Shareholders' Equity

9 Months Ended

Sep. 30, 2021

Shareholders' Equity

Shareholders' Equity

7.           Shareholders’ Equity

	Nine-month Period Ended September 30, 2021
			Accumulated
			Other				Capital in						Total
	Retained		Comprehensive				excess of				Treasury		shareholders’
	Earnings		Income		Common Stock		par value		ESOT		stock		equity
December 31, 2020	$	21,803	$	(1,356)	$	523	$	14,481	$	(359)	$	(1,355)	$	33,737
Retirement benefits adjustment		—		15		—		—		—		—		15
Stock based compensation		—		—		—		11		—		20		31
Purchase of treasury shares		—		—		—		—		—		(81)		(81)
Net Income		541		—		—		—		—		—		541
March 31, 2021	$	22,344	$	(1,341)	$	523	$	14,492	$	(359)	$	(1,416)	$	34,243
Retirement benefits adjustment		—		16		—		—		—		—		16
Stock based compensation		—		—		—		5		—		20		25
Net Income		1,186		—		—		—		—		—		1,186
June 30, 2021	$	23,530	$	(1,325)	$	523	$	14,497	$	(359)	$	(1,396)	$	35,470
Retirement benefits adjustment		—		15		—		—		—		—		15
Stock based compensation		—		—		—		1		—		24		25
Net Income		3,238		—		—		—		—		—		3,238
September 30, 2021	$	26,768	$	(1,310)	$	523	$	14,498	$	(359)	$	(1,372)	$	38,748

	Nine-month Period Ended September 30, 2020
			Accumulated
			Other				Capital in						Total
	Retained		Comprehensive				excess of				Treasury		shareholders’
	Earnings		Income		Common Stock		par value		ESOT		stock		equity
December 31, 2019	$	20,484	$	98	$	523	$	14,358	$	(460)	$	(1,471)	$	33,532
Stock based compensation		—		—		—		33		—		52		85
Purchase of treasury shares		—		—		—		—		—		(100)		(100)
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
Stock based compensation		—		—		—		29		—		54		83
Net Loss		(1,782)		—		—		—		—		—		(1,782)
September 30, 2020	$	21,565	$	98	$	523	$	14,459	$	(460)	$	(1,417)	$	34,768

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 September 30, 2021, the Company has purchased 360,615 shares and there remains 89,385 shares available to purchase under this program. There were no shares and 360 shares purchased by the Company during the nine month period ended September 30, 2021 and 2020, respectively.

On January 1, 2021, 25,250 shares of restricted stock vested of which 9,920 shares were withheld by the Company for approximately $81,000 to satisfy statutory minimum withholding tax requirements for those participants who elected this option as permitted under the applicable equity plan.

The Company’s director compensation policy provides that 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. These shares vest quarterly over a twelve month service period, 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, will be recognized over the requisite service period. An aggregate of 13,160 restricted shares were issued on August 13, 2021 with a grant date fair value of $100,000.

Included in nine months ended September 30, 2021 and December 31, 2020 is approximately $75,000 and $336,000, respectively, of stock-based compensation expense related to the restrictive share awards.

		Weighted Average
		Grant Date Fair
	Shares	Value
Unvested at December 31, 2020	30,914	$	9.24
Granted	13,160		7.60
Vested	34,206		9.08
Unvested at September 30, 2021	9,868	$	7.60

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				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	($000’s omitted except per share data)
Net (Loss) Income	$	3,238	$	(1,782)	$	4,965	$	1,081
Weighted average common shares outstanding (basic)		2,410		2,363		2,404		2,358
Unvested restricted stock		10		34		10		34
Weighted average common shares outstanding (diluted)		2,420		2,397		2,414		2,392
Basic
Net (loss) income per share	$	1.34	$	(0.75)	$	2.07	$	0.46
Diluted
Net (loss) income per share	$	1.34	$	(0.75)	$	2.06	$	0.45