Exhibit No.11.1
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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 Nine months ended
September 30 September 30
1997 1996 1997 1996
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Primary Average common shares outstanding 6,592 6,722 6,634 6,651
Common stock equivalents * 335 382 351 381
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Primary common shares outstanding 6,927 7,104 6,985 7,032
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Net income $45,891 35,871 129,941 110,683
Less: Cash dividends on preferred stock -- -- -- 900
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Net income available to common shareholders $45,891 35,871 129,941 109,783
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Earnings per common share --primary $ 6.62 5.05 18.60 15.61
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Fully diluted Average common shares outstanding 6,592 6,722 6,634 6,651
Common stock equivalents * 390 384 390 391
Assumed conversion of 9% convertible
preferred stock -- -- -- 163
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Fully diluted average common shares
outstanding 6,982 7,106 7,024 7,205
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Net income $45,891 35,871 129,941 110,683
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Earnings per common share - fully diluted $ 6.57 5.05 18.50 15.36
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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.