Stockholders' Equity and Earnings per Common Share

6 Months Ended

Jun. 30, 2023

Stockholders' Equity and Earnings Per Common Share [Abstract]

Stockholders' Equity and Earnings per Common Share

Note 9. Stockholders’ Equity and Earnings per Common Share

Stockholders’ Equity – Accumulated Other Comprehensive Income (Loss)

The following tables present amounts reclassified out of accumulated other comprehensive income (loss), by category, during the periods indicated:

	Three Months Ended					Six Months Ended
	June 30,					June 30,					Affected Line Item on Consolidated Statement of Income
(dollars in thousands)	2023			2022		2023			2022
Available-for-sale securities
Realized loss on sale of securities	$	(164	)	$	-	$	(164	)	$	-	Loss on sale of available-for-sale securities, net
Tax effect		(34	)		-		(34	)		-	Income tax benefit
	$	(130	)	$	-	$	(130	)	$	-

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 (Loss) Income
Three Months Ended June 30, 2023
Balance at beginning of period	$	(18,435	)	$	(18,435	)
Net other comprehensive loss		(1,322	)		(1,322	)
Balance at end of period	$	(19,757	)	$	(19,757	)
Three Months Ended June 30, 2022
Balance at beginning of period	$	(9,458	)	$	(9,458	)
Net other comprehensive loss		(6,392	)		(6,392	)
Balance at end of period	$	(15,850	)	$	(15,850	)

(dollars in thousands)	Unrealized Gains (Losses) on Available-for-Sale Securities			Accumulated Other Comprehensive (Loss) Income
Six Months Ended June 30, 2023
Balance at beginning of period	$	(20,767	)	$	(20,767	)
Net other comprehensive income		1,010			1,010
Balance at end of period	$	(19,757	)	$	(19,757	)
Six Months Ended June 30, 2022
Balance at beginning of period	$	1,675		$	1,675
Net other comprehensive loss		(17,525	)		(17,525	)
Balance at end of period	$	(15,850	)	$	(15,850	)

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, 2023
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period	$	(1,838	)	$	(386	)	$	(1,452	)
Reclassification adjustment for losses recognized in income		164			(34	)		130
		(1,674	)		(420	)		(1,322	)
Total change in accumulated other comprehensive loss, net	$	(1,674	)	$	(420	)	$	(1,322	)

	Three Months Ended June 30, 2022
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period	$	(8,091	)	$	(1,699	)	$	(6,392	)
Total change in accumulated other comprehensive loss, net	$	(8,091	)	$	(1,699	)	$	(6,392	)

	Six Months Ended June 30, 2023
(dollars in thousands)	Pretax		Tax			Net-of-Tax
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period	$	1,114	$	234		$	880
Reclassification adjustment for losses recognized in income		164		(34	)		130
		1,278		200			1,010
Total change in accumulated other comprehensive income, net	$	1,278	$	200		$	1,010

	Six Months Ended June 30, 2022
(dollars in thousands)	Pretax			Tax			Net-of-Tax
Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period	$	(22,183	)	$	(4,658	)	$	(17,525	)
Total change in accumulated other comprehensive loss, net	$	(22,183	)	$	(4,658	)	$	(17,525	)

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 and six months ended June 30, 2023 and 2022:

(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, 2023
Net income, basic	$	1,802		5,023	$	0.36
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	1,802		5,024	$	0.36
Three Months Ended June 30, 2022
Net income, basic	$	1,892		5,087	$	0.37
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	1,892		5,087	$	0.37
Six Months Ended June 30, 2023
Net income, basic	$	4,885		5,011	$	0.97
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	4,885		5,012	$	0.97
Six Months Ended June 30, 2022
Net income, basic	$	3,923		5,136	$	0.76
Potentially dilutive common shares - employee stock purchase program		-		-		-
Diluted	$	3,923		5,136	$	0.76

The Company had no antidilutive shares outstanding in the three and six months ended June 30, 2023 and 2022, 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.