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Varo Bank, National Association

Draper, UT · Cert 59190 · Varo Money Inc.

National charter · OCC · 1 branch

Q2 2026

$337.8MAssets
$97.1MLoans
$209.8MDeposits
$68.9MEquity
Loan mix
0%RE $0.0M0%C&I $0.0M100%Consumer $100.0MQ2 2025Q2 2026
Deposit mix
44%Interest-bearing $92.6M56%Noninterest $117.2MQ2 2025Q2 2026

NIM

3.54%Q2 ’245.85%Q2 ’255.86%Q2 ’26+123%+4%

Non-interest income vs. expense

46.89%Q2 ’2473.85%Q2 ’2565.72%Q2 ’26+115%-20%

Market Position · Salt Lake City-Murray, UT · 2026 SOD (annual) · 0.0% share · #37 of 57 inst. · $0.2B of $1175.7B

Executive Summary

  • Earnings: ROA of -25.68%, down 59 bps year over year; NIM at 5.19%.
  • Asset quality: problem loans at 0.42% of loans (-9 bps YoY), with net charge-offs at 29.82%.
  • Capital: tier 1 leverage ratio of 18.46%, down 215 bps from a year ago.
  • Funding: loans stand at 46.27% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

-25.68%-59 bps YoY

Net Interest Margin (YTD, annualized)

5.19%+20 bps YoY

Efficiency Ratio (YTD, annualized)

131.06%-1,356 bps YoY

Tier 1 Leverage Ratio

18.46%-215 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets-25.08%-27.83%-26.42%-24.68%-25.68%-59 bps
Return on Equity-125.34%-139.76%-125.51%-99.49%-109.59%+1,575 bps
Net Interest Margin4.98%5.78%5.85%4.95%5.19%+20 bps
Efficiency Ratio144.62%144.70%139.28%130.26%131.06%-1,356 bps
Non-Interest Burden28.81%32.21%29.72%21.51%23.14%-567 bps
Growth
Asset Growth (YoY)-41.32%-35.50%-15.96%5.34%19.85%+6,117 bps
Loan Growth (YoY)25.83%21.65%24.14%18.25%15.64%-1,019 bps
Deposit Growth (YoY)-52.48%-47.19%-37.22%2.52%30.17%+8,265 bps
Asset Quality
Nonperforming Loans / Loans0.50%0.80%0.76%0.53%0.42%-9 bps
Net Charge-Offs / Loans18.11%20.86%21.79%28.37%29.82%+1,172 bps
Allowance / Loans7.14%8.15%9.18%9.50%9.98%+284 bps
Allowance Coverage of NPLs14.2x10.1x12.0x17.9x23.9x+9.7x
Capital
Tier 1 Leverage Ratio20.60%16.67%32.32%23.62%18.46%-215 bps
Total Risk-Based Capital20.60%16.67%32.32%23.62%18.46%-215 bps
Equity / Assets24.65%19.52%25.16%24.43%20.39%-426 bps
Liquidity & Funding
Loans / Deposits52.08%54.80%45.27%45.75%46.27%-582 bps
Liquid Assets / Assets20.14%16.40%33.88%38.11%23.94%+380 bps
CRE / Total Capitaln/a0.00%0.00%0.00%n/an/a