VERSABANK REPORTS RECORD FOURTH QUARTER AND FISCAL 2022 FINANCIAL RESULTS
VersaBank (VBNK) reported record financial results for the fourth quarter and fiscal year 2022, with total revenue reaching $24.3 million, a 33% year-over-year increase. The bank achieved net income of $6.4 million, up 9% year-over-year, despite a 4% decrease in earnings per share to $0.23. Key drivers included a 42% growth in loans to $2.99 billion, primarily from Point-of-Sale financing. However, net interest margin on loans fell 8%, reflective of a funding mix shift and rising rates. The bank anticipates continued growth and profitability in 2023, supported by strategic investments and an upcoming acquisition in the U.S.
- Total revenue increased 33% year-over-year to $24.3 million.
- Net income rose 9% year-over-year to $6.4 million.
- Loans increased 42% year-over-year to $2.99 billion.
- Digital Banking revenue grew 40% year-over-year.
- Earnings per share decreased 4% year-over-year to $0.23.
- Net interest margin on loans fell 8% year-over-year.
– Fourth Quarter and Fiscal 2022 Highlighted by Another Record Loan Portfolio and Record Revenue, Net Interest Income and Net Income –
VersaBank's 2022 annual audited Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") will be available today online at www.versabank.com/investor-relations, SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.shtml. Supplementary Financial Information will also be available on our website at www.versabank.com/investor-relations. All amounts are in Canadian dollars unless otherwise noted. All interim financial information within this earnings release is unaudited and based on interim Consolidated Financial Statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. All annual financial information herein was derived from VersaBank's 2022 annual audited Consolidated Financial Statements and MD&A. |
LONDON, ON, Dec. 7, 2022 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK), a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today reported its results for the fourth quarter and year ended October 31, 2022. All figures are in Canadian dollars unless otherwise stated.
Consolidated and Segmented Financial Summary
(unaudited) | As at or for the three months ended | As at or for the year ended | |||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||
(thousands of Canadian dollars except per share amounts) | 2022 | 2022 | Change | 2021 | Change | 2022 | 2021 | Change | |||||
Financial results | |||||||||||||
Total revenue | $ 24,252 | $ 21,239 | 14 % | $ 18,236 | 33 % | $ 82,392 | $ 65,357 | 26 % | |||||
Cost of funds(1) | 2.45 % | 1.94 % | 26 % | 1.31 % | 87 % | 1.77 % | 1.35 % | 31 % | |||||
Net interest margin(1) | 2.81 % | 2.76 % | 2 % | 2.73 % | 3 % | 2.70 % | 2.76 % | (2 %) | |||||
Net interest margin on loans(1) | 3.03 % | 3.07 % | (1 %) | 3.31 % | (8 %) | 3.08 % | 3.35 % | (8 %) | |||||
Net income | 6,429 | 5,720 | 12 % | 5,910 | 9 % | 22,658 | 22,380 | 1 % | |||||
Net income per common share basic and diluted | 0.23 | 0.20 | 15 % | 0.24 | (4 %) | 0.79 | 0.96 | (18 %) | |||||
Balance sheet and capital ratios | |||||||||||||
Total assets | $ 3,265,998 | $ 3,075,343 | 6 % | $ 2,415,086 | 35 % | $ 3,265,998 | $ 2,415,086 | 35 % | |||||
Book value per common share(1) | 12.37 | 12.14 | 2 % | 11.61 | 7 % | 12.37 | 11.61 | 7 % | |||||
Common Equity Tier 1 (CET1) capital ratio | 12.00 % | 12.51 % | (4 %) | 15.18 % | (21 %) | 12.00 % | 15.18 % | (21 %) | |||||
Total capital ratio | 16.52 % | 17.05 % | (3 %) | 20.80 % | (21 %) | 16.52 % | 20.80 % | (21 %) | |||||
Leverage ratio | 9.84 % | 10.38 % | (5 %) | 12.60 % | (22 %) | 9.84 % | 12.60 % | (22 %) | |||||
(1) See definition under 'Non-GAAP and Other Financial Measures' in the Annual 2022 Management's Discussion and Analysis. | |||||||||||||
(thousands of Canadian dollars) | |||||||||||||||
for the three months ended | October 31, 2022 | July 31, 2022 | October 31, 2021 | ||||||||||||
Digital Banking | DRTC | Eliminations/ | Consolidated | Digital Banking | DRTC | Eliminations/ | Consolidated | Digital Banking | DRTC | Eliminations/ | Consolidated | ||||
Adjustments | Adjustments | Adjustments | |||||||||||||
Net interest income | $ 22,477 | $ - | $ - | $ 22,477 | $ 20,062 | $ - | $ - | $ 20,062 | $ 16,146 | $ - | $ - | $ 16,146 | |||
Non-interest income | 38 | 1,778 | (41) | 1,775 | 12 | 1,206 | (41) | 1,177 | (46) | 2,177 | (41) | 2,090 | |||
Total revenue | 22,515 | 1,778 | (41) | 24,252 | 20,074 | 1,206 | (41) | 21,239 | 16,100 | 2,177 | (41) | 18,236 | |||
Provision for (recovery of) credit losses | 205 | - | - | 205 | 166 | - | - | 166 | (279) | - | - | (279) | |||
22,310 | 1,778 | (41) | 24,047 | 19,908 | 1,206 | (41) | 21,073 | 16,379 | 2,177 | (41) | 18,515 | ||||
Non-interest expenses: | |||||||||||||||
Salaries and benefits | 5,678 | 1,541 | - | 7,219 | 5,600 | 1,168 | - | 6,768 | 4,720 | 687 | - | 5,407 | |||
General and administrative | 5,113 | 457 | - | 5,570 | 5,217 | 343 | (41) | 5,519 | 3,704 | 311 | (41) | 3,974 | |||
Premises and equipment | 624 | 361 | - | 985 | 610 | 319 | - | 929 | 628 | 368 | - | 996 | |||
11,415 | 2,359 | - | 13,774 | 11,427 | 1,830 | (41) | 13,216 | 9,052 | 1,366 | (41) | 10,377 | ||||
Income (loss) before income taxes | 10,895 | (581) | (41) | 10,273 | 8,481 | (624) | - | 7,857 | 7,327 | 811 | - | 8,138 | |||
Income tax provision | 3,939 | (95) | - | 3,844 | 2,099 | 38 | - | 2,137 | 1,907 | 321 | - | 2,228 | |||
Net income (loss) | $ 6,956 | $ (486) | $ (41) | $ 6,429 | $ 6,382 | $ (662) | $ - | $ 5,720 | $ 5,420 | $ 490 | $ - | $ 5,910 | |||
Total assets | $ 3,267,479 | $ 22,345 | $ (23,826) | $ 3,265,998 | $ 3,076,611 | $ 21,796 | $ (23,064) | $ 3,075,343 | $ 2,411,790 | $ 22,309 | $ (19,013) | $ 2,415,086 | |||
Total liabilities | $ 2,912,249 | $ 25,755 | $ (22,681) | $ 2,915,323 | $ 2,725,820 | $ 24,794 | $ (21,919) | $ 2,728,695 | $ 2,077,643 | $ 23,205 | $ (17,868) | $ 2,082,980 | |||
(thousands of Canadian dollars) | |||||||||||
for the year ended | October 31, 2022 | October 31, 2021 | |||||||||
Digital Banking | DRTC | Eliminations/ | Consolidated | Digital Banking | DRTC | Eliminations/ | Consolidated | ||||
Adjustments | Adjustments | ||||||||||
Net interest income | $ 76,666 | $ - | $ - | $ 76,666 | $ 60,157 | $ - | $ - | $ 60,157 | |||
Non-interest income | 52 | 5,839 | (165) | 5,726 | (60) | 5,411 | (151) | 5,200 | |||
Total revenue | 76,718 | 5,839 | (165) | 82,392 | 60,097 | 5,411 | (151) | 65,357 | |||
Provision for (recovery of) credit losses | 451 | - | - | 451 | (438) | - | - | (438) | |||
76,267 | 5,839 | (165) | 81,941 | 60,535 | 5,411 | (151) | 65,795 | ||||
Non-interest expenses: | |||||||||||
Salaries and benefits | 22,303 | 4,493 | - | 26,796 | 18,354 | 1,889 | - | 20,243 | |||
General and administrative | 17,614 | 1,283 | (165) | 18,732 | 10,289 | 972 | (151) | 11,110 | |||
Premises and equipment | 2,475 | 1,390 | - | 3,865 | 2,403 | 1,250 | - | 3,653 | |||
42,392 | 7,166 | (165) | 49,393 | 31,046 | 4,111 | (151) | 35,006 | ||||
Income (loss) before income taxes | 33,875 | (1,327) | - | 32,548 | 29,489 | 1,300 | - | 30,789 | |||
Income tax provision | 9,744 | 146 | - | 9,890 | 7,817 | 592 | - | 8,409 | |||
Net income (loss) | $ 24,131 | $ (1,473) | $ - | $ 22,658 | $ 21,672 | $ 708 | $ - | $ 22,380 | |||
Total assets | $ 3,267,479 | $ 22,345 | $ (23,826) | $ 3,265,998 | $ 2,411,790 | $ 22,309 | $ (19,013) | $ 2,415,086 | |||
Total liabilities | $ 2,912,249 | $ 25,755 | $ (22,681) | $ 2,915,323 | $ 2,077,643 | $ 23,205 | $ (17,868) | $ 2,082,980 | |||
HIGHLIGHTS FOR THE FOURTH QUARTER OF 2022
Consolidated
- Consolidated revenue increased
33% year-over-year and14% sequentially to a record$24.3 million driven by higher interest income resulting substantially from loan portfolio growth, as well as higher non-interest income derived predominantly from the Bank's cybersecurity services operations, Digital Boundary Group ("DBG"); - Consolidated net income increased
9% year-over-year and12% sequentially to a record1$6.4 million as a function of higher revenue, which was partially offset by transitory strategic investments in several business development initiatives amounting to$1.8 million and higher income tax provisions of$1.1 million (which are expected to reduce in fiscal 2023), as well as higher provision for credit losses; - Consolidated earnings per share decreased
4% year-over-year and increased of15% sequentially to$0.23 . The year-over-year decrease was due primarily to the impact of the issuance of 6.3 million common shares concurrent with the Bank's listing on Nasdaq in September 2021 (the "Common Share Offering"). Consolidated earnings per share was dampened by transitory strategic investments in several business development initiatives, which amounted to$0.06 per share, and higher income tax provisions, which amounted to$0.04 per share; and, - On August 5, 2022, VersaBank received approval from the Toronto Stock Exchange ("TSX") to proceed with a Normal Course Issuer Bid ("NCIB") for its common shares through which the Bank may purchase for cancellation up to 1,700,000 of its common shares representing approximately
9.54% of its public float. On September 21, 2022, the NCIB was expanded to the Nasdaq Global Select Market. If fully executed, the impact of the NCIB will not have a material impact on the Bank's regulatory capital levels and ratios. The Bank had repurchased 195,300 shares under the NCIB as at October 31, 2022.
(1) | Record net income excludes the first quarter 2017 which benefitted from the recognition of |
Digital Banking Operations
- Loans increased
42% year-over-year and6% sequentially to a record$2.99 billion , driven primarily by growth in the Bank's Point-of-Sale ("POS") Financing portfolio, which increased74% year-over-year and11% sequentially; - Digital Banking revenue increased
40% year-over-year and12% sequentially to a record$22.5 million due primarily to loan growth; - Net interest margin on loans decreased 28 bps, or
8% , year-over-year and decreased 4 bps, or1% sequentially, to3.03% , with both decreases due primarily to a shift in the Bank's funding mix and rising interest rates over the respective periods, as well as the Bank successfully executing on its strategy to grow its POS Financing portfolio, which were partially offset by generally higher yields earned on the Bank's lending portfolio due to rising interest rates. Net interest margin overall increased 8 bps, or3% , year-over-year and increased 5 bps, or2% , sequentially to2.81% due to the more than offsetting impact on the aforementioned factors of the redeployment of available cash into higher yielding, low-risk securities; and, - Provision for Credit Losses ("PCLs") as a percentage of average loans was
0.03% , compared with a 12-quarter average of0.00% , which remains among the lowest of the publicly traded Canadian Schedule I (federally licensed) Banks.
DRTC (Cybersecurity Services and Banking and Financial Technology Development)
- Sales, which are generated entirely by DRTC's Cybersecurity Services business, Digital Boundary Group ("DBG"), increased
33% sequentially and decreased8% year-over-year to$2.8 million due to the timing of engagements in the respective periods. Gross profit increased48% sequentially and decreased19% year-over-year to$1.7 million due to increased pricing on offered services and improvements in DBG's operational efficiency; and, - Net loss was
$0.5 million compared with net income of$0.5 million last year and a net loss of$0.7 million in the third quarter of 2022, with the higher gross profit from DBG being partially offset by higher salary and benefits expense associated with employee retention in a highly competitive labour market. Net loss for DRTC includes costs associated with strategic technology development investments for the Bank's Digital Banking operations. The operations of DBG on a stand-alone basis continue to be profitable.
HIGHLIGHTS FOR THE FULL FISCAL 2022 YEAR
Consolidated
- Consolidated revenue increased
26% year-over-year to a record$82.4 million due to higher net interest income generated by the Digital Banking operations (driven primarily by strong loan growth of42% year-over-year) and higher non-interest income attributable to higher gross profit generated by DBG; - Consolidated net income increased
1% year-over-year to a record$22.7 million as a function of higher revenue, which was partially offset by transitory strategic investments in several business development initiatives that amounted to$5.2 million , and higher income tax provisions, which amounted to$1.1 million (and which are expected to reduce in fiscal 2023); and, - Consolidated earnings per share decreased
18% to$0.79 per share primarily due to the impact of the issuance of 6.3 million common shares concurrent with the Bank's listing on Nasdaq in September 2021. Earnings per share was dampened by transitory strategic investments in several business development initiatives, which amounted to$0.16 per share, and higher income tax provisions, which amounted to$0.04 per share (which are expected to reduce in fiscal 2023).
Digital Banking Operations
- Loans increased
42% year-over-year to a record$2.99 billion driven primarily by growth in the Bank's Point-of-Sale ("POS") Financing portfolio, which increased74% year-over-year; - Digital Banking revenue increased
28% year-over-year to a record$76.7 million ; - Net interest margin on loans decreased 27 bps, or
8% , year-over-year to3.08% due primarily to a shift in the Bank's funding mix and rising interest rates over the period offset partially by generally higher yields earned on the Bank's lending portfolio due to rising interest rates. Net interest margin overall decreased 6 bps, or2% , year-over-year to2.70% , due to the partially offsetting impact on the aforementioned factors of the redeployment of available cash into higher yielding, low-risk securities; - Provision for Credit Losses ("PCLs") as a percentage of average loans was
0.02% , compared with a 12-quarter average of0.00% , which remains amongst the lowest of the publicly traded Canadian Schedule I (federally licensed) Banks; and, - On June 14, 2022, VersaBank signed a definitive agreement to acquire Minnesota-based Stearns Bank Holdingford, N.A. ("SBH"), a privately held, wholly owned subsidiary of Stearns Financial Services Inc. ("SFSI") based in St. Cloud, Minnesota, for an estimated US
$13.5 million (CA$18.4 million ). The transaction is anticipated to close in the first half of calendar 2023, subject to customary closing conditions, including regulatory approval by both the Office of the Comptroller of the Currency ("OCC") in the U.S. and the Office of the Superintendent of Financial Institutions, ("OSFI") in Canada.
DRTC (Cybersecurity Services and Banking and Financial Technology Development)
- Sales and gross profit, which are generated entirely by DBG, increased
14% to$9.8 million and8% to$5.6 million , respectively; and, - Net loss was
$1.5 million compared with net income of$0.7 million in the prior year due primarily to higher costs related to investments in certain growth initiatives for the Digital Banking Operations, including the ongoing development of the Canadian-dollar version of VersaBank's Digital Deposit Receipts. Net loss for DRTC includes costs associated with strategic technology development investments for the Bank's Digital Banking operations. The operations of DBG on a stand-alone basis continue to be profitable.
HIGHLIGHTS SUBSEQUENT TO THE END OF THE FOURTH QUARTER
- Initiated an internal pilot program of a new model of its revolutionary Digital Deposit Receipts ("DDRs") (undertaken exclusively within Canada, the purpose of which the internal pilot program is to validate the security, processes, procedures and protocols of the Bank's new DDR model called "CADV" (for the Canadian-dollar version). The pilot program will limit deposits and transfers to senior VersaBank executives and members of the Bank's board of directors, all of whom reside in Canada; and,
- Completed submission of the requisite U.S. regulatory filings to the OCC and Federal Reserve Bank of Minneapolis seeking approval of its proposed acquisition of OCC-chartered U.S. bank, Stearns Bank Holdingford, and expects to submit is regulatory application to OSFI shortly. The Honorable Tom Ridge, former governor of Pennsylvania and first secretary of the U.S. Office of Homeland Security, has consented to serve as chair of the board of directors of VersaBank's post-acquisition subsidiary, VersaBank USA. The acquisition is expected to be completed during the first quarter of calendar 2023.
MANAGEMENT COMMENTARY
"Continued strong year-over-year growth in the fourth quarter capped off an outstanding year that saw
"We enter 2023 with strong momentum and confidence in our ability to continue to generate strong growth in our loan portfolio that is in line with pre-2022 levels. We begin the year with nearly
Mr. Taylor added, "Additionally, we expect to see continued strong growth in revenue and gross profit and continued profitability at DBG as the demand for cybersecurity services continues to increase and DBG continues to expand its business activities with new and existing clients, while at the same time we continue to leverage the tremendous talent and assets within DRTC for growth initiatives within our Digital Banking operations."
FINANCIAL REVIEW
Consolidated
Net Income – Net income for the fourth quarter of fiscal 2022 was
Digital Banking Operations
Net Interest Margin – Net interest margin (or spread) for the quarter increased to
Net Interest Margin on Loans – Net interest margin on loans for the quarter decreased 4 bps, or
Net Interest Income – Net interest income for the quarter increased to a record
Non-Interest Expenses – Non-interest expenses for the quarter were
Provision for/Recovery of Credit Losses – Provision for credit losses for the quarter was
Capital – At October 31, 2022, VersaBank's total regulatory capital was
Credit Quality – Gross impaired loans at October 31, 2022 were
Lending Operations: POS Financing – The POS Financing portfolio for the fourth quarter increased
U.S. Receivable Purchase Program: Despite elevated inflation, higher gas prices and supply chain disruptions in the U.S., continued momentum in the job market and higher wages are expected to mitigate material declines in consumer spending, which in turn will support stable demand for durable goods and agricultural products which is expected to continue to stimulate transportation equipment purchases. Additionally, despite a cooling of the residential home market in the U.S., overall construction activity is expected to continue to expand modestly in the coming year, including residential homes, rental apartments, commercial properties, and public infrastructure which is anticipated to support demand for construction equipment in the near term. Moreover, despite higher borrowing costs and inflation, pent-up demand is anticipated to be sufficient to support manufacturers continuing to invest in process and equipment productivity initiatives in order to fulfil the current pipeline of orders in several end-use markets, including industrial machinery, materials handling equipment, and construction equipment. Management is of the view that the anticipated U.S. macroeconomic and industry trends set out above will be supportive of healthy balance sheet growth in the U.S. over the course of fiscal 2023 via the Bank's U.S. RPP, which will be focused on the provision of commercial equipment financing over the course of the same period. The Bank's U.S. RPP launched in a limited manner in the second quarter of fiscal 2022 with a large, North American, commercial transportation financing business focused on independent owner/operators and subsequent to the end of the fiscal 2022 year added its second partner.
Lending Operations: Commercial Lending – The Commercial Lending portfolio for the fourth quarter decreased
Deposit Funding – Cost of funds for the fourth quarter was
DRTC (Cybersecurity Services and Banking and Financial Technology Development)
Sales, which are generated entirely by DRTC's Cybersecurity Services business, Digital Boundary Group ("DBG"), increased
FINANCIAL HIGHLIGHTS
(unaudited) | for the three months ended | for the year ended | ||||||||
October 31 | October 31 | October 31 | October 31 | |||||||
($CDN thousands except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||
Results of operations | ||||||||||
Interest income | $ 42,072 | $ 23,924 | $ 126,817 | $ 89,488 | ||||||
Net interest income | 22,477 | 16,146 | 76,666 | 60,157 | ||||||
Non-interest income | 1,775 | 2,090 | 5,726 | 5,200 | ||||||
Total revenue | 24,252 | 18,236 | 82,392 | 65,357 | ||||||
Provision for (recovery of) credit losses | 205 | (279) | 451 | (438) | ||||||
Non-interest expenses | 13,774 | 10,377 | 49,393 | 35,006 | ||||||
Digital banking | 11,415 | 9,052 | 42,392 | 31,046 | ||||||
DRTC | 2,359 | 1,366 | 7,166 | 4,111 | ||||||
Net income | 6,429 | 5,910 | 22,658 | 22,380 | ||||||
Income per common share: | ||||||||||
Basic | $ 0.23 | $ 0.24 | $ 0.79 | $ 0.96 | ||||||
Diluted | $ 0.23 | $ 0.24 | $ 0.79 | $ 0.96 | ||||||
Dividends paid on preferred shares | $ 247 | $ 247 | $ 988 | $ 1,578 | ||||||
Dividends paid on common shares | $ 680 | $ 684 | $ 2,741 | $ 2,268 | ||||||
Yield* | 5.26 % | 4.04 % | 4.47 % | 4.11 % | ||||||
Cost of funds* | 2.45 % | 1.31 % | 1.77 % | 1.35 % | ||||||
Net interest margin* | 2.81 % | 2.73 % | 2.70 % | 2.76 % | ||||||
Net interest margin on loans* | 3.03 % | 3.31 % | 3.08 % | 3.35 % | ||||||
Return on average common equity* | 7.32 % | 8.07 % | 6.61 % | 8.45 % | ||||||
Book value per common share* | $ 12.37 | $ 11.61 | $ 12.37 | $ 11.61 | ||||||
Efficiency ratio* | 57 % | 57 % | 60 % | 54 % | ||||||
Efficiency ratio - Digital banking* | 51 % | 56 % | 55 % | 52 % | ||||||
Return on average total assets* | 0.77 % | 0.96 % | 0.76 % | 0.95 % | ||||||
Gross impaired loans to total loans* | 0.01 % | 0.00 % | 0.01 % | 0.00 % | ||||||
Provision for (recovery of) credit losses as a % of average loans* | 0.03 % | (0.05 %) | 0.02 % | (0.02 %) | ||||||
as at | ||||||||||
Balance Sheet Summary | ||||||||||
Cash | $ 88,581 | $ 271,523 | $ 88,581 | $ 271,523 | ||||||
Securities | 141,564 | - | 141,564 | - | ||||||
Loans, net of allowance for credit losses | 2,992,678 | 2,103,050 | 2,992,678 | 2,103,050 | ||||||
Average loans* | 2,903,400 | 2,027,602 | 2,547,864 | 1,878,980 | ||||||
Total assets | 3,265,998 | 2,415,086 | 3,265,998 | 2,415,086 | ||||||
Deposits | 2,657,540 | 1,853,204 | 2,657,540 | 1,853,204 | ||||||
Subordinated notes payable | 104,951 | 95,272 | 104,951 | 95,272 | ||||||
Shareholders' equity | 350,675 | 332,106 | 350,675 | 332,106 | ||||||
Capital ratios** | ||||||||||
Risk-weighted assets | $ 2,714,902 | $ 2,013,544 | $ 2,714,902 | $ 2,013,544 | ||||||
Common Equity Tier 1 capital | 325,657 | 305,708 | 325,657 | 305,708 | ||||||
Total regulatory capital | 448,575 | 418,718 | 448,575 | 418,718 | ||||||
Common Equity Tier 1 (CET1) capital ratio | 12.00 % | 15.18 % | 12.00 % | 15.18 % | ||||||
Tier 1 capital ratio | 12.50 % | 15.86 % | 12.50 % | 15.86 % | ||||||
Total capital ratio | 16.52 % | 20.80 % | 16.52 % | 20.80 % | ||||||
Leverage ratio | 9.84 % | 12.60 % | 9.84 % | 12.60 % | ||||||
* See definition under 'Non-GAAP and Other Financial Measures' in the Annual 2022 Management's Discussion and Analysis. | ||||||||||
** Capital management and leverage measures are in accordance with OSFI's Capital Adequacy Requirements and Basel III Accord. | ||||||||||
About VersaBank
VersaBank is a Canadian Schedule I chartered (federally licensed) bank with a difference. VersaBank became the world's first fully digital financial institution when it adopted its highly efficient business-to-business model in 1993 using its proprietary state-of-the-art financial technology to profitably address underserved segments of the Canadian banking market in the pursuit of superior net interest margins while mitigating risk. VersaBank obtains all of its deposits and provides the majority of its loans and leases electronically, with innovative deposit and lending solutions for financial intermediaries that allow them to excel in their core businesses. In addition, leveraging its internally developed IT security software and capabilities, VersaBank established wholly owned, Washington, DC-based subsidiary, DRT Cyber Inc. to pursue significant large-market opportunities in cyber security and develop innovative solutions to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities on a daily basis.
VersaBank's Common Shares trade on the Toronto Stock Exchange ("TSX") and Nasdaq under the symbol VBNK. Its Series 1 Preferred Shares trade on the TSX under the symbol VBNK.PR.A.
Forward-Looking Statements
VersaBank's public communications often include written or oral forward-looking statements. Statements of this type are included in this document, and may be included in other filings and with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. 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 and U.S. economy in general and the strength of the local economies within Canada and U.S. 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 and the U.S. Federal Reserve; 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 wars or conflicts including the crisis in Ukraine and the impact of the crisis on global supply chains; the impact of new variants of COVID-19 and the Bank's 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, 2022.
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.
Conference Call
VersaBank will be hosting a conference call and webcast today, Wednesday, December 7, 2022, at 9:00 a.m. (EST) to discuss its fourth quarter results, featuring a presentation by David Taylor, President & CEO, and other VersaBank executives, followed by a question and answer period.
Dial-in Details
Toll-free dial-in number: | 1 (888) 664-6392 (Canada/U.S.) |
Local dial-in number: | (416) 764-8659 |
Please call between 8:45 a.m. and 8:55 a.m. (EST).
Webcast Access: For those preferring to listen to the conference call via the Internet, a webcast of Mr. Taylor's presentation will be available via the internet, accessible here https://app.webinar.net/8eaAkKpz0Xl or from the Bank's web site.
Instant Replay
Toll-free dial-in number: | 1 (888) 390-0541 (Canada/U.S.) |
Local dial-in number: | (416) 764-8677 |
Passcode: | 447170# |
Expiry Date: | January 7th, 2022, at 11:59 p.m. (EST) |
The archived webcast presentation will also be available via the Internet for 90 days following the live event at https://app.webinar.net/8eaAkKpz0Xl and on the Bank's web site.
Visit our website at: www.versabank.com
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View original content to download multimedia:https://www.prnewswire.com/news-releases/versabank-reports-record-fourth-quarter-and-fiscal-2022-financial-results-301696991.html
SOURCE VersaBank
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