<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION ETRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AT SEPTEMBER 30, 1997 AND DECEMBER 31, 1996 AND
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 1997 AND 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000921183
<NAME> HMN FINANCIAL INC
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                           2,156
<INT-BEARING-DEPOSITS>                           7,480
<FED-FUNDS-SOLD>                                     0
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                          0
<INVESTMENTS-CARRYING>                               0
<INVESTMENTS-MARKET>                                 0
<LOANS>                                        357,569
<ALLOWANCE>                                      2,554
<TOTAL-ASSETS>                                 568,847
<DEPOSITS>                                     366,682
<SHORT-TERM>                                    43,429
<LIABILITIES-OTHER>                              5,539
<LONG-TERM>                                     68,578
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            61
<OTHER-SE>                                      84,558
<TOTAL-LIABILITIES-AND-EQUITY>                 568,847
<INTEREST-LOAN>                                 20,730
<INTEREST-INVEST>                                9,125
<INTEREST-OTHER>                                   529
<INTEREST-TOTAL>                                30,384
<INTEREST-DEPOSIT>                              13,993
<INTEREST-EXPENSE>                              18,786
<INTEREST-INCOME-NET>                           11,598
<LOAN-LOSSES>                                      225
<SECURITIES-GAINS>                                 872
<EXPENSE-OTHER>                                  6,470
<INCOME-PRETAX>                                  6,885
<INCOME-PRE-EXTRAORDINARY>                           0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     4,331
<EPS-PRIMARY>                                     1.10
<EPS-DILUTED>                                     1.09
<YIELD-ACTUAL>                                    7.43
<LOANS-NON>                                        455
<LOANS-PAST>                                       178
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                    118
<ALLOWANCE-OPEN>                                 2,341
<CHARGE-OFFS>                                       20
<RECOVERIES>                                         7
<ALLOWANCE-CLOSE>                                2,554
<ALLOWANCE-DOMESTIC>                             1,336
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                          1,218