The lending giant and National Bank will split bank's operations in landmark deal
Fairstone Bank of Canada has announced a deal to purchase Laurentian Bank, with the 175-year-old institution sold in pieces to the lending giant and National Bank.
The agreement is valued at about $1.9 billion in total, with Fairstone set to acquire all outstanding common shares of Laurentian. Its commercial operations will be merged with Laurentian's, while National Bank is to acquire Laurentian's retail, SME and syndicated loan portfolios for consideration expected to be around book value at closing.
Éric Provost, Laurentian’s president and CEO, said the announcement was "aligned with the acceleration of Laurentian Bank's commercial specializations" as revealed in the company's 2024 Strategic Plan.
Laurentian had failed to find a single buyer at a higher price.
“Joining forces with Fairstone Bank will allow us to grow our specialized commercial business even further, while maintaining our brand identity and head office in Montreal, where we were founded over 175 years ago. Partnering with National Bank will allow our customers to benefit from a broader range of services and improved, modern technology,” Provost said.
Fairstone, described in the deal materials as “Canada’s leading alternative lender,” aims to use the acquisition to build scale in commercial real estate and expand into inventory and equipment financing.
“This transaction strengthens Fairstone Bank’s competitive position, diversifies revenue streams, and deepens our national lending footprint,” Fairstone CEO Scott Wood said.
Branch closures and consolidation pressures
Laurentian’s 57 branches in Quebec are slated to close at conversion, with no branch staff transferring to National Bank.
Affected employees will be able to apply for open roles at National through a dedicated channel. National Bank, which reported $553 billion in assets as of July 31, 2025, framed the deal as a domestic growth play.
“Leveraging our strong presence in Québec, this transaction aligns with our domestic growth strategy and is a natural fit,” president and CEO Laurent Ferreira said.
“We look forward to welcoming Laurentian Bank’s retail, SME, and syndicated loan clients, who will soon benefit from National Bank’s leading digital services, an expanded range of financial products, and access to our extensive branch network and business banking teams,” he said.
Shareholder backing and market context
Fairstone’s offer required approval from two‑thirds of Laurentian shareholders at a special meeting expected in early 2026. Quebec pension giant Caisse de dépôt et placement du Québec, which held about 8% of Laurentian’s shares, signalled support.
Founded in 1846, Laurentian operated personal and commercial banking and capital markets businesses in Canada and the United States.
Fairstone, a privately held lender with roots dating back to the 1920s, focuses on residential and commercial mortgages, consumer deposits, auto and retail financing and personal loans across more than 250 branches and digital channels. It is the parent company of mortgage market giant Home Trust.
National Bank was founded in 1859. It offers retail, commercial, wealth and capital markets services and reported $553 billion in assets as of July 31, 2025.
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