Shareholders' Equity

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Shareholders' Equity

7. 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		ESOT			Treasury stock						Total Shareholders’ Equity
Balance December 31, 2013		2,614,506	$	523	$	14,024	$	12,302	$	(1,065	)	$	(2,024	)	$	(26	)	$	23,734
Net income		-		-		-		302		-			-			-			302
Purchase of treasury shares		-		-		-		-		-			(189	)		-			(189	)
Stock based compensation		-		-		21		-		-			159			-			180
Balance June 30, 2014		2,614,506	$	523	$	14,045	$	12,604	$	(1,065	)	$	(2,054	)	$	(26	)	$	24,027

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 June 30, 2014, the Company has purchased 329,760 shares and there remain 120,240 shares available to purchase under this program. There were 6,477 shares purchased by the Company during the six month period ended June 30, 2014 for total consideration of approximately $48,000.

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. This plan authorizes the issuance of up to 300,000 shares. 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 six months ended June 30, 2014 is approximately $180,000 of compensation expense related to the restrictive share awards, no compensation expense was recognized in the comparable period ended June 30, 2013.

On January 1, 2014, 41,250 shares of restricted stock vested of which 17,345 shares were withheld and repurchased by the Company for approximately $140,000 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.

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,
	2014		2013		2014		2013
	($000’s omitted except per share data)
Net income	$	447	$	504	$	302	$	681
Weighted average common shares outstanding (basic)		2,265		2,318		2,266		2,237
Incremental shares from assumed conversions of stock options		-		1		-		-
Weighted average common shares outstanding (diluted)		2,265		2,319		2,266		2,237
Basic
Net income per share	$	0.20	$	0.22	$	0.13	$	0.30
Diluted
Net income per share	$	0.20	$	0.22	$	0.13	$	0.30