News Releases
Harris Announces In tent to Purchase First National Bank & Trust in Indiana
CHICAGO, September 27, 2006 – Harris today announced a definitive agreement to purchase central Indiana-based First National Bank & Trust for $290 million, furthering the personal and commercial banking presence for one of Chicago's largest financial institutions outside its traditional market.
First National Bank & Trust is a 32-branch community bank with locations in Indianapolis and the surrounding communities of Kokomo and Terre Haute. With $1.3 billion in assets, $920 million in deposits and $500 million in trust assets, First National Bank & Trust offers a range of retail and commercial banking products, as well as trust, investment and insurance services.
"This is truly a milestone event for Harris as we move toward our goal of being the leading personal and commercial community bank in the Midwest," said Ellen Costello, Chief Executive Officer, Harris. "We are pleased to bring our customer-focused, community-based approach to the First National Bank & Trust customers. Indianapolis is the second-fastest growing market in the U.S. Midwest and, with a population of about 1.7 million, it presents wonderful opportunities as we pursue our goal of doubling in size in the next five years.
"In particular, Indianapolis is an attractive market for our small- and mid-market business banking capabilities. We have a long history of serving these customers and we believe, the market will be very receptive to the experience and expertise we offer," Costello added.
The acquisition is anticipated to be completed in January 2007, subject to approvals from U.S. and Canadian regulators. Excluding one-time items, the transaction will be modestly accretive to cash earnings per share of Harris parent company, BMO Financial Group (NYSE, TSX: BMO), in year one. The purchase price of US$290 million represents a multiple of 2.2 times the book value of First National Bank & Trust.
"W e're really pleased to be partnering with Harris, and we see this relationship as a very good fit. We have been impressed with the commitment to employees, exceptional customer service and community involvement that are hallmarks of the Harris organization," said John O'Donnell, President of First National Bank & Trust.
Harris N.A. has more than 200 locations and nearly 550 Harris-branded ATMs across Chicago, its suburbs and northwest Indiana. When the acquisition closes, Harris will have 233 branches and will be closer to its goal of 350 to 400 locations across the Midwest. With $38.3 billion in assets and $26.2 billion in deposits, Harris is the second-largest bank based on branches in the Chicago market. Additionally, Harris has affiliated wealth management offices in Arizona, California, Florida, Georgia, Virginia and Washington.
About Harris
Harris is an integrated financial service organization providing more than 1 million personal, business and corporate clients with banking, lending, investing and wealth management solutions. The organization is a member of the BMO Financial Group (NYSE, TSX: BMO), which also provides corporate and investment banking services in the U.S. under the BMO Capital Markets name.
CONTACTS:
Media Relations:
Amy Yuhn, Chicago, amy.yuhn@harrisbank.com, (312) 461-2478
Ralph Marranca, Toronto, ralph.marranca@bmo.com, (416) 867-3996
Investor Relations:
Viki Lazaris, Toronto, viki.lazaris@bmo.com, (416) 867-6656
HarrisTM is a trade name used by various financial service subsidiaries of Harris Financial Corp. Banking products and services are provided by Harris N.A., The Harris Bank, N.A. and their bank affiliates. Members FDIC.
Brokerage products are offered through Harris Investor Services, Inc. (HIS), a registered broker/dealer, member FINRA/SIPC, and SEC registered investment adviser. Insurance and annuities are offered through Harris Bancorp Insurance Services, Inc. (HBIS). Securities are provided by BMO Capital Markets Corp. (BMOCM), a registered broker dealer and member NYSE, FINRA and SIPC. HIS, HBIS and BMOCM are affiliated companies and are wholly owned subsidiaries of Harris Financial Corp. Products offered by HIS, HBIS and BMOCM are Not Insured by the FDIC or any Federal Government Agency, Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate, May Lose Value. The purchase of insurance or an annuity is not a condition to any bank loan or service. Financial planning and investment advisory services are provided by Sullivan, Bruyette, Speros & Blayney, Inc., an SEC registered investment adviser. Family Office Services are provided by Harris myCFO, Inc. Investment advisory services are offered by Harris myCFO Investment Advisory Services LLC, an SEC registered investment adviser and wholly-owned subsidiary of Harris myCFO, Inc. Not all products and services are offered in every state and/or location.
