Investor Presentation January 2021 Advisory 2

The 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 in which the Bank conducts operations; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the ; 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 year ended October 31, 2019.The Bank makes no undertaking to update any forward-looking statement that is made from time to time by the Bank. Proprietary Software & Technological Capabilities 3 for Two High-Growth Opportunities

State-of-the art software platform for banking operations and IT security Expert team of ~65 1 2 software developers Canada’s A North American (>50% of workforce) Leading Leader in Track record of rapid Digital Bank Cybersecurity development of Solutions innovative solutions

Banking operations have delivered 31% CAGR in core cash earnings over last six years 4

The bank of the future… …today… …and for the last The World’s First Digital Bank three decades Using proprietary state-of-the art financial technology to profitably address underserved segments of the Canadian banking market since 1993 There Has Never Been a Better Time 5 to be a Fully Digital Schedule 1 Bank

“Over the next decade we will see more changes in the banking industry than we have witnessed in the past 100 years. This isn’t solely due to advancing technologies, but a confluence of inter-related, structural factors – demographic, socio-economic, regulatory and environmental changes.” KPMG, Future of Digital Banking (2019) Adding Value for Depositors and Lenders Drives Industry 6 Leading Net Interest Margins

Proprietary 2020 technology to provide Loans @ 4.6% Deposits @ 1.7% innovative deposit and lending solutions for financial Industry Leading Net Interest Margin: 2.9% intermediaries that allow them Net Interest Income: $54M to excel in their core businesses Core Cash Earnings: $27M (healthy return of 1.4% of assets)

Significant operating leverage derived from the scalability of the technology platform: Cost to earn $1 of revenue has decreased >30% over last 6 years Software Platform Enables a Highly Efficient, 7 Low-Risk Branchless Partnership Model

Deposits Loans ~27,200 Depositors Through ~128,000 Borrowers Through >220 Partners >275 Partners

Insolvency Professionals (>100 Offices) Point-of-Sale Financing (Loans and Leases)

Wealth Management (>120 Partners) Commercial Mortgages

Access to inexpensive CDIC-insured deposits as a Schedule 1 bank

$1.6B in deposits1 $1.7B in loans1

1. At October 31, 2020. Proven History of Successfully & Profitably Identifying 8 Underserved Banking Opportunities – Insolvency Professional Business

Market Need:

Canada’s insolvency professionals were • Proprietary software solution developed being underserved by entirely in-house to seamlessly generic “big bank” integrate with industry’s most offerings that did not commonly used administrative software integrate with their own • Worked internally with the two largest systems, resulting in insolvency firms to build and test inefficiency and higher • Concept to commercialization in less costs than 12 months • High value-add for insolvency firms results in very low cost of funding for VersaBank

Grown from zero to >100 partners and $508M1 in deposits in ~7 years 1. At October 31, 2020. Low-Cost Deposit Model Contributes to Industry Leading 9 Net Interest Margins

Wealth Management-Facilitated • Schedule I Bank License provides access GIC Deposits to low-cost CDIC-insured deposits • Insolvency professional deposits provided at very low cost (currently 0%)

$1,098M $1,203M $1,150M • Strategic shift of the deposit mix to lower $1,052M $1,041M $960M $1,059M cost deposits • Reducing higher cost personal deposits 2014 2015 2016 2017 2018 2019 20202020 • Increasing lower cost commercial Insolvency and Other Deposits deposits

$96M Extensive partner network provides $97M $96M access to vast supply of inexpensive $89M $83M $508M $396M $440M deposits $61M $324M $37M $220M $96M $123M 2014 2015 2016 2017 2018 2019 20202020 Insolvency Deposits Point of Sale Holdbacks Proven Track Record of Profitably Addressing Underserved Banking 10 Opportunities – Deposits

Market Need: Point-of-Sale Loans & Leases

In the wake of the • Proprietary software 2007/2008 financial solution developed entirely crisis, Canada’s “big in-house in under a year ticket” point of sale lenders required • Provides immediate access to inexpensive adjudication and “on-the- capital and fast, spot” credit approvals, convenient, automated facilitating sales process financing solutions to • Very low-risk: Structured drive growth in their such that default risk resides own businesses with the financing partner

Grown from zero to 19 partners with ~$1B in assets in ~7 years Beta-testing new application of Point-of-Sale software for home/condo developers Growing Higher Margin, Lower Risk-Weighted 11 Point of Sale Loans and Leases

Rapid Growth in Point-of-Sale Financing Loan Portfolio Breakdown (at Oct. 31/20) Commercial Lending – Public Sector & Other

$1,944M $1,809M $1,785M $1,704M $1,725M $1,625M $304M $1,534M Liquid Securities $1,445M 16% $1,404M $963M $918M $790M $920M $918M $258M $1,017M Point of Sale 14% $1,053M Loans/Leases $1,425M $1,217M $981M Commercial $995M $981M $891M $365M Lending - $784M $807M 51% $608M 19% Commercial $392M $109M $187M Mortgages 2012 2013 2014 2015 2016 2017 2018 2019 2020 Point of Sale Loans Other Loans & Liquid Securities & Other Assets

Point of Sale loans/leases have increased as a proportion of total assets to 51% at end of 2020 from 27% at end of 2014 Leading the Canadian Banking Industry in 12 Risk Mitigation and Management

Low Credit Risk 1.42% • Low-cost funding enables higher net interest margins with lower risk loans • Point-of-Sale loans structured such that risk resides with partner lender 0.79% 0.35% • No loan losses throughout its history 0.40% 0.35% 0.32% 0.29% 0.30% 0.32% Low Liquidity Risk • High liquidity ratio 0.12% 0.08% 0.12% 0.06% (0.14%) • Access to a vast supply of (0.01%) 0.02% (0.02%) (0.01%)

low-cost funds PCLas % a Average of Loans 2014 2015 2016 2017 2018 2019 Q2'20 Q3'20 Q4'20 Low Operational Risk • Branchless, digital model • Industry leading security VB PCLs CDN Big Bank Average PCLs Industry Leading Provision for Credit Losses (PCLs) Conservative leverage ratio of 12.19%1: Highest among peers and multiples of that of the public Schedule 1 Momentum in Profitability and Long-Term Earnings Capacity 13

Core Cash Earnings: Net Income:

Growth since 2014 driven 31% 23% mainly by: 6-year CAGR 6-year CAGR

• Lower COF attributable largely to the introduction of $27.8M $26.8M Insolvency Professional $25.4M $19.5M $20.2M $19.4M deposits $18.2M $18.1M

$12.9M • Launch of $9.M $8.2M $8.5M Point of Sale financing $5.4M $5.7M solutions 2014 2015 2016 2017 2018 2019 2020 Core Cash Earnings = pre-tax earnings adjusted for non-core operating income/expenses

2020 profitability dampened by higher than normal cash balances out of an abundance of caution at the beginning of the COVID-19 pandemic Digital Bank Growth Strategy: Momentum for the Future 14

1 2 3 Further Reduce Grow Loan Portfolio Pursue Accretive Acquisitions Cost of Funding via New Near-Term Opportunities to Leverage Scalability of to Expand Net Interest Margin and Existing Offerings Technology Platform

Expand insolvency deposits: higher Near term: Capitalize on renewed Generate capital-efficient, step volumes with existing partners and consumer spending in Point-of-Sale function growth in loan portfolio adding new partners Mid-Term: Expand Point-of-Sale Current environment expected to Expand wealth management Financing loan portfolio through the create new opportunities deposits by adding new partners addition of new partners and higher volumes from existing partners Introduce commercial deposit offerings to new markets Launch Instant Mortgage: Application of Point-of-Sale Financing Launch new low-cost deposit technology for the retail mortgage offerings market (lower risk weighted asset)

Vision: Double assets by continuing to address unmet needs with innovative, custom technology-based banking solutions Leveraging the Success of the Point of Sale Business for the Real 15 Estate Market: Instant Mortgage

Market Need:

A software-based solution for home and Solution: Instant Mortgage – condo developers and A revolutionary high-volume residential sales brokerages that financing software app for home enables “on-the-spot” builders and brokerage firms financing approvals, • Very low-risk structure similar to with a specific focus on Point-of-Sale Loan and Lease model newcomer home and with cash holdbacks condo buyers with significant wealth but • Currently in beta-testing with a no credit history in leading Canadian developer and a Canada leading Canadian sales brokerage firm

Will enable entry into the >$200 B Canadian home financing market Expect to originate first loans in the coming months 16

Leveraging Our Banking Technology DNA DRT Cyber (VersaBank Wholly-Owned Subsidiary) for Addressing the Rapidly Growing Volume of Large-Market Cyber Threats Challenging Organizations Opportunities Developing innovative solutions for financial Beyond Our Core institutions, multi-national corporations and Business government entities Cybersecurity is a Large and Rapidly Growing Market 17

“We have been engaged in a $13M average cost of cybercrime for fifth-dimension war, a cyberwar.” an organization -Accenture: 9th Annual Cost “There is no greater security threat of Cybercrime Study (2019) to organizations today than the vulnerability of its IT systems.” forecast of global spending on $133.7B cybersecurity in 2022 -Tom Ridge - Gartner, Inc. (2018) First US Secretary of Homeland Security

“Properly implemented strong estimated cost of cybercrime to crypto systems are one of the few $8T businesses from 2019 to 2024 things that you can rely on.” - World Economic Forum: The Global Risks Report (2018) -Edward Snowden

COVID-19 pandemic is highlighting the cybersecurity imperative Leveraging Our Banking Technology DNA: 18 Large-Market Opportunities Beyond Our Core Business

Canadian banks are leaders in cyber DRT Cyber, Inc. security and VersaBank is a cyber security leader among Canadian banks Established in 2019 Based in Washington, DC • At the leading edge of the next generation of security-focused banking solutions Key Personnel: • Commercialization of internal mission critical software – platform for broad Honorable Tom Ridge, Chairman – First US application Secretary of Homeland Security

• Development capability with minimal Avery Pennarun, Director – Former Senior capital investment and operating costs Software Engineer at X Inc., Google Fiber, and • Core technology capabilities enable rapid Google Inc. development commercialization Gurpreet Sahota, Chief Operating Officer – Former Principal Cyber Security Architect at Blackberry VersaVault®: Digital Safety Deposit Box 19

The world’s first digital bank vault for securing cryptocurrency, blockchain-based assets and highly sensitive digital documents DRT Cyber’s first offering Based on VersaBank’s own security technology Targeted at cryptocurrency exchanges, crypto investment funds and others Exclusively licensed to and managed by Chairmans Financial B.V. (Netherlands) Planned global expansion 20

Building a comprehensive suite of innovative cyber security solutions that address high-demand, underserved segments of this rapidly growing market Acquisition of Digital Boundary Group: Complements 21 DRT Cyber’s Comprehensive Suite of Security Solutions

DBG: One of North America’s premiere IT security assurance services firms • Suite of services: • External network, web and mobile app penetration testing • Physical social engineering engagements • Supervisory control and data acquisition (SCADA) system assessments • Various aspects of training • Clients include: • Large Canadian retailers & financial service providers • Purchase price of ~$10 M (cash) • Canadian/U.S. police service organizations • Profitable and growing rapidly • SCADA system reliant energy, public utilities and infrastructure firms • Immediately accretive to VersaBank earnings DRT Cyber Growth Strategy: 22 Multiple, Significant Growth Opportunities 1 2 3 Expand VersaVault® Continue to grow Develop and launch globally DBG business new complementary products/services 4 5 Acquisitions of Cross-sell and complementary up-sell products/services Q4 2020: Continued Strong Financial Results 23

Income Statement Balance Sheet

3 Months Ended 12 Months Ended October 31 Oct. 31 At October 31 2020 2019 Change 2020 2019 Δ 2020 2019 Δ Total Assets $1.94 B $1.79 B +9% Revenue $13.7M $13.6 M +1% $54.2 M $53.9 +1% -20 Book Value per Common Cost of Funding 1.51% 1.92% -41 bps 1.71% 1.91% $10.70 $9.98 +7% bps Share Net Interest Margin 2.82% 3.04% -22 bps 2.90% 3.00% -10 bps CET1 Ratio 13.88% 13.16% +72bps Core Cash $6.5 M $7.4 M -12% $26.8 M $27.8M -4% Earnings1 Leverage Ratio 12.19% 11.99% +20bps Core Cash Earnings $0.31 $0.36 -$0.05 $1.27 $1.32 -$0.05 Cash balance at end of Q4/20 of $258 M – ~13% of Common Share total assets compared with historical ranges of 6-7% Net Income $4.7 M $5.4 M -12% $19.4 M $20.2 M -4% Basic and Diluted Cash balance at end of Q4/20 decreased to $258 M Net Income per $0.20 $0.23 -$0.03 $0.82 $0.85 -$0.03 Common Share from $354 M at the end of Q3/20 1. Core Cash Earnings is calculated as pre-tax earnings less non-core operating income/expenses. Bank continuing to deploy cash to Point-of-Sale and Commercial Banking loan portfolios in Q1 2021 Market Facts & Corporate Info 24

Common Shares TSX: VB Acquisition of Trust Company and commenced Recent Price (Dec. 31, 2020) $8.88 operations as digital financial in 1993 Quarterly Dividend $0.025/share Granted Schedule I Bank Licence in 2002 (first Annualized Dividend Yield ~1.1% Schedule I license granted in 18 years)

Market Cap ~$188 million Listed on the TSX in 2013 Common Shares Outstanding 21,123,559 98 full-time employees 52-Week High/Low $9.12/$4.41 Year end: October 31 Preferred Shares

Series 1 VB.PR.A ~7.2%

Series 3 VB.PR.B ~7.2%

Common shares trading at only ~83% of book value 25 VersaBank: Two High-Growth Opportunities

Digital Banking Positioned for 1 Proven Ability to Identify Continued Unmet Market Needs & Develop Innovative Outsized, Long- Solutions Term Growth

Cybersecurity + Significant New Leading technology and capabilities for a Long-Term Growth large, high-growth Opportunities 2 market Appendix Board of Directors & Management Team Board of Directors 27

Honourable Thomas A. Hockin Chairman David Taylor President & CEO Gabrielle Bochynek Director Robbert-Jan Brabander Director David Bratton Director R.W. (Dick) Carter Director Peter Irwin Director Susan McGovern Director Paul Oliver Director Art Linton Director Senior Management 28

David Taylor Ross Duggan President & Chief Executive Officer SVP, Commercial Lending Shawn Clarke Jonathan Taylor Chief Financial Officer SVP, Deposit Services & Chief HR Officer Gurpreet Sahota Michael Dixon Chief Architect, Cyber-Security SVP, eCommerce Barbara Hale Steve Creery Chief Compliance Officer & Chief Anti-Money Laundering Officer Vice President, Credit Nick Kristo Andy Min Chief Credit Officer VP, Finance & Corporate Accounting Joanne Johnston Scott Mizzen Chief Internal Auditor VP, Real Estate Lending Wooi Koay Jean-Paul Beker Chief Information Officer VP, Real Estate Lending Aly Lalani David Thoms Chief Risk Officer & Treasurer VP, Structured & Corporate Finance Tel Matrundola Brent Hodge Chief Strategist General Counsel & Corporate Secretary Jim Gardiner Product Champion, Instant Mortgage 29

We’re Just Getting Started! Investor Presentation January 2021