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VersaBank receives approval for Stearns Bank aquisition

Monday 17 June 2024 15:39 CET | News

VersaBank, a US-based digital banking and cybersecurity technology provider, has received approval from the OCC to proceed with its proposed acquisition of Stearns Bank.

This approval from the OCC represents the final US regulatory requirement for the acquisition. VersaBank will now seek approval from its Canadian regulator, the Office of the Superintendent of Financial Institutions (OSFI). Following OSFI approval, VersaBank plans to complete the acquisition promptly.

VersaBank secures regulatory approval for acquisition of Stearns Bank

The acquisition will allow VersaBank to expand its Receivable Purchase Program (RPP), a funding solution for finance companies, into the US market. This program has already seen significant growth in Canada, where it provides financing for consumer and small business loans. With this acquisition, VersaBank aims to extend its innovative financial solutions and enhance its presence in the U.S. banking sector.

The acquisition of Stearns Bank Holdingford N.A. by VersaBank is notable not only for its cross-border implications but also for the regulatory hurdles it had to clear. The Office of the Comptroller of the Currency (OCC), the primary regulator for national banks in the US, plays a crucial role in overseeing such transactions to ensure the stability and integrity of the banking system. The approval from the OCC, along with the anticipated approval from the Office of the Superintendent of Financial Institutions (OSFI) in Canada, highlights the rigorous oversight required for cross-border banking acquisitions and underscores the significance of this transaction in the broader context of North American banking regulations.

Profile of Stearns Bank Holdingford and parent company

Stearns Bank Holdingford N.A is an independent national bank in Minnesota, with USD 79 million in assets. It is owned by Stearns Financial Services, which also owns Stearns Bank Upsala National Association and Stearns Bank National Association. These other institutions will continue to operate independently and are not included in the acquisition.

Stearns Financial Services, a well-capitalised financial holding company with approximately USD 3.3 billion in assets, will continue to manage its other banking entities independently. The company has been recognised for its performance in affordable housing, construction finance, and small business lending.


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Keywords: acquisition, banks, digital banking, cybersecurity, regulation
Categories: Banking & Fintech
Companies: OCC, Stearns Bank, VersaBank
Countries: United States
This article is part of category

Banking & Fintech

OCC

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Stearns Bank

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VersaBank

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