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Segments
 6 Months Ended
Jun. 30, 2014
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(1)
  
Mepco
  
Other(1)(2)
  
Elimination(3)
  
Total
 
 
 
(In thousands)
 
Total assets
 
  
  
  
  
 
June 30, 2014
 
$
2,142,496
  
$
82,334
  
$
297,632
  
$
(272,598
)
 
$
2,249,864
 
December 31, 2013
  
2,104,550
   
94,648
   
272,348
   
(261,603
)
  
2,209,943
 
 
                    
For the three months ended June 30,2014
                    
Interest income
 
$
18,511
  
$
1,846
  
$
16
  
$
(16
)
 
$
20,357
 
Net interest income
  
17,384
   
1,480
   
(326
)
  
-
   
18,538
 
Provision for loan losses
  
(1,838
)
  
(7
)
  
-
   
-
   
(1,845
)
Income (loss) before income tax
  
8,014
   
305
   
(397
)
  
(23
)
  
7,899
 
Net income (loss)
  
6,115
   
201
   
(136
)
  
(128
)
  
6,052
 
 
                    
2013
                    
Interest income
 
$
18,935
  
$
2,927
  
$
-
  
$
-
  
$
21,862
 
Net interest income
  
17,807
   
2,306
   
(590
)
  
-
   
19,523
 
Provision for loan losses
  
(2,093
)
  
(14
)
  
-
   
-
   
(2,107
)
Income (loss) before income tax
  
10,637
   
(2,973
)
  
(742
)
  
(23
)
  
6,899
 
Net income (loss)
  
57,442
   
(1,839
)
  
7,808
   
(23
)
  
63,388
 
 
                    
For the six months ended June 30,2014
                    
Interest income
 
$
36,709
  
$
3,931
  
$
16
  
$
(16
)
 
$
40,640
 
Net interest income
  
34,467
   
3,162
   
(613
)
  
-
   
37,016
 
Provision for loan losses
  
(1,395
)
  
(22
)
  
-
   
-
   
(1,417
)
Income (loss) before income tax
  
12,692
   
661
   
(802
)
  
(47
)
  
12,504
 
Net income (loss)
  
9,297
   
444
   
(399
)
  
(152
)
  
9,190
 
 
                    
2013
                    
Interest income
 
$
37,715
  
$
6,097
  
$
-
  
$
-
  
$
43,812
 
Net interest income
  
35,423
   
4,827
   
(1,171
)
  
-
   
39,079
 
Provision for loan losses
  
(2,780
)
  
(18
)
  
-
   
-
   
(2,798
)
Income (loss) before income tax
  
17,456
   
(2,150
)
  
(2,518
)
  
(47
)
  
12,741
 
Net income (loss)
  
64,506
   
(1,296
)
  
6,032
   
(47
)
  
69,195
 

(1) IB and Other (parent company) include $49.1 million and $8.5 million, respectively of income tax benefit related to the reversal of the substantially all of the valuation allowance on our net deferred tax assets in both the three and six month periods ending June 30, 2013 (see note #10).
(2) Includes amounts relating to our parent company and certain insignificant operations.
(3) Includes parent company's investment in subsidiaries and cash balances maintained at subsidiary.