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, 1997 and 1996. Three Months Ended Six Months Ended Calculation of Primary June 30, June 30, Earnings Per Share 1997 1996 1997 1996 ______________________________ ____ ____ ____ ____ Average common shares outstanding 2,686,150 2,726,564 2,686,541 2,737,785 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (39,600) (46,200) (39,600) (46,200) Shares assumed to be repurchased under treasury stock method for stock options 92,899 74,097 90,372 77,359 _______ _______ _______ _______ Total Shares 2,739,449 2,754,461 2,737,313 2,768,944 __________ __________ _________ _________ Net Income $2,449,000 $2,370,000 $4,922,000 $4,593,000 __________ __________ __________ __________ Per Share Amount $ 0.90 $ 0.86 $ 1.80 $ 1.66 __________ __________ __________ __________ Three Months Ended Six Months Ended Calculation of Fully Diluted June 30, June 30, Earnings Per Share 1997 1996 1997 1996 ______________________________ ____ ____ ____ ____ Average common shares outstanding 2,686,150 2,726,564 2,686,541 2,737,785 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (39,600) (46,200) (39,600) (46,200) Shares assumed to be repurchased under treasury stock method for stock options 106,122 74,097 97,799 77,873 ________ _______ _______ _______ Total Shares 2,752,672 2,754,461 2,744,740 2,769,458 _________ _________ _________ _________ Net Income $2,449,000 $2,370,000 $4,922,000 $4,593,000 __________ __________ __________ __________ Per Share Amount $ 0.89 $ 0.86 $ 1.79 $ 1.66