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Versabank T.VBNK

Alternate Symbol(s):  VBNK

VersaBank is a Canada-based chartered bank. The Bank provides commercial lending and banking services in Canada and the United States, as well as cybersecurity services and banking and financial technology development services through the operations of its wholly owned subsidiary DRT Cyber Inc. (DRTC). It operates through two segments: Digital Banking and DRTC (cybersecurity services). The Digital Banking segment obtains its deposits and provides its loans and leases electronically via deposit and lending solutions for financial intermediaries. Its loan portfolio includes point-of-sale loans and leases, commercial real estate mortgages, commercial real estate loans and public sector and other financing. The DRTC segment develops solutions to address the volume of cyber threats challenging financial institutions, multi-national corporations and government entities. It also offers receivable purchase program (RPP) funding solution for point-of-sale finance companies.


TSX:VBNK - Post by User

Bullboard Posts
Comment by robert1229on Jun 27, 2019 2:58pm
323 Views
Post# 29871037

RE:RE:Ink Research

RE:RE:Ink ResearchThis is a brief reply to Mr "theSwede99."  

I too noted the increase in impaired loans.  Without taking the tiem to reread the documents right now, I seem to remember that there is a statement (probably in the current MD&A) to the effect that one sizable loan has gone into nonaccrual status. 

My understanding is that accounting rules require that a proper reserve be set aside by reason of each nonaccrual that appears on a bank's balance sheet.  The good news (again, per my recollection) is that the MD&A states that the nonaccrual loan is a real-estate loan that is more than adequately collateralized.  

You perhaps share my mild discouragement that the share price dipped within the past several days below $7.00.  Today, is the first day that we see a bounce above $7.00, and the volume looks good, i.e., over 75,000 shares as of 2 p.m. eastern time.  I would not be surprised to see a couple of SEDI filings to the effect that some directors have added.  

I hope I have helped.  

robert
Bullboard Posts