VersaBank says Q3 saw record credit assets, revenue and net interest income

VersaBank (TSX: VBNK ) reported third-quarter financial results on Thursday.

The transcript from the company's third-quarter earnings call has been provided below.

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View the webcast at Summary VersaBank reported significant growth in Q3 2026, with record highs in credit assets, revenue, and net interest income, largely driven by its U.S.

Structured Receivable Program (SRP).

The company surpassed $7 billion in total assets, marking a substantial increase over five years with a compounded annual growth rate of more than 25%.

Net income increased by 53% year-over-year, with adjusted net income up 27%, despite high liquidity levels and various non-core and transitory costs impacting results.

VersaBank introduced an AI-enabled, real-time SRP, allowing for more efficient and cost-effective loan financing, which has been positively received and is expected to drive future growth.

Looking ahead, the company anticipates continued expansion in the U.S.

SRP market, targeting at least $3 billion in additional fundings for fiscal 2027, with significant potential for growth in Canada as well.

The bank plans to implement AI throughout its operations to enhance efficiency and reduce costs, and is preparing for a corporate reorganization to align with U.S. banking standards.

VersaBank is in the process of divesting its cybersecurity business, with an extension granted until August 2027 to complete this requirement.

Full Transcript OPERATOR Good morning ladies and gentlemen.

Welcome to VersaBank's third quarter fiscal 2026 financial results conference call.

This morning VersaBank issued a news release reporting its financial results for the third quarter ended July 31, 2026.

That news release, along with the bank's financial statements, MD&A and supplemental financial information are available on the bank's website in the Investor Relations section, as well as on SEDAR+ and EDGAR.

Please note, in addition to the telephone dial-in, VersaBank is webcasting this morning's conference call.

The webcast is listen-only.

If you are listening to the webcast but wish to ask a question in the Q&A session following Mr.

Taylor's presentation, please dial into the conference line, the details of which are included in this morning's news release and on the bank's website.

For those participating in today's call by telephone, the accompanying slide presentation is available on the bank's website.

Also, today's call will be archived for replay both by telephone and via the internet beginning approximately one hour following completion of the call.

Details on how to access the replays are available in this morning's news release.

I would like to remind our listeners that statements about future events made on this call are forward-looking in nature and are based on certain assumptions and analysis made by VersaBank management.

Actual results could differ materially from our expectations due to various material risks and uncertainties associated with VersaBank's businesses.

Please refer to VersaBank's Forward-Looking Statement Advisory in today's presentation.

I would now like to turn the call over to David Taylor, Founder and President of VersaBank.

Please go ahead, Mr.

Taylor.

David Taylor, President & CEO Good morning everyone and thank you for joining us for today's call.

With me again is our Global Chief Financial Officer, Nicolas Ospina, and for the first time, Lawrence Chamberlain, our new Global SVP, Investor and Stakeholder Relations, who joined us full-time in August after working for us on a consulting basis for the last six years or so.

As expected, fiscal 2026 has continued to be a breakout year in terms of top line growth.

The third quarter once again saw records for credit assets, revenue and net interest income with very strong year-over-year growth.

This was once again driven mainly by the momentum in our Structured Receivable Program in the United States.

In fact, our U.S. operations generated nearly 25% of Q3's Digital Banking revenue, but notably we have continued to see steady growth in Canada as we continue to increase business with our existing partners and expand our market share.