All amounts are unaudited and in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Our second quarter 2026 ("Q2 2026") unaudited Interim Consolidated Financial Statements for the period ended April 30, 2026 and Management's Discussion and Analysis ("MD&A"), are available online at www.versabank.com/investor-relations, SEDAR at www.sedarplus.ca and EDGAR at www.sec.gov/edgar. Supplementary Financial Information will also be available on our website at www.versabank.com/investor-relations.
LONDON, ON, June 3, 2026 /PRNewswire/ - VersaBank (or the "Bank") (TSX: VBNK $(VBNK)$, a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today reported its results for the second quarter ended April 30, 2026. All figures are in Canadian dollars unless otherwise stated.
NOTE REGARDING SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS
VersaBank's financial results for the second quarter of fiscal 2026 reflect non-core non-interest expenses in the amount of $6.7 million. The non-core non-interest expenses included $4.5 million related to the project costs associated with the Reorganization (see Reorganization note below). Subsequent to the end of the second quarter, the Bank publicly filed a Form S-4 registration statement (the "Registration Statement") with the U.S. Securities and Exchange Commission (the "SEC") in connection with the Reorganization. The Reorganization is intended to enhance shareholder value, mitigate risk and reduce corporate costs over the long term. The Bank expects that the anticipated benefits of the Reorganization will exceed the associated investment however, these expected benefits are subject to various assumptions and uncertainties. As of the end of the second quarter of fiscal 2026, the Bank believes it has incurred the majority of the total costs associated with the Reorganization and expects the Reorganization to be completed in fiscal 2026. Non-core non-interest expenses also included a $2.2 million write-down of an intangible asset related to the customer deposit base of the Bank's sole physical branch, which received regulatory approval for sale in the second quarter, requiring the Bank to record the write-down in the same quarter. The branch was sold on May 1, 2026.
The Bank's second quarter fiscal 2026 results also included $0.6 million in non-interest expenses specifically related to costs related to the commercialization of its Real Bank Tokenized Deposits$(TM)$ (RBTD(TM)s), which were not classified as non-core.
CONSOLIDATED FINANCIAL SUMMARY
(unaudited) As at or for the three months ended As at or for the six months ended
---------------- ----------------------------------------------------------- ------------------------------------
April 30 January 31 April 30 April 30 April 30
(thousands of
Canadian dollars,
except per share
amounts) 2026 2026 Change 2025 Change 2026 2025 Change
------------------ ------------- ------------- ------ ------------- ------ ------------- ------------- ------
Financial results
Total revenue $ 38,293 $ 36,514 5 % $ 30,139 27 % $ 74,807 $ 57,966 29 %
Cost of funds* 3.09 % 3.14 % (2 %) 3.52 % (12 %) 3.12 % 3.69 % (15 %)
Net interest
margin* 2.33 % 2.25 % 4 % 2.29 % 2 % 2.29 % 2.19 % 5 %
Net interest
margin on credit
assets* 2.71 % 2.64 % 3 % 2.59 % 5 % 2.65 % 2.44 % 9 %
Return on average
common equity* 5.64 % 8.16 % (31 %) 6.67 % (15 %) 6.91 % 7.25 % (5 %)
Adjusted (Core)
return on
average common
equity* 9.23 % 8.95 % 3 % 6.67 % 38 % 9.07 % 7.25 % 25 %
Net income 7,525 11,069 (32 %) 8,529 (12 %) 18,594 16,672 12 %
Adjusted (Core)
net income* 12,378 12,162 2 % 8,529 45 % 24,540 16,672 47 %
Income per common
share basic and
diluted 0.23 0.35 (34 %) 0.26 (12 %) 0.58 0.54 7 %
Adjusted (Core)
income per
common share
basic and
diluted* 0.39 0.38 3 % 0.26 50 % 0.77 0.54 43 %
Balance sheet and
capital ratios**
Total assets $ 6,440,700 $ 6,146,010 5 % $ 5,047,133 28 % $ 6,440,700 $ 5,047,133 28 %
Book value per
common share* 17.15 16.93 1 % 16.25 6 % 17.15 16.25 6 %
Common Equity
Tier 1 (CET1)
capital ratio 12.32 % 12.82 % (4 %) 14.28 % (14 %) 12.32 % 14.28 % (14 %)
Total capital
ratio 14.74 % 15.47 % (5 %) 17.34 % (15 %) 14.74 % 17.34 % (15 %)
Leverage ratio 7.94 % 8.17 % (3 %) 9.61 % (17 %) 7.94 % 9.61 % (17 %)
* See definitions under 'Non-GAAP and Other Financial Measures' in the
Q2 2026 Management's Discussion and Analysis. ** Capital management
and leverage measures are in accordance with OSFI's Capital Adequacy
Requirements and Basel III Accord.
SEGMENTED FINANCIAL SUMMARY -- QUARTERLY
(thousands of
Canadian dollars)
------------------ ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
for the three
months ended April 30, 2026
------------------ --------------------------------------------------------------------------------------------------------------------------------------
Digital Banking Digital Banking Digital Meteor DRTC Eliminations/ Consolidated
Canada USA Adjustments
--------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Net interest
income $ 27,768 $ 7,911 $ - $ - $ - $ 35,679
Non-interest
income 373 (15) 749 1,850 (343) 2,614
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total revenue 28,141 7,896 749 1,850 (343) 38,293
Provision for
(recovery of)
credit losses 495 (67) - - - 428
------------------ ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
27,646 7,963 749 1,850 (343) 37,865
Non-interest
expenses:
Salaries and
benefits 7,343 2,070 172 1,617 - 11,202
General and
administrative 13,824 515 42 362 (343) 14,400
Premises and
equipment 947 353 54 530 - 1,884
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
22,114 2,938 268 2,509 (343) 27,486
Income (loss)
before income
taxes 5,532 5,025 481 (659) - 10,379
Income tax
provision 1,438 1,437 130 (151) - 2,854
Net income (loss) $ 4,094 $ 3,588 $ 351 $ (508) $ - $ 7,525
----------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total assets $ 5,213,682 $ 1,221,182 $ 10,688 $ 15,773 $ (20,625) $ 6,440,700
---------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
Total
liabilities $ 4,926,001 $ 961,343 $ 370 $ 28,344 $ (27,596) $ 5,888,462
---------------- ------------------- -------------------- ---------------------- ---------------------- ---------------------- -------------------
for the three
months ended January 31, 2026
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