HMN Financial Inc. has a tentative deal to acquire a three-branch Iowa thrift.
HMN Financial, a $553 million-asset, Spring Valley-based thrift holding company, announced it intends to pay $25.9 million in cash for all of Marshalltown Financial Corp.'s outstanding shares.
Roger P. Weise, HMN's president and chief executive officer, said Marshalltown Financial, Marshalltown, Iowa, was attractive to HMN because both thrifts operate in rural marketplaces.
"They're conservative like we are," Mr. Weise said.
By acquiring Marshalltown Financial, HMN Financial would gain a presence in northern Iowa, just across the state line from its eight southern Minnesota offices. HMN plans to let the $127 million-asset Iowa thrift operate as a division.