Shareholders' Equity

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Shareholders' Equity

6. 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 at December 31, 2014		2,614,506	$	523	$	14,068	$	9,176		$	(964	)	$	(1,909	)	$	(14	)	$	20,880
Net income		-		-		-		3,392			-			-			-			3,392
Purchase of treasury shares		-		-		-		-			-			(114	)		-			(114	)
Dividend payable		-		-		-		(375	)		-			-			-			(375	)
Stock based compensation		-		-		23		-			-			157			-			180
Balance at June 30, 2015		2,614,506	$	523	$	14,091	$	12,193		$	(964	)	$	(1,866	)	$	(14	)	$	23,963

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, 2015, the Company has purchased 331,970 shares and there remain 118,030 shares available to purchase under this program. There were no shares purchased by the Company during the six month period ended June 30, 2015.

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, 2015 and 2014 is approximately $180,000, respectively, of compensation expense related to the restrictive share awards.

On January 1, 2015, 41,250 shares of restricted stock vested of which 17,435 shares were withheld and repurchased by the Company for approximately $114,000 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.

On May 29, 2015, the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was subsequently paid on July 15, 2015 to shareholders of record on June 30, 2015 and was approximately $375,000 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. 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 June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	($000’s omitted except per share data)
Net income	$	621	$	447	$	3,392	$	302
Weighted average common shares outstanding (basic)		2,179		2,141		2,179		2,142
Incremental shares from assumed conversions of stock options		-		-		-		-
Unvested restricted stock		82		124		82		124
Weighted average common Shares outstanding (diluted)		2,261		2,265		2,261		2,266
Basic
Net income per share	$	0.28	$	0.21	$	1.56	$	0.14
Diluted
Net income per share	$	0.27	$	0.21	$	1.50	$	0.14