EX-11.1 3 fmbh-ex111x20171231.htm EXHIBIT 11.1 Exhibit


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, 2017, 2016 and 2015 are as follows (in thousands, except share data):

 
 
2017
 
2016
 
2015
Basic Net Income per Common Share
 
 
 
 
 
 
Available to Common Stockholders:
 
 
 
 
 
 
Net income
 
$
26,684,000

 
$
21,840,000

 
$
16,512,000

Preferred stock dividends
 

 
(825,000
)
 
(2,200,000
)
Net income available to common stockholders
 
26,684,000

 
21,015,000

 
14,312,000

Weighted average common shares outstanding
 
12,531,659
 
10,149,099
 
7,775,490
Basic earnings per common share
 
$
2.13

 
$
2.07

 
$
1.84

Diluted Net Income per Common Share
 
 
 
 
 
 
Available to Common Stockholders:
 
 
 
 
 
 
Net income available to common stockholders
 
$
26,684,000

 
$
21,015,000

 
$
14,312,000

Effect of assumed preferred stock conversion
 

 
825,000

 
2,200,000

Net income applicable to diluted earnings per share
 
26,684,000

 
21,840,000

 
16,512,000

Weighted average common shares outstanding
 
12,531,659

 
10,149,099

 
7,775,490

Dilutive potential common shares:
 
 
 
 
 
 
Assumed conversion of stock options
 
4,875

 
3,111

 

Restricted stock awarded
 

 
4,107

 
6,851

Assumed conversion of preferred stock
 

 
507,393

 
1,355,348

Dilutive potential common shares
 
4,875

 
514,611

 
1,362,199

Diluted weighted average common shares outstanding
 
12,536,534

 
10,663,710

 
9,137,689

Diluted earnings per common share
 
$
2.13

 
$
2.05

 
$
1.81




The following shares were not considered in computing diluted earnings per share for the years ended December 31, 2017, 2016 and 2015 because they were anti-dilutive:
 
 
2017
 
2016
 
2015
Stock options to purchase shares of common stock
 

 

 
45,500

Average dilutive potential common shares associated with convertible preferred stock