Exhibit 11.1


Computation of Earnings Per Share

The Company follows 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