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Investor Presentation January 2026 NASDAQ: VBNK | TSX: VBNK US Entry Provides A Transformational Opportunity
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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 other disclosure documents and communications. By their very nature, forward- looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. A number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the strength of the Canadian economy in general and the strength of the local economies within Canada in which the Bank conducts operations; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the Bank of Canada; global commodity prices; the effects of competition in the markets in which the Bank operates; inflation; capital market fluctuations; the timely development and introduction of new products in receptive markets; the impact of changes in the laws and regulations regulating financial services; changes in tax laws; technological changes; unexpected judicial or regulatory proceedings; unexpected changes in consumer spending and savings habits; the impact of the COVID-19 pandemic and the Bank’s anticipation of and success in managing the risks implicated by the foregoing. When relying on forward-looking statements to make decisions, investors and others should carefully consider these factors and other uncertainties or potential events. For a detailed discussion of certain key factors that may affect our future results, please see our MD&A for the year ended October 31, 2025. The Bank makes no undertaking to update any forward- looking statement that is made from time to time by the Bank.
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A Better Bank Model Founded on Technology Excessive lending risk Loan losses / collections Deposit / liquidity risk Economic exposure Interest rate exposure Physical infrastructure Inefficiency 3
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A North American Leader in Cybersecurity Solutions • Operating leverage of a technology company with the intrinsic value of a bank • Highly risk-mitigated model: Very sticky deposits/No material loan losses • Track record of strong earnings growth with strong future growth prospects based on US entry and new product offerings • Planned divestiture of Cybersecurity Services subsidiary represents significant unrealized value Poised for outsized long-term growth through ramp up of proven Receivables Purchase Program (RPP) in US market and market-ready deposit token technology Fully Digital North American Bank Highly Efficient: Branchless, Partner (B2B) model Innovative, Value-Added Deposit & Financing Solutions for Underserved Markets 4
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Cloud-Based, Branchless, Partner (B2B) Model Using VersaBank’s Proprietary Banking Technology 5 Deposit Partners Lending Partners Significant operating leverage derived from scalability of technology platform & partner model Proprietary, state-of-the-art software based out of two technology centres • All deposits/credit assets managed digitally • No direct interaction with end users • Very high asset-to- employee ratio Saskatoon, SK London, ON Des Moines, IA (Azure Cloud Facility) Minneapolis, MN
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Loans Out Total Assets: C$5.8B/US$4.1B1 Net Interest Margin (Credit Assets): 2.65%2 Total Revenue: C$140M/US$100M3 Non-Interest Expense (excl. DRTC): C$63M/US$45M3,4 Net Income: C$42M/US$30M3,4 Cloud-based, Partner Model Drives Efficiency Deposits In 6 1. At October 31, 2025. 2. For the quarter ended October 31, 2025. 3. Run rate based on Q4 2025. 4. Excludes the one-time costs associated with the proposed structural realignment and adjustments Interest Paid Interest Earned Target Net Interest Margin on Credit Assets: 2.5 to 3.0% 6 $ $ $ $Deposit Partners Individual Depositors Lending/ Credit Partners Individual Borrowers
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• Brokered Deposits: 100% term deposit receipts – Depositors have no direct access to deposits • Insolvency Professionals: Long-term relationships based on unique, high-value add, integrated technology • 98% insured (All Brokered Deposits insured) 7Proprietary Technology Enables Ultra Low-Risk Digital Model Organization-Wide Focus on Risk Mitigation • Technology-based approach to risk analysis/monitoring • Rigorous, multi-step, multi- executive approval process • Continuous, real-time monitoring of credit performance • Top-tier asset quality • High-liquidity ratio & access to vast supply of low-cost funds • Low operational risk: branchless, digital model & industry leading security (0.01%) 0.02% (0.02%) (0.02%) (0.02%) 0.02% 0.02% (0.01%) 0.09% 2017 2018 2019 2020 2021 2022 2023 2024 2025 PCL as a % of Average Credit Assets Average Provision for Credit Losses as a % of Average Credit Assets 0.03% (Trailing 12-Quarters as of Q4 2025) Very Sticky Deposits 30+ Years with No Material Credit Asset Losses 7
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Deposits: Unlimited Low-Cost, Very Stable Sources >220 Partners Provide Access to Millions of Depositors 8 Deposit Brokers (>120 Partners) • Extensive network of providing exposure to vast majority of Canadian depositors • All broker deposits are term deposits • Competitively positioned for inexpensive deposits as a federally licensed bank Licensed Insolvency Trustee Firms(>100 Offices) • Proprietary, high-value add, technology-based solution • Grown to >100 partners & C$823M/US$594M in <10 years • Objective to minimize cost of deposit funding • Very “sticky” deposit base 8 US$730M C$970M US$796M C$1,059M US$1,007M C$1,274M US$1,509M C$2,059M US$2,101M C$2,914M US$2,444M C$3,401M US$2,714M C$3,972M US$334M C$440M US$382M C$508M US$489M C$606M US$438M C$598M US$446M C$619M US$534M C$744M US$634M C$889M 2019 2020 2021 2022 2023 2024 2025 Deposit Brokers Licensed Insolvency Trustee firms Deposit Composition: Q3 2025 81% Deposit Brokers 19% Licensed Insolvency Trustees
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Credit Assets: Very Low Risk Lending Channels 9 9 US$756M C$995M US$736M C$981M US$1,000M C$1,238M US$1,627M C$2,221M US$2,076M C$2,879M US$2,283M C$3,307M US$2,884M C$4,043M US$421M C$554M US$474M C$632M US$633M C$784M US$530M C$724M US$647M C$898M US$628M C$910M US$719M C$1,007M 2019 2020 2021 2022 2023 2024 Q3 2025 Receivable Purchase Program Credit Assets Multi-Family Residential Credit Assets 30 Partners Provide Access to Hundreds of Millions of Borrowers Credit Asset Composition: Q4 2025 80% Receivable Purchase Program 20% Multi-Family Residential and Other • Low-cost deposits enable low-risk lending • 30-year history of virtually no credit asset losses Receivable Purchase Program • Reliable, attractive alternative financing option for POS lenders, providing convenience for their consumers • Very low-risk: • Default risk resides substantially with partner • Only partner with established POS lenders • Dominant position in Canada Multi-Family Residential and Other • Highly profitable opportunistic legacy business • De minimis commercial real estate exposure
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RPP Partner Preapproved by VersaBank to Underwrite RPP Loans VersaBank Purchases Right to Cash Flow Streams (Credit Assets) from Consumer Loan Payments Point-of-Sale Financing (Loan) Offered to Consumer By VersaBank RPP Partner at Point-of-Sale (“Big Ticket” Items) $$$$$$ Stream of Payments: + Holdback of Cash Collateral (Embedded in Purchase Price) Amount of Holdback Changes with Risk of Loan Credit Assets + Holdback of Cash Collateral Reside on VBNK Balance Sheet Point-of-Sale Receivable Purchase Program (RPP) Innovative, Unique and Efficient Digital Funding Solutions for Point-of-Sale Finance Companies 10 NO Direct Contact w/ Borrower Point-of-Sale Partner Loan Administrator with ALL Direct Contact w/ Consumer VB’s proprietary banking software efficiently analyzes and ensures adherence to credit specifications Point-of-Sale • Readily accessible, reliable, economic funding, and daily loan sales (real-time sales in development) • VersaBank typically provides 100% of loan value (vs. ~75% from conventional sources) – much higher partner ROE If any loans are 90+ days in arrears, VersaBank automatically paid (and loan returned to partner) for loans 90 days in arrears
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A Significantly Risk Mitigated Model 11 Extensive Partner Due Diligence & Monitoring Continuous Loan monitoring Restricted to the highest quality lenders - typical 10-year track record • Annual in-person audits • "As offered" basis – Purchases at VersaBank's discretion • Pre-established "credit box" to which all loans must adhere • Real-time, technology-based monitoring • Increasingly benefitting from the use of AI • Human oversight • VersaBank automatically paid (and loan returned to partner) for loans 90 days in arrears Proven Highly Attractive & Successful in Canada • >15 years in market • >C$10B (>US$7.1B) Total value of RPP Financings to Date1 • C$4.0B (US$2.9B) Current Value of RPP Portfolio1 • 33% 5-Year CAGR1 History of ZERO Credit Asset Losses for VersaBank 1. At October 31, 2025 11
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8.5% 8.9% 7.9% 8.5% 6.6% 11.8% 10.2% 7.9% 51% 49% 51% 52% 55% 43% 44% 55% $0 $10 $20 $30 $40 $50 $60 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Success of Canadian POS Business Has Driven Profitability 12 $1.78B $1.80 B $1.86 B $2.42 B $3.27 B $4.20 B $4.84B $5.81B $26 M $26 M $28 M $35 M $49 M $50 M $53M $69M $18 M $20 M $19 M $22 M $28 M $42 M $45M $37M $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 2018 2019 2020 2021 2022 2023 2024 2025 Total Assets Non-Interest Expense Net Income Digital Banking Efficiency Ratio ROCE $ CAD (millions) 121. Excluding One-Time Impacts Related to closing of the acquisition of SBH 2. Excluding costs associated with the proposed realignment to corporate structure and adjustments 1 2
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13Q4 2025 Key Metrics & Highlights Canadian Digital Banking Operations Continue to Demonstrate Potential of US Digital Banking Operations as US Credit Assets Ramp Up and Achieve Scale Total Assets $5.81 B Credit Assets $5.07 B NIM on Credit Assets 2.65% Total Revenue $35.1 M Adjusted Net Income1 $10.5 M Adjusted EPS1 $0.33 13 • Record credit assets, up 20% YoY & 6% sequentially • Record revenue • NIM on Credit Assets grew 31 bps year-over-year • Healthy sequential increase in adjusted net income 1. Adjusted net income and adjusted EPS exclude the costs associated with the realignment to corporate structure
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VersaBank USA: Transformational Opportunity 14 High-Growth, Underserved Multi-Trillion $ Market Acquisition of National OCC licensed US bank enables ramp up of Receivables Purchase Program (RPP) in the US US Regulatory Approval May 2024 Canadian Regulatory Approval May 2024 Closed US Bank Acquisition Q4 2024 First Post-Acquisition US RPP Partner and Funding Q1 2025 Appointed VB USA Executives Jul 2024 Addition of Securitized RPP Option to Significantly Expand Addressable Market 14 Additional US RPP Partners In Pipeline Second Post-Acquisition RPP Partner in US Q2 2025 Launched Securitized RPP Option Aug 2025 Exceeded Fiscal 2025 Target with Total Fundings of US$310M Third Post-Acquisition RPP Partner in US Q4 2025 Added Largest US RPP Partner Q4 2025
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7.0% 12.0% 11.5% 7.9% 55% 43% 44% 55% $0 $10 $20 $30 $40 $50 $60 $0 $2 $4 $6 $8 $10 $12 $14 Capitalizing on the Significant Operating Leverage in Our Core Digital Banking Operations Next Milestones: Total Credit Assets C$5.1B US$3.6B >C$6B >US$4.3B >C$7.5B >US$5.4B >C$10B >US$7.2B Efficiency Ratio 55% <40% <35% <25% ROCE 8% 18%+ 20%+ 35%+ 15 C$3.27 B US$1.95B C$4.20 B US$2.39B C$4.84 B US$3.03B C$5.81 B US$3.48B C$35M US$28M C$50 M US$38M C$53 M US$37M C$69 M US$49M C$23 M US$18M C$42 M US$18M C$45 M US$31M C$37 M US$26M $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 2022 2023 2024 2025 Total Assets Non-Interest Expense Net Income ROCE $ CAD (millions) Digital Banking Efficiency Ratio Assumes Net Interest Margin on Credit Assets of 2.65% 1 1. Excluding One-Time Impacts Related to closing of the acquisition of SBH 2 E cl ding costs associated ith the proposed realignment to corporate str ct re and adj stments 2
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Younger generations increasingly prefer digital interactions over traditional banking methods / Declining use, interest in physical branches and traditional banking services • Less than 50% of Gen Z have a traditional bank account • Younger generations moving inheritances out of traditional banks • Over 50% of Gen Z rely primarily on non-traditional financial service providers • 38% of Gen Z would consider switching from banks that lack innovation • Nearly 94% of cryptocurrency buyers are in the age range of 18-40 Digital assets/currencies, stablecoins increasingly in demand • Stablecoins account for ~3% of global cross-border payments (~US$1.5 T) • Annual stablecoin transfer volume reached US$27.6 T in 2024, surpassing combined volumes of Visa and Mastercard The Digital Asset Revolution is Transforming the Financial Services Industry Deposits: Banks increasingly experiencing “deposit drain” Payments: Global payments landscape being reshaped Increasingly favorable regulatory environment for secure and stable cryptocurrency activities Major banks, bank technology providers, payment providers and major retailers have expressed need for a digital asset/stablecoin strategy Stablecoins have become the digital currency of choice • Stablecoins represent 2/3 of cryptocurrency transactions in recent months BUT recently passed GENIUS Act will limit stablecoin activities 16
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17 Integrated US and Canadian demonstration pilots underway: Commercialization as soon as possible following completion2 17 A Superior Bank-Issued Market-Ready Alternative to Stablecoins USDVB CADVB VersaBank’s Proprietary Real Bank Deposit Tokens (formerly Digital Deposit Receipts) Developed by a Bank for Banks: All the functionality, efficiency, auditability, safety and security of stablecoins and other encrypted digital assets WITHOUT the associated volatility and risk, and WITH: - Conventional bank deposit insurance (FDIC, CDIC)1 - Legal ability to pay interest A $1 Deposit Held with VersaBank on a 1:1 Basis Reflected on Blockchains • Developed in close collaboration with regulators and law enforcement The highest level of security based on proprietary VersaVault®, underpinned by SOC 2 Type I certification. • Encrypted, transferable & traceable – suspicious s can be frozen • Secure Custody: Digital assets are privately secured with a nationally licensed bank serving as custodian Proven Technology • Successfully completed pilot program on Algorand, Ethereum, and Stellar blockchains (First bank known to achieve this) • Integrates with existing banking technology 1. In accordance with CDIC and FDIC policies 2. Subject to regulatory obligations as may apply
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Market Ready Solution: Near-Term Commercialization Operational • Low-cost / No-cost deposits for VersaBank’s own US banking operations Sale/Licensing of Technology to: • Major banking technology provider • Major US banks • Smaller US banks • Payment/credit card providers • Major online/physical retailers Significantly Enhanced Depositor Loyalty/Stickiness of Deposits for Banks • Reduced funding costs, lower or no cost deposits as customers prioritize holding digital currency • Deposit Tokens circulate digitally, reducing redemption frequency and enhancing deposit stability Low-Cost Solution that is Readily Available Seamlessly Integrates with Existing Technology Including that of Core Service Providers Multiple Opportunities to Realize Value Very Compelling Proposition for Banks and Payments Providers
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19 Proposed Realignment of Corporate Structure 19 • Would align corporate structure with that of standard US bank framework with which US and international investment communities are most familiar • Proposed new holding company parent would be domiciled in United States • Would be expected to enable eligibility for inclusion in certain stock indices, including the Russell 2000 • Would simplify regulatory structure • Would facilitate further international expansion as the Bank explores additional markets beyond Canada and the United States • Subject to approval by Bank's shareholders, Office of the Comptroller of the Currency (OCC), Federal Reserve, Minister of Finance (Canada), TSX and Nasdaq Intended to Realize Additional Shareholder Value, Further Mitigate Risk and Reduce Corporate Costs
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DRT Cyber: “Free Option” on Digital Banking Valuation One of North America’s Premiere IT Security Assurance Services Firms • Comprehensive Suite of Services: – External network, web and mobile app penetration testing – Physical social engineering engagements – Supervisory control & data acquisition (SCADA) system assessments – Various aspects of training • > 400 Clients Across North America – Large retailers & financial service providers – Police service organizations – Energy, public utilities & infrastructure firms • Significant opportunities to cross-sell and up-sell 20 Profitable, with solid growth in revenue and EBITDA in fiscal 2024
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Why VersaBank? Why Now? At inflection point for operating leverage, earnings growth and ROCE generation US Receivables Purchase Program (RPP) (proven in Canada) ramping up in an underserved multi-trillion $ US market Highly risk-mitigated model based on structuring of both deposits and credit assets Current valuation around book value & well below US peers Planned divestiture of profitable cybersecurity services will generate significant incremental value Renewed opportunity for the Bank’s transformational Real Bank Deposit Tokens (formerly Digital Deposit Receipts) Proposed corporate realignment expected to realize additional shareholder value, further mitigate risk and reduce costs 21
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Banking on the Future! 22