Exhibit 11.1 ------------ SLADE'S FERRY BANCORP. AND SUBSIDIARY COMPUTATION OF PER SHARE EARNINGS (Unaudited) Six Months Ended Three Months Ended June 30, June 30, ------------------------ --------------------- (Dollars in thousands, except for per share data) 2005 2004 2005 2004 - ------------------------------------------------------------------------------------------------------ <s> <c> <c> <c> <c> Net income $ 1,948 $ 1,210 $ 848 $ 625 ========== ========== ========== ========== Average shares outstanding 4,094,939 4,028,706 4,112,969 4,044,758 ========== ========== ========== ========== Basic earnings per share $ 0.48 $ 0.30 $ 0.21 $ 0.15 ========== ========== ========== ========== Average shares outstanding 4,094,939 4,028,706 4,112,969 4,044,758 Net effect dilutive stock options 28,857 48,500 19,743 43,410 ---------- ---------- ---------- ---------- Adjusted shares outstanding 4,123,796 4,077,206 4,132,712 4,088,168 ========== ========== ========== ========== Diluted earnings per share $ 0.47 $ 0.30 $ 0.21 $ 0.15 ========== ========== ========== ========== 36