The bank could sell the branches together or in clusters and could sell loans along with deposits, The Wall Street Journal (WSJ) reported Tuesday (Sept. 23), citing unnamed sources.
BMO has launched a sales process, but the plans aren’t final, and the sales may not happen, according to the report.
Reached by PYMNTS, BMO declined to comment on the report.
According to the WSJ report, BMO’s plan to unload some locations follows its 2023 acquisition of Bank of the West, which added about 500 branches and brought BMO’s total number of branches in the U.S. to about 1,000.
It is not unusual for banks to close or sell some locations after making a big acquisition, the report said.
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In addition, BMO has been opening new branches and renovating existing ones, per the report.
When BMO announced in December 2021 that it had finalized a $16.3 billion acquisition deal for BNP Paribas’ Bank of the West, it said it would gain a scaled entry into California as well as 1.8 million new customers, 514 additional branches, and commercial and wealth offices in key U.S. growth markets.
BMO announced the completion of the acquisition on Feb. 1, 2023, saying that customers would continue to be served through their respective BMO and Bank of the West branches until it completed with conversion of the banks’ systems in September 2023.
At that point, BMO said, the bank would provide customers with information about how the combined bank will serve them.
BMO said in June that it agreed to acquire Burgundy Asset Management, a Canadian independent wealth manager, for about $625 million and that the transaction was expected to close by the end of 2025, subject to customary closing conditions.
The bank said the acquisition would expand its wealth management and financial planning capabilities.
BMO has also announced new offerings developed in collaboration with Mastercard during 2025, including a new travel rewards card designed for frequent travelers, an expanded money transfer service that includes more destinations and currencies, and a rewards program for Canadian travelers that also includes as a partner Porter Airlines.
