VersaBank cheers privatization of ECN Capital

Executive Summary

• VersaBank congratulates its U.S. receivable purchase program (RPP) partner, ECN Capital Corp., on its privatization transaction led by Warburg Pincus LLC.
• The release highlights the ongoing and expanding financial relationship between VersaBank and ECN’s subsidiary, Source One Financial Services, noting that total financings with Source One have exceeded $90 million (U.S.).
• VersaBank projects significant growth in its U.S. RPP assets, expecting them to grow "at a minimum of several fold" in fiscal 2026.

Key Details

• Transaction Context: ECN Capital Corp. announced a privatization transaction involving purchasers and an investor group controlled by Warburg Pincus LLC.
• Partnership Status: ECN Capital is the unnamed largest U.S. RPP partner to date for VersaBank, having been added to the bank's U.S. RPP program as per a previous release on Nov. 3, 2025.
• Financing Volume: VersaBank announced the completion of an additional financing with Source One Financial Services (ECN's wholly owned subsidiary), bringing total financings with Source One to more than $90-million (U.S.).
• Growth Outlook: VersaBank expects to expand its U.S. RPP assets to grow at a minimum of several fold in fiscal 2026, citing strong momentum in both core RPP and securitized RPP offerings in the U.S. market.
• Source One Profile: Source One is a specialty lending provider supporting over 3,500 dealerships across 47 states, founded in 1999.
• ECN Capital Profile: ECN Capital has managed assets of $8.2-billion (U.S.) and operates in manufactured housing finance and recreational vehicle/marine finance.

Notable Quotes

• David Taylor, Founder and President, VersaBank: "VersaBank has a long and successful history of working with ECN Capital founder and point-of-sale financing veteran Steve Hudson, and we are thrilled to further our relationship through our partnership with ECN as it moves into its next stage of growth as a private company... I would like to congratulate all on their recently announced transaction. We look forward to expanding our relationship with ECN to our mutual benefit."
• Steve Hudson, Founder and CEO, ECN Capital: "I am excited to once again partner with VersaBank and its founder and president David Taylor to build on the trusted relationship we have developed over decades of working together and continue to provide innovative lending options to the ever growing point-of-sale financing market... this new partnership reflects our continued efforts throughout ECN to enhance operational efficiency as we seek to generate additional revenue utilizing VersaBank's innovative and attractive solution."