First Quarter2017

Advisory.2

The Bank occasionally makes forward-looking statements about its objectives, operations and targetedfinancial results. These statements may be written or verbal and may be included in such things as pressreleases, corporate presentations, Annual Reports and other disclosure documents and communications.By their very nature, forward-looking statements involve inherent risks and uncertainties, both general andspecific, and risks exist that predictions, forecasts, projections and other forward-looking statements willnot be achieved. A number of important factors could cause actual results to differ materially from theplans, 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 thestrength of local economies within Canada in which we conduct operations; the effect of changes ininterest rates; the effects of competition in the markets in which we operate; capital market fluctuations;and the impact of changes in laws and regulations. When relying on forward-looking statements to makedecisions, investors and others should carefully consider these factors and other uncertainties or potentialevents. The Bank makes no undertaking to update any forward-looking statement that is made from timeto time by the Bank.

Mission.

To deliver a competitive and sustainable rate of return to shareholders by delivering ideally suited financial products, services and solutions to our clients in niche markets throughout Canada.

Vision.

We aspire to be our clients preferred provider of innovative financial solutions.

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Leverage existing financial product distribution channels

in order to minimize investment in physical infrastructure and human resources.

Design, develop and maintain state-of-the-art, custom banking

business and administration software in order to maximize transaction capacity, velocity and operational efficiency.

Strategic Priorities.4

Bank Overview.

Schedule l Bankwith$1.77 billionin assets

Schedule lChartered BankIn 2002

81Full-timeemployees

Listed on

TSXin2013

CMHCapproved lender

Member institutionof theCanada Deposit Insurance Corporation

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Firstbranchless bank

Bank Overview.

13.1%NET INCOME

Q1 - 2017

$11.9MASSETS

$1.77B $1.4BDEPOSITS

$202.6MSHAREHOLDERS’

EQUITYTOTAL

CAPITAL

6

Balance Sheet.January 31, 2017 BALANCE SHEET ANALYSIS

48%43%

9%

44%48%

8%

Liquid Assets$148 Liquid Assets

$136

Commercial Banking$765

eCommerce$823

January 31, 2016 January 31, 2017

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eCommerce$702

Commercial Banking$798

2.44% NIM 3.15% NIM

BRANCHLESS BANKING MODEL

Deposits raised through a “branchless” network of over 110 brokers across Canada.

Over 5,000 Investment Advisors in more than 450 Deposit Broker offices across Canada.

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1. Deposit Broker Network

2. Special Current Accounts

3. Vendor Deposits

Custom banking solutions for nichemarkets.

Bulk receivable purchase program.

Sources of Deposit Gathering.

BRANCHLESS BANKING MODEL

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Commercial BankingFull suite of commercial lending products with an emphasis on real estate secured loans

.

Lending Services.

eCommerceA variety of consumer and small business loan and lease receivables purchased electronically from originators operating throughout Canada

16.6% 14.0% 11.9% 11.3% 11.1% 11.0% 10.9% 10.6% 10.3% 9.5% 8.2%

Comparative Capital Ratios.COMMON EQUITY TIER 1

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9.5% 8.4% 7.2% 5.1% 4.5% 4.4% 4.2% 4.2% 4.0% 4.0% 3.8%

Leverage Percentage.January 31, 2017

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Bulk Receivable Purchases.

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Our bulk receivable purchase program continues to grow as we establish new relationships and increase purchasesfrom our 22 existing vendor partners.

200M

400M

600M

800M

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Trustee Integrated Banking.

April 2012 VersaBank launches Trustee Integrated Banking Services

January 2017 72 Trustee Offices and over $228M on Deposit

Number of Trustee Offices Total Trustee Portfolio $M

13

0

10

20

30

40

50

60

70

80

$0

$50

$100

$150

$200

$250

Key Performance Trends.

0

5

10

15

20

25

30

35

40

45

50

55

2011 2012 2013 2014 2015 2016 Q1 - 2017

2.30%

1.50%

1.70%

1.90%

2.10%

1.30%

0.50%

0.70%

0.90%

1.10%

2.54%

1.21%

1.30%

1.74%

1.96%

2.21%

2.31%

Net Interest Income (NII) $millionsNet Interets Margin (NIM)

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2.50%

Credit Quality.

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

2011 2012 2013 2014 2015 2016

Gross Impaired Loans / Total Loans

0%

0.13%0.14%

15

0.41%0.39%

0.30%0.28%

0.26% 0.27%

Average credit lossesof the big banks

0%0%0% 0%

Q1 - 2017

0.29%

Total Assets.

$millions

1800

1000

1200

1400

1600

800

0

200

400

600

2011 2012 2013 2014 2015 2016

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Q1 - 2017

17.36 14.59 14.21 14.09 13.49 13.34 12.89 11.00 8.90 8.09 6.80

Price Earnings Ratio.January 31, 2017

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2.20 2.00 2.00 1.90 1.80 1.70 1.30 1.20 1.10 0.99 0.61

Price to Book Value.January 31, 2017

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Financial Overview.

Common Shares:VB:TSX $5.00

Issued Shares: 21,123,559

Based on recent share price $5.00, Market Capitalization was $105,617,795.

Preferred Shares: VB.PR.A:TSX $10.00 (yield 7.0%)

Non-cumulative 5-year rate preferred shares, series 1.

Issued Shares 1,461,460

Based on recent share price of $9.70 Market Capitalization was $14,176,162.

Preferred Shares: VB.PR.B:TSX$10.00 (yield 7.0%)

Non-cumulative 6-year rate reset preferred shares, series 3.

Issued Shares 1,681,320

Based on recent share price of $9.70 Market Capitalization was $16,308,804.

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Financial Snapshot.

For the year ended October 31

2012 2013 2014 2015 2016

Net Interest 19.6 25.6 27.9 34.0 38.4

Net InterestMargin (NIM) 1.30% 1.75% 1.96% 2.21% 2.31%

Net Income 3.8 1.8 5.7 8.2 8.5

Assets 1,534 1,405 1,446 1,625 1,704

Deposits 1,317 1,187 1,194 1,326 1,369

Shareholder’sEquity 93.1 133.1 152.5 174.6 185.9

Common EquityTier 1 Ratio n/a 11.29% 11.25% 10.32% 10.52%

Total CapitalRatio 12.81% 12.99% 13.69% 13.51% 13.27%

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Management Team Overview.21

Senior management team is led by David Taylor, who has over 40 years of experience in the banking industry

−Comprised of professionals with expertise in the areas of lending credit risk management, deposit gathering and management, finance and accounting, human resources, information technology, legal and enterprise risk management

Board of Directors, led by Chairman, the Honorable Tom Hockin, PC, has considerable experience in the banking industry

−Possess a wide breadth of finance, audit, banking, legal, regulatory, and general business experience, which not only contributes to the accomplishment of the Bank's growth objectives, but also the effective management and oversight of core business risks

Board of Directors Title

Tom Hockin Chairman

David Taylor President & CEO

Robbert-Jan Brabander Director

David Bratton Director

Arnold Hillier Director

Colin Litton Director

Susan McGovern Director

Paul Oliver Director

R.W. (Dick) Carter Director

Avery Pennarun Director

Select Executive Officers Title

David Taylor President & Chief Executive Officer

Shawn Clarke Chief Financial Officer

Michael Dixon Executive Head, e-Commerce

Ross DugganExecutive Head &

SVP, Commercial Lending

Nick Kristo Chief Risk Officer & SVP

Aly Lalani Treasurer

Tel Matrundola Executive Head, VersaBank Innovation Centre of Excellence

Cameron MitchellGeneral Counsel &

Corporate Secretary

Jonathan TaylorExecutive Head &

SVP, Deposit Services & HR

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