Mr. David Taylor reports

VERSABANK ANNOUNCES PUBLIC FILING OF FORM S-4 REGISTRATION STATEMENT WITH THE SEC

VersaBank has publicly filed a Form S-4 registration statement (file No. 333-296444) with the United States Securities and Exchange Commission (the SEC) in connection with the bank's proposed plan to realign its corporate structure to a standard U.S. bank framework. Specifically, the reorganization, among other things, will cause Versa Bancorp, a new Delaware corporation to become the holding company of VersaBank and VersaBank USA National Association.

The registration statement has not been declared effective, and a result, the information contained therein is subject to change. Upon the registration statement being declared effective by the SEC, the bank intends to convene a special meeting of shareholders at which it will seek approval of the reorganization. In addition to the approval of shareholders, the completion of the reorganization remains subject to various regulatory approvals, including approval by the Office of the Superintendent of Financial Institutions and Ministry of Finance in Canada and the Federal Reserve Board in the United states. There can be no assurance that VersaBank will receive shareholder or regulatory approval in a timely manner, if at all.

"The filing of this S-4 registration statement is a critical milestone in our path to fully realizing the potential of VersaBank and our multiple opportunities to create significant enduring value for our shareholders," said David Taylor, founder and president, VersaBank.

The reorganization is intended to enhance shareholder value over the long term by, among other things, increasing investor familiarity through U.S. domestic company reporting requirements and potential future index inclusion, and enabling VersaBank to compete effectively in raising the capital necessary to implement its strategic plans.

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 funding activities electronically through financial intermediary partners, it benefits from significant operating leverage that drives efficiency and return on common equity. In August, 2024, VersaBank launched its unique structured receivable program funding solution for point-of-sale finance companies, which has been highly successful in Canada for over 15 years, to the underserved multitrillion-dollar United States market. VersaBank also owns Minnesota-based DRT Cyber Inc., a North American 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 DRT Cyber, 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 and proprietary Real Bank Tokenized Deposits.

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

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