Exhibit 11.1
Computation of Earnings Per Share
The Company follow s Financial Accounting Standards Board's Statement No. 128, "Earnings Per Share" ("SFAS 128"), codified in ASC 260, in which income for Basic Earnings Per Share ("EPS") is adjusted for dividends attributable to preferred stock and is based on the weighted average number of common shares outstanding. Diluted EPS is computed by using the weighted average number of common shares outstanding, increased by the assumed conversion of the convertible preferred stock and the assumed conversion of stock options and restricted stock.
The components of basic and diluted earnings per share for the years ended December 31, 2012, 2011 and 2010 are as follows:

|  | 2012 |  | 2011 |  | 2010
Basic Net Income per Common Share |  |  |  |  |  |
Available to Common Stockholders: |  |  |  |  |  |
Net income |  | $ | 14,025,000 |  |  | $ | 11,372,000 |  |  | $ | 8,761,000 |
Preferred stock dividends |  | (4,252,000 | ) |  | (3,576,000 | ) |  | (2,240,000 | )
Net income available to common stockholders |  | $ | 9,773,000 |  |  | $ | 7,796,000 |  |  | $ | 6,521,000 |
Weighted average common shares outstanding |  | 6,023,289 |  | 6,042,015 |  | 6,092,670
Basic earnings per common share |  | $ | 1.62 |  |  | $ | 1.29 |  |  | $ | 1.07 |
Diluted Net Income per Common Share |  |  |  |  |  |
Available to Common Stockholders: |  |  |  |  |  |
Net income available to common stockholders |  | $ | 9,773,000 |  |  | $ | 7,796,000 |  |  | $ | 6,521,000 |
Effect of assumed preferred stock conversion |  | — |  |  | — |  |  | — |
Net income applicable to diluted earnings per share |  | $ | 9,773,000 |  |  | $ | 7,796,000 |  |  | $ | 6,521,000 |
Weighted average common shares outstanding |  | 6,023,289 |  |  | 6,042,015 |  |  | 6,092,670 |
Dilutive potential common shares: |  |  |  |  |  |
Assumed conversion of stock options |  | 4,473 |  |  | 10,515 |  |  | 24,057 |
Restricted stock awarded |  | 116 |  |  | 1,741 |  |  | — |
Assumed conversion of preferred stock |  | — |  |  | — |  |  | — |
Dilutive potential common shares |  | 4,589 |  |  | 12,256 |  |  | 24,057 |
Diluted weighted average common shares outstanding |  | 6,027,878 |  |  | 6,054,271 |  |  | 6,116,727 |
Diluted earnings per common share |  | $ | 1.62 |  |  | $ | 1.29 |  |  | $ | 1.07 |

The following shares were not considered in computing diluted earnings per share for the years ended December 31, 2012, 2011 and 2010 because they were anti-dilutive:

|  | 2012 |  | 2011 |  | 2010
Stock options to purchase shares of common stock |  | 108,125 |  |  | 202,970 |  |  | 202,970 |
Average dilutive potential common shares associated with convertible preferred stock |  | 2,290,110 |  |  | 1,998,652 |  |  | 1,122,833 |