LONDON, ON, April 7, 2021 / CNW / – VersaBank (“VersaBank” or the “Bank”) (TSX: VB), a leader in digital banking and cybersecurity solutions, today announced that it has been awarded the Premium Credit Ratings The following from Egan-Jones Ratings Company, a nationally recognized United States statistical rating agency (NRSRO) and a recognized credit rating agency by the United States National Association of Insurance Commissioners (NAIC):
“A” rating for the Bank as a whole; and,
Note “A-” for the issue of subordinated debt outstanding up to $ 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 to us. “, said David taylor, President and CEO, VersaBank. “Additionally, the Bank’s investment ratings are an external affirmation 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-‘ grade for subordinated debt offers the Bank a new option for significantly less costly, non-dilutive and tax-efficient capital that was not previously available to fund our growth – particularly beneficial during the current period of record lending growth. These new ratings are especially valuable 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 driven 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 USA
The overall “A” rating assigned to VersaBank by a rating agency recognized by the National Association of Insurance Commissioners (NAIC) considerably broadens the universe of potential VersaBank depositors, allowing the Bank to offer a very attractive deposit alternative. attractive to institutions such as insurance companies and designated municipalities, among others, in Canada and internationally, which generally hold longer term deposits and are limited to holding deposits with high quality financial institutions.
“The foundation of VersaBank’s superior profitability, low risk proposition is our ability to find deposits at low cost, which allows us to achieve the best net interest margins in the industry,” Taylor said. . “We recently set a new high for its cost of funds at 1.34% and the Bank’s new investment grade credit rating now allows large, long-term depositors to provide a significant additional source of funds at low cost. “
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 leading edge financial technology to profitably respond to underserved segments of the Canadian banking market in pursuit of interest margins higher net. while mitigating risks. VersaBank obtains all of its deposits and delivers the majority of its loans and leases electronically, with innovative deposit and lending solutions for financial intermediaries that enable them to excel in their core businesses. Additionally, by leveraging its in-house developed IT security software and capabilities, VersaBank has wholly owned, Washington DCbased subsidiary, DRT Cyber Inc., to pursue important market opportunities in the field of cybersecurity and develop innovative solutions to deal with the growing volume of cyberthreats that challenge financial institutions, multinational companies and entities on a daily basis. government.
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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