News Releases

KANSAS ECONOMY SLOWLY GATHERING MOMENTUM
Real GDP Expected to Expand 2% in 2012

• Job Market Firming
• Farm Values Continue to Expand
• Export Growth Strong

Kansas City, KS (Feb. 17, 2012) - The Kansas economy gathered some momentum in late 2011, helped by a firming job market and strong export growth; while housing activity remains quiet, according to the State Monitor Report released today by BMO Capital Markets Economics.

Kansas employment growth gained impetus toward the end of 2011, adding more than 17,000 to nonfarm payrolls since June. Nonfarm employment was up one percent year over year in December, wit h strong performances in the second half of the year in professional services, construction and manufacturing. Government hiring also improved after steep declines early in the year. With the improvement in job growth, the unemployment rate continues to fall, and at 6.3 percent, sat well below the national average in December. Before the housing downturn began in 2006, Kansas sported a jobless rate (4.4 percent) in-line with the national average, but has since fallen 2.2 percentage points below that for all of the U.S., a testament to the state's lack of exposure to the housing bubble, and subsequent relatively stable economic performance during the recession.

"Although Missouri River flooding and drought conditions in part of the state had a negative impact on crop output last year, farm values continue to expand at a brisk pace," said Sherry Cooper, Chief Economist, BMO Financial Group.

Non-irrigated farmland up more than 20 percent year over year in Q3 according to the Fed's agriculture credit conditions survey.

Exports of continue to rise, and have nearly reached pre-recession highs, up 23 percent year over year in 2011 Q3. Agricultural and food products exports have been very strong. Boeing's plans to shut defense operations in Wichita, the result of lower U.S. military spending, could cost the state 2,000 jobs.

According to Dave Lindstrom, Senior Vice President at M&I, a part of BMO Financial Group, "Our local knowledge, sector expertise and mid-market focus are a real advantage to helping our customers find solutions to help them invest and upgrade their businesses."

The full State Monitor report can be downloaded at bmocm.com/economics.

About BMO Harris Bank N.A.
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through approximately 700 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. B MO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Banksm, M&I® and Harris® are trade names used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.

BMO Harris Bank is a trade name used by BMO Harris Bank N.A. Banking deposit and loan products and services are provided by BMO Harris Bank N.A. Member FDIC. Brokerage products are offered through Harris Investor Services, Inc. (HIS), a registered broker/dealer, member FINRA/SIPC, and SEC-registered investment advisor. Insurance products are offered through Harris Bancorp Insurance Services, Inc. (HBIS). Investment banking services are provided by BMO Capital Markets Corp. (BMOCMC) and BMO Capital Markets GKST, Inc. (GKST), a Municipal Bond Dealer and member FINRA and SIPC. Financial planning and investment advisory services are provided by Sullivan, Bruyette, Speros & Blayney, Inc. (Harris SBSB), an SEC registered investment advisor. Family Office Services are provided by Harris myCFO, Inc. Investment advisory services are offered by Harris myCFO Investment Advisory Services LLC (Harris myCFO), an SEC-registered investment advisor and wholly-owned subsidiary of Harris myCFO, Inc. Stoker Ostler Wealth Advisors (Stoker Ostler) is an SEC-registered investment advisor. Investment advisory services to institutional clients are provided by Harris Investment Management (HIM) or its wholly-owned subsidiary HIM Monegy (Monegy), SEC-registered investment advisors. Products offered by HIS, HBIS, BMOCM, Harris SBSB, Harris myCFO, Stoker Ostler, HIM, and Monegy, which are affiliated companies and wholly owned subsidiaries of BMO Financial Corp.,: Are not insured by the FDIC or any Federal Government Ag ency, not a deposit of or guaranteed by any Bank or Bank Affiliate, may lose value. The purchase of insurance or an annuity is not a condition to any bank loan or service. Not all products and services are offered in every state and/or location.