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) announced on Nov. 14, 2022, the initiation of an internal pilot program for its new Digital Deposit Receipts (DDRs) called "CADV" in Canada. This program will validate security protocols of the DDR model, initially involving only senior executives and board members. The DDRs represent actual cash deposits and will utilize blockchain technology for transfers. The pilot has been approved by the board and is deemed non-material to banking operations. VersaBank continues to innovate in the digital banking space, focusing on security and regulatory alignment.
VersaBank (TSX: VBNK; NASDAQ: VBNK) announced an expansion of its Normal Course Issuer Bid (NCIB) on September 21, 2022, allowing share purchases on both the Toronto Stock Exchange and the Nasdaq. This amendment aims to enhance the Bank's capacity to utilize excess capital for significant growth opportunities. The NCIB will maintain its existing terms and conditions while enhancing the Bank's strategic position in the market.
VersaBank (TSX: VBNK, NASDAQ: VBNK) reported a record loan portfolio, fueled by a 75% year-over-year growth in its Canadian Point-of-Sale Financing business. For Q3 2022, revenue rose 35% year-over-year to CAD 21.2 million, while net income increased 5% to CAD 5.7 million. Net interest income reached CAD 20.1 million, driven by higher lending asset balances. However, net income per share decreased by 20% year-over-year due to a higher share count following an IPO. The Bank also advanced its U.S. expansion strategy, announcing an acquisition of Stearns Bank Holdingford, expected to close in 2022.
VersaBank (TSX: VBNK) has declared cash dividends of CAD $0.025 per Common Share and CAD $0.1693 per Series 1 Preferred Share for the quarter ending October 31, 2022. These dividends are payable to shareholders of record as of the close of business on October 7, 2022. The dividends are classified as eligible dividends for tax purposes, reflecting the bank's commitment to return income to its shareholders.
VersaBank will announce its third quarter 2022 financial results on August 31, 2022. The results will be available around 7:00 a.m. EDT, followed by an earnings conference call at 9:00 a.m. EDT, lasting approximately 60 minutes. The call will feature presentations from David Taylor, President & CEO, along with other executives. The presentation material will be accessible on the Bank's website and through various financial reporting platforms. A replay of the call will be available until September 30, 2022.
VersaBank (TSX: VBNK, NASDAQ: VBNK) has received approval from the Toronto Stock Exchange for a Normal Course Issuer Bid (NCIB) to repurchase up to 1,700,000 common shares, approximately 9.54% of its public float. The CEO, David Taylor, stated the shares are undervalued at less than 0.8 times book value, presenting a favorable buying opportunity. The NCIB is set to commence on August 17, 2022, and will end on August 16, 2023. Daily purchases will be limited to 25% of the average daily trading volume.
VersaBank, a leading digital banking institution, announced that David Taylor, its CEO, will present at the Sidoti & Company Virtual Investor Conference on June 16, 2022, at 10:45 a.m. ET. The presentation will focus on the bank's innovative solutions in cybersecurity and unique business model targeting underserved markets. A webcast will be available on their website, with replays accessible afterwards. VersaBank trades on both the TSX and NASDAQ under the symbol VBNK.
VersaBank (TSX: VBNK, NASDAQ: VBNK) has signed a definitive agreement to acquire Stearns Bank Holdingford, N.A. for approximately US$13.5 million (CA$17.4 million). This acquisition aims to enhance VersaBank's U.S. operations, adding about US$60 million in total assets. The deal is expected to be accretive to earnings within the first year and positions VersaBank USA with a capital ratio exceeding 10%. Closing is anticipated by October 31, 2022, pending regulatory approvals.
VersaBank reported its Q2 2022 results, marking a 17% increase in revenue to $18.6 million year-over-year, driven by 34% growth in loans. However, net income fell 14% to $4.9 million due to higher costs from growth initiatives, resulting in an EPS decrease of 32%. The bank achieved a record loan portfolio, particularly in Canadian Point-of-Sale financing, which grew 51% year-over-year. Despite these gains, net interest margins declined, reflecting a strategic shift towards lower-margin products. The bank's total assets grew 11% to $2.69 billion.
VersaBank (TSX: VBNK) has declared cash dividends of CAD $0.025 per Common Share and CAD $0.1693 per Series 1 Preferred Share for the quarter ending July 31, 2022. These dividends are payable on July 31, 2022, to shareholders recorded by July 8, 2022. Moreover, these dividends qualify as eligible dividends for tax purposes.
VersaBank operates as a digital financial institution, focusing on underserved banking segments with innovative financial technology solutions.
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