BMO to sell dozens of U.S. branches to First Citizens Bank & Trust

BMO is selling 138 branches across the Midwest to Raleigh, N.C.-based large regional First-Citizens Bank & Trust Company. The deal, which is expected to close in mid-2026, includes branches in the Dakotas, Wyoming, Nebraska, Kansas, Missouri, Oklahoma and Idaho along with Minnesota, Oregon and Illinois..The sale is part of BMO’s plan to focus on U.S. markets it sees as having strong client engagement and long-term growth potential. The large regional bank plans to open 150 new branches, concentrating on California while growing in other markets with high potential. Under the deal, the nearly $230 billion First Citizens will assume approximately $5.7 billion in deposits and $1.1 billion in loans, paying a net deposit premium of about 5 percent. BMO expects to record a goodwill charge of $75 million and a related tax expense of $85 million. Aron Levine, president of BMO U.S., emphasized that branches are “financial advice centers and community hubs” and that the strategy will allow BMO to deepen client relationships and deliver integrated banking services at scale. Customers can continue using existing accounts and branches until the transition is complete.BMO was advised by BMO Capital Markets, Minneapolis-based Piper Sandler & Co., and Milwaukee-based legal counsel Godfrey & Khan, S.C., while First Citizens was advised by Washington, D.C.-based law firm Arnold & Porter Kaye Scholer and Raleigh-based law firm Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan.