Kasson State Bank has agreed to sell its business to Rochester's Home Federal Savings Bank.
Home Federal announced the deal to bank and its two Kasson branches late Thursday night. HMN Financial,Home Federal's parent holding company, is actually making the acquisition.
The purchase is subject to regulatory approval. The Palmer family currently owns the Kasson State Bank. It has 19 employees on staff. It lists assets of about $60 million.
"It was an opportunity that was in our backyard. It's a natural expansion of our existing franchise footprint," said Home Federal President Brad Krehbiel.
Neither bank elected to release financial details about deal. Home Federal officials did say that the bank is funding the acquisition with "internally available funds." The bank expects to complete the transaction late in the third quarter of 2015.
"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," stated Krehbiel in the announcement of purchase.
Kasson State Bank has a 141 year history dating back to the 1874 founding of the First National Bank of Kasson. The bank has been owned by the Palmer family, since 1924.
If approved, this deal will bring Home Federal's number of Minnesota branches to nine. It has offices in Albert Lea, Austin, Eagan, La Crescent, two in Rochester, Spring Valley and Winona; one full-service office in Marshalltown, Iowa; one loan-origination office in Sartell; and two private-banking offices in Rochester.