Stockholders' Equity and Earnings per Share

6 Months Ended

Jun. 30, 2020

Stockholders' Equity and Earnings per Share [Abstract]

Stockholders' Equity and Earnings per Share

Note 9. Stockholders’ Equity and Earnings per Share

STOCKHOLDERS’ EQUITY – Accumulated Other Comprehensive Income (Loss)

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

	Three Months Ended June 30,				Six Months Ended June 30,				Affected Line Item on
(dollars in thousands)	2020		2019		2020		2019		Consolidated Statement of Income
Available-for-sale securities
Realized gains on sales of securities	$	184	$	-	$	184	$	26	Gain on sale of available-for-sale securities, net
Tax effect		39		-		39		5	Income tax expense
	$	145	$	-	$	145	$	21

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

(dollars in thousands)	Unrealized Gains (Losses) on Available-for-Sale Securities			Accumulated Other Comprehensive Income
Three Months Ended June 30, 2020
Balance at beginning of period	$	(524	)	$	(524	)
Net other comprehensive income		3,876			3,876
Balance at end of period	$	3,352		$	3,352
Three Months Ended June 30, 2019
Balance at beginning of period	$	(616	)	$	(616	)
Net other comprehensive income		1,295			1,295
Balance at end of period	$	679		$	679

(dollars in thousands)	Unrealized Gains (Losses) on Available-for-Sale Securities			Accumulated Other Comprehensive Income
Six Months Ended June 30, 2020
Balance at beginning of period	$	(79	)	$	(79	)
Net other comprehensive income		3,431			3,431
Balance at end of period	$	3,352		$	3,352
Six Months Ended June 30, 2019
Balance at beginning of period	$	(2,156	)	$	(2,156	)
Net other comprehensive income		2,835			2,835
Balance at end of period	$	679		$	679

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

	Three Months Ended June 30, 2020
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	5,090		$	1,069		$	4,021
Reclassification adjustment for gains recognized in income		(184	)		(39	)		(145	)
Total change in accumulated other comprehensive income, net	$	4,906		$	1,030		$	3,876

	Three Months Ended June 30, 2019
(dollars in thousands)	Pretax		Tax		Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	1,639	$	344	$	1,295
Total change in accumulated other comprehensive income, net	$	1,639	$	344	$	1,295

	Six Months Ended June 30, 2020
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	4,527		$	951		$	3,576
Reclassification adjustment for gains recognized in income		(184	)		(39	)		(145	)
Total change in accumulated other comprehensive income, net	$	4,343		$	912		$	3,431

	Six Months Ended June 30, 2019
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	3,615		$	759		$	2,856
Reclassification adjustment for gains recognized in income		(26	)		(5	)		(21	)
Total change in accumulated other comprehensive income, net	$	3,589		$	754		$	2,835

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 the employee stock purchase plan.

The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three months and six months ended June 30, 2020 and 2019:

(dollars in thousands except per share data)	Net Income Available to Common Shareholders (Numerator)		Weighted Average Common Shares (Denominator)		Per Share Amount
Three Months Ended June 30, 2020
Net income, basic	$	2,494		5,220	$	0.48
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	2,494		5,220	$	0.48
Three Months Ended June 30, 2019
Net income, basic	$	1,626		5,202	$	0.31
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	1,626		5,202	$	0.31
Six Months Ended June 30, 2020
Net income, basic	$	3,744		5,210	$	0.72
Potentially dilutive common shares - employee stock purchase program		-		1		-
Diluted	$	3,744		5,211	$	0.72
Six Months Ended June 30, 2019
Net income, basic	$	3,653		5,195	$	0.70
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	3,653		5,195	$	0.70

The Company had no antidilutive shares outstanding in the six months ended June 30, 2020 and 2019, respectively. Nonvested 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.