VersaBank (VB) investor relations material

Business model and technology

• Operates as a fully digital, branchless North American bank using a partner-based B2B model, leveraging proprietary cloud-based technology for high efficiency and scalability.

• Focuses on underserved markets with innovative deposit and financing solutions, maintaining a highly risk-mitigated approach with very sticky deposits and no material loan losses.

• All deposits and credit assets are managed digitally, with a high asset-to-employee ratio and significant operating leverage from the scalable technology platform.

Financial performance and efficiency

• Achieved record credit assets of $5.68B and total assets of $6.44B in Q2 2026, with a net interest margin on credit assets of 2.71%.

• Total revenue reached $38.3M in Q2 2026, up 27% YoY, and adjusted net income rose 45% YoY to $12.4M.

• Efficiency ratio remains strong, with a focus on further improvement as US operations scale.

Risk management and deposit structure

• Employs a technology-driven, multi-step risk analysis and approval process, resulting in top-tier asset quality and a 30+ year history of no material credit asset losses.

• Maintains a very stable, low-cost deposit base through over 220 partners, with 83% from deposit brokers and 17% from licensed insolvency trustees.

• Brokered deposits are 100% term deposits and 98% insured, minimizing funding risk.