10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-37532

IBERIABANK Corporation

(Exact name of Registrant as specified in its charter)

Louisiana	72-1280718
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
200 West Congress Street, Lafayette, Louisiana	70501
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (337) 521-4003

Securities registered pursuant to Section 12(g) of the Act: Not Applicable

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of Exchange on which registered
Common Stock (par value $1.00 per share)	The NASDAQ Stock Market, LLC
Depositary Shares each representing 1/400th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock	The NASDAQ Stock Market, LLC
Depositary Shares each representing 1/400th interest in a share of Series C Non-Cumulative Perpetual Preferred Stock	The NASDAQ Stock Market, LLC

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Exchange Act of 1934.    Yes  x    No  ¨

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes  ¨    No  x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company ¨
Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act)   Yes  ¨    No  x

As of June 30, 2018, the last business day of the Registrant’s most recently completed second fiscal quarter, the aggregate market value of the voting shares of common stock held by non-affiliates of the Registrant was approximately $4.2 billion. This figure is based on the closing sale price of $75.80 per share of the Registrant’s common stock on June 30, 2018. For purposes of this calculation, the term “affiliate” refers to all executive officers and directors of the Registrant and all shareholders beneficially owning more than 10% of the Registrant’s common stock.

Number of shares of common stock outstanding as of January 31, 2019: 54,923,492

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Annual Report to Shareholders for the fiscal year ended December 31, 2018, included as Exhibit 13 to this Form 10-K, are incorporated into Part II, Items 5 through 9B of this Form 10-K.

IBERIABANK CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS

	PART I
Item 1.	Business	1
Item 1A.	Risk Factors	12
Item 1B.	Unresolved Staff Comments	26
Item 2.	Properties	26
Item 3.	Legal Proceedings	26
Item 4.	Mine Safety Disclosures	27
	PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	28
Item 6.	Selected Financial Data	30
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 8.	Financial Statements and Supplementary Data	30
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	30
Item 9A.	Controls and Procedures	30
Item 9B.	Other Information	30
	PART III
Item 10.	Directors, Executive Officers and Corporate Governance	31
Item 11.	Executive Compensation	31
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	31
Item 13.	Certain Relationships and Related Transactions, and Director Independence	31
Item 14.	Principal Accounting Fees and Services	31
	PART IV
Item 15.	Exhibits and Financial Statement Schedules	32
SIGNATURES		35

PART I.

Item 1. Business.

Unless we indicate otherwise, the words “we”, “our”, “us”, “IBKC”, and “Company” refer to IBERIABANK Corporation and its wholly owned subsidiaries.

General

IBERIABANK Corporation, a Louisiana corporation, is a financial holding company with 329 combined locations, including 191 bank branch offices and 3 loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York, 29 title insurance offices in Arkansas, Tennessee, and Louisiana, and mortgage representatives in 87 locations in 12 states. The Company also has 18 wealth management locations in 5 states and one IBERIA Capital Partners L.L.C. office in Louisiana. As of December 31, 2018, we had total consolidated assets of $30.8 billion, total deposits of $23.8 billion and shareholders’ equity of $4.1 billion.

Our principal executive office is located at 200 West Congress Street, Lafayette, Louisiana, and our telephone number at that office is (337) 521-4003. Our website is located at www.iberiabank.com.

We are the holding company for IBERIABANK, a Louisiana state chartered banking corporation headquartered in Lafayette, Louisiana; Lenders Title Company, an Arkansas-chartered title insurance and closing services agency headquartered in Little Rock, Arkansas (“Lenders Title”); IBERIA Capital Partners LLC, a corporate finance services firm (“ICP”); 1887 Leasing, LLC, a holding company for our aircraft, IBERIA Asset Management, Inc. (“IAM”), which provides wealth management and trust advisory services to high net worth individuals, pension funds, corporations and trusts; and IBERIA CDE, LLC (“CDE”), which invests in purchased tax credits.

IBERIABANK offers commercial and retail banking products and services to customers throughout locations in ten states. IBERIABANK provides these products and services in Louisiana, Alabama, Florida, Arkansas, Tennessee, Georgia, Texas, North Carolina, South Carolina and New York, as well as on-line at www.iberiabank.com and www.virtualbank.com. These products and services include a broad array of commercial, consumer, mortgage, and private banking products and services, trust advisory services, cash management, deposit and annuity products. Certain of our non-bank subsidiaries engage in financial services-related activities, including brokerage services, sales of variable annuities, and wealth management services. Lenders Title offers a full line of title insurance and loan closing services throughout Arkansas, Tennessee, and Louisiana. ICP provides equity research, institutional sales and trading, and corporate finance services throughout the energy industry. 1887 Leasing, LLC, owns an aircraft used by management of the Company and its subsidiaries. IAM provides wealth management advisory services for commercial and private banking clients. CDE is engaged in the purchase of tax credits.

Subsidiaries

IBERIABANK has eight active, wholly-owned non-bank subsidiaries. Information related to the non-bank subsidiaries as of December 31, 2018 is presented in the following table (dollars in millions):

Subsidiary	Description	Total Assets	IBERIABANK’s Equity Investment
IBERIA Financial Services, LLC	Manages the brokerage services offered by IBERIABANK	$4.0	$1.4
IB SPE Management, Inc.	Operates, then sells, certain foreclosed assets acquired in recent Florida and Alabama acquisitions	0.9	0.9
Acadiana Holdings, LLC	Owns and operates a commercial office building that also serves as IBERIABANK’s headquarters	12.2	11.1
Iberia Investment Fund I, LLC	Investment fund held for the purpose of funding new market tax credits	154.7	111.5
Iberia Corporate Asset Finance, Inc.	Offers lease financing to commercial clients	197.1	171.8
Mercantile Capital Corporation	Offers owner-occupied commercial real estate loans	78.3	10.1
Iberia Civic Impact Partners, LLC	Conducts tax credit transactions	85.6	29.9
Lydian REIT Holdings, Inc.	Holding Company of Lydian Preferred Capital Corporation, a real estate investment trust in Florida	261.0	40.4

1

Lenders Title has three wholly-owned subsidiaries: Asset Exchange, Inc., United Title of Louisiana, Inc. (“United Title”), and American Abstract and Title Company, Inc. (“AAT”). Asset Exchange, Inc. provides qualified intermediary services to facilitate Internal Revenue Code Section 1031 tax deferred exchanges. At December 31, 2018, Lenders Title’s equity investment in Asset Exchange, Inc. was $0.3 million, and Asset Exchange, Inc. had total assets of $0.3 million. LTC, United Title and AAT provide a full line of title insurance and loan closing services for both residential and commercial customers in locations throughout Arkansas, Tennessee, and Louisiana. At December 31, 2018, Lenders Title’s equity investment in United Title was $5.9 million, and United Title had total assets of $7.3 million. Lenders Title’s equity investment in AAT was $2.9 million, and AAT had total assets of $3.9 million.

ICP, 1887 Leasing, LLC, IAM, LLC and CDE had total assets of $12.7 million, $10.6 million, $0.9 million, and less than $0.1 million, respectively, at December 31, 2018.

Competition

We face strong competition in attracting and retaining deposits, originating loans, and providing title services. Our most direct competition for deposits has historically come from other commercial banks, savings institutions, and credit unions located in our market areas, including many large financial institutions that have greater financial and marketing resources available to them. In addition, during times of high interest rates, we have faced significant competition for investors’ funds from short-term money market securities, mutual funds and other corporate and government securities. Our ability to attract and retain customer deposits depends on our ability to generally provide a mix of return on deposited funds, liquidity and risk comparable to that offered by competing investment opportunities.

We experience strong competition for loan originations principally from other commercial banks, savings institutions, and mortgage banking companies. We compete for loans principally through the interest rates and loan fees we charge, the efficiency and quality of services we provide borrowers, and the convenient locations of our branch office network and access to services such as mobile banking.

Employees

We had 3,368 full-time associates and 73 part-time associates as of December 31, 2018. None of these associates are represented by a collective bargaining agreement. We believe we enjoy an excellent relationship with our associates.

Business Combinations

We continually evaluate business combination opportunities and sometimes conduct due diligence activities in connection with them. As a result, business combination discussions and, in some cases, negotiations, take place, and transactions involving cash, debt or equity securities could be expected. Any future business combinations or series of business combinations that we might undertake may be material to our consolidated financial performance and position.

Available Information

Additional information regarding the development of our business since the beginning of our fiscal year ended December 31, 2018, is incorporated by reference to "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Exhibit 13 hereto.

Our filings with the Securities and Exchange Commission (“SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments thereto, are available on our website as soon as reasonably practicable after the reports are filed with or furnished to the SEC. Copies can be obtained free of charge in the “Investor Relations” section of our website at www.iberiabank.com. Our SEC filings are also available through the SEC’s website at www.sec.gov. Copies of these filings are also available by writing the Company at the following address:

IBERIABANK Corporation

P.O. Box 52747

Lafayette, Louisiana 70505-2747

2

Supervision and Regulation

The banking industry is extensively regulated under both federal and applicable state laws. The following discussion summarizes certain statutes and regulations applicable to bank and financial holding companies and their subsidiaries and provides specific information relevant to us. Regulation of financial institutions is intended primarily for the protection of depositors, deposit insurance funds and the banking system, and generally is not intended for the protection of shareholders. Proposals are frequently introduced to change federal and state laws and regulations applicable to us, and new laws or regulations or changes to existing laws and regulations (including changes in interpretations or enforcement) could materially affect our financial condition or results of operations or prospects. The likelihood and timing of any such changes and the impact such changes might have on us are impossible to determine with any certainty. Descriptions of applicable statutes and regulations are brief summaries, do not purport to be complete, and are qualified in their entirety by reference to such statutes and regulations.

General

We are a bank holding company and have elected to be a financial holding company under the regulations of the Board of Governors of the Federal Reserve System (the “FRB”). We are subject to examination and supervision by the FRB pursuant to the Bank Holding Company Act of 1956, as amended (the “BHCA”), and are required to file reports and other information with the FRB regarding our business operations and the business operations of our subsidiaries.

Generally, the BHCA provides for “umbrella” regulation of bank holding companies by the FRB and functional regulation of holding company subsidiaries by applicable regulatory agencies. The BHCA, however, requires the FRB to examine any bank holding company subsidiary, other than a depository institution, engaged in activities permissible for a depository institution. The FRB is also granted the authority, in certain circumstances, to require reports of, and to examine and adopt rules applicable to, any bank holding company subsidiary.

In general, the BHCA and the FRB’s regulations limit the nonbanking activities permissible for bank holding companies to those activities that the FRB has determined to be so closely related to banking or managing or controlling banks to be a proper incident thereto. In addition, a bank holding company that has elected to be a financial holding company, such as the Company, may engage in, or acquire and retain shares of companies engaged in, a broader range of activities that are considered (i) “financial in nature” (as defined by the Gramm-Leach-Bliley Act of 1999 and FRB regulations) or incidental to such financial activities (as determined by the FRB in consultation with the Secretary of the Treasury), or (ii) complementary to a financial activity and do not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally. These activities include, among other things, securities underwriting, dealing and market-making, sponsoring mutual funds and investment companies, insurance underwriting and agency activities, and merchant banking. Refer to “Holding Company Regulation - Financial Holding Company Status” below.

Because we are a public company, we are also subject to regulation by the Securities and Exchange Commission (the “SEC”). The SEC has established three categories of registrants for the purpose of filing periodic and annual reports. Under these regulations, we are considered to be a “large accelerated filer” and, as such, must comply with SEC large accelerated reporting requirements.

As a Louisiana-chartered commercial bank and a member of the Federal Reserve System, IBERIABANK is subject to regulation, supervision and examination by the Office of Financial Institutions of the State of Louisiana (the “OFI”), IBERIABANK’s chartering authority, and the FRB, IBERIABANK’s primary federal regulator. IBERIABANK is also subject to regulation and supervision in certain respects by the Consumer Financial Protection Bureau (the "CFPB") as well as to regulation by the Federal Deposit Insurance Corporation (the “FDIC”), which insures the deposits of IBERIABANK to the maximum extent permitted by law.

State and federal laws govern the activities in which IBERIABANK may engage, the investments it may make and the aggregate amount of loans that may be granted to one borrower. Various consumer and compliance laws and regulations also apply to IBERIABANK’s operations.

The banking industry is affected by the monetary and fiscal policies of the FRB. An important function of the FRB is to regulate the national supply of bank credit to moderate recessions and curb inflation. Among the instruments of monetary policy used by the FRB to implement its objectives are: open-market operations in U.S. government securities, changes in the discount rate and the federal funds rate (which is the rate banks charge each other for overnight borrowings) and changes in reserve requirements on bank deposits.

3

In addition to federal and state banking laws and regulations, the Company, IBERIABANK, and certain of their subsidiaries and affiliates, including those that engage in securities brokerage and insurance activities, are subject to other federal and state laws and regulations, and supervision and examination by other state and federal regulatory agencies, including the Financial Industry Regulatory Authority (“FINRA”), the U.S. Department of Housing and Urban Development, the SEC, and various state insurance and securities regulators.

Financial Reform Legislation

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacted in 2010, significantly restructured financial regulation in the United States, including through the creation of a new resolution authority, mandating higher capital and liquidity requirements and directing changes in the way banks are assessed for federal deposit insurance, as well as through numerous other provisions intended to strengthen the financial services sector. The changes made by the Dodd-Frank Act have substantially affected the lending, deposit, investment and trading activities of banks and bank holding companies. The changes that have been most significant to the operations of the Company and IBERIABANK include the following:

• The establishment of the CFPB, which has extensive regulatory and enforcement powers over consumer financial products and services. IBERIABANK is subject to numerous consumer financial protection regulations administered by the CFPB, and is also subject to CFPB supervision and examination with respect to its compliance with such regulations.

• Requiring the FRB to establish a cap on the rate merchants pay banks for electronic clearing of debit transactions (i.e., the interchange rate). The FRB’s regulation implementing this provision severely limited the interchange fees that banks charge merchants for debit card transactions, starting in late 2011. As a result of the interchange fee structure imposed by such regulation, our electronic banking income was and continues to be negatively impacted.

• Prohibitions and restrictions on the ability of a banking entity to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund (known as the "Volcker Rule").

• Imposition of additional corporate governance and executive compensation disclosure requirements on companies subject to the Securities Exchange Act of 1934.

The Economic Growth, Regulatory Relief, and Consumer Protection Act (the “Economic Growth Act”), which was enacted in May 2018, modestly scales back certain requirements of the Dodd-Frank Act and provides other regulatory relief. While the Economic Growth Act’s provisions primarily benefit banks and bank holding companies with $10 billion or less in assets, certain key provisions are beneficial to mid-sized bank holding companies and financial institutions like the Company and IBERIABANK. These include:

• Elimination of supervisory stress testing and company-run stress testing for bank holding companies with less than $100 billion in assets;

• Prohibiting federal banking regulators from imposing higher capital standards on High Volatility Commercial Real Estate exposures unless they are for acquisition, development or construction;

• Exempting from appraisal requirements certain transactions involving real property in rural areas and valued at less than $400,000; and

• Requiring the CFPB to provide guidance on how the Truth in Lending Act-Real Estate Settlement Procedures Act Integrated Disclosure applies to mortgage assumption transactions and construction-to-permanent home loans, as well the extent to which lenders can rely on model disclosures that do not reflect recent regulatory changes.

While the Economic Growth Act provides some regulatory relief for mid-sized bank holding companies like us, most provisions of the Dodd-Frank Act and its implementing regulations remain in place and will continue to result in additional operating and compliance costs that could have a material adverse effect on our business, financial condition and results of operation. 

4

Regulatory Capital Requirements

Bank holding companies and federally insured banks are required to maintain minimum levels of regulatory capital in accordance with standards established by the federal banking authorities. The FRB and the other banking agencies implemented new capital rules, effective January 1, 2015, that substantially amended the prior capital standards for bank holding companies and banks. These new capital rules (commonly referred to as “Basel III”) reflect, in part, certain standards initially adopted by the Basel Committee on Banking Supervision, as well as implementing requirements contemplated by the Dodd-Frank Act.

The Basel III capital rules require the maintenance of the following minimum capital ratios: 4.5% common equity Tier 1 capital to risk-weighted assets; 6.0% Tier 1 capital to risk-weighted assets; 8.0% Total capital to risk-weighted assets; and 4.0% Tier 1 capital to average consolidated assets (known as the "leverage ratio") as reported on the consolidated financial statements.

Common equity Tier 1 capital (“CET1”) is defined as the sum of common stock and related surplus net of treasury stock, retained earnings, accumulated other comprehensive income (“AOCI”) (which includes all unrealized gains and losses on available for sale debt and equity securities amongst other items) and qualifying minority interest, less applicable regulatory adjustments and deductions that include AOCI. The Basel III capital rules provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that mortgage servicing rights, certain deferred tax assets and certain investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such categories in the aggregate exceed 15% of CET1. The deductions from and adjustments to CET1 were subject to a three-year phase-in period from January 1, 2015 through January 1, 2018. However, by final rule adopted in November 2017 (generally applicable to banking institutions with under $250 billion in assets), the deduction from CET1 of excess mortgage servicing rights, certain deferred tax assets and certain investments in non-consolidated financial entities was fixed at 80% (the deduction amount for 2017).

In addition to establishing minimum regulatory capital requirements, the Basel III capital rules limit dividend payments, stock repurchases and certain discretionary bonus payments to executive officers if a banking organization does not hold a "capital conservation buffer" consisting of 2.5% of CET1 to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. Accordingly, the Company and IBERIABANK are required to maintain (i) a minimum ratio of CET1 to risk-weighted assets of at least 4.5%, plus the 2.5% capital conservation buffer, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7%, (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer, effectively resulting in a minimum Tier 1 capital ratio of 8.5%, (iii) a minimum ratio of Total capital (Tier 1 capital plus supplementary capital ) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer, effectively resulting in a minimum total capital ratio of 10.5% and (iv) a minimum leverage ratio of 4%, calculated as the ratio of Tier 1 capital to average assets (as compared to a current minimum leverage ratio of 3% for certain highly rated banking organizations).

In determining the amount of risk-weighted assets for purposes of calculating risk-based capital ratios, an institution’s assets, including certain off-balance sheet assets (e.g., recourse obligations, direct credit substitutes, residual interests), are multiplied by a risk weight factor assigned by the capital regulations based on the risk deemed inherent in the type of asset. Higher levels of capital are required for asset categories believed to present greater risk. For example, a risk weight of 0% is assigned to cash and U.S. government securities, a risk weight of 50% is generally assigned to prudently underwritten first lien one- to four-family residential mortgages, a risk weight of 100% is assigned to commercial and consumer loans, a risk weight of 150% is assigned to non-residential mortgage loans that are 90 days past due or otherwise on non-accrual status, and a risk weight of between 0% to 600% is assigned to permissible equity interests, depending on certain specified factors.

Failure to meet applicable capital standards could subject the Company or IBERIABANK to a variety of enforcement remedies available to the federal regulatory authorities. These include limitations on the ability to pay dividends, the issuance by the regulatory authorities of a capital directive to increase capital, and the termination of deposit insurance by the FDIC. In addition, a financial institution that fails to meet its capital requirements could be subject to the measures described below under “Federal Banking Regulation - Prompt Corrective Action” as applicable to “under-capitalized” institutions.

The FRB’s capital standards specify that evaluations by the FRB of a bank’s capital adequacy will include an assessment of the exposure to declines in the economic value of the bank’s capital due to changes in interest rates. A joint policy statement of the federal banking agencies highlights key elements of prudent interest rate risk management that rely principally on internal measures of risk exposure and active oversight of risk management activities by senior management.

5

Additional information, including compliance with applicable capital adequacy standards at December 31, 2018, is provided in Note 15 to the Consolidated Financial Statements and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources” in Exhibit 13 to this Form 10-K, which are incorporated herein by reference.

Federal Banking Regulation

FDIC Insurance. The FDIC, through the Deposit Insurance Fund, insures deposit accounts in IBERIABANK up to $250,000 per separately insured deposit ownership right or category. IBERIABANK pays deposit insurance premiums to the FDIC based on assessment rates established by the FDIC. The FDIC may increase or decrease the range of assessments uniformly, except that no adjustment can deviate more than two basis points from the base assessment rate without notice and comment rulemaking.

The Federal Deposit Insurance Act, as amended by the Dodd-Frank Act, provides for a minimum required ratio of the Deposit Insurance Fund’s deposit insurance reserves to estimated insured deposits, or designated reserve ratio (the “DRR”), of 1.15% through September 2020, with a DRR of 1.35% required thereafter. Under the Dodd-Frank Act, insured institutions with assets of $10 billion or more were required to fund the increase in the DRR to 1.35%.

In 2011, the FDIC adopted a rule that provides for the lowering of the insurance assessment rate schedule for all banks as of the quarter after the Deposit Insurance Fund's reserve ratio reaches 1.15%. In addition, FDIC regulations required insured institutions with an assessment base (total assets less tangible capital) of over $10 billion, such as IBERIABANK, to pay surcharge insurance assessments at an annual rate of 4.5 basis points of their assessment base, starting the quarter after the Deposit Insurance Fund's reserve ratio surpasses 1.15% and ending when the reserve ratio reaches 1.35%. The 4.5 basis point surcharge was assessed against each covered institution’s assessment base, less $10 billion.

The Deposit Insurance Fund’s reserve ratio exceeded 1.15% as of June 30, 2016. As a result, the base deposit insurance rates currently range from (i) 1.5 to 30 basis points of an institution’s assessment base for small banks and (ii) 1.5 to 40 basis points for institutions with an assessment base of over $10 billion, such as IBERIABANK, which was also subject to the 4.5 basis point surcharge. On September 30, 2018, the Deposit Insurance Fund's reserve ratio reached 1.36%, exceeding the statutorily required minimum reserve ratio of 1.35% ahead of the September 30, 2020 deadline required under the Dodd-Frank Act. FDIC regulations provide for two changes to deposit insurance assessments upon reaching the minimum: (1) surcharges on insured depository institutions with total consolidated assets of $10 billion or more (large banks) will cease; and (2) small banks will receive assessment credits for the portion of their assessments that contributed to the growth in the reserve ratio from between 1.15% and 1.35%, to be applied when the reserve ratio is at or above 1.38%.

In addition, the Deposit Insurance Funds Act of 1996 authorized the Financing Corporation (“FICO”) to impose assessments on applicable deposits in order to service the interest on FICO’s bond obligations from deposit insurance fund assessments. The amount assessed on individual institutions by FICO is in addition to the amount paid for deposit insurance under the FDIC’s risk-related assessment rate schedules. The last of the remaining bonds issued by FICO will mature in September 2019. IBERIABANK recognized approximately $1.0 million of expense related to its FICO assessments in 2018.

Prompt Corrective Action. The federal banking regulatory authorities are required to take “prompt corrective action” with respect to depository institutions that do not meet minimum capital requirements. The prompt corrective action rules, which apply to IBERIABANK but not the Company, provide for five capital categories: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized.

The prompt corrective action rules were amended effective January 1, 2015 to reflect the previously described Basel III capital standards and to include a CET1 risk-based ratio and to increase certain other capital requirements for the various thresholds. For example, the requirements for IBERIABANK to be considered well-capitalized under the rules are a 5.0% Tier 1 leverage ratio, a 6.5% CET1 risk-based ratio, an 8.0% Tier 1 risk-based capital ratio and a 10.0% total risk-based capital ratio. To be adequately capitalized, the required ratios are 4.0%, 4.5%. 6.0% and 8.0%, respectively.

An institution that is not well-capitalized is generally prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its markets. Any institution that is neither well-capitalized nor adequately capitalized is considered undercapitalized. Under federal statute, the banking agencies must take certain supervisory actions against undercapitalized institutions, the severity of which depends on the degree of undercapitalization. The FRB is authorized to reclassify a well-capitalized institution as adequately capitalized and may require an adequately capitalized institution or an undercapitalized institution to comply with supervisory actions as if it were in the next lower category.

6

Throughout 2018 and as of December 31, 2018, IBERIABANK's regulatory capital ratios were in excess of the levels established for “well-capitalized” institutions.

Volcker Rule. The Dodd-Frank Act’s Volcker Rule, as implemented by interagency regulations, generally prohibits IBERIABANK and its affiliates from (i) engaging in proprietary trading for their own account or (ii) acquiring or retaining an ownership interest in or sponsoring a hedge fund or private equity fund, all subject to certain exceptions. These prohibitions affect the ability of U.S. banking entities to provide investment management products and services that are competitive with nonbanking firms generally and with non-U.S. banking organizations in overseas markets. The rule also effectively prohibits short-term trading strategies by any U.S. banking entity if those strategies involve instruments other than those specifically permitted for trading.

The Volcker Rule regulation provides certain exemptions allowing banking entities to continue underwriting, market-making and hedging activities and trading certain government obligations, as well as various exemptions and exclusions from the definition of “covered funds.” The rule imposes certain reporting and compliance requirements on banking entities that engage in exempted trading activities. The level of required compliance depends on the size of the banking entity and the extent of its trading, with most requirements applicable only to banking entities with $50 billion or more in total consolidated assets, or those with $50 billion or more in worldwide trading assets and liabilities. As a banking entity with more than $10 billion in total assets but less than $10 billion in total trading assets and liabilities, we were required by the Volcker Rule to implement a compliance program appropriate for the types, size, scope, and complexity of our permitted trading activities. To date, the Volcker Rule’s compliance requirements have not had a material effect on our operations.

On May 30, 2018, the federal banking regulators proposed amendments to the Volcker Rule regulations that are intended to streamline compliance burdens under the Volcker Rule. Among the proposed changes, the most important for the Company and IBERIABANK would be the proposal’s reduced compliance requirements for banking entities with  trading assets and liabilities of less than $1 billion. In particular, under the proposal, given our limited trading assets and liabilities, we would be presumed to be in compliance with the Volcker Rule and would not be required to establish or maintain a separate compliance program.

Federal Reserve Bank Membership. IBERIABANK is a member of the Federal Reserve System and is required to buy stock in the Federal Reserve Bank of Atlanta in an amount equal to 6% of IBERIABANK’s paid-in capital and surplus. IBERIABANK receives statutory dividends on the stock it holds in the Federal Reserve Bank in an amount equal to the lesser of (i) the high yield on the 10-year United States Treasury note at the last auction prior to the dividend payment or (ii) 6%.

Transactions with Related Parties. IBERIABANK is subject to the FRB's Regulation W, which comprehensively implements statutory restrictions on transactions between a bank and its affiliates and incorporates the FRB’s interpretations and exemptions relating to Sections 23A and 23B of the Federal Reserve Act.

Section 23A and Regulation W generally place limits on the amount of a bank’s loans or extensions of credit to, investments in, or certain other transactions with affiliates, and on the amount of advances to third parties collateralized by the securities or obligations of affiliates. In general, IBERIABANK’s “affiliates” are IBERIABANK Corporation and our non-bank subsidiaries.

Section 23B and Regulation W generally require a bank’s transactions with its affiliates to be on terms substantially the same, or at least as favorable to the bank, as those prevailing at the time for comparable transactions with non-affiliated companies.

IBERIABANK is also subject to certain restrictions on extensions of credit to executive officers, directors, certain principal shareholders and their related interests. Such extensions of credit must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with third parties and must not involve more than the normal risk of repayment or present other unfavorable features.

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Bank Secrecy Act. The Bank Secrecy Act, as amended by the USA PATRIOT Act of 2001 and its related regulations, requires insured depository institutions, broker-dealers, and certain other financial institutions to have policies, procedures, and controls to detect, prevent, and report money laundering and terrorist financing. The statute and its regulations also provide for information sharing, subject to conditions, between federal law enforcement agencies and financial institutions, as well as among financial institutions, for counter-terrorism purposes. Federal banking regulators are required, when reviewing bank holding company acquisition and bank merger applications, to take into account the effectiveness of the anti-money laundering activities of the applicants. The bank regulatory agencies have increased the regulatory scrutiny of Bank Secrecy Act and anti-money laundering programs maintained by financial institutions. Significant penalties and fines, as well as other supervisory enforcement action, may be imposed on a financial institution for non-compliance with these requirements.

Consumer Protection Laws. In connection with our deposit-taking, lending and other activities, IBERIABANK is subject to a number of federal and state laws designed to protect consumers and promote lending and other financial services to various sectors of the economy and population. The CFPB issues regulations and standards under these federal consumer protection laws, which include, among others, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Equal Credit Opportunity Act, the Truth in Lending Act, the Electronic Fund Transfer Act, the Truth in Savings Act, and the Fair Credit Reporting Act. IBERIABANK’S consumer financial products and services are subject to the regulations of the CFPB and, as an institution with assets of more than $10 billion, IBERIABANK is examined by the CFPB for compliance with these rules.

In addition, customer privacy statutes and regulations limit the ability of the Bank to disclose nonpublic consumer information to non-affiliated third parties. These laws require us to provide notice to our customers regarding privacy policies and practices and to give our customers an option to prevent their non-public personal information from being shared with non-affiliated third parties or with our affiliates.

Community Reinvestment Act. All insured depository institutions have a responsibility under the Community Reinvestment Act of 1977 (the “CRA”) and related federal regulations to help meet the credit needs of their communities, including low- and moderate-income neighborhoods. In connection with its examination of a state-chartered Federal Reserve member bank like IBERIABANK, the FRB is required to assess our record of compliance with the CRA. Such assessment is reviewed by the FRB when the Company or IBERIABANK makes application for approval of an expansionary proposal, such as a merger or other acquisition of another bank or the opening of a new branch office. In addition, in order for a financial holding company to commence any new activity permitted by the BHCA or to acquire a company engaged in any new activity permitted by the BHCA, each insured depository institution subsidiary of the financial holding company must have received a rating of at least “satisfactory” in its most recent examination under the CRA. IBERIABANK received a “satisfactory” CRA rating in its most recent assessment by the FRB.

Incentive Compensation. Guidelines adopted by the federal banking agencies prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director or principal stockholder. In addition, the federal bank regulatory agencies have issued guidance on incentive compensation policies (the “Incentive Compensation Guidance”) intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. The Incentive Compensation Guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management, and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors. Any deficiencies in compensation practices that are identified may be incorporated into the organization’s supervisory ratings, which can affect its ability to make acquisitions or perform other actions. The Incentive Compensation Guidance provides that enforcement actions may be taken against a banking organization if its incentive compensation arrangements or related risk-management control or governance processes pose a risk to the organization’s safety and soundness and the organization is not taking prompt and effective measures to correct the deficiencies.

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The Dodd-Frank Act requires the federal bank regulatory agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities having at least $1 billion in total assets that encourage inappropriate risks by providing an executive officer, employee, director or principal shareholder with excessive compensation, fees, or benefits or that could lead to material financial loss to the entity. In 2016, the federal banking agencies and the SEC issued for comment a proposed interagency rule that would require the reporting of incentive-based compensation arrangements at a covered financial institution when such compensation is excessive, could expose the institution to inappropriate risks, or could potentially lead to material financial loss. The proposed rule, if adopted in final form, would impose no material requirements on institutions with total assets of less than $50 billion, like the Company and IBERIABANK, other than those already applied to such institutions by the Incentive Compensation Guidance. The final rule has not been published, and it is uncertain at this time whether the proposed rule will be issued in final form or whether the agencies will issue a substantially revised proposed rule.

Holding Company Regulation

General. As a bank holding company, we are subject to FRB examination, regulation and periodic reporting under the BHCA. The FRB has broad enforcement powers over bank holding companies and their non-banking subsidiaries. The FRB has authority to prohibit activities that represent unsafe or unsound practices or constitute violations of law, rule, regulation, administrative order or written agreement with a federal regulator. These powers may be exercised through the issuance of cease and desist orders, civil money penalties or other formal or informal actions.

Source of Strength. As a statutory requirement, a bank holding company must act as a source of financial and managerial strength to each of its subsidiary banks and to commit resources to support each such subsidiary bank. Under this source of strength doctrine, the FRB may require a bank holding company to make capital injections into a troubled subsidiary bank. The FRB may charge the bank holding company with engaging in unsafe and unsound practices if it fails to commit resources to such a subsidiary bank or if it undertakes actions that the FRB believes might jeopardize its ability to commit resources to such subsidiary bank. A capital injection may be required at times when the holding company does not have the resources to provide it.

In addition, any loans by a holding company to a subsidiary bank are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary bank. In the event of a bank holding company’s bankruptcy, the bankruptcy trustee will assume any commitment by the holding company to a federal bank regulatory agency to maintain the capital of a subsidiary bank. Moreover, the bankruptcy law provides that claims based on any such commitment will be entitled to a priority of payment over the claims of the institution’s general unsecured creditors, including the holders of its note obligations.

Louisiana law permits the Commissioner of the OFI to require a special assessment of shareholders of a Louisiana-chartered bank whose capital has become impaired to remedy an impairment in such bank’s capital stock. This statute also provides that the Commissioner may suspend a bank’s certificate of authority until the capital is restored. As the sole shareholder of IBERIABANK, we are subject to such statute.

Stress Testing Requirements. As a result of the enactment of the Economic Growth Act in May 2018, the Dodd-Frank Act’s requirement to conduct an annual stress test that projects performance under various economic scenarios no longer applies to the Company, as a bank holding company with less than $100 billion in total consolidated assets. Under the Economic Growth Act, IBERIABANK will become exempt from Dodd-Frank Act stress testing effective November 25, 2019; however, the FRB has extended the deadline for all regulatory requirements related to company-run stress testing for state member banks with average total assets of less than $100 billion until such effective date, thereby effectively exempting IBERIABANK from stress-testing requirements as of the enactment of the Economic Growth Act.

Notwithstanding the Economic Growth Act’s amendment of the Dodd-Frank Act stress testing requirements, the federal banking agencies have indicated through interagency guidance that the capital planning and risk management practices of financial institutions with total assets less than $100 billion would continue to be reviewed through the regular supervisory process.  Although we will continue to monitor our capital consistent with the safety and soundness expectations of the FRB and will continue to use customized stress testing as part of our capital planning process, we no longer conduct company-run stress testing in accordance with the FRB’s requirements under the Dodd-Frank Act.

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Dividends. We are a legal entity separate and distinct from our subsidiaries. The majority of our revenue is from dividends paid to us by IBERIABANK. IBERIABANK is subject to federal and state laws and regulations that limit the amount of dividends it can pay. In addition, we and IBERIABANK are subject to various regulatory restrictions relating to the payment of dividends, including requirements to maintain capital at or above regulatory minimums, and to remain “well-capitalized” under the prompt corrective action rules. The FRB has indicated generally that it may be an unsafe or unsound practice for a bank holding company to pay dividends unless the bank holding company’s net income over the preceding year is sufficient to fund the dividends and the expected rate of earnings retention is consistent with the organization’s capital needs, asset quality and overall financial condition.

In addition to the limitations placed on the payment of dividends at the holding company level, there are various legal and regulatory limits on the extent to which IBERIABANK may pay dividends or otherwise supply funds to us. IBERIABANK is subject to laws and regulations of Louisiana, which place certain restrictions on the payment of dividends. Additionally, as a member of the Federal Reserve System, IBERIABANK is subject to FRB dividend regulations, which provide that a state member bank must receive prior FRB approval for a dividend if the total capital distributions of a state member bank, plus the proposed dividend, exceed the sum of the bank's net income during the current calendar year and the retained net income of the prior two calendar years.

We do not expect that these laws, regulations or policies will materially affect our ability to pay dividends. Additional information is provided in Note 13 and Note 15 to the Consolidated Financial Statements incorporated herein by reference.

Acquisitions. We comply with numerous laws relating to our acquisition activity. Under the BHCA, we are required to obtain the prior approval of the FRB to acquire ownership or control of more than 5% of the voting shares or substantially all of the assets of any bank holding company or bank or merge or consolidate with another bank holding company. Federal law authorizes bank holding companies to make interstate acquisitions of banks and bank holding companies without geographic limitation. Furthermore, a bank headquartered in one state is authorized to merge with a bank headquartered in another state, subject to any state requirement that the target bank shall have been in existence and operating for a minimum period of time, not to exceed five years; and subject to certain deposit market-share limitations. In addition, the Dodd-Frank Act provided authority for any bank to open de novo branches in any other state as if it were chartered in that state.

During 2018, the Company expanded its presence in Florida through the acquisition of Gibraltar Private Bank & Trust Company on March 23, 2018. In addition, the Company's subsidiary, Lenders Title Company, acquired SolomonParks Title & Escrow, LLC on January 12, 2018 which expanded our presence in Tennessee. Additional information is provided in Note 3 to the Consolidated Financial Statements incorporated herein by reference.

Financial Holding Company Status. A bank holding company meeting certain requirements may qualify and elect to become a financial holding company, permitting the bank holding company to engage in additional activities that are financial in nature or incidental or complementary to financial activity. A bank holding company that elects to be treated as a financial holding company is authorized by the BHCA to engage in a number of financial activities previously impermissible for bank holding companies, including equity securities underwriting, dealing and market making; sponsoring mutual funds and investment companies; insurance underwriting and agency; and merchant banking activities through securities or insurance affiliates; and insurance company portfolio investments. The BHCA also permits the FRB to authorize additional activities for financial holding companies if they are “financial in nature” or “incidental” to financial activities. The Company has elected financial holding company status.

For a bank holding company to be eligible for financial holding company status, the holding company must be both “well-capitalized” and “well-managed” under applicable regulatory standards, and all of its subsidiary banks also must be “well-capitalized” and “well-managed” and must have received at least a satisfactory rating on such institution’s most recent examination under the CRA. A financial holding company that continues to meet all of such requirements may engage directly or indirectly in activities considered financial in nature (discussed above), either de novo or by acquisition, as long as it gives the FRB after-the-fact notice of the new activities.

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Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act of 2002, or the SOX Act, implements a broad range of corporate governance, accounting and disclosure requirements for public companies, and also for their directors and officers. SEC rules adopted to implement the SOX Act requirements require our chief executive and chief financial officer to certify certain financial and other information included in our quarterly and annual reports. The rules also require these officers to certify that they are responsible for establishing, maintaining and regularly evaluating the effectiveness of our financial reporting and disclosure controls and procedures; that they have made certain disclosures to the auditors and to the Audit Committee of the board of directors about our controls and procedures; and that they have included information in their quarterly and annual filings about their evaluation and whether there have been significant changes to the controls and procedures or other factors which would significantly impact these controls subsequent to their evaluation. Section 404 of the SOX Act requires management to undertake an assessment of the adequacy and effectiveness of our internal controls over financial reporting and requires our auditors to attest to and report on the effectiveness of these controls. See Item 9A. - “Controls and Procedures” for our evaluation of disclosure controls and procedures. The certifications required by Sections 302 and 906 of the SOX Act also accompany this Report on Form 10-K.

Other Regulatory Matters. We and our subsidiaries and affiliates are subject to numerous examinations by federal and state banking regulators, as well as the SEC, FINRA, NASDAQ Stock Market, and various state insurance and securities regulators.

Corporate Governance

Information with respect to our corporate governance is available on our web site, www.iberiabank.com, and includes:

•Corporate Governance Guidelines

•Nominating and Corporate Governance Committee Charter

•Compensation Committee Charter

•Audit Committee Charter

•Board Risk Committee Charter

•Investment Committee Charter

•Code of Ethics and Conflicts of Interest Policy

•Code of Ethics for the Chief Executive Officer and Senior Financial Officers

We intend to disclose any waiver of or substantial amendment to the Codes of Ethics applicable to directors and executive officers on our web site at www.iberiabank.com.

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Item 1A. Risk Factors.

There are risks, many beyond our control, which could cause our results to differ significantly from management’s expectations. Some of these risk factors are described below. Any factor described in this Report on Form 10-K could, by itself or together with one or more other factors, adversely affect our business, results of operations and/or financial condition. Additional risks and uncertainties not currently known to us or that we currently consider to not be material also may materially and adversely affect us. In assessing these risks, you should also refer to other information disclosed in our SEC filings, including the financial statements and notes thereto.

MARKET AND LIQUIDITY RISKS

Challenging economic conditions or volatility in the financial markets could have a material adverse impact on our business, leading to diminished financial results and position.

Our profitability depends to a large extent on IBERIABANK’s net interest income, which is the difference between income on interest-earning assets, such as loans and investment securities, and expense on interest-bearing liabilities, such as deposits and borrowings. We are unable to predict changes in market interest rates, which are affected by many factors beyond our control, including inflation, recession, unemployment, money supply, competition for loans and deposits, domestic and international events and changes in the United States and other financial markets.

Although the general economic environment has shown improvement since the end of the economic recession in June 2009, there can be no assurance that improvement will continue. Economic growth has been slow and uneven, and continuing concerns over the federal deficit and government spending have contributed to uncertain conditions for the economy. The change in domestic government administration in early 2017 may continue to have positive ramifications toward mitigating adverse impacts on the business, including, but not limited to: higher levels of interest rates which could continue to rise in the future, potential for greater loan fee revenues from commercial/business capital investment, reduction in corporate tax rate levels by the tax reform legislation enacted in December 2017, and relaxation of certain financial regulatory reform measures.

However, a return of recessionary conditions, including declines in real estate values and sales volumes, an increase in unemployment, and/or negative developments in the domestic and international credit markets may significantly affect economic conditions in the market areas in which we do business, the value of our loans and investments, supply of and demand for deposits, and our ongoing operations, costs and profitability.

In addition, geopolitical matters, including international political unrest, foreign trade disputes, and slow growth in the global economy, as well as acts of terrorism, war and other violence could result in further disruptions in the financial markets. These negative events could have a material adverse effect on our results of operations and financial condition, including our liquidity position, and may affect our ability to access capital.

The geographic concentration of our markets makes our business highly susceptible to local economic conditions. Adverse economic factors affecting particular geographies or industries, especially the southeastern United States, could have a negative effect on our customers and their ability to make payments to us.

Unlike larger organizations that are more geographically diversified, our offices are primarily concentrated in selected markets in the southeastern United States. As a result of this geographic concentration, our financial results depend largely upon economic conditions in these market areas.

A downturn in segments of the commercial and residential real estate industries in our markets due to adverse economic factors affecting particular industries could have an adverse effect on our customers. Deterioration in economic conditions in the markets we serve could result in one or more of the following:

• an increase in loan delinquencies;

• an increase in problem assets and foreclosures;

• a decrease in the demand for our products and services;

• a decrease in the value of collateral for loans, especially real estate, in turn reducing customers’ borrowing power, the value of assets associated with problem loans and collateral coverage; and/or

• a decrease in supply of customer deposits, which could impact our liquidity.

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The Government’s responses to economic conditions may adversely affect our financial performance.

The Federal Open Market Committee (“FOMC”) of the Federal Reserve Board (“FRB”), in an attempt to stimulate the overall economy, has, among other things, kept interest rates low through its targeted federal funds rate. In December 2016, the FOMC voted to raise the target federal funds rate for only the second time since 2006. The FOMC voted to raise the target federal funds rate multiple times in both 2017 and 2018. The FOMC has now raised rates by two-and-a-quarter percentage points since the financial crisis in 2008, a sign of its increased confidence in the health of the economy. In addition to increasing the target federal funds rate, the FRB also began to remove accommodation in 2017 by reducing the amount of debt held on its balance sheet. The FRB is expected to continue to wind-down its asset purchase program in 2019. While the FOMC continues to observe sustained economic activity, strong labor market conditions, and stable inflation, it has signaled a pause in its recent efforts to increase the federal funds rate. As a result, the potential for additional gradual increases in the federal funds rate in 2019 is uncertain. Additional increases in the federal funds rate and unwind of its balance sheet could cause overall interest rates to rise, which may negatively impact the U.S. real estate markets and affect deposit growth and pricing. In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of collateral securing loans, which could negatively affect our financial performance.

Changes in interest rates and other factors beyond our control may adversely affect our earnings and financial condition, and we may incur losses if we are unable to successfully manage interest rate risk.

Our net interest income may be reduced if more interest-earning assets than interest-bearing liabilities reprice or mature during a period when interest rates are declining, or more interest-bearing liabilities than interest-earning assets reprice or mature during a period when interest rates are rising.

Changes in the difference between short- and long-term interest rates may also harm our business. For example, short-term deposits may be used to fund longer-term loans. When differences between short-term and long-term interest rates shrink or disappear, as is possible when the FOMC is tightening monetary policy by raising the target fed funds rate, the spread between rates paid on deposits and received on loans could narrow significantly, thereby decreasing our net interest income.

If market interest rates rise rapidly, interest rate adjustment caps may limit increases in interest rates on adjustable rate loans, thereby reducing our net interest income. Similarly, interest rate adjustment floors may limit the upside benefit to increases in interest rates. In the event that market interest rates fall rapidly, loan and bond prepayments may occur as borrowers refinance and pay off debt prior to stated maturity. As a result, yields on earning assets could decline, thereby reducing net interest income. If an unprecedented negative rate environment were to occur, our operations and margin would be adversely impacted and could result in increased credit losses.

We attempt to manage our risk from changes in market interest rates by adjusting the rates, maturity, repricing characteristics, and balances of the different types of interest-earning assets and interest-bearing liabilities. Interest rate risk management techniques are not exact. We employ the use of models and modeling techniques to quantify the levels of risks to net interest income, which inherently involve the use of assumptions, judgments, and estimates. While we strive to ensure the accuracy of our modeled interest rate risk profile, there are inherent limitations and imprecisions in this determination and actual results may differ. As of December 31, 2018, a 100 basis point instantaneous and parallel upward shift in interest rates was estimated to increase net interest income over 12 months by approximately 1.2%. Similarly, a 100 basis point decrease in interest rates was expected to decrease net interest income by 3.7% over the same period.

At December 31, 2018, approximately 40% of our total loan portfolio had fixed interest rates. Eliminating fixed rate loans that mature within a one-year time frame decreased this percentage to approximately 28% at December 31, 2018. About 96% of the investment portfolio had fixed interest rates as of December 31, 2018. Approximately 69% of our time deposit base and 73% of our Federal Home Loan Bank ("FHLB") borrowings will mature and/or re-price within 12 months.

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If we or our subsidiaries were unable to borrow funds through access to capital markets, we may not be able to meet the cash flow requirements of our depositors and borrowers, or the operating cash needs to fund corporate expansion and other corporate activities.

Liquidity is the ability to meet cash flow needs on a timely basis at a reasonable cost. IBERIABANK’s liquidity is used primarily to fund loans and to repay deposit liabilities as they become due or are demanded by customers. Liquidity policies and limits are established by our Board of Directors. Management and the Investment Committee regularly monitor the overall liquidity position of IBERIABANK and the Company to ensure that various alternative strategies exist to cover unanticipated events that could affect liquidity. Management and the Investment Committee also establish policies and monitor guidelines to diversify IBERIABANK’s funding sources to avoid concentrations in any one market source. Funding sources include federal funds purchased, securities sold under repurchase agreements, customer deposits, and short- and long-term debt. IBERIABANK is also a member of the FHLB System, which provides funding through advances to members that are collateralized with mortgage-related assets.

We maintain a portfolio of securities that can be used as a secondary source of liquidity. There are other sources of liquidity available to us should they be needed. These sources include sales or securitizations of loans, our ability to acquire additional national market, non-core or brokered deposits, additional collateralized borrowings such as the FRB discount window, the issuance and sale of debt securities, and the issuance and sale of preferred or common securities in public or private offerings. Amounts available under our existing credit facilities as of December 31, 2018 consist of $7.0 billion in FHLB availability. The Company also had various funding arrangements with the Federal discount window and commercial banks providing up to $331.2 million in the form of federal funds and other lines of credit.

If we were unable to access any of these funding sources when needed, we might be unable to meet customers’ needs, which could adversely impact our financial condition, results of operations, cash flows, and level of regulatory-qualifying capital.

Additionally, the Company is often the recipient of dividends from its subsidiaries, including IBERIABANK, and may rely on these dividends as a source of cash flow. The amount of future dividends from IBERIABANK is dependent upon its performance and could be impacted by future unanticipated economic conditions and regulatory limitations. Such events could impact the Company’s ability to declare future dividends and ultimately its solvency if other sources of cash flows were not available.

Deposit run-off or a change in deposit mix could increase our funding costs.

A major portion of our net income comes from our interest rate spread, which is the difference between the interest rates we pay on amounts used to fund assets and the interest rates and fees we receive on our interest-earning assets. We rely on deposits as a stable, low-cost source of funding for our interest-earning assets. We must compete with other banks and financial institutions for deposits. If our competitors raise rates on their deposits, we may face deposit attrition or experience higher funding costs by increasing our deposit rates in order to maintain our customer deposit base. Higher funding costs would increase interest expense, thereby reducing our net interest margin, net interest income, and net income. As of December 31, 2018, approximately 28% of our deposits were non-interest-bearing.

Market perceptions of our credit risk could impair our liquidity, cash flows, financial condition and operating results.

Our liquidity and borrowing costs are largely impacted by our credit risk. Market perception could have an adverse effect on our ability to access capital markets or borrow funds and increase the costs of capital and borrowings. In addition, deterioration in our credit risk, whether actual or perceived, could trigger unfavorable contractual obligations, resulting in the requirement to post additional collateral or realize credit-related contingent features.

CREDIT RISKS

Our business is highly susceptible to credit risk.

As a lender, we are exposed to the risk that our customers will be unable to repay their loans according to their terms and that the collateral securing the payment of their loans (if any) may not be sufficient to satisfy our customers’ loan obligations in the event of default. Credit losses could have a material adverse effect on our operating results.

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As of December 31, 2018, our total loan portfolio was approximately $22.5 billion, or 73% of total assets. At that date, the major components of our loan portfolio comprised 67% commercial loans (of which 62% is commercial real estate and 38% is commercial and industrial), 19% mortgage loans (primarily residential 1-4 family mortgage loans), and 13% consumer loans (primarily home equity). Our credit risk with respect to our consumer installment and commercial loan portfolios relates principally to the general creditworthiness of individuals and businesses within our local market areas. Our credit risk with respect to our residential and commercial real estate mortgage and construction loan portfolios relates principally to the general creditworthiness of individuals and businesses, the value of real estate as collateral, and guarantors serving as security for the repayment of the loans.

Our loan portfolio has been and will continue to be affected by real estate markets. Real estate industry pricing dynamics in the geographical markets we operate can vary from year to year, and with respect to construction, can vary between project funding and project completion. Asset values to which we underwrite loans can fluctuate from year to year and impact collateral values and the ability of our borrowers to repay their loans. An additional risk in connection with loans secured by commercial real estate is the effect of unknown or unexpected environmental contamination, which could make the real estate effectively unmarketable or otherwise significantly reduce its value as security, or could expose us to remediation liabilities as the lender. We make credit and reserve decisions based on the current conditions of borrowers or projects combined with our expectations for the future. If a deterioration in economic conditions or prices beyond our expectations were to occur in any of the market areas we serve, we could experience higher charge-offs and delinquencies above amounts provided for in the allowance for credit losses. As such, our earnings could be adversely affected through higher than anticipated provisions for loan losses.

We frequently participate in group lending transactions, such as participations or syndications, which include shared national credits. These transactions often have a lead bank that is responsible for servicing the overall credit facility. In that capacity, the lead bank is responsible for the ongoing monitoring of the borrower's financial performance, covenant compliance and collateral verification, among other duties. In transactions where IBERIABANK serves as the lead, we are obligated to properly manage certain credits on behalf of other banks. In other group lending transactions, we must rely on another bank serving in the lead capacity to execute the respective duties and communicate relevant information on the borrower's status. In those instances where we are not the lead bank, we may not receive information that impacts our risk rating process in a timely manner, and/or have limited ability to influence situations that require resolution of a problem asset, which could result in unforeseen credit losses. In addition, shared national credits are a specific focus of regulatory examinations that can result in directed downgrades, including placement of a credit on non-accrual status, reversal of interest previously recorded as income and/or charge-offs.

Our allowance for credit losses may not be sufficient to cover actual credit losses, which could adversely affect our earnings. Events unforeseen by us could result in higher loan losses impacting our results of operations.

We maintain an allowance for credit losses (“allowance”) in an attempt to cover losses inherent in our loan portfolio (funded and unfunded). Additional loan losses will likely occur in the future and may occur at a rate greater than we have experienced to date based on unanticipated adverse changes and/or new facts and circumstances which are currently not available to management as of the respective reporting period. Increases in the allowance will result in decreases in our earnings.

The determination of the allowance, which represents management’s estimate of probable losses inherent in our credit portfolio, involves a high degree of judgment and complexity, and is subject to scrutiny by bank regulators. If our assumptions and judgments require modifications (e.g., creditworthiness), our current allowance may not be sufficient and adjustments may be necessary to allow for different economic conditions or adverse developments in our loan portfolio, which may have a significant impact on our financial statements. Further, changes in market factors, such as interest rates or commodity prices, could lead to increases in the allowance. While management monitors these market dynamics carefully, adverse changes to these factors could be unforeseen by management and would result in higher levels of allowance and credit losses. For example, unanticipated adjustments to management’s current expectations could have an adverse impact to the allowance as the borrower’s ability to repay within the terms of the contractual agreement may be reduced due to a lack of sufficient free cash flows, estimated collateral values may decline given the lack of market demand for collateralized assets, and the Company’s ability to monetize guarantor support may be impaired as guarantor net worth may diminish.

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Commercial and commercial real estate loans generally are viewed as having more risk of default than residential real estate loans or other loans or investments. These types of loans are also typically larger than residential real estate loans and other consumer loans. Because the loan portfolio contains a significant number of commercial and commercial real estate loans with relatively large balances, the deterioration of a material amount of these loans may cause a significant increase in non-performing assets, troubled debt restructurings ("TDRs") and/or past due loans. An increase in non-performing assets, TDRs, and/or past due loans could result in a loss of earnings, an increase in the provision for credit losses, or an increase in loan charge-offs, which would have an adverse impact on our results of operations and financial condition. Our emphasis on loan growth and on increasing our portfolio of multi-family, commercial business and commercial real estate loans, as well as any future credit deterioration, could also require us to increase our allowance further in the future.

The Company may be required to increase its allowance for credit losses as a result of a recently issued accounting standard.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-13 (“ASU 2016-13”), Financial Instruments - Credit Losses. This accounting standard replaces the current incurred loss accounting model with a current expected credit loss approach (“CECL”) for financial instruments measured at amortized cost and other commitments to extend credit. The amendments made by ASU 2016-13 require entities to consider all available relevant information when estimating current expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses is to reflect the portion of the amortized cost basis that the entity does not expect to collect. The amendments also eliminate the current accounting model for purchased credit impaired loans and debt securities. While the CECL model does not apply to available for sale debt securities, ASU 2016-13 does require entities to record an allowance when recognizing credit losses for available-for-sale securities, rather than reduce the amortized cost of the securities by direct write-offs.

The amendments in ASU 2016-13 will be effective for fiscal years beginning after December 15, 2019. For most debt securities, the transition approach requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period the guidance is effective. For other-than-temporarily impaired debt securities, the guidance will be applied prospectively. The Company will record a one-time adjustment to its credit loss allowance, as of the beginning of the first quarter of 2020, equal to the difference between the amounts of its credit loss allowance under the incurred loss methodology and CECL. Moreover, the new accounting standard is likely, as a result of its requirement to estimate and recognize expected credit losses on new assets, to introduce greater volatility in our allowance for loan losses. The Company is currently evaluating the magnitude of the one-time cumulative adjustment to its allowance and of the ongoing impact of the CECL model on its loan loss allowance and results of operations.

We earn a significant portion of our non-interest revenue through sales of residential mortgages in the secondary market. We are exposed to counterparty credit, market, repurchase and other risks associated with these activities.

The Company is exposed to counterparty credit risk in the normal course of mortgage banking activities as well as market risk when engaging in these activities that is greatly impacted by the amount of liquidity in the secondary markets and changes in interest rates. We attempt to hedge our market risk based on modeling assumptions. The performance of these hedges could result in a deviation from our expectation and our operating results could be materially adversely impacted. Additionally, the Company retains repurchase risk associated with sales of these loans that is related to the Company’s residential mortgage loan underwriting and closing practices. Increases in claims under these repurchase or make-whole demands, which typically arise when a borrower defaults, could have a material impact on our ability to continue participating in these types of activities as well as a material impact on our financial condition, results of operations, and cash flows.

Declines in the value of certain investment securities could require write-downs, which would reduce our earnings.

Our securities portfolio includes securities that are subject to declines in value due to negative perceptions about the health of the financial sector in general and the lack of liquidity for securities that are real estate related. A prolonged decline in the value of these or other securities could result in an other-than-temporary impairment write-down, which would reduce our earnings. In the case of issuer default, a permanent impairment could be required that would reduce our earnings.

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REGULATORY/COMPLIANCE RISK

Changes in government regulations and legislation could limit our future performance and growth.

The banking industry is heavily regulated. We are subject to examination, supervision and comprehensive regulation by various federal and state agencies. The cost of compliance is significant and restricts certain of our activities. Banking regulations are primarily intended to protect the federal deposit insurance fund, depositors, customers and the banking system as a whole, not shareholders. The burdens imposed by federal and state regulations put banks at a competitive disadvantage compared to less regulated competitors, such as finance companies, mortgage banking companies and leasing companies. Changes in the laws, regulations and regulatory practices affecting the banking industry may increase our costs of doing business or otherwise adversely affect us and create competitive advantages for others.

Since the 2008 financial crisis, financial institutions generally have been subjected to increased regulation and scrutiny from federal regulatory authorities. Changes to the statutory and regulatory framework governing our operations, including the passage and continued implementation of the Dodd-Frank Act, have greatly revised the laws and regulations under which we operate and have had, and may continue to have, a material impact on our operations, particularly through increased regulatory burdens and compliance costs. Recent political developments, including the change in administration in the U.S., have added additional uncertainty to the implementation, scope and timing of regulatory reforms.

Future changes to the laws and regulations applicable to the financial industry, if enacted or adopted, may impact our profitability or financial condition, require more oversight or change certain of our business practices, and expose us to additional costs, including increased compliance costs. We cannot predict whether any such legislative or regulatory changes, including those that could benefit our business and results of operations, will be enacted or adopted or, if they are, whether they will have a material effect on us.

We have become subject to more stringent regulatory capital requirements, which may limit our operations and potential growth or adversely affect our ability to pay dividends or to repurchase shares.

The Company and IBERIABANK are subject to the comprehensive, consolidated supervision and regulation of the FRB and the OFI, including risk-based and leverage capital requirements. We must maintain certain risk-based and leverage capital ratios as required by our banking regulators, which can change depending on general economic conditions and the Company’s particular condition, risk profile, growth plans, and regulatory capital adequacy guidelines. If at any time we fail to meet minimum established capital guidelines and/or other regulatory requirements, our financial condition would be materially and adversely affected.

In addition, the capital adequacy standards applicable to the Company and IBERIABANK under the BASEL III Capital Rules require us to satisfy more stringent capital and liquidity standards than in the past. These requirements, and any other new regulations, could result in lower returns, regulatory actions if we were unable to comply with such requirements, and adversely affect our ability to pay dividends or repurchase shares, or to raise capital, including in ways that may adversely affect our financial condition or results of operations. Compliance with current or new capital requirements, including leverage ratios, may limit operations that require the intensive use of capital and could adversely affect our ability to expand or maintain present business levels. Additional information, including the Company’s and IBERIABANK’s compliance with applicable capital adequacy standards at December 31, 2018, is provided in Note 15 to the Consolidated Financial Statements and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources” incorporated herein by reference.

We are required to act as a source of financial and managerial strength for our bank in times of stress.

Under federal law, we are required to act as a source of financial and managerial strength to our bank, and to commit resources to support our bank if necessary. We may be required to commit additional resources to our bank at times when we may not be in a financial position to provide such resources or when it may not be in our, or our shareholders' or our creditors’ best interests to do so. Providing such support is more likely during times of financial stress for us and our bank, which may make any capital we are required to raise to provide such support more expensive than it might otherwise be. In addition, any capital loans we make to our bank are subordinate in right of payment to depositors and to certain other indebtedness of our bank. In the event of our bankruptcy, any commitment by us to a federal banking regulator to maintain the capital of our bank will be assumed by the bankruptcy trustee and entitled to priority of payment.

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Non-compliance with the USA PATRIOT Act, the Bank Secrecy Act or other laws and regulations could result in fines or sanctions against us.

The Bank Secrecy Act, as amended by the USA PATRIOT Act of 2001, requires financial institutions to design and implement programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury Department's Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Failure to comply with these regulations could result in fines or sanctions, including restrictions on conducting acquisitions or establishing new branches. While we have developed policies and procedures designed to assist in compliance with these laws and regulations, these policies and procedures may not be effective in preventing violations of these laws and regulations. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us, which could have a material adverse effect on our business, financial condition or results of operations.

Our use of third party vendors and our other ongoing third party business relationships are subject to increasing regulatory requirements and attention.

We regularly use third party vendors as part of our business. We also have substantial ongoing business relationships with other third parties. These types of third party relationships are subject to increasingly demanding regulatory requirements and attention by our federal bank regulators. Regulation requires us to perform due diligence and ongoing monitoring and control over our third party vendors and other ongoing third party business relationships. In certain cases we may be required to renegotiate our agreements with these vendors to meet these requirements, which could increase our costs. We expect that our regulators will hold us responsible for deficiencies in our oversight and control of our third party relationships and in the performance of the parties with which we have these relationships. As a result, if our regulators conclude that we have not exercised adequate oversight and control over our third party vendors or other ongoing third party business relationships or that such third parties have not performed appropriately, we could be subject to enforcement actions, including civil money penalties or other administrative or judicial penalties or fines as well as requirements for customer remediation, any of which could have a material adverse effect on our business, financial condition or results of operations.

Possible future increases in FDIC deposit insurance premiums would adversely affect our earnings.

Our deposits are insured by the FDIC up to legal limits and, accordingly, we are subject to FDIC deposit insurance assessments. We generally cannot control the amount of assessments we will be required to pay for FDIC insurance. If there are financial institution failures in the future, we may be required to pay higher FDIC assessments than we currently do, or the FDIC may charge additional special assessments or require future prepayments. Increases in our assessment may also be required in the future to maintain the FDIC’s designated reserve ratio at the required level. These potential increases in deposit assessments or special assessments may adversely affect our business, financial condition or results of operations. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Non-interest Expense” in Exhibit 13 to this Form 10-K.

We may be adversely affected by recent changes in U.S. tax laws.

We are subject to federal and applicable state tax regulations. Such tax regulations are often complex and require interpretation and changes in these regulations could negatively impact our results of operations. In the normal course of business, we are routinely subject to examinations and challenges from federal and applicable state tax authorities regarding the amount of taxes due in connection with investments we have made and the business in which we have engaged. Recently, federal and state taxing authorities have become increasingly aggressive in challenging tax positions taken by financial institutions. These tax positions may relate to tax compliance, sales and use, franchise, gross receipts, payroll, property and income tax issues, including tax base, apportionment and tax credit planning. The challenges made by tax authorities may result in adjustments to the timing or amount of taxable income or deductions or the allocation of income among tax jurisdictions. If any such challenges are made and are not resolved in our favor, they could have a material adverse effect on our business, financial condition and results of operations.

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The enactment of the Tax Cuts and Jobs Act (the “Tax Act”) on December 22, 2017 made significant changes to the Internal Revenue Code, many of which are highly complex and may require interpretations and implementing regulations. We may incur additional meaningful expenses (including professional fees) as the Tax Act is implemented and as positions are audited by the IRS. Furthermore, the full impact of the Tax Act on us and our customers remains uncertain, creating uncertainty and risk related to our customers' future demand for credit and our future results. The decrease in federal income tax rates on businesses generally could spur additional economic activity, which may encourage additional borrowing. At the same time, some customers may elect to use their additional cash flow from lower taxes to fund their existing levels of activity, decreasing borrowing needs. In addition, the elimination of the federal income tax deductibility of business interest expense for a significant number of our customers will effectively increase the cost of borrowing and may make equity or hybrid funding relatively more attractive. This may have a long-term negative impact on business consumer borrowing.

Our reported financial results depend on our management’s selection of accounting methods and certain assumptions and estimates, and there may be changes in accounting policies or accounting standards that could adversely affect our financial condition and results of operations.

Our accounting policies and assumptions are fundamental to our reported financial condition and results of operations. Our management must exercise judgment in selecting and applying many of these accounting policies and methods so they comply with generally accepted accounting principles and reflect management’s judgment of the most appropriate manner to report our financial condition and results. Our management must also exercise judgment in selecting assumptions and estimates inherent in deriving certain financial statement line items. In some cases, management must select the accounting policy, method, assumption and/or estimate to apply from two or more alternatives, any of which may be reasonable under the circumstances, yet may result in our reporting materially different results than would have been reported under another acceptable alternative.

From time to time, the FASB and the SEC change the financial accounting and reporting standards that govern the form and content of our external financial statements.  Recently, the FASB has finalized new accounting standard updates related to the calculation of the allowance for credit losses and accounting for leases, amongst other ancillary finalized updates.  A discussion of the recent significant accounting standard updates which have been issued are included in Note 2 to the Consolidated Financial Statements incorporated herein by reference. Accounting standard updates have the potential to alter previously issued or future financial statements depending on their deviation from current standards or industry practices and the implementation method prescribed by the FASB.  In addition, accounting standard setters and those who interpret the accounting standards (such as the FASB, SEC, banking regulators and our independent registered auditors) may change or even reverse their previous interpretations or positions on how standards should be applied. Changes in financial accounting and reporting standards and changes in current interpretations may be beyond our control, can be hard to predict and could materially impact our financial condition and results of operations.

We are exposed to intangible asset risk, which could negatively impact our financial results.

In accordance with U.S. GAAP, we record assets acquired and liabilities assumed at their fair value, and, as such, business acquisitions typically result in recording goodwill. We perform a goodwill evaluation at least annually to test for goodwill impairment. As part of its testing, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines the fair value of a reporting unit is less than its carrying amount using these qualitative factors or as part of the annual quantitative evaluation, the Company will recognize a goodwill impairment loss for the amount by which the carrying amount of the reporting unit exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. Adverse conditions in our business climate, including a significant decline in future operating cash flows, a significant change in our stock price or market capitalization, or a deviation from our expected growth rate and performance may significantly affect the fair value of our goodwill and may trigger impairment losses, which could be material to our operating results and financial condition.

We completed such an evaluation for the Company during the fourth quarter of 2018 and concluded that an impairment charge was not necessary for the year ended December 31, 2018. We cannot provide assurance, however, that we will not be required to take an impairment charge in the future. Any impairment charge would have an adverse effect on our shareholders’ equity and financial results and could cause a decline in our stock price.

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The required accounting treatment of troubled loans we acquired through acquisitions could result in higher net interest margins and interest income in current periods and lower net interest margins and interest income in future periods.

Under GAAP, we are required to record troubled loans acquired through acquisitions at fair value, which may underestimate or overestimate the actual performance of such loans. If these loans outperform our original fair value estimates, the difference between our original estimate and the actual performance of the loan (the “discount”) is accreted into net interest income. Thus, our net interest margins may initially appear higher. Conversely, if these loans under-perform our original fair value estimates, our net interest margins would be lower than initially estimated. We expect the yields on our loans to decline as our acquired loan portfolio pays down or matures, and we expect downward pressure on our interest income to the extent that the runoff on our acquired loan portfolio is not replaced with comparable high-yielding loans. This could result in higher net interest margins and interest income in current periods and lower net interest rate margins and interest income in future periods.

OPERATIONAL RISKS

A failure in or an attack on our operational systems or infrastructure, or those of third parties, could impair our liquidity, disrupt our business, result in the unauthorized disclosure of confidential information, damage our reputation and cause financial losses.

Our business is dependent on our ability to process and monitor, on a daily basis, a large number of transactions, many of which are highly complex, across numerous and diverse markets. These transactions, as well as the information technology services we provide to clients, often must adhere to client-specific guidelines, as well as legal and regulatory standards. Due to the breadth of our client base and our geographical reach, developing and maintaining our operational systems and infrastructure is challenging, particularly as a result of rapidly evolving legal and regulatory requirements, technological shifts, integration of new platforms and third party relationships. Our financial, accounting, data processing or other operating systems and facilities, or those of our third party vendors, may fail to operate properly or become disabled as a result of events that are wholly or partially beyond our control, such as a spike in transaction volume, cyber attack or other unforeseen catastrophic events, which may adversely affect our ability to process transactions or services.

In addition, our operations rely on the secure processing, storage and transmission of confidential and other information on our computer systems and networks, as well as those of our third party vendors. Although we take protective measures to maintain the confidentiality, integrity and availability of our information and our clients’ information across all geographic and product lines, and endeavor to modify these protective measures as circumstances warrant, the nature of these threats continues to evolve. As a result, our computer systems, software and networks may be vulnerable to unauthorized access, loss or destruction of data (including confidential client information), account takeovers, unavailability of service, computer viruses or other malicious code, cyber attacks and other events that could have an adverse security impact. Despite the defensive measures we take to manage our internal technological and operational infrastructure, these threats may originate externally from third parties such as foreign governments, organized crime and other hackers, and outsource or infrastructure-support providers and application developers, or may originate internally from within our organization. Given the increasingly high volume of our transactions, certain errors may be repeated or compounded before they can be discovered and rectified.

We also face the risk of operational disruption, failure, termination or capacity constraints of any of the third parties that facilitate our business activities, including exchanges, clearing agents, clearing houses or other financial intermediaries. Such parties could also be the source of an attack on, or breach of, our operational systems, data or infrastructure. In addition, as interconnectivity with our clients grows, we increasingly face the risk of operational failure with respect to our clients’ systems.

If one or more of these cyber incidents occurs, it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions or malfunctions in our, as well as our clients’ or other third parties’ operations, which could result in damage to our reputation, substantial costs, regulatory penalties and/or client dissatisfaction or loss. Potential costs of a cyber attack may include, but would not be limited to, remediation costs, increased protection costs, lost revenue from the unauthorized use of proprietary information or the loss of current and/or future customers, and litigation.

We maintain an insurance policy which we believe provides sufficient coverage at a manageable expense for an institution of our size and scope with similar technological systems. However, no assurance can be given that this policy would be sufficient to cover all potential financial losses, damages, penalties, including lost revenues, should we experience any one or more of our or a third party’s systems failing or experiencing attack.

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The loss of certain key personnel could negatively affect our operations.

Although we have employed a significant number of additional executive officers and other key personnel, our success continues to depend in large part on the retention of a limited number of key executive management, lending and other personnel. We could undergo a difficult transition period if we were to lose the services of any of these individuals. Our success also depends on the experience of our banking facilities’ managers and lending officers and on their relationships with the customers and communities they serve. The loss of these key persons could negatively impact the affected banking operations. The unexpected loss of key senior managers, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on our business, financial condition, or operating results.

Catastrophic events could negatively affect our local economies or disrupt our operations, which would have an adverse effect on our business or results of operations.

The occurrence of catastrophic events, including weather events and other natural disasters such as hurricanes, tropical storms, tornadoes, floods and fires, or other disasters, such as crime, terrorism and other acts of violence, could adversely affect our consolidated financial condition or results of operations. Such events can disrupt our operations, cause damage to our properties and negatively affect the local economies in which we operate. We cannot predict whether or to what extent damage that may be caused by these catastrophes will affect our operations or the economies in our market areas, but such events could result in a decline in loan originations, a decline in the value or destruction of properties securing our loans and an increase in payment delinquencies, foreclosures and loan losses.

We may be subject to increased litigation which could result in legal liability and damage to our reputation.

The Company and IBERIABANK have been named from time to time as defendants in class actions and other litigation relating to our businesses and activities. Litigation may include claims for substantial compensatory or punitive damages or claims for indeterminate amounts of damages. We and our subsidiaries are also involved from time to time in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business. These matters also could result in adverse judgments, settlements, fines, penalties, injunctions or other relief.

In addition, in recent years, a number of judicial decisions have upheld the right of borrowers to sue lending institutions on the basis of various evolving legal theories, collectively termed “lender liability.” Generally, lender liability is founded on the premise that a lender has either violated a duty, whether implied or contractual, of good faith and fair dealing owed to the borrower or has assumed a degree of control over the borrower resulting in the creation of a fiduciary duty owed to the borrower or its other creditors or shareholders.

Substantial legal liability or significant regulatory action against us, including our subsidiaries, could materially adversely affect our business, financial condition or results of operations, or cause significant harm to our reputation.

STRATEGIC/REPUTATIONAL RISKS

We may not be able to complete future financial institution acquisitions.

From time to time, we evaluate and engage in the acquisition of other banking organizations. We must satisfy a number of meaningful conditions before we can complete an acquisition of another bank or bank holding company, including federal and state bank regulatory approvals. The process for obtaining required regulatory approvals, particularly for large financial institutions like the Company, can be time-consuming and unpredictable and is subject to numerous regulatory and policy factors, a number of which are beyond our control. We may fail to pursue or to complete strategic and competitively significant acquisition opportunities as a result of the perceived difficulty or impossibility of obtaining required regulatory approvals in a timely manner or at all.

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The success of our financial institution acquisitions will depend on a number of uncertain factors.

The success of our financial institution acquisitions depends on a number of factors, including, without limitation:

• Our ability to integrate the businesses acquired into IBERIABANK’s current operations, including the conversion of customer loan and deposit data from the acquired banks’ data processing systems to our data processing systems;

• Our ability to limit the outflow of deposits held by our new customers in the acquired businesses and to successfully retain and manage interest-earning assets (i.e., loans) acquired;

• Our ability to attract new deposits and to generate new interest-earning assets in the geographic areas previously served by the acquired businesses;

• Our ability to effectively compete in new markets in which we did not previously have a presence;

• Our success in deploying the cash acquired in these transactions into assets bearing sufficiently high yields without incurring unacceptable risk;

• Our ability to control the incremental non-interest expense from the acquired businesses in a manner that enables us to maintain a favorable overall efficiency ratio;

• Our ability to retain and attract the appropriate personnel to staff and maintain the acquired businesses; and

• Our ability to earn acceptable levels of interest and non-interest income, including fee income, from the acquired businesses.

In any acquisition involving a financial institution, particularly one involving the transfer of a large number ofbranches and/or customers, there may be business and service changes and disruptions, including delays or errors in the data conversion process, that result in the loss of customers or cause customers to close their accounts and move their business to competing financial institutions. Integration of such acquired businesses is an operation of substantial size and expense, and may be impacted by general market and economic conditions or government actions affecting the financial services industry. Integration efforts also are likely to divert our management’s attention and resources. No assurance can be given that we will be able to integrate these acquired businesses successfully. The integration process could also result in the loss of key employees, the disruption of ongoing business, or inconsistencies in standards, controls, procedures and policies that adversely affect our ability to maintain relationships with clients, customers, depositors and employees or to achieve the anticipated benefits of bank acquisitions. Further, we may encounter unexpected difficulties or costs during the integration that could adversely affect our earnings and financial condition, perhaps materially. Additionally, no assurance can be given that the operation of acquired businesses will not adversely affect our existing profitability, that we will be able to achieve results in the future similar to those achieved by our existing banking business, that we will be able to compete effectively in the market areas currently served by the acquired businesses, or that we will be able to manage any growth resulting from financial institution acquisitions effectively.

Our ability to grow acquired businesses following these transactions depends in part on our ability to retain certain key personnel we expect to hire and/or retain in connection with these transactions. We believe that the ties these employees have in the local banking markets previously served by their acquired businesses are vital to our ability to maintain our relationships with existing customers and to generate new business in these markets. Our failure to hire or retain these employees could adversely affect the success of these transactions and our future growth.

The modeled returns of financial institution acquisitions will depend on a number of uncertain factors, and actual results could differ materially from our expectations.

We undertake a process in performing due diligence on financial institution acquisition targets. While this process attempts to be comprehensive, factors can arise that were not discovered or anticipated by us in this exercise. Additionally, our modeled returns are based on a variety of assumptions to include synergies, cost savings, credit losses, growth, and the fair value of assets, liabilities and contracts acquired. To the extent such factors arise or actual results differ from our assumptions, our actual shareholder returns on any given acquisition could differ materially from our modeled expectations.

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Our recent expansion in South Florida entails geographic and client base integration risks.

On July 31, 2017, we completed the acquisition of Sabadell United Bank, N.A. (“Sabadell”), a bank headquartered in Miami, Florida with assets of $5.7 billion and, on March 23, 2018, we completed the acquisition of Gibraltar Private Bank & Trust Co. ("Gibraltar"), a bank headquartered in Coral Gables, Florida with assets of $1.6 billion. The businesses and historic markets of the Company differ from those of Sabadell and Gibraltar and, accordingly, our results of operations after these acquisitions may be affected by certain factors unlike those previously affecting our independent results. For example, while we operate primarily in eight states (Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia and South Carolina), the operations of Sabadell and Gibraltar were concentrated in South Florida. As a result of the Sabadell and Gibraltar acquisitions, Florida is now the Company’s largest state by deposits. The changes in geographic concentration, loan mix and client base resulting from these South Florida acquisitions present risks different from those faced by us in operations in other states.

In addition, the success of the Sabadell and Gibraltar acquisitions will depend, in part, on our ability to realize the anticipated benefits and cost savings from combining our business with the business of the acquired companies. If we are not able to achieve these objectives, the anticipated benefits and cost savings of our South Florida acquisitions may not be realized fully, or at all, or may take longer to realize than expected.

Our ability to achieve and maintain expense reduction and earnings enhancement initiatives may be adversely affected by external factors not within our control.

We continuously assess opportunities for expense reduction and revenue enhancement to improve annual returns. While many of the elements necessary to achieve certain initiatives are within our control, others such as interest rates and prevailing economic conditions, which influence expenses and revenues, depend on external factors not within our control, and there can be no assurance that external factors will not materially adversely affect our ability to fully implement and accomplish past and future initiatives.

We face substantial competition and are subject to certain regulatory constraints not applicable to some of our competitors, whichmay decrease our growth or profits.

We face substantial competition for deposits, and for credit, title and trust relationships, and other financial services and products in the communities we serve. Competing providers include other banks, thrifts and trust companies, insurance companies, mortgage banking operations, credit unions, finance companies, title companies, money market funds and other financial and nonfinancial companies which may offer products functionally equivalent to those offered by us. Competing providers may have greater financial resources than we do and offer services within and outside the market areas we serve. In addition to this challenge of attracting and retaining customers for traditional banking services, our competitors include securities dealers, brokers, mortgage bankers, investment advisors and finance and insurance companies who seek to offer one-stop financial services to their customers that may include services that financial institutions have not been able or allowed to offer to their customers in the past. The increasingly competitive environment is primarily a result of changes in regulation, changes in technology and product delivery systems and the accelerating pace of consolidation among financial service providers. If we are unable to adjust both to increased competition for traditional banking services and changing customer needs and preferences, our financial performance could be adversely affected.

Some of our competitors, including credit unions, are not subject to certain regulatory constraints, such as the Community Reinvestment Act, which, among other things, requires us to implement procedures to make and monitor loans throughout the communities we serve. Credit unions also have federal tax exemptions that may allow them to offer lower rates on loans and higher rates on deposits than taxpaying financial institutions such as commercial banks. In addition, non-depository institution competitors are generally not subject to the extensive regulation applicable to institutions, like IBERIABANK, that offer federally insured deposits. Other institutions may have other competitive advantages in particular markets or may be willing to accept lower profit margins on certain products. These differences in resources, regulation, competitive advantages, and business strategy may decrease our net interest margin, may increase our operating costs, and may make it harder for us to compete profitably.

Our success depends on our ability to respond to the threats and opportunities of fintech innovation.

Fintech developments, such as bitcoin, have the potential to disrupt the financial industry and change the way banks do business. Investment in new technology to stay competitive would result in significant costs and increased risks of cyber security attacks. Our success depends on our ability to adapt to the pace of the rapidly changing technological environment, which is crucial to retention and acquisition of customers.

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We experience increasing competition from nonbank companies, including technology companies, both inside and outside of our market area. Many technology companies have focused on the financial sector and now offer a broad variety of software and payment products primarily over the Internet, with a focus on mobile device delivery. These companies generally are not subject to regulatory burdens comparable to those applicable to banks and may accordingly offer products and services at more favorable rates and with greater convenience to the customer. This competition by technology companies could cause regulated depository institutions such as the Bank to lose fee income as well as customer deposits and related income. 

On July 31, 2018, the Office of the Comptroller of the Currency announced that it would begin accepting applications for a special purpose national bank charter from nondepository “fintech” companies engaged in core banking activities, such as paying checks or lending money. The federal special purpose bank charter would largely allow fintech companies to operate nationwide under a single set of national standards, without needing to seek state-by-state licenses or joining with brick-and-mortar banks, and would therefore allow fintech companies to more easily compete with us for financial products and services in the communities we serve.

Reputational risk and social factors may impact our results.

Our ability to originate and maintain accounts is highly dependent upon consumer and other external perceptions of our business practices and/or our financial health. Adverse perceptions regarding our business practices and/or our financial health could damage our reputation in both the customer and funding markets, leading to difficulties in generating and maintaining accounts as well as in financing them. Adverse developments with respect to the consumer or other external perceptions regarding the practices of our competitors, or our industry as a whole, may also adversely impact our reputation. In addition, adverse reputational impacts on third parties with whom we have important relationships may also adversely impact our reputation. Adverse impacts to our reputation, or the reputation of our industry, may lead to greater regulatory and/or legislative scrutiny and litigation risk. We carefully monitor internal and external developments for areas of potential reputational risk and have established governance structures to assist in evaluating such risks in our business practices and decisions.

RISKS ABOUT OUR SECURITIES

We are a holding company and depend on our subsidiaries for dividends, distributions and other payments.

There can be no assurance of whether or when we may pay dividends in the future. Cash available to pay dividends to our shareholders is derived primarily, if not entirely, from dividends paid to us from our subsidiaries. The ability of our subsidiary bank to pay dividends to us as well as our ability to pay dividends to our shareholders is limited by regulatory and legal restrictions and the need to maintain sufficient consolidated capital. In addition, if we fail to satisfy the minimum capital conservation buffer requirement, we will be subject to certain limitations, which include restrictions on capital distributions. We may also decide to limit the payment of dividends even when we have the legal ability to pay them in order to retain earnings for use in our business. Further, any lenders making loans to us may impose financial covenants that may be more restrictive than regulatory requirements with respect to the payment of dividends.

We are prohibited from paying dividends on our common stock if the required payments on our subordinated debentures have not been made. Additionally, dividends on our common stock could be adversely impacted if dividend payments on our preferred stock have not been made.

Although we have paid cash dividends on shares of our common stock in the past, we may not pay cash dividends on shares of our common stock in the future.

Holders of shares of our common stock are only entitled to receive such dividends as our board of directors may declare out of funds legally available for such purpose. We have a history of paying dividends to our shareholders. However, future cash dividends will depend upon our results of operations, financial condition, cash requirements, the need to maintain adequate capital levels, the need to comply with safe and sound banking practices as well as meet regulatory expectations, and other factors, including the ability of our subsidiaries to make distributions to us, which ability may be restricted by statutory, contractual or other constraints. There can be no assurance that we will continue to pay dividends even if the necessary financial conditions are met and if sufficient cash is available for distribution. See Note 13 and Note 15 to the consolidated financial statements for further discussion on factors impacting or restricting our ability to pay dividends.

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Our common stock and our preferred stock are subordinate to our existing and future indebtedness.

Shares of our common stock and our Series B and Series C preferred stock are equity interests and do not constitute indebtedness of the Company. This means that shares of the common stock and depositary shares, which represent fractional interests in shares of Series B and Series C preferred stock, rank junior to all our existing and future indebtedness and our other non-equity claims with respect to assets available to satisfy claims against us, including claims in the event of our liquidation. We are prohibited from paying dividends on any of our capital stock if the required payments on our subordinated debentures have not been made.

Our common stock is subordinate to our existing and future preferred stock.

The Company has outstanding Series B and Series C preferred stock that is senior to the common stock and could adversely affect the ability of the Company to declare or pay dividends or distributions of common stock. Under the terms of the Series B and Series C preferred stock, the Company is prohibited from paying dividends on its common stock unless all full dividends for the latest dividend period on all outstanding shares of Series B and Series C preferred stock have been declared and paid in full or declared and a sum sufficient for the payment of those dividends has been set aside. Furthermore, if the Company experiences a material deterioration in its financial condition, liquidity, capital, results of operations or risk profile, the Company’s regulators may not permit it to make future payments on its Series B and Series C preferred stock, thereby preventing the payment of dividends on the common stock.

We may issue debt and/or equity securities, or securities convertible into equity securities, any of which may be senior to our existing preferred and common stock as to distributions and in liquidation, and such an issuance could negatively affect the value of our common and preferred stock.

In the future, we may attempt to increase our capital resources by entering into debt or debt-like financing that is unsecured or secured by all or up to all of our assets, or by issuing additional debt or equity securities, which could include issuances of secured or unsecured commercial paper, medium-term notes, senior notes, subordinated notes, preferred stock, or securities convertible into or exchangeable for equity securities. In the event of our liquidation, our lenders and holders of our debt and preferred securities would receive a distribution of our available assets before distributions to the holders of our common stock. Subject to certain conditions, holders of another class of preferred stock may be entitled to preferences over the Series B and Series C preferred stock. Because our decision to incur debt and issue securities in our future offerings will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings and debt financings. Further, market conditions could require us to accept less favorable terms for the issuance of our securities in the future.

The trading history of our common stock is characterized by modest trading volume.

Our common stock trades on the NASDAQ Global Select Market. During 2018, the average daily trading volume of our common stock was approximately 372,000 shares. The average daily trading volume of our depositary shares, which represent fractional shares of our Series B preferred stock, was approximately 4,300 shares. In addition, our Series C preferred stock had average daily trading volume of approximately 2,800 shares.

We cannot predict the extent to which investor interest in us will lead to a more active trading market in our securities or how much more liquid these markets might become. A public trading market having the desired characteristics of depth, liquidity and orderliness depends upon the presence in the marketplace of willing buyers and sellers of our securities at any given time, which presence is dependent upon the individual decisions of investors, over which we have no control.

25

The market price of our securities can be volatile.

The market prices of our common and preferred stock may be highly volatile and subject to wide fluctuations in response to many factors, including, but not limited to, the factors discussed in other risk factors and the following:

• actual or unanticipated fluctuations in our operating results;

• changes in interest rates;

• changes in the legal or regulatory environment in which we operate;

• press releases, announcements or publicity relating to us or our competitors or relating to trends in our industry;

• changes in expectations as to our future financial performance, including financial estimates or recommendations by securities analysts and investors;

• future sales of our securities;

• changes in economic conditions in our marketplace, general conditions in the U.S. economy, financial markets or the banking industry; and

• other developments affecting our competitors or us.

These factors may adversely affect the trading prices of our securities, regardless of our actual operating performance, and could prevent our shareholders from selling their securities at or above the public offering price. In addition, the stock markets, from time to time, experience extreme price and volume fluctuations that may be unrelated or disproportionate to the operating performance of companies. These broad fluctuations may adversely affect the market prices of our securities, regardless of our trading performance.

In the past, shareholders have brought securities class action litigation against a company following periods of volatility in the market price of its securities. We may be the target of similar litigation in the future, which could result in substantial costs and divert management’s attention and resources.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

As of December 31, 2018, we operated 329 combined locations, including 191 bank branch offices and 3 loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York, 29 title insurance offices in Arkansas, Tennessee, and Louisiana, mortgage representatives in 87 locations in 12 states, eighteen wealth management locations in five states, and one IBERIA Capital Partners L.L.C. office in Louisiana. Office locations are either owned or leased. For offices in premises leased by us or our subsidiaries, rent expense totaled $22.5 million in 2018. During 2018, we and our subsidiaries received $2.1 million in rental income for space leased to others. At December 31, 2018, there were no significant encumbrances on the offices, equipment and other operational facilities owned by us and our subsidiaries.

Additional information on our premises is provided in Note 8 to the Consolidated Financial Statements incorporated herein by reference to Exhibit 13 of this Form 10-K.

Item 3. Legal Proceedings.

The nature of the business of the Company’s banking and other subsidiaries ordinarily results in a certain amount of claims, litigation, investigations and legal and administrative cases and proceedings, all of which are considered incidental to the normal conduct of business. Some of these claims are against entities or assets of which the Company is a successor or acquired in business acquisitions. The Company believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and, with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interest of the Company and its shareholders.

26

The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of loss is not estimable, the Company does not accrue legal reserves. While the outcome of legal proceedings is inherently uncertain, based on information currently available, advice of counsel and available insurance coverage, the Company’s management believes that it has established appropriate legal reserves. Any liabilities arising from pending legal proceedings are not expected to have a material adverse effect on the Company’s consolidated financial position, consolidated results of operations or consolidated cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the Company’s consolidated financial position, consolidated results of operations or consolidated cash flows. For additional information, see Note 18 to the Consolidated Financial Statements which is incorporated by reference to Exhibit 13 of this Form 10-K.

Item 4. Mine Safety Disclosures

Not applicable.

27

PART II.

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Stock Performance Graph

IBERIABANK Corporation’s common stock trades on the NASDAQ Global Select Market under the symbol “IBKC.”

The following graph and table, which were prepared by S&P Global Intelligence (“S&P”), compares the cumulative total return on our Common Stock over a measurement period beginning December 31, 2013 with (i) the cumulative total return on the stocks included in the National Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”) Composite Index and (ii) the cumulative total return on the stocks included in the S&P > $10 Billion Bank Index. All of these cumulative returns are computed assuming the quarterly reinvestment of dividends paid during the applicable period.

	Period Ending
Index	12/31/13	12/31/14	12/31/15	12/31/16	12/31/17	12/31/18
IBERIABANK Corporation	100.00	105.29	91.42	142.16	134.00	113.49
NASDAQ Composite Index	100.00	114.75	122.74	133.62	173.22	168.30
S&P Bank > $10B	100.00	112.43	113.36	141.62	168.97	139.61

The stock performance graph assumes $100.00 was invested December 31, 2013. The stock price performance included in this graph is not necessarily indicative of future stock price performance.

Additional information required herein is incorporated by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Corporate Information Data” in Exhibit 13 hereto.

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Share Repurchases

On May 9, 2018, the Company completed its then current stock repurchase program, which commenced in May 2016, under which the Company repurchased a total of 537,506 shares at an average price per share of $68.94. On May 10, 2018, the Board of Directors of the Company authorized the repurchase of up to 1,137,500 shares of the Company's outstanding common stock, which was subsequently completed on November 5, 2018. During that time, the Company repurchased 1,137,500 shares of its common stock at a weighted average price of $77.54 per share. On November 5, 2018, the Board of Directors authorized a new repurchase plan of up to 2,765,000 shares of the Company's common stock. This repurchase authorization equated to approximately 5% of total common shares outstanding. Stock repurchases under this program will be made from time to time on the open market or in privately negotiated transactions at the discretion of the management of the Company. The timing of these repurchases will depend on market conditions and other requirements. The Company currently anticipates the share repurchase program will extend over a two-year time frame, or earlier if the shares have been repurchased. At December 31, 2018, there were approximately 2,265,000 remaining shares that may be repurchased under the current Board-approved plan.

During the fourth quarter of 2018, the Company repurchased 1,209,290 common shares, at a weighted average price of $72.61 per common share, of which 709,290 were repurchased under the completed Board-authorized plan and 500,000 were repurchased under the current Board-authorized plan. Subsequent to year-end and through February 21, 2019, the Company repurchased 226,921 common shares for approximately $17.5 million.

Information concerning IBERIABANK Corporation's repurchases of its outstanding common stock during the three-month period ended December 31, 2018, is included in the following table:

Period	Total Number of Shares Purchased(1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
October 1-31, 2018	462,770	$	73.47	462,027	247,263
November 1-30, 2018	247,710	$	75.43	247,263	2,765,000
December 1-31, 2018	500,099	$	70.43	500,000	2,265,000
Total	1,210,579	$	72.62	1,209,290	2,265,000
(1) Includes shares of the Company's common stock acquired by the Company in connection with satisfaction of tax withholding obligations on vested restricted stock.

Restrictions on Dividends and Repurchase of Stock

Holders of the Company's common stock are only entitled to receive dividends if, as and when the Board of Directors may declare out of funds legally available for such payments.

IBERIABANK Corporation understands the importance of returning capital to shareholders. Management will continue to execute the capital planning process, including evaluation of the amount of the common stock dividend, with the Board of Directors and in conjunction with the regulators, subject to the Company's results of operations. Also, IBERIABANK Corporation is a bank holding company, and its ability to declare and pay dividends is dependent on certain federal regulatory considerations, including the guidelines of the Federal Reserve regarding capital adequacy and dividends.

Holders of the common stock are subject to priority dividend rights of any holders of preferred stock then outstanding. At December 31, 2018, there were 13,750 shares of preferred stock outstanding. In addition, the terms of the Company’s outstanding junior subordinated debt securities prohibit it from declaring or paying any dividends or distributions on outstanding capital stock, or purchasing, acquiring, or making a liquidation payment on such stock, if the Company has elected to defer interest payments on such debt.

For additional information, see Note 15 to the Consolidated Financial Statements which is incorporated by reference to Exhibit 13 of this Form 10-K.

29

Item 6. Selected Financial Data.

The information required herein is incorporated by reference to “Selected Consolidated Financial and Other Data” in Exhibit 13 hereto.

Item 7.     Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The information required herein is incorporated by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Exhibit 13 hereto.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

The information required herein is incorporated by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Exhibit 13 hereto.

Item 8. Financial Statements and Supplementary Data.

The information required herein is incorporated by reference to “IBERIABANK Corporation and Subsidiaries Consolidated Financial Statements” in Exhibit 13 hereto.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), we performed an evaluation of the effectiveness of our disclosure controls and procedures as of December 31, 2018. The evaluation was carried out under the supervision, and with the participation of, the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Based on that evaluation, the CEO and CFO have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Report. Management’s Report on Internal Control over Financial Reporting, and the attestation report of the independent registered public accounting firm, are included in Exhibit 13 and are incorporated by reference herein.

Item 9B. Other Information.

None.

30

PART III.

Item 10. Directors, Executive Officers and Corporate Governance.

Information concerning the Registrant’s executive officers is contained in Part I of this Form 10-K. Other information required herein, including information on directors, the audit committee, and the audit committee financial expert is incorporated by reference to the Proxy Statement.

Item 11. Executive Compensation.

The information required herein is incorporated by reference to the Proxy Statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information required herein is incorporated by reference to the Proxy Statement.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information required herein is incorporated by reference to the Proxy Statement.

Item 14. Principal Accounting Fees and Services.

The information required herein is incorporated by reference to the Proxy Statement.

31

PART IV.

Item 15. Exhibits and Financial Statement Schedules.

(a) Documents Filed as Part of this Report.

(1) The following financial statements are incorporated by reference from Item 8 hereof (see Exhibit No. 13):

Consolidated Balance Sheets as of December 31, 2018 and 2017

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2018, 2017, and 2016

Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2018, 2017, and 2016

Consolidated Statements of Cash Flows for the Years Ended December 31, 2018, 2017, and 2016

Notes to Consolidated Financial Statements

(2) All schedules for which provision is made in the applicable accounting regulation of the SEC are omitted because of the absence of conditions under which they are required or because the required information is included in the consolidated financial statements and related notes thereto.

(3) The following exhibits are filed as part of this Form 10-K, and this list includes the Exhibit Index.

Exhibit Index
Exhibit No. 3.1	Articles of Incorporation, as amended – incorporated herein by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q, filed on May 10, 2016.
Exhibit No. 3.2	Bylaws of the Company, as amended – incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K dated May 7, 2018, filed on May 9, 2018.
Exhibit No. 4.1	Stock Certificate – incorporated herein by reference to Registration Statement on Form S-8 (File No. 33-93210), filed on June 7, 1995.
Exhibit No. 4.2	Deposit Agreement, among IBERIABANK Corporation, Computershare Inc., and Computershare Trust Company, N.A. and the holders from time to time of Depositary Receipts described therein, dated as of August 5, 2015 - incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K, filed on August 5, 2015.
Exhibit No. 4.3	Deposit Agreement, among IBERIABANK Corporation, Computershare Inc., and Computershare Trust Company, N.A., and the holders from time to time of Depositary Receipts described therein, dated as of May 9, 2016 – incorporated herein by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K, filed on May 9, 2016.
Exhibit No. 10.1	Retirement Savings Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, filed on March 15, 2006.
Exhibit No. 10.2	Employment Agreement with Daryl G. Byrd, as amended and restated – incorporated herein by reference to Exhibit 10.4 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2001, filed on April 1, 2002.
Exhibit No. 10.3	Form of Indemnification Agreements with Daryl G. Byrd and Michael J. Brown – incorporated herein by reference to Exhibit 10.5 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1999, filed on March 30, 2000.
Exhibit No. 10.4	Severance Agreement with Michael J. Brown – incorporated herein by reference to Exhibit 10.6 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2000, filed on March 30, 2001.
Exhibit No. 10.5	Severance Agreement with Anthony J. Restel – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2005, filed on May 9, 2005.
Exhibit No. 10.6	2005 Stock Incentive Plan, as amended – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009, filed on May 11, 2009.
Exhibit No. 10.7	Form of Restricted Stock Agreement under the IBERIABANK Corporation 2005 Stock Incentive Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated May 17, 2006, filed on May 19, 2006.
Exhibit No. 10.8	Form of Stock Option Agreement under the IBERIABANK Corporation 2005 Stock Incentive Plan – incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated May 17, 2006, filed on May 19, 2006.

32

Exhibit No. 10.9	IBERIABANK Corporation Deferred Compensation Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated December 17, 2007, filed on December 21, 2007.
Exhibit No. 10.10	Form of Phantom Stock Award Agreement – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated November 17, 2008, filed on November 21, 2008.
Exhibit No. 10.11	Form of Restricted Stock Agreement under the IBERIABANK Corporation 2008 Stock Incentive Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2008, filed on August 11, 2008.
Exhibit No 10.12	Form of Stock Option Agreement under the IBERIABANK Corporation 2008 Stock Incentive Plan – incorporated herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2008, filed on August 11, 2008.
Exhibit No. 10.13	IBERIABANK Corporation 2009 Phantom Stock Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated September 29, 2009, filed on October 5, 2009.
Exhibit No. 10.14	Form of IBERIABANK Corporation Phantom Stock Unit Agreement – incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated September 29, 2009, filed on October 5, 2009.
Exhibit No. 10.15	Change in Control Severance Agreement with Jefferson G. Parker dated September 17, 2009 – incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated September 17, 2009, filed on September 18, 2009.
Exhibit No. 10.16	2010 Stock Incentive Plan, as amended – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated January 18, 2010, filed on January 19, 2010.
Exhibit No. 10.17	Form of Restricted Stock Agreement under the IBERIABANK Corporation 2010 Stock Incentive Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated May 4, 2010, filed on May 7, 2010.
Exhibit No. 10.18	Form of Stock Option Agreement under the IBERIABANK Corporation 2010 Stock Incentive Plan – incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated May 4, 2010, filed on May 7, 2010.
Exhibit No. 10.19	IBERIABANK Corporation Amended and Restated 2010 Stock Incentive Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated May 6, 2011, filed on May 12, 2019.
Exhibit No. 10.20	Form of IBERIABANK Corporation Restricted Stock Agreement under the IBERIABANK Corporation 2010 Stock Incentive Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated May 6, 2013, filed on May 9, 2013.
Exhibit No. 10.21	Change in Control Severance Agreement with Michael S. Price dated June 18, 2012 – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated June 18, 2012, filed on June 20, 2012.
Exhibit No. 10.22	IBERIABANK Corporation 2014 Phantom Stock Plan – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated February 17, 2014, filed on February 21, 2014.
Exhibit No. 10.23	Form of IBERIABANK Corporation Phantom Stock Unit Agreement – incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated February 17, 2014, filed on February 21, 2014.
Exhibit No. 10.24	Form of IBERIABANK Corporation Performance Unit Agreement – incorporated herein by reference to Exhibit 10.51 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed on February 28, 2014.
Exhibit No. 10.25	Form of IBERIABANK Corporation Restricted Share Unit Agreement (Performance Contingent Award) – incorporated herein by reference to Exhibit 10.52 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed on February 28, 2014.
Exhibit No. 10.26	Form of IBERIABANK Corporation Restricted Stock Agreement – incorporated herein by reference to Exhibit 10.53 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed on February 28, 2014.

33

Exhibit No. 10.27	Form of IBERIABANK Corporation Stock Option Agreement – incorporated herein by reference to Exhibit 10.54 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed on February 28, 2014.
Exhibit No. 10.28	Form of Change in Control Severance Agreement – incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2010, filed on August 9, 2010.
Exhibit No. 10.29	IBERIABANK Corporation 2016 Stock Incentive Plan - incorporated herein by reference to Exhibit 10.0 to the Registrant’s Current Report on Form 8-K, dated May 4, 2016, filed on May 10, 2016.
Exhibit No. 10.30	Employment Agreement with Fernando Perez-Hickman - incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2017, filed on November 8, 2017.
Exhibit No. 10.31	Agreement and Plan of Merger by and among the Registrant, IBERIABANK and Gibraltar Private Bank & Trust Company, dated as of October 19, 2017 - incorporated herein by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K dated October 19, 2017, filed on October 20, 2017.
Exhibit No. 10.32	Form of Change in Control Severance Agreement - incorporated herein by reference to Exhibit No. 10.33 to the Registrant's Annual Report on Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 2017, filed on March 30, 2018.
Exhibit No. 10.33	Form of Amendment No. 1 to Restricted Stock Agreement - incorporated herein by reference to Exhibit No. 10.1 to the Registrant's Current Report on Form 8-K dated April 30, 2018, filed on May 1, 2018.
Exhibit No. 12	Computations of Earnings to Fixed Charges.
Exhibit No. 13	Annual Report to Shareholders – Portions of Annual Report to Shareholders for the year ended December 31, 2018, which are expressly incorporated herein by reference.
Exhibit No. 21	Subsidiaries of the Registrant.
Exhibit No. 23.1	Consent of Ernst & Young LLP.
Exhibit No. 31.1	Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
Exhibit No. 31.2	Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
Exhibit No. 32.1	Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit No. 32.2	Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit No. 101.INS	XBRL Instance Document.
Exhibit No. 101.SCH	XBRL Taxonomy Extension Schema.
Exhibit No. 101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
Exhibit No. 101.DEF	XBRL Taxonomy Extension Definition Linkbase.
Exhibit No. 101.LAB	XBRL Taxonomy Extension Label Linkbase.
Exhibit No. 101.PRE	XBRL Taxonomy Extension Presentation Linkbase.

34

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	IBERIABANK CORPORATION
Date: February 22, 2019	By:	/s/ Daryl G. Byrd
		Daryl G. Byrd
		President, Chief Executive Officer and Director

35

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Name	Title	Date
/s/ Daryl G. Byrd	President, Chief Executive Officer and Director	February 22, 2019
Daryl G. Byrd
/s/ Anthony J. Restel	Vice Chairman and Chief Financial Officer	February 22, 2019
Anthony J. Restel
/s/ M. Scott Price	Executive Vice President, Corporate Controller and Chief Accounting Officer	February 22, 2019
M. Scott Price
/s/ Elaine D. Abell	Director	February 22, 2019
Elaine D. Abell
/s/ Harry V. Barton, Jr.	Director and Audit Committee Chairman	February 22, 2019
Harry V. Barton, Jr.
/s/ Ernest P. Breaux, Jr.	Director	February 22, 2019
Ernest P. Breaux, Jr.
/s/ John N. Casbon	Director	February 22, 2019
John N. Casbon
/s/ Angus R. Cooper, II	Director	February 22, 2019
Angus R. Cooper, II
/s/ William H. Fenstermaker	Chairman of the Board	February 22, 2019
William H. Fenstermaker
/s/ John E. Koerner, III	Director and Audit Committee Member	February 22, 2019
John E. Koerner, III
/s/ Rick E. Maples	Director and Audit Committee Member	February 22, 2019
Rick E. Maples
/s/ E. Stewart Shea, III	Vice Chairman of the Board	February 22, 2019
E. Stewart Shea, III
/s/ Rosa Sugrañes	Director and Audit Committee Member	February 22, 2019
Rosa Sugrañes

36

EX-12

EXHIBIT 12

COMPUTATION OF EARNINGS TO FIXED CHARGES

	Years Ended December 31,
(Dollars in thousands)	2018		2017		2016		2015		2014
Net income	$	370,249	$	142,413	$	186,777	$	142,844	$	105,382
Income tax expense	32,278		150,466		85,193		64,094		35,683
Income before income tax expense	$	402,527	$	292,879	$	271,970	$	206,938	$	141,065
Fixed charges
Interest on short-term and other borrowings	$	47,429	$	25,104	$	16,120	$	11,997	$	11,614
Fixed charges excluding interest on deposits	47,429		25,104		16,120		11,997		11,614
Interest on deposits	160,952		79,833		51,581		47,103		33,090
Fixed charges including interest on deposits	$	208,381	$	104,937	$	67,701	$	59,100	$	44,704
Preferred stock dividends	9,095		9,095		7,977		—		—
Fixed charges including preferred stock dividends	$	217,476	$	114,032	$	75,678	$	59,100	$	44,704
Earnings for ratio computations (1)
Excluding interest on deposits	$	449,956	$	317,983	$	288,090	$	218,935	$	152,679
Including interest on deposits	$	610,908	$	397,816	$	339,671	$	266,038	$	185,769
Ratio of earnings to fixed charges (2)
Excluding interest on deposits	9.49		12.67		17.87		18.25		13.15
Including interest on deposits	2.93		3.79		5.02		4.50		4.16
Ratio of earnings to fixed charges and preferred dividends (1)
Excluding interest on deposits	7.96		9.30		11.96		18.25		13.15
Including interest on deposits	2.81		3.49		4.49		4.50		4.16

⁽¹⁾ Earnings are the sum of income before income tax expense and fixed charges.

⁽²⁾ For the purposes of calculating the ratio of earning to fixed charges, fixed charges are the sum of interest and debt expenses, excluding interest on deposits, and, in the second alternative, fixed charges are the sum of interest and debt expenses including interest on deposits.

EX-13

EXHIBIT 13

[Portions of Annual Report to Shareholders]

When we refer to the “Company,” “we,” “our” or “us” in this Report, we mean IBERIABANK Corporation and subsidiaries (consolidated). When we refer to the “Parent,” we mean IBERIABANK Corporation. See the Glossary of Defined Terms for terms used throughout this Report.

CAUTION ABOUT FORWARD-LOOKING STATEMENTS

To the extent that statements in this Report relate to future plans, objectives, financial results or performance of the Company, these statements are deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management’s current information, estimates and assumptions and the current economic environment, are generally identified by use of the words “may,” “plan,” “believe,” “expect,” “intend,” “will,” “should,” “continue,” “potential,” “anticipate,” “estimate,” “predict,” “project” or similar expressions, or the negative of these terms or other comparable terminology. The Company’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.

Forward-looking statements represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to: the level of market volatility, our ability to execute our growth strategy, including the availability of future bank acquisition opportunities, our ability to execute on our revenue and efficiency improvement initiatives, unanticipated delays, losses, business disruptions and diversion of management time related to the completion and integration of mergers and acquisitions, refinements to purchase accounting adjustments for acquired businesses and assets and assumed liabilities in these transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in acquisitions, actual results deviating from the Company’s current estimates and assumptions of timing and amounts of cash flows, credit risk of our customers, effects of low energy and commodity prices, effects of residential real estate prices and levels of home sales, our ability to satisfy capital and liquidity standards, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, competition from competitors with greater financial resources than the Company, reputational risks and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets, economic or business conditions in our markets or nationally, rapid changes in the financial services industry, significant litigation, cyber-security risks including dependence on our operational, technological, and organizational systems and infrastructure and those of third party providers of those services, hurricanes and other adverse weather events, and valuation of intangible assets. Factors that may cause actual results to differ materially from these forward-looking statements are discussed in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (the “SEC”), available at the SEC’s website, www.sec.gov, and the Company’s website, www.iberiabank.com, under the heading “Investor Relations” and then “Financial Information.” All information is as of the date of this Report. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

1

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis is intended to assist readers in understanding the consolidated financial condition and results of operations of the Company as of and for the period ended December 31, 2018. This discussion should be read in conjunction with the consolidated financial statements, accompanying footnotes and supplemental financial data included herein. Certain amounts in prior year presentations have been reclassified to conform to the current year presentation.

EXECUTIVE OVERVIEW

The Company is a $30.8 billion financial holding company with locations in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services.

Highlights of the Company's performance for the year ended December 31, 2018 are discussed below and compared to the results for the year ended December 31, 2017. Refer to subsequent sections of Management's Discussion and Analysis for further detail. Results in 2018 were impacted by U.S. tax reform changes under the Tax Cuts and Jobs Act (the "Tax Act"), which was signed into law on December 22, 2017, and the acquisitions of Sabadell United on July 31, 2017 and Gibraltar on March 23, 2018.

2018 Summary Financial Results

• Net income available to common shareholders for the year ended December 31, 2018 totaled $361.2 million, or $6.46 diluted EPS, compared to $133.3 million, or $2.59 diluted EPS, in 2017. Non-GAAP core EPS, which excludes merger-related costs and other items disclosed in Table 29 - Non-GAAP Measures, was $6.69 in 2018 compared to $4.47 in 2017.

• Net interest income was $1.0 billion for 2018, a $204.4 million, or 25%, increase compared to 2017. The increase in net interest income was primarily volume-related due to the Sabadell United and Gibraltar acquisitions, and was also impacted by higher earning asset yields offset by higher funding costs, ultimately resulting in an 11 basis point increase to net interest margin on a tax-equivalent basis to 3.75% from 3.64%.

• Non-interest income in 2018 decreased $49.6 million, or 25%, to $152.6 million, primarily driven by $49.9 million in losses on sales of available-for-sale securities and a decrease in mortgage income. This was partially offset by increases in certain of the Company's fee income businesses.

• Non-interest expense increased $56.5 million, or 8%, to $722.9 million at December 31, 2018, largely due to acquisition-related increases in salaries and employee benefits expense, branch consolidation and closure expenses, amortization of intangibles, net occupancy and equipment expenses, and other merger and conversion-related expenses.

• The Company recorded a provision for credit losses of $40.4 million for 2018, an $11.3 million, or 22%, decrease from the provision recorded in 2017, primarily driven by an improvement in asset quality in 2018.

• Income tax expense decreased $118.2 million, or 79%, to $32.3 million in 2018. Income tax expense was impacted by a $65.3 million non-core, permanent net tax benefit recorded in the fourth quarter of 2018 as a result of deductions claimed on the Company's 2017 income tax returns, partially offset by the repricing of its current and deferred income tax position associated with the Tax Act. The reduction in income tax expense in 2018 was also impacted by $51.0 million in income tax expense recorded in the prior year related to the net impact of the remeasurement of deferred taxes as a result of the Tax Act.

• Total loans increased $2.4 billion, or 12%, in 2018, driven by $1.4 billion of loans acquired from Gibraltar and organic growth.

• Total deposits increased $2.3 billion, or 11%, in 2018, driven by $1.1 billion of deposits acquired from Gibraltar, organic growth, and brokered deposit issuances.

2

• Asset quality and credit metrics improved as non-performing loans and leases to total loans and leases decreased to 0.62% at December 31, 2018, from 0.76% at December 31, 2017. Classified assets to total assets were 0.98% at the end of 2018 compared to 1.54% one year ago.

• Shareholders' equity increased$359.5 million, or 10%, from year-end 2017, primarily from undistributed income to common shareholders of $282.9 million, as well as the Company's issuance of 2.8 million shares of common stock in March 2018 as part of consideration for the Gibraltar acquisition. This increase was partially offset by the repurchase of 1,972,500 common shares, at a weighted average price of $75.46 per common share.

TABLE 1—KEY RATIOS

	Years Ended December 31,
	2018			2017			2016
Earnings Per Common Share	$	6.46		$	2.59		$	4.30
Core Earnings Per Common Share (Non-GAAP)	$	6.69		$	4.47		$	4.43
Return on Average Assets	1.25		%	0.58		%	0.92		%
Core Return on Average Assets (Non-GAAP)	1.30		%	0.98		%	0.95		%
Return on Average Common Equity	9.63		%	3.95		%	7.08		%
Core Return on Average Common Equity (Non-GAAP)	9.97		%	6.82		%	7.29		%
Efficiency Ratio	62.0		%	65.9		%	64.3		%
Core Efficiency Ratio (Non-GAAP)	55.9		%	59.6		%	62.0		%
Net Interest Margin (TE)	3.75		%	3.64		%	3.56		%

Significant Transactions

2018 Acquisition

Acquisition of Gibraltar Private Bank & Trust Company ("Gibraltar")

On March 23, 2018, the Company acquired Gibraltar for total consideration of $214.7 million. The acquisition added $1.4 billion in loans and $1.1 billion in deposits, after fair value adjustments. Gibraltar operated eight offices in total, with seven located in the Florida metropolitan statistical areas of Miami, Key West, and Naples and one in New York City. The Company incurred acquisition and conversion (collectively, "merger-related") expenses of $30.3 million during 2018 related to the acquisition of Gibraltar. The valuation of the Gibraltar acquisition was final as of December 31, 2018.

2017 Acquisition

Acquisition and Final Fair Value Estimates of Sabadell United Bank, N.A. ("Sabadell United")

On July 31, 2017, the Company acquired Sabadell United from Banco de Sabadell, S.A. for total consideration of $1.0 billion.The acquisition added $4.0 billion in loans and $4.4 billion in deposits after fair value adjustments. The acquisition expanded the Company's presence in Southeast Florida adding twenty-five offices serving the Miami metropolitan area and three offices in Naples, Sarasota and Tampa. The Company incurred merger-related expenses of $0.9 and $41.0 million during 2018 and 2017, respectively, related to the acquisition of Sabadell United. The valuation of the Sabadell United acquisition was final as of June 30, 2018.

3

Detailed information regarding the 2018 and 2017 acquisitions is provided in Note 3, Acquisition Activity, to the consolidated financial statements.The following table is a summary of the Company's acquisition activity during the years indicated:

TABLE 2—SUMMARY OF ACQUISITION ACTIVITY FROM 2014 TO 2018

(Dollars in millions)	Acquisition Date	Total Tangible Assets Acquired		Total Loans and Loans Held for Sale Acquired		Total Deposits Acquired		Goodwill		Other Intangible Assets
Acquisition
Trust One Bank - Memphis Operations	2014	$	180.2	$	86.5	$	191.3	$	8.6	$	2.6
Teche Holding Company	2014	854.4		700.5		639.6		80.4		7.4
First Private Holdings, Inc.	2014	350.9		299.3		312.3		26.3		0.5
Florida Bank Group, Inc.	2015	535.9		307.5		392.2		17.4		4.5
Old Florida Bancshares, Inc.	2015	1,540.0		1,068.9		1,389.8		100.8		6.8
Georgia Commerce Bancshares, Inc.	2015	1,022.3		793.4		908.0		86.7		6.7
Sabadell United Bank, N.A.	2017	5,451.0		4,030.8		4,382.8		441.0		66.6
SolomonParks Title & Escrow, LLC	2018	—		—		—		3.4		0.2
Gibraltar Private Bank & Trust Co.	2018	1,608.7		1,447.5		1,064.8		64.3		18.5
Total Acquisitions, 2014-2018		$	11,543.4	$	8,734.4	$	9,280.8	$	828.9	$	113.8

Enactment of U.S. Tax Reform

On December 22, 2017, the Tax Cuts and Jobs Act (the" Tax Act") was signed into law. Under ASC 740, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. In the case of US federal income taxes, the enactment date is the date the bill becomes law (i.e, upon presidential signature). Among other provisions, the most significant to the Company is the reduction of the corporate income tax rate from 35% to 21%. With respect to the legislation, the Company recognized a provisional one-time increase in tax expense of $51.0 million as of December 31, 2017 due to a remeasurement of deferred tax assets and liabilities resulting from the decrease in the corporate income tax rate. During the year ended December 31, 2018 the Company recognized a total adjustment of $6.6 million in income tax expense due to write down of deferred tax assets associated with the finalization of the accounting for the Sabadell United acquisition and the related impact of the Tax Act on those adjustments. This adjustment increased the year-to-date effective tax rate by 1.6% from 6.4% to 8.0%. Consistent with the guidance provided under ASC 740, the Company recorded impacts from enactment of the Tax Act in the fourth quarter of 2017 subject to Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"). SAB 118 provided a measurement period not to extend beyond one year of the enactment date to adjust the accounting for certain elements of the tax reform. The Company filed its 2017 federal and state tax returns in the fourth quarter of 2018, after which it was able to finalize deferred tax balances subject to the remeasurement under the Tax Act. The accounting for the tax effects of the Tax Act was complete as of December 22, 2018.

Additionally, a $65.3 million non-core, permanent net tax benefit was recorded in the fourth quarter of 2018. This benefit was a result of deductions claimed on the Company's 2017 income tax returns from the repricing of its current and deferred income tax position associated with the Tax Act.

Capital Transactions

On March 23, 2018, the Company completed the acquisition of Gibraltar. Under the terms of the Agreement and Plan of Merger, Gibraltar common shareholders received 1.9749 shares of IBERIABANK Corporation common stock for each outstanding share of Gibraltar common stock. Based on the Company's closing common stock price of $77.00 per share on the acquisition date, the aggregate value of the acquisition consideration paid at the time of closing was approximately $214.7 million.

4

On May 9, 2018, the Company completed its then current stock repurchase program, which commenced in May 2016, under which the Company repurchased a total of 537,506 shares at an average price per share of $68.94. On May 10, 2018, the Board of Directors of the Company authorized the repurchase of up to 1,137,500 shares of the Company's outstanding common stock, which was subsequently completed on November 5, 2018. During that time, the Company repurchased 1,137,500 shares of its common stock at a weighted average price of $77.54 per share. On November 5, 2018, the Board of Directors authorized a new repurchase plan of up to 2,765,000 shares of the Company's common stock. This repurchase authorization equated to approximately 5% of total common shares outstanding. Stock repurchases under this program will be made from time to time on the open market or in privately negotiated transactions at the discretion of the management of the Company. The timing of these repurchases will depend on market conditions and other requirements. The Company currently anticipates the share repurchase program will extend over a two-year time frame, or earlier if the shares have been repurchased. At December 31, 2018, there were approximately 2,265,000 remaining shares that may be repurchased under the current Board-approved plan.

During the fourth quarter of 2018, the Company repurchased 1,209,290 common shares, at a weighted average price of $72.61 per common share, of which 709,290 were repurchased under the completed Board-authorized plan and 500,000 were repurchased under the current Board-authorized plan.

5

FINANCIAL OVERVIEW

Selected consolidated financial and other data for the past five years is shown in the following tables.

TABLE 3—SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA^(1,2) 

	Years Ended December 31,										2018 vs. 2017
(Dollars in thousands, except per share data)	2018		2017		2016		2015		2014		$ Change		% Change
Income Statement Data
Interest and dividend income	$	1,221,629	$	913,783	$	716,939	$	646,858	$	504,815	307,846		34
Interest expense	208,381		104,937		67,701		59,100		44,704		103,444		99
Net interest income	1,013,248		808,846		649,238		587,758		460,111		204,402		25
Provision for credit losses	40,385		51,708		41,521		33,252		19,714		(11,323	)	(22	)
Net interest income after provision for credit losses	972,863		757,138		607,717		554,506		440,397		215,725		28
Non-interest income	152,562		202,147		227,717		220,393		173,628		(49,585	)	(25	)
Non-interest expense	722,898		666,406		563,464		567,961		472,960		56,492		8
Income before income tax expense	402,527		292,879		271,970		206,938		141,065		109,648		37
Income tax expense	32,278		150,466		85,193		64,094		35,683		(118,188	)	(79	)
Net income	370,249		142,413		186,777		142,844		105,382		227,836		160
Less: Preferred stock dividends	9,095		9,095		7,977		—		—		—		—
Net Income Available to Common Shareholders	$	361,154	$	133,318	$	178,800	$	142,844	$	105,382	227,836		171
Earnings per common share – basic	$	6.50	$	2.61	$	4.32	$	3.69	$	3.31	3.89		149
Earnings per common share – diluted	6.46		2.59		4.30		3.68		3.30		3.87		149
Cash dividends per common share	1.56		1.46		1.40		1.36		1.36		0.10		7

(Dollars in thousands, except per share data)	As of December 31,										2018 vs. 2017
	2018		2017		2016		2015		2014		$ Change	% Change
Balance Sheet Data
Total assets	$	30,833,015	$	27,904,129	$	21,659,190	$	19,504,068	$	15,757,904	2,928,886	10
Cash and cash equivalents	690,453		625,724		1,362,126		510,267		548,095		64,729	10
Investment securities	4,991,025		4,817,380		3,535,313		2,899,214		2,275,813		173,645	4
Loans and leases, net of unearned income	22,519,815		20,078,181		15,064,971		14,327,428		11,441,044		2,441,634	12
Goodwill and other intangible assets, net	1,324,269		1,277,464		759,823		765,655		548,130		46,805	4
Deposits	23,763,431		21,466,717		17,408,283		16,178,748		12,520,525		2,296,714	11
Borrowings	2,649,033		2,487,132		1,138,089		667,064		1,248,996		161,901	7
Shareholders’ equity	4,056,277		3,696,791		2,939,694		2,498,835		1,852,148		359,486	10
Book value per common share (3)	71.61		66.17		62.68		58.87		55.37		5.44	8
Tangible book value per common share (Non-GAAP)(3) (5)	47.61		42.56		45.80		40.35		39.08		5.05	12

6

	As of and For the Years Ended December 31,
	2018		2017		2016		2015		2014
Key Ratios (4)
Return on average assets	1.25	%	0.58	%	0.92	%	0.78	%	0.72	%
Return on average common equity	9.63		3.95		7.08		6.41		6.17
Return on average tangible common equity (Non-GAAP) (5)	15.48		5.85		10.44		9.65		9.04
Equity to assets at end of period	13.16		13.25		13.57		12.81		11.75
Earning assets to interest-bearing liabilities at end of period	142.24		144.20		146.60		142.28		135.15
Interest rate spread (6)	3.40		3.42		3.40		3.45		3.40
Net interest margin (TE) (6) (7)	3.75		3.64		3.56		3.58		3.51
Non-interest expense to average assets	2.44		2.72		2.77		3.09		3.23
Efficiency ratio (8)	62.01		65.92		64.25		70.57		74.73
Tangible efficiency ratio (TE) (Non-GAAP) (5) (7) (8)	59.77		63.85		62.43		68.39		72.40
Common stock dividend payout ratio	24.18		57.47		32.94		38.46		42.05
Asset Quality Data
Non-performing assets to total assets at end of period (9)	0.55	%	0.64	%	1.16	%	0.47	%	0.58	%
Allowance for credit losses to non-performing loans at end of period (9)	111.55		101.19		67.84		266.35		371.79
Allowance for credit losses to total loans at end of period	0.69		0.77		1.04		1.06		1.24
Consolidated Capital Ratios
Tier 1 leverage capital ratio	9.63	%	9.35	%	10.86	%	9.52	%	9.35	%
Common Equity Tier 1 (CET1)	10.72		10.57		11.84		10.10		N/A
Tier 1 risk-based capital ratio	11.25		11.16		12.59		10.73		11.17
Total risk-based capital ratio	12.33		12.37		14.13		12.17		12.30

⁽¹⁾  Certain balances and amounts have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

⁽²⁾  2018 data is impacted by the Company's acquisition of Gibraltar on March 23, 2018 and SolomonParks on January 12, 2018. 2017 data is impacted by the Company's acquisition of Sabadell United on July 31, 2017. 2015 data is impacted by the Company’s acquisitions of Florida Bank Group on February 28, 2015, Old Florida on March 31, 2015, and Georgia Commerce on May 31, 2015. 2014 data is impacted by the Company’s acquisitions of certain assets and liabilities of Trust One - Memphis on January 17, 2014, Teche on May 31, 2014, and First Private on June 30, 2014.

⁽³⁾  Shares used for book value purposes are net of shares held in treasury at the end of 2014.

⁽⁴⁾  With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.

⁽⁵⁾  Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

⁽⁶⁾  Interest rate spread represents the difference between the weighted average yield on earning assets and the weighted average cost of interest-bearing liabilities. Net interest margin represents net interest income as a percentage of average earning assets.

⁽⁷⁾  Fully taxable equivalent ("TE") calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for prior years, which approximates the marginal tax rate.

⁽⁸⁾  The efficiency ratio represents non-interest expense as a percentage of total revenues. Total revenues are the sum of net interest income and non-interest income.

⁽⁹⁾  Non-performing loans consist of non-accruing loans and loans 90 days or more past due. Non-performing assets consist of non-performing loans and other real estate owned, including repossessed assets.

7

APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

In preparing the consolidated financial statements and accompanying notes, management is required to apply significant judgment to various accounting, reporting, and disclosure matters. The accounting principles and methods used by the Company conform to GAAP and general banking accounting practices. The estimates and assumptions most significant to the Company are summarized in the following discussion and are further analyzed in the notes to the consolidated financial statements.

Accounting for Acquired Impaired Loans

The Company accounts for its acquisitions using the acquisition method of accounting. Accordingly, all acquired loans are recorded at fair value on the acquisition date. No ACL related to the acquired loans is recorded on the acquisition date, as the fair value of the loans acquired incorporates assumptions regarding credit risk. The fair value measurements include estimates related to market interest rates and projections of future cash flows that incorporate expectations of prepayments and the amount and timing of principal, interest and other cash flows, as well as any shortfalls thereof.

At the time of acquisition, all acquired loans are evaluated for impairment. Acquired loans, including all covered loans, for which at the time of acquisition the loan reflects credit deterioration since origination to the extent that it is probable that the Company will be unable to collect all the contractually required payments are classified as purchased impaired loans (“acquired impaired loans”). All other acquired loans are classified as purchased non-impaired loans (“acquired non-impaired loans”).

Allowance for Credit Losses

The allowance for credit losses has two components, the allowance for loan losses (contra asset) and the reserve for unfunded commitments (liability). Further, the allowance for loan losses consists of (i) probable incurred credit losses for legacy and acquired non-impaired loans and (ii) expected losses on acquired impaired loans.

Allowances for Legacy and Acquired Non-Impaired Loans

The legacy and acquired non-impaired ACL, which represent management’s estimate of probable losses inherent in the Company’s legacy and acquired non-impaired loan portfolios, involve a high degree of judgment and complexity. The Company’s policy is to establish reserves through provisions for credit losses in the consolidated statements of comprehensive income for estimated losses on delinquent and other problem loans, as well as loans which have not yet explicitly exhibited factors indicating credit weakness, when it is determined that losses have been incurred on such loans. Management’s determination of the appropriateness of the legacy and acquired non-impaired ACL is based on various factors requiring judgments and estimates, including management’s evaluation of the credit quality of the portfolio (determined through the assignment of risk ratings, assessments of past due status, and scores from credit agencies), historical loss experience, current economic conditions, the volume and type of lending conducted by the Company, composition of the portfolio, the amount of the Company’s classified assets, seasoning of the loan portfolio, value of collateral, the ability to monetize guarantor support and other relevant factors. Estimates in which management exercises significant judgment are the assessments of risk ratings, collateral values, projected principal and interest cash flows, guarantor support on the Company’s commercial loan portfolio, and the application of qualitative adjustments to the quantitative measurements across all portfolios. Other changes in estimates included in the estimation of the ACL may also have a significant impact on the consolidated financial statements. For further discussion of the ACL, see Note 1, Summary of Significant Accounting Policies, and Note 6, Allowance for Credit Losses, to the consolidated financial statements.

Allowance for Acquired Impaired Loans

Over the life of the acquired impaired loans, the Company continues to estimate the amount and timing of cash flows expected to be collected on either individual loans or on pools of loans sharing common risk characteristics. These expected cash flow estimates are updated for new information on a quarterly basis. Once cash flow estimates are updated, the Company evaluates whether the present value of these cash flows, as determined using effective interest rates, have changed. If the expected cash flows have decreased, the Company recognizes a provision for credit losses in its consolidated statement of comprehensive income. If the cash flows expected to be collected have increased, the Company adjusts the amount of accretable yield recognized on a prospective basis over the respective loan’s or pool’s remaining life.

8

Valuation of Goodwill, Intangible Assets and Other Purchase Accounting Adjustments

As previously mentioned, the Company accounts for acquisitions using the acquisition method of accounting. Under this method, the Company records the assets acquired, including identified intangible assets, and liabilities assumed, at their respective fair values, which in many instances involves estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. The determination of the useful lives as well as the appropriate amortization method of intangible assets is subjective. Any excess of consideration paid in the acquisition over the fair value of the identifiable net assets acquired is recorded as goodwill.

As discussed in Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements, goodwill is not amortized, but is assessed for potential impairment at the reporting unit level on an annual basis, as of October 1^st, or whenever events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than its respective carrying amount. As part of its testing, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the results of the qualitative assessment indicate that more likely than not a reporting unit’s fair value is less than its carrying amount, the Company determines the fair value of the respective reporting unit (through the application of various quantitative valuation methodologies) relative to its carrying amount to determine whether quantitative indicators of potential impairment are present (i.e., Step 1). The Company may also elect to bypass the qualitative assessment and begin with Step 1.

Effective September 30, 2018, the Company elected to early adopt FASB ASU No. 2017-04, Intangibles-Goodwill and Other (ASC 350): Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Therefore, if the results of Step 1 indicate that the fair value of the reporting unit is below its carrying amount (including goodwill), the Company will recognize a goodwill impairment loss for the excess of the reporting unit’s carrying amount over its fair value, limited to the total amount of goodwill allocated to that reporting unit.

As a result of the annual goodwill evaluation, the Company concluded goodwill was not impaired as of October 1, 2018. Further, no events or changes in circumstances between October 1, 2018 and December 31, 2018 indicated that it was more likely than not the fair value of any reporting unit had been reduced below its carrying value.

Based on the testing performed in 2018 and 2017, management concluded that for the IBERIABANK, Mortgage, and LTC reporting units, goodwill was not impaired at any time during those periods.

Goodwill impairment evaluations require management to utilize significant judgments and assumptions including, but not limited to, the general economic environment and banking industry, reporting unit future performance (i.e., forecasts), events or circumstances affecting a respective reporting unit (e.g., interest rate environment), and changes in the Company stock price, amongst other relevant factors. Management’s judgments and assumptions are based on the best information available at the time. Results could vary in subsequent reporting periods if conditions differ substantially from the assumptions utilized in completing the evaluations.

For additional information on goodwill and intangible assets, see Note 1, Summary of Significant Accounting Policies, and Note 9, Goodwill and Other Acquired Intangible Assets, to the consolidated financial statements. For additional information on the Company’s adoption of ASU No. 2017-04, Intangibles-Goodwill and Other (ASC 350): Simplifying the Test for Goodwill Impairment, see Note 2, Recent Accounting Pronouncements, to the consolidated financial statements.

Income Taxes

In the ordinary course of business, we conduct transactions in various taxing jurisdictions (Federal, state, and local) that are subject to complex income tax laws and regulations, which may differ by jurisdiction. The Company is often required to exercise significant judgment regarding the interpretation of these tax laws and regulations, in which the Company’s anticipated and actual liability could significantly vary based upon the taxing authority’s interpretation. Adjustments to current, accrued, or deferred taxes may occur due to modifications in tax rates, newly enacted laws, resolution of items with taxing authorities, alterations to interpretative statutory, judicial, and regulatory guidance that affect the Company’s tax positions, methods or elections changes, or other facts and circumstances.

9

RESULTS OF OPERATIONS

The Company reported net income available to common shareholders of $361.2 million, $133.3 million, and $178.8 million for the years ended December 31, 2018, 2017, and 2016, respectively. EPS on a diluted basis was $6.46 for 2018, $2.59 for 2017, and $4.30 for 2016.

The following discussion provides additional information on the Company’s operating results for the years ended December 31, 2018, 2017, and 2016, segregated by major income statement captions.

Net Interest Income/Net Interest margin

Net interest income is the difference between interest realized on earning assets and interest paid on interest-bearing liabilities and is also the largest driver of earnings. As such, it is subject to constant scrutiny by management. The rate of return and relative risk associated with earning assets are weighed to determine the appropriateness and mix of earning assets. Additionally, the need for lower cost funding sources is weighed against relationships with clients and future growth opportunities. The Company’s net interest spread, which is the difference between the yields earned on average earning assets and the rates paid on average interest-bearing liabilities, was 3.40%, 3.42%, and 3.40%, during the years ended December 31, 2018, 2017, and 2016, respectively. The Company’s net interest margin on a taxable equivalent basis, which is net interest income (TE) as a percentage of average earning assets, was 3.75%, 3.64%, and 3.56%, respectively, for the same periods.

10

The following table sets forth information regarding (i) the total dollar amount of interest income from earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rates; (iii) net interest income; (iv) net interest spread; and (v) net interest margin. Information is based on average daily balances during the indicated periods. Investment security market value adjustments and trade-date accounting adjustments are not considered to be earning assets and, as such, the net effect of these adjustments is included in non-earning assets.

TABLE 4—AVERAGE BALANCES, NET INTEREST INCOME AND INTEREST YIELDS / RATES

	2018							2017							2016
(Dollars in thousands)	Average Balance			Interest Income/ Expense (2)		Yield/ Rate (TE)(3)		Average Balance			Interest Income/ Expense(2)		Yield/ Rate (TE)(3)		Average Balance			Interest Income/ Expense (2)			Yield/ Rate (TE)(3)
Earning Assets:
Loans(1):
Commercial loans and leases	$	14,633,814		$	731,385	5.02	%	$	12,252,823		$	556,883	4.59	%	$	10,529,830		$	459,352		4.42	%
Residential mortgage loans	3,946,390			183,690		4.65	%	2,032,710			90,845		4.47	%	1,236,640			54,966			4.44	%
Consumer and other loans	3,061,891			171,587		5.60	%	2,884,239			155,219		5.38	%	2,894,584			148,718			5.14	%
Total loans and leases	21,642,095			1,086,662		5.04	%	17,169,772			802,947		4.71	%	14,661,054			663,036			4.56	%
Mortgage loans held for sale	83,087			3,748		4.51	%	144,658			4,679		3.23	%	204,669			6,564			3.21	%
Investment securities(4)	4,900,457			117,771		2.46	%	4,347,581			96,194		2.31	%	2,927,588			59,154			2.14	%
FDIC loss share receivable	—			—		—	%	7,646			—		—	%	29,396			(16,023		)	(54.51	)%
Other earning assets	573,949			13,448		2.34	%	813,032			9,963		1.23	%	654,357			4,208			0.64	%
Total earning assets	27,199,588			1,221,629		4.51	%	22,482,689			913,783		4.11	%	18,477,064			716,939			3.93	%
Allowance for loan and lease losses	(141,880		)					(144,426		)					(147,520		)
Non-earning assets	2,520,318							2,142,393							1,991,690
Total assets	$	29,578,026						$	24,480,656						$	20,321,234
Interest-bearing liabilities
Deposits:
NOW accounts	$	4,341,041		$	33,962	0.78	%	$	3,390,268		$	16,385	0.48	%	$	2,922,587		$	8,816		0.30	%
Savings and money market accounts	9,056,182			82,151		0.91	%	7,912,990			42,353		0.54	%	6,578,622			24,725			0.38	%
Time deposits	2,920,817			44,839		1.54	%	2,228,029			21,095		0.95	%	2,141,399			18,040			0.84	%
Total interest-bearing deposits(5)	16,318,040			160,952		0.99	%	13,531,287			79,833		0.59	%	11,642,608			51,581			0.44	%
Short-term borrowings	1,052,088			14,682		1.40	%	905,755			7,557		0.83	%	614,073			2,452			0.40	%
Long-term debt	1,392,148			32,747		2.35	%	854,425			17,547		2.05	%	616,309			13,668			2.22	%
Total interest-bearing liabilities	18,762,276			208,381		1.11	%	15,291,467			104,937		0.69	%	12,872,990			67,701			0.53	%
Non-interest-bearing demand deposits	6,602,434							5,440,477							4,582,533
Non-interest-bearing liabilities	330,588							240,362							228,117
Total liabilities	25,695,298							20,972,306							17,683,640
Shareholders’ equity	3,882,728							3,508,350							2,637,594
Total liabilities and shareholders’ equity	$	29,578,026						$	24,480,656						$	20,321,234
Net earning assets	$	8,437,312						$	7,191,222						$	5,604,074
Net interest income/ Net interest spread				$	1,013,248	3.40	%				$	808,846	3.42	%				$	649,238		3.40	%
Net interest income (TE) / Net interest margin (TE) (3)				$	1,019,008	3.75	%				$	819,154	3.64	%				$	658,471		3.56	%

⁽¹⁾  Total loans include non-accrual loans for all periods presented. Interest income in Table 4 above excludes approximately $9.3 million, $9.5 million, and $11.9 million, in interest income that would have been recorded in 2018, 2017, and 2016, respectively, if non-accrual loans (excluding acquired impaired loans) had been current in accordance with their contractual terms.

⁽²⁾  Interest income includes loan fees of $3.5 million, $3.0 million, and $2.9 million for the years ended December 31, 2018, 2017, and 2016, respectively.

⁽³⁾  Taxable equivalent yields are calculated using a rate of 21% for 2018 and a rate of 35% for prior years, which approximates the marginal tax rate.

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⁽⁴⁾  Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

⁽⁵⁾  Total deposit costs for the years ended December 31, 2018, 2017, and 2016 were 0.70%, 0.42%, and 0.32%, respectively.

2018 vs. 2017

Net interest income increased $204.4 million, or 25%, to $1.0 billion in 2018 when compared to 2017. Net interest margin on a tax-equivalent basis increased11 basis points to 3.75% from 3.64% when comparing the periods.

Interest income increased $307.8 million in 2018 when compared to 2017. The primarily volume-driven increase in interest income is a result of a $4.7 billion, or 21%, increase in average earning assets, primarily due to acquisitions. Average loans increased$4.5 billion, or 26%, and average investment securities increased $0.6 billion, or 13% when compared to 2017. The yield on average earning assets was 40 basis points higher at 4.51% compared to 4.11% in the prior year.

Interest expense increased$103.4 million in 2018 primarily due to an $81.1 millionincrease in interest expense on average interest-bearing deposits. A 40 basis point increase in the rate paid during 2018 and growth of $2.8 billion in the average balance of interest-bearing deposits, primarily related to the recent acquisitions, drove the increase in interest expense. In addition, interest expense on the Company’s borrowings increased $22.3 million in 2018 as a result of an increase in average short-term borrowings of $146.3 million and an increase in average long-term debt of $537.7 million. The cost of average interest-bearing liabilities rose 42 basis points to 111 basis points compared to 69 basis points in the prior year.

The increase in both earning asset yields and funding costs were impacted by five FOMC interest rate increases of 25 basis points each from December 2017 through December 2018.

2017 vs. 2016

Net interest income increased $159.6 million, or 25%, to $0.8 billion in 2017 when compared to 2016. Net interest margin on a tax-equivalent basis increased 8 basis points to 3.64% from 3.56% when comparing the periods.

Interest income increased $196.8 million in 2017 when compared to 2016. This increase was primarily volume-related as a result of the Sabadell United acquisition. Average loans increased $2.5 billion and average investment securities increased $1.4 billion when compared to 2016. The declining balance of the FDIC loss share receivable and the elimination of the negative yield related to the amortization expense also contributed to a $16.0 million increase in interest income. The Company terminated all FDIC loss share receivables in December of 2016 before acquiring an insignificant amount from Sabadell United on July 31, 2017. The yield on average earning assets was 18 basis points higher at 4.11% compared to 3.93% in the prior year.

Interest expense on average interest-bearing liabilities increased $37.2 million in 2017 primarily due to a $28.3 million increase in interest expense on average interest-bearing deposits. Growth of $1.9 billion in the average balance of interest-bearing deposits, primarily related to the Sabadell United acquisition, and a 15 basis point increase in the rate paid during 2017 drove the decrease in interest expense on average interest-bearing deposits. In addition, interest expense on the Company’s borrowings increased $9.0 million in 2017 as a result of an increase in average short-term borrowings of $291.7 million and an increase in average long-term debt of $238.1 million. The cost of average interest-bearing liabilities rose 16 basis points to 69 basis points compared to 53 basis points in the prior year.

12

The following table displays the dollar amount of changes in interest income and interest expense for major components of earning assets and interest-bearing liabilities. The table distinguishes between (i) changes attributable to volume (changes in average volume between periods times the average yield/rate for the two periods), (ii) changes attributable to rate (changes in average rate between periods times the average volume for the two periods), and (iii) total increase (decrease). Changes attributable to both volume and rate are allocated ratably between the volume and rate categories.

TABLE 5—SUMMARY OF CHANGES IN NET INTEREST INCOME

	2018 Compared to 2017								2017 Compared to 2016
	Change Attributable To								Change Attributable To
(Dollars in thousands)	Volume			Rate		Net Increase (Decrease)			Volume			Rate		Net Increase (Decrease)
Earning assets:
Loans:
Commercial loans and leases	$	110,526		$	63,976	$	174,502		$	78,841		$	18,690	$	97,531
Residential mortgage loans	88,925			3,920		92,845			35,576			303		35,879
Consumer and other loans	10,280			6,088		16,368			(137		)	6,638		6,501
Loans held for sale	(2,399		)	1,468		(931		)	(1,941		)	56		(1,885		)
Investment securities	12,844			8,733		21,577			30,824			6,216		37,040
FDIC loss share receivable	—			—		—			6,814			9,209		16,023
Other earning assets	(3,019		)	6,504		3,485			1,277			4,478		5,755
Net change in income on earning assets	217,157			90,689		307,846			151,254			45,590		196,844
Interest-bearing liabilities:
Deposits:
NOW accounts	5,482			12,095		17,577			1,589			5,980		7,569
Savings and money market accounts	7,540			32,258		39,798			6,174			11,454		17,628
Time deposits	7,919			15,825		23,744			752			2,303		3,055
Borrowings	14,152			8,173		22,325			6,688			2,296		8,984
Net change in expense on interest-bearing liabilities	35,093			68,351		103,444			15,203			22,033		37,236
Change in net interest spread	$	182,064		$	22,338	$	204,402		$	136,051		$	23,557	$	159,608

Provision for Credit Losses

The provision for credit losses represents the expense necessary to maintain the ACL at a level that in management's judgment is appropriate to absorb probable losses inherent in the portfolio at the balance sheet date.

2018 vs. 2017

The Company recorded a provision for credit losses of $40.4 million for the year ended December 31, 2018, an $11.3 million, or 22%decrease from the provision recorded for the same period of 2017. The decrease in the Company’s provision for credit losses in 2018 was largely due to an improvement in asset quality, as both non-performing loans and classified loans as a percentage of total loans declined when compared to 2017. In addition, net charge-offs were lower than in 2017. The Company's provision in 2018 was also limited by asset resolutions and cash flow events on acquired loans that reduced the required ALLL for that portfolio. The Company's provision for credit losses covered 124% of net charge-offs in 2018 compared to 93% coverage in 2017.

2017 vs. 2016

The Company's provision for credit losses of $51.7 million for the year ended December 31, 2017 was $10.2 million higher than the provision recorded for the same period of 2016. This increase was largely the result of an elevated level of charge-offs, primarily from energy-related credits, as well as legacy loan growth, but was favorably impacted by lower reserves on impaired loans. Net charge-offs were $22.1 million higher in 2017 than 2016.

13

Refer to the "Asset Quality" section of MD&A and Note 6, Allowance for Credit Losses, to the consolidated financial statements for additional information.

Non-interest Income

The Company’s operating results for the year ended December 31, 2018 included non-interest income of $152.6 millioncompared to $202.1 million and $227.7 million for the years ended December 31, 2017 and 2016, respectively. The decrease in non-interest income in 2018 was primarily driven by losses on sales of available for sale securities. Non-interest income as a percentage of total gross revenue (defined as total interest and non-interest income) was 11% in 2018, 18% in 2017, and 24% in 2016.

The following table illustrates the primary components of non-interest income.

TABLE 6—NON-INTEREST INCOME

									2018 vs. 2017				2017 vs. 2016
(Dollars in thousands)	2018			2017			2016		$ Change		% Change		$ Change		% Change
Mortgage income	$	46,424		$	63,570		$	83,853	(17,146	)	(27	)	(20,283	)	(24	)
Service charges on deposit accounts	52,803			47,678			44,135		5,125		11		3,543		8
Title revenue	24,149			21,972			22,213		2,177		10		(241	)	(1	)
Broker commissions	9,195			9,161			14,391		34		—		(5,230	)	(36	)
ATM/debit card fee income	10,295			10,199			10,008		96		1		191		2
Credit card and merchant-related income	12,540			10,904			11,245		1,636		15		(341	)	(3	)
Trust department income	15,981			9,705			7,174		6,276		65		2,531		35
(Loss) gain on sale of available for sale securities	(49,900		)	(148		)	2,001		(49,752	)	(33,616	)	(2,149	)	(107	)
Other non-interest income	31,075			29,106			32,697		1,969		7		(3,591	)	(11	)
	$	152,562		$	202,147		$	227,717	(49,585	)	(25	)	(25,570	)	(11	)

2018 vs. 2017

Non-interest income decreased$49.6 million in 2018 when compared to 2017. This decrease was primarily driven by $49.9 million in losses on sales of available for sale securities. The losses were primarily the result of the Company's restructuring of its investment portfolio during the fourth quarter of 2018. The Company sold $1.0 billion of its securities at a loss and subsequently purchased an additional $1.2 billion in higher yielding securities.

Non-interest income in 2018 was also impacted by a $17.1 million decrease in mortgage income. The majority of the decline in mortgage income was volume-related, including a $374.5 million decrease in mortgage loan originations and a $378.3 million decrease in sales volume. The volume-related decreases were partially due to reduced activity driven by the higher interest rate environment. The Company's focus on originating mortgage loans has partially shifted with a mix of new products retained on the balance sheet versus sold in the secondary market in 2017 and 2018.

The decreases in 2018 when compared to 2017 were partially offset by increases in trust department income, service charges on deposit accounts, and title revenue, which were primarily driven by recent acquisitions.

2017 vs. 2016

Non-interest income decreased $25.6 million in 2017 when compared to 2016. This decrease was primarily driven by a $20.3 million decrease in mortgage income. The majority of the decline in mortgage income was volume-related, including a $615.7 million decrease in mortgage loan originations and a $603.9 million decrease in sales volume, while reduced margins in the secondary market contributed to a smaller portion of the decline. The volume-related decreases were due to the loss of mortgage production offices throughout the mortgage footprint, coupled with reduced activity due to higher interest rates. Locked pipeline volume also decreased $53 million compared to 2016.

Non-interest income in 2017 was also impacted by a $5.2 million decrease in broker commissions, the result of lower investment banking income and trading and research income. Trading and research income declined due to ICP's trading and research desk closing in 2017. Other non-interest income decreased by $3.6 million primarily due to a $4.1 million decrease in customer swap commission income.

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The decreases in 2017 when compared to 2016 were partially offset by increases in service charges on deposit accounts and trust department income.

Non-interest Expense

The Company’s results for 2018 included non-interest expense of $722.9 million, an increase of $56.5 million when compared to 2017. The increases in expenses when compared to 2017 are primarily driven by recent acquisitions. For the year, the Company’s efficiency ratio was 62.0%, compared to 65.9% in 2017.

The following table illustrates the primary components of non-interest expense.

TABLE 7—NON-INTEREST EXPENSE

								2018 vs. 2017				2017 vs. 2016
(Dollars in thousands)	2018			2017		2016		$ Change		% Change		$ Change		% Change
Salaries and employee benefits	$	414,741		$	379,527	$	331,686	35,214		9		47,841		14
Net occupancy and equipment	77,246			70,663		65,797		6,583		9		4,866		7
Communication and delivery	15,951			14,252		12,383		1,699		12		1,869		15
Marketing and business development	18,371			13,999		12,332		4,372		31		1,667		14
Computer services expense	39,680			36,790		25,091		2,890		8		11,699		47
Professional services	28,698			48,545		19,153		(19,847	)	(41	)	29,392		153
Credit and other loan-related expense	19,088			18,411		13,840		677		4		4,571		33
Insurance	25,274			21,815		17,270		3,459		16		4,545		26
(Gain) loss on early termination of FDIC loss share agreements	(2,708		)	—		17,798		(2,708	)	(100	)	(17,798	)	(100	)
Travel and entertainment	10,035			11,287		8,481		(1,252	)	(11	)	2,806		33
Amortization of acquisition intangibles	21,678			12,590		8,415		9,088		72		4,175		50
Impairment of long-lived assets and other losses	27,780			12,246		6,111		15,534		127		6,135		100
Other non-interest expense	27,064			26,281		25,107		783		3		1,174		5
	$	722,898		$	666,406	$	563,464	56,492		8		102,942		18

2018 vs. 2017

Salaries and employee benefits increased $35.2 million in 2018 when compared to 2017, primarily related to associates brought over from the recent acquisitions, which increased compensation and related benefits expenses. In addition, merit raises, off cycle pay increases, severance and retention expenses, incentive expense, and restricted stock grants contributed to the increase in salaries and employee benefits between the periods.

Impairment of long-lived assets and other losses increased $15.5 million from 2017, primarily due to branch consolidations and closures in 2018. Amortization of acquisition intangibles as well as net occupancy and equipment expenses also increased from 2017 due to recent acquisition activity.

The increases in non-interest expense in 2018 when compared to 2017 were partially offset by a decrease of $19.8 million in professional services. This decrease was driven by $15.9 million of merger-related legal and professional expenses as a result of the Sabadell United acquisition and the $11.7 million settlement of the HUD legal matter in 2017, offset by a $4.1 million increase in consulting services primarily from tax-related consulting during 2018.

2017 vs. 2016

Salaries and employee benefits increased $47.8 million in 2017 when compared to 2016. This increase was driven by a $14.0 million increase in compensation expense related to acquired associates from Sabadell United, a $9.8 million increase in fringe benefits including an increase in the Company's 401(k) match, increases in legacy headcount, merit raises, off-cycle increases and restricted stock grants. The Company had 3,552 full-time equivalent employees at the end of 2017, an increase of 452, or 15%, from 2016. Professional services increased $29.4 million from 2016, primarily due to the Sabadell United acquisition, as well as the HUD legal matter, which was settled on December 11, 2017, in the amount of $11.7 million.

15

Computer services expense increased by $11.7 million when compared to 2016, due to acquisition-related computer service expenses as well as the implementation of new software, including more cloud-based applications.

The increases in 2017 when compared to 2016 were offset by the $17.8 million loss incurred in December of 2016 to terminate loss share agreements with the FDIC ahead of their contractual maturities.

Income Taxes

For the years ended December 31, 2018, 2017, and 2016, the Company recorded income tax expense of $32.3 million, $150.5 million, and $85.2 million, respectively, which resulted in an effective income tax rate of 8.0% in 2018, 51.4% in 2017, and 31.3% in 2016. Income tax expense in 2018 and 2017 was impacted by the passage of the Tax Act in December 2017. Excluding adjustments related to the Tax Act, the effective tax rate would have been 22.6% in 2018 and 34.0% in 2017.

2018 vs. 2017

The difference between the Company's effective tax rate in 2018 and the U.S. statutory tax rate of 21% primarily relates to a $65.3 million non-core, permanent net tax benefit recorded in the fourth quarter of 2018 as a result of deductions claimed on the Company's 2017 income tax returns, partially offset by the repricing of its current and deferred income tax position associated with the Tax Act. In addition, the Company recorded a $6.6 million expense related to the finalization of accounting for the Sabadell United acquisition and its net impact from the remeasurement of deferred tax assets as a result of the Tax Act. The effective tax rate was also impacted by state income taxes (net of federal income tax benefit), tax-exempt income, non-deductible expenses, and the recognition of tax credits. The effective tax rate may vary significantly due to fluctuations in the amount and source of pretax income, changes in amounts of non-deductible expenses, and timing of the recognition of tax credits.

2017 vs. 2016

As discussed previously, the effective tax rate in 2017 was significantly impacted by tax reform. During 2017, the Company recorded $51.0 million related to the estimated net impact from the remeasurement of deferred tax assets and liabilities as a result of the passage of the Tax Act. The effective tax rate in 2017 was also impacted by the accrual for the HUD matter, as well as the non-deductible portion of merger-related expenses related to the Sabadell United acquisition. In addition, the effective tax rate in 2017 was impacted by our level of investment in tax credits and the increase in deductions from taxable income for certain incentive-based expenses (restricted stock and certain stock options) as a result of the implementation of ASU No. 2016-09 during the first quarter of 2017. This ASU requires the Company to recognize the excess tax benefits/(shortfalls) of exercised or vested awards as income tax benefit/(expense) through the income statement, whereas these excess tax benefits/(shortfalls) were previously recognized in additional paid-in-capital on the balance sheet.

FINANCIAL CONDITION

EARNING ASSETS

The following discussion highlights the Company’s major categories of earning assets.

Loans and Leases

The Company had total loans and leases of $22.5 billion at December 31, 2018, an increase of $2.4 billion, or 12%, from December 31, 2017. The increase was a result of $1.4 billion acquired in the first quarter of 2018 from Gibraltar and legacy loan growth of $2.5 billion, partially offset by pay-downs and pay-offs on loans, primarily from prior period acquisitions.

16

The major categories of loans and leases outstanding at December 31, 2018 and 2017 are presented in the following tables.

TABLE 8—SUMMARY OF LOANS AND LEASES

	2018				2017				$ Change		% Change
(Dollars in thousands)	Balance		Mix		Balance		Mix
Commercial loans and leases:
Real estate - construction	$	1,196,366	5	%	$	1,240,396	6	%	(44,030	)	(4	)
Real estate - owner-occupied	2,395,822		11		2,375,321		12		20,501		1
Real estate - non-owner occupied	5,796,117		26		5,322,513		26		473,604		9
Commercial and industrial (1)	5,737,017		25		5,135,067		26		601,950		12
Total commercial loans and leases	15,125,322		67		14,073,297		70		1,052,025		7
Residential mortgage loans	4,359,156		19		3,056,352		15		1,302,804		43
Consumer loans:
Home Equity	2,304,694		10		2,292,275		12		12,419		1
Other	730,643		4		656,257		3		74,386		11
Total consumer loans	3,035,337		14		2,948,532		15		86,805		3
Total loans and leases	$	22,519,815	100	%	$	20,078,181	100	%	2,441,634		12

⁽¹⁾  Includes equipment financing leases

Loan Portfolio Components

The Company believes its loan portfolio is diversified by product and geography throughout its footprint. With the Gibraltar acquisition, the Company added $1.4 billion of loans and expanded its presence in Southeast Florida and entered New York. Excluding acquired loans, loan growth in 2018 was strongest in the the Energy Group (primarily reserve-based lending), Corporate Asset Finance division (equipment financing business), and the New Orleans and Atlanta markets. Loans in the Energy Group increased $480.6 million, or 112% since December 31, 2017. The Corporate Asset Finance division, which was created in 2017, grew loans and leases by $234.3 million, or 87%, in 2018, while the New Orleans and Atlanta markets had growth of $264.5 million and $118.8 million, respectively.

The Company’s loan to deposit ratio at December 31, 2018 and 2017 was 95% and 94%, respectively. The percentage of fixed- rate loans to total loans decreased from 41% at the end of 2017 to 39% at December 31, 2018. The table below sets forth the composition of the loan portfolio at December 31, followed by a discussion of activity by major loan type.

TABLE 9—TOTAL LOANS BY LOAN TYPE

	2018				2017				2016				2015				2014
(Dollars in thousands)	Balance		Mix		Balance		Mix		Balance		Mix		Balance		Mix		Balance		Mix
Commercial loans and leases:
Commercial real estate	$	9,388,305	42	%	$	8,938,230	44	%	$	6,846,549	45	%	$	6,125,927	43	%	$	4,432,844	39	%
Commercial and industrial	5,737,017		25		5,135,067		26		4,060,032		28		4,072,928		29		3,381,238		30
Total commercial loans and leases	15,125,322		67		14,073,297		70		10,906,581		73		10,198,855		72		7,814,082		69
Residential mortgage loans	4,359,156		19		3,056,352		15		1,267,400		8		1,195,319		8		1,080,297		9
Consumer loans:
Home equity	2,304,694		10		2,292,275		12		2,155,926		14		2,066,167		14		1,601,105		14
Other	730,643		4		656,257		3		735,064		5		867,087		6		945,560		8
Total consumer loans	3,035,337		14		2,948,532		15		2,890,990		19		2,933,254		20		2,546,665		22
Total loans and leases	$	22,519,815	100	%	$	20,078,181	100	%	$	15,064,971	100	%	$	14,327,428	100	%	$	11,441,044	100	%

17

Commercial Loans

Total commercial loans and leases increased$1.1 billion, or 7% , from December 31, 2017. Commercial loans and leases decreased to 67% of the total loan portfolio at December 31, 2018 compared to 70% at December 31, 2017, primarily due to a mix-shift from the acquisition of a relatively large residential mortgage portfolio from Gibraltar. Unfunded commitments on commercial loans and leases including approved loan commitments not yet funded were $6.0 billion at December 31, 2018, an increase of $990.8 million, or 20%, when compared to the end of the prior year.

Commercial real estate loans include loans to commercial customers for medium-term financing of land and buildings or for land development or construction of a building. These loans are repaid from revenues through operations of the businesses, rents of properties, sales of properties and refinances. The Company’s underwriting standards generally provide for loan terms of three to seven years, with amortization schedules of generally no more than twenty-five years. Low loan-to-value ratios are generally maintained and usually limited to no more than 80% at the time of origination. The commercial real estate portfolio is comprised of approximately 13% construction loans, 25% owner-occupied loans, and 62% non-owner-occupied loans as of December 31, 2018, compared to 14%, 27%, and 59%, respectively, at December 31, 2017. Commercial real estate loans increased$450.1 million, or 5%, during 2018, primarily from $291.6 million acquired from Gibraltar.

Commercial and industrial loans and leases represent loans to commercial customers to finance general working capital needs, equipment purchases and leases and other projects where repayment is derived from cash flows resulting from business operations. The Company originates commercial business loans on a secured and, to a lesser extent, unsecured basis. The Company’s commercial business loans may be term loans or revolving lines of credit. Term loans are generally structured with terms of no more than three to seven years, with amortization schedules of generally no more than fifteen years. Commercial business term loans are generally secured by equipment, machinery or other corporate assets. The Company also provides for revolving lines of credit generally structured as advances upon perfected security interests in accounts receivable and inventory. Revolving lines of credit generally have annual maturities. The Company obtains personal guarantees of the principals as additional security for most commercial business loans. As of December 31, 2018, commercial and industrial loans and leases totaled $5.7 billion, a $602.0 million, or 12%increase, from December 31, 2017, which includes approximately $36.1 million in loans acquired from Gibraltar. Commercial and industrial loans and leases comprised 25% of the total portfolio at December 31, 2018 and 26% at December 31, 2017.

The following table details the Company’s commercial loans and leases by state. Other loans include primarily equipment financing leases and corporate asset financing loans, which the Company does not classify by state.

TABLE 10—COMMERCIAL LOANS AND LEASES BY STATE OF ORIGINATION

(Dollars in thousands)	2018		2017		$ Change	% Change
Louisiana	$	3,521,596	$	3,472,648	48,948	1
Florida	4,756,957		4,671,023		85,934	2
Alabama	1,289,146		1,238,482		50,664	4
Texas	2,310,642		1,961,832		348,810	18
Georgia	1,078,983		1,023,600		55,383	5
Arkansas	711,484		704,283		7,201	1
Tennessee	584,119		576,538		7,581	1
New York	44,026		—		44,026	100
South Carolina and North Carolina	92,800		20,246		72,554	358
Other	735,569		404,645		330,924	82
Total	$	15,125,322	$	14,073,297	1,052,025	7

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Residential Mortgage Loans

Residential mortgage loans consist of loans to consumers to finance a primary residence. The residential mortgage loan portfolio is comprised of non-conforming 1-4 family mortgage loans secured by properties located in the Company's market areas. The residential mortgage loan portfolio is originated under terms and documentation that permit their sale in a secondary market. The larger mortgage loans of current and prospective private banking clients are generally retained to enhance relationships, but also tend to be more profitable due to the expected shorter durations and relatively lower servicing costs associated with loans of this size. The Company does not originate or hold negative amortization, option ARM, or other exotic mortgage loans in its portfolio. The Company makes insignificant investments in loans that would be considered sub-prime (e.g., loans with a credit score of less than 620) in order to facilitate compliance with relevant Community Reinvestment Act regulations.

Total residential mortgage loans increased$1.3 billion, or 43%, compared to December 31, 2017, primarily the result of approximately $917.8 million in acquired Gibraltar residential mortgage loans, as well as private banking originations in 2018.

Consumer Loans

The Company offers consumer loans in order to provide a full range of retail financial services to customers in the communities in which it operates. The Company originates substantially all of its consumer loans in its primary market areas. At December 31, 2018, $3.0 billion, or 14%, of the total loan portfolio was comprised of consumer loans, compared to $2.9 billion, or 15%, at the end of 2017.

The majority of the consumer loan portfolio is comprised of home equity loans. Home equity lending allows customers to borrow against the equity in their home and is secured by a first or second mortgage on the borrower’s residence. Real estate market values at the time the loan is secured affect the amount of credit extended. Changes in these values may impact the extent of potential losses. Home equity loans increased$12.4 million during the year to $2.3 billion at December 31, 2018. Unfunded commitments related to home equity loans and lines were $1.0 billion at December 31, 2018, an increase of $113.4 million versus the prior year.

All other consumer loans, which consist of credit card loans, automobile loans and other personal loans, increased $74.4 million, or 11%, from December 31, 2017, primarily from an increase of $122.1 million in other personal loans, $25.2 million of which was acquired from Gibraltar, partially offset by a decrease in indirect automobile loans, a product that is no longer offered.

In order to assess the risk characteristics of the loan portfolio, the Company considers the current U.S. economic environment and that of its primary market areas. See Note 6, Allowance for Credit Losses, to the consolidated financial statements for credit quality factors by loan portfolio segment.

Additional information on the Company’s consumer loan portfolio is presented in the following tables. For the purposes of Table 12, unscoreable consumer loans have been included with loans with credit scores below 660. Credit scores reflect the most recent information available as of the dates indicated.

TABLE 11—CONSUMER LOANS BY STATE OF ORIGINATION

(Dollars in thousands)	2018		2017		$ Change		% Change
Louisiana	$	1,072,628	$	1,119,462	(46,834	)	(4	)
Florida	956,159		805,453		150,706		19
Alabama	268,998		277,601		(8,603	)	(3	)
Texas	126,562		131,942		(5,380	)	(4	)
Georgia	142,067		131,910		10,157		8
Arkansas	216,817		237,627		(20,810	)	(9	)
Tennessee	78,013		89,383		(11,370	)	(13	)
New York	46,146		—		46,146		100
South Carolina and North Carolina	214		4		210		5,250
Other	127,733		155,150		(27,417	)	(18	)
Total	$	3,035,337	$	2,948,532	86,805		3

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TABLE 12—CONSUMER LOANS BY CREDIT SCORE

(Dollars in thousands)	2018		2017
Above 720	$	1,708,417	$	1,666,261
660-720	666,132		702,118
Below 660	660,788		580,153
Total consumer loans	$	3,035,337	$	2,948,532

Loan Maturities

The following table sets forth the scheduled contractual maturities of the Company’s total loan portfolio at December 31, 2018, unadjusted for scheduled principal reductions, prepayments or repricing opportunities. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdraft loans are reported as due in one year or less. The average life of a loan may be substantially less than the contractual terms because of scheduled amortization and prepayments.

TABLE 13—LOAN MATURITIES BY LOAN TYPE

(Dollars in thousands)	One Year or Less		One Through Five Years		After Five Years		Total
Commercial real estate	$	1,591,718	$	4,873,656	$	2,922,931	$	9,388,305
Commercial and industrial	1,446,497		3,195,288		1,095,232		5,737,017
Residential mortgage	34,728		288,550		4,035,878		4,359,156
Consumer and other	319,868		552,627		2,162,842		3,035,337
Total	$	3,392,811	$	8,910,121	$	10,216,883	$	22,519,815

Mortgage Loans Held for Sale

The Company sells the majority of conforming mortgage loan originations in the secondary market rather than assume the interest rate risk associated with these longer term assets. Upon the sale, the Company retains servicing on a limited portion of these loans. Loans held for sale totaled $107.7 million at December 31, 2018, a decrease of $27.2 million, or 20%, from year-end 2017, as there were lower volumes of originations for sale from reduced activity due to higher interest rates.

In 2018, the Company originated approximately $1.5 billion in mortgage loans, a 20% decrease from $1.8 billion in originations in 2017.

Loans held for sale have primarily been fixed-rate single-family residential mortgage loans under contracts to be sold in the secondary market. In most cases, loans in this category are sold within thirty days of closing. Buyers generally have recourse to return a purchased loan to the Company under limited circumstances. See Note 1 to the consolidated financial statements for further discussion.

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Investment Securities

Investment securities increased by $173.6 million, or 4%, since December 31, 2017 to $5.0 billion at December 31, 2018. Investment securities approximated 16% and 17% of total assets at December 31, 2018 and December 31, 2017, respectively. The following table shows the carrying values of securities by category as of December 31 for the years indicated.

TABLE 14—CARRYING VALUE OF SECURITIES

	2018				2017				2016				2015				2014
(Dollars in thousands)	Balance		Mix		Balance		Mix		Balance		Mix		Balance		Mix		Balance		Mix
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	998	—	%	$	40,615	1	%	$	212,358	6	%	$	252,083	9	%	$	315,553	14	%
Obligations of states and political subdivisions	178,888		4		274,204		6		283,199		8		187,961		7		90,190		4
Mortgage-backed securities	4,507,109		90		4,161,905		86		2,851,709		80		2,264,813		78		1,751,615		77
Other securities	96,584		2		113,338		2		98,831		3		95,429		3		1,495		—
	4,783,579		96		4,590,062		95		3,446,097		97		2,800,286		97		2,158,853		95
Securities held to maturity:
U.S. Government-sponsored enterprise obligations	—		—		—		—		—		—		—		—		10,000		—
Obligations of states and political subdivisions	188,684		4		206,736		4		64,726		2		69,979		2		77,597		4
Mortgage-backed securities	18,762		—		20,582		1		24,490		1		28,949		1		29,363		1
	207,446		4		227,318		5		89,216		3		98,928		3		116,960		5
	$	4,991,025	100	%	$	4,817,380	100	%	$	3,535,313	100	%	$	2,899,214	100	%	$	2,275,813	100	%

All of the Company's mortgage-backed securities were issued by government-sponsored enterprises at December 31, 2018. The Company does not hold any Fannie Mae or Freddie Mac preferred stock, corporate equity, collateralized debt obligations, collateralized loan obligations, or structured investment vehicles, nor does it hold any private label collateralized mortgage obligations, subprime, Alt-A, sovereign debt, or second lien elements in its investment portfolio. At December 31, 2018, the Company's investment portfolio did not contain any securities that are directly backed by subprime or Alt-A mortgages.

During November and December of 2018, the Company restructured portions of its investment portfolio selling approximately $1.0 billion of securities at a pre-tax loss of approximately $49.8 million ($37.9 million after-tax) and subsequently purchased $1.2 billion in securities during the quarter. The incremental yield on the purchased securities was 164 basis points.

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The following table summarizes activity in the Company’s investment securities portfolio during 2018 and 2017. There were no transfers of securities between investment categories during 2018.

TABLE 15—INVESTMENT PORTFOLIO ACTIVITY

	Available for Sale						Held to Maturity
(Dollars in thousands)	2018			2017			2018			2017
Balance at beginning of period	$	4,590,062		$	3,446,097		$	227,318		$	89,216
Purchases	1,959,952			1,475,008			—			148,234
Acquisitions	19,169			964,123			—			—
Sales, net of gains	(1,085,382		)	(682,497		)	—			—
Principal maturities, prepayments and calls, net of gains	(635,183		)	(568,250		)	(16,841		)	(8,687		)
Amortization of premiums and accretion of discounts	(26,216		)	(26,728		)	(3,031		)	(1,445		)
Market value adjustment	(1,865		)	(17,691		)	—			—
Reclassification adjustments(1)	(36,958		)	—			—			—
Balance at end of period	$	4,783,579		$	4,590,062		$	207,446		$	227,318

⁽¹⁾ Adjustments related to the reclassification of certain equity investments in accordance with ASU 2016-01, adopted as of January 1, 2018.

Funds generated as a result of sales and prepayments of investment securities are used to fund loan growth and purchase other securities. The Company continues to monitor market conditions and take advantage of market opportunities with appropriate risk and return elements.

The Company assesses the nature of the unrealized losses in its investment portfolio at least quarterly to determine if there are losses that are deemed other-than-temporary. Based on its analysis, the Company concluded no declines in the estimated fair value of the Company’s investment securities were deemed to be other-than-temporary at December 31, 2018 and 2017. Note 4, Investment Securities, to the consolidated financial statements provides further information on the Company’s investment securities.

Asset Quality

The lending activities of the Company are governed by underwriting policies established by management and approved by the Board Risk Committee of the Board of Directors. Commercial risk personnel, in conjunction with senior lending personnel, underwrite the vast majority of commercial loans. The Company provides centralized underwriting of substantially all residential mortgage, small business and consumer loans. Established loan origination procedures require appropriate documentation, including financial data and credit reports. For loans secured by real property, the Company generally requires property appraisals, title insurance or a title opinion, hazard insurance, and flood insurance, where appropriate.

Loan payment performance is monitored and late charges are generally assessed on past due accounts. Delinquent and problem loans are administered by functional teams of specialized risk officers. Risk ratings on commercial exposures (as described below) are reviewed on an ongoing basis and are adjusted as necessary based on the obligor’s risk profile and debt capacity. The loan review department is responsible for independently assessing and validating risk ratings assigned to commercial exposures through a periodic sampling process.All other loans are also subject to loan reviews through a similar periodic sampling process.

The Company utilizes an asset risk classification system in accordance with guidelines established by the FRB as part of its efforts to monitor commercial asset quality. In connection with their examinations of insured institutions, both federal and state examiners also have the authority to identify problem assets and, if appropriate, reclassify them. There are three classifications for problem assets: “substandard,” “doubtful” and “loss”, all of which are considered adverse classifications. Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the weaknesses are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full questionable, and there is a high probability of loss based on currently existing facts, conditions and values. An asset classified as loss is considered not collectible and of such little value that continuance as an asset of the Company is not warranted. The Company exercises judgment in determining the risk classification of its commercial loans.

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Commercial loans are placed on non-accrual status when any of the following occur: 1) the loan is maintained on a cash basis because of deterioration in the financial condition of the borrower; 2) collection of the full contractual amount of principal or interest is not expected (even if the loan is currently paying as agreed);  or 3) when principal or interest has been in default for a period of 90 days or more, unless the loan is both well secured and in the process of collection. Factors considered in determining the collection of the full contractual amount of principal or interest include assessment of the borrower’s cash flow, valuation of underlying collateral, and the ability and willingness of guarantors to provide credit support. Certain commercial loans are also placed on non-accrual status when payment is not past due and full payment of principal and interest is expected, but we have doubt about the borrower’s ability to comply with existing repayment terms. Consideration will be given to placing a loan on non-accrual due to the deterioration of the debtor’s repayment ability, the repayment of the loan becoming dependent on the liquidation of collateral, an existing collateral deficiency, the loan being classified as "doubtful" or "loss", the client filing for bankruptcy, and/or foreclosure being initiated. Regarding all classes within the C&I and CRE portfolios, the determination of a borrower’s ability to make the required principal and interest payments is based on an examination of the borrower’s current financial statements, industry, management capabilities, and other qualitative factors.

When a loan is placed on non-accrual status, the accrual of interest income ceases and accrued but unpaid interest is generally reversed against interest income.

Real estate acquired by the Company through foreclosure or by deed-in-lieu of foreclosure is classified as OREO, and is recorded at the lesser of the related loan balance (the pro-rata carrying value for acquired loans) or estimated fair value less costs to sell. Closed bank branches are also classified as OREO and recorded at the lower of cost or market value.

Under GAAP, certain loan modifications or restructurings are designated as TDRs. In general, the modification or restructuring of a debt constitutes a TDR if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider under current market conditions. See Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements for further information.

Non-performing Assets

The Company defines non-performing assets as non-accrual loans, accruing loans more than 90 days past due, OREO, and foreclosed property. Management continually monitors loans and transfers loans to non-accrual status when warranted.

The Company accounts for loans currently or formerly covered by loss sharing agreements with the FDIC, other loans acquired with deteriorated credit quality, as well as all loans acquired with significant discounts that did not exhibit deteriorated credit quality at acquisition, in accordance with ASC Topic 310-30. Collectively, all loans accounted for under ASC 310-30 are referred to as "acquired impaired loans". Application of ASC Topic 310-30 results in significant accounting differences, compared to loans originated or acquired by the Company that are not accounted for under ASC 310-30. See Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements for further details.

Due to the significant difference in accounting for acquired impaired loans, the Company believes inclusion of these loans in certain asset quality ratios that reflect non-performing assets in the numerator or denominator (or both) results in significant distortion to these ratios. In addition, because loan level charge-offs related to acquired impaired loans are not recognized in the financial statements until the cumulative amounts exceed the original loss projections on a pool basis, the net charge-off ratio for acquired impaired loans is not consistent with the net charge-off ratio for other loan portfolios. The inclusion of these loans in certain asset quality ratios could result in a lack of comparability across quarters or years, and could impact comparability with other portfolios that were not impacted by acquired impaired loan accounting. The Company believes that the presentation of certain asset quality measures excluding acquired impaired loans, as indicated below, and related amounts from both the numerator and denominator provides better perspective into underlying trends related to the quality of its loan portfolio. Accordingly, the asset quality measures in the tables below present asset quality information excluding acquired impaired loans, as indicated within each table, and related amounts.

23

The following table sets forth the composition of the Company’s non-performing assets and TDRs at December 31.

TABLE 16—NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS

																2018 vs. 2017
(Dollars in thousands)	2018			2017			2016			2015			2014			$ Change		% Change
Non-accrual loans and leases:
Commercial	$	85,112		$	111,726		$	202,481		$	32,097		$	10,083		(26,614	)	(24	)
Mortgage	30,396			17,387			13,733			14,783			15,614			13,009		75
Consumer	21,676			16,275			12,288			9,469			11,139			5,401		33
Total non-accrual loans and leases	137,184			145,388			228,502			56,349			36,836			(8,204	)	(6	)
Accruing loans and leases 90 days or more past due	2,128			6,900			1,385			915			1,340			(4,772	)	(69	)
Total non-performing loans and leases (1)	139,312			152,288			229,887			57,264			38,176			(12,976	)	(9	)
OREO and foreclosed property (2)	30,394			26,533			21,199			34,131			53,947			3,861		15
Total non-performing assets (1)	169,706			178,821			251,086			91,395			92,123			(9,115	)	(5	)
Performing troubled debt restructurings (3)	80,807			81,291			104,369			38,441			1,430			(484	)	(1	)
Total non-performing assets and performing troubled debt restructurings (1)	$	250,513		$	260,112		$	355,455		$	129,836		$	93,553		(9,599	)	(4	)
Non-performing loans and leases to total loans (1) (4)	0.62		%	0.76		%	1.53		%	0.40		%	0.33		%
Non-performing assets to total assets (1) (4)	0.55		%	0.64		%	1.16		%	0.47		%	0.58		%
Non-performing assets and performing troubled debt restructurings to total assets (1) (4)	0.81		%	0.93		%	1.64		%	0.67		%	0.59		%
Allowance for credit losses to non-performing loans (4)	111.55		%	101.19		%	67.84		%	266.35		%	371.78		%
Allowance for credit losses to total loans (4)	0.69		%	0.77		%	1.04		%	1.06		%	1.24		%

⁽¹⁾  Non-performing loans and assets include accruing loans 90 days or more past due.

⁽²⁾  OREO and foreclosed property at December 31, 2018, 2017, 2016, 2015, and 2014 include $9.0 million, $4.5 million, $4.8 million, $8.1 million, and $11.6 million, respectively, of former bank properties held for development or resale.

⁽³⁾  Performing troubled debt restructurings for December 31, 2018, 2017, 2016, 2015 and 2014 exclude $61.5 million, $68.5 million, $138.9 million, $23.4 million, and $2.2 million, respectively, in troubled debt restructurings that meet non-performing asset criteria.

⁽⁴⁾  Non-performing loans exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

Total non-performing assets decreased $9.1 million, or 5%, compared to December 31, 2017, driven by a decrease in non-performing loans and leases of $13.0 million, or 9%, offset by a $3.9 million, or 15%, increase in OREO and foreclosed property.

The decrease in non-performing loans and leases was driven by decreases in both non-accrual loans and leases and accruing loans and leases past due more than 90 days. A decrease in commercial non-performing loans was partially offset by an increase in mortgage non-performing loans, which was a result of a larger mortgage loan portfolio after the Gibraltar acquisition and a limited number of loans moving to non-accrual. The decrease in commercial non-accrual loans was primarily related to payments and charge-offs of non-accrual loans since December 31, 2017. Non-performing loans were 0.62% of total loans at December 31, 2018, 14 basis points lower than at December 31, 2017. Total non-performing assets were 0.55% of total assets at December 31, 2018, 9 basis points lower than December 31, 2017. Including TDRs that are in compliance with their modified terms, total non-performing assets and TDRs decreased $9.6 million during 2018.

The increase in OREO and foreclosed property from 2017 was primarily the result of an increase of $4.4 million in former bank properties as closed branches were moved out of service and into former bank properties. The increase was partially offset by the sale of OREO properties during the year.

24

At December 31, 2018, the Company had $154.4 million of commercial assets classified as substandard, $27.7 million of commercial assets classified as doubtful, and no commercial assets classified as loss. Accordingly, the aggregate of the Company’s classified commercial assets was 0.59% of total assets and 1.20% of total commercial loans at December 31, 2018. At December 31, 2017, classified commercial assets totaled $298.5 million, or 1.07% of total assets, and 2.12% of total commercial loans.

In addition to the problem loans described above, there were $157.2 million of commercial loans classified as special mention at December 31, 2018, which in management’s opinion were subject to potential future rating downgrades. Special mention loans are defined as loans where known information about possible credit problems of the borrowers causes management to have some doubt as to the ability of these borrowers to comply with the present loan repayment terms, which may result in future disclosure of these loans as non-performing. Special mention loans at December 31, 2018decreased $52.7 million, or 25%, from December 31, 2017, primarily from upgrades to a limited number of customer relationships during 2018 as overall asset quality improved. As a percentage of total commercial loans, special mention commercial loans decreased45 basis points from December 31, 2017 to 1.04% at the end of 2018.

Past Due and Non-accrual Loans

Past due status is based on the contractual terms of loans. At December 31, 2018, total loans past due, including non-accrual loans, were 0.87% of total loans, a decrease of 20 basis points from December 31, 2017. Additional information on past due loans is presented in the following table.

TABLE 17—PAST DUE AND NON-ACCRUAL LOAN SEGREGATION ⁽¹⁾ 

	December 31, 2018				December 31, 2017
(Dollars in thousands)	Amount		% of Outstanding Balance		Amount		% of Outstanding Balance		$ Change		% Change
Accruing loans:
30-59 days past due	$	38,579	0.17	%	$	36,818	0.18	%	1,761		5
60-89 days past due	18,753		0.08		24,899		0.12		(6,146	)	(25	)
90-119 days past due	2,128		0.01		5,986		0.03		(3,858	)	(64	)
120 days past due or more	—		—		914		0.01		(914	)	(100	)
	59,460		0.26		68,617		0.34		(9,157	)	(13	)
Non-accrual loans	137,184		0.61		145,388		0.73		(8,204	)	(6	)
Total past due and non-accrual loans	$	196,644	0.87	%	$	214,005	1.07	%	(17,361	)	(8	)

⁽¹⁾  Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

Total past due and non-accrual loans decreased $17.4 million from December 31, 2017 to $196.6 million at December 31, 2018. The change was due to both a $9.2 million decrease in accruing past due loans and a decrease of $8.2 million in non-accrual loans. Of the total accruing past due loans, 96% were past due less than 60 days at December 31, 2018 compared to 90% at year-end 2017.

Allowance for Credit Losses

The allowance for credit losses represents management’s best estimate of probable credit losses inherent at the balance sheet date. Determination of the allowance for credit losses involves a high degree of complexity and requires significant judgment. Several factors are taken into consideration in the determination of the overall allowance for credit losses. Based on facts and circumstances available, management of the Company believes that the allowance for credit losses was appropriate at December 31, 2018 to cover probable losses in the Company’s loan portfolio. However, future adjustments to the allowance may be necessary, and the results of operations could be adversely affected, if circumstances differ substantially from the assumptions used by management in determining the allowance for credit losses. See the “Application of Critical Accounting Policies and Estimates” section of this MD&A and Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements for more information.

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The following tables set forth the activity in the Company’s allowance for credit losses.

TABLE 18—SUMMARY OF ACTIVITY IN THE ALLOWANCE FOR CREDIT LOSSES

(Dollars in thousands)	2018			2017			2016			2015			2014
Allowance for loan and lease losses at beginning of period	$	140,891		$	144,719		$	138,378		$	130,131		$	143,074
Provision charged to operations	39,472			51,111			44,424			30,908			19,060
Transfer of balance to OREO and other	(7,172		)	934			(2,781		)	(10,419		)	(22,157		)
Adjustment attributable to FDIC loss share arrangements	—			—			(1,497		)	(1,360		)	(4,260		)
Charge-offs:
Commercial	(31,189		)	(47,448		)	(25,983		)	(4,085		)	(2,564		)
Residential mortgage	(334		)	(365		)	(313		)	(362		)	(613		)
Consumer	(14,024		)	(14,653		)	(13,543		)	(12,854		)	(8,806		)
	(45,547		)	(62,466		)	(39,839		)	(17,301		)	(11,983		)
Recoveries:
Commercial	9,005			2,286			2,643			2,325			3,066
Residential mortgage	121			437			180			95			246
Consumer	3,801			3,870			3,211			3,999			3,085
	12,927			6,593			6,034			6,419			6,397
Net charge-offs	(32,620		)	(55,873		)	(33,805		)	(10,882		)	(5,586		)
Allowance for loan and lease losses at end of period	140,571			140,891			144,719			138,378			130,131
Reserve for unfunded lending commitments at beginning of period	13,208			11,241			14,145			11,801			11,147
Balance created in acquisition accounting	709			1,370			—			—			—
Provision for (Reversal of) unfunded lending commitments	913			597			(2,904		)	2,344			654
Reserve for unfunded lending commitments at end of period	14,830			13,208			11,241			14,145			11,801
Allowance for credit losses at end of period	$	155,401		$	154,099		$	155,960		$	152,523		$	141,932
Allowance for loan and lease losses to non-performing assets (1)	82.83		%	78.79		%	57.64		%	151.41		%	141.26		%
Allowance for loan and lease losses to total loans and leases at end of period	0.62			0.70			0.96			0.97			1.14
Net charge-offs to average loans and leases	0.15			0.33			0.23			0.08			0.05

⁽¹⁾  Non-performing assets include accruing loans 90 days or more past due. For purposes of this table, non-performing assets exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

TABLE 19—ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES

	2018				2017				2016				2015				2014
	Reserve %		% of Loans		Reserve %		% of Loans		Reserve %		% of Loans		Reserve %		% of Loans		Reserve %		% of Loans
Commercial	75	%	67	%	77	%	70	%	76	%	72	%	73	%	72	%	70	%	69	%
Residential mortgage	9	%	19	%	6	%	15	%	8	%	8	%	8	%	8	%	7	%	9	%
Consumer	16	%	14	%	17	%	15	%	16	%	20	%	19	%	20	%	23	%	22	%
Total allowance for credit losses	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

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The allowance for credit losses was $155.4 million at December 31, 2018, or 0.69% of total loans, $1.3 million higher than at December 31, 2017. The allowance for credit losses as a percentage of loans was 0.77% at December 31, 2017. The decrease in the allowance for credit losses as a percentage of loans and leases was primarily the result of the acquired Gibraltar loans, as those acquired loans are recorded at estimated fair value as of the acquisition date, which includes an estimate of expected losses in this portfolio, and as a result, no allowance for loan losses was established as of the acquisition date. Additionally, recoveries on acquired loans during 2018 reduced the required allowance for credit losses for that portfolio. Also contributing to the decrease in the allowance for credit losses was an overall improvement in asset quality.

Net charge-offs during 2018 were $32.6 million, or 0.15% of average loans and leases, as compared to net charge-offs of $55.9 million, or 0.33%, for 2017. The decrease in net charge-offs was the result of a $16.9 million decrease in gross charge-offs and a $6.3 million increase in gross recoveries, primarily from one large commercial recovery of $3.3 million in 2018. The provision for credit losses covered 124% and 93% of net charge-offs in 2018 and 2017, respectively.

At December 31, 2018 and 2017, the allowance for loan and lease losses covered 101% and 93% of total non-performing loans and leases, respectively.

Cash and cash equivalents

Cash and cash equivalents totaled $690.5 million at December 31, 2018, an increase of $64.7 million, or 10%, from December 31, 2017. The increase in cash and cash equivalents was primarily driven by deposit growth during the year, partially offset by additional investment security purchases and loan growth. Interest-bearing deposits at other institutions increased$89.7 million, or 29%, to $396.3 million at December 31, 2018, partially offset by a $25.0 million decrease in cash and due from banks to $294.2 million at December 31, 2018.

Short-term investments held in interest-bearing deposits at other institutions primarily result from excess funds invested overnight in interest-bearing deposit accounts at the FRB and the FHLB of Dallas. These balances fluctuate daily depending on the funding needs of the Company and earn interest at the current FRB and FHLB short-term rates. The Company’s cash activity is further discussed in the “Liquidity and Other Off-Balance Sheet Activities” section below.

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Other Assets

The following table details other asset balances as of December 31:

TABLE 20—OTHER ASSETS COMPOSITION

											2018 vs. 2017
(Dollars in thousands)	2018		2017		2016		2015		2014		$ Change		% Change
Other Earning Assets
FHLB stock, FRB stock, and other equity securities	$	192,436	$	177,370	$	93,718	$	66,008	$	74,130	15,066		8
FDIC loss share receivable	—		8,622		—		39,878		69,627		(8,622	)	N/M
Other interest-earning assets	6,910		7,160		6,660		5,660		5,412		(250	)	(3	)
Reverse repurchase agreements	—		—		1,268		—		—		—		—
Total other earning assets	199,346		193,152		101,646		111,546		149,169		6,194		3
Non-Earning Assets
Bank-owned life insurance	226,219		170,570		160,875		131,575		122,573		55,649		33
Accrued interest receivable	84,933		75,821		52,124		47,863		37,696		9,112		12
Other real estate owned	30,394		26,533		21,200		34,131		53,947		3,861		15
Derivative assets	27,048		31,265		38,886		30,486		32,903		(4,217	)	(13	)
Investment in tax credit entities	147,110		112,016		76,592		141,951		139,326		35,094		31
Other non-earning assets	324,733		170,585		166,940		152,181		92,108		154,148		90
Total non-earning assets	840,437		586,790		516,617		538,187		478,553		253,647		43
Total other assets	$	1,039,783	$	779,942	$	618,263	$	649,733	$	627,722	259,841		33

The $154.1 millionincrease in other non-earning assets was primarily the result of a $124.1 million increase in net tax asset balances at December 31, 2018 as a result of deductions claimed on the 2017 income tax returns associated with unrealized losses on securities and loans and depreciation on real and personal property.

Bank-owned life insurance increased$55.6 million from the prior year primarily due to the purchase of additional BOLI policies.

The $35.1 millionincrease in investment in tax credit entities was primarily related to the addition of $41.8 million in new market tax credits in 2018, partially offset by a decrease in historic tax credits.

The $15.1 million increase in FHLB stock, FRB stock, and other equity securities was primarily the result of $18.7 million in stock acquired from Gibraltar.

FUNDING SOURCES

Deposits, both those obtained from clients in its primary market areas and those acquired, are the Company’s principal source of funds for use in lending and other business purposes. The Company attracts local deposit accounts by offering a wide variety of products, competitive interest rates and convenient branch office locations and service hours, as well as on-line banking services at www.iberiabank.com and www.virtualbank.com. Increasing core deposits is a continuing focus of the Company and has been accomplished through the development of client relationships and acquisitions. Short-term and long-term borrowings are also important funding sources for the Company. Other funding sources include subordinated debt and shareholders’ equity. Refer to the “Liquidity and Other Off-Balance Sheet Activities” section below for further discussion of the Company’s sources and uses of funding. The following discussion highlights the major changes in the mix of deposits and other funding sources during 2018.

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Deposits

The Company’s ability to attract and retain customer deposits is critical to the Company’s continued success. Total deposits increased$2.3 billion, or 11%, to $23.8 billion at December 31, 2018, driven by $1.1 billion of deposits acquired from Gibraltar in March of 2018, brokered deposit issuances, and organic growth throughout the year. Deposit growth during 2018 was strongest in the Energy Group, the Atlanta market, and the Virtual Bank division (digital banking).

The Company's deposit balances generally increase at the end of any given year due to real estate tax collections by our municipal customers. These balances typically remain on deposit with the Company 45 to 60 days. Given the short-term nature of these seasonal funds, the deposit balances tied to these seasonal flows are held in liquid investments until they are withdrawn from the Company. The Company currently expects these deposits to decline over the beginning of 2019.

The following table sets forth the composition of the Company’s deposits as of December 31:

TABLE 21—DEPOSIT COMPOSITION BY PRODUCT

																					2018 vs. 2017
(Dollars in thousands)	2018				2017				2016				2015				2014				$ Change		% Change
Non-interest-bearing deposits	$	6,542,490	28	%	$	6,209,925	29	%	$	4,928,878	28	%	$	4,352,229	27	%	$	3,195,430	26	%	332,565		5
NOW accounts	4,514,113		19		4,348,939		20		3,314,281		19		2,974,176		19		2,462,841		20		165,174		4
Money market accounts	8,237,291		35		7,674,291		36		6,219,532		36		6,010,882		37		4,168,504		33		563,000		7
Savings accounts	828,914		3		846,074		4		814,385		5		716,838		4		577,513		4		(17,160	)	(2	)
Time deposits	3,640,623		15		2,387,488		11		2,131,207		12		2,124,623		13		2,116,237		17		1,253,135		52
Total deposits	$	23,763,431	100	%	$	21,466,717	100	%	$	17,408,283	100	%	$	16,178,748	100	%	$	12,520,525	100	%	2,296,714		11

The following table details large-denomination time deposits by remaining maturity dates at December 31:

TABLE 22—REMAINING MATURITIES OF TIME DEPOSITS GREATER THAN $100,000

(Dollars in thousands)	2018				2017				2016				2015				2014
3 months or less	$	326,621	16	%	$	317,197	22	%	$	241,128	21	%	$	228,336	16	%	$	204,041	19	%
3 – 12 months	1,086,521		53		753,423		51		457,796		40		631,634		46		547,876		51
12 – 36 months	566,736		28		319,864		22		339,137		30		390,820		28		274,038		25
More than 36 months	58,730		3		77,036		5		97,702		9		135,950		10		54,844		5
Total time deposits greater than $100,000	$	2,038,608	100	%	$	1,467,520	100	%	$	1,135,763	100	%	$	1,386,740	100	%	$	1,080,799	100	%

Short-term Borrowings

The Company may obtain advances from the FHLB of Dallas based upon its ownership of FHLB stock and certain pledges of its real estate loans and investment securities, provided certain standards related to the Company’s creditworthiness have been met. These advances are made pursuant to several credit programs, each of which has its own interest rate and range of maturities. The level of short-term borrowings can fluctuate significantly on a daily basis depending on funding needs and the source of funds chosen to satisfy those needs.

The Company also enters into repurchase agreements to facilitate customer transactions that are accounted for as secured borrowings. These transactions typically involve the receipt of deposits from customers that the Company collateralizes with its investment portfolio and have an average rate of 45.4 basis points.

Total short-term borrowings increased$491.6 million, or 50%, from December 31, 2017, to $1.5 billion at December 31, 2018. An increase of $692.0 million in outstanding short-term FHLB advances was partially offset by a decrease of $200.4 million in repurchase transactions. The increase in short-term FHLB advances was primarily due to additional advances made during 2018, causing the average rate on short-term borrowings to rise as new advances in 2018 had higher rates due to increases in short-term market rates.

On an average basis, short-term borrowings increased$146.3 million, or 16%, from 2017, primarily due to additional short-term FHLB advances held in 2018.

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Total short-term borrowings were 6% of total liabilities and 56% of total borrowings at December 31, 2018, compared to 4% and 40%, respectively, at December 31, 2017. On an average basis, short-term borrowings were 4% of total liabilities and 43% of total borrowings in 2018, compared to 4% and 51%, respectively, during 2017. For additional information, see Note 12, Short-term Borrowings, in the Notes to the consolidated financial statements.

Long-term Debt

Long-term debt decreased$329.7 million, or 22%, to $1.2 billion at December 31, 2018, which included $405.1 million in acquired long-term FHLB advances from Gibraltar which were immediately paid off upon acquisition during the first quarter of 2018. The Company made an additional $1.3 billion in repayments, partially offset by $922.0 million in new long-term FHLB advances and $15.9 million of additional notes payable in 2018. On a period-end basis, long-term debt was 4% and 6% of total liabilities at December 31, 2018 and 2017, respectively.

On average, long-term debt increased to $1.4 billion in 2018, $537.7 million, or 63%, higher than 2017, mainly due to higher levels of long-term FHLB advances held by the Company throughout 2018 as compared to 2017. Average long-term debt was 5% of total liabilities during the current year, compared to 4% during 2017.

Long-term debt at December 31, 2018 included $986.0 million in fixed-rate advances from the FHLB of Dallas that cannot be prepaid without incurring substantial penalties. The remaining debt consisted of $120.1 million of the Company’s junior subordinated debt and $60.0 million in notes payable on investments in new market tax credit entities. Interest on the junior subordinated debt is payable quarterly and may be deferred at any time at the election of the Company for up to 20 consecutive quarterly periods. During any deferral period, the Company is subject to certain restrictions, including being prohibited from declaring dividends to its common shareholders. The junior subordinated debt is redeemable by the Company in whole or in part. For additional information, see Note 13, Long-term Debt, in the Notes to the consolidated financial statements.

CAPITAL RESOURCES

Shareholders' equity increased$359.5 million, or 10%, during 2018, primarily from undistributed income to common shareholders of $282.9 million, as well as the Company's issuance of 2.8 million shares of common stock at a price of $77.00 per common share on March 23, 2018 as part of Gibraltar acquisition. The net increase to equity from the offering was $214.7 million. See Note 3, Acquisition Activity, to the consolidated financial statements for more information. Shareholders' equity was negatively impacted by the repurchase of 1,972,500 common shares, at a weighted average price of $75.46 per common share. Subsequent to year-end and through February 21, 2019, the Company repurchased 226,921 common shares for approximately $17.5 million. See Note 15, Shareholders' Equity, Capital Ratios, and Other Regulatory Matters, to the consolidated financial statements for more information on the Company's common stock repurchase activity.

The Company's dividend to common shareholders was $1.56 per common share in 2018 compared to $1.46 in 2017, a 7% increase. On a year-to-date basis, the dividend payout ratio was 24.2% for the current year, down from 57.5% in the comparable period of 2017.

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Regulatory Capital

Federal regulations impose minimum regulatory capital requirements on all institutions with deposits insured by the FDIC. The FRB imposes similar capital regulations on bank holding companies. Compliance with bank and bank holding company regulatory capital requirements, which include leverage and risk-based capital guidelines, are monitored by the Company on an ongoing basis. Under the risk-based capital method, a risk weight is assigned to balance sheet and off-balance sheet items based on regulatory guidelines.

At December 31, 2018 and 2017, the Company exceeded all required regulatory capital ratios, and the regulatory capital ratios of IBERIABANK were in excess of the levels established for “well-capitalized” institutions, as shown in the following table.

TABLE 23—REGULATORY CAPITAL RATIOS

Ratio	Entity	2018 Well- Capitalized Minimums		December 31, 2018		December 31, 2017
				Actual		Actual
Tier 1 Leverage	IBERIABANK Corporation	N/A		9.63	%	9.35	%
	IBERIABANK	5.00	%	9.38		9.10
Common Equity Tier 1 (CET1)	IBERIABANK Corporation	N/A		10.72		10.57
	IBERIABANK	6.50	%	10.95		10.86
Tier 1 risk-based capital	IBERIABANK Corporation	N/A		11.25		11.16
	IBERIABANK	8.00	%	10.95		10.86
Total risk-based capital	IBERIABANK Corporation	N/A		12.33		12.37
	IBERIABANK	10.00	%	11.58		11.55

Minimum capital ratios are subject to a capital conservation buffer. In order to avoid limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. This capital conservation buffer is calculated as the lowest of the differences between the actual CET1 ratio, Tier 1 Risk-Based Capital Ratio, and Total Risk-Based Capital ratio and the corresponding minimum ratios. At December 31, 2018, the required minimum capital conservation buffer was 1.875%. On January 1, 2019, the capital conservation buffer increased to the fully phased-in rate of 2.50%. At December 31, 2018, the capital conservation buffers of the Company and IBERIABANK were 4.33% and 3.58%, respectively. Management believes that at December 31, 2018, the Company and IBERIABANK would have met all capital adequacy requirements on a fully phased-in basis if such requirements were then effective.

Capital ratios at December 31, 2018 were favorably impacted by the increase in undistributed income available to common shareholders and by the common stock issued in the 2018 from the Gibraltar acquisition. Capital ratios at the end of 2018 were negatively impacted by the Company's repurchase of 2.0 million common stock shares during the year.

LIQUIDITY AND OTHER OFF-BALANCE SHEET ACTIVITIES

Liquidity refers to the Company’s ability to generate sufficient cash flows to support its operations and to meet its obligations, including the withdrawal of deposits by customers, commitments to originate loans, and its ability to repay its borrowings and other liabilities. Liquidity risk is the risk to earnings or capital resulting from the Company’s inability to fulfill its obligations as they become due. Liquidity risk also develops from the Company’s failure to timely recognize or address changes in market conditions that affect the ability to liquidate assets in a timely manner or to obtain adequate funding to continue to operate on a profitable basis.

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The primary sources of funds for the Company are deposits and borrowings. Other sources of funds include repayments and maturities of loans and investment securities, securities sold under agreements to repurchase, and, to a lesser extent, off-balance sheet borrowing availability. Certificates of deposit scheduled to mature in one year or less at December 31, 2018 totaled $2.5 billion. Based on past experience, management believes that a significant portion of maturing deposits will remain with the Company. Additionally, the majority of the investment securities portfolio is classified as available-for-sale, which provides the ability to liquidate unencumbered securities as needed. Of the $5.0 billion in the investment securities portfolio, $2.6 billion is unencumbered and $2.4 billion has been pledged to support repurchase transactions, public funds deposits and certain long-term borrowings. Due to the relatively short implied duration of the investment securities portfolio, the Company has historically experienced consistent cash inflows on a regular basis. Securities cash flows are highly dependent on prepayment speeds and could change materially as economic or market conditions change. See Note 11, Deposits, Note 12, Short-Term Borrowings, and Note 13, Long-Term Debt, to the consolidated financial statements for additional discussion related to the Company’s funding requirements.

Scheduled cash flows from the amortization and maturities of loans and securities are relatively predictable sources of funds. Conversely, deposit flows, prepayments of loan and investment securities, and draws on customer letters and lines of credit are greatly influenced by general interest rates, economic conditions, competition, and customer demand. The FHLB of Dallas provides an additional source of liquidity to make funds available for general requirements and also to assist with the variability of less predictable funding sources. At December 31, 2018, the Company had $2.2 billion of outstanding FHLB advances, $1.2 billion of which was short-term and $986.0 million was long-term. Additional FHLB borrowing capacity available at December 31, 2018 amounted to $7.0 billion. At December 31, 2018, the Company also had various funding arrangements with the Federal discount window and commercial banks providing up to $331.2 million in the form of federal funds and other lines of credit. At December 31, 2018, there were no balances outstanding on these lines and all of the funding was available to the Company.

Liquidity management is both a daily and long-term function of business management. The Company manages its liquidity with the objective of maintaining sufficient funds to respond to the predicted needs of depositors and borrowers and to take advantage of investments in earning assets and other earnings enhancement opportunities. Excess liquidity is generally invested in short-term investments such as overnight deposits. On a longer-term basis, the Company maintains a strategy of investing in various lending and investment security products. The Company uses its sources of funds primarily to fund loan commitments and meet its ongoing commitments associated with its operations. Based on its available cash at December 31, 2018 and current deposit modeling, the Company believes it has adequate liquidity to fund ongoing operations. The Company has adequate availability of funds from deposits, borrowings, repayments and maturities of loans and investment securities to provide the Company additional working capital if needed.

In the normal course of business, the Company is a party to a number of activities that contain credit, market and operational risk that are not reflected in whole or in part in the Company’s consolidated financial statements. Such activities include traditional off-balance sheet credit-related financial instruments and commitments under operating leases. The Company provides customers with off-balance sheet credit support through loan commitments, lines of credit, and standby letters of credit. Many of the commitments are expected to expire unused or be only partially used; therefore, the total amount of commitments does not necessarily represent future cash requirements. Based on its available liquidity and available borrowing capacity, the Company anticipates it will continue to have sufficient funds to meet its current commitments.

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At December 31, 2018, the Company’s unfunded loan commitments outstanding totaled $642.2 million. At the same date, unused lines of credit, including credit card lines, amounted to $6.9 billion, as shown in the following table.

TABLE 24—COMMITMENT EXPIRATION PER PERIOD

(Dollars in thousands)	Less than 1 year		1—3 Years		3—5 Years		Over 5 Years		Total
Unused lines of credit:
Real estate - construction	$	240,225	$	854,366	$	28,208	$	19,671	$	1,142,470
Real estate - owner-occupied	32,021		59,240		6,324		9,667		107,252
Real estate - non-owner occupied	144,964		169,709		34,748		5,339		354,760
Commercial and industrial	1,502,541		997,953		761,499		48,685		3,310,678
Mortgage	98,837		3,033		10		657		102,537
Consumer	941,301		160,334		32,267		732,364		1,866,266
Total unused lines of credit	2,959,889		2,244,635		863,056		816,383		6,883,963
Unfunded loan commitments	642,162		—		—		—		642,162
Standby letters of credit	202,333		27,056		11,047		—		240,436
	$	3,804,384	$	2,271,691	$	874,103	$	816,383	$	7,766,561

The Company has entered into a number of long-term arrangements to support the ongoing activities of the Company. The required payments under such leasing and other debt commitments at December 31, 2018 are shown in the following table.

TABLE 25—CONTRACTUAL OBLIGATIONS AND OTHER DEBT COMMITMENTS

(Dollars in thousands)	2019		2020		2021		2022		2023		2024 and After		Total
Operating leases	$	21,750	$	19,991	$	16,921	$	14,195	$	9,182	$	34,652	$	116,691
Time deposits	2,504,515		876,740		159,877		76,486		12,684		10,321		3,640,623
Short-term borrowings	1,482,882		—		—		—		—		—		1,482,882
Long-term debt	309,116		233,465		125,255		10,581		58,762		428,972		1,166,151
	$	4,318,263	$	1,130,196	$	302,053	$	101,262	$	80,628	$	473,945	$	6,406,347

ASSET/LIABILITY MANAGEMENT, MARKET RISK AND COUNTERPARTY CREDIT RISK

The principal objective of the Company’s asset and liability management function is to evaluate the Company's interest rate risk included in certain balance sheet accounts, determine the appropriate level of risk given the Company’s business focus, operating environment, capital and liquidity requirements, and performance objectives, establish prudent asset concentration guidelines and manage the risk consistent with Board approved guidelines. Through such management, the Company seeks to reduce the vulnerability of its operations to changes in interest rates. The Company’s actions in this regard are taken under the guidance of the Asset and Liability Committee. The Asset and Liability Committee normally meets monthly to review, among other things, the sensitivity of the Company’s assets and liabilities to interest rate changes, local and national market conditions, and interest rates. In connection therewith, the Asset and Liability Committee generally reviews the Company’s liquidity, cash flow needs, composition of investments, deposits, borrowings, and capital position.

The objective of interest rate risk management is to control the effects that interest rate fluctuations have on net interest income and on the net present value of the Company’s earning assets and interest-bearing liabilities. Management and the Board are responsible for managing interest rate risk and employing risk management policies that monitor and limit this exposure. Interest rate risk is measured using net interest income simulation and asset/liability net present value sensitivity analyses. The Company uses financial modeling to measure the impact of changes in interest rates on the net interest margin and to predict market risk. Estimates are based upon numerous assumptions including the nature and timing of interest rate levels including yield curve shape, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, reinvestment/replacement of asset and liability cash flows, and others. These analyses provide a range of potential impacts on net interest income and portfolio equity caused by interest rate movements.

33

Included in the modeling are instantaneous parallel rate shift scenarios, which are utilized to establish exposure limits. These scenarios are known as “rate shocks” because all rates are modeled to change instantaneously by the indicated shock amount, rather than a gradual rate shift over a period of time.

The Company’s interest rate risk model indicates that the Company is asset sensitive in terms of interest rate sensitivity. Based on the Company’s interest rate risk model at December 31, 2018, the table below illustrates the impact of an immediate and sustained 100 and 200 basis point increase or decrease in interest rates on net interest income over the next twelve months.

TABLE 26—INTEREST RATE SENSITIVITY

Shift in Interest Rates (in bps)	% Change in Projected Net Interest Income
+200	1.7%
+100	1.2%
-100	(3.7)%
-200	(10.5)%

The influence of using the forward curve as of December 31, 2018 as a basis for projecting the interest rate environment would approximate a 0.3% increase in net interest income over the next 12 months. The computations of interest rate risk shown above are performed on a static balance sheet and do not necessarily include certain actions that management may undertake to manage this risk in response to unanticipated changes in interest rates and other factors to include shifts in deposit behavior.

The short-term interest rate environment is primarily a function of the monetary policy of the FRB. The principal tools of the FRB for implementing monetary policy are open market operations, or the purchases and sales of U.S. Treasury and Federal agency securities, as well as the establishment of a short-term target rate. The FRB’s objective for open market operations has varied over the years, but the focus has gradually shifted toward attaining a specified level of the Federal funds rate to achieve the long-run goals of price stability and sustainable economic growth. The Federal funds rate is the basis for overnight funding and drives the short end of the yield curve. Longer maturities are influenced by the market’s expectations for economic growth and inflation, but can also be influenced by FRB purchases and sales and expectations of monetary policy going forward.

The Federal Open Market Committee (“FOMC”) of the Federal Reserve Board (“FRB”), in an attempt to stimulate the overall economy, has, among other things, kept interest rates low through its targeted federal funds rate. In December 2016, the FOMC voted to raise the target federal funds rate for only the second time since 2006. The FOMC voted to raise the target federal funds rate multiple times in both 2017 and 2018. The FOMC has now raised rates by two-and-a-quarter percentage points since the financial crisis in 2008, a sign of its increased confidence in the health of the economy. While the FOMC continues to observe sustained economic activity, strong labor market conditions, and stable inflation, it has signaled a pause in its recent efforts to increase the federal funds rate. As a result, the potential for additional gradual increases in the federal funds rate in 2019 is uncertain. Additional increases in the federal funds rate and unwind of its balance sheet could cause overall interest rates to rise, which may negatively impact the U.S. real estate markets and affect deposit growth and pricing. In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of collateral securing loans, which could negatively affect our financial performance.

The Company’s commercial loan portfolio is also impacted by fluctuations in the level of one-month LIBOR, as a large portion of this portfolio reprices based on this index, and to a lesser extent Prime. Our net interest income may be reduced if more interest-bearing liabilities than interest-earning assets reprice or mature during a period when interest rates are rising, or more interest-earning assets than interest-bearing liabilities reprice or mature during a period when interest rates are declining.

In July 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee ("ARRC") has proposed that the Secured Overnight Financing Rate ("SOFR") is the rate that represents best practice as the alternative to LIBOR for use in derivatives and other financial contracts that are currently indexed to LIBOR. ARRC has proposed a paced market transition plan to SOFR from LIBOR and organizations are currently working on industry wide and company specific transition plans as it relates to derivatives and cash markets exposed to LIBOR. The Company has material contracts that are indexed to LIBOR and is monitoring this activity and evaluating the related risks.

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The table below presents the Company’s anticipated repricing of loans and investment securities over the next four quarters.

TABLE 27—REPRICING OF CERTAIN EARNING ASSETS ⁽¹⁾ 

(Dollars in thousands)	1Q 2019		2Q 2019		3Q 2019		4Q 2019		Total less than one year
Investment securities	$	181,109	$	171,356	$	187,433	$	166,309	$	706,207
Fixed rate loans	850,652		650,607		613,697		566,375		2,681,331
Variable rate loans	10,504,373		415,429		307,481		284,904		11,512,187
Total loans	11,355,025		1,066,036		921,178		851,279		14,193,518
	$	11,536,134	$	1,237,392	$	1,108,611	$	1,017,588	$	14,899,725

⁽¹⁾ Amounts include expected maturities, scheduled paydowns, expected prepayments, and loans subject to caps and floors and exclude the repricing of assets from prior periods, as well as non-accrual loans and market value adjustments.

As part of its asset/liability management strategy, the Company has seen greater levels of loan originations with adjustable or variable rates of interest in commercial and consumer loan products, which typically have shorter terms than residential mortgage loans. The majority of fixed-rate, long-term, agency-conforming residential loans are sold in the secondary market to avoid bearing the interest rate risk associated with longer duration assets in the current rate environment. However, the Sabadell and Gibraltar acquisitions brought a considerable amount of jumbo, non-agency-conforming residential mortgage loan exposure onto the balance sheet, both fixed rate and variable rate in nature, which has increased the overall duration of the portfolio. Considering all of this, as of December 31, 2018, $13.5 billion, or 60.0%, of the Company’s total loan portfolio had variable interest rates, of which $2.5 billion, or 11%, had an expected repricing date beyond the next four quarters. The Company had no significant concentration to any single borrower or industry segment at December 31, 2018.

The Company’s strategy with respect to liabilities in recent periods has been to emphasize transaction accounts, particularly non-interest or low interest-bearing transaction accounts, which are significantly less sensitive to changes in interest rates. At December 31, 2018, 85% of the Company’s deposits were in transaction and limited-transaction accounts, compared to 89% at December 31, 2017. Non-interest-bearing transaction accounts were 28% of total deposits at December 31, 2018, compared to 29% of total deposits at December 31, 2017.

Much of the liquidity increase experienced in the past several years has been due to a significant increase in non-interest-bearing demand deposits. The behavior of non-interest-bearing deposits and other types of demand deposits is one of the most important assumptions used in determining the interest rate and liquidity risk positions. A loss of these deposits in the future would reduce the asset sensitivity of the Company’s balance sheet as interest-bearing funds would most likely be increased to offset the loss of this favorable funding source.

The table below presents the Company’s anticipated repricing of liabilities over the next four quarters.

TABLE 28—REPRICING OF LIABILITIES ⁽¹⁾ 

(Dollars in thousands)	1Q 2019		2Q 2019		3Q 2019		4Q 2019		Total less than one year
Time deposits	$	649,447	$	754,886	$	510,925	$	589,510	$	2,504,768
Short-term borrowings	1,462,882		20,000		—		—		1,482,882
Long-term debt	210,821		114,063		67,254		50,583		442,721
	$	2,323,150	$	888,949	$	578,179	$	640,093	$	4,430,371

⁽¹⁾ Amounts exclude the repricing of liabilities from prior periods.

As part of an overall interest rate risk management strategy, derivative instruments may also be used as an efficient way to modify the repricing or maturity characteristics of on-balance sheet assets and liabilities. Management may from time to time engage in such derivative instruments to effectively manage interest rate risk. These derivative instruments of the Company would modify net interest sensitivity to levels deemed appropriate.

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IMPACT OF INFLATION OR DEFLATION AND CHANGING PRICES

The consolidated financial statements and related financial data presented herein have been prepared in accordance with GAAP, which generally require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation. Unlike most industrial companies, the majority of the Company’s assets and liabilities are monetary in nature. As a result, interest rates generally have a more significant impact on the Company’s performance than does the effect of inflation. Although fluctuations in interest rates are neither completely predictable nor controllable, the Company regularly monitors its interest rate position and oversees its financial risk management by establishing policies and operating limits. Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services, since such prices are affected by inflation to a larger extent than interest rates. Although not as critical to the banking industry as to other industries, inflationary factors may have some impact on the Company’s growth, earnings, total assets and capital levels. Management does not expect inflation to be a significant factor in 2019.

Conversely, a period of deflation could affect our business, as well as all financial institutions and other industries. Deflation could lead to lower profits, higher unemployment, lower production and deterioration in overall economic conditions. In addition, deflation could depress economic activity, including loan demand and the ability of borrowers to repay loans, and consequently impair earnings through increasing the value of debt while decreasing the value of collateral for loans.

Management believes the most significant potential impact of deflation on financial results relates to the Company's ability to maintain a sufficient amount of capital to cushion against future losses. However, the Company would employ certain risk management tools to maintain its balance sheet strength in the event a deflationary scenario were to develop.

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Non-GAAP Measures

This discussion and analysis included herein contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. Non-GAAP measures include, but are not limited to, descriptions such as core, tangible, and pre-tax pre-provision. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of the Company’s performance. Transactions that are typically excluded from non-GAAP performance measures include realized and unrealized gains/losses on former bank owned real estate, realized gains/losses on securities, income tax gains/losses, merger related charges and recoveries, litigation charges and recoveries, and debt repayment penalties. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are presented in Table 29, with the exception of forward-looking information. The Company is unable to estimate GAAP EPS guidance without unreasonable efforts due to the nature of one-time or unusual items that cannot be predicted, and therefore has not provided this information under Regulation S-K Item 10(e)(1)(i)(B).

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TABLE 29—RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

	2018									2017								2016
(Dollars in thousands, except per share amounts)	Pre-tax			After-tax			Per share (2)			Pre-tax		After-tax			Per share (2)			Pre-tax			After-tax			Per share (2)
Net income	$	402,527		$	370,249		$	6.63		$	292,879	$	142,413		$	2.77		$	271,970		$	186,777		$	4.49
Less: Preferred stock dividends	—			9,095			0.17			—		9,095			0.18			—			7,977			0.19
Income available to common shareholders (GAAP)	$	402,527		$	361,154		$	6.46		$	292,879	$	133,318		$	2.59		$	271,970		$	178,800		$	4.30
Non-interest income adjustments (1)(3):
Loss (gain) on sale of investments	49,899			37,923			0.68			148		97			—			(2,001		)	(1,301		)	(0.03		)
Other non-core non-interest income	415			316			—			—		—			—			—			—			—
Total non-interest income adjustments	50,314			38,239			0.68			148		97			—			(2,001		)	(1,301		)	(0.03		)
Non-interest expense adjustments (1)(3):
Merger-related expense	31,295			23,919			0.44			40,971		28,566			0.55			3			2			—
Compensation-related expense	4,290			3,261			0.05			3,025		1,966			0.04			782			508			0.01
Impairment of long-lived assets, net of (gain) loss on sale	10,837			8,236			0.15			6,961		4,525			0.09			(674		)	(437		)	(0.01		)
(Gain) loss on early termination of loss share agreements	(2,708		)	(2,058		)	(0.04		)	—		—			—			17,798			11,569			0.28
Litigation expense	—			—			—			11,692		11,405			0.22			—			—			—
Other non-core non-interest expense	(133		)	(102		)	0.01			844		603			0.01			2,752			1,788			0.04
Total non-interest expense adjustments	43,581			33,256			0.61			63,493		47,065			0.91			20,661			13,430			0.32
Income tax expense (benefit) - impact of the Tax Act	—			(58,745		)	(1.06		)	—		51,023			0.99			—			—			—
Income tax expense (benefit) - other	—			173			—			—		(1,237		)	(0.02		)	—			(6,836		)	(0.16		)
Core earnings (Non-GAAP)	496,422			374,077			6.69			356,520		230,266			4.47			290,630			184,093			4.43
Provision for credit losses (1)	40,385			30,692						51,708		33,610						41,521			26,989
Pre-provision earnings, as adjusted (Non-GAAP)	$	536,807		$	404,769					$	408,228	$	263,876					$	332,151		$	211,082

⁽¹⁾  Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017 and 2016, which approximates the marginal tax rate.

⁽²⁾  Diluted per share amounts may not appear to foot due to rounding.

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(Dollars in thousands)	2018			2017			2016
Net interest income (GAAP)	$	1,013,248		$	808,846		$	649,238
Taxable equivalent benefit	5,760			10,308			9,233
Net interest income (TE) (Non-GAAP) (1)	$	1,019,008		$	819,154		$	658,471
Non-interest income (GAAP)(3)	$	152,562		$	202,147		$	227,717
Taxable equivalent benefit	1,677			2,736			2,822
Non-interest income (TE) (Non-GAAP) (1)(3)	154,239			204,883			230,539
Taxable equivalent revenues (Non-GAAP) (1)(3)	1,173,247			1,024,037			889,010
Securities losses (gains) and other non-interest income	50,314			148			(2,001		)
Core taxable equivalent revenues (Non-GAAP) (1)(3)	$	1,223,561		$	1,024,185		$	887,009
Total non-interest expense (GAAP)(3)	$	722,898		$	666,406		$	563,464
Less: Intangible amortization expense	21,678			12,590			8,415
Tangible non-interest expense (Non-GAAP) (2)(3)	701,220			653,816			555,049
Less: Merger-related expense	31,295			40,971			3
Compensation-related expense	4,290			3,025			782
Impairment of long-lived assets, net of (gain) loss on sale	10,837			6,961			(674		)
(Gain) loss on early termination of loss share agreements	(2,708		)	—			17,798
Litigation expense	—			11,692			—
Other non-core non-interest expense	(133		)	844			2,752
Core tangible non-interest expense (Non-GAAP) (2)(3)	$	657,639		$	590,323		$	534,388
Average assets (GAAP)	$	29,578,026		$	24,480,656		$	20,321,234
Less: Average intangible assets, net	1,307,156			957,209			759,749
Total average tangible assets (Non-GAAP) (2)	$	28,270,870		$	23,523,447		$	19,561,485
Total shareholders’ equity (GAAP)	$	4,056,277		$	3,696,791		$	2,939,694
Less: Goodwill and other intangibles	1,315,462			1,271,807			755,765
Preferred stock	132,097			132,097			132,097
Tangible common equity (Non-GAAP) (2)	$	2,608,718		$	2,292,887		$	2,051,832
Average shareholders’ equity (GAAP)	$	3,882,728		$	3,508,350		$	2,637,594
Less: Average preferred equity	132,097			132,097			112,598
Average common equity	3,750,631			3,376,253			2,524,996
Less: Average intangible assets, net	1,307,156			957,209			759,749
Average tangible common shareholders' equity (Non-GAAP) (2)	$	2,443,475		$	2,419,044		$	1,765,247
Return on average assets (GAAP)	1.25		%	0.58		%	0.92		%
Effect of non-core revenues and expenses	0.05			0.40			0.03
Core return on average assets (Non-GAAP)	1.30		%	0.98		%	0.95		%
Return on average common equity (GAAP)	9.63		%	3.95		%	7.08		%
Effect of non-core revenues and expenses	0.34			2.87			0.21
Core return on average common equity (Non-GAAP)	9.97		%	6.82		%	7.29		%
Effect of intangibles (2)	6.04			3.04			3.45
Core return on average tangible common equity (Non-GAAP) (2)	16.01		%	9.86		%	10.74		%
Efficiency ratio (GAAP)(3)	62.0		%	65.9		%	64.3		%
Effect of tax benefit related to tax-exempt income(3)	(0.4		)	(0.8		)	(0.9		)
Efficiency ratio (TE) (Non-GAAP) (1)(3)	61.6		%	65.1		%	63.4		%
Effect of amortization of intangibles	(1.9		)	(1.3		)	(1.0		)

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Effect of non-core items	(6.0		)	(6.2		)	(2.2		)
Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2)(3)	53.7		%	57.6		%	60.2		%
Total assets (GAAP)	$	30,833,015		$	27,904,129		$	21,659,190
Less: Goodwill and other intangibles	1,315,462			1,271,807			755,765
Tangible assets (Non-GAAP) (2)	$	29,517,553		$	26,632,322		$	20,903,425
Tangible common equity ratio (Non-GAAP) (2)	8.84		%	8.61		%	9.82		%
Cash Yield:
Earning assets average balance (GAAP)	$	27,199,588		$	22,482,689		$	18,477,064
Add: Adjustments	144,127			160,675			73,010
Earning assets average balance, as adjusted (Non-GAAP)	$	27,343,715		$	22,643,364		$	18,550,074
Net interest income (GAAP)	$	1,013,248		$	808,846		$	649,238
Add: Adjustments	(68,755		)	(63,866		)	(32,575		)
Net interest income, as adjusted (Non-GAAP)	$	944,493		$	744,980		$	616,663
Yield, as reported	3.75		%	3.64		%	3.56		%
Add: Adjustments	(0.28		)	(0.31		)	(0.19		)
Yield, as adjusted (Non-GAAP)	3.47		%	3.33		%	3.37		%

⁽¹⁾ Fully taxable-equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and 35% for 2017 and 2016.

⁽²⁾ Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable.

⁽³⁾ Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $8.9 million and $6.1 million in 2017 and 2016, respectively, and had no impact on net income.

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TABLE 30 – QUARTERLY RESULTS OF OPERATIONS AND SELECTED CASH FLOW DATA (UNAUDITED)

	2018
(Dollars in thousands, except per share data)	Fourth Quarter			Third Quarter			Second Quarter		First Quarter
Total interest and dividend income	$	330,196		$	317,067		$	303,823	$	270,543
Total interest expense	65,175			57,842			47,710		37,654
Net interest income	265,021			259,225			256,113		232,889
Provision for credit losses	13,094			11,384			7,696		8,211
Net interest income after provision for credit losses	251,927			247,841			248,417		224,678
(Loss) gain on sale of available for sale securities	(49,844		)	—			3		(59		)
Other non-interest income	50,813			53,087			53,937		44,625
Total non-interest expense	168,989			169,062			196,776		188,071
Income before income taxes	83,907			131,866			105,581		81,173
Income tax (benefit) expense	(46,132		)	30,401			30,457		17,552
Net income	$	130,039		$	101,465		$	75,124	$	63,621
Less: Preferred stock dividends	949			3,599			949		3,598
Net income available to common shareholders	$	129,090		$	97,866		$	74,175	$	60,023
Less: Earnings allocated to unvested restricted stock	1,214			908			767		639
Earnings allocated to common shareholders	$	127,876		$	96,958		$	73,408	$	59,384
Earnings per common share - basic	$	2.33		$	1.74		$	1.31	$	1.11
Earnings per common share - diluted	2.32			1.73			1.30		1.10
Cash dividends declared per common share	0.41			0.39			0.38		0.38
	2017
	Fourth Quarter			Third Quarter			Second Quarter		First Quarter
Total interest and dividend income	$	269,703		$	246,972		$	204,575	$	192,533
Total interest expense	34,201			30,089			20,932		19,715
Net interest income	235,502			216,883			183,643		172,818
Provision for credit losses	12,825			21,459			10,852		6,572
Net interest income after provision for credit losses	222,677			195,424			172,791		166,246
Gain (loss) on sale of available for sale securities	35			(242		)	59		—
Other non-interest income	52,308			51,085			53,779		45,124
Total non-interest expense	183,634			197,817			146,578		138,378
Income before income taxes	91,386			48,450			80,051		72,992
Income tax expense	81,108			18,806			28,033		22,519
Net income	$	10,278		$	29,644		$	52,018	$	50,473
Less: Preferred stock dividends	949			3,598			949		3,599
Net income available to common shareholders	$	9,329		$	26,046		$	51,069	$	46,874
Less: Earnings allocated to unvested restricted stock	101			283			361		346
Earnings allocated to common shareholders	$	9,228		$	25,763		$	50,708	$	46,528
Earnings per common share - basic	$	0.17		$	0.49		$	1.00	$	1.01
Earnings per common share - diluted	0.17			0.49			0.99		1.00
Cash dividends declared per common share	0.37			0.37			0.36		0.36

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Glossary of Defined Terms

Term	Definition
ACL	Allowance for credit losses
Acquired loans	Loans acquired in a business combination
AFS	Securities available for sale
ALLL	Allowance for loan and lease losses
AOCI	Accumulated other comprehensive income (loss)
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
Banco Sabadell	Banco de Sabadell, S.A.
Basel III	Global regulatory standards on bank capital adequacy and liquidity published by the BCBS
BOLI	Bank owned life insurance
CDE	IBERIA CDE, LLC
C&I	Commercial and Industrial loans
CDI	Core deposit intangible assets
CET1	Common Equity Tier 1 Capital defined by Basel III capital rules
CFPB	Consumer Financial Protection Bureau
CRE	Commercial Real Estate Loans
Company	IBERIABANK Corporation and Subsidiaries
Covered Loans	Acquired loans with loss protection provided by the FDIC
DOJ	Department of Justice
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
ECL	Expected credit losses
EPS	Earnings per common share
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
First Private	First Private Holdings, Inc
FHLB	Federal Home Loan Bank
Florida Bank Group	Florida Bank Group, Inc
FOMC	Federal Open Market Committee
FRB	Board of Governors of the Federal Reserve System
GAAP	Accounting principles generally accepted in the United States of America
Georgia Commerce	Georgia Commerce Bancshares, Inc.
Gibraltar	Gibraltar Private Bank & Trust Co.
GSE	Government-sponsored enterprises
HTM	Securities held-to-maturity
HUD	U.S. Department of Housing and Urban Development
IAM	IBERIA Asset Management, Inc.
IBERIABANK	Banking subsidiary of IBERIABANK Corporation
ICP	IBERIA Capital Partners, LLC
MMDA	Money market deposits accounts
Mortgage	IBERIABANK Mortgage Division
Legacy loans	Loans that were originated directly or otherwise underwritten by the Company
LIBOR	London Interbank Borrowing Offered Rate
LTC	Lenders Title Company
Non-GAAP	Financial measures determined by methods other than in accordance with GAAP

42

NOW	Negotiable order of withdrawal
OCC	Office of the Comptroller of the Currency
OCI	Other comprehensive income
OFI	Office of Financial Institutions
Old Florida	Old Florida Bancshares, Inc.
OMNI	OMNI BANCSHARES, Inc.
OREO	Other real estate owned
OTTI	Other than temporary impairment
Parent	IBERIABANK Corporation
RRP	Recognition and Retention Plan
Sabadell United	Sabadell United Bank, N.A.
SBA	Small Business Administration
SEC	Securities and Exchange Commission
SolomonParks	SolomonParks Title & Escrow, LLC
TE	Fully taxable equivalent
Tax Act	Tax Cuts and Jobs Act
Teche	Teche Holding Company
TDR	Troubled debt restructuring
Trust One-Memphis	Trust One Bank (Memphis Operations)
U.S.	United States of America
VIE	Variable interest entity

43

MANAGEMENT REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

To the Board of Directors of

IBERIABANK Corporation

The management of IBERIABANK Corporation (the “Company”) is responsible for establishing and maintaining effective internal control over financial reporting. The Company’s internal control system was designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of the Company’s financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Internal control over financial reporting includes self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified.

All internal control systems, no matter how well designed, have inherent limitations and may not prevent or detect misstatements in the Company’s financial statements, including the possibility of circumvention or overriding of controls. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of a change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013 Framework). Based on its assessment, management believes that, as of December 31, 2018, the Company’s internal control over financial reporting was effective based on those criteria.

The Company’s independent registered public accounting firm has also issued an attestation report, which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018.

There was no change in the Company's internal control over financial reporting that occurred during the fourth quarter of 2018 that has materially affected, is likely to materially affect, the Company's internal control over financial reporting.

/s/ Daryl G. Byrd	/s/ Anthony J. Restel
Daryl G. Byrd	Anthony J. Restel
President and Chief Executive Officer	Vice Chairman and Chief Financial Officer

44

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The Board of Directors and Shareholders

IBERIABANK Corporation

Opinion on Internal Control over Financial Reporting

We have audited IBERIABANK Corporation and subsidiaries’ internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, IBERIABANK Corporation and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States (PCAOB), the consolidated balance sheets of IBERIABANK Corporation and subsidiaries as of December 31, 2018 and 2017, and the related consolidated statements of comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2018, and the related notes and our report dated February 22, 2019 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

New Orleans, Louisiana

February 22, 2019

45

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ON THE CONSOLIDATED FINANCIAL STATEMENTS

The Board of Directors and Shareholders

IBERIABANK Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of IBERIABANK Corporation and subsidiaries (the Company) as of December 31, 2018 and 2017, and the related consolidated statements of comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2018, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 22, 2019 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2007.

New Orleans, Louisiana

February 22, 2019

46

IBERIABANK CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

	December 31,
(Dollars in thousands, except share data)	2018			2017
Assets
Cash and due from banks	$	294,186		$	319,156
Interest-bearing deposits in other banks	396,267			306,568
Total cash and cash equivalents	690,453			625,724
Securities available for sale, at fair value	4,783,579			4,590,062
Securities held to maturity (fair values of $204,277 and $227,964, respectively)	207,446			227,318
Mortgage loans held for sale, at fair value	107,734			134,916
Loans and leases, net of unearned income	22,519,815			20,078,181
Allowance for loan and lease losses	(140,571		)	(140,891		)
Loans and leases, net	22,379,244			19,937,290
Premises and equipment, net	300,507			331,413
Goodwill	1,235,533			1,188,902
Other intangible assets	88,736			88,562
Other assets	1,039,783			779,942
Total Assets	$	30,833,015		$	27,904,129
Liabilities
Deposits:
Non-interest-bearing	$	6,542,490		$	6,209,925
Interest-bearing	17,220,941			15,256,792
Total deposits	23,763,431			21,466,717
Short-term borrowings	1,482,882			991,297
Long-term debt	1,166,151			1,495,835
Other liabilities	364,274			253,489
Total Liabilities	26,776,738			24,207,338
Shareholders’ Equity
Preferred stock, $1 par value - 5,000,000 shares authorized
Non-cumulative perpetual, liquidation preference $10,000 per share; 13,750 and 13,750 shares issued and outstanding, respectively, including related surplus	132,097			132,097
Common stock, $1 par value - 100,000,000 shares authorized; 54,796,231 and 53,872,272 shares issued and outstanding, respectively	54,796			53,872
Additional paid-in capital	2,869,416			2,787,484
Retained earnings	1,042,718			769,226
Accumulated other comprehensive income (loss)	(42,750		)	(45,888		)
Total Shareholders’ Equity	4,056,277			3,696,791
Total Liabilities and Shareholders’ Equity	$	30,833,015		$	27,904,129

The accompanying Notes are an integral part of these Consolidated Financial Statements.

47

IBERIABANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

	Year Ended December 31,
(Dollars in thousands, except per share data)	2018			2017			2016
Interest and Dividend Income
Loans, including fees	$	1,086,662		$	802,947		$	663,036
Mortgage loans held for sale, including fees	3,748			4,679			6,564
Investment securities:
Taxable interest	107,137			87,359			52,150
Tax-exempt interest	10,634			8,835			7,004
Amortization of FDIC loss share receivable	—			—			(16,023		)
Other	13,448			9,963			4,208
Total interest and dividend income	1,221,629			913,783			716,939
Interest Expense
Deposits:
NOW and MMDA	113,996			57,283			32,396
Savings	2,117			1,455			1,145
Time deposits	44,839			21,095			18,040
Short-term borrowings	14,682			7,557			2,452
Long-term debt	32,747			17,547			13,668
Total interest expense	208,381			104,937			67,701
Net interest income	1,013,248			808,846			649,238
Provision for credit losses	40,385			51,708			41,521
Net interest income after provision for credit losses	972,863			757,138			607,717
Non-interest Income
Mortgage income	46,424			63,570			83,853
Service charges on deposit accounts	52,803			47,678			44,135
Title revenue	24,149			21,972			22,213
Broker commissions	9,195			9,161			14,391
ATM/debit card fee income	10,295			10,199			10,008
Credit card and merchant-related income	12,540			10,904			11,245
Trust department income	15,981			9,705			7,174
(Loss) gain on sale of available for sale securities	(49,900		)	(148		)	2,001
Other non-interest income	31,075			29,106			32,697
Total non-interest income	152,562			202,147			227,717
Non-interest Expense
Salaries and employee benefits	414,741			379,527			331,686
Net occupancy and equipment	77,246			70,663			65,797
Communication and delivery	15,951			14,252			12,383
Marketing and business development	18,371			13,999			12,332
Computer services expense	39,680			36,790			25,091
Professional services	28,698			48,545			19,153
Credit and other loan related expense	19,088			18,411			13,840
Insurance	25,274			21,815			17,270
(Gain) loss on early termination of FDIC loss share agreements	(2,708		)	—			17,798
Travel and entertainment	10,035			11,287			8,481
Amortization of acquisition intangibles	21,678			12,590			8,415
Impairment of long-lived assets and other losses	27,780			12,246			6,111
Other non-interest expense	27,064			26,281			25,107
Total non-interest expense	722,898			666,406			563,464
Income before income tax expense	402,527			292,879			271,970
Income tax expense	32,278			150,466			85,193
Net Income	370,249			142,413			186,777
Less: Preferred stock dividends	9,095			9,095			7,977
Net Income Available to Common Shareholders	$	361,154		$	133,318		$	178,800

48

Income Available to Common Shareholders - Basic	$	361,154		$	133,318		$	178,800
Less: Earnings Allocated to Unvested Restricted Stock	3,583			1,210			1,872
Earnings Allocated to Common Shareholders	$	357,571		$	132,108		$	176,928
Earnings per common share - Basic	$	6.50		$	2.61		$	4.32
Earnings per common share - Diluted	6.46			2.59			4.30
Cash dividends declared per common share	1.56			1.46			1.40
Comprehensive Income
Net Income	$	370,249		$	142,413		$	186,777
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the period (net of tax effects of $10,870, $6,244, and $12,261, respectively)	(40,895		)	(11,596		)	(22,771		)
Less: Reclassification adjustment for gains (losses) included in net income (net of tax effects of $10,479, $52, and $700, respectively)	(39,421		)	(96		)	1,301
Unrealized gains (losses) on securities, net of tax	(1,474		)	(11,500		)	(24,072		)
Fair value of derivative instruments designated as cash flow hedges:
Change in fair value of derivative instruments designated as cash flow hedges during the period (net of tax effects of $1,174, $329, and $231, respectively)	4,416			(611		)	(328		)
Less: Reclassification adjustment for gains (losses) included in net income (net of tax effects of $52, $210, and $27, respectively)	(196		)	(390		)	50
Fair value of derivative instruments designated as cash flow hedges, net of tax	4,612			(221		)	(378		)
Other comprehensive income (loss), net of tax	3,138			(11,721		)	(24,450		)
Comprehensive income	$	373,387		$	130,692		$	162,327

The accompanying Notes are an integral part of these Consolidated Financial Statements.

49

IBERIABANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Shareholders’ Equity

	Preferred Stock			Common Stock
(In thousands, except share and per share data)	Shares	Amount		Shares		Amount			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance, December 31, 2015	8,000	$	76,812	41,139,537		$	41,140		$	1,797,982		$	584,486		$	(1,585	)	$	2,498,835
Net income	—	—		—		—			—			186,777			—			186,777
Other comprehensive income (loss)	—	—		—		—			—			—			(24,450		)	(24,450		)
Cash dividends declared, $1.40 per share	—	—		—		—			—			(58,895		)	—			(58,895		)
Preferred stock dividends	—	—		—		—			—			(7,977		)	—			(7,977		)
Common stock issued under incentive plans, net of shares surrendered in payment, including tax benefit	—	—		264,605		264			7,756			—			—			8,020
Common stock issued	—	—		3,593,750		3,594			275,648			—			—			279,242
Preferred stock issued	5,750	55,285		—		—			—			—			—			55,285
Common stock repurchases	—	—		(202,506	)	(203		)	(11,463		)	—			—			(11,666		)
Share-based compensation cost	—	—		—		—			14,523			—			—			14,523
Balance, December 31, 2016	13,750	$	132,097	44,795,386		$	44,795		$	2,084,446		$	704,391		$	(26,035	)	$	2,939,694
Net income	—	—		—		—			—			142,413			—			142,413
Other comprehensive income (loss)	—	—		—		—			—			—			(11,721		)	(11,721		)
Cash dividends declared, $1.46 per share	—	—		—		—			—			(76,615		)	—			(76,615		)
Reclassification of AOCI to RE due to Tax Act(1)	—	—		—		—			—			8,132			(8,132		)	—
Preferred stock dividends	—	—		—		—			—			(9,095		)	—			(9,095		)
Common stock issued under incentive plans, net of shares surrendered in payment	—	—		366,582		367			(882		)	—			—			(515		)
Common stock issued	—	—		6,100,000		6,100			479,051			—			—			485,151
Common stock issued for acquisitions	—	—		2,610,304		2,610			208,433			—			—			211,043
Share-based compensation cost	—	—		—		—			16,436			—			—			16,436
Balance, December 31, 2017	13,750	$	132,097	53,872,272		$	53,872		$	2,787,484		$	769,226		$	(45,888	)	$	3,696,791
Cumulative-effect adjustment due to the adoption of ASU 2016-01(2)	—	—		—		—			—			(345		)	—			(345		)
Net income	—	—		—		—			—			370,249			—			370,249
Other comprehensive income (loss)	—	—		—		—			—			—			3,138			3,138
Cash dividends declared, $1.56 per share	—	—		—		—			—			(87,317		)	—			(87,317		)
Preferred stock dividends	—	—		—		—			—			(9,095		)	—			(9,095		)
Common stock issued under incentive plans, net of shares surrendered in payment	—	—		108,686		109			(3,335		)	—			—			(3,226		)
Common stock issued for acquisitions	—	—		2,787,773		2,788			211,871			—			—			214,659
Common stock repurchases	—	—		(1,972,500	)	(1,973		)	(146,882		)	—			—			(148,855		)
Share-based compensation cost	—	—		—		—			20,278			—			—			20,278
Balance, December 31, 2018	13,750	$	132,097	54,796,231		$	54,796		$	2,869,416		$	1,042,718		$	(42,750	)	$	4,056,277
(1) One-time reclassification from accumulated other comprehensive income ("AOCI") to retained earnings ("RE") for stranded tax effects resulting from the Tax Cuts and Jobs Act (the "Tax Act"), enacted on December 22, 2017.
(2) Cumulative-effect adjustment to beginning retained earnings for fair value adjustments related to the reclassification of certain equity investments in accordance with ASU 2016-01, adopted as of January 1, 2018.

The accompanying Notes are an integral part of these Consolidated Financial Statements.

50

IBERIABANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

	Year Ended December 31,
(Dollars in thousands)	2018			2017			2016
Cash Flows from Operating Activities
Net income	$	370,249		$	142,413		$	186,777
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion, including amortization of purchase accounting adjustments and market value adjustments	(7,534		)	(4,113		)	10,633
Provision for credit losses	40,385			51,708			41,521
Share-based compensation cost - equity awards	20,278			16,436			14,523
Loss (gain) on sale of OREO and long-lived assets, net of impairment	4,429			1,581			(3,298		)
Loss (gain) on sale of available for sale securities	49,900			148			(2,001		)
(Gain) loss on early termination of FDIC loss share agreements	(2,708		)	—			17,798
Cash paid for early termination of FDIC loss share agreements	(5,637		)	—			(6,502		)
Deferred income tax expense (benefit)	153,518			71,257			(16,654		)
Originations of mortgage loans held for sale	(1,469,847		)	(1,844,358		)	(2,460,033		)
Proceeds from sales of mortgage loans held for sale	1,543,724			1,922,003			2,525,945
Realized and unrealized (gain) on mortgage loans held for sale, net	(45,338		)	(62,438		)	(74,486		)
Other operating activities, net	(204,998		)	(30,991		)	73,865
Net Cash Provided by Operating Activities	446,421			263,646			308,088
Cash Flows from Investing Activities
Proceeds from sales of available for sale securities	1,035,482			682,349			197,733
Proceeds from maturities, prepayments and calls of available for sale securities	635,183			568,250			484,138
Purchases of available for sale securities, net of available for sale securities acquired	(1,959,952		)	(1,475,008		)	(1,384,525		)
Proceeds from maturities, prepayments and calls of held to maturity securities	16,841			8,687			8,791
Purchases of held to maturity securities	—			(148,234		)	—
Purchases of equity securities, net of equity securities acquired	(30,904		)	(71,684		)	(31,530		)
Proceeds from sales of equity securities	88,200			21,532			—
Increase in loans, net of loans acquired	(949,953		)	(976,488		)	(704,025		)
Proceeds from sale of premises and equipment	6,374			354			1,941
Purchases of premises and equipment, net of premises and equipment acquired	(13,730		)	(37,763		)	(12,840		)
Proceeds from dispositions of OREO	15,810			25,624			33,236
Cash paid for additional investment in tax credit entities	(18,818		)	(16,401		)	(19,208		)
Cash received (paid) for acquisition of a business, net of cash paid	99,318			(490,435		)	—
Purchase of bank owned life insurance policies	(50,000		)	—			(24,058		)
Other investing activities, net	343			636			25,950
Net Cash Used in Investing Activities	(1,125,806		)	(1,908,581		)	(1,424,397		)
Cash Flows from Financing Activities
Increase (decrease) in deposits, net of deposits acquired	1,232,603			(323,257		)	1,230,008
Net change in short-term borrowings, net of borrowings acquired	491,585			(38,377		)	182,518
Proceeds from long-term debt, net of long-term debt acquired	937,917			964,974			304,728
Repayments of long-term debt	(1,672,033		)	(97,259		)	(15,025		)
Cash dividends paid on common stock	(84,782		)	(72,772		)	(56,793		)
Cash dividends paid on preferred stock	(9,095		)	(9,095		)	(7,028		)
Net share-based compensation stock transactions	(3,226		)	(832		)	6,899

51

Payments to repurchase common stock	(148,855		)	—			(11,666		)
Net proceeds from issuance of common stock	—			485,151			279,242
Net proceeds from issuance of preferred stock	—			—			55,285
Net Cash Provided by Financing Activities	744,114			908,533			1,968,168
Net Increase (Decrease) In Cash and Cash Equivalents	64,729			(736,402		)	851,859
Cash and Cash Equivalents at Beginning of Period	625,724			1,362,126			510,267
Cash and Cash Equivalents at End of Period	$	690,453		$	625,724		$	1,362,126
Supplemental Schedule of Non-cash Activities
Acquisition of real estate in settlement of loans	$	12,557		$	18,170		$	9,743
Common stock issued in acquisitions	$	214,659		$	211,043		$	—
Supplemental Disclosures
Cash paid for:
Interest on deposits and borrowings, net of acquired	$	198,905		$	102,558		$	70,084
Income taxes, net	$	34,313		$	77,034		$	79,784

The accompanying Notes are an integral part of these Consolidated Financial Statements.

52

IBERIABANK CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL

IBERIABANK Corporation is a financial holding company with locations in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services. The accompanying consolidated financial statements have been prepared in accordance with GAAP and practices generally accepted in the banking industry. The consolidated financial statements include the accounts of the Company and its subsidiaries.

When we refer to the “Company,” “we,” “our,” or “us” in this Report, we mean IBERIABANK Corporation and subsidiaries (consolidated). When we refer to the “Parent,” we mean IBERIABANK Corporation. See the Glossary of Defined Terms of this Report for terms used throughout this Report.

Reclassification

Certain amounts reported in prior periods have been reclassified to conform to the current period presentation. These reclassifications did not have a material effect on previously reported consolidated financial statements.

PRINCIPLES OF CONSOLIDATION

All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s consolidated financial statements include all entities in which the Company has a controlling financial interest under either the voting interest or variable interest model. The assessment of whether or not the Company has a controlling interest (i.e., the primary beneficiary) in a variable interest entity (VIE) is performed on an on-going basis. All equity investments in non-consolidated VIEs are included in "other assets" in the Company’s consolidated balance sheets. The Company’s maximum exposure to loss as a result of its involvement with non-consolidated VIEs was approximately $230.2 million and $160.2 million at December 31, 2018 and 2017, respectively.  The Company's maximum exposure to loss was equivalent to the carrying value of its investments and any related outstanding loans to the non-consolidated VIEs.

Investments in entities that are not consolidated are accounted for under either the equity, fair value, or proportional amortization method of accounting. Prior to January 1, 2018, investments in entities that were not consolidated were accounted for under either the equity, cost, or proportional amortization method of accounting. Investments for which the Company has the ability to exercise significant influence over the operating and financing decisions of the entity are accounted for under the equity method. Investments for which the Company does not hold such ability are accounted for at cost less impairment plus or minus changes resulting from observable price changes, which approximates fair value. Prior to January 1, 2018, investments for which the Company did not hold such ability were accounted for under the cost method. Investments in qualified affordable housing projects, which meet certain criteria, are accounted for under the proportional amortization method.

USE OF ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are susceptible to significant change in the near term are the accounting for acquired impaired loans, the allowance for credit losses, the valuation of goodwill and other intangible assets, and income taxes.

CONCENTRATION OF CREDIT RISKS

Most of the Company’s business activity is with customers located in the southeastern United States. The Company’s lending activity is concentrated in its market areas within those states. The Company has emphasized originations of commercial loans and private banking loans, defined as loans to higher net worth clients. Repayments on loans are expected to come from cash flows of the borrower and/or guarantor. Losses on secured loans are limited by the net realizable value of the collateral upon default of the borrowers and guarantor support. The Company believes it does not have any excessive concentrations to any one industry, loan type, or customer.

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BUSINESS COMBINATIONS

Assets and liabilities acquired in business combinations are recorded at their acquisition date fair values. The Company generally records provisional amounts at the time of acquisition based on the information available to the Company. The provisional estimates of fair values may be adjusted for a period of up to one year (“measurement period”) from the date of acquisition if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Adjustments recorded during the measurement period are recognized in the current reporting period.

Loans generally represent a significant portion of the assets acquired in the Company’s business acquisitions. If the Company discovers that it has materially underestimated the credit losses expected in the loan portfolio based on information available at the acquisition date within the measurement period, it will reduce or eliminate the gain and/or increase goodwill recorded on the acquisition in the period the adjustment is recorded. If the Company determines that losses arose subsequent to the acquisition date, such losses are reflected as a provision for credit losses.

CASH AND CASH EQUIVALENTS

For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as cash on hand, interest-bearing deposits, and non-interest-bearing demand deposits at other financial institutions with original maturities less than three months. IBERIABANK may be required to maintain average cash balances on hand or with the Federal Reserve Bank to meet regulatory reserve and clearing requirements. At December 31, 2018 and 2017, IBERIABANK had sufficient cash deposited with the Federal Reserve Bank to cover the required reserve balance.

INVESTMENT SECURITIES

Management determines the appropriate accounting classification of debt and equity securities at the time of acquisition and re-evaluates such designations at least quarterly. Debt securities that management has the ability and intent to hold to maturity are classified as HTM and carried at cost, adjusted for amortization of premiums and accretion of discounts using methods approximating the interest method. Securities acquired with the intention of recognizing short-term profits or which are actively bought and sold are classified as trading securities and reported at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as HTM or trading are classified as AFS and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in OCI. Prior to January 1, 2018, equity securities with readily determinable fair values were also classified as AFS and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in OCI. Credit-related declines in the fair value of debt securities that are considered OTTI are recorded in earnings. Prior to January 1, 2018, credit-related declines in the fair value of marketable equity securities that were considered OTTI were recorded in earnings.

The Company evaluates its investment securities portfolio on a quarterly basis for indicators of OTTI. Declines in the fair value of individual HTM and AFS securities below their amortized cost basis are reviewed to determine whether the declines are other than temporary. In estimating OTTI losses, management considers 1) the length of time and the extent to which the fair value has been less than the amortized cost basis, 2) the financial condition and near-term prospects of the issuer, 3) its intent to sell and whether it is more likely than not that the Company would be required to sell those securities before the anticipated recovery of the amortized cost basis, and 4) for debt securities, the recovery of contractual principal and interest.

For securities that the Company does not expect to sell, or it is not more likely than not it will be required to sell prior to recovery of its amortized cost basis, the credit component of an OTTI is recognized in earnings and the non-credit component is recognized in OCI. For securities that the Company does expect to sell, or it is more likely than not that it will be required to sell prior to recovery of its amortized cost basis, both the credit and non-credit component of an OTTI are recognized in earnings. Subsequent to recognition of OTTI, an increase in expected cash flows is recognized as a yield adjustment over the remaining expected life of the security based on an evaluation of the nature of the increase.

Other equity securities primarily consist of stock acquired for regulatory purposes, such as Federal Home Loan Bank stock and Federal Reserve Bank stock and are included in “other assets."

Gains or losses on securities sold are recorded on the trade date, using the specific identification method.

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LOANS HELD FOR SALE

Loans and loan commitments which the Company does not have the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as loans held for sale at the time of origination or acquisition. Subsequent to origination or acquisition, if the Company no longer has the intent or ability to hold a loan for the foreseeable future, generally a decision has been made to sell the loan and it is classified within loans held for sale. Unless the fair value option has been elected at origination or acquisition, loans classified as held for sale are carried at the lower of cost or fair value. Amortization/accretion of remaining unamortized net deferred loan fees or costs and discounts or premiums (if applicable) ceases when a loan is classified as held for sale.

Loans held for sale primarily consist of fixed rate single-family residential mortgage loans originated and committed to be sold in the secondary market. Mortgage loans originated and held for sale are recorded at fair value under the fair value option, unless otherwise noted. For mortgage loans for which the Company has elected the fair value option, gains and losses are included in mortgage income. For any other loans held for sale, net unrealized losses, if any, are recognized through a valuation allowance that is recorded as a charge to non-interest income. See Note 19 for further discussion of the determination of fair value for loans held for sale. In most cases, loans in this category are sold within thirty days and are generally sold with the mortgage servicing rights released. Buyers generally have recourse to return a purchased loan or request reimbursement for the loan premium or consideration transferred for servicing rights under limited circumstances. Recourse conditions may include prepayment, payment default, breach of representations or warranties, and documentation deficiencies. During 2018 and 2017, an insignificant number of loans were returned to the Company. At December 31, 2018 and 2017, the recorded repurchase liability associated with transferred loans was not material.

LOANS

Legacy (Loans originated or renewed and underwritten by the Company)

The Company originates mortgage, commercial, and consumer loans for customers. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the unpaid principal balances, less the ALL, charge-offs, and unamortized net loan origination fees and direct costs, except for loans carried at fair value. Interest income is accrued as earned over the term of the loans based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield.

Acquired (Loans acquired through Business Combinations)

Acquired loans are recorded at fair value on the acquisition date. Credit risk assumptions and any resulting credit discounts are included in the determination of fair value. Therefore, an ALL is not recorded at the acquisition date. The determination of fair value includes estimates related to discount rates, expected prepayments, and the amount and timing of undiscounted expected principal, interest, and other cash flows.

All acquired loans are evaluated for impairment at the time of acquisition. At the time of acquisition, acquired loans that reflect credit deterioration since origination to the extent that it is probable that the Company will be unable to collect all contractually required payments are classified as purchased impaired loans (“acquired impaired loans”). All other acquired loans are classified as purchased non-impaired loans (“acquired non-impaired loans”).

At the time of acquisition, acquired impaired loans are accounted for individually or aggregated into loan pools with similar characteristics, which include:

• whether the loan is performing according to contractual terms at the time of acquisition,

• the loan type based on regulatory reporting guidelines, primarily whether the loan was a mortgage, consumer, or commercial loan,

• the nature of the collateral,

• the interest rate type, whether fixed or variable rate, and

• the loan payment type, primarily whether the loan is amortizing or interest-only.

From these pools, the Company uses certain loan information, including outstanding principal balance, estimated expected losses, weighted average maturity, weighted average term to re-price for a variable rate loan, weighted average margin and weighted average interest rate to estimate the expected cash flows for each loan pool.

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For acquired impaired loans, expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of future cash flows is reasonably estimable. For acquired non-impaired loans, the difference between the fair value and unpaid principal balance of the loan at acquisition, referred to as a purchase premium or discount, is amortized or accreted to income over the estimated life of the loans as an adjustment to yield.

Subsequent to acquisition, the Company performs cash flow re-estimations at least quarterly for each acquired impaired loan or loan pool. Increases in estimated cash flows above those expected at the time of acquisition are recognized on a prospective basis as interest income over the remaining life of the loan and/or pool. Decreases in expected cash flows subsequent to acquisition generally result in recognition of a provision for credit loss. The measurement of cash flows involves several assumptions and judgments, including prepayments, default rates and loss severity among other factors. All of these factors are inherently subjective and significant changes in the cash flow estimations can result over the life of the loan.

Classification

The Company’s loan portfolio is disaggregated into portfolio segments for purposes of determining the ACL. The Company’s portfolio segments include commercial, residential mortgage, and consumer and other loans, bifurcated between legacy and acquired non-impaired loans. The Company further disaggregates each commercial, residential mortgage, and consumer and other loans portfolio segment into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial loan portfolio segment include commercial real estate-construction, commercial real estate-owner-occupied, commercial real estate-non-owner occupied, and commercial and industrial. Classes within the consumer and other loans portfolio segment include home equity, indirect automobile, credit card and other.

Troubled Debt Restructurings

The Company periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and minimize risk of loss. These concessions may include restructuring the terms of a loan to alleviate the burden of the customer’s near-term cash requirements. In order to be classified as a TDR, the Company must conclude that the restructuring constitutes a concession and the customer is experiencing financial difficulties. The Company defines a concession to the customer as a modification of existing terms for economic or legal reasons that it would otherwise not consider. The concession is either granted through an agreement with the customer or is imposed by a court of law. Concessions include modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to:

• a reduction of the stated interest rate for the remaining original life of the loan,

• extension of the maturity date or dates at a stated interest rate lower than the current market rate for new loans with similar risk characteristics,

• reduction of the face amount or maturity amount of the loan as stated in the agreement, or

• reduction of accrued interest receivable on the loan.

In its determination of whether the customer is experiencing financial difficulties, the Company considers numerous indicators, including, but not limited to:

• whether the customer is currently in default on its existing loan(s), or is in an economic position where it is probable the customer will be in default on its loan(s) in the foreseeable future without a modification,

• whether the customer has declared or is in the process of declaring bankruptcy,

• whether there is substantial doubt about the customer’s ability to continue as a going concern,

• whether, based on its projections of the customer’s current capabilities, the Company believes the customer’s future cash flows will be insufficient to service the loan, including interest, in accordance with the contractual terms of the existing agreement for the foreseeable future, and

• whether the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for a similar loan for a non-troubled debtor.

If the Company concludes that both a concession has been granted and the customer is experiencing financial difficulties, the Company identifies the loan as a TDR. All TDRs are considered impaired loans.

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Non-accrual and Past Due Loans (Including Loan Charge-offs)

Loans are generally considered past due when contractual payments of principal and interest have not been received within

30 days from the contractual due date. Residential mortgage loans are considered past due when contractual payments have not been received for two consecutive payment dates.

Legacy and acquired non-impaired loans are placed on non-accrual status when any of the following occur: 1) the loan is maintained on a cash basis because of deterioration in the financial condition of the borrower; 2) collection of the full contractual amount of principal and interest is not expected even if the loan is currently paying as agreed;  or 3) when principal or interest has been in default for a period of 90 days or more, unless the loan is both well-secured and in the process of collection. Factors considered in determining the collection of the full contractual amount of principal and interest include assessment of the borrower’s cash flow, valuation of underlying collateral, and the ability and willingness of guarantors to provide credit support.  Certain commercial loans are also placed on non-accrual status when payment is not past due and full payment of principal and interest is expected, but the Company has doubt about the borrower’s ability to comply with existing repayment terms. Consideration will be given to placing a loan on non-accrual due to the deterioration of the debtor’s repayment ability, the repayment of the loan becoming dependent on the liquidation of collateral, an existing collateral deficiency, the loan being classified as "Doubtful" or "Loss," the client filing for bankruptcy, and/or foreclosure being initiated. Regarding all classes within the C&I and CRE portfolios, the determination of a borrower’s ability to make the required principal and interest payments is based on an examination of the borrower’s current financial statements, industry, management capabilities, and other qualitative factors.

Acquired impaired loans are placed on non-accrual status when the Company cannot reasonably estimate cash flows on a loan or loan pool. Legacy and acquired non-impaired loans are evaluated for potential charge-off in accordance with the parameters discussed in the following paragraph or when the loan is placed on non-accrual status, whichever is earlier.

Loans within the commercial portfolio (except for acquired impaired loans) are generally evaluated for charge-off at

90 days past due, unless both well-secured and in the process of collection. Closed and open-end residential mortgage and consumer loans (except for acquired impaired loans) are evaluated for charge-off no later than 120 days past due. Any outstanding loan balance in excess of the fair value of the collateral less costs to sell is charged-off no later than 120 days days past due for loans secured by real estate. For non-real estate secured loans, in lieu of charging off the entire loan balance, loans may be written down to the fair value of the collateral less costs to sell if repossession of collateral is assured and in process.

The accrual of interest, as well as the amortization/accretion of any remaining unamortized net deferred fees or costs and discount or premium, is discontinued at the time the loan is placed on non-accrual status. All accrued but uncollected interest for loans that are placed on non-accrual status is reversed through interest income. Cash receipts received on non-accrual loans are generally applied against principal until the loan has been collected in full, after which time any additional cash receipts are recognized as interest income (i.e., cost recovery method). However, interest may be accounted for under the cash-basis method as long as the remaining recorded investment in the loan is deemed fully collectible.

Loans are returned to accrual status when the borrower has demonstrated a capacity to continue payment of the debt (generally a minimum of six months of sustained repayment performance) and collection of contractually required principal and interest associated with the debt is reasonably assured. Additionally, for a non-accrual TDR to be returned to accrual status, a current, well-documented credit analysis is required and the borrower must have complied with all terms of the modification. At such time, the accrual of interest and amortization/accretion of any remaining unamortized net deferred fees or costs and discount or premium shall resume. Any interest income which was applied to the principal balance shall not be reversed and subsequently will be recognized as an adjustment to yield over the remaining life of the loan.

Impaired Loans

For all classes within the commercial portfolio, all loans with an outstanding commitment balance above a specific threshold are evaluated on a quarterly basis for potential impairment. Generally, residential mortgage and consumer loans within any class are not individually evaluated on a regular basis for impairment. All TDRs, regardless of the outstanding balance amount or portfolio classification, and all acquired impaired loans are considered to be impaired.

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A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the likelihood of collecting scheduled principal and interest payments when contractually due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Impairment losses are measured on a loan-by-loan basis for commercial and certain residential mortgage or consumer loans, based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral-dependent. This measurement requires significant judgment and use of estimates, and the actual loss ultimately recognized by the Company may differ significantly from the estimates.

ALLOWANCE FOR CREDIT LOSSES

The Company maintains the ACL at a level that management believes appropriate to absorb estimated probable credit losses incurred in the loan portfolios, including unfunded commitments, as of the consolidated balance sheet date. The ACL consists of the allowance for loan losses (contra asset) and the reserve for unfunded commitments (liability). The manner in which the ACL is determined is based on 1) the accounting method applied to the underlying loans and 2) whether the loan is required to be measured for impairment. The Company delineates between loans accounted for under the contractual yield method, legacy and acquired non-impaired loans, and acquired impaired loans. Further, for legacy and acquired non-impaired loans, the Company attributes portions of the ACL to loans and loan commitments that it measures individually, and groups of homogeneous loans and loan commitments that it measures collectively for impairment.

Determination of the appropriate ACL involves a high degree of complexity and requires significant judgment regarding the credit quality of the loan portfolio. Several factors are taken into consideration in the determination of the overall ACL, including a qualitative component. These factors include, but are not limited to, the overall risk profiles of the loan portfolios, net charge-off experience, the extent of impaired loans, the level of non-accrual loans, the level of 90 days past due loans, the value of collateral, the ability to monetize guarantor support, and the overall percentage level of the allowance relative to the loan portfolio, amongst other factors. The Company also considers overall asset quality trends, changes in lending practices and procedures, trends in the nature and volume of the loan portfolio, including the existence and effect of any portfolio concentrations, changes in experience and depth of lending staff, the Company’s legal, regulatory and competitive environment, national and regional economic trends, data availability and applicability that might impact the portfolio or the manner in which it estimates losses, and risk rating accuracy and risk identification.

The allowance for loan losses for all impaired loans (excluding acquired impaired loans) is determined on an individual loan basis, considering the facts and circumstances specific to each borrower. The allowance is based on the difference between the recorded investment in the loan and generally either the estimated net present value of projected cash flows or the estimated value of the collateral associated with a collateral-dependent loan. 

The allowance for loan losses for all non-impaired loans (excluding acquired impaired loans) is calculated based on pools of loans with similar characteristics. The pool-level allowance is calculated through the application of PD (i.e., probability of default) and LGD (i.e., loss given default) factors for each individual loan. PDs and LGDs are determined based on historical default and loss information for similar loans. For purposes of establishing estimated loss percentages for pools of loans that share common risk characteristics, the Company’s loan portfolio is segmented by various loan characteristics including loan type, risk rating for commercial, Vantage or FICO score for residential mortgage and consumer, past due status for residential mortgage and consumer and call report code. The default and loss information is measured over an appropriate period for each loan pool and adjusted as deemed appropriate. Qualitative adjustments are incorporated into the pool-level analysis to accommodate for the imprecision of certain assumptions and uncertainties inherent in the calculation. 

See the "Loans" section of this footnote for discussion of the determination of the ACL for acquired impaired loans.

Certain inherent, but unconfirmed losses are probable within the loan portfolio. The Company’s current methodology for determining the level of inherent losses is based on historical loss rates, current credit grades, specific allocation, and other qualitative adjustments. In a stable or deteriorating credit environment, heavy reliance on historical loss rates and the credit grade rating process results in model-derived reserves that tend to slightly lag behind portfolio deterioration. Similar lags can occur in an improving credit environment whereby required reserves can lag slightly behind portfolio improvement. Given these and other model limitations, qualitative adjustment factors may be incremental or decremental to the quantitative model results.

The reserve for unfunded commitments is determined using similar methodologies described above for non-impaired loans. The loss factors used in the reserve for unfunded commitments are equivalent to the loss factors used in the allowance for loan losses, while also considering utilization of unused commitments.

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PREMISES AND EQUIPMENT

Land is carried at cost. Buildings, furniture, fixtures, and equipment are carried at cost, less accumulated depreciation computed on a straight-line basis over the estimated useful lives of 10 to 40 years for buildings and related improvements and generally 3 to 20 years for furniture, fixtures, and equipment. Leasehold improvements are amortized over the lease term, including any renewal periods that are reasonably assured, or the asset’s useful life, whichever is shorter. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but is assessed for potential impairment at a reporting unit level on an annual basis, as of October 1^st, or whenever events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than its respective carrying amount. For the annual October 1, 2018 impairment evaluation, management elected to bypass the qualitative assessment for each respective reporting unit (IBERIABANK, Mortgage, and LTC) and performed Step 1 of the goodwill impairment test. Step 1 of the goodwill impairment test requires the Company to compare the fair value of each reporting unit with its carrying amount, including goodwill. Accordingly, the Company determined the fair value of each reporting unit and compared the fair value to each respective reporting unit’s carrying amount. The Company determined that none of the reporting units’ fair values were below their respective carrying amounts. The Company concluded goodwill was not impaired as of October 1, 2018. Further, no events or changes in circumstances between October 1, 2018 and December 31, 2018 indicated that it was more likely than not the fair value of any reporting unit had been reduced below its carrying value.

Based on the testing performed in 2018 and 2017, management concluded that for the IBERIABANK, Mortgage, and LTC reporting units, goodwill was not impaired at any time during those periods.

Title Plant

Costs incurred to construct a title plant, including the costs incurred to obtain, organize, and summarize historical information, are capitalized until the title plant can be used to perform title searches. A purchased title plant, including a purchased undivided interest in a title plant, is recorded at cost at the date of acquisition. For a title plant acquired separately or as part of a business acquisition, cost is measured as the fair value of the consideration paid. Capitalized costs of a title plant are not depreciated or charged to income unless circumstances indicate that the carrying amount of the title plant has been impaired. Impairment indicators include a change in legal requirements or statutory practices, identification of obsolescence, or abandonment of the title plant, among other indicators.

Capitalized storage and retrieval costs (e.g., costs to convert from one storage retrieval system to another or to modernize the storage and retrieval systems) incurred after a title plant is operational are charged to expense in a systematic and rational manner. Title plant is recorded within "other assets" on the Company’s consolidated balance sheets.

Intangible assets subject to amortization

The Company’s acquired intangible assets that are subject to amortization primarily include core deposit intangibles, which are amortized on a straight-line or accelerated basis, and a customer relationship intangible asset, which is amortized on an accelerated basis, over average lives not to exceed 10 years. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is identified if the sum of the undiscounted estimated future cash flows is less than the carrying value of the asset.Intangible assets are recorded within "other assets" on the Company’s consolidated balance sheets.

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OTHER REAL ESTATE OWNED

Other real estate owned includes all real estate, other than bank premises used in bank operations, owned or controlled by the Company, including real estate acquired in settlement of loans. Properties are initially recognized at the lower of the recorded investment in the loan or its estimated fair value less costs to sell, generally when the Company has received physical possession. The amount by which the recorded investment of the loan exceeds the fair value less costs to sell of the property is charged to the ALL. Subsequent to foreclosure, the assets are carried at the lower of cost or fair value less costs to sell. Former bank properties transferred to OREO are recorded at the lower of cost or market. Subsequent declines in the fair value of other real estate are recorded as adjustments to the carrying amount through a valuation allowance. Revenue and expenses from operations, gain or loss on sale, and changes in the valuation allowance are included in net expenses from foreclosed assets. OREO is recorded within "other assets" on the Company’s consolidated balance sheets.

DERIVATIVE FINANCIAL INSTRUMENTS

The Company enters into various derivative financial instruments to manage interest rate risk, asset sensitivity and other exposures such as liquidity and credit risk, as well as to facilitate customer transactions. The primary types of derivatives utilized by the Company for its risk management strategies include interest rate swap agreements, interest rate collars, interest rate floors, foreign exchange contracts, interest rate lock commitments, forward sales commitments, written and purchased options, and credit derivatives. All derivative instruments are recognized on the consolidated balance sheets as "other assets" or "other liabilities" at fair value, regardless of whether a right of offset exists. Changes in the fair value of a derivative instrument are recorded based on whether it has been designated and qualifies as part of a hedging relationship.

Interest rate swap and foreign exchange contracts are entered into by the Company to allow its commercial customers to manage their exposure to market rate fluctuations. To mitigate the Company's exposure to the rate risk associated with customer contracts, offsetting derivative positions are entered into with reputable counterparties. The Company manages its credit risk, or potential risk of default, from the customer contracts through credit limit approval and monitoring procedures. These contracts are not designated for hedge accounting (i.e., treated as economic hedges).

Derivatives Designated in Hedging Relationships

For cash flow hedges, the effective and ineffective portions of the gain or loss related to the derivative instrument is initially reported as a component of OCI and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. Prior to January 1, 2018, the ineffective portion of the gain or loss, if any, was reported in earnings immediately in either "other income" or "other expense," respectively. In applying hedge accounting for derivatives, the Company establishes and documents a method for assessing the effectiveness of the hedging derivative and a measurement approach for determining the ineffective aspect of the hedge upon the inception of the hedge. The Company has designated interest rate swaps in a cash flow hedge to convert forecasted variable interest payments to a fixed rate on its junior subordinated debt. The Company has also designated interest rate collars and interest rate floors in a cash flow hedge to reduce the risk of fluctuations in interest rates and thereby reduce the Company’s exposure to variability in cash flows from variable-rate loans. The Company has concluded that the forecasted transactions are probable of occurring.

Derivatives Not Designated in Hedging Relationships

For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately.

Common Types of Derivatives

• Interest rate swap agreements Interest rate swaps are agreements to exchange interest payments based upon notional amounts. The exchange of payments typically involves paying a fixed rate and receiving a variable rate or vice versa. The Company primarily utilizes these instruments, which the Company designates as cash flow hedges, to manage interest rate risk by converting a portion of its variable-rate loans or debt to a fixed rate.

• Interest rate collars Interest rate collars are agreements that create a range within which interest rates can fluctuate. The interest rate collar protects against significant decreases in interest rates but limits the benefits when interest rates increase. These instruments are designated as cash flow hedges and are used by the Company to manage interest rate risk by reducing the variability in cash flows that can occur with variable-rate loans.

• Interest rate floors Interest rate floors are agreements that protect against significant decreases in interest rates if interest rates fall below a specified level over an agreed period of time. These instruments are designated as cash flow hedges and are used by the Company to manage interest rate risk by reducing the variability in cash flows that can occur with variable-rate loans.

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• Interest rate lock commitments The Company enters into commitments to originate mortgage loans intended for sale whereby the interest rate on the prospective loan is determined prior to funding (“rate lock”). A rate lock is provided to a borrower, subject to conditional performance obligations, for a specified period of time that typically does not exceed 60 days. Rate lock commitments on mortgage loans that are intended to be sold are recognized as derivatives. Accordingly, such commitments are recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage income on the consolidated statements of comprehensive income.

• Forward sales commitments The Company uses forward sales commitments to protect the value of its rate locks and mortgage loans held for sale from changes in interest rates and pricing between the origination of the rate lock and sale of these loans, as changes in interest rates have the potential to cause a decline in value of rate locks and mortgage loans included in the held for sale portfolio. These commitments are recognized as derivatives and recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage income on the consolidated statements of comprehensive income.

• Equity-indexed certificates of depositIBERIABANK offers its customers a certificate of deposit that provides the purchaser a guaranteed return of principal at maturity plus a potential return, which allows IBERIABANK to identify a known cost of funds. The rate of return is based on the performance of a group of publicly traded stocks that represent a variety of industry segments. Because it is based on an equity index, the rate of return represents an embedded derivative that is not clearly and closely related to the host instrument and is to be accounted for separately. Accordingly, the certificate of deposit is separated into two components: a zero coupon certificate of deposit (the host instrument) and a written option purchased by the depositor (an embedded derivative). The discount on the zero coupon deposit is amortized over the life of the deposit, and the written option is carried at fair value on the Company’s consolidated balance sheets, with changes in fair value recorded through earnings. IBERIABANK offsets the risks of the written option by purchasing an option with terms that mirror the written option, which is also carried at fair value on the Company’s consolidated balance sheets.

OFF-BALANCE SHEET CREDIT-RELATED FINANCIAL INSTRUMENTS

In the ordinary course of business, the Company executes various commitments to extend credit, including commitments under commercial construction arrangements, commercial and home equity lines of credit, credit card arrangements, commercial letters of credit, and standby letters of credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed. Such financial instruments are recorded on the funding date. At December 31, 2018 and 2017, the fair value of guarantees under commercial and standby letters of credit was not material.

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets, or portions thereof which meet the definition of a participating interest, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when 1) the assets have been legally isolated from the Company, 2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and 3) the Company does not maintain effective control over the transferred assets. If the transfer does not satisfy all three criteria, the transaction is recorded as a secured borrowing.

If the transfer is accounted for as a sale, the transferred assets are derecognized from the Company’s balance sheet and a gain or loss on sale is recognized. If the transfer is accounted for as a secured borrowing, the transferred assets remain on the Company’s balance sheet and the proceeds from the transaction are recognized as a liability.

Servicing Rights

The Company recognizes the rights to service mortgage and other loans as separate assets, which are recorded in "other assets" in the consolidated balance sheets, when purchased or when servicing is contractually separated from the underlying loans by sale with servicing rights retained.

For loan sales with servicing retained, a servicing right, generally an asset, is recorded at fair value at the time of sale for the right to service the loans sold. All servicing rights are identified by class and amortized over the remaining service life of the loan.

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INCOME TAXES

The Company and all subsidiaries file a consolidated Federal income tax return on a calendar year basis. The Company files income tax returns in the U.S. Federal jurisdiction and various state and local jurisdictions through IBERIABANK Corporation (Parent), IBERIABANK, and their respective subsidiaries. In lieu of Louisiana state income tax, IBERIABANK is subject to the Louisiana bank shares tax, portions of which are included in both "non-interest expense" and "income tax expense" in the Company’s consolidated statements of comprehensive income. With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations for years before 2014.

Deferred income tax assets and liabilities are determined using the liability or balance sheet method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in "non-interest expense."

Investments in qualified affordable housing projects that meet certain criteria are accounted for under the proportional amortization method. Under this method, the expense associated with the investments is recognized in income tax expense rather than non-interest expense. The Company has also elected to utilize the deferral method for investments that generate investment tax credits. Under this approach, the investment tax credits are recognized as a reduction of the related asset rather than income tax expense.

SHARE-BASED COMPENSATION PLANS

The Company issues stock options, restricted stock awards, restricted share units, and phantom stock awards under various plans to directors, officers, and other key employees. Compensation cost for all awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period, taking into account retirement eligibility. The majority of the Company's share-based awards qualify for equity accounting and contain service conditions. The fair value of awards is measured at the grant date and not subsequently remeasured. The Company accounts for share-based forfeitures as they occur.

For awards that contain a market condition, the Company includes the market condition in the determination of the grant date fair value of the award. Compensation cost for an award with a market condition is recognized regardless of whether the market condition is satisfied, assuming the requisite service is met. The Company does not include performance conditions in the determination of the grant date fair value of the award. Compensation cost for an award with a performance condition is not recognized if the performance condition is not satisfied. Phantom stock awards are accounted for as liability awards and are remeasured at each reporting period based on their fair value until the date of settlement. Compensation cost for each reporting period until settlement is based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered at the reporting date) in the fair value of the phantom stock award for each reporting period.

Compensation expense relating to share-based awards is recognized in net income as part of “salaries and employee benefits” on the consolidated statements of comprehensive income for employees and “professional services” for non-employee directors. The exercise price for the options granted by the Company is not less than the fair market value of the underlying stock at the grant date.

EARNINGS PER COMMON SHARE

Basic earnings per share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares, in the form of stock options or restricted stock units, had been issued, as well as any adjustment to income that would result from the assumed issuance. Participating common shares issued by the Company relate to unvested outstanding restricted stock awards, the earnings allocated to which are used in determining income available to common shareholders under the two-class method. The two-class method allocates earnings for the period between common shareholders and other participating securities holders. The participating awards receiving dividends are allocated the same percentage of income as if they were outstanding shares.

SHARE REPURCHASES

The Company classifies repurchased shares as a reduction to issued shares of common stock and adjusts the stated value of common stock and paid-in-capital.

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COMPREHENSIVE INCOME

Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and cash flow hedges, are reported as a separate component of the shareholders’ equity section of the consolidated balance sheets, such items along with net income are components of comprehensive income.

FAIR VALUE MEASUREMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company estimates fair value based on the assumptions market participants would use when selling an asset or transferring a liability and characterizes such measurements within the fair value hierarchy based on the inputs used to develop those assumptions and measure fair value. The hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

Following is a description of the valuation methodologies used for financial instruments measured at fair value, as well as the classification of such instruments within the valuation hierarchy. The descriptions below are exclusive of assets or liabilities acquired in business combinations, as all such instruments are required to initially be measured at fair value.

• Cash and cash equivalents The carrying amounts of cash and cash equivalents approximate their fair value and are classified within Level 1 of the fair value hierarchy.

• Investment securities Securities are classified within Level 1 where quoted market prices are available in an active market. If quoted market prices are unavailable, fair value is estimated using quoted prices of securities with similar characteristics and the securities are classified within Level 2 of the fair value hierarchy.

• Mortgage loans held for sale Mortgage loans originated and held for sale are recorded at fair value under the fair value option, unless otherwise noted. When determining the fair value of loans held for sale, the Company obtains quotes or bids on these loans directly from the purchasing financial institutions. Mortgage loans held for sale are classified within Level 2 of the fair value hierarchy.

• Mortgage loans held for investment at fair value option The fair value of mortgage loans held for investment at fair value option is determined by a third party using a discounted cash flow model using various assumptions about future loan performance and market discount rates. Mortgage loans held for investment at fair value option are classified within Level 3 of the fair value hierarchy.

• Loans The fair values of mortgage loans are estimated using an exit price methodology that is based on present values using interest rate that would be charged for a similar loan to a borrower with similar risk at December 31, 2018, weighted for varying maturity dates and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. At December 31, 2017, the fair value of mortgage loans was estimated using an entry value methodology.

Other loans and leases are valued based on present values using the interest rate that would be charged for a similar instrument to a borrower with similar risk at December 31, 2018, applicable to each category of instruments, and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. At December 31, 2017, the fair value of other loans and leases was estimated using an entry value methodology.

At December 31, 2018 and 2017, mortgage and other loans and leases are classified within Level 3 of the fair value hierarchy.

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• Impaired loans Fair value measurements for impaired loans are determined using either a present value of expected future cash flows discounted using the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral-dependent (Level 3 of the fair value hierarchy). Fair value of the collateral is determined by appraisals or independent valuation less costs to sell. Impaired loans for which the fair value of the collateral is higher than the recorded investment in the loan are not adjusted to fair value and therefore not recorded in the Company’s non-recurring fair value measurements section of the Fair Value Measurements footnote.

• Other real estate owned Fair values of OREO are determined by sales agreement or appraisal and costs to sell are based on estimation per the terms and conditions of the sales agreement or amounts commonly used in real estate transactions. Inputs include appraisal values on the properties or recent sales activity for similar assets in the property’s market. Updated appraisals are obtained on at least an annual basis. OREO measured at fair value is classified within Level 3 of the fair value hierarchy.

• Derivative financial instruments Fair values of interest rate swaps, interest rate locks, interest rate collars, interest rate floors, foreign exchange contracts, forward sales contracts, and written and purchased options are estimated using prices of financial instruments with similar characteristics and thus are classified within Level 2 of the fair value hierarchy.

• Deposits The fair value of non-interest-bearing deposits, NOW accounts, money market deposits and savings accounts are the amounts payable on demand at the reporting date. Certificates of deposit and other time deposits are valued using a discounted cash flow model based on the weighted-average rate at December 31, 2018 and 2017 for deposits with similar remaining maturities. The Company evaluated the inputs to the fair value estimate and based on our use of quoted prices for similar liabilities determined that the fair value of deposits should be classified within Level 2 of the fair value hierarchy.

• Short-term borrowings Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily, are reflected at the amount of cash received in connection with the transaction, and are classified within Level 1 of the fair value hierarchy. The carrying amounts of other short-term borrowings maturing within ninety days approximate their fair values and are classified within Level 2 of the fair value hierarchy as similar instruments are traded in active markets.

• Long-term debt The fair values of long-term debt are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt is classified within Level 3 of the fair value hierarchy.

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NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS

Pronouncements adopted during the year ended December 31, 2018:

ASU No. 2014-09

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which implements a common revenue standard and clarifies the principles used for recognizing revenue. The ASU clarifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Revenue from Contracts with Customers

The majority of the Company’s income streams (e.g., interest and dividend income and mortgage income) are accounted for in accordance with GAAP literature outside the scope of ASC 606, Revenue from Contracts with Customers. Details regarding income recognition for interest and non-interest streams can be found throughout Note 1 - Summary of Significant Accounting Policies. Impairment losses recognized against certain receivables (e.g., NSF fees) and capitalized costs (e.g., sales commissions) associated with contracts within the scope of ASC 606 are immaterial.

Non-interest income from service charges on deposit accounts, broker commissions, ATM/debit card fee income, credit card and merchant-related income (e.g., interchange fees), and transactional income from traditional banking services (part of other non-interest income) are the significant income streams within the scope of ASC 606 associated with the IBERIABANK reportable segment. Non-interest income from title revenue is associated with the LTC reportable segment.

Recognition of Revenue from Contracts with Customers

The Company enters into various contracts with customers to provide traditional banking services, including asset management, on a routine basis. The Company’s performance obligations are generally service-related and provided on a daily or monthly basis. The Company does not typically have performance obligations which extend beyond a reporting period. The performance obligations are generally satisfied upon completion of service (i.e., as services are rendered) and the fees are collected at such time, or shortly thereafter. The fees are readily determinable and allocated individually to each service. It is not typical for contracts to require significant judgment to determine the transaction price. Some contracts contain variable consideration; however, the variable consideration is generally constrained (not estimable) as it is based on the occurrence or nonoccurence of a contingent event (or another constraint in some circumstances). The Company generally records the variable consideration when the contingent event occurs and the fee is determinable.

The Company provides some services for customers in which it acts in an agent capacity, but generally acts in a principal capacity. Payment terms and conditions vary slightly amongst services; however, amounts are generally invoiced and due or collected by the Company within 30 days, although some fees may be prepaid. The Company bills the customer periodically as performance obligations are satisfied for most services. Therefore, revenue for services provided is generally recognized in the amount invoiced (except in circumstances of prepayment) as that amount corresponds directly to the value of the Company’s performance. In the normal course of business, the Company does not generally grant refunds for services provided. As such, the Company does not establish provisions for estimated returns.

Title revenue associated with services provided by LTC, as well as broker commissions, ATM/debit card fee income, credit card and merchant-related income (e.g., interchange fees), and transactional fees from traditional banking services generated within IBERIABANK are generally recognized at the point-in-time the services are provided. The Company has determined this recognition to be appropriate as, upon completion of services, the Company has completed its performance obligations, has a present right to payment (or has collected the cash), and the customer is able to obtain (or has obtained) substantially all of the benefits from the performance obligation (i.e., the provided services). Revenues from service charges on deposit accounts are recognized at the end of the monthly service period (e.g., account service charges) or the date the performance obligation is satisfied (e.g., NSF, stop payment, wire transfer, etc.), except for deposit account services performed by Treasury Management which are recognized on a monthly basis, as these services are performed over that time. Asset management fees (e.g., trust fees) are generally recognized at the end of the monthly service period, but fees are not collected until the beginning of the subsequent month, although some contracts may have quarterly terms and/or be prepaid. NSF fees which are not initially paid are subsequently recorded as a loan (along with the overdraft balance) and remain classified as such until the amount is paid or charged-off (generally after 60 days).

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Adoption of ASC 606

The Company adopted ASC 606 as of January 1, 2018 for all contracts as of the effective date. Prior period amounts have been reclassified to conform to current guidance requirements related to the net presentation of certain costs associated with interchange fees and rewards programs. The reclassification of prior period amounts reduced non-interest income and non-interest expense by approximately $8.9 million for the year ended December 31, 2017 and had no impact on net income. There was no cumulative adjustment made to opening retained earnings as of January 1, 2018.

ASU No. 2016-01

In January 2016, the FASB issued ASU No. 2016-01, Financial Statements - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which impacts how the Company measures certain equity investments and discloses and presents certain financial instruments through the application of the “exit price” methodology.

The Company adopted this ASU as of January 1, 2018. Under the new guidance, equity investments can no longer be classified as trading or available for sale (AFS), and the related unrealized holding gains and losses can no longer be recognized in OCI. Per the ASU, such equity investments should be measured at fair value with adjustments recognized in earnings at the end of each reporting period. The Company’s portfolio of equity investments previously classified as AFS investment securities, which were not material at the date of adoption, were reclassified to “other assets.” As these equity investments were previously measured at fair value, the implementation of this ASU did not require any changes to the Company’s valuation method for these equity investments. As a result of adopting this ASU, the Company recorded an immaterial cumulative-effect adjustment to retained earnings for previously recorded fair value adjustments related to these equity investments. The Company elected the practical expedient measurement alternative to prospectively account for other equity investments that do not have readily determinable fair values at cost less impairment plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer.

The Company also modified its methodology for determining the estimated fair value for loans measured at amortized cost to the “exit price” methodology as required by this ASU. The fair value disclosure for loans measured at amortized cost had previously been determined using an “entry price” methodology. The Company’s “exit price” methodology estimates the fair value of these loans based on the present value of the future cash flows using the interest rate that would be charged for a similar loan to a borrower with similar risk at the indicated balance sheet date, adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant.

ASU No. 2016-15

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (ASC 230): Classification of Certain Cash Receipts and Cash Payments, in order to reduce current diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.

The Company retrospectively adopted this ASU effective January 1, 2018. The adoption of this ASU did not impact the Company’s consolidated statements of cash flows.

ASU No. 2017-04

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (ASC 350): Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Therefore, any carrying amount which exceeds the reporting unit’s fair value up to the amount of goodwill recorded will be recognized as an impairment loss.

The Company elected to early adopt this ASU prospectively effective September 30, 2018. The Company completed its annual impairment test as of October 1, 2018 in accordance with this ASU and concluded that goodwill was not impaired as of the testing date.

ASU No. 2017-12

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (ASC 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results.

The Company elected to early adopt this ASU effective January 1, 2018. The modified-retrospective adoption of this ASU did not impact the Company’s consolidated financial statements in the current or prior periods.

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ASU No. 2018-15

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The guidance requires customers in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. ASC 350-40 requires the capitalization of certain costs incurred only during the application development stage (e.g., costs of integration with on-premises software, coding, configuration, and customization). ASC 350-40 also requires entities to expense costs during the preliminary project and post-implementation stages (e.g., costs of project planning, training, maintenance after implementation, data conversion) as they are incurred. The accounting for the service element of the arrangement is not affected by the ASU.

Capitalized implementation costs related to a hosting arrangement that is a service contract should be amortized over the term of the hosting arrangement. Capitalized implementation costs and the related expense should be presented in the same line item in the statement of financial position and income statement as the fees associated with the hosting element of the arrangement. Capitalized implementation cost payments should be classified in the statement of cash flows in the same manner as payments for the service component of the hosting arrangement (typically operating cash flows).

The Company elected to early adopt the guidance prospectively effective August 31, 2018. The adoption of the guidance did not have a significant impact on the Company’s consolidated financial statements.

Pronouncements issued but not yet adopted:

ASU No. 2016-02, ASU No. 2018-11, and ASU No. 2018-20

In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). This guidance requires lessees to recognize lease assets (i.e., right of use assets) and liabilities on the balance sheet for leases that are classified as operating leases. The lessor accounting model was relatively unchanged by this ASU. Additional guidance includes, but is not limited to, the elimination of leveraged leases; modification to the definition of a lease; guidance on sale and leaseback transactions; and disclosure of additional quantitative and qualitative information. ASU No. 2016-02 required lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.

In July 2018, the FASB issued ASU No. 2018-11, Leases (ASC 842): Targeted Improvements. This ASU includes an optional transition method to apply ASU No. 2016-02 on a prospective basis as of the effective date, with a cumulative effect adjustment to retained earnings in the period of adoption, instead of applying the guidance using a modified retrospective approach as originally required under ASU No. 2016-02. ASU No. 2018-11 also provides lessors with a practical expedient by class of underlying asset to not separate nonlease components from the associated lease component under certain circumstances and clarifies which guidance (ASC 842 or ASC 606) to apply to combined lease and nonlease components.

In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors. This ASU permits lessors to elect to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs and instead, exclude these taxes from the measurement of lease revenue and expense and provide certain disclosures. The ASU adds further clarity regarding lessor recognition and measurement of (i) lessor costs paid directly by lessees to third parties on the lessor’s behalf and lessor costs that are paid by the lessor and reimbursed by the lessee, and (ii) certain variable payments that are allocated to the lease and non-lease components when changes in the facts and circumstances on which the variable payment is based occur.

The Company elected the optional transition method and adopted ASU No. 2016-02, ASU No. 2018-11 and ASU No. 2018-20 effective January 1, 2019. The Company occupies certain banking offices and uses equipment under operating lease agreements, which were historically not recognized on the consolidated balance sheets. As a result of adopting this ASU, the Company anticipates recording a net increase to both assets and liabilities of approximately $100 million on January 1, 2019. The Company also elected the package of practical expedients that do not require the reassessment of expired or existing contracts’ lease classification, direct costs, or whether they are or contain leases. The Company did not elect the hindsight practical expedient. The Company did not elect to account for lease and nonlease components as a single lease component. The adjustment to retained earnings on January 1, 2019 as a result of adopting this ASU and the related impact on the Company’s regulatory capital ratios was not significant.

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ASU No. 2016-13

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments. The guidance introduces an impairment model that is based on expected credit losses (ECL), rather than incurred losses, to estimate credit losses on certain types of financial instruments such as loans and held-to-maturity securities, including certain off-balance sheet financial instruments such as loan commitments. The measurement of ECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. Financial instruments with similar risk characteristics must be grouped together when estimating ECL.

The ASU also amends the current AFS security impairment model for debt securities. The new model will require an estimate of ECL when the fair value is below the amortized cost of the asset through the use of an allowance to record estimated credit losses (and subsequent recoveries). Non-credit related losses will continue to be recognized through OCI.

In addition, the guidance provides for a simplified accounting model for purchased financial assets with a more-than-insignificant amount of credit deterioration since their origination. The initial estimate of expected credit losses would be recognized through an ALLL with an offset (i.e., increase) to the cost basis of the related financial asset at acquisition.

ASU No. 2016-13 will be effective for fiscal years beginning after December 15, 2019, including interim periods. The ASU will be applied through a modified-retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. A prospective transition approach is required for debt securities for which OTTI had been recognized before the effective date. Amounts previously recognized in AOCI as of the date of adoption that relate to improvements in cash flows expected to be collected should continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption should be recorded in earnings when received.

The Company has established a cross-function implementation team and engaged third-party consultants who have jointly developed a project plan to provide implementation oversight. The Company is in the process of developing and implementing current expected credit loss models that satisfy the requirements of the ASU and continues to identify key interpretive issues. The Company expects that this ASU will result in an increase to ALLL given the change to estimate losses over the full remaining estimated life of the loan portfolio as well as the adoption of an allowance for debt securities. The extent of the increase in the ALLL is not yet known and will depend on the composition of our loan and securities portfolios, finalization of credit loss models, macroeconomic conditions and forecasts at the adoption date.

ASU No. 2018-13

In August 2018, the FASB released ASU No. 2018-13, Fair Value Measurement (ASC 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements.

The ASU No. 2018-13 will be effective for fiscal years beginning after December 15, 2019, including interim periods, with early adoption permitted.

The Company is currently evaluating the impact of the ASU. While adoption of this ASU will result in changes to existing disclosures, it will not have any impact on our financial position or results of operation.

ASU No. 2018-16

In October 2018, the FASB released ASU No. 2018-16, Derivatives and Hedging (ASC 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes, which permits the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815 in addition to the interest rates on direct Treasury obligations of the U.S. government (UST), the London Interbank Offered Rate (LIBOR) swap rate, the OIS Rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate.

The required effective date of this ASU is dependent upon when an entity adopts the provisions of ASU No. 2017-12. The Company adopted ASU No. 2018-16 effective January 1, 2019 on a prospective basis for qualifying new or redesignated hedging relations as ASU No. 2017-12 had previously been adopted on January 1, 2018. The implementation of this ASU will not have a significant impact on the Company’s consolidated financial statements.

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ASU No. 2018-17

In October 2018, the FASB released ASU No. 2018-17, Consolidation (ASC 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, which improves the consistency of the application of the variable interest entity (VIE) related party guidance for common control arrangements. This ASU requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP) when determining whether a decision-making fee is a variable interest.

ASU No. 2018-17 will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The guidance should be applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented.

The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.

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NOTE 3 –ACQUISITION ACTIVITY

The acquisitions discussed below qualify as business combinations. The Company accounts for business combinations under the acquisition method in accordance with ASC Topic 805, Business Combinations. See Note 1, Summary of Significant Accounting Policies, for a description of the Company's accounting for business combinations.

2018 Acquisitions

Acquisition of Gibraltar

The Company completed the acquisition of Gibraltar Private Bank & Trust Co. ("Gibraltar") on March 23, 2018. The acquisition added $1.4 billion in loans and $1.1 billion in deposits, after fair value adjustments. Gibraltar operated eight offices in total, with seven located in the Florida metropolitan statistical areas of Miami, Key West, and Naples and one in New York City.

Under the terms of the Agreement and Plan of Merger, Gibraltar common shareholders received 1.9749 shares of IBERIABANK Corporation common stock for each outstanding share of Gibraltar common stock. Based on the Company's closing common stock price of $77.00 per share on March 23, 2018, the aggregate value of the acquisition consideration paid at the time of closing was approximately $214.7 million.

During the first quarter of 2018, the Company recorded preliminary purchase price allocations related to Gibraltar. Throughout the remainder of 2018, the Company continued to analyze the valuations assigned to the acquired assets and liabilities assumed. Based on new information relating to events or circumstances existing at the acquisition date and revised valuations, the Company updated estimated fair values increasing goodwill by $14.6 million to $64.3 million during the fourth quarter of 2018. This increase is primarily a result of a $17.8 million fair market value adjustment to the acquired loan portfolio. As of December 31, 2018, the valuation of the Gibraltar acquisition was final. The following table summarizes the consideration paid for Gibraltar's net assets and the fair value estimates of the identifiable assets acquired and liabilities assumed as of the acquisition date.

(Dollars in thousands)	Number of Shares	Amount
Equity consideration
Common stock issued	2,787,773	$	214,659
Total equity consideration		214,659
Non-equity consideration
Cash		7
Total consideration paid		214,666
Fair value of net assets assumed including identifiable intangible assets		150,414
Goodwill		$	64,252

(Dollars in thousands)	Gibraltar Fair Value
Assets
Cash and cash equivalents	$	102,575
Investment securities	19,169
Equity securities	27,519
Loans	1,447,475
Core deposit intangible assets	18,529
Other assets	12,005
Total assets acquired	$	1,627,272
Liabilities
Deposit liabilities	$	1,064,803
Long-term borrowings	405,107
Deferred tax liability, net	1,761
Other liabilities	5,187
Total liabilities assumed	$	1,476,858

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Information regarding the allocation of goodwill recorded as a result of the acquisition to the Company's reportable segments is provided in Note 9 "Goodwill and Other Acquired Intangible Assets." The goodwill recorded as a result of the acquisition is not deductible for tax purposes.

The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented above.

Cash and Cash Equivalents: The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment Securities: Fair values for securities were based on quoted market prices from multiple bond dealers. The simple average of the prices received was used to calculate the adjustments.

Equity Securities: The carrying amount of these securities is a reasonable estimate of fair value based on the short-term nature of these assets.

Loans: Fair values for loans were based on a discounted cash flow methodology that considered factors including loan type, classification status, remaining term of the loan, fixed or variable interest rate, amortization status and current discount rates. The discount rates used for loans were based on current market rates for new originations of comparable loans and included adjustments for any liquidity concerns. The discount rate did not include an explicit factor for credit losses, as that was included as a reduction to the estimated cash flows.

Core Deposit Intangible Assets ("CDI"): The fair value for CDI was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, alternative costs of funds, and the interest costs associated with the customer deposits. The CDI is being amortized over its estimated useful life of approximately ten years utilizing an accelerated method.

Deposit Liabilities: The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the acquisition date. Fair values for time deposits were estimated using a discounted cash flow analysis, that applied interest rates currently being offered to the contractual interest rates on such time deposits.

Long-term Borrowings: The carrying amount of long-term borrowings at the acquisition date approximated fair value, as the Company immediately paid off the debt upon acquisition.

Acquisition of SolomonParks

On January 12, 2018, the Company's subsidiary, Lenders Title Company, acquired SolomonParks Title & Escrow, LLC ("SolomonParks"). Under the terms of the agreement, LTC paid $3.3 million in cash to acquire eight title offices in the Nashville, Tennessee area, which resulted in goodwill of $3.4 million. In addition, the agreement provides for potential additional cash consideration of up to $750 thousand based on gross revenues over a two-year period after the acquisition.

Information regarding the allocation of goodwill recorded as a result of these acquisitions to the Company's reportable segments is provided in Note 9 "Goodwill and Other Acquired Intangible Assets." The goodwill recorded as a result of these acquisitions is not deductible for tax purposes.

2017 Acquisition

Acquisition of Sabadell United

The Company completed the acquisition of Sabadell United Bank, N.A. ("Sabadell United") from Banco de Sabadell, S.A. ("Banco Sabadell") on July 31, 2017. The acquisition added $4.0 billion in loans and $4.4 billion in deposits after fair value adjustments. The acquisition expanded the Company's presence in Southeast Florida adding 25 offices serving the Miami metropolitan area and three offices in Naples, Sarasota and Tampa.

Under the terms of the Stock Purchase Agreement, Banco de Sabadell, S.A. received $809.2 million in cash and 2,610,304 shares of IBERIABANK Corporation common stock in exchange for 100 percent of Sabadell United's common stock. The cash consideration was financed through two public common stock offerings completed on December 7, 2016, and March 7, 2017.

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During the third quarter of 2017, the Company recorded preliminary purchase price allocations related to Sabadell United. Throughout the remainder of 2017 and the first six months of 2018, the Company continued to analyze the valuations assigned to the acquired assets and liabilities assumed. Based on new information relating to events or circumstances existing at the acquisition date and revised valuations, the Company updated estimated fair values decreasing goodwill by $21.0 million to $441.0 million during the first six months of 2018. This decrease was primarily a result of a change in the estimated fair value of the acquired loans and deferred tax asset. The valuation of the Sabadell United acquisition was final as of June 30, 2018.

The following table summarizes the consideration paid for Sabadell United's net assets and the fair value estimates of identifiable assets acquired and liabilities assumed as of the acquisition date. See Note 3, Acquisition Activity, in the 2017 10-K for a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented below.

(Dollars in thousands)	Number of Shares	Amount
Equity consideration
Common stock issued	2,610,304	$	211,043
Total equity consideration		211,043
Non-equity consideration
Cash		809,159
Total consideration paid		1,020,202
Fair value of net assets assumed including identifiable intangible assets		579,157
Goodwill		$	441,045

(Dollars in thousands)	Sabadell United Fair Value
Assets
Cash and cash equivalents	$	318,819
Investment securities	964,123
Loans	4,030,777
Core deposit intangible assets	66,600
Deferred tax asset, net	44,480
Other assets	92,820
Total assets acquired	$	5,517,619
Liabilities
Deposit liabilities	$	4,382,780
Short-term borrowings	520,539
Other liabilities	35,143
Total liabilities assumed	$	4,938,462

Information regarding the allocation of goodwill recorded as a result of the acquisition to the Company's reportable segments is provided in Note 9 "Goodwill and Other Acquired Intangible Assets." The goodwill recorded as a result of the acquisition is not deductible for tax purposes.

The Company’s consolidated financial statements as of and for the year ended December 31, 2018 include the operating results of the acquired assets and liabilities assumed. Due to the system conversion of Sabadell United in October of 2017 and subsequent streamlining and integration of the operating activities into those of the Company, historical reporting for the former Sabadell United operations is impracticable and thus disclosure of the revenue from the assets acquired and income before income taxes is impracticable for the period subsequent to acquisition.

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The following table presents unaudited pro forma information as if the acquisition occurred on January 1, 2016. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Company acquired Sabadell United on January 1, 2016. Furthermore, cost savings and other business synergies related to the acquisition are not reflected in the pro forma amounts.

	Unaudited Pro Forma for Year Ended December 31,
(Dollars in thousands)	2017		2016
Net interest income	$	924,348	$	842,945
Non-interest income	219,021		255,022
Net income	174,246		246,799

This pro forma information combines the historical consolidated results of operations of IBERIABANK and Sabadell United for the periods presented and gives effect to the following non recurring adjustments:

Fair value adjustments: Pro forma adjustment to net interest income of $20.3 million and $38.8 million for the years ended December 31, 2017 and 2016, respectively, to record estimated amortization of premiums and accretion of discounts on acquired loans, securities, and deposits.

Sabadell United accretion / amortization: Pro forma adjustment to net interest income of $1.3 million and $4.1 million for the years ended December 31, 2017 and 2016, respectively, to eliminate Sabadell United's amortization of premiums and accretion of discounts on previously acquired loans, securities, FDIC indemnification asset, and deposits.

Sabadell United provision for loan losses: Pro forma adjustments were made to provision for loan losses of $6.4 million and $5.9 million for the years ended December 31, 2017 and 2016, respectively, to eliminate the reversal (benefit) of Sabadell United's release of provision for loan losses and to account for the provision for loan losses on new loans originated during the periods presented.

Amortization of acquired intangibles: Pro forma adjustment to non-interest expense of $5.9 million and $10.1 million for the years ended December 31, 2017 and 2016, respectively, to record estimated amortization of acquired intangible assets.

Other adjustments: Pro forma results also include adjustments related to the removal of benefit from release of reserve for unfunded lending commitments, removal of FDIC clawback liability expense, adjustments to FDIC insurance and other regulatory assessment expenses and related income tax effects.

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NOTE 4 – INVESTMENT SECURITIES

The amortized cost and fair values of investment securities, with gross unrealized gains and losses, consist of the following:

	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	995	$	3	$	—		$	998
Obligations of state and political subdivisions	177,566		2,045		(723		)	178,888
Mortgage-backed securities:
Residential agency	3,837,584		8,886		(57,073		)	3,789,397
Commercial agency	730,148		2,363		(14,799		)	717,712
Other securities	97,020		351		(787		)	96,584
Total securities available for sale	$	4,843,313	$	13,648	$	(73,382	)	$	4,783,579
Securities held to maturity:
Obligations of state and political subdivisions	$	188,684	$	309	$	(2,497	)	$	186,496
Mortgage-backed securities:
Residential agency	18,762		30		(1,011		)	17,781
Total securities held to maturity	$	207,446	$	339	$	(3,508	)	$	204,277

	December 31, 2017
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	41,003	$	18	$	(406	)	$	40,615
Obligations of state and political subdivisions	271,451		4,246		(1,493		)	274,204
Mortgage-backed securities:
Residential agency	3,675,367		1,233		(52,090		)	3,624,510
Commercial agency	546,105		228		(8,938		)	537,395
Other securities	114,005		247		(914		)	113,338
Total securities available for sale	$	4,647,931	$	5,972	$	(63,841	)	$	4,590,062
Securities held to maturity:
Obligations of state and political subdivisions	$	206,736	$	1,530	$	(275	)	$	207,991
Mortgage-backed securities:
Residential agency	20,582		41		(650		)	19,973
Total securities held to maturity	$	227,318	$	1,571	$	(925	)	$	227,964

Securities with carrying values of $2.4 billion and $2.1 billion were pledged to support repurchase transactions, public funds deposits and certain long-term borrowings at December 31, 2018 and 2017, respectively.

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Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:

	December 31, 2018
	Less Than Twelve Months					Twelve Months or More					Total
(Dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
Obligations of state and political subdivisions	$	(9	)	$	4,112	$	(714	)	$	30,268	$	(723	)	$	34,380
Mortgage-backed securities:
Residential agency	(816		)	197,057		(56,257		)	2,193,862		(57,073		)	2,390,919
Commercial agency	(43		)	18,190		(14,756		)	483,565		(14,799		)	501,755
Other securities	(94		)	18,025		(693		)	32,577		(787		)	50,602
Total securities available for sale	$	(962	)	$	237,384	$	(72,420	)	$	2,740,272	$	(73,382	)	$	2,977,656
Securities held to maturity:
Obligations of state and political subdivisions	$	(3	)	$	2,059	$	(2,494	)	$	151,699	$	(2,497	)	$	153,758
Mortgage-backed securities:
Residential agency	—			—		(1,011		)	17,478		(1,011		)	17,478
Total securities held to maturity	$	(3	)	$	2,059	$	(3,505	)	$	169,177	$	(3,508	)	$	171,236

	December 31, 2017
	Less Than Twelve Months					Twelve Months or More					Total
(Dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	(254	)	$	29,744	$	(152	)	$	9,848	$	(406	)	$	39,592
Obligations of state and political subdivisions	(326		)	31,601		(1,167		)	68,609		(1,493		)	100,210
Mortgage-backed securities:
Residential agency	(22,760		)	2,366,569		(29,330		)	1,061,588		(52,090		)	3,428,157
Commercial agency	(3,503		)	310,769		(5,435		)	164,470		(8,938		)	475,239
Other securities	(914		)	75,302		—			—		(914		)	75,302
Total securities available for sale	$	(27,757	)	$	2,813,985	$	(36,084	)	$	1,304,515	$	(63,841	)	$	4,118,500
Securities held to maturity:
Obligations of state and political subdivisions	$	(263	)	$	65,817	$	(12	)	$	3,031	$	(275	)	$	68,848
Mortgage-backed securities:
Residential agency	(2		)	333		(648		)	19,269		(650		)	19,602
Total securities held to maturity	$	(265	)	$	66,150	$	(660	)	$	22,300	$	(925	)	$	88,450

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The Company assessed the nature of the unrealized losses in its portfolio as of December 31, 2018 and 2017 to determine if there are losses that should be deemed other-than-temporary. In its analysis of these securities, management considered numerous factors to determine whether there were instances where the amortized cost basis of the debt securities would not be fully recoverable, including, but not limited to:

• The length of time and extent to which the estimated fair value of the securities was less than their amortized cost,

• Whether adverse conditions were present in the operations, geographic area, or industry of the issuer,

• The payment structure of the security, including scheduled interest and principal payments, including the issuer’s failures to make scheduled payments, if any, and the likelihood of failure to make scheduled payments in the future,

• Changes to the rating of the security by a rating agency, and

• Subsequent recoveries or additional declines in fair value after the balance sheet date.

Management believes it has considered these factors, as well as all relevant information available, when determining the expected future cash flows of the securities in question. In each instance, management has determined the cost basis of the securities would be fully recoverable. Management also has the intent to hold debt securities until their maturity or anticipated recovery if the security is classified as available for sale. In addition, management does not believe the Company will be required to sell debt securities before the anticipated recovery of the amortized cost basis of the security. As a result of the Company's analysis, no declines in the estimated fair value of the Company's investment securities were deemed to be other-than-temporary at December 31, 2018 or 2017.

At December 31, 2018, 488 debt securities had unrealized losses of 2.38% of the securities’ amortized cost basis. At December 31, 2017, 544 debt securities had unrealized losses of 1.52% of the securities’ amortized cost basis. The unrealized losses for each of the securities related to market interest rate changes and not credit concerns of the issuers. Additional information on securities that have been in a continuous loss position for over twelve months at December 31 is presented in the following table.

(Dollars in thousands)	2018		2017
Number of securities
Mortgage-backed securities:
Residential agency	302		153
Commercial agency	72		28
Obligations of state and political subdivisions	60		28
U.S. Government-sponsored enterprise obligations	—		1
Other securities	7		—
	441		210
Amortized Cost Basis
Mortgage-backed securities:
Residential agency	$	2,268,608	$	1,110,834
Commercial agency	498,321		169,905
Obligations of state and political subdivisions	185,175		72,820
U.S. Government-sponsored enterprise obligations	—		10,000
Other securities	33,270		—
	$	2,985,374	$	1,363,559
Unrealized Loss
Mortgage-backed securities:
Residential agency	$	57,268	$	29,977
Commercial agency	14,756		5,435
Obligations of state and political subdivisions	3,208		1,180
U.S. Government-sponsored enterprise obligations	—		152
Other securities	693		—
	$	75,925	$	36,744

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The amortized cost and estimated fair value of investment securities by maturity at December 31, 2018 are presented in the following table. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities. Weighted average yields are calculated on the basis of the yield to maturity based on the amortized cost of each security.

	Securities Available for Sale						Securities Held to Maturity
(Dollars in thousands)	Weighted Average Yield		Amortized Cost		Estimated Fair Value		Weighted Average Yield		Amortized Cost		Estimated Fair Value
Within one year or less	3.84	%	$	2,958	$	2,967	2.77	%	$	1,309	$	1,313
One through five years	2.68		63,397		63,183		2.47		6,303		6,291
After five through ten years	2.67		829,027		819,056		2.56		42,827		42,571
Over ten years	2.94		3,947,931		3,898,373		2.62		157,007		154,102
	2.89	%	$	4,843,313	$	4,783,579	2.60	%	$	207,446	$	204,277

The following is a summary of realized gains and losses from the sale of securities classified as available for sale. Gains or losses on securities sold are recorded on the trade date, using the specific identification method.

	Years Ended December 31
(Dollars in thousands)	2018			2017			2016
Realized gains	$	40		$	1,651		$	2,949
Realized losses	(49,940		)	(1,799		)	(948		)
	$	(49,900	)	$	(148	)	$	2,001

In addition to the gains above, the Company realized certain gains on calls of securities held to maturity that were not significant to the consolidated financial statements.

Other Equity Securities

The Company accounts for the following securities at cost less impairment plus or minus any observable price changes, which approximates fair value, with the exception of CRA and Community Development Investment Funds, which are recorded at fair value. Other Equity Securities, which are presented in “other assets” on the consolidated balance sheets, are as follows:

(Dollars in thousands)	2018		2017
Federal Home Loan Bank (FHLB) stock	$	95,213	$	95,171
Federal Reserve Bank (FRB) stock	85,630		79,191
CRA and Community Development Investment Funds	1,884		—
Other investments	9,709		3,008
	$	192,436	$	177,370

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NOTE 5 – LOANS AND LEASES

Loans and leases consist of the following at December 31:

(Dollars in thousands)	2018		2017
Commercial loans and leases:
Real estate - construction	$	1,196,366	$	1,240,396
Real estate - owner-occupied	2,395,822		2,375,321
Real estate - non-owner-occupied	5,796,117		5,322,513
Commercial and industrial (1)	5,737,017		5,135,067
	15,125,322		14,073,297
Residential mortgage loans	4,359,156		3,056,352
Consumer loans:
Home equity	2,304,694		2,292,275
Other	730,643		656,257
	3,035,337		2,948,532
Total	$	22,519,815	$	20,078,181

⁽¹⁾ Includes equipment financing leases

Net deferred loan origination fees were $30.2 million and $29.3 million at December 31, 2018 and 2017, respectively. Total net discount on the Company's loans was $136.8 million and $159.3 million at December 31, 2018 and 2017, respectively, of which $81.6 million and $94.7 million was related to non-impaired loans.

In addition to loans issued in the normal course of business, the Company considers overdrafts on customer deposit accounts to be loans and reclassifies these overdrafts as loans in its consolidated balance sheets. At December 31, 2018 and 2017, overdrafts of $9.2 million and $7.4 million, respectively, have been reclassified to loans.

Loans with carrying values of $7.6 billion and $6.6 billion were pledged as collateral for borrowings at December 31, 2018 and 2017, respectively.

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Aging Analysis

The following tables provide an analysis of the aging of loans and leases as of December 31, 2018 and 2017. Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

	December 31, 2018
	Accruing
(Dollars in thousands)	Current or less than 30 Days Past Due		30-59 Days		60-89 Days		> 90 Days		Total Past Due		Non-accrual Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,167,795	$	1,054	$	—	$	—	$	1,054	$	1,094	$	26,423	$	1,196,366
Real estate - owner-occupied	2,305,743		7,167		—		—		7,167		10,260		72,652		2,395,822
Real estate - non-owner-occupied	5,703,131		7,473		360		—		7,833		15,898		69,255		5,796,117
Commercial and industrial	5,645,304		5,139		1,320		553		7,012		57,860		26,841		5,737,017
Residential mortgage	4,218,146		2,768		13,063		1,575		17,406		30,396		93,208		4,359,156
Consumer - home equity	2,200,517		10,283		2,409		—		12,692		18,830		72,655		2,304,694
Consumer - other	719,122		4,695		1,601		—		6,296		2,846		2,379		730,643
Total	$	21,959,758	$	38,579	$	18,753	$	2,128	$	59,460	$	137,184	$	363,413	$	22,519,815

	December 31, 2017
	Accruing
(Dollars in thousands)	Current or less than 30 Days Past Due		30-59 Days		60-89 Days		> 90 Days		Total Past Due		Non-accrual Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,197,766	$	269	$	—	$	458	$	727	$	2,635	$	39,268	$	1,240,396
Real estate - owner-occupied	2,243,923		1,631		659		74		2,364		24,457		104,577		2,375,321
Real estate - non-owner-occupied	5,220,648		2,086		6,405		887		9,378		6,811		85,676		5,322,513
Commercial and industrial	5,014,438		5,788		5,726		146		11,660		77,823		31,146		5,135,067
Residential mortgage	2,877,048		10,083		8,136		5,317		23,536		17,387		138,381		3,056,352
Consumer - home equity	2,186,554		11,675		2,947		18		14,640		12,365		78,716		2,292,275
Consumer - other	642,244		5,286		1,026		—		6,312		3,910		3,791		656,257
Total	$	19,382,621	$	36,818	$	24,899	$	6,900	$	68,617	$	145,388	$	481,555	$	20,078,181

Acquired Loans

As discussed in Note 3, during 2017, the Company acquired loans with fair values of $4.0 billion from Sabadell United. Certain loans that were acquired in the Sabadell United transaction were covered by loss share agreements between the FDIC and Sabadell United. These FDIC loss share agreements were assumed in connection with the Company's acquisition of Sabadell United, and afforded IBERIABANK loss protection. In 2018, the Company terminated its loss share agreements with the FDIC. As a result, there were no covered loans at December 31, 2018. Covered loans were $158.6 million at December 31, 2017. Certain acquired loans from Sabadell United were to customers with addresses outside of the United States. Foreign loans, denominated in U.S. dollars, totaled $202.6 million and $325.5 million at December 31, 2018 and 2017, respectively.

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During 2018, the Company acquired loans with fair values of $1.4 billion from Gibraltar. Of the total loans acquired, $1.4 billion were determined to have no evidence of deteriorated credit quality and are accounted for under ASC Topics 310-10 and 310-20. The remaining $20.7 million were determined to exhibit deteriorated credit quality since origination under ASC 310-30. The tables below show the fair value estimates of loans acquired from Gibraltar for these two subsections of the portfolio as of the acquisition date.

(Dollars in thousands)	Acquired Non-Impaired Loans
Contractually required principal and interest at acquisition	$	1,593,408
Expected losses and foregone interest	(25,029		)
Cash flows expected to be collected at acquisition	1,568,379
Fair value of acquired loans at acquisition	$	1,426,756

(Dollars in thousands)	Acquired Impaired Loans
Contractually required principal and interest at acquisition	$	29,929
Non-accretable difference (expected losses and foregone interest)	(3,636		)
Cash flows expected to be collected at acquisition	26,293
Accretable yield	(5,574		)
Basis in acquired loans at acquisition	$	20,719

The following is a summary of changes in the accretable difference for all loans accounted for under ASC 310-30 during the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Balance at beginning of period	$	152,623		$	175,054		$	227,502
Additions	5,574			32,937			—
Transfers from non-accretable difference to accretable yield	3,623			4,912			5,490
Accretion	(47,962		)	(56,337		)	(68,211		)
Changes in expected cash flows not affecting non-accretable differences (1)	19,484			(3,943		)	10,273
Balance at end of period	$	133,342		$	152,623		$	175,054

⁽¹⁾  Includes changes in cash flows expected to be collected due to the impact of changes in actual or expected timing of liquidation events, modifications, changes in interest rates and changes in prepayment assumptions.

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Troubled Debt Restructurings

Information about the Company’s TDRs is presented in the following tables. Modifications of loans that are accounted for within a pool under ASC Topic 310-30 are excluded as TDRs. Accordingly, such modifications do not result in the removal of those loans from the pool, even if the modification of those loans would otherwise be considered a TDR. As a result, all such acquired loans that would otherwise meet the criteria for classification as a TDR are excluded from the tables below.

TDRs totaling $53.2 million, $70.5 million, and $222.4 million occurred during the years ended December 31, 2018, 2017, and 2016, respectively, through modification of the original loan terms.

The following table provides information on how the TDRs were modified during the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Extended maturities	$	23,262	$	26,561	$	75,315
Interest rate adjustment	99		24		193
Maturity and interest rate adjustment	554		4,932		2,470
Movement to or extension of interest-rate only payments	881		4,161		27,931
Forbearance	4,432		7,226		76,819
Other concession(s) (1)	23,943		27,555		39,708
Total	$	53,171	$	70,459	$	222,436

⁽¹⁾  Other concessions may include covenant waivers, forgiveness of principal or interest associated with a customer bankruptcy, or a combination of any of the above concessions.

Of the $53.2 million of TDRs occurring during the year ended December 31, 2018, $31.5 million were on accrual status and $21.7 million were on non-accrual status. Of the $70.5 million of TDRs occurring during the year ended December 31, 2017, $46.3 million were on accrual status and $24.2 million were on non-accrual status. Of the $222.4 million of TDRs occuring during the year ended December 31, 2016, $85.9 million were on accrual status and $136.5 million were on non-accrual status.

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The following table presents the end of period balance for loans modified in a TDR during the years ended December 31:

	2018					2017					2016
(In thousands, except number of loans)	Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Commercial real estate - construction	3	$	4,819	$	3,830	4	$	9,404	$	9,628	3	$	3,024	$	3,035
Commercial real estate - owner-occupied	14	4,257		3,912		11	5,779		5,706		20	18,223		18,239
Commercial real estate - non-owner-occupied	20	3,719		3,428		19	11,974		13,738		25	16,644		10,093
Commercial and industrial	52	39,796		30,295		57	21,651		20,883		79	163,265		169,893
Residential mortgage	19	1,706		1,529		24	1,897		1,771		43	5,141		4,946
Consumer - home equity	65	10,607		8,951		123	16,346		15,862		158	13,273		12,568
Consumer - other	73	1,491		1,226		121	3,182		2,871		195	4,070		3,662
Total	246	$	66,395	$	53,171	359	$	70,233	$	70,459	523	$	223,640	$	222,436

Information detailing TDRs that defaulted during the years ended December 31, 2018, 2017, and 2016 and were modified in the previous twelve months (i.e., the twelve months prior to the default) is presented in the following table. The Company has defined a default as any loan with a loan payment that is currently past due greater than 30 days, or was past due greater than 30 days at any point during the previous twelve months, or since the date of modification, whichever is shorter.

	2018			2017			2016
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial real estate - construction	—	$	—	2	$	3,572	1	$	116
Commercial real estate - owner-occupied	2	142		6	4,668		3	3,473
Commercial real estate - non-owner-occupied	5	1,039		13	8,060		6	201
Commercial and industrial	13	3,757		32	6,550		22	14,707
Residential mortgage	8	773		16	1,218		8	405
Consumer - home equity	15	1,354		32	3,285		25	1,379
Consumer - other	38	447		62	1,381		59	944
Total	81	$	7,512	163	$	28,734	124	$	21,225

82

NOTE 6 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Allowance for Credit Losses Activity

A summary of changes in the allowance for credit losses for the years ended December 31 is as follows:

(Dollars in thousands)	2018			2017			2016
Allowance for credit losses
Allowance for loan and lease losses at beginning of period	$	140,891		$	144,719		$	138,378
Provision for loan and lease losses before adjustment attributable to FDIC loss share agreements	39,472			51,111			42,927
Adjustment attributable to FDIC loss share arrangements	—			—			1,497
Net provision for loan and lease losses	39,472			51,111			44,424
Adjustment attributable to FDIC loss share arrangements	—			—			(1,497		)
Transfer of balance to OREO and other	(7,172		)	934			(2,781		)
Charge-offs	(45,547		)	(62,466		)	(39,839		)
Recoveries	12,927			6,593			6,034
Allowance for loan and lease losses at end of period	$	140,571		$	140,891		$	144,719
Reserve for unfunded commitments at beginning of period	$	13,208		$	11,241		$	14,145
Balance created in acquisition accounting	709			1,370			—
Provision for (Reversal of) unfunded lending commitments	913			597			(2,904		)
Reserve for unfunded commitments at end of period	$	14,830		$	13,208		$	11,241
Allowance for credit losses at end of period	$	155,401		$	154,099		$	155,960

83

A summary of changes in the allowance for credit losses, by loan portfolio type, for the years ended December 31 is as follows:

	2018
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	54,201		$	53,916		$	9,117		$	23,657		$	140,891
Provision for (Reversal of) loan and lease losses	(829		)	23,866			4,200			12,235			39,472
Transfer of balance to OREO and other	(2,256		)	(812		)	(106		)	(3,998		)	(7,172		)
Charge-offs	(1,611		)	(29,578		)	(334		)	(14,024		)	(45,547		)
Recoveries	2,301			6,704			121			3,801			12,927
Allowance for loan and lease losses at end of period	$	51,806		$	54,096		$	12,998		$	21,671		$	140,571
Reserve for unfunded commitments at beginning of period	$	4,531		$	5,309		$	555		$	2,813		$	13,208
Balance created in acquisition accounting	118			40			551			—			709
Provision for (Reversal of) unfunded commitments	220			849			(240		)	84			913
Reserve for unfunded commitments at end of period	$	4,869		$	6,198		$	866		$	2,897		$	14,830
Allowance on loans individually evaluated for impairment	$	636		$	12,646		$	145		$	2,915		$	16,342
Allowance on loans collectively evaluated for impairment	45,651			39,949			6,961			18,705			111,266
Allowance on loans acquired with deteriorated credit quality	5,519			1,501			5,892			51			12,963
Loans and leases, net of unearned income:
Balance at end of period	$	9,388,305		$	5,737,017		$	4,359,156		$	3,035,337		$	22,519,815
Balance at end of period individually evaluated for impairment	53,905			71,801			6,579			37,440			169,725
Balance at end of period collectively evaluated for impairment	9,166,070			5,638,375			4,259,369			2,922,863			21,986,677
Balance at end of period acquired with deteriorated credit quality	168,330			26,841			93,208			75,034			363,413

84

	2017
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	49,231		$	60,939		$	11,249		$	23,300		$	144,719
Provision for (Reversal of) loan and lease losses	10,433			31,891			(2,206		)	10,993			51,111
Transfer of balance to OREO and other	853			(68		)	2			147			934
Charge-offs	(7,433		)	(40,015		)	(365		)	(14,653		)	(62,466		)
Recoveries	1,117			1,169			437			3,870			6,593
Allowance for loan and lease losses at end of period	$	54,201		$	53,916		$	9,117		$	23,657		$	140,891
Reserve for unfunded commitments at beginning of period	$	3,207		$	4,537		$	657		$	2,840		$	11,241
Balance created in acquisition accounting	253			783			327			7			1,370
Provision for (Reversal of) unfunded commitments	1,071			(11		)	(429		)	(34		)	597
Reserve for unfunded commitments at end of period	$	4,531		$	5,309		$	555		$	2,813		$	13,208
Allowance on loans individually evaluated for impairment	$	1,588		$	12,736		$	172		$	2,856		$	17,352
Allowance on loans collectively evaluated for impairment	30,360			38,944			3,141			17,210			89,655
Allowance on loans acquired with deteriorated credit quality	22,253			2,236			5,804			3,591			33,884
Loans and leases, net of unearned income:
Balance at end of period	$	8,938,230		$	5,135,067		$	3,056,352		$	2,948,532		$	20,078,181
Balance at end of period individually evaluated for impairment	91,785			102,416			6,749			37,177			238,127
Balance at end of period collectively evaluated for impairment	8,616,924			5,001,505			2,911,222			2,828,848			19,358,499
Balance at end of period acquired with deteriorated credit quality	229,521			31,146			138,381			82,507			481,555

85

	2016
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	51,372		$	49,355		$	11,789		$	25,862		$	138,378
Provision for loan and lease losses	1,958			32,296			824			9,346			44,424
Decrease in FDIC loss share receivable	(34		)	(50		)	(1,090		)	(323		)	(1,497		)
Transfer of balance to OREO and other	(868		)	(519		)	(141		)	(1,253		)	(2,781		)
Charge-offs	(4,338		)	(21,645		)	(313		)	(13,543		)	(39,839		)
Recoveries	1,141			1,502			180			3,211			6,034
Allowance for loan and lease losses at end of period	$	49,231		$	60,939		$	11,249		$	23,300		$	144,719
Reserve for unfunded commitments at beginning of period	$	4,167		$	6,106		$	830		$	3,042		$	14,145
Reversal of provision for unfunded commitments	(960		)	(1,569		)	(173		)	(202		)	(2,904		)
Reserve for unfunded commitments at end of period	$	3,207		$	4,537		$	657		$	2,840		$	11,241
Allowance on loans individually evaluated for impairment	$	1,378		$	21,413		$	144		$	1,358		$	24,293
Allowance on loans collectively evaluated for impairment	25,248			37,206			4,223			17,537			84,214
Allowance on loans acquired with deteriorated credit quality	22,605			2,320			6,882			4,405			36,212
Loans and leases, net of unearned income:
Balance at end of period	$	6,846,549		$	4,060,032		$	1,267,400		$	2,890,990		$	15,064,971
Balance at end of period individually evaluated for impairment	61,006			220,995			4,312			16,467			302,780
Balance at end of period collectively evaluated for impairment	6,504,875			3,806,305			1,140,136			2,780,689			14,232,005
Balance at end of period acquired with deteriorated credit quality	280,668			32,732			122,952			93,834			530,186

Portfolio Segment Risk Factors

Commercial real estate loans include loans to commercial customers for long-term financing of land and buildings or for land development or construction of a building. These loans are repaid through revenues from operations of the businesses, rents of properties, sales of properties and refinances. Commercial and industrial loans represent loans to commercial customers to finance general working capital needs, equipment purchases and other projects where repayment is derived from cash flows resulting from business operations. The Company originates commercial business loans on a secured and, to a lesser extent, unsecured basis.

Residential mortgage loans consist of loans to consumers to finance a primary residence. The vast majority of the residential mortgage loan portfolio is comprised of non-conforming 1-4 family mortgage loans secured by properties located in the Company's market areas and originated under terms and documentation that permit their sale in a secondary market.

Consumer loans are offered by the Company in order to provide a full range of retail financial services to its customers and include home equity, credit card and other direct consumer installment loans. The Company originates substantially all of its consumer loans in its primary market areas. Loans in the consumer segment are sensitive to unemployment and other key consumer economic measures.

86

Credit Quality

The Company utilizes an asset risk classification system in accordance with guidelines established by the Federal Reserve Board as part of its efforts to monitor commercial asset quality. “Special mention” loans are defined as loans where known information about possible credit problems of the borrower cause management to have some doubt as to the ability of these borrowers to comply with the present loan repayment terms and which may result in future disclosure of these loans as non-performing. For assets with identified credit issues, the Company has two primary classifications for problem assets: “substandard” and “doubtful.”

Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full satisfaction of the loan balance outstanding questionable, which makes probability of loss higher based on currently existing facts, conditions, and values. Loans classified as "Loss" have been identified as uncollectible and in most cases these loans will be charged off in the subsequent reporting period. Loans classified as substandard, doubtful, and loss are collectively referred to as classified loans. Criticized loans include all classified loans, as well as loans classified as special mention. Loans classified as “Pass” do not meet the criteria set forth for special mention, substandard, doubtful, or loss classification and are not considered criticized or classified. Asset risk classifications are determined at origination or acquisition and reviewed on an ongoing basis. Risk classifications are changed if, in the opinion of management, the risk profile of the customer has changed since the last review of the loan relationship.

The Company’s investment in loans by credit quality indicator is presented in the following tables. Asset risk classifications for commercial loans reflect the classification as of December 31, 2018 and 2017, respectively. Credit quality information in the tables below includes total loans acquired (including acquired impaired loans) at the net loan balance, after the application of premiums/discounts, at December 31, 2018 and 2017. Loan premiums/discounts represent the adjustment of acquired loans to fair value at the acquisition date, as adjusted for income accretion and changes in cash flow estimates in subsequent periods.

Loan delinquency is the primary credit quality indicator that the Company utilizes to monitor consumer asset quality.

	December 31, 2018										December 31, 2017
(Dollars in thousands)	Pass		Special Mention		Sub- standard		Doubtful		Total		Pass		Special Mention		Sub- standard		Doubtful		Loss		Total
Commercial real estate - construction	$	1,182,554	$	1,062	$	12,740	$	10	$	1,196,366	$	1,189,490	$	20,351	$	30,541	$	14	$	—	$	1,240,396
Commercial real estate - owner-occupied	2,328,999		25,526		41,297		—		2,395,822		2,234,151		82,114		56,590		2,466		—		2,375,321
Commercial real estate - non-owner-occupied	5,687,963		78,009		26,512		3,633		5,796,117		5,258,638		19,311		42,702		1,744		118		5,322,513
Commercial and industrial	5,586,482		52,632		73,853		24,050		5,737,017		4,882,554		88,149		128,961		35,403		—		5,135,067
Total	$	14,785,998	$	157,229	$	154,402	$	27,693	$	15,125,322	$	13,564,833	$	209,925	$	258,794	$	39,627	$	118	$	14,073,297

	December 31, 2018						December 31, 2017
(Dollars in thousands)	Current		30+ Days Past Due		Total		Current		30+ Days Past Due		Total
Residential mortgage	$	4,290,152	$	69,004	$	4,359,156	$	2,962,043	$	94,309	$	3,056,352
Consumer - home equity	2,258,659		46,035		2,304,694		2,250,205		42,070		2,292,275
Consumer - other	721,231		9,412		730,643		645,498		10,759		656,257
Total	$	7,270,042	$	124,451	$	7,394,493	$	5,857,746	$	147,138	$	6,004,884

87

Impaired Loans

Information on the Company’s investment in impaired loans, which include all TDRs and all other non-accrual loans evaluated or measured individually for impairment for purposes of determining the ALLL, is presented in the following tables as of and for the periods indicated.

	December 31, 2018
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	10,261	$	9,262	$	—		$	9,189	$	496
Commercial real estate - owner-occupied	25,037		19,044		—			19,559		807
Commercial real estate - non-owner-occupied	15,265		14,288		—			14,873		590
Commercial and industrial	55,554		43,886		—			47,268		2,422
Residential mortgage	1,244		1,221		—			1,261		46
Consumer - home equity	4,183		4,176		—			2,867		39
With an allowance recorded:
Commercial real estate - construction	228		140		(11		)	148		1
Commercial real estate - owner-occupied	5,032		4,773		(520		)	4,976		196
Commercial real estate - non-owner-occupied	6,445		6,398		(105		)	6,229		294
Commercial and industrial	46,387		27,915		(12,646		)	40,653		795
Residential mortgage	5,870		5,358		(145		)	5,494		225
Consumer - home equity	29,284		28,818		(2,427		)	27,911		1,202
Consumer - other	4,956		4,446		(488		)	4,822		273
Total	$	209,746	$	169,725	$	(16,342	)	$	185,250	$	7,386
Total commercial loans and leases	$	164,209	$	125,706	$	(13,282	)	$	142,895	$	5,601
Total mortgage loans	7,114		6,579		(145		)	6,755		271
Total consumer loans	38,423		37,440		(2,915		)	35,600		1,514

88

	December 31, 2017
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	13,763	$	13,013	$	—		$	9,104	$	441
Commercial real estate - owner-occupied	50,867		44,482		—			53,282		1,389
Commercial real estate - non-owner-occupied	15,370		14,975		—			15,127		692
Commercial and industrial	103,013		70,254		—			92,312		2,279
Residential mortgage	2,004		2,001		—			2,044		85
Consumer - home equity	5,906		5,634		—			5,747		231
Consumer - other	75		75		—			11		1
With an allowance recorded:
Commercial real estate - construction	238		156		(19		)	197		6
Commercial real estate - owner-occupied	13,314		13,287		(949		)	13,498		414
Commercial real estate - non-owner-occupied	6,051		5,872		(620		)	6,196		154
Commercial and industrial	35,306		32,162		(12,736		)	42,874		1,220
Residential mortgage	5,179		4,748		(172		)	4,861		180
Consumer - home equity	27,189		26,575		(2,358		)	23,546		1,007
Consumer - other	5,354		4,893		(498		)	4,455		269
Total	$	283,629	$	238,127	$	(17,352	)	$	273,254	$	8,368
Total commercial loans and leases	$	237,922	$	194,201	$	(14,324	)	$	232,590	$	6,595
Total mortgage loans	7,183		6,749		(172		)	6,905		265
Total consumer loans	38,524		37,177		(2,856		)	33,759		1,508

89

	December 31, 2016
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	38	$	38	$	—		$	28	$	—
Commercial real estate - owner-occupied	25,180		25,074		—			25,890		647
Commercial real estate - non-owner-occupied	15,654		14,794		—			19,587		879
Commercial and industrial	148,311		138,202		—			111,261		3,418
With an allowance recorded:
Commercial real estate - construction	1,946		1,946		(649		)	1,839		54
Commercial real estate - owner-occupied	17,580		17,429		(640		)	16,668		493
Commercial real estate - non-owner-occupied	1,743		1,725		(89		)	1,782		95
Commercial and industrial	84,197		82,793		(21,413		)	78,270		2,858
Residential mortgage	4,628		4,312		(144		)	4,377		161
Consumer - home equity	13,916		13,267		(993		)	10,237		435
Consumer - other	3,485		3,200		(365		)	2,425		151
Total	$	316,678	$	302,780	$	(24,293	)	$	272,364	$	9,191
Total commercial loans and leases	$	294,649	$	282,001	$	(22,791	)	$	255,325	$	8,444
Total mortgage loans	4,628		4,312		(144		)	4,377		161
Total consumer loans	17,401		16,467		(1,358		)	12,662		586

90

NOTE 7 –TRANSFERS AND SERVICING OF FINANCIAL ASSETS (INCLUDING MORTGAGE BANKING ACTIVITY)

Commercial Banking Activity

The unpaid principal balances of loans serviced for others were $1.6 billion and $1.3 billion at December 31, 2018 and 2017, respectively. Custodial escrow balances maintained in connection with the foregoing portfolio of loans serviced for others, and included in demand deposits, were not significant at December 31, 2018 and 2017.

Mortgage Banking Activity

IBERIABANK through one of its reportable segments, Mortgage, originates mortgage loans for sale into the secondary market. The loans originated primarily consist of residential first mortgages that conform to standards established by the GSEs, but can also consist of junior lien loans secured by residential property. These sales are primarily to private companies that are unaffiliated with the GSEs on a servicing-released basis. Changes to the carrying amount of mortgage loans held for sale at December 31 are presented in the following table.

(Dollars in thousands)	2018			2017			2016
Balance at beginning of period	$	134,916		$	157,041		$	166,247
Originations and purchases	1,469,847			1,844,358			2,460,033
Sales, net of gains	(1,498,386		)	(1,859,565		)	(2,451,459		)
Mortgage loans transferred from (transferred to) held for investment	1,058			(6,918		)	(14,017		)
Other	299			—			(3,763		)
Balance at end of period	$	107,734		$	134,916		$	157,041

The following table details the components of mortgage income for the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Fair value changes of derivatives and mortgage loans held for sale:
Mortgage loans held for sale and derivatives	$	6,490		$	(7,047	)	$	1,361
Derivative settlements, net	(4,039		)	1,229			(6,640		)
Gains on sales	42,887			68,255			87,925
Servicing and other income, net	1,339			1,133			1,207
Other losses	(253		)	—			—
	$	46,424		$	63,570		$	83,853

Servicing Rights

Servicing rights are recorded at the lower of cost or market value in “other assets” on the Company's consolidated balance sheets and amortized over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights had the following carrying values as of the periods indicated:

	December 31, 2018							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(Dollars in thousands)
Mortgage servicing rights	$	13,612	$	(4,806	)	$	8,806	$	9,588	$	(3,931	)	$	5,657

In addition, there was an insignificant amount of non-mortgage servicing rights related to SBA loans as of December 31, 2018 and 2017.

91

NOTE 8 – PREMISES AND EQUIPMENT

Premises and equipment consisted of the following at December 31:

(Dollars in thousands)	2018			2017
Land	$	81,194		$	89,137
Buildings	241,284			261,994
Furniture, fixtures and equipment	137,469			129,866
Total premises and equipment	459,947			480,997
Accumulated depreciation	(159,440		)	(149,584		)
Total premises and equipment, net	$	300,507		$	331,413

Depreciation expense was $22.4 million, $21.0 million, and $20.8 million, for the years ended December 31, 2018, 2017, and 2016, respectively.

The Company actively engages in leasing office space available in buildings it owns. Leases have various terms, generally ranging up to 5 years. Total lease income for the years ended December 31, 2018, 2017, and 2016 was $2.1 million, $2.4 million, and $2.8 million, respectively. Income from leases is reported as a reduction in occupancy and equipment expense. The total allocated cost of the portion of the buildings held for lease at December 31, 2018 and 2017 was $7.0 million and $6.9 million, respectively, with related accumulated depreciation of $2.7 million and $2.5 million, respectively.

The Company leases certain branch and corporate offices, land and ATM facilities through operating leases with terms that range from less than one year to 50 years, some of which contain renewal options and escalation clauses under various terms. In addition, some have early termination clauses. Rent expense for the years ended December 31, 2018, 2017, and 2016 totaled $22.5 million, $19.1 million, and $16.6 million, respectively.

Minimum future annual rent commitments under lease agreements for the periods indicated are as follows:

(Dollars in thousands)
2019	$	21,750
2020	19,991
2021	16,921
2022	14,195
2023	9,182
2024 and thereafter	34,652
	$	116,691

92

NOTE 9 – GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

Goodwill

Changes to the carrying amount of goodwill by reporting unit for the years ended December 31, 2018 and 2017 are provided in the following table.

(Dollars in thousands)	IBERIABANK		Mortgage		LTC		Total
Balance, December 31, 2016	$	698,513	$	23,178	$	5,165	$	726,856
Goodwill acquired and adjustments during the year	462,046		—		—		462,046
Balance, December 31, 2017	$	1,160,559	$	23,178	$	5,165	$	1,188,902
Goodwill acquired and adjustments during the year	43,251		—		3,380		46,631
Balance, December 31, 2018	$	1,203,810	$	23,178	$	8,545	$	1,235,533

On March 23, 2018, the Company completed its acquisition of Gibraltar. In connection with the acquisition, the Company recorded $64.3 million of goodwill based on fair value estimates of the assets acquired and liabilities assumed in the business combination as of December 31, 2018. On January 12, 2018, the Company's subsidiary, LTC, completed its acquisition of SolomonParks. In connection with the acquisition, LTC recorded $3.4 million of goodwill based on fair value estimates. In addition, measurement period adjustments to fair value estimates related to the acquisition of Sabadell United were updated during 2018, reducing goodwill by $21.0 million. The accounting for the acquisitions of Gibraltar, SolomonParks and Sabadell United was complete as of December 31, 2018. See Note 3 for additional information regarding these acquisitions.

The Company performed the required annual goodwill impairment test as of October 1, 2018. The Company’s annual impairment test did not indicate impairment in any of the Company’s reporting units as of the testing date. Following the testing date, management evaluated the events and changes that could indicate that goodwill might be impaired and concluded that a subsequent test was not necessary.

Title Plant

The Company held title plant assets recorded in “other intangible assets” on the Company's consolidated balance sheets totaling $6.8 million on December 31, 2018 and $6.7 million at December 31, 2017. The increase in title plant assets was the result of the SolomonParks acquisition during the first quarter of 2018. No events or changes in circumstances occurred during 2018 to suggest the carrying value of the title plant was not recoverable.

Intangible assets subject to amortization

In connection with the acquisition of Gibraltar, the Company recorded $18.5 million of core deposit intangible assets. Core deposit intangible assets are subject to amortization over a ten year period. In connection with the acquisition of SolomonParks, the Company recorded $156 thousand of non-compete agreement intangible assets. Non-compete agreement intangible assets are subject to amortization over a five year period. Definite-lived intangible assets had the following carrying values included in “other intangible assets” on the Company’s consolidated balance sheets as of December 31:

	2018							2017
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangible assets	$	136,183	$	(63,213	)	$	72,970	$	127,957	$	(51,971	)	$	75,986
Customer relationship intangible asset	1,385		(1,323		)	62		1,143		(996		)	147
Non-compete agreement	206		(72		)	134		63		(39		)	24
Total	$	137,774	$	(64,608	)	$	73,166	$	129,163	$	(53,006	)	$	76,157

93

The related amortization expense of intangible assets is as follows:

(Dollars in thousands)	Amount
Aggregate amortization expense for the years ended December 31:
2016	$	8,415
2017	12,590
2018	21,678

(Dollars in thousands)
Estimated amortization expense for the years ended December 31:
2019	$	18,363
2020	14,500
2021	10,208
2022	7,711
2023	6,410
2024 and thereafter	15,974

94

NOTE 10 –DERIVATIVE INSTRUMENTS AND OTHER HEDGING ACTIVITIES

The Company enters into derivative financial instruments to manage interest rate risk, exposures related to liquidity and credit risk, and to facilitate customer transactions. The primary types of derivatives utilized by the Company for its risk management strategies include interest rate swap agreements, interest rate collars, interest rate floors, foreign exchange contracts, interest rate lock commitments, forward sales commitments, written and purchased options, and credit derivatives. All derivative instruments are recognized on the consolidated balance sheets as "other assets" or "other liabilities" at fair value, regardless of whether a right of offset exists.

Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company enters into interest rate swap agreements in a cash flow hedge to convert forecasted variable interest payments to a fixed rate on its junior subordinated debt. In addition, the Company has entered into an interest rate collar and interest rate floors and designated the instruments as cash flow hedges of the risk of fluctuations in interest rates, thereby reducing the Company's exposure to variability in cash flows from variable-rate loans.

For cash flow hedges, the effective and ineffective portions of the gain or loss related to the derivative instrument is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. Prior to January 1, 2018, the ineffective portion of gain or loss, if any, was reported in earnings immediately in either "other income" or "other expense," respectively. In applying hedge accounting for derivatives, the Company establishes and documents a method for assessing the effectiveness of the hedging derivative and a measurement approach for determining the ineffective aspect of the hedge upon the inception of the hedge.

For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately.

Information pertaining to outstanding derivative instruments is as follows:

	Balance Sheet Location	Derivative Assets - Fair Value				Balance Sheet Location	Derivative Liabilities - Fair Value
(Dollars in thousands)		December 31, 2018		December 31, 2017			December 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	3,469	$	—	Other liabilities	$	—	$	—
Total derivatives designated as hedging instruments under ASC Topic 815		$	3,469	$	—		$	—	$	—
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts:
Customer swaps - upstream	Other assets	$	474	$	12,318	Other liabilities	$	191	$	3,873
Customer swaps - downstream	Other assets	16,946		8,128		Other liabilities	17,812		12,318
Foreign exchange contracts	Other assets	18		7		Other liabilities	18		7
Forward sales contracts	Other assets	630		136		Other liabilities	750		279
Written and purchased options	Other assets	5,490		10,654		Other liabilities	3,310		8,656
Other contracts	Other assets	21		22		Other liabilities	43		21
Total derivatives not designated as hedging instruments under ASC Topic 815		$	23,579	$	31,265		$	22,124	$	25,154
Total		$	27,048	$	31,265		$	22,124	$	25,154

95

	Derivative Assets - Notional Amount				Derivative Liabilities - Notional Amount
(Dollars in thousands)	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	$	408,500	$	—	$	—	$	108,500
Total derivatives designated as hedging instruments under ASC Topic 815	$	408,500	$	—	$	—	$	108,500
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts:
Customer swaps - upstream	$	919,653	$	644,282	$	701,257	$	574,182
Customer swaps - downstream	701,257		574,182		919,653		644,282
Foreign exchange contracts	1,202		268		1,202		268
Forward sales contracts	1,140		82,347		143,179		142,578
Written and purchased options	229,333		278,638		140,645		165,198
Other contracts	50,527		29,755		85,623		86,744
Total derivatives not designated as hedging instruments under ASC Topic 815	$	1,903,112	$	1,609,472	$	1,991,559	$	1,613,252
Total	$	2,311,612	$	1,609,472	$	1,991,559	$	1,721,752

The Company has entered into risk participation agreements with counterparties to transfer or assume credit exposures related to interest rate derivatives. The notional amounts of risk participation agreements sold were $85.6 million and $86.7 million at December 31, 2018 and 2017, respectively. Assuming all underlying third party customers referenced in the swap contracts defaulted at December 31, 2018 and December 31, 2017, the exposure from these agreements would not be material based on the fair value of the underlying swaps.

The Company is party to collateral agreements with certain derivative counterparties. Such agreements require that the Company maintain collateral based on the fair values of individual derivative transactions. In the event of default by the Company, the counterparty would be entitled to the collateral.

At December 31, 2018, the Company was not required to post collateral due to the Company's derivative position at the balance sheet date. At December 31, 2017, the Company was required to post $552 thousand in cash or securities as collateral for its derivative transactions, which is included in "interest-bearing deposits in banks" on the Company’s consolidated balance sheets. Effective January 3, 2017, the Chicago Mercantile Exchange and LCH.Clearnet Limited amended their rulebooks to legally characterize variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives' exposure rather than collateral against the exposures. In light of changes to the aforementioned rulebooks, the Board of Governors of the Federal Reserve System, the OCC and the FDIC issued guidance effective August 14, 2017, which is consistent with the SEC's accounting guidance, that allows institutions to treat centrally-cleared derivatives as settled for purposes of the capital rule. At December 31, 2018 and 2017, the Company was required to post $35.8 million and $5.1 million, respectively, in variation margin payments for its derivative transactions, which is required to be netted against the fair value of the derivatives in "other assets/other liabilities" on the consolidated balance sheets. The Company does not anticipate additional assets will be required to be posted as collateral, nor does it believe additional assets would be required to settle its derivative instruments immediately if contingent features were triggered at December 31, 2018. The Company’s master netting agreements represent written, legally enforceable bilateral agreements that (1) create a single legal obligation for all individual transactions covered by the master agreement and (2) in the event of default, provide the non-defaulting counterparty the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to promptly liquidate or set-off collateral posted by the defaulting counterparty. As permitted by U.S. GAAP, the Company does not offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against recognized fair value amounts of derivatives executed with the same counterparty under a master netting agreement.

96

The following table reconciles the gross amounts presented in the consolidated balance sheets to the net amounts that would result in the event of offset.

	December 31, 2018
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet					Net
(Dollars in thousands)			Derivatives			Collateral  (1)
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	3,469	$	—		$	—	$	3,469
Interest rate contracts not designated as hedging instruments	17,420		(619		)	—		16,801
Written and purchased options	3,285		—			—		3,285
Total derivative assets subject to master netting arrangements	$	24,174	$	(619	)	$	—	$	23,555
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	18,003	$	(619	)	$	—	$	17,384
Written and purchased options	3,285		—			—		3,285
Total derivative liabilities subject to master netting arrangements	$	21,288	$	(619	)	$	—	$	20,669

^{(1)  Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.} 

	December 31, 2017
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet						Net
(Dollars in thousands)			Derivatives			Collateral (1)
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts not designated as hedging instruments	$	20,446	$	(12,469	)	$	—		$	7,977
Written and purchased options	8,610		—			—			8,610
Total derivative assets subject to master netting arrangements	$	29,056	$	(12,469	)	$	—		$	16,587
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	16,191	$	(12,469	)	$	(552	)	$	3,170
Total derivative liabilities subject to master netting arrangements	$	16,191	$	(12,469	)	$	(552	)	$	3,170

^{(1)  Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.} 

During the years ended December 31, 2018 and 2017, the Company has not reclassified into earnings any gain or loss as a result of the discontinuance of cash flow hedges because it was probable the original forecasted transaction would not occur by the end of the originally specified term.

At December 31, 2018, the Company does not expect to reclassify a material amount from accumulated other comprehensive income into interest income over the next twelve months for derivatives that will be settled.

97

At December 31, 2018, 2017, and 2016, and for the years then ended, information pertaining to the effect of the hedging instruments on the consolidated financial statements is as follows:

		Amount of Gain (Loss) Recognized in OCI, net of taxes							Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income, net of taxes									Location of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)		Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)
		Total		Including Component		Excluding Component				Total			Including Component			Excluding Component					Total		Including Component		Excluding Component
(Dollars in thousands)		For the Year Ended December 31,
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships		2018								2018										2018
	Interest rate contracts	$	4,416	$	4,835	$	(419	)	Interest expense	$	(196	)	$	(150	)	$	(46	)	Interest expense		$	—	$	—	$	—
Total		$	4,416	$	4,835	$	(419	)		$	(196	)	$	(150	)	$	(46	)			$	—	$	—	$	—

														Location of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)		Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)
			Amount of Gain (Loss) Recognized in OCI, net of taxes					Location of Gain (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income, net of taxes
(Dollars in thousands)		For the Years Ended December 31,
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships		2017			2016				2017			2016			2017		2016
	Interest rate contracts	$	(611	)	$	(328	)	Interest expense	$	(390	)	$	50	Interest expense	$	—	$	—
Total		$	(611	)	$	(328	)		$	(390	)	$	50		$	—	$	—

Information pertaining to the effect of derivatives not designated as hedging instruments on the consolidated financial statements as of December 31, is as follows:

	Location of Gain (Loss) Recognized in  Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
(Dollars in thousands)		2018			2017			2016
Interest rate contracts (1)	Other income	$	6,962		$	4,750		$	8,830
Foreign exchange contracts	Other income	29			43			15
Forward sales contracts	Mortgage income	4,064			(4,115		)	(1,731		)
Written and purchased options	Mortgage income	180			(2,028		)	(327		)
Other contracts	Other income	(24		)	51			17
Total		$	11,211		$	(1,299	)	$	6,804

^{(1) Includes fees associated with customer interest rate contracts.} 

98

NOTE 11 – DEPOSITS

Deposits at December 31 are summarized as follows:

(Dollars in thousands)	2018		2017
Non-interest-bearing deposits	$	6,542,490	$	6,209,925
Negotiable order of withdrawal ("NOW")	4,514,113		4,348,939
Money market deposits accounts ("MMDA")	8,237,291		7,674,291
Savings deposits	828,914		846,074
Time deposits	3,640,623		2,387,488
	$	23,763,431	$	21,466,717

Total time deposits summarized by denomination at December 31 are as follows:

(Dollars in thousands)	2018		2017
Time deposits less than or equal to $250,000	$	2,522,660	$	1,768,047
Time deposits greater than $250,000	1,117,963		619,441
	$	3,640,623	$	2,387,488

A schedule of maturities of all time deposits as of December 31, 2018 is as follows:

(Dollars in thousands)
Years ending December 31,
2019	$	2,504,515
2020	876,740
2021	159,877
2022	76,486
2023	12,684
2024 and thereafter	10,321
	$	3,640,623

99

NOTE 12 – SHORT-TERM BORROWINGS

Short-term borrowings at December 31 are summarized as follows:

(Dollars in thousands)	2018		2017
Federal Home Loan Bank advances	$	1,167,000	$	475,000
Securities sold under agreements to repurchase	315,882		516,297
	$	1,482,882	$	991,297

The levels of FHLB advances and securities sold under agreements to repurchase can fluctuate significantly on a day-to-day basis, depending on funding needs and which sources are used to satisfy those needs. All such arrangements are considered typical of the banking and brokerage industries and are accounted for as borrowings.

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily and are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities.

Additional information on the Company’s short-term borrowings for the years indicated is as follows:

(Dollars in thousands)	2018			2017
Outstanding at December 31	$	1,482,882		$	991,297
Maximum month-end outstanding balance	1,482,882			2,197,105
Average daily outstanding balance	1,052,088			905,755
Average rate during the year	1.40		%	0.83		%
Average rate at year end	2.12		%	0.82		%

100

NOTE 13 – LONG-TERM DEBT

Long-term debt at December 31 is summarized as follows:

(Dollars in thousands)	2018		2017
IBERIABANK:
Federal Home Loan Bank advances, 0.864% to 7.040%	$	986,027	$	1,331,579
Notes payable - Investment fund contribution, 7 to 35 year term, 1.28% to 6.82% fixed, 7 to 30 year term, 1.28% to 6.82% fixed, respectively	60,014		44,146
	1,046,041		1,375,725
IBERIABANK Corporation (junior subordinated debt):
Statutory Trust I, 3 month LIBOR (1), plus 3.25%, issued November 2002	10,310		10,310
Statutory Trust II, 3 month LIBOR (1), plus 3.15%, issued June 2003	10,310		10,310
Statutory Trust III, 3 month LIBOR (1), plus 2.00%, issued September 2004	10,310		10,310
Statutory Trust IV, 3 month LIBOR (1), plus 1.60%, issued October 2006	15,464		15,464
American Horizons Statutory Trust I, 3 month LIBOR (1), plus 3.15%, assumed January 2005	6,186		6,186
Statutory Trust V, 3 month LIBOR (1), plus 1.435%, issued June 2007	10,310		10,310
Statutory Trust VI, 3 month LIBOR (1), plus 2.75%, issued November 2007	12,372		12,372
Statutory Trust VII, 3 month LIBOR (1), plus 2.54%, issued November 2007	13,403		13,403
Statutory Trust VIII, 3 month LIBOR (1), plus 3.50%, issued March 2008	7,217		7,217
OMNI Trust I, 3 month LIBOR (1), plus 3.30%, assumed May 2011	8,248		8,248
OMNI Trust II, 3 month LIBOR (1), plus 2.79%, assumed May 2011	7,732		7,732
GA Commerce Trust II, 3 month LIBOR (1), plus 1.64%, assumed May 2015	8,248		8,248
	120,110		120,110
	$	1,166,151	$	1,495,835

⁽¹⁾  The interest rate on the Company’s long-term debt indexed to LIBOR is based on the 3-month LIBOR rate. The 3-month LIBOR rate was2.81%and 1.69% at December 31, 2018 and 2017, respectively.

Outstanding FHLB advances are a mix of bullet and amortizing structures. Amortizing FHLB advances are amortized over periods ranging from 1.3 to 20.1 years,and have a balloon feature at maturity. Advances are collateralized by a blanket pledge of eligible loans, subject to contractual adjustments which reduce the borrowing base, as well as a secondary pledge of FHLB stock and FHLB demand deposits, the amount of which can exceed the amounts borrowed based on contractually required adjustments. Total additional FHLB advances for both short-term borrowings and long-term debt at December 31, 2018 were$7.0 billionunder the blanket floating lien including $1.9 billion from pledges of investment securities. The weighted average advance rate was 2.15%and 1.48% at December 31, 2018 and 2017, respectively.

Junior subordinated debt consists of a total of $120.1 million in Junior Subordinated Deferrable Interest Debentures of the Company issued to statutory trusts that were funded by the issuance of floating rate capital securities of the trusts. The terms of the junior subordinated debt are 30 years, and they are callable at par by the Company any time after 5 years. Interest is payable quarterly and may be deferred at any time at the election of the Company for up to 20 consecutive quarterly periods. During a deferral period, the Company is subject to certain restrictions, including being prohibited from declaring and paying dividends to its common shareholders.

101

Advances and long-term debt at December 31, 2018 have maturities or call dates in future years as follows:

(Dollars in thousands)
2019	$	309,116
2020	233,465
2021	125,255
2022	10,581
2023	58,762
2024 and thereafter	428,972
	$	1,166,151

102

NOTE 14 – INCOME TAXES

The provision for income tax expense consists of the following for the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Current expense (benefit)	$	(115,195	)	$	84,827		$	103,335
Deferred expense (benefit)	153,518			71,257			(16,654		)
Tax credits	(5,179		)	(10,845		)	(7,112		)
Amortization on qualified affordable housing tax credits	—			5,227			4,185
Tax benefits attributable to items charged to equity and goodwill	(866		)	—			1,439
	$	32,278		$	150,466		$	85,193

There was a balance receivable of $208.0 million and $4.5 million for federal and state income taxes at December 31, 2018 and 2017, respectively. The provision for federal income taxes differs from the amount computed by applying the federal income tax statutory rate of 21 percent for the year ended December 31, 2018 and 35 percent for the years ended December 31, 2017 and 2016 on income before income tax expense as indicated in the following analysis for the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Federal tax based on statutory rate	$	84,531		$	102,508		$	95,189
Increase (decrease) resulting from:
Effect of tax-exempt income	(5,801		)	(9,435		)	(8,203		)
Interest and other nondeductible expenses	6,464			9,605			3,250
State taxes, net of federal benefit	12,459			6,970			4,770
Tax credits	(5,179		)	(10,845		)	(7,112		)
Amortization on qualified affordable housing tax credits	—			5,227			4,185
Other (1)	(60,196		)	46,436			(6,886		)
	$	32,278		$	150,466		$	85,193
Effective tax rate	8.0		%	51.4		%	31.3		%

⁽¹⁾ The composition of other items resulting in a net tax benefit of $60.2 million for the year ended December 31, 2018 included a $6.6 million expense related to the finalization of accounting for the Sabadell United acquisition and its net impact from the remeasurement of deferred tax assets as a result of the passage of the Tax Cuts and Jobs Act (the "Tax Act"). In connection with filing its 2017 income tax returns, the Company recorded a non-core, permanent net income tax benefit of $65.3 million as a result of deductions claimed on the 2017 income tax returns associated with unrealized losses on securities and loans and depreciation on real and personal property.

The composition of other items resulting in a net tax expense of $46.4 million for the year ending December 31, 2017 included $51.0 million related to the estimated net impact from the remeasurement of deferred tax assets and liabilities as a result of the passage of the Tax Act in December 2017. This was partially offset by $3.0 million related to equity based compensation, $1.0 million resulting from the reversal of a prior year deferred tax asset impairment, and a $600 thousand benefit due to a deferred REIT distribution.

103

The net deferred tax asset (liability) at December 31 is as follows:

(Dollars in thousands)	2018			2017
Deferred tax asset:
NOL and credit carryforward	$	42,837		$	8,364
Allowance for credit losses	38,571			38,402
Deferred compensation	5,482			5,876
Basis difference in acquired assets and liabilities	9,228			43,391
Unrealized losses on loans and securities	—			12,198
OREO	32			2,639
Other	19,395			22,719
	115,545			133,589
Deferred tax liability:
Unrealized gains on loans and securities	(98,807		)	—
FHLB stock	—			(300		)
Premises and equipment	(10,626		)	(3,723		)
Acquisition intangibles	(9,757		)	(8,151		)
Deferred loan costs	(5,814		)	(3,114		)
Basis difference in acquired assets and liabilities	(17,628		)	(31,309		)
Lease receivable	(37,844		)	—
Other	(6,485		)	(4,885		)
	(186,961		)	(51,482		)
Net deferred tax (liability) asset	$	(71,416	)	$	82,107

At December 31, 2018, the Company's cumulative net operating loss carryforwards were $45.0 million. These net operating loss carryforwards arising from acquisitions during 2015 expire over a 20-year period and will be utilized subject to annual Internal Revenue Code Section 382 limitations. No benefit was recognized at acquisition for net operating losses that will expire unused due to the IRS limitations.

At December 31, 2018, the Company had recorded a net deferred tax liability position. The Company determined that the net deferred tax asset at December 31, 2017 was more likely than not to be realized based on an assessment of all available positive and negative evidence, and therefore, no valuation allowance was recorded.

The Company does not believe it has any unrecognized tax benefits included in its consolidated financial statements. The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations.

During the years ended December 31, 2018 and 2017, an immaterial amount of interest and penalty expense associated with state filings was recorded. During the year ended December 31, 2016, the Company did not recognize any interest or penalties in its consolidated financial statements.

104

On December 22, 2017, the Tax Act was signed into law. Under ASC 740, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. In the case of U.S. federal income taxes, the enactment date is the date the bill becomes law (i.e., upon presidential signature). Among other provisions, the most significant to the Company is the reduction of the corporate income tax rate from 35% to 21%. With respect to the legislation, the Company recognized a provisional one-time increase in tax expense of $51.0 million as of December 31, 2017 due to a re-measurement of deferred tax assets and liabilities resulting from the decrease in the corporate income tax rate. During the year ended December 31, 2018, the Company recognized a total adjustment of $6.6 million in income tax expense due to the write-down of deferred tax assets associated with the finalization of the accounting for the Sabadell United acquisition and the related impact of the Tax Act on those adjustments. This adjustment increased the year-to-date effective tax rate by 1.6% from 6.4% to 8.0%. Consistent with the guidance provided under ASC 740, the Company recorded impacts from enactment of the Tax Act in the fourth quarter of 2017 subject to Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"). SAB 118 provided a measurement period not to extend beyond one year of the enactment date to adjust the accounting for certain elements of the tax reform. The Company filed its 2017 federal and state tax returns in the fourth quarter of 2018, after which it was able to finalize deferred tax balances subject to the remeasurement under the Tax Act. The accounting for the tax effects of the Tax Act was complete as of December 22, 2018.

105

NOTE 15 – SHAREHOLDERS' EQUITY, CAPITAL RATIOS AND OTHER REGULATORY MATTERS

Preferred Stock

The following table presents a summary of the Company's non-cumulative perpetual preferred stock at December 31:

							2018		2017
	Issuance Date	Earliest Redemption Date	Annual Dividend Rate		Liquidation Amount		Carrying Amount		Carrying Amount
(Dollars in thousands)
Series B Preferred Stock	8/5/2015	8/1/2025	6.625	%	$	80,000	$	76,812	$	76,812
Series C Preferred Stock	5/9/2016	5/1/2026	6.600	%	57,500		55,285		55,285
					$	137,500	$	132,097	$	132,097

Dividends will accrue and be payable on the Series B Preferred Stock, if declared by the Company's Board of Directors, and will be paid semi-annually, in arrears, at an annual rate equal to 6.625% for each period from the issuance date up to and including August 1, 2025 and will be paid quarterly, in arrears, at an annual rate equal to three-month LIBOR plus 4.262% for each period after August 1, 2025. The Company may redeem the Series B Preferred Stock at its option, subject to regulatory approval, as described in the Company’s Registration Statement on Form 8-A, filed with the Securities and Exchange Commission on August 5, 2015.

Dividends will accrue and be payable on the Series C Preferred Stock, if declared by the Company's Board of Directors, and will be paid quarterly, in arrears, at an annual rate equal to (i) 6.600% for each period from the issuance date to May 1, 2026 and (ii) three-month LIBOR plus 4.920% for each period on or after May 1, 2026. The Company may redeem the Series C Preferred Stock at its option, subject to regulatory approval, as described in the Company’s Registration Statement on Form 8-A, filed with the Securities and Exchange Commission on May 9, 2016.

Common Stock

During the second quarter of 2018, the Company's Board of Directors authorized the repurchase of up to 1,137,500 shares of IBERIABANK Corporation's outstanding common stock, which was completed on November 5, 2018. On November 5, 2018, the Board of Directors authorized a new repurchase plan of up to 2,765,000 shares of the Company's common stock. Stock repurchases under this program will be made from time to time, on the open market or in privately negotiated transactions. The timing of these repurchases will depend on market conditions and other requirements. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and expires during the fourth quarter of 2020. The program may be extended, modified, suspended, or discontinued at any time. During 2018, the Company repurchased 1,972,500 common shares, at a weighted average price of $75.46 per common share, of which 1,472,500 were repurchased under previously completed plans. At December 31, 2018, there were approximately 2,265,000 remaining shares that may be repurchased under the current Board-approved plan. Subsequent to year-end and through February 21, 2019, the Company repurchased 226,921 common shares for approximately $17.5 million. The Company did not repurchase any common shares during 2017.

On March 23, 2018, as part of the Gibraltar acquisition, the Company issued 2,787,773 shares of common stock. The aggregate value of the acquisition consideration paid by the Company at the time of closing was approximately $214.7 million based on the Company's closing common stock price of $77.00 per share on March 23, 2018. Gibraltar common shareholders received 1.9749 shares of IBERIABANK Corporation common stock for each outstanding share of Gibraltar common stock. Refer to Note 3, Acquisition Activity, for further detail regarding the Gibraltar acquisition.

On December 7, 2016, the Company issued 3,593,750 shares of its common stock at a price of $81.50 per common share. On March 7, 2017, the Company issued 6,100,000 shares of its common stock at a price of $83.00 per common share. Net proceeds from the offerings, after deduction of underwriting discounts, commissions, and direct issuance costs, were $279.2 million and $485.2 million, respectively. The proceeds from these issuances were used to finance the cash portion of the purchase price for the acquisition of Sabadell United. The acquisition, which closed on July 31, 2017, provided for Banco de Sabadell, S.A. to receive 2,610,304 shares of the Company's common stock ($211.0 million based on the Company's closing stock price of $80.85 on that date) and $809.2 million in cash from the two stock issuances. Banco de Sabadell, S.A. sold the 2.6 million shares received as part of acquisition proceeds early in the fourth quarter of 2017. Refer to Note 3, Acquisition Activity, for further detail regarding the Sabadell United acquisition.

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Regulatory Capital

The Company and IBERIABANK are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy regulations and the regulatory framework for prompt corrective action, the Company and IBERIABANK, as applicable, must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Management believes that, as of December 31, 2018, the Company and IBERIABANK met all capital adequacy requirements to which they are subject.

As of December 31, 2018, the most recent notification from the FRB categorized IBERIABANK as well-capitalized under the regulatory framework for prompt corrective action (the prompt corrective action requirements are not applicable to the Company). To be categorized as well-capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the notification that management believes have changed that categorization. The Company’s and IBERIABANK’s actual capital amounts and ratios as of December 31 are presented in the following table.

(Dollars in thousands)	2018
	Minimum				Well-Capitalized			Actual
	Amount		Ratio		Amount		Ratio	Amount		Ratio
Tier 1 Leverage
Consolidated	$	1,168,343	4.00	%	N/A		N/A	$	2,812,863	9.63	%
IBERIABANK	1,165,537		4.00		$	1,456,921	5.00	2,733,099		9.38
Common Equity Tier 1 (CET1) (1)
Consolidated	$	1,125,405	4.50	%	N/A		N/A	$	2,680,766	10.72	%
IBERIABANK	1,122,712		4.50		$	1,621,695	6.50	2,733,099		10.95
Tier 1 Risk-Based Capital (1)
Consolidated	$	1,500,540	6.00	%	N/A		N/A	$	2,812,863	11.25	%
IBERIABANK	1,496,949		6.00		$	1,995,932	8.00	2,733,099		10.95
Total Risk-Based Capital (1)
Consolidated	$	2,000,720	8.00	%	N/A		N/A	$	3,084,764	12.33	%
IBERIABANK	1,995,932		8.00		$	2,494,915	10.00	2,888,500		11.58

	2017
	Minimum				Well-Capitalized			Actual
	Amount		Ratio		Amount		Ratio	Amount		Ratio
Tier 1 Leverage
Consolidated	$	1,073,381	4.00	%	N/A		N/A	$	2,509,496	9.35	%
IBERIABANK	1,070,789		4.00		$	1,338,487	5.00	2,437,275		9.10
Common Equity Tier 1 (CET1) (1)
Consolidated	$	1,011,732	4.50	%	N/A		N/A	$	2,377,398	10.57	%
IBERIABANK	1,009,553		4.50		$	1,458,243	6.50	2,437,275		10.86
Tier 1 Risk-Based Capital (1)
Consolidated	$	1,348,977	6.00	%	N/A		N/A	$	2,509,496	11.16	%
IBERIABANK	1,346,070		6.00		$	1,794,760	8.00	2,437,275		10.86
Total Risk-Based Capital (1)
Consolidated	$	1,798,635	8.00	%	N/A		N/A	$	2,780,095	12.37	%
IBERIABANK	1,794,760		8.00		$	2,243,450	10.00	2,591,374		11.55

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⁽¹⁾ Minimum capital ratios are subject to a capital conservation buffer. In order to avoid limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. This capital conservation buffer is calculated as the lowest of the differences between the actual CET1 ratio, Tier 1 Risk-Based Capital Ratio, and Total Risk-Based Capital ratio and the corresponding minimum ratios. At December 31, 2018, the required minimum capital conservation buffer was 1.875%, and will increase by 0.625% and be fully phased in on January 1, 2019 at 2.50%. At December 31, 2018, the capital conservation buffers of the Company and IBERIABANK were 4.33% and 3.58%, respectively.

Restrictions on Dividends, Loans and Advances

IBERIABANK is restricted under applicable laws in the payment of dividends to an amount equal to current year earnings plus undistributed earnings for the immediately preceding year, unless prior permission is received from the Commissioner of Financial Institutions for the State of Louisiana. Dividends payable by IBERIABANK in 2019 without permission are limited to 2019 earnings plus an additional $130.0 million.

Funds available for loans or advances by IBERIABANK to the Parent amounted to $288.9 million. In addition, any dividends that may be paid by IBERIABANK to the Parent would be restricted if IBERIABANK did not comply with the above-described capital conservation buffer requirements and would be prohibited if the effect thereof would cause IBERIABANK’s capital to be reduced below applicable minimum capital requirements.

During any deferral period under the Company’s junior subordinated debt, the Company would be prohibited from declaring and paying dividends to preferred and common shareholders. See Note 13 to the consolidated financial statements for additional information.

In addition, so long as any shares of Series B Preferred Stock or Series C Preferred Stock remain outstanding, the Company is prohibited from paying dividends on common stock if the required payments on the Series B Preferred Stock and Series C Preferred Stock have not been made.

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NOTE 16 –EARNINGS PER SHARE

Share-based payment awards that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities that are included in the calculation of earnings per share using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated for common stock and participating securities according to dividends declared and participating rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends.

The following table presents the calculation of basic and diluted earnings per share for the periods indicated.

	For the Years Ended December 31,
(In thousands, except per share data)	2018			2017			2016
Earnings per common share - basic
Net income	$	370,249		$	142,413		$	186,777
Preferred stock dividends	(9,095		)	(9,095		)	(7,977		)
Dividends and undistributed earnings allocated to unvested restricted shares	(3,583		)	(1,210		)	(1,872		)
Earnings allocated to common shareholders - basic	$	357,571		$	132,108		$	176,928
Weighted average common shares outstanding	55,008			50,640			40,948
Earnings per common share - basic	6.50			2.61			4.32
Earnings per common share - diluted
Earnings allocated to common shareholders - basic	$	357,571		$	132,108		$	176,928
Dividends and undistributed earnings allocated to unvested restricted shares	(49		)	(1		)	(37		)
Earnings allocated to common shareholders - diluted	$	357,522		$	132,107		$	176,891
Weighted average common shares outstanding	55,008			50,640			40,948
Dilutive potential common shares	352			352			158
Weighted average common shares outstanding - diluted	55,360			50,992			41,106
Earnings per common share - diluted	$	6.46		$	2.59		$	4.30

For the years ended December 31, 2018, 2017, and 2016, the calculations for basic shares outstanding exclude the weighted average shares owned by the RRP of 564,973, 467,601, and 447,818, respectively.

The effects from the assumed exercises of 154,397, 71,260, and 155,969 stock options were not included in the computation of diluted earnings per share for the years ended December 31, 2018, 2017, and 2016, respectively, because such amounts would have had an antidilutive effect on earnings per common share.

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NOTE 17 – SHARE-BASED COMPENSATION

The Company has various types of share-based compensation plans that permit the granting of awards in the form of stock options, restricted stock, restricted share units, and phantom stock. These plans are administered by the Compensation Committee of the Board of Directors, which selects persons eligible to receive awards and determines the terms, conditions and other provisions of the awards. At December 31, 2018, awards of 1,162,931 shares could be made under approved incentive compensation plans. The Company issues shares to fulfill stock option exercises and restricted share units and restricted stock awards vesting from available authorized common shares. At December 31, 2018, the Company believes there are adequate authorized shares to satisfy anticipated stock option exercises and restricted share unit and restricted stock award vesting.

Stock option awards

The Company issues stock options under various plans to directors, officers and other key employees. The option exercise price cannot be less than the fair value of the underlying common stock as of the date of the option grant and the maximum option term cannot exceed ten years.

The following table represents the activity related to stock options during the periods indicated:

	Number of Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value (Dollars in thousands)		Weighted Average Remaining Contract Life (in years)
Outstanding options, December 31, 2015	813,777		$	56.99
Granted	160,624		48.65
Exercised	(196,769	)	55.39		$	3,597
Forfeited or expired	(56,094	)	59.49
Outstanding options, December 31, 2016	721,538		$	55.38
Granted	80,557		84.78
Exercised	(85,221	)	55.45		2,098
Forfeited or expired	(30,508	)	68.46
Outstanding options, December 31, 2017	686,366		$	58.24
Granted	97,620		82.02
Exercised	(42,047	)	53.07		1,242
Forfeited or expired	(27,519	)	68.30
Outstanding options, December 31, 2018	714,420		$	61.41	$	5,148	5.2
Exercisable options, December 31, 2016	415,376		$	56.66
Exercisable options, December 31, 2017	455,010		55.77
Exercisable options, December 31, 2018	501,815		56.75		$	4,222	3.9

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards. The following weighted-average assumptions were used for option awards issued during the years ended December 31:

	2018			2017			2016
Expected dividends	1.8		%	1.7		%	2.8		%
Expected volatility	24.3		%	25.0		%	29.0		%
Risk-free interest rate	2.7		%	2.1		%	1.4		%
Expected term (in years)	5.8			5.8			6.5
Weighted-average grant-date fair value	$	18.48		$	18.86		$	10.46

The assumptions above are based on multiple factors, including historical stock option exercise patterns and post-vesting employment termination behaviors, expected future exercise patterns and the expected volatility of the Company’s stock price.

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The following table represents the compensation expense that is included in non-interest expense and related income tax benefits in the accompanying consolidated statements of comprehensive income related to stock options for the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to stock options	$	1,280	$	1,470	$	2,010
Income tax benefit related to stock options	93		124		331

At December 31, 2018, there was $2.0 million of unrecognized compensation expense related to stock options that is expected to be recognized over a weighted-average period of 2.8 years.

Restricted stock awards

The Company issues restricted stock under various plans for certain officers and directors. The restricted stock awards may not be sold or otherwise transferred until certain restrictions have lapsed. The holders of the restricted stock receive dividends and have the right to vote the shares. The compensation expense for these awards is determined based on the market price of the Company's common stock at the date of grant applied to the total number of shares granted and is recognized over the vesting period (generally three to five years). As of December 31, 2018 and 2017, unrecognized share-based compensation expense associated with these awards totaled $27.1 million and $31.9 million, respectively. The unrecognized compensation expense related to restricted stock awards at December 31, 2018 is expected to be recognized over a weighted-average period of 1.3 years.

Restricted share units

The Company issues restricted share units to certain of its executive officers. Restricted share units vest after the end of a three year performance period, based on satisfaction of the market and performance conditions set forth in the restricted share unit agreements. Recipients do not possess voting or investment power over the common stock underlying such units until vesting. The grant date fair value of these restricted share units is the same as the value of the corresponding number of shares of common stock, adjusted for assumptions surrounding the market-based conditions contained in the respective agreements. See Note 1, Summary of Significant Accounting Policies, for further discussion of restricted share units with market or performance conditions.

The following table represents the compensation expense that was included in non-interest expense and related income tax benefits in the accompanying consolidated statements of comprehensive income related to restricted stock awards and restricted share units for the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to restricted stock awards and restricted share units	$	18,998	$	14,966	$	12,513
Income tax benefit related to restricted stock awards and restricted share units	3,990		2,809		4,380

The following table represents unvested restricted stock award and restricted share unit activity for the years ended December 31:

	2018		2017		2016
Number of shares at beginning of period	738,187		543,261		507,130
Granted	231,064		421,198		254,276
Forfeited	(72,217	)	(31,699	)	(28,855	)
Vested	(196,406	)	(194,573	)	(189,290	)
Number of shares at end of period	700,628		738,187		543,261

The weighted average grant date fair value of restricted stock awards and restricted share units granted was $80.98, $82.49, and $48.84 for the years ended December 31, 2018, 2017, and 2016, respectively. The total fair value of restricted stock awards and restricted share units vested during the years ended December 31, 2018, 2017, and 2016 was $16.3 million, $16.4 million, and $10.7 million, respectively.

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Phantom stock awards

The Company issues phantom stock awards to certain key officers and employees. The awards are subject to a vesting period of five years and are paid out in cash upon vesting. The amount paid per vesting period is calculated as the number of vested “share equivalents” multiplied by the closing market price of a share of the Company’s common stock on the vesting date. Share equivalents are calculated on the date of grant as the total award’s dollar value divided by the closing market price of a share of the Company’s common stock on the grant date. Award recipients are also entitled to a “dividend equivalent” on each unvested share equivalent held by the award recipient. A dividend equivalent is a dollar amount equal to the cash dividends that the participant would have been entitled to receive if the participant’s share equivalents were issued in shares of common stock. Dividend equivalents are reinvested as share equivalents that will vest and be paid out on the same date as the underlying share equivalents on which the dividend equivalents were paid. The number of share equivalents accumulated with a dividend equivalent is determined by dividing the aggregate of dividend equivalents paid on the unvested share equivalents by the closing price of a share of the Company’s common stock on the dividend payment date.

The following table represents compensation expense recorded for phantom stock based on the number of share equivalents vested at December 31 of the years indicated and the current market price of the Company’s stock at that time:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to phantom stock	$	8,141	$	10,756	$	12,933

The following table represents phantom stock award activity during the periods indicated:

(Dollars in thousands)	Number of share equivalents (1)		Value of share equivalents (2)
Balance, December 31, 2015	462,430		$	25,466
Granted	215,745		18,069
Forfeited share equivalents	(42,051	)	3,522
Vested share equivalents	(163,294	)	8,509
Balance, December 31, 2016	472,830		$	39,600
Granted	118,408		9,177
Forfeited share equivalents	(34,968	)	2,710
Vested share equivalents	(162,426	)	13,515
Balance, December 31, 2017	393,844		$	30,523
Granted	157,044		10,095
Forfeited share equivalents	(63,276	)	4,067
Vested share equivalents	(134,205	)	11,156
Balance, December 31, 2018	353,407		$	22,717

⁽¹⁾  Number of share equivalents includes all reinvested dividend equivalents for the years indicated.

⁽²⁾  Except for share equivalents at the beginning of each period, which are based on the value at that time, and vested share payments, which are based on the cash paid at the time of vesting, the value of share equivalents is calculated based on the market price of the Company’s stock at the end of the respective periods. The market price of the Company’s stock was $64.28, $77.50 and $83.75 on December 31, 2018, 2017, and 2016, respectively.

401(k) defined contribution plan

The Company has a 401(k) Profit Sharing Plan covering substantially all of its employees. Annual employer contributions to the Plan are set by the Board of Directors. The Company made contributions of $3.7 million, $3.5 million, and $1.9 million for the years ended December 31, 2018, 2017, and 2016, respectively. The Plan provides, among other things, that participants in the Plan be able to direct the investment of their account balances within the Profit Sharing Plan into alternative investment funds. Participant deferrals under the salary reduction election may be matched by the employer based on a percentage to be determined annually by the employer.

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NOTE 18 – COMMITMENTS AND CONTINGENCIES

Off-balance sheet commitments

In the normal course of business, to meet the financing needs of its customers, the Company is a party to credit-related financial instruments, with risk not reflected in the consolidated financial statements. These financial instruments include commitments to extend credit, standby letters of credit, and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The credit policies used for these commitments are consistent with those used for on-balance sheet instruments. The Company’s exposure to credit loss in the event of non-performance by its customers under such commitments or letters of credit represents the contractual amount of the financial instruments as indicated in the table below. At December 31, 2018 and 2017, the fair value of guarantees under commercial and standby letters of credit was $2.4 million and $2.1 million, respectively. This fair value will decrease as the existing commercial and standby letters of credit approach their expiration dates.

At December 31, 2018 and 2017, respectively, the Company had the following financial instruments outstanding and related reserves, whose contract amounts represent credit risk:

(Dollars in thousands)	December 31, 2018		December 31, 2017
Commitments to extend credit	$	642,162	$	342,305
Unfunded commitments under lines of credit	6,883,963		6,060,034
Commercial and standby letters of credit	240,436		210,002
Reserve for unfunded lending commitments	14,830		13,208

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the borrower. Since many of the commitments are expected to be drawn upon, the total commitment amounts generally represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral, if any, is based on management’s credit evaluation of the customer.

Unfunded commitments under commercial lines of credit, revolving credit lines, and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. Many of these types of commitments do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. See Note 6, Allowance for Credit Losses and Credit Quality, for additional information related to the Company’s reserve for unfunded lending commitments.

Commercial and standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper issuance, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. When necessary, they are collateralized, generally in the form of marketable securities and cash equivalents.

Legal proceedings

The nature of the business of the Company’s banking and other subsidiaries ordinarily results in a certain amount of claims, litigation, investigations, and legal and administrative cases and proceedings, which are considered incidental to the normal conduct of business. Some of these claims are against entities or assets of which the Company is a successor or acquired in business acquisitions. The Company has asserted defenses to these claims and, with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interest of the Company and its shareholders.

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In July of 2016, the Company received a subpoena from the Office of Inspector General of the U.S. Department of Housing and Urban Development (“HUD”) requesting information on certain previously originated loans insured by the Federal Housing Administration ("FHA") as well as other documents regarding the Company's FHA-related policies and practices. After the Company complied with the subpoena, attorneys from the Department of Justice (“DOJ”) informed the Company in late March of 2017 that a civil qui tam suit had been filed against the Company in federal court involving the subject matter of the HUD subpoena. The HUD lawsuit was settled on December 11, 2017 in the amount of $11.7 million. On February 2, 2018, IBERIABANK filed a lawsuit in the United States District Court for the Eastern District of Louisiana (New Orleans) against Illinois Union Insurance Company and Travelers Casualty and Surety Company of America in an effort to recover the $11.7 million it paid to settle the HUD matter. IBERIABANK filed that lawsuit to recover the insurance proceeds to which it claims to be entitled under certain Bankers’ Professional Liability insurance policies issued by defendants Illinois Union and Travelers. More specifically, IBERIABANK alleges that the insurers have failed to honor their obligations under the policies to pay IBERIABANK’s losses in connection with the $11.7 million settlement of disputed allegations relating to IBERIABANK’s professional services in connection with certain mortgage loans insured by the FHA. The judge in the federal lawsuit granted a motion for summary judgment thereby dismissing the case. The Company is considering whether to appeal or not.

The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of loss is not estimable, the Company does not accrue legal reserves. While the outcome of legal proceedings is inherently uncertain, based on information currently available and available insurance coverage, the Company’s management believes that it has established appropriate legal reserves. Any incremental liabilities arising from pending legal proceedings are not expected to have a material adverse effect on the Company’s consolidated financial position, consolidated results of operations, or consolidated cash flows. However, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the Company’s consolidated financial position, consolidated results of operations, or consolidated cash flows.

As of the date of this filing, the Company believes the amount of losses associated with legal proceedings that it is reasonably possible to incur above amounts already accrued and reported as of December 31, 2018 is not material.

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NOTE 19 – FAIR VALUE MEASUREMENTS

Recurring fair value measurements

The following table presents information about the Company's assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2018 and 2017 and their classification within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined.

	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale	$	—	$	4,783,579	$	—	$	4,783,579
Mortgage loans held for sale	—		107,734		—		107,734
Mortgage loans held for investment, at fair value option	—		—		3,143		3,143
Derivative instruments	—		27,048		—		27,048
Total	$	—	$	4,918,361	$	3,143	$	4,921,504
Liabilities
Derivative instruments	$	—	$	22,124	$	—	$	22,124
Total	$	—	$	22,124	$	—	$	22,124
	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale	$	—	$	4,590,062	$	—	$	4,590,062
Mortgage loans held for sale	—		134,916		—		134,916
Mortgage loans held for investment, at fair value option	—		—		14,953		14,953
Derivative instruments	—		31,265		—		31,265
Total	$	—	$	4,756,243	$	14,953	$	4,771,196
Liabilities
Derivative instruments	$	—	$	25,154	$	—	$	25,154
Total	$	—	$	25,154	$	—	$	25,154

During 2018 and 2017, there were no transfers between the Level 1 and Level 2 fair value categories.

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Non-recurring fair value measurements

The Company holds certain assets that are measured at fair value, but only in certain circumstances, such as impairment. The following table presents information about the Company's assets that are measured at fair value and still held as of December 31, 2018 and 2017 for which a non-recurring fair value adjustment was recorded during the years then ended. See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined.

	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	65,914	$	65,914
OREO, net	—		—		6,433		6,433
Total	$	—	$	—	$	72,347	$	72,347
	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	71,210	$	71,210
OREO, net	—		—		7,748		7,748
Total	$	—	$	—	$	78,958	$	78,958

The tables above exclude the initial measurement of assets and liabilities that were acquired as part of the business combinations disclosed in Note 3, Acquisition Activity. These assets and liabilities were recorded at their fair value upon acquisition in accordance with U.S. GAAP and were not re-measured during the periods presented unless specifically required by U.S. GAAP. Acquisition date fair values represent either Level 2 fair value measurements (investment securities, deposits, property, and equipment) or Level 3 fair value measurements (loans, core deposit intangible assets, and debt). Refer to Note 3, Acquisition Activity, for further detail.

The Company did not record any liabilities at fair value for which measurement of the fair value was made on a non-recurring basis as of December 31, 2018 and 2017.

Fair value option

The Company has elected the fair value option for originated residential mortgage loans held for sale, which allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to hedge them without the burden of complying with the requirements for hedge accounting. The Company also has a portion of mortgage loans held for investment for which the fair value option was elected upon origination and continue to be accounted for at fair value at December 31, 2018 and 2017, respectively.

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for mortgage loans held for sale and mortgage loans held for investment measured at fair value:

	December 31, 2018							December 31, 2017
(Dollars in thousands)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Unpaid Principal			Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Unpaid Principal
Mortgage loans held for sale, at fair value	$	107,734	$	104,345	$	3,389		$	134,916	$	131,276	$	3,640
Mortgage loans held for investment, at fair value	3,143		3,595		(452		)	14,953		16,306		(1,353		)

116

Interest income on mortgage loans held for sale and mortgage loans held for investment at fair value option is recognized based on contractual rates and is reflected in interest income on loans held for sale in the consolidated statements of comprehensive income. The following table details net gains (losses) resulting from the change in fair value of loans that were recorded in mortgage income in the consolidated statements of comprehensive income for the years ended December 31, 2018, 2017 and 2016. The changes in fair value are mostly offset by economic hedging activities, with an insignificant portion of these changes attributable to changes in instrument-specific credit risk.

	Net Gains (Losses) Resulting From Changes in Fair Value
	For the Years Ended December 31,
(Dollars in thousands)	2018			2017			2016
Fair value option
Mortgage loans held for sale, at fair value	$	(251	)	$	944		$	(2,512	)
Mortgage loans held for investment, at fair value	(1,542		)	(204		)	(1,149		)

117

NOTE 20 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. ASC Topic 825, Financial Instruments, excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

The carrying amount and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are included in the tables below. See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined, except for loans, amended upon implementation of ASU 2016-01, Financial Statements - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. See Note 2, Recent Accounting Pronouncements, in this Report for a description of how the fair value measurement is determined for loans beginning January 1, 2018.

		December 31, 2018
(Dollars in thousands)		Carrying  Amount		Fair Value		Level 1		Level 2		Level 3
Measurement Category
Fair Value
	Financial Assets
	Securities available for sale	$	4,783,579	$	4,783,579	$	—	$	4,783,579	$	—
	Mortgage loans held for sale	107,734		107,734		—		107,734		—
	Mortgage loans held for investment, at fair value option	3,143		3,143		—		—		3,143
	Derivative instruments	27,048		27,048		—		27,048		—
	Financial Liabilities
	Derivative instruments	22,124		22,124		—		22,124		—
Amortized Cost
	Financial Assets
	Cash and cash equivalents	$	690,453	$	690,453	$	690,453	$	—	$	—
	Securities held to maturity	207,446		204,277		—		204,277		—
	Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	22,376,101		22,088,236		—		—		22,088,236
	Financial Liabilities
	Deposits	23,763,431		23,752,139		—		23,752,139		—
	Short-term borrowings	1,482,882		1,482,882		315,882		1,167,000		—
	Long-term debt	1,166,151		1,154,062		—		—		1,154,062

118

		December 31, 2017
(Dollars in thousands)		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Measurement Category
Fair Value
	Financial Assets
	Securities available for sale	$	4,590,062	$	4,590,062	$	—	$	4,590,062	$	—
	Mortgage loans held for sale	134,916		134,916		—		134,916		—
	Mortgage loans held for investment, at fair value option	14,953		14,953		—		—		14,953
	Derivative instruments	31,265		31,265		—		31,265		—
	Financial Liabilities
	Derivative instruments	25,154		25,154		—		25,154		—
Amortized Cost
	Financial Assets
	Cash and cash equivalents	$	625,724	$	625,724	$	625,724	$	—	$	—
	Securities held to maturity	227,318		227,964		—		227,964		—
	Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	19,922,337		19,811,904		—		—		19,811,904
	Financial Liabilities
	Deposits	21,466,717		21,460,782		—		21,460,782		—
	Short-term borrowings	991,297		991,297		516,297		475,000		—
	Long-term debt	1,495,835		1,476,899		—		—		1,476,899

The fair value estimates presented herein are based upon pertinent information available to management as of December 31, 2018 and 2017. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since these dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.

119

NOTE 21 – RELATED PARTY TRANSACTIONS

In the ordinary course of business, the Company may execute transactions with various related parties. Examples of such transactions may include lending or deposit arrangements, transfers of financial assets, services for administrative support, and other miscellaneous items.

The Company has granted loans to executive officers and directors and their affiliates. These loans, including the related principal additions, principal payments, and unfunded commitments are not material to the consolidated financial statements at December 31, 2018 and 2017. There were no outstanding loans to such related parties classified as non-accrual, past due, or troubled debt restructurings at December 31, 2018.

Deposits from related parties held by the Company were not material at December 31, 2018 and 2017.

120

NOTE 22 – 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.

	Year Ended December 31, 2018
(Dollars 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

121

	Year Ended December 31, 2017
(Dollars 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

	Year Ended December 31, 2016
(Dollars in thousands)	IBERIABANK			Mortgage		LTC		Consolidated
Interest and dividend income	$	707,676		$	9,261	$	2	$	716,939
Interest expense	64,068			3,633		—		67,701
Net interest income	643,608			5,628		2		649,238
Provision for credit losses	41,433			88		—		41,521
Mortgage income	405			83,448		—		83,853
Title revenue	—			—		22,213		22,213
Other non-interest income	121,647			4		—		121,651
Allocated expenses (income)	(13,972		)	10,686		3,286		—
Non-interest expense	480,898			65,133		17,433		563,464
Income before income tax expense	257,301			13,173		1,496		271,970
Income tax expense	79,565			5,023		605		85,193
Net income	$	177,736		$	8,150	$	891	$	186,777
Total loans, leases, and loans held for sale, net of unearned income	$	15,004,360		$	217,652	$	—	$	15,222,012
Total assets	21,319,267			315,057		24,866		21,659,190
Total deposits	17,402,742			5,541		—		17,408,283
Average assets	19,959,261			335,913		26,060		20,321,234

122

NOTE 23 – CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

Condensed financial statements of the Parent are shown below. The Parent has no significant operating activities.

Condensed Balance Sheets

(Dollars in thousands)	December 31
	2018		2017
Assets
Cash in bank	$	179,545	$	168,873
Investments in subsidiaries	4,008,802		3,661,808
Other assets	53,832		49,207
	$	4,242,179	$	3,879,888
Liabilities and Shareholders’ Equity
Liabilities	$	185,902	$	183,097
Shareholders’ equity	4,056,277		3,696,791
	$	4,242,179	$	3,879,888

Condensed Statements of Income

	Year Ended December 31
(Dollars in thousands)	2018		2017		2016
Operating income
Reimbursement of management expenses	$	83,262	$	76,177	$	65,104
Other income	245,213		146,796		829
Total operating income	328,475		222,973		65,933
Operating expenses
Interest expense	6,008		5,168		3,948
Salaries and employee benefits expense	55,436		55,013		45,623
Other expenses	28,963		32,965		19,566
Total operating expenses	90,407		93,146		69,137
Income (loss) before income tax benefit and increase in equity in undistributed earnings of subsidiaries	238,068		129,827		(3,204		)
Income tax expense	799		3,123		530
Income (loss) before equity in undistributed earnings of subsidiaries	237,269		126,704		(3,734		)
Equity in undistributed earnings of subsidiaries	132,980		15,709		190,511
Net Income	370,249		142,413		186,777
Less: Preferred stock dividends	9,095		9,095		7,977
Net Income Available to Common Shareholders	$	361,154	$	133,318	$	178,800

123

Condensed Statements of Cash Flows

(Dollars in thousands)	Year Ended December 31
	2018			2017			2016
Cash Flow from Operating Activities
Net income	$	370,249		$	142,413		$	186,777
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	145			62			98
Net income of subsidiaries	(377,974		)	(160,206		)	(190,511		)
Share-based compensation cost	20,278			16,436			14,523
Other operating activities, net	491			(4,256		)	12,417
Net Cash Provided by (Used in) Operating Activities	13,189			(5,551		)	23,304
Cash Flow from Investing Activities
Cash paid in excess of cash received for acquisitions	(7		)	(809,159		)	—
Purchases of premises and equipment	(52		)	(105		)	—
Return of capital from (Capital contributed to) subsidiary	245,000			144,500			(6,000		)
Other investing activities, net	(1,500		)	—			(749		)
Net Cash (Used in) Investing Activities	243,441			(664,764		)	(6,749		)
Cash Flow from Financing Activities
Cash dividends paid on common stock	(84,782		)	(72,772		)	(56,793		)
Cash dividends paid on preferred stock	(9,095		)	(9,095		)	(7,028		)
Net share-based compensation stock transactions	(3,226		)	(832		)	6,899
Payments to repurchase common stock	(148,855		)	—			(11,666		)
Net proceeds from issuance of common stock	—			485,151			279,242
Net proceeds from issuance of preferred stock	—			—			55,285
Other financing activities, net	—			(56		)	—
Net Cash Provided by (Used In) Financing Activities	(245,958		)	402,396			265,939
Net Increase (Decrease) in Cash and Cash Equivalents	10,672			(267,919		)	282,494
Cash and Cash Equivalents at Beginning of Period	168,873			436,792			154,298
Cash and Cash Equivalents at End of Period	$	179,545		$	168,873		$	436,792

124

Corporate Information

Corporate Headquarters

IBERIABANK Corporation

200 West Congress Street

Lafayette, LA 70501

337.521.4012

Corporate Mailing Address

P.O. Box 52747

Lafayette, LA 70505-2747

Annual Meeting

IBERIABANK Corporation Annual Meeting of Shareholders will be held on Tuesday, May 7, 2019 at 4:00 p.m., local time, at the Windsor Court Hotel, located at 300 Gravier Street, New Orleans, Louisiana.

Shareholder Assistance

Shareholders requesting a change of address, records or information about the Dividend Reinvestment Plan, or lost certificates should contact:

Investor Relations

Computershare

PO Box 30170

College Station, TX 77842-3170

800.368.5948

www.computershare.com/investor

For Information

Copies of the Company’s Annual Report on Form 10-K including financial statements and financial statement schedules, will be furnished to Shareholders without cost by sending a written request to Robert B. Worley, Jr., Secretary, IBERIABANK Corporation, 601 Poydras Street, 21st Floor, New Orleans, Louisiana 70130. This and other information regarding IBERIABANK Corporation and its subsidiaries may be accessed from our web sites. In addition, shareholders may contact:

Daryl G. Byrd, President and CEO

337.521.4003

Jefferson G. Parker, Vice Chairman, Director of Capital Markets and Investor Relations

504.310.7314

Internet Addresses

www.iberiabank.com

www.iberiabankmortgage.com

www.lenderstitlegroup.com

www.utla.com

www.iberiabankcreditcards.com

www.virtualbank.com

125

Stock Information

	MARKET PRICE						DIVIDENDS DECLARED
2018	HIGH		LOW		CLOSING
First Quarter	$	87.55	$	76.23	$	78.00	$	0.38
Second Quarter	$	84.00	$	70.40	$	75.80	$	0.38
Third Quarter	$	87.50	$	75.20	$	81.35	$	0.39
Fourth Quarter	$	83.80	$	60.82	$	64.28	$	0.41
	MARKET PRICE						DIVIDENDS DECLARED
2017	HIGH		LOW		CLOSING
First Quarter	$	86.40	$	73.60	$	79.10	$	0.36
Second Quarter	$	84.20	$	74.40	$	81.50	$	0.36
Third Quarter	$	83.30	$	69.60	$	82.15	$	0.37
Fourth Quarter	$	83.75	$	68.55	$	77.50	$	0.37

At January 31, 2019, IBERIABANK Corporation had approximately 2,507 shareholders of record. This total does not reflect shares held in nominee or "street name" accounts through various firms. These tables are a summary of regular quarterly cash dividends and market prices for the Company's common stock in the last two years. These market prices do not reflect retail markups, markdowns, or commissions.

Securities Listing

IBERIABANK Corporation’s common stock trades on the NASDAQ Global Select Market under the symbol “IBKC.” In local and national newspapers, the Company is listed under “IBERIABANK.” The Company's Series B Preferred Stock and Series C Preferred Stock trade on the NASDAQ Global Select marker under the symbols "IBKCP" and "IBKCO", respectively.

Dividend Restrictions

The majority of the Company’s revenue is from dividends declared and paid to the Company by its subsidiary, IBERIABANK, which is subject to laws and regulations that limit the amount of dividends and other distributions it can pay. In addition, the Company and IBERIABANK are required to maintain capital at or above regulatory minimums and IBERIABANK must remain “well-capitalized” under prompt corrective action regulations. The declaration and payment of dividends on the Company’s capital stock also is subject to contractual restrictions. While the Company has Series B preferred stock and Series C preferred stock outstanding, the Company may not declare and pay a dividend on its common stock unless dividends on all such outstanding preferred stock have been declared and paid in full or declared and a sum sufficient for the payment of those dividends has been set aside. See also Note 13- Long-Term Debt, Note 15- Shareholders Equity, Capital Ratios and Other Regulatory Matters, and Management’s Discussion and Analysis - Funding Sources - Long-term Debt.

Dividend Reinvestment Plan

IBERIABANK Corporation common shareholders may take advantage of our Dividend Reinvestment Plan. This program provides a convenient, economical way for common shareholders to increase their holdings of the Company’s common stock. The shareholder pays no brokerage commissions or service charges while participating in the plan.

Shareholders may enroll in IBERIABANK Corporation's common stock Dividend Reinvestment Plan through the Investor Center at www.computershare.com, or by completing an enrollment form. A summary of the plan and enrollment forms are available from Computershare by calling (800) 368-5948.

126

EX-21

EXHIBIT 21

SUBSIDIARIES OF THE REGISTRANT

IBERIABANK Corporation, a Louisiana corporation, is a bank holding company that has elected to become a financial holding company. The table below sets forth all of IBERIABANK Corporation’s subsidiaries as to state or jurisdiction of organization. All of the subsidiaries listed below are included in the consolidated financial statements, and no separate financial statements are submitted for any subsidiary.

Subsidiary	State or Jurisdiction of Organization
IBERIABANK	Louisiana
Acadiana Holdings, L.L.C.	Louisiana
CB Florida CRE Holdings, LLC	Florida
CSB Alabama CRE Holdings, LLC	Alabama
Finesco, L.L.C.	Louisiana
IB SPE Management, Inc.	Delaware
Iberia Civic Impact Partners LLC	Louisiana
Iberia Financial Services, L.L.C.	Louisiana
Iberia Investment Fund I, LLC	Louisiana
Jefferson Insurance Corporation	Louisiana
Liberty Bancorp Denning LLC	Florida
Lydian Reit Holdings, Inc.	Nevada
Mercantile Capital Corporation Inc.	Florida
OB Florida CRE Holdings, LLC	Florida
Iberia Corporate Asset Finance, Inc.	Alabama
Capital South Insurance Inc.	Alabama
IB Holdings LLC	Louisiana
Family Investment Services Inc.	Louisiana
First Private Residential Services Inc.	Texas
Lenders Title Company	Arkansas
Asset Exchange, Inc.	Arkansas
United Title of Louisiana, Inc.	Louisiana
United Title & Abstract, L.L.C.	Louisiana
United Title of Alabama, Inc.	Alabama
American Abstract and Title Company, Inc.	Arkansas
1887 Leasing, LLC	Louisiana
IB Aircraft Holdings, LLC	Delaware
IBERIA Capital Partners L.L.C.	Louisiana
IBERIA CDE, L.L.C.	Louisiana
IBERIA Asset Management, Inc.	Louisiana
IBERIABANK Statutory Trust I	Connecticut
IBERIABANK Statutory Trust II	Connecticut
IBERIABANK Statutory Trust III	Delaware
IBERIABANK Statutory Trust IV	Delaware
IBERIABANK Statutory Trust V	Delaware
IBERIABANK Statutory Trust VI	Connecticut
IBERIABANK Statutory Trust VII	Connecticut

IBERIABANK Statutory Trust VIII	Delaware
American Horizons Statutory Trust I	Connecticut
Omni Statutory Trust II	Connecticut
Omni Statutory Trust II	Connecticut
Georgia Commerce Bancshares Capital Trust I	Delaware

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements:

Registration Statement (Form S-8 No. 333-130273) pertaining to the IBERIABANK Corporation 2005 Stock Incentive Plan;

Registration Statement (Form S-8 No. 333-151754) pertaining to the IBERIABANK Corporation 2008 Incentive Compensation Plan;

Registration Statement (Form S-8 No. 333-165877) pertaining to the IBERIABANK Corporation 2010 Stock Incentive Plan;

Registration Statement (Form S-8 No. 333-174717) pertaining to the IBERIABANK Corporation Amended and Restated 2010 Stock Incentive Plan;

Registration Statement (Form S-8 No. 333-183220) pertaining to the Florida Gulf Bancorp, Inc. Officers’ and Employees’ Stock Option Plan of IBERIABANK Corporation;

Registration Statement (Form S-8 No. 333-184943) pertaining to the IBERIABANK Corporation Deferred Compensation Plan;

Registration Statement (Form S-8 No. 333-198040) pertaining to the IBERIABANK Corporation Retirement Savings Plan;

Registration Statement (Form S-8 No. 333-198041) pertaining to the IBERIABANK Corporation Amended and Restated 2010 Stock Incentive Plan; and

Registration Statement (Form S-8 No. 333-211713) pertaining to the IBERIABANK Corporation 2016 Stock Incentive Plan.

of our reports dated February 22, 2019, with respect to the consolidated financial statements of IBERIABANK Corporation and subsidiaries, and the effectiveness of internal control over financial reporting of IBERIABANK Corporation and subsidiaries incorporated by reference in this Annual Report (Form 10-K) for the year ended December 31, 2018.

/s/ Ernst & Young LLP

New Orleans, Louisiana

February 22, 2019

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

SECTION 302 CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

I, Daryl G. Byrd, President and Chief Executive Officer of IBERIABANK Corporation, certify that:

1. I have reviewed this annual report on Form 10-K of IBERIABANK Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: February 22, 2019	/s/ Daryl G. Byrd
	Daryl G. Byrd
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

SECTION 302 CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Anthony J. Restel, Senior Executive Vice President and Chief Financial Officer of IBERIABANK Corporation, certify that:

1. I have reviewed this annual report on Form 10-K of IBERIABANK Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: February 22, 2019	/s/ Anthony J. Restel
	Anthony J. Restel
	Vice Chairman and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of IBERIABANK Corporation (the “Company”) on Form 10-K for the fiscal year ended December 31, 2018 (the “Report”), I, Daryl G. Byrd, President and Chief Executive Officer of the Company, certify that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.

/s/ Daryl G. Byrd

Daryl G. Byrd

President and Chief Executive Officer

Date: February 22, 2019

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The information furnished herein shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of IBERIABANK Corporation (the “Company”) on Form 10-K for the fiscal year ended December 31, 2018 (the “Report”), I, Anthony J. Restel, Senior Executive Vice President and Chief Financial Officer of the Company, certify that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.

/s/ Anthony J. Restel

Anthony J. Restel

Vice Chairman and Chief Financial Officer

Date: February 22, 2019

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The information furnished herein shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Jan. 31, 2019	Jun. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	IBKC
Entity Registrant Name	IBERIABANK CORP
Entity Central Index Key	0000933141
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		54,923,492
Entity Public Float			$ 4,200,000,000

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 294,186	$ 319,156
Interest-bearing deposits in other banks	396,267	306,568
Total cash and cash equivalents	690,453	625,724
Securities available for sale, at fair value	4,783,579	4,590,062
Securities held to maturity (fair values of $204,277 and $227,964, respectively)	207,446	227,318
Mortgage loans held for sale, at fair value	107,734	134,916
Loans and leases, net of unearned income	22,519,815	20,078,181
Allowance for loan and lease losses	(140,571)	(140,891)
Loans and leases, net	22,379,244	19,937,290
Premises and equipment, net	300,507	331,413
Goodwill	1,235,533	1,188,902
Other intangible assets	88,736	88,562
Other assets	1,039,783	779,942
Total Assets	30,833,015	27,904,129
Deposits:
Non-interest-bearing	6,542,490	6,209,925
Interest-bearing	17,220,941	15,256,792
Total deposits	23,763,431	21,466,717
Short-term borrowings	1,482,882	991,297
Long-term debt	1,166,151	1,495,835
Other liabilities	364,274	253,489
Total Liabilities	26,776,738	24,207,338
Shareholders’ Equity
Preferred Stock, $1 par value - 5,000,000 shares authorized Non-cumulative perpetual, liquidation preference $10,000 per share; 13,750 and 13,750 shares issued and outstanding, respectively, including related surplus	132,097	132,097
Common stock, $1 par value - 100,000,000 shares authorized; 54,796,231 and 53,872,272 shares issued and outstanding, respectively	54,796	53,872
Additional paid-in capital	2,869,416	2,787,484
Retained earnings	1,042,718	769,226
Accumulated other comprehensive income (loss)	(42,750)	(45,888)
Total Shareholders’ Equity	4,056,277	3,696,791
Total Liabilities and Shareholders’ Equity	$ 30,833,015	$ 27,904,129

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Securities held to maturity, fair values	$ 204,277	$ 227,964
Preferred stock, par value (in usd per share)	$ 1	$ 1
Preferred stock, shares authorized	5,000,000	5,000,000
Liquidation preference (per share)	$ 10,000	$ 10,000
Preferred stock, shares issued	13,750	13,750
Preferred stock, shares outstanding	13,750	13,750
Common stock, par value (in usd per share)	$ 1	$ 1
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	54,796,231	53,872,272
Common stock, shares outstanding	54,796,231	53,872,272

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest and Dividend Income
Loans, including fees	$ 1,086,662	$ 802,947	$ 663,036
Mortgage loans held for sale, including fees	3,748	4,679	6,564
Investment securities:
Taxable interest	107,137	87,359	52,150
Tax-exempt interest	10,634	8,835	7,004
Amortization of FDIC loss share receivable	0	0	(16,023)
Other	13,448	9,963	4,208
Total interest and dividend income	1,221,629	913,783	716,939
Deposits:
NOW and MMDA	113,996	57,283	32,396
Savings	2,117	1,455	1,145
Time deposits	44,839	21,095	18,040
Short-term borrowings	14,682	7,557	2,452
Long-term debt	32,747	17,547	13,668
Total interest expense	208,381	104,937	67,701
Net interest income	1,013,248	808,846	649,238
Provision for credit losses	40,385	51,708	41,521
Net interest income after provision for credit losses	972,863	757,138	607,717
Non-interest Income
(Loss) gain on sale of available for sale securities	(49,900)	(148)	2,001
Other non-interest income	31,075	29,106	32,697
Total non-interest income	152,562	202,147	227,717
Non-interest Expense
Salaries and employee benefits	414,741	379,527	331,686
Net occupancy and equipment	77,246	70,663	65,797
Communication and delivery	15,951	14,252	12,383
Marketing and business development	18,371	13,999	12,332
Computer services expense	39,680	36,790	25,091
Professional services	28,698	48,545	19,153
Credit and other loan related expense	19,088	18,411	13,840
Insurance	25,274	21,815	17,270
(Gain) loss on early termination of FDIC loss share agreements	(2,708)	0	17,798
Travel and entertainment	10,035	11,287	8,481
Amortization of acquisition intangibles	21,678	12,590	8,415
Impairment of long-lived assets and other losses	27,780	12,246	6,111
Other non-interest expense	27,064	26,281	25,107
Total non-interest expense	722,898	666,406	563,464
Income before income tax expense	402,527	292,879	271,970
Income tax expense	32,278	150,466	85,193
Net Income	370,249	142,413	186,777
Less: Preferred stock dividends	9,095	9,095	7,977
Net Income Available to Common Shareholders	361,154	133,318	178,800
Less: Earnings Allocated to Unvested Restricted Stock	(3,583)	(1,210)	(1,872)
Earnings Allocated to Common Shareholders	$ 357,571	$ 132,108	$ 176,928
Earnings per common share - Basic (in usd per share)	$ 6.50	$ 2.61	$ 4.32
Earnings per common share - Diluted (in usd per share)	6.46	2.59	4.30
Cash dividends declared per common share (in usd per share)	$ 1.56	$ 1.46	$ 1.4
Comprehensive Income
Net income	$ 370,249	$ 142,413	$ 186,777
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the period (net of tax effects of $4,021, $6,244, and $12,261, respectively)	(40,895)	(11,596)	(22,771)
Less: Reclassification adjustment for gains (losses) included in net income (net of tax effects of $10,479, $52, and $700, respectively)	(39,421)	(96)	1,301
Unrealized gains (losses) on securities, net of tax	(1,474)	(11,500)	(24,072)
Fair value of derivative instruments designated as cash flow hedges:
Change in fair value of derivative instruments designated as cash flow hedges during the period (net of tax effects of $1,174, $329, and $231, respectively)	4,416	(611)	(328)
Less: Reclassification adjustment for gains (losses) included in net income (net of tax effects of $52, $210, and $27, respectively)	(196)	(390)	50
Fair value of derivative instruments designated as cash flow hedges, net of tax	4,612	(221)	(378)
Other comprehensive income (loss), net of tax	3,138	(11,721)	(24,450)
Comprehensive income	373,387	130,692	162,327
Mortgage income
Non-interest Income
Non-interest Income	46,424	63,570	83,853
Service charges on deposit accounts
Non-interest Income
Non-interest Income	52,803	47,678	44,135
Title revenue
Non-interest Income
Non-interest Income	24,149	21,972	22,213
Broker commissions
Non-interest Income
Non-interest Income	9,195	9,161	14,391
ATM/debit card fee income
Non-interest Income
Non-interest Income	10,295	10,199	10,008
Credit card and merchant-related income
Non-interest Income
Non-interest Income	12,540	10,904	11,245
Trust department income
Non-interest Income
Non-interest Income	$ 15,981	$ 9,705	$ 7,174

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Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Unrealized holding gains (losses), taxes	$ 10,870	$ 6,244	$ 12,261
Reclassification adjustment for gains included in net income , taxes	10,479	52	700
Change in fair value of derivative instruments designated as cash flow hedges, taxes	1,174	329	231
Reclassification adjustment for losses included in net income, taxes	$ 52	$ 210	$ 27

XML

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2015		8,000	41,139,537
Beginning balance at Dec. 31, 2015	$ 2,498,835	$ 76,812	$ 41,140	$ 1,797,982	$ 584,486	$ (1,585)
Increase (Decrease) in Shareholders' Equity
Net income	186,777				186,777
Other comprehensive income (loss)	(24,450)					(24,450)
Cash dividends declared	(58,895)				(58,895)
Preferred stock dividends	(7,977)				(7,977)
Common stock issued under incentive plans, net of shares surrendered in payment (in shares)			264,605
Common stock issued under incentive plans, net of shares surrendered in payment	8,020		$ 264	7,756
Common stock issued (in shares)			3,593,750
Common stock issued	279,242		$ 3,594	275,648
Preferred stock issued (in shares)		5,750
Preferred stock issued	55,285	$ 55,285		0
Common stock repurchases (in shares)			(202,506)
Common stock repurchases	(11,666)		$ (203)	(11,463)
Share-based compensation cost	14,523			14,523
Ending balance (in shares) at Dec. 31, 2016		13,750	44,795,386
Ending balance at Dec. 31, 2016	2,939,694	$ 132,097	$ 44,795	2,084,446	704,391	(26,035)
Increase (Decrease) in Shareholders' Equity
Net income	142,413				142,413
Other comprehensive income (loss)	(11,721)					(11,721)
Cash dividends declared	(76,615)				(76,615)
Reclassification of AOCI to RE due to TJCA	0				8,132	(8,132)
Preferred stock dividends	(9,095)				(9,095)
Common stock issued under incentive plans, net of shares surrendered in payment (in shares)			366,582
Common stock issued under incentive plans, net of shares surrendered in payment	(515)		$ 367	(882)
Common stock issued (in shares)			6,100,000
Common stock issued	485,151		$ 6,100	479,051
Common stock issued for acquisitions (in shares)			2,610,304
Common stock issued for acquisitions	211,043		$ 2,610	208,433
Share-based compensation cost	16,436			16,436
Ending balance (in shares) at Dec. 31, 2017		13,750	53,872,272
Ending balance at Dec. 31, 2017	3,696,791	$ 132,097	$ 53,872	2,787,484	769,226	(45,888)
Increase (Decrease) in Shareholders' Equity
Net income	370,249				370,249
Other comprehensive income (loss)	3,138					3,138
Cash dividends declared	(87,317)				(87,317)
Preferred stock dividends	(9,095)				(9,095)
Common stock issued under incentive plans, net of shares surrendered in payment (in shares)			108,686
Common stock issued under incentive plans, net of shares surrendered in payment	(3,226)		$ 109	(3,335)
Common stock issued for acquisitions (in shares)			2,787,773
Common stock issued for acquisitions	214,659		$ 2,788	211,871
Common stock repurchases (in shares)			(1,972,500)
Common stock repurchases	(148,855)		$ (1,973)	(146,882)
Share-based compensation cost	20,278			20,278
Ending balance (in shares) at Dec. 31, 2018		13,750	54,796,231
Ending balance at Dec. 31, 2018	$ 4,056,277	$ 132,097	$ 54,796	$ 2,869,416	$ 1,042,718	$ (42,750)

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash dividends declared per common share (in usd per share)	$ 1.56	$ 1.46	$ 1.4
Retained Earnings
Cash dividends declared per common share (in usd per share)	$ 1.56	$ 1.46	$ 1.40

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net income	$ 370,249	$ 142,413	$ 186,777
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion, including amortization of purchase accounting adjustments and market value adjustments	(7,534)	(4,113)	10,633
Provision for credit losses	40,385	51,708	41,521
Share-based compensation cost - equity awards	20,278	16,436	14,523
Loss (gain) on sale of OREO and long-lived assets, net of impairment	4,429	1,581	(3,298)
Loss (gain) on sale of available for sale securities	49,900	148	(2,001)
(Gain) loss on early termination of FDIC loss share agreements	(2,708)	0	17,798
Cash paid for early termination of FDIC loss share agreements	(5,637)	0	(6,502)
Deferred income tax expense (benefit)	153,518	71,257	(16,654)
Originations of mortgage loans held for sale	(1,469,847)	(1,844,358)	(2,460,033)
Proceeds from sales of mortgage loans held for sale	1,543,724	1,922,003	2,525,945
Realized and unrealized (gain) on mortgage loans held for sale, net	(45,338)	(62,438)	(74,486)
Other operating activities, net	(204,998)	(30,991)	73,865
Net Cash Provided by Operating Activities	446,421	263,646	308,088
Cash Flows from Investing Activities
Proceeds from sales of available for sale securities	1,035,482	682,349	197,733
Proceeds from maturities, prepayments and calls of available for sale securities	635,183	568,250	484,138
Purchases of available for sale securities, net of available for sale securities acquired	(1,959,952)	(1,475,008)	(1,384,525)
Proceeds from maturities, prepayments and calls of held to maturity securities	16,841	8,687	8,791
Purchases of held to maturity securities	0	(148,234)	0
Purchases of equity securities, net of equity securities acquired	(30,904)	(71,684)	(31,530)
Proceeds from sales of equity securities	88,200	21,532	0
Increase in loans, net of loans acquired	(949,953)	(976,488)	(704,025)
Proceeds from sale of premises and equipment	6,374	354	1,941
Purchases of premises and equipment, net of premises and equipment acquired	(13,730)	(37,763)	(12,840)
Proceeds from dispositions of OREO	15,810	25,624	33,236
Cash paid for additional investment in tax credit entities	(18,818)	(16,401)	(19,208)
Cash received (paid) for acquisition of a business, net of cash paid	99,318	(490,435)	0
Purchase of bank owned life insurance policies	(50,000)	0	(24,058)
Other investing activities, net	343	636	25,950
Net Cash Used in Investing Activities	(1,125,806)	(1,908,581)	(1,424,397)
Cash Flows from Financing Activities
Increase (decrease) in deposits, net of deposits acquired	1,232,603	(323,257)	1,230,008
Net change in short-term borrowings, net of borrowings acquired	491,585	(38,377)	182,518
Proceeds from long-term debt, net of long-term debt acquired	937,917	964,974	304,728
Repayments of long-term debt	(1,672,033)	(97,259)	(15,025)
Cash dividends paid on common stock	(84,782)	(72,772)	(56,793)
Cash dividends paid on preferred stock	(9,095)	(9,095)	(7,028)
Proceeds (Payments) for Stock Transactions Related to Treasury Stock Purchased and Stock Options Exercised	(3,226)	(832)	6,899
Payments to repurchase common stock	(148,855)	0	(11,666)
Net proceeds from issuance of common stock	0	485,151	279,242
Net proceeds from issuance of preferred stock	0	0	55,285
Net Cash Provided by Financing Activities	744,114	908,533	1,968,168
Net Increase (Decrease) In Cash and Cash Equivalents	64,729	(736,402)	851,859
Cash and Cash Equivalents at Beginning of Period	625,724	1,362,126	510,267
Cash and Cash Equivalents at End of Period	690,453	625,724	1,362,126
Supplemental Schedule of Non-cash Activities
Acquisition of real estate in settlement of loans	12,557	18,170	9,743
Common stock issued in acquisitions	214,659	211,043	0
Cash paid for:
Interest on deposits and borrowings, net of acquired	198,905	102,558	70,084
Income taxes, net	$ 34,313	$ 77,034	$ 79,784

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL

IBERIABANK Corporation is a financial holding company with locations in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services. The accompanying consolidated financial statements have been prepared in accordance with GAAP and practices generally accepted in the banking industry. The consolidated financial statements include the accounts of the Company and its subsidiaries.

When we refer to the “Company,” “we,” “our,” or “us” in this Report, we mean IBERIABANK Corporation and subsidiaries (consolidated). When we refer to the “Parent,” we mean IBERIABANK Corporation. See the Glossary of Defined Terms of this Report for terms used throughout this Report.

Reclassification

Certain amounts reported in prior periods have been reclassified to conform to the current period presentation. These reclassifications did not have a material effect on previously reported consolidated financial statements.

PRINCIPLES OF CONSOLIDATION

All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s consolidated financial statements include all entities in which the Company has a controlling financial interest under either the voting interest or variable interest model. The assessment of whether or not the Company has a controlling interest (i.e., the primary beneficiary) in a variable interest entity (VIE) is performed on an on-going basis. All equity investments in non-consolidated VIEs are included in "other assets" in the Company’s consolidated balance sheets. The Company’s maximum exposure to loss as a result of its involvement with non-consolidated VIEs was approximately $230.2 million and $160.2 million at December 31, 2018 and 2017, respectively.  The Company's maximum exposure to loss was equivalent to the carrying value of its investments and any related outstanding loans to the non-consolidated VIEs.

Investments in entities that are not consolidated are accounted for under either the equity, fair value, or proportional amortization method of accounting. Prior to January 1, 2018, investments in entities that were not consolidated were accounted for under either the equity, cost, or proportional amortization method of accounting. Investments for which the Company has the ability to exercise significant influence over the operating and financing decisions of the entity are accounted for under the equity method. Investments for which the Company does not hold such ability are accounted for at cost less impairment plus or minus changes resulting from observable price changes, which approximates fair value. Prior to January 1, 2018, investments for which the Company did not hold such ability were accounted for under the cost method. Investments in qualified affordable housing projects, which meet certain criteria, are accounted for under the proportional amortization method.

USE OF ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are susceptible to significant change in the near term are the accounting for acquired impaired loans, the allowance for credit losses, the valuation of goodwill and other intangible assets, and income taxes.

CONCENTRATION OF CREDIT RISKS

Most of the Company’s business activity is with customers located in the southeastern United States. The Company’s lending activity is concentrated in its market areas within those states. The Company has emphasized originations of commercial loans and private banking loans, defined as loans to higher net worth clients. Repayments on loans are expected to come from cash flows of the borrower and/or guarantor. Losses on secured loans are limited by the net realizable value of the collateral upon default of the borrowers and guarantor support. The Company believes it does not have any excessive concentrations to any one industry, loan type, or customer.

BUSINESS COMBINATIONS

Assets and liabilities acquired in business combinations are recorded at their acquisition date fair values. The Company generally records provisional amounts at the time of acquisition based on the information available to the Company. The provisional estimates of fair values may be adjusted for a period of up to one year (“measurement period”) from the date of acquisition if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Adjustments recorded during the measurement period are recognized in the current reporting period.

Loans generally represent a significant portion of the assets acquired in the Company’s business acquisitions. If the Company discovers that it has materially underestimated the credit losses expected in the loan portfolio based on information available at the acquisition date within the measurement period, it will reduce or eliminate the gain and/or increase goodwill recorded on the acquisition in the period the adjustment is recorded. If the Company determines that losses arose subsequent to the acquisition date, such losses are reflected as a provision for credit losses.

CASH AND CASH EQUIVALENTS

For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as cash on hand, interest-bearing deposits, and non-interest-bearing demand deposits at other financial institutions with original maturities less than three months. IBERIABANK may be required to maintain average cash balances on hand or with the Federal Reserve Bank to meet regulatory reserve and clearing requirements. At December 31, 2018 and 2017, IBERIABANK had sufficient cash deposited with the Federal Reserve Bank to cover the required reserve balance.

INVESTMENT SECURITIES

Management determines the appropriate accounting classification of debt and equity securities at the time of acquisition and re-evaluates such designations at least quarterly. Debt securities that management has the ability and intent to hold to maturity are classified as HTM and carried at cost, adjusted for amortization of premiums and accretion of discounts using methods approximating the interest method. Securities acquired with the intention of recognizing short-term profits or which are actively bought and sold are classified as trading securities and reported at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as HTM or trading are classified as AFS and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in OCI. Prior to January 1, 2018, equity securities with readily determinable fair values were also classified as AFS and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in OCI. Credit-related declines in the fair value of debt securities that are considered OTTI are recorded in earnings. Prior to January 1, 2018, credit-related declines in the fair value of marketable equity securities that were considered OTTI were recorded in earnings.

The Company evaluates its investment securities portfolio on a quarterly basis for indicators of OTTI. Declines in the fair value of individual HTM and AFS securities below their amortized cost basis are reviewed to determine whether the declines are other than temporary. In estimating OTTI losses, management considers 1) the length of time and the extent to which the fair value has been less than the amortized cost basis, 2) the financial condition and near-term prospects of the issuer, 3) its intent to sell and whether it is more likely than not that the Company would be required to sell those securities before the anticipated recovery of the amortized cost basis, and 4) for debt securities, the recovery of contractual principal and interest.

For securities that the Company does not expect to sell, or it is not more likely than not it will be required to sell prior to recovery of its amortized cost basis, the credit component of an OTTI is recognized in earnings and the non-credit component is recognized in OCI. For securities that the Company does expect to sell, or it is more likely than not that it will be required to sell prior to recovery of its amortized cost basis, both the credit and non-credit component of an OTTI are recognized in earnings. Subsequent to recognition of OTTI, an increase in expected cash flows is recognized as a yield adjustment over the remaining expected life of the security based on an evaluation of the nature of the increase.

Other equity securities primarily consist of stock acquired for regulatory purposes, such as Federal Home Loan Bank stock and Federal Reserve Bank stock and are included in “other assets."

Gains or losses on securities sold are recorded on the trade date, using the specific identification method.

LOANS HELD FOR SALE

Loans and loan commitments which the Company does not have the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as loans held for sale at the time of origination or acquisition. Subsequent to origination or acquisition, if the Company no longer has the intent or ability to hold a loan for the foreseeable future, generally a decision has been made to sell the loan and it is classified within loans held for sale. Unless the fair value option has been elected at origination or acquisition, loans classified as held for sale are carried at the lower of cost or fair value. Amortization/accretion of remaining unamortized net deferred loan fees or costs and discounts or premiums (if applicable) ceases when a loan is classified as held for sale.

Loans held for sale primarily consist of fixed rate single-family residential mortgage loans originated and committed to be sold in the secondary market. Mortgage loans originated and held for sale are recorded at fair value under the fair value option, unless otherwise noted. For mortgage loans for which the Company has elected the fair value option, gains and losses are included in mortgage income. For any other loans held for sale, net unrealized losses, if any, are recognized through a valuation allowance that is recorded as a charge to non-interest income. See Note 19 for further discussion of the determination of fair value for loans held for sale. In most cases, loans in this category are sold within thirty days and are generally sold with the mortgage servicing rights released. Buyers generally have recourse to return a purchased loan or request reimbursement for the loan premium or consideration transferred for servicing rights under limited circumstances. Recourse conditions may include prepayment, payment default, breach of representations or warranties, and documentation deficiencies. During 2018 and 2017, an insignificant number of loans were returned to the Company. At December 31, 2018 and 2017, the recorded repurchase liability associated with transferred loans was not material.

LOANS

Legacy (Loans originated or renewed and underwritten by the Company)

The Company originates mortgage, commercial, and consumer loans for customers. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the unpaid principal balances, less the ALL, charge-offs, and unamortized net loan origination fees and direct costs, except for loans carried at fair value. Interest income is accrued as earned over the term of the loans based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield.

Acquired (Loans acquired through Business Combinations)

Acquired loans are recorded at fair value on the acquisition date. Credit risk assumptions and any resulting credit discounts are included in the determination of fair value. Therefore, an ALL is not recorded at the acquisition date. The determination of fair value includes estimates related to discount rates, expected prepayments, and the amount and timing of undiscounted expected principal, interest, and other cash flows.

All acquired loans are evaluated for impairment at the time of acquisition. At the time of acquisition, acquired loans that reflect credit deterioration since origination to the extent that it is probable that the Company will be unable to collect all contractually required payments are classified as purchased impaired loans (“acquired impaired loans”). All other acquired loans are classified as purchased non-impaired loans (“acquired non-impaired loans”).

At the time of acquisition, acquired impaired loans are accounted for individually or aggregated into loan pools with similar characteristics, which include:

• whether the loan is performing according to contractual terms at the time of acquisition,

• the loan type based on regulatory reporting guidelines, primarily whether the loan was a mortgage, consumer, or commercial loan,

• the nature of the collateral,

• the interest rate type, whether fixed or variable rate, and

• the loan payment type, primarily whether the loan is amortizing or interest-only.

From these pools, the Company uses certain loan information, including outstanding principal balance, estimated expected losses, weighted average maturity, weighted average term to re-price for a variable rate loan, weighted average margin and weighted average interest rate to estimate the expected cash flows for each loan pool.

For acquired impaired loans, expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of future cash flows is reasonably estimable. For acquired non-impaired loans, the difference between the fair value and unpaid principal balance of the loan at acquisition, referred to as a purchase premium or discount, is amortized or accreted to income over the estimated life of the loans as an adjustment to yield.

Subsequent to acquisition, the Company performs cash flow re-estimations at least quarterly for each acquired impaired loan or loan pool. Increases in estimated cash flows above those expected at the time of acquisition are recognized on a prospective basis as interest income over the remaining life of the loan and/or pool. Decreases in expected cash flows subsequent to acquisition generally result in recognition of a provision for credit loss. The measurement of cash flows involves several assumptions and judgments, including prepayments, default rates and loss severity among other factors. All of these factors are inherently subjective and significant changes in the cash flow estimations can result over the life of the loan.

Classification

The Company’s loan portfolio is disaggregated into portfolio segments for purposes of determining the ACL. The Company’s portfolio segments include commercial, residential mortgage, and consumer and other loans, bifurcated between legacy and acquired non-impaired loans. The Company further disaggregates each commercial, residential mortgage, and consumer and other loans portfolio segment into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial loan portfolio segment include commercial real estate-construction, commercial real estate-owner-occupied, commercial real estate-non-owner occupied, and commercial and industrial. Classes within the consumer and other loans portfolio segment include home equity, indirect automobile, credit card and other.

Troubled Debt Restructurings

The Company periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and minimize risk of loss. These concessions may include restructuring the terms of a loan to alleviate the burden of the customer’s near-term cash requirements. In order to be classified as a TDR, the Company must conclude that the restructuring constitutes a concession and the customer is experiencing financial difficulties. The Company defines a concession to the customer as a modification of existing terms for economic or legal reasons that it would otherwise not consider. The concession is either granted through an agreement with the customer or is imposed by a court of law. Concessions include modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to:

• a reduction of the stated interest rate for the remaining original life of the loan,

• extension of the maturity date or dates at a stated interest rate lower than the current market rate for new loans with similar risk characteristics,

• reduction of the face amount or maturity amount of the loan as stated in the agreement, or

• reduction of accrued interest receivable on the loan.

In its determination of whether the customer is experiencing financial difficulties, the Company considers numerous indicators, including, but not limited to:

• whether the customer is currently in default on its existing loan(s), or is in an economic position where it is probable the customer will be in default on its loan(s) in the foreseeable future without a modification,

• whether the customer has declared or is in the process of declaring bankruptcy,

• whether there is substantial doubt about the customer’s ability to continue as a going concern,

• whether, based on its projections of the customer’s current capabilities, the Company believes the customer’s future cash flows will be insufficient to service the loan, including interest, in accordance with the contractual terms of the existing agreement for the foreseeable future, and

• whether the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for a similar loan for a non-troubled debtor.

If the Company concludes that both a concession has been granted and the customer is experiencing financial difficulties, the Company identifies the loan as a TDR. All TDRs are considered impaired loans.

Non-accrual and Past Due Loans (Including Loan Charge-offs)

Loans are generally considered past due when contractual payments of principal and interest have not been received within

30 days from the contractual due date. Residential mortgage loans are considered past due when contractual payments have not been received for two consecutive payment dates.

Legacy and acquired non-impaired loans are placed on non-accrual status when any of the following occur: 1) the loan is maintained on a cash basis because of deterioration in the financial condition of the borrower; 2) collection of the full contractual amount of principal and interest is not expected even if the loan is currently paying as agreed;  or 3) when principal or interest has been in default for a period of 90 days or more, unless the loan is both well-secured and in the process of collection. Factors considered in determining the collection of the full contractual amount of principal and interest include assessment of the borrower’s cash flow, valuation of underlying collateral, and the ability and willingness of guarantors to provide credit support.  Certain commercial loans are also placed on non-accrual status when payment is not past due and full payment of principal and interest is expected, but the Company has doubt about the borrower’s ability to comply with existing repayment terms. Consideration will be given to placing a loan on non-accrual due to the deterioration of the debtor’s repayment ability, the repayment of the loan becoming dependent on the liquidation of collateral, an existing collateral deficiency, the loan being classified as "Doubtful" or "Loss," the client filing for bankruptcy, and/or foreclosure being initiated. Regarding all classes within the C&I and CRE portfolios, the determination of a borrower’s ability to make the required principal and interest payments is based on an examination of the borrower’s current financial statements, industry, management capabilities, and other qualitative factors.

Acquired impaired loans are placed on non-accrual status when the Company cannot reasonably estimate cash flows on a loan or loan pool. Legacy and acquired non-impaired loans are evaluated for potential charge-off in accordance with the parameters discussed in the following paragraph or when the loan is placed on non-accrual status, whichever is earlier.

Loans within the commercial portfolio (except for acquired impaired loans) are generally evaluated for charge-off at

90 days past due, unless both well-secured and in the process of collection. Closed and open-end residential mortgage and consumer loans (except for acquired impaired loans) are evaluated for charge-off no later than 120 days past due. Any outstanding loan balance in excess of the fair value of the collateral less costs to sell is charged-off no later than 120 days days past due for loans secured by real estate. For non-real estate secured loans, in lieu of charging off the entire loan balance, loans may be written down to the fair value of the collateral less costs to sell if repossession of collateral is assured and in process.

The accrual of interest, as well as the amortization/accretion of any remaining unamortized net deferred fees or costs and discount or premium, is discontinued at the time the loan is placed on non-accrual status. All accrued but uncollected interest for loans that are placed on non-accrual status is reversed through interest income. Cash receipts received on non-accrual loans are generally applied against principal until the loan has been collected in full, after which time any additional cash receipts are recognized as interest income (i.e., cost recovery method). However, interest may be accounted for under the cash-basis method as long as the remaining recorded investment in the loan is deemed fully collectible.

Loans are returned to accrual status when the borrower has demonstrated a capacity to continue payment of the debt (generally a minimum of six months of sustained repayment performance) and collection of contractually required principal and interest associated with the debt is reasonably assured. Additionally, for a non-accrual TDR to be returned to accrual status, a current, well-documented credit analysis is required and the borrower must have complied with all terms of the modification. At such time, the accrual of interest and amortization/accretion of any remaining unamortized net deferred fees or costs and discount or premium shall resume. Any interest income which was applied to the principal balance shall not be reversed and subsequently will be recognized as an adjustment to yield over the remaining life of the loan.

Impaired Loans

For all classes within the commercial portfolio, all loans with an outstanding commitment balance above a specific threshold are evaluated on a quarterly basis for potential impairment. Generally, residential mortgage and consumer loans within any class are not individually evaluated on a regular basis for impairment. All TDRs, regardless of the outstanding balance amount or portfolio classification, and all acquired impaired loans are considered to be impaired.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the likelihood of collecting scheduled principal and interest payments when contractually due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Impairment losses are measured on a loan-by-loan basis for commercial and certain residential mortgage or consumer loans, based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral-dependent. This measurement requires significant judgment and use of estimates, and the actual loss ultimately recognized by the Company may differ significantly from the estimates.

ALLOWANCE FOR CREDIT LOSSES

The Company maintains the ACL at a level that management believes appropriate to absorb estimated probable credit losses incurred in the loan portfolios, including unfunded commitments, as of the consolidated balance sheet date. The ACL consists of the allowance for loan losses (contra asset) and the reserve for unfunded commitments (liability). The manner in which the ACL is determined is based on 1) the accounting method applied to the underlying loans and 2) whether the loan is required to be measured for impairment. The Company delineates between loans accounted for under the contractual yield method, legacy and acquired non-impaired loans, and acquired impaired loans. Further, for legacy and acquired non-impaired loans, the Company attributes portions of the ACL to loans and loan commitments that it measures individually, and groups of homogeneous loans and loan commitments that it measures collectively for impairment.

Determination of the appropriate ACL involves a high degree of complexity and requires significant judgment regarding the credit quality of the loan portfolio. Several factors are taken into consideration in the determination of the overall ACL, including a qualitative component. These factors include, but are not limited to, the overall risk profiles of the loan portfolios, net charge-off experience, the extent of impaired loans, the level of non-accrual loans, the level of 90 days past due loans, the value of collateral, the ability to monetize guarantor support, and the overall percentage level of the allowance relative to the loan portfolio, amongst other factors. The Company also considers overall asset quality trends, changes in lending practices and procedures, trends in the nature and volume of the loan portfolio, including the existence and effect of any portfolio concentrations, changes in experience and depth of lending staff, the Company’s legal, regulatory and competitive environment, national and regional economic trends, data availability and applicability that might impact the portfolio or the manner in which it estimates losses, and risk rating accuracy and risk identification.

The allowance for loan losses for all impaired loans (excluding acquired impaired loans) is determined on an individual loan basis, considering the facts and circumstances specific to each borrower. The allowance is based on the difference between the recorded investment in the loan and generally either the estimated net present value of projected cash flows or the estimated value of the collateral associated with a collateral-dependent loan. 

The allowance for loan losses for all non-impaired loans (excluding acquired impaired loans) is calculated based on pools of loans with similar characteristics. The pool-level allowance is calculated through the application of PD (i.e., probability of default) and LGD (i.e., loss given default) factors for each individual loan. PDs and LGDs are determined based on historical default and loss information for similar loans. For purposes of establishing estimated loss percentages for pools of loans that share common risk characteristics, the Company’s loan portfolio is segmented by various loan characteristics including loan type, risk rating for commercial, Vantage or FICO score for residential mortgage and consumer, past due status for residential mortgage and consumer and call report code. The default and loss information is measured over an appropriate period for each loan pool and adjusted as deemed appropriate. Qualitative adjustments are incorporated into the pool-level analysis to accommodate for the imprecision of certain assumptions and uncertainties inherent in the calculation. 

See the "Loans" section of this footnote for discussion of the determination of the ACL for acquired impaired loans.

Certain inherent, but unconfirmed losses are probable within the loan portfolio. The Company’s current methodology for determining the level of inherent losses is based on historical loss rates, current credit grades, specific allocation, and other qualitative adjustments. In a stable or deteriorating credit environment, heavy reliance on historical loss rates and the credit grade rating process results in model-derived reserves that tend to slightly lag behind portfolio deterioration. Similar lags can occur in an improving credit environment whereby required reserves can lag slightly behind portfolio improvement. Given these and other model limitations, qualitative adjustment factors may be incremental or decremental to the quantitative model results.

The reserve for unfunded commitments is determined using similar methodologies described above for non-impaired loans. The loss factors used in the reserve for unfunded commitments are equivalent to the loss factors used in the allowance for loan losses, while also considering utilization of unused commitments.

PREMISES AND EQUIPMENT

Land is carried at cost. Buildings, furniture, fixtures, and equipment are carried at cost, less accumulated depreciation computed on a straight-line basis over the estimated useful lives of 10 to 40 years for buildings and related improvements and generally 3 to 20 years for furniture, fixtures, and equipment. Leasehold improvements are amortized over the lease term, including any renewal periods that are reasonably assured, or the asset’s useful life, whichever is shorter. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but is assessed for potential impairment at a reporting unit level on an annual basis, as of October 1^st, or whenever events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than its respective carrying amount. For the annual October 1, 2018 impairment evaluation, management elected to bypass the qualitative assessment for each respective reporting unit (IBERIABANK, Mortgage, and LTC) and performed Step 1 of the goodwill impairment test. Step 1 of the goodwill impairment test requires the Company to compare the fair value of each reporting unit with its carrying amount, including goodwill. Accordingly, the Company determined the fair value of each reporting unit and compared the fair value to each respective reporting unit’s carrying amount. The Company determined that none of the reporting units’ fair values were below their respective carrying amounts. The Company concluded goodwill was not impaired as of October 1, 2018. Further, no events or changes in circumstances between October 1, 2018 and December 31, 2018 indicated that it was more likely than not the fair value of any reporting unit had been reduced below its carrying value.

Based on the testing performed in 2018 and 2017, management concluded that for the IBERIABANK, Mortgage, and LTC reporting units, goodwill was not impaired at any time during those periods.

Title Plant

Costs incurred to construct a title plant, including the costs incurred to obtain, organize, and summarize historical information, are capitalized until the title plant can be used to perform title searches. A purchased title plant, including a purchased undivided interest in a title plant, is recorded at cost at the date of acquisition. For a title plant acquired separately or as part of a business acquisition, cost is measured as the fair value of the consideration paid. Capitalized costs of a title plant are not depreciated or charged to income unless circumstances indicate that the carrying amount of the title plant has been impaired. Impairment indicators include a change in legal requirements or statutory practices, identification of obsolescence, or abandonment of the title plant, among other indicators.

Capitalized storage and retrieval costs (e.g., costs to convert from one storage retrieval system to another or to modernize the storage and retrieval systems) incurred after a title plant is operational are charged to expense in a systematic and rational manner. Title plant is recorded within "other assets" on the Company’s consolidated balance sheets.

Intangible assets subject to amortization

The Company’s acquired intangible assets that are subject to amortization primarily include core deposit intangibles, which are amortized on a straight-line or accelerated basis, and a customer relationship intangible asset, which is amortized on an accelerated basis, over average lives not to exceed 10 years. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is identified if the sum of the undiscounted estimated future cash flows is less than the carrying value of the asset.Intangible assets are recorded within "other assets" on the Company’s consolidated balance sheets.

OTHER REAL ESTATE OWNED

Other real estate owned includes all real estate, other than bank premises used in bank operations, owned or controlled by the Company, including real estate acquired in settlement of loans. Properties are initially recognized at the lower of the recorded investment in the loan or its estimated fair value less costs to sell, generally when the Company has received physical possession. The amount by which the recorded investment of the loan exceeds the fair value less costs to sell of the property is charged to the ALL. Subsequent to foreclosure, the assets are carried at the lower of cost or fair value less costs to sell. Former bank properties transferred to OREO are recorded at the lower of cost or market. Subsequent declines in the fair value of other real estate are recorded as adjustments to the carrying amount through a valuation allowance. Revenue and expenses from operations, gain or loss on sale, and changes in the valuation allowance are included in net expenses from foreclosed assets. OREO is recorded within "other assets" on the Company’s consolidated balance sheets.

DERIVATIVE FINANCIAL INSTRUMENTS

The Company enters into various derivative financial instruments to manage interest rate risk, asset sensitivity and other exposures such as liquidity and credit risk, as well as to facilitate customer transactions. The primary types of derivatives utilized by the Company for its risk management strategies include interest rate swap agreements, interest rate collars, interest rate floors, foreign exchange contracts, interest rate lock commitments, forward sales commitments, written and purchased options, and credit derivatives. All derivative instruments are recognized on the consolidated balance sheets as "other assets" or "other liabilities" at fair value, regardless of whether a right of offset exists. Changes in the fair value of a derivative instrument are recorded based on whether it has been designated and qualifies as part of a hedging relationship.

Interest rate swap and foreign exchange contracts are entered into by the Company to allow its commercial customers to manage their exposure to market rate fluctuations. To mitigate the Company's exposure to the rate risk associated with customer contracts, offsetting derivative positions are entered into with reputable counterparties. The Company manages its credit risk, or potential risk of default, from the customer contracts through credit limit approval and monitoring procedures. These contracts are not designated for hedge accounting (i.e., treated as economic hedges).

Derivatives Designated in Hedging Relationships

For cash flow hedges, the effective and ineffective portions of the gain or loss related to the derivative instrument is initially reported as a component of OCI and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. Prior to January 1, 2018, the ineffective portion of the gain or loss, if any, was reported in earnings immediately in either "other income" or "other expense," respectively. In applying hedge accounting for derivatives, the Company establishes and documents a method for assessing the effectiveness of the hedging derivative and a measurement approach for determining the ineffective aspect of the hedge upon the inception of the hedge. The Company has designated interest rate swaps in a cash flow hedge to convert forecasted variable interest payments to a fixed rate on its junior subordinated debt. The Company has also designated interest rate collars and interest rate floors in a cash flow hedge to reduce the risk of fluctuations in interest rates and thereby reduce the Company’s exposure to variability in cash flows from variable-rate loans. The Company has concluded that the forecasted transactions are probable of occurring.

Derivatives Not Designated in Hedging Relationships

For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately.

Common Types of Derivatives

• Interest rate swap agreements Interest rate swaps are agreements to exchange interest payments based upon notional amounts. The exchange of payments typically involves paying a fixed rate and receiving a variable rate or vice versa. The Company primarily utilizes these instruments, which the Company designates as cash flow hedges, to manage interest rate risk by converting a portion of its variable-rate loans or debt to a fixed rate.

• Interest rate collars Interest rate collars are agreements that create a range within which interest rates can fluctuate. The interest rate collar protects against significant decreases in interest rates but limits the benefits when interest rates increase. These instruments are designated as cash flow hedges and are used by the Company to manage interest rate risk by reducing the variability in cash flows that can occur with variable-rate loans.

• Interest rate floors Interest rate floors are agreements that protect against significant decreases in interest rates if interest rates fall below a specified level over an agreed period of time. These instruments are designated as cash flow hedges and are used by the Company to manage interest rate risk by reducing the variability in cash flows that can occur with variable-rate loans.

• Interest rate lock commitments The Company enters into commitments to originate mortgage loans intended for sale whereby the interest rate on the prospective loan is determined prior to funding (“rate lock”). A rate lock is provided to a borrower, subject to conditional performance obligations, for a specified period of time that typically does not exceed 60 days. Rate lock commitments on mortgage loans that are intended to be sold are recognized as derivatives. Accordingly, such commitments are recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage income on the consolidated statements of comprehensive income.

• Forward sales commitments The Company uses forward sales commitments to protect the value of its rate locks and mortgage loans held for sale from changes in interest rates and pricing between the origination of the rate lock and sale of these loans, as changes in interest rates have the potential to cause a decline in value of rate locks and mortgage loans included in the held for sale portfolio. These commitments are recognized as derivatives and recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage income on the consolidated statements of comprehensive income.

• Equity-indexed certificates of depositIBERIABANK offers its customers a certificate of deposit that provides the purchaser a guaranteed return of principal at maturity plus a potential return, which allows IBERIABANK to identify a known cost of funds. The rate of return is based on the performance of a group of publicly traded stocks that represent a variety of industry segments. Because it is based on an equity index, the rate of return represents an embedded derivative that is not clearly and closely related to the host instrument and is to be accounted for separately. Accordingly, the certificate of deposit is separated into two components: a zero coupon certificate of deposit (the host instrument) and a written option purchased by the depositor (an embedded derivative). The discount on the zero coupon deposit is amortized over the life of the deposit, and the written option is carried at fair value on the Company’s consolidated balance sheets, with changes in fair value recorded through earnings. IBERIABANK offsets the risks of the written option by purchasing an option with terms that mirror the written option, which is also carried at fair value on the Company’s consolidated balance sheets.

OFF-BALANCE SHEET CREDIT-RELATED FINANCIAL INSTRUMENTS

In the ordinary course of business, the Company executes various commitments to extend credit, including commitments under commercial construction arrangements, commercial and home equity lines of credit, credit card arrangements, commercial letters of credit, and standby letters of credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed. Such financial instruments are recorded on the funding date. At December 31, 2018 and 2017, the fair value of guarantees under commercial and standby letters of credit was not material.

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets, or portions thereof which meet the definition of a participating interest, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when 1) the assets have been legally isolated from the Company, 2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and 3) the Company does not maintain effective control over the transferred assets. If the transfer does not satisfy all three criteria, the transaction is recorded as a secured borrowing.

If the transfer is accounted for as a sale, the transferred assets are derecognized from the Company’s balance sheet and a gain or loss on sale is recognized. If the transfer is accounted for as a secured borrowing, the transferred assets remain on the Company’s balance sheet and the proceeds from the transaction are recognized as a liability.

Servicing Rights

The Company recognizes the rights to service mortgage and other loans as separate assets, which are recorded in "other assets" in the consolidated balance sheets, when purchased or when servicing is contractually separated from the underlying loans by sale with servicing rights retained.

For loan sales with servicing retained, a servicing right, generally an asset, is recorded at fair value at the time of sale for the right to service the loans sold. All servicing rights are identified by class and amortized over the remaining service life of the loan.

INCOME TAXES

The Company and all subsidiaries file a consolidated Federal income tax return on a calendar year basis. The Company files income tax returns in the U.S. Federal jurisdiction and various state and local jurisdictions through IBERIABANK Corporation (Parent), IBERIABANK, and their respective subsidiaries. In lieu of Louisiana state income tax, IBERIABANK is subject to the Louisiana bank shares tax, portions of which are included in both "non-interest expense" and "income tax expense" in the Company’s consolidated statements of comprehensive income. With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations for years before 2014.

Deferred income tax assets and liabilities are determined using the liability or balance sheet method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in "non-interest expense."

Investments in qualified affordable housing projects that meet certain criteria are accounted for under the proportional amortization method. Under this method, the expense associated with the investments is recognized in income tax expense rather than non-interest expense. The Company has also elected to utilize the deferral method for investments that generate investment tax credits. Under this approach, the investment tax credits are recognized as a reduction of the related asset rather than income tax expense.

SHARE-BASED COMPENSATION PLANS

The Company issues stock options, restricted stock awards, restricted share units, and phantom stock awards under various plans to directors, officers, and other key employees. Compensation cost for all awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period, taking into account retirement eligibility. The majority of the Company's share-based awards qualify for equity accounting and contain service conditions. The fair value of awards is measured at the grant date and not subsequently remeasured. The Company accounts for share-based forfeitures as they occur.

For awards that contain a market condition, the Company includes the market condition in the determination of the grant date fair value of the award. Compensation cost for an award with a market condition is recognized regardless of whether the market condition is satisfied, assuming the requisite service is met. The Company does not include performance conditions in the determination of the grant date fair value of the award. Compensation cost for an award with a performance condition is not recognized if the performance condition is not satisfied. Phantom stock awards are accounted for as liability awards and are remeasured at each reporting period based on their fair value until the date of settlement. Compensation cost for each reporting period until settlement is based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered at the reporting date) in the fair value of the phantom stock award for each reporting period.

Compensation expense relating to share-based awards is recognized in net income as part of “salaries and employee benefits” on the consolidated statements of comprehensive income for employees and “professional services” for non-employee directors. The exercise price for the options granted by the Company is not less than the fair market value of the underlying stock at the grant date.

EARNINGS PER COMMON SHARE

Basic earnings per share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares, in the form of stock options or restricted stock units, had been issued, as well as any adjustment to income that would result from the assumed issuance. Participating common shares issued by the Company relate to unvested outstanding restricted stock awards, the earnings allocated to which are used in determining income available to common shareholders under the two-class method. The two-class method allocates earnings for the period between common shareholders and other participating securities holders. The participating awards receiving dividends are allocated the same percentage of income as if they were outstanding shares.

SHARE REPURCHASES

The Company classifies repurchased shares as a reduction to issued shares of common stock and adjusts the stated value of common stock and paid-in-capital.

COMPREHENSIVE INCOME

Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and cash flow hedges, are reported as a separate component of the shareholders’ equity section of the consolidated balance sheets, such items along with net income are components of comprehensive income.

FAIR VALUE MEASUREMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company estimates fair value based on the assumptions market participants would use when selling an asset or transferring a liability and characterizes such measurements within the fair value hierarchy based on the inputs used to develop those assumptions and measure fair value. The hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

Following is a description of the valuation methodologies used for financial instruments measured at fair value, as well as the classification of such instruments within the valuation hierarchy. The descriptions below are exclusive of assets or liabilities acquired in business combinations, as all such instruments are required to initially be measured at fair value.

• Cash and cash equivalents The carrying amounts of cash and cash equivalents approximate their fair value and are classified within Level 1 of the fair value hierarchy.

• Investment securities Securities are classified within Level 1 where quoted market prices are available in an active market. If quoted market prices are unavailable, fair value is estimated using quoted prices of securities with similar characteristics and the securities are classified within Level 2 of the fair value hierarchy.

• Mortgage loans held for sale Mortgage loans originated and held for sale are recorded at fair value under the fair value option, unless otherwise noted. When determining the fair value of loans held for sale, the Company obtains quotes or bids on these loans directly from the purchasing financial institutions. Mortgage loans held for sale are classified within Level 2 of the fair value hierarchy.

• Mortgage loans held for investment at fair value option The fair value of mortgage loans held for investment at fair value option is determined by a third party using a discounted cash flow model using various assumptions about future loan performance and market discount rates. Mortgage loans held for investment at fair value option are classified within Level 3 of the fair value hierarchy.

• Loans The fair values of mortgage loans are estimated using an exit price methodology that is based on present values using interest rate that would be charged for a similar loan to a borrower with similar risk at December 31, 2018, weighted for varying maturity dates and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. At December 31, 2017, the fair value of mortgage loans was estimated using an entry value methodology.

Other loans and leases are valued based on present values using the interest rate that would be charged for a similar instrument to a borrower with similar risk at December 31, 2018, applicable to each category of instruments, and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. At December 31, 2017, the fair value of other loans and leases was estimated using an entry value methodology.

At December 31, 2018 and 2017, mortgage and other loans and leases are classified within Level 3 of the fair value hierarchy.

• Impaired loans Fair value measurements for impaired loans are determined using either a present value of expected future cash flows discounted using the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral-dependent (Level 3 of the fair value hierarchy). Fair value of the collateral is determined by appraisals or independent valuation less costs to sell. Impaired loans for which the fair value of the collateral is higher than the recorded investment in the loan are not adjusted to fair value and therefore not recorded in the Company’s non-recurring fair value measurements section of the Fair Value Measurements footnote.

• Other real estate owned Fair values of OREO are determined by sales agreement or appraisal and costs to sell are based on estimation per the terms and conditions of the sales agreement or amounts commonly used in real estate transactions. Inputs include appraisal values on the properties or recent sales activity for similar assets in the property’s market. Updated appraisals are obtained on at least an annual basis. OREO measured at fair value is classified within Level 3 of the fair value hierarchy.

• Derivative financial instruments Fair values of interest rate swaps, interest rate locks, interest rate collars, interest rate floors, foreign exchange contracts, forward sales contracts, and written and purchased options are estimated using prices of financial instruments with similar characteristics and thus are classified within Level 2 of the fair value hierarchy.

• Deposits The fair value of non-interest-bearing deposits, NOW accounts, money market deposits and savings accounts are the amounts payable on demand at the reporting date. Certificates of deposit and other time deposits are valued using a discounted cash flow model based on the weighted-average rate at December 31, 2018 and 2017 for deposits with similar remaining maturities. The Company evaluated the inputs to the fair value estimate and based on our use of quoted prices for similar liabilities determined that the fair value of deposits should be classified within Level 2 of the fair value hierarchy.

• Short-term borrowings Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily, are reflected at the amount of cash received in connection with the transaction, and are classified within Level 1 of the fair value hierarchy. The carrying amounts of other short-term borrowings maturing within ninety days approximate their fair values and are classified within Level 2 of the fair value hierarchy as similar instruments are traded in active markets.

• Long-term debt The fair values of long-term debt are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt is classified within Level 3 of the fair value hierarchy.

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Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

Pronouncements adopted during the year ended December 31, 2018:

ASU No. 2014-09

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which implements a common revenue standard and clarifies the principles used for recognizing revenue. The ASU clarifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Revenue from Contracts with Customers

The majority of the Company’s income streams (e.g., interest and dividend income and mortgage income) are accounted for in accordance with GAAP literature outside the scope of ASC 606, Revenue from Contracts with Customers. Details regarding income recognition for interest and non-interest streams can be found throughout Note 1 - Summary of Significant Accounting Policies. Impairment losses recognized against certain receivables (e.g., NSF fees) and capitalized costs (e.g., sales commissions) associated with contracts within the scope of ASC 606 are immaterial.

Non-interest income from service charges on deposit accounts, broker commissions, ATM/debit card fee income, credit card and merchant-related income (e.g., interchange fees), and transactional income from traditional banking services (part of other non-interest income) are the significant income streams within the scope of ASC 606 associated with the IBERIABANK reportable segment. Non-interest income from title revenue is associated with the LTC reportable segment.

Recognition of Revenue from Contracts with Customers

The Company enters into various contracts with customers to provide traditional banking services, including asset management, on a routine basis. The Company’s performance obligations are generally service-related and provided on a daily or monthly basis. The Company does not typically have performance obligations which extend beyond a reporting period. The performance obligations are generally satisfied upon completion of service (i.e., as services are rendered) and the fees are collected at such time, or shortly thereafter. The fees are readily determinable and allocated individually to each service. It is not typical for contracts to require significant judgment to determine the transaction price. Some contracts contain variable consideration; however, the variable consideration is generally constrained (not estimable) as it is based on the occurrence or nonoccurence of a contingent event (or another constraint in some circumstances). The Company generally records the variable consideration when the contingent event occurs and the fee is determinable.

The Company provides some services for customers in which it acts in an agent capacity, but generally acts in a principal capacity. Payment terms and conditions vary slightly amongst services; however, amounts are generally invoiced and due or collected by the Company within 30 days, although some fees may be prepaid. The Company bills the customer periodically as performance obligations are satisfied for most services. Therefore, revenue for services provided is generally recognized in the amount invoiced (except in circumstances of prepayment) as that amount corresponds directly to the value of the Company’s performance. In the normal course of business, the Company does not generally grant refunds for services provided. As such, the Company does not establish provisions for estimated returns.

Title revenue associated with services provided by LTC, as well as broker commissions, ATM/debit card fee income, credit card and merchant-related income (e.g., interchange fees), and transactional fees from traditional banking services generated within IBERIABANK are generally recognized at the point-in-time the services are provided. The Company has determined this recognition to be appropriate as, upon completion of services, the Company has completed its performance obligations, has a present right to payment (or has collected the cash), and the customer is able to obtain (or has obtained) substantially all of the benefits from the performance obligation (i.e., the provided services). Revenues from service charges on deposit accounts are recognized at the end of the monthly service period (e.g., account service charges) or the date the performance obligation is satisfied (e.g., NSF, stop payment, wire transfer, etc.), except for deposit account services performed by Treasury Management which are recognized on a monthly basis, as these services are performed over that time. Asset management fees (e.g., trust fees) are generally recognized at the end of the monthly service period, but fees are not collected until the beginning of the subsequent month, although some contracts may have quarterly terms and/or be prepaid. NSF fees which are not initially paid are subsequently recorded as a loan (along with the overdraft balance) and remain classified as such until the amount is paid or charged-off (generally after 60 days).

Adoption of ASC 606

The Company adopted ASC 606 as of January 1, 2018 for all contracts as of the effective date. Prior period amounts have been reclassified to conform to current guidance requirements related to the net presentation of certain costs associated with interchange fees and rewards programs. The reclassification of prior period amounts reduced non-interest income and non-interest expense by approximately $8.9 million for the year ended December 31, 2017 and had no impact on net income. There was no cumulative adjustment made to opening retained earnings as of January 1, 2018.

ASU No. 2016-01

In January 2016, the FASB issued ASU No. 2016-01, Financial Statements - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which impacts how the Company measures certain equity investments and discloses and presents certain financial instruments through the application of the “exit price” methodology.

The Company adopted this ASU as of January 1, 2018. Under the new guidance, equity investments can no longer be classified as trading or available for sale (AFS), and the related unrealized holding gains and losses can no longer be recognized in OCI. Per the ASU, such equity investments should be measured at fair value with adjustments recognized in earnings at the end of each reporting period. The Company’s portfolio of equity investments previously classified as AFS investment securities, which were not material at the date of adoption, were reclassified to “other assets.” As these equity investments were previously measured at fair value, the implementation of this ASU did not require any changes to the Company’s valuation method for these equity investments. As a result of adopting this ASU, the Company recorded an immaterial cumulative-effect adjustment to retained earnings for previously recorded fair value adjustments related to these equity investments. The Company elected the practical expedient measurement alternative to prospectively account for other equity investments that do not have readily determinable fair values at cost less impairment plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer.

The Company also modified its methodology for determining the estimated fair value for loans measured at amortized cost to the “exit price” methodology as required by this ASU. The fair value disclosure for loans measured at amortized cost had previously been determined using an “entry price” methodology. The Company’s “exit price” methodology estimates the fair value of these loans based on the present value of the future cash flows using the interest rate that would be charged for a similar loan to a borrower with similar risk at the indicated balance sheet date, adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant.

ASU No. 2016-15

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (ASC 230): Classification of Certain Cash Receipts and Cash Payments, in order to reduce current diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.

The Company retrospectively adopted this ASU effective January 1, 2018. The adoption of this ASU did not impact the Company’s consolidated statements of cash flows.

ASU No. 2017-04

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (ASC 350): Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Therefore, any carrying amount which exceeds the reporting unit’s fair value up to the amount of goodwill recorded will be recognized as an impairment loss.

The Company elected to early adopt this ASU prospectively effective September 30, 2018. The Company completed its annual impairment test as of October 1, 2018 in accordance with this ASU and concluded that goodwill was not impaired as of the testing date.

ASU No. 2017-12

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (ASC 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results.

The Company elected to early adopt this ASU effective January 1, 2018. The modified-retrospective adoption of this ASU did not impact the Company’s consolidated financial statements in the current or prior periods.

ASU No. 2018-15

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The guidance requires customers in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. ASC 350-40 requires the capitalization of certain costs incurred only during the application development stage (e.g., costs of integration with on-premises software, coding, configuration, and customization). ASC 350-40 also requires entities to expense costs during the preliminary project and post-implementation stages (e.g., costs of project planning, training, maintenance after implementation, data conversion) as they are incurred. The accounting for the service element of the arrangement is not affected by the ASU.

Capitalized implementation costs related to a hosting arrangement that is a service contract should be amortized over the term of the hosting arrangement. Capitalized implementation costs and the related expense should be presented in the same line item in the statement of financial position and income statement as the fees associated with the hosting element of the arrangement. Capitalized implementation cost payments should be classified in the statement of cash flows in the same manner as payments for the service component of the hosting arrangement (typically operating cash flows).

The Company elected to early adopt the guidance prospectively effective August 31, 2018. The adoption of the guidance did not have a significant impact on the Company’s consolidated financial statements.

Pronouncements issued but not yet adopted:

ASU No. 2016-02, ASU No. 2018-11, and ASU No. 2018-20

In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). This guidance requires lessees to recognize lease assets (i.e., right of use assets) and liabilities on the balance sheet for leases that are classified as operating leases. The lessor accounting model was relatively unchanged by this ASU. Additional guidance includes, but is not limited to, the elimination of leveraged leases; modification to the definition of a lease; guidance on sale and leaseback transactions; and disclosure of additional quantitative and qualitative information. ASU No. 2016-02 required lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.

In July 2018, the FASB issued ASU No. 2018-11, Leases (ASC 842): Targeted Improvements. This ASU includes an optional transition method to apply ASU No. 2016-02 on a prospective basis as of the effective date, with a cumulative effect adjustment to retained earnings in the period of adoption, instead of applying the guidance using a modified retrospective approach as originally required under ASU No. 2016-02. ASU No. 2018-11 also provides lessors with a practical expedient by class of underlying asset to not separate nonlease components from the associated lease component under certain circumstances and clarifies which guidance (ASC 842 or ASC 606) to apply to combined lease and nonlease components.

In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors. This ASU permits lessors to elect to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs and instead, exclude these taxes from the measurement of lease revenue and expense and provide certain disclosures. The ASU adds further clarity regarding lessor recognition and measurement of (i) lessor costs paid directly by lessees to third parties on the lessor’s behalf and lessor costs that are paid by the lessor and reimbursed by the lessee, and (ii) certain variable payments that are allocated to the lease and non-lease components when changes in the facts and circumstances on which the variable payment is based occur.

The Company elected the optional transition method and adopted ASU No. 2016-02, ASU No. 2018-11 and ASU No. 2018-20 effective January 1, 2019. The Company occupies certain banking offices and uses equipment under operating lease agreements, which were historically not recognized on the consolidated balance sheets. As a result of adopting this ASU, the Company anticipates recording a net increase to both assets and liabilities of approximately $100 million on January 1, 2019. The Company also elected the package of practical expedients that do not require the reassessment of expired or existing contracts’ lease classification, direct costs, or whether they are or contain leases. The Company did not elect the hindsight practical expedient. The Company did not elect to account for lease and nonlease components as a single lease component. The adjustment to retained earnings on January 1, 2019 as a result of adopting this ASU and the related impact on the Company’s regulatory capital ratios was not significant.

ASU No. 2016-13

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments. The guidance introduces an impairment model that is based on expected credit losses (ECL), rather than incurred losses, to estimate credit losses on certain types of financial instruments such as loans and held-to-maturity securities, including certain off-balance sheet financial instruments such as loan commitments. The measurement of ECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. Financial instruments with similar risk characteristics must be grouped together when estimating ECL.

The ASU also amends the current AFS security impairment model for debt securities. The new model will require an estimate of ECL when the fair value is below the amortized cost of the asset through the use of an allowance to record estimated credit losses (and subsequent recoveries). Non-credit related losses will continue to be recognized through OCI.

In addition, the guidance provides for a simplified accounting model for purchased financial assets with a more-than-insignificant amount of credit deterioration since their origination. The initial estimate of expected credit losses would be recognized through an ALLL with an offset (i.e., increase) to the cost basis of the related financial asset at acquisition.

ASU No. 2016-13 will be effective for fiscal years beginning after December 15, 2019, including interim periods. The ASU will be applied through a modified-retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. A prospective transition approach is required for debt securities for which OTTI had been recognized before the effective date. Amounts previously recognized in AOCI as of the date of adoption that relate to improvements in cash flows expected to be collected should continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption should be recorded in earnings when received.

The Company has established a cross-function implementation team and engaged third-party consultants who have jointly developed a project plan to provide implementation oversight. The Company is in the process of developing and implementing current expected credit loss models that satisfy the requirements of the ASU and continues to identify key interpretive issues. The Company expects that this ASU will result in an increase to ALLL given the change to estimate losses over the full remaining estimated life of the loan portfolio as well as the adoption of an allowance for debt securities. The extent of the increase in the ALLL is not yet known and will depend on the composition of our loan and securities portfolios, finalization of credit loss models, macroeconomic conditions and forecasts at the adoption date.

ASU No. 2018-13

In August 2018, the FASB released ASU No. 2018-13, Fair Value Measurement (ASC 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements.

The ASU No. 2018-13 will be effective for fiscal years beginning after December 15, 2019, including interim periods, with early adoption permitted.

The Company is currently evaluating the impact of the ASU. While adoption of this ASU will result in changes to existing disclosures, it will not have any impact on our financial position or results of operation.

ASU No. 2018-16

In October 2018, the FASB released ASU No. 2018-16, Derivatives and Hedging (ASC 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes, which permits the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815 in addition to the interest rates on direct Treasury obligations of the U.S. government (UST), the London Interbank Offered Rate (LIBOR) swap rate, the OIS Rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate.

The required effective date of this ASU is dependent upon when an entity adopts the provisions of ASU No. 2017-12. The Company adopted ASU No. 2018-16 effective January 1, 2019 on a prospective basis for qualifying new or redesignated hedging relations as ASU No. 2017-12 had previously been adopted on January 1, 2018. The implementation of this ASU will not have a significant impact on the Company’s consolidated financial statements.

ASU No. 2018-17

In October 2018, the FASB released ASU No. 2018-17, Consolidation (ASC 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, which improves the consistency of the application of the variable interest entity (VIE) related party guidance for common control arrangements. This ASU requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP) when determining whether a decision-making fee is a variable interest.

ASU No. 2018-17 will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The guidance should be applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented.

The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.

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Acquisition Activity

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisition Activity

ACQUISITION ACTIVITY

The acquisitions discussed below qualify as business combinations. The Company accounts for business combinations under the acquisition method in accordance with ASC Topic 805, Business Combinations. See Note 1, Summary of Significant Accounting Policies, for a description of the Company's accounting for business combinations.

2018 Acquisitions

Acquisition of Gibraltar

The Company completed the acquisition of Gibraltar Private Bank & Trust Co. ("Gibraltar") on March 23, 2018. The acquisition added $1.4 billion in loans and $1.1 billion in deposits, after fair value adjustments. Gibraltar operated eight offices in total, with seven located in the Florida metropolitan statistical areas of Miami, Key West, and Naples and one in New York City.

Under the terms of the Agreement and Plan of Merger, Gibraltar common shareholders received 1.9749 shares of IBERIABANK Corporation common stock for each outstanding share of Gibraltar common stock. Based on the Company's closing common stock price of $77.00 per share on March 23, 2018, the aggregate value of the acquisition consideration paid at the time of closing was approximately $214.7 million.

During the first quarter of 2018, the Company recorded preliminary purchase price allocations related to Gibraltar. Throughout the remainder of 2018, the Company continued to analyze the valuations assigned to the acquired assets and liabilities assumed. Based on new information relating to events or circumstances existing at the acquisition date and revised valuations, the Company updated estimated fair values increasing goodwill by $14.6 million to $64.3 million during the fourth quarter of 2018. This increase is primarily a result of a $17.8 million fair market value adjustment to the acquired loan portfolio. As of December 31, 2018, the valuation of the Gibraltar acquisition was final. The following table summarizes the consideration paid for Gibraltar's net assets and the fair value estimates of the identifiable assets acquired and liabilities assumed as of the acquisition date.

(Dollars in thousands)	Number of Shares	Amount
Equity consideration
Common stock issued	2,787,773	$	214,659
Total equity consideration		214,659
Non-equity consideration
Cash		7
Total consideration paid		214,666
Fair value of net assets assumed including identifiable intangible assets		150,414
Goodwill		$	64,252

(Dollars in thousands)	Gibraltar Fair Value
Assets
Cash and cash equivalents	$	102,575
Investment securities	19,169
Equity securities	27,519
Loans	1,447,475
Core deposit intangible assets	18,529
Other assets	12,005
Total assets acquired	$	1,627,272
Liabilities
Deposit liabilities	$	1,064,803
Long-term borrowings	405,107
Deferred tax liability, net	1,761
Other liabilities	5,187
Total liabilities assumed	$	1,476,858

Information regarding the allocation of goodwill recorded as a result of the acquisition to the Company's reportable segments is provided in Note 9 "Goodwill and Other Acquired Intangible Assets." The goodwill recorded as a result of the acquisition is not deductible for tax purposes.

The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented above.

Cash and Cash Equivalents: The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment Securities: Fair values for securities were based on quoted market prices from multiple bond dealers. The simple average of the prices received was used to calculate the adjustments.

Equity Securities: The carrying amount of these securities is a reasonable estimate of fair value based on the short-term nature of these assets.

Loans: Fair values for loans were based on a discounted cash flow methodology that considered factors including loan type, classification status, remaining term of the loan, fixed or variable interest rate, amortization status and current discount rates. The discount rates used for loans were based on current market rates for new originations of comparable loans and included adjustments for any liquidity concerns. The discount rate did not include an explicit factor for credit losses, as that was included as a reduction to the estimated cash flows.

Core Deposit Intangible Assets ("CDI"): The fair value for CDI was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, alternative costs of funds, and the interest costs associated with the customer deposits. The CDI is being amortized over its estimated useful life of approximately ten years utilizing an accelerated method.

Deposit Liabilities: The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the acquisition date. Fair values for time deposits were estimated using a discounted cash flow analysis, that applied interest rates currently being offered to the contractual interest rates on such time deposits.

Long-term Borrowings: The carrying amount of long-term borrowings at the acquisition date approximated fair value, as the Company immediately paid off the debt upon acquisition.

Acquisition of SolomonParks

On January 12, 2018, the Company's subsidiary, Lenders Title Company, acquired SolomonParks Title & Escrow, LLC ("SolomonParks"). Under the terms of the agreement, LTC paid $3.3 million in cash to acquire eight title offices in the Nashville, Tennessee area, which resulted in goodwill of $3.4 million. In addition, the agreement provides for potential additional cash consideration of up to $750 thousand based on gross revenues over a two-year period after the acquisition.

Information regarding the allocation of goodwill recorded as a result of these acquisitions to the Company's reportable segments is provided in Note 9 "Goodwill and Other Acquired Intangible Assets." The goodwill recorded as a result of these acquisitions is not deductible for tax purposes.

2017 Acquisition

Acquisition of Sabadell United

The Company completed the acquisition of Sabadell United Bank, N.A. ("Sabadell United") from Banco de Sabadell, S.A. ("Banco Sabadell") on July 31, 2017. The acquisition added $4.0 billion in loans and $4.4 billion in deposits after fair value adjustments. The acquisition expanded the Company's presence in Southeast Florida adding 25 offices serving the Miami metropolitan area and three offices in Naples, Sarasota and Tampa.

Under the terms of the Stock Purchase Agreement, Banco de Sabadell, S.A. received $809.2 million in cash and 2,610,304 shares of IBERIABANK Corporation common stock in exchange for 100 percent of Sabadell United's common stock. The cash consideration was financed through two public common stock offerings completed on December 7, 2016, and March 7, 2017.

During the third quarter of 2017, the Company recorded preliminary purchase price allocations related to Sabadell United. Throughout the remainder of 2017 and the first six months of 2018, the Company continued to analyze the valuations assigned to the acquired assets and liabilities assumed. Based on new information relating to events or circumstances existing at the acquisition date and revised valuations, the Company updated estimated fair values decreasing goodwill by $21.0 million to $441.0 million during the first six months of 2018. This decrease was primarily a result of a change in the estimated fair value of the acquired loans and deferred tax asset. The valuation of the Sabadell United acquisition was final as of June 30, 2018.

The following table summarizes the consideration paid for Sabadell United's net assets and the fair value estimates of identifiable assets acquired and liabilities assumed as of the acquisition date. See Note 3, Acquisition Activity, in the 2017 10-K for a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented below.

(Dollars in thousands)	Number of Shares	Amount
Equity consideration
Common stock issued	2,610,304	$	211,043
Total equity consideration		211,043
Non-equity consideration
Cash		809,159
Total consideration paid		1,020,202
Fair value of net assets assumed including identifiable intangible assets		579,157
Goodwill		$	441,045

(Dollars in thousands)	Sabadell United Fair Value
Assets
Cash and cash equivalents	$	318,819
Investment securities	964,123
Loans	4,030,777
Core deposit intangible assets	66,600
Deferred tax asset, net	44,480
Other assets	92,820
Total assets acquired	$	5,517,619
Liabilities
Deposit liabilities	$	4,382,780
Short-term borrowings	520,539
Other liabilities	35,143
Total liabilities assumed	$	4,938,462

Information regarding the allocation of goodwill recorded as a result of the acquisition to the Company's reportable segments is provided in Note 9 "Goodwill and Other Acquired Intangible Assets." The goodwill recorded as a result of the acquisition is not deductible for tax purposes.

The Company’s consolidated financial statements as of and for the year ended December 31, 2018 include the operating results of the acquired assets and liabilities assumed. Due to the system conversion of Sabadell United in October of 2017 and subsequent streamlining and integration of the operating activities into those of the Company, historical reporting for the former Sabadell United operations is impracticable and thus disclosure of the revenue from the assets acquired and income before income taxes is impracticable for the period subsequent to acquisition.

The following table presents unaudited pro forma information as if the acquisition occurred on January 1, 2016. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Company acquired Sabadell United on January 1, 2016. Furthermore, cost savings and other business synergies related to the acquisition are not reflected in the pro forma amounts.

	Unaudited Pro Forma for Year Ended December 31,
(Dollars in thousands)	2017		2016
Net interest income	$	924,348	$	842,945
Non-interest income	219,021		255,022
Net income	174,246		246,799

This pro forma information combines the historical consolidated results of operations of IBERIABANK and Sabadell United for the periods presented and gives effect to the following non recurring adjustments:

Fair value adjustments: Pro forma adjustment to net interest income of $20.3 million and $38.8 million for the years ended December 31, 2017 and 2016, respectively, to record estimated amortization of premiums and accretion of discounts on acquired loans, securities, and deposits.

Sabadell United accretion / amortization: Pro forma adjustment to net interest income of $1.3 million and $4.1 million for the years ended December 31, 2017 and 2016, respectively, to eliminate Sabadell United's amortization of premiums and accretion of discounts on previously acquired loans, securities, FDIC indemnification asset, and deposits.

Sabadell United provision for loan losses: Pro forma adjustments were made to provision for loan losses of $6.4 million and $5.9 million for the years ended December 31, 2017 and 2016, respectively, to eliminate the reversal (benefit) of Sabadell United's release of provision for loan losses and to account for the provision for loan losses on new loans originated during the periods presented.

Amortization of acquired intangibles: Pro forma adjustment to non-interest expense of $5.9 million and $10.1 million for the years ended December 31, 2017 and 2016, respectively, to record estimated amortization of acquired intangible assets.

Other adjustments: Pro forma results also include adjustments related to the removal of benefit from release of reserve for unfunded lending commitments, removal of FDIC clawback liability expense, adjustments to FDIC insurance and other regulatory assessment expenses and related income tax effects.

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Investment Securities

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

The amortized cost and fair values of investment securities, with gross unrealized gains and losses, consist of the following:

	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	995	$	3	$	—		$	998
Obligations of state and political subdivisions	177,566		2,045		(723		)	178,888
Mortgage-backed securities:
Residential agency	3,837,584		8,886		(57,073		)	3,789,397
Commercial agency	730,148		2,363		(14,799		)	717,712
Other securities	97,020		351		(787		)	96,584
Total securities available for sale	$	4,843,313	$	13,648	$	(73,382	)	$	4,783,579
Securities held to maturity:
Obligations of state and political subdivisions	$	188,684	$	309	$	(2,497	)	$	186,496
Mortgage-backed securities:
Residential agency	18,762		30		(1,011		)	17,781
Total securities held to maturity	$	207,446	$	339	$	(3,508	)	$	204,277

	December 31, 2017
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	41,003	$	18	$	(406	)	$	40,615
Obligations of state and political subdivisions	271,451		4,246		(1,493		)	274,204
Mortgage-backed securities:
Residential agency	3,675,367		1,233		(52,090		)	3,624,510
Commercial agency	546,105		228		(8,938		)	537,395
Other securities	114,005		247		(914		)	113,338
Total securities available for sale	$	4,647,931	$	5,972	$	(63,841	)	$	4,590,062
Securities held to maturity:
Obligations of state and political subdivisions	$	206,736	$	1,530	$	(275	)	$	207,991
Mortgage-backed securities:
Residential agency	20,582		41		(650		)	19,973
Total securities held to maturity	$	227,318	$	1,571	$	(925	)	$	227,964

Securities with carrying values of $2.4 billion and $2.1 billion were pledged to support repurchase transactions, public funds deposits and certain long-term borrowings at December 31, 2018 and 2017, respectively.

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:

	December 31, 2018
	Less Than Twelve Months					Twelve Months or More					Total
(Dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
Obligations of state and political subdivisions	$	(9	)	$	4,112	$	(714	)	$	30,268	$	(723	)	$	34,380
Mortgage-backed securities:
Residential agency	(816		)	197,057		(56,257		)	2,193,862		(57,073		)	2,390,919
Commercial agency	(43		)	18,190		(14,756		)	483,565		(14,799		)	501,755
Other securities	(94		)	18,025		(693		)	32,577		(787		)	50,602
Total securities available for sale	$	(962	)	$	237,384	$	(72,420	)	$	2,740,272	$	(73,382	)	$	2,977,656
Securities held to maturity:
Obligations of state and political subdivisions	$	(3	)	$	2,059	$	(2,494	)	$	151,699	$	(2,497	)	$	153,758
Mortgage-backed securities:
Residential agency	—			—		(1,011		)	17,478		(1,011		)	17,478
Total securities held to maturity	$	(3	)	$	2,059	$	(3,505	)	$	169,177	$	(3,508	)	$	171,236

	December 31, 2017
	Less Than Twelve Months					Twelve Months or More					Total
(Dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	(254	)	$	29,744	$	(152	)	$	9,848	$	(406	)	$	39,592
Obligations of state and political subdivisions	(326		)	31,601		(1,167		)	68,609		(1,493		)	100,210
Mortgage-backed securities:
Residential agency	(22,760		)	2,366,569		(29,330		)	1,061,588		(52,090		)	3,428,157
Commercial agency	(3,503		)	310,769		(5,435		)	164,470		(8,938		)	475,239
Other securities	(914		)	75,302		—			—		(914		)	75,302
Total securities available for sale	$	(27,757	)	$	2,813,985	$	(36,084	)	$	1,304,515	$	(63,841	)	$	4,118,500
Securities held to maturity:
Obligations of state and political subdivisions	$	(263	)	$	65,817	$	(12	)	$	3,031	$	(275	)	$	68,848
Mortgage-backed securities:
Residential agency	(2		)	333		(648		)	19,269		(650		)	19,602
Total securities held to maturity	$	(265	)	$	66,150	$	(660	)	$	22,300	$	(925	)	$	88,450

The Company assessed the nature of the unrealized losses in its portfolio as of December 31, 2018 and 2017 to determine if there are losses that should be deemed other-than-temporary. In its analysis of these securities, management considered numerous factors to determine whether there were instances where the amortized cost basis of the debt securities would not be fully recoverable, including, but not limited to:

• The length of time and extent to which the estimated fair value of the securities was less than their amortized cost,

• Whether adverse conditions were present in the operations, geographic area, or industry of the issuer,

• The payment structure of the security, including scheduled interest and principal payments, including the issuer’s failures to make scheduled payments, if any, and the likelihood of failure to make scheduled payments in the future,

• Changes to the rating of the security by a rating agency, and

• Subsequent recoveries or additional declines in fair value after the balance sheet date.

Management believes it has considered these factors, as well as all relevant information available, when determining the expected future cash flows of the securities in question. In each instance, management has determined the cost basis of the securities would be fully recoverable. Management also has the intent to hold debt securities until their maturity or anticipated recovery if the security is classified as available for sale. In addition, management does not believe the Company will be required to sell debt securities before the anticipated recovery of the amortized cost basis of the security. As a result of the Company's analysis, no declines in the estimated fair value of the Company's investment securities were deemed to be other-than-temporary at December 31, 2018 or 2017.

At December 31, 2018, 488 debt securities had unrealized losses of 2.38% of the securities’ amortized cost basis. At December 31, 2017, 544 debt securities had unrealized losses of 1.52% of the securities’ amortized cost basis. The unrealized losses for each of the securities related to market interest rate changes and not credit concerns of the issuers. Additional information on securities that have been in a continuous loss position for over twelve months at December 31 is presented in the following table.

(Dollars in thousands)	2018		2017
Number of securities
Mortgage-backed securities:
Residential agency	302		153
Commercial agency	72		28
Obligations of state and political subdivisions	60		28
U.S. Government-sponsored enterprise obligations	—		1
Other securities	7		—
	441		210
Amortized Cost Basis
Mortgage-backed securities:
Residential agency	$	2,268,608	$	1,110,834
Commercial agency	498,321		169,905
Obligations of state and political subdivisions	185,175		72,820
U.S. Government-sponsored enterprise obligations	—		10,000
Other securities	33,270		—
	$	2,985,374	$	1,363,559
Unrealized Loss
Mortgage-backed securities:
Residential agency	$	57,268	$	29,977
Commercial agency	14,756		5,435
Obligations of state and political subdivisions	3,208		1,180
U.S. Government-sponsored enterprise obligations	—		152
Other securities	693		—
	$	75,925	$	36,744

The amortized cost and estimated fair value of investment securities by maturity at December 31, 2018 are presented in the following table. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities. Weighted average yields are calculated on the basis of the yield to maturity based on the amortized cost of each security.

	Securities Available for Sale						Securities Held to Maturity
(Dollars in thousands)	Weighted Average Yield		Amortized Cost		Estimated Fair Value		Weighted Average Yield		Amortized Cost		Estimated Fair Value
Within one year or less	3.84	%	$	2,958	$	2,967	2.77	%	$	1,309	$	1,313
One through five years	2.68		63,397		63,183		2.47		6,303		6,291
After five through ten years	2.67		829,027		819,056		2.56		42,827		42,571
Over ten years	2.94		3,947,931		3,898,373		2.62		157,007		154,102
	2.89	%	$	4,843,313	$	4,783,579	2.60	%	$	207,446	$	204,277

The following is a summary of realized gains and losses from the sale of securities classified as available for sale. Gains or losses on securities sold are recorded on the trade date, using the specific identification method.

	Years Ended December 31
(Dollars in thousands)	2018			2017			2016
Realized gains	$	40		$	1,651		$	2,949
Realized losses	(49,940		)	(1,799		)	(948		)
	$	(49,900	)	$	(148	)	$	2,001

In addition to the gains above, the Company realized certain gains on calls of securities held to maturity that were not significant to the consolidated financial statements.

Other Equity Securities

The Company accounts for the following securities at cost less impairment plus or minus any observable price changes, which approximates fair value, with the exception of CRA and Community Development Investment Funds, which are recorded at fair value. Other Equity Securities, which are presented in “other assets” on the consolidated balance sheets, are as follows:

(Dollars in thousands)	2018		2017
Federal Home Loan Bank (FHLB) stock	$	95,213	$	95,171
Federal Reserve Bank (FRB) stock	85,630		79,191
CRA and Community Development Investment Funds	1,884		—
Other investments	9,709		3,008
	$	192,436	$	177,370

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Loans and Leases

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Loans and Leases

LOANS AND LEASES

Loans and leases consist of the following at December 31:

(Dollars in thousands)	2018		2017
Commercial loans and leases:
Real estate - construction	$	1,196,366	$	1,240,396
Real estate - owner-occupied	2,395,822		2,375,321
Real estate - non-owner-occupied	5,796,117		5,322,513
Commercial and industrial (1)	5,737,017		5,135,067
	15,125,322		14,073,297
Residential mortgage loans	4,359,156		3,056,352
Consumer loans:
Home equity	2,304,694		2,292,275
Other	730,643		656,257
	3,035,337		2,948,532
Total	$	22,519,815	$	20,078,181

⁽¹⁾ Includes equipment financing leases

Net deferred loan origination fees were $30.2 million and $29.3 million at December 31, 2018 and 2017, respectively. Total net discount on the Company's loans was $136.8 million and $159.3 million at December 31, 2018 and 2017, respectively, of which $81.6 million and $94.7 million was related to non-impaired loans.

In addition to loans issued in the normal course of business, the Company considers overdrafts on customer deposit accounts to be loans and reclassifies these overdrafts as loans in its consolidated balance sheets. At December 31, 2018 and 2017, overdrafts of $9.2 million and $7.4 million, respectively, have been reclassified to loans.

Loans with carrying values of $7.6 billion and $6.6 billion were pledged as collateral for borrowings at December 31, 2018 and 2017, respectively.

Aging Analysis

The following tables provide an analysis of the aging of loans and leases as of December 31, 2018 and 2017. Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

	December 31, 2018
	Accruing
(Dollars in thousands)	Current or less than 30 Days Past Due		30-59 Days		60-89 Days		> 90 Days		Total Past Due		Non-accrual Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,167,795	$	1,054	$	—	$	—	$	1,054	$	1,094	$	26,423	$	1,196,366
Real estate - owner-occupied	2,305,743		7,167		—		—		7,167		10,260		72,652		2,395,822
Real estate - non-owner-occupied	5,703,131		7,473		360		—		7,833		15,898		69,255		5,796,117
Commercial and industrial	5,645,304		5,139		1,320		553		7,012		57,860		26,841		5,737,017
Residential mortgage	4,218,146		2,768		13,063		1,575		17,406		30,396		93,208		4,359,156
Consumer - home equity	2,200,517		10,283		2,409		—		12,692		18,830		72,655		2,304,694
Consumer - other	719,122		4,695		1,601		—		6,296		2,846		2,379		730,643
Total	$	21,959,758	$	38,579	$	18,753	$	2,128	$	59,460	$	137,184	$	363,413	$	22,519,815

	December 31, 2017
	Accruing
(Dollars in thousands)	Current or less than 30 Days Past Due		30-59 Days		60-89 Days		> 90 Days		Total Past Due		Non-accrual Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,197,766	$	269	$	—	$	458	$	727	$	2,635	$	39,268	$	1,240,396
Real estate - owner-occupied	2,243,923		1,631		659		74		2,364		24,457		104,577		2,375,321
Real estate - non-owner-occupied	5,220,648		2,086		6,405		887		9,378		6,811		85,676		5,322,513
Commercial and industrial	5,014,438		5,788		5,726		146		11,660		77,823		31,146		5,135,067
Residential mortgage	2,877,048		10,083		8,136		5,317		23,536		17,387		138,381		3,056,352
Consumer - home equity	2,186,554		11,675		2,947		18		14,640		12,365		78,716		2,292,275
Consumer - other	642,244		5,286		1,026		—		6,312		3,910		3,791		656,257
Total	$	19,382,621	$	36,818	$	24,899	$	6,900	$	68,617	$	145,388	$	481,555	$	20,078,181

Acquired Loans

As discussed in Note 3, during 2017, the Company acquired loans with fair values of $4.0 billion from Sabadell United. Certain loans that were acquired in the Sabadell United transaction were covered by loss share agreements between the FDIC and Sabadell United. These FDIC loss share agreements were assumed in connection with the Company's acquisition of Sabadell United, and afforded IBERIABANK loss protection. In 2018, the Company terminated its loss share agreements with the FDIC. As a result, there were no covered loans at December 31, 2018. Covered loans were $158.6 million at December 31, 2017. Certain acquired loans from Sabadell United were to customers with addresses outside of the United States. Foreign loans, denominated in U.S. dollars, totaled $202.6 million and $325.5 million at December 31, 2018 and 2017, respectively.

During 2018, the Company acquired loans with fair values of $1.4 billion from Gibraltar. Of the total loans acquired, $1.4 billion were determined to have no evidence of deteriorated credit quality and are accounted for under ASC Topics 310-10 and 310-20. The remaining $20.7 million were determined to exhibit deteriorated credit quality since origination under ASC 310-30. The tables below show the fair value estimates of loans acquired from Gibraltar for these two subsections of the portfolio as of the acquisition date.

(Dollars in thousands)	Acquired Non-Impaired Loans
Contractually required principal and interest at acquisition	$	1,593,408
Expected losses and foregone interest	(25,029		)
Cash flows expected to be collected at acquisition	1,568,379
Fair value of acquired loans at acquisition	$	1,426,756

(Dollars in thousands)	Acquired Impaired Loans
Contractually required principal and interest at acquisition	$	29,929
Non-accretable difference (expected losses and foregone interest)	(3,636		)
Cash flows expected to be collected at acquisition	26,293
Accretable yield	(5,574		)
Basis in acquired loans at acquisition	$	20,719

The following is a summary of changes in the accretable difference for all loans accounted for under ASC 310-30 during the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Balance at beginning of period	$	152,623		$	175,054		$	227,502
Additions	5,574			32,937			—
Transfers from non-accretable difference to accretable yield	3,623			4,912			5,490
Accretion	(47,962		)	(56,337		)	(68,211		)
Changes in expected cash flows not affecting non-accretable differences (1)	19,484			(3,943		)	10,273
Balance at end of period	$	133,342		$	152,623		$	175,054

⁽¹⁾  Includes changes in cash flows expected to be collected due to the impact of changes in actual or expected timing of liquidation events, modifications, changes in interest rates and changes in prepayment assumptions.

Troubled Debt Restructurings

Information about the Company’s TDRs is presented in the following tables. Modifications of loans that are accounted for within a pool under ASC Topic 310-30 are excluded as TDRs. Accordingly, such modifications do not result in the removal of those loans from the pool, even if the modification of those loans would otherwise be considered a TDR. As a result, all such acquired loans that would otherwise meet the criteria for classification as a TDR are excluded from the tables below.

TDRs totaling $53.2 million, $70.5 million, and $222.4 million occurred during the years ended December 31, 2018, 2017, and 2016, respectively, through modification of the original loan terms.

The following table provides information on how the TDRs were modified during the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Extended maturities	$	23,262	$	26,561	$	75,315
Interest rate adjustment	99		24		193
Maturity and interest rate adjustment	554		4,932		2,470
Movement to or extension of interest-rate only payments	881		4,161		27,931
Forbearance	4,432		7,226		76,819
Other concession(s) (1)	23,943		27,555		39,708
Total	$	53,171	$	70,459	$	222,436

⁽¹⁾  Other concessions may include covenant waivers, forgiveness of principal or interest associated with a customer bankruptcy, or a combination of any of the above concessions.

Of the $53.2 million of TDRs occurring during the year ended December 31, 2018, $31.5 million were on accrual status and $21.7 million were on non-accrual status. Of the $70.5 million of TDRs occurring during the year ended December 31, 2017, $46.3 million were on accrual status and $24.2 million were on non-accrual status. Of the $222.4 million of TDRs occuring during the year ended December 31, 2016, $85.9 million were on accrual status and $136.5 million were on non-accrual status.

The following table presents the end of period balance for loans modified in a TDR during the years ended December 31:

	2018					2017					2016
(In thousands, except number of loans)	Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Commercial real estate - construction	3	$	4,819	$	3,830	4	$	9,404	$	9,628	3	$	3,024	$	3,035
Commercial real estate - owner-occupied	14	4,257		3,912		11	5,779		5,706		20	18,223		18,239
Commercial real estate - non-owner-occupied	20	3,719		3,428		19	11,974		13,738		25	16,644		10,093
Commercial and industrial	52	39,796		30,295		57	21,651		20,883		79	163,265		169,893
Residential mortgage	19	1,706		1,529		24	1,897		1,771		43	5,141		4,946
Consumer - home equity	65	10,607		8,951		123	16,346		15,862		158	13,273		12,568
Consumer - other	73	1,491		1,226		121	3,182		2,871		195	4,070		3,662
Total	246	$	66,395	$	53,171	359	$	70,233	$	70,459	523	$	223,640	$	222,436

Information detailing TDRs that defaulted during the years ended December 31, 2018, 2017, and 2016 and were modified in the previous twelve months (i.e., the twelve months prior to the default) is presented in the following table. The Company has defined a default as any loan with a loan payment that is currently past due greater than 30 days, or was past due greater than 30 days at any point during the previous twelve months, or since the date of modification, whichever is shorter.

	2018			2017			2016
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial real estate - construction	—	$	—	2	$	3,572	1	$	116
Commercial real estate - owner-occupied	2	142		6	4,668		3	3,473
Commercial real estate - non-owner-occupied	5	1,039		13	8,060		6	201
Commercial and industrial	13	3,757		32	6,550		22	14,707
Residential mortgage	8	773		16	1,218		8	405
Consumer - home equity	15	1,354		32	3,285		25	1,379
Consumer - other	38	447		62	1,381		59	944
Total	81	$	7,512	163	$	28,734	124	$	21,225

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Allowance for Credit Losses and Credit Quality

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Allowance for Credit Losses and Credit Quality

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Allowance for Credit Losses Activity

A summary of changes in the allowance for credit losses for the years ended December 31 is as follows:

(Dollars in thousands)	2018			2017			2016
Allowance for credit losses
Allowance for loan and lease losses at beginning of period	$	140,891		$	144,719		$	138,378
Provision for loan and lease losses before adjustment attributable to FDIC loss share agreements	39,472			51,111			42,927
Adjustment attributable to FDIC loss share arrangements	—			—			1,497
Net provision for loan and lease losses	39,472			51,111			44,424
Adjustment attributable to FDIC loss share arrangements	—			—			(1,497		)
Transfer of balance to OREO and other	(7,172		)	934			(2,781		)
Charge-offs	(45,547		)	(62,466		)	(39,839		)
Recoveries	12,927			6,593			6,034
Allowance for loan and lease losses at end of period	$	140,571		$	140,891		$	144,719
Reserve for unfunded commitments at beginning of period	$	13,208		$	11,241		$	14,145
Balance created in acquisition accounting	709			1,370			—
Provision for (Reversal of) unfunded lending commitments	913			597			(2,904		)
Reserve for unfunded commitments at end of period	$	14,830		$	13,208		$	11,241
Allowance for credit losses at end of period	$	155,401		$	154,099		$	155,960

A summary of changes in the allowance for credit losses, by loan portfolio type, for the years ended December 31 is as follows:

	2018
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	54,201		$	53,916		$	9,117		$	23,657		$	140,891
Provision for (Reversal of) loan and lease losses	(829		)	23,866			4,200			12,235			39,472
Transfer of balance to OREO and other	(2,256		)	(812		)	(106		)	(3,998		)	(7,172		)
Charge-offs	(1,611		)	(29,578		)	(334		)	(14,024		)	(45,547		)
Recoveries	2,301			6,704			121			3,801			12,927
Allowance for loan and lease losses at end of period	$	51,806		$	54,096		$	12,998		$	21,671		$	140,571
Reserve for unfunded commitments at beginning of period	$	4,531		$	5,309		$	555		$	2,813		$	13,208
Balance created in acquisition accounting	118			40			551			—			709
Provision for (Reversal of) unfunded commitments	220			849			(240		)	84			913
Reserve for unfunded commitments at end of period	$	4,869		$	6,198		$	866		$	2,897		$	14,830
Allowance on loans individually evaluated for impairment	$	636		$	12,646		$	145		$	2,915		$	16,342
Allowance on loans collectively evaluated for impairment	45,651			39,949			6,961			18,705			111,266
Allowance on loans acquired with deteriorated credit quality	5,519			1,501			5,892			51			12,963
Loans and leases, net of unearned income:
Balance at end of period	$	9,388,305		$	5,737,017		$	4,359,156		$	3,035,337		$	22,519,815
Balance at end of period individually evaluated for impairment	53,905			71,801			6,579			37,440			169,725
Balance at end of period collectively evaluated for impairment	9,166,070			5,638,375			4,259,369			2,922,863			21,986,677
Balance at end of period acquired with deteriorated credit quality	168,330			26,841			93,208			75,034			363,413

	2017
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	49,231		$	60,939		$	11,249		$	23,300		$	144,719
Provision for (Reversal of) loan and lease losses	10,433			31,891			(2,206		)	10,993			51,111
Transfer of balance to OREO and other	853			(68		)	2			147			934
Charge-offs	(7,433		)	(40,015		)	(365		)	(14,653		)	(62,466		)
Recoveries	1,117			1,169			437			3,870			6,593
Allowance for loan and lease losses at end of period	$	54,201		$	53,916		$	9,117		$	23,657		$	140,891
Reserve for unfunded commitments at beginning of period	$	3,207		$	4,537		$	657		$	2,840		$	11,241
Balance created in acquisition accounting	253			783			327			7			1,370
Provision for (Reversal of) unfunded commitments	1,071			(11		)	(429		)	(34		)	597
Reserve for unfunded commitments at end of period	$	4,531		$	5,309		$	555		$	2,813		$	13,208
Allowance on loans individually evaluated for impairment	$	1,588		$	12,736		$	172		$	2,856		$	17,352
Allowance on loans collectively evaluated for impairment	30,360			38,944			3,141			17,210			89,655
Allowance on loans acquired with deteriorated credit quality	22,253			2,236			5,804			3,591			33,884
Loans and leases, net of unearned income:
Balance at end of period	$	8,938,230		$	5,135,067		$	3,056,352		$	2,948,532		$	20,078,181
Balance at end of period individually evaluated for impairment	91,785			102,416			6,749			37,177			238,127
Balance at end of period collectively evaluated for impairment	8,616,924			5,001,505			2,911,222			2,828,848			19,358,499
Balance at end of period acquired with deteriorated credit quality	229,521			31,146			138,381			82,507			481,555

	2016
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	51,372		$	49,355		$	11,789		$	25,862		$	138,378
Provision for loan and lease losses	1,958			32,296			824			9,346			44,424
Decrease in FDIC loss share receivable	(34		)	(50		)	(1,090		)	(323		)	(1,497		)
Transfer of balance to OREO and other	(868		)	(519		)	(141		)	(1,253		)	(2,781		)
Charge-offs	(4,338		)	(21,645		)	(313		)	(13,543		)	(39,839		)
Recoveries	1,141			1,502			180			3,211			6,034
Allowance for loan and lease losses at end of period	$	49,231		$	60,939		$	11,249		$	23,300		$	144,719
Reserve for unfunded commitments at beginning of period	$	4,167		$	6,106		$	830		$	3,042		$	14,145
Reversal of provision for unfunded commitments	(960		)	(1,569		)	(173		)	(202		)	(2,904		)
Reserve for unfunded commitments at end of period	$	3,207		$	4,537		$	657		$	2,840		$	11,241
Allowance on loans individually evaluated for impairment	$	1,378		$	21,413		$	144		$	1,358		$	24,293
Allowance on loans collectively evaluated for impairment	25,248			37,206			4,223			17,537			84,214
Allowance on loans acquired with deteriorated credit quality	22,605			2,320			6,882			4,405			36,212
Loans and leases, net of unearned income:
Balance at end of period	$	6,846,549		$	4,060,032		$	1,267,400		$	2,890,990		$	15,064,971
Balance at end of period individually evaluated for impairment	61,006			220,995			4,312			16,467			302,780
Balance at end of period collectively evaluated for impairment	6,504,875			3,806,305			1,140,136			2,780,689			14,232,005
Balance at end of period acquired with deteriorated credit quality	280,668			32,732			122,952			93,834			530,186

Portfolio Segment Risk Factors

Commercial real estate loans include loans to commercial customers for long-term financing of land and buildings or for land development or construction of a building. These loans are repaid through revenues from operations of the businesses, rents of properties, sales of properties and refinances. Commercial and industrial loans represent loans to commercial customers to finance general working capital needs, equipment purchases and other projects where repayment is derived from cash flows resulting from business operations. The Company originates commercial business loans on a secured and, to a lesser extent, unsecured basis.

Residential mortgage loans consist of loans to consumers to finance a primary residence. The vast majority of the residential mortgage loan portfolio is comprised of non-conforming 1-4 family mortgage loans secured by properties located in the Company's market areas and originated under terms and documentation that permit their sale in a secondary market.

Consumer loans are offered by the Company in order to provide a full range of retail financial services to its customers and include home equity, credit card and other direct consumer installment loans. The Company originates substantially all of its consumer loans in its primary market areas. Loans in the consumer segment are sensitive to unemployment and other key consumer economic measures.

Credit Quality

The Company utilizes an asset risk classification system in accordance with guidelines established by the Federal Reserve Board as part of its efforts to monitor commercial asset quality. “Special mention” loans are defined as loans where known information about possible credit problems of the borrower cause management to have some doubt as to the ability of these borrowers to comply with the present loan repayment terms and which may result in future disclosure of these loans as non-performing. For assets with identified credit issues, the Company has two primary classifications for problem assets: “substandard” and “doubtful.”

Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full satisfaction of the loan balance outstanding questionable, which makes probability of loss higher based on currently existing facts, conditions, and values. Loans classified as "Loss" have been identified as uncollectible and in most cases these loans will be charged off in the subsequent reporting period. Loans classified as substandard, doubtful, and loss are collectively referred to as classified loans. Criticized loans include all classified loans, as well as loans classified as special mention. Loans classified as “Pass” do not meet the criteria set forth for special mention, substandard, doubtful, or loss classification and are not considered criticized or classified. Asset risk classifications are determined at origination or acquisition and reviewed on an ongoing basis. Risk classifications are changed if, in the opinion of management, the risk profile of the customer has changed since the last review of the loan relationship.

The Company’s investment in loans by credit quality indicator is presented in the following tables. Asset risk classifications for commercial loans reflect the classification as of December 31, 2018 and 2017, respectively. Credit quality information in the tables below includes total loans acquired (including acquired impaired loans) at the net loan balance, after the application of premiums/discounts, at December 31, 2018 and 2017. Loan premiums/discounts represent the adjustment of acquired loans to fair value at the acquisition date, as adjusted for income accretion and changes in cash flow estimates in subsequent periods.

Loan delinquency is the primary credit quality indicator that the Company utilizes to monitor consumer asset quality.

	December 31, 2018										December 31, 2017
(Dollars in thousands)	Pass		Special Mention		Sub- standard		Doubtful		Total		Pass		Special Mention		Sub- standard		Doubtful		Loss		Total
Commercial real estate - construction	$	1,182,554	$	1,062	$	12,740	$	10	$	1,196,366	$	1,189,490	$	20,351	$	30,541	$	14	$	—	$	1,240,396
Commercial real estate - owner-occupied	2,328,999		25,526		41,297		—		2,395,822		2,234,151		82,114		56,590		2,466		—		2,375,321
Commercial real estate - non-owner-occupied	5,687,963		78,009		26,512		3,633		5,796,117		5,258,638		19,311		42,702		1,744		118		5,322,513
Commercial and industrial	5,586,482		52,632		73,853		24,050		5,737,017		4,882,554		88,149		128,961		35,403		—		5,135,067
Total	$	14,785,998	$	157,229	$	154,402	$	27,693	$	15,125,322	$	13,564,833	$	209,925	$	258,794	$	39,627	$	118	$	14,073,297

	December 31, 2018						December 31, 2017
(Dollars in thousands)	Current		30+ Days Past Due		Total		Current		30+ Days Past Due		Total
Residential mortgage	$	4,290,152	$	69,004	$	4,359,156	$	2,962,043	$	94,309	$	3,056,352
Consumer - home equity	2,258,659		46,035		2,304,694		2,250,205		42,070		2,292,275
Consumer - other	721,231		9,412		730,643		645,498		10,759		656,257
Total	$	7,270,042	$	124,451	$	7,394,493	$	5,857,746	$	147,138	$	6,004,884

Impaired Loans

Information on the Company’s investment in impaired loans, which include all TDRs and all other non-accrual loans evaluated or measured individually for impairment for purposes of determining the ALLL, is presented in the following tables as of and for the periods indicated.

	December 31, 2018
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	10,261	$	9,262	$	—		$	9,189	$	496
Commercial real estate - owner-occupied	25,037		19,044		—			19,559		807
Commercial real estate - non-owner-occupied	15,265		14,288		—			14,873		590
Commercial and industrial	55,554		43,886		—			47,268		2,422
Residential mortgage	1,244		1,221		—			1,261		46
Consumer - home equity	4,183		4,176		—			2,867		39
With an allowance recorded:
Commercial real estate - construction	228		140		(11		)	148		1
Commercial real estate - owner-occupied	5,032		4,773		(520		)	4,976		196
Commercial real estate - non-owner-occupied	6,445		6,398		(105		)	6,229		294
Commercial and industrial	46,387		27,915		(12,646		)	40,653		795
Residential mortgage	5,870		5,358		(145		)	5,494		225
Consumer - home equity	29,284		28,818		(2,427		)	27,911		1,202
Consumer - other	4,956		4,446		(488		)	4,822		273
Total	$	209,746	$	169,725	$	(16,342	)	$	185,250	$	7,386
Total commercial loans and leases	$	164,209	$	125,706	$	(13,282	)	$	142,895	$	5,601
Total mortgage loans	7,114		6,579		(145		)	6,755		271
Total consumer loans	38,423		37,440		(2,915		)	35,600		1,514

	December 31, 2017
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	13,763	$	13,013	$	—		$	9,104	$	441
Commercial real estate - owner-occupied	50,867		44,482		—			53,282		1,389
Commercial real estate - non-owner-occupied	15,370		14,975		—			15,127		692
Commercial and industrial	103,013		70,254		—			92,312		2,279
Residential mortgage	2,004		2,001		—			2,044		85
Consumer - home equity	5,906		5,634		—			5,747		231
Consumer - other	75		75		—			11		1
With an allowance recorded:
Commercial real estate - construction	238		156		(19		)	197		6
Commercial real estate - owner-occupied	13,314		13,287		(949		)	13,498		414
Commercial real estate - non-owner-occupied	6,051		5,872		(620		)	6,196		154
Commercial and industrial	35,306		32,162		(12,736		)	42,874		1,220
Residential mortgage	5,179		4,748		(172		)	4,861		180
Consumer - home equity	27,189		26,575		(2,358		)	23,546		1,007
Consumer - other	5,354		4,893		(498		)	4,455		269
Total	$	283,629	$	238,127	$	(17,352	)	$	273,254	$	8,368
Total commercial loans and leases	$	237,922	$	194,201	$	(14,324	)	$	232,590	$	6,595
Total mortgage loans	7,183		6,749		(172		)	6,905		265
Total consumer loans	38,524		37,177		(2,856		)	33,759		1,508

	December 31, 2016
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	38	$	38	$	—		$	28	$	—
Commercial real estate - owner-occupied	25,180		25,074		—			25,890		647
Commercial real estate - non-owner-occupied	15,654		14,794		—			19,587		879
Commercial and industrial	148,311		138,202		—			111,261		3,418
With an allowance recorded:
Commercial real estate - construction	1,946		1,946		(649		)	1,839		54
Commercial real estate - owner-occupied	17,580		17,429		(640		)	16,668		493
Commercial real estate - non-owner-occupied	1,743		1,725		(89		)	1,782		95
Commercial and industrial	84,197		82,793		(21,413		)	78,270		2,858
Residential mortgage	4,628		4,312		(144		)	4,377		161
Consumer - home equity	13,916		13,267		(993		)	10,237		435
Consumer - other	3,485		3,200		(365		)	2,425		151
Total	$	316,678	$	302,780	$	(24,293	)	$	272,364	$	9,191
Total commercial loans and leases	$	294,649	$	282,001	$	(22,791	)	$	255,325	$	8,444
Total mortgage loans	4,628		4,312		(144		)	4,377		161
Total consumer loans	17,401		16,467		(1,358		)	12,662		586

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Transfers and Servicing of Financial Assets (Including Mortgage Banking Activity)

12 Months Ended

Dec. 31, 2018

Transfers and Servicing [Abstract]

Transfers and Servicing of Financial Assets (Including Mortgage Banking Activity)

TRANSFERS AND SERVICING OF FINANCIAL ASSETS (INCLUDING MORTGAGE BANKING ACTIVITY)

Commercial Banking Activity

The unpaid principal balances of loans serviced for others were $1.6 billion and $1.3 billion at December 31, 2018 and 2017, respectively. Custodial escrow balances maintained in connection with the foregoing portfolio of loans serviced for others, and included in demand deposits, were not significant at December 31, 2018 and 2017.

Mortgage Banking Activity

IBERIABANK through one of its reportable segments, Mortgage, originates mortgage loans for sale into the secondary market. The loans originated primarily consist of residential first mortgages that conform to standards established by the GSEs, but can also consist of junior lien loans secured by residential property. These sales are primarily to private companies that are unaffiliated with the GSEs on a servicing-released basis. Changes to the carrying amount of mortgage loans held for sale at December 31 are presented in the following table.

(Dollars in thousands)	2018			2017			2016
Balance at beginning of period	$	134,916		$	157,041		$	166,247
Originations and purchases	1,469,847			1,844,358			2,460,033
Sales, net of gains	(1,498,386		)	(1,859,565		)	(2,451,459		)
Mortgage loans transferred from (transferred to) held for investment	1,058			(6,918		)	(14,017		)
Other	299			—			(3,763		)
Balance at end of period	$	107,734		$	134,916		$	157,041

The following table details the components of mortgage income for the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Fair value changes of derivatives and mortgage loans held for sale:
Mortgage loans held for sale and derivatives	$	6,490		$	(7,047	)	$	1,361
Derivative settlements, net	(4,039		)	1,229			(6,640		)
Gains on sales	42,887			68,255			87,925
Servicing and other income, net	1,339			1,133			1,207
Other losses	(253		)	—			—
	$	46,424		$	63,570		$	83,853

Servicing Rights

Servicing rights are recorded at the lower of cost or market value in “other assets” on the Company's consolidated balance sheets and amortized over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights had the following carrying values as of the periods indicated:

	December 31, 2018							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(Dollars in thousands)
Mortgage servicing rights	$	13,612	$	(4,806	)	$	8,806	$	9,588	$	(3,931	)	$	5,657

In addition, there was an insignificant amount of non-mortgage servicing rights related to SBA loans as of December 31, 2018 and 2017.

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Premises and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Premises and Equipment

PREMISES AND EQUIPMENT

Premises and equipment consisted of the following at December 31:

(Dollars in thousands)	2018			2017
Land	$	81,194		$	89,137
Buildings	241,284			261,994
Furniture, fixtures and equipment	137,469			129,866
Total premises and equipment	459,947			480,997
Accumulated depreciation	(159,440		)	(149,584		)
Total premises and equipment, net	$	300,507		$	331,413

Depreciation expense was $22.4 million, $21.0 million, and $20.8 million, for the years ended December 31, 2018, 2017, and 2016, respectively.

The Company actively engages in leasing office space available in buildings it owns. Leases have various terms, generally ranging up to 5 years. Total lease income for the years ended December 31, 2018, 2017, and 2016 was $2.1 million, $2.4 million, and $2.8 million, respectively. Income from leases is reported as a reduction in occupancy and equipment expense. The total allocated cost of the portion of the buildings held for lease at December 31, 2018 and 2017 was $7.0 million and $6.9 million, respectively, with related accumulated depreciation of $2.7 million and $2.5 million, respectively.

The Company leases certain branch and corporate offices, land and ATM facilities through operating leases with terms that range from less than one year to 50 years, some of which contain renewal options and escalation clauses under various terms. In addition, some have early termination clauses. Rent expense for the years ended December 31, 2018, 2017, and 2016 totaled $22.5 million, $19.1 million, and $16.6 million, respectively.

Minimum future annual rent commitments under lease agreements for the periods indicated are as follows:

(Dollars in thousands)
2019	$	21,750
2020	19,991
2021	16,921
2022	14,195
2023	9,182
2024 and thereafter	34,652
	$	116,691

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Goodwill and Other Acquired Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Acquired Intangible Assets

GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

Goodwill

Changes to the carrying amount of goodwill by reporting unit for the years ended December 31, 2018 and 2017 are provided in the following table.

(Dollars in thousands)	IBERIABANK		Mortgage		LTC		Total
Balance, December 31, 2016	$	698,513	$	23,178	$	5,165	$	726,856
Goodwill acquired and adjustments during the year	462,046		—		—		462,046
Balance, December 31, 2017	$	1,160,559	$	23,178	$	5,165	$	1,188,902
Goodwill acquired and adjustments during the year	43,251		—		3,380		46,631
Balance, December 31, 2018	$	1,203,810	$	23,178	$	8,545	$	1,235,533

On March 23, 2018, the Company completed its acquisition of Gibraltar. In connection with the acquisition, the Company recorded $64.3 million of goodwill based on fair value estimates of the assets acquired and liabilities assumed in the business combination as of December 31, 2018. On January 12, 2018, the Company's subsidiary, LTC, completed its acquisition of SolomonParks. In connection with the acquisition, LTC recorded $3.4 million of goodwill based on fair value estimates. In addition, measurement period adjustments to fair value estimates related to the acquisition of Sabadell United were updated during 2018, reducing goodwill by $21.0 million. The accounting for the acquisitions of Gibraltar, SolomonParks and Sabadell United was complete as of December 31, 2018. See Note 3 for additional information regarding these acquisitions.

The Company performed the required annual goodwill impairment test as of October 1, 2018. The Company’s annual impairment test did not indicate impairment in any of the Company’s reporting units as of the testing date. Following the testing date, management evaluated the events and changes that could indicate that goodwill might be impaired and concluded that a subsequent test was not necessary.

Title Plant

The Company held title plant assets recorded in “other intangible assets” on the Company's consolidated balance sheets totaling $6.8 million on December 31, 2018 and $6.7 million at December 31, 2017. The increase in title plant assets was the result of the SolomonParks acquisition during the first quarter of 2018. No events or changes in circumstances occurred during 2018 to suggest the carrying value of the title plant was not recoverable.

Intangible assets subject to amortization

In connection with the acquisition of Gibraltar, the Company recorded $18.5 million of core deposit intangible assets. Core deposit intangible assets are subject to amortization over a ten year period. In connection with the acquisition of SolomonParks, the Company recorded $156 thousand of non-compete agreement intangible assets. Non-compete agreement intangible assets are subject to amortization over a five year period. Definite-lived intangible assets had the following carrying values included in “other intangible assets” on the Company’s consolidated balance sheets as of December 31:

	2018							2017
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangible assets	$	136,183	$	(63,213	)	$	72,970	$	127,957	$	(51,971	)	$	75,986
Customer relationship intangible asset	1,385		(1,323		)	62		1,143		(996		)	147
Non-compete agreement	206		(72		)	134		63		(39		)	24
Total	$	137,774	$	(64,608	)	$	73,166	$	129,163	$	(53,006	)	$	76,157

The related amortization expense of intangible assets is as follows:

(Dollars in thousands)	Amount
Aggregate amortization expense for the years ended December 31:
2016	$	8,415
2017	12,590
2018	21,678

(Dollars in thousands)
Estimated amortization expense for the years ended December 31:
2019	$	18,363
2020	14,500
2021	10,208
2022	7,711
2023	6,410
2024 and thereafter	15,974

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Derivative Instruments and Other Hedging Activities

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Other Hedging Activities

DERIVATIVE INSTRUMENTS AND OTHER HEDGING ACTIVITIES

The Company enters into derivative financial instruments to manage interest rate risk, exposures related to liquidity and credit risk, and to facilitate customer transactions. The primary types of derivatives utilized by the Company for its risk management strategies include interest rate swap agreements, interest rate collars, interest rate floors, foreign exchange contracts, interest rate lock commitments, forward sales commitments, written and purchased options, and credit derivatives. All derivative instruments are recognized on the consolidated balance sheets as "other assets" or "other liabilities" at fair value, regardless of whether a right of offset exists.

Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company enters into interest rate swap agreements in a cash flow hedge to convert forecasted variable interest payments to a fixed rate on its junior subordinated debt. In addition, the Company has entered into an interest rate collar and interest rate floors and designated the instruments as cash flow hedges of the risk of fluctuations in interest rates, thereby reducing the Company's exposure to variability in cash flows from variable-rate loans.

For cash flow hedges, the effective and ineffective portions of the gain or loss related to the derivative instrument is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. Prior to January 1, 2018, the ineffective portion of gain or loss, if any, was reported in earnings immediately in either "other income" or "other expense," respectively. In applying hedge accounting for derivatives, the Company establishes and documents a method for assessing the effectiveness of the hedging derivative and a measurement approach for determining the ineffective aspect of the hedge upon the inception of the hedge.

For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately.

Information pertaining to outstanding derivative instruments is as follows:

	Balance Sheet Location	Derivative Assets - Fair Value				Balance Sheet Location	Derivative Liabilities - Fair Value
(Dollars in thousands)		December 31, 2018		December 31, 2017			December 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	3,469	$	—	Other liabilities	$	—	$	—
Total derivatives designated as hedging instruments under ASC Topic 815		$	3,469	$	—		$	—	$	—
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts:
Customer swaps - upstream	Other assets	$	474	$	12,318	Other liabilities	$	191	$	3,873
Customer swaps - downstream	Other assets	16,946		8,128		Other liabilities	17,812		12,318
Foreign exchange contracts	Other assets	18		7		Other liabilities	18		7
Forward sales contracts	Other assets	630		136		Other liabilities	750		279
Written and purchased options	Other assets	5,490		10,654		Other liabilities	3,310		8,656
Other contracts	Other assets	21		22		Other liabilities	43		21
Total derivatives not designated as hedging instruments under ASC Topic 815		$	23,579	$	31,265		$	22,124	$	25,154
Total		$	27,048	$	31,265		$	22,124	$	25,154

	Derivative Assets - Notional Amount				Derivative Liabilities - Notional Amount
(Dollars in thousands)	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	$	408,500	$	—	$	—	$	108,500
Total derivatives designated as hedging instruments under ASC Topic 815	$	408,500	$	—	$	—	$	108,500
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts:
Customer swaps - upstream	$	919,653	$	644,282	$	701,257	$	574,182
Customer swaps - downstream	701,257		574,182		919,653		644,282
Foreign exchange contracts	1,202		268		1,202		268
Forward sales contracts	1,140		82,347		143,179		142,578
Written and purchased options	229,333		278,638		140,645		165,198
Other contracts	50,527		29,755		85,623		86,744
Total derivatives not designated as hedging instruments under ASC Topic 815	$	1,903,112	$	1,609,472	$	1,991,559	$	1,613,252
Total	$	2,311,612	$	1,609,472	$	1,991,559	$	1,721,752

The Company has entered into risk participation agreements with counterparties to transfer or assume credit exposures related to interest rate derivatives. The notional amounts of risk participation agreements sold were $85.6 million and $86.7 million at December 31, 2018 and 2017, respectively. Assuming all underlying third party customers referenced in the swap contracts defaulted at December 31, 2018 and December 31, 2017, the exposure from these agreements would not be material based on the fair value of the underlying swaps.

The Company is party to collateral agreements with certain derivative counterparties. Such agreements require that the Company maintain collateral based on the fair values of individual derivative transactions. In the event of default by the Company, the counterparty would be entitled to the collateral.

At December 31, 2018, the Company was not required to post collateral due to the Company's derivative position at the balance sheet date. At December 31, 2017, the Company was required to post $552 thousand in cash or securities as collateral for its derivative transactions, which is included in "interest-bearing deposits in banks" on the Company’s consolidated balance sheets. Effective January 3, 2017, the Chicago Mercantile Exchange and LCH.Clearnet Limited amended their rulebooks to legally characterize variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives' exposure rather than collateral against the exposures. In light of changes to the aforementioned rulebooks, the Board of Governors of the Federal Reserve System, the OCC and the FDIC issued guidance effective August 14, 2017, which is consistent with the SEC's accounting guidance, that allows institutions to treat centrally-cleared derivatives as settled for purposes of the capital rule. At December 31, 2018 and 2017, the Company was required to post $35.8 million and $5.1 million, respectively, in variation margin payments for its derivative transactions, which is required to be netted against the fair value of the derivatives in "other assets/other liabilities" on the consolidated balance sheets. The Company does not anticipate additional assets will be required to be posted as collateral, nor does it believe additional assets would be required to settle its derivative instruments immediately if contingent features were triggered at December 31, 2018. The Company’s master netting agreements represent written, legally enforceable bilateral agreements that (1) create a single legal obligation for all individual transactions covered by the master agreement and (2) in the event of default, provide the non-defaulting counterparty the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to promptly liquidate or set-off collateral posted by the defaulting counterparty. As permitted by U.S. GAAP, the Company does not offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against recognized fair value amounts of derivatives executed with the same counterparty under a master netting agreement.

The following table reconciles the gross amounts presented in the consolidated balance sheets to the net amounts that would result in the event of offset.

	December 31, 2018
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet					Net
(Dollars in thousands)			Derivatives			Collateral  (1)
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	3,469	$	—		$	—	$	3,469
Interest rate contracts not designated as hedging instruments	17,420		(619		)	—		16,801
Written and purchased options	3,285		—			—		3,285
Total derivative assets subject to master netting arrangements	$	24,174	$	(619	)	$	—	$	23,555
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	18,003	$	(619	)	$	—	$	17,384
Written and purchased options	3,285		—			—		3,285
Total derivative liabilities subject to master netting arrangements	$	21,288	$	(619	)	$	—	$	20,669

^{(1)  Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.} 

	December 31, 2017
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet						Net
(Dollars in thousands)			Derivatives			Collateral (1)
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts not designated as hedging instruments	$	20,446	$	(12,469	)	$	—		$	7,977
Written and purchased options	8,610		—			—			8,610
Total derivative assets subject to master netting arrangements	$	29,056	$	(12,469	)	$	—		$	16,587
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	16,191	$	(12,469	)	$	(552	)	$	3,170
Total derivative liabilities subject to master netting arrangements	$	16,191	$	(12,469	)	$	(552	)	$	3,170

^{(1)  Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.} 

During the years ended December 31, 2018 and 2017, the Company has not reclassified into earnings any gain or loss as a result of the discontinuance of cash flow hedges because it was probable the original forecasted transaction would not occur by the end of the originally specified term.

At December 31, 2018, the Company does not expect to reclassify a material amount from accumulated other comprehensive income into interest income over the next twelve months for derivatives that will be settled.

At December 31, 2018, 2017, and 2016, and for the years then ended, information pertaining to the effect of the hedging instruments on the consolidated financial statements is as follows:

		Amount of Gain (Loss) Recognized in OCI, net of taxes							Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income, net of taxes									Location of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)		Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)
		Total		Including Component		Excluding Component				Total			Including Component			Excluding Component					Total		Including Component		Excluding Component
(Dollars in thousands)		For the Year Ended December 31,
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships		2018								2018										2018
	Interest rate contracts	$	4,416	$	4,835	$	(419	)	Interest expense	$	(196	)	$	(150	)	$	(46	)	Interest expense		$	—	$	—	$	—
Total		$	4,416	$	4,835	$	(419	)		$	(196	)	$	(150	)	$	(46	)			$	—	$	—	$	—

														Location of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)		Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)
			Amount of Gain (Loss) Recognized in OCI, net of taxes					Location of Gain (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income, net of taxes
(Dollars in thousands)		For the Years Ended December 31,
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships		2017			2016				2017			2016			2017		2016
	Interest rate contracts	$	(611	)	$	(328	)	Interest expense	$	(390	)	$	50	Interest expense	$	—	$	—
Total		$	(611	)	$	(328	)		$	(390	)	$	50		$	—	$	—

Information pertaining to the effect of derivatives not designated as hedging instruments on the consolidated financial statements as of December 31, is as follows:

	Location of Gain (Loss) Recognized in  Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
(Dollars in thousands)		2018			2017			2016
Interest rate contracts (1)	Other income	$	6,962		$	4,750		$	8,830
Foreign exchange contracts	Other income	29			43			15
Forward sales contracts	Mortgage income	4,064			(4,115		)	(1,731		)
Written and purchased options	Mortgage income	180			(2,028		)	(327		)
Other contracts	Other income	(24		)	51			17
Total		$	11,211		$	(1,299	)	$	6,804

^{(1) Includes fees associated with customer interest rate contracts.} 

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Deposits

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

Deposits

DEPOSITS

Deposits at December 31 are summarized as follows:

(Dollars in thousands)	2018		2017
Non-interest-bearing deposits	$	6,542,490	$	6,209,925
Negotiable order of withdrawal ("NOW")	4,514,113		4,348,939
Money market deposits accounts ("MMDA")	8,237,291		7,674,291
Savings deposits	828,914		846,074
Time deposits	3,640,623		2,387,488
	$	23,763,431	$	21,466,717

Total time deposits summarized by denomination at December 31 are as follows:

(Dollars in thousands)	2018		2017
Time deposits less than or equal to $250,000	$	2,522,660	$	1,768,047
Time deposits greater than $250,000	1,117,963		619,441
	$	3,640,623	$	2,387,488

A schedule of maturities of all time deposits as of December 31, 2018 is as follows:

(Dollars in thousands)
Years ending December 31,
2019	$	2,504,515
2020	876,740
2021	159,877
2022	76,486
2023	12,684
2024 and thereafter	10,321
	$	3,640,623

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Short-Term Borrowings

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Short-Term Borrowings

SHORT-TERM BORROWINGS

Short-term borrowings at December 31 are summarized as follows:

(Dollars in thousands)	2018		2017
Federal Home Loan Bank advances	$	1,167,000	$	475,000
Securities sold under agreements to repurchase	315,882		516,297
	$	1,482,882	$	991,297

The levels of FHLB advances and securities sold under agreements to repurchase can fluctuate significantly on a day-to-day basis, depending on funding needs and which sources are used to satisfy those needs. All such arrangements are considered typical of the banking and brokerage industries and are accounted for as borrowings.

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily and are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities.

Additional information on the Company’s short-term borrowings for the years indicated is as follows:

(Dollars in thousands)	2018			2017
Outstanding at December 31	$	1,482,882		$	991,297
Maximum month-end outstanding balance	1,482,882			2,197,105
Average daily outstanding balance	1,052,088			905,755
Average rate during the year	1.40		%	0.83		%
Average rate at year end	2.12		%	0.82		%

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Long-Term Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Long-Term Debt

LONG-TERM DEBT

Long-term debt at December 31 is summarized as follows:

(Dollars in thousands)	2018		2017
IBERIABANK:
Federal Home Loan Bank advances, 0.864% to 7.040%	$	986,027	$	1,331,579
Notes payable - Investment fund contribution, 7 to 35 year term, 1.28% to 6.82% fixed, 7 to 30 year term, 1.28% to 6.82% fixed, respectively	60,014		44,146
	1,046,041		1,375,725
IBERIABANK Corporation (junior subordinated debt):
Statutory Trust I, 3 month LIBOR (1), plus 3.25%, issued November 2002	10,310		10,310
Statutory Trust II, 3 month LIBOR (1), plus 3.15%, issued June 2003	10,310		10,310
Statutory Trust III, 3 month LIBOR (1), plus 2.00%, issued September 2004	10,310		10,310
Statutory Trust IV, 3 month LIBOR (1), plus 1.60%, issued October 2006	15,464		15,464
American Horizons Statutory Trust I, 3 month LIBOR (1), plus 3.15%, assumed January 2005	6,186		6,186
Statutory Trust V, 3 month LIBOR (1), plus 1.435%, issued June 2007	10,310		10,310
Statutory Trust VI, 3 month LIBOR (1), plus 2.75%, issued November 2007	12,372		12,372
Statutory Trust VII, 3 month LIBOR (1), plus 2.54%, issued November 2007	13,403		13,403
Statutory Trust VIII, 3 month LIBOR (1), plus 3.50%, issued March 2008	7,217		7,217
OMNI Trust I, 3 month LIBOR (1), plus 3.30%, assumed May 2011	8,248		8,248
OMNI Trust II, 3 month LIBOR (1), plus 2.79%, assumed May 2011	7,732		7,732
GA Commerce Trust II, 3 month LIBOR (1), plus 1.64%, assumed May 2015	8,248		8,248
	120,110		120,110
	$	1,166,151	$	1,495,835

⁽¹⁾  The interest rate on the Company’s long-term debt indexed to LIBOR is based on the 3-month LIBOR rate. The 3-month LIBOR rate was2.81%and 1.69% at December 31, 2018 and 2017, respectively.

Outstanding FHLB advances are a mix of bullet and amortizing structures. Amortizing FHLB advances are amortized over periods ranging from 1.3 to 20.1 years,and have a balloon feature at maturity. Advances are collateralized by a blanket pledge of eligible loans, subject to contractual adjustments which reduce the borrowing base, as well as a secondary pledge of FHLB stock and FHLB demand deposits, the amount of which can exceed the amounts borrowed based on contractually required adjustments. Total additional FHLB advances for both short-term borrowings and long-term debt at December 31, 2018 were$7.0 billionunder the blanket floating lien including $1.9 billion from pledges of investment securities. The weighted average advance rate was 2.15%and 1.48% at December 31, 2018 and 2017, respectively.

Junior subordinated debt consists of a total of $120.1 million in Junior Subordinated Deferrable Interest Debentures of the Company issued to statutory trusts that were funded by the issuance of floating rate capital securities of the trusts. The terms of the junior subordinated debt are 30 years, and they are callable at par by the Company any time after 5 years. Interest is payable quarterly and may be deferred at any time at the election of the Company for up to 20 consecutive quarterly periods. During a deferral period, the Company is subject to certain restrictions, including being prohibited from declaring and paying dividends to its common shareholders.

Advances and long-term debt at December 31, 2018 have maturities or call dates in future years as follows:

(Dollars in thousands)
2019	$	309,116
2020	233,465
2021	125,255
2022	10,581
2023	58,762
2024 and thereafter	428,972
	$	1,166,151

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Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The provision for income tax expense consists of the following for the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Current expense (benefit)	$	(115,195	)	$	84,827		$	103,335
Deferred expense (benefit)	153,518			71,257			(16,654		)
Tax credits	(5,179		)	(10,845		)	(7,112		)
Amortization on qualified affordable housing tax credits	—			5,227			4,185
Tax benefits attributable to items charged to equity and goodwill	(866		)	—			1,439
	$	32,278		$	150,466		$	85,193

There was a balance receivable of $208.0 million and $4.5 million for federal and state income taxes at December 31, 2018 and 2017, respectively. The provision for federal income taxes differs from the amount computed by applying the federal income tax statutory rate of 21 percent for the year ended December 31, 2018 and 35 percent for the years ended December 31, 2017 and 2016 on income before income tax expense as indicated in the following analysis for the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Federal tax based on statutory rate	$	84,531		$	102,508		$	95,189
Increase (decrease) resulting from:
Effect of tax-exempt income	(5,801		)	(9,435		)	(8,203		)
Interest and other nondeductible expenses	6,464			9,605			3,250
State taxes, net of federal benefit	12,459			6,970			4,770
Tax credits	(5,179		)	(10,845		)	(7,112		)
Amortization on qualified affordable housing tax credits	—			5,227			4,185
Other (1)	(60,196		)	46,436			(6,886		)
	$	32,278		$	150,466		$	85,193
Effective tax rate	8.0		%	51.4		%	31.3		%

⁽¹⁾ The composition of other items resulting in a net tax benefit of $60.2 million for the year ended December 31, 2018 included a $6.6 million expense related to the finalization of accounting for the Sabadell United acquisition and its net impact from the remeasurement of deferred tax assets as a result of the passage of the Tax Cuts and Jobs Act (the "Tax Act"). In connection with filing its 2017 income tax returns, the Company recorded a non-core, permanent net income tax benefit of $65.3 million as a result of deductions claimed on the 2017 income tax returns associated with unrealized losses on securities and loans and depreciation on real and personal property.

The composition of other items resulting in a net tax expense of $46.4 million for the year ending December 31, 2017 included $51.0 million related to the estimated net impact from the remeasurement of deferred tax assets and liabilities as a result of the passage of the Tax Act in December 2017. This was partially offset by $3.0 million related to equity based compensation, $1.0 million resulting from the reversal of a prior year deferred tax asset impairment, and a $600 thousand benefit due to a deferred REIT distribution.

The net deferred tax asset (liability) at December 31 is as follows:

(Dollars in thousands)	2018			2017
Deferred tax asset:
NOL and credit carryforward	$	42,837		$	8,364
Allowance for credit losses	38,571			38,402
Deferred compensation	5,482			5,876
Basis difference in acquired assets and liabilities	9,228			43,391
Unrealized losses on loans and securities	—			12,198
OREO	32			2,639
Other	19,395			22,719
	115,545			133,589
Deferred tax liability:
Unrealized gains on loans and securities	(98,807		)	—
FHLB stock	—			(300		)
Premises and equipment	(10,626		)	(3,723		)
Acquisition intangibles	(9,757		)	(8,151		)
Deferred loan costs	(5,814		)	(3,114		)
Basis difference in acquired assets and liabilities	(17,628		)	(31,309		)
Lease receivable	(37,844		)	—
Other	(6,485		)	(4,885		)
	(186,961		)	(51,482		)
Net deferred tax (liability) asset	$	(71,416	)	$	82,107

At December 31, 2018, the Company's cumulative net operating loss carryforwards were $45.0 million. These net operating loss carryforwards arising from acquisitions during 2015 expire over a 20-year period and will be utilized subject to annual Internal Revenue Code Section 382 limitations. No benefit was recognized at acquisition for net operating losses that will expire unused due to the IRS limitations.

At December 31, 2018, the Company had recorded a net deferred tax liability position. The Company determined that the net deferred tax asset at December 31, 2017 was more likely than not to be realized based on an assessment of all available positive and negative evidence, and therefore, no valuation allowance was recorded.

The Company does not believe it has any unrecognized tax benefits included in its consolidated financial statements. The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations.

During the years ended December 31, 2018 and 2017, an immaterial amount of interest and penalty expense associated with state filings was recorded. During the year ended December 31, 2016, the Company did not recognize any interest or penalties in its consolidated financial statements.

On December 22, 2017, the Tax Act was signed into law. Under ASC 740, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. In the case of U.S. federal income taxes, the enactment date is the date the bill becomes law (i.e., upon presidential signature). Among other provisions, the most significant to the Company is the reduction of the corporate income tax rate from 35% to 21%. With respect to the legislation, the Company recognized a provisional one-time increase in tax expense of $51.0 million as of December 31, 2017 due to a re-measurement of deferred tax assets and liabilities resulting from the decrease in the corporate income tax rate. During the year ended December 31, 2018, the Company recognized a total adjustment of $6.6 million in income tax expense due to the write-down of deferred tax assets associated with the finalization of the accounting for the Sabadell United acquisition and the related impact of the Tax Act on those adjustments. This adjustment increased the year-to-date effective tax rate by 1.6% from 6.4% to 8.0%. Consistent with the guidance provided under ASC 740, the Company recorded impacts from enactment of the Tax Act in the fourth quarter of 2017 subject to Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"). SAB 118 provided a measurement period not to extend beyond one year of the enactment date to adjust the accounting for certain elements of the tax reform. The Company filed its 2017 federal and state tax returns in the fourth quarter of 2018, after which it was able to finalize deferred tax balances subject to the remeasurement under the Tax Act. The accounting for the tax effects of the Tax Act was complete as of December 22, 2018.

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Shareholders' Equity, Capital Ratios and Other Regulatory Matters

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

Shareholders' Equity, Capital Ratios and Other Regulatory Matters

SHAREHOLDERS' EQUITY, CAPITAL RATIOS AND OTHER REGULATORY MATTERS

Preferred Stock

The following table presents a summary of the Company's non-cumulative perpetual preferred stock at December 31:

							2018		2017
	Issuance Date	Earliest Redemption Date	Annual Dividend Rate		Liquidation Amount		Carrying Amount		Carrying Amount
(Dollars in thousands)
Series B Preferred Stock	8/5/2015	8/1/2025	6.625	%	$	80,000	$	76,812	$	76,812
Series C Preferred Stock	5/9/2016	5/1/2026	6.600	%	57,500		55,285		55,285
					$	137,500	$	132,097	$	132,097

Dividends will accrue and be payable on the Series B Preferred Stock, if declared by the Company's Board of Directors, and will be paid semi-annually, in arrears, at an annual rate equal to 6.625% for each period from the issuance date up to and including August 1, 2025 and will be paid quarterly, in arrears, at an annual rate equal to three-month LIBOR plus 4.262% for each period after August 1, 2025. The Company may redeem the Series B Preferred Stock at its option, subject to regulatory approval, as described in the Company’s Registration Statement on Form 8-A, filed with the Securities and Exchange Commission on August 5, 2015.

Dividends will accrue and be payable on the Series C Preferred Stock, if declared by the Company's Board of Directors, and will be paid quarterly, in arrears, at an annual rate equal to (i) 6.600% for each period from the issuance date to May 1, 2026 and (ii) three-month LIBOR plus 4.920% for each period on or after May 1, 2026. The Company may redeem the Series C Preferred Stock at its option, subject to regulatory approval, as described in the Company’s Registration Statement on Form 8-A, filed with the Securities and Exchange Commission on May 9, 2016.

Common Stock

During the second quarter of 2018, the Company's Board of Directors authorized the repurchase of up to 1,137,500 shares of IBERIABANK Corporation's outstanding common stock, which was completed on November 5, 2018. On November 5, 2018, the Board of Directors authorized a new repurchase plan of up to 2,765,000 shares of the Company's common stock. Stock repurchases under this program will be made from time to time, on the open market or in privately negotiated transactions. The timing of these repurchases will depend on market conditions and other requirements. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and expires during the fourth quarter of 2020. The program may be extended, modified, suspended, or discontinued at any time. During 2018, the Company repurchased 1,972,500 common shares, at a weighted average price of $75.46 per common share, of which 1,472,500 were repurchased under previously completed plans. At December 31, 2018, there were approximately 2,265,000 remaining shares that may be repurchased under the current Board-approved plan. Subsequent to year-end and through February 21, 2019, the Company repurchased 226,921 common shares for approximately $17.5 million. The Company did not repurchase any common shares during 2017.

On March 23, 2018, as part of the Gibraltar acquisition, the Company issued 2,787,773 shares of common stock. The aggregate value of the acquisition consideration paid by the Company at the time of closing was approximately $214.7 million based on the Company's closing common stock price of $77.00 per share on March 23, 2018. Gibraltar common shareholders received 1.9749 shares of IBERIABANK Corporation common stock for each outstanding share of Gibraltar common stock. Refer to Note 3, Acquisition Activity, for further detail regarding the Gibraltar acquisition.

On December 7, 2016, the Company issued 3,593,750 shares of its common stock at a price of $81.50 per common share. On March 7, 2017, the Company issued 6,100,000 shares of its common stock at a price of $83.00 per common share. Net proceeds from the offerings, after deduction of underwriting discounts, commissions, and direct issuance costs, were $279.2 million and $485.2 million, respectively. The proceeds from these issuances were used to finance the cash portion of the purchase price for the acquisition of Sabadell United. The acquisition, which closed on July 31, 2017, provided for Banco de Sabadell, S.A. to receive 2,610,304 shares of the Company's common stock ($211.0 million based on the Company's closing stock price of $80.85 on that date) and $809.2 million in cash from the two stock issuances. Banco de Sabadell, S.A. sold the 2.6 million shares received as part of acquisition proceeds early in the fourth quarter of 2017. Refer to Note 3, Acquisition Activity, for further detail regarding the Sabadell United acquisition.

Regulatory Capital

The Company and IBERIABANK are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy regulations and the regulatory framework for prompt corrective action, the Company and IBERIABANK, as applicable, must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Management believes that, as of December 31, 2018, the Company and IBERIABANK met all capital adequacy requirements to which they are subject.

As of December 31, 2018, the most recent notification from the FRB categorized IBERIABANK as well-capitalized under the regulatory framework for prompt corrective action (the prompt corrective action requirements are not applicable to the Company). To be categorized as well-capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the notification that management believes have changed that categorization. The Company’s and IBERIABANK’s actual capital amounts and ratios as of December 31 are presented in the following table.

(Dollars in thousands)	2018
	Minimum				Well-Capitalized			Actual
	Amount		Ratio		Amount		Ratio	Amount		Ratio
Tier 1 Leverage
Consolidated	$	1,168,343	4.00	%	N/A		N/A	$	2,812,863	9.63	%
IBERIABANK	1,165,537		4.00		$	1,456,921	5.00	2,733,099		9.38
Common Equity Tier 1 (CET1) (1)
Consolidated	$	1,125,405	4.50	%	N/A		N/A	$	2,680,766	10.72	%
IBERIABANK	1,122,712		4.50		$	1,621,695	6.50	2,733,099		10.95
Tier 1 Risk-Based Capital (1)
Consolidated	$	1,500,540	6.00	%	N/A		N/A	$	2,812,863	11.25	%
IBERIABANK	1,496,949		6.00		$	1,995,932	8.00	2,733,099		10.95
Total Risk-Based Capital (1)
Consolidated	$	2,000,720	8.00	%	N/A		N/A	$	3,084,764	12.33	%
IBERIABANK	1,995,932		8.00		$	2,494,915	10.00	2,888,500		11.58

	2017
	Minimum				Well-Capitalized			Actual
	Amount		Ratio		Amount		Ratio	Amount		Ratio
Tier 1 Leverage
Consolidated	$	1,073,381	4.00	%	N/A		N/A	$	2,509,496	9.35	%
IBERIABANK	1,070,789		4.00		$	1,338,487	5.00	2,437,275		9.10
Common Equity Tier 1 (CET1) (1)
Consolidated	$	1,011,732	4.50	%	N/A		N/A	$	2,377,398	10.57	%
IBERIABANK	1,009,553		4.50		$	1,458,243	6.50	2,437,275		10.86
Tier 1 Risk-Based Capital (1)
Consolidated	$	1,348,977	6.00	%	N/A		N/A	$	2,509,496	11.16	%
IBERIABANK	1,346,070		6.00		$	1,794,760	8.00	2,437,275		10.86
Total Risk-Based Capital (1)
Consolidated	$	1,798,635	8.00	%	N/A		N/A	$	2,780,095	12.37	%
IBERIABANK	1,794,760		8.00		$	2,243,450	10.00	2,591,374		11.55

⁽¹⁾ Minimum capital ratios are subject to a capital conservation buffer. In order to avoid limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. This capital conservation buffer is calculated as the lowest of the differences between the actual CET1 ratio, Tier 1 Risk-Based Capital Ratio, and Total Risk-Based Capital ratio and the corresponding minimum ratios. At December 31, 2018, the required minimum capital conservation buffer was 1.875%, and will increase by 0.625% and be fully phased in on January 1, 2019 at 2.50%. At December 31, 2018, the capital conservation buffers of the Company and IBERIABANK were 4.33% and 3.58%, respectively.

Restrictions on Dividends, Loans and Advances

IBERIABANK is restricted under applicable laws in the payment of dividends to an amount equal to current year earnings plus undistributed earnings for the immediately preceding year, unless prior permission is received from the Commissioner of Financial Institutions for the State of Louisiana. Dividends payable by IBERIABANK in 2019 without permission are limited to 2019 earnings plus an additional $130.0 million.

Funds available for loans or advances by IBERIABANK to the Parent amounted to $288.9 million. In addition, any dividends that may be paid by IBERIABANK to the Parent would be restricted if IBERIABANK did not comply with the above-described capital conservation buffer requirements and would be prohibited if the effect thereof would cause IBERIABANK’s capital to be reduced below applicable minimum capital requirements.

During any deferral period under the Company’s junior subordinated debt, the Company would be prohibited from declaring and paying dividends to preferred and common shareholders. See Note 13 to the consolidated financial statements for additional information.

In addition, so long as any shares of Series B Preferred Stock or Series C Preferred Stock remain outstanding, the Company is prohibited from paying dividends on common stock if the required payments on the Series B Preferred Stock and Series C Preferred Stock have not been made.

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Earnings Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Share-based payment awards that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities that are included in the calculation of earnings per share using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated for common stock and participating securities according to dividends declared and participating rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends.

The following table presents the calculation of basic and diluted earnings per share for the periods indicated.

	For the Years Ended December 31,
(In thousands, except per share data)	2018			2017			2016
Earnings per common share - basic
Net income	$	370,249		$	142,413		$	186,777
Preferred stock dividends	(9,095		)	(9,095		)	(7,977		)
Dividends and undistributed earnings allocated to unvested restricted shares	(3,583		)	(1,210		)	(1,872		)
Earnings allocated to common shareholders - basic	$	357,571		$	132,108		$	176,928
Weighted average common shares outstanding	55,008			50,640			40,948
Earnings per common share - basic	6.50			2.61			4.32
Earnings per common share - diluted
Earnings allocated to common shareholders - basic	$	357,571		$	132,108		$	176,928
Dividends and undistributed earnings allocated to unvested restricted shares	(49		)	(1		)	(37		)
Earnings allocated to common shareholders - diluted	$	357,522		$	132,107		$	176,891
Weighted average common shares outstanding	55,008			50,640			40,948
Dilutive potential common shares	352			352			158
Weighted average common shares outstanding - diluted	55,360			50,992			41,106
Earnings per common share - diluted	$	6.46		$	2.59		$	4.30

For the years ended December 31, 2018, 2017, and 2016, the calculations for basic shares outstanding exclude the weighted average shares owned by the RRP of 564,973, 467,601, and 447,818, respectively.

The effects from the assumed exercises of 154,397, 71,260, and 155,969 stock options were not included in the computation of diluted earnings per share for the years ended December 31, 2018, 2017, and 2016, respectively, because such amounts would have had an antidilutive effect on earnings per common share.

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Share-Based Compensation

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

The Company has various types of share-based compensation plans that permit the granting of awards in the form of stock options, restricted stock, restricted share units, and phantom stock. These plans are administered by the Compensation Committee of the Board of Directors, which selects persons eligible to receive awards and determines the terms, conditions and other provisions of the awards. At December 31, 2018, awards of 1,162,931 shares could be made under approved incentive compensation plans. The Company issues shares to fulfill stock option exercises and restricted share units and restricted stock awards vesting from available authorized common shares. At December 31, 2018, the Company believes there are adequate authorized shares to satisfy anticipated stock option exercises and restricted share unit and restricted stock award vesting.

Stock option awards

The Company issues stock options under various plans to directors, officers and other key employees. The option exercise price cannot be less than the fair value of the underlying common stock as of the date of the option grant and the maximum option term cannot exceed ten years.

The following table represents the activity related to stock options during the periods indicated:

	Number of Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value (Dollars in thousands)		Weighted Average Remaining Contract Life (in years)
Outstanding options, December 31, 2015	813,777		$	56.99
Granted	160,624		48.65
Exercised	(196,769	)	55.39		$	3,597
Forfeited or expired	(56,094	)	59.49
Outstanding options, December 31, 2016	721,538		$	55.38
Granted	80,557		84.78
Exercised	(85,221	)	55.45		2,098
Forfeited or expired	(30,508	)	68.46
Outstanding options, December 31, 2017	686,366		$	58.24
Granted	97,620		82.02
Exercised	(42,047	)	53.07		1,242
Forfeited or expired	(27,519	)	68.30
Outstanding options, December 31, 2018	714,420		$	61.41	$	5,148	5.2
Exercisable options, December 31, 2016	415,376		$	56.66
Exercisable options, December 31, 2017	455,010		55.77
Exercisable options, December 31, 2018	501,815		56.75		$	4,222	3.9

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards. The following weighted-average assumptions were used for option awards issued during the years ended December 31:

	2018			2017			2016
Expected dividends	1.8		%	1.7		%	2.8		%
Expected volatility	24.3		%	25.0		%	29.0		%
Risk-free interest rate	2.7		%	2.1		%	1.4		%
Expected term (in years)	5.8			5.8			6.5
Weighted-average grant-date fair value	$	18.48		$	18.86		$	10.46

The assumptions above are based on multiple factors, including historical stock option exercise patterns and post-vesting employment termination behaviors, expected future exercise patterns and the expected volatility of the Company’s stock price.

The following table represents the compensation expense that is included in non-interest expense and related income tax benefits in the accompanying consolidated statements of comprehensive income related to stock options for the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to stock options	$	1,280	$	1,470	$	2,010
Income tax benefit related to stock options	93		124		331

At December 31, 2018, there was $2.0 million of unrecognized compensation expense related to stock options that is expected to be recognized over a weighted-average period of 2.8 years.

Restricted stock awards

The Company issues restricted stock under various plans for certain officers and directors. The restricted stock awards may not be sold or otherwise transferred until certain restrictions have lapsed. The holders of the restricted stock receive dividends and have the right to vote the shares. The compensation expense for these awards is determined based on the market price of the Company's common stock at the date of grant applied to the total number of shares granted and is recognized over the vesting period (generally three to five years). As of December 31, 2018 and 2017, unrecognized share-based compensation expense associated with these awards totaled $27.1 million and $31.9 million, respectively. The unrecognized compensation expense related to restricted stock awards at December 31, 2018 is expected to be recognized over a weighted-average period of 1.3 years.

Restricted share units

The Company issues restricted share units to certain of its executive officers. Restricted share units vest after the end of a three year performance period, based on satisfaction of the market and performance conditions set forth in the restricted share unit agreements. Recipients do not possess voting or investment power over the common stock underlying such units until vesting. The grant date fair value of these restricted share units is the same as the value of the corresponding number of shares of common stock, adjusted for assumptions surrounding the market-based conditions contained in the respective agreements. See Note 1, Summary of Significant Accounting Policies, for further discussion of restricted share units with market or performance conditions.

The following table represents the compensation expense that was included in non-interest expense and related income tax benefits in the accompanying consolidated statements of comprehensive income related to restricted stock awards and restricted share units for the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to restricted stock awards and restricted share units	$	18,998	$	14,966	$	12,513
Income tax benefit related to restricted stock awards and restricted share units	3,990		2,809		4,380

The following table represents unvested restricted stock award and restricted share unit activity for the years ended December 31:

	2018		2017		2016
Number of shares at beginning of period	738,187		543,261		507,130
Granted	231,064		421,198		254,276
Forfeited	(72,217	)	(31,699	)	(28,855	)
Vested	(196,406	)	(194,573	)	(189,290	)
Number of shares at end of period	700,628		738,187		543,261

The weighted average grant date fair value of restricted stock awards and restricted share units granted was $80.98, $82.49, and $48.84 for the years ended December 31, 2018, 2017, and 2016, respectively. The total fair value of restricted stock awards and restricted share units vested during the years ended December 31, 2018, 2017, and 2016 was $16.3 million, $16.4 million, and $10.7 million, respectively.

Phantom stock awards

The Company issues phantom stock awards to certain key officers and employees. The awards are subject to a vesting period of five years and are paid out in cash upon vesting. The amount paid per vesting period is calculated as the number of vested “share equivalents” multiplied by the closing market price of a share of the Company’s common stock on the vesting date. Share equivalents are calculated on the date of grant as the total award’s dollar value divided by the closing market price of a share of the Company’s common stock on the grant date. Award recipients are also entitled to a “dividend equivalent” on each unvested share equivalent held by the award recipient. A dividend equivalent is a dollar amount equal to the cash dividends that the participant would have been entitled to receive if the participant’s share equivalents were issued in shares of common stock. Dividend equivalents are reinvested as share equivalents that will vest and be paid out on the same date as the underlying share equivalents on which the dividend equivalents were paid. The number of share equivalents accumulated with a dividend equivalent is determined by dividing the aggregate of dividend equivalents paid on the unvested share equivalents by the closing price of a share of the Company’s common stock on the dividend payment date.

The following table represents compensation expense recorded for phantom stock based on the number of share equivalents vested at December 31 of the years indicated and the current market price of the Company’s stock at that time:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to phantom stock	$	8,141	$	10,756	$	12,933

The following table represents phantom stock award activity during the periods indicated:

(Dollars in thousands)	Number of share equivalents (1)		Value of share equivalents (2)
Balance, December 31, 2015	462,430		$	25,466
Granted	215,745		18,069
Forfeited share equivalents	(42,051	)	3,522
Vested share equivalents	(163,294	)	8,509
Balance, December 31, 2016	472,830		$	39,600
Granted	118,408		9,177
Forfeited share equivalents	(34,968	)	2,710
Vested share equivalents	(162,426	)	13,515
Balance, December 31, 2017	393,844		$	30,523
Granted	157,044		10,095
Forfeited share equivalents	(63,276	)	4,067
Vested share equivalents	(134,205	)	11,156
Balance, December 31, 2018	353,407		$	22,717

⁽¹⁾  Number of share equivalents includes all reinvested dividend equivalents for the years indicated.

⁽²⁾  Except for share equivalents at the beginning of each period, which are based on the value at that time, and vested share payments, which are based on the cash paid at the time of vesting, the value of share equivalents is calculated based on the market price of the Company’s stock at the end of the respective periods. The market price of the Company’s stock was $64.28, $77.50 and $83.75 on December 31, 2018, 2017, and 2016, respectively.

401(k) defined contribution plan

The Company has a 401(k) Profit Sharing Plan covering substantially all of its employees. Annual employer contributions to the Plan are set by the Board of Directors. The Company made contributions of $3.7 million, $3.5 million, and $1.9 million for the years ended December 31, 2018, 2017, and 2016, respectively. The Plan provides, among other things, that participants in the Plan be able to direct the investment of their account balances within the Profit Sharing Plan into alternative investment funds. Participant deferrals under the salary reduction election may be matched by the employer based on a percentage to be determined annually by the employer.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Off-balance sheet commitments

In the normal course of business, to meet the financing needs of its customers, the Company is a party to credit-related financial instruments, with risk not reflected in the consolidated financial statements. These financial instruments include commitments to extend credit, standby letters of credit, and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The credit policies used for these commitments are consistent with those used for on-balance sheet instruments. The Company’s exposure to credit loss in the event of non-performance by its customers under such commitments or letters of credit represents the contractual amount of the financial instruments as indicated in the table below. At December 31, 2018 and 2017, the fair value of guarantees under commercial and standby letters of credit was $2.4 million and $2.1 million, respectively. This fair value will decrease as the existing commercial and standby letters of credit approach their expiration dates.

At December 31, 2018 and 2017, respectively, the Company had the following financial instruments outstanding and related reserves, whose contract amounts represent credit risk:

(Dollars in thousands)	December 31, 2018		December 31, 2017
Commitments to extend credit	$	642,162	$	342,305
Unfunded commitments under lines of credit	6,883,963		6,060,034
Commercial and standby letters of credit	240,436		210,002
Reserve for unfunded lending commitments	14,830		13,208

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the borrower. Since many of the commitments are expected to be drawn upon, the total commitment amounts generally represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral, if any, is based on management’s credit evaluation of the customer.

Unfunded commitments under commercial lines of credit, revolving credit lines, and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. Many of these types of commitments do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. See Note 6, Allowance for Credit Losses and Credit Quality, for additional information related to the Company’s reserve for unfunded lending commitments.

Commercial and standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper issuance, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. When necessary, they are collateralized, generally in the form of marketable securities and cash equivalents.

Legal proceedings

The nature of the business of the Company’s banking and other subsidiaries ordinarily results in a certain amount of claims, litigation, investigations, and legal and administrative cases and proceedings, which are considered incidental to the normal conduct of business. Some of these claims are against entities or assets of which the Company is a successor or acquired in business acquisitions. The Company has asserted defenses to these claims and, with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interest of the Company and its shareholders.

In July of 2016, the Company received a subpoena from the Office of Inspector General of the U.S. Department of Housing and Urban Development (“HUD”) requesting information on certain previously originated loans insured by the Federal Housing Administration ("FHA") as well as other documents regarding the Company's FHA-related policies and practices. After the Company complied with the subpoena, attorneys from the Department of Justice (“DOJ”) informed the Company in late March of 2017 that a civil qui tam suit had been filed against the Company in federal court involving the subject matter of the HUD subpoena. The HUD lawsuit was settled on December 11, 2017 in the amount of $11.7 million. On February 2, 2018, IBERIABANK filed a lawsuit in the United States District Court for the Eastern District of Louisiana (New Orleans) against Illinois Union Insurance Company and Travelers Casualty and Surety Company of America in an effort to recover the $11.7 million it paid to settle the HUD matter. IBERIABANK filed that lawsuit to recover the insurance proceeds to which it claims to be entitled under certain Bankers’ Professional Liability insurance policies issued by defendants Illinois Union and Travelers. More specifically, IBERIABANK alleges that the insurers have failed to honor their obligations under the policies to pay IBERIABANK’s losses in connection with the $11.7 million settlement of disputed allegations relating to IBERIABANK’s professional services in connection with certain mortgage loans insured by the FHA. The judge in the federal lawsuit granted a motion for summary judgment thereby dismissing the case. The Company is considering whether to appeal or not.

The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of loss is not estimable, the Company does not accrue legal reserves. While the outcome of legal proceedings is inherently uncertain, based on information currently available and available insurance coverage, the Company’s management believes that it has established appropriate legal reserves. Any incremental liabilities arising from pending legal proceedings are not expected to have a material adverse effect on the Company’s consolidated financial position, consolidated results of operations, or consolidated cash flows. However, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the Company’s consolidated financial position, consolidated results of operations, or consolidated cash flows.

As of the date of this filing, the Company believes the amount of losses associated with legal proceedings that it is reasonably possible to incur above amounts already accrued and reported as of December 31, 2018 is not material.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Recurring fair value measurements

The following table presents information about the Company's assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2018 and 2017 and their classification within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined.

	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale	$	—	$	4,783,579	$	—	$	4,783,579
Mortgage loans held for sale	—		107,734		—		107,734
Mortgage loans held for investment, at fair value option	—		—		3,143		3,143
Derivative instruments	—		27,048		—		27,048
Total	$	—	$	4,918,361	$	3,143	$	4,921,504
Liabilities
Derivative instruments	$	—	$	22,124	$	—	$	22,124
Total	$	—	$	22,124	$	—	$	22,124
	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale	$	—	$	4,590,062	$	—	$	4,590,062
Mortgage loans held for sale	—		134,916		—		134,916
Mortgage loans held for investment, at fair value option	—		—		14,953		14,953
Derivative instruments	—		31,265		—		31,265
Total	$	—	$	4,756,243	$	14,953	$	4,771,196
Liabilities
Derivative instruments	$	—	$	25,154	$	—	$	25,154
Total	$	—	$	25,154	$	—	$	25,154

During 2018 and 2017, there were no transfers between the Level 1 and Level 2 fair value categories.

Non-recurring fair value measurements

The Company holds certain assets that are measured at fair value, but only in certain circumstances, such as impairment. The following table presents information about the Company's assets that are measured at fair value and still held as of December 31, 2018 and 2017 for which a non-recurring fair value adjustment was recorded during the years then ended. See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined.

	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	65,914	$	65,914
OREO, net	—		—		6,433		6,433
Total	$	—	$	—	$	72,347	$	72,347
	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	71,210	$	71,210
OREO, net	—		—		7,748		7,748
Total	$	—	$	—	$	78,958	$	78,958

The tables above exclude the initial measurement of assets and liabilities that were acquired as part of the business combinations disclosed in Note 3, Acquisition Activity. These assets and liabilities were recorded at their fair value upon acquisition in accordance with U.S. GAAP and were not re-measured during the periods presented unless specifically required by U.S. GAAP. Acquisition date fair values represent either Level 2 fair value measurements (investment securities, deposits, property, and equipment) or Level 3 fair value measurements (loans, core deposit intangible assets, and debt). Refer to Note 3, Acquisition Activity, for further detail.

The Company did not record any liabilities at fair value for which measurement of the fair value was made on a non-recurring basis as of December 31, 2018 and 2017.

Fair value option

The Company has elected the fair value option for originated residential mortgage loans held for sale, which allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to hedge them without the burden of complying with the requirements for hedge accounting. The Company also has a portion of mortgage loans held for investment for which the fair value option was elected upon origination and continue to be accounted for at fair value at December 31, 2018 and 2017, respectively.

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for mortgage loans held for sale and mortgage loans held for investment measured at fair value:

	December 31, 2018							December 31, 2017
(Dollars in thousands)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Unpaid Principal			Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Unpaid Principal
Mortgage loans held for sale, at fair value	$	107,734	$	104,345	$	3,389		$	134,916	$	131,276	$	3,640
Mortgage loans held for investment, at fair value	3,143		3,595		(452		)	14,953		16,306		(1,353		)

Interest income on mortgage loans held for sale and mortgage loans held for investment at fair value option is recognized based on contractual rates and is reflected in interest income on loans held for sale in the consolidated statements of comprehensive income. The following table details net gains (losses) resulting from the change in fair value of loans that were recorded in mortgage income in the consolidated statements of comprehensive income for the years ended December 31, 2018, 2017 and 2016. The changes in fair value are mostly offset by economic hedging activities, with an insignificant portion of these changes attributable to changes in instrument-specific credit risk.

	Net Gains (Losses) Resulting From Changes in Fair Value
	For the Years Ended December 31,
(Dollars in thousands)	2018			2017			2016
Fair value option
Mortgage loans held for sale, at fair value	$	(251	)	$	944		$	(2,512	)
Mortgage loans held for investment, at fair value	(1,542		)	(204		)	(1,149		)

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Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. ASC Topic 825, Financial Instruments, excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

The carrying amount and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are included in the tables below. See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined, except for loans, amended upon implementation of ASU 2016-01, Financial Statements - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. See Note 2, Recent Accounting Pronouncements, in this Report for a description of how the fair value measurement is determined for loans beginning January 1, 2018.

		December 31, 2018
(Dollars in thousands)		Carrying  Amount		Fair Value		Level 1		Level 2		Level 3
Measurement Category
Fair Value
	Financial Assets
	Securities available for sale	$	4,783,579	$	4,783,579	$	—	$	4,783,579	$	—
	Mortgage loans held for sale	107,734		107,734		—		107,734		—
	Mortgage loans held for investment, at fair value option	3,143		3,143		—		—		3,143
	Derivative instruments	27,048		27,048		—		27,048		—
	Financial Liabilities
	Derivative instruments	22,124		22,124		—		22,124		—
Amortized Cost
	Financial Assets
	Cash and cash equivalents	$	690,453	$	690,453	$	690,453	$	—	$	—
	Securities held to maturity	207,446		204,277		—		204,277		—
	Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	22,376,101		22,088,236		—		—		22,088,236
	Financial Liabilities
	Deposits	23,763,431		23,752,139		—		23,752,139		—
	Short-term borrowings	1,482,882		1,482,882		315,882		1,167,000		—
	Long-term debt	1,166,151		1,154,062		—		—		1,154,062

		December 31, 2017
(Dollars in thousands)		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Measurement Category
Fair Value
	Financial Assets
	Securities available for sale	$	4,590,062	$	4,590,062	$	—	$	4,590,062	$	—
	Mortgage loans held for sale	134,916		134,916		—		134,916		—
	Mortgage loans held for investment, at fair value option	14,953		14,953		—		—		14,953
	Derivative instruments	31,265		31,265		—		31,265		—
	Financial Liabilities
	Derivative instruments	25,154		25,154		—		25,154		—
Amortized Cost
	Financial Assets
	Cash and cash equivalents	$	625,724	$	625,724	$	625,724	$	—	$	—
	Securities held to maturity	227,318		227,964		—		227,964		—
	Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	19,922,337		19,811,904		—		—		19,811,904
	Financial Liabilities
	Deposits	21,466,717		21,460,782		—		21,460,782		—
	Short-term borrowings	991,297		991,297		516,297		475,000		—
	Long-term debt	1,495,835		1,476,899		—		—		1,476,899

The fair value estimates presented herein are based upon pertinent information available to management as of December 31, 2018 and 2017. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since these dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.

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Related Party Transactions

12 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

In the ordinary course of business, the Company may execute transactions with various related parties. Examples of such transactions may include lending or deposit arrangements, transfers of financial assets, services for administrative support, and other miscellaneous items.

The Company has granted loans to executive officers and directors and their affiliates. These loans, including the related principal additions, principal payments, and unfunded commitments are not material to the consolidated financial statements at December 31, 2018 and 2017. There were no outstanding loans to such related parties classified as non-accrual, past due, or troubled debt restructurings at December 31, 2018.

Deposits from related parties held by the Company were not material at December 31, 2018 and 2017.

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Business Segments

12 Months Ended

Dec. 31, 2018

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, 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.

	Year Ended December 31, 2018
(Dollars 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
(Dollars 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

	Year Ended December 31, 2016
(Dollars in thousands)	IBERIABANK			Mortgage		LTC		Consolidated
Interest and dividend income	$	707,676		$	9,261	$	2	$	716,939
Interest expense	64,068			3,633		—		67,701
Net interest income	643,608			5,628		2		649,238
Provision for credit losses	41,433			88		—		41,521
Mortgage income	405			83,448		—		83,853
Title revenue	—			—		22,213		22,213
Other non-interest income	121,647			4		—		121,651
Allocated expenses (income)	(13,972		)	10,686		3,286		—
Non-interest expense	480,898			65,133		17,433		563,464
Income before income tax expense	257,301			13,173		1,496		271,970
Income tax expense	79,565			5,023		605		85,193
Net income	$	177,736		$	8,150	$	891	$	186,777
Total loans, leases, and loans held for sale, net of unearned income	$	15,004,360		$	217,652	$	—	$	15,222,012
Total assets	21,319,267			315,057		24,866		21,659,190
Total deposits	17,402,742			5,541		—		17,408,283
Average assets	19,959,261			335,913		26,060		20,321,234

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Condensed Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Condensed Parent Company Only Financial Statements

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

Condensed financial statements of the Parent are shown below. The Parent has no significant operating activities.

Condensed Balance Sheets

(Dollars in thousands)	December 31
	2018		2017
Assets
Cash in bank	$	179,545	$	168,873
Investments in subsidiaries	4,008,802		3,661,808
Other assets	53,832		49,207
	$	4,242,179	$	3,879,888
Liabilities and Shareholders’ Equity
Liabilities	$	185,902	$	183,097
Shareholders’ equity	4,056,277		3,696,791
	$	4,242,179	$	3,879,888

Condensed Statements of Income

	Year Ended December 31
(Dollars in thousands)	2018		2017		2016
Operating income
Reimbursement of management expenses	$	83,262	$	76,177	$	65,104
Other income	245,213		146,796		829
Total operating income	328,475		222,973		65,933
Operating expenses
Interest expense	6,008		5,168		3,948
Salaries and employee benefits expense	55,436		55,013		45,623
Other expenses	28,963		32,965		19,566
Total operating expenses	90,407		93,146		69,137
Income (loss) before income tax benefit and increase in equity in undistributed earnings of subsidiaries	238,068		129,827		(3,204		)
Income tax expense	799		3,123		530
Income (loss) before equity in undistributed earnings of subsidiaries	237,269		126,704		(3,734		)
Equity in undistributed earnings of subsidiaries	132,980		15,709		190,511
Net Income	370,249		142,413		186,777
Less: Preferred stock dividends	9,095		9,095		7,977
Net Income Available to Common Shareholders	$	361,154	$	133,318	$	178,800

Condensed Statements of Cash Flows

(Dollars in thousands)	Year Ended December 31
	2018			2017			2016
Cash Flow from Operating Activities
Net income	$	370,249		$	142,413		$	186,777
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	145			62			98
Net income of subsidiaries	(377,974		)	(160,206		)	(190,511		)
Share-based compensation cost	20,278			16,436			14,523
Other operating activities, net	491			(4,256		)	12,417
Net Cash Provided by (Used in) Operating Activities	13,189			(5,551		)	23,304
Cash Flow from Investing Activities
Cash paid in excess of cash received for acquisitions	(7		)	(809,159		)	—
Purchases of premises and equipment	(52		)	(105		)	—
Return of capital from (Capital contributed to) subsidiary	245,000			144,500			(6,000		)
Other investing activities, net	(1,500		)	—			(749		)
Net Cash (Used in) Investing Activities	243,441			(664,764		)	(6,749		)
Cash Flow from Financing Activities
Cash dividends paid on common stock	(84,782		)	(72,772		)	(56,793		)
Cash dividends paid on preferred stock	(9,095		)	(9,095		)	(7,028		)
Net share-based compensation stock transactions	(3,226		)	(832		)	6,899
Payments to repurchase common stock	(148,855		)	—			(11,666		)
Net proceeds from issuance of common stock	—			485,151			279,242
Net proceeds from issuance of preferred stock	—			—			55,285
Other financing activities, net	—			(56		)	—
Net Cash Provided by (Used In) Financing Activities	(245,958		)	402,396			265,939
Net Increase (Decrease) in Cash and Cash Equivalents	10,672			(267,919		)	282,494
Cash and Cash Equivalents at Beginning of Period	168,873			436,792			154,298
Cash and Cash Equivalents at End of Period	$	179,545		$	168,873		$	436,792

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Reclassification

Reclassification

Certain amounts reported in prior periods have been reclassified to conform to the current period presentation. These reclassifications did not have a material effect on previously reported consolidated financial statements.

Principles of Consolidation

PRINCIPLES OF CONSOLIDATION

All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s consolidated financial statements include all entities in which the Company has a controlling financial interest under either the voting interest or variable interest model. The assessment of whether or not the Company has a controlling interest (i.e., the primary beneficiary) in a variable interest entity (VIE) is performed on an on-going basis. All equity investments in non-consolidated VIEs are included in "other assets" in the Company’s consolidated balance sheets. The Company’s maximum exposure to loss as a result of its involvement with non-consolidated VIEs was approximately $230.2 million and $160.2 million at December 31, 2018 and 2017, respectively.  The Company's maximum exposure to loss was equivalent to the carrying value of its investments and any related outstanding loans to the non-consolidated VIEs.

Investments in entities that are not consolidated are accounted for under either the equity, fair value, or proportional amortization method of accounting. Prior to January 1, 2018, investments in entities that were not consolidated were accounted for under either the equity, cost, or proportional amortization method of accounting. Investments for which the Company has the ability to exercise significant influence over the operating and financing decisions of the entity are accounted for under the equity method. Investments for which the Company does not hold such ability are accounted for at cost less impairment plus or minus changes resulting from observable price changes, which approximates fair value. Prior to January 1, 2018, investments for which the Company did not hold such ability were accounted for under the cost method. Investments in qualified affordable housing projects, which meet certain criteria, are accounted for under the proportional amortization method.

Use of Estimates

USE OF ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are susceptible to significant change in the near term are the accounting for acquired impaired loans, the allowance for credit losses, the valuation of goodwill and other intangible assets, and income taxes.

Concentration of Credit Risk

CONCENTRATION OF CREDIT RISKS

Most of the Company’s business activity is with customers located in the southeastern United States. The Company’s lending activity is concentrated in its market areas within those states. The Company has emphasized originations of commercial loans and private banking loans, defined as loans to higher net worth clients. Repayments on loans are expected to come from cash flows of the borrower and/or guarantor. Losses on secured loans are limited by the net realizable value of the collateral upon default of the borrowers and guarantor support. The Company believes it does not have any excessive concentrations to any one industry, loan type, or customer.

Business Combinations

BUSINESS COMBINATIONS

Assets and liabilities acquired in business combinations are recorded at their acquisition date fair values. The Company generally records provisional amounts at the time of acquisition based on the information available to the Company. The provisional estimates of fair values may be adjusted for a period of up to one year (“measurement period”) from the date of acquisition if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Adjustments recorded during the measurement period are recognized in the current reporting period.

Loans generally represent a significant portion of the assets acquired in the Company’s business acquisitions. If the Company discovers that it has materially underestimated the credit losses expected in the loan portfolio based on information available at the acquisition date within the measurement period, it will reduce or eliminate the gain and/or increase goodwill recorded on the acquisition in the period the adjustment is recorded. If the Company determines that losses arose subsequent to the acquisition date, such losses are reflected as a provision for credit losses.

Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS

For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as cash on hand, interest-bearing deposits, and non-interest-bearing demand deposits at other financial institutions with original maturities less than three months. IBERIABANK may be required to maintain average cash balances on hand or with the Federal Reserve Bank to meet regulatory reserve and clearing requirements. At December 31, 2018 and 2017, IBERIABANK had sufficient cash deposited with the Federal Reserve Bank to cover the required reserve balance.

Investment Securities

INVESTMENT SECURITIES

Management determines the appropriate accounting classification of debt and equity securities at the time of acquisition and re-evaluates such designations at least quarterly. Debt securities that management has the ability and intent to hold to maturity are classified as HTM and carried at cost, adjusted for amortization of premiums and accretion of discounts using methods approximating the interest method. Securities acquired with the intention of recognizing short-term profits or which are actively bought and sold are classified as trading securities and reported at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as HTM or trading are classified as AFS and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in OCI. Prior to January 1, 2018, equity securities with readily determinable fair values were also classified as AFS and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in OCI. Credit-related declines in the fair value of debt securities that are considered OTTI are recorded in earnings. Prior to January 1, 2018, credit-related declines in the fair value of marketable equity securities that were considered OTTI were recorded in earnings.

The Company evaluates its investment securities portfolio on a quarterly basis for indicators of OTTI. Declines in the fair value of individual HTM and AFS securities below their amortized cost basis are reviewed to determine whether the declines are other than temporary. In estimating OTTI losses, management considers 1) the length of time and the extent to which the fair value has been less than the amortized cost basis, 2) the financial condition and near-term prospects of the issuer, 3) its intent to sell and whether it is more likely than not that the Company would be required to sell those securities before the anticipated recovery of the amortized cost basis, and 4) for debt securities, the recovery of contractual principal and interest.

For securities that the Company does not expect to sell, or it is not more likely than not it will be required to sell prior to recovery of its amortized cost basis, the credit component of an OTTI is recognized in earnings and the non-credit component is recognized in OCI. For securities that the Company does expect to sell, or it is more likely than not that it will be required to sell prior to recovery of its amortized cost basis, both the credit and non-credit component of an OTTI are recognized in earnings. Subsequent to recognition of OTTI, an increase in expected cash flows is recognized as a yield adjustment over the remaining expected life of the security based on an evaluation of the nature of the increase.

Other equity securities primarily consist of stock acquired for regulatory purposes, such as Federal Home Loan Bank stock and Federal Reserve Bank stock and are included in “other assets."

Gains or losses on securities sold are recorded on the trade date, using the specific identification method.

Loans Held for Sale

LOANS HELD FOR SALE

Loans and loan commitments which the Company does not have the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as loans held for sale at the time of origination or acquisition. Subsequent to origination or acquisition, if the Company no longer has the intent or ability to hold a loan for the foreseeable future, generally a decision has been made to sell the loan and it is classified within loans held for sale. Unless the fair value option has been elected at origination or acquisition, loans classified as held for sale are carried at the lower of cost or fair value. Amortization/accretion of remaining unamortized net deferred loan fees or costs and discounts or premiums (if applicable) ceases when a loan is classified as held for sale.

Loans held for sale primarily consist of fixed rate single-family residential mortgage loans originated and committed to be sold in the secondary market. Mortgage loans originated and held for sale are recorded at fair value under the fair value option, unless otherwise noted. For mortgage loans for which the Company has elected the fair value option, gains and losses are included in mortgage income. For any other loans held for sale, net unrealized losses, if any, are recognized through a valuation allowance that is recorded as a charge to non-interest income. See Note 19 for further discussion of the determination of fair value for loans held for sale. In most cases, loans in this category are sold within thirty days and are generally sold with the mortgage servicing rights released. Buyers generally have recourse to return a purchased loan or request reimbursement for the loan premium or consideration transferred for servicing rights under limited circumstances. Recourse conditions may include prepayment, payment default, breach of representations or warranties, and documentation deficiencies. During 2018 and 2017, an insignificant number of loans were returned to the Company. At December 31, 2018 and 2017, the recorded repurchase liability associated with transferred loans was not material.

Loans and Leases

LOANS

Legacy (Loans originated or renewed and underwritten by the Company)

The Company originates mortgage, commercial, and consumer loans for customers. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the unpaid principal balances, less the ALL, charge-offs, and unamortized net loan origination fees and direct costs, except for loans carried at fair value. Interest income is accrued as earned over the term of the loans based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield.

Acquired (Loans acquired through Business Combinations)

Acquired loans are recorded at fair value on the acquisition date. Credit risk assumptions and any resulting credit discounts are included in the determination of fair value. Therefore, an ALL is not recorded at the acquisition date. The determination of fair value includes estimates related to discount rates, expected prepayments, and the amount and timing of undiscounted expected principal, interest, and other cash flows.

All acquired loans are evaluated for impairment at the time of acquisition. At the time of acquisition, acquired loans that reflect credit deterioration since origination to the extent that it is probable that the Company will be unable to collect all contractually required payments are classified as purchased impaired loans (“acquired impaired loans”). All other acquired loans are classified as purchased non-impaired loans (“acquired non-impaired loans”).

At the time of acquisition, acquired impaired loans are accounted for individually or aggregated into loan pools with similar characteristics, which include:

• whether the loan is performing according to contractual terms at the time of acquisition,

• the loan type based on regulatory reporting guidelines, primarily whether the loan was a mortgage, consumer, or commercial loan,

• the nature of the collateral,

• the interest rate type, whether fixed or variable rate, and

• the loan payment type, primarily whether the loan is amortizing or interest-only.

From these pools, the Company uses certain loan information, including outstanding principal balance, estimated expected losses, weighted average maturity, weighted average term to re-price for a variable rate loan, weighted average margin and weighted average interest rate to estimate the expected cash flows for each loan pool.

For acquired impaired loans, expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of future cash flows is reasonably estimable. For acquired non-impaired loans, the difference between the fair value and unpaid principal balance of the loan at acquisition, referred to as a purchase premium or discount, is amortized or accreted to income over the estimated life of the loans as an adjustment to yield.

Subsequent to acquisition, the Company performs cash flow re-estimations at least quarterly for each acquired impaired loan or loan pool. Increases in estimated cash flows above those expected at the time of acquisition are recognized on a prospective basis as interest income over the remaining life of the loan and/or pool. Decreases in expected cash flows subsequent to acquisition generally result in recognition of a provision for credit loss. The measurement of cash flows involves several assumptions and judgments, including prepayments, default rates and loss severity among other factors. All of these factors are inherently subjective and significant changes in the cash flow estimations can result over the life of the loan.

Classification

The Company’s loan portfolio is disaggregated into portfolio segments for purposes of determining the ACL. The Company’s portfolio segments include commercial, residential mortgage, and consumer and other loans, bifurcated between legacy and acquired non-impaired loans. The Company further disaggregates each commercial, residential mortgage, and consumer and other loans portfolio segment into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial loan portfolio segment include commercial real estate-construction, commercial real estate-owner-occupied, commercial real estate-non-owner occupied, and commercial and industrial. Classes within the consumer and other loans portfolio segment include home equity, indirect automobile, credit card and other.

Troubled Debt Restructurings

Troubled Debt Restructurings

The Company periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and minimize risk of loss. These concessions may include restructuring the terms of a loan to alleviate the burden of the customer’s near-term cash requirements. In order to be classified as a TDR, the Company must conclude that the restructuring constitutes a concession and the customer is experiencing financial difficulties. The Company defines a concession to the customer as a modification of existing terms for economic or legal reasons that it would otherwise not consider. The concession is either granted through an agreement with the customer or is imposed by a court of law. Concessions include modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to:

• a reduction of the stated interest rate for the remaining original life of the loan,

• extension of the maturity date or dates at a stated interest rate lower than the current market rate for new loans with similar risk characteristics,

• reduction of the face amount or maturity amount of the loan as stated in the agreement, or

• reduction of accrued interest receivable on the loan.

In its determination of whether the customer is experiencing financial difficulties, the Company considers numerous indicators, including, but not limited to:

• whether the customer is currently in default on its existing loan(s), or is in an economic position where it is probable the customer will be in default on its loan(s) in the foreseeable future without a modification,

• whether the customer has declared or is in the process of declaring bankruptcy,

• whether there is substantial doubt about the customer’s ability to continue as a going concern,

• whether, based on its projections of the customer’s current capabilities, the Company believes the customer’s future cash flows will be insufficient to service the loan, including interest, in accordance with the contractual terms of the existing agreement for the foreseeable future, and

• whether the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for a similar loan for a non-troubled debtor.

If the Company concludes that both a concession has been granted and the customer is experiencing financial difficulties, the Company identifies the loan as a TDR. All TDRs are considered impaired loans.

Non-accrual and Past Due Loans (Including Loan Charge-offs)

Non-accrual and Past Due Loans (Including Loan Charge-offs)

Loans are generally considered past due when contractual payments of principal and interest have not been received within

30 days from the contractual due date. Residential mortgage loans are considered past due when contractual payments have not been received for two consecutive payment dates.

Legacy and acquired non-impaired loans are placed on non-accrual status when any of the following occur: 1) the loan is maintained on a cash basis because of deterioration in the financial condition of the borrower; 2) collection of the full contractual amount of principal and interest is not expected even if the loan is currently paying as agreed;  or 3) when principal or interest has been in default for a period of 90 days or more, unless the loan is both well-secured and in the process of collection. Factors considered in determining the collection of the full contractual amount of principal and interest include assessment of the borrower’s cash flow, valuation of underlying collateral, and the ability and willingness of guarantors to provide credit support.  Certain commercial loans are also placed on non-accrual status when payment is not past due and full payment of principal and interest is expected, but the Company has doubt about the borrower’s ability to comply with existing repayment terms. Consideration will be given to placing a loan on non-accrual due to the deterioration of the debtor’s repayment ability, the repayment of the loan becoming dependent on the liquidation of collateral, an existing collateral deficiency, the loan being classified as "Doubtful" or "Loss," the client filing for bankruptcy, and/or foreclosure being initiated. Regarding all classes within the C&I and CRE portfolios, the determination of a borrower’s ability to make the required principal and interest payments is based on an examination of the borrower’s current financial statements, industry, management capabilities, and other qualitative factors.

Acquired impaired loans are placed on non-accrual status when the Company cannot reasonably estimate cash flows on a loan or loan pool. Legacy and acquired non-impaired loans are evaluated for potential charge-off in accordance with the parameters discussed in the following paragraph or when the loan is placed on non-accrual status, whichever is earlier.

Loans within the commercial portfolio (except for acquired impaired loans) are generally evaluated for charge-off at

90 days past due, unless both well-secured and in the process of collection. Closed and open-end residential mortgage and consumer loans (except for acquired impaired loans) are evaluated for charge-off no later than 120 days past due. Any outstanding loan balance in excess of the fair value of the collateral less costs to sell is charged-off no later than 120 days days past due for loans secured by real estate. For non-real estate secured loans, in lieu of charging off the entire loan balance, loans may be written down to the fair value of the collateral less costs to sell if repossession of collateral is assured and in process.

The accrual of interest, as well as the amortization/accretion of any remaining unamortized net deferred fees or costs and discount or premium, is discontinued at the time the loan is placed on non-accrual status. All accrued but uncollected interest for loans that are placed on non-accrual status is reversed through interest income. Cash receipts received on non-accrual loans are generally applied against principal until the loan has been collected in full, after which time any additional cash receipts are recognized as interest income (i.e., cost recovery method). However, interest may be accounted for under the cash-basis method as long as the remaining recorded investment in the loan is deemed fully collectible.

Loans are returned to accrual status when the borrower has demonstrated a capacity to continue payment of the debt (generally a minimum of six months of sustained repayment performance) and collection of contractually required principal and interest associated with the debt is reasonably assured. Additionally, for a non-accrual TDR to be returned to accrual status, a current, well-documented credit analysis is required and the borrower must have complied with all terms of the modification. At such time, the accrual of interest and amortization/accretion of any remaining unamortized net deferred fees or costs and discount or premium shall resume. Any interest income which was applied to the principal balance shall not be reversed and subsequently will be recognized as an adjustment to yield over the remaining life of the loan.

Impaired Loans

Impaired Loans

For all classes within the commercial portfolio, all loans with an outstanding commitment balance above a specific threshold are evaluated on a quarterly basis for potential impairment. Generally, residential mortgage and consumer loans within any class are not individually evaluated on a regular basis for impairment. All TDRs, regardless of the outstanding balance amount or portfolio classification, and all acquired impaired loans are considered to be impaired.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the likelihood of collecting scheduled principal and interest payments when contractually due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Impairment losses are measured on a loan-by-loan basis for commercial and certain residential mortgage or consumer loans, based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral-dependent. This measurement requires significant judgment and use of estimates, and the actual loss ultimately recognized by the Company may differ significantly from the estimates.

Allowance for Credit Losses

ALLOWANCE FOR CREDIT LOSSES

The Company maintains the ACL at a level that management believes appropriate to absorb estimated probable credit losses incurred in the loan portfolios, including unfunded commitments, as of the consolidated balance sheet date. The ACL consists of the allowance for loan losses (contra asset) and the reserve for unfunded commitments (liability). The manner in which the ACL is determined is based on 1) the accounting method applied to the underlying loans and 2) whether the loan is required to be measured for impairment. The Company delineates between loans accounted for under the contractual yield method, legacy and acquired non-impaired loans, and acquired impaired loans. Further, for legacy and acquired non-impaired loans, the Company attributes portions of the ACL to loans and loan commitments that it measures individually, and groups of homogeneous loans and loan commitments that it measures collectively for impairment.

Determination of the appropriate ACL involves a high degree of complexity and requires significant judgment regarding the credit quality of the loan portfolio. Several factors are taken into consideration in the determination of the overall ACL, including a qualitative component. These factors include, but are not limited to, the overall risk profiles of the loan portfolios, net charge-off experience, the extent of impaired loans, the level of non-accrual loans, the level of 90 days past due loans, the value of collateral, the ability to monetize guarantor support, and the overall percentage level of the allowance relative to the loan portfolio, amongst other factors. The Company also considers overall asset quality trends, changes in lending practices and procedures, trends in the nature and volume of the loan portfolio, including the existence and effect of any portfolio concentrations, changes in experience and depth of lending staff, the Company’s legal, regulatory and competitive environment, national and regional economic trends, data availability and applicability that might impact the portfolio or the manner in which it estimates losses, and risk rating accuracy and risk identification.

The allowance for loan losses for all impaired loans (excluding acquired impaired loans) is determined on an individual loan basis, considering the facts and circumstances specific to each borrower. The allowance is based on the difference between the recorded investment in the loan and generally either the estimated net present value of projected cash flows or the estimated value of the collateral associated with a collateral-dependent loan. 

The allowance for loan losses for all non-impaired loans (excluding acquired impaired loans) is calculated based on pools of loans with similar characteristics. The pool-level allowance is calculated through the application of PD (i.e., probability of default) and LGD (i.e., loss given default) factors for each individual loan. PDs and LGDs are determined based on historical default and loss information for similar loans. For purposes of establishing estimated loss percentages for pools of loans that share common risk characteristics, the Company’s loan portfolio is segmented by various loan characteristics including loan type, risk rating for commercial, Vantage or FICO score for residential mortgage and consumer, past due status for residential mortgage and consumer and call report code. The default and loss information is measured over an appropriate period for each loan pool and adjusted as deemed appropriate. Qualitative adjustments are incorporated into the pool-level analysis to accommodate for the imprecision of certain assumptions and uncertainties inherent in the calculation. 

See the "Loans" section of this footnote for discussion of the determination of the ACL for acquired impaired loans.

Certain inherent, but unconfirmed losses are probable within the loan portfolio. The Company’s current methodology for determining the level of inherent losses is based on historical loss rates, current credit grades, specific allocation, and other qualitative adjustments. In a stable or deteriorating credit environment, heavy reliance on historical loss rates and the credit grade rating process results in model-derived reserves that tend to slightly lag behind portfolio deterioration. Similar lags can occur in an improving credit environment whereby required reserves can lag slightly behind portfolio improvement. Given these and other model limitations, qualitative adjustment factors may be incremental or decremental to the quantitative model results.

The reserve for unfunded commitments is determined using similar methodologies described above for non-impaired loans. The loss factors used in the reserve for unfunded commitments are equivalent to the loss factors used in the allowance for loan losses, while also considering utilization of unused commitments.

Premises and Equipment

PREMISES AND EQUIPMENT

Land is carried at cost. Buildings, furniture, fixtures, and equipment are carried at cost, less accumulated depreciation computed on a straight-line basis over the estimated useful lives of 10 to 40 years for buildings and related improvements and generally 3 to 20 years for furniture, fixtures, and equipment. Leasehold improvements are amortized over the lease term, including any renewal periods that are reasonably assured, or the asset’s useful life, whichever is shorter. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but is assessed for potential impairment at a reporting unit level on an annual basis, as of October 1^st, or whenever events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than its respective carrying amount. For the annual October 1, 2018 impairment evaluation, management elected to bypass the qualitative assessment for each respective reporting unit (IBERIABANK, Mortgage, and LTC) and performed Step 1 of the goodwill impairment test. Step 1 of the goodwill impairment test requires the Company to compare the fair value of each reporting unit with its carrying amount, including goodwill. Accordingly, the Company determined the fair value of each reporting unit and compared the fair value to each respective reporting unit’s carrying amount. The Company determined that none of the reporting units’ fair values were below their respective carrying amounts. The Company concluded goodwill was not impaired as of October 1, 2018. Further, no events or changes in circumstances between October 1, 2018 and December 31, 2018 indicated that it was more likely than not the fair value of any reporting unit had been reduced below its carrying value.

Based on the testing performed in 2018 and 2017, management concluded that for the IBERIABANK, Mortgage, and LTC reporting units, goodwill was not impaired at any time during those periods.

Title Plant

Costs incurred to construct a title plant, including the costs incurred to obtain, organize, and summarize historical information, are capitalized until the title plant can be used to perform title searches. A purchased title plant, including a purchased undivided interest in a title plant, is recorded at cost at the date of acquisition. For a title plant acquired separately or as part of a business acquisition, cost is measured as the fair value of the consideration paid. Capitalized costs of a title plant are not depreciated or charged to income unless circumstances indicate that the carrying amount of the title plant has been impaired. Impairment indicators include a change in legal requirements or statutory practices, identification of obsolescence, or abandonment of the title plant, among other indicators.

Capitalized storage and retrieval costs (e.g., costs to convert from one storage retrieval system to another or to modernize the storage and retrieval systems) incurred after a title plant is operational are charged to expense in a systematic and rational manner. Title plant is recorded within "other assets" on the Company’s consolidated balance sheets.

Intangible assets subject to amortization

The Company’s acquired intangible assets that are subject to amortization primarily include core deposit intangibles, which are amortized on a straight-line or accelerated basis, and a customer relationship intangible asset, which is amortized on an accelerated basis, over average lives not to exceed 10 years. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is identified if the sum of the undiscounted estimated future cash flows is less than the carrying value of the asset.Intangible assets are recorded within "other assets" on the Company’s consolidated balance sheets.

Other Real Estate Owned

OTHER REAL ESTATE OWNED

Other real estate owned includes all real estate, other than bank premises used in bank operations, owned or controlled by the Company, including real estate acquired in settlement of loans. Properties are initially recognized at the lower of the recorded investment in the loan or its estimated fair value less costs to sell, generally when the Company has received physical possession. The amount by which the recorded investment of the loan exceeds the fair value less costs to sell of the property is charged to the ALL. Subsequent to foreclosure, the assets are carried at the lower of cost or fair value less costs to sell. Former bank properties transferred to OREO are recorded at the lower of cost or market. Subsequent declines in the fair value of other real estate are recorded as adjustments to the carrying amount through a valuation allowance. Revenue and expenses from operations, gain or loss on sale, and changes in the valuation allowance are included in net expenses from foreclosed assets. OREO is recorded within "other assets" on the Company’s consolidated balance sheets.

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

The Company enters into various derivative financial instruments to manage interest rate risk, asset sensitivity and other exposures such as liquidity and credit risk, as well as to facilitate customer transactions. The primary types of derivatives utilized by the Company for its risk management strategies include interest rate swap agreements, interest rate collars, interest rate floors, foreign exchange contracts, interest rate lock commitments, forward sales commitments, written and purchased options, and credit derivatives. All derivative instruments are recognized on the consolidated balance sheets as "other assets" or "other liabilities" at fair value, regardless of whether a right of offset exists. Changes in the fair value of a derivative instrument are recorded based on whether it has been designated and qualifies as part of a hedging relationship.

Interest rate swap and foreign exchange contracts are entered into by the Company to allow its commercial customers to manage their exposure to market rate fluctuations. To mitigate the Company's exposure to the rate risk associated with customer contracts, offsetting derivative positions are entered into with reputable counterparties. The Company manages its credit risk, or potential risk of default, from the customer contracts through credit limit approval and monitoring procedures. These contracts are not designated for hedge accounting (i.e., treated as economic hedges).

Derivatives Designated in Hedging Relationships

For cash flow hedges, the effective and ineffective portions of the gain or loss related to the derivative instrument is initially reported as a component of OCI and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. Prior to January 1, 2018, the ineffective portion of the gain or loss, if any, was reported in earnings immediately in either "other income" or "other expense," respectively. In applying hedge accounting for derivatives, the Company establishes and documents a method for assessing the effectiveness of the hedging derivative and a measurement approach for determining the ineffective aspect of the hedge upon the inception of the hedge. The Company has designated interest rate swaps in a cash flow hedge to convert forecasted variable interest payments to a fixed rate on its junior subordinated debt. The Company has also designated interest rate collars and interest rate floors in a cash flow hedge to reduce the risk of fluctuations in interest rates and thereby reduce the Company’s exposure to variability in cash flows from variable-rate loans. The Company has concluded that the forecasted transactions are probable of occurring.

Derivatives Not Designated in Hedging Relationships

For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately.

Common Types of Derivatives

• Interest rate swap agreements Interest rate swaps are agreements to exchange interest payments based upon notional amounts. The exchange of payments typically involves paying a fixed rate and receiving a variable rate or vice versa. The Company primarily utilizes these instruments, which the Company designates as cash flow hedges, to manage interest rate risk by converting a portion of its variable-rate loans or debt to a fixed rate.

• Interest rate collars Interest rate collars are agreements that create a range within which interest rates can fluctuate. The interest rate collar protects against significant decreases in interest rates but limits the benefits when interest rates increase. These instruments are designated as cash flow hedges and are used by the Company to manage interest rate risk by reducing the variability in cash flows that can occur with variable-rate loans.

• Interest rate floors Interest rate floors are agreements that protect against significant decreases in interest rates if interest rates fall below a specified level over an agreed period of time. These instruments are designated as cash flow hedges and are used by the Company to manage interest rate risk by reducing the variability in cash flows that can occur with variable-rate loans.

• Interest rate lock commitments The Company enters into commitments to originate mortgage loans intended for sale whereby the interest rate on the prospective loan is determined prior to funding (“rate lock”). A rate lock is provided to a borrower, subject to conditional performance obligations, for a specified period of time that typically does not exceed 60 days. Rate lock commitments on mortgage loans that are intended to be sold are recognized as derivatives. Accordingly, such commitments are recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage income on the consolidated statements of comprehensive income.

• Forward sales commitments The Company uses forward sales commitments to protect the value of its rate locks and mortgage loans held for sale from changes in interest rates and pricing between the origination of the rate lock and sale of these loans, as changes in interest rates have the potential to cause a decline in value of rate locks and mortgage loans included in the held for sale portfolio. These commitments are recognized as derivatives and recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage income on the consolidated statements of comprehensive income.

• Equity-indexed certificates of depositIBERIABANK offers its customers a certificate of deposit that provides the purchaser a guaranteed return of principal at maturity plus a potential return, which allows IBERIABANK to identify a known cost of funds. The rate of return is based on the performance of a group of publicly traded stocks that represent a variety of industry segments. Because it is based on an equity index, the rate of return represents an embedded derivative that is not clearly and closely related to the host instrument and is to be accounted for separately. Accordingly, the certificate of deposit is separated into two components: a zero coupon certificate of deposit (the host instrument) and a written option purchased by the depositor (an embedded derivative). The discount on the zero coupon deposit is amortized over the life of the deposit, and the written option is carried at fair value on the Company’s consolidated balance sheets, with changes in fair value recorded through earnings. IBERIABANK offsets the risks of the written option by purchasing an option with terms that mirror the written option, which is also carried at fair value on the Company’s consolidated balance sheets.

Off-balance-Sheet Credit-related Financial Instruments

OFF-BALANCE SHEET CREDIT-RELATED FINANCIAL INSTRUMENTS

In the ordinary course of business, the Company executes various commitments to extend credit, including commitments under commercial construction arrangements, commercial and home equity lines of credit, credit card arrangements, commercial letters of credit, and standby letters of credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed. Such financial instruments are recorded on the funding date. At December 31, 2018 and 2017, the fair value of guarantees under commercial and standby letters of credit was not material.

Transfers of Financial Assets

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets, or portions thereof which meet the definition of a participating interest, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when 1) the assets have been legally isolated from the Company, 2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and 3) the Company does not maintain effective control over the transferred assets. If the transfer does not satisfy all three criteria, the transaction is recorded as a secured borrowing.

If the transfer is accounted for as a sale, the transferred assets are derecognized from the Company’s balance sheet and a gain or loss on sale is recognized. If the transfer is accounted for as a secured borrowing, the transferred assets remain on the Company’s balance sheet and the proceeds from the transaction are recognized as a liability.

Servicing Rights

The Company recognizes the rights to service mortgage and other loans as separate assets, which are recorded in "other assets" in the consolidated balance sheets, when purchased or when servicing is contractually separated from the underlying loans by sale with servicing rights retained.

For loan sales with servicing retained, a servicing right, generally an asset, is recorded at fair value at the time of sale for the right to service the loans sold. All servicing rights are identified by class and amortized over the remaining service life of the loan.

Income Taxes

INCOME TAXES

The Company and all subsidiaries file a consolidated Federal income tax return on a calendar year basis. The Company files income tax returns in the U.S. Federal jurisdiction and various state and local jurisdictions through IBERIABANK Corporation (Parent), IBERIABANK, and their respective subsidiaries. In lieu of Louisiana state income tax, IBERIABANK is subject to the Louisiana bank shares tax, portions of which are included in both "non-interest expense" and "income tax expense" in the Company’s consolidated statements of comprehensive income. With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations for years before 2014.

Deferred income tax assets and liabilities are determined using the liability or balance sheet method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in "non-interest expense."

Investments in qualified affordable housing projects that meet certain criteria are accounted for under the proportional amortization method. Under this method, the expense associated with the investments is recognized in income tax expense rather than non-interest expense. The Company has also elected to utilize the deferral method for investments that generate investment tax credits. Under this approach, the investment tax credits are recognized as a reduction of the related asset rather than income tax expense.

Share-based Compensation Plans

SHARE-BASED COMPENSATION PLANS

The Company issues stock options, restricted stock awards, restricted share units, and phantom stock awards under various plans to directors, officers, and other key employees. Compensation cost for all awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period, taking into account retirement eligibility. The majority of the Company's share-based awards qualify for equity accounting and contain service conditions. The fair value of awards is measured at the grant date and not subsequently remeasured. The Company accounts for share-based forfeitures as they occur.

For awards that contain a market condition, the Company includes the market condition in the determination of the grant date fair value of the award. Compensation cost for an award with a market condition is recognized regardless of whether the market condition is satisfied, assuming the requisite service is met. The Company does not include performance conditions in the determination of the grant date fair value of the award. Compensation cost for an award with a performance condition is not recognized if the performance condition is not satisfied. Phantom stock awards are accounted for as liability awards and are remeasured at each reporting period based on their fair value until the date of settlement. Compensation cost for each reporting period until settlement is based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered at the reporting date) in the fair value of the phantom stock award for each reporting period.

Compensation expense relating to share-based awards is recognized in net income as part of “salaries and employee benefits” on the consolidated statements of comprehensive income for employees and “professional services” for non-employee directors. The exercise price for the options granted by the Company is not less than the fair market value of the underlying stock at the grant date.

Earnings Per Common Share

EARNINGS PER COMMON SHARE

Basic earnings per share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares, in the form of stock options or restricted stock units, had been issued, as well as any adjustment to income that would result from the assumed issuance. Participating common shares issued by the Company relate to unvested outstanding restricted stock awards, the earnings allocated to which are used in determining income available to common shareholders under the two-class method. The two-class method allocates earnings for the period between common shareholders and other participating securities holders. The participating awards receiving dividends are allocated the same percentage of income as if they were outstanding shares.

Share Repurchases

SHARE REPURCHASES

The Company classifies repurchased shares as a reduction to issued shares of common stock and adjusts the stated value of common stock and paid-in-capital.

Comprehensive Income

COMPREHENSIVE INCOME

Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and cash flow hedges, are reported as a separate component of the shareholders’ equity section of the consolidated balance sheets, such items along with net income are components of comprehensive income.

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company estimates fair value based on the assumptions market participants would use when selling an asset or transferring a liability and characterizes such measurements within the fair value hierarchy based on the inputs used to develop those assumptions and measure fair value. The hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

Following is a description of the valuation methodologies used for financial instruments measured at fair value, as well as the classification of such instruments within the valuation hierarchy. The descriptions below are exclusive of assets or liabilities acquired in business combinations, as all such instruments are required to initially be measured at fair value.

• Cash and cash equivalents The carrying amounts of cash and cash equivalents approximate their fair value and are classified within Level 1 of the fair value hierarchy.

• Investment securities Securities are classified within Level 1 where quoted market prices are available in an active market. If quoted market prices are unavailable, fair value is estimated using quoted prices of securities with similar characteristics and the securities are classified within Level 2 of the fair value hierarchy.

• Mortgage loans held for sale Mortgage loans originated and held for sale are recorded at fair value under the fair value option, unless otherwise noted. When determining the fair value of loans held for sale, the Company obtains quotes or bids on these loans directly from the purchasing financial institutions. Mortgage loans held for sale are classified within Level 2 of the fair value hierarchy.

• Mortgage loans held for investment at fair value option The fair value of mortgage loans held for investment at fair value option is determined by a third party using a discounted cash flow model using various assumptions about future loan performance and market discount rates. Mortgage loans held for investment at fair value option are classified within Level 3 of the fair value hierarchy.

• Loans The fair values of mortgage loans are estimated using an exit price methodology that is based on present values using interest rate that would be charged for a similar loan to a borrower with similar risk at December 31, 2018, weighted for varying maturity dates and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. At December 31, 2017, the fair value of mortgage loans was estimated using an entry value methodology.

Other loans and leases are valued based on present values using the interest rate that would be charged for a similar instrument to a borrower with similar risk at December 31, 2018, applicable to each category of instruments, and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. At December 31, 2017, the fair value of other loans and leases was estimated using an entry value methodology.

At December 31, 2018 and 2017, mortgage and other loans and leases are classified within Level 3 of the fair value hierarchy.

• Impaired loans Fair value measurements for impaired loans are determined using either a present value of expected future cash flows discounted using the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral-dependent (Level 3 of the fair value hierarchy). Fair value of the collateral is determined by appraisals or independent valuation less costs to sell. Impaired loans for which the fair value of the collateral is higher than the recorded investment in the loan are not adjusted to fair value and therefore not recorded in the Company’s non-recurring fair value measurements section of the Fair Value Measurements footnote.

• Other real estate owned Fair values of OREO are determined by sales agreement or appraisal and costs to sell are based on estimation per the terms and conditions of the sales agreement or amounts commonly used in real estate transactions. Inputs include appraisal values on the properties or recent sales activity for similar assets in the property’s market. Updated appraisals are obtained on at least an annual basis. OREO measured at fair value is classified within Level 3 of the fair value hierarchy.

• Derivative financial instruments Fair values of interest rate swaps, interest rate locks, interest rate collars, interest rate floors, foreign exchange contracts, forward sales contracts, and written and purchased options are estimated using prices of financial instruments with similar characteristics and thus are classified within Level 2 of the fair value hierarchy.

• Deposits The fair value of non-interest-bearing deposits, NOW accounts, money market deposits and savings accounts are the amounts payable on demand at the reporting date. Certificates of deposit and other time deposits are valued using a discounted cash flow model based on the weighted-average rate at December 31, 2018 and 2017 for deposits with similar remaining maturities. The Company evaluated the inputs to the fair value estimate and based on our use of quoted prices for similar liabilities determined that the fair value of deposits should be classified within Level 2 of the fair value hierarchy.

• Short-term borrowings Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily, are reflected at the amount of cash received in connection with the transaction, and are classified within Level 1 of the fair value hierarchy. The carrying amounts of other short-term borrowings maturing within ninety days approximate their fair values and are classified within Level 2 of the fair value hierarchy as similar instruments are traded in active markets.

• Long-term debt The fair values of long-term debt are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt is classified within Level 3 of the fair value hierarchy.

Recent Accounting Pronouncements

NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS

Pronouncements adopted during the year ended December 31, 2018:

ASU No. 2014-09

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which implements a common revenue standard and clarifies the principles used for recognizing revenue. The ASU clarifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Revenue from Contracts with Customers

The majority of the Company’s income streams (e.g., interest and dividend income and mortgage income) are accounted for in accordance with GAAP literature outside the scope of ASC 606, Revenue from Contracts with Customers. Details regarding income recognition for interest and non-interest streams can be found throughout Note 1 - Summary of Significant Accounting Policies. Impairment losses recognized against certain receivables (e.g., NSF fees) and capitalized costs (e.g., sales commissions) associated with contracts within the scope of ASC 606 are immaterial.

Non-interest income from service charges on deposit accounts, broker commissions, ATM/debit card fee income, credit card and merchant-related income (e.g., interchange fees), and transactional income from traditional banking services (part of other non-interest income) are the significant income streams within the scope of ASC 606 associated with the IBERIABANK reportable segment. Non-interest income from title revenue is associated with the LTC reportable segment.

Recognition of Revenue from Contracts with Customers

The Company enters into various contracts with customers to provide traditional banking services, including asset management, on a routine basis. The Company’s performance obligations are generally service-related and provided on a daily or monthly basis. The Company does not typically have performance obligations which extend beyond a reporting period. The performance obligations are generally satisfied upon completion of service (i.e., as services are rendered) and the fees are collected at such time, or shortly thereafter. The fees are readily determinable and allocated individually to each service. It is not typical for contracts to require significant judgment to determine the transaction price. Some contracts contain variable consideration; however, the variable consideration is generally constrained (not estimable) as it is based on the occurrence or nonoccurence of a contingent event (or another constraint in some circumstances). The Company generally records the variable consideration when the contingent event occurs and the fee is determinable.

The Company provides some services for customers in which it acts in an agent capacity, but generally acts in a principal capacity. Payment terms and conditions vary slightly amongst services; however, amounts are generally invoiced and due or collected by the Company within 30 days, although some fees may be prepaid. The Company bills the customer periodically as performance obligations are satisfied for most services. Therefore, revenue for services provided is generally recognized in the amount invoiced (except in circumstances of prepayment) as that amount corresponds directly to the value of the Company’s performance. In the normal course of business, the Company does not generally grant refunds for services provided. As such, the Company does not establish provisions for estimated returns.

Title revenue associated with services provided by LTC, as well as broker commissions, ATM/debit card fee income, credit card and merchant-related income (e.g., interchange fees), and transactional fees from traditional banking services generated within IBERIABANK are generally recognized at the point-in-time the services are provided. The Company has determined this recognition to be appropriate as, upon completion of services, the Company has completed its performance obligations, has a present right to payment (or has collected the cash), and the customer is able to obtain (or has obtained) substantially all of the benefits from the performance obligation (i.e., the provided services). Revenues from service charges on deposit accounts are recognized at the end of the monthly service period (e.g., account service charges) or the date the performance obligation is satisfied (e.g., NSF, stop payment, wire transfer, etc.), except for deposit account services performed by Treasury Management which are recognized on a monthly basis, as these services are performed over that time. Asset management fees (e.g., trust fees) are generally recognized at the end of the monthly service period, but fees are not collected until the beginning of the subsequent month, although some contracts may have quarterly terms and/or be prepaid. NSF fees which are not initially paid are subsequently recorded as a loan (along with the overdraft balance) and remain classified as such until the amount is paid or charged-off (generally after 60 days).

Adoption of ASC 606

The Company adopted ASC 606 as of January 1, 2018 for all contracts as of the effective date. Prior period amounts have been reclassified to conform to current guidance requirements related to the net presentation of certain costs associated with interchange fees and rewards programs. The reclassification of prior period amounts reduced non-interest income and non-interest expense by approximately $8.9 million for the year ended December 31, 2017 and had no impact on net income. There was no cumulative adjustment made to opening retained earnings as of January 1, 2018.

ASU No. 2016-01

In January 2016, the FASB issued ASU No. 2016-01, Financial Statements - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which impacts how the Company measures certain equity investments and discloses and presents certain financial instruments through the application of the “exit price” methodology.

The Company adopted this ASU as of January 1, 2018. Under the new guidance, equity investments can no longer be classified as trading or available for sale (AFS), and the related unrealized holding gains and losses can no longer be recognized in OCI. Per the ASU, such equity investments should be measured at fair value with adjustments recognized in earnings at the end of each reporting period. The Company’s portfolio of equity investments previously classified as AFS investment securities, which were not material at the date of adoption, were reclassified to “other assets.” As these equity investments were previously measured at fair value, the implementation of this ASU did not require any changes to the Company’s valuation method for these equity investments. As a result of adopting this ASU, the Company recorded an immaterial cumulative-effect adjustment to retained earnings for previously recorded fair value adjustments related to these equity investments. The Company elected the practical expedient measurement alternative to prospectively account for other equity investments that do not have readily determinable fair values at cost less impairment plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer.

The Company also modified its methodology for determining the estimated fair value for loans measured at amortized cost to the “exit price” methodology as required by this ASU. The fair value disclosure for loans measured at amortized cost had previously been determined using an “entry price” methodology. The Company’s “exit price” methodology estimates the fair value of these loans based on the present value of the future cash flows using the interest rate that would be charged for a similar loan to a borrower with similar risk at the indicated balance sheet date, adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant.

ASU No. 2016-15

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (ASC 230): Classification of Certain Cash Receipts and Cash Payments, in order to reduce current diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.

The Company retrospectively adopted this ASU effective January 1, 2018. The adoption of this ASU did not impact the Company’s consolidated statements of cash flows.

ASU No. 2017-04

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (ASC 350): Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Therefore, any carrying amount which exceeds the reporting unit’s fair value up to the amount of goodwill recorded will be recognized as an impairment loss.

The Company elected to early adopt this ASU prospectively effective September 30, 2018. The Company completed its annual impairment test as of October 1, 2018 in accordance with this ASU and concluded that goodwill was not impaired as of the testing date.

ASU No. 2017-12

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (ASC 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results.

The Company elected to early adopt this ASU effective January 1, 2018. The modified-retrospective adoption of this ASU did not impact the Company’s consolidated financial statements in the current or prior periods.

ASU No. 2018-15

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The guidance requires customers in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. ASC 350-40 requires the capitalization of certain costs incurred only during the application development stage (e.g., costs of integration with on-premises software, coding, configuration, and customization). ASC 350-40 also requires entities to expense costs during the preliminary project and post-implementation stages (e.g., costs of project planning, training, maintenance after implementation, data conversion) as they are incurred. The accounting for the service element of the arrangement is not affected by the ASU.

Capitalized implementation costs related to a hosting arrangement that is a service contract should be amortized over the term of the hosting arrangement. Capitalized implementation costs and the related expense should be presented in the same line item in the statement of financial position and income statement as the fees associated with the hosting element of the arrangement. Capitalized implementation cost payments should be classified in the statement of cash flows in the same manner as payments for the service component of the hosting arrangement (typically operating cash flows).

The Company elected to early adopt the guidance prospectively effective August 31, 2018. The adoption of the guidance did not have a significant impact on the Company’s consolidated financial statements.

Pronouncements issued but not yet adopted:

ASU No. 2016-02, ASU No. 2018-11, and ASU No. 2018-20

In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). This guidance requires lessees to recognize lease assets (i.e., right of use assets) and liabilities on the balance sheet for leases that are classified as operating leases. The lessor accounting model was relatively unchanged by this ASU. Additional guidance includes, but is not limited to, the elimination of leveraged leases; modification to the definition of a lease; guidance on sale and leaseback transactions; and disclosure of additional quantitative and qualitative information. ASU No. 2016-02 required lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.

In July 2018, the FASB issued ASU No. 2018-11, Leases (ASC 842): Targeted Improvements. This ASU includes an optional transition method to apply ASU No. 2016-02 on a prospective basis as of the effective date, with a cumulative effect adjustment to retained earnings in the period of adoption, instead of applying the guidance using a modified retrospective approach as originally required under ASU No. 2016-02. ASU No. 2018-11 also provides lessors with a practical expedient by class of underlying asset to not separate nonlease components from the associated lease component under certain circumstances and clarifies which guidance (ASC 842 or ASC 606) to apply to combined lease and nonlease components.

In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors. This ASU permits lessors to elect to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs and instead, exclude these taxes from the measurement of lease revenue and expense and provide certain disclosures. The ASU adds further clarity regarding lessor recognition and measurement of (i) lessor costs paid directly by lessees to third parties on the lessor’s behalf and lessor costs that are paid by the lessor and reimbursed by the lessee, and (ii) certain variable payments that are allocated to the lease and non-lease components when changes in the facts and circumstances on which the variable payment is based occur.

The Company elected the optional transition method and adopted ASU No. 2016-02, ASU No. 2018-11 and ASU No. 2018-20 effective January 1, 2019. The Company occupies certain banking offices and uses equipment under operating lease agreements, which were historically not recognized on the consolidated balance sheets. As a result of adopting this ASU, the Company anticipates recording a net increase to both assets and liabilities of approximately $100 million on January 1, 2019. The Company also elected the package of practical expedients that do not require the reassessment of expired or existing contracts’ lease classification, direct costs, or whether they are or contain leases. The Company did not elect the hindsight practical expedient. The Company did not elect to account for lease and nonlease components as a single lease component. The adjustment to retained earnings on January 1, 2019 as a result of adopting this ASU and the related impact on the Company’s regulatory capital ratios was not significant.

ASU No. 2016-13

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments. The guidance introduces an impairment model that is based on expected credit losses (ECL), rather than incurred losses, to estimate credit losses on certain types of financial instruments such as loans and held-to-maturity securities, including certain off-balance sheet financial instruments such as loan commitments. The measurement of ECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. Financial instruments with similar risk characteristics must be grouped together when estimating ECL.

The ASU also amends the current AFS security impairment model for debt securities. The new model will require an estimate of ECL when the fair value is below the amortized cost of the asset through the use of an allowance to record estimated credit losses (and subsequent recoveries). Non-credit related losses will continue to be recognized through OCI.

In addition, the guidance provides for a simplified accounting model for purchased financial assets with a more-than-insignificant amount of credit deterioration since their origination. The initial estimate of expected credit losses would be recognized through an ALLL with an offset (i.e., increase) to the cost basis of the related financial asset at acquisition.

ASU No. 2016-13 will be effective for fiscal years beginning after December 15, 2019, including interim periods. The ASU will be applied through a modified-retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. A prospective transition approach is required for debt securities for which OTTI had been recognized before the effective date. Amounts previously recognized in AOCI as of the date of adoption that relate to improvements in cash flows expected to be collected should continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption should be recorded in earnings when received.

The Company has established a cross-function implementation team and engaged third-party consultants who have jointly developed a project plan to provide implementation oversight. The Company is in the process of developing and implementing current expected credit loss models that satisfy the requirements of the ASU and continues to identify key interpretive issues. The Company expects that this ASU will result in an increase to ALLL given the change to estimate losses over the full remaining estimated life of the loan portfolio as well as the adoption of an allowance for debt securities. The extent of the increase in the ALLL is not yet known and will depend on the composition of our loan and securities portfolios, finalization of credit loss models, macroeconomic conditions and forecasts at the adoption date.

ASU No. 2018-13

In August 2018, the FASB released ASU No. 2018-13, Fair Value Measurement (ASC 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements.

The ASU No. 2018-13 will be effective for fiscal years beginning after December 15, 2019, including interim periods, with early adoption permitted.

The Company is currently evaluating the impact of the ASU. While adoption of this ASU will result in changes to existing disclosures, it will not have any impact on our financial position or results of operation.

ASU No. 2018-16

In October 2018, the FASB released ASU No. 2018-16, Derivatives and Hedging (ASC 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes, which permits the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815 in addition to the interest rates on direct Treasury obligations of the U.S. government (UST), the London Interbank Offered Rate (LIBOR) swap rate, the OIS Rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate.

The required effective date of this ASU is dependent upon when an entity adopts the provisions of ASU No. 2017-12. The Company adopted ASU No. 2018-16 effective January 1, 2019 on a prospective basis for qualifying new or redesignated hedging relations as ASU No. 2017-12 had previously been adopted on January 1, 2018. The implementation of this ASU will not have a significant impact on the Company’s consolidated financial statements.

ASU No. 2018-17

In October 2018, the FASB released ASU No. 2018-17, Consolidation (ASC 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, which improves the consistency of the application of the variable interest entity (VIE) related party guidance for common control arrangements. This ASU requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP) when determining whether a decision-making fee is a variable interest.

ASU No. 2018-17 will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The guidance should be applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented.

The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.

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Acquisition Activity (Tables)

12 Months Ended

Dec. 31, 2018

Gibraltar Private Bank & Trust Company

Business Acquisition [Line Items]

Schedule of Business Acquisitions

(Dollars in thousands)	Number of Shares	Amount
Equity consideration
Common stock issued	2,787,773	$	214,659
Total equity consideration		214,659
Non-equity consideration
Cash		7
Total consideration paid		214,666
Fair value of net assets assumed including identifiable intangible assets		150,414
Goodwill		$	64,252

(Dollars in thousands)	Gibraltar Fair Value
Assets
Cash and cash equivalents	$	102,575
Investment securities	19,169
Equity securities	27,519
Loans	1,447,475
Core deposit intangible assets	18,529
Other assets	12,005
Total assets acquired	$	1,627,272
Liabilities
Deposit liabilities	$	1,064,803
Long-term borrowings	405,107
Deferred tax liability, net	1,761
Other liabilities	5,187
Total liabilities assumed	$	1,476,858

Sabadell United

Business Acquisition [Line Items]

Schedule of Pro Forma Information

The following table presents unaudited pro forma information as if the acquisition occurred on January 1, 2016. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Company acquired Sabadell United on January 1, 2016. Furthermore, cost savings and other business synergies related to the acquisition are not reflected in the pro forma amounts.

	Unaudited Pro Forma for Year Ended December 31,
(Dollars in thousands)	2017		2016
Net interest income	$	924,348	$	842,945
Non-interest income	219,021		255,022
Net income	174,246		246,799

Schedule of Business Acquisitions

(Dollars in thousands)	Number of Shares	Amount
Equity consideration
Common stock issued	2,610,304	$	211,043
Total equity consideration		211,043
Non-equity consideration
Cash		809,159
Total consideration paid		1,020,202
Fair value of net assets assumed including identifiable intangible assets		579,157
Goodwill		$	441,045

(Dollars in thousands)	Sabadell United Fair Value
Assets
Cash and cash equivalents	$	318,819
Investment securities	964,123
Loans	4,030,777
Core deposit intangible assets	66,600
Deferred tax asset, net	44,480
Other assets	92,820
Total assets acquired	$	5,517,619
Liabilities
Deposit liabilities	$	4,382,780
Short-term borrowings	520,539
Other liabilities	35,143
Total liabilities assumed	$	4,938,462

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities

The amortized cost and fair values of investment securities, with gross unrealized gains and losses, consist of the following:

	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	995	$	3	$	—		$	998
Obligations of state and political subdivisions	177,566		2,045		(723		)	178,888
Mortgage-backed securities:
Residential agency	3,837,584		8,886		(57,073		)	3,789,397
Commercial agency	730,148		2,363		(14,799		)	717,712
Other securities	97,020		351		(787		)	96,584
Total securities available for sale	$	4,843,313	$	13,648	$	(73,382	)	$	4,783,579
Securities held to maturity:
Obligations of state and political subdivisions	$	188,684	$	309	$	(2,497	)	$	186,496
Mortgage-backed securities:
Residential agency	18,762		30		(1,011		)	17,781
Total securities held to maturity	$	207,446	$	339	$	(3,508	)	$	204,277

	December 31, 2017
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	41,003	$	18	$	(406	)	$	40,615
Obligations of state and political subdivisions	271,451		4,246		(1,493		)	274,204
Mortgage-backed securities:
Residential agency	3,675,367		1,233		(52,090		)	3,624,510
Commercial agency	546,105		228		(8,938		)	537,395
Other securities	114,005		247		(914		)	113,338
Total securities available for sale	$	4,647,931	$	5,972	$	(63,841	)	$	4,590,062
Securities held to maturity:
Obligations of state and political subdivisions	$	206,736	$	1,530	$	(275	)	$	207,991
Mortgage-backed securities:
Residential agency	20,582		41		(650		)	19,973
Total securities held to maturity	$	227,318	$	1,571	$	(925	)	$	227,964

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:

	December 31, 2018
	Less Than Twelve Months					Twelve Months or More					Total
(Dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
Obligations of state and political subdivisions	$	(9	)	$	4,112	$	(714	)	$	30,268	$	(723	)	$	34,380
Mortgage-backed securities:
Residential agency	(816		)	197,057		(56,257		)	2,193,862		(57,073		)	2,390,919
Commercial agency	(43		)	18,190		(14,756		)	483,565		(14,799		)	501,755
Other securities	(94		)	18,025		(693		)	32,577		(787		)	50,602
Total securities available for sale	$	(962	)	$	237,384	$	(72,420	)	$	2,740,272	$	(73,382	)	$	2,977,656
Securities held to maturity:
Obligations of state and political subdivisions	$	(3	)	$	2,059	$	(2,494	)	$	151,699	$	(2,497	)	$	153,758
Mortgage-backed securities:
Residential agency	—			—		(1,011		)	17,478		(1,011		)	17,478
Total securities held to maturity	$	(3	)	$	2,059	$	(3,505	)	$	169,177	$	(3,508	)	$	171,236

	December 31, 2017
	Less Than Twelve Months					Twelve Months or More					Total
(Dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	(254	)	$	29,744	$	(152	)	$	9,848	$	(406	)	$	39,592
Obligations of state and political subdivisions	(326		)	31,601		(1,167		)	68,609		(1,493		)	100,210
Mortgage-backed securities:
Residential agency	(22,760		)	2,366,569		(29,330		)	1,061,588		(52,090		)	3,428,157
Commercial agency	(3,503		)	310,769		(5,435		)	164,470		(8,938		)	475,239
Other securities	(914		)	75,302		—			—		(914		)	75,302
Total securities available for sale	$	(27,757	)	$	2,813,985	$	(36,084	)	$	1,304,515	$	(63,841	)	$	4,118,500
Securities held to maturity:
Obligations of state and political subdivisions	$	(263	)	$	65,817	$	(12	)	$	3,031	$	(275	)	$	68,848
Mortgage-backed securities:
Residential agency	(2		)	333		(648		)	19,269		(650		)	19,602
Total securities held to maturity	$	(265	)	$	66,150	$	(660	)	$	22,300	$	(925	)	$	88,450

Held-to-maturity Securities

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:

	December 31, 2018
	Less Than Twelve Months					Twelve Months or More					Total
(Dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
Obligations of state and political subdivisions	$	(9	)	$	4,112	$	(714	)	$	30,268	$	(723	)	$	34,380
Mortgage-backed securities:
Residential agency	(816		)	197,057		(56,257		)	2,193,862		(57,073		)	2,390,919
Commercial agency	(43		)	18,190		(14,756		)	483,565		(14,799		)	501,755
Other securities	(94		)	18,025		(693		)	32,577		(787		)	50,602
Total securities available for sale	$	(962	)	$	237,384	$	(72,420	)	$	2,740,272	$	(73,382	)	$	2,977,656
Securities held to maturity:
Obligations of state and political subdivisions	$	(3	)	$	2,059	$	(2,494	)	$	151,699	$	(2,497	)	$	153,758
Mortgage-backed securities:
Residential agency	—			—		(1,011		)	17,478		(1,011		)	17,478
Total securities held to maturity	$	(3	)	$	2,059	$	(3,505	)	$	169,177	$	(3,508	)	$	171,236

	December 31, 2017
	Less Than Twelve Months					Twelve Months or More					Total
(Dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	(254	)	$	29,744	$	(152	)	$	9,848	$	(406	)	$	39,592
Obligations of state and political subdivisions	(326		)	31,601		(1,167		)	68,609		(1,493		)	100,210
Mortgage-backed securities:
Residential agency	(22,760		)	2,366,569		(29,330		)	1,061,588		(52,090		)	3,428,157
Commercial agency	(3,503		)	310,769		(5,435		)	164,470		(8,938		)	475,239
Other securities	(914		)	75,302		—			—		(914		)	75,302
Total securities available for sale	$	(27,757	)	$	2,813,985	$	(36,084	)	$	1,304,515	$	(63,841	)	$	4,118,500
Securities held to maturity:
Obligations of state and political subdivisions	$	(263	)	$	65,817	$	(12	)	$	3,031	$	(275	)	$	68,848
Mortgage-backed securities:
Residential agency	(2		)	333		(648		)	19,269		(650		)	19,602
Total securities held to maturity	$	(265	)	$	66,150	$	(660	)	$	22,300	$	(925	)	$	88,450

The amortized cost and fair values of investment securities, with gross unrealized gains and losses, consist of the following:

	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	995	$	3	$	—		$	998
Obligations of state and political subdivisions	177,566		2,045		(723		)	178,888
Mortgage-backed securities:
Residential agency	3,837,584		8,886		(57,073		)	3,789,397
Commercial agency	730,148		2,363		(14,799		)	717,712
Other securities	97,020		351		(787		)	96,584
Total securities available for sale	$	4,843,313	$	13,648	$	(73,382	)	$	4,783,579
Securities held to maturity:
Obligations of state and political subdivisions	$	188,684	$	309	$	(2,497	)	$	186,496
Mortgage-backed securities:
Residential agency	18,762		30		(1,011		)	17,781
Total securities held to maturity	$	207,446	$	339	$	(3,508	)	$	204,277

	December 31, 2017
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available for sale:
U.S. Government-sponsored enterprise obligations	$	41,003	$	18	$	(406	)	$	40,615
Obligations of state and political subdivisions	271,451		4,246		(1,493		)	274,204
Mortgage-backed securities:
Residential agency	3,675,367		1,233		(52,090		)	3,624,510
Commercial agency	546,105		228		(8,938		)	537,395
Other securities	114,005		247		(914		)	113,338
Total securities available for sale	$	4,647,931	$	5,972	$	(63,841	)	$	4,590,062
Securities held to maturity:
Obligations of state and political subdivisions	$	206,736	$	1,530	$	(275	)	$	207,991
Mortgage-backed securities:
Residential agency	20,582		41		(650		)	19,973
Total securities held to maturity	$	227,318	$	1,571	$	(925	)	$	227,964

Additional Information on Securities in a Continuous Loss Position

Additional information on securities that have been in a continuous loss position for over twelve months at December 31 is presented in the following table.

(Dollars in thousands)	2018		2017
Number of securities
Mortgage-backed securities:
Residential agency	302		153
Commercial agency	72		28
Obligations of state and political subdivisions	60		28
U.S. Government-sponsored enterprise obligations	—		1
Other securities	7		—
	441		210
Amortized Cost Basis
Mortgage-backed securities:
Residential agency	$	2,268,608	$	1,110,834
Commercial agency	498,321		169,905
Obligations of state and political subdivisions	185,175		72,820
U.S. Government-sponsored enterprise obligations	—		10,000
Other securities	33,270		—
	$	2,985,374	$	1,363,559
Unrealized Loss
Mortgage-backed securities:
Residential agency	$	57,268	$	29,977
Commercial agency	14,756		5,435
Obligations of state and political subdivisions	3,208		1,180
U.S. Government-sponsored enterprise obligations	—		152
Other securities	693		—
	$	75,925	$	36,744

Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Maturity

The amortized cost and estimated fair value of investment securities by maturity at December 31, 2018 are presented in the following table. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities. Weighted average yields are calculated on the basis of the yield to maturity based on the amortized cost of each security.

	Securities Available for Sale						Securities Held to Maturity
(Dollars in thousands)	Weighted Average Yield		Amortized Cost		Estimated Fair Value		Weighted Average Yield		Amortized Cost		Estimated Fair Value
Within one year or less	3.84	%	$	2,958	$	2,967	2.77	%	$	1,309	$	1,313
One through five years	2.68		63,397		63,183		2.47		6,303		6,291
After five through ten years	2.67		829,027		819,056		2.56		42,827		42,571
Over ten years	2.94		3,947,931		3,898,373		2.62		157,007		154,102
	2.89	%	$	4,843,313	$	4,783,579	2.60	%	$	207,446	$	204,277

Schedule of Realized Gains and Losses from Sale of Securities Classified as Available for Sale

The following is a summary of realized gains and losses from the sale of securities classified as available for sale. Gains or losses on securities sold are recorded on the trade date, using the specific identification method.

	Years Ended December 31
(Dollars in thousands)	2018			2017			2016
Realized gains	$	40		$	1,651		$	2,949
Realized losses	(49,940		)	(1,799		)	(948		)
	$	(49,900	)	$	(148	)	$	2,001

Schedule of Securities in Other Assets on Company's Consolidated Balance Sheets

The Company accounts for the following securities at cost less impairment plus or minus any observable price changes, which approximates fair value, with the exception of CRA and Community Development Investment Funds, which are recorded at fair value. Other Equity Securities, which are presented in “other assets” on the consolidated balance sheets, are as follows:

(Dollars in thousands)	2018		2017
Federal Home Loan Bank (FHLB) stock	$	95,213	$	95,171
Federal Reserve Bank (FRB) stock	85,630		79,191
CRA and Community Development Investment Funds	1,884		—
Other investments	9,709		3,008
	$	192,436	$	177,370

XML

Loans (Tables)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Schedule of Non-Covered and Covered Loans

Loans and leases consist of the following at December 31:

(Dollars in thousands)	2018		2017
Commercial loans and leases:
Real estate - construction	$	1,196,366	$	1,240,396
Real estate - owner-occupied	2,395,822		2,375,321
Real estate - non-owner-occupied	5,796,117		5,322,513
Commercial and industrial (1)	5,737,017		5,135,067
	15,125,322		14,073,297
Residential mortgage loans	4,359,156		3,056,352
Consumer loans:
Home equity	2,304,694		2,292,275
Other	730,643		656,257
	3,035,337		2,948,532
Total	$	22,519,815	$	20,078,181

Schedule of Aging of Loans

The following tables provide an analysis of the aging of loans and leases as of December 31, 2018 and 2017. Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

	December 31, 2018
	Accruing
(Dollars in thousands)	Current or less than 30 Days Past Due		30-59 Days		60-89 Days		> 90 Days		Total Past Due		Non-accrual Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,167,795	$	1,054	$	—	$	—	$	1,054	$	1,094	$	26,423	$	1,196,366
Real estate - owner-occupied	2,305,743		7,167		—		—		7,167		10,260		72,652		2,395,822
Real estate - non-owner-occupied	5,703,131		7,473		360		—		7,833		15,898		69,255		5,796,117
Commercial and industrial	5,645,304		5,139		1,320		553		7,012		57,860		26,841		5,737,017
Residential mortgage	4,218,146		2,768		13,063		1,575		17,406		30,396		93,208		4,359,156
Consumer - home equity	2,200,517		10,283		2,409		—		12,692		18,830		72,655		2,304,694
Consumer - other	719,122		4,695		1,601		—		6,296		2,846		2,379		730,643
Total	$	21,959,758	$	38,579	$	18,753	$	2,128	$	59,460	$	137,184	$	363,413	$	22,519,815

The following tables provide an analysis of the aging of loans and leases as of December 31, 2018 and 2017. Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

	December 31, 2018
	Accruing
(Dollars in thousands)	Current or less than 30 Days Past Due		30-59 Days		60-89 Days		> 90 Days		Total Past Due		Non-accrual Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,167,795	$	1,054	$	—	$	—	$	1,054	$	1,094	$	26,423	$	1,196,366
Real estate - owner-occupied	2,305,743		7,167		—		—		7,167		10,260		72,652		2,395,822
Real estate - non-owner-occupied	5,703,131		7,473		360		—		7,833		15,898		69,255		5,796,117
Commercial and industrial	5,645,304		5,139		1,320		553		7,012		57,860		26,841		5,737,017
Residential mortgage	4,218,146		2,768		13,063		1,575		17,406		30,396		93,208		4,359,156
Consumer - home equity	2,200,517		10,283		2,409		—		12,692		18,830		72,655		2,304,694
Consumer - other	719,122		4,695		1,601		—		6,296		2,846		2,379		730,643
Total	$	21,959,758	$	38,579	$	18,753	$	2,128	$	59,460	$	137,184	$	363,413	$	22,519,815

	December 31, 2017
	Accruing
(Dollars in thousands)	Current or less than 30 Days Past Due		30-59 Days		60-89 Days		> 90 Days		Total Past Due		Non-accrual Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,197,766	$	269	$	—	$	458	$	727	$	2,635	$	39,268	$	1,240,396
Real estate - owner-occupied	2,243,923		1,631		659		74		2,364		24,457		104,577		2,375,321
Real estate - non-owner-occupied	5,220,648		2,086		6,405		887		9,378		6,811		85,676		5,322,513
Commercial and industrial	5,014,438		5,788		5,726		146		11,660		77,823		31,146		5,135,067
Residential mortgage	2,877,048		10,083		8,136		5,317		23,536		17,387		138,381		3,056,352
Consumer - home equity	2,186,554		11,675		2,947		18		14,640		12,365		78,716		2,292,275
Consumer - other	642,244		5,286		1,026		—		6,312		3,910		3,791		656,257
Total	$	19,382,621	$	36,818	$	24,899	$	6,900	$	68,617	$	145,388	$	481,555	$	20,078,181

Schedule of Carrying Amount of Loans Acquired

The tables below show the fair value estimates of loans acquired from Gibraltar for these two subsections of the portfolio as of the acquisition date.

(Dollars in thousands)	Acquired Non-Impaired Loans
Contractually required principal and interest at acquisition	$	1,593,408
Expected losses and foregone interest	(25,029		)
Cash flows expected to be collected at acquisition	1,568,379
Fair value of acquired loans at acquisition	$	1,426,756

(Dollars in thousands)	Acquired Impaired Loans
Contractually required principal and interest at acquisition	$	29,929
Non-accretable difference (expected losses and foregone interest)	(3,636		)
Cash flows expected to be collected at acquisition	26,293
Accretable yield	(5,574		)
Basis in acquired loans at acquisition	$	20,719

Summary of Changes in Accretable Yields of Acquired Loans

The following is a summary of changes in the accretable difference for all loans accounted for under ASC 310-30 during the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Balance at beginning of period	$	152,623		$	175,054		$	227,502
Additions	5,574			32,937			—
Transfers from non-accretable difference to accretable yield	3,623			4,912			5,490
Accretion	(47,962		)	(56,337		)	(68,211		)
Changes in expected cash flows not affecting non-accretable differences (1)	19,484			(3,943		)	10,273
Balance at end of period	$	133,342		$	152,623		$	175,054

⁽¹⁾  Includes changes in cash flows expected to be collected due to the impact of changes in actual or expected timing of liquidation events, modifications, changes in interest rates and changes in prepayment assumptions.

Schedule of Modified TDRs

The following table provides information on how the TDRs were modified during the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Extended maturities	$	23,262	$	26,561	$	75,315
Interest rate adjustment	99		24		193
Maturity and interest rate adjustment	554		4,932		2,470
Movement to or extension of interest-rate only payments	881		4,161		27,931
Forbearance	4,432		7,226		76,819
Other concession(s) (1)	23,943		27,555		39,708
Total	$	53,171	$	70,459	$	222,436

⁽¹⁾  Other concessions may include covenant waivers, forgiveness of principal or interest associated with a customer bankruptcy, or a combination of any of the above concessions.

Schedule of Subsequently Defaulted TDRs

The following table presents the end of period balance for loans modified in a TDR during the years ended December 31:

	2018					2017					2016
(In thousands, except number of loans)	Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Commercial real estate - construction	3	$	4,819	$	3,830	4	$	9,404	$	9,628	3	$	3,024	$	3,035
Commercial real estate - owner-occupied	14	4,257		3,912		11	5,779		5,706		20	18,223		18,239
Commercial real estate - non-owner-occupied	20	3,719		3,428		19	11,974		13,738		25	16,644		10,093
Commercial and industrial	52	39,796		30,295		57	21,651		20,883		79	163,265		169,893
Residential mortgage	19	1,706		1,529		24	1,897		1,771		43	5,141		4,946
Consumer - home equity	65	10,607		8,951		123	16,346		15,862		158	13,273		12,568
Consumer - other	73	1,491		1,226		121	3,182		2,871		195	4,070		3,662
Total	246	$	66,395	$	53,171	359	$	70,233	$	70,459	523	$	223,640	$	222,436

Information detailing TDRs that defaulted during the years ended December 31, 2018, 2017, and 2016 and were modified in the previous twelve months (i.e., the twelve months prior to the default) is presented in the following table. The Company has defined a default as any loan with a loan payment that is currently past due greater than 30 days, or was past due greater than 30 days at any point during the previous twelve months, or since the date of modification, whichever is shorter.

	2018			2017			2016
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial real estate - construction	—	$	—	2	$	3,572	1	$	116
Commercial real estate - owner-occupied	2	142		6	4,668		3	3,473
Commercial real estate - non-owner-occupied	5	1,039		13	8,060		6	201
Commercial and industrial	13	3,757		32	6,550		22	14,707
Residential mortgage	8	773		16	1,218		8	405
Consumer - home equity	15	1,354		32	3,285		25	1,379
Consumer - other	38	447		62	1,381		59	944
Total	81	$	7,512	163	$	28,734	124	$	21,225

XML

Allowance for Credit Losses and Credit Quality (Tables)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Schedule of Allowance for Loan Losses for Covered and Non-Covered Loan Portfolios

A summary of changes in the allowance for credit losses for the years ended December 31 is as follows:

(Dollars in thousands)	2018			2017			2016
Allowance for credit losses
Allowance for loan and lease losses at beginning of period	$	140,891		$	144,719		$	138,378
Provision for loan and lease losses before adjustment attributable to FDIC loss share agreements	39,472			51,111			42,927
Adjustment attributable to FDIC loss share arrangements	—			—			1,497
Net provision for loan and lease losses	39,472			51,111			44,424
Adjustment attributable to FDIC loss share arrangements	—			—			(1,497		)
Transfer of balance to OREO and other	(7,172		)	934			(2,781		)
Charge-offs	(45,547		)	(62,466		)	(39,839		)
Recoveries	12,927			6,593			6,034
Allowance for loan and lease losses at end of period	$	140,571		$	140,891		$	144,719
Reserve for unfunded commitments at beginning of period	$	13,208		$	11,241		$	14,145
Balance created in acquisition accounting	709			1,370			—
Provision for (Reversal of) unfunded lending commitments	913			597			(2,904		)
Reserve for unfunded commitments at end of period	$	14,830		$	13,208		$	11,241
Allowance for credit losses at end of period	$	155,401		$	154,099		$	155,960

A summary of changes in the allowance for credit losses, by loan portfolio type, for the years ended December 31 is as follows:

	2018
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	54,201		$	53,916		$	9,117		$	23,657		$	140,891
Provision for (Reversal of) loan and lease losses	(829		)	23,866			4,200			12,235			39,472
Transfer of balance to OREO and other	(2,256		)	(812		)	(106		)	(3,998		)	(7,172		)
Charge-offs	(1,611		)	(29,578		)	(334		)	(14,024		)	(45,547		)
Recoveries	2,301			6,704			121			3,801			12,927
Allowance for loan and lease losses at end of period	$	51,806		$	54,096		$	12,998		$	21,671		$	140,571
Reserve for unfunded commitments at beginning of period	$	4,531		$	5,309		$	555		$	2,813		$	13,208
Balance created in acquisition accounting	118			40			551			—			709
Provision for (Reversal of) unfunded commitments	220			849			(240		)	84			913
Reserve for unfunded commitments at end of period	$	4,869		$	6,198		$	866		$	2,897		$	14,830
Allowance on loans individually evaluated for impairment	$	636		$	12,646		$	145		$	2,915		$	16,342
Allowance on loans collectively evaluated for impairment	45,651			39,949			6,961			18,705			111,266
Allowance on loans acquired with deteriorated credit quality	5,519			1,501			5,892			51			12,963
Loans and leases, net of unearned income:
Balance at end of period	$	9,388,305		$	5,737,017		$	4,359,156		$	3,035,337		$	22,519,815
Balance at end of period individually evaluated for impairment	53,905			71,801			6,579			37,440			169,725
Balance at end of period collectively evaluated for impairment	9,166,070			5,638,375			4,259,369			2,922,863			21,986,677
Balance at end of period acquired with deteriorated credit quality	168,330			26,841			93,208			75,034			363,413

	2017
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	49,231		$	60,939		$	11,249		$	23,300		$	144,719
Provision for (Reversal of) loan and lease losses	10,433			31,891			(2,206		)	10,993			51,111
Transfer of balance to OREO and other	853			(68		)	2			147			934
Charge-offs	(7,433		)	(40,015		)	(365		)	(14,653		)	(62,466		)
Recoveries	1,117			1,169			437			3,870			6,593
Allowance for loan and lease losses at end of period	$	54,201		$	53,916		$	9,117		$	23,657		$	140,891
Reserve for unfunded commitments at beginning of period	$	3,207		$	4,537		$	657		$	2,840		$	11,241
Balance created in acquisition accounting	253			783			327			7			1,370
Provision for (Reversal of) unfunded commitments	1,071			(11		)	(429		)	(34		)	597
Reserve for unfunded commitments at end of period	$	4,531		$	5,309		$	555		$	2,813		$	13,208
Allowance on loans individually evaluated for impairment	$	1,588		$	12,736		$	172		$	2,856		$	17,352
Allowance on loans collectively evaluated for impairment	30,360			38,944			3,141			17,210			89,655
Allowance on loans acquired with deteriorated credit quality	22,253			2,236			5,804			3,591			33,884
Loans and leases, net of unearned income:
Balance at end of period	$	8,938,230		$	5,135,067		$	3,056,352		$	2,948,532		$	20,078,181
Balance at end of period individually evaluated for impairment	91,785			102,416			6,749			37,177			238,127
Balance at end of period collectively evaluated for impairment	8,616,924			5,001,505			2,911,222			2,828,848			19,358,499
Balance at end of period acquired with deteriorated credit quality	229,521			31,146			138,381			82,507			481,555

	2016
(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Mortgage			Consumer			Total
Allowance for loan and lease losses at beginning of period	$	51,372		$	49,355		$	11,789		$	25,862		$	138,378
Provision for loan and lease losses	1,958			32,296			824			9,346			44,424
Decrease in FDIC loss share receivable	(34		)	(50		)	(1,090		)	(323		)	(1,497		)
Transfer of balance to OREO and other	(868		)	(519		)	(141		)	(1,253		)	(2,781		)
Charge-offs	(4,338		)	(21,645		)	(313		)	(13,543		)	(39,839		)
Recoveries	1,141			1,502			180			3,211			6,034
Allowance for loan and lease losses at end of period	$	49,231		$	60,939		$	11,249		$	23,300		$	144,719
Reserve for unfunded commitments at beginning of period	$	4,167		$	6,106		$	830		$	3,042		$	14,145
Reversal of provision for unfunded commitments	(960		)	(1,569		)	(173		)	(202		)	(2,904		)
Reserve for unfunded commitments at end of period	$	3,207		$	4,537		$	657		$	2,840		$	11,241
Allowance on loans individually evaluated for impairment	$	1,378		$	21,413		$	144		$	1,358		$	24,293
Allowance on loans collectively evaluated for impairment	25,248			37,206			4,223			17,537			84,214
Allowance on loans acquired with deteriorated credit quality	22,605			2,320			6,882			4,405			36,212
Loans and leases, net of unearned income:
Balance at end of period	$	6,846,549		$	4,060,032		$	1,267,400		$	2,890,990		$	15,064,971
Balance at end of period individually evaluated for impairment	61,006			220,995			4,312			16,467			302,780
Balance at end of period collectively evaluated for impairment	6,504,875			3,806,305			1,140,136			2,780,689			14,232,005
Balance at end of period acquired with deteriorated credit quality	280,668			32,732			122,952			93,834			530,186

Investment in Legacy and Acquired Loans by Credit Quality Indicator

The Company’s investment in loans by credit quality indicator is presented in the following tables. Asset risk classifications for commercial loans reflect the classification as of December 31, 2018 and 2017, respectively. Credit quality information in the tables below includes total loans acquired (including acquired impaired loans) at the net loan balance, after the application of premiums/discounts, at December 31, 2018 and 2017. Loan premiums/discounts represent the adjustment of acquired loans to fair value at the acquisition date, as adjusted for income accretion and changes in cash flow estimates in subsequent periods.

Loan delinquency is the primary credit quality indicator that the Company utilizes to monitor consumer asset quality.

	December 31, 2018										December 31, 2017
(Dollars in thousands)	Pass		Special Mention		Sub- standard		Doubtful		Total		Pass		Special Mention		Sub- standard		Doubtful		Loss		Total
Commercial real estate - construction	$	1,182,554	$	1,062	$	12,740	$	10	$	1,196,366	$	1,189,490	$	20,351	$	30,541	$	14	$	—	$	1,240,396
Commercial real estate - owner-occupied	2,328,999		25,526		41,297		—		2,395,822		2,234,151		82,114		56,590		2,466		—		2,375,321
Commercial real estate - non-owner-occupied	5,687,963		78,009		26,512		3,633		5,796,117		5,258,638		19,311		42,702		1,744		118		5,322,513
Commercial and industrial	5,586,482		52,632		73,853		24,050		5,737,017		4,882,554		88,149		128,961		35,403		—		5,135,067
Total	$	14,785,998	$	157,229	$	154,402	$	27,693	$	15,125,322	$	13,564,833	$	209,925	$	258,794	$	39,627	$	118	$	14,073,297

	December 31, 2018						December 31, 2017
(Dollars in thousands)	Current		30+ Days Past Due		Total		Current		30+ Days Past Due		Total
Residential mortgage	$	4,290,152	$	69,004	$	4,359,156	$	2,962,043	$	94,309	$	3,056,352
Consumer - home equity	2,258,659		46,035		2,304,694		2,250,205		42,070		2,292,275
Consumer - other	721,231		9,412		730,643		645,498		10,759		656,257
Total	$	7,270,042	$	124,451	$	7,394,493	$	5,857,746	$	147,138	$	6,004,884

Schedule of Investment in Legacy Impaired Loans

Information on the Company’s investment in impaired loans, which include all TDRs and all other non-accrual loans evaluated or measured individually for impairment for purposes of determining the ALLL, is presented in the following tables as of and for the periods indicated.

	December 31, 2018
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	10,261	$	9,262	$	—		$	9,189	$	496
Commercial real estate - owner-occupied	25,037		19,044		—			19,559		807
Commercial real estate - non-owner-occupied	15,265		14,288		—			14,873		590
Commercial and industrial	55,554		43,886		—			47,268		2,422
Residential mortgage	1,244		1,221		—			1,261		46
Consumer - home equity	4,183		4,176		—			2,867		39
With an allowance recorded:
Commercial real estate - construction	228		140		(11		)	148		1
Commercial real estate - owner-occupied	5,032		4,773		(520		)	4,976		196
Commercial real estate - non-owner-occupied	6,445		6,398		(105		)	6,229		294
Commercial and industrial	46,387		27,915		(12,646		)	40,653		795
Residential mortgage	5,870		5,358		(145		)	5,494		225
Consumer - home equity	29,284		28,818		(2,427		)	27,911		1,202
Consumer - other	4,956		4,446		(488		)	4,822		273
Total	$	209,746	$	169,725	$	(16,342	)	$	185,250	$	7,386
Total commercial loans and leases	$	164,209	$	125,706	$	(13,282	)	$	142,895	$	5,601
Total mortgage loans	7,114		6,579		(145		)	6,755		271
Total consumer loans	38,423		37,440		(2,915		)	35,600		1,514

	December 31, 2017
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	13,763	$	13,013	$	—		$	9,104	$	441
Commercial real estate - owner-occupied	50,867		44,482		—			53,282		1,389
Commercial real estate - non-owner-occupied	15,370		14,975		—			15,127		692
Commercial and industrial	103,013		70,254		—			92,312		2,279
Residential mortgage	2,004		2,001		—			2,044		85
Consumer - home equity	5,906		5,634		—			5,747		231
Consumer - other	75		75		—			11		1
With an allowance recorded:
Commercial real estate - construction	238		156		(19		)	197		6
Commercial real estate - owner-occupied	13,314		13,287		(949		)	13,498		414
Commercial real estate - non-owner-occupied	6,051		5,872		(620		)	6,196		154
Commercial and industrial	35,306		32,162		(12,736		)	42,874		1,220
Residential mortgage	5,179		4,748		(172		)	4,861		180
Consumer - home equity	27,189		26,575		(2,358		)	23,546		1,007
Consumer - other	5,354		4,893		(498		)	4,455		269
Total	$	283,629	$	238,127	$	(17,352	)	$	273,254	$	8,368
Total commercial loans and leases	$	237,922	$	194,201	$	(14,324	)	$	232,590	$	6,595
Total mortgage loans	7,183		6,749		(172		)	6,905		265
Total consumer loans	38,524		37,177		(2,856		)	33,759		1,508

	December 31, 2016
(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate - construction	$	38	$	38	$	—		$	28	$	—
Commercial real estate - owner-occupied	25,180		25,074		—			25,890		647
Commercial real estate - non-owner-occupied	15,654		14,794		—			19,587		879
Commercial and industrial	148,311		138,202		—			111,261		3,418
With an allowance recorded:
Commercial real estate - construction	1,946		1,946		(649		)	1,839		54
Commercial real estate - owner-occupied	17,580		17,429		(640		)	16,668		493
Commercial real estate - non-owner-occupied	1,743		1,725		(89		)	1,782		95
Commercial and industrial	84,197		82,793		(21,413		)	78,270		2,858
Residential mortgage	4,628		4,312		(144		)	4,377		161
Consumer - home equity	13,916		13,267		(993		)	10,237		435
Consumer - other	3,485		3,200		(365		)	2,425		151
Total	$	316,678	$	302,780	$	(24,293	)	$	272,364	$	9,191
Total commercial loans and leases	$	294,649	$	282,001	$	(22,791	)	$	255,325	$	8,444
Total mortgage loans	4,628		4,312		(144		)	4,377		161
Total consumer loans	17,401		16,467		(1,358		)	12,662		586

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Transfers and Servicing of Financial Assets (Including Mortgage Banking Activity) (Tables)

12 Months Ended

Dec. 31, 2018

Transfers and Servicing [Abstract]

Changes in Carrying Amount of Mortgage Loans Held-for-sale

Changes to the carrying amount of mortgage loans held for sale at December 31 are presented in the following table.

(Dollars in thousands)	2018			2017			2016
Balance at beginning of period	$	134,916		$	157,041		$	166,247
Originations and purchases	1,469,847			1,844,358			2,460,033
Sales, net of gains	(1,498,386		)	(1,859,565		)	(2,451,459		)
Mortgage loans transferred from (transferred to) held for investment	1,058			(6,918		)	(14,017		)
Other	299			—			(3,763		)
Balance at end of period	$	107,734		$	134,916		$	157,041

Components of Mortgage Income

The following table details the components of mortgage income for the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Fair value changes of derivatives and mortgage loans held for sale:
Mortgage loans held for sale and derivatives	$	6,490		$	(7,047	)	$	1,361
Derivative settlements, net	(4,039		)	1,229			(6,640		)
Gains on sales	42,887			68,255			87,925
Servicing and other income, net	1,339			1,133			1,207
Other losses	(253		)	—			—
	$	46,424		$	63,570		$	83,853

Schedule of Mortgage Servicing Rights at Carrying Value

Mortgage servicing rights had the following carrying values as of the periods indicated:

	December 31, 2018							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(Dollars in thousands)
Mortgage servicing rights	$	13,612	$	(4,806	)	$	8,806	$	9,588	$	(3,931	)	$	5,657

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of Premises and Equipment

Premises and equipment consisted of the following at December 31:

(Dollars in thousands)	2018			2017
Land	$	81,194		$	89,137
Buildings	241,284			261,994
Furniture, fixtures and equipment	137,469			129,866
Total premises and equipment	459,947			480,997
Accumulated depreciation	(159,440		)	(149,584		)
Total premises and equipment, net	$	300,507		$	331,413

Schedule of Minimum Future Annual Rent Commitments

Minimum future annual rent commitments under lease agreements for the periods indicated are as follows:

(Dollars in thousands)
2019	$	21,750
2020	19,991
2021	16,921
2022	14,195
2023	9,182
2024 and thereafter	34,652
	$	116,691

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Goodwill and Other Acquired Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Carrying Amount of Goodwill

Changes to the carrying amount of goodwill by reporting unit for the years ended December 31, 2018 and 2017 are provided in the following table.

(Dollars in thousands)	IBERIABANK		Mortgage		LTC		Total
Balance, December 31, 2016	$	698,513	$	23,178	$	5,165	$	726,856
Goodwill acquired and adjustments during the year	462,046		—		—		462,046
Balance, December 31, 2017	$	1,160,559	$	23,178	$	5,165	$	1,188,902
Goodwill acquired and adjustments during the year	43,251		—		3,380		46,631
Balance, December 31, 2018	$	1,203,810	$	23,178	$	8,545	$	1,235,533

Schedule of Definite-Lived Intangible Assets

	2018							2017
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangible assets	$	136,183	$	(63,213	)	$	72,970	$	127,957	$	(51,971	)	$	75,986
Customer relationship intangible asset	1,385		(1,323		)	62		1,143		(996		)	147
Non-compete agreement	206		(72		)	134		63		(39		)	24
Total	$	137,774	$	(64,608	)	$	73,166	$	129,163	$	(53,006	)	$	76,157

The related amortization expense of intangible assets is as follows:

(Dollars in thousands)	Amount
Aggregate amortization expense for the years ended December 31:
2016	$	8,415
2017	12,590
2018	21,678

Schedule of Amortization Expense of Intangible Assets

(Dollars in thousands)
Estimated amortization expense for the years ended December 31:
2019	$	18,363
2020	14,500
2021	10,208
2022	7,711
2023	6,410
2024 and thereafter	15,974

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Derivative Instruments and Other Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Derivative Instruments

Information pertaining to outstanding derivative instruments is as follows:

	Balance Sheet Location	Derivative Assets - Fair Value				Balance Sheet Location	Derivative Liabilities - Fair Value
(Dollars in thousands)		December 31, 2018		December 31, 2017			December 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	3,469	$	—	Other liabilities	$	—	$	—
Total derivatives designated as hedging instruments under ASC Topic 815		$	3,469	$	—		$	—	$	—
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts:
Customer swaps - upstream	Other assets	$	474	$	12,318	Other liabilities	$	191	$	3,873
Customer swaps - downstream	Other assets	16,946		8,128		Other liabilities	17,812		12,318
Foreign exchange contracts	Other assets	18		7		Other liabilities	18		7
Forward sales contracts	Other assets	630		136		Other liabilities	750		279
Written and purchased options	Other assets	5,490		10,654		Other liabilities	3,310		8,656
Other contracts	Other assets	21		22		Other liabilities	43		21
Total derivatives not designated as hedging instruments under ASC Topic 815		$	23,579	$	31,265		$	22,124	$	25,154
Total		$	27,048	$	31,265		$	22,124	$	25,154

	Derivative Assets - Notional Amount				Derivative Liabilities - Notional Amount
(Dollars in thousands)	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	$	408,500	$	—	$	—	$	108,500
Total derivatives designated as hedging instruments under ASC Topic 815	$	408,500	$	—	$	—	$	108,500
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts:
Customer swaps - upstream	$	919,653	$	644,282	$	701,257	$	574,182
Customer swaps - downstream	701,257		574,182		919,653		644,282
Foreign exchange contracts	1,202		268		1,202		268
Forward sales contracts	1,140		82,347		143,179		142,578
Written and purchased options	229,333		278,638		140,645		165,198
Other contracts	50,527		29,755		85,623		86,744
Total derivatives not designated as hedging instruments under ASC Topic 815	$	1,903,112	$	1,609,472	$	1,991,559	$	1,613,252
Total	$	2,311,612	$	1,609,472	$	1,991,559	$	1,721,752

Offsetting Assets

The following table reconciles the gross amounts presented in the consolidated balance sheets to the net amounts that would result in the event of offset.

	December 31, 2018
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet					Net
(Dollars in thousands)			Derivatives			Collateral  (1)
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	3,469	$	—		$	—	$	3,469
Interest rate contracts not designated as hedging instruments	17,420		(619		)	—		16,801
Written and purchased options	3,285		—			—		3,285
Total derivative assets subject to master netting arrangements	$	24,174	$	(619	)	$	—	$	23,555
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	18,003	$	(619	)	$	—	$	17,384
Written and purchased options	3,285		—			—		3,285
Total derivative liabilities subject to master netting arrangements	$	21,288	$	(619	)	$	—	$	20,669

^{(1)  Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.} 

	December 31, 2017
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet						Net
(Dollars in thousands)			Derivatives			Collateral (1)
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts not designated as hedging instruments	$	20,446	$	(12,469	)	$	—		$	7,977
Written and purchased options	8,610		—			—			8,610
Total derivative assets subject to master netting arrangements	$	29,056	$	(12,469	)	$	—		$	16,587
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	16,191	$	(12,469	)	$	(552	)	$	3,170
Total derivative liabilities subject to master netting arrangements	$	16,191	$	(12,469	)	$	(552	)	$	3,170

^{(1)  Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.}

Offsetting Liabilities

The following table reconciles the gross amounts presented in the consolidated balance sheets to the net amounts that would result in the event of offset.

	December 31, 2018
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet					Net
(Dollars in thousands)			Derivatives			Collateral  (1)
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	3,469	$	—		$	—	$	3,469
Interest rate contracts not designated as hedging instruments	17,420		(619		)	—		16,801
Written and purchased options	3,285		—			—		3,285
Total derivative assets subject to master netting arrangements	$	24,174	$	(619	)	$	—	$	23,555
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	18,003	$	(619	)	$	—	$	17,384
Written and purchased options	3,285		—			—		3,285
Total derivative liabilities subject to master netting arrangements	$	21,288	$	(619	)	$	—	$	20,669

^{(1)  Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.} 

	December 31, 2017
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet						Net
(Dollars in thousands)			Derivatives			Collateral (1)
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts not designated as hedging instruments	$	20,446	$	(12,469	)	$	—		$	7,977
Written and purchased options	8,610		—			—			8,610
Total derivative assets subject to master netting arrangements	$	29,056	$	(12,469	)	$	—		$	16,587
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	16,191	$	(12,469	)	$	(552	)	$	3,170
Total derivative liabilities subject to master netting arrangements	$	16,191	$	(12,469	)	$	(552	)	$	3,170

^{(1)  Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.}

Effect of Derivatives on the Consolidated Financial Statements

At December 31, 2018, 2017, and 2016, and for the years then ended, information pertaining to the effect of the hedging instruments on the consolidated financial statements is as follows:

		Amount of Gain (Loss) Recognized in OCI, net of taxes							Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income, net of taxes									Location of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)		Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)
		Total		Including Component		Excluding Component				Total			Including Component			Excluding Component					Total		Including Component		Excluding Component
(Dollars in thousands)		For the Year Ended December 31,
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships		2018								2018										2018
	Interest rate contracts	$	4,416	$	4,835	$	(419	)	Interest expense	$	(196	)	$	(150	)	$	(46	)	Interest expense		$	—	$	—	$	—
Total		$	4,416	$	4,835	$	(419	)		$	(196	)	$	(150	)	$	(46	)			$	—	$	—	$	—

														Location of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)		Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)
			Amount of Gain (Loss) Recognized in OCI, net of taxes					Location of Gain (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income, net of taxes
(Dollars in thousands)		For the Years Ended December 31,
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships		2017			2016				2017			2016			2017		2016
	Interest rate contracts	$	(611	)	$	(328	)	Interest expense	$	(390	)	$	50	Interest expense	$	—	$	—
Total		$	(611	)	$	(328	)		$	(390	)	$	50		$	—	$	—

Information pertaining to the effect of derivatives not designated as hedging instruments on the consolidated financial statements as of December 31, is as follows:

	Location of Gain (Loss) Recognized in  Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
(Dollars in thousands)		2018			2017			2016
Interest rate contracts (1)	Other income	$	6,962		$	4,750		$	8,830
Foreign exchange contracts	Other income	29			43			15
Forward sales contracts	Mortgage income	4,064			(4,115		)	(1,731		)
Written and purchased options	Mortgage income	180			(2,028		)	(327		)
Other contracts	Other income	(24		)	51			17
Total		$	11,211		$	(1,299	)	$	6,804

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Deposits (Tables)

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

Schedule of Deposits by Type

Deposits at December 31 are summarized as follows:

(Dollars in thousands)	2018		2017
Non-interest-bearing deposits	$	6,542,490	$	6,209,925
Negotiable order of withdrawal ("NOW")	4,514,113		4,348,939
Money market deposits accounts ("MMDA")	8,237,291		7,674,291
Savings deposits	828,914		846,074
Time deposits	3,640,623		2,387,488
	$	23,763,431	$	21,466,717

Schedule of Time Deposits

Total time deposits summarized by denomination at December 31 are as follows:

(Dollars in thousands)	2018		2017
Time deposits less than or equal to $250,000	$	2,522,660	$	1,768,047
Time deposits greater than $250,000	1,117,963		619,441
	$	3,640,623	$	2,387,488

Schedule of Maturities of Certificates of Deposit

A schedule of maturities of all time deposits as of December 31, 2018 is as follows:

(Dollars in thousands)
Years ending December 31,
2019	$	2,504,515
2020	876,740
2021	159,877
2022	76,486
2023	12,684
2024 and thereafter	10,321
	$	3,640,623

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Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Summary of Short-Term Borrowings

Short-term borrowings at December 31 are summarized as follows:

(Dollars in thousands)	2018		2017
Federal Home Loan Bank advances	$	1,167,000	$	475,000
Securities sold under agreements to repurchase	315,882		516,297
	$	1,482,882	$	991,297

The levels of FHLB advances and securities sold under agreements to repurchase can fluctuate significantly on a day-to-day basis, depending on funding needs and which sources are used to satisfy those needs. All such arrangements are considered typical of the banking and brokerage industries and are accounted for as borrowings.

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily and are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities.

Additional information on the Company’s short-term borrowings for the years indicated is as follows:

(Dollars in thousands)	2018			2017
Outstanding at December 31	$	1,482,882		$	991,297
Maximum month-end outstanding balance	1,482,882			2,197,105
Average daily outstanding balance	1,052,088			905,755
Average rate during the year	1.40		%	0.83		%
Average rate at year end	2.12		%	0.82		%

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt at December 31 is summarized as follows:

(Dollars in thousands)	2018		2017
IBERIABANK:
Federal Home Loan Bank advances, 0.864% to 7.040%	$	986,027	$	1,331,579
Notes payable - Investment fund contribution, 7 to 35 year term, 1.28% to 6.82% fixed, 7 to 30 year term, 1.28% to 6.82% fixed, respectively	60,014		44,146
	1,046,041		1,375,725
IBERIABANK Corporation (junior subordinated debt):
Statutory Trust I, 3 month LIBOR (1), plus 3.25%, issued November 2002	10,310		10,310
Statutory Trust II, 3 month LIBOR (1), plus 3.15%, issued June 2003	10,310		10,310
Statutory Trust III, 3 month LIBOR (1), plus 2.00%, issued September 2004	10,310		10,310
Statutory Trust IV, 3 month LIBOR (1), plus 1.60%, issued October 2006	15,464		15,464
American Horizons Statutory Trust I, 3 month LIBOR (1), plus 3.15%, assumed January 2005	6,186		6,186
Statutory Trust V, 3 month LIBOR (1), plus 1.435%, issued June 2007	10,310		10,310
Statutory Trust VI, 3 month LIBOR (1), plus 2.75%, issued November 2007	12,372		12,372
Statutory Trust VII, 3 month LIBOR (1), plus 2.54%, issued November 2007	13,403		13,403
Statutory Trust VIII, 3 month LIBOR (1), plus 3.50%, issued March 2008	7,217		7,217
OMNI Trust I, 3 month LIBOR (1), plus 3.30%, assumed May 2011	8,248		8,248
OMNI Trust II, 3 month LIBOR (1), plus 2.79%, assumed May 2011	7,732		7,732
GA Commerce Trust II, 3 month LIBOR (1), plus 1.64%, assumed May 2015	8,248		8,248
	120,110		120,110
	$	1,166,151	$	1,495,835

⁽¹⁾  The interest rate on the Company’s long-term debt indexed to LIBOR is based on the 3-month LIBOR rate. The 3-month LIBOR rate was2.81%and 1.69% at December 31, 2018 and 2017, respectively.

Maturities of Long-Term Debt

Advances and long-term debt at December 31, 2018 have maturities or call dates in future years as follows:

(Dollars in thousands)
2019	$	309,116
2020	233,465
2021	125,255
2022	10,581
2023	58,762
2024 and thereafter	428,972
	$	1,166,151

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Tax Expense

The provision for income tax expense consists of the following for the years ended December 31:

(Dollars in thousands)	2018			2017			2016
Current expense (benefit)	$	(115,195	)	$	84,827		$	103,335
Deferred expense (benefit)	153,518			71,257			(16,654		)
Tax credits	(5,179		)	(10,845		)	(7,112		)
Amortization on qualified affordable housing tax credits	—			5,227			4,185
Tax benefits attributable to items charged to equity and goodwill	(866		)	—			1,439
	$	32,278		$	150,466		$	85,193

Reconciliation of Effective Tax Rate

(Dollars in thousands)	2018			2017			2016
Federal tax based on statutory rate	$	84,531		$	102,508		$	95,189
Increase (decrease) resulting from:
Effect of tax-exempt income	(5,801		)	(9,435		)	(8,203		)
Interest and other nondeductible expenses	6,464			9,605			3,250
State taxes, net of federal benefit	12,459			6,970			4,770
Tax credits	(5,179		)	(10,845		)	(7,112		)
Amortization on qualified affordable housing tax credits	—			5,227			4,185
Other (1)	(60,196		)	46,436			(6,886		)
	$	32,278		$	150,466		$	85,193
Effective tax rate	8.0		%	51.4		%	31.3		%

Deferred Tax Assets and Liabilities

The net deferred tax asset (liability) at December 31 is as follows:

(Dollars in thousands)	2018			2017
Deferred tax asset:
NOL and credit carryforward	$	42,837		$	8,364
Allowance for credit losses	38,571			38,402
Deferred compensation	5,482			5,876
Basis difference in acquired assets and liabilities	9,228			43,391
Unrealized losses on loans and securities	—			12,198
OREO	32			2,639
Other	19,395			22,719
	115,545			133,589
Deferred tax liability:
Unrealized gains on loans and securities	(98,807		)	—
FHLB stock	—			(300		)
Premises and equipment	(10,626		)	(3,723		)
Acquisition intangibles	(9,757		)	(8,151		)
Deferred loan costs	(5,814		)	(3,114		)
Basis difference in acquired assets and liabilities	(17,628		)	(31,309		)
Lease receivable	(37,844		)	—
Other	(6,485		)	(4,885		)
	(186,961		)	(51,482		)
Net deferred tax (liability) asset	$	(71,416	)	$	82,107

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Shareholders' Equity, Capital Ratios and Other Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

Schedule of Preferred Stock

The following table presents a summary of the Company's non-cumulative perpetual preferred stock at December 31:

							2018		2017
	Issuance Date	Earliest Redemption Date	Annual Dividend Rate		Liquidation Amount		Carrying Amount		Carrying Amount
(Dollars in thousands)
Series B Preferred Stock	8/5/2015	8/1/2025	6.625	%	$	80,000	$	76,812	$	76,812
Series C Preferred Stock	5/9/2016	5/1/2026	6.600	%	57,500		55,285		55,285
					$	137,500	$	132,097	$	132,097

Actual Capital Amounts and Ratios

The Company’s and IBERIABANK’s actual capital amounts and ratios as of December 31 are presented in the following table.

(Dollars in thousands)	2018
	Minimum				Well-Capitalized			Actual
	Amount		Ratio		Amount		Ratio	Amount		Ratio
Tier 1 Leverage
Consolidated	$	1,168,343	4.00	%	N/A		N/A	$	2,812,863	9.63	%
IBERIABANK	1,165,537		4.00		$	1,456,921	5.00	2,733,099		9.38
Common Equity Tier 1 (CET1) (1)
Consolidated	$	1,125,405	4.50	%	N/A		N/A	$	2,680,766	10.72	%
IBERIABANK	1,122,712		4.50		$	1,621,695	6.50	2,733,099		10.95
Tier 1 Risk-Based Capital (1)
Consolidated	$	1,500,540	6.00	%	N/A		N/A	$	2,812,863	11.25	%
IBERIABANK	1,496,949		6.00		$	1,995,932	8.00	2,733,099		10.95
Total Risk-Based Capital (1)
Consolidated	$	2,000,720	8.00	%	N/A		N/A	$	3,084,764	12.33	%
IBERIABANK	1,995,932		8.00		$	2,494,915	10.00	2,888,500		11.58

	2017
	Minimum				Well-Capitalized			Actual
	Amount		Ratio		Amount		Ratio	Amount		Ratio
Tier 1 Leverage
Consolidated	$	1,073,381	4.00	%	N/A		N/A	$	2,509,496	9.35	%
IBERIABANK	1,070,789		4.00		$	1,338,487	5.00	2,437,275		9.10
Common Equity Tier 1 (CET1) (1)
Consolidated	$	1,011,732	4.50	%	N/A		N/A	$	2,377,398	10.57	%
IBERIABANK	1,009,553		4.50		$	1,458,243	6.50	2,437,275		10.86
Tier 1 Risk-Based Capital (1)
Consolidated	$	1,348,977	6.00	%	N/A		N/A	$	2,509,496	11.16	%
IBERIABANK	1,346,070		6.00		$	1,794,760	8.00	2,437,275		10.86
Total Risk-Based Capital (1)
Consolidated	$	1,798,635	8.00	%	N/A		N/A	$	2,780,095	12.37	%
IBERIABANK	1,794,760		8.00		$	2,243,450	10.00	2,591,374		11.55

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share for the periods indicated.

	For the Years Ended December 31,
(In thousands, except per share data)	2018			2017			2016
Earnings per common share - basic
Net income	$	370,249		$	142,413		$	186,777
Preferred stock dividends	(9,095		)	(9,095		)	(7,977		)
Dividends and undistributed earnings allocated to unvested restricted shares	(3,583		)	(1,210		)	(1,872		)
Earnings allocated to common shareholders - basic	$	357,571		$	132,108		$	176,928
Weighted average common shares outstanding	55,008			50,640			40,948
Earnings per common share - basic	6.50			2.61			4.32
Earnings per common share - diluted
Earnings allocated to common shareholders - basic	$	357,571		$	132,108		$	176,928
Dividends and undistributed earnings allocated to unvested restricted shares	(49		)	(1		)	(37		)
Earnings allocated to common shareholders - diluted	$	357,522		$	132,107		$	176,891
Weighted average common shares outstanding	55,008			50,640			40,948
Dilutive potential common shares	352			352			158
Weighted average common shares outstanding - diluted	55,360			50,992			41,106
Earnings per common share - diluted	$	6.46		$	2.59		$	4.30

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation Arrangements by Share-based Payment Award

The following table represents the activity related to stock options during the periods indicated:

	Number of Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value (Dollars in thousands)		Weighted Average Remaining Contract Life (in years)
Outstanding options, December 31, 2015	813,777		$	56.99
Granted	160,624		48.65
Exercised	(196,769	)	55.39		$	3,597
Forfeited or expired	(56,094	)	59.49
Outstanding options, December 31, 2016	721,538		$	55.38
Granted	80,557		84.78
Exercised	(85,221	)	55.45		2,098
Forfeited or expired	(30,508	)	68.46
Outstanding options, December 31, 2017	686,366		$	58.24
Granted	97,620		82.02
Exercised	(42,047	)	53.07		1,242
Forfeited or expired	(27,519	)	68.30
Outstanding options, December 31, 2018	714,420		$	61.41	$	5,148	5.2
Exercisable options, December 31, 2016	415,376		$	56.66
Exercisable options, December 31, 2017	455,010		55.77
Exercisable options, December 31, 2018	501,815		56.75		$	4,222	3.9

The following table represents phantom stock award activity during the periods indicated:

(Dollars in thousands)	Number of share equivalents (1)		Value of share equivalents (2)
Balance, December 31, 2015	462,430		$	25,466
Granted	215,745		18,069
Forfeited share equivalents	(42,051	)	3,522
Vested share equivalents	(163,294	)	8,509
Balance, December 31, 2016	472,830		$	39,600
Granted	118,408		9,177
Forfeited share equivalents	(34,968	)	2,710
Vested share equivalents	(162,426	)	13,515
Balance, December 31, 2017	393,844		$	30,523
Granted	157,044		10,095
Forfeited share equivalents	(63,276	)	4,067
Vested share equivalents	(134,205	)	11,156
Balance, December 31, 2018	353,407		$	22,717

⁽¹⁾  Number of share equivalents includes all reinvested dividend equivalents for the years indicated.

⁽²⁾  Except for share equivalents at the beginning of each period, which are based on the value at that time, and vested share payments, which are based on the cash paid at the time of vesting, the value of share equivalents is calculated based on the market price of the Company’s stock at the end of the respective periods. The market price of the Company’s stock was $64.28, $77.50 and $83.75 on December 31, 2018, 2017, and 2016, respectively.

The following table represents unvested restricted stock award and restricted share unit activity for the years ended December 31:

	2018		2017		2016
Number of shares at beginning of period	738,187		543,261		507,130
Granted	231,064		421,198		254,276
Forfeited	(72,217	)	(31,699	)	(28,855	)
Vested	(196,406	)	(194,573	)	(189,290	)
Number of shares at end of period	700,628		738,187		543,261

Schedule of Valuation Assumptions

The following weighted-average assumptions were used for option awards issued during the years ended December 31:

	2018			2017			2016
Expected dividends	1.8		%	1.7		%	2.8		%
Expected volatility	24.3		%	25.0		%	29.0		%
Risk-free interest rate	2.7		%	2.1		%	1.4		%
Expected term (in years)	5.8			5.8			6.5
Weighted-average grant-date fair value	$	18.48		$	18.86		$	10.46

Schedule of Allocation for Share-based Compensation Expense

The following table represents compensation expense recorded for phantom stock based on the number of share equivalents vested at December 31 of the years indicated and the current market price of the Company’s stock at that time:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to phantom stock	$	8,141	$	10,756	$	12,933

The following table represents the compensation expense that was included in non-interest expense and related income tax benefits in the accompanying consolidated statements of comprehensive income related to restricted stock awards and restricted share units for the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to restricted stock awards and restricted share units	$	18,998	$	14,966	$	12,513
Income tax benefit related to restricted stock awards and restricted share units	3,990		2,809		4,380

The following table represents the compensation expense that is included in non-interest expense and related income tax benefits in the accompanying consolidated statements of comprehensive income related to stock options for the years ended December 31:

(Dollars in thousands)	2018		2017		2016
Compensation expense related to stock options	$	1,280	$	1,470	$	2,010
Income tax benefit related to stock options	93		124		331

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Summary of Financial Instruments Outstanding

At December 31, 2018 and 2017, respectively, the Company had the following financial instruments outstanding and related reserves, whose contract amounts represent credit risk:

(Dollars in thousands)	December 31, 2018		December 31, 2017
Commitments to extend credit	$	642,162	$	342,305
Unfunded commitments under lines of credit	6,883,963		6,060,034
Commercial and standby letters of credit	240,436		210,002
Reserve for unfunded lending commitments	14,830		13,208

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Financial Asset and Liabilities Measured at Fair Value on Recurring Basis

See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined.

	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale	$	—	$	4,783,579	$	—	$	4,783,579
Mortgage loans held for sale	—		107,734		—		107,734
Mortgage loans held for investment, at fair value option	—		—		3,143		3,143
Derivative instruments	—		27,048		—		27,048
Total	$	—	$	4,918,361	$	3,143	$	4,921,504
Liabilities
Derivative instruments	$	—	$	22,124	$	—	$	22,124
Total	$	—	$	22,124	$	—	$	22,124
	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale	$	—	$	4,590,062	$	—	$	4,590,062
Mortgage loans held for sale	—		134,916		—		134,916
Mortgage loans held for investment, at fair value option	—		—		14,953		14,953
Derivative instruments	—		31,265		—		31,265
Total	$	—	$	4,756,243	$	14,953	$	4,771,196
Liabilities
Derivative instruments	$	—	$	25,154	$	—	$	25,154
Total	$	—	$	25,154	$	—	$	25,154

Financial Asset and Liabilities Measured at Fair Value on Nonrecurring Basis

The following table presents information about the Company's assets that are measured at fair value and still held as of December 31, 2018 and 2017 for which a non-recurring fair value adjustment was recorded during the years then ended. See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined.

	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	65,914	$	65,914
OREO, net	—		—		6,433		6,433
Total	$	—	$	—	$	72,347	$	72,347
	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	71,210	$	71,210
OREO, net	—		—		7,748		7,748
Total	$	—	$	—	$	78,958	$	78,958

Summary of Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Mortgage Loans Held for Sale

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for mortgage loans held for sale and mortgage loans held for investment measured at fair value:

	December 31, 2018							December 31, 2017
(Dollars in thousands)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Unpaid Principal			Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Unpaid Principal
Mortgage loans held for sale, at fair value	$	107,734	$	104,345	$	3,389		$	134,916	$	131,276	$	3,640
Mortgage loans held for investment, at fair value	3,143		3,595		(452		)	14,953		16,306		(1,353		)

Fair Value Option, Disclosures

The following table details net gains (losses) resulting from the change in fair value of loans that were recorded in mortgage income in the consolidated statements of comprehensive income for the years ended December 31, 2018, 2017 and 2016. The changes in fair value are mostly offset by economic hedging activities, with an insignificant portion of these changes attributable to changes in instrument-specific credit risk.

	Net Gains (Losses) Resulting From Changes in Fair Value
	For the Years Ended December 31,
(Dollars in thousands)	2018			2017			2016
Fair value option
Mortgage loans held for sale, at fair value	$	(251	)	$	944		$	(2,512	)
Mortgage loans held for investment, at fair value	(1,542		)	(204		)	(1,149		)

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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Estimated Fair Values and Carrying Amounts of Financial Instruments

The carrying amount and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are included in the tables below. See Note 1, Summary of Significant Accounting Policies, for a description of how fair value measurements are determined, except for loans, amended upon implementation of ASU 2016-01, Financial Statements - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. See Note 2, Recent Accounting Pronouncements, in this Report for a description of how the fair value measurement is determined for loans beginning January 1, 2018.

		December 31, 2018
(Dollars in thousands)		Carrying  Amount		Fair Value		Level 1		Level 2		Level 3
Measurement Category
Fair Value
	Financial Assets
	Securities available for sale	$	4,783,579	$	4,783,579	$	—	$	4,783,579	$	—
	Mortgage loans held for sale	107,734		107,734		—		107,734		—
	Mortgage loans held for investment, at fair value option	3,143		3,143		—		—		3,143
	Derivative instruments	27,048		27,048		—		27,048		—
	Financial Liabilities
	Derivative instruments	22,124		22,124		—		22,124		—
Amortized Cost
	Financial Assets
	Cash and cash equivalents	$	690,453	$	690,453	$	690,453	$	—	$	—
	Securities held to maturity	207,446		204,277		—		204,277		—
	Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	22,376,101		22,088,236		—		—		22,088,236
	Financial Liabilities
	Deposits	23,763,431		23,752,139		—		23,752,139		—
	Short-term borrowings	1,482,882		1,482,882		315,882		1,167,000		—
	Long-term debt	1,166,151		1,154,062		—		—		1,154,062

		December 31, 2017
(Dollars in thousands)		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Measurement Category
Fair Value
	Financial Assets
	Securities available for sale	$	4,590,062	$	4,590,062	$	—	$	4,590,062	$	—
	Mortgage loans held for sale	134,916		134,916		—		134,916		—
	Mortgage loans held for investment, at fair value option	14,953		14,953		—		—		14,953
	Derivative instruments	31,265		31,265		—		31,265		—
	Financial Liabilities
	Derivative instruments	25,154		25,154		—		25,154		—
Amortized Cost
	Financial Assets
	Cash and cash equivalents	$	625,724	$	625,724	$	625,724	$	—	$	—
	Securities held to maturity	227,318		227,964		—		227,964		—
	Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	19,922,337		19,811,904		—		—		19,811,904
	Financial Liabilities
	Deposits	21,466,717		21,460,782		—		21,460,782		—
	Short-term borrowings	991,297		991,297		516,297		475,000		—
	Long-term debt	1,495,835		1,476,899		—		—		1,476,899

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Business Segments (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

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.

	Year Ended December 31, 2018
(Dollars 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
(Dollars 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

	Year Ended December 31, 2016
(Dollars in thousands)	IBERIABANK			Mortgage		LTC		Consolidated
Interest and dividend income	$	707,676		$	9,261	$	2	$	716,939
Interest expense	64,068			3,633		—		67,701
Net interest income	643,608			5,628		2		649,238
Provision for credit losses	41,433			88		—		41,521
Mortgage income	405			83,448		—		83,853
Title revenue	—			—		22,213		22,213
Other non-interest income	121,647			4		—		121,651
Allocated expenses (income)	(13,972		)	10,686		3,286		—
Non-interest expense	480,898			65,133		17,433		563,464
Income before income tax expense	257,301			13,173		1,496		271,970
Income tax expense	79,565			5,023		605		85,193
Net income	$	177,736		$	8,150	$	891	$	186,777
Total loans, leases, and loans held for sale, net of unearned income	$	15,004,360		$	217,652	$	—	$	15,222,012
Total assets	21,319,267			315,057		24,866		21,659,190
Total deposits	17,402,742			5,541		—		17,408,283
Average assets	19,959,261			335,913		26,060		20,321,234

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Condensed Parent Company Only Financial Statements (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheets

Condensed Balance Sheets

(Dollars in thousands)	December 31
	2018		2017
Assets
Cash in bank	$	179,545	$	168,873
Investments in subsidiaries	4,008,802		3,661,808
Other assets	53,832		49,207
	$	4,242,179	$	3,879,888
Liabilities and Shareholders’ Equity
Liabilities	$	185,902	$	183,097
Shareholders’ equity	4,056,277		3,696,791
	$	4,242,179	$	3,879,888

Condensed Statements of Income

Condensed Statements of Income

	Year Ended December 31
(Dollars in thousands)	2018		2017		2016
Operating income
Reimbursement of management expenses	$	83,262	$	76,177	$	65,104
Other income	245,213		146,796		829
Total operating income	328,475		222,973		65,933
Operating expenses
Interest expense	6,008		5,168		3,948
Salaries and employee benefits expense	55,436		55,013		45,623
Other expenses	28,963		32,965		19,566
Total operating expenses	90,407		93,146		69,137
Income (loss) before income tax benefit and increase in equity in undistributed earnings of subsidiaries	238,068		129,827		(3,204		)
Income tax expense	799		3,123		530
Income (loss) before equity in undistributed earnings of subsidiaries	237,269		126,704		(3,734		)
Equity in undistributed earnings of subsidiaries	132,980		15,709		190,511
Net Income	370,249		142,413		186,777
Less: Preferred stock dividends	9,095		9,095		7,977
Net Income Available to Common Shareholders	$	361,154	$	133,318	$	178,800

Condensed Statements of Cash Flows

Condensed Statements of Cash Flows

(Dollars in thousands)	Year Ended December 31
	2018			2017			2016
Cash Flow from Operating Activities
Net income	$	370,249		$	142,413		$	186,777
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	145			62			98
Net income of subsidiaries	(377,974		)	(160,206		)	(190,511		)
Share-based compensation cost	20,278			16,436			14,523
Other operating activities, net	491			(4,256		)	12,417
Net Cash Provided by (Used in) Operating Activities	13,189			(5,551		)	23,304
Cash Flow from Investing Activities
Cash paid in excess of cash received for acquisitions	(7		)	(809,159		)	—
Purchases of premises and equipment	(52		)	(105		)	—
Return of capital from (Capital contributed to) subsidiary	245,000			144,500			(6,000		)
Other investing activities, net	(1,500		)	—			(749		)
Net Cash (Used in) Investing Activities	243,441			(664,764		)	(6,749		)
Cash Flow from Financing Activities
Cash dividends paid on common stock	(84,782		)	(72,772		)	(56,793		)
Cash dividends paid on preferred stock	(9,095		)	(9,095		)	(7,028		)
Net share-based compensation stock transactions	(3,226		)	(832		)	6,899
Payments to repurchase common stock	(148,855		)	—			(11,666		)
Net proceeds from issuance of common stock	—			485,151			279,242
Net proceeds from issuance of preferred stock	—			—			55,285
Other financing activities, net	—			(56		)	—
Net Cash Provided by (Used In) Financing Activities	(245,958		)	402,396			265,939
Net Increase (Decrease) in Cash and Cash Equivalents	10,672			(267,919		)	282,494
Cash and Cash Equivalents at Beginning of Period	168,873			436,792			154,298
Cash and Cash Equivalents at End of Period	$	179,545		$	168,873		$	436,792

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Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Maximum loss exposure	$ 230	$ 160
Fair value adjustment period	1 year
Maturity period for cash and cash equivalents	3 months
Threshold period of past due status of financing receivable	30 days
Threshold Period, Financing Receivable Evaluated for Non-accrual Status	90 days
Period due to be considered for accrual of interest on loans Is discontinued	90 days
Accounts, Notes, Loans and Financing Receivable
Past due loans threshold period for write-off	120 days
Rate lock period	60 days
Commercial Loans
Accounts, Notes, Loans and Financing Receivable
Past due loans threshold period for write-off	90 days
Residential and Consumer Portfolio
Accounts, Notes, Loans and Financing Receivable
Past due loans threshold period evaluation for charge-off	120 days
Buildings | Minimum
Accounts, Notes, Loans and Financing Receivable
Useful life of property and equipment	10 years
Buildings | Maximum
Accounts, Notes, Loans and Financing Receivable
Useful life of property and equipment	40 years

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Summary of Significant Accounting Policies - Useful Lives (Details)	12 Months Ended
	Dec. 31, 2018
Furniture, fixtures and equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful life of property and equipment	3 years
Furniture, fixtures and equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful life of property and equipment	20 years
Customer relationship intangible asset | Maximum
Finite-Lived Intangible Assets, Net [Abstract]
Useful life of finite-lived intangible asset	10 years

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Recent Accounting Pronouncements Details (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ 8.9

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Acquisition Activity - Additional Information (Details) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 23, 2018 USD ($) $ / shares shares	Jul. 31, 2017 USD ($) bank $ / shares shares	Dec. 31, 2018 USD ($)	Mar. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Goodwill			$ 1,235,533			$ 1,235,533	$ 1,188,902	$ 726,856
Increase (decrease) in goodwill due to adjustments						46,631
Amortization of acquisition intangibles						21,678	12,590	8,415
Gibraltar Private Bank & Trust Company
Business Acquisition [Line Items]
Consideration paid	$ 214,666
Loans acquired	1,447,475
Interest-bearing deposits acquired	1,064,803
Cash consideration	7
Goodwill	$ 64,252		64,300			64,300
Increase (decrease) in goodwill due to adjustments			14,600
Gibraltar Private Bank & Trust Company | Common Stock
Business Acquisition [Line Items]
Number of shares issued per share acquired | $ / shares	$ 1.9749
Business Acquisition, Share Price | $ / shares	$ 77.00
Common stock issued (shares) | shares	2,787,773
Solomon Parks Title & Escrow
Business Acquisition [Line Items]
Other Payments to Acquire Businesses				$ 750
Cash consideration				3,300
Goodwill			3,400			3,400
Increase (decrease) in goodwill due to adjustments				$ 3,400
Sabadell United
Business Acquisition [Line Items]
Consideration paid		$ 1,020,202
Loans acquired		4,030,777	4,000,000			4,000,000
Interest-bearing deposits acquired		$ 4,382,780
Number of offices acquired | bank		25
Cash consideration		$ 809,159
Percentage of voting interests acquired		100.00%
Goodwill		$ 441,045			$ 441,000
Increase (decrease) in goodwill due to adjustments					$ 21,000	$ 21,000
Sabadell United | Fair Value Adjustments
Business Acquisition [Line Items]
Amortization of premiums and accretion of discounts on acquired loans, securities, and deposits							20,300	38,800
Elimination of amortization of premiums and accretion of discounts on previously acquired loans, securities, FDIC indemnification asset, and deposits							1,300	4,100
Allowance for loan and lease losses acquired							6,400	5,900
Amortization of acquisition intangibles							$ 5,900	$ 10,100
Sabadell United | Common Stock
Business Acquisition [Line Items]
Business Acquisition, Share Price | $ / shares		$ 80.85
Common stock issued (shares) | shares		2,610,304
Loans | Gibraltar Private Bank & Trust Company
Business Acquisition [Line Items]
Increase (decrease) in goodwill due to adjustments			$ 17,800

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Acquisition Activity - Consideration (Details) - USD ($) $ in Thousands	Mar. 23, 2018	Jul. 31, 2017	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill			$ 1,235,533		$ 1,188,902	$ 726,856
Gibraltar Private Bank & Trust Company
Business Acquisition [Line Items]
Total equity consideration	$ 214,659
Cash	7
Total consideration paid	214,666
Fair value of net assets assumed including identifiable intangible assets	150,414
Goodwill	$ 64,252		$ 64,300
Gibraltar Private Bank & Trust Company | Common Stock
Business Acquisition [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	2,787,773
Common stock issued	$ 214,659
Sabadell United
Business Acquisition [Line Items]
Total equity consideration		$ 211,043
Cash		809,159
Total consideration paid		1,020,202
Fair value of net assets assumed including identifiable intangible assets		579,157
Goodwill		$ 441,045		$ 441,000
Sabadell United | Common Stock
Business Acquisition [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares		2,610,304
Common stock issued		$ 211,043

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Acquisition Activity - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Mar. 23, 2018	Jul. 31, 2017
Gibraltar Private Bank & Trust Company
Assets
Cash and cash equivalents		$ 102,575
Investment securities		19,169
Equity securities		27,519
Loans		1,447,475
Core deposit intangible assets		18,529
Other assets		12,005
Total assets acquired		1,627,272
Liabilities
Deposit liabilities		1,064,803
Long-term borrowings		405,107
Deferred tax liability, net		1,761
Other liabilities		5,187
Total liabilities assumed		$ 1,476,858
Sabadell United
Assets
Cash and cash equivalents			$ 318,819
Investment securities			964,123
Loans	$ 4,000,000		4,030,777
Core deposit intangible assets			66,600
Deferred tax asset, net			44,480
Other assets			92,820
Total assets acquired			5,517,619
Liabilities
Deposit liabilities			4,382,780
Short-term borrowings			520,539
Other liabilities			35,143
Total liabilities assumed			$ 4,938,462

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Acquisition Activity - Pro Forma Information (Details) - Sabadell United - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Net interest income	$ 924,348	$ 842,945
Non-interest income	219,021	255,022
Net income	$ 174,246	$ 246,799

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Investment Securities - Schedule of Amortized Cost and Fair Values of Investment Securities, with Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities
Amortized Cost	$ 4,843,313	$ 4,647,931
Gross Unrealized Gains	13,648	5,972
Gross Unrealized Losses	(73,382)	(63,841)
Estimated Fair Value	4,783,579	4,590,062
Schedule of Held-to-maturity Securities
Amortized Cost	207,446	227,318
Gross Unrealized Gains	339	1,571
Gross Unrealized Losses	(3,508)	(925)
Estimated Fair Value	204,277	227,964
Fair value of securities held as collateral	2,400,000	2,100,000
U.S. Government-sponsored enterprise obligations
Schedule of Available-for-sale Securities
Amortized Cost	995	41,003
Gross Unrealized Gains	3	18
Gross Unrealized Losses	0	(406)
Estimated Fair Value	998	40,615
Obligations of state and political subdivisions
Schedule of Available-for-sale Securities
Amortized Cost	177,566	271,451
Gross Unrealized Gains	2,045	4,246
Gross Unrealized Losses	(723)	(1,493)
Estimated Fair Value	178,888	274,204
Schedule of Held-to-maturity Securities
Amortized Cost	188,684	206,736
Gross Unrealized Gains	309	1,530
Gross Unrealized Losses	(2,497)	(275)
Estimated Fair Value	186,496	207,991
Mortgage-backed securities: Residential agency
Schedule of Available-for-sale Securities
Amortized Cost	3,837,584	3,675,367
Gross Unrealized Gains	8,886	1,233
Gross Unrealized Losses	(57,073)	(52,090)
Estimated Fair Value	3,789,397	3,624,510
Schedule of Held-to-maturity Securities
Amortized Cost	18,762	20,582
Gross Unrealized Gains	30	41
Gross Unrealized Losses	(1,011)	(650)
Estimated Fair Value	17,781	19,973
Mortgage-backed securities: Commercial agency
Schedule of Available-for-sale Securities
Amortized Cost	730,148	546,105
Gross Unrealized Gains	2,363	228
Gross Unrealized Losses	(14,799)	(8,938)
Estimated Fair Value	717,712	537,395
Other securities
Schedule of Available-for-sale Securities
Amortized Cost	97,020	114,005
Gross Unrealized Gains	351	247
Gross Unrealized Losses	(787)	(914)
Estimated Fair Value	$ 96,584	$ 113,338

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Investment Securities - Schedule of Securities with Gross Unrealized Losses Aggregated by Investment Category (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Gross Unrealized Losses
Less Than Twelve Months	$ (962)	$ (27,757)
Twelve Months or More	(72,420)	(36,084)
Total	(73,382)	(63,841)
Estimated Fair Value
Less Than Twelve Months	237,384	2,813,985
Twelve Months or More	2,740,272	1,304,515
Total	2,977,656	4,118,500
Gross Unrealized Losses
Less than twelve months	(3)	(265)
Over twelve months	(3,505)	(660)
Total	(3,508)	(925)
Estimated Fair Value
Less than twelve months	2,059	66,150
Over twelve months	169,177	22,300
Total	171,236	88,450
U.S. Government-sponsored enterprise obligations
Gross Unrealized Losses
Less Than Twelve Months		(254)
Twelve Months or More		(152)
Total		(406)
Estimated Fair Value
Less Than Twelve Months		29,744
Twelve Months or More		9,848
Total		39,592
Obligations of state and political subdivisions
Gross Unrealized Losses
Less Than Twelve Months	(9)	(326)
Twelve Months or More	(714)	(1,167)
Total	(723)	(1,493)
Estimated Fair Value
Less Than Twelve Months	4,112	31,601
Twelve Months or More	30,268	68,609
Total	34,380	100,210
Gross Unrealized Losses
Less than twelve months	(3)	(263)
Over twelve months	(2,494)	(12)
Total	(2,497)	(275)
Estimated Fair Value
Less than twelve months	2,059	65,817
Over twelve months	151,699	3,031
Total	153,758	68,848
Mortgage-backed securities: Residential agency
Gross Unrealized Losses
Less Than Twelve Months	(816)	(22,760)
Twelve Months or More	(56,257)	(29,330)
Total	(57,073)	(52,090)
Estimated Fair Value
Less Than Twelve Months	197,057	2,366,569
Twelve Months or More	2,193,862	1,061,588
Total	2,390,919	3,428,157
Gross Unrealized Losses
Less than twelve months	0	(2)
Over twelve months	(1,011)	(648)
Total	(1,011)	(650)
Estimated Fair Value
Less than twelve months	0	333
Over twelve months	17,478	19,269
Total	17,478	19,602
Mortgage-backed securities: Commercial agency
Gross Unrealized Losses
Less Than Twelve Months	(43)	(3,503)
Twelve Months or More	(14,756)	(5,435)
Total	(14,799)	(8,938)
Estimated Fair Value
Less Than Twelve Months	18,190	310,769
Twelve Months or More	483,565	164,470
Total	501,755	475,239
Other securities
Gross Unrealized Losses
Less Than Twelve Months	(94)	(914)
Twelve Months or More	(693)	0
Total	(787)	(914)
Estimated Fair Value
Less Than Twelve Months	18,025	75,302
Twelve Months or More	32,577	0
Total	$ 50,602	$ 75,302

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Investment Securities - Additional Information on Securities in a Continuous Loss Position (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Security	Dec. 31, 2017 USD ($) Security
Schedule of Available-for-sale Securities
Number of debt securities with unrealized losses | Security	488	544
Debt securities with unrealized losses (percentage of amortized cost)	2.38%	1.52%
Number of securities | Security	441	210
Amortized cost basis	$ 2,985,374	$ 1,363,559
Unrealized loss	$ 75,925	$ 36,744
Mortgage-backed securities: Residential agency
Schedule of Available-for-sale Securities
Number of securities | Security	302	153
Amortized cost basis	$ 2,268,608	$ 1,110,834
Unrealized loss	$ 57,268	$ 29,977
Mortgage-backed securities: Commercial agency
Schedule of Available-for-sale Securities
Number of securities | Security	72	28
Amortized cost basis	$ 498,321	$ 169,905
Unrealized loss	$ 14,756	$ 5,435
Obligations of state and political subdivisions
Schedule of Available-for-sale Securities
Number of securities | Security	60	28
Amortized cost basis	$ 185,175	$ 72,820
Unrealized loss	$ 3,208	$ 1,180
U.S. Government-sponsored enterprise obligations
Schedule of Available-for-sale Securities
Number of securities | Security	0	1
Amortized cost basis	$ 0	$ 10,000
Unrealized loss	$ 0	$ 152
Other securities
Schedule of Available-for-sale Securities
Number of securities | Security	7	0
Amortized cost basis	$ 33,270	$ 0
Unrealized loss	$ 693	$ 0

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Investment Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Maturity (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Weighted Average Yield
Within one year or less	3.84%
One through five years	2.68%
After five through ten years	2.67%
Over ten years	2.94%
Weighted average yield	2.89%
Amortized Cost
Within one year or less	$ 2,958
One through five years	63,397
After five through ten years	829,027
Over ten years	3,947,931
Amortized Cost	4,843,313	$ 4,647,931
Estimated Fair Value
Within one year or less	2,967
One through five years	63,183
After five through ten years	819,056
Over ten years	3,898,373
Estimated fair value	$ 4,783,579	4,590,062
Weighted Average Yield
Within one year or less	2.77%
One through five years	2.47%
After five through ten years	2.56%
Over ten years	2.62%
Weighted average yield	2.60%
Amortized Cost
Within one year or less	$ 1,309
One through five years	6,303
After five through ten years	42,827
Over ten years	157,007
Amortized Cost	207,446	227,318
Estimated Fair Value
Within one year or less	1,313
One through five years	6,291
After five through ten years	42,571
Over ten years	154,102
Estimated fair value	$ 204,277	$ 227,964

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Investment Securities - Schedule of Realized Gains and Losses from Sale of Securities Classified as Available for Sale (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Realized gains	$ 40	$ 1,651	$ 2,949
Realized losses	(49,940)	(1,799)	(948)
Net realized gains (losses)	$ (49,900)	$ (148)	$ 2,001

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Investment Securities - Schedule of Securities in Other Assets on Company's Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Federal Home Loan Bank (FHLB) stock	$ 95,213	$ 95,171
Federal Reserve Bank Stock	85,630	79,191
CRA and Community Development Investment Funds	1,884	0
Other Investments	9,709	3,008
Marketable Securities	$ 192,436	$ 177,370

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Loans and Leases - Schedule of Non-Covered Loans (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	$ 22,519,815	$ 20,078,181
Commercial Loans
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	15,125,322	14,073,297
Commercial Loans | Commercial real estate - Construction
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	1,196,366	1,240,396
Commercial Loans | Commercial real estate - owner-occupied
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	2,395,822	2,375,321
Commercial Loans | Commercial real estate - non-owner-occupied
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	5,796,117	5,322,513
Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	5,737,017	5,135,067
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	4,359,156	3,056,352
Consumer and Other Loans
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	3,035,337	2,948,532
Consumer and Other Loans | Home Equity
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	2,304,694	2,292,275
Consumer and Other Loans | Other
Accounts, Notes, Loans and Financing Receivable
Loans and leases, net of unearned income	$ 730,643	$ 656,257

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Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Mar. 23, 2018	Jul. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Net deferred loan origination fees	$ 30,200	$ 29,300
Net discount	136,800	159,300
Deposit liabilities reclassified as loans receivable	9,200	7,400
Loans with carrying value pledged to secure public deposits and other borrowings	7,600,000	6,600,000
Loans acquired with no evidence of deteriorated credit quality	3,143	14,953
Acquired Loans
Accounts, Notes, Loans and Financing Receivable
Net discount	81,600	94,700
Sabadell United
Accounts, Notes, Loans and Financing Receivable
Loans acquired	4,000,000				$ 4,030,777
Covered loans acquired	158,600
Sabadell United | Non-US
Accounts, Notes, Loans and Financing Receivable
Covered loans acquired	202,600	325,500
Gibraltar Private Bank & Trust Company
Accounts, Notes, Loans and Financing Receivable
Loans acquired				$ 1,447,475
Loans acquired with no evidence of deteriorated credit quality	1,426,756
Loans acquired with deteriorated credit quality	20,719
TDRs Occurring during the Period | TDRs
Accounts, Notes, Loans and Financing Receivable
TDRs during period	53,171	70,459	$ 222,436
TDRs during period on accrual status	31,500	46,300	85,900
TDRs during period on non-accrual status	$ 21,700	$ 24,200	$ 136,500

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Loans and Leases - Schedule of Aging of Loans (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Accruing	$ 59,460	$ 68,617
Non-accrual Loans	137,184	145,388
Acquired Impaired Loans	169,725	238,127	$ 302,780
Total Loans	22,519,815	20,078,181
Commercial Loans
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	125,706	194,201	282,001
Total Loans	15,125,322	14,073,297
Commercial Loans | Commercial real estate - Construction
Accounts, Notes, Loans and Financing Receivable
Accruing	1,054	727
Non-accrual Loans	1,094	2,635
Total Loans	1,196,366	1,240,396
Commercial Loans | Commercial real estate - owner-occupied
Accounts, Notes, Loans and Financing Receivable
Accruing	7,167	2,364
Non-accrual Loans	10,260	24,457
Total Loans	2,395,822	2,375,321
Commercial Loans | Commercial real estate - non-owner-occupied
Accounts, Notes, Loans and Financing Receivable
Accruing	7,833	9,378
Non-accrual Loans	15,898	6,811
Total Loans	5,796,117	5,322,513
Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Accruing	7,012	11,660
Non-accrual Loans	57,860	77,823
Total Loans	5,737,017	5,135,067
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	6,579	6,749	4,312
Residential Mortgage | Residential mortgage
Accounts, Notes, Loans and Financing Receivable
Current	4,290,152	2,962,043
Accruing	17,406	23,536
Non-accrual Loans	30,396	17,387
Total Loans	4,359,156	3,056,352
Consumer and Other Loans
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	37,440	37,177	$ 16,467
Consumer and Other Loans | Consumer - Home equity
Accounts, Notes, Loans and Financing Receivable
Current	2,258,659	2,250,205
Accruing	12,692	14,640
Non-accrual Loans	18,830	12,365
Total Loans	2,304,694	2,292,275
Consumer and Other Loans | Consumer - Other
Accounts, Notes, Loans and Financing Receivable
Current	721,231	645,498
Accruing	6,296	6,312
Non-accrual Loans	2,846	3,910
Total Loans	730,643	656,257
Current or Less Than 30 days past due
Accounts, Notes, Loans and Financing Receivable
Current	21,959,758	19,382,621
Current or Less Than 30 days past due | Commercial Loans | Commercial real estate - Construction
Accounts, Notes, Loans and Financing Receivable
Current	1,167,795	1,197,766
Current or Less Than 30 days past due | Commercial Loans | Commercial real estate - owner-occupied
Accounts, Notes, Loans and Financing Receivable
Current	2,305,743	2,243,923
Current or Less Than 30 days past due | Commercial Loans | Commercial real estate - non-owner-occupied
Accounts, Notes, Loans and Financing Receivable
Current	5,703,131	5,220,648
Current or Less Than 30 days past due | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Current	5,645,304	5,014,438
Current or Less Than 30 days past due | Residential Mortgage | Residential mortgage
Accounts, Notes, Loans and Financing Receivable
Current	4,218,146	2,877,048
Current or Less Than 30 days past due | Consumer and Other Loans | Consumer - Home equity
Accounts, Notes, Loans and Financing Receivable
Current	2,200,517	2,186,554
Current or Less Than 30 days past due | Consumer and Other Loans | Consumer - Other
Accounts, Notes, Loans and Financing Receivable
Current	719,122	642,244
30-59 days
Accounts, Notes, Loans and Financing Receivable
Accruing	38,579	36,818
30-59 days | Commercial Loans | Commercial real estate - Construction
Accounts, Notes, Loans and Financing Receivable
Accruing	1,054	269
30-59 days | Commercial Loans | Commercial real estate - owner-occupied
Accounts, Notes, Loans and Financing Receivable
Accruing	7,167	1,631
30-59 days | Commercial Loans | Commercial real estate - non-owner-occupied
Accounts, Notes, Loans and Financing Receivable
Accruing	7,473	2,086
30-59 days | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Accruing	5,139	5,788
30-59 days | Residential Mortgage | Residential mortgage
Accounts, Notes, Loans and Financing Receivable
Accruing	2,768	10,083
30-59 days | Consumer and Other Loans | Consumer - Home equity
Accounts, Notes, Loans and Financing Receivable
Accruing	10,283	11,675
30-59 days | Consumer and Other Loans | Consumer - Other
Accounts, Notes, Loans and Financing Receivable
Accruing	4,695	5,286
60-89 days
Accounts, Notes, Loans and Financing Receivable
Accruing	18,753	24,899
60-89 days | Commercial Loans | Commercial real estate - Construction
Accounts, Notes, Loans and Financing Receivable
Accruing	0	0
60-89 days | Commercial Loans | Commercial real estate - owner-occupied
Accounts, Notes, Loans and Financing Receivable
Accruing	0	659
60-89 days | Commercial Loans | Commercial real estate - non-owner-occupied
Accounts, Notes, Loans and Financing Receivable
Accruing	360	6,405
60-89 days | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Accruing	1,320	5,726
60-89 days | Residential Mortgage | Residential mortgage
Accounts, Notes, Loans and Financing Receivable
Accruing	13,063	8,136
60-89 days | Consumer and Other Loans | Consumer - Home equity
Accounts, Notes, Loans and Financing Receivable
Accruing	2,409	2,947
60-89 days | Consumer and Other Loans | Consumer - Other
Accounts, Notes, Loans and Financing Receivable
Accruing	1,601	1,026
Greater than 90 days
Accounts, Notes, Loans and Financing Receivable
Accruing	2,128	6,900
Greater than 90 days | Commercial Loans | Commercial real estate - Construction
Accounts, Notes, Loans and Financing Receivable
Accruing	0	458
Greater than 90 days | Commercial Loans | Commercial real estate - owner-occupied
Accounts, Notes, Loans and Financing Receivable
Accruing	0	74
Greater than 90 days | Commercial Loans | Commercial real estate - non-owner-occupied
Accounts, Notes, Loans and Financing Receivable
Accruing	0	887
Greater than 90 days | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Accruing	553	146
Greater than 90 days | Residential Mortgage | Residential mortgage
Accounts, Notes, Loans and Financing Receivable
Accruing	1,575	5,317
Greater than 90 days | Consumer and Other Loans | Consumer - Home equity
Accounts, Notes, Loans and Financing Receivable
Accruing	0	18
Greater than 90 days | Consumer and Other Loans | Consumer - Other
Accounts, Notes, Loans and Financing Receivable
Accruing	0	0
Acquired Loans
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	363,413	481,555
Acquired Loans | Commercial Loans | Commercial real estate - Construction
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	26,423	39,268
Acquired Loans | Commercial Loans | Commercial real estate - owner-occupied
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	72,652	104,577
Acquired Loans | Commercial Loans | Commercial real estate - non-owner-occupied
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	69,255	85,676
Acquired Loans | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	26,841	31,146
Acquired Loans | Residential Mortgage | Residential mortgage
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	93,208	138,381
Acquired Loans | Consumer and Other Loans | Consumer - Home equity
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	72,655	78,716
Acquired Loans | Consumer and Other Loans | Consumer - Other
Accounts, Notes, Loans and Financing Receivable
Acquired Impaired Loans	$ 2,379	$ 3,791

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Loans and Leases - Schedule of Carrying Amount of Loans Acquired (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Mar. 23, 2018	Dec. 31, 2017	Jul. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Expected losses and foregone interest	$ (155,401)		$ (154,099)		$ (155,960)
Loans acquired with no evidence of deteriorated credit quality	3,143		14,953
Related allowance	(16,342)		$ (17,352)		$ (24,293)
Sabadell United
Accounts, Notes, Loans and Financing Receivable
Loans acquired	4,000,000			$ 4,030,777
Covered loans acquired	158,600
Gibraltar Private Bank & Trust Company
Accounts, Notes, Loans and Financing Receivable
Loans acquired		$ 1,447,475
Contractually required principal and interest at acquisition	1,593,408
Expected losses and foregone interest	(25,029)
Cash flows expected to be collected at acquisition	1,568,379
Loans acquired with no evidence of deteriorated credit quality	1,426,756
Impaired Financing Receivable, with Related Allowance, Recorded Investment	29,929
Related allowance	(3,636)
Impaired Financing Receivable, Expected Cash Flow	26,293
Accretable yield	5,574
Loans acquired with deteriorated credit quality	$ 20,719

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Loans and Leases - Summary of Changes in Accretable Yields of Acquired Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 152,623	$ 175,054	$ 227,502
Additions	5,574	32,937	0
Transfers from non-accretable difference to accretable yield	3,623	4,912	5,490
Accretion	(47,962)	(56,337)	(68,211)
Changes in expected cash flows not affecting non-accretable differences	19,484	(3,943)	10,273
Balance at end of period	$ 133,342	$ 152,623	$ 175,054

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Loans and Leases - Schedule of Modified TDRs (Detail) - TDRs Occurring during the Period - TDRs - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Modifications
TDRs during period on accrual status	$ 31,500	$ 46,300	$ 85,900
TDRs during period on non-accrual status	21,700	24,200	136,500
Extended maturities	23,262	26,561	75,315
Interest rate adjustment	99	24	193
Financing Receivable Modifications Maturity And Interest Rate Adjustment	554	4,932	2,470
Financing Receivable Modifications Extension Of Interest Rate Only Payments	881	4,161	27,931
Forbearance	4,432	7,226	76,819
Other concession(s)	23,943	27,555	39,708
TDRs during period	$ 53,171	$ 70,459	$ 222,436

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Loans and Leases - Schedule of Subsequently Defaulted TDRs (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) SecurityLoan	Dec. 31, 2017 USD ($) SecurityLoan	Dec. 31, 2016 USD ($) SecurityLoan
Accounts, Notes, Loans and Financing Receivable
Threshold period for loans in default (in days)	30 days
TDRs | TDRs Occurring during the Period
Accounts, Notes, Loans and Financing Receivable
Number of Loans | SecurityLoan	246	359	523
Pre-modification Outstanding Recorded Investment	$ 66,395	$ 70,233	$ 223,640
Post-modification Outstanding Recorded Investment		$ 70,459	$ 222,436
Number of loans | SecurityLoan	81	163	124
Recorded investment	$ 7,512	$ 28,734	$ 21,225
TDRs | Commercial Loans | Commercial real estate - Construction | TDRs Occurring during the Period
Accounts, Notes, Loans and Financing Receivable
Number of Loans | SecurityLoan	3	4	3
Pre-modification Outstanding Recorded Investment	$ 4,819	$ 9,404	$ 3,024
Post-modification Outstanding Recorded Investment	$ 3,830	$ 9,628	$ 3,035
Number of loans | SecurityLoan	0	2	1
Recorded investment	$ 0	$ 3,572	$ 116
TDRs | Commercial Loans | Commercial real estate - owner-occupied | TDRs Occurring during the Period
Accounts, Notes, Loans and Financing Receivable
Number of Loans | SecurityLoan	14	11	20
Pre-modification Outstanding Recorded Investment	$ 4,257	$ 5,779	$ 18,223
Post-modification Outstanding Recorded Investment	$ 3,912	$ 5,706	$ 18,239
Number of loans | SecurityLoan	2	6	3
Recorded investment	$ 142	$ 4,668	$ 3,473
TDRs | Commercial Loans | Commercial real estate - non-owner-occupied | TDRs Occurring during the Period
Accounts, Notes, Loans and Financing Receivable
Number of Loans | SecurityLoan	20	19	25
Pre-modification Outstanding Recorded Investment	$ 3,719	$ 11,974	$ 16,644
Post-modification Outstanding Recorded Investment	$ 3,428	$ 13,738	$ 10,093
Number of loans | SecurityLoan	5	13	6
Recorded investment	$ 1,039	$ 8,060	$ 201
TDRs | Commercial Loans | Commercial and industrial | TDRs Occurring during the Period
Accounts, Notes, Loans and Financing Receivable
Number of Loans | SecurityLoan	52	57	79
Pre-modification Outstanding Recorded Investment	$ 39,796	$ 21,651	$ 163,265
Post-modification Outstanding Recorded Investment	$ 30,295	$ 20,883	$ 169,893
Number of loans | SecurityLoan	13	32	22
Recorded investment	$ 3,757	$ 6,550	$ 14,707
TDRs | Residential Mortgage | Residential mortgage | TDRs Occurring during the Period
Accounts, Notes, Loans and Financing Receivable
Number of Loans | SecurityLoan	19	24	43
Pre-modification Outstanding Recorded Investment	$ 1,706	$ 1,897	$ 5,141
Post-modification Outstanding Recorded Investment	$ 1,529	$ 1,771	$ 4,946
Number of loans | SecurityLoan	8	16	8
Recorded investment	$ 773	$ 1,218	$ 405
TDRs | Consumer and Other Loans | Consumer - Home equity | TDRs Occurring during the Period
Accounts, Notes, Loans and Financing Receivable
Number of Loans | SecurityLoan	65	123	158
Pre-modification Outstanding Recorded Investment	$ 10,607	$ 16,346	$ 13,273
Post-modification Outstanding Recorded Investment	$ 8,951	$ 15,862	$ 12,568
Number of loans | SecurityLoan	15	32	25
Recorded investment	$ 1,354	$ 3,285	$ 1,379
TDRs | Consumer and Other Loans | Consumer - Other | TDRs Occurring during the Period
Accounts, Notes, Loans and Financing Receivable
Number of Loans | SecurityLoan	73	121	195
Pre-modification Outstanding Recorded Investment	$ 1,491	$ 3,182	$ 4,070
Post-modification Outstanding Recorded Investment	$ 1,226	$ 2,871	$ 3,662
Number of loans | SecurityLoan	38	62	59
Recorded investment	$ 447	$ 1,381	$ 944

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Allowance for Credit Losses and Credit Quality - Schedule of Allowance for Loan Losses for Covered and Non-Covered Loan Portfolios (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for credit losses
Allowance for loan losses at beginning of period	$ 140,891	$ 144,719	$ 138,378
Provision for loan losses before benefit attributable to FDIC loss share agreements	39,472	51,111	42,927
Adjustment attributable to FDIC loss share arrangements	0	0	(1,497)
Net provision for loan losses	39,472	51,111	44,424
Transfer of balance to OREO and other	(7,172)	934	(2,781)
Loans charged-off	(45,547)	(62,466)	(39,839)
Recoveries	12,927	6,593	6,034
Allowance for loan losses at end of period	140,571	140,891	144,719
Reserve For Unfunded Commitments
Reserve for unfunded commitments at beginning of period	13,208	11,241	14,145
provision for unfunded commitment, acquired	709	1,370	0
Provision For Unfunded Commitments	913	597	(2,904)
Reserve for unfunded commitments at end of period	14,830	13,208	11,241
Allowance for credit losses at end of period	$ 155,401	$ 154,099	$ 155,960

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Allowance for Credit Losses and Credit Quality - Schedule of Allowance for Loan Losses for Legacy and Acquired Loans, by Loan Portfolio (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses
provision for unfunded commitment, acquired	$ 709	$ 1,370
Financing Receivable, Allowance for Credit Losses
Allowance for loan losses at beginning of period	140,891	144,719	$ 138,378
Provision for (Reversal of) loan losses	39,472	51,111	44,424
Decrease in FDIC loss share receivable			1,497
Transfer of balance to OREO and other	(7,172)	934	(2,781)
Loans charged-off	(45,547)	(62,466)	(39,839)
Recoveries	12,927	6,593	6,034
Allowance for loan losses at end of period	140,571	140,891	144,719
Financing Receivable, Reserve For Unfunded Commitments
Reserve for unfunded commitments at beginning of period	13,208	11,241	14,145
Provision for (Reversal of) unfunded commitments	913	597	2,904
Reserve for unfunded commitments at end of period	14,830	13,208	11,241
Allowance on loans individually evaluated for impairment	16,342	17,352	24,293
Allowance on loans collectively evaluated for impairment	111,266	89,655	84,214
Allowance on loans acquired with deteriorated credit quality	155,401	154,099	155,960
Loans, net of unearned income:
Loans, net of unearned income	22,519,815	20,078,181	15,064,971
Balance at end of period individually evaluated for impairment	169,725	238,127	302,780
Balance at end of period collectively evaluated for impairment	21,986,677	19,358,499	14,232,005
Commercial Loans | Real Estate
Financing Receivable, Allowance for Credit Losses
provision for unfunded commitment, acquired	118	253
Financing Receivable, Allowance for Credit Losses
Allowance for loan losses at beginning of period	54,201	49,231	51,372
Provision for (Reversal of) loan losses	(829)	10,433	1,958
Decrease in FDIC loss share receivable			34
Transfer of balance to OREO and other	(2,256)	853	(868)
Loans charged-off	(1,611)	(7,433)	(4,338)
Recoveries	2,301	1,117	1,141
Allowance for loan losses at end of period	51,806	54,201	49,231
Financing Receivable, Reserve For Unfunded Commitments
Reserve for unfunded commitments at beginning of period	4,531	3,207	4,167
Provision for (Reversal of) unfunded commitments	220	1,071	960
Reserve for unfunded commitments at end of period	4,869	4,531	3,207
Allowance on loans individually evaluated for impairment	636	1,588	1,378
Allowance on loans collectively evaluated for impairment	45,651	30,360	25,248
Loans, net of unearned income:
Loans, net of unearned income	9,388,305	8,938,230	6,846,549
Balance at end of period individually evaluated for impairment	53,905	91,785	61,006
Balance at end of period collectively evaluated for impairment	9,166,070	8,616,924	6,504,875
Commercial Loans | Commercial and industrial
Financing Receivable, Allowance for Credit Losses
provision for unfunded commitment, acquired	40	783
Financing Receivable, Allowance for Credit Losses
Allowance for loan losses at beginning of period	53,916	60,939	49,355
Provision for (Reversal of) loan losses	23,866	31,891	32,296
Decrease in FDIC loss share receivable			50
Transfer of balance to OREO and other	(812)	(68)	(519)
Loans charged-off	(29,578)	(40,015)	(21,645)
Recoveries	6,704	1,169	1,502
Allowance for loan losses at end of period	54,096	53,916	60,939
Financing Receivable, Reserve For Unfunded Commitments
Reserve for unfunded commitments at beginning of period	5,309	4,537	6,106
Provision for (Reversal of) unfunded commitments	849	(11)	1,569
Reserve for unfunded commitments at end of period	6,198	5,309	4,537
Allowance on loans individually evaluated for impairment	12,646	12,736	21,413
Allowance on loans collectively evaluated for impairment	39,949	38,944	37,206
Loans, net of unearned income:
Loans, net of unearned income	5,737,017	5,135,067	4,060,032
Balance at end of period individually evaluated for impairment	71,801	102,416	220,995
Balance at end of period collectively evaluated for impairment	5,638,375	5,001,505	3,806,305
Residential Mortgage
Financing Receivable, Allowance for Credit Losses
provision for unfunded commitment, acquired	551	327
Financing Receivable, Allowance for Credit Losses
Allowance for loan losses at beginning of period	9,117	11,249	11,789
Provision for (Reversal of) loan losses	4,200	(2,206)	824
Decrease in FDIC loss share receivable			1,090
Transfer of balance to OREO and other	(106)	2	(141)
Loans charged-off	(334)	(365)	(313)
Recoveries	121	437	180
Allowance for loan losses at end of period	12,998	9,117	11,249
Financing Receivable, Reserve For Unfunded Commitments
Reserve for unfunded commitments at beginning of period	555	657	830
Provision for (Reversal of) unfunded commitments	(240)	(429)	173
Reserve for unfunded commitments at end of period	866	555	657
Allowance on loans individually evaluated for impairment	145	172	144
Allowance on loans collectively evaluated for impairment	6,961	3,141	4,223
Loans, net of unearned income:
Loans, net of unearned income	4,359,156	3,056,352	1,267,400
Balance at end of period individually evaluated for impairment	6,579	6,749	4,312
Balance at end of period collectively evaluated for impairment	4,259,369	2,911,222	1,140,136
Consumer and Other Loans
Financing Receivable, Allowance for Credit Losses
provision for unfunded commitment, acquired	0	7
Financing Receivable, Allowance for Credit Losses
Allowance for loan losses at beginning of period	23,657	23,300	25,862
Provision for (Reversal of) loan losses	12,235	10,993	9,346
Decrease in FDIC loss share receivable			323
Transfer of balance to OREO and other	(3,998)	147	(1,253)
Loans charged-off	(14,024)	(14,653)	(13,543)
Recoveries	3,801	3,870	3,211
Allowance for loan losses at end of period	21,671	23,657	23,300
Financing Receivable, Reserve For Unfunded Commitments
Reserve for unfunded commitments at beginning of period	2,813	2,840	3,042
Provision for (Reversal of) unfunded commitments	84	(34)	202
Reserve for unfunded commitments at end of period	2,897	2,813	2,840
Allowance on loans individually evaluated for impairment	2,915	2,856	1,358
Allowance on loans collectively evaluated for impairment	18,705	17,210	17,537
Loans, net of unearned income:
Loans, net of unearned income	3,035,337	2,948,532	2,890,990
Balance at end of period individually evaluated for impairment	37,440	37,177	16,467
Balance at end of period collectively evaluated for impairment	2,922,863	2,828,848	2,780,689
Receivables Acquired with Deteriorated Credit Quality
Financing Receivable, Reserve For Unfunded Commitments
Allowance on loans acquired with deteriorated credit quality	12,963	33,884	36,212
Loans, net of unearned income:
Balance at end of period acquired with deteriorated credit quality	363,413	481,555	530,186
Receivables Acquired with Deteriorated Credit Quality | Commercial Loans | Real Estate
Financing Receivable, Reserve For Unfunded Commitments
Allowance on loans acquired with deteriorated credit quality	5,519	22,253	22,605
Loans, net of unearned income:
Balance at end of period acquired with deteriorated credit quality	168,330	229,521	280,668
Receivables Acquired with Deteriorated Credit Quality | Commercial Loans | Commercial and industrial
Financing Receivable, Reserve For Unfunded Commitments
Allowance on loans acquired with deteriorated credit quality	1,501	2,236	2,320
Loans, net of unearned income:
Balance at end of period acquired with deteriorated credit quality	26,841	31,146	32,732
Receivables Acquired with Deteriorated Credit Quality | Residential Mortgage
Financing Receivable, Reserve For Unfunded Commitments
Allowance on loans acquired with deteriorated credit quality	5,892	5,804	6,882
Loans, net of unearned income:
Balance at end of period acquired with deteriorated credit quality	93,208	138,381	122,952
Receivables Acquired with Deteriorated Credit Quality | Consumer and Other Loans
Financing Receivable, Reserve For Unfunded Commitments
Allowance on loans acquired with deteriorated credit quality	51	3,591	4,405
Loans, net of unearned income:
Balance at end of period acquired with deteriorated credit quality	$ 75,034	$ 82,507	$ 93,834

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Allowance for Credit Losses and Credit Quality - Investment in Legacy and Acquired Loans by Credit Quality Indicator (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses
Total Loans	$ 22,519,815	$ 20,078,181
Commercial Loans
Financing Receivable, Allowance for Credit Losses
Total Loans	15,125,322	14,073,297
Commercial Loans | Commercial real estate - Construction
Financing Receivable, Allowance for Credit Losses
Total Loans	1,196,366	1,240,396
Commercial Loans | Commercial real estate - owner-occupied
Financing Receivable, Allowance for Credit Losses
Total Loans	2,395,822	2,375,321
Commercial Loans | Commercial real estate - non-owner-occupied
Financing Receivable, Allowance for Credit Losses
Total Loans	5,796,117	5,322,513
Commercial Loans | Commercial and industrial
Financing Receivable, Allowance for Credit Losses
Total Loans	5,737,017	5,135,067
Residential and Consumer Portfolio
Financing Receivable, Allowance for Credit Losses
Current	7,270,042	5,857,746
30 or more days past due	124,451	147,138
Total Loans	7,394,493	6,004,884
Residential Mortgage | Residential mortgage
Financing Receivable, Allowance for Credit Losses
Current	4,290,152	2,962,043
30 or more days past due	69,004	94,309
Total Loans	4,359,156	3,056,352
Consumer and Other Loans | Consumer - Home equity
Financing Receivable, Allowance for Credit Losses
Current	2,258,659	2,250,205
30 or more days past due	46,035	42,070
Total Loans	2,304,694	2,292,275
Consumer and Other Loans | Consumer - Other
Financing Receivable, Allowance for Credit Losses
Current	721,231	645,498
30 or more days past due	9,412	10,759
Total Loans	730,643	656,257
Pass | Commercial Loans
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	14,785,998	13,564,833
Pass | Commercial Loans | Commercial real estate - Construction
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	1,182,554	1,189,490
Pass | Commercial Loans | Commercial real estate - owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	2,328,999	2,234,151
Pass | Commercial Loans | Commercial real estate - non-owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	5,687,963	5,258,638
Pass | Commercial Loans | Commercial and industrial
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	5,586,482	4,882,554
Special Mention | Commercial Loans
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	157,229	209,925
Special Mention | Commercial Loans | Commercial real estate - Construction
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	1,062	20,351
Special Mention | Commercial Loans | Commercial real estate - owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	25,526	82,114
Special Mention | Commercial Loans | Commercial real estate - non-owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	78,009	19,311
Special Mention | Commercial Loans | Commercial and industrial
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	52,632	88,149
Substandard | Commercial Loans
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	154,402	258,794
Substandard | Commercial Loans | Commercial real estate - Construction
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	12,740	30,541
Substandard | Commercial Loans | Commercial real estate - owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	41,297	56,590
Substandard | Commercial Loans | Commercial real estate - non-owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	26,512	42,702
Substandard | Commercial Loans | Commercial and industrial
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	73,853	128,961
Doubtful | Commercial Loans
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	27,693	39,627
Doubtful | Commercial Loans | Commercial real estate - Construction
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	10	14
Doubtful | Commercial Loans | Commercial real estate - owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	0	2,466
Doubtful | Commercial Loans | Commercial real estate - non-owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	3,633	1,744
Doubtful | Commercial Loans | Commercial and industrial
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable	$ 24,050	35,403
Loss | Commercial Loans
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable		118
Loss | Commercial Loans | Commercial real estate - Construction
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable		0
Loss | Commercial Loans | Commercial real estate - owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable		0
Loss | Commercial Loans | Commercial real estate - non-owner-occupied
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable		118
Loss | Commercial Loans | Commercial and industrial
Financing Receivable, Allowance for Credit Losses
Gross loans and leases receivable		$ 0

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Allowance for Credit Losses and Credit Quality - Schedule of Investment in Legacy Impaired Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Impaired
Unpaid Principal Balance	$ 209,746	$ 283,629	$ 316,678
Recorded Investment	169,725	238,127	302,780
Related Allowance	(16,342)	(17,352)	(24,293)
Average Recorded Investment	4,822	273,254	272,364
Interest Income Recognized	273	8,368	9,191
Commercial Loans
Financing Receivable, Impaired
Unpaid Principal Balance	164,209	237,922	294,649
Recorded Investment	125,706	194,201	282,001
Related Allowance	(13,282)	(14,324)	(22,791)
Average Recorded Investment	142,895	232,590	255,325
Interest Income Recognized	5,601	6,595	8,444
Residential Mortgage
Financing Receivable, Impaired
Unpaid Principal Balance	7,114	7,183	4,628
Recorded Investment	6,579	6,749	4,312
Related Allowance	(145)	(172)	(144)
Average Recorded Investment	6,755	6,905	4,377
Interest Income Recognized	271	265	161
Consumer and Other Loans
Financing Receivable, Impaired
Unpaid Principal Balance	38,423	38,524	17,401
Recorded Investment	37,440	37,177	16,467
Related Allowance	(2,915)	(2,856)	(1,358)
Average Recorded Investment	35,600	33,759	12,662
Interest Income Recognized	1,514	1,508	586
With No Related Allowance Recorded | Commercial Loans | Commercial real estate - Construction
Financing Receivable, Impaired
Unpaid Principal Balance	10,261	13,763	38
Recorded Investment	9,262	13,013	38
Average Recorded Investment	9,189	9,104	28
Interest Income Recognized	496	441	0
With No Related Allowance Recorded | Commercial Loans | Commercial real estate - owner-occupied
Financing Receivable, Impaired
Unpaid Principal Balance	25,037	50,867	25,180
Recorded Investment	19,044	44,482	25,074
Average Recorded Investment	19,559	53,282	25,890
Interest Income Recognized	807	1,389	647
With No Related Allowance Recorded | Commercial Loans | Commercial real estate - non-owner-occupied
Financing Receivable, Impaired
Unpaid Principal Balance	15,265	15,370	15,654
Recorded Investment	14,288	14,975	14,794
Average Recorded Investment	14,873	15,127	19,587
Interest Income Recognized	590	692	879
With No Related Allowance Recorded | Commercial Loans | Commercial and industrial
Financing Receivable, Impaired
Unpaid Principal Balance	55,554	103,013	148,311
Recorded Investment	43,886	70,254	138,202
Average Recorded Investment	47,268	92,312	111,261
Interest Income Recognized	2,422	2,279	3,418
With No Related Allowance Recorded | Commercial Loans | Residential mortgage
Financing Receivable, Impaired
Unpaid Principal Balance	1,244	2,004
Recorded Investment	1,221	2,001
Average Recorded Investment	1,261	2,044
Interest Income Recognized	46	85
With No Related Allowance Recorded | Consumer and Other Loans | Consumer - Home equity
Financing Receivable, Impaired
Unpaid Principal Balance	4,183	5,906
Recorded Investment	4,176	5,634
Average Recorded Investment	2,867	5,747
Interest Income Recognized	39	231
With No Related Allowance Recorded | Consumer and Other Loans | Consumer - Other
Financing Receivable, Impaired
Unpaid Principal Balance		75
Recorded Investment		75
Average Recorded Investment		11
Interest Income Recognized		1
With An Allowance Recorded | Commercial Loans | Commercial real estate - Construction
Financing Receivable, Impaired
Unpaid Principal Balance	228	238	1,946
Recorded Investment	140	156	1,946
Related Allowance	(11)	(19)	(649)
Average Recorded Investment	185,250	197	1,839
Interest Income Recognized	7,386	6	54
With An Allowance Recorded | Commercial Loans | Commercial real estate - owner-occupied
Financing Receivable, Impaired
Unpaid Principal Balance	5,032	13,314	17,580
Recorded Investment	4,773	13,287	17,429
Related Allowance	(520)	(949)	(640)
Average Recorded Investment	148	13,498	16,668
Interest Income Recognized	1	414	493
With An Allowance Recorded | Commercial Loans | Commercial real estate - non-owner-occupied
Financing Receivable, Impaired
Unpaid Principal Balance	6,445	6,051	1,743
Recorded Investment	6,398	5,872	1,725
Related Allowance	(105)	(620)	(89)
Average Recorded Investment	4,976	6,196	1,782
Interest Income Recognized	196	154	95
With An Allowance Recorded | Commercial Loans | Commercial and industrial
Financing Receivable, Impaired
Unpaid Principal Balance	46,387	35,306	84,197
Recorded Investment	27,915	32,162	82,793
Related Allowance	(12,646)	(12,736)	(21,413)
Average Recorded Investment	6,229	42,874	78,270
Interest Income Recognized	294	1,220	2,858
With An Allowance Recorded | Residential Mortgage | Residential mortgage
Financing Receivable, Impaired
Unpaid Principal Balance	5,870	5,179	4,628
Recorded Investment	5,358	4,748	4,312
Related Allowance	(145)	(172)	(144)
Average Recorded Investment	40,653	4,861	4,377
Interest Income Recognized	795	180	161
With An Allowance Recorded | Consumer and Other Loans | Consumer - Home equity
Financing Receivable, Impaired
Unpaid Principal Balance	29,284	27,189	13,916
Recorded Investment	28,818	26,575	13,267
Related Allowance	(2,427)	(2,358)	(993)
Average Recorded Investment	5,494	23,546	10,237
Interest Income Recognized	225	1,007	435
With An Allowance Recorded | Consumer and Other Loans | Consumer - Other
Financing Receivable, Impaired
Unpaid Principal Balance	4,956	5,354	3,485
Recorded Investment	4,446	4,893	3,200
Related Allowance	(488)	(498)	(365)
Average Recorded Investment	27,911	4,455	2,425
Interest Income Recognized	$ 1,202	$ 269	$ 151

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Transfers and Servicing of Financial Assets (Including Mortgage Banking Activity) (Detail) - USD ($) $ in Billions	Dec. 31, 2018	Dec. 31, 2017
Transfers and Servicing [Abstract]
Unpaid principal balances of loans serviced	$ 1.6	$ 1.3

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Transfers and Servicing of Financial Assets (including Mortgage Banking Activity) - Changes in Carrying Amount of Mortgage Loans Held-for-sale (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Balance at beginning of period	$ 134,916	$ 157,041	$ 166,247
Originations and purchases	1,469,847	1,844,358	2,460,033
Sales, net of gains	(1,498,386)	(1,859,565)	(2,451,459)
Mortgage loans transferred to held for investment	1,058	(6,918)	(14,017)
Other	299	0	(3,763)
Balance at end of period	$ 107,734	$ 134,916	$ 157,041

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Transfers and Servicing of Financial Assets (including Mortgage Banking Activity) - Components of Mortgage Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Participating Mortgage Loans
Gains on sales	$ 45,338	$ 62,438	$ 74,486
Mortgage income
Participating Mortgage Loans
Mortgage loans held for sale and derivatives	6,490	(7,047)	1,361
Derivative settlements, net	(4,039)	1,229	(6,640)
Gains on sales	42,887	68,255	87,925
Servicing and other income, net	1,339	1,133	1,207
Other losses	(253)	0	0
Total mortgage income	$ 46,424	$ 63,570	$ 83,853

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- Schedule of Mortgage Servicing Rights at Carrying Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 137,774	$ 129,163
Accumulated Amortization	(64,608)	(53,006)
Net Carrying Amount	73,166	76,157
Mortgage servicing rights
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	13,612	9,588
Accumulated Amortization	(4,806)	(3,931)
Net Carrying Amount	$ 8,806	$ 5,657

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Premises and Equipment - Schedule of Premises and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Land	$ 81,194	$ 89,137
Buildings	241,284	261,994
Furniture, fixtures and equipment	137,469	129,866
Total premises and equipment	459,947	480,997
Accumulated depreciation	(159,440)	(149,584)
Total premises and equipment, net	$ 300,507	$ 331,413

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Premises and Equipment (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 22.4	$ 21.0	$ 20.8
Maximum lease term	5 years
Total lease income	$ 2.1	2.4	2.8
Rent expense	$ 22.5	19.1	$ 16.6
Minimum
Property, Plant and Equipment [Line Items]
Operating lease term (in years)	1 year
Maximum
Property, Plant and Equipment [Line Items]
Operating lease term (in years)	50 years
Buildings
Property, Plant and Equipment [Line Items]
Total allocated cost of portion of buildings held for lease	$ 7.0	6.9
Accumulated depreciation	$ 2.7	$ 2.5

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Premises and Equipment - Schedule of Minimum Future Annual Rent Commitments (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Property, Plant and Equipment [Abstract]
2019	$ 21,750
2020	19,991
2021	16,921
2022	14,195
2023	9,182
2024 and thereafter	34,652
Total	$ 116,691

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Goodwill and Other Acquired Intangible Assets - Schedule of Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Dec. 31, 2018	Mar. 31, 2018	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Goodwill
Balance at beginning of the period			$ 1,188,902	$ 1,188,902	$ 726,856
Goodwill acquired and adjustments during the year					462,046
Goodwill acquired and adjustments during the year				46,631
Balance at end of the period	$ 1,235,533			1,235,533	1,188,902
Operating Segments | IBERIABANK
Goodwill
Balance at beginning of the period			1,160,559	1,160,559	698,513
Goodwill acquired and adjustments during the year					462,046
Goodwill acquired and adjustments during the year				43,251
Balance at end of the period	1,203,810			1,203,810	1,160,559
Operating Segments | Mortgage
Goodwill
Balance at beginning of the period			23,178	23,178	23,178
Goodwill acquired and adjustments during the year					0
Goodwill acquired and adjustments during the year				0
Balance at end of the period	23,178			23,178	23,178
Operating Segments | LTC
Goodwill
Balance at beginning of the period			5,165	5,165	5,165
Goodwill acquired and adjustments during the year					0
Goodwill acquired and adjustments during the year				3,380
Balance at end of the period	8,545			8,545	$ 5,165
Gibraltar Private Bank & Trust Company
Goodwill
Goodwill acquired and adjustments during the year	14,600
Balance at end of the period	64,300			64,300
Solomon Parks Title & Escrow
Goodwill
Goodwill acquired and adjustments during the year		$ 3,400
Balance at end of the period	$ 3,400			3,400
Sabadell United
Goodwill
Goodwill acquired and adjustments during the year			21,000	$ 21,000
Balance at end of the period			$ 441,000

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Goodwill and Other Acquired Intangible Assets Goodwill and Other Acquired Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Dec. 31, 2018	Mar. 31, 2018	Jun. 30, 2018	Dec. 31, 2018	Mar. 23, 2018	Jan. 12, 2018	Dec. 31, 2017	Jul. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Title plant assets	$ 6,800			$ 6,800			$ 6,700
Business Acquisition [Line Items]
Goodwill acquired and adjustments during the year				46,631
Sabadell United
Business Acquisition [Line Items]
Goodwill acquired and adjustments during the year			$ 21,000	$ 21,000
Core deposit intangible assets								$ 66,600
Gibraltar Private Bank & Trust Company
Business Acquisition [Line Items]
Goodwill acquired and adjustments during the year	$ 14,600
Core deposit intangible assets					$ 18,529
Solomon Parks Title & Escrow
Business Acquisition [Line Items]
Goodwill acquired and adjustments during the year		$ 3,400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Non-compete Agreement						$ 156

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Goodwill and Other Acquired Intangible Assets - Schedule of Definite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 137,774	$ 129,163
Accumulated Amortization	(64,608)	(53,006)
Net Carrying Amount	73,166	76,157
Core deposit intangible assets
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	136,183	127,957
Accumulated Amortization	(63,213)	(51,971)
Net Carrying Amount	72,970	75,986
Customer relationship intangible asset
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	1,385	1,143
Accumulated Amortization	(1,323)	(996)
Net Carrying Amount	62	147
Non-compete agreement
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	206	63
Accumulated Amortization	(72)	(39)
Net Carrying Amount	$ 134	$ 24

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Goodwill and Other Acquired Intangible Assets - Schedule of Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Aggregate amortization expense	$ 21,678	$ 12,590	$ 8,415
Estimated amortization expense for the years ended December 31:
2018	18,363
2019	14,500
2020	10,208
2021	7,711
2022	6,410
2024 and thereafter	$ 15,974

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Derivative Instruments and Other Hedging Activities - Schedule of Outstanding Derivative Instruments (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value of Derivatives
Derivative Asset	$ 27,048	$ 31,265
Derivative instruments	22,124	25,154
Notional Amount of Derivatives
Derivative assets	2,311,612	1,609,472
Derivative liabilities	1,991,559	1,721,752
Designated as Hedging Instruments
Fair Value of Derivatives
Derivative Asset	3,469	0
Derivative instruments	0	0
Notional Amount of Derivatives
Derivative assets	408,500	0
Derivative liabilities	0	108,500
Designated as Hedging Instruments | Interest rate contracts
Notional Amount of Derivatives
Derivative assets	408,500	0
Derivative liabilities	0	108,500
Designated as Hedging Instruments | Interest rate contracts | Other Assets
Fair Value of Derivatives
Derivative Asset	3,469	0
Designated as Hedging Instruments | Interest rate contracts | Other Liabilities
Fair Value of Derivatives
Derivative instruments	0	0
Not Designated as Hedging Instruments
Notional Amount of Derivatives
Derivative assets	1,903,112	1,609,472
Derivative liabilities	1,991,559	1,613,252
Not Designated as Hedging Instruments | Other Assets
Fair Value of Derivatives
Derivative Asset	23,579	31,265
Not Designated as Hedging Instruments | Other Liabilities
Fair Value of Derivatives
Derivative instruments	22,124	25,154
Not Designated as Hedging Instruments | Interest rate contracts
Notional Amount of Derivatives
Derivative assets	701,257	574,182
Derivative liabilities	919,653	644,282
Not Designated as Hedging Instruments | Interest rate contracts | Other Assets
Fair Value of Derivatives
Derivative Asset	16,946	8,128
Not Designated as Hedging Instruments | Interest rate contracts | Other Liabilities
Fair Value of Derivatives
Derivative instruments	17,812	12,318
Not Designated as Hedging Instruments | Customer swaps - upstream
Notional Amount of Derivatives
Derivative assets	919,653	644,282
Derivative liabilities	701,257	574,182
Not Designated as Hedging Instruments | Customer swaps - upstream | Other Assets
Fair Value of Derivatives
Derivative Asset	474	12,318
Not Designated as Hedging Instruments | Customer swaps - upstream | Other Liabilities
Fair Value of Derivatives
Derivative instruments	191	3,873
Not Designated as Hedging Instruments | Foreign exchange contracts
Notional Amount of Derivatives
Derivative assets	1,202	268
Derivative liabilities	1,202	268
Not Designated as Hedging Instruments | Foreign exchange contracts | Other Assets
Fair Value of Derivatives
Derivative Asset	18	7
Not Designated as Hedging Instruments | Foreign exchange contracts | Other Liabilities
Fair Value of Derivatives
Derivative instruments	18	7
Not Designated as Hedging Instruments | Forward sales contracts
Notional Amount of Derivatives
Derivative assets	1,140	82,347
Derivative liabilities	143,179	142,578
Not Designated as Hedging Instruments | Forward sales contracts | Other Assets
Fair Value of Derivatives
Derivative Asset	630	136
Not Designated as Hedging Instruments | Forward sales contracts | Other Liabilities
Fair Value of Derivatives
Derivative instruments	750	279
Not Designated as Hedging Instruments | Written and purchased options
Notional Amount of Derivatives
Derivative assets	229,333	278,638
Derivative liabilities	140,645	165,198
Not Designated as Hedging Instruments | Written and purchased options | Other Assets
Fair Value of Derivatives
Derivative Asset	5,490	10,654
Not Designated as Hedging Instruments | Written and purchased options | Other Liabilities
Fair Value of Derivatives
Derivative instruments	3,310	8,656
Not Designated as Hedging Instruments | Other contracts
Notional Amount of Derivatives
Derivative assets	50,527	29,755
Derivative liabilities	85,623	86,744
Not Designated as Hedging Instruments | Other contracts | Other Assets
Fair Value of Derivatives
Derivative Asset	21	22
Not Designated as Hedging Instruments | Other contracts | Other Liabilities
Fair Value of Derivatives
Derivative instruments	$ 43	$ 21

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Derivative Instruments and Other Hedging Activities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018
Derivative [Line Items]
Notional amount of derivative liabilities	$ 1,721,752	$ 1,991,559
Cash as collateral for derivative transactions	552
Cash Posted As Variation Margin for Derivatives	5,100	35,800
Not Designated as Hedging Instruments
Derivative [Line Items]
Notional amount of derivative liabilities	1,613,252	1,991,559
Not Designated as Hedging Instruments | Other contracts
Derivative [Line Items]
Notional amount of derivative liabilities	$ 86,744	$ 85,623

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Derivative Instruments and Other Hedging Activities - Reconciliation of Gross Amounts in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Derivative assets
Gross derivative assets	$ 24,174	$ 29,056
Gross amounts not offset in the Balance Sheet, derivatives	(619)	(12,469)
Gross amounts not offset in the Balance Sheet, collateral	0	0
Net derivative assets	23,555	16,587
Derivative liabilities
Gross derivative liabilities	21,288	16,191
Gross amounts not offset in the Balance Sheet, derivatives	(619)	(12,469)
Gross amounts not offset in the Balance Sheet, collateral	0	(552)
Net derivative liabilities	20,669	3,170
Written and purchased options
Derivative assets
Gross derivative assets	3,285	8,610
Gross amounts not offset in the Balance Sheet, derivatives	0	0
Gross amounts not offset in the Balance Sheet, collateral	0	0
Net derivative assets	3,285	8,610
Derivative liabilities
Gross derivative liabilities	3,285
Gross amounts not offset in the Balance Sheet, derivatives	0
Gross amounts not offset in the Balance Sheet, collateral	0
Net derivative liabilities	3,285
Designated as Hedging Instruments | Interest rate contracts
Derivative assets
Gross derivative assets	3,469
Gross amounts not offset in the Balance Sheet, derivatives	0
Gross amounts not offset in the Balance Sheet, collateral	0
Net derivative assets	3,469
Not Designated as Hedging Instruments | Interest rate contracts
Derivative assets
Gross derivative assets	17,420	20,446
Gross amounts not offset in the Balance Sheet, derivatives	(619)	(12,469)
Gross amounts not offset in the Balance Sheet, collateral	0	0
Net derivative assets	16,801	7,977
Derivative liabilities
Gross derivative liabilities	18,003	16,191
Gross amounts not offset in the Balance Sheet, derivatives	(619)	(12,469)
Gross amounts not offset in the Balance Sheet, collateral	0	(552)
Net derivative liabilities	$ 17,384	$ 3,170

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Derivative Instruments and Other Hedging Activities - Effect of Hedging Instruments on Consolidated Financial Statements (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Designated as Hedging Instruments | Cash Flow Hedging | Interest rate contracts | Interest expense
Derivative Instruments and Hedging Activities Disclosures
Amount of Gain (Loss) Recognized	$ (196)	$ (390)	$ 50
Derivative, Included Component, Gain (Loss) Recognized in Earnings	(150)
Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)	(46)	0	0
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	0
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Included Component Net	0
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Excluding Compnonent, Net	0
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures
Amount of Gain (Loss) Recognized	11,211	(1,299)	6,804
Not Designated as Hedging Instruments | Interest rate contracts | Other income
Derivative Instruments and Hedging Activities Disclosures
Amount of Gain (Loss) Recognized	6,962	4,750	8,830
Not Designated as Hedging Instruments | Foreign exchange contracts | Other income
Derivative Instruments and Hedging Activities Disclosures
Amount of Gain (Loss) Recognized	29	43	15
Not Designated as Hedging Instruments | Forward sales contracts | Mortgage income
Derivative Instruments and Hedging Activities Disclosures
Amount of Gain (Loss) Recognized	4,064	(4,115)	(1,731)
Not Designated as Hedging Instruments | Written and purchased options | Mortgage income
Derivative Instruments and Hedging Activities Disclosures
Amount of Gain (Loss) Recognized	180	(2,028)	(327)
Not Designated as Hedging Instruments | Other contracts | Other income
Derivative Instruments and Hedging Activities Disclosures
Amount of Gain (Loss) Recognized	(24)	51	17
OCI | Designated as Hedging Instruments | Cash Flow Hedging | Interest rate contracts
Derivative Instruments and Hedging Activities Disclosures
Amount of Gain (Loss) Recognized	4,416	$ (611)	$ (328)
Derivative, Included Component, Gain (Loss) Recognized in Earnings	4,835
Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)	$ (419)

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Deposits - Schedule of Deposits by Type (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Banking and Thrift [Abstract]
Non-interest-bearing deposits	$ 6,542,490	$ 6,209,925
Negotiable order of withdrawal (NOW)	4,514,113	4,348,939
Money market deposits accounts (MMDA)	8,237,291	7,674,291
Savings deposits	828,914	846,074
Time deposits	3,640,623	2,387,488
Total deposits	$ 23,763,431	$ 21,466,717	$ 17,408,283

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Deposits - Schedule of Time Deposits (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Banking and Thrift [Abstract]
Time Deposits, Less than or Equal to $250,000	$ 2,522,660	$ 1,768,047
Time Deposits, $250,000 or More	1,117,963	619,441
Total time deposits	$ 3,640,623	$ 2,387,488

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Deposits - Schedule of Maturities of Certificates of Deposit (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Banking and Thrift [Abstract]
2019	$ 2,504,515
2020	876,740
2021	159,877
2022	76,486
2023	12,684
2024 and thereafter	10,321
Total time deposits	$ 3,640,623	$ 2,387,488

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Short-Term Borrowings - Summary of Short-Term Borrowings (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Federal Home Loan Bank advances	$ 1,167,000	$ 475,000
Securities sold under agreements to repurchase	315,882	516,297
Total short-term borrowings	1,482,882	991,297
Short-term Debt, Other Disclosures
Outstanding at December 31	1,482,882	991,297
Maximum month-end outstanding balance	1,482,882	2,197,105
Average daily outstanding balance	$ 1,052,088	$ 905,755
Average rate during the year	1.40%	0.83%
Average rate at year end	2.12%	0.82%

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Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument
Long-term debt	$ 1,166,151	$ 1,495,835
IBERIABANK
Debt Instrument
Long-term debt	1,046,041	1,375,725
IBERIABANK | Federal Home Loan Bank Notes
Debt Instrument
Long-term debt	$ 986,027	$ 1,331,579
IBERIABANK | Federal Home Loan Bank Notes | Minimum
Debt Instrument
Interest rate	0.864%	0.864%
IBERIABANK | Federal Home Loan Bank Notes | Maximum
Debt Instrument
Interest rate	7.04%	7.04%
IBERIABANK | Notes Payable
Debt Instrument
Long-term debt	$ 60,014	$ 44,146
IBERIABANK | Notes Payable | Minimum
Debt Instrument
Interest rate	1.28%	1.28%
Debt Instrument term	7 years	7 years
IBERIABANK | Notes Payable | Maximum
Debt Instrument
Interest rate	6.82%	6.82%
Debt Instrument term	35 years	30 years
IBERIABANK Corporation | Junior Subordinated Debt
Debt Instrument
Long-term debt	$ 120,110	$ 120,110
Debt Instrument term	30 years
IBERIABANK Corporation | Junior Subordinated Debt | Statutory Trust I, 3 month LIBOR, plus 3.25%
Debt Instrument
Long-term debt	$ 10,310	10,310
IBERIABANK Corporation | Junior Subordinated Debt | Statutory Trust II, 3 month LIBOR, plus 3.15%
Debt Instrument
Long-term debt	10,310	10,310
IBERIABANK Corporation | Junior Subordinated Debt | Statutory Trust III, 3 month LIBOR, plus 2.00%
Debt Instrument
Long-term debt	10,310	10,310
IBERIABANK Corporation | Junior Subordinated Debt | Statutory Trust IV, 3 month LIBOR, plus 1.60%
Debt Instrument
Long-term debt	15,464	15,464
IBERIABANK Corporation | Junior Subordinated Debt | American Horizons Statutory Trust I, 3 month LIBOR, plus 3.15%
Debt Instrument
Long-term debt	6,186	6,186
IBERIABANK Corporation | Junior Subordinated Debt | Statutory Trust V, 3 month LIBOR, plus 1.435%
Debt Instrument
Long-term debt	10,310	10,310
IBERIABANK Corporation | Junior Subordinated Debt | Statutory Trust VI, 3 month LIBOR, plus 2.75%
Debt Instrument
Long-term debt	12,372	12,372
IBERIABANK Corporation | Junior Subordinated Debt | Statutory Trust VII, 3 month LIBOR, plus 2.54%
Debt Instrument
Long-term debt	13,403	13,403
IBERIABANK Corporation | Junior Subordinated Debt | Statutory Trust VIII, 3 month LIBOR, plus 3.50%
Debt Instrument
Long-term debt	7,217	7,217
IBERIABANK Corporation | Junior Subordinated Debt | OMNI Trust I, 3 month LIBOR, plus 3.30%
Debt Instrument
Long-term debt	8,248	8,248
IBERIABANK Corporation | Junior Subordinated Debt | OMNI Trust II, 3 Month LIBOR, plus 2.79%
Debt Instrument
Long-term debt	7,732	7,732
IBERIABANK Corporation | Junior Subordinated Debt | GA Commerce Trust II, 3 Month LIBOR, plus 1.64%
Debt Instrument
Long-term debt	$ 8,248	$ 8,248
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate
Debt Instrument
Three month LIBOR rate during period	2.81%	1.69%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | Statutory Trust I, 3 month LIBOR, plus 3.25%
Debt Instrument
Basis spread on variable rate	3.25%	3.25%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | Statutory Trust II, 3 month LIBOR, plus 3.15%
Debt Instrument
Basis spread on variable rate	3.15%	3.15%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | Statutory Trust III, 3 month LIBOR, plus 2.00%
Debt Instrument
Basis spread on variable rate	2.00%	2.00%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | Statutory Trust IV, 3 month LIBOR, plus 1.60%
Debt Instrument
Basis spread on variable rate	1.60%	1.60%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | American Horizons Statutory Trust I, 3 month LIBOR, plus 3.15%
Debt Instrument
Basis spread on variable rate	3.15%	3.15%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | Statutory Trust V, 3 month LIBOR, plus 1.435%
Debt Instrument
Basis spread on variable rate	1.435%	1.435%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | Statutory Trust VI, 3 month LIBOR, plus 2.75%
Debt Instrument
Basis spread on variable rate	2.75%	2.75%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | Statutory Trust VII, 3 month LIBOR, plus 2.54%
Debt Instrument
Basis spread on variable rate	2.54%	2.54%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | Statutory Trust VIII, 3 month LIBOR, plus 3.50%
Debt Instrument
Basis spread on variable rate	3.50%	3.50%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | OMNI Trust I, 3 month LIBOR, plus 3.30%
Debt Instrument
Basis spread on variable rate	3.30%	3.30%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | OMNI Trust II, 3 Month LIBOR, plus 2.79%
Debt Instrument
Basis spread on variable rate	2.79%	2.79%
IBERIABANK Corporation | Junior Subordinated Debt | 3 Month LIBOR Rate | GA Commerce Trust II, 3 Month LIBOR, plus 1.64%
Debt Instrument
Basis spread on variable rate	1.64%	1.64%

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Long-Term Debt (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument
Long-term debt	$ 1,166,151	$ 1,495,835
IBERIABANK
Debt Instrument
Long-term debt	$ 1,046,041	1,375,725
IBERIABANK | Federal Home Loan Bank Notes
Debt Instrument
Minimum FHLB advance amortization period	1 year 4 months
Maximum FHLB advance amortization period	20 years 1 month
Long-term debt	$ 986,027	1,331,579
IBERIABANK | Federal Home Loan Bank Notes | Blanket Floating Lien
Debt Instrument
Additional advances available from FHLB	7,000,000
IBERIABANK | Federal Home Loan Bank Notes | Pledge of Investment Securities
Debt Instrument
Additional advances available from FHLB	1,900,000
IBERIABANK Corporation | Junior Subordinated Debt
Debt Instrument
Long-term debt	$ 120,110	$ 120,110
Debt Instrument term	30 years
Earliest call date after issue	5 years
Earliest interest payment deferral date (in years or 20 consecutive quarters)	5 years
Weighted Average | IBERIABANK | Federal Home Loan Bank Notes
Debt Instrument
Weighted average advance rate on FHLB advances	2.15%	1.48%

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Long-Term Debt - Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2019	$ 309,116
2020	233,465
2021	125,255
2022	10,581
2023	58,762
2024 and thereafter	428,972
Total long-term debt	$ 1,166,151	$ 1,495,835

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- Schedule of Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Current expense	$ (115,195)	$ 84,827	$ 103,335
Deferred expense (benefit)	153,518	71,257	(16,654)
Tax credits	(5,179)	(10,845)	(7,112)
Amortization on qualified affordable housing tax credits	0	5,227	4,185
Tax benefits attributable to items charged to equity and goodwill	(866)	0	1,439
Total income tax expense	$ 32,278	$ 150,466	$ 85,193

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Income Taxes (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income taxes receivable		$ 208,000,000	$ 4,500,000
Operating Loss Carryforwards		$ 45,000,000
Operating loss carryforwards expiration period		20 years
Deferred tax assets valuation allowance		$ 0	$ 0
TCJA one-time tax expense		$ 51,000,000
Discrete tax items	$ 6,600,000
Change in enacted tax rate		1.60%
Effective tax rate prior to impact of change		6.40%
Effective tax rate		8.00%	51.40%	31.30%

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Income Taxes - Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal tax based on statutory rate		$ 84,531	$ 102,508	$ 95,189
Effect of tax-exempt income		(5,801)	(9,435)	(8,203)
Interest and other nondeductible expenses		6,464	9,605	3,250
State taxes, net of federal benefit		12,459	6,970	4,770
Tax credits		(5,179)	(10,845)	(7,112)
Amortization on qualified affordable housing tax credits		0	5,227	4,185
Other		(60,196)	46,436	(6,886)
Total income tax expense		$ 32,278	$ 150,466	$ 85,193
Effective tax rate		8.00%	51.40%	31.30%
Discrete tax items	$ 6,600
Tax and Jobs Act of 2017, Income Tax Expense (Benefit)			$ 65,300
TCJA one-time tax expense		$ 51,000
Equity based compensation			3,000
Reversal of prior year deferred tax asset impairment			1,000
Deferred REIT distribution			$ 600

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Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax asset:
NOL carryforward	$ 42,837	$ 8,364
Allowance for credit losses	38,571	38,402
Deferred compensation	5,482	5,876
Basis difference in acquired assets and liabilities	9,228	43,391
Unrealized losses on securities available for sale	0	12,198
OREO	32	2,639
Other	19,395	22,719
Deferred tax assets	115,545	133,589
Deferred tax liability:
Unrealized gains on securities available for sale	98,807	0
FHLB stock	0	(300)
Premises and equipment	(10,626)	(3,723)
Acquisition intangibles	(9,757)	(8,151)
Deferred loan costs	(5,814)	(3,114)
Basis difference in acquired assets and liabilities	(17,628)	(31,309)
Deferred Tax Liabilities, Leasing Arrangements	(37,844)	0
Other	(6,485)	(4,885)
Deferred tax liabilities	(186,961)	(51,482)
Net deferred tax liability	$ 71,416
Net deferred tax asset		$ 82,107

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Shareholders' Equity, Capital Ratios and Other Regulatory Matters - Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands								12 Months Ended
	Feb. 21, 2019	Mar. 23, 2018	Jul. 31, 2017	Mar. 07, 2017	Dec. 07, 2016	May 09, 2016	Aug. 05, 2015	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2018
Class of Stock [Line Items]
Liquidation preference value						$ 137,500
Carrying Amount								$ 132,097	$ 132,097
Number of shares authorized to be repurchased											1,137,500
Shares authorized to be repurchased								2,265,000
Proceeds from common stock issued								$ 0	485,151	$ 279,242
Series B Preferred Stock
Class of Stock [Line Items]
Ownership per share							6.625%
Liquidation preference value							$ 80,000
Carrying Amount								76,812	76,812
Series B Preferred Stock | 3 Month LIBOR Rate
Class of Stock [Line Items]
Variable dividend rate per share							4.262%
Series C Preferred Stock
Class of Stock [Line Items]
Ownership per share						6.60%
Liquidation preference value						$ 57,500
Carrying Amount								$ 55,285	$ 55,285
Series C Preferred Stock | 3 Month LIBOR Rate
Class of Stock [Line Items]
Variable dividend rate per share						4.92%
Common Stock
Class of Stock [Line Items]
Common stock issued (in shares)				6,100,000	3,593,750
Price per share of stock of issued				$ 83.00	$ 81.50
Proceeds from common stock issued				$ 485,200	$ 279,200
Gibraltar Private Bank & Trust Company
Class of Stock [Line Items]
Consideration paid		$ 214,666
Cash consideration		$ 7
Gibraltar Private Bank & Trust Company | Common Stock
Class of Stock [Line Items]
Common stock issued (shares)		2,787,773
Number of shares issued per share acquired		$ 1.9749
Common stock issued		$ 214,659
Price per share of common stock issued		$ 77.00
Sabadell United
Class of Stock [Line Items]
Consideration paid			$ 1,020,202
Cash consideration			$ 809,159
Sabadell United | Common Stock
Class of Stock [Line Items]
Common stock issued (shares)			2,610,304
Common stock issued			$ 211,043
Price per share of common stock issued			$ 80.85
Common Stock
Class of Stock [Line Items]
Common stock repurchases (in shares)								1,972,500		202,506
Common stock issued (in shares)									6,100,000	3,593,750
4Q 2018 Share Repurchase Program
Class of Stock [Line Items]
Number of shares authorized to be repurchased								2,765,000
2016 and 2018 Share Repurchase Program
Class of Stock [Line Items]
Average cost of common stock shares repurchased (in usd per share)								$ 75.46
2016 and 2018 Share Repurchase Program | Common Stock
Class of Stock [Line Items]
Common stock repurchases (in shares)								1,972,500
2016 Share Repurchase Program | Common Stock
Class of Stock [Line Items]
Common stock repurchases (in shares)								1,472,500
IBERIABANK
Class of Stock [Line Items]
Additional amount of dividends after annual earnings								$ 130,000
Funds available for loans or advances by parent								$ 288,900
Subsequent Event [Member]
Class of Stock [Line Items]
Treasury Stock, Value, Acquired, Cost Method	$ 17,500
Subsequent Event [Member] | Twenty Eighteen Share Repurchase Program [Member] [Domain] | Common Stock
Class of Stock [Line Items]
Common stock repurchases (in shares)	226,921

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Shareholders' Equity, Capital Ratios and Other Regulatory Matters - Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Consolidated
Tier 1 Leverage
Minimum amount	$ 1,168,343	$ 1,073,381
Minimum ratio	4.00%	4.00%
Actual amount	$ 2,812,863	$ 2,509,496
Actual ratio	9.63%	9.35%
Common Equity Tier 1 (CET1)
Minimum amount	$ 1,125,405	$ 1,011,732
Minimum ratio	4.50%	4.50%
Actual amount	$ 2,680,766	$ 2,377,398
Actual ratio	10.72%	10.57%
Tier 1 Risk-Based Capital (1)
Minimum amount	$ 1,500,540	$ 1,348,977
Minimum ratio	6.00%	6.00%
Actual amount	$ 2,812,863	$ 2,509,496
Actual ratio	11.25%	11.16%
Total Risk-Based Capital (1)
Minimum amount	$ 2,000,720	$ 1,798,635
Minimum ratio	8.00%	8.00%
Actual amount	$ 3,084,764	$ 2,780,095
Actual ratio	12.33%	12.37%
IBERIABANK
Tier 1 Leverage
Minimum amount	$ 1,165,537	$ 1,070,789
Minimum ratio	4.00%	4.00%
Well capitalized amount	$ 1,456,921	$ 1,338,487
Well capitalized ratio	5.00%	5.00%
Actual amount	$ 2,733,099	$ 2,437,275
Actual ratio	9.38%	9.10%
Common Equity Tier 1 (CET1)
Minimum amount	$ 1,122,712	$ 1,009,553
Minimum ratio	4.50%	4.50%
Well capitalized amount	$ 1,621,695	$ 1,458,243
Well capitalized ratio	6.50%	6.50%
Actual amount	$ 2,733,099	$ 2,437,275
Actual ratio	10.95%	10.86%
Tier 1 Risk-Based Capital (1)
Minimum amount	$ 1,496,949	$ 1,346,070
Minimum ratio	6.00%	6.00%
Well capitalized amount	$ 1,995,932	$ 1,794,760
Well capitalized ratio	8.00%	8.00%
Actual amount	$ 2,733,099	$ 2,437,275
Actual ratio	10.95%	10.86%
Total Risk-Based Capital (1)
Minimum amount	$ 1,995,932	$ 1,794,760
Minimum ratio	8.00%	8.00%
Well capitalized amount	$ 2,494,915	$ 2,243,450
Well capitalized ratio	10.00%	10.00%
Actual amount	$ 2,888,500	$ 2,591,374
Actual ratio	11.58%	11.55%

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Earnings Per Share - Schedule of Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings per common share - basic
Net income	$ 370,249	$ 142,413	$ 186,777
Preferred stock dividends	(9,095)	(9,095)	(7,977)
Dividends and undistributed earnings allocated to unvested restricted shares	(3,583)	(1,210)	(1,872)
Net income allocated to common shareholders - basic	$ 357,571	$ 132,108	$ 176,928
Weighted average common shares outstanding	55,008	50,640	40,948
Earnings per common share - basic (in usd per share)	$ 6.50	$ 2.61	$ 4.32
Earnings per common share - diluted
Net income allocated to common shareholders - basic	$ 357,571	$ 132,108	$ 176,928
Dividends and undistributed earnings allocated to unvested restricted shares	(49)	(1)	(37)
Net income allocated to common shareholders - diluted	$ 357,522	$ 132,107	$ 176,891
Weighted average common shares outstanding	55,008	50,640	40,948
Dilutive potential common shares	352	352	158
Weighted average common shares outstanding - diluted	55,360	50,992	41,106
Earnings per common share - diluted (in usd per share)	$ 6.46	$ 2.59	$ 4.30

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Earnings Per Share (Detail) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share
Weighted average number of shares held by Recognition and Retention Plan excluded from the calculation for basic shares outstanding	564,973	467,601	447,818
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from the computation of earnings per share	154,397	71,260	155,969

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Share-Based Compensation (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Future awards shares under approved incentive compensation plans	1,162,931
Share-based compensation maximum option term (in years)	10 years
Contributions made by the company to 401(k) plan	$ 3.7	$ 3.5	$ 1.9
Stock Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unearned share-based compensation associated with awards	$ 2.0
Unrecognized compensation cost related to stock options expected to be recognized over a weighted-average period	2 years 9 months
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unearned share-based compensation associated with awards	$ 27.1	$ 31.9
Unrecognized compensation cost related to stock options expected to be recognized over a weighted-average period	1 year 4 months
Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Phantom Stock Awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	5 years

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Share-Based Compensation - Activity Related to Stock Options (Detail) - Stock Option Awards - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of shares
Balance at beginning of the period (in shares)	686,366	721,538	813,777
Granted (in shares)	97,620	80,557	160,624
Exercised (in shares)	(42,047)	(85,221)	(196,769)
Forfeited or expired (in shares)	(27,519)	(30,508)	(56,094)
Balance at end of the period (in shares)	714,420	686,366	721,538
Exercisable at period end (in shares)	501,815	455,010	415,376
Weighted Average Exercise Price
Balance at beginning of the period (in usd per share)	$ 58.24	$ 55.38	$ 56.99
Granted (in usd per share)	82.02	84.78	48.65
Exercised (in usd per share)	53.07	55.45	55.39
Forfeited or expired (in usd per share)	68.30	68.46	59.49
Balance at end of the period (in usd per share)	61.41	58.24	55.38
Exercisable at period end (in usd per share)	$ 56.75	$ 55.77	$ 56.66
Aggregate Intrinsic Value (Dollars in thousands)
Exercised	$ 1,242	$ 2,098	$ 3,597
Balance at end of period	5,148
Exercisable at period end	$ 4,222
Weighted Average Remaining Contract Life (in years)
Weighted average remaining contract life at period end	5 years 1 month 29 days
Exercisable at period end	3 years 10 months 19 days

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Share-Based Compensation - Estimate Fair Value of Stock Option Awards with Weighted-Average Assumptions (Detail) - Stock Option Awards - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividends	1.80%	1.70%	2.80%
Expected volatility	24.30%	25.00%	29.00%
Risk-free interest rate	2.70%	2.10%	1.40%
Expected term (in years)	5 years 10 months 5 days	5 years 10 months 5 days	6 years 6 months
Weighted-average grant-date fair value	$ 18.48	$ 18.86	$ 10.46

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Share-Based Compensation - Compensation Expense Included in Non-Interest Expense and Related Income Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 1,280	$ 1,470	$ 2,010
Income tax benefit	93	124	331
Restricted Stock And Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	18,998	14,966	12,513
Income tax benefit	3,990	2,809	4,380
Phantom Stock and Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 8,141	$ 10,756	$ 12,933

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Share-Based Compensation - Unvested Restricted Stock Award Activity (Detail) - Restricted Stock And Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Balance at beginning of the period (in shares)	738,187	543,261	507,130
Granted (in shares)	231,064	421,198	254,276
Forfeited (in shares)	(72,217)	(31,699)	(28,855)
Earned and issued (in shares)	(196,406)	(194,573)	(189,290)
Balance at end of the period (in shares)	700,628	738,187	543,261
Weighted average grant date fair value (in usd per share)	$ 80.98	$ 82.49	$ 48.84
Fair value of restricted stock and restricted share units vested during the period	$ 16.3	$ 16.4	$ 10.7

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Share-Based Compensation - Schedule of Share and Dividend Equivalent Share Award Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Value of share equivalents
Market price of Company's stock	$ 64.28	$ 77.50	$ 83.75
Phantom Stock and Performance Stock Units
Number of share equivalents
Balance at beginning of the period (in shares)	393,844	472,830	462,430
Granted (in shares)	157,044	118,408	215,745
Forfeited share equivalents (in shares)	(63,276)	(34,968)	(42,051)
Vested share equivalents (in shares)	(134,205)	(162,426)	(163,294)
Balance at end of the period (in shares)	353,407	393,844	472,830
Value of share equivalents
Balance at beginning of the period (in shares)	$ 30,523	$ 39,600	$ 25,466
Granted (in shares)	10,095	9,177	18,069
Forfeited share equivalents (in shares)	4,067	2,710	3,522
Vested share equivalents (in shares)	11,156	13,515	8,509
Balance at end of the period (in shares)	$ 22,717	$ 30,523	$ 39,600

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Commitments and Contingencies (Detail) - USD ($) $ in Millions		9 Months Ended
	Dec. 11, 2017	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Fair value of guarantees under commercial and standby letters of credit			$ 2.4	$ 2.1
Settled Litigation
Loss Contingencies [Line Items]
Settlement amount	$ 11.7
Pending Litigation
Loss Contingencies [Line Items]
Damages sought		$ 11.7

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Commitments and Contingencies - Summary of Financial Instruments Outstanding (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments to extend credit	$ 642,162	$ 342,305
Unfunded commitments under lines of credit	6,883,963	6,060,034
Commercial and standby letters of credit	240,436	210,002
Reserve for unfunded lending commitments	$ 14,830	$ 13,208	$ 11,241	$ 14,145

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Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Assets
Securities available for sale, at fair value	$ 4,783,579,000	$ 4,590,062,000
Mortgage loans held for sale	107,734,000	134,916,000
Mortgage loans held for investment, at fair value option	3,143,000	14,953,000
Derivative instruments	24,174,000	29,056,000
Liabilities
Derivative instruments	21,288,000	16,191,000
Fair value assets transferred from Level 1 to Level 2	0
Level 1
Assets
Securities available for sale, at fair value	0	0
Mortgage loans held for investment, at fair value option	0	0
Level 2
Assets
Securities available for sale, at fair value	4,783,579,000	4,590,062,000
Mortgage loans held for investment, at fair value option	0	0
Level 3
Assets
Securities available for sale, at fair value	0	0
Mortgage loans held for investment, at fair value option	3,143,000	14,953,000
Recurring
Assets
Securities available for sale, at fair value	4,783,579,000	4,590,062,000
Mortgage loans held for sale	107,734,000	134,916,000
Mortgage loans held for investment, at fair value option	3,143,000	14,953,000
Derivative instruments	27,048,000	31,265,000
Total, Assets	4,921,504,000	4,771,196,000
Liabilities
Derivative instruments	22,124,000	25,154,000
Total	22,124,000	25,154,000
Recurring | Level 1
Assets
Securities available for sale, at fair value	0	0
Mortgage loans held for sale	0	0
Mortgage loans held for investment, at fair value option	0	0
Derivative instruments	0	0
Total, Assets	0	0
Liabilities
Derivative instruments	0	0
Total	0	0
Recurring | Level 2
Assets
Securities available for sale, at fair value	4,783,579,000	4,590,062,000
Mortgage loans held for sale	107,734,000	134,916,000
Mortgage loans held for investment, at fair value option	0	0
Derivative instruments	27,048,000	31,265,000
Total, Assets	4,918,361,000	4,756,243,000
Liabilities
Derivative instruments	22,124,000	25,154,000
Total	22,124,000	25,154,000
Recurring | Level 3
Assets
Securities available for sale, at fair value	0	0
Mortgage loans held for sale	0	0
Mortgage loans held for investment, at fair value option	3,143,000	14,953,000
Derivative instruments	0	0
Total, Assets	3,143,000	14,953,000
Liabilities
Derivative instruments	0	0
Total	$ 0	$ 0

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Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) - Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Impaired loans	$ 65,914	$ 71,210
OREO, net	6,433	7,748
Total	72,347	78,958
Level 1
Assets
Impaired loans	0	0
OREO, net	0	0
Total	0	0
Level 2
Assets
Impaired loans	0	0
OREO, net	0	0
Total	0	0
Level 3
Assets
Impaired loans	65,914	71,210
OREO, net	6,433	7,748
Total	$ 72,347	$ 78,958

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Fair Value Measurements - Summary of Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Mortgage Loans Held for Sale (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Mortgage loans held for sale, at fair value
Aggregate Fair Value	$ 107,734	$ 134,916
Aggregate Unpaid Principal	104,345	131,276
Aggregate Fair Value Less Unpaid Principal	3,389	3,640
Mortgage loans held for investment, at fair value
Aggregate Fair Value	3,143	14,953
Aggregate Unpaid Principal	3,595	16,306
Aggregate Fair Value Less Unpaid Principal	$ (452)	$ (1,353)

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Fair Value Measurements - Amount of Net Gains (Losses) from Fair Value Changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Net Gains (Losses) Resulting From Changes In Fair Value- Mortgage loans held for sale, at fair value	$ (251)	$ 944	$ (2,512)
Net Gains (Losses) Resulting From Changes In Fair Value- Mortgage loans held for investment, at fair value	$ (1,542)	$ (204)	$ (1,149)

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Fair Value of Financial Instruments - Estimated Fair Values and Carrying Amounts of Financial Instruments (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financial Assets
Securities available for sale, at fair value	$ 4,783,579	$ 4,590,062
Mortgage loans held for sale, at fair value	107,734	134,916	$ 157,041	$ 166,247
Mortgage loans held for investment, at fair value option	3,143	14,953
Derivative instruments	27,048	31,265
Cash and cash equivalents	690,453	625,724	1,362,126	$ 510,267
Securities held to maturity	207,446	227,318
Financial Liabilities
Derivative instruments	22,124	25,154
Deposits	23,763,431	21,466,717	$ 17,408,283
Short-term borrowings	1,482,882	991,297
Long-term debt	1,166,151	1,495,835
Level 1
Financial Assets
Securities available for sale, at fair value	0	0
Mortgage loans held for sale, at fair value	0	0
Mortgage loans held for investment, at fair value option	0	0
Derivative instruments	0	0
Cash and cash equivalents	690,453	625,724
Securities held to maturity	0	0
Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	0	0
Financial Liabilities
Derivative instruments	0	0
Deposits	0	0
Short-term borrowings	315,882	516,297
Long-term debt	0	0
Level 2
Financial Assets
Securities available for sale, at fair value	4,783,579	4,590,062
Mortgage loans held for sale, at fair value	107,734	134,916
Mortgage loans held for investment, at fair value option	0	0
Derivative instruments	27,048	31,265
Cash and cash equivalents	0	0
Securities held to maturity	204,277	227,964
Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	0	0
Financial Liabilities
Derivative instruments	22,124	25,154
Deposits	23,752,139	21,460,782
Short-term borrowings	1,167,000	475,000
Long-term debt	0	0
Level 3
Financial Assets
Securities available for sale, at fair value	0	0
Mortgage loans held for sale, at fair value	0	0
Mortgage loans held for investment, at fair value option	3,143	14,953
Derivative instruments	0	0
Cash and cash equivalents	0	0
Securities held to maturity	0	0
Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	22,088,236	19,811,904
Financial Liabilities
Derivative instruments	0	0
Deposits	0	0
Short-term borrowings	0	0
Long-term debt	1,154,062	1,476,899
Carrying Amount
Financial Assets
Securities available for sale, at fair value	4,783,579	4,590,062
Mortgage loans held for sale, at fair value	107,734	134,916
Mortgage loans held for investment, at fair value option	3,143	14,953
Derivative instruments	27,048	31,265
Cash and cash equivalents	690,453	625,724
Securities held to maturity	207,446	227,318
Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	22,376,101	19,922,337
Financial Liabilities
Derivative instruments	22,124	25,154
Deposits	23,763,431	21,466,717
Short-term borrowings	1,482,882	991,297
Long-term debt	1,166,151	1,495,835
Fair Value
Financial Assets
Securities available for sale, at fair value	4,783,579	4,590,062
Mortgage loans held for sale, at fair value	107,734	134,916
Mortgage loans held for investment, at fair value option	3,143	14,953
Derivative instruments	27,048	31,265
Cash and cash equivalents	690,453	625,724
Securities held to maturity	204,277	227,964
Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	22,088,236	19,811,904
Financial Liabilities
Derivative instruments	22,124	25,154
Deposits	23,752,139	21,460,782
Short-term borrowings	1,482,882	991,297
Long-term debt	$ 1,154,062	$ 1,476,899

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Business Segments (Detail)	12 Months Ended
	Dec. 31, 2018 Segment
Segment Reporting [Abstract]
Number of business segments	3

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Business Segments - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information
Interest and dividend income	$ 1,221,629	$ 913,783	$ 716,939
Interest expense	208,381	104,937	67,701
Net interest income	1,013,248	808,846	649,238
Provision for credit losses	40,385	51,708	41,521
Other non-interest income (expense)	81,989	116,605	121,651
Allocated expenses (income)	0	0	0
Non-interest expense	722,898	666,406	563,464
Income before income tax expense	402,527	292,879	271,970
Income tax expense	32,278	150,466	85,193
Net income	370,249	142,413	186,777
Total loans, leases, and loans held for sale, net of unearned income	22,627,549	20,213,097	15,222,012
Total assets	30,833,015	27,904,129	21,659,190
Total deposits	23,763,431	21,466,717	17,408,283
Average assets	29,578,026	24,480,656	20,321,234
Operating Segments | IBERIABANK
Segment Reporting Information
Interest and dividend income	1,215,668	906,521	707,676
Interest expense	208,381	104,937	64,068
Net interest income	1,007,287	801,584	643,608
Provision for credit losses	40,429	51,797	41,433
Other non-interest income (expense)	81,588	116,659	121,647
Allocated expenses (income)	(13,437)	(13,293)	(13,972)
Non-interest expense	660,804	575,865	480,898
Income before income tax expense	401,079	303,874	257,301
Income tax expense	32,436	156,407	79,565
Net income	368,643	147,467	177,736
Total loans, leases, and loans held for sale, net of unearned income	22,493,809	20,028,840	15,004,360
Total assets	30,645,000	27,672,906	21,319,267
Total deposits	23,754,512	21,462,776	17,402,742
Average assets	29,400,755	24,228,436	19,959,261
Operating Segments | IMC
Segment Reporting Information
Interest and dividend income	5,958	7,260	9,261
Interest expense	0	0	3,633
Net interest income	5,958	7,260	5,628
Provision for credit losses	(44)	(89)	88
Other non-interest income (expense)	(95)	(42)	4
Allocated expenses (income)	9,847	10,041	10,686
Non-interest expense	43,021	73,587	65,133
Income before income tax expense	(537)	(12,751)	13,173
Income tax expense	(52)	(5,771)	5,023
Net income	(485)	(6,980)	8,150
Total loans, leases, and loans held for sale, net of unearned income	133,740	184,257	217,652
Total assets	162,599	208,710	315,057
Total deposits	8,919	3,941	5,541
Average assets	153,717	229,364	335,913
Operating Segments | LTC
Segment Reporting Information
Interest and dividend income	3	2	2
Interest expense	0	0	0
Net interest income	3	2	2
Provision for credit losses	0	0	0
Other non-interest income (expense)	496	(12)	0
Allocated expenses (income)	3,590	3,252	3,286
Non-interest expense	19,073	16,954	17,433
Income before income tax expense	1,985	1,756	1,496
Income tax expense	(106)	(170)	605
Net income	2,091	1,926	891
Total loans, leases, and loans held for sale, net of unearned income	0	0	0
Total assets	25,416	22,513	24,866
Total deposits	0	0	0
Average assets	23,554	22,856	26,060
Mortgage income
Segment Reporting Information
Non-interest Income	46,424	63,570	83,853
Mortgage income | Operating Segments
Segment Reporting Information
Non-interest Income	46,424	63,570	83,853
Mortgage income | Operating Segments | IBERIABANK
Segment Reporting Information
Non-interest Income	0	0	405
Mortgage income | Operating Segments | IMC
Segment Reporting Information
Non-interest Income	46,424	63,570	83,448
Mortgage income | Operating Segments | LTC
Segment Reporting Information
Non-interest Income	0	0	0
Title revenue
Segment Reporting Information
Non-interest Income	24,149	21,972	22,213
Title revenue | Operating Segments
Segment Reporting Information
Non-interest Income	24,149	21,972	22,213
Title revenue | Operating Segments | IBERIABANK
Segment Reporting Information
Non-interest Income	0	0	0
Title revenue | Operating Segments | IMC
Segment Reporting Information
Non-interest Income	0	0	0
Title revenue | Operating Segments | LTC
Segment Reporting Information
Non-interest Income	$ 24,149	$ 21,972	$ 22,213

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Condensed Parent Company Only Financial Statements - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash in bank	$ 294,186	$ 319,156
Other assets	1,039,783	779,942
Total Assets	30,833,015	27,904,129	$ 21,659,190
Liabilities and Shareholders’ Equity
Liabilities	26,776,738	24,207,338
Shareholders’ equity	4,056,277	3,696,791	$ 2,939,694	$ 2,498,835
Total Liabilities and Shareholders’ Equity	30,833,015	27,904,129
IBERIABANK Corporation
Assets
Cash in bank	179,545	168,873
Investments in subsidiaries	4,008,802	3,661,808
Other assets	53,832	49,207
Total Assets	4,242,179	3,879,888
Liabilities and Shareholders’ Equity
Liabilities	185,902	183,097
Shareholders’ equity	4,056,277	3,696,791
Total Liabilities and Shareholders’ Equity	$ 4,242,179	$ 3,879,888

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Condensed Parent Company Only Financial Statements - Condensed Statements of Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating income
Other income	$ 31,075	$ 29,106	$ 32,697
Operating expenses
Interest expense	208,381	104,937	67,701
Salaries and employee benefits expense	414,741	379,527	331,686
Other expenses	27,064	26,281	25,107
Income (loss) before income tax benefit and increase in equity in undistributed earnings of subsidiaries	402,527	292,879	271,970
Income tax expense	32,278	150,466	85,193
Net Income	370,249	142,413	186,777
Less: Preferred stock dividends	(9,095)	(9,095)	(7,977)
Net Income Available to Common Shareholders	361,154	133,318	178,800
IBERIABANK Corporation
Operating income
Reimbursement of management expenses	83,262	76,177	65,104
Other income	245,213	146,796	829
Total operating income	328,475	222,973	65,933
Operating expenses
Interest expense	6,008	5,168	3,948
Salaries and employee benefits expense	55,436	55,013	45,623
Other expenses	28,963	32,965	19,566
Total operating expenses	90,407	93,146	69,137
Income (loss) before income tax benefit and increase in equity in undistributed earnings of subsidiaries	238,068	129,827	(3,204)
Income tax expense	799	3,123	530
Income (loss) before equity in undistributed earnings of subsidiaries	237,269	126,704	(3,734)
Equity in undistributed earnings of subsidiaries	132,980	15,709	190,511
Net Income	370,249	142,413	186,777
Less: Preferred stock dividends	9,095	9,095	7,977
Net Income Available to Common Shareholders	$ 361,154	$ 133,318	$ 178,800

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Condensed Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flow from Operating Activities
Net income	$ 370,249	$ 142,413	$ 186,777
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	(7,534)	(4,113)	10,633
Other operating activities, net	(204,998)	(30,991)	73,865
Net Cash Provided by Operating Activities	446,421	263,646	308,088
Cash Flow from Investing Activities
Purchases of premises and equipment, net of premises and equipment acquired	(13,730)	(37,763)	(12,840)
Other investing activities, net	343	636	25,950
Net Cash Used in Investing Activities	(1,125,806)	(1,908,581)	(1,424,397)
Cash Flow from Financing Activities
Cash dividends paid on common stock	(84,782)	(72,772)	(56,793)
Cash dividends paid on preferred stock	(9,095)	(9,095)	(7,028)
Payments to repurchase common stock	(148,855)	0	(11,666)
Net proceeds from issuance of common stock	0	485,151	279,242
Net proceeds from issuance of preferred stock	0	0	55,285
Net Cash Provided by Financing Activities	744,114	908,533	1,968,168
Net Increase (Decrease) In Cash and Cash Equivalents	64,729	(736,402)	851,859
Cash and Cash Equivalents at Beginning of Period	625,724	1,362,126	510,267
Cash and Cash Equivalents at End of Period	690,453	625,724	1,362,126
IBERIABANK Corporation
Cash Flow from Operating Activities
Net income	370,249	142,413	186,777
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	145	62	98
Net income of subsidiaries	(377,974)	(160,206)	(190,511)
Share-based compensation cost	20,278	16,436	14,523
Other operating activities, net	491	(4,256)	12,417
Net Cash Provided by Operating Activities	13,189	(5,551)	23,304
Cash Flow from Investing Activities
Cash paid in excess of cash received for acquisitions	(7)	(809,159)	0
Purchases of premises and equipment, net of premises and equipment acquired	(52)	(105)	0
Return of capital from (Capital contributed to) subsidiary	245,000	144,500	(6,000)
Other investing activities, net	(1,500)	0	(749)
Net Cash Used in Investing Activities	243,441	(664,764)	(6,749)
Cash Flow from Financing Activities
Cash dividends paid on common stock	(84,782)	(72,772)	(56,793)
Cash dividends paid on preferred stock	(9,095)	(9,095)	(7,028)
Net share-based compensation stock transactions	(3,226)	(832)	6,899
Payments to repurchase common stock	(148,855)	0	(11,666)
Net proceeds from issuance of common stock	0	485,151	279,242
Net proceeds from issuance of preferred stock	0	0	55,285
Other financing activities, net	0	(56)	0
Net Cash Provided by Financing Activities	(245,958)	402,396	265,939
Net Increase (Decrease) In Cash and Cash Equivalents	10,672	(267,919)	282,494
Cash and Cash Equivalents at Beginning of Period	168,873	436,792	154,298
Cash and Cash Equivalents at End of Period	$ 179,545	$ 168,873	$ 436,792

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Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (345,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (345,000)