Note 6 - Property and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment Disclosure [Text Block]

Note 6. Property and Equipment

The major components of property and equipment at December 31, 2012 and 2011 were as follows:

(Dollars In Thousands)	2012		2011
Land	$	3,957	$	3,957
Buildings and improvements		3,698		3,694
Leasehold improvements		2,390		2,388
Furniture and equipment		2,271		1,985
Software		449		348
Construction in process		279		69
Property and equipment, total		13,044		12,441
Less accumulated depreciation and amortization		3,290		2,859
Property and equipment, net	$	9,754	$	9,582

Depreciation and amortization expense was $508 thousand and $538 thousand for the years ended December 31, 2012 and 2011, respectively.

Leases

The Company currently leases its main office under a non-cancelable lease agreement. The lease expires December 15, 2015 and provides an option to extend the lease for two additional five-year periods. Terms of the agreement provide for an annual rental increase based on a published inflation index, not to exceed three percent over the rent for the immediately preceding lease year. Minimum annual payments until expiration at December 15, 2015 are $161,040. The Company currently leases a branch location under a non-cancelable lease agreement. Terms of the agreement provide for an annual rental increase based on a published inflation index, not to exceed three percent over the rent for the immediately preceding lease year. The lease expires on July 31, 2016 and provides an option to extend the lease for two additional five-year periods. Minimum annual payments until expiration at July 31, 2016 are $96,000. The Company currently leases another branch location along with additional office space under noncancelable lease agreements. Terms of the agreements provide for a rental increase of ten percent upon renewal of the leases. The leases expire on April 30, 2013. On January 30, 2013, the Company entered into an agreement to extend the leases through September 30, 2013. After that the Company has the option to extend the leases on a monthly basis until they vacate the premises and move into the new branch currently under construction. Minimum payments until expiration at September 30, 2013 are $23,687.

The current minimum annual lease payments under non-cancelable leases in effect at December 31, 2012 were as follows:

(Dollars In Thousands)	2012
2013	$	281
2014		257
2015		257
2016		56
2017		—
Thereafter		—
Total	$	851

Rent expense for the years ended December 31, 2012 and 2011 was $315 thousand and $333 thousand, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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