VersaBank – June 2022 – Update

Our investment thesis for (TSX/NASDAQ: VBNK) is that its technology-based business model will enable multi-year double-digit EPS growth, while expansion strategies in the US market, blockchain (tokenized deposits) and cybersecurity (DRTC) provide free upside optionality.

Tuesday, VersaBank announced it had signed a definitive agreement to acquire Stearns Bank Holdingford, NA, a U.S. national OCC-chartered bank. Investors should see this as a key enabler of future growth, with U.S. consumer and small business point-of-sale loans representing a US$1.8 trillion market.

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