Exhibit 11 Statement Re: Computation of per share earnings Exhibit 11 HMN Financial, Inc. Computation of Earnings Per Common Share Year Ended December 31, 1996 1995 ------------ ----------- Computation of Earnings Per Common Share for Statements of Operations: Net income............................................................ $ 4,274,349 5,620,377 ----------- ----------- Weighted average number of common and common share equivalents: Weighted average common shares outstanding.......................... 4,381,937 5,152,320 Dilutive effect of stock option plans after application of treasury stock method....................................................... 54,896 19,062 ----------- ----------- 4,436,833 5,171,382 ----------- ----------- Earnings per common share and common share equivalent................. $0.96 1.09 ----------- ----------- ----------- ----------- Computation of Fully Diluted Earnings Per Common Share and Common Share Equivalent: (1) Net income............................................................ $ 4,274,349 5,620,377 ----------- ----------- Weighted average number of common and common share equivalents: Weighted average common shares outstanding.......................... 4,381,937 5,152,320 Dilutive effect of stock option plans after application of treasury stock method............................................. 127,629 74,968 ----------- ----------- 4,509,566 5,227,288 ----------- ----------- Earnings per common share and common share equivalent $ 0.95 1.08 ----------- ----------- ----------- ----------- (1) This calculation is submitted in accordance with Regulation S-K Item 601(b)(11) although not required by footnote 2 of paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%.