Stearns Financial Services Inc. (SFSI) announced the Federal Reserve has approved the acquisition of one of its affiliate locations, Stearns Bank Holdingford, by Canadian-based VersaBank.

SFSI signed a definitive agreement in 2022 for $13.5 million with VersaHoldings US Corp to acquire the singular location with the intention of launching its expansion into the United States.

SFSI and its subsidiaries, Stearns Bank National Association and Stearns Bank Upsala National Association will continue to expand lending and deposit services across the United States, gaining momentum with top IDC ratings and recognition among the nation’s highest-performing banks.

The Federal Reserve is one of the U.S. regulatory approvals needed for VersaBank to move forward with the acquisition. A decision from the OCC, the other U.S. regulatory authority, is expected soon. Upon receiving approval from the OCC, VersaBank will promptly seek approval for the acquisition from the Canadian regulator, the Office of the Superintendent of Financial Institutions.