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VersaBank Reports Continued Strong Results for Second Quarter 2021, Highlighted By Record Net Income(3)

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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)

As at or for the three months ended

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As at or for the six months ended

April 30

2021

January 31

2021

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April 30

2020

April 30

2021

April 30

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2020

(thousands of Canadian dollars except per share amounts)

Change

Change

Change

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Financial results

Revenue

$

15,970

$

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15,422

4%

$

14,485

10%

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$

31,392

$

28,067

12%

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Cost of funding

1.28%

1.42%

(10%)

1.75%

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(27%)

1.35%

1.80%

(25%)

Net interest margin

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2.96%

2.86%

3%

3.08%

(4%)

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2.91%

3.01%

(3%)

Core cash earnings(1)(2)

7,940

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7,278

9%

7,096

12%

15,218

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14,181

7%

Core cash earnings per common share(1)

0.38

0.34

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11%

0.34

11%

0.72

0.67

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8%

Net income 

5,744

5,290

9%

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5,149

12%

11,034

10,290

7%

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Net income per common share basic and diluted

0.25

0.22

14%

0.22

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14%

0.47

0.44

7%

Balance sheet and capital ratios

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Total assets

2,139,757

2,044,976

5%

1,966,369

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9%

2,139,757

1,966,369

9%

Book value per common share(1)

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$

11.06

$

10.90

2%

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$

10.37

7%

$

11.06

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$

10.37

7%

Common Equity Tier 1 (CET1) capital ratio

12.52%

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12.48%

0%

13.50%

(7%)

12.52%

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13.50%

(7%)

Total capital ratio 

18.89%

14.58%

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30%

15.85%

19%

18.89%

15.85%

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19%

Leverage ratio

10.46%

11.40%

(8%)

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11.48%

(9%)

10.46%

11.48%

(9%)

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(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;
    • 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;
    • Core cash earnings increased 12% year-over-year and 9% sequentially to a record $7.9 million;
    • Cost of funds decreased 47 bps, or 27%, year-over-year and 14 bps, or 10%, sequentially to a record 1.28%;
    • Net interest margin decreased, 12 bps, or 4% year-over-year, however, increased 10 bps, or 3%, sequentially, to 2.96%, which was dampened by atypically high cash balances following the Bank’s decision amidst the uncertainty near the beginning of the COVID-19 pandemic to increase cash balances out of an abundance of caution. As it has since the third quarter of fiscal 2020, the Bank continued to redeploy its cash balances to higher interest earning loans in the second quarter of 2021, which is expected to contribute to a higher net interest margin;
    • A recovery of credit loss provisions in the amount of $312,000 compared to a provision for credit losses in the amount of $420,000 for the second quarter of 2020 and a  provision for credit losses in the amount of $57,000 for the first quarter of 2021; and
    • Loans increased 2%, or $36 million, to a record $1.83 billion sequentially, driven primarily by growth in the Point-of-Sale Loan and Lease portfolio.
  • Announced its intention to launch a revolutionary, highly-encrypted digital deposit offering, VCAD, with each VCAD unit representing a one-dollar deposit with the Bank. Facilitated by state-of-the-art blockchain technology, VCAD is easily transferable, enabling it to be used as a digital currency, with the highest level of stability and security amongst digital currencies available today, with each VCAD represented by a deposit with an investment-grade issuer;
  • On April 30, 2021 the Bank completed a private placement of non-viability contingent capital (“NVCC”) compliant fixed to floating rate subordinated notes payable, (“the Notes”) in the principal amount of USD $75.0 million (CAD $92.1 million). Egan-Jones Ratings Company assigned the Notes and the Bank investment grade ratings of “A- and “A”, respectively;
  • Also on April 30, 2021, the Bank redeemed all of its outstanding Non-Cumulative Series 3 preferred shares (NVCC) using cash on hand (aggregate of $16.8 million);
  • Net income from wholly-owned subsidiary, DRT Cyber Inc.’s (“DRT Cyber”) penetration testing business, Digital Boundary Group, one of North America’s premier information technology security assurance services firms, increased more than 60% year-over-year for the five-month period since its acquisition in November 2020, and
  • DRT Cyber released its new email privacy compliance platform, RAVEN, the first and only fully automated and integrated solution that provides complete compliance with all major global anti-SPAM legislation, as an external beta to a select group of customers prior to full market release.

Management Commentary

“VersaBank’s second quarter was once again highlighted by a number of record results across our core Digital Banking operations, which were complemented by the profitable contribution of our Cyber-Security subsidiary, resulting in the highest quarterly net income in our history3,” said David Taylor, President and CEO, VersaBank. “It is especially encouraging that, even amidst a period of strong loan growth year-to-date, our strong performance was dampened by our still higher than typical cash balances, as well as the pandemic-related restrictions, which impacted loan origination in both our Point-of-Sale and Commercial Real Estate lending businesses.”

“Importantly, our results were once again reflective of the earnings power and significant growth potential of our Digital Banking strategy – addressing unmet needs in banking through innovative solutions based on our proprietary software platform through a highly efficient, partner-based model.  With the additional capital raised through our subordinated note offering in April, opportunities to continue to lower our cost of funds, our Point-of-Sale and Commercial Lending businesses poised to benefit from the relaxation of pandemic-related restrictions and the launch of our Instant Mortgage offering on the horizon, our strong performance in the first half of fiscal 2021 positions VersaBank for an even better second half, and a return to our track record of strong year-over-year growth in annual profitability.”

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Mr. Taylor added, “As our core Digital Banking operations delivered record results, the second quarter was also marked by strong progress in our DRT Cyber business.  We are now nearly six months with Digital Boundary Group as part of our Cyber-Security business. Net income has grown substantially year-over-year and we are making steady progress in our strategy to capitalize on the significant business development opportunities from the combined teams to drive continued long-term growth, as both business and government grapple with an increasing number of high-consequence cyber-attacks that can be defended through regular penetration testing.”

(3)

Excluding an $8.8 million one-time, non-cash gain resulting from the recognition of a Deferred Tax Asset upon the amalgamation of Pacific & Western Bank and PWC Capital Inc. in the first quarter of 2017.

Update on Management of COVID-19 Impact

As a digital bank with a low-risk business-to-business, partner-based model, VersaBank remains well insulated from many of the negative influences of COVID-19 and our staff continues to work remotely leveraging our fully functional Work-From-Home solution which was a natural and seamless evolution of the Bank’s branchless, technology-driven model.  Despite the fact that we currently have no loans on our balance sheet that are subject to payment deferrals, no impaired loans and no loans in arrears our credit risk department continues to operate at a heightened level of awareness, ensuring that our origination and underwriting practices remain highly disciplined and focused. Further, the Bank continues to maintain liquidity levels that are higher than normal, or more specifically higher than pre-COVID-19 levels, however; management expects that liquidity will normalize prior to the end of fiscal 2021. Despite the business and operational challenges imposed by the pandemic, the Bank continues to focus on enhancing Core Cash Earnings performance by concentrating on niche markets that support more attractive pricing for its products and by leveraging its diverse deposit gathering network which provides efficient access to a range of low-cost deposit sources in order to maintain a lower cost of funds.

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Financial Review

Net Income – Net income for the quarter was $5.7 million, or $0.25 per common share (basic and diluted), compared to $5.3 million, or $0.22 per common share (basic and diluted) last quarter and $5.1 million, or $0.22 per common share (basic and diluted), for the same period a year ago.  The quarter-over-quarter trend was a function primarily of higher revenue and a recovery of credit loss provisions, offset partially by higher non-interest expenses. The year-over-year trend was a function primarily of higher revenue, including strong non-interest income contribution from DBG and recovery of credit loss provisions, offset partially by higher non-interest expense.  Year-to-date net income and EPS were $11.0 million and $0.47 respectively, compared to $10.3 million and $0.44 for the same period a year ago as a function primarily of higher revenues and a recovery of credit loss provisions, offset partially by higher non-interest expense.

Net Interest Margin – Net interest margin (or spread) for the quarter was 2.96% compared to 2.86% last quarter and 3.08% for the same period a year ago. The quarter-over-quarter trend was a function primarily of the continued redeployment of cash into higher yielding lending assets over the course of the current quarter and lower cost of funds. The year-over-year trend was a function primarily of higher yields earned in the comparative period as a function primarily of higher fees recognized on the negotiated, early repurchase of a portfolio of loan and lease receivables by one of the Bank’s point of sale origination partners and lower yields earned on floating rate lending assets attributable primarily to the accommodative monetary policy established by the Bank of Canada early in the spring of 2020, offset partially by lower cost of funds. Year-to-date net interest margin was 2.91% compared to 3.01% for the same period a year ago.

Net Interest Income – Net interest income for the quarter was $15.1 million compared to $14.4 million last quarter and $14.5 million for the same period a year ago. The quarter-over-quarter and year-over-year trends were a function primarily of higher interest income earned on the Bank’s Commercial Real Estate lending portfolio, redeployment of cash into higher yielding lending assets and lower interest expense attributable largely to growth in the operating accounts that the Bank makes available to Canadian insolvency professionals. Year-to-date net interest income was $29.5 million compared to $28.0 million for the same period a year ago.

Non-Interest Expenses – Non-interest expenses for the quarter were $8.3 million compared to $8.1 million last quarter and $6.9 million for the same period a year ago. The quarter-over-quarter trend was a function primarily of the consolidation of the operating expenses of Digital Boundary Group, offset partially by lower salary and benefits expense in the current period. The year-over-year trend was a function primarily of the consolidation of the operating expenses of Digital Boundary Group, increased salary and benefits expense, and investments in the Bank’s corporate development initiatives. Year-to-date non-interest expenses were $16.4 million compared to $13.6 million for the same period a year ago.

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Provision for/Recovery of Credit Losses – The Bank recognized a recovery of credit loss provisions for the quarter in the amount of $312,000 compared to a provision for credit losses in the amount of $57,000 last quarter and a provision for credit losses in the amount of $490,000 for the same period a year ago. The quarter-over-quarter and year-over-year trends were a function primarily of changes in the forward-looking information used by the Bank in its credit risk models in the current quarter as well as a recovery of a prior period write off in the amount of $116,000. The year-over-year trend also reflects net remeasurements of expected credit losses attributable to the impact of planned refinements to specific real estate asset loan and credit data inputs introduced in the third quarter of fiscal 2020.

Core Cash Earnings – Core cash earnings for the quarter were $7.9 million or $0.38 per common share (basic and diluted), compared to $7.3 million or $0.34 per common share (basic and diluted) last quarter and $7.1 million or $0.34 per common share (basic and diluted) for the same period a year ago. The quarter-over-quarter and year-over-year trends were a function primarily of the factors set out above.

Capital – At April 30, 2021, VersaBank’s Total regulatory capital was $333 million compared to $251 million last quarter and $246 million a year ago.  The quarter-over-quarter and year-over-year trends were a function primarily of the completion of a private placement of 5% non-viability contingent capital compliant fixed to floating rate subordinated notes in the principal amount of USD $75 million and higher core cash earnings, offset partially by the redemption of the Bank’s outstanding Non-cumulative Series 3 Preferred Shares. The year-over-year trend was also impacted by the regulatory adjustment attributable to the goodwill and intangible assets acquired from DBG. At April 30, 2021, VersaBank’s CET1 capital ratio was 12.52%, compared 12.48% last quarter and 13.50% a year ago. The quarter-over-quarter and year-over-year trends were a function of retained earnings growth, tax provision recoveries related to the Bank’s deferred tax asset, and changes to the Bank’s risk-weighted asset balances and composition. The year-over-year trend also reflects the addition of goodwill and intangible assets acquired via the purchase of DBG and the inclusion of eligible expected credit loss allowance amounts related to the transitional arrangements pertaining to the capital treatment of expected loss provisioning as set out by the Office of the Superintendent of Financial Institution (OSFI).

Credit Quality — Gross impaired loans at April 30, 2021 were $nil, compared to $6.5 million a year ago. The prior year’s balance was comprised of a single loan which was repaid in full in the fourth quarter of 2020. The Bank’s allowance for expected credit losses, or ECL at April 30, 2021 was $1.6 million compared to $1.8 million in the first quarter and $2.4 million a year ago. The quarter-over-quarter and year-over-year trends were a function primarily of changes in the forward-looking information used by the Bank in its credit risk models in the current quarter. The year-over-year trend also reflects net remeasurements of expected credit losses attributable to the impact of planned refinements to specific real estate asset loan and credit data inputs introduced in the third quarter of fiscal 2020.

VersaBank’s Provision for Credit Losses (PCL) ratio continues to be one of the lowest in the industry, reflecting the very low risk profile of the Bank’s lending portfolio, enabling it to generate superior net interest margins by offering high-value deposit and lending solutions that address unmet needs in the banking industry through a highly efficient partner model.

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FINANCIAL HIGHLIGHTS

(unaudited)

for the three months ended

for the six months ended

April 30

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2021

April 30

2020

April 30

2021

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April 30

2020

($CDN thousands except per share amounts)

Results of operations

Interest income

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$       21,649

$

22,688

$

43,164

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$

44,854

Net interest income

15,095

14,476

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29,469

28,033

Non-interest income

875

9

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1,923

34

Total revenue 

15,970

14,485

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31,392

28,067

Provision for (recovery of) credit losses

(312)

490

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(255)

282

Non-interest expenses

8,342

6,899

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16,429

13,604

Core cash earnings*

7,940

7,096

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15,218

14,181

Core cash earnings per common share*

$

0.38

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$

0.34

$

0.72

$

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0.67

Net income 

5,744

5,149

11,034

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10,290

Income per common share: 

Basic                                                                             

$

0.25

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$

0.22

$

0.47

$

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0.44

Diluted

$

0.25

$

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0.22

$

0.47

$

0.44

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Dividends paid on preferred shares

$

542

$

542

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$

1,084

$

1,084

Dividends paid on common shares

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$

528

$

528

$

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1,056

$

1,056

Yield*

4.24%

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4.83%

4.26%

4.81%

Cost of funds*

1.28%

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1.75%

1.35%

1.80%

Net interest margin*

2.96%

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3.08%

2.91%

3.01%

Return on average common equity*

9.20%

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8.64%

8.73%

8.62%

Core cash return on average common equity*

13.08%

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12.29%

12.40%

12.26%

Book value per common share*

$

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11.06

$

10.37

$

11.06

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$

10.37

Efficiency ratio*

52.24%

47.63%

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52.33%

48.47%

Return on average total assets*

1.02%

0.98%

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0.98%

0.99%

Gross impaired loans to total loans*

0.00%

0.41%

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0.00%

0.41%

Provision (recovery) for credit losses as a % of average loans*

(0.07%)

0.12%

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(0.03%)

0.04%

as at

Balance Sheet Summary

Cash and securities

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$

272,428

$

340,326

$

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272,428

$

340,326

Loans, net of allowance for credit losses

1,829,776

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1,594,968

1,829,776

1,594,968

Average loans*

1,811,750

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1,631,844

1,742,343

1,594,628

Total assets

2,139,757

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1,966,369

2,139,757

1,966,369

Average assets*

2,092,367

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1,910,567

2,041,821

1,875,875

Deposits

1,679,273

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1,591,732

1,679,273

1,591,732

Subordinated notes payable

94,392

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4,885

94,392

4,885

Shareholders’ equity

247,366

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248,313

247,366

248,313

Capital ratios*

Risk-weighted assets

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$

1,763,424

$

1,551,796

$

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1,763,424

$

1,551,796

Common Equity Tier 1 capital

220,740

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209,495

220,740

209,495

Total regulatory capital

333,161

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245,984

333,161

245,984

Common Equity Tier 1 (CET1) ratio

12.52%

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13.50%

12.52%

13.50%

Tier 1 capital ratio

13.29%

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15.39%

13.29%

15.39%

Total capital ratio 

18.89%

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15.85%

18.89%

15.85%

Leverage ratio

10.46%

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11.48%

10.46%

11.48%

* This is a non-GAAP measure.  See definition under ‘Basis of Presentation’ in the Q2 2021 Management’s

    Discussion and Analysis.  

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Forward-Looking Statements

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 the 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 MD&A for the year ended October 31, 2020.

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 management’s discussion and analysis is presented to assist our shareholders and others 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 the related management’s discussion and analysis or made from time to time by the Bank or on its behalf.

Blockchain

Blocks & Headlines: Today in Blockchain – February 14, 2025: Trump Admin, CoreAI, Figment, Infinite Alliance

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blocks-&-headlines:-today-in-blockchain-–-february-14,-2025:-trump-admin,-coreai,-figment,-infinite-alliance

 

In the ever-evolving world of blockchain and cryptocurrency, each day brings with it new developments that not only redefine technology but also reshape the economic and regulatory landscape. Welcome to Blocks & Headlines: Today in Blockchain – February 14, 2025: Trump Admin, CoreAI, Figment, Infinite Alliance, your comprehensive op-ed-style daily briefing. Today, we dive deep into how groundbreaking policy shifts, innovative technological breakthroughs, strategic institutional moves, and global alliances are converging to chart the future of blockchain, crypto, Web3, DeFi, and NFTs.

From the Trump administration’s renewed focus on leveraging blockchain technology as a tool for economic and national security, to CoreAI’s unveiling of an AI-powered blockchain platform designed to simplify decentralized application (dApp) development, the day’s headlines are packed with significance. We’ll explore how Figment’s strategic partnership with a leading blockchain association is setting the stage for institutional staking and robust crypto policy in the U.S., and we’ll also highlight Infinite Alliance’s pioneering efforts in global Web3 and blockchain innovation.

This article provides an in-depth analysis of each story, offering insights into the broader implications for the blockchain ecosystem. We will dissect each development, provide context, and opine on how these trends could influence future innovations, regulatory measures, and market dynamics. Whether you’re a blockchain enthusiast, a crypto investor, or an industry veteran, our detailed exploration will illuminate the key trends shaping the blockchain space today.

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A New Era in Policy: The Trump Administration’s Embrace of Cryptocurrency and Blockchain

In recent years, the intersection of government policy and blockchain technology has grown ever more significant. Today, we examine a pivotal development reported by Fortune that signals a shift in governmental attitudes towards digital currencies and distributed ledger technology. The Trump administration is reportedly taking bold steps to integrate blockchain technology into its regulatory and economic strategies, aiming to harness the benefits of decentralization while establishing robust frameworks to mitigate risks.

The Policy Shift: Balancing Innovation and Regulation

The Trump administration’s renewed interest in cryptocurrency and blockchain reflects a broader global trend of governments acknowledging the transformative potential of these technologies. At the core of this policy shift is the recognition that blockchain offers unparalleled benefits in transparency, efficiency, and security—qualities that are essential in today’s digital economy. By integrating blockchain technology into various governmental functions, the administration seeks to improve public sector efficiency, combat fraud, and enhance data security across critical infrastructures.

However, this embrace of innovation comes with a measured approach to regulation. While the potential for blockchain to revolutionize financial services, supply chain management, and public record-keeping is immense, the administration is keenly aware of the risks involved. Cybersecurity vulnerabilities, market volatility, and the potential for illicit activities necessitate a balanced regulatory framework. The administration’s approach aims to foster an environment where innovation is encouraged, but not at the expense of security and public trust.

Economic and Strategic Implications

The strategic implications of this policy move are far-reaching. By positioning blockchain as a key tool for economic growth and national security, the Trump administration is not only laying the groundwork for enhanced governmental operations but also stimulating broader market confidence in the technology. Investors and industry players can interpret this as a signal that blockchain will receive continued support and favorable regulatory treatment, which may, in turn, drive further investments in blockchain startups and related technologies.

Moreover, the administration’s actions could influence global regulatory trends. As the U.S. takes a proactive stance in integrating blockchain into its economic strategies, other nations may follow suit, leading to a more harmonized international approach to crypto regulation. This harmonization is critical in a world where digital assets and cross-border transactions transcend traditional national boundaries.

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The Broader Context: Innovation in the Public Sector

The integration of blockchain technology into government operations represents a paradigm shift. In education, healthcare, voting systems, and even national defense, blockchain can enhance transparency and accountability. The Trump administration’s focus on these innovations underscores a commitment to leveraging technology for public good. Yet, it also raises questions about privacy, data sovereignty, and the centralization of power—issues that will require careful management as these policies are implemented.

In our view, the administration’s move is both timely and necessary. It acknowledges that the future of technology is decentralized and that the benefits of blockchain can extend beyond the private sector. By setting a regulatory framework that encourages innovation while mitigating risk, the government can help ensure that blockchain technology develops in a manner that benefits all citizens.

Source: Fortune


CoreAI Unveils Revolutionary AI-Powered Blockchain Platform to Simplify dApp Development

In a groundbreaking move that merges artificial intelligence with blockchain technology, CoreAI has unveiled a revolutionary AI-powered blockchain platform designed to simplify the development of decentralized applications (dApps). As reported by Business Insider, this innovative platform is set to transform how developers interact with blockchain, making it more accessible, efficient, and user-friendly.

The Convergence of AI and Blockchain

The integration of AI with blockchain is not just a technological upgrade—it’s a paradigm shift that redefines what is possible in the digital space. CoreAI’s platform leverages state-of-the-art machine learning algorithms to optimize blockchain operations, streamline smart contract development, and enhance security protocols. By automating many of the complex processes involved in dApp development, CoreAI is effectively lowering the barrier to entry for developers and accelerating the pace of innovation.

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Traditionally, developing dApps has required specialized knowledge of blockchain protocols and programming languages. This complexity has often limited innovation to a relatively small pool of experts. CoreAI’s platform addresses this challenge by providing a suite of tools that simplify coding, testing, and deploying decentralized applications. Developers can now focus on creating innovative solutions rather than getting bogged down by technical intricacies.

Benefits for the Developer Community

The benefits of this AI-powered platform are manifold. For one, it significantly reduces development time and cost. With streamlined processes and automated workflows, developers can bring their ideas to market faster than ever before. This speed is crucial in the competitive world of blockchain, where innovation is key to gaining a strategic edge.

Furthermore, the platform’s enhanced security features are particularly noteworthy. By integrating AI-driven threat detection and automated security audits, CoreAI is setting new standards for safeguarding blockchain applications. In an era where data breaches and cyberattacks are increasingly common, robust security measures are not just a nice-to-have; they are a necessity.

From our perspective, CoreAI’s initiative represents a major step forward for the blockchain community. The convergence of AI and blockchain technology opens up exciting new avenues for innovation, driving greater adoption of decentralized systems across various sectors, including finance, supply chain management, healthcare, and beyond. By making dApp development more accessible, CoreAI is not only empowering developers but also fostering a more vibrant and inclusive blockchain ecosystem.

Market Implications and Future Prospects

The launch of CoreAI’s platform comes at a time when the blockchain industry is poised for exponential growth. With increased interest from both institutional and retail investors, the demand for innovative blockchain solutions is higher than ever. CoreAI’s platform is well-positioned to capitalize on this trend, offering a unique value proposition that blends AI with the decentralization benefits of blockchain.

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The broader market implications are significant. As more developers adopt AI-powered tools, we can expect a surge in the number and quality of decentralized applications. This, in turn, will drive greater adoption of blockchain technology across industries, further blurring the lines between traditional centralized systems and decentralized networks.

Moreover, the success of CoreAI’s platform could spur further investment in AI-driven blockchain initiatives, catalyzing a wave of innovation that redefines how we interact with digital assets and decentralized systems. In an increasingly competitive technological landscape, the fusion of AI and blockchain could very well be the catalyst that propels the industry into its next phase of evolution.

Source: Business Insider


Figment Joins Blockchain Association to Advance U.S. Crypto Policy and Institutional Staking Adoption

In a move that underscores the growing institutional momentum behind blockchain technology, Figment has announced its decision to join a leading blockchain association. This strategic partnership, highlighted by both CryptoBriefing and CoinTrust, aims to advance U.S. crypto policy and promote the adoption of institutional staking. By aligning with other industry leaders, Figment is poised to play a pivotal role in shaping the regulatory and operational landscape of the crypto ecosystem.

The Role of Institutional Staking in Crypto Adoption

Institutional staking has emerged as a critical trend in the cryptocurrency space, offering a way for large investors and financial institutions to earn rewards on their digital assets while contributing to the security and stability of blockchain networks. Figment’s decision to join the blockchain association is a clear signal of its commitment to fostering an environment where institutional staking can thrive.

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The association’s collaborative framework brings together key stakeholders from across the blockchain industry, including developers, investors, regulators, and service providers. This collective effort aims to establish standardized practices, drive regulatory clarity, and promote best practices for staking and other blockchain operations. For institutions looking to participate in the crypto market, such measures are essential in reducing risks and ensuring a secure, transparent environment.

Advancing U.S. Crypto Policy

The U.S. regulatory landscape for cryptocurrencies has been in a state of flux for several years, with policymakers grappling with how to balance innovation with consumer protection. Figment’s move is significant in that it seeks to bring a level of coherence and stability to U.S. crypto policy. By actively participating in the blockchain association, Figment and its partners can help shape policies that support both innovation and investor protection.

From our perspective, this development is a critical step toward mainstream crypto adoption in the United States. As regulatory frameworks become more defined and aligned with industry standards, institutional investors will gain greater confidence in deploying capital into the crypto space. This, in turn, could lead to increased liquidity, higher market participation, and ultimately, a more robust digital asset ecosystem.

The Synergy of Collaboration

One of the most compelling aspects of Figment’s announcement is the power of collaboration. In an industry as dynamic and complex as blockchain, no single entity can address every challenge in isolation. The blockchain association provides a platform for collaborative problem-solving, enabling participants to share knowledge, align on standards, and drive collective progress. Figment’s involvement is likely to accelerate the development of industry-wide solutions that address common challenges such as security vulnerabilities, interoperability issues, and regulatory uncertainties.

By joining forces with other leading players, Figment is positioning itself not only as a technology provider but also as a strategic influencer in the broader crypto policy debate. This dual role—as both an innovator and a policy advocate—underscores the company’s commitment to advancing the crypto industry in a way that benefits all stakeholders.

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Source: CryptoBriefing
Source: CoinTrust


Infinite Alliance: Pioneering Global Innovation in Web3 and Blockchain

As the blockchain landscape becomes increasingly interconnected on a global scale, new alliances are emerging to drive innovation and collaboration across borders. Infinite Alliance is one such initiative, pioneering global innovation in Web3 and blockchain. Reported by GlobeNewswire, this development signals a new era of cross-border cooperation aimed at accelerating the adoption of decentralized technologies and fostering groundbreaking innovations.

The Vision of Infinite Alliance

Infinite Alliance represents a concerted effort by a diverse group of industry leaders, developers, and innovators to create a unified platform for advancing Web3 and blockchain technology. At its core, the alliance is focused on breaking down silos and fostering a collaborative environment where ideas can be freely exchanged and developed. This global coalition aims to harness the collective expertise of its members to tackle some of the most pressing challenges facing the blockchain industry, from scalability and interoperability to security and regulatory compliance.

In our opinion, the formation of Infinite Alliance is a bold and necessary step forward. In an industry that is still in its relative infancy, collaboration is key to overcoming the technical and regulatory hurdles that impede progress. By pooling resources and knowledge, the alliance can accelerate innovation, drive standards, and ultimately shape the future of decentralized technologies on a global scale.

Impact on Global Web3 and Blockchain Innovation

The implications of Infinite Alliance extend far beyond the boundaries of any single country or market. As blockchain technology continues to gain traction worldwide, the need for a coordinated approach to innovation and regulation becomes increasingly apparent. Infinite Alliance’s global perspective is particularly valuable in this context, as it provides a platform for harmonizing disparate regulatory approaches and fostering an environment that supports cross-border collaboration.

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For developers and entrepreneurs, the alliance offers a fertile ground for innovation. With access to a broad network of experts and resources, startups and established companies alike can leverage the collective intelligence of the alliance to develop solutions that are both scalable and secure. This collaborative ecosystem is likely to spur a wave of innovation that accelerates the mainstream adoption of blockchain and Web3 technologies.

Strategic Partnerships and Future Directions

Infinite Alliance is already forging strategic partnerships with key players across the blockchain spectrum, setting the stage for future collaborations that could redefine the industry. By aligning with regulators, academic institutions, and technology providers, the alliance aims to create a robust framework for innovation that is both forward-thinking and grounded in practical experience.

In our view, the alliance’s efforts are indicative of a broader shift towards a more integrated and collaborative blockchain ecosystem. As technological advancements continue at a rapid pace, the challenges of interoperability, security, and regulatory compliance can only be overcome through collective action. Infinite Alliance’s pioneering approach serves as a beacon for the industry, demonstrating that by working together, we can unlock the full potential of blockchain and Web3 technologies.

Source: GlobeNewswire


Conclusion: Major Takeaways and the Road Ahead in Blockchain Innovation

Today’s blockchain landscape is a tapestry of innovation, collaboration, and strategic foresight. The developments we’ve explored—from the Trump administration’s proactive embrace of blockchain technology to CoreAI’s revolutionary AI-powered platform, from Figment’s strategic move to influence U.S. crypto policy to Infinite Alliance’s global push for Web3 innovation—offer a compelling glimpse into the future of decentralized technology.

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In our analysis, several key themes emerge. First, the integration of blockchain into government policy signals not only a commitment to technological innovation but also a recognition of the need for secure, transparent, and efficient public systems. As regulatory frameworks evolve, they will play a critical role in shaping the adoption and growth of blockchain and cryptocurrency technologies.

Second, the convergence of AI and blockchain, as demonstrated by CoreAI’s latest platform, is set to revolutionize the development landscape for decentralized applications. By simplifying dApp development and enhancing security measures, such innovations are empowering developers and driving greater adoption of blockchain technology across various sectors.

Third, the strategic moves by institutional players like Figment underscore the importance of collaboration and standardized practices in advancing crypto policy and institutional staking. As regulatory clarity improves, we can expect to see increased participation by large investors, further bolstering market confidence and liquidity.

Finally, global initiatives such as Infinite Alliance highlight the transformative potential of cross-border collaboration. In a world where innovation knows no boundaries, fostering a unified approach to blockchain and Web3 technologies is essential for addressing challenges like interoperability and security on a global scale.

As we look ahead, the interplay between policy, technology, and market dynamics will continue to shape the blockchain ecosystem. For investors, developers, and policymakers alike, staying informed about these trends is crucial to navigating the opportunities and challenges of this rapidly evolving space.

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In summary, today’s news stories serve as a powerful reminder that the blockchain revolution is well underway. The convergence of government policy, advanced technology, and strategic institutional initiatives is setting the stage for a future where decentralized systems redefine not only financial services but also the very fabric of our digital lives. As blockchain continues to mature, its impact on sectors ranging from finance and healthcare to education and public governance will only grow stronger.

Thank you for joining us in this in-depth exploration of today’s blockchain headlines. We hope that our analysis has provided you with valuable insights into the trends shaping the industry and inspired you to consider how these developments might influence your own strategies and investments in the blockchain space. Stay tuned for future editions of Blocks & Headlines: Today in Blockchain, where we will continue to bring you the latest news, insights, and analysis from the cutting edge of blockchain and cryptocurrency innovation.

The post Blocks & Headlines: Today in Blockchain – February 14, 2025: Trump Admin, CoreAI, Figment, Infinite Alliance appeared first on News, Events, Advertising Options.

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Former CEO of MoneyGram Alex Holmes Joins True I/O to Accelerate Secure Payment Systems, Real-World Asset (RWA) Transactions, and the Implementation of Blockchain Names

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