VersaBank in Canada to sell Minnesota branch back to Stearns Bank

VersaBank in Canada has agreed to sell its branch in Holdingford, Minn., to Stearns Bank.

The Office of the Comptroller of the Currency has already approved the sale. VersaBank obtained the bank when it bought Stearns Bank Holdingford in 2024.

The sale is expected to close in the second quarter. The price wasn’t disclosed. The branch has $101.7 million of deposits in mid-2025, based on data from the Federal Deposit Insurance Corp.

The sale “is consistent with our highly efficient branchless, partner-based, digital banking model and the resulting cost savings will contribute to our operating leverage as we continue to steadily ramp up our Structured Receivable Program business in the U.S.” David Taylor, VersaBank’s founder and president, said in a press release.

“The efficiency of our U.S. operations has already surpassed that of our Canadian operations,” Taylor added. “As a cloud-based bank with one of the most unique operating models in North America, we are well-positioned to continue to drive an enhanced efficiency ratio to industry-leading levels.”

The sale is expected to result in a one-time, non-cash intangible asset write-off of about $1.7 million.