Bank of Montreal Planning to Turn Florida Trust Unit into Commercial

Chicago's Harris Bank and its parent, Bank of Montreal, are looking for a larger piece of the Florida banking market.

The banks announced this week that Harris Trust Company of Florida plans to convert its trust charter to that of a commercial bank with trust powers in two weeks. The idea is to provide "expanded and seamless services" to customers who migrate to Florida or retire there, said William Ross, a vice president with Bank of Montreal-Harris Bank.

Harris has had a trust and investment service presence in Florida for 15 years, with locations in Sarasota and West Palm Beach. It has primarily offered services like estate and trust fund management to wealthy customers.

With a banking charter-which Harris expects the Federal Reserve and the Federal Deposit Insurance Co. to approve by Dec. 15-Harris' Florida outpost could offer those customers all basic banking products, such as checking, deposits, and mortgage loans.

Harris also plans to move its West Palm Beach office to "a more visible location" and add nine employees to the branch, bringing its staff to 21.

Additional locations in Fort Lauderdale, North Miami/Bal Harbour, Naples, and Vero Beach will also be considered over the next three years.

Mr. Ross said recent consolidation among banks with Florida operations may benefit Harris as it looks to attract customers.

Harris targets two types of affluent customer, Mr. Ross said: the existing affluent, with at least $350,000 to $400,000 in investable assets, and the emerging affluent, with between $50,000 and $350,000.

David Ross Palmer, a New York-based private banking consultant, said the bid to capture "snowbird" business is defensive. Harris is up against some competition in the Florida, notably from Northern Trust Co. and Chase Manhattan Bank, he said. SunTrust Bank is also a viable competitor in there.

Nevertheless, Mr. Palmer said, Florida presents a fertile market, given the growth of affluence in the country as a whole.

Investors with $1 million or more to play with are on the increase, he noted. The affluent market nationwide is growing roughly 14% to 15% a year, according to PSI Global, a Tampa-based market research firm. That pace should continue for another 8 to 10 years, Mr. Palmer said.

Harris Bank has $22 billion of assets, and Bank of Montreal has $147 billion.

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