Core Insights - VersaBank has entered into a partnership with Watercress Financial Group to enhance its presence in the US home improvement loan market through its Receivable Purchase Program (RPP) [1][2] - The partnership marks VersaBank's first collaboration with an American company following its acquisition of a US bank, aiming to leverage Watercress's established network and expertise in consumer loans [2][5] - VersaBank's RPP has shown significant growth, with a portfolio exceeding CAD$3.3 billion (US$2.4 billion) and a compounded annual growth rate of over 27% over the last five years [4] Company Overview - VersaBank is a fully digital financial institution with a cloud-based, branchless model, focusing on underserved segments of the banking industry [6][7] - The bank has successfully provided over CAD$10.5 billion (US$7.5 billion) in funding to North American finance companies since the launch of its RPP in 2010 [4] - VersaBank also operates in the cybersecurity sector through its subsidiary DRT Cyber Inc., addressing the growing cyber threats faced by financial institutions and corporations [7] Industry Context - The US represents the largest point-of-sale financing market globally, making it a strategic focus for VersaBank's expansion efforts [2] - Home improvement financing has been a significant growth driver for VersaBank's Canadian operations, indicating potential for similar success in the US market [2][4] - The RPP is designed to meet the demand for accessible and economically attractive capital in the consumer and small business financing market [3]

Corporate Realignment and Divestiture - VersaBank announced the internal transfer of assets related to its Digital Deposit Receipt technology to a subsidiary named Digital Meteor, Inc. This move is aimed at enhancing shareholder value and supports the planned divestiture of its Cyber Security businesses [1] - The transfer is not expected to have any material financial implications for the bank [1] Digital Asset Innovation - The company is encouraged by the favorable stance of the U.S. administration towards digital assets, particularly following President Trump's executive order aimed at promoting U.S. leadership in digital assets and financial technology [2] - VersaBank has successfully completed a pilot program with its blockchain-based DDR, which provides a secure representation of federally regulated bank deposits on multiple blockchains, and received SOC 2 Type I certification for its VersaVault® technology in 2022 [2] - DDRs can be converted to and from other digital currencies like Bitcoin, combining traditional banking safety with blockchain efficiency [2] Digital Deposit Receipts (DDRs) - DDRs are highly encrypted digital assets representing actual fiat currency on deposit with the bank, issued on secure blockchains such as Algorand, Ethereum, and Stellar [3] - They offer superior security, stability, and regulatory compliance compared to traditional stablecoins, making them a trusted alternative for mainstream financial applications [3] Business Model and Market Expansion - VersaBank operates as a fully digital financial institution with a cloud-based, branchless model, focusing on underserved segments of the banking industry [4] - The bank launched its Receivable Purchase Program (RPP) in August 2024, targeting the U.S. market, which has been successful in Canada for nearly 15 years [4] - The RPP provides funding for low-risk point-of-sale finance companies through automated electronic purchases of cash flow streams from finance partners' loans [4] Cyber Security Services - VersaBank owns DRT Cyber Inc., a leader in providing cyber security services to financial institutions, multinational corporations, and government entities [5]

Core Insights - The "holy grail" in banking is achieving a high Return on Equity (ROE) with a low-risk profile while also ensuring rapid growth and significant operating leverage [1] Group 1: Independent Banking Research - Independent banking research emphasizes financials, deep value, special situations, and financial arbitrage [2] - The approach is agnostic and apolitical, focusing on durable and uncorrelated cash flows that perform well in both inflationary and deflationary environments [2]

Group 1 - VersaBank announced the full exercise of the underwriters' option to purchase an additional 849,056 common shares at a price of US$13.25 per share, resulting in additional gross proceeds of US$11,249,992 [1] - The total number of common shares sold in the Offering increased to 6,509,434, with total gross proceeds reaching US$86,250,001 [1] - The net proceeds from the Offering are expected to be used for general banking purposes and will qualify as Common Equity Tier 1 capital for the Bank [2] Group 2 - Raymond James & Associates, Inc. acted as the sole bookrunning manager, while Keefe, Bruyette & Woods, A Stifel Company, and Roth Canada, Inc. served as co-managers for the Offering [2] - VersaBank operates a branchless, digital, business-to-business banking model, leveraging proprietary technology to serve underserved segments of the banking industry [5] - The Bank launched its Receivable Purchase Program (RPP) funding solution in March 2022, targeting the U.S. market, which has been successful in Canada for nearly 15 years [5]

Summary of Key Points Core Viewpoint - VersaBank has successfully completed a public offering of common shares, raising approximately US$75 million, which will be used for general banking purposes and will qualify as Common Equity Tier 1 capital for the Bank [1][2]. Group 1: Offering Details - The offering price was set at US$13.25 per share, with a total of 5,660,378 shares sold, resulting in gross proceeds of US$75,000,009 (approximately CAD$107,287,513) [1]. - An over-allotment option has been granted to underwriters to purchase an additional 15% of the common shares sold, exercisable until January 15, 2025 [2]. Group 2: Underwriters and Regulatory Filings - Raymond James & Associates, Inc. acted as the sole bookrunning manager, with Keefe, Bruyette & Woods, A Stifel Company, and Roth Canada, Inc. serving as co-managers for the offering [3]. - The offering was conducted under a prospectus supplement dated December 16, 2024, which is part of the Bank's short form base shelf prospectus filed with Canadian securities regulatory authorities and the U.S. SEC [4]. Group 3: Company Overview - VersaBank operates a branchless, digital, business-to-business banking model, focusing on underserved segments of the banking industry [7]. - The Bank has launched a Receivable Purchase Program (RPP) funding solution aimed at the U.S. market, building on its successful experience in Canada [7]. - VersaBank also owns DRT Cyber Inc., a leader in providing cybersecurity services to financial institutions and government entities [7].

The Base Shelf Prospectus is accessible, and the Final Prospectus Supplement will be accessible within two business days, on SEDAR+ and on EDGAR LONDON, ON, Dec. 16, 2024 /PRNewswire/ - VersaBank (Nasdaq:VBNK; TSX:VBNK) (the "Bank") today announced the pricing of its previously announced public offering of 5,660,378 common shares (the "Offering") at a price to the public of US$13.25 per share. The gross proceeds from the Offering, before underwriting discounts and offering costs, are expected to be US$75,0 ...

The Base Shelf Prospectus and the Preliminary Supplement are accessible on SEDAR+ and on EDGAR LONDON, ON, Dec. 16, 2024 /PRNewswire/ - VersaBank (Nasdaq: VBNK) (TSX: VBNK) (the "Bank") today announced that it has filed a preliminary prospectus supplement (the "Preliminary Supplement") to its short form base shelf prospectus dated November 22, 2024 (the "Base Shelf Prospectus"). The Preliminary Supplement was filed in connection with a public offering of the Bank's common shares (the "Offering"). The Prelim ...

For Immediate Release: December 9, 2024 Attention: Business Editors VERSABANK FOURTH QUARTER AND FISCAL 2024 RESULTS CONTINUE TO DEMONSTRATE STRENGTH OF BUSINESS MODEL AS BANK LAUNCHES PROVEN RPP SOLUTION IN US MARKET VersaBank's 2024 annual audited Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") will be available today online at www.versabank.com/investor-relations, SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.shtml. Supplementary Financial Information will ...

LONDON, ON, Dec. 2, 2024 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK) will report its fourth quarter and fiscal 2024 year-end financial results and host a conference call to discuss those results on Monday, December 9, 2024. The conference call/webcast is scheduled for 9:00 a.m. ET and is expected to last approximately 60 minutes. The conference call/webcast will include a presentation by David Taylor, President & CEO and John Asma, CFO, followed by a question and answer p ...

LONDON, ON, Nov. 14, 2024 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK; NASDAQ: VBNK) today announced management will participate in the 13th Annual ROTH Technology Conference to be held November 19-20, 2024 in New York City.  VersaBank management will be participating in one-on-one meetings throughout the conference.  The conference is exclusively for ROTH's institutional clients and is by invitation only. Prospective attendees are encouraged to contact their ROTH sales representative or ...