Mr. David Taylor reports

VERSABANK RECEIVES CANADIAN FINANCE MINISTER APPROVAL FOR REORGANIZATION

VersaBank has received approval from Canada's Finance Minister, Francois-Philippe Champagne, for its previously announced plan to realign its corporate structure to a standard United States bank framework reorganization pursuant to which Versa Bancorp, a new Delaware corporation, will become the direct holding company of the bank. Approval by Minister Champagne is one of two regulatory approvals required for the bank to complete the reorganization following its approval by the bank's shareholders in September.

"We are grateful to Minister Champagne for his thoughtful consideration and approval of this important matter, which will support VersaBank in its continued leadership of the Canadian banking industry in terms of innovation and outsized contribution to the Canadian economy," said David Taylor, founder and president, VersaBank.

The reorganization, which is targeted for completion by the end of October, 2026, remains subject to approval by the Federal Reserve Board in the United States. There can be no assurance that VersaBank will receive such approval in a timely manner, if at all.

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 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 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 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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