VERSABANK CONGRATULATES RPP PARTNER ECN CAPITAL ON PRIVATIZATION TRANSACTION

Rhea-AI Summary

VersaBank (TSX: VBNK) congratulated its US RPP partner ECN Capital and the investor group controlled by Warburg Pincus on ECN Capital's recent privatization (announced Dec 8, 2025) and confirmed continued partnership with ECN founder Steve Hudson. VersaBank said ECN's wholly owned subsidiary, Source One Financial Services, was added as its largest US RPP partner and that an additional funding with Source One closed, bringing total fundings to date with Source One to more than US$90 million. VersaBank noted strong momentum for its Core and Securitized RPP offerings in the US and indicated plans to expand US RPP assets in fiscal 2026.

Positive

• Total fundings with Source One > US$90 million
• Largest US RPP partner (Source One) added to VersaBank US RPP

Negative

• None.

Key Figures

Total fundings with Source One US$90 million+ Cumulative funding under US Receivable Purchase Program with Source One to date

Market Reality Check

$12.35 Last Close

Volume Volume 25,694 is 0.88x the 20-day average of 29,272. normal

Technical Price $12.35 is trading above the 200-day MA at $11.36, implying a pre-news uptrend.

Peers on Argus

Several regional bank peers (e.g., BRBS, BMRC, BWFG) showed modest declines between -0.32% and -1.35%, broadly consistent with VBNK’s -1.4% move, suggesting a mildly risk-off tone rather than a stock-specific reaction.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Earnings date notice	Neutral	+2.9%	Scheduled Q4 and fiscal 2025 results release and conference call details.
Nov 26	Charitable donation	Neutral	+0.0%	$50,000 donation to The Salvation Army’s Harvest Hope campaign.
Nov 26	Press release correction	Neutral	+0.0%	Correction to prior release on $50,000 Harvest Hope campaign donation.
Nov 20	Program launch	Positive	+1.8%	Enhanced CMHC Program expected to add ≥<b>$2M</b> revenue in fiscal 2026.
Nov 07	Conference participation	Neutral	-0.8%	Participation in KBW Fintech Payments Conference with investor meetings.

Pattern Detected

Recent operational and program launch news has tended to see modestly positive or muted price reactions, with no clear pattern of selling on positive developments.

Recent Company History

This announcement builds on a series of operational updates from VersaBank in late 2025. On Nov 20, 2025, the bank launched an Enhanced CMHC Lending Program expected to add a minimum of $2 million of incremental fiscal 2026 revenue. VersaBank also highlighted conference participation on Nov 11–13, 2025 and charitable donations of $50,000 on Nov 26, 2025. An earnings date was set for Dec 10, 2025. Today’s news about expanded US RPP funding with Source One and a total exceeding US$90 million continues this growth-focused narrative.

Market Pulse Summary

This announcement highlights VersaBank’s growing US Receivable Purchase Program, with total fundings through Source One now exceeding US$90 million, and management’s expectation that US RPP assets could grow several fold in fiscal 2026. In recent months the bank launched an Enhanced CMHC Program targeting at least $2 million of incremental revenue and maintained active capital markets communications via multiple Form 6-K filings. Investors may watch how these initiatives affect future earnings and asset growth metrics.

Key Terms

receivable purchase program financial

"its US Receivable Purchase Program (RPP) partner, ECN Capital Corp."

A receivable purchase program is an arrangement where a company sells its outstanding customer bills (accounts receivable) to a third party in exchange for immediate cash, typically for slightly less than the full amount owed — similar to selling an IOU at a discount. It matters to investors because it boosts short-term liquidity and shifts collection risk and fees to the buyer, which can improve reported cash flow while potentially reducing future revenue or margins and changing balance sheet and credit metrics.

point-of-sale financing financial

"point-of-sale financing veteran, Steve Hudson, and we are thrilled"

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.

AI-generated analysis. Not financial advice.

Bank Completes Additional Funding with ECN Subsidiary, Source One, Bringing Total Fundings to Date to US$90 Million

LONDON, ON, Dec. 8, 2025 /PRNewswire/ - VersaBank (TSX: VBNK) (NASDAQ: VBNK), a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today congratulated its US Receivable Purchase Program (RPP) partner, ECN Capital Corp. (TSX: ECN) ("ECN Capital"), ECN founder and Chief Executive Officer, Steve Hudson and the purchasers of ECN Capital, and the investor group, controlled by Warburg Pincus LLC on the recently announced privatization transaction for ECN Capital. ECN Capital, through its wholly owned subsidiary, Source One Financial Services ("Source One"), is the unnamed largest US RPP partner to date recently added to the Bank's US RPP, as per the Bank's news release of November 3, 2025. VersaBank also announced completion of an additional funding with Source One, bringing total fundings with Source One to date to more than US$90 million.

"VersaBank has a long and successful history of working with ECN Capital founder and point-of-sale financing veteran, Steve Hudson, and we are thrilled to further our relationship through our partnership with ECN as it moves into its next stage of growth as a private company," said David Taylor, Founder and President, VersaBank.  "Our partnership with Source One is further evidence of the attractiveness of VersaBank's Core RPP financing solution in the United States. I would like to congratulate all on their recently announced transaction. We look forward to expanding our relationship with ECN to our mutual benefit. Both our Core RPP and our Securitized RPP offerings have strong momentum in the US market, and we expect to expand our US RPP assets to grow at a minimum of several fold in fiscal 2026."

"I am excited to once again partner with VersaBank and its founder and President, David Taylor, to build on the trusted relationship we have developed over decades of working together and continue to provide innovative lending options to the ever growing point-of-sale financing market," said Steve Hudson, Chief Executive Officer, ECN Capital Corp. "VersaBank has played an important role in the success of my companies over the years and this new partnership reflects our continued efforts throughout ECN to enhance operational efficiency as we seek to generate additional revenue utilizing VersaBank's innovative and attractive solution."

About Source One Financial Services and ECN Capital Corp.

Source One is a wholly owned subsidiary of ECN Capital Corp. Source One is a specialty lending provider supporting over 3,500 dealerships across 47 states with flexible financing solutions that enhance the outdoor buying experience. Founded in 1999, Source One has spent more than 25 years building strong relationships with lenders and dealer partners, offering an efficient, turn-key loan platform and a comprehensive range of financing options to serve a broader base of customers and drive more sales.

With managed assets of US$8.2 billion, ECN Capital Corp. (TSX: ECN) is a leading provider of business services to North American-based banks, institutional investors, insurance company, pension plan, bank and credit union partners (collectively, its "Partners"). ECN Capital originates, manages and advises on credit assets on behalf of its Partners, specifically consumer (manufactured housing and recreational vehicle and marine) loans and commercial (floorplan and rental) loans. Its Partners are seeking high-quality assets to match with their deposits, term insurance or other liabilities. These services are offered through two operating segments: (i) Manufactured Housing Finance, and (ii) Recreational Vehicle and Marine Finance.

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 Minneapolis-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 tokenized deposits.

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 document, and may be included in other filings and with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbour" 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 our 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 several 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 U.S. economy in general and the strength of the local economies within Canada and U.S. in which we conduct operations; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the Bank of Canada and the U.S. Federal Reserve; changing global commodity prices; the effects of competition in the markets in which we operate; 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 including the crisis in Ukraine and the impact of the crisis on global supply chains and the Bank's anticipation of and success in managing the risks implicated by the foregoing. For a detailed discussion of certain key factors that may affect our future results, please see our annual MD&A for the year ended October 31, 2024.

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 this document and the related management's discussion and analysis is presented to assist our shareholders and others in understanding our financial position and may not be appropriate for any other purposes. Except as required by securities law, we do not undertake to update any forward-looking statement that is contained in this document and the related management's discussion and analysis or made from time to time by the Bank or on its behalf.

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SOURCE VersaBank

FAQ

What did VersaBank announce about ECN Capital on December 8, 2025 (VBNK)?

VersaBank congratulated ECN Capital on its privatization and confirmed an expanded partnership with ECN founder Steve Hudson and Source One.

How much has VersaBank funded with Source One as of Dec 8, 2025 (VBNK)?

VersaBank reported total fundings with Source One of more than US$90 million to date.

What role does Source One play in VersaBank's US RPP strategy (VBNK)?

Source One was added as the unnamed largest US RPP partner, reinforcing VersaBank's Core and Securitized RPP momentum in the US market.

Did VersaBank give guidance on US RPP growth for fiscal 2026 (VBNK)?

VersaBank said it expects to expand US RPP assets to grow at a minimum of several fold in fiscal 2026.

Who led the investor group that purchased ECN Capital (mentioned by VBNK)?

The investor group was described as controlled by Warburg Pincus LLC.