Shareholders' Equity

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Shareholders' Equity

9. 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, 2011		2,614,506	$	523	$	13,774	$	12,490		$	( 1,266	)	$	( 2,210	)		$	( 67	)	$	23,244
Net income		-		-		-		349			-			-				-			349
Dividends payable		-		-		-		(358	)		-			-				-			(358	)
Purchase of treasury shares		-		-		-		-			-			(22	)			-			(22	)
Exercise of stock options, net of income tax benefit		-		-		152		(323	)		-			555				-			384
Balance June 30, 2012		2,614,506	$	523	$	13,926	$	12,158		$	( 1,266	)	$	( 1,677	)		$	( 67	)	$	23,597

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, 2012, the Company has purchased 240,853 shares and there remain 209,147 shares available to purchase under this program. There were 2,765 and zero shares purchased by the Company during the six month periods ended June 30, 2012 and 2011.

In the second quarter of 2012 certain option holders, including the independent directors, Chief Executive Officer and the Chief Operating Officer, elected to exercise 71,000 options, of which 2,500 were bought back by the Company resulting in 68,500 net shares issued out of treasury stock for net proceeds of approximately $215,000. Such transactions were properly reported on Form 4 with the Securities and Exchange Commission. A tax benefit to the Company of approximately $152,000 associated with these transactions reduced taxes payable and was credited directly to capital in excess of par value. Also in the first quarter of 2012, one option holder elected to exercise 9,000 options, resulting in 9,000 shares issued out of treasury stock for proceeds of approximately $18,000.

On May 14, 2012 the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was subsequently paid on July 2, 2012 to shareholders of record on June 1, 2012 and was approximately $358,000 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 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. 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,
	2012			2011			2012			2011
	($000’s omitted except per share data)
Income from continuing operations	$	622		$	729		$	777		$	1,211
Loss from discontinued operations		(342	)		(13	)		(428	)		(77	)
Net income	$	280		$	716		$	349		$	1,134
Weighted average common shares outstanding (basic)		2,151			1,982			2,114			1,982
Incremental shares from assumed conversions of stock options		7			131			25			131
Weighted average common shares outstanding (diluted)		2,158			2,113			2,139			2,113
Basic
Income per share from continuing operations	$	0.29		$	0.37		$	0.37		$	0.61
Loss per share from discontinued operations		(0.16	)		(0.01	)		(0.20	)		(0.04	)
Total net income per share	$	0.13		$	0.36		$	0.17		$	0.57
Diluted
Income per share from continuing operations	$	0.29		$	0.35		$	0.36		$	0.57
Loss per share from discontinued operations		(0.16	)		(0.01	)		(0.20	)		(0.04	)
Total net income per share	$	0.13		$	0.34		$	0.16		$	0.53