10:24 AM EDT, 08/30/2024 (MT Newswires) -- (The headline in an earlier story incorrectly stated that CWB's Q3 adjusted profit fell but beat forecasts. And the text of the story incorrectly stated the same. A corrected version follows.)

Canadian Western Bank ( CWESF ) reported a lower third quarter adjusted profit that missed analysts' expectations, even as revenue rose slightly and beat forecast.

The bank, which is being acquired by National Bank (NA.TO), said third quarter adjusted profit, which excludes costs associated with the transaction, fell by a third to $57.8 million, or $0.60 per adjusted share, compared with $84.4 million, or $0.88 per share, last year. The result missed a consensus forecast at Capital IQ of $0.85 per adjusted share.

Total revenue rose 5% to $298.5 million, above a consensus forecast $295.87 million.

The provision for credit losses on total loans was 33 basis points higher than last quarter.

"Our third quarter performance was negatively impacted by a significant increase in the provision for credit losses on impaired loans," said CEO Chris Fowler. "The increase primarily related to two loans where borrower-specific circumstances resulted in unusually large provisions for these specific exposures. We anticipate credit losses will trend back towards our normal historical range next quarter."

The board declared a cash dividend of $0.35 per common share.

CWB expects the National Bank transaction to close next year.

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