BMO Financial Group says that its U.S. subsidiary, Harris Bank, has signed at deal to acquire a two-branch bank operating in the Chicago area.

Lakeland Community Bank.is a privately held, full-service community bank with $US171 million in assets and $US148 million in deposits as of June 30, 2003. Headquartered in Round Lake Heights, Illinois, Lakeland has two locations in the fast-growing Lake County region of greater Chicago.

This is the 12th transaction by BMO Financial Group in the U.S. in just over three years.

“Lakeland is a high-performing community bank and this acquisition complements our existing expansion plans by giving us the opportunity to extend our presence in a very attractive market,” said Frank Techar, [resident and CEO, Harris Bank.

“The Harris franchise is the foundation upon which BMO bases the extension of our U.S. growth strategy,” said Tony Comper, chairman and CEO, BMO Financial Group. “Demographically and economically, the Chicago area continues to be one of the most dynamic in the United States. Lakeland represents a valued addition to our existing branch network.”

Comper noted that Harris added eight new branches in 2003, and is on track to reach 200 locations throughout the greater Chicago area over the next few years.

This acquisition, which is expected to close by no later than the first quarter of 2004, subject to regulatory approval, will increase Harris Bank’s network to 155 locations and nearly 450 ATMs throughout the greater Chicago area.