25 EXHIBIT 11 STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE - (UNAUDITED) For the Three Months Ended December 31, ------------------------------- (dollars in thousands except per 2003 2002 share amounts) - ---------------------------------------- -------------- -------------- Net earnings $ (680) $ 704 Effect of conversion of preferred 101 100 securities Diluted earnings per share (579) 804 Weighted average common shares outstanding 3,012,434 3,012,434 Effect of conversion of preferred securities (1) 1,371,429 1,371,429 Common stock equivalents due to dilutive effect of stock options (1) 39,601 24,254 Total weighted average common shares and common share equivalents outstanding (1) 4,423,464 4,408,117 Basic earnings (loss) per common share $(0.23) $0.23 Diluted earnings (loss) per common share $(0.23) $0.18 (1) Effect of conversion of preferred securities and dilutive effect of stock options are not considered in the calculation of earnings per share because the impact is antidilutive.