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Laurentian Bank of Canada LB-T has concluded a lengthy strategic review on Thursday without finding a buyer for the country’s ninth largest lender, and announced plans to simplify its structure to boost profits.

Montreal-based Laurentian Bank ended a months-long search for an acquirer, saying that it will continue with an accelerated version of the turnaround plan that it set out on nearly two years ago. The bank also shuffled its senior leadership team as part of a simplification strategy, with two senior executives leaving the lender, and said that it it plans to unveil a revised strategic plan early next year.

“Having now completed this review of our strategic options, we are more confident than ever in Laurentian Bank’s strong positioning in the market and unique offering for our customers,” chief executive officer Rania Llewellyn said in a statement. “As we continue to evolve our bank, our executive management team and all employees will build on our proven track record of executing against our plan and delivering meaningful results for our customers, shareholders, and stakeholders.”

Laurentian’s share price dropped by 10 per cent early Thursday to $32 on news the review had concluded without the bank striking a deal that would see a rival lender pay a premium price. In July, when The Globe and Mail first reported the bank had launched a strategic review, Laurentian stock traded at $43.

“We are unsure at this that focusing on efficiency and simplification to drive growth will be enough to placate the market,” Barclays analyst John Aiken said in a note to clients.

On Thursday, Laurentian announced head of personal banking Karine Abgrall-Teslyk and executive vice president of operations Yves Denommé have stepped down. To fill those positions, the bank expanded the mandates of two executives.

Éric Provost, currently head of commercial banking, will take on the role of group head overseeing personal and commercial banking. Chief human resources officer Sébastien Bélair is taking on the position of chief administrative officer officer, adding the bank’s operations unit to his current role.

Laurentian launched a strategic review in the spring of 2022, hiring investment bank JPMorgan Chase & Co. as its advisor. Initially, Laurentian focused on expanding through acquisition of a niche finance business in sectors such as commercial lending or potentially merging with another financial institution, according to sources familiar with the process. The Globe and Mail is not identifying these sources because they are not authorized to speak for the bank.

When Laurentian’s stock price dropped earlier this year following the release of financial results that fell short of analysts’ expectations, JP Morgan’s mandate expanded to include the potential sale of the bank.

Scotiabank analyst Meny Grauman said that the sales process ending without a buyer was largely expected. Laurentian’s share price has slumped in recent weeks, hovering just above levels before the potential sale was revealed.

“We view this announcement as neutral because over the past few weeks it has largely become the consensus view, and is now almost fully reflected in the shares current valuation,” he said in a note to clients.

Laurentian’s stock price is currently approximately 60 per cent of the bank’s book value. If a buyer had stepped forward, analysts predicted the bank would fetch is book value of about $2-billion.

The country’s ninth-largest bank had launched the review earlier this year seeking to bolster shareholder returns and had said at the time it was “exceeding” its financial targets in an increasingly challenging macroeconomic environment.

However, later that month, The Globe reported that Montreal-based Laurentian was struggling to find an acquirer and that two banks considered the top contenders – Bank of Nova Scotia BNS-T and Toronto-Dominion Bank TD-T – had backed out of a potential acquisition.

Laurentian Bank faces tepid interest as bid deadline approaches

Laurentian said it considered a variety of options through the review process, including an acquisition of the whole bank and divesting certain businesses.

The bank had also laid out a three-year turnaround plan in late 2021 to streamline operations and boost profits, which it has said is on track. The plan includes buildings its digital platforms, growing its commercial banking unit and focusing on niche businesses.