EXHIBIT 1 MASSBANK CORP. Earnings Per Share The following is a calculation of earnings per share for the three months and six months ended June 30, 1995 and 1994. Three Months Ended Six Months Ended Calculation of Primary June 30, June 30, Earnings Per Share 1995 1994* 1995 1994* ______________________________ ____ ____ ____ ____ Average common shares outstanding 2,767,811 2,836,282 2,776,176 2,879,568 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (52,800) (62,979) (52,800) (62,979) Shares assumed to be repurchased under treasury stock method of stock options 74,229 82,469 69,828 83,775 _______ _______ _______ _______ Total Shares 2,789,240 2,855,772 2,793,204 2,900,364 __________ __________ _________ _________ Net Income $2,169,000 $2,094,000 $4,295,000 $3,879,000 __________ __________ __________ __________ Per Share Amount $ 0.78 $ 0.73 $ 1.54 $ 1.34 __________ __________ __________ __________ Three Months Ended Six Months Ended Calculation of Fully Diluted June 30, June 30, Earnings Per Share 1995 1994* 1995 1994* ______________________________ ____ ____ ____ ____ Average common shares outstanding 2,767,811 2,836,282 2,776,176 2,879,568 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (52,800) (62,979) (52,800) (62,979) Shares assumed to be repurchased under treasury stock method of stock options 78,660 94,325 72,376 90,062 ________ _______ _______ _______ Total Shares 2,793,671 2,867,628 2,795,752 2,906,651 _________ _________ _________ _________ Net Income $2,169,000 $2,094,000 $4,295,000 $3,879,000 __________ __________ __________ __________ Per Share Amount $ 0.78 $ 0.73 $ 1.54 $ 1.34 <FN> * Prior year total shares outstanding and earnings per share amounts have been restated to reflect the three-for-two stock split of September, 1994 to permit comparison with the current fiscal year.