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

VersaBank (VBNK) added another ~5% since hitting its US$1B SRP funding target early, adding $969M in assets Q/Q (above our estimates)…

… driven by demand for the real-time program, which bodes well for its US$3B 2027 funding target and for earnings contribution from south of the border.

With its US operation being the bank’s most efficient by a wide margin…

… continued outperformance in the growth of VersaBank’s SRP assets would drive upside versus our forecasts and should translate to ROE acceleration…

… as the operating leverage in its soon-to-be home market enables VBNK to earn more on its equity capital, driving growth in book value per share and multiple expansion.

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