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BMO
Financial Group Announces Intent to Purchase Villa Park Trust
and Savings Bank TORONTO, July 7, 2005 – BMO Financial Group (TSX, NYSE: BMO), and its U.S.-based subsidiary, Harris Bankcorp, Inc., today announced a definitive agreement to purchase Edville Bankcorp, Inc. and its subsidiary, Villa Park Trust and Savings (Villa Park Bank). Founded in 1922 and headquartered in Villa Park, Illinois, Villa Park Bank is a privately held community bank with US $288 million in assets and US $263 million in deposits as of March 31, 2005. Villa Park Bank has two locations in the growing DuPage County region, which is located approximately 30 kilometers outside of downtown Chicago. The purchase price is CDN $80.6 million (US $65.5 million). The impact of the transaction on BMO cash earnings per share will be neutral in year one and modestly accretive in year two. In making the announcement, BMO President and CEO, Tony Comper, stated, “We are continuing with our strategy of pursuing opportunities within Chicagoland and in the neighbouring states that are a good fit for our business.” “Villa Park Bank is a well-regarded community bank with two desirable locations in DuPage County that nicely complement our existing expansion plans in the Chicagoland area,” said Frank Techar, President and CEO, Harris Bankcorp, Inc. “We look forward to welcoming new customers and employees and extending the convenience and wider range of Harris products and services to customers in these communities.” The deal is expected to close in the fall of 2005, subject to receipt of regulatory approval. Following the closing of this transaction, the acquisition will increase Harris’ network to 173 locations in the Chicagoland area with an additional 19 branches in Northwest Indiana. Harris also has more than 500 automated banking machines (ABMs) in the region. With additional new branches planned, Harris is on track to grow to 200 locations throughout the Chicagoland area (excluding Northwest Indiana) over the next few years. “We are proud to be joining an organization that is committed to being the Midwest’s leading personal and business bank whose goal is to focus on its customers and their needs,” said William Stege, President and Chairman of the Board, Villa Park Bank. “Harris’ strong focus on community banking, community involvement and customer service will serve our communities well.” Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $292 billion as at April 30, 2005, and more than 33,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and solutions. BMO Financial Group serves clients across Canada through its Canadian retail arm, BMO Bank of Montreal, and through BMO Nesbitt Burns, one of Canada’s leading full-service investment firms. In the United States, BMO serves clients through Chicago-based Harris, an integrated financial services organization that provides more than 1.5 million personal, business, corporate and institutional clients with banking, lending, investing, financial planning, trust administration, portfolio management, family office and wealth transfer services. For more information, please visit www.bmo.com or www.theharris.com. - 30 - Contacts:Media Relations Michael Edmonds,
Toronto, (416) 867-3996 Investor Relations Susan Payne, Toronto, susan.payne@bmo.com, (416) 867-6656 |