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INDIANAPOLIS-Harris has announced a definitive agreement to acquire Indianapolis-based First National Bank & Trust for $290 million. The buy will add 32 branches to Harris' existing 201 locations across the Chicago suburbs and Northwest Indiana.
Harris, a subsidiary of Toronto-based BMO Financial Group, previously announced plans to have between 350 and 400 locations across the Midwest. This acquisition "presents wonderful opportunities as we pursue our goal of doubling in size in the next five years," says Harris CEO Ellen Costello in a statement.
The First National branches are in Indianapolis, Kokomo and Terre Haute, IN. Costello says, "Indianapolis is the second-fastest growing market in the US Midwest," and has a population of about 1.7 million. "In particular, Indianapolis is an attractive market for our small- and mid-market business banking capabilities," she adds.
"We have made the necessary investments in our technology platform and operating model so that all existing Harris branches can operate on the same advantaged platform, and we are ready to absorb future acquisitions more quickly and cost-effectively," says Bill Downe, COO of parent company BMO, in a statement. A Harris spokeswoman tells GlobeSt.com the Chicago-based company has been actively adding Harris branches and adding others through mergers and acquisitions during the past few years. This month Harris opened a second branch in Addison, IL.
The transaction is subject to approvals from US and Canadian regulators and is expected to close in January 2007. The $290-million pricetag represents a multiple of 2.2 times the book value of First National, according to the Harris statement.
First National has $1.3 billion in assets, $920 million in deposits and $500 million in trust assets. In addition to retail and commercial banking products, it offers trust, investment and insurance services. Harris has $38.3 billion in assets and $26.2 billion in deposits. Based on branches in the Chicago market, it is the second-largest bank in the market. It is also affiliated with wealth management offices in Arizona, California, Florida, Georgia, Virginia and Washington.
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