LONDON, ONTARIO/BusinessWire – VersaBank (“VersaBank” or the “Bank”) (TSX: VB) today announced that it has partnered with Simply Group Financial Corp. (“Simply Group Financial”) for its Point-of-Sale Financing business. Simply Group Financial is a subsidiary of Simply Green Home Services Inc., parent corporation of the “Simply Group”, one of Canada’s fastest growing home energy solution, home improvement and consumer lending businesses. As partners, VersaBank will provide Simply Financial with financing to facilitate ongoing loan origination utilizing VersaBank’s proprietary software solution. In their first transaction, VersaBank has initially provided Simply Group Financial with a financing facility of $72 million.
“We are thrilled to welcome Simply Group Financial as a new Point-of-Sale Financing partner,” said David Taylor, President and CEO, VersaBank. “It’s a great time to be joining forces with Simply Group Financial with the home improvement industry experiencing a boom as Canadians spend more of their discretionary income on home renovations and upgrades amidst the pandemic. VersaBank’s Point-of-Sale Financing business has been the primary driver of the significant expansion of our lending portfolio for the last eight years and we see this partnership as a tremendous opportunity for both organizations to execute on their growth strategies.”
Mr. Taylor added, “The addition of a partner of Simply Group Financial’s caliber further underscores the value proposition of the Bank’s Point-of-Sale Financing offering, focusing on ‘big ticket’ consumer-purchase lenders and addressing a significant gap in traditional bank lending. The initial financing of $72 million immediately and meaningfully expands our Point-of-Sale portfolio, and is just one of many opportunities we see together as we look to deploy in excess of $2 billion in pursuit of superior net interest margins while mitigating risk.”
“Simply Group and VersaBank are complementary businesses that will both benefit greatly from this strategic partnership,” said Lawrence Krimker, Founder and CEO of Simply Group. “Combining VersaBank’s expertise and leadership in Point-of-Sale financing with Simply Group’s rapidly expanding home energy and home improvement consumer lending businesses is a win-win for both organizations and for consumers.”
About Simply Group
With more than $850 million in assets originated or acquired, Simply Group (www.mysimplygroup.com) provides consumers and businesses with financing solutions that afford them greater flexibility not only to achieve improved energy-efficiency, but also to modernize their residential, commercial and industrial properties and projects. Simply Group knows that its people are its greatest asset and is proud to be Great Place to Work-Certified since 2016. In 2020, Simply Group was named Best Business of the Year by the Canadian SME National Business Awards.
VersaBank adopted an electronic B2B (business-to-business) branchless model in 1993, becoming the world’s first branchless financial institution. It holds a Canadian Schedule 1 chartered bank licence and obtains its deposits, and the majority of its loans and leases, electronically. VersaBank’s Common Shares trade on the Toronto Stock Exchange under the symbol VB and its Series 1 Preferred Shares and Series 3 Preferred Shares trade under the symbols VB.PR.A. and VB.PR.B. respectively.
The statements in this press release that relate to the future are forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, many of which are out of our control. Risks exist that predictions, forecasts, projections, and other forward-looking statements will not be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements as several important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the strength of the Canadian economy in general and the strength of the local economies within Canada in which we conduct operations; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the Bank of Canada; changing global commodity prices; the effects of competition in the markets in which we operate; inflation; capital market fluctuations; the timely development and introduction of new products in receptive markets; the impact of changes in the laws and regulations pertaining to financial services; changes in tax laws; technological changes; unexpected judicial or regulatory proceedings; unexpected changes in consumer spending and savings habits; the impact of COVID-19 pandemic and our anticipation of and success in managing the risks implicated by the foregoing. For a detailed discussion of certain key factors that may affect our future results, please see our annual Management’s Discussion and Analysis (“MD&A”) for the year ended October 31, 2019.
The foregoing list of important factors is not exhaustive. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The forward-looking information contained in this document and the related MD&A is presented to assist our shareholders in understanding our financial position and may not be appropriate for any other purposes. Except as required by securities law, we do not undertake to update any forward-looking statement that is contained in this document and related MD&A or made from time to time by the Bank or on its behalf.
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