<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 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 195518 <INVESTMENTS-CARRYING> 17342 <INVESTMENTS-MARKET> 17497 <LOANS> 309922 <ALLOWANCE> 2264 <TOTAL-ASSETS> 542012 <DEPOSITS> 368393 <SHORT-TERM> 38429 <LIABILITIES-OTHER> 10247 <LONG-TERM> 34064 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 61 <OTHER-SE> 90818 <TOTAL-LIABILITIES-AND-EQUITY> 542012 <INTEREST-LOAN> 6139 <INTEREST-INVEST> 3489 <INTEREST-OTHER> 167 <INTEREST-TOTAL> 9795 <INTEREST-DEPOSIT> 4818 <INTEREST-EXPENSE> 5880 <INTEREST-INCOME-NET> 3915 <LOAN-LOSSES> 75 <SECURITIES-GAINS> 501 <EXPENSE-OTHER> 1982 <INCOME-PRETAX> 2559 <INCOME-PRE-EXTRAORDINARY> 1587 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1587 <EPS-PRIMARY> 0.33 <EPS-DILUTED> 0.33 <YIELD-ACTUAL> 7.42 <LOANS-NON> 402 <LOANS-PAST> 0 <LOANS-TROUBLED> 64 <LOANS-PROBLEM> 242 <ALLOWANCE-OPEN> 2190 <CHARGE-OFFS> 1 <RECOVERIES> 0 <ALLOWANCE-CLOSE> 2264 <ALLOWANCE-DOMESTIC> 1122 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 1142