<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