Stearns Bank Acquires Horizon Bank’s Mortgage Warehouse Lending Division

St. Cloud, MN (January 23, 2025) – Today, Stearns Bank N.A. announced that they have closed on the acquisition of Horizon Bank’s Mortgage Warehouse Lending Division. This acquisition reinforces Stearns Bank’s industry-leading specialty lending services and allows the well-capitalized financial services institution to further diversify its portfolio of national banking, lending, and financing products and services. 

“Stearns Bank is excited about the acquisition of such a well-run lending division, which further diversifies our national loan portfolio and creates another profitable source of revenue as we keep pace with accelerated growth,” said Al Doering, Chief Lending and M&A Officer at Stearns Bank. “Our top priorities are to provide an easy transition for Horizon Bank’s customers and help them to continue to reach their full financial potential. We also look forward to welcoming Horizon team members to Stearns Bank and leveraging their talents to deliver exceptional customer service.”

As part of the transaction, Stearns Bank will fully service current Mortgage Warehouse Lending customers and hire key Horizon Bank personnel to ensure a seamless transition and experience for customers nationwide. The acquisition was fully executed and effective on January 18, 2025. With this strategic transaction, Stearns Bank will serve as the financial services intermediary between a mortgage company and the final-end investor. 

“We are pleased to complete this transaction that was the result of exceptional cooperation between the banks, and which will provide our mortgage warehouse colleagues with the opportunity for continued success,” said Thomas Prame, CEO and President of Horizon Bank.

Moreover, Stearns Bank will provide short-term capital to mortgage companies via funding of individual mortgage loans. Those individual mortgage loans will be housed by Stearns Bank for a short-term period before they are purchased by the final end-investor. Once the individual mortgage loan is purchased by the final end-investor, Stearns Bank will earn fees, interest, and be repaid for the initial capital amount. 

To learn more about the Stearns Bank and Horizon Bank Mortgage Warehouse Lending transaction, please read our latest FAQ document and visit: www.StearnsBank.com

About Stearns Bank N.A.

Stearns Bank National Association is a majority women-owned and governed financial services institution committed to empowering people, entrepreneurs, small businesses, and local communities to reach their full financial potential. As a privately held, employee-owned entity, Stearns Bank offers a wide array of national products and services including consumer and small business banking, affordable housing financing, USDA and SBA lending, and equipment and small business financing. Headquartered in Minnesota, the well-capitalized institution has branch locations in Minnesota, Florida, and Arizona. Guided by a commitment to fostering a diverse, inclusive, and equitable workplace, Stearns Bank is regularly recognized as one of the nation’s highest performing banks and ‘Best Banks to Work For’ by American Banker. Member FDIC. Equal Housing Lender. Learn more at www.StearnsBank.com.

About Horizon Bank

Horizon Bank (“Horizon”), a wholly owned subsidiary of Horizon Bancorp, Inc. (NASDAQ GS: HBNC), serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon Bancorp, Inc. and Horizon Bank, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Media Contact
Armando Diaz
Armando.Diaz@StearnsBank.com
C: 561-729-6091