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BMO Financial Group Annual Report 200410
U.S. Operations
This year saw further expansion and growth in our
U.S. operations across all our lines of business. Our strong franchise
continues to distinguish us as the Canadian leader
in U.S. banking. Here are some highlights.
Continued Expansion
Expanding our reach allows us to pro-
vide added convenience for existing
Harris personal and business banking
customers while giving new customers
access to our broad range of excellent
products and services. Last year, we
acquired New Lenox State Bank, a well-
respected community bank with key
locations in Chicago’s southwestern
suburbs, and Lakeland Community Bank,
with locations in the fast-growing Lake
County region. We also opened nine
new branches bearing the Harris name
in the Chicago area.
Purchase price
Date Acquisition (Canadian $ in millions)
1984 Harris Bank $ 718
1985 First National Bank of Barrington 43
1987 Commercial State Bank (Phoenix) 3
1988 State Bank of St. Charles and
First National Bank of Batavia 31
1990
Libertyville Federal Savings and Loan
7
1990 Frankfort Bancshares 20
1994 Suburban Bancorp 300
1996 Household International 378
1999 Burke, Christensen & Lewis 59
2000 Village Banc of Naples 19
2000 Freeman Welwood 140
2000 Century Bank 24
2001 First National Bank of Joliet 337
2002 CSFBdirect 854
2002 Northwestern Trust 19
2002 Self-directed online client
accounts of Morgan Stanley
Individual Investor Group 153
2002 myCFO 61
2003 Sullivan, Bruyette, Speros & Blayney 20
2003 Gerard Klauer Mattison 40
2004 Lakeland Community Bank 49
2004 New Lenox State Bank 314
Total $3,589
Business Overview
+26%
Based on U.S. dollars, earnings for
our Chicagoland Banking increased
26% during 2004.
1,500
Our Investment and Corporate Banking
group has relationships with more
than 1,500 mid-market clients and
many of these relationships have
endured for decades.
+22%
Through a combination of acquisitions
and improved client segmentation,
we have seen an annual compound
growth rate of 22%, based on U.S.
dollars, in our wealth management
business revenues since 2001.
In October 2004, we announced our intention
to acquire Mercantile Bancorp Inc., a highly
regarded community bank that serves personal
and business customers at 19 branch
locations
in northwest Indiana. It is the first retail bank-
ing expansion for us into a neigh
bouring state
and a natural extension for Harris.
When this
acquisition closes, it will increase the Harris
community banking net
work to 189 locations
in the Midwest and further expand the net-
work to more than 500 Harris ABMs.
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McHenry
Kane
Kendall
Lake
Du
Page
Cook
Will
Lake
(IN)
Porter
(IN)
U.S. Midwest
Branches
Harris
Lakeland
NLSB
Mercantile
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A Heritage of “Honesty and Fair Dealing”
For more than 120 years, the Harris
name has symbolized “honesty and fair
dealing” in the Chicago area. In recogni-
tion of the strength and trustworthiness
our customers have come to associate
with this name, we adopted a unified
brand – Harris
TM1
– for all our U.S.-based
businesses in 2004.
Retail Expansion