**EXHIBIT 11.1**

 

**EARNINGS PER SHARE COMPUTATION**

 

The factors used in the earnings per sharecomputation follow.

 

(dollars in thousands except share data)

 
| ** **                                                                      | ** ** | **Six Months Ended** | ** ** | **Three Months Ended** | ** ** |
|---------------------------------------------------------------------------------|------------|----------------------|------------|------------------------|------------|
| ** **                                                                      | ** ** | **June 30,**    | ** ** | **June 30,**      | ** ** |
| ** **                                                                      | ** ** | **2005**             | ** ** | **2004**               | ** ** | **2005** | ** ** | **2004** | ** ** |
| Basic                                                                           |       |                 |       |                   |       |   |   |   |   |
| Net income                                                                      |       | $                    | 1,283      |                   | $          | 578 |   | $ | 621 |   | $ | 328 |   |
|                                                                            |       |                 |       |                   |       |   |   |   |   |
| Weighted  average common shares outstanding                                     |       | 3,238,674            |       | 2,568,116              |       | 3,238,674 |   | 2,674,548 |   |
|                                                                            |       |                 |       |                   |       |   |   |   |   |
| Basic  earnings per common share                                                |       | $                    | 0.40       |                   | $          | 0.22 |   | $ | 0.19 |   | $ | 0.12 |   |
|                                                                            |       |                 |       |                   |       |   |   |   |   |
| Diluted                                                                         |       |                 |       |                   |       |   |   |   |   |
| Net income                                                                      |       | $                    | 1,283      |                   | $          | 578 |   | $ | 621 |   | $ | 328 |   |
|                                                                            |       |                 |       |                   |       |   |   |   |   |
| Weighted  average common shares outstanding for basic earnings per common share |       | 3,238,674            |       | 2,568,116              |       | 3,238,674 |   | 2,674,548 |   |
| Add:  Dilutive effects of assumed exercises of stock options                    |       | 241,303              |       | 141,907                |       | 241,303 |   | 141,571 |   |
|                                                                            |       |                 |       |                   |       |   |   |   |   |
| Average  shares and dilutive potential common shares                            |       | 3,479,977            |       | 2,710,023              |       | 3,479,977 |   | 2,816,119 |   |
|                                                                            |       |                 |       |                   |       |   |   |   |   |
| Diluted  earnings per common share                                              |       | $                    | 0.37       |                   | $          | 0.21 |   | $ | 0.18 |   | $ | 0.12 |   |

 

No options were antidilutive

 

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