EXHIBIT 11.1 MASSBANK CORP. Earnings Per Share The following is a calculation of earnings per share for the three months and six months ended June 30, 1996 and 1995. Three Months Ended Six Months Ended Calculation of Primary June 30, June 30, Earnings Per Share 1996 1995 1996 1995 ______________________________ ____ ____ ____ ____ Average common shares outstanding 2,726,564 2,767,811 2,737,785 2,776,176 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (46,200) (52,800) (46,200) (52,800) Shares assumed to be repurchased under treasury stock method for stock options 74,097 74,229 77,359 69,828 _______ _______ _______ _______ Total Shares 2,754,461 2,789,240 2,768,944 2,793,204 __________ __________ _________ _________ Net Income $2,370,000 $2,169,000 $4,593,000 $4,295,000 __________ __________ __________ __________ Per Share Amount $ 0.86 $ 0.78 $ 1.66 $ 1.54 __________ __________ __________ __________ Three Months Ended Six Months Ended Calculation of Fully Diluted June 30, June 30, Earnings Per Share 1996 1995 1996 1995 ______________________________ ____ ____ ____ ____ Average common shares outstanding 2,726,564 2,767,811 2,737,785 2,776,176 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (46,200) (52,800) (46,200) (52,800) Shares assumed to be repurchased under treasury stock method for stock options 74,097 78,660 77,873 72,376 ________ _______ _______ _______ Total Shares 2,754,461 2,793,671 2,769,458 2,795,752 _________ _________ _________ _________ Net Income $2,370,000 $2,169,000 $4,593,000 $4,295,000 __________ __________ __________ __________ Per Share Amount $ 0.86 $ 0.78 $ 1.66 $ 1.54