EXHIBIT 11.1 CALCULATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE PRIMARY EARNINGS PER SHARE Computation for Statement of Operations 1997 1996 1995 ---- ---- ---- (dollars in thousands except per share data) Reconciliation of net income per statement of operations to amount used in primary earnings per share computation: Net income $10,951 $5,147 $2,714 Add-interest on short-term debt, net of tax effect, on application of assumed proceeds from exercise of options and warrants in excess of 20% limitation - 45 36 ------- ------- ------- Net income, as adjusted $10,951 $5,192 $2,750 ======= ====== ====== Additional Primary Computation Net income, as adjusted per primary computation above $10,951 $5,192 $2,750 Additional adjustment to weighted average number of shares outstanding: Weighted average number of shares outstanding 3,478,290 1,890,200 1,904,400 Add-Dilutive effect of outstanding options and warrants (as determined by the application of the treasury stock method) 880,074 866,700 331,000 Weighted average number of shares outstanding 4,358,364 2,756,900 2,235,400 Primary earnings per shares, as adjusted $2.51 $1.88 $1.23 1997 1996 1995 ---- ---- ---- (Dollars in thousands except per share data) FULLY DILUTED EARNINGS PER SHARE Computation for Statement of Operations Reconciliation of net income per statement of operations to amount used in primary earnings per share computation: Income (loss) before extraordinary loss $10,951 $5,147 $2,714 Add-Interest on short-term debt, net of tax effect, on application of assumed proceeds from exercise of options and warrants in excess of 20% limitation - 19 - Net income, as adjusted 10,951 5,166 2,714 Additional Fully Diluted Computation Net income, as adjusted per primary computation above 10,951 5,166 2,714 Additional adjustment to weighted average number of shares outstanding: Weighted average number of shares outstanding 3,478,290 1,890,200 1,904,400 Add-Dilutive effect of outstanding options and warrants (as determined by the application of the treasury stock method) 906,925 872,800 388,300 Weighted average number of shares outstanding 4,385,215 2,763,000 2,292,700 Fully diluted earnings per share, as adjusted $2.50 $1.87 $1.18