VersaBank - June 2022

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Our investment thesis for (TSX/NASDAQ: VBNK) is unchanged – the bank’s technology-based business model will enable multi-year double-digit EPS growth, while expansion strategies in the US market, blockchain (tokenized deposits) and cybersecurity (DRTC) provide free upside optionality. The stock is clearly responding to execution delays on the US and blockchain strategies. We see associated start-up expenses continuing to restrict EPS in 2022, though also believe execution of a US bank acquisition could be a catalyst to EPS growth and the stock, and see this as a likely 2022/23 event.

Disclosure, Disclaimer, and Wavier of Liability

VersaBank – June 2022