Financial Data and Key Metrics Changes - Total assets reached a record high of $4.5 billion, reflecting a 13% year-over-year growth and a 3% sequential increase [9] - Consolidated net income for Q3 decreased by 3% year-over-year and 18% sequentially to $9.7 million, or $0.36 per share [11] - Net interest margin on loans was 2.41%, down 10% year-over-year and 4% sequentially [13] - Consolidated revenue increased by 1% year-over-year to $27 million but decreased by 5% sequentially [9][10] Business Line Data and Key Metrics Changes - The loan portfolio grew to $4.05 billion, driven by a 16% year-over-year increase in the receivable purchase program (RPP) [11] - The real estate portfolio contracted by 9% year-over-year and 10% sequentially to $745 million as the company transitions to CMHC insured loans [12] - The RPP portfolio represented 80% of the total loan portfolio at the end of Q3, up from 78% at the end of Q2 [11] Market Data and Key Metrics Changes - The Canadian deposit rates are lagging behind the Bank of Canada rates, impacting the cost of funds [29][30] - The U.S. market shows a favorable reception for the RPP, with expectations of better economics due to lower bank cost of funds compared to Canada [26] Company Strategy and Development Direction - The company has successfully closed its U.S. acquisition, marking a transformational event in its growth trajectory [4][5] - The strategy includes launching the RPP in the U.S. with minimal capital expenditures and low execution risk [6][20] - The focus is on expanding the RPP in both the U.S. and Canada, with expectations of strong, sustainable growth in the loan portfolio [21] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment includes challenges from acquisition-related costs but remains optimistic about future growth [22] - The company anticipates continued growth in the RPP and real estate portfolios, leveraging its experience in the sector [21] - Management expects to benefit from the expansion of insolvency professional deposits as bankruptcies in Canada trend upward [22] Other Important Information - The company maintained higher cash balances in preparation for the U.S. acquisition, which temporarily depressed the net interest margin [6] - The provision for credit losses remained at zero for Q3, indicating effective risk management [8][14] Q&A Session All Questions and Answers Question: How are conversations going with new partners in the U.S.? - The reception in the U.S. has been tremendous, with several partners waiting for operational capability [25] Question: Can you discuss the funding growth strategy in the U.S.? - The company can immediately start raising deposits in the U.S. and has signed agreements with brokerage firms for deposit access [27] Question: Could you quantify the one-time costs in the quarter? - Approximately $700,000 in one-time costs were associated with the U.S. acquisition, including consulting fees and additional payroll expenses [28]

Q3 2024 Conference Call September 5, 2024 NASDAQ: VBNK | TSX: VBNK Toll-free: 1-888-510-2154 (Canada/US) Local: 437-900-0527 Advisory For those wishing to ask questions during the Q&A, please access today's call through the telephone dial-in: Advisory The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, annual reports and ...

Exhibit 99.1 Interim Consolidated Financial Statements July 31, 2024 (Unaudited) 1 VERSABANK Consolidated Balance Sheets (Unaudited) | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------|-------|--------------------|-------|-----------------------|-------|------------------| | (thousands of Canadian dollars) \nAs at | | July 31 \n2024 | | October 31 \n2023 | | July 31 \n2023 | | | | | | | | | | Assets | | | | | | | | | | | | | | | | Cash | $ | 247, ...

Core Insights - VersaBank's shares reached a 52-week high of $14.22, closing at $13.40, driven by the acquisition of Stearns Bank Holdingford N.A. [1] - The acquisition of Stearns Bank, valued at $62 million in assets, was completed on August 30, 2024, for nearly $14 million in cash [1][3]. Acquisition Details - VersaBank acquired 100% of the outstanding shares of Stearns Bank, taking over approximately $54.1 million in deposits and liabilities, and $61.1 million in assets [3]. - Following the acquisition, Stearns Bank was rebranded as VersaBank USA N.A. [4]. Receivable Purchase Program (RPP) - The acquisition marks the launch of VersaBank's Receivable Purchase Program (RPP) in the U.S., which has seen significant growth in Canada [2]. - RPP aims to provide secure funding solutions for point-of-sale finance companies, targeting a large underserved segment of the multi-trillion-dollar U.S. market [2][5]. Strategic Benefits - The acquisition is expected to enhance VersaBank's earnings per share in the first year and broaden its loan portfolio [6]. - The RPP will allow VersaBank to operate efficiently in the consumer and small business financing markets, leveraging its branchless, digital model [6]. Market Performance - VersaBank's shares have increased by 38% over the past three months, contrasting with an 8.1% decline in the industry [9].

LONDON, ON, Sept. 3, 2024 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK), a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today announced that, on August 30, 2024, it closed its previously announced acquisition of Stearns Bank Holdingford N.A. ("SBH"). SBH is a national bank chartered under the laws of the United States and regulated by the national Office of the Comptroller of the Currency (OCC) (the "Acqui ...

Bank to Report Third Quarter Fiscal 2024 Results Thursday, September 5, 2024 at 7:00 a.m. ET LONDON, ON, Aug. 21, 2024 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK) will report its third quarter 2024 financial results and host a conference call to discuss those results on Thursday, September 5, 2024. The conference call/webcast is scheduled for 9:00 a.m. ET and is expected to last approximately 60 minutes. The conference call/webcast will include a presentation by David Tay ...

LONDON, ON, Aug. 16, 2024 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK) today announced David Taylor, President and Chief Executive Officer, will present at the following virtual investor conferences on Tuesday, August 20, 2024: The Investor Summit Summer 2024 Virtual Forum at 10:30 a.m. ET. A live webcast of Mr. Taylor's presentation will be available to the public on the Bank's website at https://www.versabank.com/investorrelations/events-presentations/. VersaBank managem ...

LONDON, ON, July 25, 2024 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK) today announced management will participate in the 25th Annual KBW Community Bank Investor Conference to be held July 30-31, 2024 in New York City. VersaBank management will participate in one-on-one meetings throughout the conference. Those interested in meeting with VersaBank should contact their KBW representative or VersaBank investor relations through Lawrence Chamberlain at [email protected]. Vers ...

Messrs. Matrundola and Clarke will move from VersaBank Canada to their new roles at VersaBank USA. The appointments are subject to approval by the VersaBank USA board upon completion of the U.S. bank acquisition, which has been approved by both U.S. and Canadian regulators, and is scheduled for closing on August 30, 2024. Tel Matrundola joined VersaBank in 2003 as Vice President of Public & Corporate Affairs. In May 2016, he was appointed Chair of PWC Capital, the former parent company of VersaBank, later s ...

– Acquisition Will Enable VersaBank to Broadly Launch its Unique and Highly Successful Receivable Purchase Program (RPP) Financing Solution in the United States – Stearns Holdingford is an independent OCC-chartered national bank with US$79 million in assets located in Holdingford, Minnesota that is wholly owned by Stearns Financial Services, Inc. ("Stearns Financial"). Stearns Financial, a multi-bank holding company owning two additional and separate national bank charters, Stearns Bank Upsala National Asso ...