What's Happening?
First Citizens Bank has entered into an agreement to acquire 138 branches from BMO Financial Group across 11 states, including Illinois. This strategic move involves First Citizens Bank assuming approximately $5.7 billion in deposits and purchasing around
$1.1 billion in loans. The acquisition is part of BMO's branch optimization strategy, which aims to focus on markets with high growth potential. BMO plans to open 150 new banking locations over the next five years, particularly in California, following its acquisition of Bank of the West. The deal is expected to close in mid-2026, pending regulatory approval.
Why It's Important?
This acquisition allows First Citizens Bank to significantly expand its presence in the U.S., particularly in states where BMO is reducing its footprint. For BMO, the sale aligns with its strategy to concentrate resources in high-growth markets, potentially enhancing its competitive edge in regions like California. The transaction could impact local economies and banking competition, as First Citizens Bank integrates these branches into its operations. Customers in the affected states may experience changes in service offerings and banking options.
What's Next?
Pending regulatory approval, the deal is set to close in mid-2026. Both banks will likely focus on ensuring a smooth transition for customers and employees. BMO's planned expansion in California could lead to increased competition in the region, while First Citizens Bank may explore further growth opportunities following the integration of the new branches.
