Exhibit 99.1

HF Financial Corp. Earns $0.21 per share for Fiscal 2012 First Quarter
Capital Ratios Remain Strong and Credit Quality Improves

Declares Regular Quarterly Dividend of $0.1125 per Share

SIOUX FALLS, SD, October 31, 2011 — HF Financial Corp. (Nasdaq: HFFC) today reported it earned $1.4 million, or $0.21 per diluted share for the first fiscal quarter ended September 30, 2011, compared to $490,000, or $0.07 per diluted share, for the first fiscal quarter a year ago. Nonperforming assets declined to 2.64% at the end of September, from 3.12% at the end of the preceding quarter, reflecting improving conditions in the regional agricultural market.  Capital ratios continued to expand and remain well above minimum regulatory requirements as a result of the addition of lower risk assets, controlled growth and retained earnings.

Earlier this month, the Board of Directors named Michael Vekich Chairman of the Board and Stephen Bianchi Interim President and Chief Executive Officer as part of the Company’s succession plan.

“We continue to benefit from the strength and stability of the South Dakota economy, and our efforts to reduce non-performing assets are producing tangible results,” said Bianchi.  “Our loan portfolio is performing well, with the exception of a few loans primarily in the dairy sector, our total and low-cost deposits are growing and our net interest margin is stable.”

Fiscal First Quarter Financial Highlights (at or for the period ended September 30, 2011, compared to September 30, 2010, and June 30, 2011.)

·                  Earnings for the first fiscal quarter of fiscal 2012 were $0.21 per diluted share versus $0.07 per diluted share a year ago and a loss of $0.29 per diluted share in the preceding quarter.

·                  Nonperforming assets (“NPAs”) decreased, to $31.4 million, or 2.64%, of total assets, from $37.2 million, or 3.12%, of total assets in the fourth fiscal quarter of fiscal 2011.  The majority of NPAs are related to the dairy industry.

·                  Tangible common equity continued to increase, with the tangible capital ratio increasing to 7.62%.

·                  Capital levels continued to increase and remain well above the regulatory “well-capitalized” minimum levels of 10.00%, 6.00% and 5.00%, respectively:

·                  Total risk-based capital to risk weighted assets was 13.79% versus 13.28% at June 30, 2011.

·                  Tier 1 capital to risk-weighted assets was 12.57% versus 12.43% at June 30, 2011.

·                  Tier 1 capital to total adjusted assets was 9.63% versus 9.44% at June 30, 2011.

·                  The most recent dividend of $0.1125 per share represents the twelfth consecutive quarter at this level.

·                  The net interest margin expressed on a fully taxable equivalent basis (“NIM, TE”) maintained its stability at 3.24% in the first quarter of fiscal 2012 compared to 3.30% in the previous quarter.

·                  Deposits, excluding time certificates of deposit, increased 2.8% from the preceding quarter to $542.4 million from $527.8 million, and account for 61.4% of total deposits.

Economic Update

South Dakota’s economy remains one of the healthiest in the nation with its August seasonally adjusted unemployment rate at 4.7%, the third lowest unemployment rate in the country.  “The economic health of the agricultural sector and the tax-friendly climate in South Dakota has enabled local businesses to withstand the national economic downturn better than in other regions of the country,” said Bianchi.

The Sioux Falls metropolitan area was ranked 10th out of 366 metropolitan areas in the country in 2011 for economic strength, according to a survey done by Policom Corporation, an independent economics research firm, which specializes in studying the dynamics of local economies.  “Economic strength is the long term tendency for an area to consistently grow in both size and quality,” according to William H. Fruth, President of Policom Corporation.

Balance Sheet and Asset Quality Review

Total assets at September 30, 2011 remained flat relative to the previous quarter at $1.2 billion.  However, the loan portfolio declined while the investment portfolio reflected an increase.   “Lending opportunities have continued at a slower pace relative to years past, while customers are moving their deposits to their home-town bank. Consequently our mix of low cost deposits continues to expand, helping to reduce cost of funds.   Additionally, we are focused on maintaining relationships with customers who use multiple services, whether it be depository, lending or trust services,” noted Bianchi.

Loan balances decreased slightly to $817.3 million from $825.5 million during the most recent quarter.  Liquidity remains high, both on balance sheet and through off-balance sheet access to funds.  Agricultural loans, which are well diversified between livestock, grains, dairy and other commodities, represent 28.4% of the total loan portfolio.  With strength in the regional economy, commercial real estate accounts for 35.8% of the loan portfolio and continues to perform well.   The remainder of the loan portfolio consists of consumer loans representing 14.7% of total loans, commercial business loans at 13.0%, and residential loans equaling 8.1% of the portfolio.

Total deposits decreased to $884.2 million from $893.2 million at June 30, 2011.  Deposit accounts, excluding time certificate of deposits, have increased to 61.4% of total deposits at September 30, 2011, from 59.1% a quarter earlier.

The company continues to execute its plan to reduce certificates of deposits, which declined to $341.8 million at September 30, 2011, from $365.3 million a quarter earlier.  Additionally, noninterest bearing checking accounts declined to $115.6 from $132.4 million.  Interest bearing checking accounts increased to $124.3 million from $113.4 million and savings accounts increased to $106.0 million from $84.4 million.

Nonperforming assets decreased to $31.4 million at September 30, 2011, from $37.2 million the previous quarter.  Total NPAs were 2.64% of total assets at the end of the first quarter of fiscal 2012, compared to 3.12% at June 30, 2011.  The problem credits are primarily related to stress in the dairy sector.    Nonperforming dairy loans totaled $14.0 million at September 30, 2011, or 44.5% of total nonperforming assets.  “The dairy sector appears to be stabilizing. Dairy futures have rebounded, though feed costs continue to be an area of concern,” Bianchi said.   One additional agricultural loan relationship represented 17.3% of nonperforming loans.

The allowance for loan and lease losses at September 30, 2011, totaled $11.0 million, representing 1.35% of total loans outstanding, down from 1.40% a year ago.  Net charge-offs in the quarter totaled $3.9 million, of which $2.7 million had been specifically reserved for in prior quarters, while nonaccruing loans and leases declined to $26.2 million from $30.8 million in the preceding quarter.

Tangible common shareholders’ equity to tangible assets increased to 7.62% at September 30, 2011 compared to 7.59% at June 30. 2011.  Tangible book value per common share was $12.96 at September 30, 2011.

Capital ratios continued to strengthen and HF Financial Corp. remains well-capitalized with Tier 1 capital to risk weighted assets of 12.57% at September 30, 2011, while its Tier 1 capital to adjusted total assets was 9.63%.  These regulatory ratios were much higher than the required minimum levels of 6.00% and 5.00%, respectively.

Review of Operations

HF Financial’s earnings reflect a lower provision for loan losses and small gains on the sale of securities versus a loss on the sale of all trust preferred securities and an increased provision for loan losses related to a single nonperforming loan in the preceding quarter.

Net interest income totaled $9.1 million for the first fiscal quarter 2012 compared to $9.0 million for the fourth fiscal quarter 2011, and $9.6 million in the year ago quarter, reflecting a decline in both interest income and interest expenses.

The net interest margin on a tax-equivalent basis (“NIM, TE”) as a percentage of average earning assets decreased six basis points to 3.24% for the first quarter of fiscal 2012 compared to 3.30% for the previous quarter.  The NIM, TE was 3.33% for the quarter ended September 30, 2010.

Because of improvement in asset quality and adequate reserves previously established against the loan portfolio, the provision for loan losses declined $1.5 million from the previous quarter to $522,000 and $2.8 million from the same quarter in fiscal 2011.

Fiscal first quarter noninterest income was $3.4 million, or a $4.7 million increase from the preceding quarter.  Relative to one year earlier, noninterest income declined by $417,000 which primarily reflects less gains on the sale of loans and securities.

Noninterest, or operating, expenses increased to $9.8 million in the first fiscal quarter from $9.0 million in the fourth fiscal quarter of 2011, primarily reflecting elevated compensation expenses partially related to a one-time accrual resulting from the separation agreement entered into with the Company’s former Executive Vice-President and Bank President, along with other increases in professional fees and marketing fees.  Relative to one year earlier, noninterest expense has increased by $362,000 due primarily to higher professional fees.

These financial results are preliminary until the Form 10-Q is filed in November 2011.

Quarterly Dividend Declared

The board of directors declared a regular quarterly cash dividend of $0.1125 per common share for the first fiscal quarter 2012.  The dividend is payable November 17, 2011 to stockholders of record November 10, 2011.

Use of Non-GAAP Financial Measures

This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). “Net Interest Margin, TE” is a non-GAAP financial measure. Information regarding the usefulness of Net Interest Margin, TE appears in the notes to the attached financial statements.  The Company believes that the presentation of non-GAAP financial measures will permit investors to assess the Company’s core operating results on the same basis as management. Non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with

GAAP. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. Reconciliation of the non-GAAP measures to the most comparable GAAP measures are set forth in the notes to the attached financial statements.

About HF Financial Corp.

HF Financial Corp., based in Sioux Falls, SD, is the parent company for financial services companies, including Home Federal Bank, Mid America Capital Services, Inc., dba Mid America Leasing Company, Hometown Investment Services, Inc. and HF Financial Group, Inc.  The largest publicly traded savings association headquartered in South Dakota, HF Financial Corp. operates with 34 offices in 19 communities, throughout Eastern South Dakota and one location in Marshall, Minnesota.  The Company has opened a branch in the Twin Cities market as Infinia Bank, a Division of Home Federal Bank of South Dakota.  Internet banking is also available at www.homefederal.com.

This news release and other reports issued by the Company, including reports filed with the Securities and Exchange Commission, contain “forward-looking statements” that deal with future results, expectations, plans and performance.  In addition, the Company’s management may make forward-looking statements orally to the media, securities analysts, investors or others.  These forward-looking statements might include one or more of the following:

·                  Projections of income, loss, revenues, earnings or losses per share, dividends, capital expenditures, capital structure, adequacy of loan loss reserves, tax benefit or other financial items.

·                  Descriptions of plans or objectives of management for future operations, products or services, transactions, investments and use of subordinated debentures payable to trusts.

·                  Forecasts of future economic performance.

·                  Use and descriptions of assumptions and estimates underlying or relating to such matters.

Forward-looking statements can be identified by the fact they do not relate strictly to historical or current facts.  They often include words such as “optimism,” “look-forward,” “bright,” “pleased,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may”.

Forward-looking statements about the Company’s expected financial results and other plans are subject to certain risks, uncertainties and assumptions.  These include, but are not limited to the following: possible legislative changes and adverse economic, business and competitive conditions and developments (such as shrinking interest margins and continued short-term environments); deposit outflows, reduced demand for financial services and loan products; changes in accounting policies or guidelines, or in monetary and fiscal policies of the federal government; changes in credit and other risks posed by the Company’s loan and lease portfolios; the ability or inability of the Company to manage interest rate and other risks; unexpected or continuing claims against the Company’s self-insured health plan; the ability or inability of the Company to successfully enter into a definitive agreement for and close anticipated transactions; technological, computer-related or operational difficulties; adverse changes in securities markets; results of litigation; and the other risks detailed from time to time in the Company’s SEC filings, including but not limited to, its annual report on Form 10-K for the fiscal year ending June 30, 2011, and its subsequent quarterly reports on Form 10-Q.

Forward-looking statements speak only as of the date they are made.  The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.  Although the Company believes its expectations are reasonable, it can give no assurance that such expectations will prove to be correct.  Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described in any forward-looking statements.

CONTACT:  HF Financial Corp.

Stephen Bianchi, President and Chief Executive Officer    (605) 333-7556

HF Financial Corp.

Selected Consolidated Operating Highlights

(Dollars in Thousands, except share data)

(Unaudited)

HF FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(DOLLARS IN THOUSANDS)

HF Financial Corp.

Selected Consolidated Financial Condition Data

(Dollars in Thousands)

(Unaudited)

Allowance for Loan and Lease Loss Activity

CAPITAL COMPOSITION

(Unaudited)

HF Financial Corp.

Selected Consolidated Financial Condition Data

(Dollars in Thousands, Except per Share Data)

(Unaudited)

Loan and Lease Portfolio Composition

(1) Includes $2,377 and $2,377 tax exempt leases at September 30, 2011 and June 30, 2011, respectively.

(2) Excludes undisbursed portion of loans in process and deferred loan fees and discounts.

Deposit Composition

HF Financial Corp.

Selected Consolidated Financial Condition Data

(Dollars in Thousands)

(Unaudited)

Average Balances, Interest Yields and Rates

HF Financial Corp.

Selected Consolidated Financial Condition Data

(Dollars in Thousands)

(Unaudited)

Average Balances, Interest Yields and Rates

HF Financial Corp.

Age Analysis of Past Due Financing Receivables

At September 30, 2011

(Dollars in Thousands)

(Unaudited)