- VersaBank (VBNK, Financial) achieves a record total asset value of $5.0 billion, marking a 15% year-over-year increase.
- Quarterly revenue hits $30.1 million, up 6% YoY, driven by growth in Digital Banking and US Receivable Purchase Program.
- Net income declines 28% YoY to $8.5 million, with earnings per share dropping from $0.45 to $0.26.
VersaBank (VBNK) reported its Q2 2025 financial results, showcasing strong growth in assets and revenue but a decrease in net income. The bank's total assets rose to a record $5.0 billion, reflecting a 15% increase compared to the same period last year and a 2% rise sequentially. This growth was primarily fueled by the expansion of its Digital Banking operations.
Total revenue in the second quarter reached an all-time high of $30.1 million, marking a 6% year-over-year and an 8% quarter-over-quarter increase. This revenue growth was largely driven by the bank's Receivable Purchase Program (RPP) in the US, aiming for a target of US$290 million by the end of the fiscal year.
However, net income for the quarter fell to $8.5 million, down 28% from $11.8 million in Q2 2024. This decline was mainly due to increased non-interest expenses associated with the expansion of US digital banking operations, which included $0.9 million in restructuring costs. Consequently, earnings per share also dropped from $0.45 to $0.26 year-over-year.
In addition to reporting strong asset and revenue growth, VersaBank announced plans to realign its corporate structure to a standard US bank framework. This strategic move, with VersaHoldings US Corp. becoming the new parent company, is intended to simplify the regulatory structure, reduce costs, and enable inclusion in stock indices such as the Russell 2000.
VersaBank also initiated a Normal Course Issuer Bid (NCIB) to purchase up to 2 million common shares for cancellation, which represents approximately 8.99% of its public float, as part of its ongoing efforts to enhance shareholder value.
