Slide 1: Q2 2022 Conference Call Presentation
Q2 2022 Conference Call Presentation June 1, 2022 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: 31237349#
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
4 David Taylor President & Chief Executive Officer
Slide 5: Q2 2022 Key Metrics & Highlights
5 Q2 2022 Key Metrics & Highlights Consolidated YoY Sequential Digital Banking: Strong loan portfolio growth to Total Revenue 17% 2% another record: >$2.45B Net Income 14% 11% Net income dampened by investments in EPS 32% 11% strategic growth initiatives: Net Interest Margin 19 bps 0 bps • Preparati
Slide 6: U.S. Point-of-Sale Financing: A Largely Untapped Opportunity
6 U.S. Point-of-Sale Financing: A Largely Untapped Opportunity Supporting an Emerging, Launched March 2022: A New Financing Solution for U.S. High-Growth Industry Point-of-Sale Providers With a massive millennial consumer base and an impressive suite of digital offerings, Estimated size of the total
Slide 7: Revolutionary Digital Deposit Receipts (DDRs)
7 Revolutionary Digital Deposit Receipts (DDRs) Digital Deposit Receipt Representing Actual Fiat-Currency-Based Deposits with a Federally Licensed, Investment-Grade Rated Bank • Represented 1:1 by actual fiat currency on deposit with VersaBank • High level of stability and security • Addresses key c
Slide 8: Shawn Clarke
8 Shawn Clarke Chief Financial Officer
Slide 9: Q2 2022: Continued Strong Financial Performance
9 Q2 2022: Continued Strong Financial Performance Balance Sheet YoY increases in regulatory capital levels and ratios driven primarily by: At April 30 2022 2021 Change • Issuance of the US$75 M principal in Total Assets $2.69 B $2.14 B +26% Subordinated Notes (C$92.1 million) in late April, partiall
Slide 10: Q2 2022: Continued Strong Financial Performance - Consolidated
Q2 2022: Continued Strong Financial Performance 10 Consolidated Consolidated: Income Statement vs Q1/22 3 Months Ended 6 Months April 30 Ended April 30 Revenue 2% 2022 2021 Change 2022 2021 Change Net Income -11% Revenue 18,635 15,970 +17% 36,901 31,392 18% Earnings Per Share -11% Net Income 4,943 5
Slide 11: Digital Banking Operations – Record Loan Portfolio: $2.45 B
Q2 2022: Continued Strong Financial Performance 11 Digital Banking Operations – Record Loan Portfolio: $2.45 B Q1 2022 Q2 2022 Total: $2.2 B Total: $2.45 B Point-of-Sale Loans/ Point-of-Sale Loans/ Leases Leases Public Public Sector / Sector / $1.4B Other $1.6B Other 65% Financing 66% Financing $31M
Slide 12: Digital Banking Operations Income Statement
Q2 2022: Continued Strong Financial Performance 12 Digital Banking Operations Digital Banking Operations: Income Statement 3 Months Ended 6 Months vs Q1/22 April 30 Ended April 30 Cost of funds 9 bps 2022 2021 Change 2022 2021 Change Net interest income 2% Cost of Funds 1.38% 1.28% +10 bps 1.30% 1.3
Slide 13: Cost of Funds
13 Cost of Funds Personal Deposits Q2 2022 cost of funds: 1.38% • Increased 10 bps (8%) vs Q2 2021 • Increased 9 bps (7%) vs Q1 2022 $1,108M $1,203M $1,150M $1,052M $1,041M $1,059M $1,213M $1,516M $960M 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2022 Commercial Deposits $108M $111M $96M $97M $96M $8
Slide 14: PCL as a % of Average Loans
14 Top Tier Asset Quality & Prudent Approach to Risk Mitigation Average Provision for Credit Losses as a % of Average Loans PCL as a % of Average Loans 0.12% (0.01%) (Trailing 12-Quarters) 0.08% 0.06% 0.01% 0.02% (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018 2019 2020 2021 Q2/22 VB PCLs
Slide 15: DRTC Income Statement
Q2 2022: Continued Strong Financial Performance 15 DRTC DRTC: Income Statement 3 Months Ended 6 Months vs Q1/22 April 30 Ended April 30 Revenue 3% 2022 2021 Change 2022 2021 Change Gross Profit 1% Revenue 2,421 1,720 41% 4,779 3,462 38% Net income (loss) n/a Gross Profit 1,434 915 57% 2,855 2,008 42
Slide 16: David Taylor
16 David Taylor President & Chief Executive Officer
Slide 17: Digital Banking Growth Strategy: Momentum for the Future
17 Digital Banking Growth Strategy: Momentum for the Future 1 2 3 Further Reduce Grow Loan Portfolio Pursue Accretive Acquisitions Cost of Funding via New Near-Term Opportunities to Leverage Scalability of to Expand Net Interest Margin and Existing Offerings Platform & Enter New Markets Expand insol
Slide 18: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659 Participant Passcode: 31237349#
Slide 19: Our Time Has Arrived!
19 Our Time Has Arrived! Follow us