RALEIGH, N.C.–Credit unions in a number of states now have a new bank competitor.
First Citizens Bank said it has entered into an agreement to acquire 138 branches from Bank of Montreal (BMO). The branches stretch across the Midwest, Great Plains and West regions of the U.S. Specifically, the branches BMO is selling to First Citizens are in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma and Idaho, as well as some in western Minnesota, one in eastern Oregon, and one in southern Illinois, according to the bank.
Nearly $6 Billion in Deposits
Under the terms of the deal, First Citizens will assume about $5.7 billion in deposits and purchase about $1.1 billion in loans for a net deposit premium of approximately 5% paid on closing, BMO said in a separate release.
First Citizens said it expects the transaction to close in mid-2026, subject to regulatory approvals, with conversion slated for that time frame, too.
First Citizens has said its objective is to grow from being a regional bank to being a national bank. It now has 519 branches operating in 23 states.
“We are enthusiastic about this opportunity to expand into new markets and offer our client-centered approach in even more regions,” First Citizens CEO Frank B. Holding Jr. said in a released statement.. “This deposit franchise is solid, and we look forward to serving individuals and business clients in these areas.”
The $1.4-trillion, Toronto-based BMO, which has approximately 1,000 branches, also in 23 states, has been looking to sell some of its U.S. branches and it also plans to open about 150 new branches over the next five years, the bank.
