BMO Finalizes Sale of 138 U.S. Branches to First Citizens Bank

BMO Financial Group has finalized the sale of 138 branches across the United States to First-Citizens Bank & Trust Company. This divestment marks a significant shift in BMO’s American footprint, signaling a strategic move to exit several Midwestern and Western states to focus resources on high-engagement markets with greater long-term growth potential.

What was announced

The transaction involves a substantial transfer of physical infrastructure and customer accounts across 11 states. Specifically, the branches included in the sale are located in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho. Additionally, the deal encompasses select locations within Minnesota, Oregon, and Illinois. By offloading these 138 branches, BMO is executing a strategy to optimize its U.S. financial center network and streamline its operational overhead in regions that may not align with its current growth trajectory.

The move allows the Canadian-headquartered institution to redeploy capital and resources toward markets that demonstrate stronger client engagement. For First-Citizens Bank & Trust Company, the acquisition represents a significant expansion of its physical presence in several regions where BMO is scaling back. BMO Financial Group remains a heavyweight in the North American banking sector, maintaining its position as the eighth-largest bank on the continent by assets. As of July 31, 2026, the group reported total assets of $1.5 trillion. The bank has a history spanning over 200 years, providing a suite of services including personal and commercial banking, wealth management, global markets, and investment banking across Canada, the United States, and other international markets.

"The transaction supports BMO's strategy to optimize its U.S. financial center network and redeploy capital and resources to markets with strong client engagement and long-term growth potential."

BMO Financial Group

The companies involved

BMO Financial Group is a major North American financial services provider with a significant presence in both Canada and the United States. Operating under the ticker BMO on both the Toronto and New York Stock Exchanges, the institution has evolved over two centuries into a diversified financial giant. Its operations are divided into several key pillars, including retail banking and sophisticated global markets divisions. The bank's recent focus has been on balancing its expansive North American footprint with the need for digital transformation and capital efficiency, ensuring that its physical network remains a driver of value rather than a legacy cost.

First-Citizens Bank & Trust Company, the purchaser in this transaction, is the primary subsidiary of First Citizens BancShares. The bank has established itself as a frequent acquirer in the U.S. banking market, often absorbing regional footprints to bolster its national scale. Based in Raleigh, North Carolina, First Citizens has a long history and has grown from a local lender into one of the largest family-controlled banks in the United States. This acquisition of 138 branches further cements its role as a consolidator of traditional retail banking assets across the American heartland and the West, expanding its reach into several new state markets.

What FF News has reported before

FF News has closely followed BMO’s efforts to modernize its service offerings and integrate emerging technologies into its global operations. In early 2025, the bank made headlines when BMO Joins IBM Quantum Network to Accelerate Innovation of Financial Services, a move aimed at exploring the future of financial modeling and risk assessment. Later that year, the institution focused on its cross-border capabilities, as Mastercard and BMO Expand Global Money Transfer Service to Nearly 70 Destinations. These initiatives highlight a broader trend within the group to prioritize digital-first services and global connectivity over maintaining an exhaustive physical branch network in every geographic region where it operates.

What this means

This divestment reflects a broader industry trend where "super-regional" and global banks are moving away from the "branch on every corner" model in favor of concentrated hubs and digital dominance. By exiting 138 locations, BMO is effectively acknowledging that physical density in states like Wyoming or North Dakota is no longer a prerequisite for competitive success in the modern fintech era. This puts pressure on other mid-tier regional banks to justify their own brick-and-mortar overhead. The question for the sector is whether the capital freed up by such sales will be enough to outpace the digital-native competitors who never carried the weight of a physical network to begin with.