Shareholders' Equity

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Shareholders' Equity

6. Shareholders’ Equity

					($000’s omitted except for share data)
	Common Stock
	Number of shares  issued		Amount		Capital in  excess of  par value		Retained  earnings		ESOT			Treasury  stock			Accumulated  Other  Comprehensive  Loss			Total  shareholders’ equity
Balance at December 31, 2016		2,614,506	$	523	$	14,160	$	14,768	$	(763	)	$	(1,551	)	$	(20	)	$	27,117
Net income		-		-		-		26		-			-			-			26
Purchase of treasury shares		-		-		-		-		-			(160	)		-			(160	)
Stock based compensation, net of tax benefit		-		-		2		-		-			52			-			54
Balance at March 31, 2017		2,614,506	$	523	$	14,162	$	14,794	$	(763	)	$	(1,659	)	$	(20	)	$	27,037

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 March 31, 2017, the Company has purchased 345,404 shares and there remains 104,596 shares available to purchase under this program. There were no shares purchased by the Company during the three month period ended March 31, 2017.

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 was recognized over the four year requisite service period.

On April 11, 2016, the Company issued 51,000 shares of restricted stock to Executive Officers and certain key management of the Company under the Company’s 2012 Long-Term Incentive Plan. The restricted share awards have varying vesting periods between January 2017 and January 2018; however, these shares 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 approximately $406,000 and will be recognized over the requisite service period.

Included in the three months ended March 31, 2017 and 2016 is approximately $53,000 and $90,000, respectively, of compensation expense related to the restrictive share awards.

On January 1, 2017, 39,750 shares of restricted stock vested of which 15,991 shares were withheld and repurchased by the Company for approximately $160,000 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. 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 March 31,
	2017		2016
	($000’s omitted except per  share data)
Net income	$	26	$	258
Weighted average common shares outstanding (basic)		2,251		2,221
Unvested restricted stock		44		41
Weighted average common Shares outstanding (diluted)		2,294		2,262
Basic
Net income per share	$	0.01	$	0.12
Diluted
Net income per share	$	0.01	$	0.11