VERSABANK ANNOUNCES FIRST U.S. POS FINANCING PARTNER

VERSABANK ANNOUNCES FIRST U.S. POS FINANCING PARTNER

LONDON, ON, March 31, 2022 /PRNewswire/ – VersaBank (“VersaBank” or the “Bank”) (TSX: VBNK) (NASDAQ: VBNK), a leader in digital banking and cybersecurity solutions, today announced that it has reached an agreement with its first point-of-sale financing partner in United States, a leading North American commercial transportation finance company focused on independent owner-operators. As it does from time to time in its Canadian point-of-sale finance business, VersaBank worked with Securcor Financial Group to originate and structure the transaction. The Bank plans to start financing the partner in the coming weeks.

“We are delighted to bring our innovative point-of-sale financing solution, which has proven to be very successful in Canadato the US$1.8 trillion and the growth of the U.S. consumer and small business financing market,” said David Taylor, President and CEO, VersaBank. “In many ways, the U.S. consumer and small business finance markets resemble those Canada a decade ago. At that time, we saw the opportunity to leverage our state-of-the-art proprietary banking software, innovative financing structures, as well as our access to low-cost funds, to address an unmet need in the market by offering a highly flexible and alternative, cost-effective, technology-based solution for companies financing large consumer and small business purchases. We are confident that America’s consumer and small business finance companies will see the same value that so many others have in Canadaincluding some of the largest such companies in the country. »

Mr. Taylor added: “It is important to our shareholders that the U.S. outlets business represents a significant additional opportunity to grow our long-term loan portfolio, and to do so, as always, by mitigating risks based on our unique model, backed by our industry-leading technology.”

VersaBank’s point-of-sale financing business operates through its receivables purchase program, which purchases loans and lease receivables from finance companies in a wide variety of industries, including commercial equipment, consumer healthcare, vehicles and home improvement. VersaBank’s high-capacity systems enable it to quickly process large numbers of small individual loans and lease receivables. The Bank largely eliminates the credit risk inherent in the purchase of such loans and lease receivables by holding the cash deposits made by originators of the loans and lease receivables to offset potential credit losses.

ABOUT SECURCOR FINANCIAL GROUP

Securcor Financial Group offers customized securitization, trade receivables and structured finance programs to customers across North America. Securcor has established strong financing alliances with several leading financial institutions and, since its inception, has generated more than $6 billion in car financing, equipment leasing and consumer credit contracts. To learn more, please visit www.securcor.com.

ABOUT VERSABANK

VersaBank is a Schedule I Canadian chartered bank with a difference. VersaBank became the world’s first all-digital financial institution when it embraced its highly efficient business-to-business model using its cutting-edge proprietary financial technology to cost-effectively reach underserved segments of the Canadian banking market in pursuit of a higher net interest margins while mitigating risk. VersaBank obtains all of its deposits and provides the majority of its loans and leases electronically, with innovative deposit and lending solutions for financial intermediaries that enable them to excel in their core businesses. Additionally, leveraging its in-house developed software and IT security capabilities, VersaBank has established sole ownership, washington d.c.DRT Cyber ​​​​Inc., a subsidiary based in New York, to seize significant market opportunities in the field of cybersecurity and develop innovative solutions to address the growing volume of cyber threats that daily threaten financial institutions, corporations multinationals and government entities.

VersaBank’s common shares trade on the Toronto Stock Exchange (“TSX”) and Nasdaq under the symbol VBNK and its Series 1 preferred shares trade on the TSX under the symbol VBNK.PR.A.

Visit our website at: www.versabank.com

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SOURCEVersaBank

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