COMPUTATION OF INCOME PER SHARE Three Months Nine Months Ended September 30, Ended September 30, 1997 1996 1997 1996 - ----------------------------------------------------------------------------------------- PRIMARY Average shares outstanding .......... 6,503,470 6,534,112 6,508,398 6,545,112 Net effect of dilutive stock options- based on the treasury stock method using average market price .......... 144,367 18,780 104,536 8,673 - ----------------------------------------------------------------------------------------- 6,647,837 6,552,892 6,612,934 6,553,785 ========================================================================================= Net income (in thousands) ........... $ 1,233 $ 924 $ 3,514 $ 2,669 ========================================================================================= Per share amount .................... $ .19 $ .14 $ .53 $ .41 =========================================================================================