The bank, an online commercial lender, grew assets 15 per cent over 2023, largely crediting digital banking, the bank stated in its fiscal year-end report.

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London’s little bank is hitting it big, growing to a record $4.8 billion in assets in 2024, VersaBank reported Monday.

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The bank, an online commercial lender, grew assets 15 per cent during 2024, largely due to digital banking, the bank stated in its fiscal year-end report.

“Our fourth quarter and fiscal 2024 results continue to demonstrate the underlying strength of our digital, (business-to-business), branchless banking model,” said David Taylor, chief executive of VersaBank located on Otter Place, near London International Airport.

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“In fiscal 2025, we look forward to further capitalizing on the operating leverage within our model through continued steady growth in our Canadian digital banking operations.”

Highlights of Versabank’s year-end 2024 report include:

• Total revenue increased three per cent year-over-year to $111.6 million
• Net income decreased six per cent year-over-year to $39.7 million
• Loans increased 10 per cent year-over-year to a record $4.24 billion 
• Total revenue increased three per cent year-over-year to $103.4 million
• Net income from Canadian digital banking operations was $44.3 million, up from $41 million in 2023
• Net income from U.S. digital banking operations was $0.5 million 

VersaBank also operates a cyber security division called DRTC Cybersecurity Service Operations. Its revenue increased seven per cent to $11.6 million.

VersaBank’s fiscal year ended at the end of October.

It has been a busy year for VersaBank. In August, the bank bought Stearns Bank Holdingford N.A., a privately held national subsidiary of Stearns Financial Services Inc. based in St. Cloud, Minn., for $14 million.

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At the time of purchase, Stearns Bank Holdingford had $79 million in assets, and has seen a name change to VersaBank USA.

VersaBank USA’s potential growth is based on the receivable purchase program used for point-of-sale transactions, and has not been available in the U.S., Taylor said at the time of purchase.

The point-of-sale product was pioneered in Canada and VersaBank is introducing it to the U.S. market, he said.

When making a point-of-sale transaction, such as a motorcycle, hot tub or cosmetic surgery, VersaBank buys the loan and it exists on VersaBank’s books. In the U.S., point of sale businesses get the loan and carry the debt, meaning the business must have about 25 per cent equity on a loan. If a business lends $10,000 it has to provide $2,500.

The point of sale transaction does not require equity at all, making it an attractive option for businesses.

ndebono@postmedia.com 

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