Attached files
Exhibit
11.1
Computation of Earnings Per
Share
The
Company follows Financial Accounting Standards Board’s Statement No. 128, “Earnings Per Share” (“SFAS
128") 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 the stock options.
A
three-for-two stock split was effected on June 29, 2007, in the form of a 50%
stock dividend for the stockholders of record at the close of business on June
18, 2007. Accordingly, information with respect to shares of common
stock and earnings per share has been restated for current and prior periods
presented to fully reflect the stock split.
The
components of basic and diluted earnings per common share for the years ended
December 31, 2009, 2008 and 2007 are as follows:
|
2009
|
2008
|
2007
|
||||||||||
|
Basic
Earnings per Common Share:
|
||||||||||||
|
Net
income
|
$ | 8,214,000 | $ | 10,524,000 | $ | 10,159,000 | ||||||
|
Preferred
stock dividends
|
(1,821,000 | ) | - | - | ||||||||
|
Net
income available to common stockholders
|
$ | 6,393,000 | $ | 10,524,000 | $ | 10,159,000 | ||||||
|
Weighted
average common shares outstanding
|
6,131,314 | 6,231,438 | 6,356,772 | |||||||||
|
Basic
earnings per common share
|
$ | 1.04 | $ | 1.69 | $ | 1.60 | ||||||
|
Diluted
Earnings per Common Share:
|
||||||||||||
|
Net
income available to common stockholders
|
$ | 6,393,000 | $ | 10,524,000 | $ | 10,159,000 | ||||||
|
Effect
of assumed preferred stock conversion
|
- | - | - | |||||||||
|
Net
income applicable to diluted earnings per share
|
$ | 6,393,000 | $ | 10,524,000 | $ | 10,159,000 | ||||||
|
Weighted
average common shares outstanding
|
6,131,314 | 6,231,438 | 6,356,772 | |||||||||
|
Dilutive
potential common shares:
|
||||||||||||
|
Assumed
conversion of stock options
|
35,879 | 75,976 | 125,521 | |||||||||
|
Assumed
conversion of preferred stock
|
- | - | - | |||||||||
|
Diluted
weighted average common shares outstanding
|
6,167,193 | 6,307,414 | 6,482,293 | |||||||||
|
Diluted
earnings per common share
|
$ | 1.04 | $ | 1.67 | $ | 1.57 | ||||||
The
following shares were not considered in computing diluted earnings per share for
the years ended December 31, 2009, 2008 and 2007 because they were
anti-dilutive:
|
2009
|
2008
|
2007
|
||||||||||
|
Stock
options to purchase shares of common stock
|
202,970 | 124,813 | 124,813 | |||||||||
|
Average
dilutive potential common shares associated with convertible preferred
stock
|
1,031,982 | -- | -- | |||||||||