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, 2018
(Dollars in thousands)	IBERIABANK			Mortgage			LTC		Consolidated
Interest and dividend income	$	315,467		$	1,599		$	1	$	317,067
Interest expense	57,842			—			—		57,842
Net interest income	257,625			1,599			1		259,225
Provision for/(reversal of) loan and lease losses	11,099			(2		)	—		11,097
Mortgage income	—			12,732			—		12,732
Title revenue	—			—			6,280		6,280
Other non-interest income/(expense)	33,591			(16		)	500		34,075
Allocated expenses/(income)	(3,691		)	2,680			1,011		—
Non-interest expense	154,287			10,223			4,839		169,349
Income/(loss) before income tax expense	129,521			1,414			931		131,866
Income tax expense/(benefit)	29,765			386			250		30,401
Net income/(loss)	$	99,756		$	1,028		$	681	$	101,465
Total loans, leases, and loans held for sale, net of unearned income	$	22,302,679		$	84,203		$	—	$	22,386,882
Total assets	29,974,065			119,322			25,000		30,118,387
Total deposits	23,179,549			13,897			—		23,193,446
Average assets	29,863,742			158,464			24,025		30,046,231



	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 and lease losses	18,524			(10		)	—			18,514
Mortgage income	—			16,050			—			16,050
Title revenue	—			—			5,643			5,643
Other non-interest income/(expense)	29,163			(9		)	(4		)	29,150
Allocated expenses/(income)	(3,881		)	2,911			970			—
Non-interest expense	174,306			22,170			4,286			200,762
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, leases, 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



	Nine Months Ended September 30, 2018
(Dollars in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	886,629		$	4,802		$	2		$	891,433
Interest expense	143,206			—			—			143,206
Net interest income	743,423			4,802			2			748,227
Provision for/(reversal of) loan losses	26,704			(26		)	—			26,678
Mortgage income	—			36,048			—			36,048
Title revenue	—			—			18,153			18,153
Other non-interest income/(expense)	96,978			(83		)	497			97,392
Allocated expenses/(income)	(9,043		)	6,714			2,329			—
Non-interest expense	506,035			34,105			14,382			554,522
Income/(loss) before income tax expense	316,705			(26		)	1,941			318,620
Income tax expense/(benefit)	78,516			(7		)	(99		)	78,410
Net income/(loss)	$	238,189		$	(19	)	$	2,040		$	240,210
Total loans and loans held for sale, net of unearned income	$	22,302,679		$	84,203		$	—		$	22,386,882
Total assets	29,974,065			119,322			25,000			30,118,387
Total deposits	23,179,549			13,897			—			23,193,446
Average assets	29,136,369			164,039			23,037			29,323,445



	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
Title revenue	—			—			16,574			16,574
Other non-interest income/(expense)	83,376			(30		)	(10		)	83,336
Allocated expenses/(income)	(9,377		)	7,057			2,320			—
Non-interest expense	412,305			59,754			12,879			484,938
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