Versabank Stock Price, News & Analysis

VersaBank (VBNK) reported strong Q2 2025 results with record total assets of $5.0 billion, up 15% YoY and 2% QoQ, driven by growth in Digital Banking operations. Total revenue reached a record $30.1 million, increasing 6% YoY and 8% QoQ. Net income was $8.5 million ($0.26 per share), compared to $11.8 million ($0.45 per share) in Q2 2024. The US Receivable Purchase Program showed significant growth, with the bank targeting US$290 million by fiscal year end. Net interest margin on credit assets improved to 2.59%. The bank announced plans to realign its corporate structure to a US bank framework, aiming for inclusion in indices like Russell 2000. VersaBank also implemented a Normal Course Issuer Bid to purchase up to 2 million common shares for cancellation.

VersaBank (NASDAQ: VBNK) announced plans to realign its corporate structure to match the standard US bank framework. Under this proposed change, VersaHoldings US Corp will become the new US-domiciled parent company, with existing VersaBank shares being exchanged for new VersaHoldings shares listed on Nasdaq and TSX. The restructuring will cost approximately CAD$8 million (1.5% of current market cap) and is expected to complete in Q3-Q4 2025. The bank also announced leadership changes: David Taylor will step down as VersaBank CEO while retaining other roles, Susan McGovern will become interim CEO, and Hon. Frank Newbould has been appointed as new Board Chair. The restructuring requires shareholder, regulatory, and other approvals from various authorities including OCC, Federal Reserve, and Canadian Minister of Finance.

VersaBank (TSX: VBNK) (NASDAQ: VBNK) has received approval from the Toronto Stock Exchange for a Normal Course Issuer Bid (NCIB) to repurchase up to 2,000,000 common shares, representing approximately 8.99% of its public float. The share buyback program will run from April 30, 2025 to April 29, 2026.

The bank's public float consists of 22,237,283 common shares, with 32,518,786 total shares outstanding. Daily purchases will be to 9,440 shares, except for block purchases. All shares purchased through the NCIB will be cancelled.

CEO David Taylor highlighted the bank's significant year-over-year profitability growth in fiscal 2025, citing improvements in efficiency ratio and return on common equity despite challenging conditions in the North American banking sector.

VersaBank (TSX: VBNK) (NASDAQ: VBNK) held its 2025 Annual Meeting of Shareholders on April 24, 2025, in London, Ontario. The meeting resulted in the successful election of all director nominees listed in the Bank's Management Information Circular dated February 28, 2025.

The voting results showed strong shareholder support for all directors, with approval ratings ranging from 93.61% to 99.08%. David R. Taylor received the highest approval at 99.08%, while Susan T. McGovern received 93.61% of votes in favor. Additionally, shareholders approved the appointment of Ernst & Young LLP as the Bank's auditors.

VersaBank (TSX: VBNK) (NASDAQ: VBNK) has announced its upcoming annual shareholders meeting will be held at the VersaBank Innovation Centre of Excellence in London, Ontario on April 24, 2025 at 10:30 a.m. The meeting will be uniquely livestreamed from the Nasdaq MarketSite in New York City.

Additionally, the bank's Founder, President and CEO David Taylor, along with VersaBank USA President Tel Matrundola, will participate in the Nasdaq Stock Market Closing Bell ceremony on April 25, 2025 at 4:00 p.m. ET. The ceremony will be livestreamed through Nasdaq's official channels.

VersaBank (TSX: VBNK) (NASDAQ: VBNK) has secured its second US Receivable Purchase Program (RPP) partner and surpassed US$70 million in US RPP assets within 75 days of launching the program. The bank is on track to reach US$290 million in US RPP assets in fiscal 2025.

The bank reports meaningful expansion in net interest margin (NIM) for Q2 2025, driven by yield curve normalization, replacement of higher-rate term deposits, growth in Insolvency Professional deposits, and addition of higher-margin US RPP assets. VersaBank has also added BMO Nesbitt Burns to its deposit broker network.

Additionally, VersaBank's CMHC-insured loan commitments have reached over $730 million, with $266 million in outstanding loans, progressing toward their $1 billion fiscal year-end target. These zero risk-weighted loans generate attractive spreads contributing to credit asset net interest margin.

VersaBank (TSX, NASDAQ: VBNK) has announced its participation in the upcoming 37th Annual ROTH Conference, scheduled for March 16-18, 2025, in Dana Point, California. The bank's management team will be available for one-on-one meetings with institutional investors throughout the conference. Interested institutional investors are advised to contact their ROTH representative to schedule meetings with VersaBank's management.

VersaBank (TSX: VBNK; NASDAQ: VBNK) has announced a quarterly cash dividend declaration for its shareholders. The bank will distribute CAD $0.025 per Common Share for the quarter ending April 30, 2025. The dividend payment is scheduled for April 30, 2025, with the record date set for April 4, 2025. The company has confirmed these dividends qualify as eligible dividends for tax purposes.

VersaBank (TSX: VBNK) (NASDAQ: VBNK) reported its Q1 2025 results, highlighting significant developments in its digital banking operations. The bank achieved record total assets of $5.0 billion, up 15% year-over-year, driven primarily by growth in its Receivable Purchase Program (RPP) portfolio.

Key financial metrics include consolidated revenue of $27.8 million (down 4% YoY), net income of $8.1 million, and earnings per share of $0.28. The bank successfully completed an equity offering raising US$86.3 million (approximately CAD$124.2 million).

Notable developments include:

• First post-acquisition partnership for US RPP with Watercress Financial Group
• Credit assets increased 9% YoY to $4.35 billion
• Net interest margin on credit assets at 2.36%
• Provision for credit losses remained low at 0.09%