Versailles Financial Corp (VERF)2025-07-27Versailles Savings Bank is one of the smallest community banks in our list. The holding company has a market cap under $8M and assets of around $62M. Float is under 250K with less than half of that held at DTC.
This is a single branch bank in a rural area of southwest Ohio. It consistently makes a profit, and pays a once per year annual dividend of around 3.5%. They have done well with investments, as AOCI loss is now down to $135K (1.1% of equity).
Purchasing shares is very difficult, although possible through a brokerage now that it is on the OTCID. Previously on the original OTC Pink it moved to the Expert Market which was no-man's land for a stock. Risks here are inability to sell your shares due to lack of an active market, or that it might move down to the OTC Pink Limited. Apparently no broker-dealers make a market in this stock.
The company doesn't seem to have any growth ambition, just keeps plugging along with their single branch. It is Pickwick's belief that VERF should consider buying GVFF and put them out of their misery, as discussed in our review of that bank. A combination would result in a five branch bank with a market cap over $20M. Alternatively VERF is (along with GVFF) a good candidate for LCNB to purchase. So one could purchase a round lot, pick up a 3.5% yield, and hope for that buyout. Book value is 60% above the last trade.
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