- Harris N.A. CEO indicates company wants to expand operation with purchase of First National Bank & Trust
By FRANK PHILLIPS
First National Bank & Trust, Kokomo, Ind., the parent company of First National Bank & Trust in Brazil, has been sold to the Harris N.A. banking group for $290 million in a deal announced Wednesday, according to a PR Wire news release.
The impact on the local bank was not immediately disclosed, but Harris's CEO said Harris wants to expand its operations.
"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."
The acquisition is anticipated to be completed in January 2007, subject to approvals from U.S. and Canadian regulators.
The purchase price of $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.
First National Bank & Trust in Indiana operates 32 banks in Indiana, including Sullivan State Bank, Sullivan, originally chartered in 1870; First Bank & Trust Company, Brazil, originally chartered in 1899; Farmers Loan & Trust in Tipton,originally chartered in 1901; First National Bank of Martinsville, originally chartered in 1932; and First National Bank of Kokomo, established in 1946, according to the First National Web site.
The company has offices in Brazil, Carlisle, Carmel, Clay City, Farmersburg, Indianapolis, Kokomo, Logansport, Marion, Martinsville, Mooresville, Noblesville, Plainfield, Richmond, Shelburn, Sullivan, Terre Haute, and Tipton.
In 1976 Hart and Mark Hasten of Indianapolis, purchased controlling interest in First National Bank of Kokomo. Over the next 12 years they acquired controlling interest in the four remaining banks.
In 1988, a bank holding company was formed under the name of Hasten Bancorp-- later changed to Hasten Bancshares. In 1998, the final consolidation involving the original five banks, occurred as First Bank & Trust and First National Bank, consolidated to become First National Bank & Trust.
First National Bank & Trust is one of the largest privately held banks in Indiana with assets totaling almost $1.3 billion. In addition, Trust assets total more than $400 million.
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 Markets name.
Harris 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.