VersaBank (VB) Q1 2026 earnings summary

Executive summary

• Achieved record credit assets and revenue in Q1 2026, with credit assets up 23% year-over-year and 5% sequentially, and revenue up 31% year-over-year.

• Adjusted net income rose 49% year-over-year and 15% sequentially, reflecting improved operating leverage and successful U.S. SRP expansion.

• U.S. Structured Receivable Program (SRP) drove most growth, with U.S. operations now surpassing Canadian efficiency.

• New Global CFO appointed; previous CFO now leads Canadian banking operations.

• Announced first stablecoin custody customer and advanced commercialization of Real Bank Tokenized Deposits™.

Financial highlights

• Total assets reached $6.15 billion, up 24% year-over-year and 6% sequentially.

• Book value per share hit a record $16.93, up 6% year-over-year.

• CET1 ratio at 12.82%, leverage ratio at 8.17%, both above internal targets.

• Consolidated revenue was $36.5 million, up 31% year-over-year and 4% sequentially.

• Adjusted EPS was $0.38, up 36% year-over-year; net income was $11.1 million, up 36% year-over-year.

Outlook and guidance

• On track to add at least $1 billion in U.S. SRP fundings in fiscal 2026, more than tripling 2025 levels.

• Expect net interest margin and non-interest expense to remain relatively flat with potential for cost savings.

• Anticipate completion of cybersecurity business divestiture by end of summer, freeing up regulatory capital.

• Reorganization to U.S. bank framework progressing, with additional costs expected in Q2 but long-term efficiency gains anticipated.

• Expects continued strong growth in core Digital Banking and further commercialization of tokenized deposit and stablecoin custody services.