Canadian Bank's 180-Year Run Nears End

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Laurentian Bank has set November 1 as the closing date for its two-part transaction that will see its commercial business go to Fairstone Bank and its retail and small- and medium-sized enterprise (SME) banking portfolios to National Bank of Canada.

According to The Canadian Press, the date is subject to certain conditions, and Laurentian announced it following the approval of the deal by the Canadian Investment Regulatory Organization (CIRO) and other securities regulators. The transaction requires this final key regulatory approval to be completed.

Earlier this year, the federal minister of finance, the Office of the Superintendent of Financial Institutions (OSFI), and the Competition Bureau had already cleared the deal.

Under the transaction, Fairstone will acquire Laurentian’s capital markets subsidiaries alongside commercial real estate financing, Northpoint Commercial Finance, and B2B Bank. Meanwhile, National Bank will pick up around $3.4 billion in underlying mutual funds and various loans and deposits totaling over $11 billion.

Fairstone will pay $40.50 per share in cash, which represents a 20% premium over Laurentian’s closing price of $33.76 on December 1, 2025, valuing the bank at approximately $1.9 billion. After the transactions close, Laurentian Bank shares are expected to be delisted from the Toronto Stock Exchange.

Laurentian’s shareholders backed the acquisition with 98.8% of votes cast in favor, meeting the two-thirds threshold required. Laurentian’s CEO, Éric Provost, has stated that the acquisition of Fairstone presents an opportunity to grow its specialized commercial business further. Fairstone’s CEO, Scott Wood, views the deal as a means to deepen its national lending footprint.

However, the transaction comes at a time when Laurentian Bank is facing financial challenges. In the third quarter of 2026, Laurentian posted a net income of $1.5 million and a diluted loss per share of $0.08, a significant drop from the same period last year. The bank has also seen an increase in credit loss provisions and a decline in its Common Equity Tier 1 ratio.

Upon completion of the transactions, Laurentian will retain its brand identity and Montreal head office, with Provost staying on as CEO. However, 2,715 employees are affected by the deal, and Laurentian’s 57 branches will not transfer to National Bank, leaving the future of branch staff uncertain.