St. Cloud, Minn.-based Stearns Bank recently acquired the mortgage warehouse lending division of Michigan City, Ind.-based Horizon Bank.
The acquisition was effective on Jan. 18.
Stearns Bank is expected to serve as the financial services intermediary between mortgage companies and final investors.The bank is expected to provide short-term capital to mortgage companies through funding individual mortgage loans. Stearns Bank will then house the loans for a short while before they are purchased by the final end-investor, according to the bank. Stearns Bank will then earn fees and interest and be repaid for the initial capital amount.
“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.