VERSABANK ADDS NEW ECN CAPITAL SUBSIDIARY TO US STRUCTURED RECEIVABLE PROGRAM

VersaBank, a North American leader in business-to-business digital banking, has announced an agreement between its wholly owned U.S. subsidiary, VersaBank USA, and a subsidiary of ECN Capital. Under this agreement, the ECN Subsidiary will utilize VersaBank's core Structured Receivable Program (SRP) in the United States. This marks the second SRP program ECN Capital has entered into with VersaBank in the U.S.

The ECN Subsidiary is anticipated to contribute at least US$300 million in additional U.S. SRP funding annually, with initial funding expected within the coming weeks. Both VersaBank and ECN Capital believe the program has the potential to exceed US$500 million per year in the future.

David Taylor, Founder and President of VersaBank, commented on the partnership, stating, "The addition of our new partner, an undisputed North American leader in originating and servicing high-quality consumer loan assets, is further validation of the value and attractiveness of our Structured Receivable Program." He emphasized that the program would soon feature a real-time funding capability, allowing partners like ECN Capital to finance individual loans within hours, thereby reducing overall financing costs and reliance on warehouse financing.

VersaBank operates as a branchless, digital bank, federally chartered in both Canada and the U.S. It markets its proprietary technology to address underserved segments of the banking industry. In August 2024, VersaBank launched its Structured Receivable Program funding solution in the U.S., aiming to capture opportunities in the multi-trillion-dollar market for point-of-sale finance companies.

VersaBank's common shares are traded on both the Toronto Stock Exchange and NASDAQ under the symbol VBNK.