Slide 1: Q4 2020 Conference Call Presentation
Q4 2020 Conference Call Presentation November 25, 2020
Slide 2: Post Conference Call Q&A
2 Post Conference Call Q&A For those wishing to ask questions during the Q&A, please access today’s call through the telephone dial-in: Toll-free: 1 (888) 664-6392 (Canada/US) Local: (416) 764-8659 Passcode: 37337168#
Slide 3: Advisory
3 Advisory The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, annual reports and other disclosure documents an
Slide 4: David Taylor, President & CEO
4 David Taylor President & CEO
Slide 5: Q4 2020: Continued Strong Financial Performance
5 Q4 2020: Continued Strong Financial Performance Income Statement Strong sequential improvement in all 3 Months Ended 12 Months Ended key metrics as the Bank deployed October 31 October 31 cash to its lending portfolios 2020 2019 Change 2020 2019 Change Revenue $13.7 M $13.6 M +1% $54.2 M $53.9 M +
Slide 6: Q4 2020: Continued Strong Financial Results
6 Q4 2020: Continued Strong Financial Results Balance Sheet Cash balance at end of Q4/20 At October 31 2020 2019 Change decreased to $258 M from $354 M Total Assets $1.94 B $1.79 B +9% at the end of Q3/20 Book Value per $10.70 $9.98 +7% Common Share Cash balance at end of Q4/20 was CET1 Ratio 13.88%
Slide 7: Industry Leading Provision for Credit Losses (PCLs)
7 Industry Leading Provision for Credit Losses (PCLs) Q4 2020: Significant Recovery of Credit Losses 1.42% PCL as a % of Average Loans 0.32% 0.29% 0.35% 0.30% 0.32% 0.35% 0.60% 0.08% 0.12% 0.06% 0.12% 0.02% -0.01% -0.02% -0.01% -0.14% 2014 2015 2016 2017 2018 2019 Q2'20 Q3'20 Q4'20 VB PCLs CDN Big B
Slide 8: Continued to Lower Cost of Funding
8 Continued to Lower Cost of Funding • Continued strategic shift of deposit mix to Personal Deposits lower cost deposits • Reducing higher cost personal deposits • Increasing lower cost commercial $1,098M $1,203M $1,150M $1,052M $1,041M $960M $1,059M deposits 2014 2015 2016 2017 2018 2019 2020 Q4 20
Slide 9: Lending Portfolio Q3 2020 vs Q4 2020
9 Lending Portfolio Q3 2020 vs Q4 2020 Q3 2020 Q4 2020 Commercial Banking – Commercial Banking – Public Sector & Other Financing Public Sector & Other Financing $296M Cash (and $304M Cash (and Liquid Liquid 15% 16% $354M Securities) $258M Securities) 19% 14% Point of Point of $981M Sale $910M $338M
Slide 10: Multiple Growth Drivers: 2020 Achievements
10 Multiple Growth Drivers: 2020 Achievements 1. 2. 3. Further Reduce Grow Loan Portfolio Pursue Accretive Acquisitions Cost of Funding via New Near-Term Opportunities to Leverage Scalability of to Expand Net Interest Margin and Existing Offerings Technology Platform Added multiple new deposit Added
Slide 11: Leveraging Point of Sale Success: Instant Mortgage
Leveraging the Success of the Point of Sale Business for the Real 11 Estate Market: Instant Mortgage Market Need: A software-based solution for home and Solution: Instant Mortgage – condo developers and A revolutionary high-volume residential sales brokerages that financing software app for home ena
Slide 12: Leveraging Our Banking Technology DNA: DRT Cyber
Leveraging Our Banking Technology DNA: 12 Large-Market Opportunities Beyond Our Core Business Canadian banks are leaders in cyber DRT Cyber, Inc. security and VersaBank is a cyber security leader among Canadian banks Developing innovative solutions to address the rapidly growing volume of cyber thre
Slide 13: Acquisition of Digital Boundary Group
Acquisition of Digital Boundary Group: Complements 13 DRT Cyber’s Comprehensive Suite of Security Solutions DBG: One of North America’s premiere IT security assurance services firms • Suite of services: • External network, web and mobile app penetration testing • Physical social engineering engageme
Slide 14: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659 Participant Passcode: 37337168#
Slide 15: We're Just Getting Started!
15 We’re Just Getting Started!