BMO Expands Footprint in California and Arizona

Canadian Bank Boosts Presence in Growth Hubs Amid Broader U.S. Shift

Apr. 13, 2026 at 6:13am

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A high-end, photorealistic studio still-life photograph featuring a stack of polished metal bank cards, a sleek laptop, and a modern desk lamp arranged elegantly on a clean, monochromatic seamless background, conceptually representing BMO's strategic expansion into the U.S. market.BMO's strategic pivot to expand its U.S. footprint in California and Arizona signals the bank's confidence in the continued economic dynamism of these growth hubs.Los Angeles Today

BMO, one of Canada's largest banks, is significantly expanding its footprint in California and Arizona while consolidating branches in other U.S. states. This strategic move comes on the heels of BMO's acquisition of Bank of the West in 2023, which dramatically increased its U.S. presence. The bank is now focused on capturing a larger share of the dynamic economies in regions like Greater Los Angeles, the Bay Area, and Phoenix.

Why it matters

BMO's expansion into California and Arizona is part of a broader trend of Canadian banks seeking to diversify their revenue streams by tapping into the significantly larger U.S. market. This move signals BMO's confidence in the long-term growth potential of these Western markets and its willingness to invest heavily in areas it believes will drive future profitability.

The details

BMO is closing 138 branches in states like North Dakota and Oklahoma while simultaneously planning to open over 130 new ones in California and 15 in Arizona. The bank is specifically targeting growth hubs like Greater Los Angeles, the Bay Area, and the Phoenix and Tucson markets, which it sees as economic powerhouses and magnets for innovation and new residents.

  • BMO acquired Bank of the West for $16.3 billion in 2023.
  • BMO plans to open 7 new branches in California in 2026.

The players

BMO

One of Canada's largest banks, expanding its footprint in the U.S. through strategic acquisitions and branch openings.

Bank of the West

A U.S. bank that BMO acquired in 2023 for $16.3 billion, dramatically increasing its presence in the country.

Royal Bank of Canada (RBC)

Another major Canadian bank that has been actively pursuing U.S. expansion, such as through the acquisition of City National Bank.

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What they’re saying

“This move by BMO is also part of a larger trend. Several of Canada's largest banks, including Royal Bank of Canada (RBC) with its acquisition of City National Bank, have been actively pursuing U.S. expansion.”

— Roderick King, Author

“Ultimately, BMO's strategic pivot is a bold statement about their confidence in these Western markets. It's a move that signifies a willingness to shed the old to embrace the new, and to invest heavily in areas they believe will drive future profitability.”

— Roderick King, Author

What’s next

BMO's expansion plans will continue to unfold, and it will be interesting to see how the bank's presence in California and Arizona evolves in the coming years.

The takeaway

BMO's strategic move to expand in California and Arizona reflects a broader trend of Canadian banks seeking to diversify their revenue streams by tapping into the larger U.S. market. This bold bet on the continued economic dynamism of the West Coast and Southwest regions signals BMO's confidence in these growth hubs and its willingness to invest heavily in areas it believes will drive future profitability.