Shareholders' Equity

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Shareholders' Equity

9. Shareholders’ Equity

	($000’s omitted except for share data)
	Common stock															Accumulated Other Comprehensive Loss
	Number of shares issued		Amount		Capital in excess of par value		Retained earnings			ESOP			Treasury Stock						Total Shareholders’ Equity
Balance December 31, 2012		2,614,506	$	523	$	13,987	$	11,771		$	(1,165	)	$	(1,765	)	$	(85	)	$	23,266
Net income		-		-		-		1,039			-			-			-			1,039
Purchase of treasury shares		-		-		-		-			-			(371	)		-			(371	)
Cash dividend		-		-		-		(406	)		-			-			-			(406	)
Stock based compensation		-		-		-		-			-			165			-			165
Exercise of stock options, net of tax benefit		-		-		21		(38	)		-			109			-			92
Balance September 30, 2013		2,614,506	$	523	$	14,008	$	12,366		$	(1,165	)	$	(1,862	)	$	(85	)	$	23,785

In January 2006, the Board of Directors authorized the purchase of up to 250,000 shares of the Company’s outstanding 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 September 30, 2013, the Company has purchased 296,131 shares and there remain 153,869 shares available to purchase under this program. There were 44,306 shares purchased by the Company during the nine month period ended September 30, 2013. Subsequent to quarter end there were 14,785 shares purchased by the Company through October 31, 2013 for approximately $130,000.

In the first quarter of 2013 certain option holders elected to exercise 15,000 options. These shares were issued out of treasury stock for net proceeds of approximately $70,000. Such transactions were properly reported on Form 4 with the Securities and Exchange Commission. A tax benefit to the Company of approximately $21,000 associated with these transactions reduced taxes payable and was credited directly to capital in excess of par value.

On April 18, 2013, the Company issued 165,000 shares of restricted stock to Executive Officers of the Company under the Company’s 2012 Long-Term Incentive Plan that was approved by the shareholders at the 2012 Annual Meeting of Shareholders. The restricted share awards vest over four year periods between January 2014 and January 2017; however, have voting rights and accrue dividends prior to vesting. The aggregate amount of expense to the Company, measured based on grant date fair value is expected to be $1,336,500 and will be recognized over the four year requisite service period. Included in the three and nine months ended September 30, 2013 is $90,000 and $165,000, respectively, of compensation expense related to the restrictive share awards.

On May 28, 2013 the Company announced that its Board of Directors declared a $0.16 per share cash dividend. The dividend was subsequently paid on July 15, 2013 to shareholders of record on June 24, 2013 and was approximately $406,000 in the aggregate. These dividends do 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					Nine Months Ended
	September 30,					September 30,
	2013		2012			2013		2012
	($000’s omitted except per share data)
Income from continuing operations	$	358	$	306		$	1,039	$	1,346
Loss from discontinued operations		-		(450	)		-		(1,121	)
Net income (loss)	$	358	$	(144	)	$	1,039	$	225
Weighted average common shares outstanding (basic)		2,305		2,146			2,259		2,125
Incremental shares from assumed conversions of stock options		-		6			1		19
Weighted average common shares outstanding (diluted)		2,305		2,152			2,260		2,144
Basic
Income per share from continuing operations	$	0.16	$	0.14		$	0.46	$	0.63
Loss per share from discontinued operations		-		(0.21	)		-		(0.53	)
Total net income (loss) per share	$	0.16	$	(0.07	)	$	0.46	$	0.10
Diluted
Income per share from continuing operations	$	0.16	$	0.14		$	0.46	$	0.63
Loss per share from discontinued operations		-		(0.21	)		-		(0.52	)
Total net income (loss) per share	$	0.16	$	(0.07	)	$	0.46	$	0.11