VERSABANK REPORTS STRONG FIRST QUARTER RESULTS: ACCELERATED U.S. GROWTH DRIVES 31% YEAR-OVER-YEAR INCREASE IN REVENUE, 36% YEAR-OVER-YEAR GROWTH IN NET INCOME, 49% YEAR-OVER-YEAR GROWTH IN ADJUSTED NET INCOME

Executive Summary

• VersaBank reported a strong first‑quarter 2026, with total revenue up 31% YoY to C$36.5 M and net income rising 113% YoY to C$11.1 M.
• Adjusted net income increased 49% YoY to C$12.2 M; adjusted earnings per share rose to $0.38 from $0.28 a year earlier.
• Total assets grew 24% YoY to a record C$6.15 B, driven by rapid expansion of the U.S. Structured Receivable Program (SRP) and Canadian digital‑banking credit portfolios.

Key Details

• Revenue & Profitability – Revenue C$36,514 k (+31% YoY, +4% QoQ); Net income C$11,069 k (+113% YoY, +36% QoQ); Adjusted net income C$12,162 k (+49% YoY, +15% QoQ).
• Per‑Share Metrics – Basic & diluted EPS $0.35 (up 119% YoY); Adjusted EPS $0.38 (up 36% YoY).
• Asset Growth – Total assets C$6,146,010 k (+24% YoY, +6% QoQ); Credit assets net of allowance C$5,333,279 k (+23% YoY).
• Capital Ratios – CET1 12.82% (down 0.1 pp YoY), Total capital ratio 15.47% (down 0.25 pp YoY), Leverage ratio 8.17% (down 0.3 pp YoY).
• Digital Banking Segment – Combined Canada/US credit assets C$5.33 B (+23% YoY); segment revenue C$34.4 M (+33% YoY).
• U.S. SRP Performance – US SRP credit assets reached US$472 M; on track for FY2026 funding target of US$1 B.
• New Initiatives – Advancement of Real Bank Tokenized Deposits™ (RBTDs); launch of stablecoin custody service with first client Stablecorp Digital Currencies (QCAD).
• Reorganization Update – Ongoing corporate realignment; appointment of Nicolas Ospina as Global CFO and John Asma to EVP, Canadian Digital Banking.
• Share Repurchase – 573,251 common shares cancelled under NCIB program (≈8.99% of float).
• Dividends – Cash dividend paid C$799 k for the quarter.

Notable Quotes

“The acceleration of our Structured Receivable Program in the United States… contributed to 31% year‑over‑year growth in revenue.” – David Taylor, Founder & President, VersaBank
“Our US SRP fundings are on track to reach at least $1 billion in fiscal 2026.” – David Taylor

All figures are unaudited and presented in Canadian dollars unless otherwise noted.