,245,066 |
Net Amounts of Liabilities Presented in the Balance Sheets | 1,350,722 | 1,245,066 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (1,283,622) | (1,179,090) |
Net Amount | 67,100 | 65,976 |
Institutional Counterparties | Interest rate swaps | ||
Derivatives: | ||
Gross Amounts of Recognized Liabilities | 46 | 2,196 |
Net Amounts of Liabilities Presented in the Balance Sheet | 46 | 2,196 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (2,123) | |
Net Amount | 46 | 73 |
Institutional Counterparties | Repurchase agreements | ||
Repurchase agreements: | ||
Gross Amounts of Recognized Liabilities | 155,237 | 237,856 |
Net Amounts of Liabilities Presented in the Balance Sheet | 155,237 | 237,856 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (145,564) | (237,856) |
Net Amount | 9,673 | 0 |
Institutional Counterparties | Forward MBS Derivatives | ||
Derivatives: | ||
Gross Amounts of Recognized Liabilities | 4 | 40,741 |
Gross Amounts Offset in the Balance Sheet | (120) | |
Net Amounts of Liabilities Presented in the Balance Sheet | 4 | 40,621 |
Gross Amounts Not Offset in the Balance Sheet | ||
Financial Instruments | (4) | (12,670) |
Net Amount | $ 0 | $ 27,951 |
Balance Sheet Offsetting - Secu
Balance Sheet Offsetting - Secured Borrowings (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($)item | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Number of repurchase-to-maturity transactions outstanding | item | 0 | 0 |
Total borrowings | $ 1,505,959 | $ 1,482,922 |
Gross amount of recognized liabilities for repurchase agreements and securities lending in offsetting disclosure above | $ 1,505,959 | 1,482,922 |
Minimum | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Security repurchase agreement maturity period | 1 day | |
Maximum | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Security repurchase agreement maturity period | 90 days | |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Total borrowings | $ 1,392,273 | 1,355,897 |
Maturity up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Total borrowings | 31,781 | |
Maturity 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Total borrowings | 81,905 | 127,025 |
US Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Repurchase agreements transactions | 10,000 | |
US Treasury and agency securities | Maturity up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Repurchase agreements transactions | 10,000 | |
Assets-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Repurchase agreements transactions | 145,237 | 237,856 |
Assets-backed securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Repurchase agreements transactions | 41,551 | 110,831 |
Assets-backed securities | Maturity up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Repurchase agreements transactions | 21,781 | |
Assets-backed securities | Maturity 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Repurchase agreements transactions | 81,905 | 127,025 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities lending transactions | 113 | 113 |
Corporate debt securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities lending transactions | 113 | 113 |
Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities lending transactions | 1,350,609 | 1,244,953 |
Equity Securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities lending transactions | $ 1,350,609 | $ 1,244,953 |
Broker-Dealer and Clearing Or_3
Broker-Dealer and Clearing Organization Receivables and Payables (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables: | ||
Securities borrowed | $ 1,377,261 | $ 1,338,855 |
Securities failed to deliver | 38,447 | 58,244 |
Other | 3,944 | 7,628 |
Total receivables | 1,419,652 | 1,404,727 |
Payables: | ||
Securities loaned | 1,350,722 | 1,245,066 |
Correspondents | 38,648 | 33,547 |
Securities failed to receive | 82,897 | 61,589 |
Trades in process of settlement | 21,126 | 21,765 |
Other | 3,530 | 6,406 |
Total Payables | $ 1,496,923 | $ 1,368,373 |
Segment and Related Informati_3
Segment and Related Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segmentitem | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Information about the revenues, operating results, goodwill and assets | |||||
Number of primary business units | item | 2 | ||||
Number of reportable segments | segment | 3 | ||||
Net interest income (expense) | $ 105,090 | $ 101,900 | $ 318,688 | $ 316,794 | |
Provision for (reversal of) credit losses | (5,819) | (602) | (39,648) | 99,973 | |
Noninterest income | 367,945 | 502,711 | 1,125,429 | 1,242,549 | |
Noninterest expense | 355,174 | 399,345 | 1,065,204 | 1,051,455 | |
Income from continuing operations before income taxes | 123,680 | 205,868 | 418,561 | 407,915 | |
Income from discontinued operations before taxes | 0 | 2,100 | |||
Goodwill | 267,447 | 267,447 | $ 267,447 | ||
Total assets | 17,989,651 | 17,989,651 | 16,944,264 | ||
Operating segment | Banking | |||||
Information about the revenues, operating results, goodwill and assets | |||||
Net interest income (expense) | 99,978 | 96,416 | 309,330 | 284,440 | |
Provision for (reversal of) credit losses | (5,775) | (39,725) | 99,875 | ||
Noninterest income | 11,727 | 9,819 | 33,293 | 29,246 | |
Noninterest expense | 54,567 | 55,980 | 167,869 | 169,569 | |
Income from continuing operations before income taxes | 62,913 | 50,255 | 214,479 | 44,242 | |
Goodwill | 247,368 | 247,368 | 247,368 | ||
Total assets | 14,254,083 | 14,254,083 | 13,338,930 | ||
Operating segment | Broker-Dealer | |||||
Information about the revenues, operating results, goodwill and assets | |||||
Net interest income (expense) | 10,427 | 8,168 | 31,623 | 31,005 | |
Provision for (reversal of) credit losses | (44) | (602) | 77 | 98 | |
Noninterest income | 116,143 | 141,022 | 298,229 | 350,192 | |
Noninterest expense | 109,193 | 114,393 | 287,831 | 299,743 | |
Income from continuing operations before income taxes | 17,421 | 35,399 | 41,944 | 81,356 | |
Goodwill | 7,008 | 7,008 | 7,008 | ||
Total assets | 3,426,534 | 3,426,534 | 3,196,346 | ||
Operating segment | Mortgage Origination Segment | |||||
Information about the revenues, operating results, goodwill and assets | |||||
Net interest income (expense) | (3,503) | (2,349) | (16,554) | (3,647) | |
Noninterest income | 242,270 | 355,471 | 794,679 | 874,926 | |
Noninterest expense | 176,587 | 207,176 | 573,884 | 547,222 | |
Income from continuing operations before income taxes | 62,180 | 145,946 | 204,241 | 324,057 | |
Goodwill | 13,071 | 13,071 | 13,071 | ||
Total assets | 2,537,342 | 2,537,342 | 3,285,005 | ||
Operating segment | Insurance Segment | |||||
Information about the revenues, operating results, goodwill and assets | |||||
Net interest income (expense) | (4,341) | (4,594) | (13,720) | (9,482) | |
Noninterest income | 757 | 477 | 8,140 | 3,315 | |
Noninterest expense | 15,355 | 21,999 | 37,015 | 35,741 | |
Income from continuing operations before income taxes | (18,939) | (26,116) | (42,595) | (41,908) | |
Total assets | 2,926,781 | 2,926,781 | 2,823,374 | ||
Corporate | |||||
Information about the revenues, operating results, goodwill and assets | |||||
Net interest income (expense) | 2,529 | 4,259 | 8,009 | 14,478 | |
Noninterest income | (2,952) | (4,078) | (8,912) | (15,130) | |
Noninterest expense | (528) | (203) | (1,395) | (820) | |
Income from continuing operations before income taxes | 105 | $ 384 | 492 | $ 168 | |
Total assets | $ (5,155,089) | $ (5,155,089) | $ (5,699,391) |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic earnings per share: | ||||
Income from continuing operations | $ 92,906 | $ 152,543 | $ 312,310 | $ 296,729 |
Income from discontinued operations | 736 | 34,662 | ||
Income attributable to Hilltop | $ 92,906 | $ 153,279 | $ 312,310 | $ 331,391 |
Weighted average shares outstanding - basic | 80,109 | 90,200 | 81,306 | 90,291 |
Income from continuing operations (in dollars per share) | $ 1.16 | $ 1.69 | $ 3.84 | $ 3.29 |
Income from discontinued operations (in dollars per share) | 0.01 | 0.38 | ||
Basic earnings per common share (in dollars per share) | $ 1.16 | $ 1.70 | $ 3.84 | $ 3.67 |
Diluted earnings per share: | ||||
Income from continuing operations | $ 92,906 | $ 152,543 | $ 312,310 | $ 296,729 |
Income from discontinued operations | 736 | 34,662 | ||
Income attributable to Hilltop | $ 92,906 | $ 153,279 | $ 312,310 | $ 331,391 |
Weighted average shares outstanding - basic | 80,109 | 90,200 | 81,306 | 90,291 |
Effect of potentially dilutive securities (in shares) | 433 | 457 | ||
Weighted average shares outstanding - diluted | 80,542 | 90,200 | 81,763 | 90,291 |
Income from continuing operations (in dollars per share) | $ 1.15 | $ 1.69 | $ 3.82 | $ 3.29 |
Income from discontinued operations (in dollars per share) | 0.01 | 0.38 | ||
Diluted earnings per common share (in dollars per share) | $ 1.15 | $ 1.70 | $ 3.82 | $ 3.67 |