VersaBank in Ontario, Canada, has received Federal Reserve approval to buy Stearns Bank Holdingford in Minnesota.
The $3.3 billion-asset VersaBank agreed to buy the $78 million-asset Stearns in June 2022. The deal would allow VersaBank to expand its receivable purchase program business.
“Applicants have conducted comprehensive due diligence and are devoting sufficient financial and other resources to address all aspects of the post-acquisition integration process for this proposal,” the Fed said in its approval “Applicants’ management has the experience and resources to operate the resulting organization in a safe and sound manner.”
The deal still needs approval from the Office of the Comptroller of the Currency and Canada’s Office of the Superintendent of Financial Institutions.
“For well over a decade, we have proven out our RPP model in Canada and now look forward to the opportunity to enter the world’s largest financing market and further capitalize on the significant operating leverage in our branchless, business-to-business digital banking model,” David Taylor, VersaBank’s president and CEO, said in a press release.