EXHIBIT 11 HMN FINANCIAL, INC. COMPUTATION OF EARNINGS PER COMMON SHARE Year Ended December 31, -------------------------------------------- Computation of Earnings Per Common Share: 1998 1997 1996 -------------------------------------------- Weighted average number of common shares out- standing used in basic earnings per common share calculation............................................ 4,923,392 5,525,033 6,473,115 Net dilutive effect of: Options...................................................... 323,593 314,082 82,257 Restricted stock awards...................................... 51,141 76,151 100,505 ---------- ----------- ---------- Weighted average number of shares outstanding adjusted for effect of dilutive securities .................. 5,298,126 5,915,266 6,655,877 ---------- ----------- ---------- ---------- ----------- ---------- Income available to common shareholders ..................... $ 4,057,680 5,578,866 4,274,349 Basic earnings per common share............................... $ 0.82 1.01 0.66 Diluted earnings per common share............................. $ 0.77 0.94 0.64