After Fairstone Bank’s $1.9-billion purchase of Laurentian Bank’s commercial operations closes, expected in late 2026, it will keep employees on for at least 12 months, according to a Laurentian proxy circular published last week.
Laurentian announced in December it’s being split up and sold, with its commercial operations going to Fairstone and National Bank of Canada buying its retail and small business segment for roughly book value.
Laurentian’s circular said Fairstone will provide commercial operations employees with base salary, annual bonus opportunities, retirement savings arrangements and benefits for at least one year. However, cash compensation may be used in lieu of existing equity compensation programs.
Until the deal closes, Laurentian will still be responsible for closing its retail branches and letting go of employees. The bank has roughly 2,700 employees.
“We expect approximately 700 positions within Laurentian Bank’s retail banking, SME banking and syndicated loan businesses to be impacted as a result of our exit from these sectors,” Laurentian told Investment Executive in an email.
Laurentian’s 57 branches won’t be transferred over to National Bank.
“At conversion, all branches of Laurentian Bank located in Quebec will be closed by Laurentian Bank,” it said.
While affected retail employees can apply for open roles at National Bank, there’s no information yet on the number of roles that will be available for those staff members, Laurentian said.
According to National Bank’s careers website, there are about 300 open roles, with 62 of them in wealth management.