Stockholders' Equity and Earnings per Share

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine Months Ended September 30,				Affected Line Item on Consolidated Statement of Income
(dollars in thousands)	2021		2020		2021		2020
Available-for-sale securities
Realized gains on sales of securities	$	-	$	1	$	-	$	185	Gain on sale of available-for-sale securities, net
Tax effect		-		-		-		39	Income tax expense
	$	-	$	1	$	-	$	146

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
Nine Months Ended September 30, 2021
Balance at beginning of period	$	4,069		$	4,069
Net other comprehensive loss		(1,495	)		(1,495	)
Balance at end of period	$	2,574		$	2,574
Nine Months Ended September 30, 2020
Balance at beginning of period	$	(79	)	$	(79	)
Net other comprehensive income		3,883			3,883
Balance at end of period	$	3,804		$	3,804

(dollars in thousands)	Unrealized Gains (Losses) on Available-for-Sale Securities			Accumulated Other Comprehensive Income
Three Months Ended September 30, 2021
Balance at beginning of period	$	3,071		$	3,071
Net other comprehensive loss		(497	)		(497	)
Balance at end of period	$	2,574		$	2,574
Three Months Ended September 30, 2020
Balance at beginning of period	$	3,352		$	3,352
Net other comprehensive income		452			452
Balance at end of period	$	3,804		$	3,804

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 September 30, 2021
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period	$	(629	)	$	(133	)	$	(497	)
Total change in accumulated other comprehensive income, net	$	(629	)	$	(133	)	$	(497	)
	Three Months Ended September 30, 2020
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	573		$	120		$	453
Reclassification adjustment for gains recognized in income		(1	)		-			(1	)
Total change in accumulated other comprehensive income, net	$	572		$	120		$	452

	Nine Months Ended September 30, 2021
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period	$	(1,892	)	$	(397	)	$	(1,495	)
Total change in accumulated other comprehensive income, net	$	(1,892	)	$	(397	)	$	(1,495	)
	Nine Months Ended September 30, 2020
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	5,100		$	1,071		$	4,029
Reclassification adjustment for gains recognized in income		(185	)		(39	)		(146	)
Total change in accumulated other comprehensive income, net	$	4,915		$	1,032		$	3,883

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 employee stock purchase plan.

The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three and nine months ended September 30, 2021 and 2020:

(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 September 30, 2021
Net income, basic	$	1,908		5,245	$	0.36
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	1,908		5,245	$	0.36
Three Months Ended September 30, 2020
Net income, basic	$	1,100		5,221	$	0.21
Potentially dilutive common shares - employee stock purchase program		-		1		-
Diluted	$	1,100		5,222	$	0.21
Nine Months Ended September 30, 2021
Net income, basic	$	6,762		5,236	$	1.29
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	6,762		5,236	$	1.29
Nine Months Ended September 30, 2020
Net income, basic	$	4,844		5,214	$	0.93
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	4,844		5,214	$	0.93

The Company had no antidilutive shares outstanding in the nine months ended September 30, 2021 and 2020, 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.