Home Federal Savings Bank is expanding.

HMN Financial Inc. announced last week its wholly owned subsidiary, Home Federal Savings Bank has entered into an agreement to acquire certain assets and assume certain liabilities of Kasson State Bank. Kasson State Bank is a Minnesota state bank with two branch locations in Kasson, Minnesota. Once completed, the bank plans to operate both of the Kasson State Bank locations as Home Federal Savings Bank branches, where it will join several other locations including one in Austin.

The Bank plans to fund the acquisition with internally available funds. Completion of the transaction is subject to customary closing conditions, including obtaining regulatory approval. The Bank expects to complete the transaction late in the third quarter of 2015.

“We are excited to expand our banking operations into the Kasson community as it is a natural extension of our existing banking locations,” said Brad Krehbiel, president of HMN, in a statement. “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.”

HMN Financial, Inc. and the 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 (two), Spring Valley and Winona; one full service office in

Marshalltown, Iowa; two loan origination offices located in Wauwatosa, Wisconsin and in Sartell, Minnesota; and two private banking offices in Rochester, Minnesota.