Mr. David Taylor reports

VERSABANK IMPLEMENTS NEW INTERNALLY DEVELOPED ARTIFICIAL INTELLIGENCE CAPABILITIES WITHIN CORE BANKING TECHNOLOGY

VersaBank has implemented new, internally developed, state-of-the-art artificial intelligence capabilities within its proprietary core banking technology. The new AI capabilities enable VersaBank to actively monitor the entirety of its receivable purchase program portfolio continuously in real time, further enhancing its already low-risk credit asset model. The bank is developing innovative new financing options within its RPP, including real-time purchasing of cash flow streams, based on its enhanced AI capabilities, to further expand market share in Canada and accelerate the ramp-up in the United States, which it expects to launch in the near term.

"For more than three decades, VersaBank has been at the leading edge of technological innovation in the banking industry to drive credit asset and revenue growth and enhance operating leverage, while strengthening what we believe to be one of the lowest-risk profiles in the U.S. and Canadian banking sector," said David Taylor, founder and president, VersaBank. "The implementation of these new AI capabilities, developed entirely in-house, is expected to extend our track record in this regard as we execute on a strategy to introduce more first-of-their-kind financing offerings on both sides of the border."

About VersaBank

VersaBank is a North American bank with a difference. Federally chartered in both Canada and the United States, VersaBank has a branchless, digital, business-to-business model based on its proprietary state-of-the-art technology that enables it to profitably address underserved segments of the banking industry in a significantly risk mitigated manner. Because VersaBank obtains substantially all of its deposits and undertakes the majority of its financing electronically through financial intermediary partners, it benefits from significant operating leverage that drives efficiency and return on common equity. In August, 2024, VersaBank broadly launched its unique receivable purchase program financing solution for point-of-sale finance companies, which has been highly successful in Canada for nearly 15 years, to the underserved multitrillion-dollar U.S. market. VersaBank also owns DRT Cyber Inc., based in Washington, D.C., a North America leader in the provision of cybersecurity services to address the rapidly growing volume of cyber threats challenging financial institutions, multinational corporations and government entities. Through its wholly owned subsidiary, Digital Meteor Inc., VersaBank owns proprietary intellectual property and technology to enable the next generation of digital assets for the banking and financial community, including the bank's revolutionary digital deposit receipts.

VersaBank's common shares trade on the Toronto Stock Exchange and Nasdaq under the symbol VBNK.

We seek Safe Harbor.