diff --git a/autoload/gitgutter/diff_highlight.vim b/autoload/gitgutter/diff_highlight.vim
index 4851058..7bd48e0 100644
--- a/autoload/gitgutter/diff_highlight.vim
+++ b/autoload/gitgutter/diff_highlight.vim
@@ -135,11 +135,11 @@ function! s:lcs(s1, s2)
 
   for i in range(1, len(a:s1))
     for j in range(1, len(a:s2))
-      if a:s1[i] ==# a:s2[j]
+      if a:s1[i-1] ==# a:s2[j-1]
         let matrix[i][j] = 1 + matrix[i-1][j-1]
         if matrix[i][j] > maxlength
           let maxlength = matrix[i][j]
-          let endindex = i
+          let endindex = i - 1
         endif
       endif
     endfor
diff --git a/test/test_gitgutter.vim b/test/test_gitgutter.vim
index 5dd313f..a65e0f1 100644
--- a/test/test_gitgutter.vim
+++ b/test/test_gitgutter.vim
@@ -1026,4 +1026,5 @@ function Test_lcs()
   call assert_equal('', gitgutter#diff_highlight#lcs('', 'foo'))
   call assert_equal('', gitgutter#diff_highlight#lcs('foo', ''))
   call assert_equal('bar', gitgutter#diff_highlight#lcs('foobarbaz', 'bbart'))
+  call assert_equal('transaction', gitgutter#diff_highlight#lcs('transaction.unexplained_amount', 'amount(transaction)'))
 endfunction