EXHIBIT (11) THE MIDLAND COMPANY AND SUBSIDIARIES EXHIBIT (11) - COMPUTATION OF CONSOLIDATED NET INCOME PER SHARE FOR THE YEARS DECEMBER 31, 1996, 1995 AND 1994 1996 1995 1994 ---------------------------------------- Net Income $ 1,068,000 $ 9,552,000 $ 9,419,000 ======================================== Weighted average number of voting shares outstanding 3,021,000 3,028,000 2,998,000 ======================================== Primary: Adjusted weighted average shares outstanding - after consideration of the dillutive effect of stock options and stock awards 3,033,000 3,072,000 3,050,000 ======================================== Per share - after consideration of the dillutive effect of stock options and stock awards (net income divided by adjusted weighted average shares outstanding) $ 0.35 $ 3.11 $ 3.09 ======================================== Fully diluted: Adjusted weighted average shares outstanding - after consideration of the dillutive effect of stock options and stock awards 3,040,000 3,084,000 3,066,000 ======================================== Per share - after consideration of the dillutive effect of stock options and stock awards (net income divided by adjusted shares outstanding) $ 0.35 $ 3.10 $ 3.07 ======================================== 14