Disclosure: Bullpen receives compensation from VersaBank for research coverage. VersaBank is also an IR client of LodeRock Advisors, an affiliate of Bullpen.

VersaBank (VBNK) was up 2% after announcing a second US SRP deal with an ECN Capital subsidiary, which management expects will add at least US$300M of run-rate fundings…

… with the potential to exceed US$500M per year in the future. That should drive continued efficiency gains in the US business…

… and could represent upside to management’s US$1B funding target for the year. Combined with the commercial rollout of its real-time SRP, VersaBank is laying the foundation for higher return on equity…

… which investors are starting to price into the stock.

Read our VersaBank report

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.

You might be interested in…