Liquidity management remains dynamic, evidenced by cash and bank balances increasing from $127.5M in 2024Q1 to $568.0M by 2026Q2.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 |
|---|
| Cash from Operations | 244.31M | 44.45M | 272.7M | 94.72M | -32.65M | -108.31M | 139.59M | 19.78M | -14.9M | 77.88M | -46.47M | -57.44M | -29.02M | -88.53M | -10.21M | -20.23M |
| Operating CF Growth % | 261.37% | -83.7% | 187.92% | 390.06% | 69.85% | -177.59% | 605.74% | 232.72% | -119.14% | 267.58% | 19.09% | -97.92% | 67.22% | -767.45% | 49.55% | - |
| Net Income | 30.39M | 28.46M | 39.75M | 42.16M | 22.66M | 22.38M | 19.41M | 20.2M | 18.07M | 19.47M | 8.47M | 8.22M | 5.68M | 1.76M | 3.82M | 7.57M |
| Depreciation & Amortization | 1.63M | 3.1M | 2.63M | 1.78M | 1.94M | 1.73M | 1.15M | 721K | 623K | 553K | 776K | 393K | 396K | 494K | 699K | 0 |
| Deferred Taxes | 6.87M | 13.04M | 15.04M | 15.48M | 9.89M | 8.41M | 7.35M | 7.63M | 6.94M | -4.74M | 3.29M | 821K | 531K | 741K | 4.21M | 0 |
| Other Non-Cash Items | 12.13M | -87.61M | -14.93M | 21.95M | 6.52M | -6.54M | -2.02M | -2.73M | -1.59M | -2.76M | -683K | 959K | -2.06M | 1.45M | -13.51M | -16.95M |
| Working Capital Changes | 193.28M | 87.39M | 229.86M | 12.44M | -75.13M | -134.29M | 113.71M | -6.04M | -38.95M | 65.35M | -58.32M | -67.85M | -33.64M | -93.03M | -5.43M | -10.85M |
| Cash from Investing | -10.62M | 212.26M | -157.58M | -28.14M | -141.61M | -8.44M | 9.76M | -242K | -10.76M | 7.07M | 12.02M | 25.92M | -8.45M | 127.41M | -49.32M | 102.01M |
| Purchase of Investments | -24.76M | -5.32M | 0 | -27.78M | -141.03M | -953K | 0 | 0 | -10.02M | 0 | -9.58M | 0 | -34.89M | -28.04M | -131.27M | -35.55M |
| Sale/Maturity of Investments | 30.22M | 218.53M | 0 | 0 | 0 | 0 | 10M | 0 | 255K | 9.59M | 21.85M | 25.92M | 26.44M | 155.45M | 81.95M | 137.55M |
| Net Investment Activity | 5.46M | 213.21M | 0 | -27.78M | -141.03M | -953K | 10M | 0 | -9.76M | 9.59M | 12.26M | 25.92M | -8.45M | 127.41M | -49.32M | 102.01M |
| Acquisitions | 0 | 0 | -12.12M | 0 | 0 | -7.47M | 0 | 0 | 0 | -283K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -10.2M | 0 | -126.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -8.68M | 102.04M | -23.33M | -17.31M | -6.3M | 131.4M | -30.85M | -10.17M | -4.47M | -19M | 1.34M | 13.45M | 6.29M | 7.97M | 0 | 18.23M |
| Dividends Paid | -3.21M | -3.23M | -3.59M | -3.6M | -3.73M | -3.85M | -4.28M | -3.68M | -3.04M | -2.2M | -2.2M | -1.82M | 0 | 0 | 0 | 0 |
| Share Repurchases | -8.06M | -9.13M | 0 | -13.29M | -1.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 4.28M | 114.77M | 607K | 280K | 0 | 73.23M | 0 | 0 | 0 | 0 | 5M | 15.28M | 13.29M | 37.98M | 0 | 8.6M |
| Net Stock Activity | -3.78M | 105.64M | 607K | -13.01M | -1.93M | 73.23M | 0 | 0 | 0 | 0 | 5M | 15.28M | 13.29M | 37.98M | 0 | 8.6M |
| Debt Issuance (Net) | -785K | -367K | -1000K | -700K | -642K | 1000K | -1000K | -1000K | 0 | -1000K | 0 | 0 | -1000K | -1000K | 0 | 1000K |
| Other Financing | -899.98K | 0 | 0 | 0 | 0 | 0 | -1.69M | -1.37M | -1.43M | -1.99M | -1.46M | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 227.97M | 356.46M | 93.01M | 43.66M | -182.94M | 13.88M | 118.5M | 9.36M | -30.13M | 65.94M | -33.11M | -18.06M | -31.18M | 46.86M | -59.53M | 100M |
| Exchange Rate Effect | 2.97M | -2.3M | 1.22M | -5.6M | -2.38M | -779K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 628M | 225.25M | 132.24M | 88.58M | 271.52M | 257.64M | 139.15M | 129.78M | 159.91M | 93.96M | 127.08M | 145.14M | 176.32M | 129.47M | 188.99M | 88.99M |
| Cash at End | 568.16M | 581.71M | 225.25M | 132.24M | 88.58M | 271.52M | 257.64M | 139.15M | 129.78M | 159.91M | 93.96M | 127.08M | 145.14M | 176.32M | 129.47M | 188.99M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 194.04M | -680.35M | 254.13M | 94.36M | -33.23M | -108.32M | 139.35M | 19.54M | -15.9M | 75.64M | -46.72M | -57.44M | -29.02M | -88.53M | -10.21M | -20.23M |
| FCF Growth % | 298.06% | -367.72% | 169.33% | 383.9% | 69.32% | -177.73% | 613.23% | 222.9% | -121.02% | 261.9% | 18.66% | -97.92% | 67.22% | -767.45% | 49.55% | - |
Broker deposit rate sensitivity
According to recent financial filings, VersaBank's net income has fluctuated between $5.2M and $12.7M over the last ten quarters, indicating that internal capital generation remains sufficient to support the bank's digital-first expansion strategy without necessitating frequent, dilutive equity issuances to meet regulatory capital adequacy requirements.
The bank's ability to retain earnings while maintaining a consistent dividend payout suggests a disciplined approach to capital management. Investors should monitor whether the current pace of organic capital generation remains adequate as the bank scales its US operations, which may require higher capital buffers.
As reported in quarterly statements, VersaBank has demonstrated significant volatility in investment securities activity, with net sales reaching $136.7M in 2025Q1, suggesting that the bank actively utilizes its securities portfolio as a primary liquidity management tool to offset fluctuations in deposit inflows and loan demand.
The periodic liquidation of securities appears to be a tactical response to balance sheet needs rather than a strategic shift in investment duration. This behavior implies that the bank prioritizes liquidity flexibility to support its POS financing growth over maintaining a static, long-term investment portfolio.
Based on reported figures, VersaBank has maintained a remarkably stable dividend payout of approximately $800K to $900K per quarter, reflecting a conservative capital return policy that prioritizes the preservation of regulatory capital to fuel the bank's ongoing digital infrastructure investments and geographic expansion efforts.
The minimal use of share buybacks, with only sporadic activity noted in late 2025, suggests that management views internal reinvestment as the superior use of excess capital. This approach appears prudent given the execution risks associated with the bank's entry into the US market.
Financial statements indicate that VersaBank's operating cash flow is highly erratic, with figures swinging from a $99.4M outflow in 2025Q2 to a $183.6M inflow in 2025Q3, which suggests that traditional cash flow metrics are heavily distorted by the timing of loan originations and deposit broker settlements.
Analysts should exercise caution when interpreting these cash flow swings, as they do not necessarily reflect operational health or underlying profitability. The lack of correlation between net income and operating cash flow highlights the necessity of focusing on balance sheet growth and net interest margin stability instead.
Quick answers to the most common questions about buying VBNK stock.
VersaBank (VBNK) generated $44.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
VersaBank (VBNK) reported negative free cash flow of $680.3M in 2025, indicating capital requirements exceeded cash from operations.
VersaBank (VBNK) spent $1.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, VersaBank (VBNK) returned $3.2M to shareholders via cash dividends and spent $9.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.