09:05 AM EDT, 05/29/2025 (MT Newswires) -- VersaBank ( VBNK ) said Thursday it plans to shift its corporate structure under a US-based parent company to align with standard US bank models, subject to required approvals.

Under the proposal, VersaBank ( VBNK ) said its Canadian shares would be exchanged for shares of VersaHoldings US, a US-domiciled holding company that would become the new parent and be listed on the Nasdaq and Toronto Stock Exchange.

VersaBank Canada would become a wholly-owned unit of VersaHoldings, alongside its US subsidiaries, and oversight would transfer to US regulators, including the Federal Reserve, the company said.

VersaBank ( VBNK ) said the restructuring aims to reduce costs, simplify oversight, and increase potential shareholder value. The expected cost is about 8 million Canadian dollars ($5.8 million), mostly to be incurred in H2 of fiscal 2025, the company added.

Pending approval, David Taylor would step down as the chief executive of VersaBank ( VBNK ) while remaining in other leadership roles, VersaBank ( VBNK ) said. Susan McGovern would serve as interim CEO of VersaBank ( VBNK ) during the transition, the company said.

VersaBank ( VBNK ) also said it named Frank Newbould as board chair, succeeding Tom Hockin, who becomes director emeritus.