Note 23 - Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

23.      PARENT COMPANY ONLY FINANCIAL INFORMATION

The following condensed statements of financial condition, as of December 31, 2012 and 2011, and condensed statements of operations and comprehensive income  and of cash flows for each of the two years in the period ended December 31, 2012, for First Federal Bancshares of Arkansas, Inc. should be read in conjunction with the consolidated financial statements and the notes herein.

FIRST FEDERAL BANCSHARES OF ARKANSAS, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF FINANCIAL CONDITION

DECEMBER 31, 2012 AND 2011

(In thousands)

ASSETS	2012		2011
Cash and cash equivalents (deposits in Bank)	$	1,494	$	2,773
Investment in Bank		68,197		65,901
Other assets		--		221
TOTAL	$	69,691	$	68,895
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accrued expenses and other liabilities	$	31	$	2
Stockholders’ equity		69,660		68,893
TOTAL	$	69,691	$	68,895

FIRST FEDERAL BANCSHARES OF ARKANSAS, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2012 AND 2011

(In thousands)

	2012			2011
INCOME:
Dividends from the Bank	$	--		$	--
Interest income—loan to the Bank		--			--
Total income		--			--
EXPENSES:
Management fees		120			80
Other operating expenses		409			515
Total expenses		529			595
LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT AND EQUITY IN UNDISTRIBUTED INCOME (LOSS) OF BANK SUBSIDIARY		(529	)		(595	)
INCOME TAX (EXPENSE) BENEFIT		--			(138	)
LOSS BEFORE EQUITY IN UNDISTRIBUTED INCOME (LOSS) OF BANK SUBSIDIARY		(529	)		(733	)
EQUITY IN UNDISTRIBUTED INCOME (LOSS) OF BANK SUBSIDIARY		1,284			(18,301	)
NET INCOME (LOSS)	$	755		$	(19,034	)
OTHER COMPREHENSIVE INCOME (LOSS) OF SUBSIDIARY		(135	)		3,218
COMPREHENSIVE INCOME (LOSS)	$	620		$	(15,816	)

FIRST FEDERAL BANCSHARES OF ARKANSAS, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2012 AND 2011

(In thousands)

	2012			2011
OPERATING ACTIVITIES:
Net income (loss)	$	755		$	(19,034	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in undistributed net (income) loss of Bank		(1,284	)		18,301
Stock compensation expense		147			68
Changes in operating assets and liabilities:
Other assets		221			303
Accrued expenses and other liabilities		29			(139	)
Net cash used in operating activities		(132	)		(501	)
INVESTING ACTIVITIES—
Investment in Bank		(1,147	)		(44,843	)
Loan to Bank, net of repayments		--			428
Net cash used in investing activities		(1,147	)		(44,415	)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock		--			47,592
Net cash provided by financing activities		--			47,592
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(1,279	)		2,676
CASH AND CASH EQUIVALENTS:
Beginning of period		2,773			97
End of period	$	1,494		$	2,773

YEAR ENDED DECEMBER 31, 2012	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Interest income	$	4,771		$	4,840		$	4,977		$	5,211
Interest expense		972			1,069			1,127			1,254
Net interest income		3,799			3,771			3,850			3,957
Provision for loan losses		--			--			6			16
Net interest income after provision for loan losses		3,799			3,771			3,844			3,941
Net gain on sales and calls of investment securities		--			--			542			--
Noninterest income		1,446			1,449			1,464			1,686
Noninterest expense		5,744			4,867			5,141			5,435
Income (loss) before income taxes		(499	)		353			709			192
Income tax provision (benefit)		--			--			--			--
Net income (loss) available to common stockholders	$	(499	)	$	353		$	709		$	192
Earnings (loss) per share(1):
Basic	$	(0.03	)	$	0.02		$	0.04		$	0.01
Diluted	$	(0.03	)	$	0.02		$	0.03		$	0.01
Selected Ratios (Annualized):
Net interest margin		3.13	%		3.04	%		3.09	%		3.11	%
Return on average assets		(0.37	)		0.26			0.51			0.13
Return on average equity		(2.84	)		2.02			4.07			1.11

YEAR ENDED DECEMBER 31, 2011	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Interest income	$	5,133		$	5,721		$	5,886		$	6,332
Interest expense		1,483			1,646			1,734			1,819
Net interest income		3,650			4,075			4,152			4,513
Provision for loan losses		47			21			631			160
Net interest income after provision for loan losses		3,603			4,054			3,521			4,353
Net loss on sales and calls of investment securities		--			--			(439	)		--
Noninterest income		1,714			1,742			1,696			1,581
Noninterest expense		18,587			7,829			6,999			7,444
Loss before income taxes		(13,270	)		(2,033	)		(2,221	)		(1,510	)
Income tax provision (benefit)		--			--			--			--
Net loss		(13,270	)		(2,033	)		(2,221	)		(1,510	)
Preferred stock dividends, accretion of discount and gain on redemption		--			--			(10,724	)		224
Net income (loss) available to common stockholders	$	(13,270	)	$	(2,033	)	$	8,503		$	(1,734	)
Earnings (loss) per share(1):
Basic	$	(0.69	)	$	(0.11	)	$	0.77		$	(1.79	)
Diluted	$	(0.69	)	$	(0.11	)	$	0.73		$	(1.79	)
Selected Ratios (Annualized):
Net interest margin		2.78	%		3.00	%		3.14	%		3.55	%
Return on average assets		(8.98	)		(1.34	)		(1.47	)		(1.02	)
Return on average equity		(64.96	)		(9.72	)		(14.40	)		(16.70	)

(1) Basic and diluted weighted average shares outstanding are summarized below.

	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
YEAR ENDED DECEMBER 31, 2012
Basic weighted - average shares		19,302,603		19,302,603		19,302,603		19,302,603
Effect of dilutive securities		--		1,375,467		1,250,118		997,401
Diluted weighted - average shares		19,302,603		20,678,070		20,552,721		20,300,004
YEAR ENDED DECEMBER 31, 2011
Basic weighted - average shares		19,302,603		19,302,603		11,034,208		969,357
Effect of dilutive securities		--		--		567,949		--
Diluted weighted - average shares		19,302,603		19,302,603		11,602,157		969,357