1 EXHIBIT 11.1 CMAC INVESTMENT CORPORATION SCHEDULE OF NET INCOME PER SHARE QUARTER ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 --------------------------- ------------------------------- 1996 1995 1996 1995 ---- ---- ---- ---- (In thousands, except per-share amounts and market prices) Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,957 $13,028 $45,655 $36,871 Preferred stock dividend adjustment . . . . . . . . . . . . . . . (825) (825) (2,475) (2,475) ------- ------- ------- ------- Adjusted net income . . . . . . . . . . . . . . . . . . . . . . . $15,132 $12,203 $43,180 $34,396 Average dilutive stock options outstanding . . . . . . . . . . . 742.9 709.8 755.8 709.0 Average exercise price per share . . . . . . . . . . . . . . . . $ 28.71 $ 24.37 $ 28.33 $ 24.38 Average market prices - primary basis . . . . . . . . . . . . . . $ 60.26 $ 49.74 $ 55.93 $ 41.79 Average market price - fully diluted basis . . . . . . . . . . . $ 63.50 $ 52.63 $ 59.04 $ 44.90 Average common share outstanding . . . . . . . . . . . . . . . . 11,175 11,065 11,162 11,040 Increase in shares due to exercise of options - primary basis . . . . . . . . . . . . . . . . . . . . . . . . . 389 362 372 295 Increase in shares due to exercise of options - fully diluted basis . . . . . . . . . . . . . . . . . . . . . . 407 381 392 324 Adjusted shares outstanding - primary . . . . . . . . . . . . . . 11,564 11,427 11,534 11,335 Adjusted shares outstanding - fully diluted . . . . . . . . . . . 11,582 11,446 11,554 11,364 Net income per share - primary and fully diluted . . . . . . . . $ 1.31 $ 1.07 $ 3.74 $ 3.03 ======= ======= ======= ======= Net income per share after giving effect to two-for-one stock split - primary . . . . . . . . . . . . . . . $ 0.65 $ 0.53 $ 1.87 $ 1.52 ======= ======= ======= ======= Net income per share after giving effect to two-for-one stock split - fully diluted . . . . . . . . . . . . $ 0.65 $ 0.53 $ 1.87 $ 1.51 ======= ======= ======= =======