EXHIBIT 11 CHANCELLOR CORPORATION AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE The following table reflects the calculation of the earnings per share: Income Weighted Average Common Shares Outstanding (numerator) (denominator) in thousands, except share and per share data Quarter ended September 30, 1999: Earnings from operations $ 266 53,530,730 ============ ========================== Basic earnings per common share $0.00 Effect of dilutive securities- Convertible preferred shares - - - 5,000,000 Vested Employee Options - - - 1,412,821 ------------ -------------------------- $ 266 59,943,551 ============ ========================== Diluted earnings per common share $0.00 Quarter ended September 30,1998: Earnings from operations $ 141 38,472,679 ============ ========================== Basic earnings per common share $0.00 Effect of dilutive securities- Convertible preferred shares - - - 5,000,000 Warrant - VCC - - - 8,760,000 Vested Employee Options - - - 1,000,000 ------------ -------------------------- $ 141 53,232,679 ============ ========================== Diluted earnings per common share $0.00 Year to date ended September 30, 1999: Earnings from operations $ 558 48,381,553 ============ ========================== Basic earnings per common share $0.01 Effect of dilutive securities- Convertible preferred shares - - - 5,000,000 Warrant - VCC - - - 2,323,232 Vested Employee Options - - - 1,475,608 ------------ -------------------------- $ 558 57,180,393 ============ ========================== Diluted earnings per common share $0.01 Year to date ended September 30, 1998: Earnings from operations $ 201 35,883,172 ============ ========================== Basic and diluted earnings per common share $0.01 Convertible preferred shares - - - 5,000,000 Warrant - VCC - - - 6,080,000 Vested Employee Options - - - 1,000,000 ------------ -------------------------- $ 201 47,963,172 ============ ========================== Diluted earnings per common share $0.00