EXHIBIT 11
Redwood Empire Bancorp
EARNINGS PER COMMON SHARE
Earnings per common and common equivalent shares are computed by dividing net
income applicable to common stock by the total of the average number of common
shares outstanding and the additional dilutive effect of stock options
outstanding during the respective period. The dilutive effect of stock options
is computed using the average market price of the common stock for the period
for primary earnings per share.
Earnings per common share, assuming full dilution, are computed by dividing net
income by the average number of common shares outstanding during the period, the
dilutive effect of the Convertible Preferred Stock assuming conversion at the
time it was issued, and the additional dilutive effect of stock options
outstanding during the period. The dilutive effect of outstanding stock options
is computed using the greater of the closing market price or the average market
price of the common stock for the period.
Earnings per common share have been computed based on the following:
Year Ended December 31,
1996 1995 1994
------------------------------------------------
(in thousands)
Net (loss) income ($1,486) $3,313 ($3,035)
Dividends on preferred stock 449 336 448
------- ------ -------
Net (loss) income applicable to common stock ($1,935) $2,977 ($3,483)
------- ------ -------
------- ------ -------
Average number of common shares outstanding 2,721 2,671 2,649
Average number of common and common equivalent
shares outstanding 2,721 2,680 2,649
Average number of common shares outstanding -
assuming full dilution 2,721 3,179 2,649
Earnings per common and common equivalent share:
Primary net (loss) income per share ($.71) $1.11 ($1.31)
Fully diluted net (loss) income per share (.71) 1.04 (1.31)