EXHIBIT 11
Redwood Empire Bancorp
EARNINGS PER COMMON SHARE
The Company adopted SFAS No. 128, EARNINGS PER SHARE. This statement replaces
previous standards for reporting earnings per share with basic and diluted
earnings per share. All earnings per share information has been restated to
give effect to the new standards. Basic earnings per share excludes dilution
and is computed by dividing income available to common shareholders by the
weighted-average number of common shares outstanding for the period. Diluted
earnings per share reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that then shared
in the earnings of the entity.
The following table reconciles the numerator and denominator used in computing
both basic earnings (loss) per share and diluted earnings (loss) per share for
the periods indicated:
Year Ended December 31,
1997 1996 1995
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(in thousands except per share amounts)
BASIC EARNINGS (LOSS) PER SHARE:
Net income (loss) $3,441 ($1,486) $3,313
Less: Preferred stock dividend 449 449 336
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Net income (loss) available to common stock shareholders $2,992 ($1,935) $2,977
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Weighted average common shares outstanding 2,776 2,721 2,671
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Basic earnings (loss) per share $1.08 ($0.71) $1.11
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DILUTED EARNINGS (LOSS) PER SHARE:
Net income (loss) available to common stock shareholders $2,992 ($1,935) $2,977
Dilutive effect of Preferred Stock dividend 449 --- 336
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$3,441 ($1,935) $3,313
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Weighted average common shares outstanding 2,776 2,721 2,671
Effect of outstanding stock options 103 --- 9
Effect of Convertible Preferred Stock 499 --- 499
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3,378 2,721 3,179
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Diluted earnings (loss) per share $1.02 ($0.71) $1.04
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