VERSABANK COMMENCES FOREIGN EXCHANGE FUNCTIONALITY AND OTHER ENHANCEMENTS TO SUPPORT COMMERCIALIZATION OF REAL BANK TOKENIZED DEPOSITSâ"¢ Accessibility StatementSkip Navigation Foreign Exchange Capabilities Support Core Use Case for RBTDâ"¢s, Further Strengthening Value Proposition and Extending Competitive Advantage LONDON, ON, March 17, 2026 /PRNewswire/ - VersaBank (or the "Bank") (TSX: VBNK) (NASDAQ: VBNK), a North American leader in business-to-business digital banking, as well as technology solutions ...

Core Insights - VersaBank reported a strong first quarter for fiscal 2026, with a 31% year-over-year increase in revenue, a 36% growth in net income, and a 49% increase in adjusted net income [1][2][3] Financial Performance - Total revenue for Q1 2026 reached CAD 36.5 million, up from CAD 27.8 million in Q1 2025, marking a 31% increase year-over-year and a 4% increase sequentially [3][4] - Net income for the quarter was CAD 11.1 million, compared to CAD 8.1 million in the same quarter last year, reflecting a 36% year-over-year growth [2][3] - Adjusted net income was CAD 12.2 million, a 49% increase from CAD 8.1 million in Q1 2025 [2][3] - The bank's total assets increased by 24% year-over-year to CAD 6.1 billion, driven by growth in credit asset portfolios [3][4] Operational Highlights - The Structured Receivable Program (SRP) in the U.S. saw a 55% sequential growth, contributing significantly to revenue growth [2][3] - The bank's net interest margin was 2.25%, with a year-over-year increase of 8% [3][4] - Digital Banking operations reported a net income of CAD 11.5 million, up from CAD 8.9 million in Q1 2025 [3][4] Strategic Developments - The bank is advancing its Real Bank Tokenized Deposits (RBTDs) towards commercialization, capitalizing on the growing adoption of digital assets [2][3] - VersaBank has initiated custody services for stablecoins, with its first customer being Stablecorp Digital Currencies for the QCAD stablecoin [2][3] - The bank is progressing on its reorganization plan, aiming to enhance operational efficiency and capitalize on U.S. market opportunities [2][3][4] Market Position - The bank's credit assets reached CAD 5.33 billion, with a 23% year-over-year increase, driven by strong growth in both U.S. and Canadian SRP portfolios [3][4] - The bank's efficiency ratio improved to 56%, indicating better operational performance [4]