Shareholders' Equity

9 Months Ended

Sep. 30, 2022

Shareholders' Equity

Shareholders' Equity

7.           Shareholders’ Equity

	Nine-month Period Ended September 30, 2022
			Accumulated
			Other				Capital in						Total
	Retained		Comprehensive				excess of				Treasury		shareholders’
	Earnings		Income		Common Stock		par value		ESOT		stock		equity
December 31, 2021	$	25,858	$	(3,908)	$	523	$	14,500	$	(258)	$	(1,349)	$	35,366
Retirement benefits adjustment		—		22		—		—		—		—		22
Stock based compensation		—		—		—		2		—		23		25
Net Income		325		—		—		—		—		—		325
March 31, 2022	$	26,183	$	(3,886)	$	523	$	14,502	$	(258)	$	(1,326)	$	35,738
Retirement benefits adjustment		—		22		—		—		—		—		22
Stock based compensation		—		—		—		7		—		35		42
Net Loss		(810)		—		—		—		—		—		(810)
June 30, 2022	$	25,373	$	(3,864)	$	523	$	14,509	$	(258)	$	(1,291)	$	34,992
Retirement benefits adjustment		—		22		—		—		—		—		22
Stock based compensation		—		—		—		26		—		33		59
Net Loss		(316)		—		—		—		—		—		(316)
September 30, 2022	$	25,057	$	(3,842)	$	523	$	14,535	$	(258)	$	(1,258)	$	34,757

	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

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, 2022, the Company has purchased 360,615 shares and there remain 89,385 shares available to purchase under this program. There were no shares purchased by the Company during the nine month periods ended September 30, 2022 and 2021, 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. 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 18,375 restricted shares were issued during the nine month period ended September 30, 2022 with an approximate grant date fair value of $203,000.

Included in nine months ended September 30, 2022 and September 30, 2021 is approximately $126,000 and $75,000, respectively, of stock-based compensation expense related to the restrictive share awards.

		Weighted Average
		Grant Date Fair
	Shares	Value
Unvested at December 31, 2021	6,576	$	7.60
Granted	18,375	$	11.03
Vested	9,652	$	8.69
Unvested at September 30, 2022	15,299	$	11.03

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. The dilutive effect of unvested restrictive stock is determined using the treasury stock method. However, if the assumed common shares are anti-dilutive, basic and diluted earnings per share are the same. As a result of the net losses generated in 2022, all outstanding common shares would be antidilutive. As of the three and nine month period ended September 30, 2022 and 2021 there were 15,299 and 9,868 common shares, respectively, that could potentially dilute basic earnings per share in the future. 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,
	2022		2021		2022		2021
	($000’s omitted except per share data)
Net (loss)/income	$	(316)	$	3,238	$	(801)	$	4,965
Weighted average common shares outstanding (basic)		2,427		2,410		2,424		2,404
Unvested restricted stock		—		10		—		10
Weighted average common shares outstanding (diluted)		2,427		2,420		2,424		2,414
Basic
Net (loss)/income per share	$	(0.13)	$	1.34	$	(0.33)	$	2.07
Diluted
Net (loss)/income per share	$	(0.13)	$	1.34	$	(0.33)	$	2.06