Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On January 28, 2009, Michael McNeil, who had served as President, Chief Executive Officer and a Director of HMN Financial, Inc. (the "Company") and as President, Chief Executive Officer and a Director of Home Federal Savings Bank (the "Bank"), the Company's wholly owned banking subsidiary, resigned from all positions with the Company and the Bank. Mr. McNeil will be eligible to receive severance pay and health insurance coverage through December 31, 2010, reduced by other earnings and benefits he has during such time period, in each case in accordance with his Employment Agreement dated May 27, 2008.

On January 29, 2009, the Company issued a press release announcing Mr. McNeil's resignation and that the Board of Directors of the Company and the Bank had appointed Bradley C. Krehbiel as President of the Bank. Mr. Krehbiel, 50, has served as Executive Vice President of the Bank since 2004. He first joined the Bank as Vice President of Business Banking in 1998. Prior to joining the Bank, he held several positions in the financial services industry, including six years as a private banking consultant.

A copy of the press release is furnished as Exhibit 99 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit Number Description

99 Press release dated January 29, 2009

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