LONDON, ON, June 3, 2026 /CNW/ - VersaBank (or the "Bank") (TSX: VBNK (NASDAQ: 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™ (RBTD™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
Digital Banking
Digital Banking
Digital Meteor
DRTC
Eliminations/
Consolidated
Canada
USA
Adjustments
Net interest income
