Ownership Submission
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 *
MCNEIL MICHAEL
   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)
President
(Last)
(First)
(Middle)
1016 CIVIC CENTER DRIVE		 3. Date of Earliest Transaction (Month/Day/Year)
11/18/2008
(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 11/18/2008   A   1,946 A $ 4.832 22,319 D  
COMMON STOCK 11/19/2008   A   6,400 A $ 5.6913 28,719 (1) D  
COMMON STOCK               9,371 D  
COMMON STOCK               9,466 (2) I ESOP ALLOCATION
COMMON STOCK               8,883 (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 $ 11.5             04/27/2000 04/27/2009 COMMON STOCK 10,000   10,000 D  
OPTION TO BUY $ 11.5             04/27/2001 04/27/2009 COMMON STOCK 10,000   20,000 D  
OPTION TO BUY $ 11.5             04/27/2002 04/27/2009 COMMON STOCK 10,000   30,000 D  
OPTION TO BUY $ 11.5             04/27/2003 04/27/2009 COMMON STOCK 10,000   40,000 D  
OPTION TO BUY $ 11.5             04/27/2004 04/27/2009 COMMON STOCK 10,000   50,000 D  
OPTION TO BUY $ 16.3             04/16/2008 04/15/2012 COMMON STOCK 1,520   1,520 D  
OPTION TO BUY $ 16.13             04/16/2009 04/15/2012 COMMON STOCK 6,199   7,719 D  
OPTION TO BUY $ 16.13             04/16/2010 04/15/2012 COMMON STOCK 6,199   13,918 D  
OPTION TO BUY $ 16.13             04/16/2011 04/15/2012 COMMON STOCK 6,199   20,117 D  
OPTION TO BUY $ 16.13             01/01/2012 04/15/2012 COMMON STOCK 6,199   26,316 D  
OPTION TO BUY $ 27.64             02/13/2005 02/13/2014 COMMON STOCK 1,250   1,250 D  
OPTION TO BUY $ 27.64             02/13/2006 02/13/2014 COMMON STOCK 1,250   2,500 D  
OPTION TO BUY $ 27.64             02/13/2007 02/13/2014 COMMON STOCK 1,250   3,750 D  
OPTION TO BUY $ 27.64             02/13/2008 02/13/2014 COMMON STOCK 1,250   5,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
MCNEIL MICHAEL
1016 CIVIC CENTER DRIVE
ROCHESTER, MN 55901		   X     President  

Signatures

 JON EBERLE BY POWER OF ATTORNEY FOR MICHAEL MCNEIL   11/20/2008
**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) Total following 2 purchases.
(2) Number of shares shown for ESOP holdings includes allocation for the year ended Dec 31, 2007.
(3) Number of shares shown for 401(k)holdings reflects automatic purchases within the Plan during 2007.

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