Segment Reporting

9 Months Ended

Sep. 30, 2017

SEGMENT REPORTING

Heartland has identified two operating segments for purposes of financial reporting: community and other banking, and retail mortgage banking. These segments were determined based on the products and services provided or the type of customers served and are consistent with the information used by Heartland's key decision makers to make operating decisions and to assess Heartland's performance. The following tables present financial information for Heartland's operating segments for the three- and nine-month periods ended September 30, 2017, and September 30, 2016, in thousands:



	Three Months Ended September 30,
	2017							2016
	Community and Other Banking		Retail Mortgage Banking			Total		Community and Other Banking		Retail Mortgage Banking		Total
Net interest income	$	88,778	$	1,066		$	89,844	$	72,694	$	987	$	73,681
Provision for loan losses	5,705		—			5,705		5,328		—		5,328
Total noninterest income	19,680		5,297			24,977		17,337		11,205		28,542
Total noninterest expense	69,977		8,782			78,759		57,988		10,439		68,427
Income (loss) before taxes	$	32,776	$	(2,419	)	$	30,357	$	26,715	$	1,753	$	28,468
Average Loans, for the period	$	6,245,445	$	40,839		$	6,286,284	$	5,464,304	$	73,784	$	5,538,088
Segment Assets, at period end	$	9,693,172	$	62,455		$	9,755,627	$	8,084,810	$	117,405	$	8,202,215



	Nine Months Ended September 30,
	2017							2016
	Community and Other Banking		Retail Mortgage Banking			Total		Community and Other Banking		Retail Mortgage Banking		Total
Net interest income	$	234,406	$	3,046		$	237,452	$	216,172	$	3,334	$	219,506
Provision for loan losses	10,235		—			10,235		9,513		—		9,513
Total noninterest income	56,964		19,530			76,494		55,773		33,373		89,146
Total noninterest expense	193,753		26,044			219,797		177,421		32,335		209,756
Income (loss) before taxes	$	87,382	$	(3,468	)	$	83,914	$	85,011	$	4,372	$	89,383
Average Loans, for the period	$	5,641,641	$	37,979		$	5,679,620	$	5,422,843	$	70,344	$	5,493,187
Segment Assets, at period end	$	9,693,172	$	62,455		$	9,755,627	$	8,084,810	$	117,405	$	8,202,215