Home Federal Savings Bank Enters Into Agreement to Acquire Assets of Kasson State Bank
03 April 2015 - 2:30PM
HMN Financial, Inc. ("HMN" or the "Company") (Nasdaq:HMNF) today
announced that its wholly owned subsidiary, Home Federal Savings
Bank (the "Bank"), has entered into an agreement to acquire certain
assets and assume certain liabilities of Kasson State Bank. Kasson
State Bank is a Minnesota state bank with two branch locations in
Kasson, Minnesota. Once completed, the Bank plans to operate both
of the Kasson State Bank locations as Home Federal Savings Bank
branches.
The Bank plans to fund the acquisition with internally available
funds. Completion of the transaction is subject to customary
closing conditions, including obtaining regulatory approval. The
Bank expects to complete the transaction late in the third quarter
of 2015.
"We are excited to expand our banking operations into the Kasson
community as it is a natural extension of our existing banking
locations," said Brad Krehbiel, President of HMN. "We look forward
to the opportunity to continue on with the long established
community banking tradition of Kasson State Bank, while at the same
time expanding the banking products and services offered through
these locations."
General Information
HMN Financial, Inc. and the Bank are headquartered in Rochester,
Minnesota. Home Federal Savings Bank operates eight full service
offices in Minnesota located in Albert Lea, Austin, Eagan, La
Crescent, Rochester (2), Spring Valley and Winona; one full service
office in Marshalltown, Iowa; two loan origination offices located
in Wauwatosa, Wisconsin and in Sartell, Minnesota; and two Private
Banking offices in Rochester, Minnesota.
Safe Harbor Statement
This press release may contain forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are often
identified by such forward-looking terminology as "expect,"
"intend," "look," "believe," "anticipate," "estimate," "project,"
"seek," "may," "will," "would," "could," "should," "trend,"
"target," and "goal" or similar statements or variations of such
terms and include, but are not limited to, those relating to
increasing our core deposit relationships, improving credit
quality, reducing non-performing assets, reducing expense and
generating improved financial results; the adequacy and amount of
available liquidity and capital resources to the Bank; the
Company's liquidity and capital requirements; our expectations for
core capital and our strategies and potential strategies for
improvement thereof; improvements in loan production; changes in
the size of the Bank's loan portfolio; the amount of the Bank's
non-performing assets and the appropriateness of the allowance
therefor; our ability to complete the acquisition of assets of
Kasson State Bank and integrate its operations; anticipated future
levels of the provision for loan losses; future losses on
non-performing assets; the amount and mix of interest-earning
assets; the amount and mix of deposits; the availability of
alternate funding sources; the payment of dividends by HMN, the
future outlook for the Company; the amount of dividends paid by the
FHLB on its stock; the amount of deposits that will be withdrawn
from checking and money market accounts and how the withdrawn
deposits will be replaced; the projected changes in net interest
income based on rate shocks; the range that interest rates may
fluctuate over the next twelve months; the net market risk of
interest rate shocks; the future outlook for the issuer trust
preferred securities held by the Bank; the ability of the Bank to
pay dividends to HMN; the ability of HMN to pay the principal and
interest payments on its third party note payable; the ability to
remain well capitalized under revised capital rules; the expected
impact of new Basel III and the Dodd Frank Act capital standards on
the Bank's and the Company's capital positions; and compliance by
the Company and the Bank with regulatory standards generally
(including the Bank's status as "well-capitalized") and other
supervisory directives or requirements to which the Company or the
Bank are or may become expressly subject, specifically, and
possible responses of the Office of the Comptroller of the Currency
(OCC), Board of Governors of the Federal Reserve System (FRB), the
Bank, and the Company to any failure to comply with any such
regulatory standard, directive or requirement.
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 adequacy and marketability of
real estate and other collateral securing loans to borrowers;
federal and state regulation and enforcement; possible legislative
and regulatory changes, including additional changes to regulatory
capital rules; the ability of the Bank to comply with other
applicable regulatory capital requirements; enforcement activity of
the OCC and FRB in the event of our non-compliance with any
applicable regulatory standard or requirement; adverse economic,
business and competitive developments such as shrinking interest
margins, reduced collateral values, deposit outflows, changes in
credit or other risks posed by the Company's loan and investment
portfolios, changes in costs associated with alternate funding
sources, including changes in collateral advance rates and policies
of the Federal Home Loan Bank, technological, computer-related or
operational difficulties, results of litigation, and reduced demand
for financial services and loan products; changes in accounting
policies and guidelines, or monetary and fiscal policies of the
federal government or tax laws; international economic
developments; the Company's access to and adverse changes in
securities markets; the market for credit related assets; the
future operating results, financial condition, cash flow
requirements and capital spending priorities of the Company and the
Bank; the availability of internal and, as required, external
sources of funding; acquisition integration costs; or other
significant uncertainties. Additional factors that may cause actual
results to differ from the Company's assumptions and expectations
include those set forth in the Company's most recent filings on
Forms 10-K and 10-Q with the Securities and Exchange Commission.
All forward-looking statements are qualified by, and should be
considered in conjunction with, such cautionary statements. For
additional discussion of the risks and uncertainties applicable to
the Company, see the "Risk Factors" sections of the Company's
Annual Report on Form 10-K for the year ended December 31, 2014 and
Part II, Item 1A of its subsequently filed Quarterly Reports on
Form 10-Q. All statements in this press release, including
forward-looking statements, speak only as of the date they are
made, and we undertake no duty to update any of the forward-looking
statements after the date of this press release.
CONTACT: Bradley Krehbiel
Chief Executive Officer, President
HMN Financial, Inc. (507) 252-7169
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