Versabank · TSX:VBNK
Versabank — Investor Presentation (March 2025)
17 slides from Versabank's investor presentation, March 2025
Slide 1: Authorized for Landing: U.S. Entry Provides A Transformational Opportunity
Authorized for Landing: U.S. Entry Provides A Transformational Opportunity Investor Presentation March 2025 NASDAQ: VBNK | TSX: VBNK
Slide 2: Advisory
Advisory The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, annual reports and other disclosure documents and
Slide 3: A Better Bank Model
Excessive lending risk Loan losses / collections Deposit / liquidity risk A Better Bank Model Economic exposure Founded on Technology Interest rate exposure Physical infrastructure Inefficiency 3
Slide 4: A North American Leader
Fully Digital Highly Efficient: Branchless, Innovative, Value-Added North American Bank Partner (B2B) model Deposit & Lending Solutions for Underserved Markets • Operating leverage of a technology company with the intrinsic value of a bank A North American Leader • Highly risk-mitigated model: Very
Slide 5: Cloud-Based, Branchless, Partner (B2B) Model
Cloud-Based, Branchless, Partner (B2B) Model Using VersaBank’s Proprietary Banking Technology Proprietary, state-of-the-art software based out of two technology centres Saskatoon, SK • All deposits/credit London, ON assets managed digitally • No direct interaction Deposit Partners with end users • V
Slide 6: Proprietary Technology Enables Ultra Low-Risk Digital Model
Proprietary Technology Enables 6 Ultra Low-Risk Digital Model Organization-Wide Focus on Risk Mitigation • Technology-based approach Very Sticky Deposits 30+ Years with to risk analysis/monitoring No Material Credit Asset Losses • Rigorous, multi-step, multi- • Brokered Deposits: executive approval
Slide 7: Deposits: Unlimited Low-Cost, Very Stable Sources
Deposits: 7 Unlimited Low-Cost, Very Stable Sources • Objective to minimize cost of deposit funding >220 Partners Provide Access • Very “sticky” deposit base to Millions of Depositors Deposit Composition: Deposit Brokers (>120 Partners) Q1 2025 • Extensive network of providing exposure to vast major
Slide 8: Credit Assets: Very Low Risk Lending Channels
Credit Assets: 8 Very Low Risk Lending Channels • Low-cost deposits enable low-risk lending 30 Partners Provide Access to • 30-year history of virtually no credit asset losses Hundreds of Millions of Borrowers Credit Asset Composition: Receivable Purchase Program Q1 2025 • Reliable, attractive alter
Slide 9: Point-of-Sale Receivable Purchase Program (RPP)
Point-of-Sale Receivable Purchase Program (RPP) Innovative, Unique and Efficient Digital Funding Solutions for Point-of-Sale Finance Companies • Readily accessible, reliable, economic funding, and daily loan sales (real-time sales in development) • VersaBank typically provides 100% of loan value (vs
Slide 10: A Significantly Risk Mitigated Model
A Significantly Risk Mitigated Model Proven Highly Extensive Partner Due Continuous Attractive & Diligence & Monitoring Loan monitoring Successful in Canada Restricted to the highest quality lenders - • Real-time, technology-based • >14 years in market typical 10-year track record monitoring • • Ann
Slide 11: Success of Canadian POS Business Has Driven Profitability
Success of Canadian POS Business Has Driven Profitability $ CAD (millions) $14.0 55% $60 51% 51% 52% $12.0 49% 11.8% 48% $50 $10.0 8.5% 8.9% 8.5% 6.00 7.9% 43% 10.2% $40 $180 $8.0 6.6% $4.84B $30 $160 $6.0 5.00 $4.0 $4.20 B $20 $140 4.00 $120 $10 $2.0 $3.27 B $100 $0.0 $0 3.00 $2.42 B $80 2.00 $1.78
Slide 12: VersaBank USA: Transformational Opportunity
VersaBank USA: Transformational Opportunity First post-acquisition US Regulatory Appoint VB USA RPP Partner and Executives High-Growth, Approval funding in US May 2024 Jul 2024 Q1 2025 Underserved Multi-Trillion $ Market Canadian Closed US Bank Acquisition of National OCC Regulatory Acquisition Addi
Slide 13: Capitalizing on the Significant Operating Leverage in Our Core Digital Banking Operations
Capitalizing on the Significant Operating Leverage in Our Core Digital Banking Operations $ CAD (millions) $14 52% 55% $60 Next Milestones: 12.0% 11.8% $12 $50 $10 48% Total Assets 8.0% 43% $40 7.0% >$5B >$6B >$10B $6.00 $8 $180 $30 $6 $5.00 $4.84 B $20 $160 $4 $4.20 B $140 $2 $10 Efficiency Ratio $
Slide 14: Market Ready Solution
Market Ready Solution Digital Meteor, Inc. Digital Deposit Receipts (DDRs) • Highly encrypted digital assets that can represent fiat Digital Deposit currency on deposit with the Bank – seamless conversion Receipt (DDR) IP, to/from other digital currencies (incl. Bitcoin) technology and other • SOC 2
Slide 15: DRT Cyber: "Free Option" on Digital Banking Valuation
DRT Cyber: “Free Option” on Digital Banking Valuation One of North America’s Premiere IT Security ETECTION Assurance Services Firms D • Comprehensive Suite of Services: – External network, web and mobile app penetration testing PR SESSMENT – Physical social engineering engagements OTECTION – Supervi
Slide 16: Why VersaBank? Why Now?
At inflection point for operating leverage, earnings growth and ROCE generation Ramp up of recently launched U.S. Receivables Purchase Program (proven out in Canada) to an underserved Why VersaBank? multi-trillion U.S. market Why Now? Highly risk-mitigated model based on structuring of both deposits
Slide 17: Banking on the Future!
YW VersaBank Banking on the Fu r