IRWIN FINANCIAL CORP - IFC Annual Report (10-K) EXHIBIT 11.1

Exhibit 11 (a)

IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES

EXHIBIT 11(a) — COMPUTATION OF EARNINGS PER SHARE


Year Ended December 31,	2003		2002		2001
Average number of shares outstanding		27,915		26,829		21,175

Net income before cumulative effect of change in accounting principle	$	72,817	$	52,833	$	45,341

Basic earnings per share before cumulative effect of change in accounting principle	$	2.61	$	1.97	$	2.14

Cumulative effect of change in accounting principle		—	$	495	$	175

Net income	$	72,817	$	53,328	$	45,516

Basic earnings per share	$	2.61	$	1.99	$	2.15

Diluted shares outstanding
Average number of shares outstanding		27,915		26,829		21,175
Assumed conversion of preferred shares (Note 1)		2,610		2,610		2,610
Assumed conversion of convertible trust preferred shares (Note 1)		—		72		96
Assumed exercise of stock options (Note 2)		325		164		292

Total shares		30,850		29,675		24,173

Net income	$	72,817	$	52,833	$	45,341
Add back interest on convertible shares (Note 1)		2,715		2,801		2,801

Net income before cumulative effect of change in accounting principle	$	75,532	$	55,634	$	48,142

Diluted earnings per share before cumulative effect of change in accounting principle	$	2.45	$	1.87	$	1.99

Cumulative effect of change in accounting principle		—		495		175

Net income	$	75,532	$	56,129	$	48,317

Diluted earnings per share	$	2.45	$	1.89	$	2.00

(1)		The dilutive effect of convertible shares is based on the if converted method.

(2)		The dilutive effect of stock options is based on the Treasury Stock method.