On October 16, 2025, BMO announced a definitive agreement to sell 138 of its U.S. branches to First‑Citizens Bank & Trust Company. The branches are located in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, Idaho, select western Minnesota, one in eastern Oregon, and one in southern Illinois, covering 11 states.
Under the terms of the agreement, First‑Citizens will assume approximately $5.7 billion in deposits and acquire about $1.1 billion in loans, generating a net deposit premium of roughly 5 %. BMO will record a goodwill charge of about US$75 million (CAD$104 million) and a tax expense of approximately US$85 million (CAD$117 million), with no material impact on its Common Equity Tier 1 ratio.
Strategically, the divestiture allows BMO to concentrate its U.S. presence on high‑growth markets and densify its branch network. The bank plans to open 150 new branches over the next five years, primarily in California, to support Personal and Business Banking, Commercial Banking, and Wealth Management services.
The transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close in mid‑2026. Until closing, BMO customers will continue to use existing branches and online services without interruption.
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