Laurentian Bank of Canada

Total revenue was $251.6 million, up 1% year over year and up 3% quarter over quarter. On a reported basis, net loss was $20.5 million and diluted loss per share was $0.58. On an adjusted basis, diluted EPS was $0.65, down 17% year over year and 11% quarter over quarter, and adjusted net income was $24.2 million, down 13% year over year and stable sequentially. Net interest income rose $8.7 million, or 5%, year over year and $12.2 million, or 7%, sequentially, while net interest margin was 1.89%, up 4 bps year over year and 10 bps sequentially. The efficiency ratio increased 240 bps year over year and 110 bps sequentially, ROE was 4.5%, and CET1 was 10.9%, down 40 bps. For Q2 2026, management expects about $40 million of additional post-tax transaction charges, a roughly $0.04 loss on adjusted EPS from the syndicated loan sale, loans down about 2% to 3% mainly from that sale, net interest margin slightly lower, efficiency ratio roughly in line with Q1, PCLs in the high teens, tax rate in the high teens, and capital/liquidity remaining strong.

Eric Provost said the bank is making steady progress on its transformation plan and that core commercial businesses showed solid underlying momentum, with total loan growth of 4% in the quarter. He emphasized milestones on the Fairstone transaction, including 98.8% shareholder approval and the completed sale of the syndication portfolio, and said several regulatory steps still remain. His tone was constructive and confident, stressing employee resilience, customer support, and confidence in execution.

Yvan Deschamps focused on the earnings impact of transaction-related items and the core operating trends underneath them. He said first-quarter adjusting items totaled $54.7 million after tax, or $1.23 per share, including several charges tied to the December-announced transactions, and noted an additional $1.6 million after-tax net settlement loss from pension annuity purchases. He highlighted revenue of $251.6 million, adjusted EPS of $0.65, NIM of 1.89%, noninterest expenses of $192.9 million, CET1 of 10.9%, PCLs of $16.5 million and 18 bps, and gross impaired loans down $75.1 million sequentially; he also guided Q2 to lower loans, slightly lower NIM, and solid capital and liquidity.

Analysts focused mainly on deal timing and business momentum. Stephen Boland asked what approvals were still needed, and management said the main remaining approvals are OSFI and the Competition Bureau, followed by ministerial approval, with the timing still targeted for late 2026. He also asked about inventory financing growth, and Eric Provost said it was being driven by a mix of successful onboarding, the new Arctic Cat program, and prudent dealer restocking; when asked about customer reaction to the pending ownership change, Provost said feedback in the field was quite good and supportive, with additional volume and a strong future pipeline.