VersaBank (VB) Investor presentation summary

Business model and technology

• Operates a fully digital, branchless, partner-based (B2B) banking model leveraging proprietary cloud-based technology for high efficiency and scalability.

• All deposits and credit assets are managed digitally, with no direct interaction with end users, resulting in a high asset-to-employee ratio.

• Focuses on underserved markets with innovative deposit and financing solutions, and maintains a highly risk-mitigated model with very sticky deposits and no material loan losses.

• Significant operating leverage is derived from the scalability of its technology platform and partner model.

Financial performance and efficiency

• Total assets reached C$5.81B (US$4.1B) as of October 31, 2025, with a net interest margin on credit assets of 2.65%.

• Q4 2025 saw record credit assets (up 20% YoY), record revenue, and a healthy sequential increase in adjusted net income.

• Digital banking efficiency ratio improved, and return on common equity (ROCE) is targeted to exceed 18% as scale increases.

• Non-interest expense (excluding DRTC) was C$63M (US$45M), and net income was C$42M (US$30M) on a run-rate basis.

Risk management and deposit structure

• Employs a technology-based approach to risk analysis and monitoring, with rigorous multi-step approval and real-time credit performance tracking.

• Maintains a very sticky, low-cost deposit base through over 120 deposit broker partners and more than 100 licensed insolvency trustee firms.

• Brokered deposits are 100% term deposits, with 98% insured, and the bank has a 30+ year history of no material credit asset losses.

• Average provision for credit losses as a percentage of average credit assets was 0.03% over the trailing 12 quarters as of Q4 2025.