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automated call back or by dialing in directly [1] - A live webcast will also be available on the Bank's website, with an archived version accessible for 90 days post-event [1] Company Overview - VersaBank operates as a federally chartered bank in both Canada and the US, utilizing a branchless,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 Insights - Bank of Nova Scotia (BNS) reported quarterly earnings of $1.39 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and up from $1.15 per share a year ago, representing an earnings surprise of +4.51% [1] - The bank's revenues for the quarter ended October 2025 were $7.06 billion, surpassing the Zacks Consensus Estimate by 5.58%, and up from $6.24 billion year-over-year [2] - The stock has gained approximately 27.6% year-to-date, outperforming the S&P 500's gain of 15.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.39 on revenues of $6.85 billion, and for the current fiscal year, it is $5.64 on revenues of $27.88 billion [7] - The estimate revisions trend for Bank of Nova Scotia was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Banks - Foreign industry, to which Bank of Nova Scotia belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, VersaBank, is expected to report quarterly earnings of $0.24 per share, reflecting a year-over-year decline of -14.3%, with revenues projected at $24.27 million, up 21.5% from the previous year [9]

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 - Nu Holdings Ltd. reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing an increase from $0.12 per share a year ago, resulting in an earnings surprise of +13.33% [1] - The company achieved revenues of $4.17 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.36%, and up from $2.94 billion year-over-year [2] - Nu shares have increased approximately 56.2% year-to-date, significantly outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $4.27 billion, and for the current fiscal year, it is $0.56 on revenues of $15.22 billion [7] - The estimate revisions trend for Nu was favorable prior to the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Foreign industry, to which Nu belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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]

U.S. stock index futures are pointing to a positive open on Monday, November 3, 2025, as Wall Street looks to extend its winning streak into the new month. Investor sentiment remains buoyed by strong corporate earnings, particularly from the technology sector, and a cautious optimism surrounding U.S.-China trade relations. However, the ongoing government shutdown continues to cast a shadow, delaying crucial economic data releases and keeping market participants focused on private-sector indicators and upcom ...

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]