Stearns Bank is acquiring a bank branch located in Holdingford, Minn., from VersaBank.
It is the only branch that VersaBank, a digital bank and cybersecurity solutions provider, owns.
“The sale of our only retail bank branch back to Stearns Bank 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, founder and president, VersaBank, said. “The efficiency of our U.S. operations has already surpassed that of our Canadian operations. 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.”
Taylor said VersaBank was “privileged and proud” to have served its customers in Holdingford over the past twenty months.
“We thank you for the opportunity to be part of the community and look forward to a seamless transition back to the incredible team at Stearns Bank,” Taylor said.
VersaBank, federally chartered in both Canada and the U.S., has a branchless, digital, business-to-business model based on its proprietary technology that enables it to address underserved segments of the banking industry in a significantly risk mitigated manner.
“It has been a continued pleasure working with the VersaBank team. We are proud of the Holdingford team for their stability and commitment throughout this transition, maintaining a strong community presence over the past 20 months. Our organizations share core values, and we look forward to continued collaboration between our two banks, both of which are committed to making a meaningful difference,” Heather Plumski, president, Stearns Bank, said.
For VersaBank, the Holdingford sale is expected to result in a one-time, non-cash intangible asset write off of approximately $1.7 million in the second quarter of fiscal 2026. The transaction is anticipated to close in the second quarter of 2026.