VersaBank Stock Hits 52-Week High on Acquisition of Stearns Bank

Core Insights - VersaBank's shares reached a 52-week high of $14.22, closing at $13.40, driven by the acquisition of Stearns Bank Holdingford N.A. [1] - The acquisition of Stearns Bank, valued at $62 million in assets, was completed on August 30, 2024, for nearly $14 million in cash [1][3]. Acquisition Details - VersaBank acquired 100% of the outstanding shares of Stearns Bank, taking over approximately $54.1 million in deposits and liabilities, and $61.1 million in assets [3]. - Following the acquisition, Stearns Bank was rebranded as VersaBank USA N.A. [4]. Receivable Purchase Program (RPP) - The acquisition marks the launch of VersaBank's Receivable Purchase Program (RPP) in the U.S., which has seen significant growth in Canada [2]. - RPP aims to provide secure funding solutions for point-of-sale finance companies, targeting a large underserved segment of the multi-trillion-dollar U.S. market [2][5]. Strategic Benefits - The acquisition is expected to enhance VersaBank's earnings per share in the first year and broaden its loan portfolio [6]. - The RPP will allow VersaBank to operate efficiently in the consumer and small business financing markets, leveraging its branchless, digital model [6]. Market Performance - VersaBank's shares have increased by 38% over the past three months, contrasting with an 8.1% decline in the industry [9].