Mortgage Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Mortgage Segment Reporting

MORTGAGE SEGMENT REPORTING

Reportable segments include community banking and retail mortgage banking services. These segments were determined based on the products and services provided or the type of customers served and is consistent with the information that is used by Heartland's key decision makers to make operating decisions and to assess Heartland's performance. Community banking involves making loans to and generating deposits from individuals and businesses in the markets where Heartland has banks. Retail mortgage banking involves the origination of residential loans and subsequent sale of those loans to investors. The mortgage banking segment is a strategic business unit that offers different products and services. It is managed separately because the segment appeals to different markets and, accordingly, requires different technology and marketing strategies. The segment's most significant revenue and expense is non-interest income and non-interest expense, respectively. Heartland does not have other reportable operating segments. The accounting policies of the mortgage banking segment are the same as those described in the summary of significant accounting policies. All intersegment sales prices are market based.

The following table presents the financial information from Heartland's operating segments for December 31, 2012, and December 31, 2011, in thousands. There were no results presented for the period ended December 31, 2010, as the mortgage segment was first established late in the fourth quarter of 2010 and results of operations for the mortgage segment were not deemed to be material for that period.

	Community and Other Banking		Mortgage Banking		Total
December 31, 2012
Net Interest Income	$	147,903	$	2,253	$	150,156
Provision for loan losses	8,202		—		8,202
Total noninterest income	50,947		57,715		108,662
Total noninterest expense	144,146		39,235		183,381
Income before income taxes	$	46,502	$	20,733	$	67,235
December 31, 2011
Net Interest Income	$	145,098	$	296	$	145,394
Provision for loan losses	29,365		—		29,365
Total noninterest income	44,757		14,820		59,577
Total noninterest expense	123,660		13,636		137,296
Income before income taxes	$	36,830	$	1,480	$	38,310
Segment Assets
December 31, 2012	$	4,868,618	$	121,935	$	4,990,553
December 31, 2011	4,237,922		67,136		4,305,058
Average Loans
December 31, 2012	$	2,605,151	$	91,301	$	2,696,452
December 31, 2011	2,394,087		24,777		2,418,864