News Summary
First Citizens Bank has announced its acquisition of 138 branches from BMO Bank, significantly increasing its national footprint. This strategic expansion includes locations across 11 states and marks an important step in enhancing the bank’s network. The deal, contingent on regulatory approval, is expected to close by mid-2026 and involves approximately $5.7 billion in customer deposits and $1.1 billion in loans. First Citizens aims to leverage this acquisition to strengthen its market position and improve financial stability.
Raleigh, North Carolina
First Citizens Bank has announced a major expansion, acquiring 138 branches from BMO Bank, based in Toronto. This move marks a significant step in the bank’s growth strategy, adding to its presence across the United States and increasing its branch network substantially.
Details of the Acquisition
The 138 branches being acquired are located in 11 states, stretching from southern Illinois to eastern Oregon. After the deal is finalized, First Citizens Bank’s total branch count will grow from approximately 520 to a significantly larger footprint. The deal is contingent upon regulatory approval and is expected to close by mid-2026.
As part of the transaction, First Citizens Bank will assume around $5.7 billion in customer deposits and will acquire approximately $1.1 billion in loans. The bank has agreed to pay a 5% premium on deposits to facilitate the deal.
Strategic Implications and Market Impact
Industry experts see this acquisition as a strategic move to expand First Citizens’ national presence and to lower its loan-to-deposit ratio. The bank’s recent acquisition of Silicon Valley Bank in March 2023 contributed to an elevated loan-to-deposit ratio, and this new deal aims to stabilize and strengthen its financial position.
Christopher Marinac, an analyst from Janney Montgomery Scott, commented that the acquisition is a logical use of First Citizens Bank’s capital. The move also helps the bank to deepen relationships with clients across different regions, although some industry observers have noted the unusual geographic distribution of the branches, creating what has been described as a “weird map”.
Growth and Expansion Strategy
Founded in 1898, First Citizens Bank has grown significantly over the past decades. Its size increased notably after more than 20 bank acquisitions since 2009, including CIT Group and Silicon Valley Bank. The bank now ranks as the 16th largest in the United States.
Over the past five years, the bank has nearly doubled its employee count, from 7,176 to 17,475. Currently, it ranks third in total deposits in North Carolina and South Carolina, behind Bank of America and Truist Bank.
Leadership and Future Outlook
CEO Frank Holding Jr. expressed enthusiasm about the expansion into new markets and reaffirmed the bank’s client-centered approach. This strategic move aligns with First Citizens’ long-term goal of strengthening its market position and improving operational stability.
Background on BMO Bank and Market Strategy
BMO Bank, which operates about 1,000 branches in the U.S., has been exploring options to sell certain branches while opening new locations in potentially more profitable regions. The sale of these branches to First Citizens allows BMO to concentrate on building
critical mass in specific U.S. markets.
Industry Perspective
Analysts view the deal as interesting and unexpected, noting its potential to position First Citizens favorably for future acquisitions and strategic positioning. The diverse geographic spread of the acquired branches gives the bank an unconventional map, which may influence its future expansion plans.
Conclusion
This acquisition underscores First Citizens Bank’s aggressive growth strategy driven by acquisitions, aiming to enhance its nationwide footprint and financial stability. The transaction reflects a broader trend of regional banks expanding their markets through strategic branch acquisitions.
Frequently Asked Questions
Q: What is the scope of the First Citizens Bank acquisition?
A: The acquisition involves 138 branches located in 11 states, stretching from southern Illinois to eastern Oregon.
Q: When is the deal expected to close?
A: The deal is expected to close in mid-2026, pending regulatory approval.
Q: How much in deposits and loans will First Citizens assume?
A: First Citizens will assume around $5.7 billion in customer deposits and acquire approximately $1.1 billion in loans.
Q: What is the significance of this acquisition for First Citizens Bank?
A: It significantly increases its branch footprint, helping to deepen client relationships and improve financial stability while positioning it for future growth.
Q: How does this acquisition compare to the bank’s previous growth?
A: It continues First Citizens’ strategy of growth through acquisitions, which includes more than 20 bank purchases since 2009, contributing to its current prominence as the 16th largest bank in the United States.
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Additional Resources
- PR Newswire: First Citizens Bank Acquires Branches from BMO Bank
- Banking Dive: First Citizens to Acquire 138 BMO Bank Branches
- American Banker: BMO Sells 138 U.S. Branches to First Citizens
- News Observer: First Citizens Bank Expands with Acquisition of BMO Branches
- Wikipedia: First Citizens Bank
Author: STAFF HERE RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
