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Note 11 - Subsequent Events
3 Months Ended
Mar. 31, 2013
Subsequent Events [Text Block]
11.      SUBSEQUENT EVENTS

On April 1, 2013, the Bank entered into a definitive purchase and assumption agreement with The First National Bank in Green Forest (“FNBGF”) of Green Forest, Arkansas to sell all deposits and selected assets associated with the Bank’s branch office located in Berryville, Arkansas. In addition, as part of the agreement, FNBGF will also purchase certain loans with a carrying value of $3.2 million, interest bearing deposits of $20.9 million and noninterest bearing deposits of approximately $900,000 at March 31, 2013. The transaction is pending regulatory approval and, if approval is received, is expected to close in June 2013. The transaction is not expected to result in any material gain or loss.

On April 19, 2013, the Board of Directors approved the sale of certain classified loans with a total net book value of $11.3 million for aggregate proceeds of $9.3 million.  The sale closed in April 2013, resulting in charge-offs to the allowance for loan and lease losses of $2.0 million in the second quarter of 2013. No additional provision for loan losses was required since all loans were adequately reserved at quarter end. The Bank’s classified assets ratio (“CAR”), defined as the ratio of classified assets to Tier 1 capital plus the ALLL, at March 31, 2013 was 55.8%.  The CAR at March 31, 2013, considering the effect of this sale, would have been 42.9%.