VERSABANK ANNOUNCES EXERCISE OF OVER-ALLOTMENT OPTION IN PUBLIC OFFERING

Group 1 - VersaBank announced the full exercise of the underwriters' option to purchase an additional 849,056 common shares at a price of US$13.25 per share, resulting in additional gross proceeds of US$11,249,992 [1] - The total number of common shares sold in the Offering increased to 6,509,434, with total gross proceeds reaching US$86,250,001 [1] - The net proceeds from the Offering are expected to be used for general banking purposes and will qualify as Common Equity Tier 1 capital for the Bank [2] Group 2 - Raymond James & Associates, Inc. acted as the sole bookrunning manager, while Keefe, Bruyette & Woods, A Stifel Company, and Roth Canada, Inc. served as co-managers for the Offering [2] - VersaBank operates a branchless, digital, business-to-business banking model, leveraging proprietary technology to serve underserved segments of the banking industry [5] - The Bank launched its Receivable Purchase Program (RPP) funding solution in March 2022, targeting the U.S. market, which has been successful in Canada for nearly 15 years [5]