6. Shareholders’ Equity


	Six-month Period Ended June 30, 2020
			Accumulated
			Other				Capital in						Total
	Retained		Comprehensive				excess of				Treasury		shareholders’
	Earnings		Income		Common Stock		par value		ESOT		stock		equity

January 1, 2020	$	20,484	$	98	$	523	$	14,358	$	(460)	$	(1,471)	$	33,532

Purchase of treasury shares		—		—		—		—		—		(100)		(100)
Stock based compensation		—		—		—		33		—		52		85
Net Income		1,898		—		—		—		—		—		1,898

March 31, 2020	$	22,382	$	98	$	523	$	14,391	$	(460)	$	(1,519)	$	35,415

Stock based compensation		—		—		—		39		—		48		87
Net Income		965		—		—		—		—		—		965

June 30, 2020	$	23,347	$	98	$	523	$	14,430	$	(460)	$	(1,471)	$	36,467


	Six-month Period Ended June 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

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 June 30, 2020, the Company has purchased 360,615 shares and there remains 89,385 shares available to purchase under this program. There were 360 and 4,502 shares purchased by the Company during the six month period ended June 30, 2020 and 2019, respectively.

The Company’s 2012 Long-Term Incentive Plan provides for the granting of stock awards, including restricted stock, stock options and stock appreciation rights, to employees and non-employees, including directors of the Company. Compensation expense is amortized over the related service period, which is normally three years. Shares of unvested restricted stock are generally forfeited if a recipient leaves the Company before the vesting date. Shares that are forfeited become available for future awards.

The following is a summary of restricted stock activity for the six months ended June 30, 2020. Of the shares that vested, the Company withheld 9,543 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.


		Shares
Restricted Share Activity:
Unvested at December 31, 2019		54,416
Granted		—
Forfeited		—
Vested		29,166
Unvested at June 30, 2020		25,250

Earnings Per Share

Basic earnings per share is computed by dividing net earnings by the weighted average number of common 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 common 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				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	($000’s omitted except per share data)
Net Income	$	965	$	714	$	2,863	$	812
Weighted average common shares outstanding (basic)		2,364		2,324		2,364		2,322
Unvested restricted stock		25		60		25		60
Weighted average common shares outstanding (diluted)		2,389		2,384		2,389		2,382
Basic
Net income per share	$	0.41	$	0.31	$	1.21	$	0.35
Diluted
Net income per share	$	0.40	$	0.30	$	1.20	$	0.34