First Citizens Bank is acquiring 138 branches from BMO in a deal that continues its aggressive expansion while allowing BMO to pivot its U.S. strategy, as first reported by Banking Dive. The purchase includes about $5.7 billion in deposits and $1.1 billion in loans.
Shopping spree continues: The move builds on First Citizens' aggressive expansion, which kicked off with its 2023 takeover of Silicon Valley Bank. For the bank, the added deposits boost liquidity and provide flexibility for other strategic moves. "We are enthusiastic about this opportunity to expand into new markets," said First Citizens CEO Frank B. Holding Jr.
Trimming the map: For BMO, the sale is a strategic retreat after its $16.3 billion purchase of Bank of the West in 2023 proved less profitable than expected. The bank is offloading branches across the Midwest and Great Plains to "sharpen our focus on markets with the greatest potential for long-term growth," according to Aron Levine, President of BMO U.S.
While shedding branches, BMO plans to reinvest by opening 150 new, California-centric branches over the next five years. In a market full of complex bank mergers, the deal stands out as a straightforward branch-only play, a rarity in the current M&A wave. The deal shows two major banks aggressively optimizing their physical footprints for different goals—one chasing national scale, the other doubling down on high-growth regions.
