EXHIBIT 11.1 MASSBANK CORP. Earnings Per Share The following is a calculation of earnings per share for the three and six months ended June 30, 2000 and 1999. Three Months Ended Six Months Ended Calculation of Basic June 30, June 30, Earnings Per Share 2000 1999 2000 1999 ______________________________ ____ ____ ____ ____ Net Income $2,717,000 $2,866,000 $5,545,000 $5,779,000 _________ _________ _________ _________ Average common shares outstanding 3,255,432 3,414,996 3,272,478 3,450,346 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (26,400) (35,200) (26,400) (35,200) __________ _________ __________ ________ Weighted average shares outstanding 3,229,032 3,379,796 3,246,078 3,415,146 _________ _________ _________ _________ Earnings per share (in dollars) $ 0.84 $ 0.85 $ 1.71 $ 1.69 _________ _________ _________ _________ Three Months Ended Six Months Ended Calculation of Diluted June 30, June 30, Earnings Per Share 2000 1999 2000 1999 ______________________________ ____ ____ ____ ____ Net Income $2,717,000 $2,866,000 $5,545,000 $5,779,000 _________ _________ _________ _________ Average common shares outstanding 3,255,432 3,414,996 3,272,478 3,450,346 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (26,400) (35,200) (26,400) (35,200) Diluted stock options 75,872 115,822 75,054 116,121 _________ _________ _________ _______ Weighted average shares outstanding 3,304,904 3,495,618 3,321,132 3,531,267 _________ _________ _________ _________ Earnings per share (in dollars) $ 0.82 $ 0.82 $ 1.67 $ 1.64 _________ __________ __________ __________