By Adriano Marchese

VersaBank logged a lower profit in its fiscal third quarter on the back of corporate-structure costs in the period.

For the third quarter ended July 31, the London, Ontario-based lender posted a lower net income of 6.58 million Canadian dollars ($4.8 million), or C$0.20 a share, up from C$9.71 million, or C$0.36 a share, in the comparable quarter a year earlier.

VersaBank said Thursday that its results reflect the planned, outsized non-interest expense of C$4.2 million as part of its plan to realign its corporate structure to that of a standard U.S. bank framework.

Adjusted earnings, which strip out exceptional costs and one-off items such as the non-interest expense, were C$0.30 a share. According to FactSet, analysts were expecting C$0.33 a share.

Total revenue rose to C$31.6 million from C$27 million a year earlier, but came in just shy of analyst expectations of C$32.2 million.

Common equity tier 1 ratio, which measures the capital set aside as a buffer against losses, was 13.56%, up from 11.75% a year earlier.

VersaBank said it expects to incur a similar expense related to its realignment in the fiscal fourth quarter.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 04, 2025 07:31 ET (11:31 GMT)

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