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For Immediate Release : February 24 , 2021 Attention : Business Editors VersaBank Choice Through Innovation VERSABANK REPORTS CONTINUING STRONG FINANCIAL RESULTS FOR FIRST QUARTER 2021 – RECORD PERFORMANCE IN BANKING OPERATIONS PLUS SIGNIFICANT MOMENTUM IN CYBERSECURITY BUSINESS - - Quarter Highlighted by Record Revenue and Near - Record Net Income Driven by Continued Redeployment of Cash to Propel Record Loan Growth , Plus Significant Initial Contribution from Digital Boundary Group Acquisition - All amounts are unaudited and in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting , unless otherwise noted . Our first quarter 2021 ( " Q1 2021 " ) unaudited Interim Consolidated Financial Statements for the period ended January 31 , 2021 and Management's Discussion and Analysis , are available online at www.versabank.com/investor-relations and at www.sedar.com . Supplementary Financial Information will also be available on our website at www.versabank.com/investor-relations LONDON , ON / CNW - VersaBank ( " VersaBank ” or the “ Bank ” ) ( TSX : VB ) , a North American leader in business - to- business digital banking and technology solutions for cybersecurity , today reported its results for the first quarter of 2021 ended January 31 , 2021 . Financial Summary Note : VersaBank's financial results for the first quarter of 2021 include 62 days of contribution from Digital Boundary Group ( " DBG " ) , which was acquired on November 30 , 2020 through the Bank's wholly owned subsidiary DRT Cyber Inc ( " DRT Cyber ” ) . DRT Cyber's gross profit contribution , including that of DBG , is accounted for as “ Non- interest Income " under Revenue and DRT Cyber's corporate expenses are accounted for as “ Non - interest Expenses " . ( unaudited ) ( thousands of Canadian dollars except per share amounts ) January 31 2021 As at or for the three months ended October 31 2020 Change January 31 2020 Change Financial results Revenue $ 15,422 $ Cost of funding 1.42 % Net interest margin 2.86 % 13,726 1.51 % 2.82 % 12 % $ ( 6 % ) 1 % 13,582 14 % 1.88 % ( 24 % ) 2.96 % ( 3 % ) Core cash earnings " ( 1 ) ( 2 ) Core cash earnings per common share ( 1 ) Net income 7,278 6,545 11 % 7,085 3 % 0.34 0.31 10 % 0.34 0 % Net income per common share basic and diluted 5,290 0.22 4,746 11 % 5,141 3 % 0.20 10 % 0.22 0 % Balance sheet and capital ratios Total assets 2,044,976 1,943,885 5 % 1,854,765 10 % Book value per common share ( 1 ) $ Common Equity Tier 1 ( CET1 ) capital ratio Leverage ratio 10.90 $ 12.48 % 11.40 % 10.70 13.88 % ( 10 % ) 2 % $ 10.17 7 % 13.05 % ( 4 % ) 12.19 % ( 6 % ) 11.86 % ( 4 % ) ( 1 ) Certain highlights include non - GAAP measures . See definitions under ' Basis of Presentation ' in the Q1 2021 Management's Discussion and Analysis . ( 2 ) Core Cash Earnings is calculated as pre - tax earnings less non - core operating income and expenses . 1