VERSABANK ANNOUNCES LARGEST US RPP PARTNER TO DATE; SURPASSES US RPP TARGET WITH US$310 MILLION FUNDED IN FISCAL 2025

Executive Summary

• VersaBank announced that its US subsidiary secured a new, largest U.S. Receivable Purchase Program (RPP) partner, completing an initial $61 million funding.
• Total U.S. RPP fundings for fiscal 2025 reached $310 million, exceeding the company’s target of $290 million and resulting in year‑end RPP assets of $293 million.
• The funding mix comprised $242 million from core RPP and $68 million from securitized RPP; assets consisted of $227 million core RPP and $66 million securitized RPP, positioning the bank for further expansion in fiscal 2026.

Key Details

• Initial Funding with New Partner: $61 million completed immediately upon agreement.
• Fiscal 2025 Total US RPP Fundings: $310 million (target was $290 million).
• Funding Composition:
• Core RPP: $242 million of total fundings; $227 million of year‑end assets.
• Securitized RPP: $68 million of total fundings; $66 million of year‑end assets.
• Year‑End RPP Assets: $293 million (exceeds the first‑year target of $290 million).
• Growth Outlook: Management expects US RPP assets to increase “several fold” in fiscal 2026.
• Partner Anonymity: Partner requested not to be named until a later date.

Notable Quotes

“We are thrilled to add our largest US RPP partner to date, further evidence of the attractiveness of VersaBank's RPP, and we look forward to expanding our relationship with this partner to our mutual benefit… Both our core RPP and our Securitized RPP offerings are gaining momentum in the US market, and we expect to expand our US assets at a minimum of several fold in fiscal 2026.” – David Taylor, Founder and President, VersaBank.