Joint letter from SaskCentral, Equitable Bank and Wyth Financial CEOs

On February 7, 2022 Wyth Financial’s majority owner, SaskCentral, announced that it has reached an agreement for Equitable Bank (“Equitable”) to become the new owner of Wyth Financial and Wyth Trust. Below is a joint letter to stakeholders from the CEOs of SaskCentral, Equitable Bank and Wyth Financial.

To our valued stakeholders:

We are writing to share the exciting news that SaskCentral, our majority owner, has reached an agreement by which Equitable Bank will become the new owner of Wyth Financial and Wyth Trust.

This agreement will be formalized in the months to come, pending regulatory approvals. In the meantime, Wyth remains part of SaskCentral, and will be focused on serving all stakeholders on a business-as-usual basis. We’re committed to letting you know more as we know more.

This is an important development for our customers, community partners and shareholders. As such, we’re pleased to explain the motivation for the transaction and the reasons this change will empower us to grow and serve you in new ways.

Why Equitable Bank

Known as Canada’s Challenger Bank™ because of its mission to drive change in Canadian banking to enrich people’s lives, Equitable prioritizes the customer experience with a focus on winning with service, innovative products, partnerships and creating a no-nonsense approach to banking.

Equitable Bank (“Equitable”) is a wholly owned subsidiary of Equitable Group Inc. (TSX: EQB and EQB.PR.C) and has grown to become the country’s eighth largest publicly traded Canadian bank measured by market capitalization.

With more than $42 billion in assets under management, Equitable serves more than 325,000 customers nationwide across its diversified Personal Banking and Commercial Banking business lines.

Like Wyth, Equitable is a member of the Canada Deposit Insurance Corporation, its prudential regulator is the Office of the Superintendent of Financial Institutions, and it is a branchless bank that enjoys deep and trusted relationships with retail and commercial customers and partners including other financial institutions, independent mortgage brokers, and Fintech innovators.

Of great significance, Equitable shares Wyth’s corporate values including the co-operative principle of community building. Equitable is also an ESG leader among Canadian banks and is recognized as a top 50 organization on the 2021 Best Workplaces™ in Canada list. In joining Equitable, our combined organization will have the scale, expertise and technology to deliver great service and value to customers.

Through this transaction, SaskCentral is purposely passing the torch to a committed steward that will build on Concentra’s legacy of customer service with impressive capabilities, talent and technology. In every respect, Equitable is well suited to be your banking partner.

Equitable Bank’s Commitments

Credit Unions: Equitable believes the credit union system is vital to the delivery of financial services to Canadians and, as Canada’s Challenger BankTM, Equitable’s culture is aligned with the co-operative spirit of the credit union movement. Accordingly, Equitable will maintain and grow Wyth’s services to our credit union customers—including in the areas of Trust and treasury, residential mortgage pool sales, mortgage securitization, origination and syndication, reverse mortgages, as well as prime commercial lending and equipment financing. Equitable is strong where we are strong, with proven experience in lending, leasing and deposit-taking. Equitable will establish a credit union-centric advisory board to explore opportunities for mutually beneficial growth.

Origination Partners: Like Wyth, Equitable purchases loans from other lenders. We will continue this practice and engage on an institution-by-institution basis to align interests and funding.

Fintech Partners: Equitable and Wyth both partner with financial technology companies to develop best-in-class services and prepare for future opportunities arising from the planned introduction of real-time payments and open banking in Canada. Equitable has used this partnership approach to good effect in serving customers through its EQ Bank digital platform, which was named Canada’s #1 bank in the Forbes 2021 World’s Best Banks competition. Pairing Wyth’s digital banking and Fintech strategy with EQ Bank will ensure Canadians receive the very best digital services and innovations.

Wyth Financial’s Commitments

As noted, it will take several months to complete Equitable’s purchase of Wyth Financial and Wyth Trust. Until then, Wyth and Equitable will operate as two separate banks. Wyth’s commitment during this time is to maintain excellent service for all customers and engage and support its partners.

An Exciting Future

By adding Wyth, Equitable will become Canada’s 7th largest bank by assets, and be better able to fulfill its Challenger Bank purpose of enriching people’s lives.

Yours sincerely,

Andrew Moor
President and CEO
Equitable Bank
Don Coulter
President and CEO
Wyth Financial
Shawn Good
CEO
SaskCentral