BUSINESS SEGMENTS

Each of the Company’s reportable operating segments serves the specific needs of the Company’s customers based on the products and services it offers. The reportable segments are based upon those revenue-producing components for which separate financial information is produced internally and primarily reflect the manner in which resources are allocated and performance is assessed. Further, the reportable operating segments are also determined based on the quantitative thresholds prescribed within ASC Topic 280, Segment Reporting, and consideration of the usefulness of the information to the users of the consolidated financial statements.

The Company reports the results of its operations through three reportable segments: IBERIABANK, Mortgage, and LTC. The IBERIABANK segment represents the Company’s commercial and retail banking functions, including its lending, investment, and deposit activities. IBERIABANK also includes the Company’s wealth management, capital markets, and other corporate functions. The Mortgage segment represents the Company’s origination, funding, and subsequent sale of one-to-four family residential mortgage loans. The LTC segment represents the Company’s title insurance and loan closing services.

Certain expenses not directly attributable to a specific reportable segment are allocated to segments based on pre-determined methods that reflect utilization. Also within IBERIABANK are certain reconciling items that translate reportable segment results into consolidated results. The following tables present certain information regarding our operations by reportable segment, including a reconciliation of segment results to reported consolidated results for the periods presented. Reconciling items between segment results and reported results include:


•	Elimination of interest income and interest expense representing interest earned by IBERIABANK on interest-bearing checking accounts held by related companies, as well as the elimination of the related deposit balances at the IBERIABANK segment;


•	Elimination of investment in subsidiary balances on certain operating segments included in total and average segment assets; and


•	Elimination of intercompany due to and due from balances on certain operating segments that are included in total and average segment assets.



	Three Months Ended September 30, 2017
(Dollars in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	245,166		$	1,805		$	1		$	246,972
Interest expense	30,089			—			—			30,089
Net interest income	215,077			1,805			1			216,883
Provision for/(reversal of) loan losses	18,524			(10		)	—			18,514
Mortgage income	—			16,050			—			16,050
Service charges on deposit accounts	12,534			—			—			12,534
Title revenue	—			—			5,643			5,643
Other non-interest income	18,853			(9		)	(4		)	18,840
Allocated expenses	(3,881		)	2,911			970			—
Non-interest expense	176,530			22,170			4,286			202,986
Income/(loss) before income tax expense	55,291			(7,225		)	384			48,450
Income tax expense/(benefit)	21,076			(2,424		)	154			18,806
Net income/(loss)	$	34,215		$	(4,801	)	$	230		$	29,644
Total loans and loans held for sale, net of unearned income	$	19,743,749		$	192,554		$	—		$	19,936,303
Total assets	27,738,588			217,056			20,991			27,976,635
Total deposits	21,333,190			1,081			—			21,334,271
Average assets	25,869,559			204,920			22,442			26,096,921



	Three Months Ended September 30, 2016
(Dollars in thousands)	IBERIABANK			Mortgage		LTC		Consolidated
Interest and dividend income	$	178,521		$	1,982	$	1	$	180,504
Interest expense	15,944			1,143		—		17,087
Net interest income	162,577			839		1		163,417
Provision for loan losses	12,443			41		—		12,484
Mortgage income	—			21,807		—		21,807
Service charges on deposit accounts	11,066			—		—		11,066
Title revenue	—			—		6,001		6,001
Other non-interest income	20,946			1		—		20,947
Allocated expenses	(3,914		)	3,010		904		—
Non-interest expense	127,690			5,891		4,558		138,139
Income/(loss) before income tax expense	58,370			13,705		540		72,615
Income tax expense/(benefit)	19,282			5,048		217		24,547
Net income/(loss)	$	39,088		$	8,657	$	323	$	48,068
Total loans and loans held for sale, net of unearned income	$	14,957,337		$	178,028	$	—	$	15,135,365
Total assets	20,537,304			226,906		24,356		20,788,566
Total deposits	16,513,867			8,650		—		16,522,517
Average assets	20,061,071			305,996		25,761		20,392,828



	Nine Months Ended September 30, 2017
(Dollars in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	638,683		$	5,395		$	2		$	644,080
Interest expense	70,736			—			—			70,736
Net interest income	567,947			5,395			2			573,344
Provision for/(reversal of) loan losses	36,816			(98		)	—			36,718
Mortgage income	—			49,895			—			49,895
Service charges on deposit accounts	35,097			—			—			35,097
Title revenue	—			—			16,574			16,574
Other non-interest income	54,853			(30		)	(10		)	54,813
Allocated expenses	(9,377		)	7,057			2,320			—
Non-interest expense	418,879			59,754			12,879			491,512
Income/(loss) before income tax expense	211,579			(11,453		)	1,367			201,493
Income tax expense/(benefit)	72,650			(3,840		)	548			69,358
Net income/(loss)	$	138,929		$	(7,613	)	$	819		$	132,135
Total loans and loans held for sale, net of unearned income	$	19,743,749		$	192,554		$	—		$	19,936,303
Total assets	27,738,588			217,056			20,991			27,976,635
Total deposits	21,333,190			1,081			—			21,334,271
Average assets	23,020,324			239,014			23,496			23,282,834



	Nine Months Ended September 30, 2016
(Dollars in thousands)	IBERIABANK			Mortgage		LTC		Consolidated
Interest and dividend income	$	530,409		$	5,723	$	2	$	536,134
Interest expense	45,380			3,181		—		48,561
Net interest income	485,029			2,542		2		487,573
Provision for loan losses	39,214			41		—		39,255
Mortgage income	—			67,738		—		67,738
Service charges on deposit accounts	32,957			—		—		32,957
Title revenue	—			—		16,881		16,881
Other non-interest income	62,999			8		—		63,007
Allocated expenses	(10,468		)	8,007		2,461		—
Non-interest expense	367,985			33,909		13,201		415,095
Income/(loss) before income tax expense	184,254			28,331		1,221		213,806
Income tax expense/(benefit)	60,841			10,826		492		72,159
Net income/(loss)	$	123,413		$	17,505	$	729	$	141,647
Total loans and loans held for sale, net of unearned income	$	14,957,337		$	178,028	$	—	$	15,135,365
Total assets	20,537,304			226,906		24,356		20,788,566
Total deposits	16,513,867			8,650		—		16,522,517
Average assets	19,705,052			289,037		26,626		20,020,715