FIRST ALBANY COMPANIES INC. (Exhibit 11) COMPUTATION OF PER SHARE EARNINGS ====================================================================================== Three Months Ended Nine Months Ended (In thousands of dollars, September 26, September 27, September 26, September 27, except per share amounts) 1997 1996 1997 1996 - -------------------------------------------------------------------------------------- Primary: - -------------------------------------------------------------------------------------- Net income $ 606 $ 931 $ 1,167 $ 4,271 ====================================================================================== Weighted average number of shares outstanding during the period* 5,746 5,486 5,705 5,518 Incremental shares under stock options computed under the treasury stock method using the average market price of the issuer's stock during the period 682 408 508 418 - -------------------------------------------------------------------------------------- Weighted average shares and common equivalent shares outstanding 6,428 5,894 6,213 5,936 ====================================================================================== Net income per share $ 0.09 $ 0.16 $ 0.19 $ 0.72 ====================================================================================== Fully Diluted: - -------------------------------------------------------------------------------------- Net income $ 606 $ 931 $ 1,167 $ 4,271 ====================================================================================== Weighted average number of shares outstanding during the period* 5,746 5,486 5,705 5,519 Incremental shares under stock options computed under the treasury stock method using the higher of the average or ending market price of the issuer's stock at the end of the period 695 408 536 417 - -------------------------------------------------------------------------------------- Weighted average shares and common equivalent shares outstanding 6,441 5,894 6,241 5,936 ====================================================================================== Net income per share $ 0.09 $ 0.16 $ 0.19 $ 0.72 ====================================================================================== *Per share figures and shares outstanding have been restated for all dividends declared.