XML 35 R14.htm IDEA: XBRL DOCUMENT

Note 9 - Share Capital

6 Months Ended

Apr. 30, 2023

Disclosure of classes of share capital [text block]

9.	Share capital:

a) Common shares:

At April 30, 2023, there were 26,003,986 ( October 31, 2022 - 27,245,782) common shares outstanding.

On August 5, 2022, the Bank received approval from the Toronto Stock Exchange (“TSX”) to proceed with a Normal Course Issuer Bid (“NCIB”) for its common shares. Further, on September 21, 2022, the Bank received approval from the Nasdaq to proceed with a NCIB for its common shares. Pursuant to the NCIB, the Bank may purchase for cancellation up to 1,700,000 of its common shares representing approximately 9.54% of its public float. The Bank’s directors and management believe that the market price of the Bank’s common shares does not reflect the value of the business and its future prospects, and further, reflects a material discount to book value; as such, the purchase of common shares for cancellation at such time is a prudent corporate measure and represents an attractive investment for the Bank.

The Bank was eligible to make purchases commencing on August 17, 2022 and ending on August 16, 2023, or such earlier date as the Bank may complete its purchases pursuant to the NCIB. The purchases will be made by the Bank through the facilities of the TSX and alternate trading systems and in accordance with the rules of the TSX or such alternate trading systems, as applicable, and the prices that the Bank will pay for any common shares will be the market price of such shares at the time of purchase. The Bank will make no purchases of common shares other than open market purchases. All shares purchased under the NCIB will be cancelled.

For the quarter ended April 30, 2023, the Bank purchased and cancelled 419,500 common shares for $4.2 million, reducing the Bank’s Common Share capital value by $3.6 million and retained earnings by $0.6 million.

For the six month period ended April 30, 2023, the Bank purchased and cancelled 1,241,796 common shares for $12.6 million, reducing the Bank’s Common Share capital value by $10.7 million and retained earnings by $1.8 million.

b) Preferred shares:

At April 30, 2023, there were 1,461,460 ( October 31, 2022 - 1,461,460) Series 1 preferred shares outstanding. These shares are Basel III compliant, non-cumulative rate reset preferred shares and include NVCC provisions. As a result, these shares qualify as Additional Tier 1 Capital (see note 15).

c) Stock options

Stock option transactions during the three and six month periods ended April 30, 2023 and 2022:

		for the three months ended													for the six months ended
		April 30, 2023							April 30, 2022						April 30, 2023							April 30, 2022

					Weighted						Weighted							Weighted						Weighted
	Number of				average			Number of			average			Number of				average			Number of			average
	options				exercise price			options			exercise price			options				exercise price			options			exercise price

Outstanding, beginning of period			963,276			$	15.53			953,730		$	15.53			965,766			$	15.53			40,000		$	7.00
Granted			-				-			-			-			1,500				15.90			913,730			15.90
Exercised			-				-			-			-			-				-			-			-
Forfeited/cancelled			(10,500	)			15.90			-			-			(14,490	)			15.90			-			-
Expired			-				-			-			-			-				-			-			-

Outstanding, end of period			952,776			$	15.53			953,730		$	15.53			952,776			$	15.53			953,730		$	15.53

For the three and six month periods ended April 30, 2023, the Bank recognized $192,000 ( April 30, 2022 - $424,000) and $535,000 ( April 30, 2022 - $620,000) in compensation expense related to the estimated fair value of options granted.