VersaBank Declares Quarterly Dividend of C$0.03 (NASDAQ:VBNK)

VersaBank (NASDAQ:VBNK) announced a quarterly dividend on Thursday, September 3rd. Shareholders of record on Friday, October 9th will be given a dividend of 0.025 per share on Saturday, October 31st. This represents a c) annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Friday, October 9th.

VersaBank has a payout ratio of 3.8% meaning its dividend is sufficiently covered by earnings. Analysts expect VersaBank to earn $1.95 per share next year, which means the company should continue to be able to cover its $0.07 annual dividend with an expected future payout ratio of 3.6%.

VersaBank Stock Performance

Shares of NASDAQ VBNK opened at $20.59 on Friday. VersaBank has a 52-week low of $11.15 and a 52-week high of $25.05. The company has a market cap of $665.67 million, a PE ratio of 29.84 and a beta of 1.06. The firm’s 50 day moving average price is $20.34 and its 200-day moving average price is $18.10.

VersaBank (NASDAQ:VBNK) last issued its earnings results on Thursday, September 3rd. The company reported $0.27 earnings per share for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.07). VersaBank had a return on equity of 8.32% and a net margin of 9.34%.The business had revenue of $27.67 million during the quarter, compared to analysts’ expectations of $28.76 million. On average, analysts forecast that VersaBank will post 1.29 earnings per share for the current fiscal year.

Institutional Trading of VersaBank

A number of hedge funds have recently modified their holdings of VBNK. Royal Bank of Canada grew its position in VersaBank by 107.2% during the first quarter. Royal Bank of Canada now owns 56,371 shares of the company’s stock valued at $585,000 after buying an additional 29,169 shares during the period. Geode Capital Management LLC acquired a new stake in shares of VersaBank in the 2nd quarter worth $293,000. First Trust Advisors LP increased its holdings in shares of VersaBank by 33.0% during the 2nd quarter. First Trust Advisors LP now owns 20,753 shares of the company’s stock worth $237,000 after buying an additional 5,144 shares during the last quarter. Alliancebernstein L.P. grew its position in VersaBank by 1.1% in the 2nd quarter. Alliancebernstein L.P. now owns 2,840,626 shares of the company’s stock valued at $32,383,000 after acquiring an additional 29,613 shares in the last quarter. Finally, Mendon Capital Advisors Corp boosted its holdings in VersaBank by 4.0% in the second quarter. Mendon Capital Advisors Corp now owns 1,052,650 shares of the company’s stock valued at $12,000,000 after purchasing an additional 40,127 shares during the period. Hedge funds and other institutional investors own 56.86% of the company’s stock.

VersaBank Company Profile

VersaBank is a Canadian Schedule I chartered bank that operates as a fully digital institution, offering a range of deposit and lending solutions through its proprietary technology platform. Headquartered in London, Ontario, the bank has chosen to forego a traditional branch network in favor of online and digital distribution, enabling it to serve clients across Canada and the United States with efficiency and lower overhead.

The bank’s primary business activities include the origination and securitization of commercial loans, equipment financing, residential mortgages and construction loans.