Business Segments

6 Months Ended

Jun. 30, 2019

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 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, 2019
(in thousands)	IBERIABANK			Mortgage			LTC		Consolidated
Interest and dividend income	$	334,055		$	1,912		$	—	$	335,967
Interest expense	80,628			—			—		80,628
Net interest income	253,427			1,912			—		255,339
Provision for (reversal of) credit losses	10,742			13			—		10,755
Mortgage income	—			18,444			—		18,444
Title revenue	—			—			6,895		6,895
Other non-interest income (expense)	33,496			(10		)	—		33,486
Allocated expenses (income)	(4,414		)	3,250			1,164		—
Non-interest expense	151,139			13,590			4,889		169,618
Income before income tax expense	129,456			3,493			842		133,791
Income tax expense	31,134			836			223		32,193
Net income	$	98,322		$	2,657		$	619	$	101,598
Total loans, leases, and loans held for sale, net of unearned income	$	23,330,738		$	212,560		$	—	$	23,543,298
Total assets	31,165,205			255,106			26,221		31,446,532
Total deposits	24,279,416			15,915			—		24,295,331
Average assets	31,024,832			221,891			25,099		31,271,822



	Three Months Ended June 30, 2018
(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) credit losses	7,715			(19		)	—			7,696
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	179,831			11,966			4,979			196,776
Income before income tax expense	104,485			237			859			105,581
Income tax expense	30,211			17			229			30,457
Net income	$	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



	Six Months Ended June 30, 2019
(in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	658,699		$	3,351		$	1		$	662,051
Interest expense	156,228			—			—			156,228
Net interest income	502,471			3,351			1			505,823
Provision for (reversal of) credit losses	24,565			(47		)	—			24,518
Mortgage income	—			30,293			—			30,293
Title revenue	—			—			12,120			12,120
Other non-interest income (expense)	68,959			(22		)	(16		)	68,921
Allocated expenses (income)	(6,447		)	4,750			1,697			—
Non-interest expense	294,894			24,131			9,346			328,371
Income before income tax expense	258,418			4,788			1,062			264,268
Income tax expense	61,109			1,143			287			62,539
Net income	$	197,309		$	3,645		$	775		$	201,729
Total loans, leases, and loans held for sale, net of unearned income	$	23,330,738		$	212,560		$	—		$	23,543,298
Total assets	31,165,205			255,106			26,221			31,446,532
Total deposits	24,279,416			15,915			—			24,295,331
Average assets	30,838,856			190,205			24,811			31,053,872



	Six Months Ended June 30, 2018
(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) credit losses	15,931			(24		)	—			15,907
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	351,422			23,882			9,543			384,847
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, 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	28,766,655			166,872			22,535			28,956,062