COMMUNITY BANK SYSTEM, INC. Statement re: Earnings Per Share Computation Exhibit 11 Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 Primary Earnings Per Share Net Income $3,792,234 $3,030,510 $10,455,053 $8,353,018 Less: Accured Dividend on Preferred Stock (101,250) (202,500) (303,750) (202,500) Income applicable to common stock $3,690,984 $2,828,010 $10,151,303 $8,150,518 Weighted average number of common shares 3,687,881 3,646,104 3,695,147 3,077,915 Add: Shares issuable from assumed exercise of incentive stock options 36,542 40,953 32,782 30,474 Weighted average number of common shares - adjusted 3,724,423 3,687,057 3,727,929 3,108,389 Primary Earnings Per Share $0.99 $0.77 $2.72 $2.62 Fully diluted Earnings Per Share Net Income $3,690,984 $2,828,010 $10,151,303 $8,150,518 Weighted average number of common shares - adjusted 3,724,423 3,687,057 3,727,929 3,108,389 Add: Equivalent number of common shares assumijng conversion of preferred 0 0 0 0 Weighted average number of common shares - adjusted 3,724,423 3,687,057 3,727,929 3,108,389 Fully diluted earnings per share $0.99 $0.77 $2.72 $2.62