BMO Financial Group’s U.S.-based subsidiary, Harris Financial Corp., has reached a definitive agreement to purchase First National Bank & Trust for US$290 million, BMO announced today. The acquisition expands Harris’s personal and commercial banking services further into the Indiana market.

First National Bank & Trust has 32 branches and 33 automated banking machines in Indianapolis and the surrounding communities of Kokomo and Terre Haute. With US$1.3 billion in assets and US$920 million in deposits as well as more than US$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.

With more than 200 branches and nearly 550 Harris-branded ABMs across Chicago, its suburbs and northwest Indiana, Harris is already the second-largest bank in the Chicago market based on branches. When the acquisition is completed, Harris will have 233 branches and will move closer toward its goal to become the leading personal and commercial bank in the U.S. Midwest by building a network of 350 to 400 branches.

“This acquisition provides a base from which we can grow in the important Indianapolis market,” said Tony Comper, president and CEO of BMO Financial Group. “Indianapolis is the second-fastest growing market in the U.S. Midwest and, with a population of about 1.7 million, it presents significant opportunities for us as we move toward our ambition of being the leading personal and commercial bank in that region.”

The acquisition, which is subject to approvals from U.S. and Canadian regulators, is anticipated to be completed in January 2007.