St. Cloud, Minn.-based Stearns Financial Services, Inc. announced June 14 that it is selling its Stearns Bank Holdingford, NA, charter to the Canadian digital banking and cybersecurity firm VersaBank for an estimated $13.5 million. SFS will retain its flagship $2.2 billion Stearns Bank, NA, and $76 million Stearns Bank Upsala, NA, charters.
The acquisition of the $94.8 million, single-branch Minnesota-based charter 25 miles northwest of St. Cloud is VersaBank’s first foray into the U.S. market. After closing, Stearns Bank Holdingford will be renamed VersaBank USA. Canadian and U.S. regulators will need to approve the transaction. Stearns plans to explore new delivery channels and technology opportunities through its partnership with VersaBank.
VersaBank President and CEO David Taylor called the buy “a “transformational” next step in VersaBank’s long-term growth strategy. “We have built a tremendously successful digital banking operation in Canada, providing innovative, technology-based solutions to serve unmet needs, which has driven outsized earnings growth,” he said.
Stearns Bank Holdingford President Heather Plumski said VersaBank “shares our values and culture, and we’re confident VersaBank will be welcomed with open arms in Holdingford when the community gets to know our Canadian partner.”
The London, Ontario-based VersaBank became the first Canadian digital-only bank in the early 1990s.