VersaBank reported its fourth‑quarter 2025 results on December 10, 2025, posting total revenue of $25.29 million—up 29% year‑over‑year and $1.01 million above the consensus estimate of $24.28 million. Earnings per share were $0.24, exactly matching the $0.24 consensus and reflecting a 91% year‑over‑year increase in adjusted net income driven by higher margin lending and disciplined cost management.
Revenue growth was largely powered by the Receivable Purchase Program (RPP). The program’s U.S. fundings reached $310 million for the year, and credit assets in the Digital Banking segment grew 20% YoY to $5.07 billion. These gains offset modest declines in legacy loan portfolios, resulting in a net revenue increase that exceeded analyst expectations.
Net interest margin on credit assets expanded to 2.65% in Q4 2025, up from 2.55% in the prior year, as the bank’s focus on high‑margin RPP and digital‑first lending continued to lift profitability. The common equity tier 1 (CET1) ratio stood at 12.92%, underscoring a strong capital base that supports ongoing growth initiatives.
Management guided for fiscal 2026 revenue to include at least $2 million in incremental earnings from an enhanced CMHC lending program and projected significant expansion of U.S. RPP assets. CEO David Taylor highlighted the “underlying strength of our digital, B2B, branchless banking model” and emphasized that the RPP ramp‑up and new CMHC program are key drivers of future revenue growth.
The results and forward guidance reinforce VersaBank’s strategy of leveraging technology‑enabled lending to capture high‑margin opportunities while maintaining a robust capital position, positioning the bank for continued expansion in the U.S. market and beyond.
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