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VersaBank to Acquire Stearns Bank Holdingford in Minnesota, USA.

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MANews-(C)2009-2022

Canada-based digital banking and cyber security solutions company VersaBank's (TSX: VBNK) (NASDAQ: VBNK) US subsidiary, VersaHoldings US Corp., has signed a definitive agreement to acquire Minnesota, US-based Stearns Financial Services Inc's Stearns Bank Holdingford, N.A. subsidiary for an estimated USD 13.5m (CDN 17.4m), the company said.

SBH is a fully operational national bank, OCC (Office of the Comptroller of the Currency)-chartered Bank, focused on small business lending, which is expected to add approximately USD 60m in total assets to VersaBank, subject to any adjustments at closing.

Upon closing, SBH will be renamed VersaBank USA National Association. SFSI and its other subsidiaries (Stearns Bank N.A. (USD 2.2bn in assets) and Stearns Bank Upsala, N.A. (USD 75m in assets)) will continue to operate as usual.

Closing of the acquisition, expected before the end of VersaBank's fiscal year (October 31, 2022), is subject to regulatory approval in both the US and Canada.

Raymond James and Associates, Inc. served as financial advisor, Davis Polk and Wardwell LLP served as legal counsel, and Chain Bridge Partners, LLC acted as regulatory advisor to VersaBank in the transaction.

Stearns Financial Services Inc. is a well-capitalized, USD 2.4bn independent financial holding company based in St. Cloud, Minnesota.

It is the holding company for Stearns Bank N.A. and Stearns Bank Upsala, N.A. Recognized as one of the nation's top-performing banks by both American Banker and Independent Banker magazines...

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