VersaBank sells Minnesota branch to Stearns Bank

VersaBank (NASDAQ: VBNK) announced it has entered into a definitive agreement to sell assets associated with its only bank branch in Holdingford, Minnesota, to Stearns Bank National Association. The Office of the Comptroller of the Currency has approved the transaction.

The sale aligns with VersaBank's branchless, partner-based digital banking model, according to the company's press release. David Taylor, founder and president of VersaBank, stated the transaction will contribute to operating leverage as the bank continues expanding its Structured Receivable Program business in the United States.

The transaction 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. VersaBank said the sale will have minimal impact on its tangible book value and expects minimal financial implications beyond efficiency contributions.

VersaBank operated the Holdingford branch for 20 months. Heather Plumski, president of Stearns Bank, noted the organizations share core values and expressed interest in continued collaboration between the two banks.

The transaction is anticipated to close in the second quarter of 2026. VersaBank is a North American digital banking company with operations in Canada and the United States, focusing on business-to-business banking services and cybersecurity solutions through its subsidiary DRT Cyber Inc.

Stearns Bank National Association is a majority women-owned financial services institution headquartered in Minnesota with branch locations in Minnesota, Florida, and Arizona.

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