Core Viewpoint - VersaBank is set to report its fourth quarter and fiscal year-end financial results for 2025 on December 10, 2025, with a conference call scheduled to discuss these results [1] Financial Reporting - The financial results will be released via news release at approximately 7:00 a.m. ET on the same day [1] - A conference call/webcast will take place at 9:00 a.m. ET, expected to last around 60 minutes, featuring presentations by the President and CFO [1] Participation Details - Participants can join the conference call by registering in advance for an automated call back or by dialing in directly [1] - A live webcast will also be available on the Bank's website, with an archived version accessible for 90 days post-event [1] Company Overview - VersaBank operates as a federally chartered bank in both Canada and the US, utilizing a branchless, digital business-to-business model [1] - The bank focuses on underserved segments of the banking industry, leveraging proprietary technology to enhance efficiency and return on common equity [1] - In August 2024, VersaBank launched its Receivable Purchase Program in the US, expanding its successful Canadian operations [1] - The bank owns DRT Cyber Inc., a leader in cybersecurity services, addressing the growing cyber threats faced by financial institutions and corporations [1]

Core Points - VersaBank has donated $50,000 to The Salvation Army's Harvest Hope campaign to combat food insecurity in Canada, particularly in London, Ontario, where the bank is headquartered [1][2] - The donation is part of a broader effort to support vulnerable communities amid a sluggish economy, as highlighted by the increased demand for food bank services [1][2] - Food Banks Canada reported that food bank usage has doubled since March 2019, with a 5.2% increase in usage this year compared to 2024 [1] - The Salvation Army distributed over 7 million pounds of food and served 2.6 million shelter meals in Ontario in 2024 [1] Company Overview - VersaBank operates as a federally chartered bank in both Canada and the US, utilizing a branchless, digital business-to-business model [7] - The bank focuses on underserved segments of the banking industry, leveraging proprietary technology to enhance efficiency and return on common equity [7] - VersaBank launched its Receivable Purchase Program in August 2024, targeting the underserved US market for point-of-sale finance companies [7] - The bank also owns DRT Cyber Inc., a leader in cybersecurity services, and Digital Meteor Inc., which focuses on next-generation digital assets [7] Industry Context - Food insecurity is identified as an urgent crisis in Ontario and Canada, necessitating support from organizations like VersaBank [2] - The Salvation Army plays a crucial role in providing various social services, including food banks, shelter, and rehabilitation programs across over 400 communities in Canada [5] - The final months of the year are critical for fundraising efforts for organizations like The Salvation Army, emphasizing the need for corporate support [4]

Group 1: Company Contributions and Community Impact - VersaBank has donated $50,000 to The Salvation Army's Harvest Hope campaign to combat food insecurity in Canada, particularly in London, Ontario, where the bank is headquartered [1] - The Salvation Army reported distributing over 7 million pounds of food and serving 2.6 million shelter meals in Ontario in 2024, highlighting the growing need for support in the community [1] - Captain Gina Haggett from The Salvation Army emphasized the importance of corporate support in providing essential services to vulnerable populations across Canada [2] Group 2: Economic Context and Urgency - Food bank usage in Canada has doubled since March 2019, with a 5.2% increase in usage reported this year compared to 2024, indicating a worsening food insecurity crisis [1] - The final months of the year are critical for fundraising efforts for The Salvation Army, as many organizations seek to support those in need during this time [4] Group 3: Company Background and Operations - VersaBank operates as a branchless, digital bank in North America, focusing on underserved segments of the banking industry through innovative technology [7] - The bank has launched a Receivable Purchase Program funding solution aimed at point-of-sale finance companies, which has been successful in Canada and is now targeting the U.S. market [7]

Core Insights - VersaBank is a North American leader in business-to-business digital banking and technology solutions for cybersecurity, participating in the KBW Fintech Payments Conference in New York City from November 11-13, 2025 [1] - The bank operates a branchless, digital model that allows it to profitably serve underserved segments of the banking industry while mitigating risks [2] - VersaBank launched its Receivable Purchase Program funding solution in August 2024, targeting the underserved multi-trillion-dollar US market, building on its success in Canada [2] - The bank owns DRT Cyber Inc., a leader in cybersecurity services, which enhances its capabilities in addressing cyber threats and developing next-generation digital assets [2] Company Overview - VersaBank is federally chartered in both Canada and the US, utilizing a proprietary technology to drive efficiency and return on common equity [2] - The bank's funding model relies heavily on electronic deposits through financial intermediary partners, providing significant operating leverage [2] - VersaBank's common shares are traded on the Toronto Stock Exchange and NASDAQ under the symbol VBNK [3]

Core Insights - VersaBank has entered into an agreement with its largest US Receivable Purchase Program (RPP) partner to utilize its core RPP in the United States [1][3] - The initial funding of US$61 million has been completed, bringing total US RPP fundings in fiscal 2025 to US$310 million, exceeding the year-end target of US$290 million [2][3] Financial Performance - Total US RPP fundings in fiscal 2025 comprised US$242 million from the core RPP offering and US$68 million from the Securitized RPP offering [2] - Year-end RPP assets reached US$293 million, with US$227 million from the core RPP and US$66 million from the Securitized RPP [2] Strategic Outlook - The company anticipates expanding its US assets significantly in fiscal 2026, driven by the momentum of both core and Securitized RPP offerings [3] - The partnership is expected to enhance the attractiveness of VersaBank's RPP and foster further relationships with new partners [3] Company Overview - VersaBank operates as a branchless, digital, business-to-business bank, leveraging proprietary technology to serve underserved segments of the banking industry [4] - The bank has launched its Receivable Purchase Program funding solution in the US 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 [4]

Summary of VersaBank Conference Call Company Overview - **Company**: VersaBank - **Industry**: Banking, specifically branchless digital banking utilizing blockchain technology - **Unique Model**: Operates in a cloud environment without direct interaction with depositors or borrowers, relying on partners for deposits and loans [1][2] Key Points and Arguments - **Interest Margin**: VersaBank averages a 2.5% spread, which is significantly higher than the Canadian banking industry average by 30-40% [2] - **Loan Losses**: The bank has successfully avoided bad loans and collection departments, which is atypical in the banking sector [2] - **National Bank License**: Achieved a national bank license in the U.S., a significant milestone as it was the first in 18 years for Canada [3] - **Point-of-Sale Lending**: Focuses on point-of-sale loans, particularly in home improvement, which has shown resilience even during economic downturns [6][8] - **Growth Strategy**: Plans to expand into the U.S. market with its point-of-sale program, which is considered a new product in the U.S. [8][9] - **Securitization Product**: Launched a securitization product in the U.S. to cater to large point-of-sale companies using asset-backed securities [9] - **AI Integration**: Developed an AI model to enhance efficiency in loan adjudication, significantly speeding up the process compared to human review [10][21] Regulatory Environment - **Stable Coins**: Discussed the regulatory landscape surrounding stable coins and how VersaBank's tokenized deposits could serve as a safer alternative [11][12] - **Regulatory Support**: Gained positive attention from U.S. regulators, indicating a welcoming environment for its innovative banking solutions [17][18] Financial Outlook - **Potential Earnings**: If VersaBank captures a portion of the USDC market, it could generate significant pre-tax income by investing in U.S. Treasuries [34][35] - **Cash Management**: The bank is adjusting cash holdback requirements based on portfolio performance, indicating a proactive approach to risk management [20][21] Additional Insights - **Cybersecurity**: Established a cybersecurity firm, DRT Cyber, to enhance security measures, led by a former BlackBerry cybersecurity expert [31][32] - **Market Positioning**: Positioned as a leader in the digital banking space, with a focus on innovative products that meet regulatory standards [19][29] - **Partnerships**: Currently working with major deposit brokers in Canada and the U.S. to secure deposits and expand its market reach [26][27] Conclusion - **Investment Opportunity**: VersaBank presents a compelling investment opportunity due to its unique business model, regulatory support, and potential for significant growth in the U.S. market [19][36]

Core Insights - VersaBank has entered into an agreement with Thrive Financial Inc. to utilize its Receivable Purchase Program (RPP) for point-of-sale financing in home improvement projects, marking a significant step in expanding its digital banking solutions in the U.S. market [1][2] - The partnership is expected to enhance the growth of VersaBank's RPP business, which is already a major growth driver due to its economic resiliency, with a target portfolio of US$290 million [2] Company Overview - VersaBank operates as a branchless, digital, business-to-business bank in North America, focusing on underserved segments of the banking industry through proprietary technology [4] - The bank has successfully launched its RPP funding solution in the U.S., which has been effective in Canada for nearly 15 years, targeting the multi-trillion-dollar U.S. market [4] - VersaBank also owns DRT Cyber Inc., a leader in cybersecurity services, and Digital Meteor Inc., which focuses on next-generation digital assets [4] Thrive Financial Inc. - Thrive Financial is a technology platform that connects merchants, consumers, and financial institutions, providing home improvement merchants with access to a comprehensive suite of financing products [3] - The partnership with VersaBank aims to enhance Thrive's ability to offer competitive loan products and scale its platform efficiently [2][3]

Summary of VersaBank Conference Call Company Overview - **Company Name**: VersaBank - **Stock Symbols**: NASDAQ: VBNK, TSX: VBNK - **Type**: Fully digital, branchless bank operating in North America - **Founding**: Established in the early 1990s, first federal license in Canada in 18 years, and a national bank license in the U.S. after three decades [2][3] Core Business Model - **Receivable Purchase Program (RPP)**: Flagship product allowing the purchase of receivables from point-of-sale finance companies, which finance consumer purchases like vehicles and home improvements [4][12] - **Operational Efficiency**: The bank operates with approximately 100 employees, leveraging technology to maintain low fixed costs and high scalability [5][18] - **Credit Risk Management**: Utilizes a put-back arrangement to return delinquent loans to originators, resulting in minimal credit risk [5][13][19] Recent Innovations - **Digital Vault (VersaVault)**: Launched in 2018, allows tokenization of deposits, offering a digital representation of bank deposits [7][9] - **AI Enhancements**: Developed AI modules to process data and documentation significantly faster than human capabilities, improving operational efficiency [21][22] - **Real-Time Receivable Purchases**: Future plans to enable real-time purchases of receivables, enhancing cash flow for partners [22][23] Market Position and Expansion - **U.S. Market Entry**: Recently expanded operations into the U.S., targeting the point-of-sale market, which is significantly larger than the Canadian market [12][17] - **Competitive Landscape**: Currently, no direct competitors in the U.S. market; however, some competition exists in Canada [24][25] - **Securitization**: Plans to incorporate securitization into the product offering to enhance funding options [24] Financial Metrics and Performance - **Return on Equity (ROE)**: Historically high ROE, with margins around 250 basis points, expected to improve with asset growth [6][26] - **Efficiency Ratios**: Focus on improving efficiency ratios to enhance pre-tax earnings, currently at a 30% tax rate [26] - **Asset Growth**: Key metric for investors; growth in assets directly correlates with increased profitability [26] Future Outlook - **Divestment of Cybersecurity Firm**: Plans to divest a cybersecurity firm, which may positively impact book value [14][19] - **Market Potential**: The stablecoin industry has seen $27 trillion in transactions, presenting a significant growth opportunity for VersaBank's digital deposit products [15] Additional Insights - **Consumer Behavior**: Noted differences in financing behavior between U.S. and Canadian consumers, with U.S. consumers financing more readily at point-of-sale [17] - **Scalability**: The bank's model is described as "almost infinitely scalable," with no need for traditional branch networks [18] This summary encapsulates the key points discussed during the conference call, highlighting VersaBank's innovative approach, market expansion, and financial performance metrics.

Core Insights - VersaBank has implemented advanced artificial intelligence capabilities in its core banking technology to enhance real-time monitoring of credit asset data [1] - The new AI features aim to further mitigate risk and improve the bank's operational efficiency [1] Company Overview - VersaBank is recognized as a leader in business-to-business digital banking in North America [1] - The bank also specializes in technology solutions for cybersecurity [1]

Core Viewpoint - VersaBank is advancing its Digital Deposit Receipts (DDRs) pilot programs in Canada and the U.S., aiming to leverage its unique position as the only nationally licensed bank with tokenized deposit capabilities in both countries, to facilitate secure and efficient cross-border transactions [1][2][3]. Group 1: Pilot Programs - The CADVB Pilot Refresh is designed to validate the functionality, security, and compliance of DDRs with Canadian regulations, following enhancements to the bank's core technology since the initial pilot in 2022 [1][2]. - The integration of the CADVB Pilot Refresh with the USDVB Pilot Program aims to showcase the bank's capacity for high-speed, low-cost, and secure cross-border payments using DDRs as digital representations of actual deposits [2]. - Both pilot programs are expected to conclude by the end of 2025, with a commercial launch anticipated shortly thereafter, subject to regulatory requirements [2]. Group 2: Market Opportunity - Approximately CAN$1 trillion in trade occurs annually between the U.S. and Canada, presenting a significant opportunity for VersaBank to provide blockchain-secured foreign exchange transactions [3]. - DDRs offer advantages over non-bank stablecoins, including the ability to pay interest and provide deposit insurance, which are critical for businesses seeking secure digital transaction solutions [3][4]. - The bank is actively pursuing opportunities to monetize its proprietary DDR technology, which is positioned as a market-ready solution for various financial entities [3]. Group 3: Technology and Security - DDRs are bank-issued tokenized deposits that provide enhanced security, stability, and regulatory compliance compared to traditional stablecoins, combining traditional banking safety with blockchain efficiency [4][6]. - The issuance and management of CADVBs will utilize VersaBank's proprietary VersaVault platform, ensuring secure handling of sensitive data and compliance with regulatory standards [5][8]. - VersaVault is designed to manage highly sensitive digital assets and ensure end-to-end security for the lifecycle of DDRs, addressing the need for regulated custody in the digital asset space [8]. Group 4: Company Overview - VersaBank operates as a branchless, digital bank in North America, focusing on underserved segments of the banking industry through its innovative technology [9]. - The bank has successfully launched its Receivable Purchase Program in the U.S., expanding its operations into a multi-trillion-dollar market [9]. - VersaBank also owns DRT Cyber Inc., a leader in cybersecurity services, enhancing its capabilities to address the growing cyber threats faced by financial institutions [9].