Exhibit 11 - Computation of Earnings Per Common Share HMN Financial, Inc. Computation of Earnings Per Common Share (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ------------------------- ----------------------- Computation of Earnings Per Common Share: 1998 1997 1998 1997 ------------------------- ----------------------- Weighted average number of common shares out- standing used in basic earnings per common share calculation 5,051,205 5,513,223 5,248,262 5,531,618 Net dilutive effect of: Options 379,759 277,298 391,398 266,195 Restricted stock awards 54,197 79,611 57,773 81,548 --------- --------- --------- --------- Weighted average number of shares outstanding adjusted for effect of dilutive securities 5,485,161 5,870,132 5,697,433 5,879,361 ========= ========= ========= ========= Income available to common shareholders $ 784,030 1,332,220 2,447,385 2,806,700 Basic earnings per common share $ 0.16 0.24 0.47 0.51 Diluted earnings per common share $ 0.14 0.23 0.43 0.48 The earnings per share calculations reflected above are presented as if the split had been completed at the beginning of each period presented for the weighted average number of shares outstanding for each period.