EXHIBIT 11.1 MASSBANK CORP. Earnings Per Share The following is a calculation of earnings per share for the three months ended March 31, 1997 and 1996. Three Months Ended Calculation of Primary March 31, Earnings Per Share 1997 1996 ______________________________ __________ __________ Average common shares outstanding 2,686,936 2,749,005 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (39,600) (46,200) Shares assumed to be repurchased under treasury stock method for stock options 87,818 80,621 __________ _________ Total Shares 2,735,154 2,783,426 __________ _________ Net Income $2,473,000 $2,223,000 __________ __________ Per Share Amount $ 0.90 $ 0.80 __________ __________ Three Months Ended Calculation of Fully Diluted March 31, Earnings Per Share 1997 1996 ______________________________ __________ __________ Average common shares outstanding 2,686,936 2,749,005 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (39,600) (46,200) Shares assumed to be repurchased under treasury stock method for stock options 89,383 81,649 __________ __________ Total Shares 2,736,719 2,784,454 __________ __________ Net Income $2,473,000 $2,223,000 __________ __________ Per Share Amount $ 0.90 $ 0.80 __________ __________