EXHIBIT 11.1 HEADLANDS MORTGAGE COMPANY STATEMENT RE COMPUTATION OF PRO FORMA PER SHARE EARNINGS FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 1997 31, 1996 ----------- ----------- Primary and fully diluted pro forma income per share: Net income available to common Stockholders $17,344,959 $17,659,600 =========== =========== Weighted average shares outstanding(1)....... 14,345,333 14,345,333 Pro forma net income per share............... $1.21 $1.23 =========== =========== - -------- (1) Options have been considered to be outstanding for all periods presented and an estimated initial offering of $15.00 per share and an assumed option exercise price of $5.00 per share (pending receipt of appraised value) has been used in applying the treasury stock method, including periods where the impact of incremental shares is anti-dilutive.