The following is a summary of the VersaBank (VBNK) Q1 2024 Earnings Call Transcript:

Financial Performance:

• VersaBank reported a 22% year-over-year growth in total assets and 35% growth in net income.

• The average return on common equity rose by 24% year-over-year to reach 13.4%.

• The efficiency ratio improved both year-over-year and quarter-on-quarter to a record of 40%.

• The bank saw an 11% year-on-year increase in consolidated revenue, amounting to $28.9 million.

• Earnings per share increased 41% year-on-year to $0.48.

• Cost of funds in Q1 was 3.99%, up 104 basis points year-over-year.

Business Progress:

• VersaBank is transitioning their real estate portfolio from higher yielding, higher risk-weighted real estate loans to zero-risk weighted CMHC insured real estate loans.

• The bank expects the insolvency caused by increasing numbers of consumer and small business failures in Canada to continue to increase their low-cost deposit pool.

• The bank projects ongoing growth of their Canadian point-of-sale receivable purchase program and is seeing interest from potential U.S. partners.

• The bank's cybersecurity subsidiary has seen solid momentum and expects to continue, forecasting annual revenues of around $10 million.

• VersaBank is confident in the upcoming regulatory approval for their proposed acquisition of U.S. based Stearns Bank.

More details: VersaBank IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.