CHICAGO, Sept. 27 /PRNewswire/ -- 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
First National Bank & Trust is a 32-branch community bank with
locations in Indianapolis and the surrounding communities of Kokomo and
Terre Haute, including Brazil. 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
"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: BMO ; TSX), 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.
"We'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.
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: BMO ; TSX), which also provides
corporate and investment banking services in the U.S. under the BMO Capital
Harris(TM) 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.
Brokerage products are offered through Harris Investor Services, Inc.
(HIS), a registered broker/dealer, member NASD/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,
NASD 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.