Fairstone Bank to acquire Laurentian Bank on November 1.

Laurentian Bank isn't disappearing like Canadian Western Bank did. Fairstone is only buying up all the common shares of Laurentian Bank. The Laurentian Bank preferred shares will still be listed and trade publicly.

What happens to coverage if two CDIC members merge?

If two or more CDIC member institutions amalgamate, insured deposits made at each institution before the amalgamation continue to be insured separately up to $100,000 per depositor per category, as if the institutions had not amalgamated. The amount of separate coverage is reduced by any withdrawals made from those separate deposits, or as term deposits mature (or are redeemed). Coverage with respect to any deposits made with the entity that resulted from the amalgamation depends on the aggregate volume of the deposits you made at the institutions before they amalgamated.

If your existing deposits (i.e., the sum of deposits you had with the entities immediately prior to the amalgamation) add up to a total of $100,000 or more, any new deposits you make at the institution after amalgamation will exceed the $100,000 maximum, so they will not be insured by CDIC.

If your existing deposits add up to a total of less than $100,000, any new eligible deposits you make at the amalgamated institution will be added to those previous deposits, and the total will be insured to a maximum of $100,000.

still wondering what this means once Fairstone eventually takes over LBC Digital hisa & gic's.. will it be treated as a "3rd branch of Oaken" (HomeBank & HomeTrust being other two) or will it be also be closed/merged? what of existing gic's? if they keep it open will this result in an other cdic umbrella coverage? guess we need to wait and see

LBC Digital chequing accounts will be closed September 30, 2026. Any debit cards associated with the accounts will also be deactivated then.

The LBC Digital HISA will remain open.

The completion of the acquisition transaction between Laurentian Bank and Fairstone Bank is subject to the satisfaction of other closing conditions, including the closing of the acquisition by National Bank of Laurentian Bank's retail and SME banking portfolios. …

Once the remaining approvals are received, Laurentian Bank will sell its branch personal banking and its branch SME banking businesses to National Bank. That won't include LBC Digital.

Then, Fairstone will pay for and acquire all the common shares of Laurentian Bank.

It now looks like Laurentian Bank will sell only its branch personal banking and its branch SME banking businesses to National Bank.

Impacted lines of business.

Personal and SME banking will transfer to National Bank   Accounts Credit cards Mortgages Lending Investments Banking services

Sectors remaining at Laurentian Bank     Commercial real estate financing Northpoint Commercial Finance B2B Bank Capital markets LBC Digital

COIN said

Wonder how much of the money paid by National Bank to Laurentian Bank will flow to the LB shareholders?  

None. Fairstone has already detailed what they will pay Laurentian Bank common shareholders and most bond and debenture holders. $40.50 per common share, paid in cash. The National Bank loan and deposit book carve-out purchase will occur immediately prior to the closure of the sale of Laurentian to Fairstone. On that basis, it's a more generous offer than even I expected, considering the bulk of Laurentian's banking business is going to National Bank.

Note that Laurentian Bank will remain a reporting issuer in Canada as Fairstone is not buying Laurentian's preferred shares. It will continue to have to published audited financial statements annually. Laurentian could be a future vehicle for return to public markets, if Fairstone, Home, and Laurentian effect a reverse merger, share swap, and likely name change to Fairstone.

Norman1 said
National Bank is paying Laurentian Bank, not the shareholders of Laurentian Bank, for the retail and SME banking portfolios.  

Wonder how much of the money paid by National Bank to Laurentian Bank will flow to the LB shareholders?

Does this mean LB shareholders can expect money from National Bank in addition to the $40.50 per share from Fairstone??