Exhibit 11
E'TOWN CORPORATION AND SUSIDIARY
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
Three Months Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1997 1996 1997 1996 1997 1996
PRIMARY
EARNINGS
Income Before Preferred Stock
Dividends of Subsidiary $ 4,608 $ 4,121 $ 8,281 $ 7,501 $ 16,666 $ 16,013
Deduct: Preferred Stock Dividends (203) (203) (406) (406) (812) (812)
------------------------------------------------------
Net Income Available for Common Stock $ 4,405 $ 3,918 $ 7,875 $ 7,095 $ 15,854 $ 15,201
======================================================
SHARES
Weighted Average Number of Common Shares 7,884 7,639 7,808 7,604 7,770 7,532
Outstanding Assuming Exercise of Options
Reduced By the Number of Shares Which
Could Have Been Purchased From Exercise
of Such Options 31 2 64 4 36 4
Weighted Average Number of Common Shares -----------------------------------------------------
Outstanding As Adjusted 7,915 7,641 7,872 7,608 7,806 7,536
------------------------------------------------------
Primary Earnings Per Share of Common Stock $ .56 $ .51 $ 1.00 $ .93 $ 2.03 $ 2.02
======================================================
ASSUMING FULL DILUTION
EARNINGS
Income Before Preferred Stock Dividends
of Subsidiary $ 4,608 $ 4,121 $ 8,281 $ 7,501 $ 16,666 $ 16,013
Deduct: Preferred Stock Dividends (203) (203) (406) (406) (812) (812)
Add: After Tax Interest Expense Applicable
to 6 3/4% Convertible Subordinated
Debentures 125 128 249 257 505 519
-----------------------------------------------------
Adjusted Net Income $ 4,530 $ 4,046 $ 8,124 $ 7,352 $ 16,359 $ 15,720
======================================================
SHARES
Weighted Average Number of Common Shares 7,884 7,639 7,808 7,604 7,770 7,532
Outstanding Assuming Exercise of Options
Reduced By the Number Of Shares Which
Could Have Been Purchased With the
Proceeds From Exercise of Such Options 31 2 64 4 36 4
Assuming Conversion Of 6 3/4% Convertible
Subordinated Debentures (a) 285 294 286 293 288 295
-----------------------------------------------------
Weighted Average Number of Common Shares --
Outstanding as Adjusted 8,200 7,935 8,158 7,901 8,094 7,831
------------------------------------------------------
Fully Diluted Earnings Per Share
of Common Stock $ .55 $ .51 $ 1.00 $ .93 $ 2.02 $ 2.01
======================================================
<FN>
(a) Convertible at $40 per share.
</FN>