Versabank Stock Price, News & Analysis

VersaBank (TSX: VBNK) (NASDAQ: VBNK) reported its Q1 2025 results, highlighting significant developments in its digital banking operations. The bank achieved record total assets of $5.0 billion, up 15% year-over-year, driven primarily by growth in its Receivable Purchase Program (RPP) portfolio.

Key financial metrics include consolidated revenue of $27.8 million (down 4% YoY), net income of $8.1 million, and earnings per share of $0.28. The bank successfully completed an equity offering raising US$86.3 million (approximately CAD$124.2 million).

Notable developments include:

• First post-acquisition partnership for US RPP with Watercress Financial Group
• Credit assets increased 9% YoY to $4.35 billion
• Net interest margin on credit assets at 2.36%
• Provision for credit losses remained low at 0.09%

VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced it will release its first quarter fiscal 2025 financial results on Wednesday, March 5, 2025, at 7:00 a.m. ET. The bank will host a conference call and webcast at 9:00 a.m. ET on the same day, featuring a presentation by President & CEO David Taylor and CFO John Asma, followed by a Q&A session.

Participants can join the call through automated registration or direct dial-in. A live webcast will be available on the bank's website, with presentation slides accessible during and after the event. The webcast recording will be available for 90 days, and teleconference replay access will be available until April 5, 2025.

VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced a strategic partnership with Watercress Financial Group through its US subsidiary, VersaBank USA National Association. The agreement enables Watercress, a growing point-of-sale originator of home improvement loans, to utilize VersaBank's Receivable Purchase Program (RPP) for funding its originations.

This marks VersaBank's first American partnership following its US bank acquisition, targeting the world's largest point-of-sale financing market. The partnership leverages VersaBank's 15-year experience with RPP solutions in Canada, where home improvement financing has been a significant growth driver. Watercress Financial brings extensive experience in originating and servicing home improvement loans across North America, with funding set to commence immediately.

VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced the transfer of its Digital Deposit Receipt (DDR) technology assets and resources to a wholly owned subsidiary, renamed Digital Meteor, Inc. This strategic move supports the planned divestiture of the company's Cyber Security businesses and aims to capitalize on digital asset opportunities.

The company's DDR technology, which has completed pilot programs on Algorand, Ethereum, and Stellar blockchains, provides secure representation of federally regulated bank deposits and can be converted to and from digital currencies like Bitcoin. The technology received SOC 2 Type I certification for its VersaVault® technology in 2022.

The transfer aligns with recent U.S. government initiatives supporting digital assets, including President Trump's executive order to promote U.S. leadership in digital assets and the SEC's creation of a digital currency task force. The company reports no material financial implications from this transfer.

VersaBank (Nasdaq: VBNK) (TSX: VBNK) announced that underwriters have fully exercised their over-allotment option to purchase an additional 849,056 common shares at US$13.25 per share, generating additional gross proceeds of US$11.25 million. Following this exercise, the total Offering increased to 6,509,434 shares with total gross proceeds of US$86.25 million. The proceeds will be used for general banking purposes and qualify as Common Equity Tier 1 capital. Raymond James & Associates served as sole bookrunning manager, with Keefe, Bruyette & Woods and Roth Canada as co-managers.

VersaBank (NASDAQ: VBNK) has completed its public offering of common shares, selling 5,660,378 shares at US$13.25 per share. The offering generated gross proceeds of US$75 million before underwriting discounts and costs. The bank granted underwriters an over-allotment option for up to 15% additional shares, exercisable until January 15, 2025.

The net proceeds will be used for general banking purposes and will qualify as Common Equity Tier 1 capital. Raymond James & Associates served as the sole bookrunning manager, with Keefe, Bruyette & Woods and Roth Canada as co-managers. The shares were offered through a prospectus supplement dated December 16, 2024, to the bank's short form base shelf prospectus dated November 22, 2024.

VersaBank (VBNK) has announced the pricing of its public offering of 5,660,378 common shares at US$13.25 per share, expecting to raise gross proceeds of US$75,000,009. The bank has granted underwriters a 30-day over-allotment option for an additional 15% of common shares. The offering, expected to close around December 18, 2024, will be used for general banking purposes and qualify as Common Equity Tier 1 capital. Raymond James & Associates is acting as sole bookrunning manager, with Keefe, Bruyette & Woods and Roth Canada as co-managers.

VersaBank (VBNK) has announced a public offering of common shares, filing a preliminary prospectus supplement to its base shelf prospectus dated November 22, 2024. The offering includes an over-allotment option allowing underwriters to purchase up to an additional 15% of shares within 30 days. Raymond James & Associates is the sole bookrunning manager, with Keefe, Bruyette & Woods and Roth Canada as co-managers.

The net proceeds will be used for general banking purposes and will qualify as Common Equity Tier 1 capital. The offering's closing is subject to customary conditions, including listing approvals on Nasdaq and TSX. The offering documents are available on SEDAR+ and EDGAR.

VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced key executive transitions to support its US Receivable Purchase Program (RPP) expansion. Nick Kristo, Mike Dixon, and David Robinson, who were instrumental in the Canadian RPP's success, have been appointed to lead VersaBank USA operations. The Canadian RPP portfolio achieved a 27% CAGR over five years and provided C$10.5 billion in financing with zero loan losses.

To maintain Canadian operations, David Thoms has been appointed SVP, Point of Sale Financing, and Saad Inam as Chief Credit Officer for VersaBank Canada. The company aims to capitalize on the multi-trillion-dollar US point of sale market throughout 2025 while continuing growth in the Canadian market.