Established in 1817, BMO Financial Group has more than 47,000 employees and provides a broad range of retail banking, wealth management, and investment banking products and services to more than 12 million customers. It conducts business through three operating groups: Personal and Commercial Banking, Wealth Management, and BMO Capital Markets. The company also has a strong presence in the US Midwest through BMO Harris Bank and BMO Private Bank.
Income Investor
Last week, BMO announced a strategic shift in its US operations. The company is selling 138 branches in the US Midwest to First Citizens Bank. The branches being sold are in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho, as well as select locations in western Minnesota, one branch in eastern Oregon, and one branch in southern Illinois. Under the terms of the deal, First Citizens Bank will assume about US$5.7 billion in deposits and purchase about US$1.1 billion in loans. As a result, BMO says it will record a charge related to goodwill of about $104 million in its fourth quarter. On closing in 2026, the bank expects to record a tax charge of about $117 million. At the same time, BMO also announced plans to open 150 new branches over the next five years with a focus in California. BMO shares have been on a strong upward trend and recently touched an all-time high of $182.90 before pulling back on profit-taking. - Gordon Pape
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BMO was first recommended here on September 26, 2015