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                                                                    EXHIBIT 11.1



                MIDLAND FINANCIAL GROUP, INC. AND SUBSIDIARIES
            STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
                   (In thousands except per share amounts)


<TABLE>
<CAPTION>
                                                     Three Months Ended          Nine Months Ended
                                                        September 30,              September 30,
                                                      1996         1995          1996         1995
                                                      ----         ----          ----         ----
<S>                                                 <C>          <C>           <C>           <C>
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                                                                                   
                                                    $ (3,905)    $(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                                          $ (3,905)    $(5,723)      $(2,487)      $ (320)
                                                    ========     =======       =======       ======

Per share amount:                                                                            
  Primary:                                          $   (.70)    $ (1.05)      $  (.45)      $ (.06)
                                                    ========     =======       =======       ======
  Fully diluted:                                    $   (.70)    $ (1.05)      $  (.45)      $ (.06)
                                                    ========     =======       =======       ======
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