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FIRST EMPIRE STATE CORPORATION AND SUBSIDIARIES
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COMPUTATION OF EARNINGS PER COMMON SHARE
Amounts in thousands, except per share Three months ended Six months ended
June 30 June 30
1996 1995 1996 1995
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Primary Average common shares outstanding 6,832 6,506 6,616 6,547
Common stock equivalents * 380 262 379 247
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Primary common shares outstanding 7,212 6,768 6,995 6,794
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Net income $38,659 31,454 74,812 58,622
Less: Cash dividends on preferred stock 0 900 900 1,800
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Net income available to common shareholders $38,659 30,554 73,912 56,822
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Earnings per common share - primary $ 5.36 4.51 10.56 8.36
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Fully diluted Average common shares outstanding 6,832 6,506 6,616 6,547
Common stock equivalents* 384 280 384 284
Assumed conversion of 9% convertible
preferred stock 0 507 245 507
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Fully diluted average common shares outstanding 7,216 7,293 7,245 7,338
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Net income $38,659 31,454 74,812 58,622
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Earnings per common share - fully diluted $ 5.36 4.31 10.32 7.99
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* Represents shares of First Empire's common stock issuable upon the
assumed exercise of outstanding stock options granted pursuant to the
First Empire State Corporation 1983 Stock Option Plan under the
"treasury stock" method of accounting.