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 June 30, 2018
(Dollars in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	302,387		$	1,436		$	—		$	303,823
Interest expense	47,710			—			—			47,710
Net interest income	254,677			1,436			—			256,113
Provision for/(reversal of) loan and lease losses	7,614			(19		)	—			7,595
Mortgage income	—			13,721			—			13,721
Title revenue	—			—			6,846			6,846
Other non-interest income/(expense)	33,481			(105		)	(3		)	33,373
Allocated expenses/(income)	(3,873		)	2,868			1,005			—
Non-interest expense	179,932			11,966			4,979			196,877
Income/(loss) before income tax expense	104,485			237			859			105,581
Income tax expense/(benefit)	30,211			17			229			30,457
Net income/(loss)	$	74,274		$	220		$	630		$	75,124
Total loans, leases, and loans held for sale, net of unearned income	$	22,026,914		$	127,712		$	—		$	22,154,626
Total assets	29,928,360			173,415			24,387			30,126,162
Total deposits	23,419,382			11,076			—			23,430,458
Average assets	29,599,468			148,210			23,174			29,770,852



	Three Months Ended June 30, 2017
(Dollars in thousands)	IBERIABANK			Mortgage			LTC		Consolidated
Interest and dividend income	$	202,694		$	1,881		$	—	$	204,575
Interest expense	20,932			—			—		20,932
Net interest income	181,762			1,881			—		183,643
Provision for/(reversal of) loan and lease losses	12,134			(84		)	—		12,050
Mortgage income	—			19,730			—		19,730
Title revenue	—			—			6,190		6,190
Other non-interest income/(expense)	27,929			(11		)	—		27,918
Allocated expenses/(income)	(3,322		)	2,490			832		—
Non-interest expense	118,570			22,417			4,393		145,380
Income/(loss) before income tax expense	82,309			(3,223		)	965		80,051
Income tax expense/(benefit)	28,745			(1,094		)	382		28,033
Net income/(loss)	$	53,564		$	(2,129	)	$	583	$	52,018
Total loans, leases, and loans held for sale, net of unearned income	$	15,504,171		$	192,804		$	—	$	15,696,975
Total assets	21,549,557			215,862			25,308		21,790,727
Total deposits	16,852,620			496			—		16,853,116
Average assets	21,593,026			226,326			24,185		21,843,537



	Six Months Ended June 30, 2018
(Dollars in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	571,162		$	3,203		$	1		$	574,366
Interest expense	85,364			—			—			85,364
Net interest income	485,798			3,203			1			489,002
Provision for/(reversal of) loan losses	15,605			(24		)	—			15,581
Mortgage income	—			23,316			—			23,316
Title revenue	—			—			11,873			11,873
Other non-interest income/(expense)	63,387			(67		)	(3		)	63,317
Allocated expenses/(income)	(5,352		)	4,034			1,318			—
Non-interest expense	351,748			23,882			9,543			385,173
Income/(loss) before income tax expense	187,184			(1,440		)	1,010			186,754
Income tax expense/(benefit)	48,751			(393		)	(349		)	48,009
Net income/(loss)	$	138,433		$	(1,047	)	$	1,359		$	138,745
Total loans and loans held for sale, net of unearned income	$	22,026,914		$	127,712		$	—		$	22,154,626
Total assets	29,928,360			173,415			24,387			30,126,162
Total deposits	23,419,382			11,076			—			23,430,458
Average assets	28,766,655			166,872			22,535			28,956,062



	Six Months Ended June 30, 2017
(Dollars in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	393,517		$	3,590		$	1		$	397,108
Interest expense	40,647			—			—			40,647
Net interest income	352,870			3,590			1			356,461
Provision for/(reversal of) loan losses	18,292			(88		)	—			18,204
Mortgage income	—			33,845			—			33,845
Title revenue	—			—			10,931			10,931
Other non-interest income/(expense)	54,213			(21		)	(6		)	54,186
Allocated expenses/(income)	(5,496		)	4,146			1,350			—
Non-interest expense	237,999			37,584			8,593			284,176
Income/(loss) before income tax expense	156,288			(4,228		)	983			153,043
Income tax expense/(benefit)	51,574			(1,416		)	394			50,552
Net income/(loss)	$	104,714		$	(2,812	)	$	589		$	102,491
Total loans and loans held for sale, net of unearned income	$	15,504,171		$	192,804		$	—		$	15,696,975
Total assets	21,549,557			215,862			25,308			21,790,727
Total deposits	16,852,620			496			—			16,853,116
Average assets	21,572,094			256,343			24,032			21,852,469