Canada Based VersaBank Signs Deal to Acquire Stearns Bank Holdingford

(KNSI) — VersaBank announced it had signed a definitive agreement to acquire Stearns Bank Holdingford for an estimated $13.5 million, marking the Canada-based company’s entrance into the United States market.

VersaBank’s President and CEO David Taylor calls the acquisition a “transformational next step” in the company’s long-term growth strategy. SBH focuses on nationwide construction finance, small business lending, and equipment financing and is expected to add around $60 million in total assets to VersaBank. Upon closing, Stearns Bank Holdingford will be renamed VersaBank USA National Association. Stearns Bank as a whole will continue to operate as usual.

Closing of the acquisition, expected before the end of VersaBank’s fiscal year, which is October 31st, is subject to regulatory approval in both the U.S. and Canada, where VersaBank is headquartered.

Heather Plumski, President of Stearns Bank Holdingford N.A., says in a statement, “For over forty-five years, Stearns Bank has proudly served the strong and vibrant Holdingford community, and we are excited to continue to do so in our partnership with VersaBank. It speaks volumes that our Canadian neighbor, VersaBank, has chosen Holdingford as the best location to launch its U.S.-based banking and financing. 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.”

Kelly Skalicky, President, and CEO of Stearns Financial Services, Inc., expressed her enthusiasm for the partnership with VersaBank, “Congratulations to Holdingford on its continued growth and for attracting VersaBank for its U.S. expansion plan. David and the VersaBank team are terrific and proving to be a perfect partner – together; we will deliver even more to our local communities and beyond.”

Stearns Financial Services Inc. is a $2.4 billion independent financial holding company based in St. Cloud. It is the holding company for Stearns Bank N.A. and Stearns Bank Upsala, N.A. It is recognized as one of the nation’s top-performing banks by both American Banker and Independent Banker magazines.

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