The banking giant is shifting its US focus to California
BMO Financial Group has agreed to sell 138 of its United States branches to First-Citizens Bank & Trust Co. The deal, which is expected to close by mid-2026 pending regulatory approvals, will see First Citizens assume approximately $5.7 billion USD in deposits and $1.1 billion USD in loans.
The branches changing hands are spread across North Dakota, South Dakota, Nebraska, Kansas, Missouri, Wyoming, Oklahoma, western Minnesota, eastern Oregon, southern Illinois, and Idaho.
Many of these locations were acquired by BMO through its 2023 purchase of Bank of the West, a $13.4 billion USD deal that expanded BMO’s reach in the United States.
“We’re sharpening our focus on markets with the greatest potential for long-term growth,” Aron Levine, president of BMO US, said.
“This reallocation allows us to deepen client relationships and deliver the full power of BMO to our clients.”
Levine added that the move is part of a broader strategy to optimize the branch network and invest in markets with higher growth potential.
First Citizens Bank, headquartered in Raleigh, North Carolina, has also been on an expansion drive. “We are enthusiastic about this opportunity to expand into new markets and offer our client-centered approach in even more regions,” Frank Holding, Jr., chairman and CEO of First Citizens, said.
“This deposit franchise is solid, and we look forward to serving individuals and business clients in these areas.”
Hope Holding Bryant, vice chairwoman, emphasized the bank’s commitment to “bringing high-touch service, banking products and deep sector expertise to clients and communities nationwide.”
BMO, meanwhile, plans to open 150 new branches over the next five years, with a particular emphasis on California. The bank said it aims to achieve “critical mass” in new markets across retail, commercial banking, and wealth management.
BMO first announced plans to sell branches in September. It’s common for banks to close or sell branches after acquisitions. This approach reflects a broader trend in North American banking, where institutions are consolidating or divesting traditional branches in favor of digital services and targeted regional growth.
The sale is expected to result in a goodwill-related charge of about $104 million CAD in BMO’s fourth quarter and a tax charge of about $117 million CAD at closing.
Both BMO and First Citizens have engaged prominent advisors for the transaction, including BMO Capital Markets, Piper Sandler & Co., Arnold & Porter, and Smith Anderson.
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