Equitable Bank Agrees to Sell Bennington Financial to Desjardins

Equitable Bank, held by EQB Inc. (EQB.TO ), announced on October 29, 2026 that it has entered into a definitive agreement to sell Bennington Financial Corp., a provider of commercial equipment leasing and financing, to Desjardins Group. Under the terms of the agreement, Desjardins will acquire 100% of Bennington’s shares at a price equivalent to a discount of approximately 8% of lease receivables, according to the bank’s announcement.

Bennington serves the Canadian equipment leasing industry through a network of brokers. As at July 31, 2026, its aggregate portfolio included approximately 1.1 billion Canadian dollars in lease receivables. EQB stated that Bennington’s contribution to earnings for the trailing 12 months ended July 31, 2026 was not material.

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 that will be treated as an adjusting item. The company stated the transaction is expected to be relatively neutral to Equitable Bank’s common equity Tier 1 (CET1) ratio upon closing.

EQB stated the transaction is expected to close in the first half of 2027, subject to customary closing conditions, and that the two organizations will work together to ensure a smooth transition. In its own announcement, Desjardins stated the transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the first quarter of 2027.

“This transaction allows us to further concentrate our capital and resources on our core growth priorities, particularly following our PC Financial transaction,” said Chadwick Westlake, president and CEO of EQB. Westlake said the sale positions Bennington with an owner equipped to grow the business to its full potential with expertise in the sector, and that the move is consistent with other business and product exits over the past year.

“This acquisition reflects our ambition to grow across Canada and become the preferred banking partner for businesses,” said Denis Dubois, president and CEO of Desjardins Group.

Desjardins described Bennington as a leading independent broker-focused equipment financing provider in Canada with approximately $1.1 billion in assets, a national presence and deep expertise in commercial equipment leasing and financing. Desjardins stated that the acquired capabilities will complement its existing business financing offering and that the acquisition will strengthen its ability to support sectors including manufacturing, agriculture, agri-food, construction and healthcare with a broader range of financing solutions.

Following the transaction, Bennington will continue to operate as a standalone business, Desjardins stated, with employees, clients and broker partners retaining the specialized knowledge, service model and relationships behind the company. Ashley Yantzi, president and CEO of Bennington, said the company sees an opportunity to build on the foundation and support from EQB, and that Desjardins’ scale and long-term commitment to the sector will position it to invest in more innovative financing solutions. Desjardins stated the acquisition follows a series of strategic transactions, most recently its acquisition of Guardian Capital Group Limited, which was completed in March 2026.

EQB’s Recent Portfolio Moves

The divestiture follows a series of changes to EQB’s business mix over the past year. EQB completed its acquisition of PC Financial on July 1, 2026, issuing 7.2 million common shares in connection with the closing and becoming the exclusive financial partner of Loblaw Companies Limited (L.TO ) and its PC Optimum loyalty program, a transaction the company said elevated its assets under management and administration to $151 billion.

In its third-quarter 2026 results, released on August 26, 2026, EQB reported adjusted diluted earnings per share of $2.12 and a reported net loss of $127.259 million for the three months ended July 31, 2026. The reported result included $219.06 million of initial provisions for credit losses associated with acquired PC Financial credit cards, treated as an adjusting item. EQB reported a CET1 ratio of 13.4% and a total capital ratio of 16.6% as at July 31, 2026.

In the same release, EQB disclosed that it exited its Merchant Payments business in the second quarter of 2026 and exited a strategic investment during the third quarter of 2026, describing both as not core to its growth strategy and as contributing minimally to earnings and return on equity.

Bennington’s History Under Equitable Bank

Equitable Group Inc. completed its previously announced acquisition of Bennington Financial Services Corp. on January 1, 2019, announcing the completion the following day. Equitable at the time described Bennington as a profitable and growing privately owned company serving the brokered equipment leasing market in Canada, and said the acquisition provided diversification into an adjacent market that complemented its other secured lending businesses and broker-led distribution model. Equitable Group said it would report results on a consolidated basis beginning in the first quarter of 2019.

In a December 18, 2024 announcement, Bennington named Ashley Yantzi president and CEO following the retirement of Troy Campbell. Equitable Bank at that time described Bennington as Canada’s largest broker-focused equipment lessor. Yantzi joined Bennington after seven years with Equitable Bank, where he served as vice president of credit risk and as vice president and head of residential lending, following earlier roles at TD Bank and GE Capital.

National Bank (NBHC ) Capital Markets is acting as financial advisor to EQB, and McCarthy Tétrault LLP is acting as legal advisor to EQB. Norton Rose Fulbright Canada LLP is acting as legal advisor to Desjardins, and Desjardins Capital Markets is acting as financial advisor to Desjardins.