CALIFORNIA — Bank of Montreal (BMO) announced on October 16 that it is selling 138 branches to First Citizens Bank while opening 150 new branches in growth markets, especially in California.
The branches being sold are in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho, as well as select branches in western Minnesota, one branch in eastern Oregon, and one branch in southern Illinois.
Under the agreement, First Citizens Bank will take over about $5.7 billion in deposits and $1.1 billion in loans, paying a 5% premium when the deal closes.
BMO said it plans to open 150 new branches over the next five years, focusing on U.S. markets where it can build density and leverage its Personal and Business Banking, Commercial Banking, and Wealth Management services.
The expansion will be California‑centric, but not limited to the state.
BMO acquired 500 Bank of the West locations
BMO president Aron Levine said the company is sharpening its focus on markets with the greatest potential for long-term growth.
The bank already absorbed California-based Bank of the West in 2023, which bolstered BMO’s presence along the West Coast. The acquisition added nearly 1.8 million customers and more than 500 branches and offices, expanding its presence in key U.S. growth markets.
“This reallocation allows us to deepen client relationships and deliver the full power of BMO to our clients,” Levine said about the sale and expansion plans.
The upcoming sale is expected to be finalized in mid-2026, pending regulatory approvals.
California market has strong growth potential
BMO is doubling down on California, targeting markets with strong growth potential and high customer concentration.
By closing lower-density branches and reinvesting in key locations, the bank is following a broader trend of streamlining networks while focusing on long-term returns.
 announced on October 16 that it is selling 138 branches to First Citizens Bank while opening 150 new branches in growth markets, especially in California. ){kind=link}