BMO Financial Group has announced the completion of the sale of 138 branches in the United States to First-Citizens Bank & Trust Co. This strategic transaction emphasizes BMO's commitment to optimizing its U.S. network while concentrating on markets with considerable long-term growth potential.

The branches included in this sale are spread across several states including North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho. Additionally, the sale encompasses select branches located in Minnesota, Oregon, and Illinois.

The announcement of this sale was initially made in October of the previous year. As part of this strategy, BMO also detailed plans to open 150 new branches over the next five years, primarily focusing on growth opportunities in California, although not exclusively limited to that state.

As part of its growth strategy, BMO intends to open seven new branches this year specifically in regions such as Greater Los Angeles, the Bay Area, and San Diego.

According to the terms of the agreement announced previously, First-Citizens Bank will take on approximately US$5.7 billion in deposits and will also acquire about US$1.1 billion in loans as part of the transaction.

This business move showcases BMO's strategy to streamline its operations in the U.S. while positioning itself for future expansion in more lucrative markets. The completion of this sale marks a significant shift for BMO’s footprint in the U.S. banking sector, aligning with their goal of targeted growth.