Bank of Montreal (BMO), on Thursday, announced an agreement to sell 138 U.S. branches to First-Citizens Bank & Trust Company, the financial holding company for First Citizens BancShares, Inc. (FCNCA), as part of a broader plan to optimize its branch network and refocus on high-growth markets.
The deal is expected to close by mid-2026. Until then, customers can continue banking as usual.
Under the agreement, First Citizens Bank will take on about $5.7 billion in deposits and buy around $1.1 billion in loans, paying a 5% net deposit premium at closing.
The company expected to record a goodwill charge of about $75 million or CAD$104 million and a tax expense of roughly $85 million or CAD$117 million in the fourth quarter of 2025. The impact on its CET1 ratio will be minimal.
The bank has agreed to sell 138 branches to First-Citizens Bank & Trust Company.
The locations are spread across North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho, along with select branches in western Minnesota, one in eastern Oregon, and one in southern Illinois.
At the same time, the company plans to open 150 new branches within the next five years, mainly in California, to expand in key U.S. regions and strengthen its Personal and Business Banking, Commercial Banking, and Wealth Management services.
In the pre-market trading, Bank of Montreal is 0.76% lesser at $127.29 on the New York Stock Exchange.
On Wednesday, First Citizens BancShares closed trading, 2.34% lesser at $1,746.26 on the Nasdaq.
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