VersaBank core profit climbs 45% on North American loan expansion

VersaBank (NASDAQ:VBNK) reported strong growth in its underlying lending operations for the second quarter of fiscal 2026, driven by a sustained expansion of its credit assets across North American markets.

However, one-time charges tied to corporate restructuring and asset adjustments dragged down the branchless digital bank's reported bottom-line total.

Total revenue for the quarter rose 27% year-over-year to $38.3 million, matching a parallel 27% increase in net interest income, which reached $35.7 million.

The top-line expansion reflects steady volume growth across the bank’s niche commercial financing portfolios.

Supported by this interest growth, adjusted core net income—which excludes non-recurring operating impacts—climbed 45% to $12.4 million.

In contrast, reported net income declined 12% to $7.5 million for the three-month period.

The decrease was primarily driven by $6.7 million in non-core non-interest expenses.

These specific charges included $4.5 million in reorganization costs alongside a $2.2 million write-down on intangible assets.

The London, Ontario-based financial institution sustained a significant expansion of its balance sheet footprint.

Total assets grew 28% year-over-year to $6.44 billion, supported by broad credit expansion in both domestic Canadian markets and the U.S.

A primary growth vehicle for the bank's cross-border operations remains its specialized commercial point-of-sale purchasing program.

Credit assets under the U.S. Structured Receivable Program reached US$604.9 million during the quarter, indicating continued momentum as the bank targets asset aggregation outside its core domestic market.