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, IMC, 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 IMC 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, 2017
(Dollars in thousands)	IBERIABANK			IMC			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 losses	12,134			(84		)	—		12,050
Mortgage income	—			19,730			—		19,730
Service charges on deposit accounts	11,410			—			—		11,410
Title revenue	—			—			6,190		6,190
Other non-interest income	18,647			(11		)	—		18,636
Allocated expenses	(3,322		)	2,490			832		—
Non-interest expense	120,698			22,417			4,393		147,508
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 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



	Three Months Ended June 30, 2016
(Dollars in thousands)	IBERIABANK			IMC		LTC		Consolidated
Interest and dividend income	$	176,564		$	2,130	$	—	$	178,694
Interest expense	14,782			1,159		—		15,941
Net interest income	161,782			971		—		162,753
Provision for loan losses	11,866			—		—		11,866
Mortgage income	7			25,984		—		25,991
Service charges on deposit accounts	10,940			—		—		10,940
Title revenue	—			—		6,135		6,135
Other non-interest income	21,843			8		—		21,851
Allocated expenses	(3,885		)	2,947		938		—
Non-interest expense	120,268			14,820		4,416		139,504
Income/(loss) before income tax expense	66,323			9,196		781		76,300
Income tax expense/(benefit)	21,558			3,625		307		25,490
Net income/(loss)	$	44,765		$	5,571	$	474	$	50,810
Total loans and loans held for sale, net of unearned income	$	14,702,843		$	249,371	$	—	$	14,952,214
Total assets	19,807,507			326,397		26,951		20,160,855
Total deposits	15,855,908			6,119		—		15,862,027
Average assets	19,668,456			308,647		26,814		20,003,917



	Six Months Ended June 30, 2017
(Dollars in thousands)	IBERIABANK			IMC			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
Service charges on deposit accounts	22,563			—			—			22,563
Title revenue	—			—			10,931			10,931
Other non-interest income	36,000			(21		)	(6		)	35,973
Allocated expenses	(5,496		)	4,146			1,350			—
Non-interest expense	242,349			37,584			8,593			288,526
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



	Six Months Ended June 30, 2016
(Dollars in thousands)	IBERIABANK			IMC		LTC		Consolidated
Interest and dividend income	$	351,888		$	3,741	$	1	$	355,630
Interest expense	29,436			2,038		—		31,474
Net interest income	322,452			1,703		1		324,156
Provision for loan losses	26,771			—		—		26,771
Mortgage income	6			45,925		—		45,931
Service charges on deposit accounts	21,891			—		—		21,891
Title revenue	—			—		10,880		10,880
Other non-interest income	42,053			7		—		42,060
Allocated expenses	(6,554		)	4,997		1,557		—
Non-interest expense	240,295			28,018		8,643		276,956
Income/(loss) before income tax expense	125,890			14,620		681		141,191
Income tax expense/(benefit)	41,559			5,778		275		47,612
Net income/(loss)	$	84,331		$	8,842	$	406	$	93,579
Total loans and loans held for sale, net of unearned income	$	14,702,843		$	249,371	$	—	$	14,952,214
Total assets	19,807,507			326,397		26,951		20,160,855
Total deposits	15,855,908			6,119		—		15,862,027
Average assets	19,525,087			280,464		27,063		19,832,614