6. Shareholders’ Equity


	Nine-month Period Ended September 30, 2019
			Accumulated
			Other				Capital in						Total
	Retained		Comprehensive				excess of				Treasury		shareholders’
	Earnings		Income		Common Stock		par value		ESOT		stock		equity

January 1, 2019	$	18,788	$	35	$	523	$	14,250	$	(561)	$	(1,522)	$	31,513

Purchase of treasury shares		—		—		—		—		—		(128)		(128)
Stock based compensation		—		—		—		14		—		44		58
Net Income		98		—		—		—		—		—		98

March 31, 2019	$	18,886	$	35	$	523	$	14,264	$	(561)	$	(1,606)	$	31,541

Dividends declared ($0.16 per share)		(413)		—		—		—		—		—		(413)
Purchase of treasury shares		—		—		—		—		—		(21)		(21)
Stock based compensation		—		—		—		34		—		61		95
Net Income		714		—		—		—		—		—		714

June 30, 2019	$	19,187	$	35	$	523	$	14,298	$	(561)	$	(1,566)	$	31,916

Dividends declared ($0.16 per share)		—		—		—		—		—		—		—
Purchase of treasury shares		—		—		—		—		—		(8)		(8)
Stock based compensation		—		—		—		28		—		58		86
Net Income		1,132		—		—		—		—		—		1,132

September 30, 2019	$	20,319	$	35	$	523	$	14,326	$	(561)	$	(1,516)	$	33,126


	Nine-month Period Ended September 30, 2018
			Accumulated
			Other				Capital in						Total
	Retained		Comprehensive				excess of				Treasury		shareholders’
	Earnings		Income		Common Stock		par value		ESOT		stock		equity
January 1, 2018	$	15,709	$	(32)	$	523	$	14,171	$	(662)	$	(1,544)	$	28,165

Purchase of treasury shares		—		—		—		—		—		(117)		(117)
Net Income		331		—		—		—		—		—		331

March 31, 2018	$	16,040	$	(32)	$	523	$	14,171	$	(662)	$	(1,661)	$	28,379

Dividends declared ($0.16 per share)		(416)		—		—		—		—		—		(416)
Purchase of treasury shares		—		—		—		—		—		(33)		(33)
Stock based compensation		(6)		6		—		21		—		64		85
Net Income		707		—		—		—		—		—		707

June 30, 2018	$	16,325	$	(26)	$	523	$	14,192	$	(662)	$	(1,630)	$	28,722

Dividends declared ($0.16 per share)		3		—		—		—		—		—		3
Purchase of treasury shares		—		—		—		—		—		—		—
Stock based compensation		—		—		—		34		—		64		98
Net Income		1,457		—		—		—		—		—		1,457

September 30, 2018	$	17,785	$	(26)	$	523	$	14,226	$	(662)	$	(1,566)	$	30,280

The Company’s Board of Directors authorized the purchase of up to 450,000 shares of its common stock in the open market or in privately negotiated transactions. As of September 30, 2019, the Company has purchased 360,255 shares and there remains 89,745 shares available to purchase under this program. There were 5,232 shares purchased by the Company during the nine month period ended September 30, 2019.

On January 1, 2019, 26,250 shares of restricted stock vested of which 9,729 shares were withheld by the Company for approximately $99,000 to satisfy statutory minimum withholding tax requirements for those participants who elected this option as permitted under the Company’s 2012 Long-Term Incentive Plan.

On May 25, 2018, the Company issued 78,750 shares of restricted stock to Executive Officers and certain key management of the Company under the Company’s 2012 Long-Term Incentive Plan. The restricted share awards have varying vesting periods between January 2019 and January 2021; however, these shares have voting rights and accrue dividends prior to vesting. The accrued dividends are paid upon vesting of the restricted shares. The aggregate amount of expense to the Company, measured based on grant date fair value is expected to be approximately $735,000 and will be recognized over the requisite service period.

The Company's director compensation policy provides that non-employee directors receive a portion of their annual retainer in the form of restricted stock under the Company’s 2012 Long-Term Incentive Plan. These shares vest quarterly over a twelve month service period, have voting rights and accrue dividends that are paid upon vesting. The aggregate amount of expense to the Company, measured based on the grant date fair value, will be recognized over the requisite service period. An aggregate of 4,288 restricted shares were issued on May 25, 2018 with a grant date fair value of $40,000. An aggregate of 7,836 restricted shares were issued on April 26, 2019 with a grant date fair value of $100,000.

On May 15, 2019 the Company announced that its Board of Directors declared a $0.16 per share cash dividend. The dividend was subsequently paid on July 15, 2019 to shareholders of record on June 28, 2019 and was approximately $413,000 in the aggregate. These dividends do not represent that the Company will pay dividends on a regular or scheduled basis. The amount is recorded in dividends payable and as a reduction to retained earnings on the accompanying consolidated balance sheet.

Earnings Per Share

Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period. The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding, are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested. Diluted earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period plus the number of shares of common stock that would be issued assuming all contingently issuable shares having a dilutive effect on the earnings per share that were outstanding for the period. Incremental shares from assumed conversions are calculated as the number of shares that would be issued, net of the number of shares that could be purchased in the marketplace with the cash received upon stock option exercise. The dilutive effect of unvested restrictive stock is determined using the treasury stock method.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	($000’s omitted except per share data)
Net Income	$	1,132	$	1,457	$	1,944	$	2,495
Weighted average common shares outstanding (basic)		2,327		2,295		2,325		2,259
Unvested restricted stock		58		82		58		82
Weighted average common shares outstanding (diluted)		2,385		2,377		2,383		2,341
Basic
Net income per share	$	0.49	$	0.63	$	0.84	$	1.10
Diluted
Net income per share	$	0.47	$	0.61	$	0.82	$	1.07