Bank of Montreal, the third-largest Canadian bank by market value, said in October that it would sell 138 branches to First Citizens Bank, apart from reinvesting in markets with stronger client engagement and longer-term growth prospects.

Bank of Montreal’s latest move comes amid some of the biggest American banking players investing in building branches in affluent areas to attract more clients, earn consumer trust and provide higher-value services such as mortgage services and wealth management. In 2023, Bank of Montreal bought BNP Paribas’ US unit, Bank of the West, for USD 16.3 billion. This was the BMO’s largest deal to date, giving it access to nearly two million customers, about 500 retail branches, and commercial and wealth offices in the Midwest and Western United States.

“The bank plans to open three new financial centres in Greater Los Angeles in 2026, two in the Bay Area and two in San Diego, which will create hundreds of jobs and expand access to in-person and advice-led banking,” the lender said in its media note.

Bank of Montreal has over 220 financial centres in California, and the planned expansions would add more than 50% to its footprint in the American state. Shares of BMO have returned a little over 7% so far in 2026, ahead of its larger peer, Royal Bank of Canada.

Meanwhile, BMO is navigating a more volatile North American rate environment while doubling down on expansion and capital discipline in the United States. For global investors, BMO offers a diversified North American banking franchise with exposure to cross-border trade, wealth management, and capital markets, but faces risks like cyclical credit and regulations.

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