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VERSABANK TO ACQUIRE OCC-CHARTERED NATIONAL US BANK, PROVIDING PLATFORM FOR GROWTH IN THE UNITED STATES
VERSABANK TO ACQUIRE OCC-CHARTERED NATIONAL US BANK, PROVIDING PLATFORM FOR GROWTH IN THE...
About this update from Versabank
[{"type":"text","content":"\n \n \n \n VERSABANK TO ACQUIRE OCC-CHARTERED NATIONAL US BANK, PROVIDING PLATFORM FOR GROWTH IN THE UNITED STATES\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n LONDON, ON\n \n \n ,\n \n \n June 14, 2022\n \n \n /CNW/ - VersaBank (\"VersaBank\" or the \"Bank\") (TSX: VBNK) (NASDAQ: VBNK), a leader in digital banking and cyber security solutions, today announced that, through its wholly owned U.S. subsidiary, VersaHoldings US Corp., it has signed a definitive agreement to acquire\n \n Minnesota\n \n -based Stearns Bank Holdingford, N.A. (\"SBH\"), a privately held, wholly owned subsidiary of Stearns Financial Services Inc. (\"SFSI\") based in St. Cloud, Minnesota, for an estimated\n \n US$13.5million\n \n (CA$17.4 million) (subject to adjustment at closing). 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\n \n US$60 million\n \n in total assets to VersaBank, subject to any adjustments at closing. Upon closing, SBH will be renamed VersaBank\n \n USA\n \n National Association. SFSI and its other subsidiaries (\n \n Stearns Bank N.A\n \n . (\n \n $2.2 billion\n \n in assets) and Stearns Bank Upsala, N.A. (\n \n $75 million\n \n in assets)) will continue to operate as usual.\n \n \n \n \n \n \n \n \n \n \n HIGHLIGHTS OF VERSABANK'S ACQUISITION\n \n \n \n \n Provides VersaBank with access to U.S. deposits to fuel the growth of its Receivable Purchase Program business, which VersaBank recently launched in the U.S. following a period of significant growth and success in\n \n Canada\n \n ;\n \n \n Expected to be accretive to VersaBank's earnings per share within the first year after closing; and,\n \n \n VersaBank\n \n USA\n \n is expected to be well capitalized on closing with a Total Capital ratio in excess of 10%.\n \n \n \n \"This acquisition represents a transformational next step in VersaBank's long-term growth strategy,\" said\n \n David Taylor\n \n , President and Chief Executive Officer...