Stockholders' Equity and Earnings per Common Share

12 Months Ended

Dec. 31, 2020

Stockholders' Equity and Earnings Per Common Share [Abstract]

Stockholders' Equity and Earnings Per Common Share

NOTE 12, Stockholders’ Equity and Earnings per Common Share

STOCKHOLDERS’ EQUITY—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

(dollars in thousands)	Years Ended December 31,				Affected Line Item on
	2020		2019		Consolidated Statement of Income
Available-for-sale securities
Realized gains (losses) on sales of securities	$	264	$	314	Gain on sale of available-for-sale securities, net
Tax effect		55		66	Income tax expense
	$	209	$	248

The following table presents the changes in accumulated other comprehensive 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 (Loss)
Year Ended December 31, 2020
Balance at beginning of period	$	(79	)	$	(79	)
Net other comprehensive income		4,148			4,148
Balance at end of period	$	4,069		$	4,069
Year Ended December 31, 2019
Balance at beginning of period	$	(2,156	)	$	(2,156	)
Net other comprehensive income		2,077			2,077
Balance at end of period	$	(79	)	$	(79	)

The following table presents the change in each component of accumulated other comprehensive income, net of tax on a pre-tax and after-tax basis for the periods indicated.

	Year Ended December 31, 2020
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	5,514		$	1,157		$	4,357
Reclassification adjustment for gains recognized in income		(264	)		(55	)		(209	)
Total change in accumulated other comprehensive income, net	$	5,250		$	1,102		$	4,148
	Year Ended December 31, 2019
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	2,943		$	618		$	2,325
Reclassification adjustment for gains recognized in income		(314	)		(66	)		(248	)
Total change in accumulated other comprehensive income, net	$	2,629		$	552		$	2,077

EARNINGS PER COMMON SHARE

Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS 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 ESPP.

The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 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
Year ended December 31, 2020
Net income, basic	$	5,389		5,216	$	1.03
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	5,389		5,216	$	1.03
Year ended December 31, 2019
Net income, basic	$	7,860		5,197	$	1.51
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	7,860		5,197	$	1.51

The Company had no antidilutive shares in 2020 or 2019. 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.