BMO, the Canadian banking giant whose U.S. operations are headquartered in Chicago, has agreed to sell 138 branches in 11 states — including one in southern Illinois — to North Carolina-based First Citizens Bank.
In what it calls a strategic “branch optimization,” BMO also plans to open 150 banking locations over the next five years, with a focus on expanding its presence in California, a state it entered just two years ago with the acquisition of Bank of the West.
“We’re sharpening our focus on markets with the greatest potential for long-term growth,” Aron Levine, president of BMO U.S., said in a news release Thursday. “This reallocation allows us to deepen client relationships and deliver the full power of BMO to our clients.”
More Top Picks Best Baby Travel Systems
Under the terms of the agreement, First Citizens Bank will assume approximately $5.7 billion in deposits and purchase approximately $1.1 billion in loans. It is acquiring all of BMO’s branches in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma and Idaho, as well as select branches in Minnesota, and one branch each in Oregon and Illinois.
The deal is expected to close in mid-2026, pending regulatory approval.
Bank of Montreal acquired Chicago-based Harris Bank in 1984, making the city its U.S. headquarters, which is now housed in an eponymous new tower in the West Loop.
BMO Financial Group, the Toronto-based parent company, is the eighth largest bank in North America with assets of $1.4 trillion. It has about 1,000 branches in the U.S., including 190 in the Chicago area, its largest U.S. market.
In 2023, BMO bought San Francisco-based Bank of the West for $16.3 billion, doubling its retail footprint and expanding into 32 states. All Bank of the West locations went under the BMO banner that year. It is exiting some of those former Bank of the West states with the sale of branches to First Citizens.
The largest Chicago-based bank by assets, BMO moved into the new 50-story glass-and-metal skyscraper emblazoned with its name at 320 S. Canal St. in 2022. The 1.5 million-square-foot BMO Tower, which is adjacent to Union Station in the West Loop, includes private terraces, a fitness center and its own outdoor park called The Green.
BMO has about 6,000 employees in the Chicago area, including the downtown headquarters, branch locations and a Naperville operations center.