Shareholders' Equity

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Shareholders' Equity

6. Shareholders’ Equity

	Common Stock				($000's omitted except for share data)
															Accumulated
	Number				Capital in										Other		Total
	of shares				excess of		Retained					Treasury			Comprehensive		shareholders'
	issued		Amount		par value		earnings		ESOT			stock			Loss		equity
Balance at December 31, 2018		2,614,506	$	523	$	14,250	$	18,788	$	(561	)	$	(1,522	)	$	35	$	31,513
Net income		-		-		-		98		-			-			-		98
Purchase of treasury shares		-		-		-		-		-			(128	)				(128	)
Stock based compensation      net of tax benefit		-		-		14		-		-			44			-		58
Balance at March 31, 2019		2,614,506	$	523	$	14,264	$	18,886	$	(561	)	$	(1,606	)	$	35	$	31,541

	Common Stock				($000's omitted except for share data)
															Accumulated
	Number				Capital in										Other			Total
	of shares				excess of		Retained					Treasury			Comprehensive			shareholders'
	issued		Amount		par value		earnings		ESOT			stock			Loss			equity
Balance at December 31, 2017		2,614,506	$	523	$	14,171	$	15,709	$	(662	)	$	(1,544	)	$	(32	)	$	28,165
Net income		-		-		-		331		-			-			-			331
Purchase of treasury shares		-		-		-		-		-			(117	)		-			(117	)
Balance at March 31, 2018		2,614,506	$	523	$	14,171	$	16,040	$	(662	)	$	(1,661	)	$	(32	)	$	28,379

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 March 31, 2019, the Company has purchased 357,423 shares and there remains 92,577 shares available to purchase under this program. There were 2,400 shares purchased by the Company during the three month period ended March 31, 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.

On May 25, 2018, the Company revised its director compensation policy pursuant to which 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. An aggregate of 4,288 restricted shares were issued that vest quarterly over a twelve month service period. These shares have voting rights and accrue dividends that are paid upon vesting. The aggregate amount of expense for awards granted in 2018 was $40,000 and was recognized over the service period.

On April 26, 2019, the Company increased its director compensation policy pursuant to which non-employee directors receive a portion of their annual retainer in the form of restricted stock from $10,000 to $25,000 under the Company’s 2012 Long-Term Incentive Plan. An aggregate of 7,836 restricted shares were issued that vest quarterly over a twelve month service period. These shares 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 is expected to be approximately $100,000 and will be recognized over the requisite service period.

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
	March 31,
	2019		2018
	($000's omitted except per share data)
Net Income	$	98	$	331
Weighted average common shares outstanding (basic)		2,328		2,297
Unvested restricted stock		53		-
Weighted average common shares outstanding (diluted)		2,381		2,297
Basic
Net income per share	$	0.04	$	0.14
Diluted
Net income per share	$	0.04	$	0.14