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For Immediate Release : May 27 , 2021 Attention : Business Editors VersaBank Choice Through Innovation VERSABANK REPORTS CONTINUED STRONG RESULTS FOR SECOND QUARTER 2021 , HIGHLIGHTED BY RECORD NET INCOME³ - Strong Year - over - year and Sequential Momentum Driven by Continued Redeployment of Cash , Driving Record Lending Asset Balances , Record Low Cost of Funds and Record Revenue 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 second quarter 2021 ( " Q2 2021 " ) unaudited Interim Consolidated Financial Statements for the period ended April 30 , 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 , as well as technology solutions for cybersecurity , today reported its results for the second quarter of 2021 ended April 30 , 2021 . Financial Summary ( unaudited ) ( thousands of Canadian dollars except per share amounts ) April 30 2021 As at or for the three months ended January 31 2021 Change April 30 2020 Change As at or for the six months ended April 30 April 30 2020 2021 Change Financial results Revenue Cost of funding Net interest margin Core cash earnings ( 1 ) ( 2 ) $ 1.28 % 15,970 $ 15,422 4 % $ 1.42 % ( 10 % ) 14,485 10 % 1.75 % ( 27 % ) $ 31,392 $ 28,067 12 % 1.35 % 1.80 % ( 25 % ) 2.96 % 2.86 % 3 % 3.08 % ( 4 % ) 2.91 % 3.01 % ( 3 % ) 7,940 7,278 9 % 7,096 12 % 15,218 14,181 7 % Core cash earnings per common share ( 1 ) 0.38 0.34 11 % 0.34 11 % 0.72 0.67 8 % Net income Net income per common share basic and diluted 5,744 0.25 5,290 9 % 5,149 12 % 0.22 14 % 0.22 14 % 11,034 0.47 10,290 7 % 0.44 7 % Balance sheet and capital ratios Total assets $ 2,139,757 $ 2,044,976 5 % $ 1,966,369 9 % $ 2,139,757 $ 1,966,369 9 % Book value per common share ( 1 ) Common Equity Tier 1 ( CET1 ) capital ratio Total capital ratio 11.06 12.52 % Leverage ratio 18.89 % 10.46 % 10.90 2 % 12.48 % 0 % 14.58 % 30 % 11.40 % ( 8 % ) 10.37 7 % 13.50 % ( 7 % ) 11.06 10.37 7 % 12.52 % 13.50 % ( 7 % ) 15.85 % 19 % 11.48 % ( 9 % ) 18.89 % 15.85 % 19 % 10.46 % 11.48 % ( 9 % ) ( 1 ) Certain highlights include non - GAAP measures . See definitions under ' Basis of Presentation ' in the Q2 2021 Management's Discussion and Analysis . ( 2 ) Core Cash Earnings is calculated as pre - tax earnings less non - core operating income and expenses . Highlights for the Second Quarter of 2021 • Positive trends continue across all key financial metrics sequentially and substantially all key financial metrics year - over - year , as the Bank continued to lower its cost of funding , and continued to redeploy elevated cash balances ( accumulated in mid - 2020 in response to the uncertainty associated with the pandemic ) into low - risk , higher yielding lending assets ; О Total revenue increased 10 % year - over - year and 4 % sequentially , to a record $ 16.0 million ; Net income increased 12 % year - over - year and 9 % sequentially to a record³ $ 5.7 million ; о о Core cash earnings increased 12 % year - over - year and 9 % sequentially to a record $ 7.9 million ; 1