VersaBank (NASDAQ:VBNK) Q3 2023 Earnings Call Transcript August 30, 2023 9:00 AM ET Company Participants David Taylor - President and CEO Shawn Clarke - CFO Conference Call Participants David Feaster - Raymond James Mike Rizvanovic - KBW Research Stephen Ranzini - University Bank Bradley Ness - Choral Capital Operator Good morning, ladies and gentlemen, and welcome to VersaBank's Third Quarter fiscal 2023 Financial Results Conference Call. This morning, VersaBank issued a news release reporting its financia ...

Q3 2023 Conference Call Presentation August 30, 2023 Follow us Post Conference Call Q&A 2 Toll-free: 1 (888) 664-6392 (Canada/US) Local: (416) 764-8659 For those wishing to ask questions during the Q&A, please access today's call through the telephone dial-in: Advisory 3 The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, ...

Exhibit 99.1 Interim Consolidated Financial Statements July 31, 2023 (Unaudited) 1 VERSABANK Consolidated Balance Sheets (Unaudited) (thousands of Canadian dollars) | | | July 31 | | October 31 | | July 31 | | --- | --- | --- | --- | --- | --- | --- | | As at | | 2023 | | 2022 | | 2022 | | Assets | | | | | | | | Cash | $ | 87,726 | $ | 88,581 | $ | 84,214 | | Securities (note 4) | | 182,944 | | 141,564 | | 133,682 | | Loans, net of allowance for credit losses (note 5) | | 3,661,672 | | 2,992,678 | | 2,814,1 ...

VersaBank (NASDAQ:VBNK) Q2 2023 Earnings Conference Call June 7, 2023 9:00 AM ET Company Participants David Taylor - President, Chief Executive Officer Shawn Clarke - Chief Financial Officer Conference Call Participants David Feaster - Raymond James Stephen Lange Ranzini - University Bank Abhilash Shashidharan - KBW Research Operator Good morning ladies and gentlemen. Welcome to VersaBank’s second quarter fiscal 2023 financial results conference call. This morning, VersaBank issued a news release reporting ...

Exhibit 99.1 Interim Consolidated Financial Statements April 30, 2023 (Unaudited) 1 VERSABANK Consolidated Balance Sheets (Unaudited) (thousands of Canadian dollars) | | | April 30 | | October 31 | | April 30 | | --- | --- | --- | --- | --- | --- | --- | | As at | | 2023 | | 2022 | | 2022 | | Assets | | | | | | | | Cash | $ | 223,661 | $ | 88,581 | $ | 198,157 | | Securities (note 4) | | 39,652 | | 141,564 | | - | | Loans, net of allowance for credit losses (note 5) | | 3,419,455 | | 2,992,678 | | 2,450,276 ...

VersaBank (NASDAQ:VBNK) Q1 2023 Results Conference Call March 8, 2023 9:00 AM ET Company Participants David Taylor - President, CEO Shawn Clarke - CFO Conference Call Participants David Feaster - Raymond James Mike Rizvanovic - KBW Research Stephanie Woo - LodeRock Research Trevor Reynolds - Acumen Capital Brad Ness - Choral Capital Operator Good morning, ladies and gentlemen. Welcome to VersaBank's First Quarter Fiscal 2023 Financial Results Conference Call. This morning, VersaBank issued a news release re ...

| | | January 31 | | October 31 | | January 31 | | --- | --- | --- | --- | --- | --- | --- | | As at | | 2023 | | 2022 | | 2022 | | Assets | | | | | | | | Cash | $ | 201,372 | $ | 88,581 | $ | 155,239 | | Securities (note 4) | | 49,847 | | 141,564 | | - | | Loans, net of allowance for credit losses (note 5) | | 3,235,083 | | 2,992,678 | | 2,215,638 | | Other assets (note 6) | | 45,388 | | 43,175 | | 44,469 | | | $ | 3,531,690 | $ | 3,265,998 | $ | 2,415,346 | | Liabilities and Shareholders' Equity | | | | | ...

VersaBank (NASDAQ:VBNK) Q4 2022 Earnings Conference Call December 7, 2022 9:00 AM ET Company Participants David Taylor - President & CEO Shawn Clarke - CFO Conference Call Participants Greg MacDonald - LodeRock Research Stephen Ranzini - University Bank Brad Ness - Choral Capital Operator Good morning, ladies and gentlemen. Welcome to VersaBankÂ's Fourth Quarter and Year-End Fiscal 2022 Financial Results Conference Call. This morning, VersaBank issued a news release reporting its financial results for the f ...

Financial Data and Key Metrics Changes - Total assets surpassed $3 billion for the first time, reaching $3.1 billion, up 35% year-over-year and 14% sequentially [20] - Total loan portfolio grew to a record $2.81 billion, an increase of 44% year-over-year and 15% sequentially [22] - Consolidated revenue increased 35% year-over-year and 14% sequentially to a record $21.2 million [24] - Net income for Q3 was $5.7 million, reflecting a 5% year-over-year and 16% sequential growth [25] - Earnings per share for Q3 was $0.20, down 20% year-over-year but up 18% sequentially [26] Business Line Data and Key Metrics Changes - The Canadian Point-of-Sale financing business saw a 75% year-over-year and 24% sequential increase, reaching $2 billion, representing 71% of the total loan portfolio [28] - The commercial real estate portfolio increased 1% year-over-year but decreased 3% sequentially to $804 million [29] - Net interest income for digital banking operations increased 38% year-over-year and 16% sequentially to a record $20.1 million [31] - DRTC's revenue from cybersecurity services increased 7% year-over-year but decreased 12% sequentially [38] Market Data and Key Metrics Changes - The U.S. small business Point-of-Sale financing market is valued at $1.8 trillion and is growing rapidly [18] - Insolvency Professional deposit balances contracted slightly in Q3, but growth is expected in early fiscal 2023 due to anticipated increases in consumer bankruptcies [35] Company Strategy and Development Direction - The company announced the acquisition of Stearns Bank, a national U.S. bank, which is a key part of its long-term growth strategy [14] - The U.S. receivable purchase program will be launched to address the underserved U.S. market, leveraging the successful Canadian Point-of-Sale model [15][16] - The company is focused on expanding its digital deposit receipts as a regulated alternative to the unregulated stablecoin market [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of the loan portfolio and profitability, driven by strong demand in the Point-of-Sale financing sector [45][47] - The company anticipates that the costs associated with strategic growth initiatives will normalize in 2023 [27] - Management noted that the current economic environment may lead to increased consumer insolvencies, which could benefit the company's deposit strategy [55] Other Important Information - The company incurred approximately $3 million in transitory costs related to strategic growth initiatives and NASDAQ listing [13][26] - The CET1 ratio was 12.51%, up from 11.94% year-over-year, while the leverage ratio was 10.38%, up from 9.99% year-over-year [23] Q&A Session Summary Question: Outlook for DRTC business - Management indicated that there is seasonality in DRTC's business, with expectations for recovery towards the end of the year and positive reception for new products [51][52] Question: Insights on insolvency deposit strategy - Management noted that current insolvency rates are below normal, but expects an increase in consumer insolvencies due to rising interest rates, which will drive deposit growth [55] Question: Breakdown of transitory costs - Approximately 60% of the $3 million in transitory costs were related to legal and consulting fees for the Stearns acquisition, with the remainder associated with insurance renewals [60] Question: Current balance of U.S. Point-of-Sale loans - The current balance of U.S. Point-of-Sale loans is $39 million [69] Question: Timeline for VCAD commercial launch - Management aims for a launch before the end of the fiscal year, pending final approvals from regulatory bodies [72]

Q3 2022 Conference Call Presentation August 31, 2022 Follow us Post Conference Call Q&A 2 Toll-free: 1 (888) 664-6392 (Canada/US) Local: (416) 764-8659 For those wishing to ask questions during the Q&A, please access today's call through the telephone dial-in: Advisory 3 The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, ...