Stock Markets March 17, 2026

Bank of Montreal to Add More Than 130 New Financial Centers in California

Five-year U.S. expansion centers on California after branch sales and a major acquisition

By Sofia Navarro BMO
Bank of Montreal to Add More Than 130 New Financial Centers in California
BMO

Bank of Montreal announced plans to open over 130 financial centers in California and roughly 15 in Arizona during the next five years, part of a broader program to add 150 branches across the United States. The move follows a branch-sale program and the 2023 acquisition of Bank of the West, and is aimed at deepening client engagement and expanding in-person, advice-led services.

Key Points

  • BMO plans to open more than 130 financial centers in California and about 15 in Arizona over the next five years as part of a 150-branch U.S. expansion.
  • The expansion follows the sale of 138 branches to First Citizens Bank and the 2023 acquisition of BNP Paribas’ U.S. unit, Bank of the West, for $16.3 billion.
  • Planned 2026 openings include three centers in Greater Los Angeles, two in the Bay Area and two in San Diego; the additions would raise BMO’s California footprint by more than 50% and create hundreds of jobs.

Bank of Montreal (BMO) said it will significantly expand its physical footprint in the U.S. West, planning to open more than 130 financial centers in California and about 15 in Arizona over the coming five years. The growth initiative is part of a larger effort to add 150 new branches nationwide during the same period, with a heavy emphasis on U.S. markets and a particular focus on California.

The bank's announcement follows a strategic reshaping of its U.S. branch network. In October, BMO sold 138 branches to First Citizens Bank and said it would redeploy capital into markets where the firm sees stronger client engagement and better longer-term growth prospects.

Industry observers note that several of the largest U.S. banks have been investing in branch networks located in more affluent neighborhoods to capture higher-value retail clients and to provide services such as mortgages and wealth management. BMO’s plan signals a similar intent to target areas where in-person advisory relationships can boost revenue from consumer and wealth products.

BMO’s U.S. presence was materially enlarged in 2023 when it acquired BNP Paribas’ U.S. unit, Bank of the West, for $16.3 billion. That deal brought nearly 2 million customers, roughly 500 retail branches, and commercial and wealth offices spanning the Midwest and Western United States into BMO’s U.S. operations.

As part of the expansion timetable, the bank indicated specific openings planned for 2026, which include:

  • Three new financial centers in Greater Los Angeles,
  • Two new centers in the Bay Area, and
  • Two additional centers in San Diego.

BMO said the build-out will create hundreds of jobs and will broaden access to in-person, advice-led banking across the regions where it is adding centers. The bank already operates more than 220 financial centers in California; the new openings would increase that footprint in the state by more than 50%.

Market reaction has been positive so far in 2026, with shares of BMO up a little over 7% year-to-date, outperforming its larger peer, Royal Bank of Canada, according to the company’s statement.

The announcement also included promotional material referencing BNPP and an AI-driven stock evaluation product. That material asks whether investors should be buying BNPP now and describes a ProPicks AI tool that evaluates BNPP alongside thousands of other companies using more than 100 financial metrics. The promotional copy highlights past picks that it describes as notable winners, including Super Micro Computer (+185%) and AppLovin (+157%), and invites readers to see stock coverage through its strategies.

Risks

  • Competition from large U.S. banks that are investing in branches in affluent areas could affect BMO’s ability to attract higher-value clients and grow wealth-management and mortgage revenues - impacts the banking and wealth management sectors.
  • The multi-year nature of the expansion (five-year rollout) introduces uncertainty tied to execution, timing and labor or construction availability that could affect branch openings and job creation - impacts commercial real estate and employment in banking-related services.
  • Integration and redeployment risks remain following the October sale of 138 branches and the 2023 Bank of the West acquisition, which may create operational complexity as BMO reshapes its U.S. footprint - impacts operations and commercial banking infrastructure.

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