Fairstone Bank of Canada Announces Successful Closing of $400 Million Deposit Note Offering

TORONTO and MONTREAL, Feb. 23, 2026 /CNW/ - Fairstone Bank of Canada ("Fairstone Bank" or the "Bank") today announced the successful closing of a public $400 million three‑year senior deposit note offering (the "Notes"), underscoring strong and growing investor confidence in the Bank's credit profile and funding strategy.

The offering attracted strong institutional demand, generating an order book of approximately $1.1 billion from 33 investors--including 13 participating in the Bank's deposit note program for the first time--representing an oversubscription of nearly three times. Originally launched with a minimum size of $300 million, the transaction was upsized to $400 million, exceeding the Bank's inaugural $250 million issuance completed in September 2025. The depth of demand enabled Fairstone Bank to price the Notes at the tight end of the marketed range, at a spread of 102 basis points over Government of Canada bonds, representing a -3bps new issue concession --one of the tightest levels achieved by a BBB‑rated non‑DSIB bank for a three‑year fixed‑rate offering in the Canadian market. The final pricing reflects a material tightening versus the Bank's prior issuance and further convergence with established Canadian bank peers.

The Notes, issued at par, bear a fixed coupon of 3.618%, are payable semi‑annually, and mature on February 23, 2029.

"This transaction reflects the continued momentum we are building in the capital markets and the confidence investors have in Fairstone Bank's credit fundamentals and long‑term strategy," said Amir Gorgi, Executive Vice President and Chief Financial Officer of Fairstone Bank of Canada. "The strong participation, including meaningful engagement from new institutional investors, validates our disciplined approach to balance sheet management and our commitment to building a diversified and resilient funding platform."

Strengthening Fairstone Bank's Public Credit Profile
The successful closing follows a series of important milestones for Fairstone Bank, including the establishment of its public credit ratings and the successful completion of its combination with Home Trust. In 2025, Morningstar DBRS assigned Fairstone Bank a BBB Long-Term Issuer Rating with a Stable trend, which is currently under review with positive implications following the Laurentian Bank acquisition announcement. More recently, Moody's Ratings assigned the Bank a Baa2 Long‑Term Issuer Rating with a stable outlook.

"These inaugural public credit ratings represent a significant step forward in the evolution of Fairstone Bank," added Mr. Gorgi. "They reflect the progress we have made in strengthening our franchise, expanding and reshaping our portfolio, and maintaining strong capitalization as we continue to scale the Bank."

The issuance was executed through an agency syndicate consisting of National Bank Financial Inc. and CIBC World Markets Inc. acting as joint bookrunners, and BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., Desjardins Securities Inc., and Laurentian Bank Securities Inc. acting as co‑managers.

The Notes are senior unsecured obligations of the Bank ranking equally and rateably with all present and future unsecured and unsubordinated liabilities of the Bank (including deposit liabilities), except as otherwise prescribed by law. The Notes are not deposits insured under the Canada Deposit Insurance Corporation Act.

About Fairstone Bank of Canada
Fairstone Bank of Canada and its subsidiaries, including Fairstone Financial Inc. and Home Trust Company, deliver innovative, accessible and reliable financial solutions that enable Canadians to reach their financial goals. Collectively, we offer residential and commercial mortgages, consumer deposits and GICs, retail and automobile financing, credit cards and digital lending, in addition to unsecured and secured personal loans online and at more than 260 branches coast to coast. With a long-established history, we are proud to be Canada's leading alternative lending bank. Learn more at FairstoneBank.ca.

SOURCE Fairstone Financial Inc.

Investor contact: Stéphanie Boutin, Vice President, Capital Markets and Funding, [email protected], [phone] ext.: 6302410; Media Contact: Caroline Morin, Vice President, Corporate Communications, [email protected], [phone]