EXHIBIT 11.1 MASSBANK CORP. Earnings Per Share The following is a calculation of earnings per share for the three and and six months ended June 30, 1998 and 1997. Three Months Ended Six Months Ended Calculation of Basic June 30, June 30, Earnings Per Share 1998 1997 1998 1997 ______________________________ ____ ____ ____ ____ Net Income $2,706,000 $2,449,000 $5,540,000 $4,922,000 _________ _________ _________ _________ Average common shares outstanding 3,590,194 3,581,533 3,584,456 3,582,054 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (44,000) (52,800) (44,000) (52,800) __________ _________ __________ ________ Weighted average shares outstanding 3,546,194 3,528,733 3,540,456 3,529,254 _________ _________ _________ _________ Earnings per share (in dollars) $ 0.76 $ 0.69 $ 1.56 $ 1.39 _________ _________ _________ _________ Three Months Ended Six Months Ended Calculation of Diluted June 30, June 30, Earnings Per Share 1998 1997 1998 1997 ______________________________ ____ ____ ____ ____ Net Income $2,706,000 $2,449,000 $5,540,000 $4,922,000 _________ _________ _________ _________ Average common shares outstanding 3,590,194 3,581,533 3,584,456 3,582,054 Less: Unallocated Employee Stock Ownership Plan (ESOP) shares not committed to be released (44,900) (52,800) (44,000) (52,800) Diluted stock options 162,507 123,836 162,220 120,478 _________ _________ _________ _______ Weighted average shares outstanding 3,708,701 3,652,569 3,702,676 3,649,732 _________ _________ _________ _________ Earnings per share (in dollars) $ 0.73 $ 0.67 $ 1.50 $ 1.35 _________ __________ __________ __________