Slide 1: Q1 2025 Conference Call
Q1 2025 Conference Call March 5, 2025 NASDAQ: VBNK | TSX: VBNK
Slide 2: Dial-In to Ask Questions
Dial-In to Ask Questions For those wishing to ask questions during the Q&A, please access today’s call through the telephone dial-in: Toll-free: 1-888-699-1199 (Canada/US) Local: 416-945-7677
Slide 3: 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 4: David Taylor, President & Chief Executive Officer
David Taylor President & Chief Executive Officer
Slide 5: Q1 2025 Highlights
5 Q1 2025 Highlights • Signed our first RPP partner in the United States following US bank acquisition • Completed successful $86 million capital raise to support US RPP opportunity • Realigned structure of DRT Cyber to position Digital Deposit Receipts for a renewed opportunity • Achieved another r
Slide 6: First US Partner Post-Acquisition
6 First US Partner Post-Acquisition • Watercress: Proven track record of originating high-quality consumer loans through nationwide contractor network • Provided first and second funding tranches • Program is functioning as it should • Expect funding to steadily expand throughout fiscal 2025 6
Slide 7: Q1 2025 Key Metrics & Highlights
Q1 2025 Key Metrics & Highlights 7 Total Assets $4.97B Canadian Digital Banking Efficiency Credit Assets $4.35B Ratio NIM on Credit Assets 2.36% 47% Total Revenue $27.8M Net Income $8.1M EPS $0.28 Realizing significant operating leverage inherent in Digital Banking model 7
Slide 8: John Asma, Chief Financial Officer
John Asma Chief Financial Officer
Slide 9: Q1 2025: Continued Strong Financial Performance
Q1 2025: Continued Strong Financial Performance Balance Sheet • Total credit asset portfolio At January 31 expanded to another record 2025 2024 YoY Change balance Total Assets $4.97 B $4.31 B 15% Credit Asset Portfolio $4.35 B $3.98 B 9% • Book value per share increased Cash and Securities $0.55 B $
Slide 10: Q1 2025: Consolidated Income Statement
Q1 2025: Continued Strong Financial Performance Consolidated Consolidated Income Statement • YoY revenue decrease due Quarter Ended January 31 primarily to lower overall net interest margin YoY Sequential (000’s) 2025 2024 Change Change • EPS was impacted by a 12% higher Revenue 27,827 28,851 -4% 2%
Slide 11: Q1 2025: Segmented Income Statement
Q1 2025: Segmented Income Statement Segmented Income Statement Quarter Ended Quarter Ended January 31 January 31 YoY Sequential YoY Sequential (000’s) 2025 2024 (000’s) 2025 2024 Change Change Change Change Revenue 27,827 28,851 -4% 2% Net Income 8,143 12,699 -36% 48% Digital Banking Digital Banking
Slide 12: Digital Banking Operations - Record Credit Assets $4.35B
Q1 2025: Continued Strong Financial Performance Digital Banking Operations - Record Credit Asset: $4.35 B Q4 2024 Q1 2025 Total: $4.24 B Total: $4.35 B Receivable Purchase Receivable Purchase Program Program $3.3B $3.4B 78% 79% $910M $928M 22% 21% Multi-Family Multi-Family Residential Residential Lo
Slide 13: Digital Banking Operations: Income Statement
Q1 2025: Continued Strong Financial Performance Digital Banking Operations Digital Banking Operations: Income Statement • NIE reflects build out of U.S. RPP Quarter Ended January 31 business ahead of revenue Sequential 2025 2024 YoY Change Change • NIM on credits assets decreased primarily due to la
Slide 14: Top Tier Asset Quality & Prudent Approach to Risk Mitigation
Top Tier Asset Quality & Prudent Approach to Risk Mitigation Average Provision for Credit Losses as a % of Average Credit Assets 0.12% 0.02% PCL as a % of Average (Trailing 12-Quarters) 0.09% Credit Assets 0.08% 0.06% 0.02% 0.02% 0.02% (0.01%) (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018
Slide 15: David Taylor, President & Chief Executive Officer
David Taylor President & Chief Executive Officer
Slide 16: Strong Foundation for Continued Growth in Canadian Banking Operations
Strong Foundation for Continued Growth in Canadian Banking Operations • Continued steady growth led by the Receivable Purchase Program (RPP) • Contribution of CHMC-insured loan business • Continuation of several favourable trends that support Net Interest Margin • Flattening of yield curve – benefic
Slide 17: 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 18: 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 19: Renewed Opportunity for Proprietary Digital Asset Technology
Renewed Opportunity for Proprietary Digital Asset Technology 19
Slide 20: Q&A Session
Q&A Session Toll-free: 1-888-699-1199 (Canada/US) Local: 416-945-7677 20
Slide 21: Banking on the Future!
YW VersaBank Banking on the F xt