FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * KOLLING SUSAN K   2. Issuer Name and Ticker or Trading Symbol HMN FINANCIAL INC [HMNF] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Senior Vice President (Last) (First) (Middle) 1016 CIVIC CENTER DRIVE 3. Date of Earliest Transaction (Month/Day/Year) 02/03/2006 (Street) ROCHESTER, MN 55901 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price COMMON STOCK 02/03/2006   S   1,000 D $ 32.11 41,318 (1) D   COMMON STOCK 02/03/2006   S   1,000 D $ 32.1 42,318 (1) D   COMMON STOCK               11,934 (2) I ESOP ALLOCATION COMMON STOCK               5,795 (3) I 401(k)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

OPTION TO BUY

$ 16.13

04/16/2011

04/15/2012

COMMON STOCK

2,990

2,990

D

OPTION TO BUY

$ 16.13

01/01/2012

04/15/2012

COMMON STOCK

6,199

9,189

D

OPTION TO BUY

$ 27.66

03/03/2005

03/03/2014

COMMON STOCK

1,260

1,260

D

OPTION TO BUY

$ 27.66

03/03/2006

03/03/2014

COMMON STOCK

1,260

2,520

D

OPTION TO BUY

$ 27.66

03/03/2007

03/03/2014

COMMON STOCK

1,260

3,780

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
KOLLING SUSAN K 1016 CIVIC CENTER DRIVE ROCHESTER, MN 55901	X		Senior Vice President

Signatures

JON EBERLE FOR SUSAN KOLLING, BY POWER OF ATTORNEY		03/02/2006
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Running total of shares following each sale.
(2)	Number of shares for ESOP holdings includes allocation for the year ended Dec 31, 2005.
(3)	Number of shares shown for 401(k) holdings reflects automatic purchases within the plan during 2005.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

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