Business Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

NOTE 26 – BUSINESS SEGMENTS

Each of the Company’s reportable operating segments is a business unit that 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 are subject to evaluation by the chief operating decision maker in deciding how to allocate resources to segments. The Company reports the results of its operations through three business 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 that are not specifically related to a strategic business unit. 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 means that reflect utilization.

Also within IBERIABANK are certain reconciling items in order to 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.

IBERIABANK is considered a reportable segment based on the quantitative thresholds specified within ASC Topic 280, Segment Reporting (“ASC 280”). The Company’s wealth management, capital markets and trust operating segments are aggregated within the IBERIABANK reportable operating segment because they do not meet the thresholds specified by ASC 280 and based on the qualitative factors presented within ASC 280. The Company’s IMC and LTC segments do not meet the quantitative thresholds specified by ASC 280, but are reported because management believes information about those segments is useful to users of the financial statements.

(Dollars in thousands)	Year Ended December 31, 2014
	IBERIABANK			IMC			LTC			Consolidated
Interest income	$	498,820		$	5,992		$	3		$	504,815
Interest expense		42,983			1,721			—			44,704
Net interest income		455,837			4,271			3			460,111
Provision for loan losses		18,966			94			—			19,060
Mortgage income		71			51,726			—			51,797
Title income		—			—			20,492			20,492
Other non-interest income		101,401			(61	)		(1	)		101,339
Core deposit intangible amortization		5,569			—			—			5,569
Allocated expenses		(11,602	)		8,203			3,399			—
Other non-interest expenses		407,461			44,761			16,688			468,910
Income before income taxes		136,915			2,878			407			140,200
Income tax provision		33,419			1,148			183			34,750
Net income	$	103,496		$	1,730		$	224		$	105,450
Total loans and loans held for sale, net of unearned income	$	11,415,973		$	165,143		$	—		$	11,581,116
Total assets		15,538,432			194,156			26,017			15,758,605
Total deposits		12,515,329			5,196			—			12,520,525
Average assets		14,431,459			176,003			25,223			14,632,685
(Dollars in thousands)	Year Ended December 31, 2013
	IBERIABANK			IMC			LTC			Consolidated
Interest income	$	431,418		$	5,747		$	32		$	437,197
Interest expense		45,150			1,803			—			46,953
Net interest income		386,268			3,944			32			390,244
Provision for loan losses		5,123			22			—			5,145
Mortgage income		2			64,195			—			64,197
Title income		—			—			20,526			20,526
Other non-interest income		84,243			(10	)		2			84,235
Core deposit intangible amortization		4,499			—			—			4,499
Allocated expenses		(7,453	)		5,417			2,036			—
Other non-interest expenses		402,170			49,723			16,693			468,586
Income before income taxes		66,174			12,967			1,831			80,972
Income tax provision		10,035			5,093			741			15,869
Net income	$	56,139		$	7,874		$	1,090		$	65,103
Total loans and loans held for sale, net of unearned income	$	9,472,908		$	147,553		$	—		$	9,620,461
Total assets		13,167,162			173,131			25,257			13,365,550
Total deposits		10,734,030			2,970			—			10,737,000
Average assets		12,794,997			183,513			25,478			13,003,988

(Dollars in thousands)	Year Ended December 31, 2012
	IBERIABANK			IMC			LTC		Consolidated
Interest income	$	439,245		$	5,858		$	97	$	445,200
Interest expense		61,349			2,101			—		63,450
Net interest income		377,896			3,757			97		381,750
Provision for loan losses		20,550			121			—		20,671
Mortgage income		6			78,047			—		78,053
Title income		—			—			20,987		20,987
Other non-interest income		76,967			(10	)		—		76,957
Core deposit intangible amortization		4,900			—			—		4,900
Allocated expenses		(3,282	)		2,340			942		—
Other non-interest expenses		361,428			49,084			16,773		427,285
Income before income taxes		71,273			30,249			3,369		104,891
Income tax provision		15,192			11,871			1,433		28,496
Net income	$	56,081		$	18,378		$	1,936	$	76,395
Total loans and loans held for sale, net of unearned income	$	8,485,363		$	280,692		$	—	$	8,766,055
Total assets		12,796,811			308,152			24,715		13,129,678
Total deposits		10,745,528			2,749			—		10,748,277
Average assets		11,879,761			194,832			22,379		12,096,972