VersaBank’s Acquisition of Stearns Bank Holdingford

Davis Polk advised VersaBank on the deal.

VersaBank announced its acquisition of Stearns Bank Holdingford, N.A., a subsidiary of Stearns Financial Services Inc. Closing of the acquisition, expected before the end of VersaBank’s fiscal year (October 31, 2022), is subject to regulatory approval in both the United States and Canada.

VersaBank became the world’s first fully digital financial institution when it adopted its highly efficient business-to-business model using its proprietary state-of-the-art financial technology to profitably address underserved segments of the Canadian banking market in the pursuit of superior net interest margins while mitigating risk.

Stearns Financial Services Inc. is a well-capitalized, $2.4 billion independent financial holding company based in St. Cloud, Minnesota. Stearns Financial Services is the holding company for Stearns Bank N.A. and Stearns Bank Upsala, N.A.

The Davis Polk financial institutions M&A team included partners Evan Rosen (Picture) and Margaret E. Tahyar, counsel Christopher M. Paridon and associates Joshua B. Pittell and Jung Eun Choi. Partner Shane Tintle provided capital markets advice. Partner Frank J. Azzopardi provided intellectual property advice. Partner Jennifer S. Conway provided executive compensation advice. Partner Kara L. Mungovan and associate Yixuan Long provided tax advice.

Involved fees earner: Frank Azzopardi – Davis Polk & Wardwell; Jung Eun Choi – Davis Polk & Wardwell; Jennifer Conway – Davis Polk & Wardwell; Yixuan Long – Davis Polk & Wardwell; Kara Mungovan – Davis Polk & Wardwell; Christopher Paridon – Davis Polk & Wardwell; Joshua Pittell – Davis Polk & Wardwell; Evan Rosen – Davis Polk & Wardwell; Margaret Tahyar – Davis Polk & Wardwell; Shane Tintle – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: VersaBank;