Laurentian Bank has ‘no concerns’ about reported loss of over $20M, exec says

A Laurentian Bank sign is seen in Montreal, Friday, Aug. 30, 2024. THE CANADIAN PRESS/Christinne Muschi

Laurentian Bank posted a loss in its first quarter, but the result stems from accounting factors and fails to reflect the Montreal-based financial institution’s activities, according to its chief financial officer.

“There are really no concerns with the results released this morning,” said Yvan Deschamps in an interview on Friday, who sought to reassure Laurentian’s customers and employees.

The bank reported a net loss of $20.5 million in its latest quarter, which ended Jan. 31. The shortfall is due to $61.2 million in expenses related to Laurentian’s sale to Fairstone Bank, Deschamps explained.

Laurentian announced in December that it would be split in two and sold in a pivot to become a specialty commercial bank. The deal would see Fairstone Bank acquire the 180-year-old Quebec institution for $1.9 billion.

Under the terms, Laurentian will divest its retail and small-and-medium-sized banking portfolios to National Bank.

However, the branches and their 700 employees will not be transferred, with the Laurentian brand living on as part of Fairstone with a focus on financial services for corporations.

To account for severance payments and the eventual closure of its branches, Laurentian had to record an accounting charge in its financial results, Deschamps said.

Branch operations and employee work will continue as usual until the deal is completed, he said. 

“These are really future items that we are taking into account from an accounting perspective today.”

The CFO added that the expense has no impact on liquidity and does not weaken the balance sheet. 

“We are very, very solid in terms of liquidity,” he said.

Excluding the accounting charge, the institution posted adjusted earnings of $34.2 million last quarter, compared with $39.4 million in the same period a year earlier.

Laurentian maintained the value of its loan and deposit portfolio, which will eventually be transferred to National Bank.

As of Jan. 31, the Quebec regional bank’s total loans stood at $36.2 billion, compared to $35.8 billion three months earlier, before the announcement.

The value of deposits reached $24.3 billion, compared to $24 billion in the previous quarter.

Revenue totalled $251.6 million, up from $249.6 million in the same quarter last year.

On an adjusted basis, Laurentian says it earned 65 cents per diluted share in its latest quarter, down from an adjusted profit of 78 cents per diluted share a year earlier. 

Related Stories:

• Big Six banks exceed expectations, hit $19 billion in Q1 profit

This report by The Canadian Press was first published Feb. 27, 2026.

Stéphane Rolland, The Canadian Press.