The core banking business is firing on all cylinders with accelerating US SRP growth and expanding margins, while non-core charges are one-time. The S-4 filing for a US holding company structure is a positive catalyst that could unlock a valuation re-rating. Monitor for completion of the reorganization and continued US SRP funding momentum toward the $1B target.
Price Chart
Executive Summary
VersaBank reported Q2 FY2026 results with total revenue up 27% YoY to a record $38.3M and net interest income up 27% to $35.7M, driven by 25% growth in credit assets to $5.68B, led by a 32% increase in the SRP portfolio. GAAP net income fell to $7.5M from $8.5M due to $6.7M in non-core charges ($4.5M reorganization costs + $2.2M branch intangible write-down), but adjusted (core) net income rose 45% to $12.4M and adjusted EPS grew 50% to $0.39. Credit quality remained excellent with PCL at 0.03% of average credit assets. The bank also filed an S-4 for a corporate reorganization into a US holding company structure and renewed its NCIB for up to 2M shares.
Key Facts
- Total revenue record $38.3M, up 27% YoY; net interest income record $35.7M, up 27% YoY
- Credit assets grew 25% YoY to $5.68B; SRP portfolio up 32% YoY
- US SRP assets reached US$604.9M, on track for US$1B in new fundings in FY2026
- Adjusted (core) net income $12.4M, up 45% YoY; adjusted EPS $0.39, up 50% YoY
- GAAP net income $7.5M vs $8.5M YoY, impacted by $6.7M non-core charges
- PCL remained negligible at 0.03% of average credit assets
- NIM on credit assets expanded 12 bps YoY to 2.71%
- CET1 ratio 12.32%, well above regulatory minimum of 7.0%
- Filed S-4 for reorganization into US holding company structure
- Renewed NCIB for up to 2M shares (no purchases in Q2)
Financial Impact
Revenue +27% YoY to $38.3M, adjusted net income +45% YoY to $12.4M, credit assets +25% to $5.68B
Risk Factors
- Reorganization costs may continue through FY2026 completion
- US SRP ramp-up carries execution risk and requires continued deposit funding
- DRTC cybersecurity divestiture timeline and valuation uncertain
- Trade/tariff uncertainty and Middle East energy price shocks could pressure macro outlook
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001437749-26-019259 |
| Exhibit: ex_969213.htm | 0001437749-26-019259 |
| Exhibit: ex_969214.htm | 0001437749-26-019259 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 6-K | $23.47 | awaiting T+60 | — | $22.34 (−4.81%) |
Oct 15, 2026 12d ago | 6-K | $22.39 | awaiting T+60 | — | $22.34 (−0.22%) |
Oct 1, 2026 26d ago | 6-K | $22.11 | awaiting T+60 | — | $22.34 (+1.04%) |
Sep 22, 2026 5w ago | 6-K | $23.18 | awaiting T+60 | — | $22.34 (−3.62%) |
Sep 17, 2026 5w ago | 6-K | $22.79 | awaiting T+60 | — | $22.34 (−1.97%) |
Sep 17, 2026 5w ago | 6-K | $23.47 | awaiting T+60 | — | $22.34 (−4.81%) |
Sep 4, 2026 7w ago | 6-K | $22.41 | awaiting T+60 | — | $22.34 (−0.31%) |
Sep 3, 2026 7w ago | 6-K | $20.59 | awaiting T+60 | — | $22.34 (+8.50%) |
Sep 1, 2026 8w ago | 6-K | $18.97 | awaiting T+60 | — | $22.34 (+17.80%) |
Aug 26, 2026 8w ago | 6-K | $19.81 | awaiting T+60 | — | $22.34 (+12.77%) |
US Market Status
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