VERSABANK THIRD QUARTER RESULTS CONTINUE TO DEMONSTRATE STRENGTH OF BUSINESS MODEL AS US RPP PORTFOLIO RAMPS UP
VersaBank (NASDAQ: VBNK) reported strong Q3 2025 financial results, with total revenue increasing 17% year-over-year to a record $31.6 million. The bank's total assets grew 21% year-over-year to $5.5 billion, driven by expansion of its Receivable Purchase Program (RPP) portfolio in both US and Canada.
The bank reported net income of $6.6 million ($0.20 per share), which included $4.2 million in planned expenses related to corporate structure realignment. Adjusted net income, excluding these costs, was $9.7 million ($0.30 per share). The Digital Banking operations maintained strong performance with a net interest margin of 2.25% and minimal credit loss provisions of 0.10%.
Notable developments include the expansion of RPP to add securitization capabilities, addition of two new RPP partners in Canada, and the launch of a tokenized deposit pilot program in the United States.
VersaBank (NASDAQ: VBNK) ha comunicato solidi risultati finanziari per il terzo trimestre 2025: il fatturato totale è salito del 17% su base annua, raggiungendo il record di 31,6 milioni di dollari. Gli attivi totali della banca sono cresciuti del 21% rispetto all'anno precedente, arrivando a 5,5 miliardi di dollari, trainati dall'espansione del portafoglio del suo programma di acquisto di crediti (Receivable Purchase Program, RPP) sia negli Stati Uniti sia in Canada.
La banca ha registrato un utile netto di 6,6 milioni di dollari (0,20 dollari per azione), che includeva 4,2 milioni di dollari di oneri pianificati legati alla riorganizzazione della struttura societaria. L'utile netto rettificato, al netto di tali costi, è stato di 9,7 milioni di dollari (0,30 dollari per azione). Le operazioni di Digital Banking hanno mantenuto buone performance con un margine di interesse netto del 2,25% e provisioni per perdite su crediti minime pari a 0,10%.
Tra gli sviluppi rilevanti figurano l'estensione dell'RPP per includere capacità di cartolarizzazione, l'ingresso di due nuovi partner RPP in Canada e l'avvio di un programma pilota di depositi tokenizzati negli Stati Uniti.
VersaBank (NASDAQ: VBNK) presentó sólidos resultados financieros en el tercer trimestre de 2025: los ingresos totales aumentaron un 17% interanual hasta un récord de 31,6 millones de dólares. Los activos totales del banco crecieron un 21% interanual hasta 5,5 mil millones de dólares, impulsados por la expansión de su cartera del Programa de Compra de Cuentas (Receivable Purchase Program, RPP) tanto en EE. UU. como en Canadá.
El banco reportó un beneficio neto de 6,6 millones de dólares (0,20 dólares por acción), que incluía 4,2 millones en gastos planificados relacionados con la realineación de la estructura corporativa. El beneficio neto ajustado, excluyendo estos costes, fue de 9,7 millones de dólares (0,30 dólares por acción). Las operaciones de Banca Digital mantuvieron un sólido desempeño con un margen de interés neto del 2,25% y provisiones por pérdidas crediticias mínimas del 0,10%.
Entre los desarrollos destacados están la ampliación del RPP para añadir capacidades de titulización, la incorporación de dos nuevos socios RPP en Canadá y el lanzamiento de un programa piloto de depósitos tokenizados en Estados Unidos.
VersaBank (NASDAQ: VBNK)는 2025년 3분기 견조한 실적을 발표했습니다. 총수익은 전년 동기 대비 17% 증가하여 사상 최고치인 3,160만 달러를 기록했습니다. 은행의 총자산은 전년 대비 21% 증가하여 55억 달러에 달했으며, 이는 미국과 캐나다 모두에서 수취채권 매입 프로그램(Receivable Purchase Program, RPP) 포트폴리오 확장에 따른 것입니다.
은행은 순이익 660만 달러(주당 0.20달러)를 보고했으며, 여기에는 법인 구조 재정비와 관련한 계획된 비용 420만 달러가 포함되어 있습니다. 이 비용을 제외한 조정 순이익은 970만 달러(주당 0.30달러)였습니다. 디지털 뱅킹 부문은 순이자마진 2.25%와 0.10%의 최소한의 신용손실충당금을 유지하며 견조한 실적을 보였습니다.
주요 발전 사항으로는 RPP에 유동화(securitization) 기능을 추가한 점, 캐나다에서 두 곳의 신규 RPP 파트너를 확보한 점, 그리고 미국에서 토큰화 예금 파일럿 프로그램을 시작한 점이 포함됩니다.
VersaBank (NASDAQ: VBNK) a publié de solides résultats pour le troisième trimestre 2025 : le chiffre d'affaires total a augmenté de 17 % en glissement annuel, atteignant un record de 31,6 millions de dollars. Les actifs totaux de la banque ont progressé de 21 % sur un an pour atteindre 5,5 milliards de dollars, soutenus par l'expansion de son portefeuille du programme d'achat de créances (Receivable Purchase Program, RPP) aux États-Unis et au Canada.
La banque a enregistré un résultat net de 6,6 millions de dollars (0,20 dollar par action), incluant 4,2 millions de dollars de dépenses planifiées liées au réalignement de la structure du groupe. Le résultat net ajusté, excluant ces coûts, s'est élevé à 9,7 millions de dollars (0,30 dollar par action). Les activités de banque numérique ont conservé de bonnes performances avec une marge nette d'intérêt de 2,25 % et des provisions pour pertes sur prêts minimales de 0,10 %.
Parmi les faits marquants figurent l'élargissement du RPP pour inclure des capacités de titrisation, l'ajout de deux nouveaux partenaires RPP au Canada et le lancement d'un programme pilote de dépôts tokenisés aux États-Unis.
VersaBank (NASDAQ: VBNK) meldete starke Finanzergebnisse für das 3. Quartal 2025: die Gesamterlöse stiegen im Jahresvergleich um 17% auf ein Rekordniveau von 31,6 Millionen US-Dollar. Die Bilanzsumme der Bank wuchs im Jahresvergleich um 21% auf 5,5 Milliarden US-Dollar, angetrieben durch die Ausweitung ihres Receivable Purchase Program (RPP)-Portfolios in den USA und Kanada.
Die Bank erzielte einen Nettoertrag von 6,6 Millionen US-Dollar (0,20 US-Dollar je Aktie), einschließlich geplanter Aufwendungen in Höhe von 4,2 Millionen US-Dollar im Zusammenhang mit einer Umstrukturierung der Unternehmensstruktur. Bereinigt um diese Kosten betrug der bereinigte Nettogewinn 9,7 Millionen US-Dollar (0,30 US-Dollar je Aktie). Das Digital Banking zeigte solide Ergebnisse mit einer Nettozinsspanne von 2,25% und minimalen Kreditverlustzusagen von 0,10%.
Zu den bemerkenswerten Entwicklungen zählen die Erweiterung des RPP um Verbriefungsfunktionen, die Aufnahme von zwei neuen RPP-Partnern in Kanada und der Start eines Pilotprogramms für tokenisierte Einlagen in den Vereinigten Staaten.
- Record revenue of $31.6 million, up 17% year-over-year
- Total assets reached record $5.5 billion, increasing 21% year-over-year
- Strong credit portfolio growth with 18% year-over-year increase to $4.78 billion
- Expansion of RPP program with new securitization capabilities
- Addition of two new RPP partners in Canada
- Strong asset quality with minimal 0.10% credit loss provisions
- Launch of innovative tokenized deposit pilot program in US
- Net income decreased 32% year-over-year to $6.6 million
- Earnings per share declined 44% year-over-year to $0.20
- Incurred $4.2 million in corporate restructuring costs
- Net interest margin decreased 2% sequentially to 2.25%
- 25% share dilution from December 2024 treasury offering
Insights
VersaBank shows strong asset growth and record revenue despite higher expenses from corporate restructuring, with promising US expansion.
VersaBank's Q3 2025 results showcase the strength of its digital banking model, with total assets increasing 21% year-over-year to a record
Looking beyond the headline numbers, adjusted net income of
The bank's credit quality remains exceptionally strong with provisions for credit losses at just
Strategically, VersaBank is executing on multiple fronts: 1) expanding its RPP program to include securitization options in both US and Canada, adding two new RPP partners in Canada; 2) progressing on corporate structure realignment to a standard US bank framework; and 3) launching a pilot for tokenized deposits in the US through its Digital Deposit Receipts (DDRs), positioning the bank for future growth in digital commerce.
The planned corporate restructuring, while creating near-term expense pressure, appears strategically sound as it aims to realize additional shareholder value, mitigate risk, and reduce costs long-term. Management expects the benefits to exceed the investment costs.
VersaBank's continued share repurchases under its NCIB (351,142 shares purchased and cancelled thus far) signal management's confidence in the business model and commitment to creating shareholder value.
– Expansion of RPP Program to Add Securitization Expected to Generate Additional Asset and Earnings Growth in Both US and
– Two New RPP Partners Added in
– VersaBank
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 third quarter 2025 ("Q3 2025") unaudited Interim Consolidated Financial Statements for the period ended July 31, 2025 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.
Note Regarding VersaBank's Third Quarter and Year-to-Date Fiscal 2025 Financial Results: VersaBank's financial results for the third quarter and year-to-date fiscal 2025 reflect the planned, outsized non-interest expense in the amount of
CONSOLIDATED FINANCIAL SUMMARY
(unaudited) | As at or for the three months ended | As at or for the nine months ended | |||||||||||
July 31 | April 30 | July 31 | July 31 | July 31 | |||||||||
(thousands of Canadian dollars, except per share amounts) | 2025 | 2025 | Change | 2024 | Change | 2025 | 2024 | Change | |||||
Financial results | |||||||||||||
Total revenue | $ 31,583 | $ 30,139 | 5 % | $ 26,996 | 17 % | $ 89,549 | $ 84,348 | 6 % | |||||
Cost of funds* | 3.33 % | 3.52 % | (5 %) | 4.17 % | (20 %) | 3.49 % | 4.12 % | (15 %) | |||||
Net interest margin* | 2.25 % | 2.29 % | (2 %) | 2.23 % | 1 % | 2.17 % | 2.38 % | (9 %) | |||||
Net interest margin on credit assets* | 2.55 % | 2.59 % | (2 %) | 2.41 % | 6 % | 2.50 % | 2.58 % | (3 %) | |||||
Return on average common equity* | 4.94 % | 6.67 % | (26 %) | 9.63 % | (49 %) | 6.71 % | 11.79 % | (43 %) | |||||
Adjusted return on average common equity* | 7.24 % | 6.78 % | 7 % | 9.63 % | (25 %) | 7.61 % | 11.79 % | (35 %) | |||||
Net income | 6,582 | 8,529 | (23 %) | 9,705 | (32 %) | 23,254 | 34,232 | (32 %) | |||||
Adjusted net income* | 9,670 | 8,682 | 11 % | 9,705 | 0 % | 26,495 | 34,232 | (23 %) | |||||
Income per common share basic and diluted | 0.20 | 0.26 | (23 %) | 0.36 | (44 %) | 0.74 | 1.29 | (43 %) | |||||
Adjusted income per common share basic and diluted* | 0.30 | 0.28 | 7 % | 0.36 | (17 %) | 0.85 | 1.29 | (34 %) | |||||
Balance sheet and capital ratios** | |||||||||||||
Total assets | $ 5,477,489 | $ 5,047,133 | 9 % | $ 4,516,436 | 21 % | $ 5,477,489 | $ 4,516,436 | 21 % | |||||
Book value per common share* | 16.42 | 16.25 | 1 % | 15.23 | 8 % | 16.42 | 15.23 | 8 % | |||||
Common Equity Tier 1 (CET1) capital ratio | 13.56 % | 14.28 % | (5 %) | 11.75 % | 15 % | 13.56 % | 11.75 % | 15 % | |||||
Total capital ratio | 16.50 % | 17.34 % | (5 %) | 15.40 % | 7 % | 16.50 % | 15.40 % | 7 % | |||||
Leverage ratio | 8.90 % | 9.61 % | (7 %) | 8.54 % | 4 % | 8.90 % | 8.54 % | 4 % | |||||
* See definitions under 'Non-GAAP and Other Financial Measures' in the Q3 2025 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
(thousands of Canadian dollars) | |||||||||
for the three months ended | July 31, 2025 | ||||||||
Digital Banking | Digital Banking | Digital Meteor | DRTC | Eliminations/ | Consolidated | ||||
Adjustments | |||||||||
Net interest income | $ 26,656 | $ 3,123 | $ - | $ - | $ - | $ 29,779 | |||
Non-interest income | (37) | (7) | 622 | 1,569 | (343) | 1,804 | |||
Total revenue | 26,619 | 3,116 | 622 | 1,569 | (343) | 31,583 | |||
Provision for (recovery of) credit losses | 1,201 | (20) | - | - | - | 1,181 | |||
25,418 | 3,136 | 622 | 1,569 | (343) | 30,402 | ||||
Non-interest expenses: | |||||||||
Salaries and benefits | 7,214 | 1,174 | 214 | 1,497 | - | 10,099 | |||
General and administrative | 8,636 | 1,163 | 47 | 214 | (343) | 9,717 | |||
Premises and equipment | 898 | 186 | 373 | 376 | - | 1,833 | |||
16,748 | 2,523 | 634 | 2,087 | (343) | 21,649 | ||||
Income (loss) before income taxes | 8,670 | 613 | (12) | (518) | - | 8,753 | |||
Income tax provision | 2,150 | 176 | (35) | (120) | - | 2,171 | |||
Net income (loss) | $ 6,520 | $ 437 | $ 23 | $ (398) | $ - | $ 6,582 | |||
Total assets | $ 5,124,771 | $ 348,389 | $ 11,543 | $ 25,015 | $ (32,229) | $ 5,477,489 | |||
Total liabilities | $ 4,790,738 | $ 155,228 | $ 9,491 | $ 19,410 | $ (25,520) | $ 4,949,347 | |||
for the three months ended | April 30, 2025 | ||||||||
Digital Banking | Digital Banking | Digital Meteor | DRTC | Eliminations/ | Consolidated | ||||
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 | |||
for the three months ended | July 31, 2024 | ||||||||
Digital Banking | Digital Banking | Digital Meteor | DRTC | Eliminations/ | Consolidated | ||||
Adjustments | |||||||||
Net interest income | $ 24,944 | $ - | $ - | $ - | $ - | $ 24,944 | |||
Non-interest income | 175 | - | 816 | 1,403 | (342) | 2,052 | |||
Total revenue | 25,119 | - | 816 | 1,403 | (342) | 26,996 | |||
Provision for (recovery of) credit losses | (1) | - | - | - | - | (1) | |||
25,120 | - | 816 | 1,403 | (342) | 26,997 | ||||
Non-interest expenses: | |||||||||
Salaries and benefits | 5,945 | - | 291 | 1,271 | - | 7,507 | |||
General and administrative | 4,729 | - | 135 | 311 | (342) | 4,833 | |||
Premises and equipment | 824 | - | 70 | 300 | - | 1,194 | |||
11,498 | - | 496 | 1,882 | (342) | 13,534 | ||||
Income (loss) before income taxes | 13,622 | - | 320 | (479) | - | 13,463 | |||
Income tax provision | 3,811 | - | 17 | (70) | - | 3,758 | |||
Net income (loss) | $ 9,811 | $ - | $ 303 | $ (409) | $ - | $ 9,705 | |||
Total assets | $ 4,507,158 | $ - | $ 3,181 | $ 25,152 | $ (19,055) | $ 4,516,436 | |||
Total liabilities | $ 4,102,239 | $ - | $ 1,215 | $ 28,256 | $ (24,259) | $ 4,107,451 | |||
MANAGEMENT COMMENTARY
"Our third quarter financial results reflect the ramp up of our Receivable Purchase Program in
"To accelerate growth of our Receivable Purchase Program in
"Additionally in
"Looking further ahead, we believe our proprietary Digital Deposit Receipt ("DDR") tokenized deposits represent a significant future opportunity as a superior alternative to stablecoins based on their one-for-one representation of actual cash on deposit with our Bank, the legal ability to pay interest, and conventional deposit insurance. Our DDRs are not only a significant opportunity to generate very low-cost deposits to fund our US growth but also the ideal, market-ready solution for US banks, payment providers and other financial businesses to quickly, seamlessly and cost-effectively enter this critical next stage of the digital commerce evolution."
HIGHLIGHTS FOR THE THIRD QUARTER OF FISCAL 2025
Consolidated (Canadian and US Digital Banking Operations, Digital Meteor and DRTC)
- Total assets increased
21% year-over-year and9% sequentially to a record$5.5 billion Canada ; - Consolidated total revenue increased
17% year-over-year and increased5% sequentially to a record$31.6 million 18% year-over-year and6% sequentially; - Consolidated net income was
$6.6 million $9.7 million $8.5 million $4.2 million - Consolidated adjusted net income, which excludes the costs associated with the Proposed Realignment of Corporate Structure, was
$9.7 million 11% sequentially; - Consolidated income per common share was
$0.20 $0.36 $0.26 25% higher number of shares outstanding due to the treasury common share offering in December 2024; - Consolidated adjusted income per common share, which excludes the costs associated with the Proposed Realignment of Corporate Structure, was
$0.30 - As at July 31, 2025, the Bank has purchased and cancelled 351,142 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, 2025); - During the current quarter, the Bank announced its intention, subject to shareholder, regulatory and other approvals, to realign its corporate structure with the standard framework of a US bank, pursuant to which existing shares of the Bank (the current parent) would be exchanged for shares of VersaHoldings US Corp. (the new parent), the existing US-domiciled entity, which currently holds the Bank's US subsidiaries. The Proposed Realignment of Corporate Structure is intended to realize additional shareholder value, further mitigate risk and reduce corporate costs;
- Subsequent to quarter end, the Bank's wholly owned subsidiary, VersaBank
USA , launched an internal pilot program inthe United States for its USDVBs, the US-dollar version of its proprietary Digital Deposit Receipts ("DDRs"). Upon completion of the pilot program, VersaBankUSA will seek the Office of the Comptroller of the Currency's (OCC's) "non-objection" prior to launching commercially.
Digital Banking (Combined Canada and US)
- Total Digital Banking operations (combined
Canada and US) credit assets increased18% year-over-year and6% sequentially to a record$4.78 billion 15% year-over-year and5% sequentially; - Total Digital Banking operations total revenue increased
18% year-over-year and increased6% sequentially to a record$29.7 million - Total Digital Banking operations net interest margin on credit assets increased 14 bps, or
6% , year-over-year, and decreased 4 bps, or2% sequentially, to2.55% . 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 throughout fiscal 2024 and which is no longer inverted. The sequential decrease reflects the impact for elevated liquidity held to support a capital infusion in VersaBankUSA and lower yield attributable to the increase in the RPP, which is composed of lower risk-weighted, lower yielding assets, partially offset by lower cost of funds; - Total Digital Banking operations overall net interest margin increased 2 bps, or
1% , year-over-year and decreased 4 bps, or2% , sequentially to2.25% , due to higher than typical liquidity. 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
0.10% , compared with a 12-quarter average of0.03% , which remains among the lowest of the publicly traded Canadian Schedule I (federally licensed) banks; - Total Digital Banking operations net income was
$7.0 million $9.8 million $9.3 million $4.2 million - Total Digital Banking operations income per common share was
$0.21 $0.36 $0.28 25% higher number of shares outstanding due to the treasury common share offering in December 2024; - Subsequent to quarter end, the Bank expanded the Receivable Purchase Program with launch of securitized financing solution, which is expected to generate additional asset and earnings growth in both the US and
Canada .
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
$6.5 million $9.8 million $9.2 million $4.2 million - Canadian Digital Banking operations net income per common share was
$0.20 $0.36 $0.28 25% higher number of shares outstanding due to the treasury common share offering in December 2024; and, - Subsequent to quarter end, added two new receivable purchase program partners in
Canada for the RPP, including 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.
Digital Banking US
- US Digital Banking operations net income was
$437,000 $133,000
Digital Meteor Inc.
- Digital Meteor's net income was
$23,000 $303,000 $152,000
DRTC's Cybersecurity Services Operations
- DRTC's net loss was
$398,000 $409,000 $652,000
FINANCIAL SUMMARY
(unaudited) | for the three months ended | for the nine months ended | |||||||
July 31 | July 31 | July 31 | July 31 | ||||||
(thousands of Canadian dollars, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||
Results of operations | |||||||||
Interest income | $ 73,987 | $ 71,646 | $ 218,209 | $ 212,181 | |||||
Net interest income | 29,779 | 24,944 | 83,535 | 77,754 | |||||
Non-interest income | 1,804 | 2,052 | 6,014 | 6,594 | |||||
Total revenue | 31,583 | 26,996 | 89,549 | 84,348 | |||||
Provision for (recovery of) credit losses | 1,181 | (1) | 3,094 | (112) | |||||
Non-interest expenses | 21,649 | 13,534 | 54,864 | 37,743 | |||||
Digital Banking | 19,271 | 11,498 | 46,467 | 31,927 | |||||
DRTC | 2,087 | 1,882 | 7,787 | 6,142 | |||||
Digital Meteor | 634 | 496 | 1,662 | 692 | |||||
Net income | 6,582 | 9,705 | 23,254 | 34,232 | |||||
Adjusted net income* | 9,670 | 9,705 | 26,495 | 34,232 | |||||
Income per common share: | |||||||||
Basic | $ 0.20 | $ 0.36 | $ 0.74 | $ 1.29 | |||||
Diluted | $ 0.20 | $ 0.36 | $ 0.74 | $ 1.29 | |||||
Adjusted income per common share basic and diluted* | $ 0.30 | $ 0.36 | $ 0.85 | $ 1.29 | |||||
Dividends paid on preferred shares | $ - | $ 247 | $ - | $ 741 | |||||
Dividends paid on common shares | $ 807 | $ 650 | $ 2,433 | $ 1,950 | |||||
Yield* | 5.58 % | 6.40 % | 5.66 % | 6.50 % | |||||
Cost of funds* | 3.33 % | 4.17 % | 3.49 % | 4.12 % | |||||
Net interest margin* | 2.25 % | 2.23 % | 2.17 % | 2.38 % | |||||
Net interest margin on credit assets* | 2.55 % | 2.41 % | 2.50 % | 2.58 % | |||||
Return on average common equity* | 4.94 % | 9.63 % | 6.71 % | 11.79 % | |||||
Adjusted return on average common equity* | 7.24 % | 9.63 % | 7.61 % | 11.79 % | |||||
Book value per common share* | $ 16.42 | $ 15.23 | $ 16.42 | $ 15.23 | |||||
Efficiency ratio* | 69 % | 50 % | 61 % | 45 % | |||||
Adjusted efficiency ratio* | 55 % | 50 % | 56 % | 45 % | |||||
Return on average total assets* | 0.50 % | 0.85 % | 0.60 % | 1.03 % | |||||
Provision (recovery) for credit losses as a % of average credit | |||||||||
assets* | 0.10 % | 0.00 % | 0.09 % | 0.00 % | |||||
as at | |||||||||
Balance Sheet Summary | |||||||||
Cash | $ 460,312 | $ 247,983 | $ 460,312 | $ 247,983 | |||||
Securities | 160,136 | 153,026 | 160,136 | 153,026 | |||||
Credit assets, net of allowance for credit losses | 4,778,316 | 4,049,449 | 4,778,316 | 4,049,449 | |||||
Average credit assets | 4,651,064 | 4,033,954 | 4,507,216 | 3,949,927 | |||||
Total assets | 5,477,489 | 4,516,436 | 5,477,489 | 4,516,436 | |||||
Deposits | 4,627,410 | 3,821,185 | 4,627,410 | 3,821,185 | |||||
Subordinated notes payable | 102,148 | 101,641 | 102,148 | 101,641 | |||||
Shareholders' equity | 528,142 | 408,985 | 528,142 | 408,985 | |||||
Capital ratios** | |||||||||
Risk-weighted assets | $ 3,740,088 | $ 3,273,524 | $ 3,740,088 | $ 3,273,524 | |||||
Common Equity Tier 1 capital | 507,212 | 384,496 | 507,212 | 384,496 | |||||
Total regulatory capital | 617,079 | 504,112 | 617,079 | 504,112 | |||||
Common Equity Tier 1 (CET1) ratio | 13.56 % | 11.75 % | 13.56 % | 11.75 % | |||||
Tier 1 capital ratio | 13.56 % | 12.16 % | 13.56 % | 12.16 % | |||||
Total capital ratio | 16.50 % | 15.40 % | 16.50 % | 15.40 % | |||||
Leverage ratio | 8.90 % | 8.54 % | 8.90 % | 8.54 % | |||||
* See definitions under 'Non-GAAP and Other Financial Measures' in the Q3 2025 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 & nine months ended July 31, 2025, which are available on VersaBank's website at www.versabank.com, SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.
About VersaBank
VersaBank is a North American bank with a difference. Federally chartered in both
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 Proposed Realignment of Corporate Structure; the expected realization of additional shareholder value, the simplification of the regulatory structure and the reduction of costs as a result of the Proposed Realignment of Corporate Structure; the key elements of the Proposed Realignment of Corporate Structure; the ability to obtain inclusion on stock indices, including the Russell 2000; the ability to continue to grow the US Receive Purchase 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
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
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, 2024. 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.
Conference Call
VersaBank will be hosting a conference call and webcast today, Thursday, September 4, 2025, at 9:00 a.m. (ET) to discuss its third quarter results, featuring a presentation by David Taylor, President & CEO and John Asma, 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/4mwRvKC 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/rydB4g629Xb 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/rydB4g629Xb and on the Bank's web site at: https://www.versabank.com/investor-relations/events-presentations/. Replay of the teleconference will be available until October 4, 2025 by calling 289-819-1450 or 1-888-660-6345 (toll free) and the passcode is: 67670#
Visit our website at: www.versabank.com
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SOURCE VersaBank
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