16 BALDWIN & Lyons, Inc. FORM 10-Q, EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 --------------------------------- ----------------------------------- 2005 2004 2005 2004 --------------- -------------- ---------------- --------------- BASIC: Average number of shares outstanding 14,728,235 14,624,295 14,726,036 14,613,915 =============== ============== ================ =============== Net Income $7,472,489 $8,864,106 $17,818,963 $ 19,763,180 =============== ============== ================ =============== Per share amount $ .51 $ .61 $ 1.21 $ 1.35 =============== ============== ================ =============== DILUTED: Average number of shares outstanding 14,728,235 14,624,295 14,726,036 14,613,915 Dilutive stock options--based on treasury stock method using average market price 102,683 170,893 109,506 188,587 --------------- -------------- ---------------- --------------- Totals 14,830,918 14,795,188 14,835,542 14,802,502 =============== ============== ================ =============== Net Income $7,472,489 $8,864,106 $17,818,963 $ 19,763,180 =============== ============== ================ =============== Per share amount $ .50 $ .60 $ 1.20 $ 1.34 =============== ============== ================ ===============