VersaBank receives approval by Federal Reserve to acquire Holdingford affiliate location from Stearns Financial Services Inc.

St. Cloud, Minn. (June 7, 2024) – Stearns Financial Services Inc. (“SFSI”) has announced the Federal Reserve has approved the acquisition of one of its affiliate locations, Stearns Bank Holdingford, by Canadian-based VersaBank.

SFSI signed a definitive agreement in 2022 for $13.5 million with VersaHoldings US Corp to acquire the singular location with the intention of launching its expansion into the United States.

SFSI and its subsidiaries, Stearns Bank National Association and Stearns Bank Upsala National Association will continue to expand lending and deposit services across the United States, gaining momentum with top IDC ratings and recognition among the nation’s highest-performing banks.

The Federal Reserve is one of the U.S. regulatory approvals needed for VersaBank to move forward with the acquisition. A decision from the OCC, the other U.S. regulatory authority, is expected soon. Upon receiving approval from the OCC, VersaBank will promptly seek approval for the acquisition from the Canadian regulator, the Office of the Superintendent of Financial Institutions.

About Stearns Bank N.A.
Minnesota-based Stearns Bank National Association is a $3.1 billion, independently owned financial institution with locations in Minnesota, Florida, and Arizona, and over 35,000 small business customers nationwide. Stearns Bank is consistently recognized as one of the Best Banks to Work For, most recently ranked by American Banker as the 5th best bank to work for among banks in the nation, while earning top rankings based on its strong capital and earnings as one of the nation’s highest-performing banks. The Independent Banker’s 2023 “Best of the Best” ranks Stearns Bank as the 4th best-performing bank in the U.S. among banks having more than $1 billion in assets based on banks’ 3-year average Return on Assets. Stearns Bank’s financial strength and success is achieved by Stearns Bank becoming one of the most prominent community impact lenders in the nation through effective public-private partnerships and innovative local initiatives with community organizations, CDFIs, and Minority Deposit Institutions across the country. Stearns Bank specializes in nationwide affordable housing, workforce and multifamily housing, commercial construction lending, build-to-suit and CRE-repositioning lending, family office and lender financing, USDA and SBA lending, and small business and equipment financing to foster economic development and entrepreneurial growth at a local level in communities across the country. As a national leader and go-to bank for nonprofits, Stearns Bank created a customized suite of Nonprofit Banking Solutions specially designed and tailored to empower nonprofit organizations across the country. For more information, visit www.stearnsbank.com

About VersaBank

VersaBank is a Canadian Schedule I chartered bank with a difference. VersaBank became the world’s first fully digital financial institution when it adopted its highly efficient business-to-business model using its proprietary state-of-the-art financial technology to profitably address underserved segments of the Canadian banking market in the pursuit of superior net interest margins while mitigating risk. VersaBank obtains all of its deposits and provides the majority of its loans and leases electronically, with innovative deposit and lending solutions for financial intermediaries that allow them to excel in their core businesses. In addition, leveraging its internally developed IT security software and capabilities, VersaBank established wholly owned, Washington, DC-based subsidiary, DRT Cyber Inc. to pursue significant large-market opportunities in cyber security and develop innovative solutions to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities on a daily basis.

VersaBank’s Common Shares trade on the Toronto Stock Exchange (TSX) and on Nasdaq under the symbol VBNK. Its Series 1 Preferred Shares trade on the TSX under the symbol VBNK.PR.A.