Document And Entity Information
Document And Entity Information | Jan. 31, 2022 |
Document Information [Line Items] | |
Entity Registrant Name | VersaBank |
Document, Type | 6-K |
Document, Period End Date | Jan. 31, 2022 |
Current Fiscal Year End Date | --10-31 |
Entity, File Number | 001-40805 |
Entity, Address, Address Line One | 140 Fullarton Street, Suite 2002 |
Entity, Address, City or Town | London |
Entity, Address, State or Province | ON |
Entity, Address, Postal Zip Code | N6A 5P2 |
Entity, Address, Country | CA |
Amendment Flag | false |
Entity Central Index Key | 0001690639 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 |
Assets | |||
Cash | $ 155,239 | $ 271,523 | $ 212,016 |
Loans, net of allowance for credit losses (note 4) | 2,215,638 | 2,103,050 | 1,793,724 |
Other assets (note 5) | 44,469 | 40,513 | 39,236 |
Total assets | 2,415,346 | 2,415,086 | 2,044,976 |
Liabilities and Shareholders' Equity | |||
Deposits | 1,847,003 | 1,853,204 | 1,664,694 |
Subordinated notes payable (note 6) | 97,726 | 95,272 | 4,891 |
Other liabilities (note 7) | 133,666 | 134,504 | 115,883 |
Total liabilities | 2,078,395 | 2,082,980 | 1,785,468 |
Shareholders' equity: | |||
Share capital (note 8) | 241,662 | 241,466 | 182,094 |
Retained earnings | 95,276 | 90,644 | 77,414 |
Accumulated other comprehensive income (loss) | 13 | (4) | 0 |
Total equity | 336,951 | 332,106 | 259,508 |
Total equity and liabilities | $ 2,415,346 | $ 2,415,086 | $ 2,044,976 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - CAD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Interest income: | ||
Loans | $ 24,514 | $ 21,086 |
Other | 206 | 429 |
Interest income | 24,720 | 21,515 |
Interest expense: | ||
Deposits and other | 6,469 | 7,014 |
Subordinated notes | 1,366 | 127 |
Interest expense | 7,835 | 7,141 |
Net interest income | 16,885 | 14,374 |
Non-interest income | 1,381 | 1,048 |
Total revenue | 18,266 | 15,422 |
Provision for credit losses (note 4) | 2 | 57 |
Revenue less provision for credit loss | 18,264 | 15,365 |
Non-interest expenses: | ||
Salaries and benefits | 6,083 | 5,030 |
General and administrative | 3,624 | 2,339 |
Premises and equipment | 929 | 718 |
Noninterest expense | 10,636 | 8,087 |
Income before income taxes | 7,628 | 7,278 |
Income tax provision (note 9) | 2,062 | 1,988 |
Net income | 5,566 | 5,290 |
Other comprehensive income: | ||
Foreign exchange gain on translation of foreign operations | 17 | 0 |
Comprehensive income | $ 5,583 | $ 5,290 |
Basic and diluted income per common share (note 10) (in CAD per share) | $ 0.19 | $ 0.22 |
Weighted average number of common shares outstanding (in shares) | 27,441,082 | 21,123,559 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - CAD ($) $ in Thousands | Total | Issued capital [member] | Issued capital [member]Ordinary shares [member] | Issued capital [member]Series 1 preferred shares [member] | Issued capital [member]Series 3 preferred shares [member] | Additional paid-in capital [member] | Retained earnings [member] | Accumulated other comprehensive income [member] |
Balance at Oct. 31, 2020 | $ 145 | $ 73,194 | $ 0 | |||||
Statement Line Items [Line Items] | ||||||||
Fair value of stock-based compensation (note 8) | 0 | |||||||
Net income | $ 5,290 | 5,290 | ||||||
Dividends paid on common and preferred shares | (1,070) | |||||||
Other comprehensive income | 0 | |||||||
Balance at Jan. 31, 2021 | 259,508 | $ 182,094 | $ 152,612 | $ 13,647 | $ 15,690 | 145 | 77,414 | 0 |
Balance at Oct. 31, 2021 | 332,106 | 145 | 90,644 | (4) | ||||
Statement Line Items [Line Items] | ||||||||
Fair value of stock-based compensation (note 8) | 196 | |||||||
Net income | 5,566 | 5,566 | ||||||
Dividends paid on common and preferred shares | (934) | |||||||
Other comprehensive income | 17 | |||||||
Balance at Jan. 31, 2022 | $ 336,951 | $ 241,662 | $ 227,674 | $ 13,647 | $ 0 | $ 341 | $ 95,276 | $ 13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - CAD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Cash provided by (used in): | ||
Net income | $ 5,566 | $ 5,290 |
Adjustments to determine net cash flows: | ||
Provision for credit losses | 2 | 57 |
Stock-based compensation | 196 | 0 |
Income tax provision | 2,062 | 1,988 |
Interest income | (24,720) | (21,515) |
Interest expense | 7,835 | 7,141 |
Amortization | 490 | 449 |
Foreign exchange rate changes on debt | 2,430 | 0 |
Interest received | 23,594 | 20,572 |
Interest paid | (9,406) | (10,487) |
Income taxes paid | (2,820) | 0 |
Loans | (111,400) | (137,908) |
Deposits | (3,385) | 100,357 |
Change in other assets and liabilities | (3,308) | 7,577 |
Net cash flows from (used in) operating activities | (112,864) | (26,479) |
Acquisition of DBG, net of cash acquired | 0 | (7,473) |
Purchase of property and equipment | (32) | (67) |
Net cash flows from (used in) investing activities | (32) | (7,540) |
Financing: | ||
Repayment of loan assumed from DBG | 0 | (1,410) |
Redemption of securitization liability | 0 | (8,631) |
Dividends paid | (934) | (1,070) |
Repayment of lease obligations | (169) | (136) |
Income taxes paid | 0 | (362) |
Net cash flows from (used in) financing activities | (1,103) | (11,609) |
Change in cash | (113,999) | (45,628) |
Effect of exchange rate changes on cash | (2,285) | 0 |
Cash, beginning of the period | 271,523 | 257,644 |
Cash, end of the period | $ 155,239 | $ 212,016 |
Note 1 - Reporting Entity
Note 1 - Reporting Entity | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of notes and other explanatory information [text block] | 1. Reporting entity: VersaBank (the “Bank”) operates as a Schedule I bank under the Bank Act (Canada) The Bank is incorporated in Canada, and maintains its registered head office at Suite 2002, 140 N6A 5P2. |
Note 2 - Basis of Preparation
Note 2 - Basis of Preparation | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of basis of preparation of financial statements [text block] | 2. Basis of preparation: a) Statement of compliance: These interim Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting not . October 31, 2021. The interim Consolidated Financial Statements for the three January 31, 2022 2021 February 28, 2022. b) Basis of measurement: These interim Consolidated Financial Statements have been prepared on the historical cost basis except for the investment in Canada Stablecorp Inc. which is measured at fair value through other comprehensive income (see note 5 c) Functional and presentation currency: These interim d) Use of estimates and judgements: In preparing these interim 4 may Estimates were applied by management in determining the fair value of stock options granted in the current quarter as described in note 8. Available forward-looking information, including forecast macroeconomic indicator and industry performance trend data continue to be influenced by COVID- 19 not Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are applied prospectively once they are known. |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Policies and Future Accounting Changes | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of significant accounting policies [text block] | 3. Significant accounting policies and future accounting changes: The accounting policies applied by the Bank in these interim Consolidated Financial Statements are the same as those applied by the Bank as at and for the year ended October 31, 2021 3 2021 Segment reporting: Effective the quarter ending January 31, 2022, 8 Segment Reporting two 16. |
Note 4 - Loans
Note 4 - Loans | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of loans and advances to customers [text block] | 4. Loans: The Bank organizes its lending portfolio into the following four The Commercial Real Estate Mortgages ( CRE Mortgages ) The Commercial Real Estate Loans ( CRE Loans ) The Point of Sale Loans and Leases ( POS Financing ) The Public Sector and Other Financing ( PSOF ) a) Summary of loans and allowance for credit losses: (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Commercial real estate mortgages $ 722,829 $ 757,576 $ 712,256 Commercial real estate loans 14,600 26,569 31,663 Point of sale loans and leases 1,439,781 1,279,576 1,008,029 Public sector and other financing 31,247 32,587 36,612 2,208,457 2,096,308 1,788,560 Allowance for credit losses (1,455 ) (1,453 ) (1,832 ) Accrued interest 8,636 8,195 6,996 Total loans, net of allowance for credit losses $ 2,215,638 $ 2,103,050 $ 1,793,724 The following table provides a summary of loan amounts, expected credit loss allowance amounts, and expected loss rates by lending asset category: As at January 31, 2022 As at October 31, 2021 (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Commercial real estate mortgages $ 667,949 $ 54,880 $ - $ 722,829 $ 694,869 $ 62,707 $ - $ 757,576 ECL allowance 949 96 - 1,045 980 134 - 1,114 EL % 0.14 % 0.17 % 0.00 % 0.14 % 0.14 % 0.21 % 0.00 % 0.15 % Commercial real estate loans $ 14,600 $ - $ - $ 14,600 $ 26,569 $ - $ - $ 26,569 ECL allowance 36 - - 36 45 - - 45 EL % 0.25 % 0.00 % 0.00 % 0.25 % 0.17 % 0.00 % 0.00 % 0.17 % Point of sale loans and leases $ 1,437,391 $ 2,390 $ - $ 1,439,781 $ 1,277,011 $ 2,565 $ - $ 1,279,576 ECL allowance 370 - - 370 275 - - 275 EL % 0.03 % 0.00 % 0.00 % 0.03 % 0.02 % 0.00 % 0.00 % 0.02 % Public sector and other financing $ 31,168 $ 79 $ - $ 31,247 $ 32,507 $ 80 $ - $ 32,587 ECL allowance 4 - - 4 16 3 - 19 EL % 0.01 % 0.00 % 0.00 % 0.01 % 0.05 % 3.75 % 0.00 % 0.06 % Loans $ 2,151,108 $ 57,349 $ - $ 2,208,457 $ 2,030,956 $ 65,352 $ - $ 2,096,308 Total ECL allowance 1,359 96 - 1,455 1,316 137 - 1,453 Total EL % 0.06 % 0.17 % 0.00 % 0.07 % 0.06 % 0.21 % 0.00 % 0.07 % The Bank’s maximum exposure to credit risk is the carrying value of its financial assets. The Bank holds security against the majority of its loans in the form of mortgage interests over property, other registered securities over assets, guarantees or cash reserves on loan and lease receivables included in the POS Financing portfolio (see note 7 Allowance for Credit Losses The Bank must maintain an allowance for expected credit losses (“ECL”) that is adequate, in management’s opinion, to absorb all credit related losses in the Bank’s lending and treasury portfolios. Under IFRS 9 no Assessment of significant increase in credit risk ( SICR ) At each reporting date, the Bank assesses whether or not SICR is a function of the loan’s internal risk rating assignment, internal watchlist status, loan review status and delinquency status which are updated as necessary in response to changes including, but not Quantitative models may not may may Examples include changes in adjudication criteria for a particular group of borrowers or asset categories or changes in portfolio composition, and more specifically changes attributable to the continued impact of COVID- 19 Expected credit loss model - Estimation of expected credit losses Expected credit losses are an estimate of a loan’s expected cash shortfalls discounted at the effective interest rate, where a cash shortfall is the difference between the contractual cash flows that are due to the Bank and the cash flows that the Bank actually expects to receive. Forward-Looking Information The Bank incorporates the impact of future economic conditions, or more specifically forward-looking information into the estimation of expected credit losses at the credit risk parameter level. This is accomplished via the credit risk parameter models and proxy datasets that the Bank utilizes to develop probability of default, (“PD”) and loss given default, (“LGD”) term structure forecasts for its loans. The Bank has sourced credit risk modeling systems and forecast macroeconomic scenario data from Moody’s Analytics, a third not third The Bank utilizes macroeconomic indicator data derived from multiple macroeconomic scenarios in order to mitigate volatility in the estimation of expected credit losses, as well as to satisfy the IFRS 9 19. The macroeconomic indicator data utilized by the Bank for the purpose of sensitizing PD and LGD term structure data to forward economic conditions include, but are not Key assumptions driving the macroeconomic forecast trends this quarter include: the rate of decline of new case counts of the Omicron variant and the relaxation of public health restrictions as a function of same, the timing and magnitude of the Bank of Canada’s (“BoC”) first 2022 Management developed ECL estimates using credit risk parameter term structure forecasts sensitized to individual baseline, upside and downside forecast macroeconomic scenarios, each weighted at 100%, January 31, 2022 Expected Credit Loss Sensitivity: The following table presents the sensitivity of the Bank’s estimated ECL to a range of individual macroeconomic scenarios, that in isolation may not January 31, 2022: (thousands of Canadian dollars) Reported 100 % 100 % 100 % ECL Upside Baseline Downside Allowance for expected credit losses $ 1,455 $ 898 $ 1,193 $ 1,675 Variance from reported ECL (557 ) (262 ) 220 Variance from reported ECL (%) (38 %) (18 %) 15 % The following table provides a reconciliation of the Bank’s ECL allowance by lending asset category for the three January 31, 2022: (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Commercial real estate mortgages Balance at beginning of period $ 980 $ 134 $ - $ 1,114 Transfer in (out) to Stage 1 14 (14 ) - - Transfer in (out) to Stage 2 (4 ) 4 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (28 ) (24 ) - (52 ) Loan originations 80 - - 80 Derecognitions and maturities (93 ) (4 ) - (97 ) Provision for (recovery of) credit losses (31 ) (38 ) - (69 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 949 $ 96 $ - $ 1,045 Commercial real estate loans Balance at beginning of period $ 45 $ - $ - $ 45 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (9 ) - - (9 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (9 ) - - (9 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 36 $ - $ - $ 36 Point of sale loans and leases Balance at beginning of period $ 275 $ - $ - $ 275 Transfer in (out) to Stage 1 38 (38 ) - - Transfer in (out) to Stage 2 (58 ) 58 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 115 (20 ) - 95 Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses 95 - - 95 Write-offs - - - - Recoveries - - - - Balance at end of period $ 370 $ - $ - $ 370 Public sector and other financing Balance at beginning of period $ 16 $ 3 $ - $ 19 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (11 ) (3 ) - (14 ) Loan originations - - - - Derecognitions and maturities (1 ) - - (1 ) Provision for (recovery of) credit losses (12 ) (3 ) - (15 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 4 $ - $ - $ 4 Total balance at end of period $ 1,359 $ 96 $ - $ 1,455 The following table provides a reconciliation of the Bank’s ECL allowance by lending asset category for the three January 31, 2021: (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Commercial real estate mortgages Balance at beginning of period $ 1,174 $ 192 $ - $ 1,366 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 (2 ) 2 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 67 10 - 77 Loan originations 146 - - 146 Derecognitions and maturities (39 ) (37 ) - (76 ) Provision for (recovery of) credit losses 172 (25 ) - 147 Write-offs - - - - Recoveries - - - - Balance at end of period $ 1,346 $ 167 $ - $ 1,513 Commercial real estate loans Balance at beginning of period $ 137 $ - $ - $ 137 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (65 ) - - (65 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (65 ) - - (65 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 72 $ - $ - $ 72 Point of sale loans and leases Balance at beginning of period $ 215 $ - $ - $ 215 Transfer in (out) to Stage 1 20 (20 ) - - Transfer in (out) to Stage 2 (44 ) 44 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 16 (24 ) - (8 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (8 ) - - (8 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 207 $ - $ - $ 207 Public sector and other financing Balance at beginning of period $ 57 $ - $ - $ 57 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (17 ) - - (17 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (17 ) - - (17 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 40 $ - $ - $ 40 Total balance at end of period $ 1,665 $ 167 $ - $ 1,832 b) Impaired loans: At January 31, 2022, $nil October 31, 2021 - $nil |
Note 5 - Other Assets
Note 5 - Other Assets | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of other assets [text block] | 5. Other assets: (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Accounts receivable $ 2,938 $ 2,643 $ 2,604 Prepaid expenses and other 16,881 12,699 9,726 Property and equipment 6,905 7,075 7,643 Right-of-use assets 4,643 4,817 5,337 Deferred income tax asset 2,868 2,931 4,286 Investment 953 953 - Goodwill 5,754 5,754 5,754 Intangible assets 3,527 3,641 3,886 Total other assets $ 44,469 $ 40,513 $ 39,236 In February 2021, |
Note 6 - Subordinated Notes Pay
Note 6 - Subordinated Notes Payable | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of borrowings [text block] | 6. Subordinated notes payable: (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Ten 5.0 500,000 10.41 March 2029 $ 4,901 $ 4,898 $ 4,891 Ten 75.0 5.38 May 2031 92,825 90,374 - $ 97,726 $ 95,272 $ 4,891 |
Note 7 - Other Liabilities
Note 7 - Other Liabilities | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of other liabilities [text block] | 7. Other liabilities: (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Accounts payable and other $ 6,155 $ 6,893 $ 5,359 Current income tax liability 1,975 2,949 1,052 Deferred income tax liability 855 898 898 Lease obligations 4,944 5,113 5,598 Cash collateral and amounts held in escrow 5,252 7,887 3,379 Cash reserves on loan and lease receivables 114,485 110,764 99,597 $ 133,666 $ 134,504 $ 115,883 |
Note 8 - Share Capital
Note 8 - Share Capital | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of classes of share capital [text block] | 8. Share capital: a) Common shares: At January 31, 2022, October 31, 2021 – b) Preferred shares: At January 31, 2022, October 31, 2021 – 1 1 13 On April 30, 2021, October 31, 2021 – $nil 3 c) Stock options Under the Bank’s stock option plan, the Bank will grant, to eligible participants options for the Bank’s common shares on a periodic basis. As per the Bank’s current stock option plan all options issued have a five three January 31, 2022, October 31, 2021 – Stock option transactions during the three January 31, 2022 2021: for the three months ended January 31, 2022 January 31, 2021 Weighted Weighted Number of average Number of average options exercise price options exercise price Outstanding, beginning of period 40,000 $ 7.00 42,017 $ 10.73 Granted 913,730 15.90 - - Exercised - - - - Forfeired/cancelled - - - - Expired - - - - Outstanding, end of period 953,730 $ 15.53 42,017 $ 10.73 For the three January 31, 2022, January 31, 2021 - $nil January 31, 2022, As at January 31, 2022, October 2023. |
Note 9 - Income Tax Provision
Note 9 - Income Tax Provision | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of income tax [text block] | 9. Income tax provision: Income tax provision for the three January 31, 2022 January 31, 2021 - 2021 not |
Note 10 - Income Per Common Sha
Note 10 - Income Per Common Share | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of earnings per share [text block] | 10. Income per common share: (thousands of Canadian dollars) for the three months ended January 31 January 31 2022 2021 Net income $ 5,566 $ 5,290 Less: dividends on preferred shares (247 ) (542 ) 5,319 4,748 Average number of common shares outstanding 27,441,082 21,123,559 Income per common share: $ 0.19 $ 0.22 The Series 1 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of commitments and contingent liabilities [text block] | 11. Commitments and contingencies: The amount of credit related commitments represents the maximum amount of additional credit that the Bank could be obligated to extend. (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Loan commitments $ 315,764 $ 296,248 $ 270,687 Letters of credit 51,131 46,462 48,290 $ 366,895 $ 342,710 $ 318,977 |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of related party [text block] | 12. Related party transactions: The Bank’s Board of Directors and Senior Executive Officers represent key management personnel and are related parties. At January 31, 2022, January 31, 2021 - January 31, 2021 - three January 31, 2022 January 31, 2021 - January 31, 2021 - $nil January 31, 2022. $500,000 of the Bank’s $5.0 million subordinated notes payable, issued in March 2019, 6 |
Note 13 - Capital Management
Note 13 - Capital Management | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of objectives, policies and processes for managing capital [text block] | 13. Capital management: a) Overview: The Bank’s policy is to maintain a strong capital base so as to retain investor, creditor and market confidence as well as to support the future growth and development of the business. The impact of the level of capital held on shareholders’ return is an important consideration and the Bank recognizes the need to maintain a balance between the higher returns that may may OSFI sets and monitors capital requirements for the Bank. Capital is managed in accordance with policies and plans that are regularly reviewed and approved by the Board of Directors and that take into account, amongst other items, forecasted capital requirements and current and anticipated financial market conditions. The goal is to maintain adequate regulatory capital for the Bank to be considered well capitalized, protect consumer deposits and provide capacity to support organic growth as well as to capitalize on strategic opportunities that do not 1 1 2 The Bank monitors its capital adequacy and related capital ratios on a daily basis and has policies setting internal targets and thresholds for its capital ratios. These capital ratios consist of the leverage ratio and the risk-based capital ratios. The Bank makes use of the Standardized Approach for credit risk as prescribed by OSFI, and therefore, may 2 19 second 2020 CET1 2020 2022 CET1 1 2 1 2 three January 31, 2020, 70% 2020, 50% 2021 25% 2022. During the period ended January 31, 2022, no b) Risk-Based Capital Ratios: The Basel Committee on Banking Supervision has published the Basel III rules on capital adequacy and liquidity (“Basel III”). OSFI requires that all Canadian banks must comply with the Basel III standards on an “all-in” basis for the purpose of determining their risk-based capital ratios. Required minimum regulatory capital ratios are a 7.0% Common Equity Tier 1 “CET1” 1 OSFI also requires banks to measure capital adequacy in accordance with guidelines for determining risk adjusted capital and risk-weighted assets including off-balance sheet credit instruments as specified in the Basel III regulations. Based on the deemed credit risk for each type of asset, both on and off balance sheet assets of the Bank are assigned a weighting ranging between 0% 150% The Bank’s risk-based capital ratios are calculated as follows: (thousands of Canadian dollars) January 31 October 31 2022 2021 "Transitional" & "All in" "All in" Common Equity Tier 1 (CET1) capital Directly issued qualifying common share capital $ 228,015 $ 227,819 Retained earnings 95,276 90,644 Accumulated other comprehensive income 13 (4 ) CET1 before regulatory adjustments 323,304 318,459 Regulatory adjustments applied to CET1 (12,479 ) (12,751 ) Common Equity Tier 1 capital $ 310,825 $ 305,708 Additional Tier 1 capital Directly issued qualifying Additional Tier 1 instruments $ 13,647 $ 13,647 Total Tier 1 capital $ 324,472 $ 319,355 Tier 2 capital Directly issued Tier 2 capital instruments $ 100,310 $ 97,910 Tier 2 capital before regulatory adjustments 100,310 97,910 Eligible stage 1 and stage 2 allowance 1,455 1,453 Total Tier 2 capital $ 101,765 $ 99,363 Total regulatory capital $ 426,237 $ 418,718 Total risk-weighted assets $ 2,095,335 $ 2,013,544 Capital ratios CET1 capital ratio 14.83 % 15.18 % Tier 1 capital ratio 15.49 % 15.86 % Total capital ratio 20.34 % 20.80 % As at January 31, 2022 October 31, 2021, c) Leverage Ratio: The leverage ratio, which is prescribed under the Basel III Accord, is a supplementary measure to the risk-based capital requirements and is defined as the ratio of Tier 1 (thousands of Canadian dollars) January 31 October 31 2022 2021 "Transitional" & "All in" "All in" On-balance sheet assets $ 2,415,346 $ 2,415,086 Assets amounts adjusted in determining the Basel III Tier 1 capital (12,479 ) (12,751 ) Total on-balance sheet exposures 2,402,867 2,402,335 Total off-balance sheet exposure at gross notional amount $ 366,895 $ 342,710 Adjustments for conversion to credit equivalent amount (212,919 ) (210,065 ) Total off-balance sheet exposures 153,976 132,645 Tier 1 capital 324,472 319,355 Total exposures 2,556,843 2,534,980 Leverage ratio 12.69 % 12.60 % As at January 31, 2022 October 31, 2021, |
Note 14 - Interest Rate Risk Po
Note 14 - Interest Rate Risk Position | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of how entity manages liquidity risk [text block] | 14. Interest rate risk position: The Bank is subject to interest rate risk which is the risk that a movement in interest rates could negatively impact net interest margin, net interest income and the economic value of assets, liabilities and shareholders’ equity. The following table provides the duration difference between the Bank’s assets and liabilities and the potential after-tax impact of a 100 12 100 60 no (thousands of Canadian dollars) January 31, 2022 October 31, 2021 Increase 100 bps Decrease 100 bps Increase 100 bps Decrease 100 bps Increase (decrease): Impact on projected net interest income during a 12 month period $ 3,951 $ (3,951 ) $ 4,147 $ (3,220 ) Impact on reported equity during a 60 month period $ 717 $ (1,196 ) $ 1,603 $ (1,586 ) Duration difference between assets and liabilities (months) 2.0 2.3 |
Note 15 - Fair Value of Financi
Note 15 - Fair Value of Financial Instruments | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of fair value of financial instruments [text block] | 15. Fair Value of Financial Instruments: Fair values are based on management’s best estimates of market conditions and valuation policies at a certain point in time. The estimates are subjective and involve particular assumptions and matters of judgement and as such, may not not not 19 October 31, 2021 (thousands of Canadian dollars) As at January 31, 2022 October 31, 2021 Book Fair Book Fair (thousands of Canadian dollars) Value Value Value Value Assets Cash and cash equivalents $ 155,239 $ 155,239 $ 271,523 $ 271,523 Loans 2,215,638 2,231,040 2,103,050 2,118,636 Other financial assets 3,891 3,891 3,596 3,596 Liabilities Deposits $ 1,847,003 $ 1,830,923 $ 1,853,204 $ 1,860,332 Subordinated notes payable 97,726 100,310 95,272 97,910 Other financial liabilities 130,836 130,836 130,657 130,657 |
Note 16 - Operating Segmentatio
Note 16 - Operating Segmentation | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of entity's operating segments [text block] | 16. Operating Segmentation: The Bank has established two reportable operating segments, those being Banking and Cybersecurity Services. The two two Banking Cybersecurity Services The basis for the determination of the reportable segments is a function primarily of the systematic, consistent process employed by our chief operating decision maker, the Chief Executive Officer, and the Chief Financial Officer in reviewing and interpreting the operations and performance of each segment. The accounting policies applied to these segments are consistent with those employed in the preparation of our consolidated financial statements, as disclosed in Note 3 2021 Performance is measured based on segment net income, as included in the Bank’s internal management reporting. Management has determined that this measure is the most relevant in evaluating segment results and in the allocation of resources. Information regarding the results of each reportable operating segment is as follows: (thousands of Canadian dollars) for the three months ended January 31, 2022 January 31, 2021 Banking Cybersecurity Eliminations Consolidated Banking Cybersecurity Eliminations Consolidated and Adjustments and Adjustments Net interest income $ 16,885 $ - $ - $ 16,885 $ 14,374 $ - $ - $ 14,374 Non-interest income - 1,422 (41 ) 1,381 (17 ) 1,093 (28 ) 1,048 Total revenue 16,885 1,422 (41 ) 18,266 14,357 1,093 (28 ) 15,422 Provision for (recovery of) credit losses 2 - - 2 57 - - 57 16,883 1,422 (41 ) 18,264 14,300 1,093 (28 ) 15,365 Non-interest expenses: Salaries and benefits 5,440 643 - 6,083 4,698 332 - 5,030 General and administrative 3,482 183 (41 ) 3,624 2,062 305 (28 ) 2,339 Premises and equipment 582 347 - 929 570 148 - 718 9,504 1,173 (41 ) 10,636 7,330 785 (28 ) 8,087 Income before income taxes 7,379 249 - 7,628 6,970 308 - 7,278 Income tax provision 1,961 101 - 2,062 1,853 135 - 1,988 Net income $ 5,418 $ 148 $ - $ 5,566 $ 5,117 $ 173 $ - $ 5,290 Total assets $ 2,412,167 $ 23,767 $ (20,588 ) $ 2,415,346 $ 2,041,784 $ 20,612 $ (17,420 ) $ 2,044,976 Total liabilities $ 2,072,691 $ 25,147 $ (19,443 ) $ 2,078,395 $ 1,781,121 $ 20,622 $ (16,275 ) $ 1,785,468 While the Bank has operations in the US, primarily through its DRTC operations, substantially all of the Bank’s earnings and assets are based in Canada. |
Note 17 - Comparative Balances
Note 17 - Comparative Balances | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of reclassifications or changes in presentation [text block] | 17. Comparative balances: Certain comparative balances have been reclassified to conform with the financial statement presentation adopted in the current period. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2022 | |
Discloure of Significant Accounting Policies | |
Description of accounting policy for segment reporting [text block] | Segment reporting: Effective the quarter ending January 31, 2022, 8 Segment Reporting two 16. |
Note 4 - Loans (Tables)
Note 4 - Loans (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Discosure of loans, net [text block] | (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Commercial real estate mortgages $ 722,829 $ 757,576 $ 712,256 Commercial real estate loans 14,600 26,569 31,663 Point of sale loans and leases 1,439,781 1,279,576 1,008,029 Public sector and other financing 31,247 32,587 36,612 2,208,457 2,096,308 1,788,560 Allowance for credit losses (1,455 ) (1,453 ) (1,832 ) Accrued interest 8,636 8,195 6,996 Total loans, net of allowance for credit losses $ 2,215,638 $ 2,103,050 $ 1,793,724 |
Disclosure of loans by lending asset category [text block] | As at January 31, 2022 As at October 31, 2021 (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Commercial real estate mortgages $ 667,949 $ 54,880 $ - $ 722,829 $ 694,869 $ 62,707 $ - $ 757,576 ECL allowance 949 96 - 1,045 980 134 - 1,114 EL % 0.14 % 0.17 % 0.00 % 0.14 % 0.14 % 0.21 % 0.00 % 0.15 % Commercial real estate loans $ 14,600 $ - $ - $ 14,600 $ 26,569 $ - $ - $ 26,569 ECL allowance 36 - - 36 45 - - 45 EL % 0.25 % 0.00 % 0.00 % 0.25 % 0.17 % 0.00 % 0.00 % 0.17 % Point of sale loans and leases $ 1,437,391 $ 2,390 $ - $ 1,439,781 $ 1,277,011 $ 2,565 $ - $ 1,279,576 ECL allowance 370 - - 370 275 - - 275 EL % 0.03 % 0.00 % 0.00 % 0.03 % 0.02 % 0.00 % 0.00 % 0.02 % Public sector and other financing $ 31,168 $ 79 $ - $ 31,247 $ 32,507 $ 80 $ - $ 32,587 ECL allowance 4 - - 4 16 3 - 19 EL % 0.01 % 0.00 % 0.00 % 0.01 % 0.05 % 3.75 % 0.00 % 0.06 % Loans $ 2,151,108 $ 57,349 $ - $ 2,208,457 $ 2,030,956 $ 65,352 $ - $ 2,096,308 Total ECL allowance 1,359 96 - 1,455 1,316 137 - 1,453 Total EL % 0.06 % 0.17 % 0.00 % 0.07 % 0.06 % 0.21 % 0.00 % 0.07 % |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, assets [text block] | (thousands of Canadian dollars) Reported 100 % 100 % 100 % ECL Upside Baseline Downside Allowance for expected credit losses $ 1,455 $ 898 $ 1,193 $ 1,675 Variance from reported ECL (557 ) (262 ) 220 Variance from reported ECL (%) (38 %) (18 %) 15 % |
Disclosure of Reconciliation of changes in allowance account for credit losses of financial assets [text block] | (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Commercial real estate mortgages Balance at beginning of period $ 980 $ 134 $ - $ 1,114 Transfer in (out) to Stage 1 14 (14 ) - - Transfer in (out) to Stage 2 (4 ) 4 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (28 ) (24 ) - (52 ) Loan originations 80 - - 80 Derecognitions and maturities (93 ) (4 ) - (97 ) Provision for (recovery of) credit losses (31 ) (38 ) - (69 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 949 $ 96 $ - $ 1,045 Commercial real estate loans Balance at beginning of period $ 45 $ - $ - $ 45 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (9 ) - - (9 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (9 ) - - (9 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 36 $ - $ - $ 36 Point of sale loans and leases Balance at beginning of period $ 275 $ - $ - $ 275 Transfer in (out) to Stage 1 38 (38 ) - - Transfer in (out) to Stage 2 (58 ) 58 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 115 (20 ) - 95 Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses 95 - - 95 Write-offs - - - - Recoveries - - - - Balance at end of period $ 370 $ - $ - $ 370 Public sector and other financing Balance at beginning of period $ 16 $ 3 $ - $ 19 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (11 ) (3 ) - (14 ) Loan originations - - - - Derecognitions and maturities (1 ) - - (1 ) Provision for (recovery of) credit losses (12 ) (3 ) - (15 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 4 $ - $ - $ 4 Total balance at end of period $ 1,359 $ 96 $ - $ 1,455 (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Commercial real estate mortgages Balance at beginning of period $ 1,174 $ 192 $ - $ 1,366 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 (2 ) 2 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 67 10 - 77 Loan originations 146 - - 146 Derecognitions and maturities (39 ) (37 ) - (76 ) Provision for (recovery of) credit losses 172 (25 ) - 147 Write-offs - - - - Recoveries - - - - Balance at end of period $ 1,346 $ 167 $ - $ 1,513 Commercial real estate loans Balance at beginning of period $ 137 $ - $ - $ 137 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (65 ) - - (65 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (65 ) - - (65 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 72 $ - $ - $ 72 Point of sale loans and leases Balance at beginning of period $ 215 $ - $ - $ 215 Transfer in (out) to Stage 1 20 (20 ) - - Transfer in (out) to Stage 2 (44 ) 44 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 16 (24 ) - (8 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (8 ) - - (8 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 207 $ - $ - $ 207 Public sector and other financing Balance at beginning of period $ 57 $ - $ - $ 57 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (17 ) - - (17 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (17 ) - - (17 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 40 $ - $ - $ 40 Total balance at end of period $ 1,665 $ 167 $ - $ 1,832 |
Note 5 - Other Assets (Tables)
Note 5 - Other Assets (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about other assets [text block] | (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Accounts receivable $ 2,938 $ 2,643 $ 2,604 Prepaid expenses and other 16,881 12,699 9,726 Property and equipment 6,905 7,075 7,643 Right-of-use assets 4,643 4,817 5,337 Deferred income tax asset 2,868 2,931 4,286 Investment 953 953 - Goodwill 5,754 5,754 5,754 Intangible assets 3,527 3,641 3,886 Total other assets $ 44,469 $ 40,513 $ 39,236 |
Note 6 - Subordinated Notes P_2
Note 6 - Subordinated Notes Payable (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about borrowings [text block] | (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Ten 5.0 500,000 10.41 March 2029 $ 4,901 $ 4,898 $ 4,891 Ten 75.0 5.38 May 2031 92,825 90,374 - $ 97,726 $ 95,272 $ 4,891 |
Note 7 - Other Liabilities (Tab
Note 7 - Other Liabilities (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about other liabilities [text block] | (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Accounts payable and other $ 6,155 $ 6,893 $ 5,359 Current income tax liability 1,975 2,949 1,052 Deferred income tax liability 855 898 898 Lease obligations 4,944 5,113 5,598 Cash collateral and amounts held in escrow 5,252 7,887 3,379 Cash reserves on loan and lease receivables 114,485 110,764 99,597 $ 133,666 $ 134,504 $ 115,883 |
Note 8 - Share Capital (Tables)
Note 8 - Share Capital (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of number and weighted average exercise prices of share options [text block] | for the three months ended January 31, 2022 January 31, 2021 Weighted Weighted Number of average Number of average options exercise price options exercise price Outstanding, beginning of period 40,000 $ 7.00 42,017 $ 10.73 Granted 913,730 15.90 - - Exercised - - - - Forfeired/cancelled - - - - Expired - - - - Outstanding, end of period 953,730 $ 15.53 42,017 $ 10.73 |
Note 10 - Income Per Common S_2
Note 10 - Income Per Common Share (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Earnings per share [text block] | (thousands of Canadian dollars) for the three months ended January 31 January 31 2022 2021 Net income $ 5,566 $ 5,290 Less: dividends on preferred shares (247 ) (542 ) 5,319 4,748 Average number of common shares outstanding 27,441,082 21,123,559 Income per common share: $ 0.19 $ 0.22 |
Note 11 - Commitments and Con_2
Note 11 - Commitments and Contingencies (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of commitments [text block] | (thousands of Canadian dollars) January 31 October 31 January 31 2022 2021 2021 Loan commitments $ 315,764 $ 296,248 $ 270,687 Letters of credit 51,131 46,462 48,290 $ 366,895 $ 342,710 $ 318,977 |
Note 13 - Capital Management (T
Note 13 - Capital Management (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of regulatory capital and capital ratios [text block] | (thousands of Canadian dollars) January 31 October 31 2022 2021 "Transitional" & "All in" "All in" Common Equity Tier 1 (CET1) capital Directly issued qualifying common share capital $ 228,015 $ 227,819 Retained earnings 95,276 90,644 Accumulated other comprehensive income 13 (4 ) CET1 before regulatory adjustments 323,304 318,459 Regulatory adjustments applied to CET1 (12,479 ) (12,751 ) Common Equity Tier 1 capital $ 310,825 $ 305,708 Additional Tier 1 capital Directly issued qualifying Additional Tier 1 instruments $ 13,647 $ 13,647 Total Tier 1 capital $ 324,472 $ 319,355 Tier 2 capital Directly issued Tier 2 capital instruments $ 100,310 $ 97,910 Tier 2 capital before regulatory adjustments 100,310 97,910 Eligible stage 1 and stage 2 allowance 1,455 1,453 Total Tier 2 capital $ 101,765 $ 99,363 Total regulatory capital $ 426,237 $ 418,718 Total risk-weighted assets $ 2,095,335 $ 2,013,544 Capital ratios CET1 capital ratio 14.83 % 15.18 % Tier 1 capital ratio 15.49 % 15.86 % Total capital ratio 20.34 % 20.80 % (thousands of Canadian dollars) January 31 October 31 2022 2021 "Transitional" & "All in" "All in" On-balance sheet assets $ 2,415,346 $ 2,415,086 Assets amounts adjusted in determining the Basel III Tier 1 capital (12,479 ) (12,751 ) Total on-balance sheet exposures 2,402,867 2,402,335 Total off-balance sheet exposure at gross notional amount $ 366,895 $ 342,710 Adjustments for conversion to credit equivalent amount (212,919 ) (210,065 ) Total off-balance sheet exposures 153,976 132,645 Tier 1 capital 324,472 319,355 Total exposures 2,556,843 2,534,980 Leverage ratio 12.69 % 12.60 % |
Note 14 - Interest Rate Risk _2
Note 14 - Interest Rate Risk Position (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Sensitivity analysis for types of market risk [text block] | (thousands of Canadian dollars) January 31, 2022 October 31, 2021 Increase 100 bps Decrease 100 bps Increase 100 bps Decrease 100 bps Increase (decrease): Impact on projected net interest income during a 12 month period $ 3,951 $ (3,951 ) $ 4,147 $ (3,220 ) Impact on reported equity during a 60 month period $ 717 $ (1,196 ) $ 1,603 $ (1,586 ) Duration difference between assets and liabilities (months) 2.0 2.3 |
Note 15 - Fair Value of Finan_2
Note 15 - Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about financial instruments [text block] | (thousands of Canadian dollars) As at January 31, 2022 October 31, 2021 Book Fair Book Fair (thousands of Canadian dollars) Value Value Value Value Assets Cash and cash equivalents $ 155,239 $ 155,239 $ 271,523 $ 271,523 Loans 2,215,638 2,231,040 2,103,050 2,118,636 Other financial assets 3,891 3,891 3,596 3,596 Liabilities Deposits $ 1,847,003 $ 1,830,923 $ 1,853,204 $ 1,860,332 Subordinated notes payable 97,726 100,310 95,272 97,910 Other financial liabilities 130,836 130,836 130,657 130,657 |
Note 16 - Operating Segmentat_2
Note 16 - Operating Segmentation (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of operating segments [text block] | (thousands of Canadian dollars) for the three months ended January 31, 2022 January 31, 2021 Banking Cybersecurity Eliminations Consolidated Banking Cybersecurity Eliminations Consolidated and Adjustments and Adjustments Net interest income $ 16,885 $ - $ - $ 16,885 $ 14,374 $ - $ - $ 14,374 Non-interest income - 1,422 (41 ) 1,381 (17 ) 1,093 (28 ) 1,048 Total revenue 16,885 1,422 (41 ) 18,266 14,357 1,093 (28 ) 15,422 Provision for (recovery of) credit losses 2 - - 2 57 - - 57 16,883 1,422 (41 ) 18,264 14,300 1,093 (28 ) 15,365 Non-interest expenses: Salaries and benefits 5,440 643 - 6,083 4,698 332 - 5,030 General and administrative 3,482 183 (41 ) 3,624 2,062 305 (28 ) 2,339 Premises and equipment 582 347 - 929 570 148 - 718 9,504 1,173 (41 ) 10,636 7,330 785 (28 ) 8,087 Income before income taxes 7,379 249 - 7,628 6,970 308 - 7,278 Income tax provision 1,961 101 - 2,062 1,853 135 - 1,988 Net income $ 5,418 $ 148 $ - $ 5,566 $ 5,117 $ 173 $ - $ 5,290 Total assets $ 2,412,167 $ 23,767 $ (20,588 ) $ 2,415,346 $ 2,041,784 $ 20,612 $ (17,420 ) $ 2,044,976 Total liabilities $ 2,072,691 $ 25,147 $ (19,443 ) $ 2,078,395 $ 1,781,121 $ 20,622 $ (16,275 ) $ 1,785,468 |
Note 4 - Loans (Details Textual
Note 4 - Loans (Details Textual) - Loans [member] - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 |
Statement Line Items [Line Items] | |||
Total financial assets | $ 2,215,638 | $ 2,103,050 | $ 1,793,724 |
Financial assets impaired [member] | |||
Statement Line Items [Line Items] | |||
Total financial assets | $ 0 | $ 0 |
Note 4 - Loans - Portfolio Anal
Note 4 - Loans - Portfolio Analysis (Details) - Loans [member] - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2020 |
Statement Line Items [Line Items] | ||||
Principal amount | $ 2,208,457 | $ 2,096,308 | $ 1,788,560 | |
Allowance for credit losses | (1,455) | (1,453) | (1,832) | |
Accrued interest | 8,636 | 8,195 | 6,996 | |
Total loans, net of allowance for credit losses | 2,215,638 | 2,103,050 | 1,793,724 | |
Commercial real estate mortgages [member] | ||||
Statement Line Items [Line Items] | ||||
Principal amount | 722,829 | 757,576 | 712,256 | |
Allowance for credit losses | (1,045) | (1,114) | (1,513) | $ (1,366) |
Commercial real estate loans [member] | ||||
Statement Line Items [Line Items] | ||||
Principal amount | 14,600 | 26,569 | 31,663 | |
Allowance for credit losses | (36) | (45) | (72) | (137) |
Point of sale loans and leases [member] | ||||
Statement Line Items [Line Items] | ||||
Principal amount | 1,439,781 | 1,279,576 | 1,008,029 | |
Allowance for credit losses | (370) | (275) | (207) | (215) |
Public sector and other financing [member] | ||||
Statement Line Items [Line Items] | ||||
Principal amount | 31,247 | 32,587 | 36,612 | |
Allowance for credit losses | $ (4) | $ (19) | $ (40) | $ (57) |
Note 4 - Loans - Summary of Loa
Note 4 - Loans - Summary of Loan, ECL, and EL amounts by lending asset category (Details) - Loans [member] - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2020 |
Statement Line Items [Line Items] | ||||
Notional amount | $ 2,208,457 | $ 2,096,308 | $ 1,788,560 | |
ECL allowance | $ 1,455 | $ 1,453 | 1,832 | |
EL % | 0.07% | 0.07% | ||
Stage 1 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 2,151,108 | $ 2,030,956 | ||
ECL allowance | $ 1,359 | $ 1,316 | 1,665 | |
EL % | 0.06% | 0.06% | ||
Stage 2 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 57,349 | $ 65,352 | ||
ECL allowance | $ 96 | $ 137 | 167 | |
EL % | 0.17% | 0.21% | ||
Financial instruments credit-impaired [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 0 | $ 0 | ||
ECL allowance | $ 0 | $ 0 | 0 | |
EL % | 0.00% | 0.00% | ||
Commercial real estate mortgages [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 722,829 | $ 757,576 | 712,256 | |
ECL allowance | $ 1,045 | $ 1,114 | 1,513 | $ 1,366 |
EL % | 0.14% | 0.15% | ||
Commercial real estate mortgages [member] | Stage 1 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 667,949 | $ 694,869 | ||
ECL allowance | $ 949 | $ 980 | 1,346 | 1,174 |
EL % | 0.14% | 0.14% | ||
Commercial real estate mortgages [member] | Stage 2 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 54,880 | $ 62,707 | ||
ECL allowance | $ 96 | $ 134 | 167 | 192 |
EL % | 0.17% | 0.21% | ||
Commercial real estate mortgages [member] | Financial instruments credit-impaired [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 0 | $ 0 | ||
ECL allowance | $ 0 | $ 0 | 0 | 0 |
EL % | 0.00% | 0.00% | ||
Commercial real estate loans [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 14,600 | $ 26,569 | 31,663 | |
ECL allowance | $ 36 | $ 45 | 72 | 137 |
EL % | 0.25% | 0.17% | ||
Commercial real estate loans [member] | Stage 1 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 14,600 | $ 26,569 | ||
ECL allowance | $ 36 | $ 45 | 72 | 137 |
EL % | 0.25% | 0.17% | ||
Commercial real estate loans [member] | Stage 2 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 0 | $ 0 | ||
ECL allowance | $ 0 | $ 0 | 0 | 0 |
EL % | 0.00% | 0.00% | ||
Commercial real estate loans [member] | Financial instruments credit-impaired [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 0 | $ 0 | ||
ECL allowance | $ 0 | $ 0 | 0 | 0 |
EL % | 0.00% | 0.00% | ||
Point of sale loans and leases [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 1,439,781 | $ 1,279,576 | 1,008,029 | |
ECL allowance | $ 370 | $ 275 | 207 | 215 |
EL % | 0.03% | 0.02% | ||
Point of sale loans and leases [member] | Stage 1 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 1,437,391 | $ 1,277,011 | ||
ECL allowance | $ 370 | $ 275 | 207 | 215 |
EL % | 0.03% | 0.02% | ||
Point of sale loans and leases [member] | Stage 2 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 2,390 | $ 2,565 | ||
ECL allowance | $ 0 | $ 0 | 0 | 0 |
EL % | 0.00% | 0.00% | ||
Point of sale loans and leases [member] | Financial instruments credit-impaired [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 0 | $ 0 | ||
ECL allowance | $ 0 | $ 0 | 0 | 0 |
EL % | 0.00% | 0.00% | ||
Public sector and other financing [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 31,247 | $ 32,587 | 36,612 | |
ECL allowance | $ 4 | $ 19 | 40 | 57 |
EL % | 0.01% | 0.06% | ||
Public sector and other financing [member] | Stage 1 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 31,168 | $ 32,507 | ||
ECL allowance | $ 4 | $ 16 | 40 | 57 |
EL % | 0.01% | 0.05% | ||
Public sector and other financing [member] | Stage 2 [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 79 | $ 80 | ||
ECL allowance | $ 0 | $ 3 | 0 | 0 |
EL % | 0.00% | 3.75% | ||
Public sector and other financing [member] | Financial instruments credit-impaired [member] | ||||
Statement Line Items [Line Items] | ||||
Notional amount | $ 0 | $ 0 | ||
ECL allowance | $ 0 | $ 0 | $ 0 | $ 0 |
EL % | 0.00% | 0.00% |
Note 4 - Loans - Expected Credi
Note 4 - Loans - Expected Credit Loss Sensitivity (Details) - Loans [member] - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 |
Statement Line Items [Line Items] | |||
Allowance for expected credit losses | $ 1,455 | $ 1,453 | $ 1,832 |
Upside, 100% [member] | |||
Statement Line Items [Line Items] | |||
Allowance for expected credit losses | 898 | ||
Variance from reported ECL | $ (557) | ||
Variance from reported ECL (%) | (38.00%) | ||
Baseline, 100% [member] | |||
Statement Line Items [Line Items] | |||
Allowance for expected credit losses | $ 1,193 | ||
Variance from reported ECL | $ (262) | ||
Variance from reported ECL (%) | (18.00%) | ||
Downside, 100% [member] | |||
Statement Line Items [Line Items] | |||
Allowance for expected credit losses | $ 1,675 | ||
Variance from reported ECL | $ 220 | ||
Variance from reported ECL (%) | 15.00% |
Note 4 - Loans - Reconciliation
Note 4 - Loans - Reconciliation of ECL Allowance by Lending Asset Category (Details) - CAD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Statement Line Items [Line Items] | ||
Provision for (recovery of) credit losses | $ 2 | $ 57 |
Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 1,453 | |
Balance at end of period | 1,455 | 1,832 |
Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 1,316 | |
Balance at end of period | 1,359 | 1,665 |
Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 137 | |
Balance at end of period | 96 | 167 |
Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | |
Balance at end of period | 0 | 0 |
Commercial real estate mortgages [member] | Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 1,114 | 1,366 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (52) | 77 |
Loan originations | 80 | 146 |
Derecognitions and maturities | (97) | (76) |
Provision for (recovery of) credit losses | (69) | 147 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 1,045 | 1,513 |
Commercial real estate mortgages [member] | Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 980 | 1,174 |
Transfer in (out) to Stage 1 | 14 | 0 |
Transfer in (out) to Stage 2 | (4) | (2) |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (28) | 67 |
Loan originations | 80 | 146 |
Derecognitions and maturities | (93) | (39) |
Provision for (recovery of) credit losses | (31) | 172 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 949 | 1,346 |
Commercial real estate mortgages [member] | Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 134 | 192 |
Transfer in (out) to Stage 1 | (14) | 0 |
Transfer in (out) to Stage 2 | 4 | 2 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (24) | 10 |
Loan originations | 0 | 0 |
Derecognitions and maturities | (4) | (37) |
Provision for (recovery of) credit losses | (38) | (25) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 96 | 167 |
Commercial real estate mortgages [member] | Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Commercial real estate loans [member] | Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 45 | 137 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (9) | (65) |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | (9) | (65) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 36 | 72 |
Commercial real estate loans [member] | Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 45 | 137 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (9) | (65) |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | (9) | (65) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 36 | 72 |
Commercial real estate loans [member] | Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Commercial real estate loans [member] | Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Point of sale loans and leases [member] | Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 275 | 215 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 95 | (8) |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 95 | (8) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 370 | 207 |
Point of sale loans and leases [member] | Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 275 | 215 |
Transfer in (out) to Stage 1 | 38 | 20 |
Transfer in (out) to Stage 2 | (58) | (44) |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 115 | 16 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 95 | (8) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 370 | 207 |
Point of sale loans and leases [member] | Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | (38) | (20) |
Transfer in (out) to Stage 2 | 58 | 44 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (20) | (24) |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Point of sale loans and leases [member] | Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Public sector and other financing [member] | Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 19 | 57 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (14) | (17) |
Loan originations | 0 | 0 |
Derecognitions and maturities | (1) | 0 |
Provision for (recovery of) credit losses | (15) | (17) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 4 | 40 |
Public sector and other financing [member] | Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 16 | 57 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (11) | (17) |
Loan originations | 0 | 0 |
Derecognitions and maturities | (1) | 0 |
Provision for (recovery of) credit losses | (12) | (17) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 4 | 40 |
Public sector and other financing [member] | Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 3 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (3) | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | (3) | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Public sector and other financing [member] | Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | $ 0 | $ 0 |
Note 5 - Other Assets (Details
Note 5 - Other Assets (Details Textual) - Canada Stablecorp Inc.[member] | 1 Months Ended |
Feb. 28, 2021CAD ($) | |
Statement Line Items [Line Items] | |
Proportion of ownership interest in associate | 11.00% |
Purchase of interests in associates | $ 953,000 |
Note 5 - Other Assets - Schedul
Note 5 - Other Assets - Schedule of Other Assets (Details) - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 |
Statement Line Items [Line Items] | |||
Accounts receivable | $ 2,938 | $ 2,643 | $ 2,604 |
Prepaid expenses and other | 16,881 | 12,699 | 9,726 |
Property and equipment | 6,905 | 7,075 | 7,643 |
Right-of-use assets | 4,643 | 4,817 | 5,337 |
Deferred income tax asset | 2,868 | 2,931 | 4,286 |
Investment | 953 | 953 | 0 |
Goodwill | 5,754 | 5,754 | 5,754 |
Intangible assets | 3,527 | 3,641 | 3,886 |
Total other assets | $ 44,469 | $ 40,513 | $ 39,236 |
Note 6 - Subordinated Notes P_3
Note 6 - Subordinated Notes Payable - Schedule of Subordinated Notes Payable (Details) - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 |
Subordinated notes payable, maturing March 2029 [member] | |||
Statement Line Items [Line Items] | |||
Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of $5.0 million, $500,000 is held by related party (note 12), effective interest rate of 10.41%, maturing March 2029. | $ 4,901 | $ 4,898 | $ 4,891 |
Subordinated notes payable, maturing May 2031 [member] | |||
Statement Line Items [Line Items] | |||
Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of $5.0 million, $500,000 is held by related party (note 12), effective interest rate of 10.41%, maturing March 2029. | 92,825 | 90,374 | 0 |
Subordinated notes payable [member] | |||
Statement Line Items [Line Items] | |||
Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of $5.0 million, $500,000 is held by related party (note 12), effective interest rate of 10.41%, maturing March 2029. | $ 97,726 | $ 95,272 | $ 4,891 |
Note 6 - Subordinated Notes P_4
Note 6 - Subordinated Notes Payable - Schedule of Subordinated Notes Payable (Details) (Parentheticals) - CAD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2021 | |
Subordinated notes payable, maturing March 2029 [member] | |||
Statement Line Items [Line Items] | |||
Term (Year) (Year) | 10 years | 10 years | 10 years |
Principal amount | $ 5 | $ 5 | $ 5 |
Interest rate | 10.41% | 10.41% | 10.41% |
Maturity date | Mar. 31, 2029 | Mar. 31, 2029 | Mar. 31, 2029 |
Subordinated notes payable, maturing March 2029 [member] | Key management personnel of entity or parent [member] | |||
Statement Line Items [Line Items] | |||
Principal amount | $ 0.5 | $ 0.5 | $ 0.5 |
Subordinated notes payable, maturing May 2031 [member] | |||
Statement Line Items [Line Items] | |||
Term (Year) (Year) | 10 years | 10 years | 10 years |
Principal amount | $ 75 | $ 75 | $ 75 |
Interest rate | 5.38% | 5.38% | 5.38% |
Maturity date | May 31, 2031 | May 31, 2031 | May 31, 2031 |
Note 7 - Other Liabilities - Sc
Note 7 - Other Liabilities - Schedule of Other Liabilities (Details) - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 |
Statement Line Items [Line Items] | |||
Accounts payable and other | $ 6,155 | $ 6,893 | $ 5,359 |
Current income tax liability | 1,975 | 2,949 | 1,052 |
Deferred income tax liability | 855 | 898 | 898 |
Lease obligations | 4,944 | 5,113 | 5,598 |
Cash collateral and amounts held in escrow | 5,252 | 7,887 | 3,379 |
Cash reserves on loan and lease receivables | 114,485 | 110,764 | 99,597 |
Other liabilities | $ 133,666 | $ 134,504 | $ 115,883 |
Note 8 - Share Capital (Details
Note 8 - Share Capital (Details Textual) | Apr. 30, 2021CAD ($)$ / sharesshares | Jan. 31, 2022CAD ($)$ / sharesshares | Jan. 31, 2021CAD ($) | Oct. 31, 2021shares | Oct. 31, 2020 |
Statement Line Items [Line Items] | |||||
Term of share option for share-based payment arrangement (Year) | 5 years | ||||
Vesting period of share options for share-based payment arrangement (Year) | 3 years | ||||
Maximum number of instruments authorized in share-based payment arrangement (in shares) | 1,240,000 | ||||
Number of share options outstanding in share-based payment arrangement at end of period | 953,730 | 42,017 | 40,000 | 42,017 | |
Total expense from share-based payment transactions in which goods or services received did not qualify for recognition as assets | $ | $ 196,000 | $ 0 | |||
Number of share options granted in share-based payment arrangement | 913,730 | 0 | |||
Risk free interest rate, share options granted | 1.26% | ||||
Option life, share options granted | 3.5 | ||||
Expected volatility, share options granted | 29.50% | ||||
Expected dividend as percentage, share options granted | 0.64% | ||||
Forfeiture rate, share options granted | 2.00% | ||||
Weighted average share price, share options granted (in CAD per share) | $ / shares | $ 3.10 | ||||
Number of share options exercisable in share-based payment arrangement | 40,000 | ||||
Weighted average exercise price of share options exercisable in share-based payment arrangement (in CAD per share) | $ / shares | $ 7 | ||||
Ordinary shares [member] | |||||
Statement Line Items [Line Items] | |||||
Number of shares outstanding at end of period (in shares) | 27,441,082 | 27,441,082 | |||
Series 1 preferred shares [member] | |||||
Statement Line Items [Line Items] | |||||
Number of shares outstanding at end of period (in shares) | 1,461,460 | 1,461,460 | |||
Series 3 preferred shares [member] | |||||
Statement Line Items [Line Items] | |||||
Number of shares outstanding at end of period (in shares) | 1,681,320 | 0 | |||
Preference shares, conversion price (in CAD per share) | $ / shares | $ 10 | ||||
Payments for redemption of preference shares | $ | $ 16,800,000 | ||||
Share issue related cost | $ | $ 1,100,000 |
Note 8 - Share Capital - Stock
Note 8 - Share Capital - Stock Option Transactions (Details) | 3 Months Ended | |
Jan. 31, 2022$ / shares | Jan. 31, 2021$ / shares | |
Statement Line Items [Line Items] | ||
Outstanding, beginning of period | 40,000 | 42,017 |
Outstanding, beginning of period, weighted average exercise price (in CAD per share) | $ 7 | $ 10.73 |
Granted | 913,730 | 0 |
Granted, weighted average exercise price (in CAD per share) | $ 15.90 | $ 0 |
Exercised | 0 | 0 |
Exercised, weighted average exercise price (in CAD per share) | $ 0 | $ 0 |
Forfeired/cancelled | 0 | 0 |
Forfeired/cancelled, weighted average exercise price (in CAD per share) | $ 0 | $ 0 |
Expired | 0 | 0 |
Expired, weighted average exercise price (in CAD per share) | $ 0 | $ 0 |
Outstanding, end of period | 953,730 | 42,017 |
Outstanding, end of period, weighted average exercise price (in CAD per share) | $ 15.53 | $ 10.73 |
Note 9 - Income Tax Provision (
Note 9 - Income Tax Provision (Details Textual) - CAD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Statement Line Items [Line Items] | ||
Tax income (expense) | $ 2,062 | $ 1,988 |
Applicable tax rate | 27.00% | 27.00% |
Note 10 - Income Per Common S_3
Note 10 - Income Per Common Share - Basic and Diluted Income Per Common Share (Details) - CAD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Statement Line Items [Line Items] | ||
Net income | $ 5,566 | $ 5,290 |
Less: dividends on preferred shares | (247) | (542) |
Profit (loss), attributable to ordinary equity holders of parent entity | $ 5,319 | $ 4,748 |
Weighted average number of common shares outstanding (in shares) | 27,441,082 | 21,123,559 |
Income per common share: (in CAD per share) | $ 0.19 | $ 0.22 |
Note 11 - Commitments and Con_3
Note 11 - Commitments and Contingencies - Credit Related Commitments (Details) - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 |
Statement Line Items [Line Items] | |||
Credit commitments | $ 366,895 | $ 342,710 | $ 318,977 |
Loan commitments [member] | |||
Statement Line Items [Line Items] | |||
Credit commitments | 315,764 | 296,248 | 270,687 |
Letters of credit [member] | |||
Statement Line Items [Line Items] | |||
Credit commitments | $ 51,131 | $ 46,462 | $ 48,290 |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) - CAD ($) | 3 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Mar. 31, 2019 | |
Statement Line Items [Line Items] | |||
Revenue from rendering of services, related party transactions | $ 24,000 | $ 17,000 | |
Subordinated notes payable [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 5,000,000 | ||
Key management personnel of entity or parent [member] | |||
Statement Line Items [Line Items] | |||
Amounts receivable, related party transactions | 1,400,000 | 1,400,000 | |
Allowance account for credit losses of financial assets at end of period | 0 | 0 | |
Key management personnel of entity or parent [member] | Subordinated notes payable [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 500,000 | ||
Corporation controlled by key management personnel [member] | |||
Statement Line Items [Line Items] | |||
Amounts receivable, related party transactions | $ 2,400,000 | $ 2,400,000 |
Note 13 - Capital Management (D
Note 13 - Capital Management (Details Textual) | Jan. 31, 2022 |
Statement Line Items [Line Items] | |
Maximum percentage of credit risk-weighted assets for allowance | 1.25% |
Required minimum capital ratio, common equity tier 1 | 7.00% |
Required minimum capital ratio, tier 1 capital | 8.50% |
Required minimum capital ratio, total capital | 10.50% |
Capital conservation buffer | 2.50% |
Minimum leverage ratio | 3.00% |
Note 13 - Capital Management -
Note 13 - Capital Management - Risk-based Capital Ratios (Details) - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 |
Statement Line Items [Line Items] | |||
Directly issued capital instruments | $ 241,662 | $ 241,466 | $ 182,094 |
Retained earnings | 95,276 | 90,644 | 77,414 |
Accumulated other comprehensive income | 13 | (4) | 0 |
Regulatory capital | 418,718 | ||
Total risk-weighted assets | $ 2,013,544 | ||
CET1 capital ratio | 20.80% | ||
Total assets | 2,415,346 | $ 2,415,086 | $ 2,044,976 |
Transitional [member] | |||
Statement Line Items [Line Items] | |||
Regulatory capital | 426,237 | ||
Total risk-weighted assets | $ 2,095,335 | ||
CET1 capital ratio | 20.34% | ||
Basel III [member] | |||
Statement Line Items [Line Items] | |||
Total assets | 2,415,086 | ||
Total on-balance sheet exposures | 2,402,335 | ||
Total off-balance sheet exposure at gross notional amount | $ 366,895 | 342,710 | |
Adjustments for conversion to credit equivalent amount | 210,065 | ||
Total off-balance sheet exposures | 153,976 | 132,645 | |
Total exposures | $ 2,534,980 | ||
Leverage ratio | 12.60% | ||
Basel III [member] | Transitional [member] | |||
Statement Line Items [Line Items] | |||
Total assets | 2,415,346 | ||
Total on-balance sheet exposures | 2,402,867 | ||
Adjustments for conversion to credit equivalent amount | 212,919 | ||
Total exposures | $ 2,556,843 | ||
Leverage ratio | 12.69% | ||
Common equity tier 1 [member] | |||
Statement Line Items [Line Items] | |||
Directly issued capital instruments | $ 227,819 | ||
Retained earnings | 90,644 | ||
Accumulated other comprehensive income | (4) | ||
Regulatory capital before adjustments | 318,459 | ||
Adjustments to capital | (12,751) | ||
Regulatory capital | $ 305,708 | ||
CET1 capital ratio | 15.18% | ||
Common equity tier 1 [member] | Transitional [member] | |||
Statement Line Items [Line Items] | |||
Directly issued capital instruments | $ 228,015 | ||
Retained earnings | 95,276 | ||
Accumulated other comprehensive income | 13 | ||
Regulatory capital before adjustments | 323,304 | ||
Adjustments to capital | (12,479) | ||
Regulatory capital | $ 310,825 | ||
CET1 capital ratio | 14.83% | ||
Capital Tier 1 [member] | |||
Statement Line Items [Line Items] | |||
Directly issued capital instruments | $ 13,647 | ||
Regulatory capital | $ 319,355 | ||
CET1 capital ratio | 15.86% | ||
Capital Tier 1 [member] | Transitional [member] | |||
Statement Line Items [Line Items] | |||
Directly issued capital instruments | $ 13,647 | ||
Regulatory capital | $ 324,472 | ||
CET1 capital ratio | 15.49% | ||
Tier 2 capital [member] | |||
Statement Line Items [Line Items] | |||
Directly issued capital instruments | $ 100,310 | $ 97,910 | |
Regulatory capital before adjustments | 97,910 | ||
Adjustments to capital | 1,453 | ||
Regulatory capital | $ 99,363 | ||
Tier 2 capital [member] | Transitional [member] | |||
Statement Line Items [Line Items] | |||
Regulatory capital before adjustments | 100,310 | ||
Adjustments to capital | 1,455 | ||
Regulatory capital | $ 101,765 |
Note 14 - Interest Rate Risk _3
Note 14 - Interest Rate Risk Position - Analysis of Sensitivity to Market Interest Rates (Details) - Interest rate risk [member] - CAD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jan. 31, 2022 | Oct. 31, 2021 | |
Increase 100 bps [member] | ||
Statement Line Items [Line Items] | ||
Impact on projected net interest income during a 12 month period | $ 3,951 | $ 4,147 |
Impact on reported equity during a 60 month period | $ 717 | $ 1,603 |
Duration difference between assets and liabilities (months) (Month) | 2 months | 2 months 9 days |
Decrease 100 bps [member] | ||
Statement Line Items [Line Items] | ||
Impact on projected net interest income during a 12 month period | $ (3,951) | $ (3,220) |
Impact on reported equity during a 60 month period | $ (1,196) | $ (1,586) |
Note 15 - Fair Value of Finan_3
Note 15 - Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - CAD ($) $ in Thousands | Jan. 31, 2022 | Oct. 31, 2021 |
Deposits from banks [member] | ||
Statement Line Items [Line Items] | ||
Liabilities, book value | $ 1,847,003 | $ 1,853,204 |
Liabilities, fair value | 1,830,923 | 1,860,332 |
Subordinated notes [member] | ||
Statement Line Items [Line Items] | ||
Liabilities, book value | 97,726 | 95,272 |
Liabilities, fair value | 100,310 | 97,910 |
Other liabilities [member] | ||
Statement Line Items [Line Items] | ||
Liabilities, book value | 130,836 | 130,657 |
Liabilities, fair value | 130,836 | 130,657 |
Cash and cash equivalents [member] | ||
Statement Line Items [Line Items] | ||
Assets, book value | 155,239 | 271,523 |
Assets, fair value | 155,239 | 271,523 |
Loans, net [member] | ||
Statement Line Items [Line Items] | ||
Assets, book value | 2,215,638 | 2,103,050 |
Assets, fair value | 2,231,040 | 2,118,636 |
Other assets [member] | ||
Statement Line Items [Line Items] | ||
Assets, book value | 3,891 | 3,596 |
Assets, fair value | $ 3,891 | $ 3,596 |
Note 16 - Operating Segmentat_3
Note 16 - Operating Segmentation (Details Textual) | 3 Months Ended |
Jan. 31, 2022 | |
Statement Line Items [Line Items] | |
Number of segments | 2 |
Note 16 - Operating Segmentat_4
Note 16 - Operating Segmentation - Results of Reportable Operating Segments (Details) - CAD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | |||
Net interest income | $ 16,885 | $ 14,374 | |
Non-interest income | 1,381 | 1,048 | |
Total revenue | 18,266 | 15,422 | |
Provision for (recovery of) credit losses | 2 | 57 | |
Revenue less provision for credit loss | 18,264 | 15,365 | |
Non-interest expenses: | |||
Salaries and benefits | 6,083 | 5,030 | |
General and administrative | 3,624 | 2,339 | |
Premises and equipment | 929 | 718 | |
Noninterest expense | 10,636 | 8,087 | |
Income before income taxes | 7,628 | 7,278 | |
Income tax provision | 2,062 | 1,988 | |
Net income | 5,566 | 5,290 | |
Total assets | 2,415,346 | 2,044,976 | $ 2,415,086 |
Total liabilities | 2,078,395 | 1,785,468 | $ 2,082,980 |
Elimination of intersegment amounts [member] | |||
Statement Line Items [Line Items] | |||
Net interest income | 0 | 0 | |
Non-interest income | (41) | (28) | |
Total revenue | (41) | (28) | |
Provision for (recovery of) credit losses | 0 | 0 | |
Revenue less provision for credit loss | (41) | (28) | |
Non-interest expenses: | |||
Salaries and benefits | 0 | 0 | |
General and administrative | (41) | (28) | |
Premises and equipment | 0 | 0 | |
Noninterest expense | (41) | (28) | |
Income before income taxes | 0 | 0 | |
Income tax provision | 0 | 0 | |
Net income | 0 | 0 | |
Total assets | (20,588) | (17,420) | |
Total liabilities | (19,443) | (16,275) | |
Banking segment [member] | Operating segments [member] | |||
Statement Line Items [Line Items] | |||
Net interest income | 16,885 | 14,374 | |
Non-interest income | 0 | (17) | |
Total revenue | 16,885 | 14,357 | |
Provision for (recovery of) credit losses | 2 | 57 | |
Revenue less provision for credit loss | 16,883 | 14,300 | |
Non-interest expenses: | |||
Salaries and benefits | 5,440 | 4,698 | |
General and administrative | 3,482 | 2,062 | |
Premises and equipment | 582 | 570 | |
Noninterest expense | 9,504 | 7,330 | |
Income before income taxes | 7,379 | 6,970 | |
Income tax provision | 1,961 | 1,853 | |
Net income | 5,418 | 5,117 | |
Total assets | 2,412,167 | 2,041,784 | |
Total liabilities | 2,072,691 | 1,781,121 | |
Cybersecurity segment [member] | Operating segments [member] | |||
Statement Line Items [Line Items] | |||
Net interest income | 0 | 0 | |
Non-interest income | 1,422 | 1,093 | |
Total revenue | 1,422 | 1,093 | |
Provision for (recovery of) credit losses | 0 | 0 | |
Revenue less provision for credit loss | 1,422 | 1,093 | |
Non-interest expenses: | |||
Salaries and benefits | 643 | 332 | |
General and administrative | 183 | 305 | |
Premises and equipment | 347 | 148 | |
Noninterest expense | 1,173 | 785 | |
Income before income taxes | 249 | 308 | |
Income tax provision | 101 | 135 | |
Net income | 148 | 173 | |
Total assets | 23,767 | 20,612 | |
Total liabilities | $ 25,147 | $ 20,622 |