FURTHER SIGNIFICANT DRILL ASSAYS FROM BALAMA EAST Issued Shares
First Quartercdn.ceo.ca.s3-us-west-2.amazonaws.com/1ck08d9-2017... · Financial Overview. Common...
Transcript of First Quartercdn.ceo.ca.s3-us-west-2.amazonaws.com/1ck08d9-2017... · Financial Overview. Common...
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First Quarter2017
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Advisory.2
The Bank occasionally makes forward-looking statements about its objectives, operations and targetedfinancial results. These statements may be written or verbal and may be included in such things as pressreleases, corporate presentations, Annual Reports and other disclosure documents and communications.By their very nature, forward-looking statements involve inherent risks and uncertainties, both general andspecific, and risks exist that predictions, forecasts, projections and other forward-looking statements willnot be achieved. A number of important factors could cause actual results to differ materially from theplans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.These factors include, but are not limited to, the strength of the Canadian economy in general and thestrength of local economies within Canada in which we conduct operations; the effect of changes ininterest rates; the effects of competition in the markets in which we operate; capital market fluctuations;and the impact of changes in laws and regulations. When relying on forward-looking statements to makedecisions, investors and others should carefully consider these factors and other uncertainties or potentialevents. The Bank makes no undertaking to update any forward-looking statement that is made from timeto time by the Bank.
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Mission.
To deliver a competitive and sustainable rate of return to shareholders by delivering ideally suited financial products, services and solutions to our clients in niche markets throughout Canada.
Vision.
We aspire to be our clients preferred provider of innovative financial solutions.
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Leverage existing financial product distribution channels
in order to minimize investment in physical infrastructure and human resources.
Design, develop and maintain state-of-the-art, custom banking
business and administration software in order to maximize transaction capacity, velocity and operational efficiency.
Strategic Priorities.4
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Bank Overview.
Schedule l Bankwith$1.77 billionin assets
Schedule lChartered BankIn 2002
81Full-timeemployees
Listed on
TSXin2013
CMHCapproved lender
Member institutionof theCanada Deposit Insurance Corporation
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Firstbranchless bank
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Bank Overview.
13.1%NET INCOME
Q1 - 2017
$11.9MASSETS
$1.77B $1.4BDEPOSITS
$202.6MSHAREHOLDERS’
EQUITYTOTAL
CAPITAL
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Balance Sheet.January 31, 2017 BALANCE SHEET ANALYSIS
48%43%
9%
44%48%
8%
Liquid Assets$148 Liquid Assets
$136
Commercial Banking$765
eCommerce$823
January 31, 2016 January 31, 2017
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eCommerce$702
Commercial Banking$798
2.44% NIM 3.15% NIM
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BRANCHLESS BANKING MODEL
Deposits raised through a “branchless” network of over 110 brokers across Canada.
Over 5,000 Investment Advisors in more than 450 Deposit Broker offices across Canada.
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1. Deposit Broker Network
2. Special Current Accounts
3. Vendor Deposits
Custom banking solutions for nichemarkets.
Bulk receivable purchase program.
Sources of Deposit Gathering.
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BRANCHLESS BANKING MODEL
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Commercial BankingFull suite of commercial lending products with an emphasis on real estate secured loans
.
Lending Services.
eCommerceA variety of consumer and small business loan and lease receivables purchased electronically from originators operating throughout Canada
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16.6% 14.0% 11.9% 11.3% 11.1% 11.0% 10.9% 10.6% 10.3% 9.5% 8.2%
Comparative Capital Ratios.COMMON EQUITY TIER 1
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9.5% 8.4% 7.2% 5.1% 4.5% 4.4% 4.2% 4.2% 4.0% 4.0% 3.8%
Leverage Percentage.January 31, 2017
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Bulk Receivable Purchases.
Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Our bulk receivable purchase program continues to grow as we establish new relationships and increase purchasesfrom our 22 existing vendor partners.
200M
400M
600M
800M
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Trustee Integrated Banking.
April 2012 VersaBank launches Trustee Integrated Banking Services
January 2017 72 Trustee Offices and over $228M on Deposit
Number of Trustee Offices Total Trustee Portfolio $M
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0
10
20
30
40
50
60
70
80
$0
$50
$100
$150
$200
$250
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Key Performance Trends.
0
5
10
15
20
25
30
35
40
45
50
55
2011 2012 2013 2014 2015 2016 Q1 - 2017
2.30%
1.50%
1.70%
1.90%
2.10%
1.30%
0.50%
0.70%
0.90%
1.10%
2.54%
1.21%
1.30%
1.74%
1.96%
2.21%
2.31%
Net Interest Income (NII) $millionsNet Interets Margin (NIM)
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2.50%
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Credit Quality.
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
2011 2012 2013 2014 2015 2016
Gross Impaired Loans / Total Loans
0%
0.13%0.14%
15
0.41%0.39%
0.30%0.28%
0.26% 0.27%
Average credit lossesof the big banks
0%0%0% 0%
Q1 - 2017
0.29%
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Total Assets.
$millions
1800
1000
1200
1400
1600
800
0
200
400
600
2011 2012 2013 2014 2015 2016
16
Q1 - 2017
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17.36 14.59 14.21 14.09 13.49 13.34 12.89 11.00 8.90 8.09 6.80
Price Earnings Ratio.January 31, 2017
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2.20 2.00 2.00 1.90 1.80 1.70 1.30 1.20 1.10 0.99 0.61
Price to Book Value.January 31, 2017
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Financial Overview.
Common Shares:VB:TSX $5.00
Issued Shares: 21,123,559
Based on recent share price $5.00, Market Capitalization was $105,617,795.
Preferred Shares: VB.PR.A:TSX $10.00 (yield 7.0%)
Non-cumulative 5-year rate preferred shares, series 1.
Issued Shares 1,461,460
Based on recent share price of $9.70 Market Capitalization was $14,176,162.
Preferred Shares: VB.PR.B:TSX$10.00 (yield 7.0%)
Non-cumulative 6-year rate reset preferred shares, series 3.
Issued Shares 1,681,320
Based on recent share price of $9.70 Market Capitalization was $16,308,804.
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Financial Snapshot.
For the year ended October 31
2012 2013 2014 2015 2016
Net Interest 19.6 25.6 27.9 34.0 38.4
Net InterestMargin (NIM) 1.30% 1.75% 1.96% 2.21% 2.31%
Net Income 3.8 1.8 5.7 8.2 8.5
Assets 1,534 1,405 1,446 1,625 1,704
Deposits 1,317 1,187 1,194 1,326 1,369
Shareholder’sEquity 93.1 133.1 152.5 174.6 185.9
Common EquityTier 1 Ratio n/a 11.29% 11.25% 10.32% 10.52%
Total CapitalRatio 12.81% 12.99% 13.69% 13.51% 13.27%
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Management Team Overview.21
Senior management team is led by David Taylor, who has over 40 years of experience in the banking industry
−Comprised of professionals with expertise in the areas of lending credit risk management, deposit gathering and management, finance and accounting, human resources, information technology, legal and enterprise risk management
Board of Directors, led by Chairman, the Honorable Tom Hockin, PC, has considerable experience in the banking industry
−Possess a wide breadth of finance, audit, banking, legal, regulatory, and general business experience, which not only contributes to the accomplishment of the Bank's growth objectives, but also the effective management and oversight of core business risks
Board of Directors Title
Tom Hockin Chairman
David Taylor President & CEO
Robbert-Jan Brabander Director
David Bratton Director
Arnold Hillier Director
Colin Litton Director
Susan McGovern Director
Paul Oliver Director
R.W. (Dick) Carter Director
Avery Pennarun Director
Select Executive Officers Title
David Taylor President & Chief Executive Officer
Shawn Clarke Chief Financial Officer
Michael Dixon Executive Head, e-Commerce
Ross DugganExecutive Head &
SVP, Commercial Lending
Nick Kristo Chief Risk Officer & SVP
Aly Lalani Treasurer
Tel Matrundola Executive Head, VersaBank Innovation Centre of Excellence
Cameron MitchellGeneral Counsel &
Corporate Secretary
Jonathan TaylorExecutive Head &
SVP, Deposit Services & HR
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