VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced that its wholly-owned US subsidiary, VersaBank USA, has entered into an agreement with a wholly-owned subsidiary of ECN Capital, whereby the ECN unit will participate in VersaBank's core Structured Receivables Program (SRP) in the United States. This marks the second SRP collaboration between ECN Capital and VersaBank in the US market.

The ECN subsidiary is projected to contribute a minimum of an additional $300 million in annual funding to the US SRP, with initial funding expected to be deployed within the coming weeks. Both VersaBank and ECN Capital anticipate the program has the potential to scale to well over $500 million in annual volume in the future. ECN Capital is a leading North American credit asset services provider, managing $8.2 billion in assets and delivering consumer and commercial loan services to banks, insurance companies, and pension funds through its extensive partner network.

David Taylor, Founder and President of VersaBank, stated that ECN Capital is a premier originator and servicer of high-quality consumer loan assets in North America, and this partnership further validates the value and appeal of the SRP. Lawrence Krimker, Chief Executive Officer of ECN Capital, noted that the SRP is a unique and highly attractive source of funding that has already delivered significant benefits to their business since last year's collaboration, and they look forward to deepening their relationship with VersaBank for many years to come.

VersaBank plans to introduce its real-time SRP capability to this partnership. This industry-first, AI-driven functionality enables the financing of individual loans within hours, substantially reducing partners' warehousing financing needs and associated costs. This move is expected to further solidify VersaBank's position within the North American point-of-sale financing industry.