Today, Stearns Bank N.A. announced that they have closed on the acquisition of Horizon Bank’s Mortgage Warehouse Lending Division. This acquisition reinforces Stearns Bank’s industry-leading specialty lending services and allows the well-capitalized financial services institution to further diversify its portfolio of national banking, lending, and financing products and services.”


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“Stearns Bank is excited about the acquisition of such a well-run lending division, which further diversifies our national loan portfolio and creates another profitable source of revenue as we keep pace with accelerated growth,” said Al Doering, Chief Lending and M&A Officer at Stearns Bank. “Our top priorities are to provide an easy transition for Horizon Bank’s customers and help them to continue to reach their full financial potential. We also look forward to welcoming Horizon team members to Stearns Bank and leveraging their talents to deliver exceptional customer service.”

As part of the transaction, Stearns Bank will fully service current Mortgage Warehouse Lending customers and hire key Horizon Bank personnel to ensure a seamless transition and experience for customers nationwide. The acquisition was fully executed and effective on January 18, 2025. With this strategic transaction, Stearns Bank will serve as the financial services intermediary between a mortgage company and the final-end investor. 

“We are pleased to complete this transaction that was the result of exceptional cooperation between the banks, and which will provide our mortgage warehouse colleagues with the opportunity for continued success,” said Thomas Prame, CEO and President of Horizon Bank.

Moreover, Stearns Bank will provide short-term capital to mortgage companies via funding of individual mortgage loans. Those individual mortgage loans will be housed by Stearns Bank for a short-term period before they are purchased by the final end-investor. Once the individual mortgage loan is purchased by the final end-investor, Stearns Bank will earn fees, interest, and be repaid for the initial capital amount. 

To learn more about the Stearns Bank and Horizon Bank Mortgage Warehouse Lending transaction, read the latest FAQ document and visit www.StearnsBank.com