VersaBank Q3 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gregory William MacDonald - LodeRock Research Inc. - Analyst : I just have 2 questions, and then I'll pass it on to the others. First is on DRTC: you talked about a sequential decline in revenue. And then the press release itself talks also about the growth which we can continue to be expected in that business, specifically benefiting from investments made in '22. Can you just talk overall about the business outlook there? And is that specifically the issue with getting a number of products in the suite which sets that business up for growth? Is that still a business that we should expect double-digit growth from on a sustainable basis? And then I have a second...

Question: Gregory William MacDonald - LodeRock Research Inc. - Analyst : And is pen testing still the major demand in that business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 31, 2022 / 1:00PM, VBNK.TO - Q3 2022 VersaBank Earnings Call

Question: Gregory William MacDonald - LodeRock Research Inc. - Analyst : Okay. And the second is on the insolvency deposit strategy. This is something that's interesting to me. I would have expected more small business failures to drive more insolvency growth, and we haven't really seen that, look, increased interest rates is certainly -- almost certainly going to drive consumer insolvency. Can you talk -- you state specifically that you expect growth in early '23 which suggest to me that you're getting some signals from the market. I know you're adding partners, but can you talk generally about what you're seeing there and the level of growth you expect in that part of the deposit structure?