Latest news with #VersaBank
Cision Canada
9 hours ago
- Business
- Cision Canada
VERSABANK PRESIDENT DAVID TAYLOR TO PRESENT ON THE BANK'S REVOLUTIONARY DIGITAL DEPOSIT RECEIPTS AT FLORIDA BANKERS ASSOCIATION ANNUAL MEETING
LONDON, ON, June 9, 2025 /CNW/ - 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 announced David Taylor, President of VersaBank, will present on the Bank's revolutionary Digital Deposit Receipts (DDRs) at the Florida Bankers Association's Annual Meeting on Wednesday, June 11, 2025 at 11:00 a.m. In a session titled Introducing the Ultimate Stablecoin – The Only USD Digital Deposit Receipt. Mr. Taylor's presentation will discuss the value of VersaBank's tested, market-ready Digital Deposit Receipts to enable banks of any scale to issue a stablecoin that represents actual deposits with the bank. Mr. Taylor's live address will be available only to those attending in person, however, his presentation slides will be posted to the VersaBank web site following the event. "It is an honour to speak directly to the banking industry about our proprietary Digital Deposit Receipts, which take the concept of a stablecoin to an entirely new level," said David Taylor, President, VersaBank. "With the US Administration's favourable view toward digital assets, we are now seeing the largest banks in the country, as well as the thousands of community banks, exploring the use of stablecoins to modernize payments. Our Digital Deposit Receipt solution is built by a bank, for banks, designed to seamlessly integrate with existing bank software systems while addressing the major concerns of regulators, complete with SOC2 compliance and the highest military grade security. I look forward to showcasing our market ready solution, which seamlessly integrates with existing banking software, as we look to capitalize on this significant opportunity that exists alongside the growth we expect from our Digital Banking operations." ABOUT VERSABANK VersaBank is a North American bank with a difference. Federally chartered in both Canada and the US, VersaBank has a branchless, digital, business-to-business model based on its proprietary state-of-the-art technology that enables it to profitably address underserved segments of the banking industry in a significantly risk mitigated manner. Because VersaBank obtains substantially all of its deposits and undertakes the majority of its funding electronically through financial intermediary partners, it benefits from significant operating leverage that drives efficiency and return on common equity. In August 2024, VersaBank broadly launched its unique Receivable Purchase Program funding solution for point-of-sale finance companies, which has been highly successful in Canada for nearly 15 years, to the underserved multi-trillion-dollar US market. VersaBank also owns Washington, DC-based DRT Cyber Inc., a North America leader in the provision of cyber security services to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities. Through its wholly owned subsidiary, Digital Meteor Inc. ("Digital Meteor"), VersaBank owns proprietary intellectual property and technology to enable the next generation of digital assets for the banking and financial community, including the Bank's revolutionary Digital Deposit Receipts ("DDRs"). VersaBank's Common Shares trade on the Toronto Stock Exchange and NASDAQ under the symbol VBNK.
Yahoo
4 days ago
- Business
- Yahoo
VersaBank (VBNK) Q2 2025 Earnings Call Highlights: Record Growth Amid Structural Realignment
Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. VersaBank (NASDAQ:VBNK) reported record credit assets and revenue, driven by growth in both Canadian and US portfolios. The bank's net interest margin expanded significantly, contributing to improved financial performance. VersaBank (NASDAQ:VBNK) is undergoing a structural realignment to align with a standard US bank framework, expected to enhance shareholder value and reduce costs. The Canadian residential construction loan portfolio and US receivable purchase program showed strong growth. The bank's insolvency deposits increased by 22% year over year, providing a low-cost funding source. Preliminary costs associated with the proposed structural realignment negatively impacted earnings. The bank faced an atypically large non-cash loss due to foreign exchange translation of US subsidiary assets. The US operations, while profitable, are still in the early stages and reflect a cost structure for future growth. The Canadian economy's challenging environment for consumer spending may limit growth potential. VersaBank (NASDAQ:VBNK) incurred higher operating expenses in its cybersecurity segment, leading to a net loss. Warning! GuruFocus has detected 3 Warning Signs with VBNK. Q: What is the expected timeline for reaching the $1 billion target in insolvency deposits, and what is the outlook for net interest margin (NIM) expansion? A: David Taylor, President and CEO, stated that they expect to reach the $1 billion target by the end of the calendar year, given the current growth rate of 22% year over year. Despite the challenging economic environment in Canada, this growth is supported by economically priced deposits. Regarding NIM expansion, Taylor noted a 29 basis point sequential increase in credit assets, with favorable conditions such as maturing GICs at lower rates. However, the flat yield curve may dampen further expansion in the short term. Q: How should we think about non-interest expenses excluding realignment costs, and what are the expected annual savings from redomiciling in the US? A: David Taylor mentioned that excluding one-time expenditures related to the reorganization, there might be a slight increase in US bank expenses due to one more hire, but it should stabilize. The expected annual savings from redomiciling in the US are estimated to be around $2 million to $3 million once the reorganization is complete. Q: Can you provide an update on the sale of DRTC Cyber and the timeline for this process? A: David Taylor indicated that they are in the final stages of engaging a firm to manage the sale of DRTC Cyber. They expect to have a deal completed by the end of the fiscal year. The business is popular due to the increasing demand for cybersecurity services, particularly in penetration testing. Q: How are conversations with new partners in the US progressing, and how many new programs do you expect to launch by the end of the year? A: David Taylor reported that conversations are progressing well, with three partners already signed up. They hope to have another three signed by the end of the year, although the onboarding process is taking longer than anticipated due to legal differences between the US and Canada. Q: What are the current credit trends in the commercial real estate (CRE) book, and how are charge-offs being managed? A: David Taylor clarified that the charge-offs are related to the US portfolio acquired with the US bank purchase and not the Canadian real estate area. The Canadian real estate market is currently in turmoil, requiring careful lending practices. VersaBank focuses on government-insured CMHC mortgages and long-standing clients to mitigate risks. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
VersaBank (VBNK) Misses Q2 Earnings and Revenue Estimates
VersaBank (VBNK) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -14.29%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.20, delivering a surprise of -31.03%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. VersaBank , which belongs to the Zacks Banks - Foreign industry, posted revenues of $21.21 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 0.54%. This compares to year-ago revenues of $21.01 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. VersaBank shares have lost about 16.5% since the beginning of the year versus the S&P 500's gain of 1.5%. While VersaBank has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for VersaBank: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.27 on $24.05 million in revenues for the coming quarter and $1.15 on $91.78 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the top 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Finance sector, Jefferies (JEF), has yet to report results for the quarter ended May 2025. This investment banking and capital markets company is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of -20.9%. The consensus EPS estimate for the quarter has been revised 3.7% lower over the last 30 days to the current level. Jefferies' revenues are expected to be $1.63 billion, down 1.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VersaBank (VBNK) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
VersaBank Plans Move to US Holding Company Structure
VersaBank (VBNK) said Thursday it plans to shift its corporate structure under a US-based parent com Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
25-05-2025
- Business
- Globe and Mail
VERSABANK ANNOUNCES THE RESULTS OF ITS 2025 MEETING OF SHAREHOLDERS
LONDON, ON, /CNW/ - VersaBank (TSX: VBNK) (NASDAQ: VBNK) ("VersaBank" or the "Bank") reports the results of its 2025 Annual Meeting of Shareholders (the "Meeting") held in London, Ontario on April 24, 2025.
