VersaBank (VB) investor relations material

Business model and technology

• Operates a fully digital, branchless, partner-based (B2B) model leveraging proprietary cloud-based banking technology, with all deposits and credit assets managed digitally across North America.

• Achieves high efficiency and scalability through a very high asset-to-employee ratio and significant operating leverage from its technology platform.

• Focuses on underserved markets with innovative deposit and financing solutions, and maintains a highly risk-mitigated model with very sticky deposits and no material loan losses.

• Maintains a track record of strong earnings growth, with future growth prospects driven by US market entry and new product offerings.

Financial performance and efficiency

• Reported total assets of $6.15B and credit assets of $5.33B in Q1 2026, with a net interest margin on credit assets of 2.64%.

• Achieved record revenue of $36.5M in Q1 2026, up 31% year-over-year, and adjusted/core net income of $12.2M, up 49% year-over-year.

• Digital banking efficiency ratio remains strong, with significant operating leverage and a focus on cost control.

• Non-interest expenses are tightly managed, supporting robust net income growth.

Deposit and lending strategy

• Sources unlimited, low-cost, and stable deposits primarily through over 120 deposit broker partners and more than 100 licensed insolvency trustee firms.

• Deposit base is highly sticky, with all brokered deposits being term deposits and 98% insured.

• Lending is focused on very low-risk channels, especially the Structured Receivable Program (SRP), which accounts for 83% of credit assets.

• Maintains a 30-year history of virtually no credit asset losses, with a unique cash holdback model further mitigating risk.