Press Release: VERSABANK FOURTH QUARTER RESULTS DEMONSTRATE OPERATING LEVERAGE OF BUSINESS MODEL: STRONG GROWTH IN RPP ASSETS DRIVES RECORD REVENUE

Dow Jones12-10

VersaBank's 2025 annual audited Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") will be available today online at www.versabank.com/investor-relations, SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.shtml. Supplementary Financial Information will also be available on our website at www.versabank.com/investor-relations. All amounts are in Canadian dollars unless otherwise noted. All interim financial information within this earnings release is unaudited and based on interim Consolidated Financial Statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. All annual financial information herein was derived from VersaBank's 2025 annual audited Consolidated Financial Statements and MD&A.

LONDON, ON, Dec. 10, 2025 /CNW/ - VersaBank (or the "Bank") (TSX: VBNK) $(VBNK)$, a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today reported its results for the fourth quarter and fiscal year ended October 31, 2025. All figures are in Canadian dollars unless otherwise stated.

CONSOLIDATED FINANCIAL SUMMARY

 
(unaudited)         As at or for the three months ended                    As at or for the year ended 
                    October 31   July 31              October 31           October 31   October 31 
(thousands of       2025         2025         Change  2024         Change  2025         2024         Change 
Canadian dollars 
except per share 
amounts) 
Financial results 
 Total revenue         $ 35,092     $ 31,583    11 %     $ 27,285    29 %    $ 124,641    $ 111,633    12 % 
 Cost of funds*          3.15 %       3.33 %   (5 %)       4.11 %  (23 %)       3.37 %       4.04 %  (17 %) 
 Net interest 
  margin*                2.29 %       2.25 %     2 %       2.12 %     8 %       2.18 %       2.27 %   (4 %) 
 Net interest 
  margin on credit 
  assets*                2.65 %       2.55 %     4 %       2.34 %    13 %       2.52 %       2.52 %     0 % 
 Return on average 
  common equity*         3.89 %       4.94 %  (21 %)       5.28 %  (26 %)       6.11 %      10.16 %  (40 %) 
 Adjusted return 
  on average 
  common equity*         7.81 %       7.24 %     8 %       5.28 %    48 %       7.85 %      10.16 %  (23 %) 
 Net income               5,204        6,582  (21 %)        5,516   (6 %)       28,458       39,748  (28 %) 
 Adjusted net 
  income*                10,549        9,670     9 %        5,516    91 %       36,891       39,748   (7 %) 
 Income per common 
  share basic and 
  diluted                  0.16         0.20  (20 %)         0.20  (20 %)         0.90         1.49  (40 %) 
 Adjusted income 
  per common share 
  basic and 
  diluted*                 0.33         0.30    10 %         0.20    65 %         1.17         1.49  (21 %) 
Balance sheet and 
capital ratios** 
 Total assets       $ 5,808,475  $ 5,477,489     6 %  $ 4,838,484    20 %  $ 5,808,475  $ 4,838,484    20 % 
 Book value per 
  common share*           16.67        16.42     2 %        15.35     9 %        16.67        15.35     9 % 
 Common Equity 
  Tier 1 (CET1) 
  capital ratio         12.92 %      13.56 %   (5 %)      11.24 %    15 %      12.92 %      11.24 %    15 % 
 Total capital 
  ratio                 15.72 %      16.50 %   (5 %)      14.48 %     9 %      15.72 %      14.48 %     9 % 
 Leverage ratio          8.47 %       8.90 %   (5 %)       7.38 %    15 %       8.47 %       7.38 %    15 % 
 
* See definition under 'Non-GAAP and Other Financial 
 Measures' in the 2025 Annual Management's Discussion 
 and Analysis. 
** Capital management and leverage measures are in 
 accordance with OSFI's Capital Adequacy Requirements 
 and Basel III Accord. 
 

SEGMENTED FINANCIAL SUMMARY -- QUARTERLY

 
(thousands of 
Canadian dollars) 
for the three       October 31, 2025 
months ended 
                    Digital      Digital    Digital   DRTC      Eliminations/  Consolidated 
                    Banking      Banking    Meteor 
                    Canada       USA                            Adjustments 
Net interest 
 income                $ 27,399    $ 5,234       $ -       $ -            $ -      $ 32,633 
Non-interest 
 income                     250       (15)       673     1,898          (347)         2,459 
Total revenue            27,649      5,219       673     1,898          (347)        35,092 
 
Provision for 
 (recovery of) 
 credit losses            1,365       (46)         -         -              -         1,319 
                         26,284      5,265       673     1,898          (347)        33,773 
 
Non-interest 
expenses: 
 Salaries and 
  benefits                7,446      1,213       130     1,327              -        10,116 
 General and 
  administrative         10,941        924       140       143          (347)        11,801 
 Premises and 
  equipment                 929        323       276       426              -         1,954 
                         19,316      2,460       546     1,896          (347)        23,871 
 
Income (loss) 
 before income 
 taxes                    6,968      2,805       127         2              -         9,902 
 
Income tax 
 provision                3,840        806        33        19              -         4,698 
 
Net income (loss)       $ 3,128    $ 1,999      $ 94    $ (17)            $ -       $ 5,204 
 
Total assets        $ 5,050,922  $ 759,733  $ 10,207  $ 24,538     $ (36,925)   $ 5,808,475 
 
Total 
 liabilities        $ 4,777,508  $ 498,822   $ 8,006  $ 28,319     $ (36,853)   $ 5,275,802 
 
for the three                                                                 July 31, 2025 
months ended 
                        Digital    Digital   Digital      DRTC  Eliminations/  Consolidated 
                        Banking    Banking    Meteor 
                         Canada        USA                        Adjustments 
Net interest 
 income                $ 26,656    $ 3,123       $ -       $ -            $ -      $ 29,779 
Non-interest 
 income                    (37)        (7)       622     1,569          (343)         1,804 
Total revenue            26,619      3,116       622     1,569          (343)        31,583 
 
Provision for 
 (recovery of) 
 credit losses            1,201       (20)         -         -              -         1,181 
                         25,418      3,136       622     1,569          (343)        30,402 
 
Non-interest 
expenses: 
 Salaries and 
  benefits                7,214      1,174       214     1,497              -        10,099 
 General and 
  administrative          8,636      1,163        47       214          (343)         9,717 
 Premises and 
  equipment                 898        186       373       376              -         1,833 
                         16,748      2,523       634     2,087          (343)        21,649 
 
Income (loss) 
 before income 
 taxes                    8,670        613      (12)     (518)              -         8,753 
 
Income tax 
 provision                2,150        176      (35)     (120)              -         2,171 
 
Net income (loss)       $ 6,520      $ 437      $ 23   $ (398)            $ -       $ 6,582 
 
Total assets        $ 5,124,771  $ 348,389  $ 11,543  $ 25,015     $ (32,229)   $ 5,477,489 
 
Total 
 liabilities        $ 4,790,738  $ 155,228   $ 9,491  $ 19,410     $ (25,520)   $ 4,949,347 
 
for the three                                                              October 31, 2024 
months ended 
                        Digital    Digital   Digital      DRTC  Eliminations/  Consolidated 
                        Banking    Banking    Meteor 
                         Canada        USA                        Adjustments 
Net interest 
 income                $ 23,509    $ 1,392       $ -       $ -            $ -      $ 24,901 
Non-interest 
 income                     141          1       285     2,298          (341)         2,384 
Total revenue            23,650      1,393       285     2,298          (341)        27,285 
 
Provision for 
 (recovery of) 
 credit losses             (22)      (134)         -         -              -         (156) 
                         23,672      1,527       285     2,298          (341)        27,441 
 
Non-interest 
expenses: 
 Salaries and 
  benefits                9,483        437       134     1,276              -        11,330 
 General and 
  administrative          5,874        365        35       513          (341)         6,446 
 Premises and 
  equipment                 855        105        27       602              -         1,589 
                         16,212        907       196     2,391          (341)        19,365 
 
Income (loss) 
 before income 
 taxes                    7,460        620        89      (93)              -         8,076 
 
Income tax 
 provision                2,429        155       (9)      (15)              -         2,560 
 
Net income (loss)       $ 5,031      $ 465      $ 98    $ (78)            $ -       $ 5,516 
 
Total assets        $ 4,602,360  $ 226,319   $ 3,434  $ 23,564     $ (17,193)   $ 4,838,484 
 
Total 
 liabilities        $ 4,343,878   $ 90,716   $ 1,371  $ 28,894     $ (25,578)   $ 4,439,281 
 
 

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