The Base Shelf Prospectus and the Preliminary Supplement are accessible on SEDAR+ and on EDGAR LONDON, ON, Dec. 16, 2024 /PRNewswire/ - VersaBank (Nasdaq: VBNK) (TSX: VBNK) (the "Bank") today announced that it has filed a preliminary prospectus supplement (the "Preliminary Supplement") to its short form base shelf prospectus dated November 22, 2024 (the "Base Shelf Prospectus"). The Preliminary Supplement was filed in connection with a public offering of the Bank's common shares (the "Offering"). The Prelim ...

[Introduction and Key Developments](index=1&type=section&id=Introduction%20and%20Key%20Developments) Details VersaBank's strategic US acquisition and its immediate financial impacts on Q4 and FY2024 results [Acquisition of Stearns Bank Holdingford N.A.](index=1&type=section&id=Acquisition%20of%20Stearns%20Bank%20Holdingford%20N.A.) VersaBank completed the acquisition of Stearns Bank Holdingford N.A. (SBH) for approximately US$14.1 million (CA$19.0 million) in August 2024, renaming it VersaBank USA N.A. This acquisition received approvals from US and Canadian regulators and establishes a fully operational national bank in the US focused on small business lending - Acquisition of Stearns Bank Holdingford N.A. (SBH) completed on August 30, 2024, for approximately **US$14.1 million (CA$19.0 million)**. SBH was renamed VersaBank USA N.A. and is an OCC-chartered national bank focused on small business lending[3](index=3&type=chunk) [Impact of US Acquisition on Financial Results](index=1&type=section&id=Impact%20of%20US%20Acquisition%20on%20Financial%20Results) The US acquisition significantly impacted Q4 and FY2024 financial results due to one-time costs, a deferred tax asset expense, and higher cash balances maintained for capital requirements, which temporarily dampened net interest margin - One-time impact associated with the U.S. acquisition totaled **CA$3.3 million** for Q4 and **CA$3.7 million** for FY2024[4](index=4&type=chunk) - A one-time expense of a deferred tax asset of **CA$1.6 million** impacted both Q4 and FY2024[4](index=4&type=chunk) - The combined after-tax impact on net income was **CA$4.5 million** (**CA$0.18 per share**) for Q4 and **CA$5.2 million** (**CA$0.20 per share**) for FY2024[5](index=5&type=chunk) [Consolidated and Segmented Financial Summary](index=2&type=section&id=Consolidated%20and%20Segmented%20Financial%20Summary) Presents VersaBank's consolidated and segmented financial performance for Q4 and FY2024, including key balance sheet and capital ratios [Q4 2024 Consolidated Financials](index=2&type=section&id=Q4%202024%20Consolidated%20Financials) For Q4 2024, VersaBank reported a 6% year-over-year decrease in total revenue to $27.3 million and a 56% year-over-year decrease in net income to $5.5 million, primarily due to one-time acquisition-related costs. Net interest margin also saw a significant decline Q4 2024 (CA$ thousands) | Metric | Q4 2024 (CA$ thousands) | Q4 2023 (CA$ thousands) | YoY Change | | :------------------------ | :---------------------- | :---------------------- | :--------- | | Total revenue | 27,285 | 29,173 | (6%) | | Net income | 5,516 | 12,479 | (56%) | | Net income per common share | 0.20 | 0.47 | (57%) | | Net interest margin* | 2.12% | 2.54% | (17%) | [FY 2024 Consolidated Financials](index=2&type=section&id=FY%202024%20Consolidated%20Financials) For the full fiscal year 2024, total revenue increased 3% year-over-year to $111.6 million, but net income decreased 6% to $39.7 million, largely impacted by one-time acquisition-related items. Net interest margin also declined FY 2024 (CA$ thousands) | Metric | FY 2024 (CA$ thousands) | FY 2023 (CA$ thousands) | YoY Change | | :------------------------ | :---------------------- | :---------------------- | :--------- | | Total revenue | 111,633 | 108,635 | 3% | | Net income | 39,748 | 42,162 | (6%) | | Net income per common share | 1.49 | 1.57 | (5%) | | Net interest margin* | 2.27% | 2.68% | (15%) | [Segmented Financial Performance (Q4 & FY)](index=2&type=section&id=Segmented%20Financial%20Performance%20%28Q4%20%26%20FY%29) Digital Banking Canada remained the primary contributor to net interest income, while Digital Banking USA began contributing in Q4 2024. DRTC generated non-interest income. Non-interest expenses increased across all segments, particularly in Digital Banking Canada and DRTC Q4 2024 Segmented Net Income (CA$ thousands) | Segment | Q4 2024 Net Income | | :------------------------ | :----------------- | | Digital Banking Canada | 5,031 | | Digital Banking USA | 465 | | DRTC | 20 | | Consolidated Net Income | 5,516 | FY 2024 Segmented Net Income (CA$ thousands) | Segment | FY 2024 Net Income | | :------------------------ | :----------------- | | Digital Banking Canada | 39,096 | | Digital Banking USA | 465 | | DRTC | 187 | | Consolidated Net Income | 39,748 | [Balance Sheet and Capital Ratios](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Ratios) VersaBank's total assets grew significantly year-over-year to $4.8 billion, driven by loan growth. Deposits also increased. Capital ratios remained strong, with CET1 at 11.24% and total capital ratio at 14.48% for FY2024 Balance Sheet Summary (CA$ thousands) | Metric | Oct 31, 2024 | Oct 31, 2023 | YoY Change | | :---------------- | :----------- | :----------- | :--------- | | Total assets | 4,838,484 | 4,201,610 | 15% | | Loans, net | 4,236,116 | 3,850,404 | 10% | | Deposits | 4,144,673 | 3,533,366 | 17% | | Shareholders' equity | 399,203 | 377,158 | 6% | Capital Ratios | Metric | Oct 31, 2024 | Oct 31, 2023 | YoY Change | | :---------------------- | :----------- | :----------- | :--------- | | CET1 capital ratio | 11.24% | 11.33% | (1%) | | Total capital ratio | 14.48% | 15.38% | (6%) | | Leverage ratio | 7.38% | 8.30% | (11%) | [Management Commentary](index=4&type=section&id=Management%20Commentary) Provides the CEO's perspective on VersaBank's strategic direction, operational efficiencies, and future growth prospects [CEO Statement](index=4&type=section&id=CEO%20Statement) CEO David Taylor highlighted the underlying strength of VersaBank's digital, B2B, branchless banking model, particularly the successful rollout of the Receivable Purchase Program (RPP) in the US market. He anticipates increased efficiency in US Digital Banking due to lower deposit costs and personnel requirements, and continued growth in Canadian RPP and CMHC-insured mortgages. The bank also expects profitability from loan syndication in the US and is encouraged by the favorable stance on digital currencies for DRT Cyber Inc - Consolidated EPS, excluding one-time items, was **CA$0.38** for Q4 and **CA$1.69** for FY2024[9](index=9&type=chunk) - Canadian Point-of-Sale Receivable Purchase Program portfolio grew **15%** year-over-year[9](index=9&type=chunk) - Expects US Digital Banking operations to be more efficient due to lower deposit costs and personnel requirements, with additional profitability from loan syndication[9](index=9&type=chunk) [Fiscal 2024 Highlights](index=4&type=section&id=Fiscal%202024%20Highlights) Outlines VersaBank's key financial and operational achievements and challenges during the fourth quarter and the full fiscal year 2024 [Fourth Quarter Highlights](index=4&type=section&id=Fourth%20Quarter%20Highlights) The fourth quarter of fiscal 2024 saw record total assets and loan growth, primarily driven by the POS/RPP portfolio. However, consolidated revenue and net income decreased year-over-year, largely due to one-time acquisition impacts and lower non-interest income from cybersecurity operations [Consolidated Performance (Q4)](index=4&type=section&id=Consolidated%20Performance%20%28Q4%29) Details VersaBank's consolidated financial performance for the fourth quarter, including asset growth, revenue, and net income - Total assets increased **15%** year-over-year and 7% sequentially to a record **CA$4.8 billion**[10](index=10&type=chunk) - Consolidated total revenue decreased **6%** year-over-year to **CA$27.3 million**, primarily due to lower non-interest income from DRTC[10](index=10&type=chunk) - Consolidated net income was **CA$5.5 million**; excluding one-time items, it was **CA$10.0 million**[10](index=10&type=chunk)[17](index=17&type=chunk) - Consolidated earnings per share was **CA$0.20**; excluding one-time items, it was **CA$0.38**[10](index=10&type=chunk)[17](index=17&type=chunk) [Digital Banking Operations (Combined Canada and U.S.) (Q4)](index=4&type=section&id=Digital%20Banking%20Operations%20%28Combined%20Canada%20and%20U.S.%29%20%28Q4%29) Highlights the combined digital banking operations' loan growth, revenue, and net interest margin performance in Q4 - Loans increased **10%** year-over-year and 5% sequentially to a record **CA$4.24 billion**, with POS/RPP portfolio growing **15%** year-over-year[11](index=11&type=chunk) - Total revenue decreased **6%** year-over-year to **CA$25.0 million**[11](index=11&type=chunk) - Net interest margin on loans decreased **13%** year-over-year to **2.34%**, impacted by an atypically inverted yield curve and elevated term deposit rates[11](index=11&type=chunk) [Digital Banking Operations Canada (Q4)](index=5&type=section&id=Digital%20Banking%20Operations%20Canada%20%28Q4%29) Focuses on the net income, EPS, efficiency ratio, and return on common equity for Canadian Digital Banking operations in Q4 - Canadian Digital Banking operations net income (excluding one-time items) was **CA$9.5 million**[13](index=13&type=chunk) - Canadian Digital Banking operations earnings per share (excluding one-time items) was **CA$0.36**[13](index=13&type=chunk) - Efficiency ratio (excluding one-time items) was **53%**; Return on common equity (excluding DRTC and one-time items) was **9.31%**[13](index=13&type=chunk) [Digital Banking Operations U.S. (Q4)](index=5&type=section&id=Digital%20Banking%20Operations%20U.S.%20%28Q4%29) Reports the net income and EPS for U.S. Digital Banking operations in Q4, reflecting initial operational expenses and RPP launch - U.S. Digital Banking operations net income was **CA$0.5 million** and earnings per share was **CA$0.02**[14](index=14&type=chunk) - Results include expenses incurred ahead of asset growth and revenue generated by the launch of the RPP in the U.S[14](index=14&type=chunk) [DRTC's Cybersecurity Services Operations (Q4)](index=5&type=section&id=DRTC%27s%20Cybersecurity%20Services%20Operations%20%28Q4%29) Presents DRTC's revenue and gross margin performance for its cybersecurity services in the fourth quarter - DRTC's revenue (excluding intercompany transactions) decreased **8%** year-over-year to **CA$3.2 million**, but increased **21%** sequentially[15](index=15&type=chunk) - DRTC's gross margin decreased **15%** year-over-year to **CA$2.2 million**, but increased **19%** sequentially, due to the timing of client engagements[15](index=15&type=chunk) [Full Fiscal Year Highlights](index=5&type=section&id=Full%20Fiscal%20Year%20Highlights) For the full fiscal year 2024, VersaBank achieved record total assets and significant loan growth, with a 3% increase in consolidated revenue. However, consolidated net income and EPS decreased due to one-time acquisition-related impacts. Digital Banking operations maintained strong efficiency and return on equity, while DRTC saw revenue and gross margin increases [Consolidated Performance (FY)](index=5&type=section&id=Consolidated%20Performance%20%28FY%29) Summarizes VersaBank's full fiscal year consolidated performance, including asset growth, revenue, and net income - Total assets increased **15%** year-over-year to a record **CA$4.8 billion**[16](index=16&type=chunk) - Consolidated total revenue increased **3%** year-over-year to **CA$111.6 million**[16](index=16&type=chunk) - Consolidated net income decreased **6%** year-over-year to **CA$39.7 million**; excluding one-time items, it was **CA$45.0 million**[16](index=16&type=chunk) - Consolidated earnings per share decreased **5%** year-over-year to **CA$1.49**; excluding one-time items, it was **CA$1.69**[18](index=18&type=chunk) [Digital Banking Operations (Combined Canada and U.S.) (FY)](index=6&type=section&id=Digital%20Banking%20Operations%20%28Combined%20Canada%20and%20U.S.%29%20%28FY%29) Details the full fiscal year performance of combined digital banking operations, focusing on loan growth, revenue, and net interest margin - Loans increased **10%** year-over-year to a record **CA$4.24 billion**, driven by **15%** year-over-year growth in the POS/RPP portfolio[19](index=19&type=chunk) - Total revenue increased **3%** year-over-year to **CA$103.4 million**[19](index=19&type=chunk) - Net interest margin on loans decreased **12%** year-over-year to **2.52%**[19](index=19&type=chunk) - Provision for credit losses as a percentage of average loans remained negligible at **-0.01%**[19](index=19&type=chunk) [Digital Banking Operations Canada (FY)](index=6&type=section&id=Digital%20Banking%20Operations%20Canada%20%28FY%29) Highlights the full fiscal year net income, efficiency ratio, and return on common equity for Canadian Digital Banking operations - Canadian Digital Banking operations net income (excluding one-time items) was **CA$44.3 million**[20](index=20&type=chunk) - Efficiency ratio (excluding DRTC and one-time items) was **44%**[20](index=20&type=chunk) - Return on common equity (excluding DRTC and one-time items) was **11.36%**[20](index=20&type=chunk) [Digital Banking Operations U.S. (FY)](index=6&type=section&id=Digital%20Banking%20Operations%20U.S.%20%28FY%29) Reports the full fiscal year net income and EPS for U.S. Digital Banking operations, reflecting initial operational phases - U.S. Digital Banking operations net income was **CA$0.5 million** and earnings per share was **CA$0.02**[21](index=21&type=chunk) - Results include expenses incurred ahead of asset growth and revenue generated by the launch of the RPP in the U.S[21](index=21&type=chunk) [DRTC's Cybersecurity Services Operations (FY)](index=6&type=section&id=DRTC%27s%20Cybersecurity%20Services%20Operations%20%28FY%29) Presents DRTC's full fiscal year revenue and gross margin performance for its cybersecurity services - DRTC's revenue (excluding intercompany transactions) increased **7%** to **CA$11.6 million**[22](index=22&type=chunk) - DRTC's gross margin increased **3%** to **CA$8.3 million** due to increased client engagements and improved operational efficiency[22](index=22&type=chunk) [Company Overview](index=8&type=section&id=Company%20Overview) Provides a concise description of VersaBank's business model, key offerings, and its cybersecurity subsidiary [About VersaBank](index=8&type=section&id=About%20VersaBank) VersaBank is a North American digital, branchless, B2B bank utilizing proprietary technology to serve underserved banking segments. It launched its Receivable Purchase Program (RPP) in the US market in August 2024 and owns DRT Cyber Inc., a cybersecurity services provider - VersaBank operates a branchless, digital, business-to-business model, leveraging proprietary state-of-the-art technology[27](index=27&type=chunk) - Launched its unique Receivable Purchase Program (RPP) funding solution in the US market in August 2024, after nearly 15 years of success in Canada[27](index=27&type=chunk) - Owns Washington, DC-based DRT Cyber Inc., a North American leader in cybersecurity services[27](index=27&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) Cautions readers about the inherent risks and uncertainties associated with forward-looking statements in VersaBank's public disclosures [Risks and Uncertainties](index=8&type=section&id=Risks%20and%20Uncertainties) This section highlights that VersaBank's public communications contain forward-looking statements, which inherently involve risks and uncertainties. Readers are cautioned against undue reliance, and a detailed discussion of key factors affecting future results is available in the annual MD&A. The bank does not undertake to update these statements unless required by law - Forward-looking statements involve inherent risks and uncertainties, many of which are out of VersaBank's control[29](index=29&type=chunk) - Important factors that could cause actual results to differ include economic conditions, monetary and fiscal policy changes, competition, regulatory changes, technological changes, and geopolitical events[29](index=29&type=chunk) - VersaBank does not undertake to update any forward-looking statement that is contained in this management's discussion and analysis or made from time to time by VersaBank or on its behalf, except as required by securities law[30](index=30&type=chunk) [Conference Call Information](index=9&type=section&id=Conference%20Call%20Information) Provides details regarding the conference call and webcast held to discuss VersaBank's fourth-quarter financial results [Q4 Results Conference Call](index=9&type=section&id=Q4%20Results%20Conference%20Call) VersaBank hosted a conference call and webcast on December 9, 2024, to discuss its Q4 results, featuring presentations by the President & CEO and CFO, followed by a Q&A. Details for joining the call, webcast, and accessing replays were provided - Conference call and webcast held on Monday, December 9, 2024, at 9:00 a.m. (ET) to discuss fourth quarter results[32](index=32&type=chunk) - Featured a presentation by David Taylor, President & CEO, and John Asma, CFO, followed by a question-and-answer period[32](index=32&type=chunk) - Archived webcast presentation and teleconference replay available for 90 days and until January 9, 2025, respectively[34](index=34&type=chunk)

LONDON, ON, Dec. 2, 2024 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK) will report its fourth quarter and fiscal 2024 year-end financial results and host a conference call to discuss those results on Monday, December 9, 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 Taylor, President & CEO and John Asma, CFO, followed by a question and answer p ...

Group 1 - VersaBank will participate in the 13th Annual ROTH Technology Conference on November 19-20, 2024, in New York City, engaging in one-on-one meetings with institutional clients [1] - The conference is invitation-only and exclusively for ROTH's institutional clients, with prospective attendees encouraged to contact their ROTH sales representative [1] Group 2 - VersaBank operates a branchless, digital, business-to-business banking model that leverages proprietary technology to serve underserved segments of the banking industry [2] - The bank has launched a Receivable Purchase Program (RPP) funding solution for point-of-sale finance companies, targeting the underserved multi-trillion-dollar US market [2] - VersaBank owns DRT Cyber Inc., a leader in cyber security services in North America, addressing the increasing volume of cyber threats faced by financial institutions and corporations [2]

LONDON, ON, Nov. 7, 2024 /PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ: VBNK) today announced management will participate in the KBW Fintech Conference to be held November 13-14, 2024 in New York City.  As part of the conference, David Taylor, President and CEO will participate in a panel discussing The Future of Fintech-Bank Partnerships on Wednesday, November 13, 2024 at 1:25 p.m. ET.  This event will be available only to those attending in person.  VersaBank management will be ...

Group 1 - VersaBank will participate in the ThinkEquity Conference on October 30, 2024, in New York City, with a presentation by President and CEO David Taylor at 4:30 p.m. ET [1] - A live webcast of the presentation will be available on the Bank's website [1] Group 2 - VersaBank operates a branchless, digital, business-to-business banking model that leverages proprietary technology to serve underserved segments of the banking industry [2] - The Bank has launched a Receivable Purchase Program (RPP) funding solution for point-of-sale finance companies, targeting the US market, which has been successful in Canada for nearly 15 years [2] - VersaBank owns DRT Cyber Inc., a leader in cyber security services in North America, addressing the increasing volume of cyber threats faced by financial institutions and government entities [2]

Roth MKM analyst Craig Irwin initiated coverage on VersaBank VBNK with a price target of $18. Following the August 2024 acquisition of Stearns Bank Holdings, VersaBank is now federally chartered in both the U.S. and Canada. According to the analyst, management plans to implement VersaBank's proven, risk-mitigated point-of-sale lending model in the U.S. to enhance leverage and deliver long-term value in this larger, more profitable market. Irwin says VersaBank's technology infrastructure enables it to digita ...

LONDON, ON, Sept. 25, 2024 /PRNewswire/ - VersaBank (TSX: VBNK) ("VersaBank" or the "Bank") today announced its intention to redeem all outstanding Non-cumulative 5-Year Rate Reset Preferred Shares, Series 1 (Non-Viability Contingent Capital (NVCC)) ("Series 1 Preferred Shares") of the Bank on October 31, 2024 at a price equal to $10.00 per share together with all declared and unpaid dividends to the Redemption Date. The redemption has been approved by the Office of the Superintendent of Financial Instituti ...

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].