VERSABANK ADDS SECOND US RPP PARTNER; RAPIDLY SURPASSES US$70 MILLION IN US RPP ASSETS IN JUST 75 DAYS
VersaBank (TSX: VBNK) (NASDAQ: VBNK) has secured its second US Receivable Purchase Program (RPP) partner and surpassed US$70 million in US RPP assets within 75 days of launching the program. The bank is on track to reach US$290 million in US RPP assets in fiscal 2025.
The bank reports meaningful expansion in net interest margin (NIM) for Q2 2025, driven by yield curve normalization, replacement of higher-rate term deposits, growth in Insolvency Professional deposits, and addition of higher-margin US RPP assets. VersaBank has also added BMO Nesbitt Burns to its deposit broker network.
Additionally, VersaBank's CMHC-insured loan commitments have reached over $730 million, with $266 million in outstanding loans, progressing toward their $1 billion fiscal year-end target. These zero risk-weighted loans generate attractive spreads contributing to credit asset net interest margin.
VersaBank (TSX: VBNK) (NASDAQ: VBNK) ha ottenuto il suo secondo partner per il programma statunitense di acquisto di crediti (RPP) e ha superato i 70 milioni di dollari in attività RPP negli USA entro 75 giorni dal lancio del programma. La banca è sulla buona strada per raggiungere 290 milioni di dollari in attività RPP statunitensi nell'anno fiscale 2025.
La banca segnala una significativa crescita del margine di interesse netto (NIM) nel secondo trimestre del 2025, grazie alla normalizzazione della curva dei rendimenti, alla sostituzione di depositi a termine con tassi più elevati, alla crescita dei depositi degli Insolvency Professional e all'aggiunta di attività RPP statunitensi a margine più elevato. VersaBank ha inoltre aggiunto BMO Nesbitt Burns alla sua rete di broker per i depositi.
Inoltre, gli impegni di prestito assicurati da CMHC di VersaBank hanno superato i 730 milioni di dollari, con 266 milioni di prestiti in essere, avvicinandosi all'obiettivo di fine anno fiscale di 1 miliardo di dollari. Questi prestiti a rischio zero generano spread interessanti che contribuiscono al margine di interesse netto sugli asset creditizi.
VersaBank (TSX: VBNK) (NASDAQ: VBNK) ha asegurado su segundo socio para el Programa de Compra de Cuentas por Cobrar (RPP) en EE.UU. y ha superado los 70 millones de dólares en activos RPP en EE.UU. en solo 75 días desde el lanzamiento del programa. El banco está en camino de alcanzar los 290 millones de dólares en activos RPP en EE.UU. para el año fiscal 2025.
El banco reporta una expansión significativa en el margen neto de interés (NIM) para el segundo trimestre de 2025, impulsada por la normalización de la curva de rendimiento, la sustitución de depósitos a plazo con tasas más altas, el crecimiento de los depósitos de Insolvency Professional y la incorporación de activos RPP en EE.UU. con márgenes más altos. VersaBank también ha añadido a BMO Nesbitt Burns a su red de corredores de depósitos.
Además, los compromisos de préstamos asegurados por CMHC de VersaBank han superado los 730 millones de dólares, con 266 millones en préstamos pendientes, avanzando hacia su objetivo de mil millones para el cierre del año fiscal. Estos préstamos con riesgo cero generan diferenciales atractivos que contribuyen al margen neto de interés de los activos crediticios.
VersaBank (TSX: VBNK) (NASDAQ: VBNK)는 두 번째 미국 채권 매입 프로그램(RPP) 파트너를 확보했으며, 프로그램 시작 75일 만에 미국 RPP 자산이 7,000만 달러를 돌파했습니다. 은행은 2025 회계연도에 미국 RPP 자산 2억 9,000만 달러 달성을 목표로 하고 있습니다.
은행은 2025년 2분기 순이자마진(NIM)이 크게 확대되었음을 보고했으며, 이는 수익률 곡선 정상화, 고금리 정기예금 대체, Insolvency Professional 예금 증가, 그리고 고마진 미국 RPP 자산 추가에 힘입은 결과입니다. VersaBank는 또한 BMO Nesbitt Burns를 예금 중개인 네트워크에 추가했습니다.
추가로, VersaBank의 CMHC 보험 대출 약정은 7억 3,000만 달러를 돌파했으며, 현재 2억 6,600만 달러의 대출 잔액을 기록하며 회계연도 말 목표인 10억 달러에 근접하고 있습니다. 이 무위험 대출들은 매력적인 스프레드를 생성하여 신용 자산 순이자마진에 기여하고 있습니다.
VersaBank (TSX : VBNK) (NASDAQ : VBNK) a sécurisé son deuxième partenaire pour le programme américain d'achat de créances (RPP) et a dépassé 70 millions de dollars US d'actifs RPP aux États-Unis en seulement 75 jours après le lancement du programme. La banque est en bonne voie pour atteindre 290 millions de dollars US d'actifs RPP aux États-Unis pour l'exercice 2025.
La banque rapporte une expansion significative de la marge nette d'intérêt (NIM) pour le deuxième trimestre 2025, stimulée par la normalisation de la courbe des taux, le remplacement des dépôts à terme à taux plus élevés, la croissance des dépôts des professionnels de l'insolvabilité et l'ajout d'actifs RPP américains à marge plus élevée. VersaBank a également ajouté BMO Nesbitt Burns à son réseau de courtiers en dépôts.
De plus, les engagements de prêts assurés par la CMHC de VersaBank ont dépassé 730 millions de dollars, avec 266 millions de prêts en cours, progressant vers leur objectif de 1 milliard de dollars à la fin de l'exercice. Ces prêts sans risque génèrent des marges attrayantes contribuant à la marge nette d'intérêt des actifs de crédit.
VersaBank (TSX: VBNK) (NASDAQ: VBNK) hat seinen zweiten US-Partner für das Receivable Purchase Program (RPP) gewonnen und innerhalb von 75 Tagen nach Programmstart US$70 Millionen an US-RPP-Vermögenswerten überschritten. Die Bank ist auf Kurs, im Geschäftsjahr 2025 US$290 Millionen an US-RPP-Vermögenswerten zu erreichen.
Die Bank meldet eine bedeutende Erweiterung der Nettomarge (NIM) im zweiten Quartal 2025, angetrieben durch die Normalisierung der Zinsstrukturkurve, den Ersatz höher verzinster Festgelder, das Wachstum der Insolvency Professional-Einlagen und die Hinzufügung von US-RPP-Vermögenswerten mit höherer Marge. VersaBank hat zudem BMO Nesbitt Burns in sein Netzwerk von Einlagenmaklern aufgenommen.
Darüber hinaus haben die von VersaBank versicherten Darlehenszusagen durch CMHC über 730 Millionen US-Dollar erreicht, mit ausstehenden Krediten in Höhe von 266 Millionen US-Dollar, und bewegen sich auf das Jahresendziel von 1 Milliarde US-Dollar zu. Diese risikofreien Kredite generieren attraktive Spreads, die zur Nettomarge der Kreditvermögenswerte beitragen.
- Rapid growth with US$70M in US RPP assets achieved in just 75 days
- On track to meet US$290M US RPP target for fiscal 2025
- Meaningful expansion in net interest margin (NIM) for Q2 2025
- CMHC-insured loan commitments reached $730M, progressing toward $1B target
- Addition of BMO Nesbitt Burns to deposit broker network expanding distribution
- Increasing bankruptcies in Canada affecting Insolvency Professional deposits
Insights
VersaBank shows remarkable execution across multiple growth initiatives with expanding margins and zero-risk assets, creating substantial shareholder value potential.
VersaBank's US expansion is delivering exceptional results, with their Receivable Purchase Program (RPP) reaching
What's particularly impressive is their multi-pronged growth strategy:
- Expanding higher-margin US operations during a period when alternative funding sources like securitization are becoming more expensive
- Optimizing funding costs through an expanded deposit broker network (adding BMO Nesbitt Burns)
- Growing capital-efficient lending through CMHC-insured loans (
$730 million in commitments, targeting$1 billion ) - Benefiting from macroeconomic factors including yield curve normalization
The meaningful expansion of net interest margin (NIM) is a standout achievement in today's banking environment. While many regional banks struggle with margin compression, VersaBank is executing a clear strategy to enhance profitability through multiple levers.
Their CMHC-insured loan portfolio represents textbook banking excellence—zero risk-weighted assets requiring no regulatory capital while generating attractive spreads. This capital-efficient approach enables them to deploy resources toward higher-margin businesses like their US RPP program.
VersaBank appears to be entering a virtuous cycle where their digital banking model creates cost advantages, their proprietary technology enables distinctive product offerings, and their strategic execution is driving both growth and margin expansion simultaneously.
VersaBank's triple-threat of expanding US operations, widening margins, and risk-mitigated growth demonstrates exceptional execution with significant earnings potential.
The accelerated growth trajectory in VersaBank's US RPP business deserves investor attention. Achieving
The most compelling financial metric here is the meaningful expansion of net interest margin (NIM). This expansion is being driven by multiple factors:
- Normalization of the yield curve benefiting Canadian RPP yields
- Replacement of higher-rate deposits with lower-rate alternatives
- Growth in Insolvency Professional deposits (counter-cyclical benefit)
- Addition of higher-margin US RPP assets
The expansion of VersaBank's deposit broker network through BMO Nesbitt Burns provides enhanced access to funding sources, which should further optimize their cost of funds and support continued NIM expansion.
Their
The current environment of economic volatility appears to be creating tailwinds for VersaBank's model, as higher costs for alternative funding sources drive potential partners toward their RPP solution. This counter-cyclical advantage positions them particularly well if economic conditions deteriorate further.
- Bank on Target to Achieve
- Bank's Overall Net Interest Margin for Quarter to Date Expands Meaningfully -
- Bank Adds BMO Nesbitt Burns to Canada Deposit Broker Network -
- CMHC-Insured Real Estate Loan Commitments on Track to Reach
LONDON, ON, April 17, 2025 /PRNewswire/ - VersaBank ("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 announced, through its wholly owned subsidiary, VersaBank
VersaBank also announced its US RPP portfolio has surpassed
"Our US RPP assets are growing faster than expected," said David Taylor, President and Chief Executive Officer, VersaBank. "Our first partner very quickly has taken advantage of consistently available, readily accessible, economically attractive capital based on our proprietary, state-of-the-art banking technology. The program is functioning as designed and meeting both our and our partners' expectations."
"We expect to continue to steadily add additional RPP partners, with the additional benefit of increasingly favourable market conditions for our RPP as the cost of alternative funding sources, including securitization, increases, amidst the current economic volatility. We expect this will create additional urgency amongst potential partners to add our RPP solution as an alternative source of funding."
BANK'S OVERALL NET INTEREST MARGIN FOR QUARTER TO DATE EXPANDS MEANINGFULLY
As expected, VersaBank's net interest margin (NIM) for the first two months of the second quarter of fiscal 2025 has expanded meaningfully, driven by several factors that are expected to continue to favourably affect NIM this year: Normalization of the yield curve (which benefits Canadian RPP yields), a substantial replacement of higher interest rate term deposits for lower interest rate term deposits in
BMO
VersaBank also announced that it has significantly expanded its nationwide network of authorized deposit brokers (investment advisors, securities dealers and other financial partners who distribute its term deposits) in
CMHC-INSURED REAL ESTATE LOAN COMMITMENTS ON TRACK TO REACH
The Bank further announced that it remains on track to reach its target of
ABOUT VERSABANK'S RECEIVABLE PURCHASE PROGRAM
VersaBank's Receivable Purchase Program (RPP) is an innovative and highly attractive digital funding solution for finance companies that lend money to consumers and small businesses for what are typically "big ticket" purchases (e.g. consumer home improvement/HVAC projects and a wide variety of commercial equipment). It was specifically designed to address an unmet need in the market for consistently available, readily accessible, economically attractive capital using VersaBank's proprietary, state-of-the-art banking technology. Consistent with its branchless, business-to-business, partner-based digital banking strategy, VersaBank's RPP enables it to access the massive and growing consumer and small business financing market in an indirect, efficient and highly risk-mitigated manner.
ABOUT VERSABANK
VersaBank is a North American bank with a difference. Federally chartered in both
VersaBank's Common Shares trade on the Toronto Stock Exchange and NASDAQ under the symbol VBNK.
Visit our website at: www.versabank.com
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SOURCE VersaBank
FAQ
What is VersaBank's (VBNK) current US RPP asset value and how quickly was it achieved?
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What factors are driving VersaBank's (VBNK) net interest margin expansion in Q2 2025?
