<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AT JUNE 30, 1996 AND DECEMBER 31, 1995 AND
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED AND SIX MONTHS
ENDED JUNE 30, 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
<CURRENCY> U.S.DOLLARS
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               JUN-30-1996
<EXCHANGE-RATE>                                      1
<CASH>                                             828
<INT-BEARING-DEPOSITS>                            5115
<FED-FUNDS-SOLD>                                     0
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                     189147
<INVESTMENTS-CARRYING>                           14834
<INVESTMENTS-MARKET>                             14949
<LOANS>                                         333989
<ALLOWANCE>                                       2339
<TOTAL-ASSETS>                                  554979
<DEPOSITS>                                      363195
<SHORT-TERM>                                     64429
<LIABILITIES-OTHER>                               3469
<LONG-TERM>                                      36624
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            61
<OTHER-SE>                                       87202
<TOTAL-LIABILITIES-AND-EQUITY>                  554979
<INTEREST-LOAN>                                  12548
<INTEREST-INVEST>                                 6887
<INTEREST-OTHER>                                   304
<INTEREST-TOTAL>                                 19739
<INTEREST-DEPOSIT>                                9539
<INTEREST-EXPENSE>                               11829
<INTEREST-INCOME-NET>                             7910
<LOAN-LOSSES>                                      150
<SECURITIES-GAINS>                                 769
<EXPENSE-OTHER>                                   3967
<INCOME-PRETAX>                                   4980
<INCOME-PRE-EXTRAORDINARY>                        3120
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                      3120
<EPS-PRIMARY>                                      .67
<EPS-DILUTED>                                      .66
<YIELD-ACTUAL>                                    7.42
<LOANS-NON>                                        315
<LOANS-PAST>                                         0
<LOANS-TROUBLED>                                    35
<LOANS-PROBLEM>                                    189
<ALLOWANCE-OPEN>                                  2190
<CHARGE-OFFS>                                        1
<RECOVERIES>                                         0
<ALLOWANCE-CLOSE>                                 2339
<ALLOWANCE-DOMESTIC>                              1305
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                           1034