First Citizens Bank Expands Footprint with Strategic Acquisition

First Citizens Bank Expands Footprint with Strategic Acquisition

Additional 138 branches in 11 states accelerate expansion into new markets across the U.S.

First Citizens Bank & Trust Company, the fully owned banking subsidiary of First Citizens BancShares, Inc. (Nasdaq: FCNCA), has announced an exciting agreement to acquire 138 branches from BMO Bank N.A. This significant move will bolster its presence across the Midwest, Great Plains, and Western regions of the United States, including areas in North Dakota, South Dakota, Wyoming, and more. The acquisition not only represents an expansion into new markets but also an opportunity for First Citizens Bank to enhance its service offerings to new clients and partners.

Frank B. Holding, Jr., Chairman and CEO of First Citizens Bank, expressed enthusiasm about the acquisition, stating, "We are excited to expand into these new markets and provide our client-centered approach to an even wider audience. This acquisition brings a solid deposit franchise, reinforcing our liquidity and strategic initiatives in these areas." The branches being acquired provide significant deposit liabilities amounting to approximately $5.7 billion and loans totaling around $1.1 billion, laying a strong foundation for future growth.

Hope Holding Bryant, Vice Chairwoman and Head of General Banking, emphasized the importance of high-quality service in their growth strategy. She remarked, "The acquisition highlights our dedication to delivering exceptional banking products and deep sector expertise nationwide. We are looking forward to integrating with our new associates and continuing to serve our communities with commitment and excellence."

The array of services offered by First Citizens Bank includes commercial banking expertise, innovation banking, and personal savings solutions, ensuring comprehensive financial services. Clients can expect the same high level of service and expertise they have come to rely on.

While the acquisition process is underway, BMO Bank customers can continue their banking activities as usual, utilizing existing checks, cards, and online account access. First Citizens Bank wants to assure everyone that their banking experience will remain uninterrupted during this transitional phase.

Details of the Branch Acquisition

Under the agreed terms, First Citizens Bank will acquire branches located in several states, enhancing their network and outreach. The strategic plan involves closing the transaction by mid-2026, pending customary conditions and regulatory approvals. This expansion is a critical milestone as First Citizens Bank aims to redefine its footprint in key markets.

Legal and Financial Advisory Support

The transaction is supported by prominent legal and financial advisors for both parties, with Arnold & Porter Kaye Scholer LLP and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. acting on behalf of First Citizens Bank. Meanwhile, BMO Bank is being advised by BMO Capital Markets and Piper Sandler & Co., alongside Godfrey & Kahn, S.C. functioning as their legal counsel. This collaborative effort highlights the importance of strategic guidance during such a significant transaction.

About First Citizens Bank

First Citizens Bank has a rich history of providing comprehensive financial services aimed at building long-lasting financial strength for personal, business, and commercial clients. Headquartered in Raleigh, N.C., First Citizens offers a vast network of branches nationwide. They pride themselves on their legacy of stability and forward-thinking, which spans generations. As a top 20 financial institution in the U.S., First Citizens BancShares, Inc. (NASDAQ: FCNCA) manages more than $200 billion in assets, consistently aiming to meet evolving client needs.

Frequently Asked Questions

What is the significance of the acquisition by First Citizens Bank?

This acquisition allows First Citizens Bank to expand its market presence significantly and enhance service delivery to new clients across multiple states.

How many branches are being acquired?

First Citizens Bank is acquiring 138 branches from BMO Bank, which will broaden its reach in various regions across the U.S.

What will happen to existing BMO Bank customers?

Existing BMO Bank customers can continue banking normally with their current checks, cards, and online services until the acquisition is completed.

When is the expected closing date for the acquisition?

The acquisition is expected to close by mid-2026, subject to customary conditions and regulatory approvals.

Who are the advisors involved in the transaction?

First Citizens Bank is advised by Arnold & Porter Kaye Scholer LLP and others, while BMO Bank's advisory team includes BMO Capital Markets and Piper Sandler & Co.

About The Author

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