VersaBank has released its financial results for the second quarter ended April 30, 2026. The company's total revenue and net interest income increased by 27% year-over-year, while its adjusted core net profit saw a 45% rise. This growth was driven by strong expansion in the US Structured Receivables Purchase Program portfolio and better-than-expected performance in Canadian operations.

The financial report indicates that total revenue for the quarter was C$38.3 million, with net interest income reaching C$35.7 million. Both figures represent a significant increase from the C$30.1 million reported in the same period last year. Adjusted core net profit stood at C$12.4 million, or C$0.39 per share, substantially exceeding analyst expectations of C$0.28 per share. Total assets grew by 28% year-over-year to a record C$6.3999 billion, while the net interest margin on credit assets expanded to 2.71% from 2.59% a year ago.

Reported net profit was C$7.5 million (C$0.23 per share), a 12% decrease from the prior year. This decline was primarily attributed to non-core expenses totaling C$6.7 million. These expenses included C$4.5 million in project costs related to the company's restructuring towards a standard US banking framework and a C$2.2 million impairment of intangible assets from the sale of its sole physical branch, which was completed on May 1.

VersaBank founder and President David Taylor commented, "The 38% year-over-year growth in adjusted net profit, which significantly outpaces the healthy 25% growth in credit assets, fully demonstrates the sustained benefits from the inherent operating leverage in our business model." He added that a 28% quarter-over-quarter growth in the US Structured Receivables Purchase Program portfolio was the core driver of the quarterly performance.

Net profit from the company's US digital banking operations reached C$3.6 million, a substantial increase from C$133,000 in the same period last year. Furthermore, the company has initiated a pilot project for an AI-driven real-time Structured Receivables Purchase Program and has begun accepting QCAD deposits under a custodial services agreement. QCAD is Canada's first regulatory-compliant Canadian dollar stablecoin.

Looking ahead, the company anticipates deploying at least an additional US$1 billion into the US Structured Receivables Purchase Program during the 2026 fiscal year. VersaBank has publicly filed a Form S-4 registration statement with the US Securities and Exchange Commission and expects the restructuring to be completed within the 2026 fiscal year.