Harris bank names first female CEO

Harris Bankcorp has picked a New York investment banker and its first woman ever to take the chief executive post at the Chicago-area's third-biggest bank.

Ellen Costello, currently head of BMO Capital Markets in New York, will start the job in Chicago on Aug. 1, Harris parent BMO Financial Group of Toronto announced Wednesday.

Costello, 51, replaces Frank Techar, who left Harris last month to run BMO's Canadian banking business.

Costello, who grew up in suburban Boston and attended college in Canada, joined BMO in 1983, and also has worked in corporate banking and in Asia for the company. Most recently, she has been responsible for credit investment management and merchant banking.

"Ellen has built an impressive track record of success, leading complex businesses in competitive markets over 23 years at our company," Bill Downe, chief operating officer of BMO Financial Group, said in a statement. She will report to Downe.

Although her resume appears light on retail banking experience, Costello points out that she has worked in that segment of the industry.

"I started my career, way back before I joined BMO, at a smaller bank in Canada and did personal and commercial lending for about five years, so I have some context, but granted that's a number of years back," she said.

"One of the benefits I've had in my career is the chance to take on new challenges. I like learning. I've already worked quite a bit with our colleagues at Harris and in the private bank because in the United States we're very focused on the midmarket segment."

Costello steps into the Harris job at a time when its profits have been under pressure. And while its number of Chicago-area branches has grown to 200 from 145 in recent years, corresponding gains in market share have been harder to come by.

Costello also faces the task of helping to execute Harris' oft-stated goal of doubling its U.S. presence to 350 to 400 branches, through organic growth and acquisitions.

At least one Chicago-area banking observer found Costello a curious choice for the top job at Harris.

"She has a capital markets background, and that's an interesting move because she won't be doing capital markets here," said the banker, who preferred not to be identified.

However, the banker speculated that her investment banking credentials could be useful if Harris is ramping up to do a deal.

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.