The financial information reported herein is based on the condensed interim consolidated (unaudited) information for the three-month and nine-month periods ended July 31, 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, Aug. 28, 2026 /CNW/ -- Laurentian Bank of Canada reported net income of $1.5 million and a diluted loss per share of $0.08 for the third quarter of 2026, compared with net income of $37.5 million and diluted earnings per share of $0.73 for the third quarter of 2025. Return on common shareholders' equity(1) was negative 0.6% for the third quarter of 2026, compared with 5.0% for the third quarter of 2025. Of note, reported results for the third quarter of 2026 included adjusting items of $36.0 million ($26.4 million after income taxes), or $0.59 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 10 of the Bank's MD&A for additional information. Adjusted net income(2) was $28.0 million and adjusted diluted earnings per share(1) were $0.51 for the third quarter of 2026, compared with $39.6 million and $0.78 for the third quarter of 2025. Adjusted return on common shareholders' equity(1) was 3.6% for the third quarter of 2026, compared with 5.4% for the third quarter of 2025. For the nine months ended July 31, 2026, Laurentian Bank of Canada reported a net loss of $39.5 million and a diluted loss per share of $1.16, compared with net income of $108.4 million and diluted earnings per share of $2.17 for the nine months ended July 31, 2025. Return on common shareholders' equity(1) was negative 2.8% for the nine months ended July 31, 2026, compared with 5.1% for the nine months ended July 31, 2025. Of note, reported results for the nine months ended July 31, 2026 included adjusting items of $169.2 million ($124.4 million after income taxes), or $2.78 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 10 of the Bank's MD&A for additional information. Adjusted net income(2) was $84.9 million and adjusted diluted earnings per share(1) were $1.62 for the nine months ended July 31, 2026, compared with $113.0 million and $2.28 for the nine months ended July 31, 2025. Adjusted return on common shareholders' equity(1) was 3.9% for the nine months ended July 31, 2026, compared with 5.3% for the same period one year ago. "This quarter reflects the significant work of our teams over the past several months to advance Laurentian Bank's transformation," said Ã%ric Provost, President and Chief Executive Officer of Laurentian Bank of Canada. "As our commercial specializations continue to deliver solid growth and we move closer to completing our transactions with Fairstone Bank and National Bank, we remain focused on executing our plans responsibly and supporting our customers and stakeholders through this next phase of our transformation." For the three months ended For the nine months ended In millions of dollars, except pe July 31, July 31, Variance July 31, July 31, Variance r share and percentage amounts(Unaudited) 2026 2025 2026 2025 Reported basis Net income (loss) $ 1.5 $ 37.5 (96) % $ (39.5) $ 108.4 n.m. Diluted earnings (loss) per share $ (0.08) $ 0.73 n.m. $ (1.16) $ 2.17 n.m. Return on common shareholders' equity(1) (0.6) % 5.0 % (2.8) % 5.1 % Efficiency ratio(3) 91.0 % 76.9 % 100.0 % 76.0 % Common Equity Tier 1 (CET1) capital ratio(4) 11.2 % 11.3 % 11.2 % 11.3 % Adjusted basis Adjusted net income(2) $ 28.0 $ 39.6 (29) % $ 84.9 $ 113.0 (25) % Adjusted diluted earnings per share(1) $ 0.51 $ 0.78 (35) % $ 1.62 $ 2.28 (29) % Adjusted return on common shareholders' equity(1) 3.6 % 5.4 % 3.9 % 5.3 % Adjusted efficiency ratio(1) 76.1 % 75.7 % 76.8 % 75.1 % (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 Third Quarter 2026 Report to Shareholders, including the Management's Discussion & Analysis (MD&A) for the period ended July 31, 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 Third Quarter 2026 Report to Shareholders, including the MD&A for the period ended July 31, 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 Third Quarter 2026 Report to Shareholders, including the MD&A for the period ended July 31, 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 nine months ended In thousands of dollars (Unaudited) July 31 April 30 July 31 July 31 July 31 2026 2026 2025 2026 2025 Total revenue $ 241,734 $ 213,655 $ 246,809 $ 706,944 $ 738,962 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 $ 241,734 $ 236,163 $ 246,809 $ 729,452 $ 738,087 Non-interest expenses $ 219,913 $ 219,492 $ 189,759 $ 706,779 $ 561,250 Less: Adjusting items, before income taxes Restructuring and other impairment charges(3) 27,535 31,216 2,909 119,961 7,158 Transaction and conversion costs(4) 8,432 5,067 -- 24,514 -- Net loss on the settlement of -- -- -- 2,214 -- pension plans resulting from annuitypurchases(5) 35,967 58,791 2,909 146,689 7,158 Adjusted non-interest expenses $ 183,946 $ 183,209 $ 186,850 $ 560,090 $ 554,092 Income (loss) before income taxes $ (3,748) $ (32,709) $ 45,922 $ (68,779) $ 134,716 Adjusting items, before income taxes (detailed above) 35,967 58,791 2,909 169,197 6,283 Adjusted income before income taxes $ 32,219 $ 26,082 $ 48,831 $ 100,418 $ 140,999 Reported net income (loss) $ 1,547 $ (20,587) $ 37,463 $ (39,537) $ 108,393 Adjusting items, net of income taxes Net loss on the Syndicated Loan Transaction(1) -- 16,550 -- 16,550 -- Profit on sale of assets under administration(2) -- -- -- -- (643) Restructuring and other impairment charges(3) 20,247 22,951 2,141 88,205 5,264