The financial information reported herein is based on the condensed interim consolidated (unaudited) information for the three-month and six-month periods ended April 30, 2026 and has been prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board (IASB). All amounts are denominated in Canadian dollars. The Laurentian Bank of Canada and its entities are collectively referred to as "Laurentian Bank" or the "Bank" and provide deposit, investment, loan, securities, trust and other products or services.

MONTREAL, May 29, 2026 /CNW/ - Consistent with the strategic context established in the first quarter of 2026, Laurentian Bank of Canada reported a net loss of $20.6 million and a diluted loss per share of $0.50 for the second quarter of 2026, compared with net income of $32.3 million and diluted earnings per share of $0.69 for the second quarter of 2025. Return on common shareholders' equity(1) was negative 3.7% for the second quarter of 2026, compared with 4.9% for the second quarter of 2025. Of note, reported results for the second quarter of 2026 included adjusting items of $58.8 million ($43.2 million after income taxes), or $0.97 per share, related to the Transactions announced on December 2, 2025 (defined below). Refer to the Non-GAAP Financial and Other Measures section and to the Business Highlights section on pages 5 to 9 of the Bank's MD&A for additional information. Adjusted net income(2) was $22.6 million and adjusted diluted earnings per share(1) were $0.46 for the second quarter of 2026, compared with $34.0 million and $0.73 for the second quarter of 2025. Adjusted return on common shareholders' equity(1) was 3.4% for the second quarter of 2026, compared with 5.2% for the second quarter of 2025.

For the six months ended April 30, 2026, Laurentian Bank of Canada reported a net loss of $41.1 million and a diluted loss per share of $1.08, compared with net income of $70.9 million and diluted earnings per share of $1.44 for the six months ended April 30, 2025. Return on common shareholders' equity(1) was negative 3.9% for the six months ended April 30, 2026, compared with 5.1% for the six months ended April 30, 2025.  Of note, reported results for the six months ended April 30, 2026 included adjusting items of $133.2 million ($98.0 million after income taxes), or $2.19 per share, primarily related to the Transactions announced on December 2, 2025 (defined below). Refer to the Non-GAAP Financial and Other Measures section and to the Business Highlights section on pages 5 to 9 of the Bank's MD&A for additional information. Adjusted net income(2) was $56.9 million and adjusted diluted earnings per share(1) were $1.11 for the six months ended April 30, 2026, compared with $73.4 million and $1.50 for the six months ended April 30, 2025. Adjusted return on common shareholders' equity(1) was 4.0% for the six months ended April 30, 2026, compared with 5.3% for the same period one year ago.

"This quarter marked meaningful progress in preparing for our transactions with Fairstone Bank and National Bank. We remain confident in closing these transactions by late 2026", said Éric Provost, President and Chief Executive Officer of Laurentian Bank of Canada. "As we continue to execute and position the Bank for a sustainable, commercial specialty-focused future, our core businesses are delivering high-quality growth. Our teams remain fully committed to supporting our customers with consistency and care, while managing our operations with discipline."

For the three months ended

For the six months ended

In millions of dollars, except per share and percentage amounts (Unaudited)

April 30,2026

April 30,2025

Variance

April 30,2026

April 30,2025

Variance

Reported basis

Net income (loss)

$    (20.6)

$     32.3

n.m.

$    (41.1)

$     70.9

n.m.

Diluted earnings (loss) per share

$    (0.50)

$     0.69

n.m.

$    (1.08)

$     1.44

n.m.

Return on common shareholders' equity(1)

(3.7) %

4.9 %

(3.9) %

5.1 %

Efficiency ratio(3)

102.7 %

76.1 %

104.7 %

75.5 %

Common Equity Tier 1 (CET1) capital ratio(4)

11.0 %

11.0 %

11.0 %

11.0 %

Adjusted basis

Adjusted net income(2)

$     22.6

$     34.0

(33) %

$     56.9

$     73.4

(23) %

Adjusted diluted earnings per share(1)

$     0.46

$     0.73

(37) %

$     1.11

$     1.50

(26) %

Adjusted return on common shareholders' equity(1)

3.4 %

5.2 %

4.0 %

5.3 %

Adjusted efficiency ratio(1)

77.6 %

75.2 %

77.1 %

74.8 %

(1)

This is a non-GAAP ratio. For additional information, refer to the Non-GAAP Financial and Other Measures below and beginning on page 5 of the Second Quarter 2026 Report to Shareholders, including the Management's Discussion & Analysis (MD&A) for the period ended April 30, 2026. These pages are incorporated herein by reference. The MD&A is available on SEDAR+ at www.sedarplus.ca.

(2)

This is a non-GAAP financial measure. For additional information, refer to the Non-GAAP Financial and Other Measures section below and beginning on page 5 of the Second Quarter 2026 Report to Shareholders, including the MD&A for the period ended April 30, 2026. These pages are incorporated herein by reference.

(3)

This is a supplementary financial measure. For additional information, refer to the Non-GAAP Financial below and beginning on page 5 of the Second Quarter 2026 Report to Shareholders, including the MD&A for the period ended April 30, 2026. These pages are incorporated herein by reference.

(4)

In accordance with the Office of the Superintendent of Financial Institutions' (OSFI) Capital Adequacy Requirements Guideline.

Non-GAAP Financial and Other Measures

In addition to financial measures prepared based on generally accepted accounting principles (GAAP), management utilizes non-GAAP financial measures to evaluate the Bank's underlying and ongoing business performance. These non-GAAP financial measures, referred to throughout this document as adjusted measures, exclude items identified as adjusting items. Adjusting items consist of certain items of significance that arise from time to time which management believes are not indicative of underlying business performance.

Non-GAAP financial measures are not standardized financial measures under the financial reporting framework used to prepare the Bank's financial statements and may not be comparable to similar measures disclosed by other issuers. The Bank believes these non-GAAP financial measures are useful to readers in obtaining a better understanding of how management assesses the Bank's performance and in analyzing trends.

The following tables present a reconciliation of the non-GAAP financial measures to their most directly comparable financial measure that is disclosed in the primary financial statements of the Bank.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES, CONSOLIDATED STATEMENT OF INCOME

For the three months ended

For the six months ended

In thousands of dollars (Unaudited)

April 302026

January 312026

April 302025

April 302026

April 302025

Total revenue

$   213,655

$    251,555

$    242,516

$   465,210

$    492,153

Less: Adjusting items, before income taxes

Net loss on the Syndicated Loan Transaction(1)

(22,508)

—

—

(22,508)

—

Profit on sale of assets under administration(2)

—

—

—

—

875

Adjusted total revenue

$   236,163

$    251,555

$    242,516

$   487,718

$    491,278

Non-interest expenses

$   219,492

$    267,374

$    184,518

$   486,866

$    371,491

Less: Adjusting items, before income taxes

Restructuring and other impairment charges(3)

31,216

61,210

2,222

92,426

4,249

Transaction and conversion costs(4)

5,067

11,015

—

16,082

—

Net loss on the settlement of pension plans resulting from annuity purchases(5)

—

2,214

—

2,214

—

36,283

74,439

2,222

110,722

4,249

Adjusted non-interest expenses

$   183,209

$    192,935

$    182,296

$   376,144

$    367,242

Income (loss) before income taxes

$    (32,709)

$    (32,322)

$     41,305

$    (65,031)

$     88,794