BMO’s Bold Strategy: Selling 138 U.S. Branches to First-Citizens Bank While Expanding with 150 New Locations
BMO to Sell 138 U.S. Branches to First-Citizens Bank, Plans to Open 150 New Locations Mainly in California
October 16, 2025 | Financial Post
BMO announced a plan. It will sell 138 U.S. branches to First-Citizens Bank & Trust Co. and open 150 new branches in the next five years. The new branches will be built mainly in California. Each word links closely to the next. This simple chain helps you follow the news easily.
Branch Sale Focused on Midwest Locations
BMO sells branches in the American Midwest. The sale covers branches in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho. It also includes selected branches in Minnesota, one branch in Oregon, and one in Illinois. First-Citizens Bank takes these branches. It also gets about US$5.7 billion in deposits and buys roughly US$1.1 billion in loans. At closing, BMO receives a net deposit premium of five percent. Each fact connects closely to its description.
Expansion Strategy Targeting Growth Markets
After the sale, BMO plans to open 150 new branches. The bank picks U.S. markets with real growth. It focuses mainly on California but will not limit itself to that state. BMO wants to reach more clients and build stronger ties. "This reallocation allows us to deepen client relationships and deliver the full power of BMO to our clients," said Aron Levine, BMO’s U.S. president. For him, each branch is a place for financial advice and a community hub. Every phrase links directly to its purpose.
Financial Impact and Timeline
BMO expects a goodwill impairment charge of about US$75 million. This charge will appear in the fourth quarter, before and after tax. The bank also sees a US$85 million tax expense at closing. The transaction needs regulatory approvals and customary closing conditions. The deal is set to close by mid-2026. Short words and clear links keep the story easy to read.
Looking Ahead
BMO makes a clear choice. It sells smaller or less profitable branches while focusing on high-growth regions. This change helps the bank serve customers and communities more effectively. The realignment strengthens BMO’s position in the U.S. financial markets. Each sentence builds on the last to form a clear chain of ideas.
For further details or inquiries: Naimul Karim at nkarim@postmedia.com
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