All amounts are unaudited and in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Our second quarter 2026 ("Q2 2026") unaudited Interim Consolidated Financial Statements for the period ended April 30, 2026 and Management's Discussion and Analysis ("MD&A"), are available online at www.versabank.com/investor-relations, SEDAR at www.sedarplus.ca and EDGAR at www.sec.gov/edgar. Supplementary Financial Information will also be available on our website at www.versabank.com/investor-relations.
LONDON, ON, June 3, 2026 /PRNewswire/ - 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 second quarter ended April 30, 2026. All figures are in Canadian dollars unless otherwise stated.
NOTE REGARDING SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS
VersaBank's financial results for the second quarter of fiscal 2026 reflect non-core non-interest expenses in the amount of $6.7 million. The non-core non-interest expenses included $4.5 million related to the project costs associated with the Reorganization (see Reorganization note below). Subsequent to the end of the second quarter, the Bank publicly filed a Form S-4 registration statement (the "Registration Statement") with the U.S. Securities and Exchange Commission (the "SEC") in connection with the Reorganization. The Reorganization is intended to enhance shareholder value, mitigate risk and reduce corporate costs over the long term. The Bank expects that the anticipated benefits of the Reorganization will exceed the associated investment however, these expected benefits are subject to various assumptions and uncertainties. As of the end of the second quarter of fiscal 2026, the Bank believes it has incurred the majority of the total costs associated with the Reorganization and expects the Reorganization to be completed in fiscal 2026. Non-core non-interest expenses also included a $2.2 million write-down of an intangible asset related to the customer deposit base of the Bank's sole physical branch, which received regulatory approval for sale in the second quarter, requiring the Bank to record the write-down in the same quarter. The branch was sold on May 1, 2026.
The Bank's second quarter fiscal 2026 results also included $0.6 million in non-interest expenses specifically related to costs related to the commercialization of its Real Bank Tokenized Deposits$(TM)$ (RBTD(TM)s), which were not classified as non-core.
CONSOLIDATED FINANCIAL SUMMARY
(unaudited) As at or for the three months ended As at or for the six months ended
---------------- ----------------------------------------------------------- ------------------------------------
April 30 January 31 April 30 April 30 April 30
(thousands of
Canadian dollars,
except per share
amounts) 2026 2026 Change 2025 Change 2026 2025 Change
------------------ ------------- ------------- ------ ------------- ------ ------------- ------------- ------
Financial results
Total revenue $ 38,293 $ 36,514 5 % $ 30,139 27 % $ 74,807 $ 57,966 29 %
Cost of funds* 3.09 % 3.14 % (2 %) 3.52 % (12 %) 3.12 % 3.69 % (15 %)
Net interest
margin* 2.33 % 2.25 % 4 % 2.29 % 2 % 2.29 % 2.19 % 5 %
Net interest
margin on credit
assets* 2.71 % 2.64 % 3 % 2.59 % 5 % 2.65 % 2.44 % 9 %
Return on average
common equity* 5.64 % 8.16 % (31 %) 6.67 % (15 %) 6.91 % 7.25 % (5 %)
Adjusted (Core)
return on
average common
equity* 9.23 % 8.95 % 3 % 6.67 % 38 % 9.07 % 7.25 % 25 %
Net income 7,525 11,069 (32 %) 8,529 (12 %) 18,594 16,672 12 %
Adjusted (Core)
net income* 12,378 12,162 2 % 8,529 45 % 24,540 16,672 47 %
Income per common
share basic and
diluted 0.23 0.35 (34 %) 0.26 (12 %) 0.58 0.54 7 %
Adjusted (Core)
income per
common share
basic and
diluted* 0.39 0.38 3 % 0.26 50 % 0.77 0.54 43 %
Balance sheet and
capital ratios**
Total assets $ 6,440,700 $ 6,146,010 5 % $ 5,047,133 28 % $ 6,440,700 $ 5,047,133 28 %
Book value per
common share* 17.15 16.93 1 % 16.25 6 % 17.15 16.25 6 %
Common Equity
Tier 1 (CET1)
capital ratio 12.32 % 12.82 % (4 %) 14.28 % (14 %) 12.32 % 14.28 % (14 %)
Total capital
ratio 14.74 % 15.47 % (5 %) 17.34 % (15 %) 14.74 % 17.34 % (15 %)
Leverage ratio 7.94 % 8.17 % (3 %) 9.61 % (17 %) 7.94 % 9.61 % (17 %)
* See definitions under 'Non-GAAP and Other Financial Measures' in the
Q2 2026 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
months ended April 30, 2026
------------------ --------------------------------------------------------------------------------------------------------------------------------------
Digital Banking Digital Banking Digital Meteor DRTC Eliminations/ Consolidated
Canada USA Adjustments
--------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Net interest
income $ 27,768 $ 7,911 $ - $ - $ - $ 35,679
Non-interest
income 373 (15) 749 1,850 (343) 2,614
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total revenue 28,141 7,896 749 1,850 (343) 38,293
Provision for
(recovery of)
credit losses 495 (67) - - - 428
------------------ ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
27,646 7,963 749 1,850 (343) 37,865
Non-interest
expenses:
Salaries and
benefits 7,343 2,070 172 1,617 - 11,202
General and
administrative 13,824 515 42 362 (343) 14,400
Premises and
equipment 947 353 54 530 - 1,884
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
22,114 2,938 268 2,509 (343) 27,486
Income (loss)
before income
taxes 5,532 5,025 481 (659) - 10,379
Income tax
provision 1,438 1,437 130 (151) - 2,854
Net income (loss) $ 4,094 $ 3,588 $ 351 $ (508) $ - $ 7,525
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total assets $ 5,213,682 $ 1,221,182 $ 10,688 $ 15,773 $ (20,625) $ 6,440,700
---------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total
liabilities $ 4,926,001 $ 961,343 $ 370 $ 28,344 $ (27,596) $ 5,888,462
---------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
for the three
months ended January 31, 2026
------------------ --------------------------------------------------------------------------------------------------------------------------------------
Digital Banking Digital Banking Digital Meteor DRTC Eliminations/ Consolidated
Canada USA Adjustments
--------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Net interest
income $ 27,107 $ 6,774 $ - $ - $ - $ 33,881
Non-interest
income 476 - 528 1,975 (346) 2,633
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total revenue 27,583 6,774 528 1,975 (346) 36,514
Provision for
(recovery of)
credit losses 681 19 - - - 700
------------------ ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
26,902 6,755 528 1,975 (346) 35,814
Non-interest
expenses:
Salaries and
benefits 6,663 1,733 206 1,781 - 10,383
General and
administrative 7,378 799 30 506 (346) 8,367
Premises and
equipment 925 275 48 548 - 1,796
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
14,966 2,807 284 2,835 (346) 20,546
Income (loss)
before income
taxes 11,936 3,948 244 (860) - 15,268
Income tax
provision 3,222 1,142 65 (230) - 4,199
Net income (loss) $ 8,714 $ 2,806 $ 179 $ (630) $ - $ 11,069
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total assets $ 5,134,288 $ 1,009,961 $ 10,535 $ 16,139 $ (24,913) $ 6,146,010
---------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total
liabilities $ 4,850,594 $ 754,775 $ 517 $ 28,263 $ (31,215) $ 5,602,934
---------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
for the three
months ended April 30, 2025
------------------ --------------------------------------------------------------------------------------------------------------------------------------
Digital Banking Digital Banking Digital Meteor DRTC Eliminations/ Consolidated
Canada USA Adjustments
--------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Net interest
income $ 25,525 $ 2,507 $ - $ - $ - $ 28,032
Non-interest
income 122 (18) 569 1,789 (355) 2,107
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total revenue 25,647 2,489 569 1,789 (355) 30,139
Provision for
(recovery of)
credit losses 954 (65) - - - 889
------------------ ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
24,693 2,554 569 1,789 (355) 29,250
Non-interest
expenses:
Salaries and
benefits 5,836 1,464 253 1,602 - 9,155
General and
administrative 5,267 800 343 665 (355) 6,720
Premises and
equipment 947 104 123 467 - 1,641
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
12,050 2,368 719 2,734 (355) 17,516
Income (loss)
before income
taxes 12,643 186 (150) (945) - 11,734
Income tax
provision 3,443 53 2 (293) - 3,205
Net income (loss) $ 9,200 $ 133 $ (152) $ (652) $ - $ 8,529
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total assets $ 4,761,444 $ 281,153 $ 11,086 $ 25,224 $ (31,774) $ 5,047,133
---------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total
liabilities $ 4,386,758 $ 144,517 $ 9,029 $ 19,708 $ (41,185) $ 4,518,827
---------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
NOTE REGARDING THE CHANGE IN NAME OF "RECEIVABLE PURCHASE PROGRAM" ("RPP") TO "STRUCTURED RECEIVABLE PROGRAM" ("SRP")
As part of its previously announced Reorganization (see note below), VersaBank has changed the name of its Receivable Purchase Program ("RPP") to Structured Receivable Program ("SRP"). The underlying business model of the SRP has not changed in any way.
MANAGEMENT COMMENTARY
"The second quarter once again saw the Bank achieve new records for credit assets, revenue, net interest income and book value, driven by the continued momentum in the ramp up of our Structured Receivable Program portfolio in the United States, which saw 28% sequential growth, alongside better than expected growth in Canada, and continued strength in our net interest margin," said David Taylor, Founder and President, VersaBank. "Year-over-year growth in adjusted (core) net income of 38% significantly outpaced very healthy credit asset growth of 25% as we increasingly benefit from the operating leverage inherent in our business model. Importantly, with each quarter we are seeing the increasing efficiency of our US operations as we progress towards our target of 20%."
"Feedback from our US SRP partners continues to validate the attractiveness and value of our unique funding solution for point-of-sale financing companies and the continued strong pace of funding has us firmly on track to achieve our target of adding at least $1 billion in US SRP fundings in fiscal 2026. Again, this quarter, the vast majority of additional fundings in the U.S. were through our original, higher-spread SRP as demand continues to exceed our expectations."
The planned launch of our game-changing AI-enabled, real-time funding capability within our SRP in the coming months will significantly expand the addressable market in both the United States and Canada. In Canada, we expect the launch of our Real-Time SRP to enable us to win additional financing business with our existing partners while enabling us to acquire new partners with more specialized financing needs that we were previously unable to address."
"As our core Digital Banking operations continue to deliver strong growth and we increasingly benefit our operating leverage, we are now starting to monetize our Digital Asset opportunity based on our proven, proprietary VersaVault technology. We are generating incremental revenue from our Stablecoin Custody Services in Canada as our additional, multiple paths for commercialization come into focus and new, potential paths emerge through our discussions with leaders in the sectors. We have developed our technology and formulated commercial strategies in the context of the evolving regulatory environment and, as a national, federally licensed bank in both the United States and Canada with market-ready technology, we are uniquely positioned to capitalize."
NOTE RE. REORGANIZATION (PREVIOUSLY REFERRED TO AS THE PROPOSED CORPORATE REALIGNMENT)
Subsequent to the end of the second quarter, the Bank publicly filed a Form S-4 registration statement (the "Registration Statement") with the U.S. Securities and Exchange Commission (the "SEC") in connection with the Bank's proposed plan to realign its corporate structure to a standard US bank framework (the "Reorganization"). Specifically, the Reorganization, among other things, will cause Versa Bancorp, a new Delaware corporation (the "Parent") to become the holding company of VersaBank and VersaBank USA National Association. The Registration Statement has been confidentially reviewed and remains subject to additional review by the SEC prior to being declared effective. As a result, the information contained therein is subject to change. Upon the Registration Statement being declared effective by the SEC, the Bank will be at liberty to convene a special meeting of shareholders at which it would seek approval of the Reorganization. In addition to the approval of shareholders, the completion of the Reorganization remains subject to various regulatory approvals, including approval by the Office of the Superintendent of Financial Institutions and Ministry of Finance in Canada and the Federal Reserve Board in the United States. VersaBank intends to proceed with the shareholder matters, expeditiously, and in tandem with the other regulatory processes.
KEY OPERATIONAL DEVELOPMENTS
-- The Bank continued to realize rapid expansion of its credit asset
portfolio in the US through the successful ramp up of its SRP. Following
the achievement of its first-year target for SRP credit assets and the
signing of an agreement with its largest US SRP partner to date at the
end of the Q4 2025, the Bank grew its total US SRP credit assets to
US$604.9 million at the end of the second quarter of fiscal 2026 and is
on pace to achieve its target for additional US SRP fundings in fiscal
2026 of US$1 billion;
-- The Bank commenced a pilot program with one of its major Structured
Receivable Program partners, FinanceIt Canada Inc. ("FinanceIt"), for the
Bank's new AI-enabled Real-Time Structured Receivable Program ("Real-Time
SRP") (the "Pilot Program"). The Real-Time SRP is a breakthrough
innovation in point-of-sale financing, providing the same reliable,
economically attractive funding solution as the Bank's existing SRP, with
the additional benefit of eliminating the need for SRP partners to
warehouse multiple receivables over a period of time (typically from five
to 30 or more days). The purpose of the Pilot Program is to demonstrate
the functionality and operational integrity of the Real-Time SRP in a
limited-scale, real-world scenario to refine the solution for full
implementation by FinanceIt and simultaneous roll out to all VersaBank's
current and prospective SRP partners in both Canada and the United
States.
-- The Bank commenced a critical initiative to add foreign exchange
functionality and other enhancements to its proprietary VersaView(TM)
blockchain interface technology to support the commercialization of its
RBTD(TM)s. VersaView(TM) is the Bank's own highly secure RBTD(TM) Program
Participant's user interface, enabling authorized RBTD(TM) partners and
corporate customers (holders of RBTD(TM)s) to view and transact with
their RBTD(TM)s stored in VersaVault$(R)$-managed wallets. The foreign
exchange capability will be added to the integrated US and Canadian pilot
programs for the Bank's RBTD(TM)s that continue to steadily advance.
-- The Bank began receiving QCAD deposits under its previously announced
custody services agreement with Stablecorp Digital Currencies Inc., a
pioneering Canadian digital asset infrastructure company and servicer of
the QCAD Digital Trust and whose investors include Coinbase, Circle, DeFi
Technologies and FTP Ventures. QCAD is Canada's first regulatory
compliant Canadian-dollar stablecoin.
-- The Bank entered into a definitive agreement for the sale of certain
assets associated with its sole physical bank branch in Holdingford,
Minnesota to Stearns Bank National Association. The sale was approved by
the Office of the Comptroller of the Currency ("OCC") during the second
quarter and the transaction closed on May 1, 2026 (see Subsequent event
below).
HIGHLIGHTS FOR THE SECOND QUARTER OF FISCAL 2026
Consolidated (Canadian and US Digital Banking Operations, Digital Meteor and DRTC)
-- Total assets increased 28% year-over-year and 5% sequentially to a record
$6.4 billion, with the increase driven primarily by growth of the Digital
Banking operations' credit asset portfolios, in particular, the
Structured Receivable Program ("SRP") portfolio, in both the US and
Canada;
-- Consolidated total revenue increased 27% year-over-year and increased 5%
sequentially to a record $38.3 million, with the year-over-year and
sequential increases primarily due to the continued growth in credit
assets, which were up 25% year-over-year and 6% sequentially;
-- Consolidated net income was $7.5 million compared with $8.5 million for
the second quarter of last year and $11.1 million for the first quarter
of fiscal 2026. Consolidated net income for the second quarter of fiscal
2026 was dampened by non-core non-interest expenses of $6.7 million,
composed of $4.5 million related to the project costs associated with the
Reorganization and a $2.2 million write-down of an intangible asset
related to the sale of the Bank's sole physical branch. Second quarter
fiscal 2026 net income was also dampened by $0.6 million in non-interest
expenses related to the commercialization of its Real Bank Tokenized
Deposits(TM) (RBTD(TM)s), which were not classified as non-core;
-- Consolidated adjusted net income was $12.4 million, an increase of 45%
year-over-year and an increase of 2% sequentially. Consolidated adjusted
income included $0.6 million in non-interest expenses related to the
commercialization of its Real Bank Tokenized Deposits(TM) (RBTD(TM)s),
which were not classified as non-core;
-- Consolidated income per common share was $0.23 compared with $0.26 for
the second quarter of last year and $0.35 for the first quarter of 2026;
-- Consolidated adjusted income per common share was $0.39 compared with
$0.26 for the second quarter of 2025 and $0.39 for the first quarter of
2026; and,
-- As at April 30, 2026, the Bank had purchased and cancelled 573,251 common
shares under its Normal Course Issuer Bid (NCIB), under which the Bank
may purchase for cancellation up to 2,000,000 of its common shares
representing approximately 8.99% of its public float (as of April 28,
2026).
Digital Banking (Combined Canada and US)
-- Total Digital Banking operations (combined Canada and US) credit assets
increased 25% year-over-year and 6% sequentially to a record $5.68
billion, driven primarily by strong growth in each of the US and Canadian
SRP portfolios, which, combined, increased 32% year-over-year and 7%
sequentially;
-- Total Digital Banking operations revenue increased 28% year-over-year and
5% sequentially to a record $36.0 million, with the year-over-year and
sequential increases primarily due to the continued growth in credit
assets;
-- Total Digital Banking operations net interest margin on credit assets
increased 12 bps, or 5%, year-over-year, and increased 7 bps sequentially,
to 2.71%. The year-over-year increase was primarily due to the lower cost
of funds, attributable to the renewal of maturing deposits at lower
interest rates and the diminished impact of the atypically inverted yield
curve that existed in the early part of fiscal 2025 and which is no
longer inverted. The sequential decrease reflects the planned transition
of some higher yielding, higher regulatory risk-weighted Multi-Family
Residential Loans ("MROL") to lower yielding, lower regulatory
risk-weighted MROL as part of the Bank's strategy to capitalize on
opportunities for lower-risk weighted credit assets with a higher return
on capital and the continued growth in the SRP portfolio, which is also
composed of lower risk-weighted, lower yielding assets, offset partially
by lower cost of funds;
-- Total Digital Banking operations overall net interest margin increased 4
bps, or 2%, year-over-year and increased 8 bps, or 4%, sequentially to
2.33%. The Bank's net interest margin remained among the highest of the
publicly traded Canadian Schedule I (federally licensed) banks;
-- Total Digital Banking operations provision for credit losses as a
percentage of average credit assets remained negligible at 0.03%,
compared with a 12-quarter average of 0.04%, which remains among the
lowest of the publicly traded Canadian Schedule I (federally licensed)
banks;
-- Total Digital Banking operations net income was $7.7 million compared
with $9.3 million for the second quarter of last year and $11.5 million
for the first quarter of 2026. Net income for the second quarter of
fiscal 2026 included $7.3 million (before tax) of non-interest expenses
primarily related to the Reorganization, compared to the sequential
quarter of $1.7 million, which also had one-time tax expense adjustments;
and,
-- Total Digital Banking operations income per common share was $0.23
compared with $0.26 for the second quarter of last year and $0.36 for the
first quarter of 2026.
Digital Banking Canada
Note: The financial results for Digital Banking Canada contain certain non-interest expenses for general corporate administrative costs.
-- Canadian Digital Banking operations net income was $4.1 million compared
with $9.2 million for the second quarter of last year and $8.7 million
for the first quarter of 2026 and was dampened by non-core non-interest
expenses of $6.7 million, composed of $4.5 million related to the project
costs associated with the Reorganization and a $2.2 million write-down of
an intangible asset related to the sale of the Bank's sole physical
branch. Second quarter fiscal 2026 net income was also dampened by $0.6
million in non-interest expenses related to the commercialization of its
Real Bank Tokenized Deposits(TM) (RBTD(TM)s), which were not classified
as non-core; and,
-- Canadian Digital Banking operations net income per common share was $0.13
compared with $0.28 for the second quarter of last year and $0.28 for the
first quarter of 2026.
Digital Banking US
-- US Digital Banking operations net income was $3.6 million compared with
$133,000 for the second quarter of last year and $2.8 million for the
first quarter of 2026. The sequential increase was primarily
attributable to the strong growth in the SRP portfolio. US Digital
Banking operations include expenses that are being incurred ahead of
asset growth and revenue generated by the ramp up of the US SRP
portfolio.
Digital Meteor
-- Digital Meteor's net income was $351,000 compared with net loss of
$152,000 for the second quarter of last year and a net income of $179,000
for the first quarter of 2026. The trend in earnings was primarily due to
higher revenue driven by higher client engagements in the current period.
DRTC's Cybersecurity Services Operations
-- DRTC's net loss was $508,000 compared with a net loss of $652,000 for the
second quarter of last year and a net loss of $630,000 for the first
quarter of 2026. The decreased loss was primarily due to the increase in
new cybersecurity offerings and higher client engagements.
FINANCIAL SUMMARY
(unaudited) for the three months ended for the six months ended
---------------- -------------------------------- ----------------------------------
April 30 April 30 April 30 April 30
(thousands of
Canadian dollars,
except per share
amounts) 2026 2025 2026 2025
------------------ --------------- --------------- --------------- -----------------
Results of
operations
Interest income $ 83,060 $ 70,976 $ 164,276 $ 144,222
Net interest
income 35,679 28,032 69,560 53,756
Non-interest
income 2,614 2,107 5,247 4,210
Total revenue 38,293 30,139 74,807 57,966
Provision for
credit losses 428 889 1,128 1,913
Non-interest
expenses 27,486 17,516 48,032 33,215
Digital Banking 25,052 14,418 42,825 27,196
DRTC 2,509 2,734 5,344 5,700
Digital Meteor 268 719 552 1,028
Net income 7,525 8,529 18,594 16,672
Adjusted (Core)
net income* 12,378 8,529 24,540 16,672
Income per common
share:
Basic $ 0.23 $ 0.26 $ 0.58 $ 0.54
Diluted $ 0.23 $ 0.26 $ 0.58 $ 0.54
Adjusted (Core)
income per
common share
basic and
diluted* $ 0.39 $ 0.26 $ 0.77 $ 0.54
Dividends paid on
common shares $ 802 $ 813 $ 1,601 $ 1,626
----------------- --------------- --------------- --------------- -----------------
Yield* 5.42 % 5.81 % 5.41 % 5.88 %
Cost of funds* 3.09 % 3.52 % 3.12 % 3.69 %
Net interest
margin* 2.33 % 2.29 % 2.29 % 2.19 %
Net interest
margin on credit
assets* 2.71 % 2.59 % 2.65 % 2.44 %
Return on average
common equity* 5.64 % 6.67 % 6.91 % 7.25 %
Adjusted (Core)
return on
average common
equity* 9.23 % 6.67 % 9.07 % 7.25 %
Book value per
common share* $ 17.15 $ 16.25 $ 17.15 $ 16.25
Efficiency
ratio* 72 % 58 % 64 % 57 %
Adjusted (Core)
efficiency
ratio* 54 % 58 % 53 % 57 %
Return on average
total assets* 0.49 % 0.70 % 0.61 % 0.68 %
Provision for
(recovery of)
credit losses as
a % of average
credit
assets* 0.03 % 0.08 % 0.04 % 0.09 %
---------------
as at
-------------- --------------------------------------------------------------------
Balance Sheet
Summary
Cash $ 568,161 $ 340,186 $ 568,161 $ 340,186
Securities 106,277 104,807 106,277 104,807
Credit assets,
net of allowance
for credit
losses 5,675,879 4,523,812 5,675,879 4,523,812
Average credit
assets 5,504,579 4,435,280 5,371,129 4,379,964
Total assets 6,440,700 5,047,133 6,440,700 5,047,133
Deposits 5,520,909 4,205,185 5,520,909 4,205,185
Subordinated
notes payable 100,688 101,844 100,688 101,844
Shareholders'
equity 552,238 528,306 552,238 528,306
Capital ratios**
Risk-weighted
assets $ 4,285,370 $ 3,551,398 $ 4,285,370 $ 3,551,398
Common Equity
Tier 1 capital 527,758 507,222 527,758 507,222
Total regulatory
capital 631,623 615,770 631,623 615,770
Common Equity
Tier 1 (CET1)
ratio 12.32 % 14.28 % 12.32 % 14.28 %
Tier 1 capital
ratio 12.32 % 14.28 % 12.32 % 14.28 %
Total capital
ratio 14.74 % 17.34 % 14.74 % 17.34 %
Leverage ratio 7.94 % 9.61 % 7.94 % 9.61 %
---------------- --------------- --------------- --------------- -----------------
* See definitions under 'Non-GAAP and Other Financial Measures' in the Q2 2026
Management's Discussion and Analysis.
** Capital management and leverage measures are in accordance with OSFI's
Capital Adequacy Requirements
and Basel III
Accord.
This news release is intended to be read in conjunction with the Bank's Consolidated Financial Statements and Management's Discussion & Analysis (MD&A) for the three & six months ended April 30, 2026, which are available on VersaBank's website at www.versabank.com, SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.
Conference Call
VersaBank will host a conference call and webcast today, Wednesday, June 3, 2026, at 9:00 a.m. $(ET)$ to discuss its second quarter results, featuring a presentation by David Taylor, President & CEO and Nicolas Ospina, Global CFO, followed by a question-and-answer period. To join the conference call by telephone without operator assistance, you may register and enter your phone number in advance at: https://emportal.ink/43oWAgd to receive an instant automated call back. Alternatively, you may also dial direct and be entered into the call by an Operator at: 1-416-945-7677 or 1-888-699-1199 (toll free).
For those preferring to listen to the presentation via the Internet, a live webcast will be available at https://app.webinar.net/qA4bp4xpOXg or on the Bank's web site at: https://www.versabank.com/investor-relations/events-presentations/. The slide presentation management will use during the conference call/webcast will be available on the Bank's web site at: https://www.versabank.com/investor-relations/financial-results/.
The archived webcast presentation will be available for 90 days following the live event at https://app.webinar.net/qA4bp4xpOXg and on the Bank's web site at: https://www.versabank.com/investor-relations/events-presentations/. Replay of the teleconference will be available until June 7, 2026 by calling 289-819-1450 or 1-888-660-6345 (toll free) and the passcode is: 49445#
About VersaBank
VersaBank is a North American bank with a difference. Federally chartered in both Canada and the US, VersaBank has a branchless, digital, business-to-business model based on its proprietary state-of-the-art technology that enables it to profitably address underserved segments of the banking industry in a significantly risk mitigated manner. Because VersaBank obtains substantially all of its deposits and undertakes the majority of its funding activities electronically through financial intermediary partners, it benefits from significant operating leverage that drives efficiency and return on common equity. In August 2024, VersaBank launched its unique Receivable Purchase Program funding solution for point-of-sale finance companies, which has been highly successful in Canada for over 15 years, to the underserved multi-trillion-dollar US market. VersaBank also owns Minnesota-based DRT Cyber Inc., a North America leader in the provision of cyber security services to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities. Through its wholly owned subsidiary, DBG Inc., VersaBank owns proprietary intellectual property and technology to enable the next generation of digital assets for the banking and financial community, including the Bank's revolutionary and proprietary Real Bank Tokenized Deposits(TM)).
VersaBank's Common Shares trade on the Toronto Stock Exchange and NASDAQ under the symbol VBNK.
Forward-Looking Statements
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws ("forward-looking statements") including statements regarding the ability to obtain shareholder, regulatory and other approvals of the Reorganization; the expected realization of additional shareholder value, the simplification of the regulatory structure and the reduction of costs as a result of the Reorganization; the key elements of the Reorganization; the ability to obtain inclusion on stock indices, including the Russell 2000; the ability to continue to grow the US Structured Receivable Program; the ability to expand our net interest margin; and the ability to continue to grow the CMHC residential construction loan program. Forward-looking statements of this type are included in this document and may be included in other filings and with Canadian securities regulators or the US Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. The statements in this press release that relate to the future are forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, many of which are out of VersaBank's control. Risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the strength of the Canadian and US economies in general and the strength of the local economies within Canada and the US in which VersaBank conducts operations; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the Bank of Canada and the US Federal Reserve; global commodity prices; the effects of competition in the markets in which VersaBank operates; changes in trade laws and tariffs; inflation; capital market fluctuations; the timely development and introduction of new products in receptive markets; the impact of changes in the laws and regulations pertaining to financial services; changes in tax laws; technological changes; unexpected judicial or regulatory proceedings; unexpected changes in consumer spending and savings habits; the impact of wars or conflicts and the impact of both on global supply chains and markets; the impact of outbreaks of disease or illness that affect local, national or international economies; the possible effects on our business of terrorist activities; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; and VersaBank's anticipation of and success in managing the risks implicated by the foregoing.
Completion of VersaBank's plan to realign its corporate structure to a standard US bank framework is subject to numerous factors, many of which are beyond the Bank's control, including but not limited to, the failure to obtain required shareholder, regulatory and other approvals, and other important factors disclosed previously and from time to time in the Bank's filings with the SEC and the securities commissions or similar securities regulatory authorities in each of the provinces or territories of Canada.
The foregoing list of important factors is not exhaustive. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The forward-looking information contained in the management's discussion and analysis is presented to assist VersaBank shareholders and others in understanding VersaBank's financial position and may not be appropriate for any other purposes.
For a detailed discussion of certain key factors that may affect VersaBank's future results, please see VersaBank's annual MD&A for the year ended October 31, 2025. Except as required by securities law, VersaBank does not undertake to update any forward-looking statement that is contained in this press release or made from time to time by VersaBank or on its behalf.
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SOURCE VersaBank
(END) Dow Jones Newswires
June 03, 2026 07:01 ET (11:01 GMT)
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