January 17, 2023

Federal Reserve Board announces approval of application by Bank of Montreal and BMO Financial Corp.

For release at 5:00 p.m. EST

The Federal Reserve Board on Tuesday announced its approval of the application by Bank of Montreal, of Montreal, Canada, and BMO Financial Corp., of Wilmington, Delaware, to acquire BancWest Holding Inc., and thereby indirectly acquire Bank of the West, both of San Francisco, California.

In connection with the Board's approval, Bank of Montreal has committed to provide the Board and the Federal Deposit Insurance Corporation with an interim update to its resolution plan reflecting the combined organization. Additionally, because BMO Financial Corp. would become subject to heightened prudential standards following the transaction, Bank of Montreal will provide implementation plans for how it will comply with those standards when applicable.

BMO Financial Corp. normally is on a two-year stress test cycle and received a new capital requirement last year. However, because the firm's capital requirement will not include the effects of today's acquisition until 2024, the Board will recalculate the bank's capital requirement based on the 2023 stress test to provide the firm with an updated requirement in the interim.

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