HMN Financial, Inc. Announces Closing of Sale of Toledo, Iowa Branch of Home Federal Savings Bank

ROCHESTER, Minn.--(BUSINESS WIRE)--HMN Financial, Inc. (HMN or the Company) (NASDAQ:HMNF), the $790 million (as of December 31, 2011) holding company for Home Federal Savings Bank (Home Federal or Bank), today announced that the closing of the Bank’s previously announced sale to Pinnacle Bank of Marshalltown, Iowa (Pinnacle) of substantially all of the assets associated with the Toledo, Iowa branch (the Branch) of Home Federal and the assumption by Pinnacle of substantially all deposit liabilities of the Branch. Home Federal will continue to own and operate its other Iowa and Minnesota branches. The transaction was funded with available cash assets. The sale is expected to result in a one-time gain of approximately $550,000 in the first quarter of 2012 and a decrease in the Bank’s overall assets of approximately $37 million.