8-K

               SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC  20549



 
                            FORM 8-K



                         CURRENT REPORT



             Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934



        Date of Report (Date of earliest event reported)
                          June 27, 1996




                         HMN FINANCIAL, INC.                      
      (Exact name of Registrant as specified in its Charter)


                                                        
  DELAWARE                    0-24100                41-1777397  
(State or other         (Commission File No.)      (IRS Employer
 jurisdiction of                                   Identification
 incorporation)                                        Number)




101 NORTH BROADWAY, SPRING VALLEY, MINNESOTA              55975  
(Address of principal executive offices)               (Zip Code)




Registrant's telephone number, including area code: (507) 346-7345




                               N/A
_________________________________________________________________
  (Former name or former address, if changed since last report)

Item 5.  Other Events

     On June 27, 1996 the Registrant issued the attached press
     release announcing a stock repurchase program.

Item 7.  Financial Statements and Exhibits

     (a)  Exhibits

          99.  Press release, dated June 27, 1996.


                           SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned thereunto duly authorized.

                                   HMN FINANCIAL, INC.


Date: June 27, 1996           By:   /s/ Roger P. Weise           
                                   Roger P. Weise, Chairman 
                                   and Chief Executive Officer



                             Exhibit 99

EX-99

[graphic of open winged eagle]

HMN FINANCIAL, INC.
101 North Broadway, P.O. Box 231, Spring Valley, MN 55975-0231,
Phone (507) 346-7345, FAX (507) 346-1111




                          NEWS RELEASE

For Immediate Release

June 27, 1996

For Additional Information Contact:
     James B. Gardner, Executive Vice President
     HMN Financial, Inc.
     (507) 346-7345

HMN FINANCIAL, INC. ANNOUNCES STOCK REPURCHASE PROGRAM
- -------------------------------------------------------

     SPRING VALLEY, MINNESOTA, June 27, 1996 ... HMN  Financial,
Inc., (HMN) (NASDAQ:HMNF) announced its intention today to
repurchase up to 5%, or 246,060 shares, of its outstanding shares
in the open market over the next 12 month period.  The shares
will be purchased at prevailing market prices from time to time,
depending upon market conditions.

     Roger P. Weise, Chairman and Chief Executive Officer of HMN,
indicated that the Board of Directors approved the repurchase
program in view of the current price level of HMN's common stock. 
Mr. Weise stated that "we believe that the repurchase of our 
shares continues to represent an attractive investment opportunity 
which will benefit HMN and our stockholders.  The repurchased
shares will become treasury shares and will be used for general
corporate purposes, including the issuance of shares in
connection with the exercise of stock options".

     The repurchase program will be executed through previously
selected and approved brokers.

     Over the past three months, the shares traded in a range
between $14.625 and $16.125.  At May 31, 1996, HMN had $551.6
million in assets and stockholders' equity of $87.1 million.  On
June 27, 1996 HMN had 4,921,200 common stock shares outstanding.  
 
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