Mr. Chadwick Westlake reports

EQUITABLE BANK ANNOUNCES AGREEMENT FOR THE SALE OF BENNINGTON FINANCIAL CORP.

Equitable Bank, held by EQB Inc., has entered into a definitive agreement with Desjardins Group for the sale of Bennington Financial Corp., provider of commercial equipment leasing and financing.

The transaction reinforces EQB's focus on high-growth opportunities with strong strategic fit and attractive long-term returns.

"At EQB, we're focused on doing more of what we do best and investing where we see the greatest opportunity to win," said Chadwick Westlake, president and chief executive officer, EQB. "This transaction allows us to further concentrate our capital and resources on our core growth priorities, particularly following our PC Financial transaction. It also positions Bennington with an owner that is equipped to grow the business to its full potential with expertise in the sector. Consistent with other businesses and product exits over the past year, this move strengthens our ability to create value for customers and shareholders over the long term."

Bennington is a leader in the Canadian equipment leasing industry, relying on a network of brokers. As at July 31, 2026, its aggregate portfolio included approximately $1.1-billion in lease receivables. Contribution to earnings for the trailing 12 months ended July 31, 2026, was not material.

"Bennington's specialized expertise in commercial equipment leasing and financing makes it a strong strategic fit for Desjardins," said Denis Dubois, president and CEO, Desjardins Group. "This transaction brings capabilities that complement our existing business financing offering and support our growth ambitions across Canada, while providing a strong foundation for Bennington to continue building on its established business, expertise and relationships."

Under the terms of the agreement, Desjardins will acquire 100 per cent of the shares of Bennington at a price equivalent to a discount of approximately 8 per cent of lease receivables. For accounting purposes, the business will be classified as held for sale and EQB expects to record a net after-tax charge in the fourth quarter of 2026, which will be treated as an adjusting item. Upon closing, the transaction is expected to be relatively neutral to Equitable Bank's common equity Tier 1 (CET1) ratio.

The transaction is expected to close in the first half of 2027, subject to customary closing conditions. EQB and Desjardins will work together to ensure a smooth transition. In connection with the transaction, National Bank Capital Markets is acting as financial adviser and McCarthy Tetrault LLP is acting as legal adviser to EQB. Norton Rose Fulbright Canada LLP is acting as legal adviser to Desjardins and Desjardins Capital Markets is acting as financial adviser to Desjardins.

About EQB Inc.

EQB is a leading Canadian financial services company with approximately $151-billion in combined assets under management and administration. It is the parent company of Equitable Bank, the country's seventh-largest Schedule I bank by assets, which operates EQ Bank, Canada's Challenger Bank.

EQB's purpose is to remake banking so every Canadian gets ahead, every day. Since 1970, EQB has built thoughtful financial solutions that serve more than four million customers, turning everyday moments into meaningful progress. As the exclusive financial partner of Loblaw Companies Ltd.'s PC Optimum loyalty program -- one of Canada's largest loyalty programs with more than 18 million members -- EQ Bank's financial solutions are deeply embedded into the daily lives of Canadians.

EQB provides personal and commercial banking services to Canadian households and businesses through everyday banking, tailored lending and connected payments, while fuelling competition and choice in Canadian banking. Through its subsidiaries, EQB also offers home and auto insurance, estate and trust services, credit union solutions, and alternative asset management.

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