HMN Financial, Inc. Announces Definitive Agreement Relating to the Toledo, Iowa Branch of Home Federal Savings Bank
November 07 2011 - 11:30PM
Business Wire
HMN Financial, Inc. (HMN or the Company) (NASDAQ:HMNF), the $818
million holding company for Home Federal Savings Bank (Home Federal
or Bank), today announced that the Bank has entered into a
definitive purchase and assumption agreement (Agreement) with
Pinnacle Bank of Marshalltown, Iowa (Pinnacle) which provides for
the sale to Pinnacle of substantially all of the assets associated
with the Toledo, Iowa branch (the Branch) of Home Federal and the
assumption by Pinnacle of all deposit liabilities of the Branch.
Home Federal will continue to own and operate its other Iowa and
Minnesota branches. The transaction is subject to regulatory
approval and scheduling of the required Branch data processing
conversion. Subject to the foregoing and other customary terms and
conditions, the transaction is anticipated to be consummated in the
first quarter of 2012. Home Federal anticipates that the
transaction will be funded with available assets and that the sale
will result in a one time gain in the first quarter of 2012 and a
decrease in the Bank’s overall assets of approximately $43
million.
“We are pleased to announce the sale of our Toledo Branch to a
local bank,” said Bradley Krehbiel, President of Home Federal
Savings Bank. “The sale and the related gain will improve the
Bank’s core capital position and allow us to focus our efforts in
the other markets that we serve.”
Safe Harbor StatementThis press
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements regarding the anticipated timing of consummation of the
Branch transaction and anticipated gain on sale and decrease in
assets therefrom. These statements may be identified by such
forward-looking terminology as expect, intent, look, believe,
anticipate, estimate, project, seek, may, will, would, could,
should, trend, target and goal or similar statements or variations
of such terms. A number of factors could cause actual results to
differ materially from the Company’s assumptions and expectations.
These include but are not limited to the satisfactory completion of
the approval process to be undertaken by Pinnacle with the Iowa
Division of Banking and the Federal Deposit Insurance Corporation,
the timing of Branch data conversion by a third party provider, the
failure of either party to fulfill the terms and conditions of the
Agreement required to be satisfied prior to a closing, changes in
assets and liabilities at the Branch prior to closing and federal
regulation and enforcement affecting HMN or Home Federal, including
restrictions set forth in the supervisory agreements between each
of the Company and the Federal Reserve Board and Home Federal and
the Office of the Comptroller of the Currency.
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