First Citizens BancShares in Raleigh, N.C., has agreed to buy 138 branches from BMO Bank in Canada.
First Citizens said in a press release that the deal includes $5.7 billion of deposits and $1.1 billion of loans. Most of the branches are in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma and Idaho.
The deal is expected to close in mid-2026. First Citizens said it expects to pay a 5% premium for the deposits. The acquisition should be immediately accretive to earnings per share and minimally dilutive to tangible book value.
“This deposit franchise is solid, and we look forward to serving individuals and business clients in these areas,” Frank Holding Jr., First Citizens’ chairman and CEO, said in the release. “The net deposit position is expected to enable us to further enhance our liquidity position and provide additional flexibility to support our strategic initiatives.”
BMO said in a separate press release that it plans to open 150 branches over the next five years, with a California-centric focus.
“We’re sharpening our focus on markets with the greatest potential for long-term growth,” Aron Levine, president of BMO U.S., said in the bank’s release. “This reallocation allows us to deepen client relationships and deliver the full power of BMO to our clients.”
Regarding the branch sale, BMO plans to record a pretax goodwill-related charge of $75 million. At closing, the bank expects to record a tax expense of roughly $85 million.
Arnold & Porter Kaye Scholer and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan advised First Citizens. BMO Capital Markets, Piper Sandler and Godfrey & Kahn advised BMO Bank.