**EXHIBIT 11.1**

 

**EARNINGS PER SHARE COMPUTATION**

 

The factors used in the earnings per sharecomputation follow.

 

(dollars in thousandsexcept share data)

 
| ** **                                                                      | ** ** | **Three Months Ended  March 31,** | ** ** |
|---------------------------------------------------------------------------------|------------|----------------------------------------|------------|
| ** **                                                                      | ** ** | **2005**                               | ** ** | **2004** | ** ** |
| Basic                                                                           |       |                                   |       |   |   |
| Net income                                                                      |       | $                                      | 662        |   | $ | 250 |   |
|                                                                            |       |                                   |       |   |   |
| Weighted  average common shares outstanding                                     |       | 3,238,674                              |       | 2,461,683 |   |
|                                                                            |       |                                   |       |   |   |
| Basic  earnings per common share                                                |       | $                                      | 0.20       |   | $ | 0.10 |   |
|                                                                            |       |                                   |       |   |   |
| Diluted                                                                         |       |                                   |       |   |   |
| Net income                                                                      |       | $                                      | 662        |   | $ | 250 |   |
|                                                                            |       |                                   |       |   |   |
| Weighted  average common shares outstanding for basic earnings per common share |       | 3,238,674                              |       | 2,461,683 |   |
| Add:  Dilutive effects of assumed exercises of stock options                    |       | 241,303                                |       | 142,244 |   |
|                                                                            |       |                                   |       |   |   |
| Average  shares and dilutive potential common shares                            |       | 3,479,977                              |       | 2,603,928 |   |
|                                                                            |       |                                   |       |   |   |
| Diluted  earnings per common share                                              |       | $                                      | 0.19       |   | $ | 0.10 |   |
|                                                                            |       |                                   |       |   |   |
| No options  were antidilutive                                                   |       |                                   |       |   |   |

 

1

----