Toronto, Ontario, May 14, 2013 – Equity Financial Holdings Inc. (TSX: EQI) (“EQI” or “the Corporation”), a Canadian financial services company serving the alternative retail mortgage market, reported today its interim financial results for the three months ended March 31, 2013.

Financial Highlights (all dollar amounts, except per-share, are in $000s unless otherwise stated)^[1]

[1] As a result of the Transaction noted below we have also reported on the operating results of continuing and discontinued operations. Please refer to our 2012 Audited Financial Statements and MD&A for additional details.
[2] Return on equity (net earnings divided by the simple average of reported shareholders’ equity at the beginning and end of the period) does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. However, we believe financial analysts and investors view these as key measures of certain aspects of our performance. They use return on equity as a key indicator of whether we use our capital resources efficiently. This measure should not be considered as an alternative to cash flows from operating activities nor to any other measures of performance presented in accordance with IFRS.
_______________________

On April 5, 2013 we completed the previously announced sale of the assets of our transfer agent and corporate trust services business, including corporate trust foreign exchange services, to an affiliate of the TMX Group Inc. for cash consideration of $64,000 received at closing, subject to post closing adjustments (the “Transaction”). Our wholly-owned subsidiary Equity Financial Trust Company (“EFT”) will use the majority of the net proceeds from the Transaction to significantly increase our regulatory capital base to a level that is expected to provide support for the expansion of our mortgage loan portfolio over the coming years.
As a result of the Transaction and the parallel wind-down of our foreign exchange operations the Corporation is now focused solely on our mortgage lending and deposit taking business segment. Our previously reported transfer agent and corporate trust segment and our foreign exchange segment are now classified as discontinued operations (see note 16 of our interim consolidated financial statements).
We originated $39,531 of new mortgage loans during the first quarter of 2013 (an increase of 75% from 2012) and as at March 31, 2013 we had estimated commitments to make future advances on mortgage loans of $22,500. We ended the first quarter with mortgage loans outstanding of $226,876, representing an increase of 14% compared to December 31, 2012 and an increase of 115% compared to March 31, 2012. We remain confident in our expectation that compared to the balance at the end of 2012 our mortgage portfolio will be approximately double in size by the end of 2013. We maintained a net interest margin of 3.21% compared to 3.22% for the comparable period last year, which is above our long run expectation of approximately 3.0%.
As a result of the increase in our mortgage portfolio, the total of net interest income and other revenue contributed by our mortgage unit increased by 117% year over year.
Although revenue increased compared to the prior year we have reported a net loss from our continuing mortgage operations of $388 for the three months ended March 31, 2013, compared to a net loss of $664 for the comparable period in 2012. This represents a change in presentation as we had previously reported net earnings of $118 from our mortgage segment for the first quarter of 2012. The change in net earnings presented reflects approximately $1,000 of corporate overhead costs previously assigned to the transfer agent and corporate trust segment and the foreign exchange segment that have now been reallocated to our continuing mortgage operation. These overhead costs include executive management, administration and risk and control functions which provide the foundational infrastructure to support our strategy to grow our mortgage operation.
Our discontinued transfer agent and corporate trust and foreign exchange operations contributed a net loss of $638 for the three months ended March 31, 2013 compared to net earnings of $710 for the comparable period in 2012. The results of our discontinued operations include before tax costs of $1,149 incurred in connection with the Transaction during the first quarter of 2013. These non-recurring costs were primarily for investment banking, legal and other advisory services. Also during the first quarter of 2013 we incurred before tax costs of $500 in connection with the wind-down of our foreign exchange business.
In total we experienced a net loss of $1,026 for the three months ended March 31, 2013 compared to net earnings of $46 for the comparable period in 2012. We had a net loss per share of $0.11 for the three months ended March 31, 2013 compared to net earnings per share of $0.01 for the comparable period in 2012. Despite the fact it is now absorbing overhead costs previously allocated between three operating segments we anticipate our continuing mortgage business segment to be modestly profitable in 2013. As well, a gain on sale from the Transaction will be recognized in the second quarter.

Equity Financial Holdings President & CEO Paul G. Smith said,
“The sale of our transfer agent and corporate trust services business is important for us as it positions us to focus exclusively on our growing mortgage and deposit-taking business, thereby clarifying our strategic direction and value proposition to our investors. Management believes the most attractive opportunities are available to us under our mortgage and deposit-taking business and realizing on the inherent value of our transfer agent and corporate trust business allows us to allocate our resources accordingly.”

Equity Financial Trust CEO Nick Kyprianou said,
“We started the year by originating $39,531 of new mortgage loans during the first quarter and ended with mortgage loans outstanding of $226,876. We remain confident in our expectation that compared to the balance at the end of 2012 our mortgage portfolio will be approximately double in size by the end of 2013.”

Interim Consolidated Financial Statements and Management’s Discussion and Analysis for the first quarter and fiscal period ended March 31, 2013 can be found on SEDAR at www.sedar.com and on Equity’s website at www.equityfinancialholdings.com.

Annual Conference Call

EQI will hold a conference call on May 15, 2013 at 9:00 AM Eastern Time to discuss its operating results and to answer questions. Participants can dial 416-340-2218 or toll free 866-226-1792.

About Equity Financial Holdings Inc.

Equity is a Canadian financial services company serving the alternative retail mortgage market through its federally regulated and wholly-owned subsidiary, Equity Financial Trust Company. Learn more at www.equityfinancialholdings.com.

Advisory notes:

Certain portions of this press release as well as other public statements by Equity Financial Holdings Inc. (the “Corporation”) contain “forward-looking information” within the meaning of applicable Canadian securities legislation, which is also referred to as “forward-looking statements”, which may not be based on historical fact. Wherever possible, words such as “will”, “plans,” “expects,” “targets,” “continue”, “estimates,” “scheduled,” “anticipates,” “believes,” “intends,” “may,” and similar expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information. Such forward-looking statements include, without limitation, those relating to the anticipated timing and completion of the proposed sale transaction and the Corporation’s ability to receive all necessary approvals related thereto, the expected effect of the completion of the proposed sale transaction on the Corporation, its business, operations and financial results, the Corporation’s expected need for regulatory capital and equity or debt financing, the expected timing of the Corporation’s previously announced wind-down of its day-to-day retail foreign exchange operations and its expected impact on the Corporation’s business, operations and financial results, the Corporation’s earnings expectations, fee income, expense levels, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets activities, business competition, technological change, changes in government regulations and regulatory guidelines, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation’s ability to complete strategic transactions and integrate acquisitions and other factors.

All material assumptions used in making forward-looking statements are based on management’s knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting the Corporation and the Canadian economy, retail mortgage markets, housing sales, and equity and capital market, as well as those assumptions relating to the completion of the proposed sale transaction and receipt of required approvals in connection therewith and those assumptions relating to the Corporation’s ability to implement and realize on its new strategic focus, assumptions relating to the Corporation’s ability to wind-down its day-to-day retail foreign exchange operations and the expected impact on the Corporation’s business, operations and financial results, and assumptions relating to the Corporation’s capital and debt or equity financing requirements. Certain material factors or assumptions are applied by the Corporation in making forward-looking statements, including without limitation, the Corporation’s ability to successfully close the proposed sale transaction and successfully implement and realize on its new strategic focus, factors and assumptions regarding interest and foreign exchange rates, availability of key personnel, the effect of competition, government regulation of its business, computer failure or security breaches, future capital requirements, its ability to fund its mortgage business, the value of mortgage originations, the competitive nature of the alternative mortgage market, the expected margin between the interest earned on its mortgage portfolio and the interest to be paid on its deposits, the relative continued health of real estate markets, acceptance of its products in the marketplace, as well as its operating cost structure and the current tax regime.



Forward-looking statements reflect the Corporation’s current views with respect to future events and are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Readers should not place undue reliance on such forward-looking statements, as they reflect the Corporation’s current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic, regulatory, competitive, political and social uncertainties and contingencies.


Many factors could cause the Corporation’s actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including among others, a failure to successfully close the proposed sale transaction, failure by the corporation to implement or realize on its new strategic focus, a significant downturn in capital markets or the economy as a whole, delays in completing the wind-down of the Corporation’s day-to-day retail foreign exchange operations or other unforeseen circumstances arising from such wind-down, reduced large-volume foreign exchange revenue which could lead to an impairment of goodwill in our foreign exchange unit, errors or omissions by the Corporation in providing services to its customers, significant changes in foreign currency exchange rates, extreme price and volume fluctuations in the stock markets, significant increases in the cost of complying with applicable regulatory requirements, civil unrest, economic recession, pandemics, war and acts of terrorism which may adversely impact the North American and global economic and financial markets, inability to raise funds through public or private financing in the event that the Corporation incurs operating losses or requires substantial capital investment in order to respond to unexpected competitive pressures, significant changes in interest rates, failure by Equity Financial Trust Company (“EFT”) to meet ongoing regulatory requirements, the failure of borrowers or counterparties to honour their financial or contractual obligations to EFT, failure by the Corporation to generate or obtain sufficient cash or cash equivalents in a timely manner and at a reasonable price or to meet its commitments as they become due, failure by EFT to adequately monitor and/or adjust its mortgage portfolio management practices for changing circumstances, failure by the Corporation to attract and to retain the necessary employees to meet its needs, failure by EFT to adequately monitor the services provided by third party service providers or to establish alternative arrangements if required, failure by EFT to secure sufficient deposits from securities dealers or a sufficient level of mortgage origination from its mortgage broker network, a failure of the computer systems of the Corporation or one or more of its service providers or the risks detailed from time-to-time in the Corporation’s quarterly filings, annual information forms, annual reports and annual filings with securities regulators. The Corporation disclaims any intent or obligation to update or revise publicly any forward-looking statements whether as a result of new information, estimates, future events or results, or otherwise, unless required to do so by applicable laws.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
Equity Financial Holdings Inc.
Paul G. Smith
President & CEO
(416) 361-0930 Ext 270
www.equityfinancialholdings.com

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

The business, which will be named TMX Equity Transfer Services, is now part of the portfolio of services provided by TMX Group to companies listed on Toronto Stock Exchange and TSX Venture Exchange. These services also include investor relations, design services, shareholder data and tracking, and market analytics.

The closing was completed as per the terms announced on February 13, 2013.

Market Open Celebration

Executives from TMX Group and TMX Equity Transfer Services will open trading on Toronto Stock Exchange on Monday, April 8, 2013 to celebrate the closing of the transaction.

Read the press release

Toronto – April 5, 2013 – Equity Financial Holdings Inc. (TSX: EQI), a Canadian financial services company serving the alternative retail mortgage market, today announced the closing of the previously announced sale of its transfer agent and corporate trust business to the TMX Group. Equity shareholders approved the sale at the Annual and Special Meeting of Shareholders on April 2, 2013.

“This is a very exciting time for Equity,” said Equity President & CEO, Paul G. Smith. “The sale of the transfer agent and corporate trust business provides us with the necessary capital to focus our strategy and invest in our rapidly growing retail mortgage lending and deposit-taking business. By harnessing the growth potential of the alternative retail mortgage market, we believe we will be able to generate significant value over the coming years.”

Under the terms of the transaction agreement, announced on February 13, 2013, TMX Group acquired Equity’s transfer agent and corporate trust business for $64 million payable in cash at closing, subject to certain closing price adjustments.

About Equity Financial Holdings Inc.
Equity is a Canadian financial services company serving the alternative retail mortgage market through its federally regulated and wholly-owned subsidiary, Equity Financial Trust Company. Learn more at www.equityfinancialholdings.com

For more information
Investor contact:
Equity Financial Holdings Inc.
Paul G. Smith, President & CEO
(416) 361-0930 Ext.270
Equity Financial Trust Company
Nick Kyprianou, CEO
(416) 361-0930 Ext.290

Media contact:
NATIONAL Public Relations
Peter Block
pblock@national.ca or 416-848-1431
or
Jennifer Lee
jlee@national.ca or 416-848-1383


Statements regarding Forward Looking Information

Certain portions of this press release as well as other public statements by the Corporation contain “forward-looking information” within the meaning of applicable Canadian securities legislation, which is also referred to as “forward-looking statements”, which may not be based on historical fact. Wherever possible, words such as “will”, “plans,” “expects,” “targets,” “continue”, “estimates,” “scheduled,” “anticipates,” “believes,” “intends,” “may,” and similar expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information. Such forward-looking statements include, without limitation, statements regarding any information as to future financial or operating performance and other statements that express expectations or estimates of future performance, including statements regarding the Corporation’s EBITDA and earnings expectations for the mortgage and deposit business, fee income, expense levels, the completion of the proposed sale of Equity’s transfer agent and corporate trust services business to the TMX, including the expected timelines for completion, the expected use of proceeds therefrom and the anticipated effect of the sale transaction on its business, operations and financial results, the Corporation’s expected need for regulatory capital, the expected timing of the Corporation’s previously disclosed wind-down of its day-to-day retail foreign exchange operations and its expected impact on the Corporation’s business, operations and financial results, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation’s ability to complete strategic transactions and integrate acquisitions and other factors.

Certain material factors or assumptions are applied by the Corporation in making forward-looking statements and are based on management’s knowledge of current business conditions and expectations of future business conditions and trends, including without limitation, factors and assumptions regarding its ability to fund its mortgage business, the value of mortgage originations, the competitive nature of the alternative mortgage market, the expected margin between the interest earned on its mortgage portfolio and the interest to be paid on its deposits, the relative continued health of real estate markets, acceptance of its products in the marketplace, the state of current credit, interest rate and liquidity conditions affecting the Corporation and the Canadian economy, retail mortgage markets, housing sales, and equity and capital markets, as well as its operating cost structure and the current tax regime. Certain other factors and assumptions have been applied in making forward-looking statements, including, assumptions relating to the timing and completion of the proposed transaction with the TMX, the Corporation’s ability to implement and realize on its new strategic focus following completion of the transaction with the TMX, the Corporation’s ability to wind-down its day-to-day retail foreign exchange operations and the expected impact on the Corporation’s business, operations and financial results, as well as the Corporation’s capital and financing requirements

Forward-looking statements reflect the Corporation’s current views with respect to future events and are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, as they reflect the Corporation’s current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic, regulatory, competitive, political and social uncertainties and contingencies. Many factors could cause the Corporation’s actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements including, among others, failure to successfully close the proposed transaction with the TMX, failure by the Corporation in implementing and realizing its new strategic focus, a significant downturn in capital markets or the economy as a whole, delays in completing the wind-down of the Corporation’s day-to-day retail foreign exchange operations or other unforeseen circumstances arising from such wind-down, reduced large-volume foreign exchange revenue which could lead to an impairment of goodwill in our foreign exchange unit, errors or omissions by the Corporation in providing services to its customers, significant changes in foreign currency exchange rates, extreme price and volume fluctuations in the stock markets, significant increases in the cost of complying with applicable regulatory requirements, civil unrest, economic recession, pandemics, war and acts of terrorism which may adversely impact the North American and global economic and financial markets, inability to raise funds through public or private financing in the event that the Corporation incurs operating losses or requires substantial capital investment in order to respond to unexpected competitive pressures, significant changes in interest rates, failure by Equity Financial Trust Company (“EFT”) to meet ongoing regulatory obligations, failure by the Corporation to generate or obtain sufficient cash or cash equivalents in a timely manner and at a reasonable price or to adequately monitor and/or adjust its mortgage portfolio management practices for changing circumstances, failure by the Corporation to attract and to retain the necessary employees to meet its needs, failure by EFT to adequately monitor the services provided by third party service providers or to establish alternative arrangements if required, failure by EFT to secure sufficient deposits from securities dealers or a sufficient level of mortgage origination from its mortgage broker network, a failure of the computer systems of the Corporation or one or more of its service providers or the risks detailed from time-to-time in the Corporation’s quarterly filings, annual information forms, annual reports and annual filings with securities regulators, including, without limitation the risks described in the Corporation’s annual information form dated February 28, 2013 (a copy of which can be found on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com) under the headings “Cautionary Statement Regarding Forward Looking Information” and “Description of the Business – Risks of the Business” and the Corporation’s management’s discussion & analysis for the year ended December 31, 2012 dated February 13, 2013 under the heading “Risks”. Forward-looking information will be updated as required pursuant to the requirements of applicable securities laws.

Toronto – April 2, 2013 – Equity Financial Holdings Inc. (“EQI” or the “Corporation”) (TSX: EQI), a Canadian financial services company, today announced the results from its Annual and Special Meeting of Shareholders held on April 2, 2013.

“We are pleased that our shareholders have approved the transaction with TMX Group,” said Equity President & CEO, Paul G. Smith. “Given the significance of this strategic decision, we felt it was important for shareholders to have the opportunity to approve it. The sale of the transfer agent and corporate trust business provides us with the necessary capital to invest in our new strategy. We are excited about the growth potential for the company as we focus on the rapidly growing retail mortgage lending and deposit-taking business.”

Under the terms of the transaction agreement, TMX Group will acquire Equity’s transfer agent and corporate trust business for $64 million payable in cash at closing, subject to certain post-closing price adjustments. The finalization of the transaction is expected during the second quarter of calendar 2013 and remains subject to the closing conditions outlined in EQI’s Management Information Circular dated February 28, 2013.

About Equity Financial Holdings Inc.
Through its wholly owned subsidiaries, the Corporation provides transfer agent, corporate trust, foreign exchange and retail mortgage services to the corporate and institutional markets, and the retail mortgage market. Following the completion of the transaction with TMX Group, the Corporation will be a Canadian financial services company serving the alternative retail mortgage market through its federally regulated and wholly-owned subsidiary, Equity Financial Trust Company. Learn more at www.equityfinancialholdings.com

For more information
Investor contact:
Equity Financial Holdings Inc.
Paul G. Smith, President & CEO
(416) 361-0930 Ext.270
Equity Financial Trust Company
Nick Kyprianou, CEO
(416) 361-0930 Ext.290

Media contact:
NATIONAL Public Relations
Jennifer Lee
jlee@national.ca or 416-848-1383
or
Peter Block
pblock@national.ca or 416-848-1431

Statements regarding Forward Looking Information

Certain portions of this press release as well as other public statements by the Corporation contain “forward-looking information” within the meaning of applicable Canadian securities legislation, which is also referred to as “forward-looking statements”, which may not be based on historical fact. Wherever possible, words such as “will”, “plans,” “expects,” “targets,” “continue”, “estimates,” “scheduled,” “anticipates,” “believes,” “intends,” “may,” and similar expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information. Such forward-looking statements include, without limitation, statements regarding any information as to future financial or operating performance and other statements that express expectations or estimates of future performance, including statements regarding the Corporation’s EBITDA and earnings expectations for the mortgage and deposit business, fee income, expense levels, the completion of the proposed sale of Equity’s transfer agent and corporate trust services business to the TMX, including the expected timelines for completion, the expected use of proceeds therefrom and the anticipated effect of the sale transaction on its business, operations and financial results, the Corporation’s expected need for regulatory capital, the expected timing of the Corporation’s previously disclosed wind-down of its day-to-day retail foreign exchange operations and its expected impact on the Corporation’s business, operations and financial results, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation’s ability to complete strategic transactions and integrate acquisitions and other factors.

Certain material factors or assumptions are applied by the Corporation in making forward-looking statements and are based on management’s knowledge of current business conditions and expectations of future business conditions and trends, including without limitation, factors and assumptions regarding its ability to fund its mortgage business, the value of mortgage originations, the competitive nature of the alternative mortgage market, the expected margin between the interest earned on its mortgage portfolio and the interest to be paid on its deposits, the relative continued health of real estate markets, acceptance of its products in the marketplace, the state of current credit, interest rate and liquidity conditions affecting the Corporation and the Canadian economy, retail mortgage markets, housing sales, and equity and capital markets, as well as its operating cost structure and the current tax regime. Certain other factors and assumptions have been applied in making forward-looking statements, including, assumptions relating to the timing and completion of the proposed transaction with the TMX, the Corporation’s ability to implement and realize on its new strategic focus following completion of the transaction with the TMX, the Corporation’s ability to wind-down its day-to-day retail foreign exchange operations and the expected impact on the Corporation’s business, operations and financial results, as well as the Corporation’s capital and financing requirements

Forward-looking statements reflect the Corporation’s current views with respect to future events and are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, as they reflect the Corporation’s current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic, regulatory, competitive, political and social uncertainties and contingencies. Many factors could cause the Corporation’s actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements including, among others, failure to successfully close the proposed transaction with the TMX, failure by the Corporation in implementing and realizing its new strategic focus, a significant downturn in capital markets or the economy as a whole, delays in completing the wind-down of the Corporation’s day-to-day retail foreign exchange operations or other unforeseen circumstances arising from such wind-down, reduced large-volume foreign exchange revenue which could lead to an impairment of goodwill in our foreign exchange unit, errors or omissions by the Corporation in providing services to its customers, significant changes in foreign currency exchange rates, extreme price and volume fluctuations in the stock markets, significant increases in the cost of complying with applicable regulatory requirements, civil unrest, economic recession, pandemics, war and acts of terrorism which may adversely impact the North American and global economic and financial markets, inability to raise funds through public or private financing in the event that the Corporation incurs operating losses or requires substantial capital investment in order to respond to unexpected competitive pressures, significant changes in interest rates, failure by Equity Financial Trust Company (“EFT”) to meet ongoing regulatory obligations, failure by the Corporation to generate or obtain sufficient cash or cash equivalents in a timely manner and at a reasonable price or to adequately monitor and/or adjust its mortgage portfolio management practices for changing circumstances, failure by the Corporation to attract and to retain the necessary employees to meet its needs, failure by EFT to adequately monitor the services provided by third party service providers or to establish alternative arrangements if required, failure by EFT to secure sufficient deposits from securities dealers or a sufficient level of mortgage origination from its mortgage broker network, a failure of the computer systems of the Corporation or one or more of its service providers or the risks detailed from time-to-time in the Corporation’s quarterly filings, annual information forms, annual reports and annual filings with securities regulators, including, without limitation the risks described in the Corporation’s annual information form dated February 28, 2013 (a copy of which can be found on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com) under the headings “Cautionary Statement Regarding Forward Looking Information” and “Description of the Business – Risks of the Business” and the Corporation’s management’s discussion & analysis for the year ended December 31, 2012 dated February 13, 2013 under the heading “Risks”. Forward-looking information will be updated as required pursuant to the requirements of applicable securities laws.

Toronto, Ontario, February 13, 2013 – Equity Financial Holdings Inc. (TSX: EQI), a Canadian financial services company serving the corporate and institutional markets and the retail mortgage market, today announced that it had reached an agreement with TMX Group Limited (TSX: X) to sell its transfer agent and corporate trust business. Equity has made the strategic decision to focus on its rapidly growing retail mortgage lending and deposit-taking business.

“This is a great day for Equity. Over the years we have built a strong and diversified company that has excelled in the transfer agent and corporate trust business and, more recently, entered the mortgage lending and deposit-taking business,” said Equity President & CEO, Paul G. Smith. “We have made the strategic decision to move exclusively into the mortgage and deposit business and will now have the necessary capital to invest in and support our new business strategy. At the same time, we see TMX Group as an organization that is well-positioned to support the future growth and continued success of the transfer agent and corporate trust business, which is great news for employees and clients.”
Under the terms of the agreement, TMX Group will acquire Equity’s transfer agent and corporate trust business for $64 million payable in cash at closing, subject to certain post-closing price adjustments. With 700 transfer agent clients, the business serves companies from its offices in Toronto, Vancouver, Calgary and Montreal. A critical component of the transfer agent and corporate trust business is the highly skilled and experienced management and client service teams, who will be joining TMX Group. The agreement is subject to certain conditions, including Equity shareholder approval, which will be sought at the annual and special meeting of shareholders, planned for late March or early April.

Significant Growth Segment
Having grown significantly since Equity first entered the business in 2011, the mortgage lending and deposit-taking business gained significant strength over the past fiscal year. It represents the Company’s fastest growing income stream, with $42 million in new mortgage loans in the fourth quarter alone, for a total of more than $198.0 million in total loans outstanding as at December 31, 2012. As announced at the end of its fourth quarter, Equity’s mortgage business is the primary driver of the 260 per cent year-to-date increase in net interest income.

Focusing on Future Growth Opportunities
Nick Kyprianou, CEO of Equity Financial Trust Company added, “Since starting in the mortgage and deposit business, Equity has demonstrated its expertise and superior ability to serve our mortgage broker partners and deposit dealers. This transaction allows us to make the necessary investments to leverage the infrastructure we have developed for continued growth.”

Transfer Agent and Trust Clients to Benefit from new Ownership
Mr. Smith noted, “Equity has been a major player in the transfer agency and corporate trust markets in Canada. We are confident that clients will benefit from being part of a larger organization like TMX Group that is not only committed to providing the same level of customer service excellence, but also has the ability to invest in the future growth of the business.”
“The expansion of our company services business in this area makes a great deal of sense for TMX Group,” said Kevan Cowan, President TSX Markets and Group Head of Equities, TMX Group. “The stock transfer and corporate trust businesses fit very well with the other products and services we provide to companies listed on Toronto Stock Exchange and TSX Venture Exchange. We have the key relationships and resources to enhance the great business that the Equity team has built. We look forward to working with this group of dedicated professionals from Equity.”

Advisors
Equity Financial Holdings Inc. engaged Blair Franklin Capital Partners Inc. as its financial advisor in connection with the transaction. Blair Franklin has provided the Board of Directors with an opinion that, as of the date hereof, the consideration to be received pursuant to the transaction is fair from a financial point of view to Equity Financial Holdings Inc.
Blake, Cassels & Graydon LLP acted as legal counsel for Equity Financial Holdings Inc.

Investor and Analyst Conference Call
Equity will hold a conference call on February 13, 2013 at 9:00AM Eastern Time to discuss the transaction agreement and answer questions from its investors and analysts.
Participants can dial 416-340-2218 or toll free 1-866-226-1793.

About Equity Financial Holdings Inc.
Through its wholly owned subsidiaries, EQI provides transfer agent, corporate trust, foreign exchange and retail mortgage services to the corporate and institutional markets, and the retail mortgage market. Learn more at www.equityfinancialholdings.com

For more information
Investor contact:
Equity Financial Holdings Inc.
Paul G. Smith, President & CEO
(416) 361-0930 Ext.270
Equity Financial Trust Company
Nick Kyprianou, CEO
(416) 361-0930 Ext.290

Media contact:
NATIONAL Public Relations
Jennifer Lee
jlee@national.ca or 416-848-1383
or
Jeff Roman
jroman@national.ca or 416-848-1464

Statements regarding Forward Looking Information

Certain portions of this press release as well as other public statements by the Corporation contain “forward-looking information” within the meaning of applicable Canadian securities legislation, which is also referred to as “forward-looking statements”, which may not be based on historical fact. Wherever possible, words such as “will”, “plans,” “expects,” “targets,” “continue”, “estimates,” “scheduled,” “anticipates,” “believes,” “intends,” “may,” and similar expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information. Such forward-looking statements include, without limitation, the Corporation’s earnings expectations, fee income, expense levels, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation’s ability to complete strategic transactions and integrate acquisitions and other factors.

All material assumptions used in making forward-looking statements are based on management’s knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting the Corporation and the Canadian economy. Certain material factors or assumptions are applied by the Corporation in making forward-looking statements, including without limitation, factors and assumptions regarding interest and foreign exchange rates, availability of key personnel, the effect of competition, government regulation of its business, computer failure or security breaches, future capital requirements, its ability to fund its mortgage business, the value of mortgage originations, the competitive nature of the alternative mortgage market, the expected margin between the interest earned on its mortgage portfolio and the interest to be paid on its deposits, the relative continued health of real estate markets, acceptance of its products in the marketplace, as well as its operating cost structure and the current tax regime.

Forward-looking statements reflect the Corporation’s current views with respect to future events and are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Readers should not place undue reliance on such forward-looking statements, as they reflect the Corporation’s current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic, regulatory, competitive, political and social uncertainties and contingencies. Many factors could cause the Corporation’s actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including among others a significant downturn in capital markets or the economy as a whole, reduced large-volume foreign exchange revenue which could lead to an impairment of goodwill in our foreign exchange unit, errors or omissions by the Corporation in providing services to its customers, significant changes in foreign currency exchange rates, extreme price and volume fluctuations in the stock markets, significant increases in the cost of complying with applicable regulatory requirements, civil unrest, economic recession, pandemics, war and acts of terrorism which may adversely impact the North American and global economic and financial markets, inability to raise funds through public or private financing in the event that the Corporation incurs operating losses or requires substantial capital investment in order to respond to unexpected competitive pressures, significant changes in interest rates, failure by Equity Financial Trust Company (“EFT”) to meet ongoing regulatory requirements, the failure of borrowers or counterparties to honour their financial or contractual obligations to EFT, failure by the Corporation to generate or obtain sufficient cash or cash equivalents in a timely manner and at a reasonable price or to meet its commitments as they become due, failure by EFT to adequately monitor and/or adjust its mortgage portfolio management practices for changing circumstances, failure by the Corporation to attract and to retain the necessary employees to meet its needs, failure by EFT to adequately monitor the services provided by third party service providers or to establish alternative arrangements if required, failure by EFT to secure sufficient deposits from securities dealers or a sufficient level of mortgage origination from its mortgage broker network, a failure of the computer systems of the Corporation or one or more of its service providers or the risks detailed from time-to-time in the Corporation’s quarterly filings, annual information forms, annual reports and annual filings with securities regulators. Forward-looking information will be updated as required pursuant to the requirements of applicable securities laws.

Toronto, Ontario, February 13, 2013 – Equity Financial Holdings Inc. (TSX: EQI) (“EQI” or “the Corporation”), a Canadian financial services company serving the corporate and institutional markets and the retail mortgage market, reported today its annual financial results for the year ended December 31, 2012.

Financial Highlights (all dollar amounts, except per-share, are in $000s unless otherwise stated)^[1]

[1] As a result of the Transaction noted below we have also reported on the operating results of continuing and discontinued operations. Please refer to our 2012 Audited Financial Statements and MD&A for additional details.
[2] Return on equity (net earnings divided by the simple average of reported shareholders’ equity at the beginning and end of the period) does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. However, we believe financial analysts and investors view these as key measures of certain aspects of our performance. They use return on equity as a key indicator of whether we use our capital resources efficiently. This measure should not be considered as an alternative to cash flows from operating activities nor to any other measures of performance presented in accordance with IFRS.
_______________________

Our total net earnings were down $8,696 or 94%, to $534 for the year ended December 31, 2012, primarily affected by the absence of significant revenue from large-volume transactions which had contributed to record results in 2011. Our total earnings per share also decreased by $1.01 or 94%, to $0.06 (basic) for the year ended December 31, 2012.

Subsequent to December 31, 2012, we executed a definitive agreement for the sale of the assets of our transfer agent and corporate trust services business to an affiliate of TMX Group Inc. (we announced this “Transaction” today in a separate press release). This Transaction represents the culmination of a strategic review undertaken in 2012 during which we considered options for obtaining capital resources to support further growth in our mortgage business, which we believe offers the best potential returns to our shareholders. By realizing the inherent value of the assets being sold we will immediately improve EFT’s regulatory capital position and expect to reduce our need to consider further equity or debt financing over the coming years.

Our mortgage lending and deposit-taking business unit provided a source of growth for the Corporation in a year where our other business units were negatively affected by difficult market conditions. Revenue and net earnings contributed by the mortgage unit increased each quarter in 2012 and mortgages receivable more than doubled to a balance of $198,147 as at December 31, 2012 ($84,780 as at December 31, 2011). Net interest income represents a reliable and recurring revenue stream which increased $3,459 or 260%, to $4,791 year over year, driven by the growth in our mortgage loan portfolio.
Our foreign exchange segment experienced an absence of large-volume transactions in 2012 compared to those which occurred in 2011. These large-volume foreign exchange revenues are associated with our corporate trust services and are included in the Transaction. We also saw a decline in revenue from retail foreign exchange operations, leading to the decision to begin winding down our day-to-day foreign exchange business. This wind-down is expected to be completed in the first quarter of 2013, at which time our foreign exchange segment will be reclassified as a discontinued operation. Other revenue from our foreign exchange segment decreased 87% by $11,807 to $1,726 for the year ended December 31, 2012.

Our transfer agent and corporate trust segment also experienced a decline in revenue for the financial year ended December 31, 2012 compared to 2011. Persistently difficult capital market conditions that started in the second half of 2011 affected transaction volumes for the transfer agent business and provided limited opportunities for our corporate trust group to act in merger and acquisition transactions. As a result of these factors, revenue from transfer agent and corporate trust decreased by $4,993 or 23%, to $17,169 for the year ended December 31, 2012.

Equity Financial Holdings President & CEO Paul G. Smith said,

“The decision to sell our transfer agent and corporate trust services business represents the culmination of our strategic review, resulting in our decision to shift our strategy and focus on our mortgage unit. We believe adopting this exclusive focus on our growing business unit – in which we recorded growth in revenue and net earnings each quarter in 2012 – offers greater potential for our company. With the proceeds from the sale of our transfer agent and trust business to TMX Group Inc., we have the opportunity to invest in the future growth of our mortgage business in order to create value for our shareholders.”

Audited annual consolidated financial statements and Management’s Discussion and Analysis for the fiscal year ended December 31, 2012 can be found on SEDAR at www.sedar.com and on Equity’s website at www.equityfinancialholdings.com

Annual Conference Call

EQI will hold a conference call on February 13, 2013 at 9:00 AM Eastern Time to discuss its operating results and to answer questions. Participants can dial 416-340-2218 or toll free 866-226-1793.

About Equity Financial Holdings Inc.

Through its wholly owned subsidiaries, EQI provides transfer agent, corporate trust, foreign exchange, retail mortgage and corporate secretarial services to the corporate and institutional markets, and the retail mortgage market. Learn more at www.equityfinancialholdings.com.

Advisory notes:

Certain portions of this press release as well as other public statements by Equity Financial Holdings Inc. (the “Corporation”) contain “forward-looking information” within the meaning of applicable Canadian securities legislation, which is also referred to as “forward-looking statements”, which may not be based on historical fact. Wherever possible, words such as “will”, “plans,” “expects,” “targets,” “continue”, “estimates,” “scheduled,” “anticipates,” “believes,” “intends,” “may,” and similar expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information. Such forward-looking statements include, without limitation, those relating to the anticipated timing and completion of the proposed sale transaction and the Corporation’s ability to receive all necessary approvals related thereto, the expected effect of the completion of the proposed sale transaction on the Corporation, its business, operations and financial results, the Corporation’s expected need for regulatory capital and equity or debt financing, the expected timing of the Corporation’s previously announced wind-down of its day-to-day retail foreign exchange operations and its expected impact on the Corporation’s business, operations and financial results, the Corporation’s earnings expectations, fee income, expense levels, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets activities, business competition, technological change, changes in government regulations and regulatory guidelines, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation’s ability to complete strategic transactions and integrate acquisitions and other factors.

All material assumptions used in making forward-looking statements are based on management’s knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting the Corporation and the Canadian economy, retail mortgage markets, housing sales, and equity and capital market, as well as those assumptions relating to the completion of the proposed sale transaction and receipt of required approvals in connection therewith and those assumptions relating to the Corporation’s ability to implement and realize on its new strategic focus, assumptions relating to the Corporation’s ability to wind-down its day-to-day retail foreign exchange operations and the expected impact on the Corporation’s business, operations and financial results, and assumptions relating to the Corporation’s capital and debt or equity financing requirements. Certain material factors or assumptions are applied by the Corporation in making forward-looking statements, including without limitation, the Corporation’s ability to successfully close the proposed sale transaction and successfully implement and realize on its new strategic focus, factors and assumptions regarding interest and foreign exchange rates, availability of key personnel, the effect of competition, government regulation of its business, computer failure or security breaches, future capital requirements, its ability to fund its mortgage business, the value of mortgage originations, the competitive nature of the alternative mortgage market, the expected margin between the interest earned on its mortgage portfolio and the interest to be paid on its deposits, the relative continued health of real estate markets, acceptance of its products in the marketplace, as well as its operating cost structure and the current tax regime.



Forward-looking statements reflect the Corporation’s current views with respect to future events and are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Readers should not place undue reliance on such forward-looking statements, as they reflect the Corporation’s current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic, regulatory, competitive, political and social uncertainties and contingencies.


Many factors could cause the Corporation’s actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including among others, a failure to successfully close the proposed sale transaction, failure by the corporation to implement or realize on its new strategic focus, a significant downturn in capital markets or the economy as a whole, delays in completing the wind-down of the Corporation’s day-to-day retail foreign exchange operations or other unforeseen circumstances arising from such wind-down, reduced large-volume foreign exchange revenue which could lead to an impairment of goodwill in our foreign exchange unit, errors or omissions by the Corporation in providing services to its customers, significant changes in foreign currency exchange rates, extreme price and volume fluctuations in the stock markets, significant increases in the cost of complying with applicable regulatory requirements, civil unrest, economic recession, pandemics, war and acts of terrorism which may adversely impact the North American and global economic and financial markets, inability to raise funds through public or private financing in the event that the Corporation incurs operating losses or requires substantial capital investment in order to respond to unexpected competitive pressures, significant changes in interest rates, failure by Equity Financial Trust Company (“EFT”) to meet ongoing regulatory requirements, the failure of borrowers or counterparties to honour their financial or contractual obligations to EFT, failure by the Corporation to generate or obtain sufficient cash or cash equivalents in a timely manner and at a reasonable price or to meet its commitments as they become due, failure by EFT to adequately monitor and/or adjust its mortgage portfolio management practices for changing circumstances, failure by the Corporation to attract and to retain the necessary employees to meet its needs, failure by EFT to adequately monitor the services provided by third party service providers or to establish alternative arrangements if required, failure by EFT to secure sufficient deposits from securities dealers or a sufficient level of mortgage origination from its mortgage broker network, a failure of the computer systems of the Corporation or one or more of its service providers or the risks detailed from time-to-time in the Corporation’s quarterly filings, annual information forms, annual reports and annual filings with securities regulators. The Corporation disclaims any intent or obligation to update or revise publicly any forward-looking statements whether as a result of new information, estimates, future events or results, or otherwise, unless required to do so by applicable laws.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
Equity Financial Holdings Inc.
Paul G. Smith
President & CEO
(416) 361-0930 Ext 270
www.equityfinancialholdings.com

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Don’t forget to visit the Equity team’s booth.

The tradeshow hours are 7:45 am – 3:30 pm

The tradeshow hours are 11:30 am – 1:00 pm.

Visit the Equity team at exhibitor booth # 24

At the end of our trading day yesterday Moody’s announced their downgrade of France’s sovereign debt to Aa1, coming in line with S&P’s rating. The initial reaction was a selloff in the Euro, however it was very short lived and again through the European session the Euro has gained. The European Finance Ministers are meeting regarding Greece and the release of their next tranche of bailout funds as well as extending their fiscal targets by two years. The outcome of this meeting will be at 12:00 EST in line with the end of the European trading day. The outcome at best will be a verbal agreement at this point and the details should be cleared up and signed next week.
Our Loonie is starting where it left off yesterday and we had minimal movement overnight. This morning Canada released Wholesale Sales for September and the number disappointed at -1.4% versus expectation of +0.5%. US Housing Starts for October surprised to the upside at 894K vs. the anticipated 840K while Building Permits were 866K against expectations of 864K. There was minimal reaction to these releases as markets await Ben Bernanke’s speech at 12:15 today titled “the economic recovery and economic policy”. There will be a Q & A session following this and the markets are hoping there will be some hints towards the anticipated expansion of QE3 at the December FOMC meeting. A Bloomberg report came out yesterday stating that the CNOOC/Nexen deal appears to be moving closer to approval by the Canadian Government as CNOOC is agreement on fulfilling the net benefit to Canada clause, with fifty percent of the board and management positions being held by Canadians, maintaining the workforce for five years and a commitment to capital spending.

Suggested Mid Market Range today 0.9920 to 1.0000.

Have a great day,

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After a week of negative sentiment and “risk off” trading the market appears desperate to latch on to a positive to start this week. The main catalyst for the swing were comments from President Obama that he was “confident” that an agreement could be reached to avoid the fiscal cliff. The latest rhetoric on the plan appears to be a short term patch with a promise to reduce ten year budget plans significantly. Does not sound like an option to get too overly optimistic about, but who am I?
The key risk event for this week is tomorrow’s Eurozone finance ministers meeting where they will aim to agree on the financing strategy for the amended Greek program this week. The key focus of the meeting will be adding two years to reach their fiscal goals which have deteriorated beyond the previous worst case scenario. The fin min’s will need to tread lightly on this issue as the IMF is threatening to pull out of the Greek Aid program on this extension. With that in mind I anticipate this story will not be resolved this week.
We have Ben Bernanke speaking today at 12:15 and markets will be watching for any comments pertaining to the fiscal cliff and or comments pertaining to QE , end of operation twist. For the week ahead we have most of the North American data coming out in the first three days of the week as from Thursday on we have no US data due the US Thanksgiving. Today we have October US Existing Home Sales and NAHB Housing Index out at 10:00 AM; Tomorrow we see Canada’s September Wholesale Trade, US October Housing Starts, Building Permits at 8:30; Wednesday is all US data with November Markit Flash Manufacturing PMI, and University of Michigan Consumer Sentiment Index; Thursday will be Canada’s Retail Sales for September and Friday will be Canadian October CPI.

Suggested Mid Market Range today 0.9955 to 1.0015

Have a great day,

Please read the legal disclaimer here