Stockholders' Equity and Earnings per Common Share

12 Months Ended

Dec. 31, 2022

Stockholders' Equity and Earnings Per Common Share [Abstract]

Stockholders' Equity and Earnings Per Common Share

NOTE 10. Stockholders’ Equity and Earnings per Common Share

STOCKHOLDERS’ EQUITY—ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

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

	Years Ended
(dollars in thousands)	December 31,							Affected Line Item on Consolidated Statement of Income
	2022				2021
Available-for-sale securities
Realized loss on sale of securities		$	(1,870	)		$	-	Loss on sale of available-for-sale securities, net
Tax effect			(393	)			-	Income tax benefit
		$	(1,477	)		$	-

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 (Loss) Income
Year Ended December 31, 2022
Balance at beginning of period	$	1,675		$	1,675
Net other comprehensive loss		(22,442	)		(22,442	)
Balance at end of period	$	(20,767	)	$	(20,767	)
Year Ended December 31, 2021
Balance at beginning of period	$	4,069		$	4,069
Net other comprehensive loss		(2,394	)		(2,394	)
Balance at end of period	$	1,675		$	1,675

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, 2022
(dollars in thousands)	Pretax				Tax				Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period		$	(30,382	)		$	6,463			$	(23,919	)
Reclassification adjustment for losses recognized in income			1,870				(393	)			1,477
			(28,512	)			6,070				(22,442	)
Total change in accumulated other comprehensive income, net		$	(28,512	)		$	6,070			$	(22,442	)

	Year Ended December 31, 2021
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period	$	(3,030	)	$	(636	)	$	(2,394	)
Total change in accumulated other comprehensive income, net	$	(3,030	)	$	(636	)	$	(2,394	)

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, 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
Year Ended December 31, 2022
Net income, basic	$	9,108		5,071	$	1.80
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	9,108		5,071	$	1.80
Year Ended December 31, 2021
Net income, basic	$	8,440		5,238	$	1.61
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	8,440		5,238	$	1.61

The Company had no antidilutive shares in 2022 or 2021. 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.