EPS of $0.38 beat estimates of $0.26 and revenues of $26.7M beat estimates of $19.82M. Net income increased substantially for the quarter, driven by strong loan growth and increased contribution from DRT Cyber, its cybersecurity subsidiary company. VBNK repurchased 419,500 shares in the quarter, close to 2% of the total shares outstanding. The company is waiting for regulatory approval for its acquisition of OCC-chartered US bank, Stearns Bank Holdingford. The acquisition is expected to close by this summer. Management expects future growth to be strong, driven by its loan portfolio and Point of Sale and US receivable purchase program. The yield on its portfolio is growing nicely and its ROE has grown to ~12%. We would consider these to be strong results and the company is trading at a cheap valuation of 5.7X forward P/E and 2.1X forward sales. It is a small-cap name, which can add size risk, however, it is growing its portfolio and margins well.
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