HMN Financial, Inc. Announces Termination of Regulatory Restrictions Relating
to Home Federal Savings Bank
ROCHESTER, Minn., Feb. 14, 2014 (GLOBE NEWSWIRE) -- HMN Financial, Inc. (HMN
or the Company) (Nasdaq:HMNF) today announced that the Office of the
Comptroller of the Currency (the OCC) has terminated the supervisory agreement
and the individual minimum capital requirement (IMCR) to which HMN's principal
subsidiary, Home Federal Savings Bank (the Bank), was a party or was subject.
The Bank supervisory agreement, effective February 22, 2011, related primarily
to the Bank's then existing financial performance and credit quality
issues.Under the supervisory agreement, the Bank was required to submit
periodic business plans and reports to the OCC and could not, without the
prior consent of the OCC, declare or pay any cash dividends, increase its
total assets during any quarter in excess of the amount of the net interest
credited on deposit liabilities during the prior quarter, enter into any new
contractual arrangement or renew or extend any existing arrangement related to
compensation or benefits with any directors or officers, make any golden
parachute payments, or enter into any significant contracts with a third party
service provider.Effective December 31, 2011, the Bank was required to
establish and maintain a core capital ratio at or above 8.50% under the IMCR,
a level of capital greater than that generally required for a bank to be
classified as "well-capitalized."
"We are pleased that the improvements in our financial results and capital
position have allowed these agreements and restrictions to be terminated,"
said Brad Krehbiel, President of HMN."We will continue to focus our efforts
on improving the financial performance of our core banking operations."
The Company continues to be subject to a supervisory agreement with its
primary regulator, the Federal Reserve Board.
HMN Financial, Inc. and Home Federal Savings 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; one loan origination office 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. 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, 2012 and Part II, Item 1A of its Quarterly Reports on
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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