BEDFORD BANCSHARES, INC. AND SUBSIDIARY

                                  EXHIBIT 11

             STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE



                                             Three Months Ended         Nine Months Ended
                                                   June 30                   June 30
                                          ------------------------  ----------------------
                                             1995         1996         1995         1996
                                          -----------  -----------  -----------  ---------

                                                                           
Net Income.............................. $  360,000   $  424,104   $1,080,000   $1,176,899
                                          =========    =========    =========    =========

Primary and Fully Diluted:

Average Shares Outstanding, Net of ESOP   1,177,273    1,115,240    1,178,293    1,123,771
                                          =========    =========    =========    =========
Shares (78,667 and 68,749 at June 30, 
  1995 and 1996, respectively.).........

Per Share Amount........................ $      .31   $      .38   $      .92   $     1.05
                                          =========    =========    =========    =========




      Earnings  per share of common  stock for the three and nine  months  ended
June 30,  1995 and 1996 have been  determined  by  dividing  net  income for the
periods by the weighted average number of shares of common stock outstanding net
of ESOP shares.



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