**EXHIBIT 11.1**

 

**EARNINGS PER SHARE COMPUTATION**

 

The factors used in the earnings per sharecomputation follow.

 

(dollarsin thousands except share data)

 
| ** **                                                                      | ** ** | **Nine Months Ended  September 30,** | ** ** | **Three Months Ended  September 30,** | ** ** |
|---------------------------------------------------------------------------------|------------|-------------------------------------------|------------|--------------------------------------------|------------|
| ** **                                                                      | ** ** | **2005**                                  | ** ** | **2004**                                   | ** ** | **2005** | ** ** | **2004** | ** ** |
| Basic                                                                           |       |                                      |       |                                       |       |   |   |   |   |
| Net income                                                                      |       | $                                         | 2,003      |                                       | $          | 1,051 |   | $ | 720 |   | $ | 473 |   |
|                                                                            |       |                                      |       |                                       |       |   |   |   |   |
| Weighted average common shares outstanding                                      |       | 3,238,674                                 |       | 2,749,511                                  |       | 3,238,674 |   | 3,108,358 |   |
|                                                                            |       |                                      |       |                                       |       |   |   |   |   |
| Basic earnings per common share                                                 |       | $                                         | .62        |                                       | $          | .38 |   | $ | .22 |   | $ | .15 |   |
|                                                                            |       |                                      |       |                                       |       |   |   |   |   |
| Diluted                                                                         |       |                                      |       |                                       |       |   |   |   |   |
| Net income                                                                      |       | $                                         | 2,003      |                                       | $          | 1,051 |   | $ | 720 |   | $ | 473 |   |
|                                                                            |       |                                      |       |                                       |       |   |   |   |   |
| Weighted average common shares outstanding for basic earnings per common  share |       | 3,238,674                                 |       | 2,749,511                                  |       | 3,238,674 |   | 3,108,358 |   |
| Add: Dilutive effects of assumed exercises of stock options                     |       | 247,045                                   |       | 141,683                                    |       | 258,527 |   | 141,235 |   |
| Average shares and dilutive potential common shares                             |       | 3,485,719                                 |       | 2,891,194                                  |       | 3,497,201 |   | 3,249,593 |   |
|                                                                            |       |                                      |       |                                       |       |   |   |   |   |
| Diluted earnings per common share                                               |       | $                                         | .57        |                                       | $          | .36 |   | $ | .21 |   | $ | .15 |   |

 

No options were antidilutive

 

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