Segments

3 Months Ended

Mar. 31, 2013

Segments [Abstract]

Segments

5.  Segments

Our reportable segments are based upon legal entities.  We currently have two reportable segments:  Independent Bank ("IB" or "Bank") and Mepco.  These business segments are also differentiated based on the products and services provided.  We evaluate performance based principally on net income (loss) of the respective reportable segments.

In the normal course of business, our IB segment provides funding to our Mepco segment through an intercompany line of credit priced at the prime rate of interest as published in the Wall Street Journal. Our IB segment also provides certain administrative services to our Mepco segment which are reimbursed at an agreed upon rate. These intercompany transactions are eliminated upon consolidation. The only other material intersegment balances and transactions are investments in subsidiaries at the parent entities and cash balances on deposit at our IB segment.

A summary of selected financial information for our reportable segments follows:

	IB			Mepco			Other(1)			Elimination			(2)Total
As of March 31, 2013	(In thousands)
Total assets	$	1,978,620		$	124,104		$	202,914		$	(200,291	)	$	2,105,347
For the three months ended March 31, 2013
Interest income		18,780			3,170			-			-			21,950
Net interest income		17,616			2,521			(581	)		-			19,556
Provision for loan losses		(687	)		(4	)		-			-			(691)
Income (loss) before income tax		6,819			823			(1,776	)		(24	)		5,842
Net income (loss)		7,064			543			(1,776	)		(24	)		5,807

As of December 31, 2012
Total assets	$	1,885,807	$	135,447	$	192,343		$	(189,730	)	$	2,023,867
For the three months ended March 31, 2012
Interest income		21,845		3,851		-			-			25,696
Net interest income		19,939		2,882		(721	)		-			22,100
Provision for loan losses		5,103		28		-			-			5,131
Income (loss) before income tax		3,013		1,556		(1,041	)		(24	)		3,504
Net income (loss)		3,542		1,027		(1,041	)		(24	)		3,504

(1)Includes amounts relating to our parent company and certain insignificant operations.

(2)Includes parent company's investment in subsidiaries and cash balances maintained at subsidiary.