XML 21 R11.htm IDEA: XBRL DOCUMENT

Earnings Per Common Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share

Note 2—Earnings Per Common Share

The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation:

(In thousands except average market price and per share data)


		Three months ended
		March 31,
		2021				2020
Numerator (Net income available to common shareholders)		$	3,255			$	1,794
Denominator
Weighted average common shares outstanding for:
Basic shares			7,476				7,421
Dilutive securities:
Deferred compensation			36				38
Restricted stock -Treasury stock method			11				9
Diluted shares			7,523				7,468
Earnings per common share:
Basic		$	0.44			$	0.24
Diluted		$	0.43				0.24

The average market price used in calculating assumed number of shares		$	18.43			$	19.03

In 2006, the Company established a Non-Employee Director Deferred Compensation Plan, whereby a director may elect to defer all or any part of annual retainer and monthly meeting fees payable with respect to service on the board of directors or a committee of the board. Units of common stock are credited to the director’s account at the time compensation is earned and are included in dilutive securities in the table above. The non-employee director’s account balance is distributed by issuance of common stock at the time of retirement or resignation from the board of directors. At March 31, 2021 and December 31, 2020, there were 91,500 and 88,412 units in the plan, respectively. The accrued liability at March 31, 2021 and December 31, 2020 amounted to $1.1 million and $1.1 million, respectively, and is included in “Other liabilities” on the balance sheet.

In 2011, the Company and its shareholders adopted a stock incentive plan whereby 350,000 shares were reserved for issuance by the Company upon the grant of stock options or restricted stock awards under the plan (the “2011 Plan”). The 2011 Plan provided for the grant of options to key employees and directors as determined by a stock option committee made up of at least two members of the board of directors. Options are exercisable for a period of ten years from date of grant. There were no stock options outstanding and exercisable at March 31, 2021, December 31, 2020 and March 31, 2020. At December 31, 2020, the Company had 94,910 shares reserved for future grants under the 2011 Plan.

Under the 2011 Plan, the employee restricted shares and units cliff vest over a three-year period and the non-employee director shares vest one year after issuance. The unrecognized compensation cost at March 31, 2021 and December 31, 2020 for non-vested shares amounts to $572.9 thousand and $283.1 thousand, respectively. Each unit is convertible into one share of common stock at the time the unit vests. The related compensation cost is accrued over the vesting period and was $60.6 thousand and $107.4 thousand at March 31, 2021, and December 31, 2020, respectively.

The 2011 Plan expired on March 15, 2021, and the Company has submitted a new equity incentive plan for consideration at the Company’s 2021 annual meeting of shareholders.