Stockholders' Equity and Earnings per Share

3 Months Ended

Mar. 31, 2022

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 March 31,				Affected Line Item on Consolidated Statement of Income
(dollars in thousands)	2022		2021
Available-for-sale securities
Realized gains on sales of securities	$	-	$	-	Gain on sale of available-for-sale securities, net
Tax effect		-		-	Income tax expense
	$	-	$	-

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 (Loss)
Three Months Ended March 31, 2022
Balance at beginning of period	$	1,675		$	1,675
Net other comprehensive loss		(11,133	)		(11,133	)
Balance at end of period	$	(9,458	)	$	(9,458	)
Three Months Ended March 31, 2021
Balance at beginning of period	$	4,069		$	4,069
Net other comprehensive loss		(1,694	)		(1,694	)
Balance at end of period	$	2,375		$	2,375

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 March 31, 2022
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period	$	(14,093	)	$	(2,960	)	$	(11,133	)
Total change in accumulated other comprehensive income, net	$	(14,093	)	$	(2,960	)	$	(11,133	)

	Three Months Ended March 31, 2021
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period	$	(2,144	)	$	(450	)	$	(1,694	)
Total change in accumulated other comprehensive income, net	$	(2,144	)	$	(450	)	$	(1,694	)

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 three months ended March 31, 2022 and 2021:

(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 March 31, 2022
Net income, basic	$	2,031		5,186	$	0.39
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	2,031		5,186	$	0.39
Three Months Ended March 31, 2021
Net income, basic	$	3,012		5,225	$	0.58
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	3,012		5,225	$	0.58

The Company had no antidilutive shares outstanding in the three months ended March 31, 2022 and 2021, 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.

The Company has a share repurchase program which was authorized by the Board of Directors in October 2021 to repurchase up to 10% of the Company’s issued and outstanding common stock through November 30, 2022. During the first quarter of 2022, 122,995 shares, for an aggregate purchase price of $3.0 million, were repurchased by the Company under this plan.