VersaBank, a Canadian bank, has received final approval from the Office of the Comptroller of the Currency (OCC) to proceed with its acquisition of Stearns Bank Holdingford N.A. [55eeb533]. This approval is the second and final U.S. regulatory approval required for the acquisition. VersaBank will now seek approval from its Canadian regulator, the Office of the Superintendent of Financial Institutions (OSFI), and upon receiving approval, will proceed to close the acquisition. Stearns Financial Services, Inc., the holding company for Stearns Bank Holdingford, will continue to exist and operate independently. The acquisition is targeted to close on August 30, 2024 [0259fcf9].
The acquisition will enable VersaBank to launch its Receivable Purchase Program financing solution in the U.S. market. The program provides a digital funding solution for finance companies that lend money to consumers and small businesses for big-ticket purchases. VersaBank's Receivable Purchase Program portfolio was valued at over C$3.1 billion (US$2.3 billion) as of April 30, 2024. Since the launch of its RPP in 2010, VersaBank has provided over C$9 billion (US$6.5 billion) in funding to North American finance companies [55eeb533].
VersaBank has also received approval from the Office of the Superintendent of Financial Institutions (OSFI) to proceed with its acquisition of Stearns Bank Holdingford N.A. The acquisition is targeted to close on August 30, 2024. Stearns Holdingford is an independent OCC-chartered national bank with $79 million in assets located in Holdingford, Minnesota [0259fcf9].
VersaBank is a Canadian Schedule I chartered bank that provides business-to-business digital banking and technology solutions for cybersecurity [0259fcf9].