Note 9. Stockholders' Equity and Earnings per Share

STOCKHOLDERS' EQUITY – Accumulated Other Comprehensive Loss

The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017			Affected Line Item on Consolidated Statements of Income
	(in thousands)
Available-for-sale securities
Realized gains on sales of securities		$	40		$	87		$	120		$	87	Gain on sale of available-for-sale securities, net
Tax effect			8			30			25			30	Income tax expense
		$	32		$	57		$	95		$	57

The following tables present the changes in accumulated other comprehensive loss, by category, net of tax, for the periods indicated:

	Unrealized Gains (Losses) on Available-for-Sale Securities			Defined Benefit Pension Plans			Accumulated Other Comprehensive Loss
	(in thousands)

Three Months Ended June 30, 2018
Balance at beginning of period	$	(2,737	)	$	-		$	(2,737	)
Net other comprehensive loss		(152	)		-			(152	)
Balance at end of period	$	(2,889	)	$	-		$	(2,889	)


Three Months Ended June 30, 2017
Balance at beginning of period	$	(1,311	)	$	(2,469	)	$	(3,780	)
Net other comprehensive income		1,036			-			1,036
Balance at end of period	$	(275	)	$	(2,469	)	$	(2,744	)

	Unrealized Gains (Losses) on Available-for-Sale Securities			Defined Benefit Pension Plans			Accumulated Other Comprehensive Loss
	(in thousands)

Six Months Ended June 30, 2018
Balance at beginning of period	$	(707	)	$	-		$	(707	)
Net other comprehensive loss		(1,966	)		-			(1,966	)
Reclassification of the income tax effects of the Tax Cuts and Jobs Act from AOCI		(139	)		-			(139	)
Reclassification of net unrealized gains on equity securities from AOCI per ASU 2016-01		(77	)		-			(77	)
Balance at end of period	$	(2,889	)	$	-		$	(2,889	)


Six Months Ended June 30, 2017
Balance at beginning of period	$	(1,739	)	$	(2,469	)	$	(4,208	)
Net other comprehensive income		1,464			-			1,464
Balance at end of period	$	(275	)	$	(2,469	)	$	(2,744	)

The following tables present the change in each component of accumulated other comprehensive loss on a pre-tax and after-tax basis for the periods indicated.

	Three Months Ended June 30, 2018
	Pretax				Tax				Net-of-Tax
	(in thousands)

Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period		$	(152	)		$	(32	)		$	(120	)
Reclassification adjustment for gains recognized in income			(40	)			(8	)			(32	)

Total change in accumulated other comprehensive loss, net		$	(192	)		$	(40	)		$	(152	)

	Three Months Ended June 30, 2017
	Pretax				Tax				Net-of-Tax
	(in thousands)

Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period		$	1,657			$	564			$	1,093
Reclassification adjustment for gains recognized in income			(87	)			(30	)			(57	)

Total change in accumulated other comprehensive loss, net		$	1,570			$	534			$	1,036

	Six Months Ended June 30, 2018
	Pretax				Tax				Net-of-Tax
	(in thousands)

Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period		$	(2,368	)		$	(497	)		$	(1,871	)
Reclassification adjustment for gains recognized in income			(120	)			(25	)			(95	)

Total change in accumulated other comprehensive loss, net		$	(2,488	)		$	(522	)		$	(1,966	)

	Six Months Ended June 30, 2017
	Pretax				Tax				Net-of-Tax
	(in thousands)

Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period		$	2,305			$	784			$	1,521
Reclassification adjustment for gains recognized in income			(87	)			(30	)			(57	)

Total change in accumulated other comprehensive loss, net		$	2,218			$	754			$	1,464

EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to outstanding stock options.

The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three and six months ended June 30, 2018 and 2017:

	Net Income Available to Common Shareholders (Numerator)		Weighted Average Common Shares (Denominator)		Per Share Amount
	(in thousands except per share data)
Three Months Ended June 30, 2018
Net income, basic	$	992		5,177	$	0.19
Potentially dilutive common shares - stock options		-		-		-
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	992		5,177	$	0.19

Three Months Ended June 30, 2017
Net income, basic	$	1,161		4,984	$	0.23
Potentially dilutive common shares - stock options		-		13		-
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	1,161		4,997	$	0.23

Six Months Ended June 30, 2018
Net income, basic	$	1,934		5,099	$	0.38
Potentially dilutive common shares - stock options		-		-		-
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	1,934		5,099	$	0.38

Six Months Ended June 30, 2017
Net income, basic	$	2,103		4,981	$	0.42
Potentially dilutive common shares - stock options		-		13		-
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	2,103		4,994	$	0.42

The Company had no antidilutive shares outstanding in the six months ended June 30, 2018 and 2017. Non-vested restricted common shares, which carry all rights and privileges of a common share with respect to the stock, including the right to vote, were included in the basic and diluted per common share calculations.