Key Takeaways:

  • BMO plans to open 145 new branches across California and Arizona
  • The bank is concentrating growth in higher-potential Western markets
  • BMO is selling 138 branches to First Citizens as part of a broader footprint realignment
  • The expansion builds on BMO’s Bank of the West acquisition and long-term U.S. growth strategy

BMO is accelerating its U.S. expansion with plans to open 145 new branches over the next five years, including 130 in California and 15 in Arizona, targeting high-growth markets such as Los Angeles, the Bay Area, San Diego, Phoenix, Tucson, and Sacramento. The strategy represents roughly a 50% increase in its California footprint as the bank continues to expand in higher-growth Western markets.

The expansion is part of BMO’s broader “densification” strategy, which focuses on increasing market share and improving operating efficiency in targeted regions. BMO U.S. CEO Aron Levine stated the bank expects its U.S. operations to achieve a 12% return on equity by Q4 2027. New locations are being designed as modern “financial advice hubs,” integrating Personal, Business, and Commercial Banking alongside Wealth Management services under one roof.

While the expansion spans five years, BMO plans to begin opening new locations immediately, with seven California branches expected to open during 2026 alone, including three in Greater Los Angeles, two in the Bay Area, and two in San Diego. The initiative is also expected to create hundreds of new jobs over the next several years as part of a broader long-term investment into local communities.

At the same time, BMO is streamlining its branch network through the sale of 138 branches to First Citizens Bank, representing approximately 13.7% of its U.S. footprint. The transaction includes approximately $5.7 billion in deposits and $1.1 billion in loans across 11 states, including North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, Idaho, and select branches in Minnesota, Oregon, and Illinois. First Citizens is expected to pay a 5% net deposit premium at closing, while BMO anticipates recording an approximately $75 million goodwill charge related to the transaction in Q4 2025.

The moves follow BMO’s $16.3 billion acquisition of Bank of the West in 2023, which added nearly 2 million customers and approximately 500 retail branches to the company’s footprint. As of early 2026, BMO Financial Group is the eighth-largest bank in North America with approximately $1.5 trillion in total assets. The company currently operates roughly 1,000 U.S. branches (1,829 globally), with Chicago serving as its largest U.S. market and headquarters.

If you would like to discuss how this update may impact your acquisition or disposition strategy, please reach out to the Knipp Wolf Net Lease Group.