Business Segments

12 Months Ended

Dec. 31, 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.



	Year Ended December 31, 2019
(in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	1,301,901		$	8,104		$	3		$	1,310,008
Interest expense	320,362			—			—			320,362
Net interest income	981,539			8,104			3			989,646
Provision for (reversal of) credit losses	41,710			(53		)	—			41,657
Mortgage income	—			63,030			—			63,030
Title revenue	—			—			25,928			25,928
Other non-interest income (expense)	145,317			104			(19		)	145,402
Allocated expenses (income)	(14,495		)	10,640			3,855			—
Non-interest expense	611,794			51,734			19,228			682,756
Income before income tax expense	487,847			8,917			2,829			499,593
Income tax expense	112,624			2,051			763			115,438
Net income	$	375,223		$	6,866		$	2,066		$	384,155
Total loans, leases, and loans held for sale, net of unearned income	$	24,003,854		$	231,002		$	—		$	24,234,856
Total assets	31,413,998			271,382			28,070			31,713,450
Total deposits	25,200,205			19,144			—			25,219,349
Average assets	31,121,870			230,241			25,757			31,377,868



	Year Ended December 31, 2018
(in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	1,215,668		$	5,958		$	3		$	1,221,629
Interest expense	208,381			—			—			208,381
Net interest income	1,007,287			5,958			3			1,013,248
Provision for (reversal of) credit losses	40,429			(44		)	—			40,385
Mortgage income	—			46,424			—			46,424
Title revenue	—			—			24,149			24,149
Other non-interest income (expense)	81,588			(95		)	496			81,989
Allocated expenses (income)	(13,437		)	9,847			3,590			—
Non-interest expense	660,804			43,021			19,073			722,898
Income (loss) before income tax expense	401,079			(537		)	1,985			402,527
Income tax expense (benefit)	32,436			(52		)	(106		)	32,278
Net income (loss)	$	368,643		$	(485	)	$	2,091		$	370,249
Total loans, leases, and loans held for sale, net of unearned income	$	22,493,809		$	133,740		$	—		$	22,627,549
Total assets	30,645,000			162,599			25,416			30,833,015
Total deposits	23,754,512			8,919			—			23,763,431
Average assets	29,400,755			153,717			23,554			29,578,026



	Year Ended December 31, 2017
(in thousands)	IBERIABANK			Mortgage			LTC			Consolidated
Interest and dividend income	$	906,521		$	7,260		$	2		$	913,783
Interest expense	104,937			—			—			104,937
Net interest income	801,584			7,260			2			808,846
Provision for (reversal of) credit losses	51,797			(89		)	—			51,708
Mortgage income	—			63,570			—			63,570
Title revenue	—			—			21,972			21,972
Other non-interest income (expense)	116,659			(42		)	(12		)	116,605
Allocated expenses (income)	(13,293		)	10,041			3,252			—
Non-interest expense	575,865			73,587			16,954			666,406
Income (loss) before income tax expense	303,874			(12,751		)	1,756			292,879
Income tax expense (benefit)	156,407			(5,771		)	(170		)	150,466
Net income (loss)	$	147,467		$	(6,980	)	$	1,926		$	142,413
Total loans, leases, and loans held for sale, net of unearned income	$	20,028,840		$	184,257		$	—		$	20,213,097
Total assets	27,672,906			208,710			22,513			27,904,129
Total deposits	21,462,776			3,941			—			21,466,717
Average assets	24,228,436			229,364			22,856			24,480,656