LONDON, ON, April 7, 2021 / PRNewswire / – VersaBank (“VersaBank” or the “Bank”) (TSX: VB), a leader in digital banking and cybersecurity solutions, today announced that it has received the following investment grade credit ratings from Egan-Jones Ratings Company, a United States Nationally Recognized Statistical Rating Organization (NRSRO) and recognized credit rating provider by the United States National Association of Insurance Commissioners (NAIC):

  • “A” rating for the entire Bank; and,
  • “A-” rating for the current issue of subordinated debt up to US $ 100 million.

VersaBank’s overall “A” credit rating is comparable to that of several of Canada’s “Big Six” Schedule I banks.

“This is a truly transformational event for VersaBank that will significantly expand our universe of depositors and open a new low-risk lending channel, providing the opportunity to further accelerate our growth in ways that were not previously available. “, said David taylor, President and CEO, VersaBank. “Additionally, the Bank’s investment grade ratings are an external confirmation of our low-risk digital banking model, which is fundamental to our ability to drive earnings growth and shareholder value.”

“It is important to note that VersaBank’s ‘A-‘ subordinated debt rating offers the Bank a new option for significantly less costly, non-dilutive and tax-efficient capital that was previously unavailable to us to fuel our growth – particularly beneficial during this current period of record lending growth. These new ratings are particularly useful as we explore the potential to launch our innovative digital banking services in new geographic markets beyond Canada, where we see significant unmet needs similar to those that have fueled the Bank’s strong and steady growth. “

VersaBank Global “A” rating enables a new low-cost deposit channel, significantly expanding the universe of depositors in Canada and the United States

VersaBank’s overall “A” rating by a rating agency recognized by the National Association of Insurance Commissioners (NAIC) significantly broadens the universe of potential VersaBank depositors, allowing the Bank to offer a very attractive deposit alternative to institutions. such as insurance companies and named municipalities, among others, in Canada and internationally, which generally hold longer-term deposits and are limited to holding deposits with financial institutions rated “investment grade”.

“The foundation of VersaBank’s superior, low-risk profitability proposition is our ability to find low-cost deposits, which allows us to achieve industry-leading net interest margins,” said Mr. Taylor. “We recently set a new high for its cost of funds at 1.34% and the Bank’s new credit rating now allows large depositors for the long term, which is an important additional source of low cost funds.”

ABOUT VERSABANK

VersaBank is a Canadian Schedule I chartered bank with a difference. VersaBank became the world’s first fully digital financial institution when it adopted its highly efficient business-to-business model using its proprietary advanced financial technology to profitably respond to underserved segments of the Canadian banking market in search of margins. higher net interest rates. while mitigating risks. VersaBank obtains all of its deposits and delivers the majority of its loans and rentals electronically, with innovative deposit and lending solutions for financial intermediaries that enable them to excel in their core businesses. In addition, by leveraging its in-house developed computer security software and capabilities, VersaBank has wholly owned, Washington DCsubsidiary, DRT Cyber ​​Inc., to seize important opportunities in major markets in the field of cybersecurity and develop innovative solutions to deal with the rapidly growing volume of cyberthreats that challenge financial institutions, multinational companies and companies on a daily basis. government entities.

VersaBank’s common shares trade on the Toronto Stock Exchange under the symbol VB and its Series 1 Preferred Shares and Series 3 Preferred Shares trade under the symbols VB.PR.A and VB.PR.B, respectively.

Visit our website at: www.versabank.com

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SOURCE VersaBank

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