<PAGE>
MFN FINANCIAL CORPORATION
EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE
PERIODS ENDED JUNE 30, 2000
Basic earnings per share is computed by dividing net income by the weighted
average number of shares of the Company's common stock outstanding during the
period. Diluted earnings per share is computed based upon the weighted average
number of shares of common stock outstanding and the dilutive common share
equivalents outstanding during the period. Common stock equivalents include
options granted under the Company's stock option plan, options granted pursuant
to an employment agreement with the Company's Chief Executive Officer and
warrants outstanding convertible into shares of common stock of the Company
using the treasury stock method.
<TABLE>
<CAPTION>
Reorganized Company
---------------------------------------
Three Three Six
Months Months Months
Ended Ended Ended
June 30, June 30, June 30,
(Dollars in thousands, except per share data) 2000 1999 2000
--------------------------------------------- ---- ---- ----
<S> <C> <C> <C>
BASIC
Net income $ 6,495 $ 3,499 $ 12,759
Average common shares outstanding 10,000,003 10,000,000 10,000,003
Earnings per common share $ 0.65 $ 0.35 $ 1.28
DILUTED
Net income $ 6,495 $ 3,499 $ 12,759
Average common shares outstanding and common
share equivalents outstanding 10,000,003 10,222,410 10,004,296
Earnings per common share $ 0.65 $ 0.34 $ 1.28
</TABLE>
Due to the Company's emergence from the Voluntary Case and the implementation of
Fresh Start Reporting, the presentation of earnings per share for the
Predecessor Company is not meaningful.
34
