Bank of Montreal Considers U.S. Branch Sale With $6B in Deposits

Bank of Montreal BMO recently initiated a process to sell some of its U.S. branches, which hold approximately $6 billion in deposits, per the Wall Street Journal, as cited by Reuters, citing people familiar with the matter. The move highlights the Canadian lender’s efforts to exit select geographies and streamline its U.S. retail footprint following its largest acquisition in 2023.

Details of the BMO’s Planned Sale

According to the report, the bank is weighing the divestiture of branches in states such as Wyoming and the Dakotas. The branches may be sold either individually or in clusters and could include associated loans. However, the plans are still preliminary and may not ultimately result in a transaction.

The potential branch sale follows BMO’s $16.3 billion acquisition of BNP Paribas’ U.S. unit, Bank of the West, completed in 2023. The deal added nearly 500 branches, expanded its customer base by about 2 million, and strengthened its presence across the Midwest and Western United States.

BMO is reviewing its branch network to streamline operations, a process that often involves closures or consolidations. Such moves are common after major deals, particularly as more customers shift toward digital and mobile banking services.

Our Take on BMO

The potential divestiture underscores BMO’s focus on optimizing its U.S. presence while continuing to strengthen its long-term growth strategy. Streamlining its branch network is expected to support efficiency gains and strengthen its strategic positioning.

BMO’s Price Performance & Zacks Rank

Over the past six months, shares of Bank of Montreal have gained 33.2% compared with the industry’s growth of 22.4%.

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Banks Taking Similar Steps

In July 2025, Capital One Financial Corporation COF decided to wind down the home equity lending business it acquired while buying Discover Financial in May.

After conducting a strategic review of Discover’s home equity and refinance loan business to assess its fit within the company’s portfolio, COF announced the difficult decision to exit the business.

In June 2025, HSBC Holdings PLC HSBC announced it would close its business banking division in the United States. This announcement comes amid the company’s ongoing business simplification efforts and accelerated shift toward the Asia and Middle East regions.

The move aligns with the bank’s ongoing overhaul of its dealmaking and corporate advisory activities in the West. HSBC intends to tighten its focus on Asia and boost returns under CEO Georges Elhedery.

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This article originally published on Zacks Investment Research (zacks.com).

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