07:38 AM EDT, 06/04/2025 (MT Newswires) -- VersaBank ( VBNK ) , up 5.4% in New York pre-market trading, on Wednesday said first-quarter net income fell as revenue rose.

Net income contracted 28% to $8.5 million, or $0.26 per share, from $11.8 million, or $0.45 per share, due to higher non-interest expenses for the U.S. digital banking operations ahead of launching the U.S. Receivable Purchase Program.

Revenue rose 6% to $30.1 million over the same period. The increase was primarily due to the continued growth in credit assets, the company said.

"The fundamentals of our cloud-based, business-to-business model, with its significant operating leverage while increasingly mitigating risk, remain solidly in place. As we look out to the second half of fiscal 2025, we expect continued steady growth in our US Receivable Purchase Program, with a target of at least US$290 million by fiscal year end," said Chief Executive David Taylor.

Versabank ( VBNK ) said it expects to meet its target of $1 billion of authorized commitments by fiscal year-end in its Canada Mortgage and Housing Corp (CMHC) residential construction loan program in Canada, Taylor added.

The company's shares were last seen up US$0.62 to US$12.20 in U.S. pre-market trading.