– Quarter Highlighted by Another Record
Loan Portfolio, Driven by 75% Year-Over-Year Growth in Canadian
Point-of-Sale Financing Business, and Record Revenue and Record Net
Interest Income –
All amounts are unaudited and in Canadian dollars and are
based on financial statements prepared in compliance with
International Accounting Standard 34 Interim Financial Reporting,
unless otherwise noted. Our third quarter 2022 ("Q3 2022")
unaudited Interim Consolidated Financial Statements for the period
ended July 31, 2022 and Management's
Discussion and Analysis ("MD&A"), are available 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.
LONDON,
ON, Aug. 31, 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 third quarter of 2022 ended July 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
nine months ended
|
(thousands of Canadian
dollars except per share amounts)
|
July 31
2022
|
April 30
2022
|
Change
|
July 31
2021
|
Change
|
July 31
2022
|
July 31
2021
|
Change
|
Financial
results
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
21,239
|
$
18,635
|
14 %
|
$
15,729
|
35 %
|
$
58,140
|
$
47,121
|
23 %
|
|
Cost of
funds(1)
|
1.94 %
|
1.38 %
|
41 %
|
1.41 %
|
38 %
|
1.49 %
|
1.36 %
|
10 %
|
|
Net interest
margin(1)
|
2.76 %
|
2.77 %
|
0 %
|
2.61 %
|
6 %
|
2.64 %
|
2.78 %
|
(5 %)
|
|
Net interest margin on
loans(1)
|
3.07 %
|
3.11 %
|
(1 %)
|
3.23 %
|
(5 %)
|
3.04 %
|
3.43 %
|
(11 %)
|
|
Net
income
|
5,720
|
4,943
|
16 %
|
5,436
|
5 %
|
16,229
|
16,470
|
(1 %)
|
|
Net income per common
share basic and diluted
|
0.20
|
0.17
|
18 %
|
0.25
|
(20 %)
|
0.56
|
0.72
|
(22 %)
|
Balance sheet and
capital ratios
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
3,075,343
|
$
2,692,146
|
14 %
|
$
2,285,771
|
35 %
|
$
3,075,343
|
$
2,285,771
|
35 %
|
|
Book value per common
share(1)
|
12.14
|
11.94
|
2 %
|
11.29
|
8 %
|
12.14
|
11.29
|
8 %
|
|
Common Equity Tier 1
(CET1) capital ratio
|
12.51 %
|
13.66 %
|
(8 %)
|
11.94 %
|
5 %
|
12.51 %
|
11.94 %
|
5 %
|
|
Total capital
ratio
|
17.05 %
|
18.68 %
|
(9 %)
|
17.93 %
|
(5 %)
|
17.05 %
|
17.93 %
|
(5 %)
|
|
Leverage
ratio
|
10.38 %
|
11.63 %
|
(11 %)
|
9.99 %
|
4 %
|
10.38 %
|
9.99 %
|
4 %
|
|
(1) See definitions
under 'Non-GAAP and Other Financial Measures' in the Q3 2022
Management's Discussion and Analysis.
|
(thousands of Canadian
dollars)
|
for the three months
ended
|
July 31,
2022
|
April 30,
2022
|
July 31,
2021
|
|
|
Digital
Banking
|
DRTC
|
Eliminations/
Adjustments
|
Consolidated
|
Digital
Banking
|
DRTC
|
Eliminations/
Adjustments
|
Consolidated
|
Digital
Banking
|
DRTC
|
Eliminations/
Adjustments
|
Consolidated
|
Net interest
income
|
$
20,062
|
$
-
|
$
-
|
$
20,062
|
$
17,242
|
$
-
|
$
-
|
$
17,242
|
$
14,542
|
$
-
|
$
-
|
$
14,542
|
Non-interest
income
|
12
|
1,206
|
(41)
|
1,177
|
1
|
1,434
|
(42)
|
1,393
|
2
|
1,226
|
(41)
|
1,187
|
Total
revenue
|
20,074
|
1,206
|
(41)
|
21,239
|
17,243
|
1,434
|
(42)
|
18,635
|
14,544
|
1,226
|
(41)
|
15,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (recovery
of) credit losses
|
166
|
-
|
-
|
166
|
78
|
-
|
-
|
78
|
96
|
-
|
-
|
96
|
|
|
19,908
|
1,206
|
(41)
|
21,073
|
17,165
|
1,434
|
(42)
|
18,557
|
14,448
|
1,226
|
(41)
|
15,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
5,600
|
1,168
|
-
|
6,768
|
5,586
|
1,140
|
-
|
6,726
|
4,411
|
442
|
-
|
4,853
|
|
General and
administrative
|
5,217
|
343
|
(41)
|
5,519
|
3,761
|
300
|
(42)
|
4,019
|
2,286
|
169
|
(41)
|
2,414
|
|
Premises and
equipment
|
610
|
319
|
-
|
929
|
659
|
363
|
-
|
1,022
|
607
|
326
|
-
|
933
|
|
|
11,427
|
1,830
|
(41)
|
13,216
|
10,006
|
1,803
|
(42)
|
11,767
|
7,304
|
937
|
(41)
|
8,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
8,481
|
(624)
|
-
|
7,857
|
7,159
|
(369)
|
-
|
6,790
|
7,144
|
289
|
-
|
7,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
2,099
|
38
|
-
|
2,137
|
1,744
|
103
|
-
|
1,847
|
1,904
|
93
|
-
|
1,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
6,382
|
$ (662)
|
$
-
|
$
5,720
|
$
5,415
|
$ (472)
|
$
-
|
$
4,943
|
$
5,240
|
$
196
|
$
-
|
$
5,436
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
3,076,611
|
$
21,796
|
$
(23,064)
|
$
3,075,343
|
$
2,692,510
|
$
21,386
|
$
(21,750)
|
$
2,692,146
|
$
2,285,882
|
$
18,323
|
$
(18,434)
|
$
2,285,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
2,725,820
|
$
24,794
|
$
(21,919)
|
$
2,728,695
|
$
2,347,610
|
$
23,727
|
$
(20,605)
|
$
2,350,732
|
$
2,030,180
|
$
20,848
|
$
(17,289)
|
$
2,033,739
|
HIGHLIGHTS FOR THE THIRD QUARTER OF 2022
Consolidated
- Consolidated revenue increased 35% year-over-year and 14%
sequentially to a record $21.2
million due to higher net interest income generated by the
Digital Banking operations (driven primarily by strong loan growth
of 44% year-over-year and 15% sequentially);
- Consolidated net income increased 5% year-over-year and 16%
sequentially to $5.7 million, driven
by higher revenue and offset partially by higher non-interest
expense related to strategic investments in the Bank's business
development initiatives including the acquisition of a U.S. bank,
the development of the U.S. Receivable Purchase Program ("RPP") and
preparation for commercial launch of the Canadian-dollar version of
VersaBank's Digital Deposit Receipts; and,
- Consolidated earnings per share was $0.20, a decrease of 20% year-over-year and an
increase of 18% sequentially, with the year-over-year decrease
being a function of the higher number of shares outstanding
following the issuance of 6.3 million common shares via the Bank's
U.S. IPO on the Nasdaq in September
2021 (the "Common Share Offering").
Digital Banking Operations
- Loans increased 44% year-over-year and 15% sequentially to a
record $2.81 billion driven by growth
in the Bank's Point-of-Sale ("POS") Financing portfolio, which
increased 75% year-over-year and 24% sequentially;
- Digital Banking revenue increased 38% year-over-year and 16%
sequentially to a record $20.1
million;
- Net interest margin increased 15 bps, or 6%, year-over-year and
decreased 1 bps, or less than 1%, sequentially to 2.76%, while net
interest margin on loans decreased 16 bps, or 5%, year-over-year
and decreased 4 bps, or 1% sequentially, to 3.07%;
- Provision for Credit Losses ("PCLs") as a percentage of average
loans was 0.03%, compared with a 12-quarter average of -0.01%,
which remains amongst the lowest of the publicly traded Canadian
Schedule I (federally licensed) Banks;
- 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
USD$13.5 million (CAD$17.4 million). The transaction is anticipated
to close before December 31, 2022,
subject to customary closing conditions, including regulatory
approval by both the Office of the Comptroller of the Currency,
("OCC") in the US and the Office of the Superintendent of Financial
Institutions, ("OSFI") in Canada;
- Subsequent to the end of the quarter, on August 18, 2022, the Canadian Office of the
Superintendent of Financial Institutions published an advisory,
Interim arrangements for the regulatory capital and liquidity
treatment of cryptoasset exposures. VersaBank believes
its Digital Deposit Receipt model to be consistent with the content
of OSFI's advisory as VersaBank continues to evolve its model
amidst the changing macro-environment.
- Subsequent to quarter end, 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. If fully
executed, the impact of the NCIB will not have a material impact on
the Bank's regulatory capital levels and ratios.
DRTC (Cybersecurity Services and Banking and Financial
Technology Development)
- Revenue and gross profit, which are generated by DRT Cyber
Inc.'s, ("DRTC") cybersecurity services business, increased 7% and
decreased 2% year-over-year, respectively, and decreased 12% and
17% sequentially to $2.1 million and
$1.2 million, respectively, with the
sequential decreases being a function of lower engagements in the
current quarter; and,
- Net loss of $0.7 million compared
to net income of $0.2 million in the
third quarter of 2021 and net loss of $0.5
million in the second quarter of 2022, with the net losses
being primarily attributable to higher costs related to investment
in specific strategic growth initiatives (including continued
preparation for commercial launch of the Canadian-dollar version of
the Bank's digital deposit receipts).
MANAGEMENT COMMENTARY
"The third quarter of 2022 saw continued strong momentum in loan
growth in our core Digital Banking operations as a 75%
year-over-year increase in our Canadian Point-of-Sale financing
business drove our loan portfolio to another new high at more than
$2.8 billion," said David Taylor, President and Chief Executive
Officer, VersaBank. "Our significant loan growth contributed
to record quarterly revenue and record net interest income, and we
returned to year-over-year and sequential growth in net income,
even as our profitability was dampened by costs totaling
approximately $3.0 million related to
investments in multiple strategic growth initiatives, including our
U.S. bank acquisition, our U.S. Receivable Purchase Program
business and the Canadian-dollar version of our revolutionary
Digital Deposit Receipts, all of which we expect will contribute to
accelerated growth in both the short- and long-terms, as well as
transitory costs associated with our Nasdaq listing last September.
Importantly, during this period of significant loan growth, we
increased net interest margin year-over-year. We expect continued
strong performance for the remainder of the year and into 2023,
driven by continued momentum in the Canadian Point-of-Sale
business, incremental ramp up of the U.S. Receivable Purchase
Program, as well as growth in the Cybersecurity Services component
of DRTC, as we benefit from the significant investments made in
2022."
"Of critical importance during the third quarter, we took a
transformational next step in VersaBank's long-term growth strategy
with the signing of a definitive agreement to acquire a fully
operational, OCC-chartered U.S. bank, Stearns Bank Holdingford,
which will be renamed VersaBank USA upon closing, and will provide VersaBank
with a platform from which to offer our unique and immensely
successful Receivable Purchase Program (known in Canada as our Point-of-Sale Financing
business) to the underserved U.S. market. Early response to
our limited early roll out in the US $1.8
trillion and growing U.S. consumer and small business
point-of-sale financing market continues to be very encouraging and
we look forward to closing on this transaction to be able to fully
capitalize on this opportunity."
FINANCIAL REVIEW
Consolidated
Net Income – Net income for the third quarter of
2022 was $5.7 million, or
$0.20 per common share (basic and
diluted), compared to $4.9 million,
or $0.17 per common share (basic and
diluted) last quarter and $5.4
million, or $0.25 per common
share (basic and diluted), for the same period a year ago. The
year-over-year and quarter-over-quarter increases were a function
of higher revenue attributable primarily to lending asset growth
offset partially by higher non-interest expense attributable to
investments in the Bank's business development initiatives
including, but not limited to, the acquisition of a U.S. national
bank, the development of the U.S. RPP and preparation for
commercial launch of the Canadian-dollar version of VersaBank's
Digital Deposit Receipts. Investments associated with the
acquisition and business of the U.S. bank are anticipated to be
realized substantially by the end of the current fiscal year. The
year-over-year trend also reflects the impact of higher insurance
premiums attributable to VersaBank's listing on the Nasdaq in
September 2021, higher salary and
benefits costs, and higher office expense resulting from the
implementation of VersaBank's return-to-work strategy, as well as
the impact of a $166,000 provision
for credit losses in the current quarter compared to a provision
for credit losses in the amount of $96,000 a year ago.
Digital Banking Operations
Net Interest Margin – Net interest margin (or
spread) for the quarter was 2.76% compared to 2.77% for the second
quarter of 2022 and 2.61% for the same period a year ago. The
year-over-year increase is primarily the result of deploying cash
balances into higher yield, high quality securities.
Net Interest Margin on Loans – Net interest margin on
loans for the quarter was 3.07% compared to 3.11% for the second
quarter of 2022 and 3.23% for the same period a year ago. These
trends are primarily the result of higher cost of funds
attributable to changes in the Bank's funding mix, as well as
the Bank's strategy to grow its POS Financing portfolio.
Net Interest Income – Net interest income for the
quarter was $20.1 million compared to
$17.2 million for the second
quarter of 2022 and $14.5 million for
the same period a year ago. The quarter-over-quarter and year-over
year trends were a function primarily of higher interest
income earned on higher lending asset balances and redeployment of
available cash into higher yielding, low risk securities, offset
partially by higher interest expense attributable to higher deposit
balances.
Non-Interest Expenses – Non-interest expenses for
the quarter were $13.2 million
compared to $11.8 million for the
second quarter of 2022 and $8.2
million for the same period a year ago. The year-over-year
and sequential trends were a function primarily of strategic
investments in the Bank's business development initiatives
including, but not limited to, the acquisition of a U.S. national
bank, the development of the U.S. RPP program, and preparation for
commercial launch of the Canadian-dollar version of VersaBank's
Digital Deposit Receipts. The year-over-year trend was also a
function of higher insurance premiums attributable to
VersaBank's listing on the Nasdaq in September 2021, higher salary and benefits
expense attributable to higher staffing levels to support expanded
business activity across VersaBank, higher costs associated with
employee retention and higher office and facility related costs
attributable to implementation of the Bank's return-to-work
strategy. Investments associated with the acquisition and business
of the U.S. bank are anticipated to be realized substantially by
the end of the current fiscal year.
Provision for/Recovery of Credit Losses – Provision
for credit losses for the quarter was $166,000 compared to a provision for credit
losses of $78,000 for the second
quarter of 2022 and a provision for credit losses of $96,000 for the same period a year ago. The
year-over-year and sequential trends were a function primarily of
higher lending asset balances and changes in the forward-looking
information used by VersaBank in its credit risk models in the
current quarter, offset partially by changes in the Bank's lending
asset portfolio mix.
Capital – At July 31,
2022, VersaBank's total regulatory capital was $438 million compared to $432 million at April 30,
2022 and $340 million at
July 31, 2021 and the Bank's CET1
capital ratio was 12.51%, compared 13.66% at April 30, 2022 and 11.94% at July 31, 2021. The sequential capital ratio
trends were a function primarily of retained earnings growth and
changes to the Bank's risk-weighted asset balances and composition.
The year-over-year trends were a function primarily of the Common
Share Offering in September 2021,
retained earnings growth and changes to the Bank's risk-weighted
asset balances and composition.
Credit Quality – Gross impaired loans at July 31, 2022 were $1.4
million, $1.0 million of which
was repaid on August 2, 2022, with
the remainder scheduled to be repaid in early September 2022, compared to $nil last quarter and
a year ago. The Bank's allowance for expected credit losses, or ECL
at July 31, 2022 was $1.70 million compared to $1.53 million last quarter and $1.73 million a year ago. The
quarter-over-quarter and year-over-year ECL trends were a function
primarily of the factors set out in the Provision for/Recovery
of Credit Losses section above. VersaBank's Provision for
Credit Losses ratio continues to be one of the lowest in the
Canadian banking industry, reflecting the very low risk profile of
the Bank's lending portfolio, enabling it to generate superior net
interest margins by offering innovative, high-value deposit and
lending solutions that address unmet needs in the banking industry
through a highly efficient partner model.
Lending Operations: POS Financing – The POS
Financing portfolio for the third quarter of 2022 increased 75%
year-over-year and 24% sequentially to $2.0
billion as a function primarily of continued strong demand
for home finance (albeit at a somewhat tempered rate), home
improvement/HVAC receivable financing, and auto financing. Consumer
spending in Canada is expected to
remain stable as a tight labour market and higher wages mitigate
the impact of higher interest rates and persistent inflation. The
anticipated addition of new origination partners in both
Canada and the U.S. are expected
to contribute to continued strong growth in the Bank's POS
Financing portfolio over the remainder of fiscal 2022.
Lending Operations: Commercial Lending – The
Commercial Lending portfolio for the third quarter of 2022
increased 1% year-over-year and decreased 3% sequentially to
$804 million. VersaBank
anticipates modest growth in the commercial mortgage sector over
the remainder of fiscal 2022, specifically related to financing for
residential housing property development.
Deposit Funding – Cost of funds for the third quarter of
2022 was 1.94%, up 56 bps sequentially and 53 bps year-over-year
attributable primarily to the higher interest rate environment in
which the Bank of Canada has
increased its benchmark rate by 150 bps over the current quarter.
Management continues to expect that commercial deposit volumes
raised via VersaBank's Trustee Integrated Banking ("TIB") program
will return to growth in early fiscal 2023 as a function of an
increase in the volume of consumer bankruptcy and proposal
restructuring proceedings over the same timeframe attributable
primarily to the Bank of Canada
continuing to tighten monetary policy over at least the next two to
three quarters. Further, VersaBank continues to grow and expand its
well-established, diverse deposit broker network through which it
sources personal deposits, consisting primarily of guaranteed
investment certificates. Commercial deposits at
July 31, 2022 were $591 million, down 1% year-over-year and down 3%
sequentially.
DRTC (Cybersecurity Services and Banking and Financial
Technology Development)
For the third quarter of 2022, DRTC revenue and gross profit,
which are generated by DRTC cybersecurity services business,
increased 7% and decreased 2% year-over-year, respectively, and
decreased 12% and 17% sequentially to $2.1
million and $1.2 million,
respectively, with the sequential decreases being a function
of lower engagements in the current quarter. DRTC recorded a
net loss for the quarter of $662,000
compared to net income of $196,000 a
year ago and a net loss of $472,000
for the second quarter of 2022. The year-over-year and sequential
trends were a function primarily of lower gross profit generated by
DRTC and higher costs related to investments in specific strategic
growth initiatives and new product development, including the
preparation for commercial launch of the Canadian-dollar version of
the Bank's Digital Deposit Receipts.
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
(unaudited)
|
for the three months
ended
|
|
for the nine months
ended
|
($CDN thousands except
per share amounts)
|
July 31
2022
|
July 31
2021
|
|
July 31
2022
|
July 31
2021
|
Results of
operations
|
|
|
|
|
|
|
Interest
income
|
$
34,177
|
$
22,400
|
|
$
84,745
|
$
65,564
|
|
Net interest
income
|
20,062
|
14,542
|
|
54,189
|
44,011
|
|
Non-interest
income
|
1,177
|
1,187
|
|
3,951
|
3,110
|
|
Total
revenue
|
21,239
|
15,729
|
|
58,140
|
47,121
|
|
Provision for (recovery
of) credit losses
|
166
|
96
|
|
246
|
(159)
|
|
Non-interest
expenses
|
13,216
|
8,200
|
|
35,619
|
24,629
|
|
|
Digital
Banking
|
11,427
|
7,304
|
|
30,936
|
21,994
|
|
|
DRTC
|
1,830
|
937
|
|
4,807
|
2,745
|
|
Net
income
|
5,720
|
5,436
|
|
16,229
|
16,470
|
|
Income per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.20
|
$
0.25
|
|
$
0.56
|
$
0.72
|
|
|
Diluted
|
$
0.20
|
$
0.25
|
|
$
0.56
|
$
0.72
|
|
Dividends paid on
preferred shares
|
$
247
|
$
247
|
|
$
741
|
$
1,331
|
|
Dividends paid on
common shares
|
$
687
|
$
528
|
|
$
2,061
|
$
1,584
|
|
Yield*
|
4.70 %
|
4.02 %
|
|
4.13 %
|
4.14 %
|
|
Cost of
funds*
|
1.94 %
|
1.41 %
|
|
1.49 %
|
1.36 %
|
|
Net interest
margin*
|
2.76 %
|
2.61 %
|
|
2.64 %
|
2.78 %
|
|
Net interest margin on
loans*
|
3.07 %
|
3.23 %
|
|
3.04 %
|
3.43 %
|
|
Return on average
common equity*
|
6.57 %
|
8.72 %
|
|
6.36 %
|
8.72 %
|
|
Book value per common
share*
|
$
12.14
|
$
11.29
|
|
$
12.14
|
$
11.29
|
|
Efficiency
ratio*
|
62 %
|
52 %
|
|
61 %
|
52 %
|
|
Efficiency ratio -
Digital Banking*
|
57 %
|
50 %
|
|
57 %
|
50 %
|
|
Return on average total
assets*
|
0.75 %
|
0.93 %
|
|
0.75 %
|
0.96 %
|
|
Gross impaired loans to
total loans*
|
0.05 %
|
0.00 %
|
|
0.05 %
|
0.00 %
|
|
Provision (recovery)
for credit losses as a % of average loans*
|
0.03 %
|
0.02 %
|
|
0.01 %
|
(0.01 %)
|
|
|
as at
|
Balance Sheet
Summary
|
|
|
|
|
|
|
Cash
|
$
84,214
|
$ 297,005
|
|
$
84,214
|
$ 297,005
|
|
Securities
|
133,682
|
-
|
|
133,682
|
-
|
|
Loans, net of allowance
for credit losses
|
2,814,121
|
1,952,154
|
|
2,814,121
|
1,952,154
|
|
Average
loans*
|
2,632,199
|
1,890,965
|
|
2,458,586
|
1,803,532
|
|
Total assets
|
3,075,343
|
2,285,771
|
|
3,075,343
|
2,285,771
|
|
Deposits
|
2,475,063
|
1,817,746
|
|
2,475,063
|
1,817,746
|
|
Subordinated notes
payable
|
98,706
|
95,683
|
|
98,706
|
95,683
|
|
Shareholders'
equity
|
346,648
|
252,032
|
|
346,648
|
252,032
|
Capital
ratios**
|
|
|
|
|
|
|
Risk-weighted
assets
|
$
2,568,678
|
$
1,897,695
|
|
$
2,568,678
|
$
1,897,695
|
|
Common Equity Tier 1
capital
|
321,386
|
226,516
|
|
321,386
|
226,516
|
|
Total regulatory
capital
|
437,912
|
340,270
|
|
437,912
|
340,270
|
|
Common Equity Tier 1
(CET1) ratio
|
12.51 %
|
11.94 %
|
|
12.51 %
|
11.94 %
|
|
Tier 1 capital
ratio
|
13.04 %
|
12.66 %
|
|
13.04 %
|
12.66 %
|
|
Total capital
ratio
|
17.05 %
|
17.93 %
|
|
17.05 %
|
17.93 %
|
|
Leverage
ratio
|
10.38 %
|
9.99 %
|
|
10.38 %
|
9.99 %
|
* See definitions under
'Non-GAAP and Other Financial Measures' in the Q3 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 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, 2021.
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, August 31, 2022, at
9:00 a.m. (EDT) to discuss its third
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. (EDT).
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/aZgOrVWj5yv 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:
|
092643#
|
Expiry
Date:
|
September 30th, 2022,
at 11:59 p.m. (EDT)
|
The archived webcast presentation will also be available via the
Internet for 90 days following the live event at
https://app.webinar.net/aZgOrVWj5yv and on the Bank's web
site.
Visit our website at: www.versabank.com
Follow VersaBank on Facebook, Instagram, LinkedIn and
Twitter
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SOURCE VersaBank