Shareholders' Equity

6 Months Ended

Jun. 30, 2011

Shareholders' Equity

8.  Shareholders’ Equity   

	($000’s omitted except for share data)
	Common Stock						Accumulated
	Number		Capital in				Other	Total
	of shares		excess of	Retained		Treasury	Comprehensive	Shareholders’
	issued	Amount	par value	earnings	ESOP	stock	Loss	Equity
Balance December 31, 2010	2,614,506	$523	$13,491	$11,467	($1,367)	($2,724)	($78)	$21,312
Net income	-	-	-	1,134	-	-	-	1,134
Cash dividend	-	-	-	($336)	-	-	-	(336)
Balance June 30, 2011	2,614,506	$523	$13,491	$12,265	($1,367)	($2,724)	($78)	$22,110

In January of 2006, the Company’s Board of Directors authorized the purchase by the Company of up to 250,000 shares of its common stock in the open market or in privately negotiated transactions. On October 31, 2008, the Company announced that its Board of Directors authorized the purchase of an additional 200,000 shares of the Company’s common stock under the Company’s current purchase program. As of June 30, 2011, the Company has purchased 238,088 shares and there remain 211,912 shares available to purchase under this program. There were no shares purchased by the Company during the six month periods ended June 30, 2011 and 2010. 

As previously reported, on April 4, 2011, the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was paid on May 20, 2011 to shareholders of record on April 29, 2011 and was approximately $336,000 in the aggregate. This fourth consecutive annual dividend does not represent that the Company will pay dividends on a regular or scheduled basis. 

Earnings Per Share 

Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period. 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.

	Three Months Ended				Six Months Ended
	June 30,					June 30,
	2011		2010			2011		2010
	($000’s omitted except per share data)
Net income	$	716	$	778		$	1,134	$	1,401
Weighted average common shares
outstanding (basic)		1,982		1,961			1,982		1,961
Incremental shares from assumed
conversions of stock options		131		164			131		169
Weighted average common
shares outstanding (diluted)		2,113		2,125			2,113		2,130
Basic
Net income per share	$	0.36	$	0.40		$	0.57	$	0.71
Diluted
Net income per share	$	0.34	$	0.37		$	0.54	$	0.66