Share count
32Mpeak FY2025
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VBNK, VersaBank
Banks financial
A balance-sheet business, read on book value, net interest margin and credit losses rather than an earnings multiple.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
C$116M
+13.2% YoY · 17% 5-yr CAGR
Vital signs · FY2025, with 5-yr average
Revenue C$116M 5-yr avg C$91M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Net interest margin, loan losses, and book value. A lender is read on the quality of its balance sheet, not an earnings multiple, and the worst year of credit losses matters more than the best. On its own account, the filing leans hardest on debt terms & refinancing, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on equity has sat below the cost of equity (median 7%, above 12% in only 0 of 6 years). The cycle and the loan book decide this one; weigh the recession years in the record, not the average, and read the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, charted
FY2020–2025Each measure over its full record; the current point and the worst year marked.
Revenue
C$116Mlow FY2020
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 40-F · source on SEC EDGAR →
Is it a good business?
- Below the cost of equityNet income C$28M ÷ equity C$533MIndustry peers: median 11%
What this means
The bank's north star, what it earns on shareholders' capital. Cost of equity is roughly 10%, so a return durably above that builds value and below it destroys it. One year is noisy; the durability across a full credit cycle is what counts.
- ModestNet income ÷ (equity − goodwill C$12M − intangibles C$11M)Industry peers: median 11%
What this means
The cleaner return, stripping out the goodwill paid for past acquisitions. This is the number a buyer of the whole bank actually earns on the hard capital.
- Not enough dataIndustry peers: median 58%
What this means
Noninterest expense or revenue missing.
Is it sound?
- Capital (equity / assets) 9.2%AdequateEquity C$533M ÷ assets C$5.8B
What this means
A plain-English leverage read: how much of the balance sheet is the owners' own money. This is a rough proxy; the regulatory figure is the CET1 ratio, which is risk-weighted and reported in the filing. The point is the same, how much loss the bank can absorb before depositors are at risk.
- Deposit funding 84%Deposit-fundedDeposits C$4.9B ÷ assets C$5.8B
What this means
Low-cost, sticky deposits are a bank's real moat, the cheap raw material it lends out at a spread. A bank funded mostly by deposits earns more durably than one that rents its money in the wholesale market.
- Credit cost —Not enough data
What this means
Provision or net interest income missing.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Income taxes, Credit & receivables, Acquisitions, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Banks
The same industry, side by side on the bank lens. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | ROE | ROTCE | Efficiency | NII / assets |
|---|---|---|---|---|---|
| ESQEsquire Financial Holdings Inc. | $147M | 13% | 13% | 54% | 4.2% |
| RRBIRed River Bancshares Inc. | $126M | 11% | 11% | 58% | 2.8% |
| CZNCCitizens & Northern Corp | $123M | 9% | 10% | 65% | 3.3% |
| SFSTSouthern First Bancshares Inc. | $118M | 9% | 9% | 58% | 3.0% |
| PCBPCB Bancorp | $116M | 11% | 11% | 53% | 3.6% |
| CZFSCitizens Financial Services Inc. | $112M | 12% | 15% | 58% | 3.1% |
| BWFGBankwell Financial Group Inc. | $108M | 10% | 10% | 56% | 2.9% |
| VBNKVersaBank | C$116M | 7% | 7% | — | 2.4% |
| Group median | — | 10% | 10% | — | 3.0% |
The price
What a price has to assume.
What the price implies
price / tangible bookEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. VersaBank's US listing is the ordinary share itself; figures in this tool are translated at CAD 1 = $0.712 (2026-07-17, reference rate); the dollar quote then reconciles exactly. The record tables elsewhere on this page remain as filed, in CAD.
A bank is worth a multiple of its tangible book value, and the multiple it deserves is set by the return it earns on that book. Type today’s price; we show what you would be paying against what VersaBank’s record justifies.
$
The assumptions
Tangible book / share, delivered4%/yr’20→’25
The justified multiple is (return on tangible equity − growth) ÷ (cost of equity − growth). A bank earning exactly its cost of equity is worth about one times tangible book; the premium above that prices each point of durable excess return. A higher cost of equity lowers the justified multiple for a bank.
Enter a price above to run it.
Price / tangible book—
Justified by the return—
Normalized return on tangible equity7%
Price / book—
Earnings yield—
P/E (3-yr avg ’23–’25)—
Graham’s price gate—
Graham applied the same standards to financial enterprises (Intelligent Investor ch.14): the 15× multiple cap on averaged earnings, and P/E times price-to-book at most 22.5. The gate marks the bargain-hunter’s floor, not a verdict.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Tangible book $363M on 32M shares, a 7% normalized return on it. The dials set the multiple such a return would justify; your price sets the multiple you are paying. It assumes the bank keeps earning that return; a credit cycle, a rate shock or a bad acquisition changes it, which is what the record and the 10-K are for.
Cite: Owner Scorecard, "VersaBank (VBNK), the owner's record," https://ownerscorecard.com/c/VBNK, data as of 2026-07-09.
Manual order: ← VALN its page in the Manual VEON →
Industry order: ← UVSP the Banks chapter VLY →