VERSABANK RECEIVES TSX APPROVAL FOR NORMAL COURSE ISSUER BID

Core Viewpoint - VersaBank has received approval for a Normal Course Issuer Bid (NCIB) to repurchase up to 2,000,000 common shares, representing approximately 8.99% of its public float, amidst a challenging environment for the North American banking industry [1][2][3] Group 1: Financial Performance - In fiscal 2025 year to date, VersaBank has achieved significant year-over-year growth in profitability, leading to improvements in efficiency ratio and return on common equity [2] - The bank's performance is noted to be strong despite broader industry challenges, particularly in the United States, which have negatively impacted overall valuations [2] Group 2: Share Repurchase Program - The NCIB allows VersaBank to purchase common shares starting April 30, 2025, and ending April 29, 2026, or earlier if purchases are completed [3] - Daily purchases under the NCIB will be limited to 25% of the average daily trading volume (ADTV), which is 9,440 common shares, with a total of 20,321,293 shares traded during the preceding six-month period [2][3] Group 3: Business Model and Strategy - VersaBank operates a branchless, digital, business-to-business model that leverages proprietary technology to serve underserved segments of the banking industry [4] - The bank has launched a Receivable Purchase Program targeting the U.S. market, which has been successful in Canada for nearly 15 years [4] - VersaBank also owns DRT Cyber Inc., a leader in cybersecurity services, and Digital Meteor Inc., which focuses on next-generation digital assets for the banking sector [4]