Bank of Montreal Plans to Double U.S. Branches

Bank of Montreal, Canada's fifth- biggest bank by assets, plans to double its branches in the U.S. Midwest to about 400 over the next five years.

The Toronto-based bank is also looking for acquisitions to expand in the Chicago area and neighboring states, Frank Techar, head of the Harris Bank unit told investors today at a conference sponsored by Merrill Lynch & Co. in New York.

``We're positioned to step up the pace of acquisitions,'' Techar said in a presentation broadcast over the Internet.

Bank of Montreal has spent about C$1.5 billion ($1.26 billion) since 1999 on acquisitions in the U.S. Midwest. Harris Bank is the third-biggest bank in the Chicago area by deposits, with 10 percent market share as of June 30, according to SNL Datasource information.

Harris has about 180 branches in the Chicago area and another 20 in northwest Indiana. The lender expects to open another 20 outlets in Chicago by 2007.

Smaller competitors may be forced to ``consider their options'' as costs for governance and regulatory compliance rise and higher interest rates slow consumer and business demand for credit, he said.

Bank of Montreal Chief Executive Officer Anthony Comper said earlier this year the bank could spend as much as $2 billion expanding into the U.S. Midwest, in states such as Illinois, Michigan, Kansas, Missouri and Wisconsin.

Bank of Montreal shares rose 25 cents to C$58.31 by 12:32 p.m. trading on the Toronto Stock Exchange.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.