Stearns Bank acquires Horizon Bancorp's mortgage warehouse division

Stearns Bank, headquartered in St. Cloud, Minnesota, has completed the acquisition of the mortgage warehouse lending assets from the banking subsidiary of Horizon Bancorp. This acquisition aims to diversify Stearns Bank's national loan portfolio and augment its revenue streams while servicing existing clients. Key staff from Horizon's division will transition to Stearns Bank to ensure service continuity. The transaction reflects ongoing changes in the warehouse lending industry, as players like Stearns seize opportunities amidst exits by major banks such as New York Community Bank, Comerica, and Fifth Third Bank due to shifts in risk management approaches. By the close of 2023, Stearns reported a 37% growth in total assets reaching over $3.2 billion and a net income of $34.9 million.