#1VersaBank Choice Through Innovation NASDAQ: VBNK TSX: VBNK Investor Presentation March 2024 Banking on the Future!#2Advisory 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 annual MD&A for the quarter ended January 31, 2024.The Bank makes no undertaking to update any forward-looking statement that is made from time to time by the Bank. VersaBank Choice Through Innovation 2#3A Better Banking Model FOUNDED on Technology -excessive lending risk -Toan losses •people/collections -deposit risk • economic exposure -interest rate exposure - inefficiency VersaBank! 3#4VersaBank Choice Through Innovation Highly efficient: Branchless, partner (B2B) model A Fully Digital North American Bank Innovative, value-added deposit & lending, solutions for underserved markets Operating leverage of a technology company with the intrinsic value of a bank Highly risk-mitigated model: Very sticky deposits/History of virtually no loan losses. Track record of significant earnings growth Poised for outsized long-term growth through entry to U.S. market Additional "free option" through cybersecurity services subsidiary At a significant inflection point for operating leverage, driving outsized growth in earnings and ROCE#5Branchless, Digital, Partner (B2B) Model Based on Proprietary Banking Technology Significant operating leverage derived from scalability of technology platform & partner model . . All deposits/loans managed digitally No direct interaction with end users Very high asset-to-employee ratio • VersaBank Deposit Partners HA Proprietary, state-of the- art software based out of two technology centres Lending Partners HA M LO Q1 2024 Digital Banking efficiency ratio improved to a record 40% and is poised for continued outsized improvements#6Ultra 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 Very Sticky Deposits • • Insolvency Professionals: Long-term relationships based on unique, high- value add, integrated technology Wealth Management: 100% term deposit receipts/Depositors have no direct access to deposits 98% insured (All Wealth Management deposits insured) 30+ Years with No Material Loan Losses PCL as a % of Average Loans 0.02% (0.01%) Average Provision for Credit Losses as a % of Average Loans 0.00% (Trailing 12-Quarters) (0.02%) (0.02%) (0.02%) 0.02% 0.02% (0.01%) 2017 2018 2019 2020 2021 2022 2023 Q1 2024 6#7Deposits: Unlimited Low-Cost, Very Stable Sources 7 >220 Partners Provide Access to Millions of Depositors Insolvency Professionals (>100 Offices) Proprietary, high-value add, technology-based solution Grown to >100 partners & C$642M/US$479M in <10 years Deloitte Grant Thornton BDO MNP ☑DAVID SKLAR & ASSOCIATES INC. Wealth Management (>120 Partners) • Extensive network of providing exposure to vast majority of Canadian depositors • Competitively positioned for inexpensive deposits as a federally licensed bank Investment Planning Counsel IPC INVESTMENT CORPORATION RBC Dominion GMP Securities Gild NBCN Scotia Capital RBC Securities CIBC CIBC World Markets Objective to minimize cost of deposit funding All Wealth Management deposits are term deposits Very "sticky" deposit base Deposit Composition (Q1 2024) Wealth Management Deposits US$479M US$446M C$641M 82% Insolvency Deposits 18% C$619M US$2.24B US$2.10B C$3.00B US$438M C$2.91B C$598M US$489M US$1.54B C$606M C$2.06B US$301M US$334M US$382M C$396M C$508M US$1.00B C$440M US$792M US$730M US$796M C$1.25B C$1,041M C$970M C$1.06B VersaBank Choice Through Innovation 2018 2019 2020 2021 2022 2023 Q1 2024#8Loans: Very Low Risk Lending Channels >275 Partners Provide Access to Hundreds of Millions of Borrowers Point-of-Sale Financing (Loans and Leases) 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 High growth opportunity in United States Residential Land & Construction Financing • Highly profitable legacy business Restricted to large, long-established developers • Low loan-to-value/low risk-weighted loans • No commercial real estate exposure . Low-cost deposits enable low-risk lending 30-year history of virtually no loan losses. Loan Composition (Q1 2024) 8 73% 27% ■ Other Loans & Liquid Securities ■ Point of Sale Loans US$916M US$855M C$1.25B C$1.15B US$2.30B US$734M C$1.00B US$2.08B C$3.08B C$2.88B US$884M C$1.09B US$670M US$569M C$881M C$749M US$700M C$932M US$1.63B C$2.22B US$677M C$889M US$756M US$736M C$995M C$981M US$1.03B C$1.28B Opportunistic based on economy/market W VersaBank Choice Through Innovation 2018 2019 2020 2021 2022 2023 Q1 2024#9Momentum in Profitability and Long-Term Earnings Capacity $ CAD (millions) 180 160 $4.20B 5 4 140 $3.27B 4 120 $109M $2.42B 100 $82M $1.94B 80 $1.81B $1.79B $65M 60 $52M $54M $54M $49M $50M 33 2 2 $35M 40 $26M $26M $28M 1 $42M 20 1 $28M $18M $20M $19M $22M 0 2018 2019 2020 2021 2022 2023 Total Assets Revenue Non-Interest Expense Net Income Expect continued steady growth in Canada with significant potential upside from entry into the U.S. market $ CAD (billions) 9#10Q1 2024 Key Metrics & Highlights: Record Results¹ Total Assets Loan Portfolio $4.31B $3.98B Digital Banking Efficiency Ratio YOY Loan Growth YoY 23% Seq 3% 40% 200 bps (5%) Total Revenue YOY 11% Seq 1% Ave. Return on Common Equity 13.41% Net Income (ROCE) 262 bps YOY YOY 35% Seq 2% (24%) EPS YOY 41% Seq 2% Realizing significant operating leverage inherent in Digital Banking model: Driving outsized growth in profitability and ROCE 10#11Digital Banking Growth Strategy: Momentum for the Future Goal: Maximize ROCE Through Growth in Total Assets, Balancing Net Interest Margin and Low-Capital Deployment Opportunities 1 Grow Loan Portfolio via Point-of-Sale/RPP programs in Canada and U.S. Expand Point-of-Sale Financing portfolio: Add new partners & increase volumes with existing partners Grow Recently Launched U.S. Receivable Purchase Program (U.S. version of Point-of-Sale Financing solution) 2 Minimize Cost of Funding to Maximize Net Interest Margin Expand insolvency deposits: Higher volumes w/ existing partners & adding new partners Expand wealth management deposits by adding new partners Introduce commercial deposit offerings to new markets 3 Pursue Accretive Acquisitions to Leverage Scalability of Platform & Enter New Markets Generate capital-efficient, step function growth in loan portfolio Provide ability to expedite roll out of offerings in new markets 11#12U.S. Receivables Purchase Program (RPP): A New Financing Solution for a High-Growth, Underserved Market Strong growth in U.S. Point-of-Sale financing activity driven by technology & increasing consumer preference for non-credit card/non-bank financing options 75% $1.8T 20% Of consumers more likely to make purchase if seamless POS financing available (1) Estimated POS market in the near term, Forecast annual growth in U.S. point-of- sale financing market (2) Same attractive, reliable alternative solution that has been highly successful in Canada Launched in U.S. April 22 (limited basis roll out) Strong initial demand, especially as conventional sources of financing have waned Full roll out to commence upon closing of U.S. bank acquisition Will be serviced via existing technology infrastructure 12 VersaBank Choice Through Innovation (1) The Financial Brand - "Growth of POS financing is Both a Threat and Opportunity in Retail Banking" (07.29.19); (2) Skeps - "POS Financing Competition is Growing" (10.08.20);#13Acquisition of OCC-Chartered, National US Bank: Transformational Next Step in Long-Term Growth Strategy LY ALDefinitive Agreement to 85. 3 525 52.04 3.197.61 Acquire Minnesota-based Stearns Bank Holdingford 49.89 2,968.46 3.06 20.29 24,9 1.21 17,879.22 74 NB 7 15Fully operational national bank focused on small business lending Expected to add ~US$60 M1 in total assets .47 5.874.00 Estimated purchase price of 019.7 US$13.5 M (CA$18 M)1 32 ● ● ● Platform for significant growth in the United States Provides access to U.S. deposits to fuel growth of the U.S. Receivable Purchase Program business (recently launched in the U.S. following success of Point-of-Sale business in Canada) Expected to be accretive to VersaBank's earnings per share within first year after closing Expected to be well capitalized on closing with a Total Capital ratio >10% Will be renamed VersaBank USA on closing 13 1. Subject to any adjustments at closing. 2. Subject to regulatory approval in U.S. and Canada). Awaiting decision of U.S. regulatory authorities - expected calendar H1 2024#14Capitalizing on the Significant Operating Leverage in Our Core Digital Banking Operations Period of Investment in Future Growth 62% 55% 50% 52% 49% 47% 11.75% 13.41% 43% 40% 10.29% 8.50% 8.89% 6.61% 8.45% 7.89% $3.85 $4.20 $4.31 $3.98 $3.27 $2.99 $2.42 $1.81 $1.79 $1.94 $2.10 $1.73 $1.52 $1.63 $1.59 $1.65 Next Milestones Total Assets >$5B Efficiency Ratio <40% ROCE >$6B <35% 2017 2018 2019 2020 2021 2022 2023 Q1 2024 -ROCE Loan Portfolio Size (Billions CAD) ■Total Assets (Billions CAD) → Digital Banking Efficiency Ratio VersaBank Choice Through Innovation >16.5% >20% 14#15DRT Cyber: "Free Option" on Digital Banking Valuation 49.One of North America'sDN 3.0 Premiere IT Security 1.2 Assurance S Assurance Services Firms es 7 155.21 Detection 730.91 Assessment DRT Cyber Protection 47 5,874 Лелна D Comprehensive Suite of Services: DN • • • • 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 95.02 Also provides technology development for Digital Banking operations 32.02 15 LO 32.02 Profitable, with solid growth in revenue and EBITDA#16Why VersaBank? Why Now? 16 At inflection point for operating leverage, earnings growth and ROCE generation based on expected continued strong growth in Canada and entry into the U.S Proposed acquisition of national, chartered US bank provides access to $1.8T market for highly unique Receivables Purchase Program (proven out in Canada) Highly risk-mitigated model based on structuring of both deposits and loans Current valuation substantially below US comps based on both P/BV & P/E Profitable cybersecurity services subsidiary is a "free option" Positioned to perform well in a challenging economic environment#17V VersaBank Innovation Centre of Excellence Banking on the Future! [] VersaBank Choice Through Innovation 17