Hi there,
Versabank is one i know quite well. Was long the company for a number of years, but recently sold my position. It is the first fully digital Schedule 1 bank and you are correct in your assumption - the bank is cheap.
The issue, is that the bank has been cheap for a while. The market doesn't seem to recognize this, and has been relatively flat over the past couple of years. When you add the current negative outlook for the financial industry, it was time for me to lock in my gains. That being said - it is a company I am still watching and may yet jump in again. Another reason I sold, was because I saw another opportunity and wanted to free up cash to take advantage.
It has a strong management team that isn't afraid to introduce disruptive products such as VersaVault. Likewise, it has consistently grown revenue over the past few years and as been announced record results on a regular basis. It also has a very low loan loss history - in fact, it typically posts no loan losses. This means that its loan base is very strong.
The company also announced two big deals in mid-July - with Insolvency Professional firm and FundEX Investments Inc. These will surely lead to additional loan growth over the next few quarters.
I still like the company, and think it should still do well but has the macro-industry headwinds to deal with currently.
Mat