NOTE 10: Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share

Shareholders’ Equity

The Corporation did not repurchase any of its shares of common stock during the years ended December 31, 2017, 2016, or 2015, respectively, under the Repurchase Program authorized by the Corporation’s Board of Directors. During the years ended December 31, 2017, 2016 and 2015, the Corporation withheld 9,899 shares, 9,169 shares and 8,745 shares of its common stock, respectively, from employees to satisfy tax withholding obligations resulting from the vesting of restricted shares.

Accumulated Other Comprehensive Income (Loss)

The following table presents the cumulative balances of the components of accumulated other comprehensive income (loss), net of deferred taxes of $491,000, $535,000 and $620,000 as of December 31, 2017, 2016 and 2015, respectively.


	December 31,
(Dollars in thousands)	2017		2016		2015
Net unrealized gains on securities	$	638	$	1,386	$	3,491
Net unrecognized gains (losses) on cash flow hedges		124		(34)		(107)
Net unrecognized losses on defined benefit plan		(2,649)		(2,336)		(2,213)
Total accumulated other comprehensive (loss) income	$	(1,887)	$	(984)	$	1,171

Earnings Per Share (EPS)

The components of the Corporation’s EPS calculations are as follows:


	December 31,
(Dollars in thousands)	2017		2016		2015
Net income	$	6,572	$	13,459	$	12,530

Weighted average number of shares used in earnings per share—basic		3,486,510		3,454,282		3,401,426
Effect of dilutive securities:
Stock option awards		79		1,601		408
Weighted average number of shares used in earnings per share—assuming dilution		3,486,589		3,455,883		3,401,834

The Corporation has applied the two-class method of computing basic and diluted EPS for each period presented because the Corporation’s unvested restricted shares outstanding contain rights to nonforfeitable dividends. Accordingly, the weighted average number of shares used in the calculation of basic and diluted EPS includes both vested and unvested shares outstanding.

Potential shares that may be issued by the Corporation for its stock option awards were determined using the treasury stock method. Accordingly, anti-dilutive shares are not included in computing diluted earnings per share. Approximately 3,000 and 70,000 shares issuable upon exercise of options for the years ended December 31, 2016 and 2015, respectively, were not included in computing diluted earnings per share because they were anti-dilutive. There were no anti-dilutive stock options outstanding for the year ended December 31, 2017.