<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 
CONSOLIDATED BALANCE SHEETS AT MARCH 31, 1996 AND DECEMBER 31, 1995 AND
CONDOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1996
AND 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL 
STATEMENTS.
</LEGEND>
<CIK>0000921183 
<NAME> HMN FINANCIAL INC
<MULTIPLIER> 1,000
       
                                      
<PERIOD-TYPE>                                 3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                            1323
<INT-BEARING-DEPOSITS>                            8053
<FED-FUNDS-SOLD>                                     0
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<INVESTMENTS-MARKET>                             17497
<LOANS>                                         309922
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<TOTAL-LIABILITIES-AND-EQUITY>                  542012
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<INTEREST-TOTAL>                                  9795
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<INTEREST-INCOME-NET>                             3915
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<EXPENSE-OTHER>                                   1982
<INCOME-PRETAX>                                   2559
<INCOME-PRE-EXTRAORDINARY>                        1587
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
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<EPS-PRIMARY>                                     0.33
<EPS-DILUTED>                                     0.33
<YIELD-ACTUAL>                                    7.42
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<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                           1142