Slide 1: Q4 2024 Conference Call
Q4 2024 Conference Call December 9, 2024 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: One-Time Impacts on Q4 and Fiscal 2024 Results
One-Time Impacts on Q4 and Fiscal 2024 Results 5 • One-time NIEs primarily associated with the U.S. acquisition that totaled $3.3 million and $3.7 million for the fourth quarter and full fiscal year 2024, respectively • A one-time expense of a deferred tax asset of $1.6 million due to a change in ta
Slide 6: Q4 and Full Year 2024 Key Metrics & Highlights
6 Q4 and Full Year 2024 Key Metrics & Highlights: Excluding Impact of one-time expenses1 Q4 2024 Total Assets $4.84B Total Assets $4.84B Loan Portfolio $4.24B Loan Portfolio $4.24B Total Revenue $27.3M Total Revenue $111.6M Net Income $10.0M Net Income $45.0M EPS $0.38 EPS $1.69 1. Several factors p
Slide 7: John Asma, Chief Financial Officer
John Asma Chief Financial Officer
Slide 8: Q4 2024: Continued Strong Financial Performance
Q4 2024: Continued Strong Financial Performance Balance Sheet • Total loan portfolio expanded to another record balance At October 31 2024 2023 YoY Change • Book Value per Share Total Assets $4.84 B $4.20 B 15% increased as a function of Loan Portfolio $4.24 B $3.85 B 10% higher retained earnings (f
Slide 9: Q4 2024: Continued Strong Financial Performance - Consolidated
Q4 2024: Continued Strong Financial Performance Consolidated Consolidated Income Statement • YoY revenue decrease due Quarter Quarter Ended October 31 Ended July 31 primarily to lower non-interest income from the Bank’s 2024 (000’s) excluding 2023 2024 cybersecurity Operations, DRT one-times1 Cyber
Slide 10: Q4 2024: Operating Strength Across Segments
Q4 2024: Operating Strength Across Segments Segmented Income Statement Quarter Quarter Ended October 31 Ended July 31 2024 (000’s) excluding 2023 2024 one-times1 Revenue 27,981 29,173 26,996 Digital Banking Canada 24,346 29,173 26,996 Digital Banking USA 1,393 0 0 Net Income 10,020 12,479 9,705 Digi
Slide 11: Digital Banking Operations – Record Loan Portfolio: $4.24 B
Q4 2024: Continued Strong Financial Performance Digital Banking Operations – Record Loan Portfolio: $4.24 B Q3 2024 Q4 2024 Total: $4.05 B Total: $4.24 B Point-of-Sale Point-of-Sale Loans/ Leases Loans/ Leases $3.2B Public Sector/ $3.3B Public Sector/ 80% Other Financing 78% Other Financing $57M $12
Slide 12: Digital Banking Operations Income Statement
Q4 2024: Continued Strong Financial Performance Digital Banking Operations Digital Banking Operations: Income Statement • NIM decreases due primarily due to Quarter an atypically inverted yield curve Quarter Ended October 31 Ended July 31 adversely affecting POS asset 2024 margins, which was exacerb
Slide 13: PCL as a % of Average Loans
Top Tier Asset Quality & Prudent Approach to Risk Mitigation Average Provision for Credit Losses as a % of Average Loans 0.00% PCL as a % of Average Loans 0.12% (Trailing 12-Quarters) 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 2019 2020 2021 2022 2
Slide 14: David Taylor, President & Chief Executive Officer
David Taylor President & Chief Executive Officer
Slide 15: 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 16: VersaBank USA, N.A.
VERSABANK USA, N.A. RPP FOR U.S. POS LENDERS U.S. POS MARKET OVERVIEW • Additional opportunity to syndicate originations through • In 2022, POS financing accounted for about 10% of TRANSFORMATIONAL OPPORTUNITY community bank networks generating up to 1.00% in the total unsecured lending balances in
Slide 17: DRT Cyber: Favourable Incoming U.S. Administration
DRT Cyber: Favourable Incoming U.S. Administration
Slide 18: Q&A Session
Q&A Session Toll-free: 1-888-699-1199 (Canada/US) Local: 416-945-7677 18
Slide 19: Banking on the Future!
YW VersaBank Banking on the F xt