Mr. David Taylor reports

VERSABANK ANNOUNCES FIRST IMPLEMENTATION OF REAL-TIME STRUCTURED RECEIVABLE PROGRAM IN THE UNITED STATES

VersaBank's recently launched real-time structured receivable program (SRP) has been implemented for the first time in the United States by the Bank's SRP partner ECN Capital.

"As expected, there has been a flood of demand for our breakthrough real-time SRP from both existing and prospective partners since launch just a couple of months ago," said David Taylor, founder and president of VersaBank. "Feedback from these partners continues to confirm the economic, efficiency and risk mitigation benefits of our real-time capability as well as the significant opportunity for our real-time SRP as a superior alternative to conventional securitization for point-of-sale funding."

"VersaBank's real-time SRP significantly enhances what was already a highly attractive and truly unique funding solution for point-of-sale financing businesses like ours," said Chris Johnson, senior vice-president and head of capital markets, ECN Capital. "The implementation of VersaBank's original SRP last year has not only helped us grow our business faster but has enabled us to do that more profitably. As always, the VersaBank team was exceptional to work with on this project and the integration of the bank's technology enhancements into our operations was seamless. We look forward to continuing to grow our business with VersaBank."

About VersaBank's real-time structured receivable program

VersaBank's real-time structured receivable program (SRP) is a revolutionary innovation in financing for point-of-sale financing companies, providing the same reliable, economically attractive financing solution as the bank's existing SRP, with the additional benefit of eliminating the need for SRP partners to warehouse multiple receivables over a period of time (typically from five to 30 or more days). This enables the bank's SRP partners to finance individual loans within just hours, reducing the overall financing cost and the need for warehouse financing. It also further strengthens VersaBank's exceptional risk mitigation capabilities by enabling the bank to better leverage its own, internal AI (artificial intelligence) platform through evaluation of the partner loans underlying the SRP receivables on an individual basis.

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 technology designed to address underserved segments of the banking industry. VersaBank obtains substantially all of its deposits and undertakes the majority of its financing activities electronically through financial intermediary partners. In August, 2024, VersaBank launched its unique structured receivable program financing solution for point-of-sale finance companies, which has been deployed in Canada for over 15 years, to the U.S. market. VersaBank also owns Minnesota-based DRT Cyber Inc., which provides 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 designed to enable the next generation of digital assets for the banking and financial community, including the bank's proprietary real-bank tokenized deposits.

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

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