1 EXHIBIT 11.1 STATEMENT RE: COMPUTATION OF DILUTED EARNINGS PER SHARE Diluted earnings per share computations assumes the exercise of stock purchase warrants and options to purchase shares of common stock. The shares assumed exercised are based on the weighted average number of warrants and options outstanding during the period and only include those warrants and options whose average share price during the period exceeds its related exercise price. The net additional shares issuable are calculated based on the treasury stock method and are added to the weighted average number of shares outstanding during the period. DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED JUNE 30, 1998 Three Months Six Months - ------------------------------------------------------------- ------------ ---------- Actual net income (A) $ 2,415,875 $ 4,359,548 =========== =========== Assumed exercise of stock options and warrants 326,050 326,050 Application of assumed proceeds ($1,629,244) toward repurchase of outstanding common stock at an average market price of $10.667 and $10.365, respectively. (152,737) (157,187) ----------- ----------- Net additional shares issuable 173,313 168,863 =========== =========== Adjustment of shares outstanding: Weighted average common shares outstanding 8,299,702 8,292,906 Net additional shares issuable 173,313 168,863 ----------- ----------- Adjusted shares outstanding (B) 8,473,015 8,461,769 =========== =========== Net income per common share (A) divided by (B) $ 0.29 $ 0.52 =========== =========== DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED JUNE 30, 1997 Three Months Six Months - ------------------------------------------------------------- ----------- ----------- Actual net income (A) $ 2,092,690 $ 3,376,933 =========== =========== Assumed exercise of stock options and warrants 451,358 451,358 Application of assumed proceeds ($2,193,626 and $2,224,938) toward repurchase of outstanding common stock at an average market price of $6.896 and $6.365, respectively. (318,101) (349,558) ----------- ----------- Net additional shares issuable 133,257 101,800 =========== =========== Adjustment of shares outstanding: Weighted average common shares outstanding 8,147,492 8,137,037 Net additional shares issuable 133,257 101,800 ----------- ----------- Adjusted shares outstanding (B) 8,280,749 8,238,837 =========== =========== Net income per common share (A) divided by (B) $ 0.25 $ 0.41 =========== ===========