Note 9 - Office Properties and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

9.       OFFICE PROPERTIES AND EQUIPMENT

Office properties and equipment consisted of the following at December 31 (in thousands):

	2013			2012
Land and land improvements	$	5,340		$	5,838
Buildings and improvements		19,358			21,279
Furniture and equipment		5,770			5,953
Automobiles		210			213
Total		30,678			33,283
Accumulated depreciation		(11,909	)		(12,649	)
Office properties and equipment—net	$	18,769		$	20,634

Depreciation expense for each of the years ended December 31, 2013 and 2012 was approximately $1.4 million.

At December 31, 2013 and 2012, office properties and equipment included two properties totaling $605,000 and $565,000, as of the respective dates, held for sale carried at the lower of carrying amount or fair value less cost to sell. No impairment loss was recognized on these properties for the years ended December 31, 2013 or 2012.

During the year ended December 31, 2013, the Bank sold two branch locations and closed a third location. See Note 22 for further information on branch sales. During the year ended December 31, 2012, the Bank closed three branch locations resulting in a net gain on sale of approximately $147,000. One location with a net book value of approximately $113,000 was sold for $237,500 resulting in a gain on sale of approximately $123,000, net of closing costs. The second branch was a leased facility with no remaining book value at the time of the sale. The leasehold improvements were sold for $23,500 resulting in a gain on sale of $23,500 and the lease was transferred to the purchaser. The location of the third branch closing was converted to the Bank's loan processing center in Northwest Arkansas. Customers from closed branch locations are being serviced by other Bank branch locations in the area. As a result, these branch closings are not reported as discontinued operations.

Pursuant to the terms of noncancelable lease agreements in effect at December 31, 2013, pertaining to banking premises and equipment, future minimum rent commitments (in thousands) under various operating leases are as follows:

Years Ending December 31	Amount
2014	$	324
2015		339
2016		289
2017		291
2018		250
2019 and thereafter		3,481
Total	$	4,974

The leases contain options to extend for periods from five to twenty-five years. The cost of rentals in the renewal periods are not included above except for one lease where there is a loan outstanding between Bank and the lessor. Total future minimum lease payments for the initial term of this lease and applicable renewal periods reflected in the table total approximately $4.3 million. Total rent expense for the years ended December 31, 2013 and 2012 amounted to $287,000 and $298,000, respectively.

The Bank also leases certain of its banking premises to third parties under operating lease agreements. The following is a schedule by years of minimum future rentals receivable on noncancelable operating leases (in thousands):

Years Ending December 31	Amount
2014	$	126
2015		115
2016		108
2017		98
2018		65
2019 and thereafter		25
Total	$	537

The leases contain options to extend for periods up to ten years. Such rentals are not included above. Total rental income for the years ended December 31, 2013 and 2012 amounted to $109,000 and $66,000, respectively.