FORM 10-Q Exhibit 11.1 Litchfield Financial Corporation Computation of Earnings Per Share Three months ended Six months ended June 30, June 30, 1996 1995 1996 1995 Net Income........................................ $1,564,000 $ 975,000 $2,362,000 $1,345,000 Net income per common share....................... $ .27 $ .22 $ .41 $ .31 Weighted average number of common shares outstanding........................... 5,442,768 4,100,300 5,439,459 4,092,677 Weighted average number of common stock equivalents outstanding: Stock Options................................. 265,423 245,096 259,407 248,386 Fully diluted weighted average common and common equivalent shares outstanding (1).............................. 5,708,191 4,345,396 5,698,866 4,341,063 (1) Primary weighted average number of common stock equivalents were 5,708,191 and 5,672,99 for the three and six months ended June 30, 1996 and 5,669,006 and 4,248,291 for the three and six months ended June 30, 1995, respectively. The difference between primary and fully diluted shares outstanding did not have a material effect on the calculation of earnings per share.