VersaBank (NASDAQ:VBNK) Announces C$0.03 Quarterly Dividend

Key Points

• VersaBank announced a quarterly dividend with a record date of April 10 and payable April 30; the payout implies roughly a 0.7% yield and a low payout ratio (~3.8%), indicating the dividend is well covered by earnings.
• Q results met expectations: VersaBank reported $0.27 EPS (in line with consensus) and $26.8 million in revenue (slightly below estimates), with a net margin of ~10% and a return on equity of 7.7%.
• The stock has a market capitalization of about $466 million and a P/E of ~20.8, a 12‑month trading range of $8.55–$17.47, and roughly 56.9% institutional ownership after several funds adjusted their stakes.

VersaBank (NASDAQ:VBNK - Get Free Report) announced a quarterly dividend on Wednesday, March 4th. Stockholders of record on Friday, April 10th will be given a dividend of 0.025 per share on Thursday, April 30th. This represents a c) annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Friday, April 10th.

VersaBank has a dividend payout ratio of 3.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect VersaBank to earn $2.23 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 3.1%.

VersaBank Price Performance

VBNK stock opened at $14.54 on Wednesday. The firm's fifty day simple moving average is $15.26 and its 200-day simple moving average is $13.93. The company has a market capitalization of $466.30 million, a P/E ratio of 20.77 and a beta of 0.99. VersaBank has a 12 month low of $8.55 and a 12 month high of $17.47.

VersaBank (NASDAQ:VBNK - Get Free Report) last posted its earnings results on Tuesday, March 3rd. The company reported $0.27 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.27. VersaBank had a net margin of 10.03% and a return on equity of 7.70%. The firm had revenue of $26.80 million during the quarter, compared to analysts' expectations of $26.92 million. As a group, sell-side analysts forecast that VersaBank will post 1.46 earnings per share for the current year.

Hedge Funds Weigh In On VersaBank

A number of large investors have recently added to or reduced their stakes in VBNK. CSM Advisors LLC acquired a new position in VersaBank during the third quarter worth $3,418,000. Pembroke Management LTD raised its position in VersaBank by 40.7% during the fourth quarter. Pembroke Management LTD now owns 736,222 shares of the company's stock worth $11,029,000 after acquiring an additional 213,037 shares during the period. Mudita Advisors LLP acquired a new position in VersaBank during the fourth quarter worth $1,462,000. Alliancebernstein L.P. raised its position in VersaBank by 2.7% during the third quarter. Alliancebernstein L.P. now owns 2,915,984 shares of the company's stock worth $35,604,000 after acquiring an additional 75,358 shares during the period. Finally, Compass Rose Asset Management LP acquired a new position in VersaBank during the third quarter worth $720,000. 56.86% of the stock is currently owned by institutional investors and hedge funds.

About VersaBank

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.