Versabank · TSX:VBNK
Versabank — Investor Presentation (June 2025)
18 slides from Versabank's investor presentation, June 2025
Slide 1: U.S. Entry Provides A Transformational Opportunity
U.S. Entry Provides A Transformational Opportunity Investor Presentation June 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 Minneapolis, MN Des Moines, IA • All deposits/credit (Azure Cloud Facility) London, ON assets managed digitally • No
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) Q2 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 Q2 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 Annual
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% 11.5% $50 $10.0 8.5% 8.9% 8.5% 6.00 7.9% 43% 44% $40 $180 $8.0 6.6% $4.84B $30 $160 $6.0 5.00 $4.0 $4.20B $20 $140 4.00 $120 $10 $2.0 $3.27B $100 $0.0 $0 3.00 $2.42B $80 2.00 $1.78B $
Slide 12: Q2 2025 Key Metrics & Highlights
Q2 2025 Key Metrics & Highlights 12 Total Assets $5.05 B • Net income and EPS impacted by: Atypically-large non-cash Credit Assets $4.52 B • unrealized foreign exchange translation loss due to NIM on Credit Assets 2.59% depreciation of US dollar Total Revenue $30.1 M • Preliminary costs associated w
Slide 13: VersaBank USA: Transformational Opportunity
VersaBank USA: Transformational Opportunity First Appointed VB USA Post-Acquisition US US Regulatory RPP Partner & Additional Approval Executives US RPP Partners in Funding High-Growth, Jul 2024 Pipeline May 2024 Q1 2025 Underserved Multi-Trillion $ Market Second Canadian Closed US Bank Acquisition
Slide 14: Capitalizing on the Significant Operating Leverage
Capitalizing on the Significant Operating Leverage in Our Core Digital Banking Operations $ CAD (millions) $14 $12 52% 55% 12.0% 11.5% $60 Next Milestones: $50 $10 8.0% $40 Total Assets $8 7.0% 43% 44% >C$6B >C$7.5B >C$10B $6.00 $180 $6 C$4.84 B $30 $160 US$3.48B$20 $5.00 $4 C$4.20 B US$3.03B $140 $
Slide 15: Digital Deposit Receipts: Transcending Stablecoins
Digital Deposit Receipts (DDRs): Transcending Stablecoins Digital Meteor, Inc. A Market Ready Solution • Highly encrypted digital assets that can represent fiat currency on deposit with the Bank – seamless conversion Digital Deposit to/from other digital currencies (incl. Bitcoin) Receipt (DDR) IP,
Slide 16: DRT Cyber: "Free Option" on Digital Banking Valuation
DRT Cyber: “Free Option” on Digital Banking Valuation One of North America’s Premiere IT Security Assurance Services Firms • Comprehensive Suite of Services: – External network, web and mobile app penetration testing – Physical social engineering engagements – Supervisory control & data acquisition
Slide 17: At inflection point for operating leverage, earnings growth and ROCE generation
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 multi-trillion U.S. market Why VersaBank? Highly risk-mitigated model based on structuring of both Why Now? deposits
Slide 18: Banking on the Future!
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