Laurentian Bank of Canada logged a lower profit in the third quarter as transformation costs weighed on performance ahead of its planned acquisition and split-up later this year.

The Canadian lender on Friday posted a decline in net income to 1.5 million Canadian dollars ($1.1 million), down from C$37.5 million in the comparable quarter a year ago.

On a per-share basis, however, the company swung to a loss of C$0.08 a share from a profit of C$0.73 a share.

The decline was largely due to costs related to its pivot to a specialty commercial banking model and a sale.

In December, Laurentian Bank agreed to a dual sale, splitting its business between alternative lender Fairstone Bank of Canada, which is acquiring all its common shares and keeping its commercial business, while National Bank of Canada acquires its retail and small-business portfolios.

Adjusted earnings, which exclude one-off costs and exceptional items, came to C$0.51 a share, missing analysts expectations of C$0.63 a share, according to FactSet.

Total revenue fell 2% to C$241.7 million.

Net interest income edged up 2% to C$189.5 million.

Provision for credit losses, which measures the money put aside to cover potentially riskier loans more than doubled in the quarter to C$25.6 million, up from C$11.1 million a year earlier.