Litchfield Financial Corporation Computation of Earnings Per Share Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 1999 1998 1999 1998 ---- ---- ---- ---- Basic: Weighted average number of common shares outstanding........ 6,984,158 6,835,775 6,926,644 6,083,183 ========= ========= ========== ========= Net income.................... $510,000 $2,690,000 $5,995,000 $6,549,000 ======== ========== =========== ========= Net income per common share... $ .07 $ .39 $ .87 $ 1.08 ======== ========== =========== ========= Diluted: Weighted average number of common shares outstanding........ 6,984,158 6,835,775 6,926,644 6,083,183 Weighted average number of common stock equivalents outstanding: Stock options............... 317,850 323,106 300,643 349,238 ------- -------- -------- -------- Weighted average common and common equivalent shares outstanding................. 7,302,008 7,158,882 7,227,286 6,432,422 ========= ========== ========== ========== Net income.................... $510,000 $2,690,000 $5,995,000 $6,549,000 ======== ========= ========== ========== Net income per common share... $ .07 $ .38 $ .83 $ 1.02 ========= ========== ========== ===========