VERSABANK ADDS NEW ECN CAPITAL SUBSIDIARY TO US STRUCTURED RECEIVABLE PROGRAM

VersaBank (TSX/NASDAQ: VBNK) announced that its US subsidiary has signed an agreement for a wholly owned ECN Capital subsidiary to use its US Structured Receivable Program (SRP).

Rhea-AI Summary

VersaBank (TSX/NASDAQ: VBNK) announced that its US subsidiary has signed an agreement for a wholly owned ECN Capital subsidiary to use its US Structured Receivable Program (SRP).

The ECN unit is expected to add at least US$300 million in annual US SRP fundings, with potential to exceed US$500 million per year and initial funding anticipated in the coming weeks.

Positive

• New ECN Capital subsidiary expected to add at least US$300 million in US SRP fundings annually
• US SRP program with ECN Capital believed could exceed US$500 million in annual fundings
• Second US Structured Receivable Program engagement with ECN Capital, expanding existing relationship
• Planned real-time funding capability aims to finance individual loans within hours, reducing partners' warehouse financing needs

Negative

• None.

Argus Jul 9 session 3 alerts

+1.34% close to close 0.2x rel. volume Open Argus

Details

News Market Reaction – VBNK

$699.61M Market Cap

On Jul 9, the day this news came out, VBNK closed 1.34% above the previous close. Our momentum scanner recorded 3 alerts for this stock that day.

Data tracked by StockTitan Argus for the Jul 9 session.

Key Figures

Expected annual US SRP fundings: US$300 million Potential future US SRP volume: US$500 million per year

Expected annual US SRP fundings

US$300 million

Anticipated yearly contribution from new ECN Capital subsidiary

Potential future US SRP volume

US$500 million per year

Management view of possible program scale with ECN Capital

Historical Context

5 past events · Latest: Jun 29

5 events

1. Jun 29

   Community donation

   24h Move

   +6.1%

   Announced $60,000 donation to The Salvation Army’s Harvest Hope Campaign.

2. Jun 29

   Product launch

   24h Move

   +6.1%

   Launched AI-enabled real-time Structured Receivable Program in Canada and U.S.

3. Jun 10

   Leadership recognition

   24h Move

   -0.9%

   Founder David Taylor honored in leadership history project at Westminster Abbey.

4. Jun 03

   Dividend declaration

   24h Move

   +10.7%

   Declared CAD $0.025 quarterly cash dividend for quarter ending July 31, 2026.

5. Jun 03

   Earnings report

   24h Move

   +10.7%

   Reported Q2 2026 with 27% revenue and net interest income growth, strong SRP gains.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

structured receivable program, real-time funding capability, point-of-sale financing, warehouse financing

4 terms

structured receivable program financial

"will utilize the Bank's core Structured Receivable Program ("SRP") in the United States."

A structured receivable program is a financing arrangement where a company turns its future customer payments into immediate cash by selling or pledging those expected receipts into a dedicated pool or vehicle. Think of it like selling future paychecks today to get money now; investors watch these programs because they change a company’s cash flow and risk profile, can affect reported debt and earnings, and rely on the quality and predictability of the underlying payments.

real-time funding capability technical

"we are about to take its value proposition to a whole new level with an industry first real-time funding capability."

A company's real-time funding capability is its ability to obtain, move or deploy cash and credit instantly or within minutes using automated banking, payment rails, credit lines or electronic settlement systems. Like a highway on-ramp that lets vehicles merge quickly, it determines how fast a business can seize opportunities, meet obligations, or scale operations when capital is needed. Investors care because faster access to funds affects liquidity, cash-flow reliability and the company's responsiveness to market events.

point-of-sale financing financial

"leading force of significant scale in the North American point-of-sale financing industry."

Point-of-sale financing is a payment option offered to buyers at the moment they check out, letting them split a purchase into installments or get short-term credit instead of paying the full amount upfront. For investors, it matters because it can boost sales, raise average order size and customer conversion rates for merchants, while creating fee and interest revenue — but it also introduces credit risk and reliance on consumer spending patterns.

warehouse financing financial

"thereby reducing the overall financing cost and the need for warehouse financing."

Warehouse financing is a short-term loan arrangement where a lender advances money against a company’s stock of goods or recently originated loans so the company can keep operating until those assets are sold or packaged for longer-term funding. Think of it like a temporary storage locker loan that frees up cash now by using inventory or loan pools as collateral. For investors, it matters because changes in warehouse financing can quickly affect a company’s cash flow, leverage and vulnerability to funding disruptions.

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– New Partner Expected to Contribute at Least US$300 Million in Additional US SRP Fundings Annually –

LONDON, ON, July 9, 2026 /PRNewswire/ - VersaBank (TSX: VBNK) (NASDAQ: VBNK), a North American leader in business-to-business digital banking, digital asset technology and technology solutions for cybersecurity, today announced its wholly owned US subsidiary, VersaBank USA, has entered into an agreement with a wholly owned subsidiary of ECN Capital (the "ECN Subsidiary"), under which the ECN Subsidiary will utilize the Bank's core Structured Receivable Program ("SRP") in the United States. This is the second SRP program into which ECN Capital has entered with VersaBank in the United States.

The ECN Subsidiary is expected to contribute at least US$300 Million in additional US SRP fundings annually with the initial funding expected in the coming weeks. VersaBank and ECN Capital believe the program could grow well beyond US$500 million per year in the future.

"The addition of our new partner, an undisputed North American leader in originating and servicing high quality consumer loan assets, is further validation of the value and attractiveness of our Structured Receivable Program and the team we have built in the United States," said David Taylor, Founder and President, VersaBank. "Building on the SRP, we are about to take its value proposition to a whole new level with an industry first real-time funding capability. This will enable partners such as ECN Capital to finance individual loans within just hours, thereby reducing the overall financing cost and the need for warehouse financing. This groundbreaking capability using our proprietary technology will accelerate our plan to establish VersaBank as a leading force of significant scale in the North American point-of-sale financing industry."

"VersaBank's SRP is a unique and highly attractive source of funding, and we are thrilled to expand our relationship," said Lawrence Krimker, Chief Executive Officer, ECN Capital. "As expected, the Bank's SRP has been a tremendous benefit to our businesses since our engagement last year and we look forward to continuing to expand the relationship with VersaBank for many years to come."

ABOUT VERSABANK

VersaBank is a North American bank with a difference. Federally chartered in both Canada and the U.S., 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 Structured Receivable 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 U.S. market.  VersaBank also owns Minnesota-based DRT Cyber Inc., a North American 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 DRT Cyber 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

VersaBank's public communications often include written or oral forward-looking statements. Statements of this type are included in this press release and may also be included in other securities filings 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 future events or future performance are forward-looking statements.  

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, many of which are beyond VersaBank's control. There is a risk 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 statements. These factors include, but are not limited to: the strength of the Canadian and US economies in general and the local economies in which VersaBank operates; 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; inflation; capital market fluctuations; the timely development and introduction of new products in receptive markets; the impact of changes in laws, including trade laws and tariffs, and regulations applicable 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 related effects on global supply chains and markets; the impact of outbreaks of disease or illness affecting local, national or international economies; the possible effects of terrorist activities; natural disasters and disruptions to public infrastructure (including transportation, communications, power or water supply); and VersaBank's ability to anticipate and manage the risks associated with these factors.  

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 as well as other uncertainties and potential events. The forward-looking information contained in this press release is presented to assist VersaBank shareholders and others in understanding VersaBank's financial position and may not be appropriate for any other purposes. Except as required by applicable securities laws, VersaBank does not undertake to update any forward-looking statement contained in this press release or made from time to time by VersaBank or on its behalf.

Visit our website at:  www.versabank.com

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SOURCE VersaBank

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did VersaBank (VBNK) announce on July 9, 2026 regarding ECN Capital?

VersaBank announced a new agreement for an ECN Capital subsidiary to use its US Structured Receivable Program. According to VersaBank, this partner is expected to contribute at least US$300 million in additional US SRP fundings annually, with initial funding expected in the coming weeks.

How much annual funding could ECN Capital add to VersaBank's US Structured Receivable Program?

The ECN Capital subsidiary is expected to add at least US$300 million in annual US SRP fundings. According to VersaBank, both parties believe the program could grow well beyond US$500 million per year over time, significantly expanding SRP volumes in the United States.

What is VersaBank's US Structured Receivable Program (SRP) with ECN Capital?

The US Structured Receivable Program is VersaBank's core funding platform for point-of-sale and consumer loan receivables. According to VersaBank, the new ECN Capital subsidiary will utilize this SRP, marking the second such US program between the companies and expanding their existing funding relationship.

When will the new ECN Capital subsidiary begin funding under VersaBank's US SRP?

Initial funding under the new agreement is expected in the coming weeks. According to VersaBank, once active, the ECN Capital subsidiary is expected to contribute at least US$300 million in additional US SRP fundings annually, with potential growth beyond US$500 million per year.

How does VersaBank plan to enhance its SRP for ECN Capital and other partners?

VersaBank plans to introduce an industry-first real-time funding capability for its SRP. According to VersaBank, this proprietary technology aims to finance individual loans within hours, lowering overall financing costs and reducing the need for warehouse financing for partners like ECN Capital.

Why is the new ECN Capital agreement important for VersaBank (VBNK) shareholders?

The agreement is expected to materially increase US SRP fundings through at least US$300 million in additional annual volume. According to VersaBank, the relationship’s potential beyond US$500 million per year supports its strategy to build significant scale in North American point-of-sale financing.