VERSABANK ANNOUNCES WATERCRESS FINANCIAL AS ITS US RECEIVABLE PURCHASE PROGRAM PARTNER

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]