BMO plans 150 new branches, steering capital into California- and Arizona-led US growth
Bank of Montreal plans to lift its California branch footprint by more than 50 percent in five years, even as many banks shrink their physical networks—a move that squarely targets advice‑driven business in the US West.
According to Reuters, BMO intends to open more than 130 financial centres in California and about 15 in Arizona over the next five years, as it expands its presence following the sale of several branches across the United States last year.
BNN Bloomberg reports that the new California locations will build on the more than 220 financial centres the bank already operates in the state.
As per Reuters, BMO said in October it would sell 138 branches to First Citizens Bank and reinvest in markets with stronger client engagement and longer‑term growth prospects.
BNN Bloomberg reports that those divested locations include branches in North Dakota, Wyoming, Kansas and Oklahoma, with the bank now concentrating on markets it sees as having the greatest potential for long‑term growth.
Reuters said that as part of this strategy, BMO committed to opening 150 new branches over five years, with a focus on US markets that is largely California‑centric.
BNN Bloomberg reports that the bank plans to open seven branches this year in Greater Los Angeles, the Bay Area and San Diego, and that it will focus Arizona expansion in the Phoenix and Tucson markets over the next few years.
According to Reuters, BMO plans to open three new financial centres in Greater Los Angeles, two in the Bay Area and another two in San Diego in 2026, creating hundreds of jobs and expanding access to in‑person and “advice‑led banking.”
The build‑out rests on the 2023 acquisition of Bank of the West.
Reuters noted that BMO bought BNP Paribas’ US unit for US$16.3bn in its biggest deal ever, gaining nearly 2m customers, about 500 retail branches and commercial and wealth offices across the Midwest and Western United States.
BNN Bloomberg said that transaction significantly expanded BMO’s US presence, which the new West Coast and Arizona branches now deepen.
For context, several of the largest US banks have been investing in branches in affluent areas to draw more clients, build trust and sell higher‑value services such as mortgages and wealth management, according to Reuters.
BNN Bloomberg reports that other Canadian lenders are also pushing into the United States, including Royal Bank of Canada through Los Angeles‑based City National Bank.
BMO is making this push against a backdrop of what its own leaders describe as a shift from pause to execution.
In its National Business Outlook, the bank’s US commercial head says business owners across the United States now focus on productivity, capital efficiency and disciplined growth, with artificial intelligence moving from experimentation to deployment to improve operations and reallocate resources.
The bank’s state‑level views help explain why California and Arizona sit at the centre of its plan.
In Northern California, BMO’s regional leadership says AI‑driven investment dominates, noting that the Bay Area captured about US$126bn in AI‑related venture capital in fiscal 2025, roughly 60 percent of global AI VC, while hyperscalers plan over US$600bn in capital expenditures in 2026.
The report also highlights San Francisco office vacancy around 32.8 percent and severe housing affordability pressures, but underscores the region’s innovation leadership.
In Southern California, BMO’s outlook says conditions are improving but uneven, with momentum concentrated in aerospace and defence, life sciences and advanced manufacturing, while the Los Angeles labour market remains soft and housing affordability is among the weakest in the country.
The report notes that only a small share of households in Los Angeles and San Diego can afford a median‑priced single‑family home, even as builders stay cautious.
Arizona, meanwhile, has moved from rapid post‑pandemic expansion to a more measured phase.
BMO’s Arizona outlook says advanced manufacturing and semiconductors anchor the state’s long‑term profile, even as durable goods manufacturing, wholesale trade and construction have softened.
The bank’s economists report that Arizona’s real GDP growth slowed to about 2 percent year‑over‑year in 2025 Q3 from around 5 percent at the end of 2024, but they expect modestly improving signals in 2026 as technology investment, lower borrowing costs and better macroeconomic conditions support a slight pickup.
Reuters said that BMO shares have gained a little over 7 percent so far in 2026, outperforming Royal Bank of Canada.
