VERSABANK ADDS TWO NEW RECEIVABLE PURCHASE PROGRAM PARTNERS IN CANADA, INCLUDING FIRST SECURITIZATION PARTNER

Rhea-AI Summary

VersaBank (NASDAQ: VBNK) has expanded its Receivable Purchase Program (RPP) by adding two new partners in Canada, including its first securitization partner. The Bank has already completed the initial funding transaction for the RPP Securitization partner, with funding for the second partner expected to begin soon.

The Bank's RPP Securitized Financing strategy will focus on investing in senior-level tranches (typically AAA-rated) of securitized credit assets and establishing a platform for securitizing assets owned by financing partners. This expansion aims to capitalize on the demand from larger point-of-sale and financing companies seeking lower-cost securitized financing in the current interest rate environment.

Positive

• Expansion of RPP with two new partners in Canada strengthens market presence
• Entry into securitization market expands addressable market in both Canada and US
• First securitization partnership successfully established with initial funding completed
• Strategic positioning to capitalize on demand for lower-cost financing solutions

Negative

• None.

News Market Reaction

+3.09%

10 alerts

+3.09% News Effect

+2.4% Peak in 16 hr 55 min

+$12M Valuation Impact

$395M Market Cap

1.5x Rel. Volume

On the day this news was published, VBNK gained 3.09%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.4% during that session. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $12M to the company's valuation, bringing the market cap to $395M at that time.

Data tracked by StockTitan Argus on the day of publication.

LONDON, ON, Sept. 3, 2025 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK), a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today announced it has added two new receivable purchase program partners in Canada for the Receivable Purchase Program (RPP). The new partners include the Bank's first partner under the recent expansion of its RPP to include a securitized financing offering. The Bank has completed the first funding transaction for its RPP Securitization partner and expects funding for the other new partner to commence in the near term.

"The addition of these two partners continues to demonstrate the value proposition of our consistently available, readily accessible, economically attractive Receivable Purchase Program and further expands our already dominant position in Canada," said David Taylor, President, VersaBank. "Importantly, this marks our first partner under our RPP Securitization solution which we believe will significantly expand our addressable market, in both Canada and the United States, as we continue to grow our core RPP offering."

VersaBank's RPP Securitized Financing strategy will include investment in the senior-level tranches (Investment grade, typically AAA-rated level, and subject to the Bank's normal credit approval process) of target securitized credit assets, as well as establish its own platform offering securitization of assets originated and owned by its financing partners. This strategy is intended to capitalize on the current demand from larger point-of-sale and other financing companies for lower-cost securitized financing amidst the current interest rate environment.

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 electronically through financial intermediary partners, it benefits from significant operating leverage that drives efficiency and return on common equity. In August 2024, VersaBank broadly launched its unique Receivable Purchase Program funding solution for point-of-sale finance companies, which has been highly successful in Canada for nearly 15 years, to the underserved multi-trillion-dollar US market.  VersaBank also owns Washington, DC-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, Digital Meteor Inc. ("Digital Meteor"), 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 Digital Deposit Receipts ("DDRs").

VersaBank's Common Shares trade on the Toronto Stock Exchange and NASDAQ under the symbol VBNK.

Visit our website at:  www.versabank.com

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SOURCE VersaBank

FAQ

What new partnerships did VersaBank (VBNK) announce in September 2025?

VersaBank announced two new Receivable Purchase Program (RPP) partners in Canada, including its first securitization partner, with the first funding transaction already completed.

How is VersaBank expanding its RPP Securitized Financing strategy?

VersaBank will invest in senior-level tranches (typically AAA-rated) of securitized credit assets and establish a platform for securitizing assets originated by financing partners.

What is the target market for VersaBank's new securitization offering?

The offering targets larger point-of-sale and financing companies seeking lower-cost securitized financing in the current interest rate environment.

How will the new securitization partnership affect VersaBank's market presence?

The partnership is expected to significantly expand VersaBank's addressable market in both Canada and the United States while growing its core RPP offering.

What is the current status of VersaBank's new partnership implementations?

VersaBank has completed the first funding transaction for its RPP Securitization partner and expects funding for the second new partner to begin in the near term.