Exhibit 11.1 Litchfield Financial Corporation Computation of Earnings Per Share Three Months Ended Six Months Ended June 30, June 30, 1999 1998 1999 1998 --------- --------- --------- ----------- Basic: Weighted average number of common shares outstanding.... 6,908,145 5,754,018 6,897,411 5,706,887 ========== ========== ========== ========== Net income....................$3,207,000 $2,309,000 $5,485,000 $3,859,000 ========== ========== ========== ========== Net income per common share...$ .46 $ .40 $ .80 $ .68 ========== ========== ========== ========== Diluted: Weighted average number of common shares outstanding.... 6,908,145 5,754,018 6,897,411 5,706,887 Weighted average number of common stock equivalents outstanding: Stock options................ 278,326 363,814 292,077 362,277 ---------- --------- ---------- --------- Weighted average common and common equivalent shares outstanding................. 7,186,471 6,117,832 7,189,488 6,069,164 ========== ========== ========== ========== Net income....................$3,207,000 $2,309,000 $5,485,000 $3,859,000 ========== ========== ========== ========== Net income per common share...$ .45 $ .38 $ .76 $ .64 ========== ========== ========== ==========