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??

By comparison, the U.S. has over 4,000 banks, FDIC-insured institutions. In Canada, we already have very few banks, and now they seem to be disappearing one after another.

KamWest said
Simplii is going away in the future, you can almost count on it. If you look closely they wont give you notifications on credit card transactions and they silently keep removing features.

I have a friend that works at CIBC and she tells me they on purpose changed the marketing to appeal to the younger crowd and not the older crowd. The unusual thing is they will give an 18 year old student (my son) a CIBC credit card but reject him for a simplii card.

The push to CIBC is already on and from what I heard they want to be more like RBC which has only one digital footprint. The banks used to separate it but you will find more and more of the big banks ditching the digital only part because they are also transitioning their main brand to digital only.

If I was a betting man I would say Tangerine will also get dropped at one point.  

Tangerine and Simplii Financial are here to stay.

The one that might go away, or get gobbled up, is Neo Financial.

Alterna Bank serves a niche clientele for Alterna Savings, allowing for geographic and business line diversification. They have shared systems and personnel, resulting in few added costs.

MAXA Financial will disappear into Outlook Financial eventually, following Assiniboine's gobbling up of Westoba (MAXA).

Peoples Bank and Peoples Trust also serve a niche clientele, so I see them sticking around.

The one I could see disappearing, actually, is Oaken Financial, particularly if EQB does a deal with Smith Financial that sees its direct banking book of business absorbed into EQ Bank, perhaps as part of a partial share exchange. Or EQB may just acquire all of Fairstone Bank at some point.

Manulife Bank's future also looks glim.

Cheers,
Doug

doug said

The digital banking space is solidifying around four main competitors, being Tangerine, Wealthsimple, EQ Bank (including PC Financial), and Simplii Financial.

Simplii is going away in the future, you can almost count on it. If you look closely they wont give you notifications on credit card transactions and they silently keep removing features.

I have a friend that works at CIBC and she tells me they on purpose changed the marketing to appeal to the younger crowd and not the older crowd. The unusual thing is they will give an 18 year old student (my son) a CIBC credit card but reject him for a simplii card.

The push to CIBC is already on and from what I heard they want to be more like RBC which has only one digital footprint. The banks used to separate it but you will find more and more of the big banks ditching the digital only part because they are also transitioning their main brand to digital only.

If I was a betting man I would say Tangerine will also get dropped at one point.

AltaRed said
I suspect some other niche players will fold in the not too distant future. CT Bank, its credit card and points system is almost a mirror image of PC Financial and would be an obvious one for EQ Bank to acquire too.

Maybe, but Canadian Tire Bank is even larger than President's Choice Bank (though not by much). Scotiabank sold its 20% interest for $500 million less than two years ago. I suspect Canadian Tire is more likely to retain their banking subsidiary, but I could see them ditching the direct-to-consumer CT Bank GICs and HISAs, focusing on Triangle credit cards, Roadside Assistance, and insurance reselling.

Not quite the same but what is a motor association doing with a bank subsidiary (Bridgewater with about $3B of assets)? Never mind some of the other fringe Schedule 1 brain pharts still out there.  

Yes, completely agree. I suspect Bridgewater Bank is the lowest ranked bank that CDIC watches closely. They're heavily into subprime mortgage and auto loans, with higher than average delinquency rates. AMA also is very stubborn and not transparent; they refuse to release their audited financials, even to their own members unless you meet them at their head office in Calgary and examine a paper copy under a watchful eye of a security person.

Cheers,
Doug

Not quite the same but what is a motor association doing with a bank subsidiary (Bridgewater with about $3B of assets)? Never mind some of the other fringe Schedule 1 brain pharts still out there.

KamWest said
Here we go again, I figured LBC and B2B would merge into one instead they were both eaten up by Fairstone Bank.

Bets on how long before LBC & B2B brands disappear?  

LBC Digital will almost certainly disappear. While Fairstone Bank is acquiring B2B Bank, which also operated under the LBC Digital brand for consumer digital banking services through the B2B Bank advisor network, Laurentian Bank LBC Digital customers will be absorbed by National Bank in much the same way as Motive Financial customers being absorbed by National Bank.

The digital banking space is solidifying around four main competitors, being Tangerine, Wealthsimple, EQ Bank (including PC Financial), and Simplii Financial.

Alterna Bank and 1Q will likely still continue to operate as niche players.

Cheers,
Doug

AltaRed said

. . .

Added: With the number of recent consolidations, it would appear that dealing with a 2nd order, or 3rd order, entity (fringe player bank or CU) is fraught with this kind of turmoil.

The Smaller they are, the Easier they Fall.

Dean

Added: With the number of recent consolidations, it would appear that dealing with a 2nd order, or 3rd order, entity (fringe player bank or CU) is fraught with this kind of turmoil.

Miked said
Fairstone to acquire "commercial banking activities"

& National to acquire "retail banking activities"

https://www.laurentianbank.ca/.....cement.pdf

Dean said
.
No pay-wall here . . .

➡️ https://www.bnnbloomberg.ca/bu.....onal-bank/

.
FB & NBoC eat up More❗

Dean

  

I cancelled my Motive accounts before the migration to National. But I guess I will not be able to avoid National Bank now as I have long-term GICs with Laurentian and B2B Bank.