Exhibit 11
HMN Financial, Inc.
Computation of Earnings Per Common Share



                                     Three Months Ended March 31,  
                                    -----------------------------
Computation of Earnings 
 Per Common Share:                      1998             1997   
                                    -----------------------------
Weighted average number of common 
 shares outstanding used in basic 
 earnings per common share 
 calculation . . . . . . . . . . . .    5,447,501      5,550,215     

Net dilutive effect of:
 Options . . . . . . . . . . . . . .      403,037        255,093     
 Restricted stock awards . . . . . .       61,395         83,507     
                                      -----------      ---------

Weighted average number of shares 
 outstanding adjusted for effect of 
 dilutive securities . . . . . . . .    5,911,933      5,888,815     
                                      ===========      =========

Income available to common shareholders$1,663,355      1,474,480     

Basic earnings per common share. . .        $0.37           0.27     

Diluted earnings per common share. .        $0.28           0.25