What Stearns Bank does

Stearns Bank, legally Stearns Financial Services, Inc., is a privately held community bank founded in 1912 and headquartered in St. Cloud, Minnesota. Operating through its national bank subsidiary Stearns Bank N.A., the bank serves small businesses, affordable housing developers, equipment buyers, rural/agricultural borrowers, nonprofits, and individual consumers across Minnesota, Arizona, and Florida, with nationwide lending reach via dedicated SBA and Equipment Finance divisions. Its product portfolio spans SBA loans, USDA Rural Development loans, equipment financing, commercial real estate and construction loans, farm and land loans, sustainable energy financing, business acquisition loans, and specialized affordable housing finance (active since 1987 with more than 40,000 units financed). Deposit products include business and personal checking and savings, CDs, IRAs, and high-balance deposits serviced through the ICS/CDARS network, complemented by niche offerings such as Salaam Banking (Sharia-compliant), BankONStearns (unbanked/underbanked), SmartStart Banking (teens), and Impact Accounts.

The bank's technology stack centers on StearnsConnect, a proprietary online and mobile banking platform with bill pay, transfers, mobile deposit, and customer portal access for loan and deposit management, supplemented by a Deposit Control Panel for ICS sweep accounts and a 24-7 Card Access portal for credit card servicing. Third-party integrations include Autobooks (invoicing and payments), Lithic (BIN sponsorship for FinTech card programs), and standard FDIC/ICS network connectivity. The bank maintains seven physical branches across three states and distributes lending products through relationship-based direct sales via specialized division teams.

Stearns Bank generates revenue primarily through interest income on its loan portfolio (SBA, equipment, CRE, USDA, affordable housing, construction, farm), fee income from deposit services, account maintenance, loan origination, and merchant services, and deposit-funded net interest margin on checking, savings, CDs, and IRAs. Pricing is not publicly disclosed and is determined per customer based on creditworthiness and market conditions. Recent strategic activity includes divestiture of Stearns Bank Upsala, N.A. to Battle Financial (October 2025), acquisition of VersaBank's Holdingford, Minnesota branch (Q2 2026), and a Lithic partnership (January 2026) extending the bank into FinTech card-issuing infrastructure.

Name

Stearns Bank

Legal name

Stearns Financial Services, Inc.

Website

https://stearnsbank.com

Company type

Private

Founded year

1912

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Stearns Bank is a privately held community bank founded in 1912, headquartered in St. Cloud, Minnesota, specializing in SBA loans, equipment financing, USDA rural development lending, and affordable housing finance, serving small businesses, developers, and consumers across Minnesota, Arizona, and Florida with nationwide lending reach.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221)

SIC

State Commercial Banks (6022), Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

akta.pro secondary industries

Balance-Sheet / Portfolio CRE Lending (FSALADAG), Agricultural & Rural Development Banks (FSABAKAE), SBA/USDA Government-Backed Loan Intermediation (FSAEAEAI)

Keywords

• SBA loan financing
• Equipment financing
• Community banking
• Commercial lending
• Affordable housing finance

Headquarters

HQ city

Saint Cloud

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Interest Income: Traditional banking revenue from interest earned on loans including SBA loans, equipment financing, commercial real estate loans, USDA rural development loans, farm and land loans, and construction loans.
2. Fee Income: Banking fees including account maintenance fees, transaction fees, loan origination fees, merchant services fees, and other banking service charges.
3. Deposit Services: Revenue from deposit products including business and personal checking/savings accounts, CDs, IRAs, and high-balance deposits with insured cash sweep options.

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels6 records

Core offering

Stearns Bank is a privately held community bank that provides SBA loans, equipment financing, USDA Rural Development loans, commercial real estate and affordable housing finance, farm and land loans, and traditional business and personal deposit products (checking, savings, CDs, IRAs, credit cards). It complements these lending and deposit products with digital banking via its proprietary StearnsConnect platform and specialized programs including Sharia-compliant Salaam Banking, BankONStearns for unbanked communities, SmartStart teen banking, and Impact Accounts.

Product overview

Stearns Bank is a community bank offering a comprehensive suite of banking products through a platform-plus-modules architecture. The core banking platform encompasses deposit products (checking, savings, CDs, IRAs, high-balance deposits) supplemented by specialized lending divisions (SBA Loans, Equipment Finance, Commercial Real Estate, Affordable Housing, USDA Rural Development, Farm & Land Loans, Sustainable Energy, Construction, and Business Acquisition). Digital banking services include the proprietary StearnsConnect online/mobile platform with integrated third-party tools like Autobooks for invoicing and Merchant Services for payment processing. Specialized banking sub-brands include Salaam Banking (Sharia-compliant), SmartStart Banking (teen accounts), BankONStearns (unbanked communities), and Impact Accounts (socially responsible deposits). The bank also provides Equipment Finance and SBA Lending as dedicated national divisions, with recent partnership expansion through Lithic for card issuing infrastructure services.

Differentiator

Problem solved

Functional benefit

Products and services

• BusinessSmart Checking Business checking account with full online banking capabilities, uncomplicated account options, and live support from Stearns Bank experts for small and mid-sized business customers.
• BusinessSmart Savings Business savings account offering competitive interest rates and online banking access for business customers.
• BusinessEssentials Checking Streamlined business checking account designed for the needs of small businesses, with simplified features and access to digital banking.
• Above The Norm Checking Personal checking account with no minimum balance requirements and fee-free ATM access nationwide for individual consumers.
• Above The Norm Savings Personal savings account with competitive rates and easy online access for individual consumers.
• Salaam Banking Sharia-compliant banking products reviewed and approved by an independent Sharia Advisory Board, offered in personal, business, and nonprofit variants for faith-based and Muslim customers.
• SmartStart Banking Teen banking program designed to help teenagers develop financial literacy and independence through guided account features.
• BankONStearns Banking program designed to serve unbanked and underbanked communities with accessible deposit accounts.
• Impact Accounts Personal Impact Accounts where deposited funds support initiatives in sustainable energy, affordable housing, and nonprofits.
• SBA Loans Small Business Administration loans (including SBA 7(a) and SBA Express) for business growth, startup, or acquisition, offering favorable terms for borrowers who may not qualify for traditional financing.
• Equipment Finance Financing solutions for equipment acquisition including commercial vehicles, manufacturing, construction, medical, and technology equipment, enabling businesses to invest in growth without large upfront capital outlays.
• Commercial Real Estate Finance Nationwide commercial financing for construction, affordable housing, opportunity zones, and Native American community developments.
• Farm & Land Loans Agricultural lending products for farmers and ranchers, including operating loans and land acquisition financing.
• USDA Rural Development Loans Rural development financing including USDA Business & Industry loans, Food Supply Chain programs, and loan guarantee application packaging services for rural businesses.
• Sustainable Energy Financing Loans supporting renewable energy projects including solar, wind, and other sustainable energy initiatives.
• Business Acquisition Loans Financing for acquiring existing businesses, particularly beneficial when collateral requirements exceed traditional bank standards.
• Construction Loans Short-term financing for commercial construction projects.
• Affordable Housing Finance Specialized lending for affordable housing developers since 1987, covering land acquisition, pre-development, construction, rehabilitation, equity bridge loans, and debt and bond financing for LIHTC-financed developments.
• StearnsConnect Online & Mobile Banking Proprietary online and mobile banking platform providing 24/7 account access, bill pay, mobile deposit, and account management for business and personal customers.
• Merchant Services Payment processing services enabling businesses to accept customer payments through integrated card processing.
• Autobooks Integrated invoicing and payment collection platform for small businesses, embedded within Stearns Bank's business banking offerings.
• Certificates of Deposit (CDs) Time deposit accounts with competitive interest rates, available to both personal and business customers.
• IRAs Individual Retirement Accounts for personal retirement savings and planning.
• High-Balance Deposits Deposit solutions for customers with balances exceeding standard FDIC insurance limits, utilizing the Insured Cash Sweep (ICS/CDARS) network for full FDIC coverage.
• Credit Cards (Personal and Business) Personal and business credit card accounts, including Nonprofit Credit Cards, managed through the 24-7 Card Access portal.

Quantifiable outcome

• 40,000+ affordable housing units financed since 1987
• +1 more outcomes

Named customers7 records

Segments7 records

Ideal customer profiles6 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature3 records

Partnerships

Four partnerships are on record, tiered minor and core.

• VersaBankminorChannel Partner/ Reseller/ Distributor · 24 March 2026Stearns Bank acquired VersaBank's only physical branch in Holdingford, Minnesota. This acquisition represents Stearns Bank taking ownership of a branch that VersaBank had previously acquired in June 2022 for approximately $13.5 million. The transaction was approved by the Office of the Comptroller of the Currency (OCC) and expected to close in Q2 2026.
• LithiccoreTechnology or Integration · 28 January 2026Lithic partnered with Stearns Bank to expand its partner bank network and strengthen card issuing infrastructure for FinTech and enterprise clients across the United States. Under the agreement, Stearns Bank acts as a BIN sponsor across major payment networks for Lithic's program-managed services, enabling FinTechs to launch and manage consumer and commercial credit, debit, and prepaid card programs.
• Association of Women's Business Centers (AWBC)coreStrategic or Co-development Partner · 22 December 2025Stearns Bank partnered with AWBC to launch and support the WBC Childcare Accelerator Award Program in Summer 2025 across seven U.S. hubs. The program demonstrated significant improvements in financial management, business planning, and operational readiness among licensed childcare providers, with 28 participants showing notable gains.
• ColliersminorOthersStearns Bank was one of six community banks that financed Rhino Health's failed nitrile safety glove factory project through Colliers' Minneapolis financing office. Stearns Bank subsequently sued Colliers alleging the company misled them about Rhino's financial condition while collecting over $2 million in undisclosed fees. This is a legal dispute, not a partnership.

Scale indicators4 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Live Oak Bank: Live Oak Bank is a publicly traded digital-first community bank specializing in SBA lending and small business financing. It is highly comparable to Stearns Bank given its parallel focus on SBA loans, small business banking, and niche industry lending verticals.
• Byline Bancorp: Byline Bancorp is a Chicago-based community bank holding company with a strong focus on SBA lending and small business banking. It directly competes with Stearns Bank in SBA 7(a) origination and small business deposit services.
• First Internet Bank: First Internet Bank is an Indiana-based digital-first bank offering commercial lending, SBA loans, and specialty banking services. It is comparable to Stearns Bank given its online banking platform, SMB focus, and specialty lending divisions.

Broad incumbents

• Customers Bank: Customers Bank is a Pennsylvania-based commercial bank with specialty lending divisions including SBA and consumer lending through its BankMobile unit. It is comparable as a broader commercial banking incumbent with niche lending overlays similar to Stearns Bank's specialty divisions.
• CVB Financial (Citizens Business Bank): CVB Financial operates Citizens Business Bank, a California-based commercial bank providing SBA loans, commercial real estate financing, and business banking services. It is comparable as a larger community-oriented bank with similar SBA and CRE lending operations.
• Pacific Premier Bancorp: Pacific Premier Bancorp is an Irvine, California-based community bank holding company with commercial banking, SBA lending, and specialty finance divisions. Comparable to Stearns Bank through its diversified commercial lending and business banking offerings.

Emerging players

• Axos Financial: Axos Financial is a Nevada-based digital banking company offering commercial, small business, and consumer banking products. It is comparable to Stearns Bank through its digital-first commercial banking model, BIN sponsorship work, and small business focus.

Regional players

• Banc of California: Banc of California is a West Coast-focused commercial bank offering SBA loans, equipment financing, and business banking. It overlaps with Stearns Bank's specialty lending products and multi-state small business banking, though concentrated on the western U.S.
• Primis Financial: Primis Financial is a Virginia-based community bank holding company offering commercial banking, SBA lending, and mortgage services. Comparable to Stearns Bank in specialty SBA and small business lending within a regional footprint.

Others

• StoneX Financial (BIN sponsorship): StoneX Group operates a global financial services network including BIN sponsorship and program management through its payments division. It is thematically comparable to Stearns Bank's Lithic BIN sponsorship relationship as a sponsor-bank or infrastructure provider for fintech card programs.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/stearnsbank
• YouTubeyoutube.com/channel/UCtd3vfVDule3ZKnhDlU6Hjw
• Facebookfacebook.com/stearnsbankna
• LinkedInlinkedin.com/company/stearns-bank
• Instagraminstagram.com/stearnsbank

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Stearns Bank