BMO has announced plans to optimize its U.S. branch network by selling 138 branches to First-Citizens Bank & Trust Company. The affected branches are located in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, Idaho, select areas in western Minnesota, one in eastern Oregon, and one in southern Illinois. The transaction is expected to close in mid-2026, pending regulatory approvals and customary closing conditions.
In conjunction with the sale, BMO intends to open 150 new branches over the next five years, focusing primarily on California and other core markets. The goal is to strengthen the bank’s presence in areas with high client engagement and long-term growth prospects.
Aron Levine, President of BMO U.S., stated, "We're sharpening our focus on markets with the greatest potential for long-term growth. This reallocation allows us to deepen client relationships and deliver the full power of BMO to our clients. Our branches play a vital role in that journey; they're much more than buildings. They're financial advice centers and community hubs where relationships are built, personalized guidance is given, and clients are supported in achieving their goals, all to help them make real financial progress."
Under the agreement, First Citizens Bank will assume approximately $5.7 billion in deposits and purchase about $1.1 billion in loans. BMO will receive a net deposit premium of roughly 5 percent at closing. The bank expects to record a goodwill charge of approximately US$75 million (CAD$104 million) and a tax expense of about US$85 million (CAD$117 million) in the fourth quarter of 2025. The impact on BMO’s Common Equity Tier 1 (CET1) ratio is anticipated to be minimal. These figures are subject to adjustments at closing.
BMO has advised customers that they should continue to use their existing banking services until the transaction is finalized. The bank is working with First Citizens Bank to ensure a smooth transition for those affected.
BMO Capital Markets and Piper Sandler & Co. served as financial advisors to BMO, while Godfrey & Khan, S.C. acted as legal counsel. Arnold & Porter Kaye Scholer LLP and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. represented First Citizens Bank.
BMO Financial Group is the seventh largest bank in North America by assets, with $1.4 trillion in assets as of July 31, 2025. The bank serves 13 million customers across Canada, the United States, and select global markets.