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DEALSFirst Citizens BancShares closes 138-branch BMO acquisition as deposit retention takes center stageSep 12DEALSWEA declares $0.07 monthly cash dividend with November 30 payment dateSep 12CRYPTODiesel crosses $6 a gallon for the first time on record as food and consumer goods companies warn costs are mountingSep 12MACROChubu Electric Power reportedly set to pull Hamaoka nuclear restart applicationsSep 12TSLAFord's Fathom targets 100,000 units in year one as Louisville prepares for Q1 productionSep 12MACROIsraeli-Lebanese talks set for State Department next weekSep 12EARNINGSCooper Rush named Atlanta Falcons' Week 1 starter as Tua Tagovailoa ruled out with oblique injurySep 11AAPLSiri bank scam: Apple voice assistant routed 82-year-old to fake American Express number, BBB warns of wider patternSep 11AMZNAnker Soundcore Liberty 5 Pro earbuds take first price cut as AirPods 5 arrives at the same tierSep 11ENERGYAugust inflation print keeps Fed rate hike in playSep 11DEALSFirst Citizens BancShares closes 138-branch BMO acquisition as deposit retention takes center stageSep 12DEALSWEA declares $0.07 monthly cash dividend with November 30 payment dateSep 12CRYPTODiesel crosses $6 a gallon for the first time on record as food and consumer goods companies warn costs are mountingSep 12MACROChubu Electric Power reportedly set to pull Hamaoka nuclear restart applicationsSep 12TSLAFord's Fathom targets 100,000 units in year one as Louisville prepares for Q1 productionSep 12MACROIsraeli-Lebanese talks set for State Department next weekSep 12EARNINGSCooper Rush named Atlanta Falcons' Week 1 starter as Tua Tagovailoa ruled out with oblique injurySep 11AAPLSiri bank scam: Apple voice assistant routed 82-year-old to fake American Express number, BBB warns of wider patternSep 11AMZNAnker Soundcore Liberty 5 Pro earbuds take first price cut as AirPods 5 arrives at the same tierSep 11ENERGYAugust inflation print keeps Fed rate hike in playSep 11
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First Citizens BancShares closes 138-branch BMO acquisition as deposit retention takes center stage

One hundred thirty-eight former BMO Bank N.A. branches changed hands on September 4. First Citizens BancShares (NASDAQ: FCNCA), through its First-Citizens Bank & Trust Company subsidiary, completed the transfer across 11 states in the Midwest, Great Plains, and West, adding an expected $5.3 billion in deposits to the consolidated book. Whether those accounts hold through conversion is now the transaction's defining variable.

By Grant HalloranNewsroomSeptember 12, 20262 min read
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Key takeaways

  • First Citizens BancShares completed the transfer of 138 former BMO Bank N.A. branches across 11 states on September 4, adding an expected $5.3 billion in deposits.
  • A July 2026 update revised the expected deposits to $5.3 billion and loans to $700 million, implying roughly $4.6 billion of net liquidity.
  • The acquired accounts carried a weighted average rate of 1.43% at announcement, below First Citizens' 2.07% average total deposit cost in Q2 2026, so retention could lower consolidated funding costs.
  • The original presentation projected immediate EPS accretion and an approximately 27-basis-point reduction in the Common Equity Tier 1 capital ratio.
  • Deposit retention through conversion is the transaction's defining variable, with final transferred balances and early retention data set to confirm or undercut the accretion case.

One hundred thirty-eight former BMO Bank N.A. branches changed hands on September 4. First Citizens BancShares (NASDAQ: FCNCA), through its First-Citizens Bank & Trust Company subsidiary, completed the transfer across 11 states in the Midwest, Great Plains, and West, adding an expected $5.3 billion in deposits to the consolidated book. Whether those accounts hold through conversion is now the transaction's defining variable.

Deposit economics in focus

At announcement, First Citizens expected to assume approximately $5.7 billion of deposits and acquire $1.1 billion of loans. A July 2026 update revised both estimates to $5.3 billion and $700 million, respectively, implying roughly $4.6 billion of net liquidity in either scenario. The closing release did not disclose final transferred balances, leaving the July figures as the best available baseline.

The acquired accounts carried a weighted average rate of 1.43% at announcement, with 21% held in noninterest-bearing demand accounts. First Citizens reported a 2.07% average total deposit cost in the second quarter of 2026. Keeping the BMO book near its original pricing would lower the consolidated funding cost. That rate advantage depends on retention.

Deployment of the surplus carries its own calculus. As of June 30, 2026, First Citizens held $151.03 billion in loans and $32.19 billion in borrowings, including a $28.42 billion purchase money note owed to the Federal Deposit Insurance Corporation. The original transaction presentation projected immediate earnings-per-share accretion and an approximately 27-basis-point reduction in the Common Equity Tier 1 capital ratio. Directing the acquired liquidity toward loan growth, securities, or debt repayment each produces a different revenue outcome.

What to watch

The 138 branches give First Citizens a new or expanded presence across those 11 states. The original presentation identified approximately $1.0 billion of wealth assets under management and potential to cross-sell commercial lending, treasury services, and wealth products. Retaining branch personnel could help preserve the local relationships that anchor the deposit book.

Operating costs are the offset. Original terms contemplated a premium equal to roughly 5% of acquired deposits, and First Citizens must now absorb the expense of running 138 locations while integrating employees, technology, compliance systems, and customer records. The closing release provided no updated expense estimates. Customers may shift balances over rate differences, digital-platform changes, or competing offers, which could require First Citizens to raise deposit pricing or lift marketing spend to hold the book. Insider Monkey's database showed 38 hedge funds holding FCNCA at the end of the second quarter of 2026, up from 35 the prior quarter. Final transferred balances and early retention data are the figures that will confirm or undercut the original accretion case.

Related reading

About this story

Filed by the newsroom of MarketPR on September 12, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.

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Frequently asked

How many branches did First Citizens acquire and where?

First Citizens acquired 138 former BMO Bank N.A. branches across 11 states in the Midwest, Great Plains, and West, with the transfer completed on September 4.

How much in deposits and loans is First Citizens assuming?

A July 2026 update put the expected deposits at $5.3 billion and loans at $700 million, down from the announcement estimates of approximately $5.7 billion in deposits and $1.1 billion in loans.

Why is deposit retention so important to this deal?

The acquired accounts' 1.43% weighted average rate is below First Citizens' 2.07% Q2 2026 average deposit cost, so keeping the book near its original pricing would lower funding costs, but that rate advantage depends on retention through conversion.

What did the original transaction presentation project for earnings and capital?

It projected immediate earnings-per-share accretion and an approximately 27-basis-point reduction in the Common Equity Tier 1 capital ratio.

What costs does First Citizens face from the acquisition?

Original terms contemplated a premium of roughly 5% of acquired deposits, and First Citizens must absorb the expense of running 138 locations while integrating employees, technology, compliance systems, and customer records.