Welcome to our dedicated page for Versabank news (Ticker: VBNK), a resource for investors and traders seeking the latest updates and insights on Versabank stock.
VersaBank (TSX: VBNK, NASDAQ: VBNK) is a pioneering financial institution headquartered in London, Ontario. Recognized as the world's first fully digital bank, VersaBank employs a highly efficient business-to-business model that leverages state-of-the-art financial technology. This unique approach enables the bank to source deposits, consumer loans, commercial loans, and leases electronically, targeting underserved segments of the Canadian banking market.
Founded as a provincially licensed trust company in 1979 and granted a Schedule I license under the Bank Act (Canada) in 2002, VersaBank has consistently innovated to maintain robust profitability while mitigating risk. The bank focuses on providing innovative deposit and lending solutions for financial intermediaries, which in turn, allows those entities to excel in their core businesses.
VersaBank's operations are not confined to traditional banking methods. The bank also makes residential development and commercial mortgages through a well-established network of brokers and direct interactions with its lending staff. Their advanced IT security software, developed internally, led to the creation of DRT Cyber Inc., a wholly-owned subsidiary based in Washington, DC, focusing on large-market opportunities in cybersecurity.
In recent news, VersaBank reported strong performance for the third quarter of fiscal 2023, with net income reaching $10 million and significant growth in its loan portfolio. The year-over-year increase in net income was 75%, driven by the expansion of their innovative Point-of-Sale Financing portfolio. The bank's risk mitigation strategies and operating leverage have resulted in unmatched efficiency and return on common equity within the North American banking industry.
VersaBank's total regulatory capital at the end of this period stood at $460 million, reflecting consistent growth. Their net interest margin, although temporarily compressed due to higher rates on term deposits, remains robust, contributing to an all-time high net interest income of $24.9 million for the quarter.
The bank is also in the process of acquiring a US national OCC-chartered bank, a move expected to significantly bolster their Receivable Purchase Program in the United States. This acquisition is anticipated to drive total assets to transformative levels, further enhancing profitability and operational efficiency.
The VersaBank stock is traded on the Toronto Stock Exchange and Nasdaq under the symbol VBNK, and its Series 1 Preferred Shares under the symbol VBNK.PR.A. VersaBank continues to push the boundaries of digital banking, aiming for superior net interest margins and prudent risk management.
VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced it will release its fourth quarter and fiscal 2024 year-end financial results on Monday, December 9, 2024, at 7:00 a.m. ET. The company will host a conference call and webcast at 9:00 a.m. ET, featuring a presentation by President & CEO David Taylor and CFO John Asma, followed by a Q&A session. The event is expected to last approximately 60 minutes. Multiple access options are available, including automated callback registration, direct dial-in, and webcast viewing. The presentation materials will be available on the Bank's website, and replay options will be accessible until January 9, 2025.
VersaBank's subsidiary DRT Cyber Inc.'s Penetration Testing division, Digital Boundary Group (DBG), has achieved SOC2 Type 1 Certification. This certification validates DBG's compliance with SOC Trust Services Criteria for Security, enhancing customer confidence in their cybersecurity services, particularly for regulated industries. The certification process, developed by AICPA and audited by Ernst & Young, evaluates how organizations manage customer data according to Trust Services Principles including Security, Availability, Processing Integrity, Confidentiality, and Privacy.
VersaBank (TSX: VBNK; NASDAQ: VBNK) has announced its participation in the 13th Annual ROTH Technology Conference taking place in New York City from November 19-20, 2024. The bank's management team will engage in one-on-one meetings throughout the conference. The event is exclusively for ROTH's institutional clients and requires an invitation. Interested parties can contact their ROTH sales representative or email registration@roth.com to express interest and confirm participation.
VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced its participation in the KBW Fintech Conference scheduled for November 13-14, 2024, in New York City. David Taylor, President and CEO, will be featured on a panel discussing The Future of Fintech-Bank Partnerships on November 13 at 1:25 p.m. ET. The panel discussion will be exclusively available for in-person attendees. The bank's management team will also conduct one-on-one meetings throughout the conference, with interested parties directed to contact their KBW representative for scheduling.
VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced its participation in the upcoming ThinkEquity Conference in New York City on October 30, 2024. David Taylor, President and CEO, will deliver a presentation at 4:30 p.m. ET. Interested parties can access a live webcast of the presentation through VersaBank's investor relations website section for events and presentations.
VersaBank has been named a CIO Awards Canada winner by IDC Canada and CIO for its Capital Adequacy Requirement (CAR) project. The bank moved core CAR logic into a serverless function in the cloud, resulting in ultra-fast computing without impacting its Asset Management System (AMS).
VersaBank's CIO, Wooi Koay, received the award at a gala dinner in Toronto on September 25, 2024. The bank's CEO, David Taylor, emphasized the importance of technological innovation in their cloud-based, branchless, business-to-business model. He highlighted the bank's success in Canada and its recent expansion into the United States.
The CIO Awards Canada recognizes Canadian IT organizations for projects driving digital business growth through technology innovation. IDC Canada's Managing Director, Lars Goransson, congratulated this year's winners for their inspiring projects and demonstration of Canada's highly skilled and innovative workforce.
VersaBank (TSX: VBNK) has announced its intention to redeem all outstanding Non-cumulative 5-Year Rate Reset Preferred Shares, Series 1 (NVCC) on October 31, 2024. The redemption price will be $10.00 per share, including all declared and unpaid dividends. This decision, approved by the Office of the Superintendent of Financial Institutions, is part of the Bank's ongoing management of its regulatory capital.
The Bank's Board of Directors has declared a final quarterly dividend of $0.1693 per Series 1 Preferred Share, payable on October 31, 2024, to shareholders of record on October 4, 2024. After the redemption date, Series 1 Preferred Shares will cease to be entitled to dividends, and shareholders will only be entitled to receive the redemption amount.
VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced its quarterly dividend declaration for the period ending October 31, 2024. The bank will pay CAD $0.025 per Common Share and CAD $0.1693 per Series 1 Preferred Share. These dividends are payable on October 31, 2024, to shareholders of record as of the close of business on October 4, 2024. VersaBank has confirmed that these dividends qualify as eligible dividends for tax purposes, which may have implications for shareholders' tax planning strategies.
VersaBank reported its Q3 2024 results, highlighting the completion of its acquisition of Stearns Bank Holdingford N.A., now renamed VersaBank USA. The bank's total assets increased 13% year-over-year to a record $4.5 billion, driven primarily by growth in its Point of Sale Receivable Purchase Program portfolio. However, net income decreased 3% year-over-year to $9.7 million, impacted by factors related to the US acquisition preparation. Key financial highlights include:
- Total revenue increased 1% year-over-year to $27.0 million
- Loans increased 11% year-over-year to $4.05 billion
- Earnings per share decreased 5% year-over-year to $0.36
- Return on common equity decreased to 9.63% from 11.15% year-over-year
The bank maintains a strong capital position with a CET1 ratio of 11.75% and is poised for growth in the US market through its newly acquired national bank charter.
VersaBank (TSX: VBNK) (NASDAQ: VBNK) has closed its acquisition of Stearns Bank Holdingford N.A. (SBH), now renamed VersaBank USA N.A. This marks the formal launch of VersaBank's Receivable Purchase Program (RPP) in the U.S. market. The acquisition, valued at US$14.0 million (CAD$19.3 million), includes US$61.1 million in assets and US$54.1 million in deposits and liabilities.
VersaBank's CEO, David Taylor, emphasized the transformational nature of this acquisition, enabling the bank to bring its successful RPP solution to the largest point-of-sale financing market globally. The bank expects this move to drive significant growth in its loan portfolio and profitability, leveraging its digital, branchless model.
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