The U.S. Federal Reserve Board yesterday approved Bank of Montreal’s proposed acquisition of Edville Bankcorp, Inc. and its subsidiary bank, Villa Park Trust & Savings Bank, both both of Villa Park, Illinois.

The Fed noted that BMO is the 32nd largest depository organization in the U.S., and Villa Park Bank is just the 138th largest insured depository institution in Illinois, controlling deposits of approximately US$240.5 million. While BMO subsidiary Harris Bank and Villa Park Bank compete directly in the Chicago banking market, it found the deal is not a threat to competition.

The U.S. Department of Justice also has reviewed the anticipated competitive effects of the proposal and advised the Fed that the deal would not likely have a significant adverse effect on competition in any relevant banking market.

In July BMO announced the deal. The purchase price is $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 accretive in year two, excluding one-time costs.