Business Segments

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Business Segments

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 September 30, 2016
(Dollars in thousands)	IBERIABANK			IMC		LTC		Consolidated
Interest and dividend income	$	178,521		$	1,982	$	1	$	180,504
Interest expense	15,944			1,143		—		17,087
Net interest income	162,577			839		1		163,417
Provision for loan losses	12,443			41		—		12,484
Mortgage income	850			20,957		—		21,807
Service charges on deposit accounts	11,066			—		—		11,066
Title revenue	—			—		6,001		6,001
Other non-interest income	20,946			1		—		20,947
Allocated expenses	(3,914		)	3,010		904		—
Non-interest expense	127,690			5,891		4,558		138,139
Income before income tax expense	59,220			12,855		540		72,615
Income tax expense	19,282			5,048		217		24,547
Net income	$	39,938		$	7,807	$	323	$	48,068
Total loans and loans held for sale, net of unearned income	$	14,957,337		$	178,028	$	—	$	15,135,365
Total assets	20,537,304			226,906		24,356		20,788,566
Total deposits	16,513,867			8,650		—		16,522,517
Average assets	20,061,071			305,996		25,761		20,392,828

	Three Months Ended September 30, 2015
(Dollars in thousands)	IBERIABANK			IMC		LTC		Consolidated
Interest and dividend income	$	169,005		$	2,071	$	1	$	171,077
Interest expense	15,109			851		—		15,960
Net interest income	153,896			1,220		1		155,117
Provision for loan losses	5,062			—		—		5,062
Mortgage income	263			20,365		—		20,628
Service charges on deposit accounts	11,342			—		—		11,342
Title revenue	—			—		6,627		6,627
Other non-interest income	18,880			1		—		18,881
Allocated expenses	(3,518		)	2,693		825		—
Non-interest expense	124,909			15,605		4,454		144,968
Income before income tax expense	57,928			3,288		1,349		62,565
Income tax expense	18,253			1,306		531		20,090
Net income	$	39,675		$	1,982	$	818	$	42,475
Total loans and loans held for sale, net of unearned income	$	14,094,936		$	224,251	$	—	$	14,319,187
Total assets	19,242,690			264,914		26,621		19,534,225
Total deposits	16,293,681			9,384		—		16,303,065
Average assets	19,321,164			256,897		26,009		19,604,070

	Nine Months Ended September 30, 2016
(Dollars in thousands)	IBERIABANK			IMC		LTC		Consolidated
Interest and dividend income	$	530,409		$	5,723	$	2	$	536,134
Interest expense	45,380			3,181		—		48,561
Net interest income	485,029			2,542		2		487,573
Provision for loan losses	39,214			41		—		39,255
Mortgage income	856			66,882		—		67,738
Service charges on deposit accounts	32,957			—		—		32,957
Title revenue	—			—		16,881		16,881
Other non-interest income	62,999			8		—		63,007
Allocated expenses	(10,468		)	8,007		2,461		—
Non-interest expense	367,985			33,909		13,201		415,095
Income before income tax expense	185,110			27,475		1,221		213,806
Income tax expense	60,841			10,826		492		72,159
Net income	$	124,269		$	16,649	$	729	$	141,647
Total loans and loans held for sale, net of unearned income	$	14,957,337		$	178,028	$	—	$	15,135,365
Total assets	20,537,304			226,906		24,356		20,788,566
Total deposits	16,513,867			8,650		—		16,522,517
Average assets	19,705,052			289,037		26,626		20,020,715

	Nine Months Ended September 30, 2015
(Dollars in thousands)	IBERIABANK			IMC			LTC			Consolidated
Interest and dividend income	$	464,775		$	5,430		$	2		$	470,207
Interest expense	41,410			2,199			—			43,609
Net interest income	423,365			3,231			2			426,598
Provision for loan losses	19,197			—			—			19,197
Mortgage income	830			63,067			—			63,897
Service charges on deposit accounts	30,766			—			—			30,766
Title revenue	—			—			17,402			17,402
Other non-interest income	55,834			(2		)	(7		)	55,825
Allocated expenses	(11,603		)	8,685			2,918			—
Non-interest expense	373,948			44,259			13,123			431,330
Income before income tax expense	129,253			13,352			1,356			143,961
Income tax expense	39,695			5,286			543			45,524
Net income	$	89,558		$	8,066		$	813		$	98,437
Total loans and loans held for sale, net of unearned income	$	14,094,936		$	224,251		$	—		$	14,319,187
Total assets	19,242,690			264,914			26,621			19,534,225
Total deposits	16,293,681			9,384			—			16,303,065
Average assets	17,760,033			230,379			25,268			18,015,680