COLLECTIVE BANCORP, INC. COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK Three Months Ended Nine Months Ended March 31 March 31 PRIMARY 1996 1995 1996 1995 ---------------------------------- ------------------------------- EARNINGS: Net income $13,523,486 $12,950,190 $39,841,366 $43,916,721 ================================== =============================== SHARES: Weighted average number of common shares outstanding 20,185,571 20,292,000 20,162,006 20,277,000 Assuming exercise of options reduced by the number of shares which could have been purchased with the proceeds from exercise of such options (1) 272,182 271,121 284,511 290,836 ---------------------------------- ------------------------------- Weighted average number of common shares outstanding as adjusted 20,457,753 20,563,121 20,446,517 20,567,836 ================================== =============================== Primary earnings per share of common stock $0.66 $0.63 $1.95 $2.14 ================================== =============================== ASSUMING FULL DILUTION EARNINGS: Net income $13,523,486 $12,950,190 $39,841,366 $43,916,721 ================================== =============================== SHARES: Weighted average number of common shares outstanding 20,185,571 20,292,000 20,162,006 20,277,000 Assuming exercise of options reduced by the number of shares which could have been purchased with the proceeds from exercise of such options (2) 272,209 271,121 286,797 290,836 ---------------------------------- ------------------------------- Weighted average number of common shares outstanding as adjusted 20,457,780 20,563,121 20,448,803 20,567,836 ================================== =============================== Primary earnings per share of common stock $0.66 $0.63 $1.95 $2.14 ================================== =============================== <FN> (1) Assumes the proceeds obtained from the exercise of options were used to purchase common shares at the average market price during the quarter. (2) Assumes the proceeds obtained from the exercise of stock options were used to purchase common shares at the market price at the close of the quarter if such price was higher than the average price during the quarter. </FN>