Hilltop (HTH) 10-Q28 Oct 212021 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	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 Holdings 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
Summary of Significant Accounting and Reporting Policies	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 Nature of Operations Hilltop Holdings Inc. (“Hilltop” and, collectively with its subsidiaries, the “Company”) is a financial holding company registered under the Bank Holding Company Act of 1956. The Company’s primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank (the “Bank”). In addition, the Company provides an array of financial products and services through its broker-dealer and mortgage origination subsidiaries. On June 30, 2020, Hilltop completed the sale of all of the outstanding capital stock of National Lloyds Corporation (“NLC”), which comprised the operations of the former insurance segment, for cash proceeds of $154.1 million, and was subject to post-closing adjustments. Accordingly, NLC’s 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. The Company, headquartered in Dallas, Texas, provides its products and services through two primary business units within continuing operations, PlainsCapital Corporation (“PCC”) and Hilltop Securities Holdings LLC (“Securities Holdings”). 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 Company’s notes to the consolidated financial statements present information limited to continuing operations. As a result of the spread of the novel coronavirus (“COVID-19”) 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 Company’s 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 Company’s business, financial condition, results of operations and cash flows. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), and in conformity with the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). Results for interim periods are not necessarily indicative of results to be expected for a full year or any future period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates regarding the allowance for 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. 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 (“PrimeLending”). PrimeLending owns a 100% membership interest in PrimeLending Ventures Management, LLC (“Ventures Management”), which holds an ownership interest in and is the managing member of certain affiliated business arrangements (“ABAs”). PCC also owned 100% of the outstanding common securities of PCC Statutory Trusts I, II, III and IV (the “Trusts”), which were not included in the consolidated financial statements under the requirements of the Variable Interest Entities (“VIE”) Subsections of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) because the primary beneficiaries of the Trusts are not within the consolidated group. 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. Hilltop has a 100% membership interest in Securities Holdings, which operates through its wholly owned subsidiaries, Hilltop Securities Inc. (“Hilltop Securities”), Momentum Independent Network Inc. (“Momentum Independent Network” and collectively with Hilltop Securities, the “Hilltop Broker-Dealers”) and Hilltop Securities Asset Management, LLC. Hilltop Securities is a broker-dealer registered with the SEC and Financial Industry Regulatory Authority (“FINRA”) and a member of the New York Stock Exchange (“NYSE”), 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. In addition, Hilltop owns 100% of the membership interest in each of HTH Hillcrest Project LLC (“HTH Project LLC”) and Hilltop % of the membership interest in HTH Diamond Hillcrest Land LLC (“Hillcrest Land LLC”) which is consolidated under the aforementioned VIE Subsections of the ASC. These entities are related to the Hilltop Plaza investment discussed in detail in Note 20 to the consolidated financial statements included in the Company’s 2020 Form 10-K and are collectively referred to as the “Hilltop Plaza Entities.” The consolidated financial statements include the accounts of the above-named entities. Intercompany transactions and balances have been eliminated. Noncontrolling interests have been recorded for minority ownership in entities that are not wholly owned and are presented in compliance with the provisions of Noncontrolling Interest in Subsidiary Subsections of the ASC. Certain reclassifications have been made to the prior period consolidated financial statements to conform with the current period presentation. In preparing these consolidated financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all stockholders and other financial statement users, or filed with the SEC. Significant accounting policies are detailed in Note 1 to the consolidated financial statements included in the Company’s 2020 Form 10-K.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
Recently Issued Accounting Standards	Sep. 30, 2021
Recently Issued Accounting Standards
Recently Issued Accounting Standards	2. Recently Issued Accounting Standards Accounting Standards Adopted During 2021 In January 2020, FASB issued Accounting Standards Update (“ASU”) 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. 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 Company’s consolidated financial statements. Accounting Standards Issued But Not Yet Adopted 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.

Discontinued Operations

Discontinued Operations	9 Months Ended
Discontinued Operations	Sep. 30, 2021
Discontinued Operations
Discontinued Operations	T 3. Discontinued Operations NLC Sale 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. 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. The following table presents the results of discontinued operations for NLC for the periods indicated (in thousands). Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Interest income: Securities: Taxable $ — $ 1,752 Other — 71 Total interest income — 1,823 Interest expense: Notes payable — 775 Noninterest income: Net insurance premiums earned — 65,077 Other — 3,051 Total noninterest income — 68,128 Noninterest expense: 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 Income tax expense — 518 Income from discontinued operations, net of income taxes $ 736 $ 34,662 Reinsurance Activity The effects of reinsurance on premiums written and earned are included within discontinued operations and are summarized as follows (in thousands). Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Written Earned Written Earned Premiums from direct business $ — $ — $ 63,811 $ 61,384 Reinsurance assumed — — 6,396 6,452 Reinsurance ceded — — (2,759) (2,759) Net premiums $ — $ — $ 67,448 $ 65,077 The effects of reinsurance on incurred losses and LAE are included within discontinued operations and are as follows (in thousands). Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Losses and LAE incurred $ — $ 38,225 Reinsurance recoverables — 194 Net loss and LAE incurred $ — $ 38,419

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2021
Fair Value Measurements
Fair Value Measurements	4. Fair Value Measurements Fair Value Measurements and Disclosures The Company determines fair values in compliance with The Fair Value Measurements and Disclosures Topic of the ASC (the “Fair Value Topic”). The Fair Value Topic defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. The Fair Value Topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Fair Value Topic assumes that transactions upon which fair value measurements are based occur in the principal market for the asset or liability being measured. Further, fair value measurements made under the Fair Value Topic exclude transaction costs and are not the result of forced transactions. The Fair Value Topic includes a fair value hierarchy that classifies fair value measurements based upon the inputs used in valuing the assets or liabilities that are the subject of fair value measurements. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs, as indicated below. ● Level 1 Inputs : Unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. ● Level 2 Inputs : Observable inputs other than Level 1 prices. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, prepayment speeds, default rates, credit risks and loss severities), and inputs that are derived from or corroborated by market data, among others. ● Level 3 Inputs : Unobservable inputs that reflect an entity’s own 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 . Fair Value Option The Company has elected to measure substantially all of PrimeLending’s mortgage loans held for sale and the retained mortgage servicing rights (“MSR”) asset at fair value, under the provisions of the Fair Value Option. The Company elected to apply the provisions of the Fair Value Option to these items so that it would have the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. At September 30, 2021 and December 31, 2020, the aggregate fair value of PrimeLending’s 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. 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. The following tables present information regarding financial assets and liabilities measured at fair value on a recurring basis (in thousands). Level 1 Level 2 Level 3 Total September 30, 2021 Inputs Inputs Inputs Fair Value Trading securities $ 8,301 $ 601,512 $ — $ 609,813 Available for sale securities — 1,994,183 — 1,994,183 Equity securities 221 — — 221 Loans held for sale — 1,828,626 72,519 1,901,145 Derivative assets — 89,440 — 89,440 MSR asset — — 110,931 110,931 Securities sold, not yet purchased 79,725 33,339 — 113,064 Derivative liabilities — 27,349 — 27,349 Level 1 Level 2 Level 3 Total December 31, 2020 Inputs Inputs Inputs Fair Value Trading securities $ 45,390 $ 648,865 $ — $ 694,255 Available for sale securities — 1,462,205 — 1,462,205 Equity securities 140 — — 140 Loans held for sale — 2,449,588 71,816 2,521,404 Derivative assets — 126,898 — 126,898 MSR asset — — 143,742 143,742 Securities sold, not yet purchased 54,494 25,295 — 79,789 Derivative liabilities — 74,598 — 74,598 The following tables include a rollforward for those financial instruments measured at fair value using Level 3 inputs (in thousands). Total Gains or Losses (Realized or Unrealized) Balance, Transfers Included in Other Beginning of Purchases/ Sales/ to (from) Included in Comprehensive Balance, Period Additions Reductions Level 3 Net Income Income (Loss) End of Period Three months ended September 30, 2021 Loans held for sale $ 71,433 $ 18,817 $ (22,207) $ (2,291) $ 6,767 $ — $ 72,519 MSR asset 124,497 20,252 (31,366) — (2,452) — 110,931 Total $ 195,930 $ 39,069 $ (53,573) $ (2,291) $ 4,315 $ — $ 183,450 Nine months ended September 30, 2021 Loans held for sale $ 71,816 $ 50,273 $ (51,718) $ (4,099) $ 6,247 $ — $ 72,519 MSR asset 143,742 70,368 (116,000) — 12,821 — 110,931 Total $ 215,558 $ 120,641 $ (167,718) $ (4,099) $ 19,068 $ — $ 183,450 Three months ended September 30, 2020 Loans held for sale $ 91,936 $ 5,338 $ (20,182) $ 1,097 $ (6,003) $ — $ 72,186 MSR asset 81,264 59,351 — — (12,903) — 127,712 Total $ 173,200 $ 64,689 $ (20,182) $ 1,097 $ (18,906) $ — $ 199,898 Nine months ended September 30, 2020 Loans held for sale $ 67,195 $ 53,961 $ (51,125) $ 10,064 $ (7,909) $ — $ 72,186 MSR asset 55,504 123,266 (18,650) — (32,408) — 127,712 Total $ 122,699 $ 177,227 $ (69,775) $ 10,064 $ (40,317) $ — $ 199,898 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. 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. Range (Weighted-Average) Financial instrument Valuation Technique Unobservable Inputs September 30, 2021 December 31, 2020 Loans Market comparable Projected price 94 - 96 % ( 96 %) 91 - 94 % ( 94 %) MSR asset Discounted cash flows Constant prepayment rate 10.02 % 12.15 % Discount rate 14.31 % 14.60 % The fair value of certain loans held for sale that cannot be sold through normal sale channels or are non-performing is measured using Level 3 inputs. The fair value of such loans is generally based upon estimates of expected cash flows using unobservable inputs, including listing prices of comparable assets, uncorroborated expert opinions, and/or management’s knowledge of underlying collateral. The MSR asset 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. The Company had no transfers between Levels 1 and 2 during the periods presented. Any transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. The following table presents those changes in fair value of instruments recognized in the consolidated statements of operations that are accounted for under the Fair Value Option (in thousands). Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ (32,694) $ — $ (32,694) $ (9,167) $ — $ (9,167) MSR asset (2,452) — (2,452) (12,903) — (12,903) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ (55,211) $ — $ (55,211) $ 49,311 $ — $ 49,311 MSR asset 12,821 — 12,821 (32,408) — (32,408) 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 Company’s 2020 Form 10-K. The following tables present the carrying values and estimated fair values of financial instruments not measured at fair value on either a recurring or non-recurring basis (in thousands). Estimated Fair Value Carrying Level 1 Level 2 Level 3 September 30, 2021 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 2,463,517 $ 2,463,517 $ — $ — $ 2,463,517 Assets segregated for regulatory purposes 269,506 269,506 — — 269,506 Securities purchased under agreements to resell 155,908 — 155,908 — 155,908 Held to maturity securities 277,419 — 288,112 — 288,112 Loans held for sale 207,733 — 207,733 — 207,733 Loans held for investment, net 7,443,414 — 645,901 7,084,518 7,730,419 Broker-dealer and clearing organization receivables 1,419,652 — 1,419,652 — 1,419,652 Other assets 71,464 — 69,938 1,526 71,464 Financial liabilities: Deposits 12,132,162 — 12,137,502 — 12,137,502 Broker-dealer and clearing organization payables 1,496,923 — 1,496,923 — 1,496,923 Short-term borrowings 747,040 — 747,040 — 747,040 Debt 395,804 — 395,804 — 395,804 Other liabilities 10,099 — 10,099 — 10,099 Estimated Fair Value Carrying Level 1 Level 2 Level 3 December 31, 2020 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 1,062,946 $ 1,062,946 $ — $ — $ 1,062,946 Assets segregated for regulatory purposes 290,357 290,357 — — 290,357 Securities purchased under agreements to resell 80,319 — 80,319 — 80,319 Held to maturity securities 311,944 — 326,671 — 326,671 Loans held for sale 266,982 — 266,982 — 266,982 Loans held for investment, net 7,544,097 — 437,007 7,351,411 7,788,418 Broker-dealer and clearing organization receivables 1,404,727 — 1,404,727 — 1,404,727 Other assets 74,881 — 73,111 1,770 74,881 Financial liabilities: Deposits 11,242,319 — 11,256,629 — 11,256,629 Broker-dealer and clearing organization payables 1,368,373 — 1,368,373 — 1,368,373 Short-term borrowings 695,798 — 695,798 — 695,798 Debt 448,999 — 448,999 — 448,999 Other liabilities 6,133 — 6,133 — 6,133 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). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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

Securities

Securities	9 Months Ended
Securities	Sep. 30, 2021
Securities
Securities	5. Securities The fair value of trading securities is summarized as follows (in thousands). September 30, December 31, 2021 2020 U.S. Treasury securities $ 3,401 $ 40,491 U.S. government agencies: Bonds 14,883 40 Residential mortgage-backed securities 196,241 336,081 Commercial mortgage-backed securities — 876 Collateralized mortgage obligations 54,065 69,172 Corporate debt securities 72,029 62,481 States and political subdivisions 264,044 171,573 Private-label securitized product 177 8,571 Other 4,973 4,970 Totals $ 609,813 $ 694,255 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-Dealers’ ultimate obligations may exceed the amount recognized in the financial statements. These securities, which are carried at fair value and reported as securities sold, not yet purchased in the consolidated balance sheets, had a value of $113.1 million and $79.8 million at September 30, 2021 and December 31, 2020, respectively. The amortized cost and fair value of available for sale and held to maturity securities are summarized as follows (in thousands). Available for Sale Amortized Unrealized Unrealized September 30, 2021 Cost Gains Losses Fair Value U.S. Treasury securities $ 4,972 $ — $ (16) $ 4,956 U.S. government agencies: Bonds 45,181 1,010 (72) 46,119 Residential mortgage-backed securities 901,720 10,784 (8,247) 904,257 Commercial mortgage-backed securities 205,290 476 (8,129) 197,637 Collateralized mortgage obligations 794,258 3,992 (4,241) 794,009 States and political subdivisions 45,574 1,887 (256) 47,205 Totals $ 1,996,995 $ 18,149 $ (20,961) $ 1,994,183 Available for Sale Amortized Unrealized Unrealized December 31, 2020 Cost Gains Losses Fair Value U.S. government agencies: Bonds $ 82,036 $ 1,095 $ (325) $ 82,806 Residential mortgage-backed securities 624,863 17,194 (446) 641,611 Commercial mortgage-backed securities 124,929 768 (1,159) 124,538 Collateralized mortgage obligations 559,362 6,916 (370) 565,908 States and political subdivisions 44,729 2,613 — 47,342 Totals $ 1,435,919 $ 28,586 $ (2,300) $ 1,462,205 Held to Maturity Amortized Unrealized Unrealized September 30, 2021 Cost Gains Losses Fair Value U.S. government agencies: Residential mortgage-backed securities $ 10,755 $ 518 $ — $ 11,273 Commercial mortgage-backed securities 150,060 6,727 — 156,787 Collateralized mortgage obligations 48,210 1,070 — 49,280 States and political subdivisions 68,394 2,402 (24) 70,772 Totals $ 277,419 $ 10,717 $ (24) $ 288,112 Held to Maturity Amortized Unrealized Unrealized December 31, 2020 Cost Gains Losses Fair Value U.S. government agencies: Residential mortgage-backed securities $ 13,547 $ 708 $ — $ 14,255 Commercial mortgage-backed securities 152,820 9,205 — 162,025 Collateralized mortgage obligations 74,932 2,036 — 76,968 States and political subdivisions 70,645 2,778 — 73,423 Totals $ 311,944 $ 14,727 $ — $ 326,671 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. 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). September 30, 2021 December 31, 2020 Number of Unrealized Number of Unrealized Securities Fair Value Losses Securities Fair Value Losses Available for Sale U.S. treasury securities: Unrealized loss for less than twelve months 1 $ 4,956 $ 16 — $ — $ — Unrealized loss for twelve months or longer — — — — — — 1 4,956 16 — — — U.S. government agencies: Bonds: Unrealized loss for less than twelve months 1 4,985 15 8 60,298 325 Unrealized loss for twelve months or longer 1 6,389 57 — — — 2 11,374 72 8 60,298 325 Residential mortgage-backed securities: Unrealized loss for less than twelve months 58 608,502 7,983 15 86,287 429 Unrealized loss for twelve months or longer 5 27,357 264 — — — 63 635,859 8,247 15 86,287 429 Commercial mortgage-backed securities: Unrealized loss for less than twelve months 11 132,020 4,765 10 105,386 1,176 Unrealized loss for twelve months or longer 7 59,021 3,364 — — — 18 191,041 8,129 10 105,386 1,176 Collateralized mortgage obligations: Unrealized loss for less than twelve months 39 363,054 3,943 10 101,990 324 Unrealized loss for twelve months or longer 7 46,686 298 5 13,611 46 46 409,740 4,241 15 115,601 370 States and political subdivisions: Unrealized loss for less than twelve months 25 8,993 256 — — — Unrealized loss for twelve months or longer — — — — — — 25 8,993 256 — — — Total available for sale: Unrealized loss for less than twelve months 135 1,122,510 16,978 43 353,961 2,254 Unrealized loss for twelve months or longer 20 139,453 3,983 5 13,611 46 155 $ 1,261,963 $ 20,961 48 $ 367,572 $ 2,300 September 30, 2021 December 31, 2020 Number of Unrealized Number of Unrealized Securities Fair Value Losses Securities Fair Value Losses Held to Maturity States and political subdivisions: Unrealized loss for less than twelve months 6 $ 1,831 $ 21 2 $ 578 $ — Unrealized loss for twelve months or longer 1 264 3 — — — 7 2,095 24 2 578 — Total held to maturity: Unrealized loss for less than twelve months 6 1,831 21 2 578 — Unrealized loss for twelve months or longer 1 264 3 — — — 7 $ 2,095 $ 24 2 $ 578 $ — 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). Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value Due in one year or less $ 2,025 $ 2,053 $ 667 $ 682 Due after one year through five years 36,055 37,118 1,179 1,199 Due after five years through ten years 15,487 16,096 14,094 14,643 Due after ten years 42,160 43,013 52,454 54,248 95,727 98,280 68,394 70,772 Residential mortgage-backed securities 901,720 904,257 10,755 11,273 Collateralized mortgage obligations 794,258 794,009 48,210 49,280 Commercial mortgage-backed securities 205,290 197,637 150,060 156,787 $ 1,996,995 $ 1,994,183 $ 277,419 $ 288,112 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. 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. Mortgage-backed securities and collateralized mortgage obligations consist primarily of Government National Mortgage Association (“GNMA”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) pass-through and participation certificates. GNMA securities are guaranteed by the full faith and credit of the United States, while FNMA and FHLMC securities are fully guaranteed by those respective United States government-sponsored 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
Loans Held for Investment	Sep. 30, 2021
Loans Held for Investment
Loans Held for Investment	6. Loans Held for Investment The Bank originates loans to customers primarily in Texas. Although the Bank has diversified loan and leasing portfolios and, generally, holds collateral against amounts advanced to customers, its debtors’ ability to honor their contracts is substantially dependent upon the general economic conditions of the region and of the industries in which its debtors operate, which consist primarily of agribusiness, construction, energy, real estate and wholesale/retail trade. The Hilltop Broker-Dealers make loans to customers and correspondents through transactions originated by both employees and independent retail representatives throughout the United States. The Hilltop Broker-Dealers control risk by requiring customers to maintain collateral in compliance with various regulatory and internal guidelines, which may vary based upon market conditions. Securities owned by customers and held as collateral for loans are not included in the consolidated financial statements. Loans held for investment summarized by portfolio segment are as follows (in thousands). September 30, December 31, 2021 2020 Commercial real estate $ 3,032,141 $ 3,133,903 Commercial and industrial (1) 1,950,797 2,627,774 Construction and land development 789,693 828,852 1-4 family residential 1,104,847 629,938 Consumer 29,547 35,667 Broker-dealer (2) 645,901 437,007 7,552,926 7,693,141 Allowance for credit losses (109,512) (149,044) Total loans held for investment, net of allowance $ 7,443,414 $ 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. The following table provides details associated with non-accrual loans, excluding those classified as held for sale (in thousands). Non-accrual Loans September 30, 2021 December 31, 2020 Interest Income Recognized With With No With With No Three Months Ended September 30, Nine Months Ended September 30, Allowance Allowance Total Allowance Allowance Total 2021 2020 2021 2020 Commercial real estate: Non-owner occupied $ 417 $ 900 $ 1,317 $ 1,213 $ 445 $ 1,658 $ 76 $ 99 $ 204 $ 88 Owner occupied 3,071 1,317 4,388 3,473 6,002 9,475 345 156 574 241 Commercial and industrial 21,291 8,517 29,808 10,821 23,228 34,049 179 312 653 714 Construction and land development 2 364 366 102 405 507 13 36 48 89 1-4 family residential 1,432 18,476 19,908 4,726 16,651 21,377 796 134 2,837 1,299 Consumer 24 — 24 28 — 28 1 2 (120) (1) Broker-dealer — — — — — — — — — — $ 26,237 $ 29,574 $ 55,811 $ 20,363 $ 46,731 $ 67,094 $ 1,410 $ 739 $ 4,196 $ 2,430 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. 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. 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. The Bank classifies loan modifications as troubled debt restructurings (“TDRs”) when it concludes that it has both granted a concession to a debtor and that the debtor is experiencing financial difficulties. Loan modifications are typically structured to create affordable payments for the debtor and can be achieved in a variety of ways. The Bank modifies loans by reducing interest rates and/or lengthening loan amortization schedules. The Bank may also reconfigure a single loan into two or more loans (“A/B Note”). The typical A/B Note restructure results in a “bad” loan which is charged off and a “good” loan or loans, the terms of which comply with the Bank’s customary underwriting policies. The debt charged off on the “bad” loan is not forgiven to the debtor. 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 . 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. An analysis of the aging of the Company’s loan portfolio is shown in the following tables (in thousands). Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Past Current Total Past Due September 30, 2021 30-59 Days 60-89 Days 90 Days or More Due Loans Loans Loans 90 Days or More Commercial real estate: Non-owner occupied $ 1,621 $ — $ 199 $ 1,820 $ 1,722,798 $ 1,724,618 $ — Owner occupied 149 — 2,274 2,423 1,305,100 1,307,523 — Commercial and industrial 603 632 13,936 15,171 1,935,626 1,950,797 1 Construction and land development 10 77 — 87 789,606 789,693 — 1-4 family residential 4,009 1,676 7,021 12,706 1,092,141 1,104,847 88 Consumer 154 3 23 180 29,367 29,547 — Broker-dealer — — — — 645,901 645,901 — $ 6,546 $ 2,388 $ 23,453 $ 32,387 $ 7,520,539 $ 7,552,926 $ 89 Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Past Current Total Past Due December 31, 2020 30-59 Days 60-89 Days 90 Days or More Due Loans Loans Loans 90 Days or More Commercial real estate: Non-owner occupied $ 1,919 $ — $ 199 $ 2,118 $ 1,786,193 $ 1,788,311 $ — Owner occupied 195 522 8,328 9,045 1,336,547 1,345,592 — Commercial and industrial 3,114 407 7,318 10,839 2,616,935 2,627,774 6 Construction and land development 19 — — 19 828,833 828,852 — 1-4 family residential 8,110 3,040 12,420 23,570 606,368 629,938 — Consumer 172 123 26 321 35,346 35,667 — Broker-dealer — — — — 437,007 437,007 — $ 13,529 $ 4,092 $ 28,291 $ 45,912 $ 7,647,229 $ 7,693,141 $ 6 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. 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. 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 borrower’s 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. 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 Company’s 2020 Form 10-K. 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). Amortized Cost Basis by Origination Year 2016 and September 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Commercial real estate: non-owner occupied Internal Grade 1-3 (Pass low risk) $ 17,984 $ 14,856 $ 24,145 $ 9,102 $ 1,379 $ 19,704 $ (4) $ 87,166 Internal Grade 4-7 (Pass normal risk) 235,408 207,049 113,457 50,614 42,473 68,139 33,405 750,545 Internal Grade 8-11 (Pass high risk and watch) 92,225 226,326 128,586 96,780 56,898 142,747 1,219 744,781 Internal Grade 12 (Special mention) — — 3,167 1,210 — 3,423 — 7,800 Internal Grade 13 (Substandard accrual) 24,370 8,995 16,142 16,866 17,809 48,727 100 133,009 Internal Grade 14 (Substandard non-accrual) 417 — — — — 900 — 1,317 Commercial real estate: owner occupied Internal Grade 1-3 (Pass low risk) $ 116,722 $ 64,383 $ 17,413 $ 29,476 $ 32,386 $ 37,852 $ 4 $ 298,236 Internal Grade 4-7 (Pass normal risk) 149,531 123,342 120,207 89,486 27,442 83,316 15,191 608,515 Internal Grade 8-11 (Pass high risk and watch) 49,084 107,022 44,373 83,934 20,594 34,431 7,888 347,326 Internal Grade 12 (Special mention) — — — — — — — — Internal Grade 13 (Substandard accrual) 576 14,642 5,331 7,691 6,828 13,990 — 49,058 Internal Grade 14 (Substandard non-accrual) 1,602 — (3) 350 2,271 168 — 4,388 Commercial and industrial Internal Grade 1-3 (Pass low risk) $ 20,215 $ 32,018 $ 26,301 $ 7,741 $ 8,963 $ 2,655 $ 58,993 $ 156,886 Internal Grade 4-7 (Pass normal risk) 87,493 100,455 31,496 25,226 15,217 16,710 275,095 551,692 Internal Grade 8-11 (Pass high risk and watch) 84,927 87,955 39,591 15,075 7,662 7,076 292,171 534,457 Internal Grade 12 (Special mention) — 23 — — — — 2,106 2,129 Internal Grade 13 (Substandard accrual) 2,250 10,839 1,471 7,280 4,212 3,875 6,699 36,626 Internal Grade 14 (Substandard non-accrual) 6,619 17,977 511 1,772 225 87 2,617 29,808 Construction and land development Internal Grade 1-3 (Pass low risk) $ 15,898 $ 27,992 $ 5,166 $ 3,746 $ 241 $ 4,078 $ 1,450 $ 58,571 Internal Grade 4-7 (Pass normal risk) 212,531 170,416 39,782 11,603 1,982 3,310 25,021 464,645 Internal Grade 8-11 (Pass high risk and watch) 91,197 75,871 48,342 1,125 469 1,945 22,608 241,557 Internal Grade 12 (Special mention) — — — — — — — — Internal Grade 13 (Substandard accrual) — — 28 — 5,347 — — 5,375 Internal Grade 14 (Substandard non-accrual) 381 — — — — (15) — 366 Construction and land development - individuals FICO less than 620 $ — $ — $ — $ — $ — $ — $ — $ — FICO between 620 and 720 944 287 — 1,226 — — — 2,457 FICO greater than 720 10,396 5,744 — — — — — 16,140 Substandard non-accrual — — — — — — — — Other (1) 582 — — — — — — 582 1-4 family residential FICO less than 620 $ 472 $ 1,556 $ 722 $ 3,632 $ 53 $ 26,855 $ 255 $ 33,545 FICO between 620 and 720 14,627 12,452 8,093 7,748 7,196 35,937 911 86,964 FICO greater than 720 561,557 140,097 60,302 34,483 19,508 59,801 3,757 879,505 Substandard non-accrual — 14 1,063 273 122 18,436 — 19,908 Other (1) 58,137 9,604 8,406 4,821 790 2,300 867 84,925 Consumer FICO less than 620 $ 967 $ 577 $ 437 $ 55 $ 74 $ 50 $ 346 $ 2,506 FICO between 620 and 720 3,478 1,811 976 188 444 78 1,887 8,862 FICO greater than 720 4,066 3,088 979 468 58 18 3,385 12,062 Substandard non-accrual — — — — 23 1 — 24 Other (1) 3,891 1,349 416 41 14 27 355 6,093 Total loans with credit quality measures $ 1,868,547 $ 1,466,740 $ 746,900 $ 512,012 $ 280,680 $ 636,621 $ 756,326 $ 6,267,826 Commercial and industrial (mortgage warehouse lending) $ 505,976 Commercial and industrial (Paycheck Protection Program loans) $ 133,223 Broker-Dealer (margin loans and correspondent receivables) $ 645,901 Total loans held for investment $ 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
Allowance for Credit Losses	Sep. 30, 2021
Allowance for Credit Losses
Allowance for Credit Losses	7. Allowance for Credit Losses Available for Sale Securities and Held to Maturity Securities 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. Loans Held for Investment The allowance for credit losses for loans held for investment represents management’s 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 (“CECL”) 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 Company’s 2020 Form 10-K. One of the most significant judgments involved in estimating the Company’s 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 Moody’s 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 Moody’s 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. 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. 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. 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 Bank’s 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. 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. Changes in the allowance for credit losses for loans held for investment, distributed by portfolio segment, are shown below (in thousands). Balance, Transition Provision for Recoveries on Balance, Beginning of Adjustment (Reversal of) Loans Charged Off End of Three Months Ended September 30, 2021 Period CECL Credit Losses Charged Off Loans Period Commercial real estate $ 77,633 $ — $ (8,993) $ (124) $ 19 $ 68,535 Commercial and industrial 27,866 — 2,398 (317) 598 30,545 Construction and land development 5,185 — (85) — — 5,100 1-4 family residential 3,659 — 946 (87) 20 4,538 Consumer 592 — (41) (73) 26 504 Broker-dealer 334 — (44) — — 290 Total $ 115,269 $ — $ (5,819) $ (601) $ 663 $ 109,512 Balance, Transition Provision for Recoveries on Balance, Beginning of Adjustment (Reversal of) Loans Charged Off End of Nine Months Ended September 30, 2021 Period CECL Credit Losses Charged Off Loans Period Commercial real estate $ 109,629 $ — $ (41,037) $ (310) $ 253 $ 68,535 Commercial and industrial 27,703 — 2,848 (1,738) 1,732 30,545 Construction and land development 6,677 — (1,577) — — 5,100 1-4 family residential 3,946 — 358 (248) 482 4,538 Consumer 876 — (317) (226) 171 504 Broker-dealer 213 — 77 — — 290 Total $ 149,044 $ — $ (39,648) $ (2,522) $ 2,638 $ 109,512 Balance, Transition Provision for Recoveries on Balance, Beginning of Adjustment (Reversal of) Loans Charged Off End of Three Months Ended September 30, 2020 Period CECL Credit Losses Charged Off Loans Period Commercial real estate $ 106,551 $ — $ (2,527) $ (29) $ 571 $ 104,566 Commercial and industrial 31,863 — 7,274 (1,341) 382 38,178 Construction and land development 8,393 — (2,123) — — 6,270 1-4 family residential 7,399 — (2,213) (144) 10 5,052 Consumer 1,429 — (411) (100) 84 1,002 Broker-dealer 748 — (602) — — 146 Total $ 156,383 $ — $ (602) $ (1,614) $ 1,047 $ 155,214 Balance, Transition Provision for Recoveries on Balance, Beginning of Adjustment (Reversal of) Loans Charged Off End of Nine Months Ended September 30, 2020 Period CECL Credit Losses Charged Off Loans Period Commercial real estate $ 31,595 $ 8,073 $ 68,823 $ (4,517) $ 592 $ 104,566 Commercial and industrial 17,964 3,193 30,896 (15,325) 1,450 38,178 Construction and land development 4,878 577 815 (2) 2 6,270 1-4 family residential 6,386 (29) (813) (517) 25 5,052 Consumer 265 748 154 (473) 308 1,002 Broker-dealer 48 — 98 — — 146 Total $ 61,136 $ 12,562 $ 99,973 $ (20,834) $ 2,377 $ 155,214 Unfunded Loan Commitments 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. Changes in the allowance for credit losses for loans with off-balance sheet credit exposures are shown below (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 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
Mortgage Servicing Rights	Sep. 30, 2021
Mortgage Servicing Rights
Mortgage Servicing Rights	8. Mortgage Servicing Rights The following tables present the changes in fair value of the Company’s MSR asset and other information related to the serviced portfolio (dollars in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance, beginning of period $ 124,497 $ 81,264 $ 143,742 $ 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 (1) 3,525 (10,145) 32,199 (26,023) Due to customer payoffs (5,977) (2,758) (19,378) (6,385) Balance, end of period $ 110,931 $ 127,712 $ 110,931 $ 127,712 September 30, December 31, 2021 2020 Mortgage loans serviced for others (2) $ 8,672,818 $ 14,643,623 MSR asset as a percentage of serviced mortgage loans 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. The key assumptions used in measuring the fair value of the Company’s MSR asset were as follows. September 30, December 31, 2021 2020 Weighted average constant prepayment rate 10.02 % 12.15 % Weighted average discount rate 14.31 % 14.60 % Weighted average life (in years) 7.1 6.3 A sensitivity analysis of the fair value of the Company’s MSR asset to certain key assumptions is presented in the following table (in thousands). September 30, December 31, 2021 2020 Constant prepayment rate: Impact of 10% adverse change $ (2,467) $ (5,639) Impact of 20% adverse change (5,043) (11,164) Discount rate: Impact of 10% adverse change (3,885) (6,435) Impact of 20% adverse change (7,399) (12,287) This sensitivity analysis presents the effect of hypothetical changes in key assumptions on the fair value of the MSR asset. The effect of such hypothetical change in assumptions generally cannot be extrapolated because the relationship of the change in one key assumption to the change in the fair value of the MSR asset is not linear. In addition, in the analysis, the impact of an adverse change in one key assumption is calculated independent of any impact on other assumptions. In reality, changes in one assumption may change another assumption. Contractually specified servicing fees, late fees and ancillary fees earned of $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
Deposits	Sep. 30, 2021
Deposits
Deposits	9. Deposits Deposits are summarized as follows (in thousands). September 30, December 31, 2021 2020 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 $ 12,132,162 $ 11,242,319

Short-term Borrowings

Short-term Borrowings	9 Months Ended
Short-term Borrowings	Sep. 30, 2021
Short-term Borrowings
Short-term Borrowings	10. Short-term Borrowings Short-term borrowings are summarized as follows (in thousands). September 30, December 31, 2021 2020 Federal funds purchased $ 159,825 $ 180,325 Securities sold under agreements to repurchase 155,294 237,856 Federal Home Loan Bank — — Short-term bank loans 64,000 — Commercial paper 367,921 277,617 $ 747,040 $ 695,798 Federal Funds Purchased and Securities Sold under Agreements to Repurchase Federal funds purchased and securities sold under agreements to repurchase generally mature daily, on demand, or on some other short-term basis. The Bank and the Hilltop Broker-Dealers execute transactions to sell securities under agreements to repurchase with both customers and other broker-dealers. Securities involved in these transactions are held by the Bank, the Hilltop Broker-Dealers or a third-party dealer. Information concerning federal funds purchased and securities sold under agreements to repurchase is shown in the following tables (dollars in thousands). Nine Months Ended September 30, 2021 2020 Average balance during the period $ 328,853 $ 547,925 Average interest rate during the period 0.37 % 1.03 % September 30, December 31, 2021 2020 Average interest rate at end of period 0.29 % 0.25 % Securities underlying the agreements at end of period: Carrying value $ 156,402 $ 237,913 Estimated fair value $ 172,111 $ 262,554 Federal Home Loan Bank (“FHLB”) 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). Nine Months Ended September 30, 2021 2020 Average balance during the period $ — $ 51,606 Average interest rate during the period — % 1.62 % Short-Term Bank Loans 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%. Commercial Paper 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 (“CP Notes”) 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
Notes Payable	Sep. 30, 2021
Notes Payable
Notes Payable	11. Notes Payable Notes payable consisted of the following (in thousands). September 30, December 31, 2021 2020 Senior Notes due April 2025, net of discount of $931 and $1,063, respectively $ 149,069 $ 148,937 Subordinated Notes due May 2030, net of discount of $727 and $793, respectively 49,273 49,207 Subordinated Notes due May 2035, net of discount of $2,264 and $2,392, respectively 147,736 147,608 Ventures Management lines of credit 49,726 36,235 $ 395,804 $ 381,987

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2021
Leases
Leases	12. Leases Supplemental balance sheet information related to finance leases is as follows (in thousands). September 30, December 31, 2021 2020 Finance leases: Premises and equipment $ 7,780 $ 7,780 Accumulated depreciation (5,210) (4,768) Premises and equipment, net $ 2,570 $ 3,012 The components of lease costs, including short-term lease costs, are as follows (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 Finance lease cost: Amortization of ROU assets $ 147 $ 147 $ 442 $ 442 Interest on lease liabilities 129 139 396 424 Total finance lease cost $ 276 $ 286 $ 838 $ 866 Supplemental cash flow information related to leases is as follows (in thousands). Nine Months Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: 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 lease obligations: Operating leases $ 37,086 $ 8,773 Finance leases — — Information regarding the lease terms and discount rates of the Company’s leases is as follows. September 30, 2021 December 31, 2020 Weighted Average Weighted Average Remaining Lease Weighted Average Remaining Lease Weighted Average Lease Classification Term (Years) Discount Rate Term (Years) Discount Rate Operating 6.0 4.01 % 5.5 4.67 % Finance 5.0 4.83 % 5.6 4.81 % Future minimum lease payments under lease agreements as of September 30, 2021, are presented below (in thousands). Operating Leases Finance Leases 2021 $ 444 $ 307 2022 33,994 1,241 2023 29,196 1,280 2024 21,068 1,163 2025 15,669 886 Thereafter 51,163 1,411 Total minimum lease payments 151,534 6,288 Less amount representing interest (17,238) (1,938) Lease liabilities $ 134,296 $ 4,350 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
Income Taxes	Sep. 30, 2021
Income Taxes
Income Taxes	13. Income Taxes The Company applies an estimated annual effective rate to interim period pre-tax income to calculate the income tax provision for the quarter in accordance with the principal method prescribed by the accounting guidance established for computing income taxes in interim periods. The Company’s effective tax rates 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.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2021
Commitments and Contingencies
Commitments and Contingencies	14. Commitments and Contingencies Legal Matters The Company is subject to loss contingencies related to litigation, claims, investigations and legal and administrative cases and proceedings arising in the ordinary course of business. The Company evaluates these contingencies based on information currently available, including advice of counsel. The Company establishes accruals for those matters when a loss contingency is considered probable and the related amount is reasonably estimable. Any accruals are periodically reviewed and may be adjusted as circumstances change. A portion of the Company’s exposure with respect to loss contingencies may be offset by applicable insurance coverage. In determining the amounts of any accruals or estimates of possible loss contingencies, the Company does not take into account the availability of insurance coverage. When it is practicable, the Company estimates loss contingencies for possible litigation and claims, whether or not there is an accrued probable loss. When the Company is able to estimate such probable losses, and when it estimates that it is reasonably possible it could incur losses in excess of amounts accrued, the Company is required to make a disclosure of the aggregate estimation. As available information changes, however, the matters for which the Company is able to estimate, as well as the estimates themselves, will be adjusted accordingly. Assessments of litigation and claims exposures are difficult due to many factors that involve inherent unpredictability. Those factors include the following: the varying stages of the proceedings, particularly in the early stages; unspecified, unsupported, or uncertain damages; damages other than compensatory, such as punitive damages; a matter presenting meaningful legal uncertainties, including novel issues of law; multiple defendants and jurisdictions; whether discovery has begun or is complete; whether meaningful settlement discussions have commenced; and whether the claim involves a class action and if so, how the class is defined. As a result of some of these factors, the Company may be unable to estimate reasonably possible losses with respect to some or all of the pending and threatened litigation and claims asserted against the Company. The Company is involved in information-gathering requests and investigations (both formal and informal), as well as reviews, examinations and proceedings (collectively, “Inquiries”) by various governmental regulatory agencies, law enforcement authorities and self-regulatory bodies regarding certain of its businesses, business practices and policies, as well as the conduct of persons with whom it does business. Additional Inquiries will arise from time to time. In connection with those Inquiries, the Company receives document requests, subpoenas and other requests for information. The Inquiries could develop into administrative, civil or criminal proceedings or enforcement actions that could result in consequences that have a material effect on the Company’s consolidated financial position, results of operations or cash flows as a whole. Such consequences could include adverse judgments, findings, settlements, penalties, fines, orders, injunctions, restitution, or alterations in the Company’s business practices, and could result in additional expenses and collateral costs, including reputational damage. PrimeLending received an investigative inquiry from the United States Attorney for the Western District of Virginia regarding PrimeLending’s 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. While the final outcome of litigation and claims exposures or of any Inquiries is inherently unpredictable, management is currently of the opinion that the outcome of pending and threatened litigation and inquiries will not, except related to specific matters disclosed above, have a material effect on the Company’s business, consolidated financial position, results of operations or cash flows as a whole. However, in the event of unexpected future developments, it is reasonably possible that an adverse outcome in any matter, including the matters discussed above, could be material to the Company’s business, consolidated financial position, results of operations or cash flows for any particular reporting period of occurrence. Indemnification Liability Reserve The mortgage origination segment may be responsible to agencies, investors, or other parties for errors or omissions relating to its representations and warranties that each loan sold meets certain requirements, including representations as to underwriting standards and the validity of certain borrower representations in connection with the loan. If determined to be at fault, the mortgage origination segment either repurchases the affected loan from or indemnifies the claimant against loss. The mortgage origination segment has established an indemnification liability reserve for such probable losses. Generally, the mortgage origination segment first becomes aware that an agency, investor, or other party believes a loss has been incurred on a sold loan when it receives a written request from the claimant to repurchase the loan or reimburse the claimant’s losses. Upon completing its review of the claimant’s request, the mortgage origination segment establishes a specific claims reserve for the loan if it concludes its obligation to the claimant is both probable and reasonably estimable. An additional reserve has been established for probable agency, investor or other party losses that may have been incurred, but not yet reported to the mortgage origination segment based upon a reasonable estimate of such losses. Factors considered in the calculation of this reserve include, but are not limited to, the total volume of loans sold exclusive of specific claimant requests, actual claim settlements and the severity of estimated losses resulting from future claims, and the mortgage origination segment’s history of successfully curing defects identified in claim requests. 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. While the mortgage origination segment’s sales contracts typically include borrower early payment default repurchase provisions, these provisions have not been a primary driver of claims to date, and therefore, are not a primary factor considered in the calculation of this reserve. At September 30, 2021 and December 31, 2020, the mortgage origination segment’s 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. The following tables provide for a rollforward of claims activity for loans put-back to the mortgage origination segment based upon an alleged breach of a representation or warranty with respect to a loan sold and related indemnification liability reserve activity (in thousands). Representation and Warranty Specific Claims Activity - Origination Loan Balance Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 Indemnification Liability Reserve Activity Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 September 30, December 31, 2021 2020 Reserve for Indemnification Liability: Specific claims $ 196 $ 961 Incurred but not reported claims 25,777 20,570 Total $ 25,973 $ 21,531 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
Financial Instruments with Off-Balance Sheet Risk	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 Banking The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit that involve varying degrees of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. The contract amounts of those instruments reflect the extent of involvement (and therefore the exposure to credit loss) the Bank has in particular classes of financial instruments. Commitments to extend credit are agreements to lend to a customer provided that the terms established in the contract are met. Commitments generally have fixed expiration dates and may require payment of fees. Because some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third-party. These letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers. In the aggregate, the Bank had outstanding unused commitments to extend credit of $2.1 billion at September 30, 2021 and outstanding financial and performance standby letters of credit of $87.2 million at September 30, 2021. 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 management’s credit evaluation of the borrower. Collateral held varies but may include real estate, accounts receivable, marketable securities, interest-bearing deposit accounts, inventory, and property, plant and equipment. Broker-Dealer 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
Stock-Based Compensation	Sep. 30, 2021
Stock-Based Compensation
Stock-Based Compensation	16. Stock-Based Compensation Since 2012, the Company has issued stock-based incentive awards pursuant to the Hilltop Holdings Inc. 2012 Equity Incentive Plan (the “2012 Plan”). In July 2020, pursuant to stockholders’ approval, the Company adopted the Hilltop Holdings Inc. 2020 Equity Incentive Plan (the “2020 Plan”). The 2020 Plan serves as successor to the 2012 Plan. The 2012 Plan and the 2020 Plan are referred to collectively as “the Equity Plans.” 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 Company’s board of directors for services rendered to the Company. Restricted Stock Units The following table summarizes information about nonvested restricted stock unit (“RSU”) activity for the nine months ended September 30, 2021 (shares in thousands). RSUs Weighted Average Grant Date Outstanding Fair Value Balance, December 31, 2020 1,833 $ 21.48 Granted 532 $ 32.93 Vested/Released (473) $ 27.65 Forfeited (17) $ 22.51 Balance, September 30, 2021 1,875 $ 23.17 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. 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 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
Regulatory Matters	Sep. 30, 2021
Regulatory Matters
Regulatory Matters	17. Regulatory Matters Banking and Hilltop PlainsCapital, which includes the Bank and PrimeLending, and Hilltop are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional discretionary — actions by regulators that, if undertaken, could have a direct, material effect on the consolidated financial statements. The regulations require PlainsCapital and Hilltop to meet specific capital adequacy guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company performs reviews of the classification and calculation of risk-weighted assets to ensure accuracy and compliance with the Basel III regulatory capital requirements 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). 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. The following table shows PlainsCapital’s and Hilltop’s actual capital amounts and ratios in accordance with Basel III compared to the regulatory minimum capital requirements including conservation buffer ratio in effect at the end of the period (dollars in thousands). Based on actual capital amounts and ratios shown in the following table, PlainsCapital’s ratios place it in the “well capitalized” (as defined) capital category under regulatory requirements. Actual capital amounts and ratios as of September 30, 2021 reflect PlainsCapital’s and Hilltop’s 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. Minimum Capital Requirements Including Conservation To Be Well September 30, 2021 December 31, 2020 Buffer Capitalized Amount Ratio Amount Ratio Ratio Ratio Tier 1 capital (to average assets): PlainsCapital $ 1,398,761 10.02 % $ 1,385,842 10.44 % 4.0 % 5.0 % Hilltop 2,209,309 12.64 % 2,111,580 12.64 % 4.0 % N/A Common equity Tier 1 capital PlainsCapital 1,398,761 15.40 % 1,385,842 14.40 % 7.0 % 6.5 % Hilltop 2,209,309 21.28 % 2,046,580 18.97 % 7.0 % N/A Tier 1 capital (to risk-weighted assets): PlainsCapital 1,398,761 15.40 % 1,385,842 14.40 % 8.5 % 8.0 % Hilltop 2,209,309 21.28 % 2,111,580 19.57 % 8.5 % N/A Total capital (to risk-weighted assets): PlainsCapital 1,482,471 16.32 % 1,470,364 15.27 % 10.5 % 10.0 % Hilltop 2,492,353 24.00 % 2,409,684 22.34 % 10.5 % N/A Broker-Dealer Pursuant to the net capital requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Hilltop Securities has elected to determine its net capital requirements using the alternative method. Accordingly, Hilltop Securities is required to maintain minimum net capital, as defined in Rule 15c3-1 promulgated under the Exchange Act, equal to the greater of $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. At September 30, 2021, the net capital position of each of the Hilltop Broker-Dealers was as follows (in thousands). Momentum Hilltop Independent Securities Network Net capital $ 228,135 $ 4,111 Less: required net capital 11,249 283 Excess net capital $ 216,886 $ 3,828 Net capital as a percentage of aggregate debit items 40.6 % Net capital in excess of 5% aggregate debit items $ 200,012 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. Mortgage Origination As a mortgage originator, PrimeLending and its subsidiaries are subject to minimum net worth and liquidity requirements established by HUD and GNMA, as applicable. On an annual basis, PrimeLending and its subsidiaries submit audited financial statements to HUD and GNMA, as applicable, documenting their respective compliance with minimum net worth and liquidity requirements. As of September 30, 2021, PrimeLending and its subsidiaries’ net worth and liquidity exceeded the amounts required by both HUD and GNMA, as applicable.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2021
Stockholders' Equity
Stockholders' Equity	18. Stockholders’ Equity Dividends 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. On October 28, 2021, Hilltop’s 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. Stock Repurchases 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 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 Company’s 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 Company’s 2020 Form 10-K.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
Derivative Financial Instruments	Sep. 30, 2021
Derivative Financial Instruments
Derivative Financial Instruments	19. Derivative Financial Instruments The Company uses various derivative financial instruments to mitigate interest rate risk. The Bank’s interest rate risk management strategy involves effectively managing the re-pricing characteristics of certain assets and liabilities to mitigate potential adverse impacts from changes in interest rates on the Bank’s net interest margin. 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 (“IRLCs”) and its inventory of mortgage loans held for sale. PrimeLending is exposed to such interest rate risk from the time an IRLC is made to an applicant to the time the related mortgage loan is sold. To mitigate interest rate risk, PrimeLending executes forward commitments to sell mortgage-backed securities (“MBSs”) and Eurodollar futures. Additionally, PrimeLending has interest rate risk relative to its MSR asset and uses derivative instruments, including 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. Non-Hedging Derivative Instruments and the Fair Value Option 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 PrimeLending’s IRLCs and forward commitments are recorded in other assets or other liabilities, as appropriate, and changes in the fair values of these derivative instruments are recorded as a component of net gains from sale of loans and other mortgage production income. 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 PrimeLending’s mortgage loans held for sale and its MSR asset, which are measured at fair value under the Fair Value Option. The effect of the change in market interest rates on PrimeLending’s loans held for sale and MSR asset is discussed in Note 8 to the consolidated financial statements. The fair values of the Hilltop Broker-Dealers’ and the Bank’s derivative instruments are recorded in other assets or other liabilities, as appropriate. Changes in the fair value of derivatives are presented in the following table (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Increase (decrease) in fair value of derivatives during period: PrimeLending $ 780 $ 23,286 $ 555 $ 90,429 Hilltop Broker-Dealers 11,427 (3,542) (3,845) 8,466 Bank 7 118 26 (17) Hedging Derivative Instruments 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. 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. Derivative positions are presented in the following table (in thousands). September 30, 2021 December 31, 2020 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Derivative instruments (not designated as hedges): IRLCs $ 2,061,068 $ 40,279 $ 2,470,013 $ 76,048 Commitments to purchase MBSs 1,759,435 4,745 2,478,041 22,311 Commitments to sell MBSs 4,646,594 14,703 6,141,079 (40,621) Interest rate swaps 60,245 27 43,786 (2,196) U.S. Treasury bond futures and options (1) 215,600 — 225,400 — Eurodollar and other futures (1) 1,182,000 — — — Derivative instruments (designated as hedges): Interest rate swaps designated as cash flow hedges $ 150,000 $ (812) $ 105,000 $ (3,112) Interest rate swaps designated as fair value hedges (2) 172,751 3,149 60,618 (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. 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. 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
Balance Sheet Offsetting	Sep. 30, 2021
Balance Sheet Offsetting
Balance Sheet Offsetting	20. Balance Sheet Offsetting Certain financial instruments, including resale and repurchase agreements, securities lending arrangements and derivatives, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The following tables present the assets and liabilities subject to enforceable master netting arrangements, repurchase agreements, or similar agreements with offsetting rights (in thousands). Gross Amounts Not Offset in Net Amounts the Balance Sheet Gross Amounts Gross Amounts of Assets Cash of Recognized Offset in the Presented in the Financial Collateral Net Assets Balance Sheet Balance Sheet Instruments Pledged Amount September 30, 2021 Securities borrowed: Institutional counterparties $ 1,377,261 $ — $ 1,377,261 $ (1,318,830) $ — $ 58,431 Interest rate swaps: Institutional counterparties 73 — 73 (73) — — Reverse repurchase agreements: Institutional counterparties 155,908 — 155,908 (155,908) — — Forward MBS derivatives: Institutional counterparties 20,650 (1,198) 19,452 (11,079) — 8,373 $ 1,553,892 $ (1,198) $ 1,552,694 $ (1,485,890) $ — $ 66,804 December 31, 2020 Securities borrowed: Institutional counterparties $ 1,338,855 $ — $ 1,338,855 $ (1,273,955) $ — $ 64,900 Reverse repurchase agreements: Institutional counterparties 80,319 — 80,319 (79,925) — 394 Forward MBS derivatives: Institutional counterparties 22,311 — 22,311 (22,311) — — $ 1,441,485 $ — $ 1,441,485 $ (1,376,191) $ — $ 65,294 Gross Amounts Not Offset in Net Amounts the Balance Sheet Gross Amounts Gross Amounts of Liabilities Cash of Recognized Offset in the Presented in the Financial Collateral Net Liabilities Balance Sheet Balance Sheet Instruments Pledged Amount September 30, 2021 Securities loaned: Institutional counterparties $ 1,350,722 $ — $ 1,350,722 $ (1,283,622) $ — $ 67,100 Interest rate swaps: Institutional counterparties 46 — 46 — — 46 Repurchase agreements: Institutional counterparties 155,237 — 155,237 (145,564) — 9,673 Forward MBS derivatives: Institutional counterparties 4 — 4 (4) — — $ 1,506,009 $ — $ 1,506,009 $ (1,429,190) $ — $ 76,819 December 31, 2020 Securities loaned: Institutional counterparties $ 1,245,066 $ — $ 1,245,066 $ (1,179,090) $ — $ 65,976 Interest rate swaps: Institutional counterparties 2,196 — 2,196 (2,123) — 73 Repurchase agreements: Institutional counterparties 237,856 — 237,856 (237,856) — — Forward MBS derivatives: Institutional counterparties 40,741 (120) 40,621 (12,670) — 27,951 $ 1,525,859 $ (120) $ 1,525,739 $ (1,431,739) $ — $ 94,000 Secured Borrowing Arrangements Secured Borrowings (Repurchase Agreements) — one Securities Lending Activities — When lending securities, the Company receives cash or similar collateral and generally pays interest (based on the amount of cash deposited) to the other party to the transaction. Securities lending transactions are executed pursuant to written agreements with counterparties that generally require securities loaned to be marked-to-market on a daily basis. The Company receives collateral in the form of cash in an amount generally in excess of the fair value of securities loaned. The Company monitors the fair value of securities loaned on a daily basis, with additional collateral obtained or refunded, as necessary. Collateral adjustments are made on a daily basis through the facilities of various clearinghouses. The Company is a principal in these securities lending transactions and is liable for losses in the event of a failure of any other party to honor its contractual obligation. Management sets credit limits with each counterparty and reviews these limits regularly to monitor the risk level with each counterparty. The Company is subject to credit risk through its securities lending activities if securities prices decline rapidly because the value of the Company’s collateral could fall below the amount of the indebtedness it secures. In rapidly appreciating markets, credit risk increases due to short positions. The Company’s securities lending business subjects the Company to credit risk if a counterparty fails to perform or if collateral securing its obligations is insufficient. In securities transactions, the Company is subject to credit risk during the period between the execution of a trade and the settlement by the customer. The following tables present the remaining contractual maturities of repurchase agreement and securities lending transactions accounted for as secured borrowings (in thousands). The Company had no repurchase-to-maturity transactions outstanding at both September 30, 2021 and December 31, 2020. Remaining Contractual Maturities Overnight and Greater Than September 30, 2021 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: U.S. Treasury and agency securities $ — $ 10,000 $ — $ — $ 10,000 Asset-backed securities 41,551 21,781 81,905 — 145,237 Securities lending transactions: Corporate securities 113 — — — 113 Equity securities 1,350,609 — — — 1,350,609 Total $ 1,392,273 $ 31,781 $ 81,905 $ — $ 1,505,959 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,505,959 Amount related to agreements not included in offsetting disclosure above $ — Remaining Contractual Maturities Overnight and Greater Than December 31, 2020 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: Asset-backed securities $ 110,831 $ — $ 127,025 $ — $ 237,856 Securities lending transactions: Corporate securities 113 — — — 113 Equity securities 1,244,953 — — — 1,244,953 Total $ 1,355,897 $ — $ 127,025 $ — $ 1,482,922 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,482,922 Amount related to agreements not included in offsetting disclosure above $ —

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 Broker-dealer and clearing organization receivables and payables consisted of the following (in thousands). September 30, December 31, 2021 2020 Receivables: Securities borrowed $ 1,377,261 $ 1,338,855 Securities failed to deliver 38,447 58,244 Other 3,944 7,628 $ 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 $ 1,496,923 $ 1,368,373

Segment and Related Information

Segment and Related Information	9 Months Ended
Segment and Related Information	Sep. 30, 2021
Segment and Related Information
Segment and Related Information	22. Segment and Related Information 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 segments’ 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 Company’s President and Chief Executive Officer, to evaluate segment performance, develop strategy and allocate resources. 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. 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. Corporate includes certain activities not allocated to specific business segments. These activities include holding company financing and investing activities, merchant banking investment opportunities and management and administrative services to support the overall operations of the Company. Balance sheet amounts not discussed previously and the elimination of intercompany transactions are included in “All Other and Eliminations.” The following tables present certain information about continuing operations reportable business segment revenues, operating results, goodwill and assets (in thousands). Mortgage All Other and Continuing Three Months Ended September 30, 2021 Banking Broker-Dealer Origination Corporate Eliminations Operations Net interest income (expense) $ 99,978 $ 10,427 $ (3,503) $ (4,341) $ 2,529 $ 105,090 Provision for (reversal of) credit losses (5,775) (44) — — — (5,819) Noninterest income 11,727 116,143 242,270 757 (2,952) 367,945 Noninterest expense 54,567 109,193 176,587 15,355 (528) 355,174 Income (loss) from continuing operations before taxes $ 62,913 $ 17,421 $ 62,180 $ (18,939) $ 105 $ 123,680 Mortgage All Other and Continuing Nine Months Ended September 30, 2021 Banking Broker-Dealer Origination Corporate Eliminations Operations Net interest income (expense) $ 309,330 $ 31,623 $ (16,554) $ (13,720) $ 8,009 $ 318,688 Provision for (reversal of) credit losses (39,725) 77 — — — (39,648) Noninterest income 33,293 298,229 794,679 8,140 (8,912) 1,125,429 Noninterest expense 167,869 287,831 573,884 37,015 (1,395) 1,065,204 Income (loss) from continuing operations before taxes $ 214,479 $ 41,944 $ 204,241 $ (42,595) $ 492 $ 418,561 Mortgage All Other and Continuing Three Months Ended September 30, 2020 Banking Broker-Dealer Origination Corporate Eliminations Operations Net interest income (expense) $ 96,416 $ 8,168 $ (2,349) $ (4,594) $ 4,259 $ 101,900 Provision for (reversal of) credit losses — (602) — — — (602) Noninterest income 9,819 141,022 355,471 477 (4,078) 502,711 Noninterest expense 55,980 114,393 207,176 21,999 (203) 399,345 Income (loss) from continuing operations before taxes $ 50,255 $ 35,399 $ 145,946 $ (26,116) $ 384 $ 205,868 Mortgage All Other and Continuing Nine Months Ended September 30, 2020 Banking Broker-Dealer Origination Corporate Eliminations Operations Net interest income (expense) $ 284,440 $ 31,005 $ (3,647) $ (9,482) $ 14,478 $ 316,794 Provision for (reversal of) credit losses 99,875 98 — — — 99,973 Noninterest income 29,246 350,192 874,926 3,315 (15,130) 1,242,549 Noninterest expense 169,569 299,743 547,222 35,741 (820) 1,051,455 Income (loss) from continuing operations before taxes $ 44,242 $ 81,356 $ 324,057 $ (41,908) $ 168 $ 407,915 Mortgage All Other and Continuing Banking Broker-Dealer Origination Corporate Eliminations Operations September 30, 2021 Goodwill $ 247,368 $ 7,008 $ 13,071 $ — $ — $ 267,447 Total assets $ 14,254,083 $ 3,426,534 $ 2,537,342 $ 2,926,781 $ (5,155,089) $ 17,989,651 December 31, 2020 Goodwill $ 247,368 $ 7,008 $ 13,071 $ — $ — $ 267,447 Total assets $ 13,338,930 $ 3,196,346 $ 3,285,005 $ 2,823,374 $ (5,699,391) $ 16,944,264

Earnings per Common Share

Earnings per Common Share	9 Months Ended
Earnings per Common Share	Sep. 30, 2021
Earnings per Common Share
Earnings per Common Share	23. Earnings per Common Share The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 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 Basic earnings per common share: Income from continuing operations $ 1.16 $ 1.69 $ 3.84 $ 3.29 Income from discontinued operations — 0.01 — 0.38 $ 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 433 — 457 — Weighted average shares outstanding - diluted 80,542 90,200 81,763 90,291 Diluted earnings per common share: Income from continuing operations $ 1.15 $ 1.69 $ 3.82 $ 3.29 Income from discontinued operations — 0.01 — 0.38 $ 1.15 $ 1.70 $ 3.82 $ 3.67

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 Hilltop Holdings Inc. (“Hilltop” and, collectively with its subsidiaries, the “Company”) is a financial holding company registered under the Bank Holding Company Act of 1956. The Company’s primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank (the “Bank”). In addition, the Company provides an array of financial products and services through its broker-dealer and mortgage origination subsidiaries. On June 30, 2020, Hilltop completed the sale of all of the outstanding capital stock of National Lloyds Corporation (“NLC”), which comprised the operations of the former insurance segment, for cash proceeds of $154.1 million, and was subject to post-closing adjustments. Accordingly, NLC’s 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. The Company, headquartered in Dallas, Texas, provides its products and services through two primary business units within continuing operations, PlainsCapital Corporation (“PCC”) and Hilltop Securities Holdings LLC (“Securities Holdings”). 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 Company’s notes to the consolidated financial statements present information limited to continuing operations. As a result of the spread of the novel coronavirus (“COVID-19”) 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 Company’s 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 Company’s business, financial condition, results of operations and cash flows.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), and in conformity with the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). Results for interim periods are not necessarily indicative of results to be expected for a full year or any future period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates regarding the allowance for 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. 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 (“PrimeLending”). PrimeLending owns a 100% membership interest in PrimeLending Ventures Management, LLC (“Ventures Management”), which holds an ownership interest in and is the managing member of certain affiliated business arrangements (“ABAs”). PCC also owned 100% of the outstanding common securities of PCC Statutory Trusts I, II, III and IV (the “Trusts”), which were not included in the consolidated financial statements under the requirements of the Variable Interest Entities (“VIE”) Subsections of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) because the primary beneficiaries of the Trusts are not within the consolidated group. 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. Hilltop has a 100% membership interest in Securities Holdings, which operates through its wholly owned subsidiaries, Hilltop Securities Inc. (“Hilltop Securities”), Momentum Independent Network Inc. (“Momentum Independent Network” and collectively with Hilltop Securities, the “Hilltop Broker-Dealers”) and Hilltop Securities Asset Management, LLC. Hilltop Securities is a broker-dealer registered with the SEC and Financial Industry Regulatory Authority (“FINRA”) and a member of the New York Stock Exchange (“NYSE”), 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. In addition, Hilltop owns 100% of the membership interest in each of HTH Hillcrest Project LLC (“HTH Project LLC”) and Hilltop % of the membership interest in HTH Diamond Hillcrest Land LLC (“Hillcrest Land LLC”) which is consolidated under the aforementioned VIE Subsections of the ASC. These entities are related to the Hilltop Plaza investment discussed in detail in Note 20 to the consolidated financial statements included in the Company’s 2020 Form 10-K and are collectively referred to as the “Hilltop Plaza Entities.” The consolidated financial statements include the accounts of the above-named entities. Intercompany transactions and balances have been eliminated. Noncontrolling interests have been recorded for minority ownership in entities that are not wholly owned and are presented in compliance with the provisions of Noncontrolling Interest in Subsidiary Subsections of the ASC. Certain reclassifications have been made to the prior period consolidated financial statements to conform with the current period presentation. In preparing these consolidated financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all stockholders and other financial statement users, or filed with the SEC. Significant accounting policies are detailed in Note 1 to the consolidated financial statements included in the Company’s 2020 Form 10-K.

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
Discontinued Operations (Tables)	Sep. 30, 2021
Discontinued Operations
Schedule of discontinued operations	Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Interest income: Securities: Taxable $ — $ 1,752 Other — 71 Total interest income — 1,823 Interest expense: Notes payable — 775 Noninterest income: Net insurance premiums earned — 65,077 Other — 3,051 Total noninterest income — 68,128 Noninterest expense: 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 Income tax expense — 518 Income from discontinued operations, net of income taxes $ 736 $ 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). Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Written Earned Written Earned Premiums from direct business $ — $ — $ 63,811 $ 61,384 Reinsurance assumed — — 6,396 6,452 Reinsurance ceded — — (2,759) (2,759) Net premiums $ — $ — $ 67,448 $ 65,077
Schedule of effects of reinsurance on incurred losses	The effects of reinsurance on incurred losses and LAE are included within discontinued operations and are as follows (in thousands). Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Losses and LAE incurred $ — $ 38,225 Reinsurance recoverables — 194 Net loss and LAE incurred $ — $ 38,419

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	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). Level 1 Level 2 Level 3 Total September 30, 2021 Inputs Inputs Inputs Fair Value Trading securities $ 8,301 $ 601,512 $ — $ 609,813 Available for sale securities — 1,994,183 — 1,994,183 Equity securities 221 — — 221 Loans held for sale — 1,828,626 72,519 1,901,145 Derivative assets — 89,440 — 89,440 MSR asset — — 110,931 110,931 Securities sold, not yet purchased 79,725 33,339 — 113,064 Derivative liabilities — 27,349 — 27,349 Level 1 Level 2 Level 3 Total December 31, 2020 Inputs Inputs Inputs Fair Value Trading securities $ 45,390 $ 648,865 $ — $ 694,255 Available for sale securities — 1,462,205 — 1,462,205 Equity securities 140 — — 140 Loans held for sale — 2,449,588 71,816 2,521,404 Derivative assets — 126,898 — 126,898 MSR asset — — 143,742 143,742 Securities sold, not yet purchased 54,494 25,295 — 79,789 Derivative liabilities — 74,598 — 74,598
Rollforward for financial instruments measured at fair value using Level 3 inputs	The following tables include a rollforward for those financial instruments measured at fair value using Level 3 inputs (in thousands). Total Gains or Losses (Realized or Unrealized) Balance, Transfers Included in Other Beginning of Purchases/ Sales/ to (from) Included in Comprehensive Balance, Period Additions Reductions Level 3 Net Income Income (Loss) End of Period Three months ended September 30, 2021 Loans held for sale $ 71,433 $ 18,817 $ (22,207) $ (2,291) $ 6,767 $ — $ 72,519 MSR asset 124,497 20,252 (31,366) — (2,452) — 110,931 Total $ 195,930 $ 39,069 $ (53,573) $ (2,291) $ 4,315 $ — $ 183,450 Nine months ended September 30, 2021 Loans held for sale $ 71,816 $ 50,273 $ (51,718) $ (4,099) $ 6,247 $ — $ 72,519 MSR asset 143,742 70,368 (116,000) — 12,821 — 110,931 Total $ 215,558 $ 120,641 $ (167,718) $ (4,099) $ 19,068 $ — $ 183,450 Three months ended September 30, 2020 Loans held for sale $ 91,936 $ 5,338 $ (20,182) $ 1,097 $ (6,003) $ — $ 72,186 MSR asset 81,264 59,351 — — (12,903) — 127,712 Total $ 173,200 $ 64,689 $ (20,182) $ 1,097 $ (18,906) $ — $ 199,898 Nine months ended September 30, 2020 Loans held for sale $ 67,195 $ 53,961 $ (51,125) $ 10,064 $ (7,909) $ — $ 72,186 MSR asset 55,504 123,266 (18,650) — (32,408) — 127,712 Total $ 122,699 $ 177,227 $ (69,775) $ 10,064 $ (40,317) $ — $ 199,898
Schedule of significant unobservable inputs used in the fair value measurements	Range (Weighted-Average) Financial instrument Valuation Technique Unobservable Inputs September 30, 2021 December 31, 2020 Loans Market comparable Projected price 94 - 96 % ( 96 %) 91 - 94 % ( 94 %) MSR asset Discounted cash flows Constant prepayment rate 10.02 % 12.15 % Discount rate 14.31 % 14.60 %
Schedule of changes in fair value for instruments reported at fair value under the Fair Value Option	The following table presents those changes in fair value of instruments recognized in the consolidated statements of operations that are accounted for under the Fair Value Option (in thousands). Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ (32,694) $ — $ (32,694) $ (9,167) $ — $ (9,167) MSR asset (2,452) — (2,452) (12,903) — (12,903) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Other Total Other Total Net Noninterest Changes in Net Noninterest Changes in Gains (Losses) Income Fair Value Gains (Losses) Income Fair Value Loans held for sale $ (55,211) $ — $ (55,211) $ 49,311 $ — $ 49,311 MSR asset 12,821 — 12,821 (32,408) — (32,408)
Schedule of carrying values and estimated fair values of financial instruments	The following tables present the carrying values and estimated fair values of financial instruments not measured at fair value on either a recurring or non-recurring basis (in thousands). Estimated Fair Value Carrying Level 1 Level 2 Level 3 September 30, 2021 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 2,463,517 $ 2,463,517 $ — $ — $ 2,463,517 Assets segregated for regulatory purposes 269,506 269,506 — — 269,506 Securities purchased under agreements to resell 155,908 — 155,908 — 155,908 Held to maturity securities 277,419 — 288,112 — 288,112 Loans held for sale 207,733 — 207,733 — 207,733 Loans held for investment, net 7,443,414 — 645,901 7,084,518 7,730,419 Broker-dealer and clearing organization receivables 1,419,652 — 1,419,652 — 1,419,652 Other assets 71,464 — 69,938 1,526 71,464 Financial liabilities: Deposits 12,132,162 — 12,137,502 — 12,137,502 Broker-dealer and clearing organization payables 1,496,923 — 1,496,923 — 1,496,923 Short-term borrowings 747,040 — 747,040 — 747,040 Debt 395,804 — 395,804 — 395,804 Other liabilities 10,099 — 10,099 — 10,099 Estimated Fair Value Carrying Level 1 Level 2 Level 3 December 31, 2020 Amount Inputs Inputs Inputs Total Financial assets: Cash and cash equivalents $ 1,062,946 $ 1,062,946 $ — $ — $ 1,062,946 Assets segregated for regulatory purposes 290,357 290,357 — — 290,357 Securities purchased under agreements to resell 80,319 — 80,319 — 80,319 Held to maturity securities 311,944 — 326,671 — 326,671 Loans held for sale 266,982 — 266,982 — 266,982 Loans held for investment, net 7,544,097 — 437,007 7,351,411 7,788,418 Broker-dealer and clearing organization receivables 1,404,727 — 1,404,727 — 1,404,727 Other assets 74,881 — 73,111 1,770 74,881 Financial liabilities: Deposits 11,242,319 — 11,256,629 — 11,256,629 Broker-dealer and clearing organization payables 1,368,373 — 1,368,373 — 1,368,373 Short-term borrowings 695,798 — 695,798 — 695,798 Debt 448,999 — 448,999 — 448,999 Other liabilities 6,133 — 6,133 — 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). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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

Securities (Tables)

Securities (Tables)	9 Months Ended
Securities (Tables)	Sep. 30, 2021
Securities
Summary of trading securities	The fair value of trading securities is summarized as follows (in thousands). September 30, December 31, 2021 2020 U.S. Treasury securities $ 3,401 $ 40,491 U.S. government agencies: Bonds 14,883 40 Residential mortgage-backed securities 196,241 336,081 Commercial mortgage-backed securities — 876 Collateralized mortgage obligations 54,065 69,172 Corporate debt securities 72,029 62,481 States and political subdivisions 264,044 171,573 Private-label securitized product 177 8,571 Other 4,973 4,970 Totals $ 609,813 $ 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). Available for Sale Amortized Unrealized Unrealized September 30, 2021 Cost Gains Losses Fair Value U.S. Treasury securities $ 4,972 $ — $ (16) $ 4,956 U.S. government agencies: Bonds 45,181 1,010 (72) 46,119 Residential mortgage-backed securities 901,720 10,784 (8,247) 904,257 Commercial mortgage-backed securities 205,290 476 (8,129) 197,637 Collateralized mortgage obligations 794,258 3,992 (4,241) 794,009 States and political subdivisions 45,574 1,887 (256) 47,205 Totals $ 1,996,995 $ 18,149 $ (20,961) $ 1,994,183 Available for Sale Amortized Unrealized Unrealized December 31, 2020 Cost Gains Losses Fair Value U.S. government agencies: Bonds $ 82,036 $ 1,095 $ (325) $ 82,806 Residential mortgage-backed securities 624,863 17,194 (446) 641,611 Commercial mortgage-backed securities 124,929 768 (1,159) 124,538 Collateralized mortgage obligations 559,362 6,916 (370) 565,908 States and political subdivisions 44,729 2,613 — 47,342 Totals $ 1,435,919 $ 28,586 $ (2,300) $ 1,462,205
Summary of amortized cost and fair value of held to maturity securities	Held to Maturity Amortized Unrealized Unrealized September 30, 2021 Cost Gains Losses Fair Value U.S. government agencies: Residential mortgage-backed securities $ 10,755 $ 518 $ — $ 11,273 Commercial mortgage-backed securities 150,060 6,727 — 156,787 Collateralized mortgage obligations 48,210 1,070 — 49,280 States and political subdivisions 68,394 2,402 (24) 70,772 Totals $ 277,419 $ 10,717 $ (24) $ 288,112 Held to Maturity Amortized Unrealized Unrealized December 31, 2020 Cost Gains Losses Fair Value U.S. government agencies: Residential mortgage-backed securities $ 13,547 $ 708 $ — $ 14,255 Commercial mortgage-backed securities 152,820 9,205 — 162,025 Collateralized mortgage obligations 74,932 2,036 — 76,968 States and political subdivisions 70,645 2,778 — 73,423 Totals $ 311,944 $ 14,727 $ — $ 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). September 30, 2021 December 31, 2020 Number of Unrealized Number of Unrealized Securities Fair Value Losses Securities Fair Value Losses Available for Sale U.S. treasury securities: Unrealized loss for less than twelve months 1 $ 4,956 $ 16 — $ — $ — Unrealized loss for twelve months or longer — — — — — — 1 4,956 16 — — — U.S. government agencies: Bonds: Unrealized loss for less than twelve months 1 4,985 15 8 60,298 325 Unrealized loss for twelve months or longer 1 6,389 57 — — — 2 11,374 72 8 60,298 325 Residential mortgage-backed securities: Unrealized loss for less than twelve months 58 608,502 7,983 15 86,287 429 Unrealized loss for twelve months or longer 5 27,357 264 — — — 63 635,859 8,247 15 86,287 429 Commercial mortgage-backed securities: Unrealized loss for less than twelve months 11 132,020 4,765 10 105,386 1,176 Unrealized loss for twelve months or longer 7 59,021 3,364 — — — 18 191,041 8,129 10 105,386 1,176 Collateralized mortgage obligations: Unrealized loss for less than twelve months 39 363,054 3,943 10 101,990 324 Unrealized loss for twelve months or longer 7 46,686 298 5 13,611 46 46 409,740 4,241 15 115,601 370 States and political subdivisions: Unrealized loss for less than twelve months 25 8,993 256 — — — Unrealized loss for twelve months or longer — — — — — — 25 8,993 256 — — — Total available for sale: Unrealized loss for less than twelve months 135 1,122,510 16,978 43 353,961 2,254 Unrealized loss for twelve months or longer 20 139,453 3,983 5 13,611 46 155 $ 1,261,963 $ 20,961 48 $ 367,572 $ 2,300
Schedule of information regarding held to maturity securities that were in an unrealized loss position	September 30, 2021 December 31, 2020 Number of Unrealized Number of Unrealized Securities Fair Value Losses Securities Fair Value Losses Held to Maturity States and political subdivisions: Unrealized loss for less than twelve months 6 $ 1,831 $ 21 2 $ 578 $ — Unrealized loss for twelve months or longer 1 264 3 — — — 7 2,095 24 2 578 — Total held to maturity: Unrealized loss for less than twelve months 6 1,831 21 2 578 — Unrealized loss for twelve months or longer 1 264 3 — — — 7 $ 2,095 $ 24 2 $ 578 $ —
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). Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value Due in one year or less $ 2,025 $ 2,053 $ 667 $ 682 Due after one year through five years 36,055 37,118 1,179 1,199 Due after five years through ten years 15,487 16,096 14,094 14,643 Due after ten years 42,160 43,013 52,454 54,248 95,727 98,280 68,394 70,772 Residential mortgage-backed securities 901,720 904,257 10,755 11,273 Collateralized mortgage obligations 794,258 794,009 48,210 49,280 Commercial mortgage-backed securities 205,290 197,637 150,060 156,787 $ 1,996,995 $ 1,994,183 $ 277,419 $ 288,112

Loans Held for Investment (Tabl

Loans Held for Investment (Tables)	9 Months Ended
Loans Held for Investment (Tables)	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). September 30, December 31, 2021 2020 Commercial real estate $ 3,032,141 $ 3,133,903 Commercial and industrial (1) 1,950,797 2,627,774 Construction and land development 789,693 828,852 1-4 family residential 1,104,847 629,938 Consumer 29,547 35,667 Broker-dealer (2) 645,901 437,007 7,552,926 7,693,141 Allowance for credit losses (109,512) (149,044) Total loans held for investment, net of allowance $ 7,443,414 $ 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). Non-accrual Loans September 30, 2021 December 31, 2020 Interest Income Recognized With With No With With No Three Months Ended September 30, Nine Months Ended September 30, Allowance Allowance Total Allowance Allowance Total 2021 2020 2021 2020 Commercial real estate: Non-owner occupied $ 417 $ 900 $ 1,317 $ 1,213 $ 445 $ 1,658 $ 76 $ 99 $ 204 $ 88 Owner occupied 3,071 1,317 4,388 3,473 6,002 9,475 345 156 574 241 Commercial and industrial 21,291 8,517 29,808 10,821 23,228 34,049 179 312 653 714 Construction and land development 2 364 366 102 405 507 13 36 48 89 1-4 family residential 1,432 18,476 19,908 4,726 16,651 21,377 796 134 2,837 1,299 Consumer 24 — 24 28 — 28 1 2 (120) (1) Broker-dealer — — — — — — — — — — $ 26,237 $ 29,574 $ 55,811 $ 20,363 $ 46,731 $ 67,094 $ 1,410 $ 739 $ 4,196 $ 2,430
Schedule of analysis of the aging of the entity's loan portfolio	An analysis of the aging of the Company’s loan portfolio is shown in the following tables (in thousands). Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Past Current Total Past Due September 30, 2021 30-59 Days 60-89 Days 90 Days or More Due Loans Loans Loans 90 Days or More Commercial real estate: Non-owner occupied $ 1,621 $ — $ 199 $ 1,820 $ 1,722,798 $ 1,724,618 $ — Owner occupied 149 — 2,274 2,423 1,305,100 1,307,523 — Commercial and industrial 603 632 13,936 15,171 1,935,626 1,950,797 1 Construction and land development 10 77 — 87 789,606 789,693 — 1-4 family residential 4,009 1,676 7,021 12,706 1,092,141 1,104,847 88 Consumer 154 3 23 180 29,367 29,547 — Broker-dealer — — — — 645,901 645,901 — $ 6,546 $ 2,388 $ 23,453 $ 32,387 $ 7,520,539 $ 7,552,926 $ 89 Accruing Loans Loans Past Due Loans Past Due Loans Past Due Total Past Current Total Past Due December 31, 2020 30-59 Days 60-89 Days 90 Days or More Due Loans Loans Loans 90 Days or More Commercial real estate: Non-owner occupied $ 1,919 $ — $ 199 $ 2,118 $ 1,786,193 $ 1,788,311 $ — Owner occupied 195 522 8,328 9,045 1,336,547 1,345,592 — Commercial and industrial 3,114 407 7,318 10,839 2,616,935 2,627,774 6 Construction and land development 19 — — 19 828,833 828,852 — 1-4 family residential 8,110 3,040 12,420 23,570 606,368 629,938 — Consumer 172 123 26 321 35,346 35,667 — Broker-dealer — — — — 437,007 437,007 — $ 13,529 $ 4,092 $ 28,291 $ 45,912 $ 7,647,229 $ 7,693,141 $ 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). Amortized Cost Basis by Origination Year 2016 and September 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Commercial real estate: non-owner occupied Internal Grade 1-3 (Pass low risk) $ 17,984 $ 14,856 $ 24,145 $ 9,102 $ 1,379 $ 19,704 $ (4) $ 87,166 Internal Grade 4-7 (Pass normal risk) 235,408 207,049 113,457 50,614 42,473 68,139 33,405 750,545 Internal Grade 8-11 (Pass high risk and watch) 92,225 226,326 128,586 96,780 56,898 142,747 1,219 744,781 Internal Grade 12 (Special mention) — — 3,167 1,210 — 3,423 — 7,800 Internal Grade 13 (Substandard accrual) 24,370 8,995 16,142 16,866 17,809 48,727 100 133,009 Internal Grade 14 (Substandard non-accrual) 417 — — — — 900 — 1,317 Commercial real estate: owner occupied Internal Grade 1-3 (Pass low risk) $ 116,722 $ 64,383 $ 17,413 $ 29,476 $ 32,386 $ 37,852 $ 4 $ 298,236 Internal Grade 4-7 (Pass normal risk) 149,531 123,342 120,207 89,486 27,442 83,316 15,191 608,515 Internal Grade 8-11 (Pass high risk and watch) 49,084 107,022 44,373 83,934 20,594 34,431 7,888 347,326 Internal Grade 12 (Special mention) — — — — — — — — Internal Grade 13 (Substandard accrual) 576 14,642 5,331 7,691 6,828 13,990 — 49,058 Internal Grade 14 (Substandard non-accrual) 1,602 — (3) 350 2,271 168 — 4,388 Commercial and industrial Internal Grade 1-3 (Pass low risk) $ 20,215 $ 32,018 $ 26,301 $ 7,741 $ 8,963 $ 2,655 $ 58,993 $ 156,886 Internal Grade 4-7 (Pass normal risk) 87,493 100,455 31,496 25,226 15,217 16,710 275,095 551,692 Internal Grade 8-11 (Pass high risk and watch) 84,927 87,955 39,591 15,075 7,662 7,076 292,171 534,457 Internal Grade 12 (Special mention) — 23 — — — — 2,106 2,129 Internal Grade 13 (Substandard accrual) 2,250 10,839 1,471 7,280 4,212 3,875 6,699 36,626 Internal Grade 14 (Substandard non-accrual) 6,619 17,977 511 1,772 225 87 2,617 29,808 Construction and land development Internal Grade 1-3 (Pass low risk) $ 15,898 $ 27,992 $ 5,166 $ 3,746 $ 241 $ 4,078 $ 1,450 $ 58,571 Internal Grade 4-7 (Pass normal risk) 212,531 170,416 39,782 11,603 1,982 3,310 25,021 464,645 Internal Grade 8-11 (Pass high risk and watch) 91,197 75,871 48,342 1,125 469 1,945 22,608 241,557 Internal Grade 12 (Special mention) — — — — — — — — Internal Grade 13 (Substandard accrual) — — 28 — 5,347 — — 5,375 Internal Grade 14 (Substandard non-accrual) 381 — — — — (15) — 366 Construction and land development - individuals FICO less than 620 $ — $ — $ — $ — $ — $ — $ — $ — FICO between 620 and 720 944 287 — 1,226 — — — 2,457 FICO greater than 720 10,396 5,744 — — — — — 16,140 Substandard non-accrual — — — — — — — — Other (1) 582 — — — — — — 582 1-4 family residential FICO less than 620 $ 472 $ 1,556 $ 722 $ 3,632 $ 53 $ 26,855 $ 255 $ 33,545 FICO between 620 and 720 14,627 12,452 8,093 7,748 7,196 35,937 911 86,964 FICO greater than 720 561,557 140,097 60,302 34,483 19,508 59,801 3,757 879,505 Substandard non-accrual — 14 1,063 273 122 18,436 — 19,908 Other (1) 58,137 9,604 8,406 4,821 790 2,300 867 84,925 Consumer FICO less than 620 $ 967 $ 577 $ 437 $ 55 $ 74 $ 50 $ 346 $ 2,506 FICO between 620 and 720 3,478 1,811 976 188 444 78 1,887 8,862 FICO greater than 720 4,066 3,088 979 468 58 18 3,385 12,062 Substandard non-accrual — — — — 23 1 — 24 Other (1) 3,891 1,349 416 41 14 27 355 6,093 Total loans with credit quality measures $ 1,868,547 $ 1,466,740 $ 746,900 $ 512,012 $ 280,680 $ 636,621 $ 756,326 $ 6,267,826 Commercial and industrial (mortgage warehouse lending) $ 505,976 Commercial and industrial (Paycheck Protection Program loans) $ 133,223 Broker-Dealer (margin loans and correspondent receivables) $ 645,901 Total loans held for investment $ 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
Allowance for Credit Losses (Tables)	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). Balance, Transition Provision for Recoveries on Balance, Beginning of Adjustment (Reversal of) Loans Charged Off End of Three Months Ended September 30, 2021 Period CECL Credit Losses Charged Off Loans Period Commercial real estate $ 77,633 $ — $ (8,993) $ (124) $ 19 $ 68,535 Commercial and industrial 27,866 — 2,398 (317) 598 30,545 Construction and land development 5,185 — (85) — — 5,100 1-4 family residential 3,659 — 946 (87) 20 4,538 Consumer 592 — (41) (73) 26 504 Broker-dealer 334 — (44) — — 290 Total $ 115,269 $ — $ (5,819) $ (601) $ 663 $ 109,512 Balance, Transition Provision for Recoveries on Balance, Beginning of Adjustment (Reversal of) Loans Charged Off End of Nine Months Ended September 30, 2021 Period CECL Credit Losses Charged Off Loans Period Commercial real estate $ 109,629 $ — $ (41,037) $ (310) $ 253 $ 68,535 Commercial and industrial 27,703 — 2,848 (1,738) 1,732 30,545 Construction and land development 6,677 — (1,577) — — 5,100 1-4 family residential 3,946 — 358 (248) 482 4,538 Consumer 876 — (317) (226) 171 504 Broker-dealer 213 — 77 — — 290 Total $ 149,044 $ — $ (39,648) $ (2,522) $ 2,638 $ 109,512 Balance, Transition Provision for Recoveries on Balance, Beginning of Adjustment (Reversal of) Loans Charged Off End of Three Months Ended September 30, 2020 Period CECL Credit Losses Charged Off Loans Period Commercial real estate $ 106,551 $ — $ (2,527) $ (29) $ 571 $ 104,566 Commercial and industrial 31,863 — 7,274 (1,341) 382 38,178 Construction and land development 8,393 — (2,123) — — 6,270 1-4 family residential 7,399 — (2,213) (144) 10 5,052 Consumer 1,429 — (411) (100) 84 1,002 Broker-dealer 748 — (602) — — 146 Total $ 156,383 $ — $ (602) $ (1,614) $ 1,047 $ 155,214 Balance, Transition Provision for Recoveries on Balance, Beginning of Adjustment (Reversal of) Loans Charged Off End of Nine Months Ended September 30, 2020 Period CECL Credit Losses Charged Off Loans Period Commercial real estate $ 31,595 $ 8,073 $ 68,823 $ (4,517) $ 592 $ 104,566 Commercial and industrial 17,964 3,193 30,896 (15,325) 1,450 38,178 Construction and land development 4,878 577 815 (2) 2 6,270 1-4 family residential 6,386 (29) (813) (517) 25 5,052 Consumer 265 748 154 (473) 308 1,002 Broker-dealer 48 — 98 — — 146 Total $ 61,136 $ 12,562 $ 99,973 $ (20,834) $ 2,377 $ 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). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	9 Months Ended
Mortgage Servicing Rights (Tables)	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 Company’s MSR asset and other information related to the serviced portfolio (dollars in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance, beginning of period $ 124,497 $ 81,264 $ 143,742 $ 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 (1) 3,525 (10,145) 32,199 (26,023) Due to customer payoffs (5,977) (2,758) (19,378) (6,385) Balance, end of period $ 110,931 $ 127,712 $ 110,931 $ 127,712 September 30, December 31, 2021 2020 Mortgage loans serviced for others (2) $ 8,672,818 $ 14,643,623 MSR asset as a percentage of serviced mortgage loans 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	September 30, December 31, 2021 2020 Weighted average constant prepayment rate 10.02 % 12.15 % Weighted average discount rate 14.31 % 14.60 % Weighted average life (in years) 7.1 6.3
Schedule of sensitivity analysis of fair value of the Company's MSR to certain key assumptions	A sensitivity analysis of the fair value of the Company’s MSR asset to certain key assumptions is presented in the following table (in thousands). September 30, December 31, 2021 2020 Constant prepayment rate: Impact of 10% adverse change $ (2,467) $ (5,639) Impact of 20% adverse change (5,043) (11,164) Discount rate: Impact of 10% adverse change (3,885) (6,435) Impact of 20% adverse change (7,399) (12,287)

Deposits (Tables)

Deposits (Tables)	9 Months Ended
Deposits (Tables)	Sep. 30, 2021
Deposits
Summary of deposits	Deposits are summarized as follows (in thousands). September 30, December 31, 2021 2020 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 $ 12,132,162 $ 11,242,319

Short-term Borrowings (Tables)

Short-term Borrowings (Tables)	9 Months Ended
Short-term Borrowings (Tables)	Sep. 30, 2021
Short-term borrowings
Schedule of short-term borrowings	Short-term borrowings are summarized as follows (in thousands). September 30, December 31, 2021 2020 Federal funds purchased $ 159,825 $ 180,325 Securities sold under agreements to repurchase 155,294 237,856 Federal Home Loan Bank — — Short-term bank loans 64,000 — Commercial paper 367,921 277,617 $ 747,040 $ 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). Nine Months Ended September 30, 2021 2020 Average balance during the period $ 328,853 $ 547,925 Average interest rate during the period 0.37 % 1.03 % September 30, December 31, 2021 2020 Average interest rate at end of period 0.29 % 0.25 % Securities underlying the agreements at end of period: Carrying value $ 156,402 $ 237,913 Estimated fair value $ 172,111 $ 262,554
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). Nine Months Ended September 30, 2021 2020 Average balance during the period $ — $ 51,606 Average interest rate during the period — % 1.62 %

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
Notes Payable (Tables)	Sep. 30, 2021
Notes Payable
Schedule of notes payable	Notes payable consisted of the following (in thousands). September 30, December 31, 2021 2020 Senior Notes due April 2025, net of discount of $931 and $1,063, respectively $ 149,069 $ 148,937 Subordinated Notes due May 2030, net of discount of $727 and $793, respectively 49,273 49,207 Subordinated Notes due May 2035, net of discount of $2,264 and $2,392, respectively 147,736 147,608 Ventures Management lines of credit 49,726 36,235 $ 395,804 $ 381,987

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2021
Leases
Schedule of supplemental balance sheet information	Supplemental balance sheet information related to finance leases is as follows (in thousands). September 30, December 31, 2021 2020 Finance leases: Premises and equipment $ 7,780 $ 7,780 Accumulated depreciation (5,210) (4,768) Premises and equipment, net $ 2,570 $ 3,012
Schedule of components of lease costs	The components of lease costs, including short-term lease costs, are as follows (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 Finance lease cost: Amortization of ROU assets $ 147 $ 147 $ 442 $ 442 Interest on lease liabilities 129 139 396 424 Total finance lease cost $ 276 $ 286 $ 838 $ 866
Schedule of supplemental cash flow information	Supplemental cash flow information related to leases is as follows (in thousands). Nine Months Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: 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 lease obligations: Operating leases $ 37,086 $ 8,773 Finance leases — —
Schedule of lease terms and discount rates	Information regarding the lease terms and discount rates of the Company’s leases is as follows. September 30, 2021 December 31, 2020 Weighted Average Weighted Average Remaining Lease Weighted Average Remaining Lease Weighted Average Lease Classification Term (Years) Discount Rate Term (Years) Discount Rate Operating 6.0 4.01 % 5.5 4.67 % Finance 5.0 4.83 % 5.6 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). Operating Leases Finance Leases 2021 $ 444 $ 307 2022 33,994 1,241 2023 29,196 1,280 2024 21,068 1,163 2025 15,669 886 Thereafter 51,163 1,411 Total minimum lease payments 151,534 6,288 Less amount representing interest (17,238) (1,938) Lease liabilities $ 134,296 $ 4,350
Schedule of future minimum lease payments under finance leases	Operating Leases Finance Leases 2021 $ 444 $ 307 2022 33,994 1,241 2023 29,196 1,280 2024 21,068 1,163 2025 15,669 886 Thereafter 51,163 1,411 Total minimum lease payments 151,534 6,288 Less amount representing interest (17,238) (1,938) Lease liabilities $ 134,296 $ 4,350

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
Commitments and Contingencies (Tables)	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). Representation and Warranty Specific Claims Activity - Origination Loan Balance Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 Indemnification Liability Reserve Activity Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 September 30, December 31, 2021 2020 Reserve for Indemnification Liability: Specific claims $ 196 $ 961 Incurred but not reported claims 25,777 20,570 Total $ 25,973 $ 21,531

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2021
Stock-Based Compensation
Schedule of nonvested RSU activity	The following table summarizes information about nonvested restricted stock unit (“RSU”) activity for the nine months ended September 30, 2021 (shares in thousands). RSUs Weighted Average Grant Date Outstanding Fair Value Balance, December 31, 2020 1,833 $ 21.48 Granted 532 $ 32.93 Vested/Released (473) $ 27.65 Forfeited (17) $ 22.51 Balance, September 30, 2021 1,875 $ 23.17

Regulatory Matters (Tables)

Regulatory Matters (Tables)	9 Months Ended
Regulatory Matters (Tables)	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 PlainsCapital’s and Hilltop’s actual capital amounts and ratios in accordance with Basel III compared to the regulatory minimum capital requirements including conservation buffer ratio in effect at the end of the period (dollars in thousands). Based on actual capital amounts and ratios shown in the following table, PlainsCapital’s ratios place it in the “well capitalized” (as defined) capital category under regulatory requirements. Actual capital amounts and ratios as of September 30, 2021 reflect PlainsCapital’s and Hilltop’s 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. Minimum Capital Requirements Including Conservation To Be Well September 30, 2021 December 31, 2020 Buffer Capitalized Amount Ratio Amount Ratio Ratio Ratio Tier 1 capital (to average assets): PlainsCapital $ 1,398,761 10.02 % $ 1,385,842 10.44 % 4.0 % 5.0 % Hilltop 2,209,309 12.64 % 2,111,580 12.64 % 4.0 % N/A Common equity Tier 1 capital PlainsCapital 1,398,761 15.40 % 1,385,842 14.40 % 7.0 % 6.5 % Hilltop 2,209,309 21.28 % 2,046,580 18.97 % 7.0 % N/A Tier 1 capital (to risk-weighted assets): PlainsCapital 1,398,761 15.40 % 1,385,842 14.40 % 8.5 % 8.0 % Hilltop 2,209,309 21.28 % 2,111,580 19.57 % 8.5 % N/A Total capital (to risk-weighted assets): PlainsCapital 1,482,471 16.32 % 1,470,364 15.27 % 10.5 % 10.0 % Hilltop 2,492,353 24.00 % 2,409,684 22.34 % 10.5 % N/A
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). Momentum Hilltop Independent Securities Network Net capital $ 228,135 $ 4,111 Less: required net capital 11,249 283 Excess net capital $ 216,886 $ 3,828 Net capital as a percentage of aggregate debit items 40.6 % Net capital in excess of 5% aggregate debit items $ 200,012

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
Derivative Financial Instruments (Tables)	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). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Increase (decrease) in fair value of derivatives during period: PrimeLending $ 780 $ 23,286 $ 555 $ 90,429 Hilltop Broker-Dealers 11,427 (3,542) (3,845) 8,466 Bank 7 118 26 (17)
Schedule of derivative positions	Derivative positions are presented in the following table (in thousands). September 30, 2021 December 31, 2020 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Derivative instruments (not designated as hedges): IRLCs $ 2,061,068 $ 40,279 $ 2,470,013 $ 76,048 Commitments to purchase MBSs 1,759,435 4,745 2,478,041 22,311 Commitments to sell MBSs 4,646,594 14,703 6,141,079 (40,621) Interest rate swaps 60,245 27 43,786 (2,196) U.S. Treasury bond futures and options (1) 215,600 — 225,400 — Eurodollar and other futures (1) 1,182,000 — — — Derivative instruments (designated as hedges): Interest rate swaps designated as cash flow hedges $ 150,000 $ (812) $ 105,000 $ (3,112) Interest rate swaps designated as fair value hedges (2) 172,751 3,149 60,618 (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
Balance Sheet Offsetting (Tables)	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). Gross Amounts Not Offset in Net Amounts the Balance Sheet Gross Amounts Gross Amounts of Assets Cash of Recognized Offset in the Presented in the Financial Collateral Net Assets Balance Sheet Balance Sheet Instruments Pledged Amount September 30, 2021 Securities borrowed: Institutional counterparties $ 1,377,261 $ — $ 1,377,261 $ (1,318,830) $ — $ 58,431 Interest rate swaps: Institutional counterparties 73 — 73 (73) — — Reverse repurchase agreements: Institutional counterparties 155,908 — 155,908 (155,908) — — Forward MBS derivatives: Institutional counterparties 20,650 (1,198) 19,452 (11,079) — 8,373 $ 1,553,892 $ (1,198) $ 1,552,694 $ (1,485,890) $ — $ 66,804 December 31, 2020 Securities borrowed: Institutional counterparties $ 1,338,855 $ — $ 1,338,855 $ (1,273,955) $ — $ 64,900 Reverse repurchase agreements: Institutional counterparties 80,319 — 80,319 (79,925) — 394 Forward MBS derivatives: Institutional counterparties 22,311 — 22,311 (22,311) — — $ 1,441,485 $ — $ 1,441,485 $ (1,376,191) $ — $ 65,294
Schedule of the liabilities subject to an enforceable master netting arrangement or repurchase agreements	Gross Amounts Not Offset in Net Amounts the Balance Sheet Gross Amounts Gross Amounts of Liabilities Cash of Recognized Offset in the Presented in the Financial Collateral Net Liabilities Balance Sheet Balance Sheet Instruments Pledged Amount September 30, 2021 Securities loaned: Institutional counterparties $ 1,350,722 $ — $ 1,350,722 $ (1,283,622) $ — $ 67,100 Interest rate swaps: Institutional counterparties 46 — 46 — — 46 Repurchase agreements: Institutional counterparties 155,237 — 155,237 (145,564) — 9,673 Forward MBS derivatives: Institutional counterparties 4 — 4 (4) — — $ 1,506,009 $ — $ 1,506,009 $ (1,429,190) $ — $ 76,819 December 31, 2020 Securities loaned: Institutional counterparties $ 1,245,066 $ — $ 1,245,066 $ (1,179,090) $ — $ 65,976 Interest rate swaps: Institutional counterparties 2,196 — 2,196 (2,123) — 73 Repurchase agreements: Institutional counterparties 237,856 — 237,856 (237,856) — — Forward MBS derivatives: Institutional counterparties 40,741 (120) 40,621 (12,670) — 27,951 $ 1,525,859 $ (120) $ 1,525,739 $ (1,431,739) $ — $ 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. Remaining Contractual Maturities Overnight and Greater Than September 30, 2021 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: U.S. Treasury and agency securities $ — $ 10,000 $ — $ — $ 10,000 Asset-backed securities 41,551 21,781 81,905 — 145,237 Securities lending transactions: Corporate securities 113 — — — 113 Equity securities 1,350,609 — — — 1,350,609 Total $ 1,392,273 $ 31,781 $ 81,905 $ — $ 1,505,959 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,505,959 Amount related to agreements not included in offsetting disclosure above $ — Remaining Contractual Maturities Overnight and Greater Than December 31, 2020 Continuous Up to 30 Days 30-90 Days 90 Days Total Repurchase agreement transactions: Asset-backed securities $ 110,831 $ — $ 127,025 $ — $ 237,856 Securities lending transactions: Corporate securities 113 — — — 113 Equity securities 1,244,953 — — — 1,244,953 Total $ 1,355,897 $ — $ 127,025 $ — $ 1,482,922 Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above $ 1,482,922 Amount related to agreements not included in offsetting disclosure above $ —

Broker-Dealer and Clearing Or_2

Broker-Dealer and Clearing Organization Receivables and Payables (Tables)	9 Months Ended
	Sep. 30, 2021
Broker-Dealer and Clearing Organization Receivables and Payables
Schedule of broker-dealer and clearing organization receivables and payables	Broker-dealer and clearing organization receivables and payables consisted of the following (in thousands). September 30, December 31, 2021 2020 Receivables: Securities borrowed $ 1,377,261 $ 1,338,855 Securities failed to deliver 38,447 58,244 Other 3,944 7,628 $ 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 $ 1,496,923 $ 1,368,373

Segment and Related Informati_2

Segment and Related Information (Tables)	9 Months Ended
Segment and Related Information (Tables)	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). Mortgage All Other and Continuing Three Months Ended September 30, 2021 Banking Broker-Dealer Origination Corporate Eliminations Operations Net interest income (expense) $ 99,978 $ 10,427 $ (3,503) $ (4,341) $ 2,529 $ 105,090 Provision for (reversal of) credit losses (5,775) (44) — — — (5,819) Noninterest income 11,727 116,143 242,270 757 (2,952) 367,945 Noninterest expense 54,567 109,193 176,587 15,355 (528) 355,174 Income (loss) from continuing operations before taxes $ 62,913 $ 17,421 $ 62,180 $ (18,939) $ 105 $ 123,680 Mortgage All Other and Continuing Nine Months Ended September 30, 2021 Banking Broker-Dealer Origination Corporate Eliminations Operations Net interest income (expense) $ 309,330 $ 31,623 $ (16,554) $ (13,720) $ 8,009 $ 318,688 Provision for (reversal of) credit losses (39,725) 77 — — — (39,648) Noninterest income 33,293 298,229 794,679 8,140 (8,912) 1,125,429 Noninterest expense 167,869 287,831 573,884 37,015 (1,395) 1,065,204 Income (loss) from continuing operations before taxes $ 214,479 $ 41,944 $ 204,241 $ (42,595) $ 492 $ 418,561 Mortgage All Other and Continuing Three Months Ended September 30, 2020 Banking Broker-Dealer Origination Corporate Eliminations Operations Net interest income (expense) $ 96,416 $ 8,168 $ (2,349) $ (4,594) $ 4,259 $ 101,900 Provision for (reversal of) credit losses — (602) — — — (602) Noninterest income 9,819 141,022 355,471 477 (4,078) 502,711 Noninterest expense 55,980 114,393 207,176 21,999 (203) 399,345 Income (loss) from continuing operations before taxes $ 50,255 $ 35,399 $ 145,946 $ (26,116) $ 384 $ 205,868 Mortgage All Other and Continuing Nine Months Ended September 30, 2020 Banking Broker-Dealer Origination Corporate Eliminations Operations Net interest income (expense) $ 284,440 $ 31,005 $ (3,647) $ (9,482) $ 14,478 $ 316,794 Provision for (reversal of) credit losses 99,875 98 — — — 99,973 Noninterest income 29,246 350,192 874,926 3,315 (15,130) 1,242,549 Noninterest expense 169,569 299,743 547,222 35,741 (820) 1,051,455 Income (loss) from continuing operations before taxes $ 44,242 $ 81,356 $ 324,057 $ (41,908) $ 168 $ 407,915 Mortgage All Other and Continuing Banking Broker-Dealer Origination Corporate Eliminations Operations September 30, 2021 Goodwill $ 247,368 $ 7,008 $ 13,071 $ — $ — $ 267,447 Total assets $ 14,254,083 $ 3,426,534 $ 2,537,342 $ 2,926,781 $ (5,155,089) $ 17,989,651 December 31, 2020 Goodwill $ 247,368 $ 7,008 $ 13,071 $ — $ — $ 267,447 Total assets $ 13,338,930 $ 3,196,346 $ 3,285,005 $ 2,823,374 $ (5,699,391) $ 16,944,264

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
Earnings per Common Share (Tables)	Sep. 30, 2021
Earnings per Common Share
Schedule of the computation of basic and diluted earnings per common share	The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 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 Basic earnings per common share: Income from continuing operations $ 1.16 $ 1.69 $ 3.84 $ 3.29 Income from discontinued operations — 0.01 — 0.38 $ 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 433 — 457 — Weighted average shares outstanding - diluted 80,542 90,200 81,763 90,291 Diluted earnings per common share: Income from continuing operations $ 1.15 $ 1.69 $ 3.82 $ 3.29 Income from discontinued operations — 0.01 — 0.38 $ 1.15 $ 1.70 $ 3.82 $ 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
Loans Held for Investment - TDRs (Details) $ in Millions	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
Short-term Borrowings (Details) $ in Thousands	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
Income Taxes - Narrative (Details)	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 ($)	3 Months Ended		9 Months Ended
Derivative Financial Instruments (Details) - USD ($)	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
Segment and Related Information (Details) $ in Thousands	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