Exhibit 99.1

Interim Consolidated Financial Statements

April 30, 2025

(Unaudited)

1

VERSABANK

Consolidated Balance Sheets

(Unaudited)

(thousands of Canadian dollars)
	April 30			October 31			April 30
As at	2025			2024			2024
Assets
Cash	$	340,186		$	225,254		$	198,808
Securities (note 4)		104,807			299,300			103,769
Credit assets, net of allowance for credit losses (note 5)		4,523,812			4,236,116			4,018,458
Property and equipment		24,376			23,885			24,172
Goodwill		12,301			12,301			5,754
Intangible assets		11,159			12,054			2,594
Other assets (note 6)		30,492			29,574			34,765
	$	5,047,133		$	4,838,484		$	4,388,320
Liabilities and Shareholders' Equity
Deposits	$	4,205,185		$	4,144,673		$	3,693,495
Subordinated notes payable (note 7)		101,844			102,503			101,108
Other liabilities (note 8)		211,798			192,105			193,614
		4,518,827			4,439,281			3,988,217
Shareholders' equity:
Share capital (note 9)		329,799			215,610			228,471
Contributed surplus		2,540			2,485			2,717
Retained earnings		196,284			181,238			168,776
Accumulated other comprehensive income (loss)		(317	)		(130	)		139
		528,306			399,203			400,103
	$	5,047,133		$	4,838,484		$	4,388,320

The accompanying notes are an integral part of these interim Consolidated Financial Statements.

2

VERSABANK

Consolidated Statements of Income and Comprehensive Income

(Unaudited)

(thousands of Canadian dollars, except per share amounts)
	for the three months ended					for the six months ended
	April 30			April 30		April 30			April 30
	2025			2024		2025			2024
Interest income:
Credit assets	$	65,898		$	66,096	$	132,857		$	131,172
Other		5,078			5,147		11,365			9,363
		70,976			71,243		144,222			140,535
Interest expense:
Deposits and other		41,551			43,469		87,681			84,740
Subordinated notes		1,393			1,532		2,785			2,985
		42,944			45,001		90,466			87,725
Net interest income		28,032			26,242		53,756			52,810
Non-interest income		2,107			2,259		4,210			4,542
Total revenue		30,139			28,501		57,966			57,352
Provision for (recovery of) credit losses (note 5)		889			16		1,913			(111	)
		29,250			28,485		56,053			57,463
Non-interest expenses:
Salaries and benefits		9,155			7,409		17,769			13,947
General and administrative		6,720			3,557		12,209			7,890
Premises and equipment		1,641			1,219		3,237			2,372
		17,516			12,185		33,215			24,209
Income before income taxes		11,734			16,300		22,838			33,254
Income tax provision (note 10)		3,205			4,472		6,166			8,727
Net income	$	8,529		$	11,828	$	16,672		$	24,527
Other comprehensive income (loss):
Items that may subsequently be reclassified to net income: Foreign exchange gain (loss) on translation of foreign operations		(15	)		66		(187	)		8
Comprehensive income	$	8,514		$	11,894	$	16,485		$	24,535
Basic and diluted income per common share (note 11)	$	0.26		$	0.45	$	0.54		$	0.93

The accompanying notes are an integral part of these interim Consolidated Financial Statements.

3

VERSABANK

Consolidated Statements of Changes in Shareholders’ Equity

(Unaudited)

(thousands of Canadian dollars)
	for the three months ended						for the six months ended
	April 30			April 30			April 30			April 30
	2025			2024			2025			2024
Common shares (note 9):
Balance, beginning of the period	$	330,489		$	214,824		$	215,610		$	214,824
Issued during the period		-			-			114,879			-
Share issue cost adjustment		(690	)		-			(690	)		-
Balance, end of the period	$	329,799		$	214,824		$	329,799		$	214,824
Preferred shares (note 9):
Series 1 preferred shares
Balance, beginning and end of the period	$	-		$	13,647		$	-		$	13,647
Total share capital	$	329,799		$	228,471		$	329,799		$	228,471
Contributed surplus:
Balance, beginning of the period	$	2,540		$	2,645		$	2,485		$	2,513
Stock-based compensation (note 9)		-			72			55			204
Balance, end of the period	$	2,540		$	2,717		$	2,540		$	2,717
Retained earnings:
Balance, beginning of the period	$	188,568		$	157,845		$	181,238		$	146,043
Net income		8,529			11,828			16,672			24,527
Dividends paid on common and preferred shares		(813	)		(897	)		(1,626	)		(1,794	)
Balance, end of the period	$	196,284		$	168,776		$	196,284		$	168,776
Accumulated other comprehensive income:
Balance, beginning of the period	$	(302	)	$	73		$	(130	)	$	131
Other comprehensive income (loss)		(15	)		66			(187	)		8
Balance, end of the period	$	(317	)	$	139		$	(317	)	$	139
Total shareholders' equity	$	528,306		$	400,103		$	528,306		$	400,103

The accompanying notes are an integral part of these interim Consolidated Financial Statements.

4

VERSABANK

Consolidated Statements of Cash Flows

(Unaudited)         

(thousands of Canadian dollars)
	for the six months ended
	April 30			April 30
	2025			2024
Cash provided by (used in):
Operations:
Net income	$	16,672		$	24,527
Adjustments to determine net cash flows:
Items not involving cash:
Provision for (recovery of) credit losses		1,913			(111	)
Stock-based compensation		75			204
Income tax provision		6,166			8,727
Interest income		(144,222	)		(140,535	)
Interest expense		90,466			87,725
Amortization		1,472			1,206
Accretion of discount on securities		(366	)		(56	)
Foreign exchange rate change on assets and liabilities		1,280			7,830
Interest received		146,084			136,601
Interest paid		(95,405	)		(82,123	)
Income taxes paid		(7,926	)		(11,339	)
Change in operating assets and liabilities:
Credit assets		(289,213	)		(164,600	)
Deposits		65,571			154,721
Change in other assets and liabilities		18,932			9,734
		(188,501	)		32,511
Investing
Foreign exchange forward settlement		4,262			-
Sale of securities		189,348			63,749
Purchase of property and equipment		(721	)		(16,353	)
		192,889			47,396
Financing:
Issuance of common shares, net of issue costs		114,189			-
Redemption of subordinated notes payable		-			(5,000	)
Dividends paid		(1,626	)		(1,794	)
Repayment of lease obligations		40			(357	)
		112,603			(7,151	)
Change in cash		116,991			72,756
Effect of exchange rate changes on cash		(2,060	)		(6,190	)
Cash, beginning of the period		225,254			132,242
Cash, end of the period	$	340,186		$	198,808

The accompanying notes are an integral part of these interim Consolidated Financial Statements.

5

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

1. Reporting entity:

In Canada, VersaBank (the “Bank”) operates as a Schedule I bank under the Bank Act (Canada) and is regulated by the Office of the Superintendent of Financial Institutions Canada (“OSFI”). Following its acquisition of Stearns Bank Holdingford N.A. and renaming it VersaBank USA N.A. (“VersaBank USA”), on August 30, 2024, in the United States, the Bank, through its wholly owned subsidiary, VersaBank USA, holds a national Office of the Comptroller of the Currency (“OCC”) charter and is regulated by the OCC. The Bank, whose shares trade on the Toronto Stock Exchange and Nasdaq, provides primarily commercial lending and banking services to select niche markets in Canada and the United States, as well as cybersecurity services through the operations of its wholly owned subsidiary DRT Cyber Inc., (“DRTC”). The Bank is incorporated and domiciled in Canada, and maintains its registered office at Suite 2002, 140 Fullarton Street, London, Ontario, Canada, N6A 5P2.

2. Basis of preparation:

a) Statement of compliance:

These interim Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and have been prepared in accordance with International Accounting Standard (“IAS”) 34 – Interim Financial Reporting and do not include all the information required for full annual financial statements. These interim Consolidated Financial Statements should be read in conjunction with the Bank’s audited Consolidated Financial Statements for the year ended October 31, 2024.

The interim Consolidated Financial Statements for the three and six months ended April 30, 2025, and 2024 were approved by the Audit Committee of the Board of Directors on June 2, 2025.

b) Basis of measurement:

These interim Consolidated Financial Statements have been prepared on the historical cost basis except securities (note 4), the investment in Canada Stablecorp Inc. (note 6) and derivative instruments (note 12), which are measured at fair value in the Consolidated Balance Sheets.

c) Functional and presentation currency:

These interim Consolidated Financial Statements are presented in Canadian dollars, which is the Bank’s functional currency. Functional currency is also determined for each of the Bank’s subsidiaries, and items included in the interim financial statements of the subsidiaries are measured using their functional currency.

6

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

d) Use of estimates and judgements:

In preparing these interim Consolidated Financial Statements, management has exercised judgement and developed estimates in applying accounting policies and generating reported amounts of assets and liabilities at the date of the financial statements and income and expenses during the reporting periods. Areas where judgement was applied include assessing significant changes in credit risk on credit assets and in the selection of relevant forward-looking information in assessing the Bank’s allowance for expected credit losses on its credit assets as described in note 5 – Credit assets. Estimates are applied in the determination of the allowance for expected credit losses on credit assets, the fair value of stock options granted as described in note 9, the fair value of derivatives, the fair value of the investment in Canada Stablecorp Inc. as described in note 6, the impairment test applied to intangible assets and goodwill, the measurement of deferred income taxes and the revaluation of property and equipment. It is reasonably possible, based on existing knowledge, that actual results may vary from those expected in the development of these estimates. This could result in material adjustments to the carrying amounts of assets and/or liabilities affected in the future.

Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are applied prospectively once they are known.

3. Material Accounting Policy Information and future accounting changes:

The accounting policies applied by the Bank in these interim Consolidated Financial Statements are the same as those applied by the Bank as at and for the year ended October 31, 2024, and are detailed in note 3 of the Bank’s 2024 audited Consolidated Financial Statements.

4. Securities:

As at April 30, 2025, the Bank held securities totaling $104.8 million ( October 31, 2024 - $299.3 million), including accrued interest, comprised of US Treasury Bills with a carrying value of $98.7 million, Government of Canada bonds with a carrying value of $3.1 million and other securities with a carrying value of $3.0 million.

5. Credit assets, net of allowance for credit losses:

VersaBank organizes its Credit Asset portfolios into the following two broad asset categories: Receivable Purchase Program (previously referred to as “Receivable Purchase Program/Point-of-Sale Loans & Leases” or “Point-of-Sale Loans & Leases”) and Multi-Family Residential Loans and Other (the amalgamation of what was previously referred to as “Commercial Real Estate Mortgages”, “Commercial Real Estate Loans”, and “Public Sector and Other Financing”). These categories have been established in VersaBank’s proprietary, internally developed asset management system and have been designed to catalogue individual lending assets as a function primarily of their key risk drivers, the nature of the underlying collateral, and the applicable market segment.

The Receivable Purchase Program (“RPP”) category is composed of investments in the expected cash flow streams derived primarily from consumer and small business loans and leases that are originated and owned throughout their lifetime by VersaBank’s RPP partners.

7

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

The Multi-Family Residential Loans and Other (“MROL”) category is composed of two sub-segments:  Multi-Family Residential Loans, which consists of CMHC-insured (zero-risk weighted) loans and uninsured loans to real estate developers to finance the construction phase of development of multi-family, student residence, condominium and retirement home properties, as well as term and bridge loans to real estate developers secured by completed aforementioned properties and units. It also includes public sector and infrastructure loans and leases. The majority of these loans are business-to-business loans with the underlying credit risk exposure being primarily residential in nature given that the vast majority of the loans are related to properties that are designated primarily for residential use. The portfolio benefits from diversity in its underlying security in the form of a broad range of such collateral properties.

Summary of Credit assets, net of allowance for credit losses:

(thousands of Canadian dollars)
	April 30			October 31			April 30
	2025			2024			2024
Receivable purchase program	$	3,548,931		$	3,307,328		$	3,114,024
Multi-family residential loans and other		958,249			910,314			885,136
		4,507,180			4,217,642			3,999,160
Allowance for credit losses		(4,958	)		(3,303	)		(2,402	)
Accrued interest		21,590			21,777			21,700
Total credit assets, net of allowance for credit losses	$	4,523,812		$	4,236,116		$	4,018,458

The following table provides a summary of credit asset amounts, ECL allowance amounts, and expected loss (“EL”) rates by lending asset category:

	As at April 30, 2025												As at October 31, 2024
(thousands of Canadian dollars)	Stage 1			Stage 2			Stage 3			Total			Stage 1			Stage 2			Stage 3			Total
Receivable purchase program	$	3,528,735		$	19,846		$	351		$	3,548,931		$	3,294,675		$	12,653		$	-		$	3,307,328
ECL allowance		2,360			611			29			3,000			783			-			-			783
EL %		0.07	%		3.08	%		8.27	%		0.08	%		0.02	%		0.00	%		0.00	%		0.02	%
Multi-family residential loans and other	$	721,610		$	205,807		$	30,832		$	958,249		$	737,125		$	173,121		$	68		$	910,314
ECL allowance		1,400			557			1			1,958			2,213			306			1			2,520
EL %		0.19	%		0.27	%		0.00	%		0.20	%		0.30	%		0.18	%		1.47	%		0.28	%
Total credit assets	$	4,250,345		$	225,653		$	31,182		$	4,507,180		$	4,031,800		$	185,774		$	68		$	4,217,642
Total ECL allowance		3,760			1,168			30			4,958			2,996			306			1			3,303
Total EL %		0.09	%		0.52	%		0.10	%		0.11	%		0.07	%		0.16	%		1.47	%		0.08	%

The Bank’s maximum exposure to credit risk is the carrying value of its financial assets. The Bank holds security against the majority of its credit assets in the form of mortgage interests over property, other registered securities over assets, guarantees and/or cash reserves (holdbacks) related to receivables purchased included in the RPP Financing portfolio (see note 8).

8

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

Allowance for credit losses

The Bank must maintain an allowance for expected credit losses that are adequate, in management’s opinion, to absorb all credit related losses in the Bank’s lending and treasury portfolios. The expected credit loss methodology requires recognition of credit losses based on 12 months of expected losses for performing credit assets  which is reflected in the Bank’s Stage 1 grouping. The Bank recognizes lifetime expected losses on credit assets  that have experienced a significant increase in credit risk since its origination, which is reflected in the Bank’s Stage 2 grouping. Impaired credit assets  require recognition of lifetime losses and are reflected in Stage 3 grouping.

Forward-looking Information

The Bank has sourced credit risk modeling systems and forecast macroeconomic scenario data from Moody’s Analytics, a third-party service provider for the purpose of computing forward-looking credit risk parameters under multiple macroeconomic scenarios that consider both market-wide and idiosyncratic factors and influences. The macroeconomic indicator data utilized by the Bank for the purpose of sensitizing probability of default and loss given default term structure data to forward economic conditions include, but are not limited to: real GDP, the national unemployment rate, long term interest rates, the consumer price index, the S&P/TSX Index and the price of oil. These specific macroeconomic indicators were selected in an attempt to ensure that the spectrum of fundamental macroeconomic influences on the key drivers of the credit risk profile of the banks assets, including: corporate, consumer and real estate market dynamics; corporate, consumer and SME borrower performance; geography; as well as collateral value volatility, are appropriately captured and incorporated into the Bank’s forward macroeconomic sensitivity analysis.

The key assumptions driving the quarterly outlook for 2025 include global  tariffs policies and the uncertainty surrounding their size, scope and timing, which may pose challenges to the Canadian and the U.S. economies, potentially leading to reduced economic activity. Reduced export demand could curtail investment and hiring, slowing consumption growth. The economy should avoid recession, but annual GDP growth will likely slow to a standstill by the end of 2025. The unemployment rate forecast has been revised upward in response to a more subdued growth outlook. However, as the elevated tariff levels are expected to be temporary, the impact on employment may be limited. Additionally, upcoming changes to Canadian immigration policy are anticipated to reduce labor force growth in 2025, which could influence the unemployment rate downward. Tariffs may stir inflationary pressure.

Inflation is expected to heat up over the coming quarters, though CPI inflation should not exceed the mid-2% range as demand remains soft. Lower interest rates will likely not be quite enough to overcome weakening consumer sentiment and rising joblessness. New construction should slow, and residential housing prices will likely dip slightly in the second half of 2025. The US tariff policy affecting Canada and U.S. economies other global economic partners may dampen growth and could contribute to economic slowdowns in both the Canadian and global economies. The impact of tariffs may result in loss in consumer confidence impacting economic growth, home values and wealth. Global trade may experience some disruption as countries adopt more protectionist measures, including adjustments to tariffs involving major trading partners. Disruptions to supply chains, increased volatility in foreign exchange rates, and the direct effects of tariffs may contribute to an upward pressure on inflation.

9

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

Management developed ECL estimates using credit risk parameter term structure forecasts sensitized to individual baseline, upside and downside forecast macroeconomic scenarios, each weighted at 100%, and subsequently computed the variance of each to the Bank’s reported ECL as at April 30, 2025 in order to assess the alignment of the Bank’s reported ECL with the Bank’s credit risk profile, and further, to assess the scope, depth and ultimate effectiveness of the credit risk mitigation strategies that the Bank has applied to its lending portfolios (see Expected Credit Loss Sensitivity below).

Expected credit loss sensitivity:

The following table presents the sensitivity of the Bank’s estimated ECL to a range of individual macroeconomic scenarios, that in isolation may not reflect the Bank’s actual expected ECL exposure, as well as the variance of each to the Bank’s reported ECL as at April 30, 2025:

(thousands of Canadian dollars)
	Reported		100%			100%			100%
	ECL		Upside			Baseline			Downside
Allowance for expected credit losses	$	4,958	$	4,349		$	4,549		$	5,184
Provision (recovery) from reported ECL				(609	)		(409	)		226
Variance from reported ECL (%)				(12%	)		(8%	)		5	%

10

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

The following table provides a reconciliation of the Bank’s ECL allowance by lending asset category for the three months ended April 30, 2025:

(thousands of Canadian dollars)	Stage 1			Stage 2			Stage 3			Total
Receivable purchase program
Balance at beginning of period	$	1,911		$	4		$	56		$	1,971
Transfer in (out) to Stage 1		-			-			-			-
Transfer in (out) to Stage 2		-			-			-			-
Transfer in (out) to Stage 3		-			-			-			-
Net remeasurement of loss allowance		449			607			(27	)		1,029
Credit asset originations		-			-			-			-
Derecognitions and maturities		-			-			-			-
Provision for (recovery of) credit losses		449			607			(27	)		1,029
Write-offs		-			-			-			-
Recoveries		-			-			-			-
Balance at end of period	$	2,360		$	611		$	29		$	3,000
Multi-family residential loans and other
Balance at beginning of period	$	1,772		$	488		$	2		$	2,262
Transfer in (out) to Stage 1		(200	)		200			-			-
Transfer in (out) to Stage 2		155			(155	)		-			-
Transfer in (out) to Stage 3		1			(43	)		42			-
Net remeasurement of loss allowance		(165	)		87			(43	)		(121	)
Credit asset originations		-			-			-			-
Derecognitions and maturities		(3	)		(16	)		-			(19	)
Provision for (recovery of) credit losses		(212	)		73			(1	)		(140	)
Write-offs		(135	)		-			-			(135	)
Recoveries		-			-			-			-
FX Impact		(25	)		(4	)		-			(29	)
Balance at end of period	$	1,400		$	557		$	1		$	1,958
Total balance at end of period	$	3,760		$	1,168		$	30		$	4,958

11

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

The following table provides a reconciliation of the Bank’s ECL allowance by lending asset category for the three months ended April 30, 2024:

(thousands of Canadian dollars)	Stage 1			Stage 2			Stage 3		Total
Receivable purchase program
Balance at beginning of period	$	65		$	-		$	-	$	65
Transfer in (out) to Stage 1		-			-			-		-
Transfer in (out) to Stage 2		-			-			-		-
Transfer in (out) to Stage 3		-			-			-		-
Net remeasurement of loss allowance		142			-			-		142
Credit asset originations		-			-			-		-
Derecognitions and maturities		-			-			-		-
Provision for (recovery of) credit losses		142			-			-		142
Write-offs		-			-			-		-
Recoveries		-			-			-		-
Balance at end of period	$	207		$	-		$	-	$	207
Multi-family residential loans and other
Balance at beginning of period	$	1,845		$	476		$	-	$	2,321
Transfer in (out) to Stage 1		110			(110	)		-		-
Transfer in (out) to Stage 2		(53	)		53			-		-
Transfer in (out) to Stage 3		-			-			-		-
Net remeasurement of loss allowance		(32	)		(84	)		-		(116	)
Credit asset originations		24			-			-		24
Derecognitions and maturities		(8	)		(26	)		-		(34	)
Provision for (recovery of) credit losses		41			(167	)		-		(126	)
Write-offs		-			-			-		-
Recoveries		-			-			-		-
FX Impact		-			-			-		-
Balance at end of period	$	1,886		$	309		$	-	$	2,195
Total balance at end of period	$	2,093		$	309		$	-	$	2,402

12

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

The following table provides a reconciliation of the Bank’s ECL allowance by lending asset category for the six months ended April 30, 2025:

(thousands of Canadian dollars)	Stage 1			Stage 2			Stage 3			Total
Receivable purchase program
Balance at beginning of period	$	783		$	-		$	-		$	783
Transfer in (out) to Stage 1		-			-			-			-
Transfer in (out) to Stage 2		-			-			-			-
Transfer in (out) to Stage 3		-			-			-			-
Net remeasurement of loss allowance		1,577			611			29			2,217
Credit asset originations		-			-			-			-
Derecognitions and maturities		-			-			-			-
Provision for (recovery of) credit losses		1,577			611			29			2,217
Write-offs		-			-			-			-
Recoveries		-			-			-			-
Balance at end of period	$	2,360		$	611		$	29		$	3,000
Multi-family residential loans and other
Balance at beginning of period	$	2,213		$	306		$	1		$	2,520
Transfer in (out) to Stage 1		(397	)		397			-			-
Transfer in (out) to Stage 2		146			(146	)		-			-
Transfer in (out) to Stage 3		-			(43	)		43			-
Net remeasurement of loss allowance		(337	)		95			(43	)		(285	)
Credit asset originations		40			(29	)		-			11
Derecognitions and maturities		(14	)		(16	)		-			(30	)
Provision for (recovery of) credit losses		(562	)		258			-			(304	)
Write-offs		(259	)		-			-			(259	)
Recoveries		-			-			-			-
FX Impact		8			(7	)		-			1
Balance at end of period	$	1,400		$	557		$	1		$	1,958
Total balance at end of period	$	3,760		$	1,168		$	30		$	4,958

13

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

The following table provides a reconciliation of the Bank’s ECL allowance by lending asset category for the six months ended April 30, 2024:

(thousands of Canadian dollars)	Stage 1			Stage 2			Stage 3		Total
Receivable purchase program
Balance at beginning of period	$	100		$	-		$	-	$	100
Transfer in (out) to Stage 1		56			(56	)		-		-
Transfer in (out) to Stage 2		(124	)		124			-		-
Transfer in (out) to Stage 3		-			-			-		-
Net remeasurement of loss allowance		175			(68	)		-		107
Credit asset originations		-			-			-		-
Derecognitions and maturities		-			-			-		-
Provision for (recovery of) credit losses		107			-			-		107
Write-offs		-			-			-		-
Recoveries		-			-			-		-
Balance at end of period	$	207		$	-		$	-	$	207
Multi-family residential loans and other
Balance at beginning of period	$	1,845		$	568		$	-	$	2,413
Transfer in (out) to Stage 1		250			(250	)		-		-
Transfer in (out) to Stage 2		(162	)		162			-		-
Transfer in (out) to Stage 3		-			-			-		-
Net remeasurement of loss allowance		(51	)		(128	)		-		(179	)
Credit asset originations		101			-			-		101
Derecognitions and maturities		(97	)		(43	)		-		(140	)
Provision for (recovery of) credit losses		41			(259	)		-		(218	)
Write-offs		-			-			-		-
Recoveries		-			-			-		-
FX Impact		-			-			-		-
Balance at end of period	$	1,886		$	309		$	-	$	2,195
Total balance at end of period	$	2,093		$	309		$	-	$	2,402

Credit quality:

The Bank assigns a risk rating to each credit asset comprising its credit asset portfolio. A risk rating is assigned as a function of each new credit application, annual review or an amendment to a facility. The risk rating considers the credit risk attributes of the credit asset, structure, individual borrower circumstances as well as local, regional and global macroeconomic and market conditions. The Bank aggregates its risk rating assignments into the following three broad categories:

i)    Satisfactory – The borrower and credit asset valuation are of acceptable credit quality.

ii)   Watchlist – The borrower or the credit asset valuation exhibits potential credit weakness or a downward trend which, if not mitigated, will potentially weaken the Bank’s position. The credit asset requires close supervision.

iii)  Classified – The collection of the structural payment and/or the full repayment of the credit asset is uncertain.

14

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

As of April 30, 2025, 98% ( October 31, 2024 – 96%) of the Bank’s credit assets were categorized Satisfactory. There was no material change in the Bank’s processes for managing credit risk during the current quarter.

6. Other assets:

(thousands of Canadian dollars)
	April 30		October 31		April 30
	2025		2024		2024
Accounts receivable	$	8,202	$	10,718	$	5,921
Prepaid expenses and other		16,822		14,399		21,173
Right-of-use assets		2,791		2,734		3,081
Deferred income tax asset		1,526		750		2,585
Derivative instruments (note 12)		198		20		1,052
Investment (note 6a)		953		953		953
	$	30,492	$	29,574	$	34,765

a) In February 2021, the Bank acquired an 11% investment in Canada Stablecorp Inc. for cash consideration of $953,000. The Bank has made an irrevocable election to designate this investment at fair value through other comprehensive income at initial recognition and any future changes in the fair value of the investment will be recognized in other comprehensive income (loss). Amounts recorded in other comprehensive income (loss) will not be reclassified to profit and loss at a later date.

7. Subordinated notes payable:

(thousands of Canadian dollars)
	April 30		October 31		April 30
	2025		2024		2024
Issued April 2021, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of US $75.0 million, fixed effective interest rate of 5.38%, maturing May 2031. The fixed rate applies only until May 1, 2026, at which point the obligation switches to floating rate and the notes are redeemable by the Bank, subject to regulatory approval.	$	101,844	$	102,503	$	101,108
	$	101,844	$	102,503	$	101,108

15

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

8. Other liabilities:

(thousands of Canadian dollars)
	April 30		October 31		April 30
	2025		2024		2024
Accounts payable and other	$	7,397	$	10,752	$	20,816
Current income tax liability		1,985		893		4,102
Deferred income tax liability		96		141		355
Derivative instruments (note 12)		381		-		-
Lease obligations		3,070		3,035		3,414
Cash collateral and amounts held in escrow		5,991		6,076		6,751
Cash reserves on receivable purchase program receivables		192,878		171,208		158,176
	$	211,798	$	192,105	$	193,614

9. Share capital:

a) Common shares:

At April 30, 2025, there were 32,518,786 ( October 31, 2024 - 26,002,577) common shares outstanding.

On December 18, 2024, the Bank completed a treasury offering of 5,660,378 common shares at a price of USD $13.25 per share, the equivalent of CAD $18.95 per share, for gross proceeds of USD $75.0 million. On December 24, 2024, the underwriters of the aforementioned offering exercised their full over-allotment option to purchase an additional 849,056 shares (15% of the 5,660,378 common shares issued via the base offering referenced above) at a price of USD $13.25 per share, or CAD $19.07 per share, for gross proceeds of USD $11.2 million.  Total net cash proceeds from the common share offering were CAD $116.0 million. The Bank’s share capital increased by CAD $114.2 million corresponding to the Common Share Offering and less tax effected issue costs in the amount of CAD $1.8 million.

On April 28, 2025, the Bank received approval from the Toronto Stock Exchange ("TSX") to proceed with a Normal Course Issuer Bid ("NCIB") for its common shares. Pursuant to the NCIB, VersaBank may purchase for cancellation up to 2,000,000 of its common shares representing approximately 8.99% of its public float. As of April 21, 2025, the public float comprised 22,237,283 common shares and there were 32,518,786 issued and outstanding Common Shares in total. The average daily trading volume ("ADTV") of VersaBank's Common Shares on the TSX for the six months of October 1, 2024 – March 31, 2025 (the "Preceding Six Month Period") was 37,761 shares. Daily purchases under the NCIB will be limited to 25% of the ADTV, which is 9,440 common shares, other than block purchase exceptions. During the Preceding Six-Month Period, 20,321,293 VersaBank common shares were traded on all exchanges. Of that total, 4,720,219 shares were traded on the TSX, and the remaining 15,601,074 shares were traded on other exchanges including the Nasdaq.

The purchases may commence on April 30, 2025, and will terminate on April 29, 2026, or such earlier date as VersaBank may complete its purchases pursuant to the NCIB. The purchases will be made by VersaBank through the facilities of the TSX and the Nasdaq and in accordance with the rules of the TSX or the Nasdaq, as applicable, and the prices that VersaBank will pay for any Common Shares will be the market price of such shares at the time of acquisition. VersaBank will make no purchases of Common Shares other than open market purchases. All shares purchased under the NCIB will be cancelled.

16

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

b) Preferred shares:

On October 31, 2024, the Bank redeemed all of its 1,461,460 outstanding Non-Cumulative Series 1 preferred shares (NVCC) using cash on hand. The amount paid on redemption for each share was $10.00, and in aggregate $14.6 million. Transaction costs, incurred at issuance in the amount of $965,000, were applied against retained earnings.

c) Stock options

Stock option transactions during the three and six month periods ended April 30, 2025, and 2024:

	for the three months ended										for the six months ended
	April 30, 2025					April 30, 2024					April 30, 2025					April 30, 2024
				Weighted					Weighted					Weighted					Weighted
	Number of			average		Number of			average		Number of			average		Number of			average
	options			exercise price		options			exercise price		options			exercise price		options			exercise price
Outstanding, beginning of period		804,494		$	15.90		874,393		$	15.90		819,125		$	15.90		874,393		$	15.90
Granted		-			-		-			-		-			-		-			-
Exercised		-			-		-			-		(6,775	)		15.90		-			-
Forfeited/cancelled		(3,140	)		15.90		(12,600	)		15.90		(10,996	)		15.90		(12,600	)		15.90
Expired		-			-		-			-		-			-		-			-
Outstanding, end of period		801,354		$	15.90		861,793		$	15.90		801,354		$	15.90		861,793		$	15.90

For the three and six month periods ended April 30, 2025, the Bank recognized $nil ( April 30, 2024 - $72,000) and $75,000 ( April 30, 2024 - $204,000) in compensation expense related to the estimated fair value of options granted.

10. Income tax provision:

Income tax provision for the three and six month periods ended April 30, 2025 was $3.2 million ( April 30, 2024 - $4.5 million) and $6.2 million ( April 30, 2024 - $8.7 million). The Bank’s combined statutory federal and provincial income tax rate in Canada is approximately 27% (2024 - 27%). The Bank’s effective rate reflects the statutory rate adjusted for certain items not being taxable or deductible for income tax purposes.

17

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

11. Income per common share:

(thousands of Canadian dollars, except shares outstanding and per share amounts)
	for the three months ended					for the six months ended
	April 30		April 30			April 30		April 30
	2025		2024			2025		2024
Net income	$	8,529	$	11,828		$	16,672	$	24,527
Less: dividends on preferred shares		-		(247	)		-		(494	)
		8,529		11,581			16,672		24,033
Weighted average number of common shares outstanding		32,518,786		25,964,424			30,761,211		25,964,424
Income per common share:	$	0.26	$	0.45		$	0.54	$	0.93

12. Derivative instruments:

At April 30, 2025, the Bank had an outstanding Interest rate swap, applied through a designated hedge which was established for asset liability management purposes to exchange between fixed and floating interest rates with a notional amount totaling $21.1 million ( October 31, 2024 - $22.0 million), of which $21.1 million ( October 31, 2024 - $22.0 million) qualified for hedge accounting. The Bank enters into interest rate swap contracts for its own account exclusively and does not act as an intermediary in this market. As required under the accounting standard relating to hedges, at April 30, 2025, a $381,000 ( October 31, 2024 - $19,000) liability relating to this contract was included in other liabilities and the offsetting amount included in the carrying values of the assets to which they relate. Approved counterparties are limited to major Canadian chartered banks. The carrying amount of the hedged item recognized in the credit assets was $21.8 million.

As of April 30, 2025, the Bank utilizes a foreign exchange forward contract through a designated hedge to mitigate the foreign exchange risk on its net investment in VersaBank USA. This hedging strategy is aimed at minimizing foreign exchange risk related to fluctuations between VersaBank’s functional currency, CAD, and the foreign currency of its net investment, USD. Changes in the fair value of these derivatives, attributable to the effective portion of the hedge, are recognized in other comprehensive income, while the ineffective portion, if any, is recorded in profit or loss. As of April 30, 2025, the outstanding foreign exchange forward contract had a notional value of USD $58.0 million and a fair value of $159,000 (asset), hedging a portion of the USD $98.7 million net investment in VersaBank USA. Since there was no hedge ineffectiveness, there was no impact on profit or loss from this hedge. The hedge was assessed as highly effective, supporting the Bank’s risk management strategy to stabilize the financial impact of foreign exchange movements.

As of April 30, 2025, a designated hedge exists for the remaining USD $40.7 million of the USD $98.7 million net investment in VersaBank USA. This is achieved through the allocation of part of a USD $75.0 million subordinated debt raised by the Bank in April 2021. Both the loan (liability) and the investment (asset) move in equal and opposite directions, with the liability serving as a hedge against rate fluctuations that may affect the valuation of the net investment.

18

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

As of April 30, 2025, the Bank utilized a foreign exchange forward contract to mitigate foreign exchange risk associated with the intercompany loan denominated in USD, resulting from intercompany transfer of assets, which aims to minimize foreign exchange risk related to fluctuations between the Bank’s functional currency, CAD, and the foreign currency denominated loan.  As of April 30, 2025, the outstanding foreign exchange forward contract relating to this intercompany loan had a notional value of USD $12.1 million and a fair value of $38,000 (asset).

13. Commitments and contingencies:

The amount of credit-related commitments represents the maximum amount of additional credit that the Bank could be obligated to extend.

(thousands of Canadian dollars)
	April 30		October 31		April 30
	2025		2024		2024
Credit asset commitments	$	638,708	$	635,433	$	438,177
Letters of credit		55,592		65,671		72,332
	$	694,300	$	701,104	$	510,509

14. Related party transactions:

The Bank’s related parties include members of the Board of Directors and Senior Executive Officers represented as key management personnel and significant minority shareholders. At April 30, 2025, amounts due from these related parties totaled $1.5 million ( October 31, 2024 - $1.5 million) and an amount due from a corporation controlled by key management personnel totaled $5.5 million ( October 31, 2024 - $7.1 million). The interest rates charged on loans and advances to related parties are based on mutually agreed-upon terms. Interest income earned on the above loans for the three and six months ended April 30, 2025, was $39,000 ( April 30, 2024 - $40,000) and $80,000 ( April 30, 2024 - $81,000). As at April 30, 2025, there were no provisions for credit losses associated with loans issued to key management personnel ( October 31, 2024 - $nil), and all loans issued to key management personnel were current.

19

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

15. Capital management:

a) Overview:

The Bank’s policy is to maintain a strong capital base so as to retain investor, creditor and market confidence as well as to support the future growth and development of the business. The impact of the level of capital held on shareholders’ return is an important consideration, and the Bank recognizes the need to maintain a balance between the higher returns that may be possible with greater leverage and the advantages and security that may be afforded by a more robust capital position.

Capital is managed in accordance with policies and plans that are regularly reviewed and approved by the Board of Directors and that take into account, amongst other items, forecasted capital requirements, current and anticipated financial market conditions and any capital ratio targets that are communicated to the Bank by Office of the Superintendent of Financial Institutions (OSFI). Capital is managed in accordance with policies and plans that are regularly reviewed and approved by the Board of Directors and that take into account, amongst other items, forecasted capital requirements and current and anticipated financial market conditions.

The goal is to maintain adequate regulatory capital for the Bank to be considered well capitalized, protect deposits and provide capacity to support organic growth as well as to capitalize on strategic opportunities that do not otherwise require access to the public capital markets, all the while providing a satisfactory return to shareholders. The Bank’s regulatory capital is comprised of share capital, retained earnings and unrealized gains and losses on fair value through other comprehensive income securities (Common Equity Tier 1 capital), preferred shares redeemed in 2024 (Additional Tier 1 capital) and subordinated notes (Tier 2 capital).

The Bank monitors its capital adequacy and related capital ratios on a daily basis and has stipulated policies, which are approved by the Board of Directors, setting internal targets and thresholds for its capital ratios. These capital ratios consist of the leverage ratio and the risk-based capital ratios.

The Bank makes use of the Standardized Approach for credit risk as prescribed by OSFI and, therefore, may include eligible ECL allowance amounts in its Tier 2 capital, up to a maximum of 1.25% of its credit risk-weighted assets calculated under the Standardized Approach.

During the period ended April 30, 2025, there were no material changes in the Bank’s management of capital.

b) Risk-based capital ratios:

The Basel Committee on Banking Supervision has published the Basel III rules on capital adequacy and liquidity (“Basel III”). OSFI requires that all Canadian banks must comply with the Basel III standards on an “all-in” basis for the purpose of determining their risk-based capital ratios. Required minimum regulatory capital ratios are a 7.0% Common Equity Tier 1 capital ratio (“CET1”), an 8.5% Tier 1 capital ratio and a 10.5% Total capital ratio, all of which include a 2.5% capital conservation buffer.

20

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

OSFI also requires banks to measure capital adequacy in accordance with guidelines for determining risk- adjusted capital and risk-weighted assets, including off-balance sheet credit instruments as specified in the Basel III regulations. Based on the deemed credit risk for each type of asset, both on and off-balance sheet assets of the Bank are assigned a weighting ranging from 0% to 400% to determine the Bank’s risk- weighted equivalent assets and its risk-based capital ratios.

The Bank’s risk-based capital ratios are calculated as follows:

(thousands of Canadian dollars)
	April 30			October 31
	2025			2024
Common Equity Tier 1 (CET1) capital
Directly issued qualifying common share capital	$	329,799		$	215,610
Contributed surplus		2,540			2,485
Retained earnings		196,284			181,238
Accumulated other comprehensive income (loss)		(317	)		(130	)
CET1 before regulatory adjustments		528,306			399,203
Regulatory adjustments applied to CET1		(21,084	)		(25,700	)
Common Equity Tier 1 capital	$	507,222		$	373,503
Additional Tier 1 capital
Directly issued qualifying Additional Tier 1 instruments	$	-		$	-
Total Tier 1 capital	$	507,222		$	373,503
Tier 2 capital
Directly issued Tier 2 capital instruments	$	103,590		$	104,370
Tier 2 capital before regulatory adjustments		103,590			104,370
Eligible stage 1 and stage 2 allowance		4,958			3,303
Total Tier 2 capital	$	108,548		$	107,673
Total regulatory capital	$	615,770		$	481,176
Total risk-weighted assets	$	3,551,398		$	3,323,595
Capital ratios
CET1 capital ratio		14.28	%		11.24	%
Tier 1 capital ratio		14.28	%		11.24	%
Total capital ratio		17.34	%		14.48	%

As at April 30, 2025, and October 31, 2024, the Bank maintained capital levels above all of the minimum Basel III regulatory capital requirements prescribed by OSFI.

21

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

c) Leverage ratio:

The leverage ratio, which is prescribed under the Basel III Accord, is a supplementary measure to the risk-based capital requirements and is defined as the ratio of Tier 1 capital to the Bank’s total exposures. The Basel III minimum leverage ratio is 3.0%. The Bank’s leverage ratio is calculated as follows:

(thousands of Canadian dollars)
	April 30			October 31
	2025			2024
On-balance sheet assets	$	5,047,133		$	4,838,484
Assets amounts adjusted in determining the Basel III
Tier 1 capital		(21,084	)		(25,700	)
Total on-balance sheet exposures		5,026,049			4,812,784
Total off-balance sheet exposure at gross notional amount	$	694,300		$	701,104
Adjustments for conversion to credit equivalent amount		(443,374	)		(451,759	)
Total off-balance sheet exposures		250,926			249,345
Tier 1 capital		507,222			373,503
Total exposures		5,276,975			5,062,129
Leverage ratio		9.61	%		7.38	%

As at April 30, 2025, and October 31, 2024, the Bank was in compliance with the leverage ratio prescribed by OSFI.

22

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

16. Interest rate risk position:

The Bank is subject to interest rate risk, which is the risk that a movement in interest rates could negatively impact net interest margin, net interest income and the economic value of assets, liabilities and shareholders’ equity. The following table provides the duration difference between the Bank’s assets and liabilities and the potential after-tax impact of a 100 basis point shift in interest rates on the Bank’s earnings during a 12 month period.

(thousands of Canadian dollars)
	April 30, 2025						October 31, 2024
	Increase 100 bps			Decrease 100 bps			Increase 100 bps			Decrease 100 bps
Increase (decrease):
Impact on projected net interest income during a 12 month period	$	3,326		$	(3,566	)	$	5,223		$	(5,430	)
Duration difference between assets and liabilities (months)		(0.6	)					(1.6	)

23

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

17. Fair value of financial instruments:

Fair values are based on management’s best estimates of market conditions and valuation policies at a certain point in time. The estimates are subjective and involve particular assumptions and judgement and, as such, may not be reflective of future fair values. The Bank’s credit assets and deposits lack an available market as they are not typically exchanged and, therefore, the book value of these instruments is not necessarily representative of amounts realizable upon immediate settlement. See note 21 of October 31, 2024, audited Consolidated Financial Statements for more information on fair values.

(thousands of Canadian dollars)
	April 30, 2025										October 31, 2024
	Carrying Value		Fair value Level 1		Fair Value Level 2		Fair Value Level 3		Total Fair Value		Carrying Value		Fair value Level 1		Fair Value Level 2		Fair Value Level 3		Total Fair Value
Assets
Cash
Amortized cost	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
FVOCI		-		-		-		-		-		-		-		-		-		-
FVTPL		340,186		340,186		-		-		340,186		225,254		225,254		-		-		225,254
Securities
Amortized cost		-		-		-		-		-		-		-		-		-		-
FVOCI		104,807		104,807		-		-		104,807		299,300		299,300		-		-		299,300
FVTPL		-		-		-		-		-		-		-		-		-		-
Credit assets
Amortized cost		4,523,812		-		-		4,492,579		4,492,579		4,236,116		-		-		4,190,523		4,190,523
FVOCI		-		-		-		-		-		-		-		-		-		-
FVTPL		-		-		-		-		-		-		-		-		-		-
Derivative instruments
Amortized cost		-		-		-		-		-		-		-		-		-		-
FVOCI		-		-		-		-		-		-		-		-		-		-
FVTPL		198		-		198		-		198		20		-		20		-		20
Other financial assets
Amortized cost		-		-		-		-		-		-		-		-		-		-
FVOCI		953		-		-		953		953		953		-		-		953		953
FVTPL		-		-		-		-		-		-		-		-		-		-
Liabilities
Deposits
Amortized cost	$	4,205,185	$	-	$	-	$	4,250,906	$	4,250,906	$	4,144,673	$	-	$	-	$	4,182,338	$	4,182,338
FVOCI		-		-		-		-		-		-		-		-		-		-
FVTPL		-		-		-		-		-		-		-		-		-		-
Subordinated notes payable
Amortized cost		101,844		-		98,411		-		98,411		102,503		-		99,152		-		99,152
FVOCI		-		-		-		-		-		-		-		-		-		-
FVTPL		-		-		-		-		-		-		-		-		-		-
Derivative instruments
Amortized cost		-		-		-		-		-		-		-		-		-		-
FVOCI		-		-		-		-		-		-		-		-		-		-
FVTPL		381		-		381		-		381		-		-		-		-		-
Other financial liabilities
Amortized cost		209,336		-		-		209,336		209,336		191,071		-		-		191,071		191,071
FVOCI		-		-		-		-		-		-		-		-		-		-
FVTPL		-		-		-		-		-		-		-		-		-		-

24

VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

18. Operating segmentation:

Effective as of the transfer of Digital Deposit Receipt (“DDR”) technology to an existing, wholly owned subsidiary (DBG Inc.) of DRT Cyber Inc., which was subsequently renamed Digital Meteor, Inc., the Bank has established four reportable operating segments: Digital Banking Canada, Digital Banking USA, DRTC, and Digital Meteor Inc. These four operating segments represent strategic business operations that provide distinct products and services to different markets. They are separately managed due to the differences in the nature of each business. The following summarizes the operations of each of the reportable segments:

Digital Banking Canada - The Bank employs a business-to-business model using its proprietary financial technology to address underserved segments in the Canadian banking market. VersaBank obtains its deposits and provides the majority of its credit assets electronically via innovative deposit and lending solutions for financial intermediaries.

Digital Banking USA - The Bank intends to adopt a business-to-business model, leveraging its proprietary financial technology to address underserved segments of the US banking market. VersaBank USA plans to acquire deposits and deliver the majority of its credit assets electronically through innovative deposit and lending solutions tailored for financial intermediaries.

DRTC (cybersecurity services and banking and financial technology development) - Leveraging its internally developed IT security software and capabilities, VersaBank established a wholly owned subsidiary, DRTC, to pursue significant large-market opportunities in cybersecurity and to develop innovative solutions to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities.

Digital Meteor, Inc. -Through its wholly owned subsidiary, Digital Meteor, Inc. (“Digital Meteor”), VersaBank owns proprietary intellectual property and technology to enable the next generation of digital assets by the banking and financial community, including the Bank’s revolutionary Digital Deposit Receipts (“DDR”s).

The basis for the determination of the reportable segments is a function primarily of the systematic, consistent process employed by the Bank’s chief operating decision maker, the Chief Executive Officer, and the Chief Financial Officer in reviewing and interpreting the operations and performance of each segment. The accounting policies applied to these segments are consistent with those employed in the preparation of the Bank’s Consolidated Financial Statements, as disclosed in note 3 of the Bank’s 2024 audited Consolidated Financial Statements.

Performance is measured based on segment net income, as included in the Bank’s internal management reporting. Management has determined that this measure is the most relevant in evaluating segment results and in the allocation of resources.

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VERSABANK

Notes to Interim Consolidated Financial Statements

(Unaudited)

Three & six month periods ended April 30, 2025, and 2024

The following table sets out the results of each reportable operating segment as at and for the three and six months ended April 30, 2025, and 2024:

(thousands of Canadian dollars)
for the three months ended	April 30, 2025																		April 30, 2024
	Digital Banking		Digital Banking				Digital Meteor			DRTC			Eliminations/			Consolidated		Digital Banking			Digital Meteor			DRTC			Eliminations/			Consolidated
	Canada			USA									Adjustments						Canada								Adjustments
Net interest income	$	25,525		$	2,507		$	-		$	-		$	-		$	28,032		$	26,242	$	-		$	-		$	-		$	26,242
Non-interest income		122			(18	)		569			1,789			(355	)		2,107			262		82			2,254			(339	)		2,259
Total revenue		25,647			2,489			569			1,789			(355	)		30,139			26,504		82			2,254			(339	)		28,501
Provision for (recovery of) credit losses		954			(65	)		-			-			-			889			16		-			-			-			16
		24,693			2,554			569			1,789			(355	)		29,250			26,488		82			2,254			(339	)		28,485
Non-interest expenses:
Salaries and benefits		5,836			1,464			253			1,602			-			9,155			5,724		101			1,584			-			7,409
General and administrative		5,267			800			343			665			(355	)		6,720			3,445		72			379			(339	)		3,557
Premises and equipment		947			104			123			467			-			1,641			845		23			351			-			1,219
		12,050			2,368			719			2,734			(355	)		17,516			10,014		196			2,314			(339	)		12,185
Income (loss) before income taxes		12,643			186			(150	)		(945	)		-			11,734			16,474		(114	)		(60	)		-			16,300
Income tax provision		3,443			53			2			(293	)		-			3,205			4,484		33			(45	)		-			4,472
Net income (loss)	$	9,200		$	133		$	(152	)	$	(652	)	$	-		$	8,529		$	11,990	$	(147	)	$	(15	)	$	-		$	11,828
Total assets	$	4,761,444		$	281,153		$	11,086		$	25,224		$	(31,774	)	$	5,047,133		$	4,378,863	$	3,022		$	24,848		$	(18,413	)	$	4,388,320
Total liabilities	$	4,386,758		$	144,517		$	9,029		$	19,708		$	(41,185	)	$	4,518,827		$	3,982,924	$	1,010		$	28,059		$	(23,776	)	$	3,988,217

(thousands of Canadian dollars)
for the six months ended	April 30, 2025																		April 30, 2024
	Digital Banking		Digital Banking				Digital Meteor			DRTC			Eliminations/			Consolidated		Digital Banking				Digital Meteor		DRTC		Eliminations/			Consolidated
	Canada			USA									Adjustments						Canada							Adjustments
Net interest income	$	49,210		$	4,546		$	-		$	-		$	-		$	53,756		$	52,810		$	-	$	-	$	-		$	52,810
Non-interest income		247			(17	)		911			3,778			(709	)		4,210			382			662		4,174		(676	)		4,542
Total revenue		49,457			4,529			911			3,778			(709	)		57,966			53,192			662		4,174		(676	)		57,352
Provision for (recovery of) credit losses		1,987			(74	)		-			-			-			1,913			(111	)		-		-		-			(111	)
		47,470			4,603			911			3,778			(709	)		56,053			53,303			662		4,174		(676	)		57,463
Non-interest expenses:
Salaries and benefits		11,125			2,628			470			3,546			-			17,769			11,095			245		2,607		-			13,947
General and administrative		9,983			1,397			387			1,151			(709	)		12,209			7,721			122		723		(676	)		7,890
Premises and equipment		1,850			213			171			1,003			-			3,237			1,613			66		693		-			2,372
		22,958			4,238			1,028			5,700			(709	)		33,215			20,429			433		4,023		(676	)		24,209
Income (loss) before income taxes		24,512			365			(117	)		(1,922	)		-			22,838			32,874			229		151		-			33,254
Income tax provision		6,548			129			2			(513	)		-			6,166			8,620			38		69		-			8,727
Net income (loss)	$	17,964		$	236		$	(119	)	$	(1,409	)	$	-		$	16,672		$	24,254		$	191	$	82	$	-		$	24,527
Total assets	$	4,761,444		$	281,153		$	11,086		$	25,224		$	(31,774	)	$	5,047,133		$	4,378,863		$	3,022	$	24,848	$	(18,413	)	$	4,388,320
Total liabilities	$	4,386,758		$	144,517		$	9,029		$	19,708		$	(41,185	)	$	4,518,827		$	3,982,924		$	1,010	$	28,059	$	(23,776	)	$	3,988,217

Prior to the year ended October 31, 2024, substantially all Digital Banking’s operations were based in Canada.

19. Comparative balances:

Certain comparative balances have been reclassified to conform with the financial statement presentation adopted in the current period.

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