1 EXHIBIT 11.1 MIDLAND FINANCIAL GROUP, INC. AND SUBSIDIARIES STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE (In thousands except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 ---- ---- ---- ---- (as restated) Primary: Average Shares outstanding 5,547 5,386 5,547 5,364 Net effect of dilutive stock options and warrants - based on the treasury stock method using average market price -0- 85 -0- 94 -------- ------- ------- ------ Common and common equivalent shares $ 5,547 $ 5,471 $ 5,547 $5,458 ======== ======= ======= ====== Net income (loss) $ (1,727) $(5,723) $(2,487) $ (320) ======== ======= ======= ====== Fully diluted: Average share outstanding 5,547 5,386 5,547 5,364 Net effect of dilutive stock options and warrants - based on the treasury stock method using average market price -0- 85 -0- 94 -------- ------- ------- ------ Common and common equivalent shares 5,547 5,471 5,547 5,458 ======== ======= ======= ====== Net income (loss) $ (1,727) $(5,723) $(2,487) $ (320) ======== ======= ======= ====== Per share amount: Primary: $ (.31) $ (1.05) $ (.45) $ (.06) ======== ======= ======= ====== Fully diluted: $ (.31) $ (1.05) $ (.45) $ (.06) ======== ======= ======= ====== 12