Home Federal Savings Bank in Toledo sold to Marshalltown bank

The Toledo branch of a Rochester, Minn., financial institution has been sold to a Marshalltown bank.

HMN Financial, corporate parent of Home Federal Savings Bank, has completed the sale of the Toledo office to Pinnacle Bank of Marshalltown. With the sale, Pinnacle receives virtually all the assets of the bank branch as well as its deposit liabilities.

HMN Financial, with a branch of Home Federal in Marshalltown, said it will continue to own and operate its other Home Federal branches in Iowa and Minnesota. Pinnacle financed the purchase with available cash assets.

Home Federal said 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.

"We are pleased to announce the completion of the sale of our Toledo branch to a local bank," said Bradley Krehbiel, president of Home Federal Savings Bank, in a statement announcing completion of the transaction. "The sale and the related gain improve the bank's core capital position and allow us to focus our efforts in the other markets that we serve."