1
Exhibit 11.1
MASSBANK CORP.
Earnings Per Share
The following is a calculation of earnings per share for the years ended
December 31, 1996, 1995 and 1994.
Years Ended December 31,
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Calculation of Primary Earnings per Share (1) 1996 1995 1994
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Average common shares outstanding 2,712,577 2,755,789 2,862,981
Shares assumed to be repurchased under
treasury stock method for stock options 76,385 79,823 80,746
Less: Unallocated Employee Stock Ownership
Plan ("ESOP") shares not committed to
be released (2) (45,082) (51,679) ( 60,413)
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Total Shares 2,743,880 2,783,933 2,883,314
Net Income $9,427,000 $8,759,000 $8,185,000
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Per Share Amount $3.44 $3.15 $2.84
Years Ended December 31,
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1996 1995 1994
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Calculation of Fully Diluted Earnings per Share (1)
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Average common shares outstanding 2,712,577 2,755,789 2,862,981
Shares assumed to be repurchased under
treasury stock method for stock options 78,521 101,985 82,790
Less: Unallocated Employee Stock Ownership
Plan ("ESOP") shares not committed
to be released (2) (45,082) (51,679) (60,413)
________ ________ _______
Total Shares 2,746,016 2,806,095 2,885,358
Net Income $9,427,000 $8,759,000 $8,185,000
---------- ---------- ----------
Per Share Amount $3.43 $3.12 $2.84
<FN>
(1) The prior years' shares outstanding and earnings per share amounts have been
restated to reflect the three-for-two stock split of September 9, 1994.
(2) The Company adopted the American Institute of Certified Public Accountants
("AICPA") Statement of Position ("SOP") 93-6 effective January 1, 1994.