BMO Financial Group has announced the successful completion of its sale of 138 branches located in the United States to First-Citizens Bank & Trust Co. This strategic move aligns with BMO's ongoing efforts to optimize its U.S. banking network, focusing on regions with promising long-term growth potential.

The branches involved in the transaction are situated across several states, including North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho. Additionally, select branches in Minnesota, Oregon, and Illinois are also part of this sale.

The announcement of this sale first came to light in October of the previous year, when BMO also unveiled plans to open 150 new branches over the next five years. The primary focus of this expansion is California, although BMO has indicated that it does not intend to limit its growth to this state alone.

In line with its expansion strategy, BMO plans to open seven new branches in 2026 within the Greater Los Angeles area, the Bay Area, and San Diego.

According to the terms of the sale, First Citizens Bank will be assuming approximately US$5.7 billion in deposits and will purchase about US$1.1 billion in loans, positioning itself as a key player in the market subsequently.

This strategic divestiture by BMO underscores its commitment to streamline operations and enhance its presence in markets that demonstrate a greater potential for growth while simultaneously facilitating First Citizens Bank's expansion in the U.S. banking landscape.