Sterling Federal Bank Fsb

What Sterling Federal Bank Fsb does

Sterling Federal Bank, F.S.B. is a mutual community bank founded in 1885 in Sterling, Illinois, operating under a Federal Savings Bank charter regulated by the Office of the Comptroller of the Currency (OCC). The bank serves personal, small-to-mid-sized business, and agricultural customers across Northwest Illinois (Lee, Whiteside, and Ogle counties) and Northeast Iowa (Clinton County) through 9 branch locations. As of December 31, 2025, the institution holds approximately $402.2 million in total deposits across 22,552 accounts and $349.9 million in total loans, for a loans-to-deposits ratio of 86.98%.

The bank's product portfolio spans consumer deposit accounts (Rewards Checking, Bright Checking, Money Manager Checking, Bank On Checking, savings, CDs, IRAs), consumer and mortgage lending (first mortgages, home equity, 100% home financing, auto/vehicle, unsecured loans, Visa consumer credit cards), commercial banking (commercial real estate loans, SBA loans, lines of credit, business checking tiers, Essential and Ultimate Business Banking Packages with ACH origination, wire transfers, Positive Pay fraud protection, and merchant remote deposit capture), and agricultural lending (farm real estate, operating lines, equipment, inventory, and Farmer Mac secondary market products). Digital channels include online banking, the SFB Mobile app on iOS and Android, eStatements with 18-month archive, and bill pay. Senior-targeted value-additions include the Four Seasons Club membership for customers age 50+ with $20,000+ deposits.

Revenue is generated primarily through net interest income on the spread between loan yields and deposit costs, supplemented by transaction-based fee income (overdraft/NSF charges, wire transfers, safe deposit boxes, merchant card processing) and referral income from third-party insurance, investment, and credit card partners. Customer acquisition is driven by community presence, local referrals, chamber and nonprofit board participation, and nine consecutive years of Best Places to Work in Illinois recognition. The institution operates as a mutual owned by its depositors rather than shareholders, with no parent company, private equity, or venture capital involvement, and is governed by a board led by Chairman Raymond P. Sharp and led operationally by President & CEO Bo Mays.

Name

Sterling Federal Bank Fsb

Legal name

Sterling Federal Bank, FSB

Website

https://sterlingfederal.com

Company type

Private

Founded year

1885

Operating status

Operating

Headcount range

11–50 employees

Short description

Sterling Federal Bank is a mutual community bank founded in 1885 serving personal, small business, and agricultural customers across Northwest Illinois and Northeast Iowa through 9 branches, with $402M in deposits and a full suite of consumer, commercial, and ag lending products.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Savings Institutions and Other Depository Credit Intermediation (522180), Savings Institutions and Other Depository Credit Intermediation (52218)

SIC

Savings Institution, Federally Chartered (6035)

akta.pro primary industry

Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA)

akta.pro secondary industries

Retail Lending (Personal Loans, Auto, Credit Lines) (FSABAAAB), Credit Cards & Revolving Credit (FSABAAAC), Agricultural & Rural Development Banks (FSABAKAE)

Keywords

• Community banking services
• Consumer lending
• Agricultural loans
• Commercial banking
• Deposit accounts

Headquarters

HQ city

Sterling

HQ country

United States

HQ region

North America

Offices9 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

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

Revenue model

1. Net Interest Income: Primary revenue stream from the spread between interest earned on loans (residential mortgages, commercial real estate, agricultural loans, consumer loans) and interest paid on deposits (checking, savings, money market, CDs, IRAs). This is a traditional bank's core earnings mechanism.
2. Fee Income: Non-interest fee income from account maintenance, overdraft/NSF charges, wire transfers, safe deposit boxes, check copies, notary services, ATM usage, wire transfers, and official checks. Secondary but significant revenue contributor.
3. Insurance and Investment Referrals: Revenue from referral arrangements for insurance products, investment services, and credit cards offered through third-party providers. Customers are referred to external providers for annuities, mutual funds, long-term care insurance, term life insurance, and credit cards.
4. Merchant Services: Fees from processing credit card, debit card, and mobile device payments for business customers through merchant services support.
5. Deposit Base: Total deposits of approximately $402 million as of December 31, 2025, generating float income and funding the bank's lending operations. Total branch deposits range from Sterling Main at ~$180M to smaller branches.

Pricing tiers

Go-to-market motion2 records

Distribution channels6 records

Marketing channels6 records

Core offering

Sterling Federal Bank is a mutual community bank offering deposit products (checking, savings, money market, CDs, IRAs) and lending products (residential mortgages, home equity, consumer loans, commercial real estate loans, agricultural loans, business credit) to individuals, businesses, and farmers across Northwest Illinois and Northeast Iowa. Services are delivered through 9 branch locations supplemented by online and mobile banking platforms, a dedicated Business Banking Team, and an Ag Team with over 80 years of combined lending experience.

Product overview

Sterling Federal Bank is a $450 million community bank offering a comprehensive suite of banking products and services across personal, business, and agricultural segments. The bank's product portfolio centers on core deposit products (checking, savings, CDs, IRAs) and lending products (real estate mortgages, home equity, vehicle loans, commercial loans, agricultural loans). Digital banking services include online banking, mobile banking (SFB Mobile App), eStatements, and bill payment. Business banking is delivered through Essential and Ultimate Business Banking packages providing ACH origination, wire transfers, Positive Pay fraud protection, merchant services, and remote deposit capture. The Four Seasons Club sub-brand serves customers aged 50+ with specialized benefits. The bank operates 9 branch locations serving Northwest Illinois and Northeast Iowa communities.

Differentiator

Problem solved

Functional benefit

Brands

• Four Seasons Club: A senior membership program for customers aged 50+ with deposits of $20,000 or more, offering travel benefits, free services, and social events.
• SFB Mobile

Products and services

• Rewards Checking Interest-bearing personal checking account with rewards including cell phone protection, roadside assistance, identity theft aid, accidental death insurance, health savings, and shopping/dining discounts. $50 minimum to open.
• Bright Checking Basic personal checking account with no minimum balance requirement and free eStatements. $50 minimum to open.
• Money Manager Checking Premium interest-bearing checking account with $15,000 minimum to open, offering comprehensive personal banking services.
• Bank On Checking Entry-level personal checking account designed for unbanked customers with $25 minimum to open and no minimum balance requirement.
• Savings Accounts Five savings account options including Minor Savings, Bright Savings, Ultra Bright Savings, Christmas Club, and Retirement Savings with various minimum opening amounts and balance requirements.
• Super Money Market Checking High-yield checking account with check writing privileges and check imaging, requiring $10,000 minimum to open.
• Everest Money Market Savings Money market savings account offering highest money market interest rates with convenient access, requiring enrollment in eStatements.
• Certificates of Deposit Term deposit accounts requiring $500 minimum to open with terms from 6 months to 5 years, featuring a Buildable option for incremental deposits.
• IRA Products Retirement savings accounts including Traditional, Roth, and SEP IRA options available as certificates of deposit or savings accounts.
• Four Seasons Club Membership program for customers age 50 and older with $20,000 or more in deposits, offering travel benefits, social events, free services such as checking, cashier's checks, money orders, and safe deposit box renewal.
• First Mortgage Loans Residential mortgage products including fixed rate conventional and bi-weekly loans with in-house servicing for home purchase and refinancing.
• Home Equity Lines & Loans Home equity products allowing homeowners to borrow against accumulated equity in their properties for various purposes.
• 100% Home Financing Home purchase financing product with no down payment required for qualified borrowers.
• Auto & Truck Loans Vehicle financing for cars, trucks, watercraft, motorcycles, snowmobiles, motor homes, UTVs and side-by-sides with 24-hour approval.
• Unsecured Loans Personal loans for debt consolidation, vacations, remodeling and other consumer purposes without collateral requirements.
• Visa Consumer Credit Cards Consumer credit card products including Visa Platinum Cash Rewards, Visa Platinum Rewards, Visa Rewards, and Visa Community Builder for credit building.
• Visa Debit Card Personal debit card with Visa acceptance worldwide and surcharge-free Allpoint ATM access at over 55,000 ATMs.
• Visa Gift & Travel Cards Prepaid Visa cards available for gifting and international travel with no funds expiration, offered at $4.95 per gift card and $9.95 per travel card.
• Farm Real Estate Loans Fixed rate loans for farmland and agricultural buildings with various term and amortization options for agricultural operations.
• Operating Lines of Credit Agricultural operating credit for input costs and rents with fixed and variable rate options.
• Equipment Loans Agricultural equipment financing for vehicles and machinery with fixed rate options.
• Inventory Loans Agricultural inventory financing for livestock or grain with variable and fixed rate options.
• Farmer Mac Loan Products Secondary market agricultural loan products offered through Farmer Mac partnership for expanded financing capacity.
• Commercial Real Estate Loans Fixed and variable rate commercial real estate financing with flexible terms and amortization for business customers.
• Lines of Credit Commercial operating credit lines for cash management with fixed and variable rate options for businesses.
• SBA Loan Products Small Business Administration approved lending products for qualifying businesses.
• Small Business Checking Business checking account with $100 minimum to open, no monthly fee, and 100 transaction limit per statement cycle.
• Premier Business Checking Business checking account with $5,000 minimum balance to avoid $15 monthly fee, tiered interest, 200 transaction limit, and dedicated business banking team access.
• Commercial Advantage Checking Commercial checking account with $100 minimum to open, $20 monthly fee potentially offset by compensating balances, and earnings credit based on balance.
• Essential Business Banking Package Business banking service package including online banking, bill pay with CheckFree, Mobiliti Business mobile banking, merchant services, and business account sweeps at $15 per statement cycle.
• Ultimate Business & Ag Banking Package Premium business banking package adding ACH origination, wire transfers, Positive Pay fraud protection, and merchant remote deposit capture to Essential package features at $20 per statement cycle.
• Visa Business Debit Cards Business debit card with Allpoint Network surcharge-free ATM access and worldwide Visa acceptance.
• Visa Business Credit Cards Business credit cards including Visa Platinum Business, Visa Platinum Business Rewards, and Visa Corporate Card for business spending needs.
• SFB Mobile App Mobile banking application for iOS and Android enabling account access, bill payment, mobile deposits, card on/off controls, transfers, eStatements, and branch location finder.
• Online Banking 24/7 web-based banking platform for account balance checking, transaction history, fund transfers, alerts, bill pay, and online account opening.
• Bill Pay Online bill payment service with scheduling, recurring payments, Pay a Person transfers using email or mobile number, and external account transfers to other financial institutions.
• eStatements Electronic statement delivery service with 18-month online archive, email notifications, and Adobe Acrobat format viewing.
• ACH Origination Electronic payment processing for payroll direct deposit, receivables collection, and cash concentration between banks, compliant with NACHA Operating Rules.
• Wire Transfer Services Online wire transfer services including repetitive templates for recurring transfers and non-repetitive one-time transfers with Safe Wire security. Domestic outgoing $30, foreign outgoing $70.
• Positive Pay Check fraud prevention service that verifies issued checks against posted transactions and reports non-matching items for payment decision.
• Merchant Remote Deposit Capture Electronic check deposit service allowing businesses to scan and transmit deposits from their office using dedicated equipment.
• Merchant Card Services Credit and debit card processing services for businesses with 24/7 customer support and next-day funding for retail and mobile merchants.
• Business Account Sweeps Automated balance management service transferring excess funds between accounts based on target balances for cash management.

Quantifiable outcome

• Loans to deposits ratio of 86.98% as of December 31, 2025, demonstrating effective deployment of deposits into lending activities.
• +3 more outcomes

Named customers1 record

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature6 records

Partnerships

Nine partnerships are on record, tiered core and minor.

• Allpoint NetworkcoreTechnology or IntegrationSterling Federal Bank is a member of the Allpoint Network, providing customers access to over 55,000 surcharge-free ATMs across the United States, Canada, Mexico, United Kingdom, and Australia. This partnership enhances the bank's ATM footprint without additional branch investment.
• Farmer MaccoreTechnology or IntegrationSterling Federal Bank is a Farmer Mac lender and offers Farmer Mac loan products to agricultural customers to help meet their financing needs. Farmer Mac provides a secondary market for agricultural mortgages, enabling the bank to offer more competitive rates and larger loan amounts to farmers.
• VisacoreTechnology or IntegrationThe bank issues Visa debit cards, credit cards, gift cards, and travel cards under the Visa brand. This partnership enables card acceptance globally and provides the Visa brand recognition that customers expect for electronic payments.
• ApplyCommunityCardminorChannel Partner/ Reseller/ DistributorOnline application portal used by Sterling Federal Bank for credit card applications. Customers are directed to ApplyCommunityCard's platform to submit credit card applications for Visa consumer and business credit cards.
• InsuranceAisleminorChannel Partner/ Reseller/ DistributorInsurance referral partner providing access to insurance products through the bank's website at sterlingfederal.insuranceaisle.com. The bank earns referral fees from directing customers to purchase insurance products.
• SFB Investment CenterminorChannel Partner/ Reseller/ DistributorInvestment services partner accessible through www.sfbinvestmentcenter.net, offering annuities, mutual funds, stocks, bonds, long-term care insurance, and term life insurance. The bank refers customers to this partner for investment and insurance products.
• United Way of Whiteside CountyminorStrategic or Co-development PartnerIn 2023, Sterling Federal Bank employees donated $37,400 to United Way in their communities. The bank maintains an ongoing partnership with United Way through employee giving campaigns and executive board participation (President & CEO Bo Mays serves on the board).
• NACHAcoreOthersSterling Federal Bank operates as an ACH Originator and is subject to NACHA Operating Rules and regulations. The bank processes ACH debits and credits including payroll direct deposit, ACH debits for receivables collection, and cash concentration. NACHA publishes annual rule updates that govern the bank's ACH operations.
• Office of the Comptroller of the Currency (OCC)coreOthersSterling Federal Bank is regulated by the OCC as a federal savings bank. The OCC conducts Community Reinvestment Act (CRA) performance evaluations and reviews the bank's record of meeting local credit needs. The bank's CRA public file is maintained and available to the public.

Scale indicators9 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Byline Bancorp: Chicago-based community bank holding company with multi-state Midwest operations serving small businesses, consumers, and commercial clients. Comparable to Sterling Federal in providing local decision-making and a full suite of personal/business/ag lending products, though at significantly larger scale.
• Old Second Bancorp: Community bank holding company headquartered in Aurora, Illinois serving consumers, businesses, and municipalities across the Chicago western suburbs. Directly comparable geographic and customer overlap with Sterling Federal's Illinois footprint.
• Nicolet National Bank: Green Bay, Wisconsin-based community bank with full-service consumer, business, and ag lending operations across Wisconsin. Comparable asset size, Midwest community bank model, and full-service product suite (deposits, mortgages, commercial, ag).
• Mercantile Bank Corporation: Grand Rapids, Michigan-based community bank holding company providing commercial, retail, and mortgage banking across Michigan. Similar asset size range, comparable full-service community banking model with strong commercial lending focus.
• QCR Holdings: Quad Cities-based community bank holding company operating Springfield State Bank, Community State Bank, and other Iowa/Illinois charters. Direct geographic peer in Clinton County, Iowa and the broader Illinois/Iowa border region Sterling Federal serves.
• HBT Financial / Heartland Financial USA: Midwest community bank holding company with substantial Iowa/Illinois operations across consumer, agricultural, and commercial lending. Closely comparable business mix (ag lending, small business banking, mortgage) and similar Midwest footprint.
• West Bancorporation (West Bank): West Des Moines-based community bank holding company serving Iowa markets with consumer, business, and ag banking products. Comparable size range and full-service community banking model with strong local-decision-making emphasis.
• Investors Community Bancorp: Manitowoc, Wisconsin-based community bank serving Northeast Wisconsin with consumer and commercial products. Similar asset size, similar community-bank operating philosophy, and comparable competitive position against larger regional banks.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/sterling-federal-bank-main

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles15 records

Funding overview

Funding rounds

Investors

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

M&A

Investments

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

Frequently asked questions about Sterling Federal Bank Fsb