Slide 1: Q3 2021 Conference Call Presentation
Q3 2021 Conference Call Presentation September 1, 2021 Follow us
Slide 2: Post Conference Call Q&A
2 Post Conference Call Q&A For those wishing to ask questions during the Q&A, please access today’s call through the telephone dial-in: Toll-free: 1 (888) 664-6392 (Canada/US) Local: (416) 764-8659 Passcode: 387926093#
Slide 3: Advisory
3 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 an
Slide 4: David Taylor, President & CEO
4 David Taylor President & CEO
Slide 5: Q3 2021 Highlights
5 Continued Momentum: Core Digital Banking operations delivered strong year-over-year growth Achieved another loan portfolio Q3 2021 record: ~$2B Highlights Q3 performance dampened by US$75 M Subordinated Note offering to fund future growth Progress on VCAD DRT Cyber expanding portfolio
Slide 6: Q3 2021: Continued Strong Financial Performance
6 Q3 2021: Continued Strong Financial Performance Income Statement Strong Year-Over-Year 3 Months Ended July 31 Growth in Key Metrics Q3/21 (adj. for Sub Note 2021 2020 Change issuance1) vs Q3/20 vs Q2/21 vs Q2/21 Revenue $15.7M $12.4M +27% Cost of Funding 1.41% 1.59% -18 bps Total revenue 27% 2% 6%
Slide 7: Q3 2021: Continued Strong Financial Performance
7 Q3 2021: Continued Strong Financial Performance Balance Sheet Cash balance at end of Q3/21 At July 31 increased to $297 M from $272 M 2021 2020 Change at the end of Q2/21 Total Assets $2.29 B $1.93 B +18% Q3/21 cash balance includes $73 M in net Book Value per $11.29 $10.52 +7% Common Share procee
Slide 8: Q3 2021: Continued Low PCLs as a % of Average Loans
8 Continued Risk Mitigation Q3 2021: Continued Low PCLs as a % of Average Loans 1.42% VersaBank average for PCL as a % of Average last 12 quarters: 0.00% 0.60% Loans 0.32% 0.29% 0.35% 0.30% 0.32% 0.35% 0.40% 0.20% 0.01% -0.02% 0.02% 0.08% 0.12%0.06% -0.01% 0.02% -0.02% 0.12% 0.01% -0.01% -0.07% -0.1
Slide 9: Continued to Lower Cost of Funding
9 Continued to Lower Cost of Funding • Continued strategic shift of deposit mix to Personal Deposits lower cost deposits • Reducing higher cost personal deposits • Increasing lower cost commercial $1,220M deposits $1,098M $1,203M $1,150M $1,052M $1,041M $960M $1,059M $1,141M $1,120M 2014 2015 2016 2
Slide 10: VCAD: North America's First Bank-Issued, Deposit-Based Digital Currency
VCAD: North America’s FIRST Bank-Issued, 10 Deposit-Based Digital Currency • Represented 1:1 by Canadian-dollar deposits • Highest level of stability and security amongst all digital currencies • Commercial launch in partnership with Stablecorp • Targeting availability in the coming months Based on
Slide 11: Record Loan Portfolio: $1.95 B
11 Record Loan Portfolio: $1.95 B Q2 2021 Q3 2021 Total: $1.82 B Total: $1.95 B Point-of-Sale Loans/ Point-of-Sale Loans/ Leases Leases Public Sector Public Sector / Other / Other $1.1B Financing $1.1B Financing 58% 59% $35M $33M 2% $981M 2% Commercial Commercial 51% Lending – $687M $712M Lending –
Slide 12: Building a comprehensive suite of innovative cyber security solutions
12 Building a comprehensive suite of innovative cyber security solutions that address high-demand, underserved segments of this rapidly growing market
Slide 13: DRT Cyber Growth Strategy: Multiple, Significant Growth Opportunities
DRT Cyber Growth Strategy: 13 Multiple, Significant Growth Opportunities 1 2 3 Expand VersaVault® Continue to grow Develop and launch new globally DBG business complementary products/services 4 5 Acquisitions of Cross-sell and up- complementary sell products/services
Slide 14: Momentum for the Future with Two High-Growth Opportunities
Momentum for the Future with Two 14 High-Growth Opportunities Digital banking operations setting new records • Continue to deploy cash to meet demand in the Commercial Real Estate portfolio and the Point-of-Sale Finance portfolio • Launch instant mortgage for the $200 billion Canadian home financing
Slide 15: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659 Participant Passcode: 38726093#
Slide 16: Our Time Has Arrived!
16 Our Time Has Arrived! Follow us