Disclosure: Bullpen receives compensation from VersaBank for research coverage. VersaBank is also an IR client of LodeRock Advisors, an affiliate of Bullpen.

VersaBank (VBNK) was the only one in the peer group up in yesterday’s session after announcing it’s now receiving QCAD deposits - which should generate ~50 bps of risk-free NIM.

While we don’t expect this to impact results meaningfully, the progress opens the door to new custodian deals or RBDT adoption…

… which could add a material source of low cost deposits over time, providing a NIM tailwind if the balances prove sticky enough to lend against.

Read our VersaBank report

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