07:54 AM EDT, 09/04/2025 (MT Newswires) -- VersaBank ( VBNK ) , up more than 8% in New York trade, on Thursday said third-quarter adjusted earnings were lower, and missed expectations, while total revenue increased, but also missed forecast, as the company ramps up its Receivable Purchase Program in the United States.

For Q3, adjusted net income, which excludes most one-time items, narrowed slightly to $9.67 million, or $0.30 per adjusted diluted share, from $9.7 million, or $0.36 per adjusted share, in the prior year period. The result missed the consensus analyst forecast of $0.33 per share, according to FactSet.

Total revenue increased 17% to $31.6 million, but missed analysts' expectation of $32.25 million. It said the Q3 increase was mainly due to the 18% growth in credit assets, to a record $4.78 billion, boosted by continued growth in the Bank's reservable purchase program (RPP) portfolio, the bank said.

Versabank ( VBNK ) reported a CET1 ratio of 13.56%, up from 11.75% a year earlier. It also announced that cash dividends in the amount of $0.025 per common share of the bank have been declared for the quarter ending October 31, 2025 , payable as of October 31, 2025 , to shareholders of record at close of business on October 10, 2025.

On its RPP program, Versabank ( VBNK ) said expansion will add securitization expected to generate additional asset and earnings growth in both the U.S. and Canada. Two new RPP partners have been added in Canada, including a first RPP securitization partner. The VersaBank USA Tokenized Deposit Pilot Program in the United States is underway.

"Our third quarter financial results reflect the ramp up of our Receivable Purchase Program in the United States, alongside better than expected growth in credit assets in Canada, as well as net interest margins consistent with the improved levels we saw in the second quarter, all of which combined to drive revenue to another new record with a very healthy sequential increase in adjusted net income," said Davd Taylor, Founder and President, VersaBank ( VBNK ).

"Importantly, the financial results for our Canadian Digital Banking operations, excluding the corporate expenses currently included therein, continue to demonstrate the industry leading efficiency and profitability potential of our US Digital Banking operations at scale. We are steadily advancing our plan to realign our corporate structure to that of a standard US bank framework, which we believe will not only create additional shareholder value in and of itself but also more clearly demonstrate the true underlying efficiency of our digital banking operations."

The company's shares are up US$0.94, to US$12.30, in New York trade. Versabank ( VBNK ) closed up $0.82 or 5.5%, to $15.68, on the Toronto Stock Exchange.