VersaBank (VBNK) Stock Price, News & Analysis

Company Overview

VersaBank (NASDAQ: VBNK) is a Canadian Schedule I bank headquartered in London, Ontario, that specializes in digital financial services and risk-adjusted lending. Operating without traditional retail branches, VersaBank leverages a proprietary, patent-protected digital platform to offer deposit and lending products through a network of third-party deposit brokers, financial institutions, and broker-dealers. By focusing on a branchless model, the bank aims to deliver competitive rates on high-interest savings accounts and term deposit products while maintaining operational efficiency.

On the lending side, VersaBank provides a diverse portfolio of commercial and consumer credit solutions. Its offerings include vendor finance programs, equipment leasing, commercial mortgages, construction loans, and personal mortgages. The bank also extends tailored financing to businesses involved in manufacturing, wholesale trade, technology, and real estate development. Through its digital infrastructure, VersaBank accelerates the application and underwriting processes, enabling clients to access funds more rapidly than through traditional banking channels.

In addition to its core banking activities, VersaBank has developed VersaVault, a digital data-storage and security platform that allows institutions to store and transmit sensitive information securely. This technology underscores the bank’s commitment to innovation and diversification beyond conventional financial services. While the bulk of VersaBank’s operations are concentrated in Canada, the bank has taken measured steps to expand its lending footprint into select U.S. markets, aligning with its growth strategy and digital-first approach.

Founded in 1980 and led by President and CEO Thomas B. Fodi, VersaBank emphasizes shareholder value through sustainable growth, strong capital management, and prudent credit underwriting. The executive team combines experience in banking, fintech, and capital markets, positioning the company to adapt to evolving regulatory landscapes and technological advancements. With its distinctive business model and focus on digital transformation, VersaBank aims to carve out a niche in the competitive financial services sector.

Key Stats

• Today's Range: $11.50 to $11.62
• 50-Day Range: $10.39 to $11.88
• 52-Week Range: $8.51 to $18.38
• Volume: 28,403 shs
• Average Volume: 73,690 shs
• Market Capitalization: $375.61 million
• P/E Ratio: 14.62
• Dividend Yield: 0.61%
• Price Target: $13.95
• Consensus Rating: Moderate Buy

VersaBank Stock Analysis - MarketRank™

VersaBank scored higher than 74% of companies evaluated by MarketBeat, and ranked 351st out of 933 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

VersaBank has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 2 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

VersaBank has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 52.74%

Earnings Growth

Earnings for VersaBank are expected to grow by 52.74% in the coming year, from $1.46 to $2.23 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of VersaBank is 14.62, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 26.54.

Price to Earnings Ratio vs. Sector

The P/E ratio of VersaBank is 14.62, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 19.17.

Price to Book Value per Share Ratio

VersaBank has a P/B Ratio of 1.02. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.00% of the float of VersaBank has been sold short.

Short Interest Ratio / Days to Cover

VersaBank has a short interest ratio ("days to cover") of 0, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in VersaBank has recently decreased by 99.46%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

VersaBank has a dividend yield of 0.64%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

VersaBank does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of VersaBank is 8.86%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, VersaBank will have a dividend payout ratio of 3.14% next year. This indicates that VersaBank will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.00% of the float of VersaBank has been sold short.

Short Interest Ratio / Days to Cover

VersaBank has a short interest ratio ("days to cover") of 0, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in VersaBank has recently decreased by 99.46%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: N/A
• News Sentiment: N/A

Company Ownership

• Score: 0.8 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, VersaBank insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 5.29% of the stock of VersaBank is held by insiders.

Percentage Held by Institutions

56.86% of the stock of VersaBank is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

VBNK Stock Analysis - Frequently Asked Questions

How have VBNK shares performed this year?

VersaBank's stock was trading at $13.85 at the beginning of 2025. Since then, VBNK shares have decreased by 16.6% and is now trading at $11.55.

How were VersaBank's earnings last quarter?

VersaBank (NASDAQ:VBNK) released its earnings results on Wednesday, June, 4th. The company reported $0.18 earnings per share for the quarter, missing analysts' consensus estimates of $0.21 by $0.03. The business earned $21.87 million during the quarter, compared to analyst estimates of $20.77 million. VersaBank had a trailing twelve-month return on equity of 7.97% and a net margin of 10.70%.
Read the conference call transcript.

When did VersaBank IPO?

VersaBank (VBNK) raised $50 million in an IPO on Wednesday, September 22nd 2021. The company issued 4,800,000 shares at $10.37 per share. Raymond James served as the underwriter for the IPO and Keefe Bruyette & Woods (A Stifel Company) was co-manager.

Who are VersaBank's major shareholders?

VersaBank's top institutional investors include Cox Capital Mgt LLC (0.56%).

How do I buy shares of VersaBank?

Shares of VBNK stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of VersaBank own?

Based on aggregate information from My MarketBeat watchlists, some other companies that VersaBank investors own include PayPal (PYPL), Tesla (TSLA), ZIM Integrated Shipping Services (ZIM), CrowdStrike (CRWD), Meta Platforms (META), Taiwan Semiconductor Manufacturing (TSM) and Advanced Micro Devices (AMD).

Company Calendar

• Record date for 4/30 Dividend: 4/04/2025
• Ex-Dividend for 4/30 Dividend: 4/04/2025
• Dividend Payable: 4/30/2025
• Last Earnings: 6/04/2025
• Ex-Dividend for 7/31 Dividend: 7/03/2025
• Record date for 7/31 Dividend: 7/04/2025
• Today: 7/19/2025
• Dividend Payable: 7/31/2025
• Next Earnings (Estimated): 9/04/2025
• Fiscal Year End: 10/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: BANKS - FOREIGN
• Sub-Industry: Banking
• Current Symbol: NASDAQ:VBNK
• CIK: 1690639
• Web: www.versabank.com
• Phone: (519) 645-1919
• Fax: N/A
• Employees: 100
• Year Founded: N/A

Price Target and Rating

• Average Price Target for VersaBank: $13.95
• High Price Target: $22.00
• Low Price Target: $10.40
• Potential Upside/Downside: +20.8%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 4 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.79
• Trailing P/E Ratio: 14.62
• Forward P/E Ratio: 7.91
• P/E Growth: N/A
• Net Income: $29.20 million
• Net Margins: 10.70%
• Pretax Margin: 14.87%
• Return on Equity: 7.97%
• Return on Assets: 0.76%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 1.13
• Quick Ratio: 1.13

Sales & Book Value

• Annual Sales: $216.31 million
• Price / Sales: 1.74
• Cash Flow: $1.35 per share
• Price / Cash Flow: 8.57
• Book Value: $11.28 per share
• Price / Book: 1.02

Miscellaneous

• Outstanding Shares: 32,520,000
• Free Float: 30,799,000
• Market Cap: $375.61 million
• Optionable: Not Optionable
• Beta: 0.96