LONDON, ON, June 11, 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 management will participate in the Sidoti Virtual Investor Conference to be held on June 11-12, 2025. David Taylor, President of VersaBank, will present on June 12, 2025, at 2:30 p.m. ET. A live webcast of the presentation will be available on the Bank's website at https:/ ...

Core Insights - VersaBank is set to present its innovative Digital Deposit Receipts (DDRs) at the Florida Bankers Association's Annual Meeting, highlighting their potential to enable banks to issue stablecoins backed by actual deposits [1][2] - The US Administration's positive stance on digital assets is prompting both large and community banks to explore stablecoin solutions for modernizing payment systems [2] - VersaBank operates a branchless, digital business-to-business model, focusing on underserved segments of the banking industry while maintaining a risk-mitigated approach [3] Company Overview - VersaBank is federally chartered in both Canada and the US, utilizing advanced technology to efficiently serve the banking sector [3] - The bank has launched a Receivable Purchase Program funding solution aimed at the US market, which has been successful in Canada for nearly 15 years [3] - VersaBank owns DRT Cyber Inc., a leader in cybersecurity services, and Digital Meteor Inc., which focuses on developing next-generation digital assets [3] Market Position - The Digital Deposit Receipt solution is designed to integrate seamlessly with existing banking software, addressing regulatory concerns and ensuring high security standards [2] - The bank's unique model allows it to achieve significant operating leverage, enhancing efficiency and return on common equity [3] - VersaBank's shares are traded on both the Toronto Stock Exchange and NASDAQ under the symbol VBNK [4]

Core Viewpoint - VersaBank reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.33 per share a year ago, indicating a negative earnings surprise of -14.29% [1][2] Financial Performance - The company posted revenues of $21.21 million for the quarter ended April 2025, which was below the Zacks Consensus Estimate by 0.54%, and slightly up from $21.01 million year-over-year [2] - Over the last four quarters, VersaBank has only surpassed consensus EPS estimates once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - VersaBank shares have declined approximately 16.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.5% [3] - The current Zacks Rank for VersaBank is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $24.05 million, and for the current fiscal year, it is $1.15 on revenues of $91.78 million [7] - The trend of estimate revisions for VersaBank is mixed, which could change following the recent earnings report [6] Industry Context - The Zacks Industry Rank for Banks - Foreign is currently in the top 9% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of ranked industries [8]

Core Viewpoint - VersaBank reported strong financial results for Q2 2025, with record total revenue and significant growth in credit assets, driven by its Receivable Purchase Program and digital banking operations [2][12][19]. Financial Performance - Total revenue for Q2 2025 reached CAD 30.1 million, a 6% increase year-over-year and an 8% increase sequentially [12][18]. - Net income for Q2 2025 was CAD 8.5 million, compared to CAD 8.1 million in Q1 2025 and CAD 11.8 million in Q2 2024 [12][18]. - Earnings per share for Q2 2025 were CAD 0.26, down from CAD 0.28 in Q1 2025 and CAD 0.45 in Q2 2024 [12][18]. Asset Growth - Total assets increased by 15% year-over-year and 2% sequentially to a record CAD 5.0 billion, primarily due to growth in credit portfolios [12][20]. - Total credit assets reached CAD 4.52 billion, marking a 13% year-over-year increase and a 4% sequential increase [11][12]. Digital Banking Operations - Digital Banking operations generated total revenue of CAD 28.1 million, a 6% increase year-over-year and a 9% increase sequentially [15]. - The net interest margin on credit assets for Digital Banking operations increased to 2.59%, reflecting a 3% year-over-year increase and a 10% sequential increase [15][12]. Strategic Initiatives - The company is pursuing a structural realignment to align with a standard US bank framework, which is expected to enhance shareholder value and reduce costs [9][12]. - The Receivable Purchase Program in the US is on track to reach at least USD 290 million by fiscal year-end [8][19]. Market Position - VersaBank operates a branchless, digital business-to-business model, leveraging technology to address underserved segments in the banking industry [22]. - The bank's cybersecurity subsidiary, DRT Cyber Inc., positions it as a leader in addressing the growing volume of cyber threats [22].

Group 1 - VersaBank will report its second quarter fiscal 2025 financial results on June 4, 2025, at 7:00 a.m. ET, followed by a conference call at 9:00 a.m. ET [1] - The conference call will feature presentations by David Taylor, President & CEO, and John Asma, CFO, with a question and answer session to follow [1] - The financial results will be released via news release at approximately 7:00 a.m. ET on the same day [1] Group 2 - For those wishing to join the conference call, registration can be done in advance for an automated call back, or participants can dial in directly [2] - A live webcast of the presentation will be available on the Bank's website and through a specific link [3] - An archived version of the webcast will be accessible for 90 days post-event, and a replay of the teleconference will be available until July 4, 2025 [4] Group 3 - VersaBank operates as a federally chartered bank in both Canada and the US, utilizing a branchless, digital business-to-business model [5] - The Bank has launched a Receivable Purchase Program funding solution aimed at underserved markets in the US, building on its success in Canada [5] - VersaBank also owns DRT Cyber Inc., a leader in cybersecurity services, and has proprietary technology for digital assets, including Digital Deposit Receipts [5]

Core Viewpoint - VersaBank has received approval for a Normal Course Issuer Bid (NCIB) to repurchase up to 2,000,000 common shares, representing approximately 8.99% of its public float, amidst a challenging environment for the North American banking industry [1][2][3] Group 1: Financial Performance - In fiscal 2025 year to date, VersaBank has achieved significant year-over-year growth in profitability, leading to improvements in efficiency ratio and return on common equity [2] - The bank's performance is noted to be strong despite broader industry challenges, particularly in the United States, which have negatively impacted overall valuations [2] Group 2: Share Repurchase Program - The NCIB allows VersaBank to purchase common shares starting April 30, 2025, and ending April 29, 2026, or earlier if purchases are completed [3] - Daily purchases under the NCIB will be limited to 25% of the average daily trading volume (ADTV), which is 9,440 common shares, with a total of 20,321,293 shares traded during the preceding six-month period [2][3] Group 3: Business Model and Strategy - VersaBank operates a branchless, digital, business-to-business model that leverages proprietary technology to serve underserved segments of the banking industry [4] - The bank has launched a Receivable Purchase Program targeting the U.S. market, which has been successful in Canada for nearly 15 years [4] - VersaBank also owns DRT Cyber Inc., a leader in cybersecurity services, and Digital Meteor Inc., which focuses on next-generation digital assets for the banking sector [4]

Group 1 - VersaBank held its 2025 Annual Meeting of Shareholders on April 24, 2025, in London, Ontario, where all director nominees were elected [1] - The voting results showed high approval rates for the directors, with the Honourable Frank Newbould receiving 98.97% in favor and David R. Taylor receiving 99.08% [1] - Shareholders approved the appointment of Ernst & Young LLP as auditors of the Bank [1] Group 2 - VersaBank operates as a federally chartered bank in both Canada and the US, utilizing a branchless, digital, business-to-business model [3] - The bank focuses on underserved segments of the banking industry, leveraging proprietary technology to enhance efficiency and return on common equity [3] - In August 2024, VersaBank launched a Receivable Purchase Program targeting the US market, which has been successful in Canada for nearly 15 years [3] - VersaBank owns DRT Cyber Inc., a leader in cybersecurity services, addressing the increasing volume of cyber threats [4] - The bank also has a subsidiary, Digital Meteor Inc., which develops next-generation digital assets and Digital Deposit Receipts (DDRs) [4]

Group 1 - VersaBank will hold its annual meeting of shareholders on April 24, 2025, at the VersaBank Innovation Centre of Excellence in London, Ontario, and it will be livestreamed from the Nasdaq MarketSite in New York City [1] - David Taylor, Founder, President, and CEO of VersaBank, along with Tel Matrundola, President of VersaBank USA, will ring the Nasdaq Closing Bell on April 25, 2025, at 4:00 p.m. ET, with a livestream available [2] Group 2 - VersaBank operates as a federally chartered bank in both Canada and the US, utilizing a branchless, digital, business-to-business model that leverages proprietary technology to serve underserved segments of the banking industry [3] - The bank launched its Receivable Purchase Program funding solution in August 2024, targeting the underserved multi-trillion-dollar US market, building on its success in Canada [3] - VersaBank owns DRT Cyber Inc., a leader in cybersecurity services, and its subsidiary Digital Meteor Inc. holds proprietary technology for next-generation digital assets, including Digital Deposit Receipts (DDRs) [3] Group 3 - VersaBank's common shares are traded on the Toronto Stock Exchange and NASDAQ under the symbol VBNK [4]

Group 1: US Receivable Purchase Program (RPP) - VersaBank has entered into an agreement with its second US RPP partner, aiming to leverage its innovative RPP to fund loan and lease originations [1] - The US RPP portfolio has surpassed US$70 million (approximately CAD$100 million) in assets within 75 days of adding the first partner, with a target of US$290 million in fiscal 2025 [2][3] - The company expects to add more RPP partners, driven by favorable market conditions as alternative funding costs rise [3] Group 2: Financial Performance and Net Interest Margin - VersaBank's net interest margin (NIM) has expanded significantly in the first two months of the second quarter of fiscal 2025, influenced by factors such as the normalization of the yield curve and the replacement of higher interest rate term deposits [4] - The addition of higher margin US RPP assets is also contributing positively to the NIM [4] Group 3: CMHC-Insured Loans - The bank is on track to reach its target of $1 billion in commitments for Canada Mortgage and Housing Corporation (CMHC)-insured loans by the end of fiscal 2025, with commitments exceeding $730 million as of April 15, 2025 [6] - CMHC-insured loans are zero risk-weighted, requiring no risk-weighted capital, thus generating an attractive spread that contributes favorably to the credit asset net interest margin [6] Group 4: Expansion of Deposit Broker Network - VersaBank has expanded its deposit broker network by adding BMO Nesbitt Burns Inc., which is expected to further enhance the bank's NIM in fiscal 2025 [5] Group 5: Overview of VersaBank - VersaBank operates a branchless, digital, business-to-business model, utilizing proprietary technology to address underserved segments of the banking industry [9] - The bank launched its Receivable Purchase Program in the US market, which has been successful in Canada for nearly 15 years [9]

Core Insights - VersaBank will participate in the 37th Annual ROTH Conference from March 16-18, 2025, in Dana Point, California, with management available for one-on-one meetings with institutional investors [1] Company Overview - VersaBank is a North American bank with a unique branchless, digital, business-to-business model that leverages proprietary technology to serve underserved segments of the banking industry in a risk-mitigated manner [2] - The bank primarily obtains deposits and funding electronically through financial intermediary partners, which enhances operational efficiency and return on common equity [2] - In August 2024, VersaBank launched its Receivable Purchase Program funding solution aimed at point-of-sale finance companies, targeting the underserved multi-trillion-dollar US market [2] - VersaBank owns DRT Cyber Inc., a leader in cybersecurity services in North America, addressing the increasing cyber threats faced by financial institutions and government entities [2] - Through its subsidiary Digital Meteor Inc., VersaBank holds proprietary technology for the next generation of digital assets, including Digital Deposit Receipts (DDRs) [2]