Note 24 - Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

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

24. PARENT COMPANY ONLY FINANCIAL INFORMATION

The following condensed statements of financial condition, as of December 31, 2015 and 2014, and condensed statements of income and comprehensive income and of cash flows for each of the two years in the period ended December 31, 2015, for Bear State Financial, Inc. should be read in conjunction with the consolidated financial statements and the notes herein.

BEAR STATE FINANCIAL, INC.        

(Parent Company Only)        

CONDENSED STATEMENTS OF FINANCIAL CONDITION        

DECEMBER 31, 2015 AND 2014        

(In thousands)        

ASSETS	2015		2014
Cash and cash equivalents (deposits in subsidiary Banks)	$	118	$	94
Office properties and equipment, net		668		871
Investment in Banks		237,418		184,792
Other assets		4,308		4,416
TOTAL	$	242,512	$	190,173
LIABILITIES AND STOCKHOLDERS’ EQUITY
Other borrowings	$	18,862	$	18,163
Accrued expenses and other liabilities		493		1,556
Stockholders’ equity		223,157		170,454
TOTAL	$	242,512	$	190,173

BEAR STATE FINANCIAL, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF INCOME AND

COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2015 AND 2014

(In thousands)

	2015			2014
INCOME:
Dividend from the Bank	$	12,100		$	26,500
Management fees		3,451			2,277
Total income		15,551			28,777
EXPENSES:
Interest expense		407			210
Salaries and employee benefits		2,383			4,250
Data processing		1,291			3,166
Other operating expenses		2,769			2,413
Total expenses		6,850			10,039
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF BANK SUBSIDIARIES		8,701			18,738
INCOME TAX BENEFIT		(1,174	)		(3,938	)
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF BANK SUBSIDIARIES		9,875			22,676
EQUITY IN UNDISTRIBUTED INCOME OF BANK SUBSIDIARIES		699			1,630
NET INCOME	$	10,574		$	24,306
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gains (losses) arising during the period		(290	)		1,434
Less: reclassification adjustments for realized gain included in net income		(20	)		(31	)
Other comprehensive income (loss), before tax effect		(310	)		1,403
Tax effect		119			(359	)
Other comprehensive income (loss)		(191	)		1,044
COMPREHENSIVE INCOME	$	10,383		$	25,350

BEAR STATE FINANCIAL, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2015 AND 2014

(In thousands)

	2015			2014
OPERATING ACTIVITIES:
Net income	$	10,574		$	24,306
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of Bank		(699	)		(1,630	)
Deferred tax benefit		(1,174	)		(1,414	)
Deferred tax valuation allowance		--			(913	)
Depreciation		118			71
Stock compensation expense		539			126
Changes in operating assets and liabilities:
Other assets		247			(2,872	)
Accrued expenses and other liabilities		87			2,005
Net cash provided by operating activities		9,692			19,679
INVESTING ACTIVITIES:
Purchases of office properties and equipment		(48	)		(942	)
Merger consideration paid		(10,100	)		(50,000	)
Investment in Bank		--			(11,001	)
Net cash used in investing activities		(10,148	)		(61,943	)
FINANCING ACTIVITIES:
Proceeds from other borrowings		1,850			18,163
Repayments of other borrowings		(1,151	)		--
Proceeds from private placement		--			20,000
Proceeds from exercise of warrants		--			3,590
Proceeds from exercise of stock options		37			24
Repurchase of common stock		(256	)		(5	)
Payment for fractional shares, stock dividend		--			(7	)
Net cash provided by financing activities		480			41,765
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		24			(499	)
CASH AND CASH EQUIVALENTS:
Beginning of period		94			593
End of period	$	118		$	94

BEAR STATE FINANCIAL, INC.

SELECTED QUARTERLY OPERATING RESULTS (UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

YEAR ENDED DECEMBER 31, 2015	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Interest income	$	19,468		$	13,749		$	13,523		$	14,106
Interest expense		1,744			1,529			1,563			1,528
Net interest income		17,724			12,220			11,960			12,578
Provision for loan losses		866			331			300			300
Net interest income after provision for loan losses		16,858			11,889			11,660			12,278
Net gain on sales and calls of investment securities		(68	)		--			--			88
Noninterest income		3,789			3,318			3,397			3,023
Noninterest expense		17,044			10,465			11,273			12,237
Income before income taxes		3,535			4,742			3,784			3,152
Income tax provision		972			1,529			1,253			885
Net income	$	2,563		$	3,213		$	2,531		$	2,267
Earnings per share:
Basic	$	0.07		$	0.10		$	0.08		$	0.07
Diluted	$	0.07		$	0.10		$	0.08		$	0.07
Selected Ratios (Annualized):
Net interest margin		4.14	%		3.74	%		3.71	%		3.85	%
Return on average assets		0.53			0.88			0.69			0.60
Return on average equity		4.60			7.23			5.78			5.25

YEAR ENDED DECEMBER 31, 2014	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Interest income	$	14,945		$	16,223		$	6,568		$	4,751
Interest expense		1,627			1,567			1,050			891
Net interest income		13,318			14,656			5,518			3,860
Provision for loan losses		758			600			230			--
Net interest income after provision for loan losses		12,560			14,056			5,288			3,860
Net gain on sales and calls of investment securities		1			30			--			--
Noninterest income		3,381			3,601			1,825			1,202
Noninterest expense		11,387			15,324			10,019			5,339
Income before income taxes		4,555			2,363			(2,906	)		(277	)
Income tax provision		(259	)		(20,312	)		--			--
Net income	$	4,814		$	22,675		$	(2,906	)	$	(277	)
Earnings per share(1):
Basic	$	0.14		$	0.68		$	(0.12	)	$	(0.01	)
Diluted	$	0.14		$	0.68		$	(0.12	)	$	(0.01	)
Selected Ratios (Annualized):
Net interest margin		3.91	%		4.44	%		3.33	%		3.08	%
Return on average assets		1.26			6.07			(1.55	)		(0.20	)
Return on average equity		11.54			62.24			(13.42	)		(1.54	)

(1) Basic and diluted weighted average shares outstanding are summarized below. The shares used in the calculation have been adjusted to give effect to the 11% common stock dividend paid in December 2014.

	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
YEAR ENDED DECEMBER 31, 2015
Basic weighted - average shares		37,962,801		33,358,376		33,375,753		33,371,946
Effect of dilutive securities		210,433		138,922		145,737		179,830
Diluted weighted - average shares		38,173,234		33,497,298		33,521,490		33,551,776

YEAR ENDED DECEMBER 31, 2014
Basic weighted - average shares	33,366,628	33,364,021	24,466,899	22,268,376
Effect of dilutive securities	141,602	68,465	--	--
Diluted weighted - average shares	33,508,230	33,432,486	24,466,899	22,268,376