VERSABANK ANNOUNCES LARGEST US RPP PARTNER TO DATE; SURPASSES US RPP TARGET WITH US$310 MILLION FUNDED IN FISCAL 2025

Rhea-AI Summary

VersaBank (TSX: VBNK) announced on Nov 3, 2025 that its US subsidiary, VersaBank USA, has signed an agreement with its largest US Receivable Purchase Program (RPP) partner to date and completed an initial US$61 million funding.

Total US RPP fundings in fiscal 2025 reached US$310 million, comprised of US$242 million via the core RPP and US$68 million via the Securitized RPP. RPP assets at year end were US$293 million (core US$227 million; securitized US$66 million), surpassing the Bank's first‑year target of US$290 million. Management said both offerings are gaining momentum in the US and expects to expand US assets by at least "several fold" in fiscal 2026.

Positive

• US$310 million total US RPP fundings in fiscal 2025
• US$293 million in RPP assets at year end, above the US$290 million target
• Initial US$61 million funding from the largest US RPP partner to date
• US$242 million funded via core RPP and US$68 million via Securitized RPP

Negative

• New US partner requested anonymity, limiting counterparty transparency
• US expansion plan depends on securing additional partners to scale assets

Attention: Business Editors

LONDON, ON, Nov. 3, 2025 /PRNewswire/ - VersaBank (TSX: VBNK) (NASDAQ: VBNK), a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today announced its wholly owned US subsidiary, VersaBank USA, has entered into an agreement with its largest US RPP partner to date, under which, the partner will utilize the Bank's core Receivable Purchase Program (RPP) in the United States. For commercial reasons, the partner has requested not to be named until a later date.

The Bank immediately completed an initial funding of US$61 million with the new partner, bringing its total US RPP fundings in fiscal 2025 to US$310 million and bringing RPP assets at year end to US$293 million, surpassing the Bank's first year target of US$290 million. The Bank's US$310 million of fundings in fiscal 2025 was composed of US$242 million through the Bank's core RPP offering and US$68 million through the Bank's Securitized RPP offering, while the $293 million in RPP assets at year end was composed of US$227 million through the Bank's core RPP offering and US$66 million through the Bank's Securitized RPP offering.

"We are thrilled to add our largest US RPP partner to date, further evidence of the attractiveness of VersaBank's RPP, and we look forward to expanding our relationship with this partner to our mutual benefit, while continuing to add new partners in the year to come," said David Taylor, Founder and President, VersaBank. "Both our core RPP and our Securitized RPP offerings are gaining momentum in the US market, and we expect to expand our US assets at a minimum of several fold in fiscal 2026."

About VersaBank

VersaBank is a North American bank with a difference. Federally chartered in both Canada and the US, VersaBank has a branchless, digital, business-to-business model based on its proprietary state-of-the-art technology that enables it to profitably address underserved segments of the banking industry in a significantly risk mitigated manner. Because VersaBank obtains substantially all of its deposits and undertakes the majority of its funding electronically through financial intermediary partners, it benefits from significant operating leverage that drives efficiency and return on common equity. In August 2024, VersaBank broadly launched its unique Receivable Purchase Program funding solution for point-of-sale finance companies, which has been highly successful in Canada for nearly 15 years, to the underserved multi-trillion-dollar US market. VersaBank also owns Minneapolis-based DRT Cyber Inc., a North America leader in the provision of cyber security services to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities. Through its wholly owned subsidiary, Digital Meteor Inc. ("Digital Meteor"), VersaBank owns proprietary intellectual property and technology to enable the next generation of digital assets for the banking and financial community, including the Bank's revolutionary tokenized deposits.

VersaBank's Common Shares trade on the Toronto Stock Exchange and NASDAQ under the symbol VBNK.

FORWARD-LOOKING STATEMENTS

VersaBank's public communications often include written or oral forward-looking statements. Statements of this type are included in this document, and may be included in other filings and with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. The statements in this press release that relate to the future are forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, many of which are out of our control. Risks exist that predictions, forecasts, projections, and other forward-looking statements will not be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements as several 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 and U.S. economy in general and the strength of the local economies within Canada and U.S. in which we conduct operations; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the Bank of Canada and the U.S. Federal Reserve; changing global commodity prices; the effects of competition in the markets in which we operate; inflation; capital market fluctuations; the timely development and introduction of new products in receptive markets; the impact of changes in the laws and regulations pertaining to financial services; changes in tax laws; technological changes; unexpected judicial or regulatory proceedings; unexpected changes in consumer spending and savings habits; the impact of wars or conflicts including the crisis in Ukraine and the impact of the crisis on global supply chains; the impact of new variants of COVID-19 and the Bank's anticipation of and success in managing the risks implicated by the foregoing. For a detailed discussion of certain key factors that may affect our future results, please see our annual MD&A for the year ended October 31, 2024.

The foregoing list of important factors is not exhaustive. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The forward-looking information contained in this document and the related management's discussion and analysis is presented to assist our shareholders and others in understanding our financial position and may not be appropriate for any other purposes. Except as required by securities law, we do not undertake to update any forward-looking statement that is contained in this document and the related management's discussion and analysis or made from time to time by the Bank or on its behalf.

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SOURCE VersaBank

FAQ

What did VersaBank (VBNK) announce on November 3, 2025 about its US RPP?

VersaBank said VersaBank USA signed with its largest US RPP partner to date and completed an initial US$61M funding.

How much did VersaBank (VBNK) fund in US RPPs in fiscal 2025?

Total US RPP fundings in fiscal 2025 were US$310 million.

What were VersaBank's (VBNK) RPP assets at year end and did they meet the target?

RPP assets at year end were US$293 million, which surpassed the Bank's first‑year target of US$290 million.

How were VersaBank's (VBNK) US$310M fundings split between core and securitized RPP?

Fundings were US$242M via the core RPP and US$68M via the Securitized RPP.

What does the initial US$61M funding mean for VersaBank (VBNK) shareholders?

The US$61M initial funding signals partner traction in the US RPP business and contributed to the US$310M fiscal 2025 total, supporting growth prospects.

What growth does VersaBank (VBNK) expect for US RPP assets in fiscal 2026?

Management expects to expand US assets by at least "several fold" in fiscal 2026.