BMO Expanded Branch Footprint in California and Arizona

The bank plans to open more than 145 new branches, aiming to grow its retail deposit base in the two states.

Updated on Oct. 1, 2026 in Banking

Isometric editorial illustration of a clean, modern commercial bank building with large windows and minimalist design, representing corporate branch expansion. — BMO plans to open more than 145 new bank branches across California and Arizona over the next five years to capture local retail deposits. AI Illustration. Upload story photo >

Live Poll

Do you believe new bank branches improve financial services in your local community?

BMO has launched a strategy to increase its physical presence by opening over 130 branches in California and 15 in Arizona over the next five years. This expansion follows the bank's 2023 acquisition of Bank of the West and aims to deepen local client relationships.

Why it matters

The expansion strategy targets specific deposit growth goals of $50 million to $60 million per new location within three years of opening. By scaling its branch network, the bank seeks to leverage its $288.6 billion business unit asset base to capture more local retail deposits.

BMO's U.S. personal and business unit reported $2.2 billion in net income for fiscal 2025, up 29.4% over the prior year. The bank now aims to attract $50 million to $60 million in retail deposits at each of its newly planned branch sites.

The players

BMO

A major financial institution offering retail and business banking products, loans, and wealth management services.

Carolyn Booth

The head of BMO's U.S. personal and business banking unit responsible for the bank's retail strategy and branch network.

First Citizens Bank

A financial services firm that acquired 138 branches from BMO in 2025.

The details

BMO is scaling its physical footprint to support broader access to its banking services and its new Lexi AI tool, which assists customers with inquiries. The bank recently divested 138 branches to First Citizens Bank, using the proceeds to refine its geographic focus on key Western markets. This pivot utilizes data-driven site selection to optimize where the bank provides in-person financial support and wealth management referrals.

1991: Carolyn Booth began her banking career as a teller.
2023: BMO finalized its acquisition of Bank of the West.
Fiscal 2025: The business unit saw net income reach nearly $2.2 billion.
March 2026: The bank officially announced its California and Arizona expansion plan.
2026: BMO introduced the Lexi AI tool for employee and client use.

Money Landscape

This branch expansion follows the bank's 2023 acquisition of Bank of the West and reflects a broader effort to consolidate market share in the Western United States. It marks a departure from recent divestiture cycles, moving toward a targeted growth phase in the retail banking sector.

Residents in California and Arizona may soon see new branch locations offering integrated AI assistance for banking tasks. If you are shopping for a new bank, review the service offerings and deposit products at your local BMO branch to determine if they align with your financial goals.

The takeaway

BMO is betting on a mix of physical branch presence and AI tools to capture retail deposits in Western states. Customers should evaluate how new local banking options fit their needs and discuss any shifts in their personal banking arrangements with a professional advisor.