Mr. Lawrence Chamberlain reports

VERSABANK RECEIVES FINAL REGULATORY APPROVAL TO COMPLETE REORGANIZATION

VersaBank has received approval from the Federal Reserve Bank of Minneapolis, acting under authority delegated by the Federal Reserve Board in the United States, for its previously announced plan to realign its corporate structure to a standard U.S. bank framework pursuant to which Versa Bancorp, a new Delaware corporation, will become the direct holding company of the bank. Approval by the Federal Reserve is the final regulatory approval required for the bank to complete the reorganization. As consummation of the reorganization is subject to a minimum 15-calendar-day waiting period required by the Federal Reserve, the bank is targeting completion of the reorganization for Nov. 13, 2026.

"With the Federal Reserve's approval, we can move quickly toward completion of this transformational initiative that will enable our unique, cloud-based, business-to-business digital bank to realize its full potential -- in the United States, in Canada and beyond," said David Taylor, founder and president, VersaBank. "The reorganization will not only support the significant growth opportunities in both our structured receivable program and digital asset/tokenized deposit strategy, but we are confident will also contribute to enhanced shareholder value through increased visibility and liquidity for our stock, including eligibility for inclusion in certain stock indices, improved access to capital markets, further risk mitigation and even greater cost-efficiencies."

About VersaBank

VersaBank is a North American bank with a difference. Federally chartered in both Canada and the U.S., 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 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 financing solution for point-of-sale finance companies, which has been highly successful in Canada for over 15 years, to the underserved multitrillion-dollar U.S. 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 cyberthreats challenging financial institutions, multinational corporations and government entities. Through DRT Cyber 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 and proprietary Real Bank Tokenized Deposits.

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

We seek Safe Harbor.