We are advising VersaBank on the transaction

Davis Polk is advising VersaBank on 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 includes partners Evan Rosen and Margaret E. Tahyar, counsel Christopher M. Paridon and associates Joshua B. Pittell and Jung Eun Choi. Partner Shane Tintle is providing capital markets advice. Partner Frank J. Azzopardi is providing intellectual property advice. Partner Jennifer S. Conway is providing executive compensation advice. Partner Kara L. Mungovan and associate Yixuan Long are providing tax advice. Members of the Davis Polk team are based in the New York and Washington DC offices.