Mr. David Taylor reports

VERSABANK SURPASSES TARGET OF US$1 BILLION IN ADDITIONAL U.S. STRUCTURED RECEIVABLE PROGRAM FUNDINGS FOR FISCAL 2026; ACHIEVES RECORD QUARTERLY GROWTH FOR TOTAL ASSETS

VersaBank has surpassed its target of $1-billion (U.S.) in additional U.S. structured receivable program fundings in fiscal 2026 (ended Oct. 31), significantly ahead of its revised time frame of achieving the $1-billion (U.S.) target by calendar year-end. Approximately 94 per cent of SRP fundings in fiscal 2026 were through the bank's core higher-margin SRP.

The strong growth of the SRP in the United States, combined with accelerated growth of the SRP in Canada, is estimated to have resulted in the bank adding $969-million in total assets during the fourth quarter of fiscal 2026, more than double the previous record of $435-million achieved in the third quarter of fiscal 2026, and representing growth of more than 14 per cent since the end of the third quarter of fiscal 2026 (ended July 31). This growth drove the bank's total assets at the end of the fourth quarter to a record of more than $7.8-billion.

"The recent launch of our real-time SRP is driving increased demand and faster-than-expected growth of our SRP in the United States, as well as accelerated growth in Canada," said David Taylor, founder and president, VersaBank. "Importantly, as our U.S. SRP portfolio grows, we are increasingly benefiting from the higher net interest margin in that market, as well as the greater efficiency of our U.S. operations. All of this gives us great confidence in our ability to achieve our target of adding $3-billion (U.S.) ($4-billion (Canadian)) in SRP fundings in the United States and $3-billion in SRP fundings in Canada -- a total of $7-billion -- before the end of calendar 2027."

VersaBank expects to report its full fourth quarter and fiscal 2026 financial results and host a conference call to discuss those results on Jan. 7, 2027. The bank will provide details of the conference call by news release in the weeks prior to the reporting date.

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 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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