The Bank of Montreal (BMO) has recently taken steps to explore the potential sale of several U.S. branches. Holding about $6 billion in deposits. This move follows the bank’s 2023 acquisition of Bank of the West, as BMO looks to refine its operations across North America.

BMO Why the Shift?

According to sources familiar with the matter, BMO is aiming to offload certain branches, which might include not only deposits but also associated loans. The bank is investing heavily in modernizing and expanding its remaining U.S. footprint, including branch openings and renovations. However, it has identified some areas, particularly Wyoming and the Dakotas, as regions it’s looking to exit, suggesting a strategic pullback from certain parts of the market.

The sale could involve individual branches or be grouped into clusters, but sources caution that the plans are still in the works and may not come to fruition as initially envisioned.

BMO’s U.S. Presence

BMO is ranked as the 16th-largest bank in the United States by assets, with around 1,000 branches nationwide. The acquisition of Bank of the West added an additional 500 branches, primarily located in the Midwest and West. In the aftermath of such significant acquisitions, it’s not uncommon for banks to close or sell off branches that overlap with their existing operations.

The Broader Trend

This potential branch sale reflects broader trends in the banking industry, where many banks have been closing traditional branches as customers increasingly shift toward online and mobile banking. While branch closures have slowed in 2025, banks are continuing to adapt to the digital shift. Some overseas banks, like BMO, have adjusted their U.S. strategies by focusing on specific areas such as wealth management and corporate banking, rather than maintaining a vast physical branch network.

BMO’s Canadian rival, Toronto-Dominion Bank (TD), also has a significant U.S. presence, with over 1,100 branches. However, in the first half of the year, TD closed around 36 branches as part of its ongoing efforts to streamline its operations.

In an evolving banking landscape, BMO’s exploration of selling U.S. branches highlights a changing approach to physical retail banking, with a stronger focus on digital and more profitable avenues for growth.