6. Shareholders’ Equity


	Three-month Period Ended March 31, 2020
			Accumulated
			Other				Capital in						Total
	Retained		Comprehensive				excess of				Treasury		shareholders’
	Earnings		Income		Common Stock		par value		ESOT		stock		equity

January 1, 2020	$	20,484	$	98	$	523	$	14,358	$	(460)	$	(1,471)	$	33,532

Purchase of treasury shares		—		—		—		—		—		(100)		(100)
Stock based compensation		—		—		—		33		—		52		85
Net income		1,898		—		—		—		—		—		1,898

March 31, 2020	$	22,382	$	98	$	523	$	14,391	$	(460)	$	(1,519)	$	35,415


	Three-month Period Ended March 31, 2019
			Accumulated
			Other				Capital in						Total
	Retained		Comprehensive				excess of				Treasury		shareholders’
	Earnings		Income		Common Stock		par value		ESOT		stock		equity
January 1, 2019	$	18,788	$	35	$	523	$	14,250	$	(561)	$	(1,522)	$	31,513

Purchase of treasury shares		—		—		—		—		—		(128)		(128)
Stock based compensation		—		—		—		14		—		44		58
Net income		98		—		—		—		—		—		98

March 31, 2019	$	18,886	$	35	$	523	$	14,264	$	(561)	$	(1,606)	$	31,541

The Company’s Board of Directors authorized the purchase of up to 450,000 shares of its common stock in the open market or in privately negotiated transactions. As of March 31, 2020, the Company has purchased 360,615 shares and there remains 89,385 shares available to purchase under this program. There were 360 shares purchased by the Company during the three month period ended March 31, 2020.

The Company’s 2012 Long-Term Incentive Plan provides for the granting of stock awards, including restricted stock, stock options and stock appreciation rights, to employees and non-employees, including directors of the Company. Compensation expense is amortized over the related service period, which is normally three years for employees and twelve months for non-employee directors. Shares of unvested restricted stock are generally forfeited if a recipient leaves the Company before the vesting date. Shares that are forfeited become available for future awards.

The following is a summary of restricted stock activity for the three months ended March 31, 2020. Of the shares that vested, the Company withheld 9,543 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.


		Shares
Restricted Share Activity:
Unvested at December 31, 2019		54,416
Granted in 2020		—
Forfeited in 2020		—
Vested in 2020		27,210
Unvested at March 31, 2020		27,206

Earnings Per Share

Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period. The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding, are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested. Diluted earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period plus the number of shares of common stock that would be issued assuming all contingently issuable shares having a dilutive effect on the earnings per share that were outstanding for the period. Incremental shares from assumed conversions are calculated as the number of shares that would be issued, net of the number of shares that could be purchased in the marketplace with the cash received upon stock option exercise. The dilutive effect of unvested restrictive stock is determined using the treasury stock method.


	Three Months Ended
	March 31,
	2020		2019
	($000’s omitted except per share data)
Net Income	$	1,898	$	98
Weighted average common shares outstanding (basic)		2,363		2,328
Unvested restricted stock		27		53
Weighted average common shares outstanding (diluted)		2,390		2,381
Basic
Net income per share	$	0.80	$	0.04
Diluted
Net income per share	$	0.79	$	0.04