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, 2014, 2013 and 2012 are as follows:
| 2014 | 2013 | 2012 | ||||||||||
| Basic Net Income per Common Share | ||||||||||||
| Available to Common Stockholders: | ||||||||||||
| Net income | $ | 15,461,000 | $ | 14,722,000 | $ | 14,025,000 | ||||||
| Preferred stock dividends | (4,152,000 | ) | (4,417,000 | ) | (4,252,000 | ) | ||||||
| Net income available to common stockholders | 11,309,000 | 10,305,000 | 9,773,000 | |||||||||
| Weighted average common shares outstanding | 6,002,766 | 5,934,628 | 6,023,289 | |||||||||
| Basic earnings per common share | $ | 1.88 | $ | 1.74 | $ | 1.62 | ||||||
| Diluted Net Income per Common Share | ||||||||||||
| Available to Common Stockholders: | ||||||||||||
| Net income available to common stockholders | $ | 11,309,000 | $ | 10,305,000 | $ | 9,773,000 | ||||||
| Effect of assumed preferred stock conversion | 4,152,000 | — | — | |||||||||
| Net income applicable to diluted earnings per share | 15,461,000 | 10,305,000 | 9,773,000 | |||||||||
| Weighted average common shares outstanding | 6,002,766 | 5,934,628 | 6,023,289 | |||||||||
| Dilutive potential common shares: | ||||||||||||
| Assumed conversion of stock options | — | 2,090 | 4,473 | |||||||||
| Restricted stock awarded | 11,725 | 8,184 | 116 | |||||||||
| Assumed conversion of preferred stock | 2,357,196 | — | — | |||||||||
| Dilutive potential common shares | 2,368,921 | 10,274 | 4,589 | |||||||||
| Diluted weighted average common shares outstanding | 8,371,687 | 5,944,902 | 6,027,878 | |||||||||
| Diluted earnings per common share | $ | 1.85 | $ | 1.73 | $ | 1.62 | ||||||
The following shares were not considered in computing diluted earnings per share for the years ended December 31, 2014, 2013 and 2012 because they were anti-dilutive:
| 2014 | 2013 | 2012 | |||||||
| Stock options to purchase shares of common stock | 52,000 | 130,500 | 108,125 | ||||||
| Average dilutive potential common shares associated with convertible preferred stock | — | 2,494,801 | 2,290,110 | ||||||