UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION
                  Washington, D.C.  20549



                       SCHEDULE 13G/A

         Under the Securities Exchange Act of 1934

                    (Amendment No. 7)


                    HMN FINANCIAL, INC.
---------------------------------------------------------
                     (Name of Issuer)

                       COMMON STOCK
---------------------------------------------------------
              (Title of Class of Securities)

                         40424G108
---------------------------------------------------------
                      (CUSIP Number)


                    December 31, 2001
---------------------------------------------------------
 (Date of Event Which Required Filing of this Statement)


Check the following box to designate the rule pursuant to which this Schedule
is filed:

    [x] Rule 13d-1(b)
    [ ] Rule 13d-1(c)
    [ ] Rule 13d-1(d)

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).






CUSIP No.  40424G108           13G               Page  2  of 7  Pages

----------------------------------------------------------------
1     NAME OF REPORTING PERSON
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

        HMN Financial, Inc. Employee Stock Ownership Plan
        IRS ID No.    37-1327748
----------------------------------------------------------------
2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                     (a) / /
                                     (b) /x/
----------------------------------------------------------------
3     SEC USE ONLY

----------------------------------------------------------------
4     CITIZENSHIP OR PLACE OF ORGANIZATION

         Minnesota
----------------------------------------------------------------

NUMBER OF       5   SOLE VOTING POWER
SHARES
BENEFICIALLY            0
OWNED BY       -------------------------------------------------
EACH            6   SHARED VOTING POWER
REPORTING
PERSON                  878,444 
WITH           -------------------------------------------------
                7   SOLE DISPOSITIVE POWER

                        878,444 
               -------------------------------------------------
                8   SHARED DISPOSITIVE POWER

                        0
----------------------------------------------------------------
9     AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
      PERSON

          878,444
----------------------------------------------------------------
10    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
      CERTAIN SHARES*

----------------------------------------------------------------
11    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

          20.0%
----------------------------------------------------------------
12    TYPE OF REPORTING PERSON*

          EP
----------------------------------------------------------------

 Includes 209,380 shares held in "allocated" accounts and 669,064 shares
held in the "unallocated" account of the HMN Financial, Inc. Employee Stock
Ownership Plan.

                 *SEE INSTRUCTION BEFORE FILLING OUT!
                            Page 2 of 7


CUSIP No.  40424G108            13G           Page 3 of 7 Pages
----------------------------------------------------------------
1     NAME OF REPORTING PERSON
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

          First Bankers Trust Company, N.A.
          IRS ID No.    37-1327748
----------------------------------------------------------------
2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                   (a) / /
                                   (b) /x/
----------------------------------------------------------------
3     SEC USE ONLY

----------------------------------------------------------------
4     CITIZENSHIP OR PLACE OF ORGANIZATION

          United States
----------------------------------------------------------------
NUMBER OF      5     SOLE VOTING POWER
SHARES
BENEFICIALLY             600
OWNED BY      --------------------------------------------------
EACH           6     SHARED VOTING POWER
REPORTING
PERSON                   878,444 
WITH          --------------------------------------------------
               7     SOLE DISPOSITIVE POWER

                         878,444 
              --------------------------------------------------
               8     SHARED DISPOSITIVE POWER

                         0
----------------------------------------------------------------
9     AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
      PERSON

           879,044
----------------------------------------------------------------
10    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
      CERTAIN SHARES*

----------------------------------------------------------------
11    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

          20.0%
----------------------------------------------------------------
12    TYPE OF REPORTING PERSON*

          BK
----------------------------------------------------------------

 Includes 209,380 shares held in "allocated" accounts and 669,064 shares
held in the "unallocated" account of the HMN Financial, Inc. Employee Stock
Ownership Plan.


                *SEE INSTRUCTION BEFORE FILLING OUT!
                            Page 3 of 7


ITEM 1.
     (a)  Name of Issuer
          --------------
          HMN Financial, Inc. (the "Corporation")

     (b)  Address of Issuer's Principal Executive Offices
          -----------------------------------------------
          1016 Civic Center Drive Northwest
          Rochester, Minnesota 55901
ITEM 2.
     (a)  Name of Person Filing
          ---------------------
          HMN Financial, Inc.
          Employee Stock Ownership Plan (the "ESOP")

          Pursuant to applicable regulations, First Bankers Trust Company, N.A.
          (the "Trustee"), the Trustee of the ESOP may also be deemed to be a
          "beneficial owner" of the shares held by the ESOP as described below.


          The Trustee also may be deemed a "beneficial owner" of unvested
          shares held in HMN Financial, Inc. Recognition and
          Retention Plan.  Refer to Item 4. for more details.

     (b)  Address of Principal Business Office or, if None,
          Residence
          ------------------------------------------------------
          The business address of the ESOP is:

          1016 Civic Center Drive Northwest
          Rochester, Minnesota 55901

          The business address of the Trustee is:

          Broadway at 12th Street
          Quincy, Illinois 62305-3566

     (c)  Citizenship
          -----------
          The ESOP trust was established under the laws of the state of
          Minnesota.

          The Trustee is a national bank incorporated under the laws of the
          United States.

     (d)  Title of Class of Securities
          ----------------------------
          Common stock, par value $.01 per share.

     (e)  CUSIP Number
          -----------------
          40424G108

ITEM 3.   This statement is filed pursuant to Rule 13d-1(b). The persons filing
          are an Employee Benefit Plan, which is subject to the Employee
          Retirement Income Security Act of 1974, as amended, and the Trustee
          is a Bank as defined in Section 3(a)(6) of the Act.

ITEM 4.   Ownership

          The ESOP holds an aggregate of 878,444 shares (20.0% of the
          outstanding shares of the class) of the Corporation and has the
          voting rights as described below.


          The ESOP has sole dispositive power for all such shares subject to
          the terms of the Employee Stock Ownership Plan, which requires that
          participant accounts be primarily invested in common stock of the
          Corporation.

          First Bankers Trust Company, N.A., the Trustee of the ESOP, may be
          deemed under applicable regulations to "beneficially" own the shares
          held by the ESOP. However, the Trustee expressly disclaims
          beneficial ownership of the shares held by the ESOP.

                                Page 4 of 7


          Pursuant to the terms of the ESOP, participants in the ESOP are
          entitled to instruct the Trustee of the ESOP as to the voting of the
          shares allocated to their accounts.  The provisions of the ESOP
          require the Trustee to vote the shares held by the ESOP which have
          not been allocated to specific accounts (or with respect to
          allocated accounts for which no instructions are timely received)
          on each issue with respect to which shareholders are entitled
          to vote in the proportion that the participants had voted the
          shares allocated to their accounts with respect to such issue.
          As of December 31, 2001, a total of 209,380 shares of Corporation
          common stock have been allocated to participants' accounts.

          The Trustee has the right to sell allocated shares held by the ESOP,
          the proceeds from which are allocated to the accounts of
          individual participants.  The Trustee also may sell unallocated
          shares, to the extent  such shares are not pledged to secure
          borrowed funds.

          First Bankers Trust Company, N.A. has the authority under the HMN
          Financial, Inc. 1995 Recognition and Retention Plan (RRP) to vote
          all restricted shares held under the RRP, in its sole discretion,
          at any annual and special meetings of the stockholders of the
          Corporation. At December 31, 2001, the RRP had 600 shares of
          restricted stock that could be voted by the Trustee.  The Trustee
          has no dispositive power with respect to the shares.

ITEM 5. Ownership of Five Percent or Less of a Class

          Not applicable.

ITEM 6. Ownership of More than Five Percent on Behalf of Another
        Person.

          The ESOP shares are held on behalf of the ESOP participants pursuant
          to the terms of the HMN Financial, Inc. Employee Stock Ownership
          Plan and Trust Agreement. See Item 4. above for details.

          Pursuant to the terms of the ESOP, dividends paid with respect to
          shares are allocated to participants' accounts in the ESOP as of the
          record date for the dividend payment and may be paid in cash to the
          participants, pursuant to the directions of the Board of Directors of
          the Corporation.  Absent such direction by the Board of Directors,
          cash from the payment of dividends is retained in the accounts of
          participants or, to the extent permitted by law, may be used to repay
          the ESOP loan. With respect to unallocated shares, cash received from
          the sale of shares or payment of dividends is retained in the ESOP
          trust and may be used to purchase additional shares or to repay the
          ESOP loan.

ITEM 7. Identification and Classification of the Subsidiary Which Acquired the
        Security Being Reported on By the Parent Holding Company

          Not applicable.

ITEM 8. Identification and Classification of Members of the Group

          Not applicable.

ITEM 9. Notice of Dissolution of Group

          Not applicable.


ITEM 10.  Certification

        The following certificate shall be included if the statement is filed
        pursuant to Rule 13d-1(b):

        By signing below I certify that, to the best of my knowledge and
        belief, the securities referred to above were acquired in the ordinary
        course of business and were not acquired for the purpose of and do not
        have the effect of changing or influencing the control of the issuer of
        such securities and were not acquired in connection with or as a
        participant in any transaction having such purposes or effect.

                                 Page 5 of 7



                                    SIGNATURE
        After reasonable inquiry and to the best of my knowledge and belief, I
        certify that the information set forth in this statement is true,
        complete and correct.

Date:       February 12, 2002   HMN FINANCIAL, INC.
                                EMPLOYEE STOCK OWNERSHIP PLAN
                                FIRST BANKERS TRUST COMPANY, N.A.,
                                Trustee

                                By:/s/ Linda Shultz
                                ---------------------------------
                                Linda Shultz
                                Trust Officer

Date:       February 12, 2002   FIRST BANKERS TRUST COMPANY, N.A.

                                By:/s/ Patricia Brink
                                ---------------------------------
                                Patricia Brink
                                Cashier


                                    Page 6 of 7


February 12, 2002



HMN Financial, Inc.
Employee Stock Ownership Plan
101 North Broadway
Spring Valley, MN  55975

Dear Sir/Madam:

        This letter hereby confirms the agreement and understanding between you
and the undersigned that the Schedule 13G being filed with the Securities and
Exchange Commission on or about this date is being filed on behalf of each of
us.

Sincerely,

FIRST BANKERS TRUST COMPANY, N.A.


By: /s/ Patricia Brink
    ----------------------------
    Name:    Patricia Brink
    Title:   Cashier


HMN Financial, Inc.
EMPLOYEE STOCK OWNERSHIP PLAN


By: /s/ Linda Shultz
    ----------------------------
    Name:    Linda Shultz
    Title:   Trust Officer

                          Page 7 of 7