Investors often skip Bank of Montreal (TSX:BMO)(NYSE:BMO) when looking for a Canadian financial institution to put in their portfolios, but there are reasons to give Canada’s oldest bank a closer look.

Balanced earnings

Bank of Montreal reported adjusted net income of $1.1 billion, or $1.71 per share in Q2 2015, a solid increase from the $1.63 it earned in 2014.

In Canada the company’s personal and commercial banking unit is doing well considering the headwinds facing all the Canadian banks. The group contributed adjusted Q2 net income of $487 million, which was a slight improvement over the previous year. Revenues increased by 4% and deposits rose by 7%.

Bank of Montreal’s U.S. operation is much larger than many investors realize. With more than 600 branches and two million customers located in the U.S. Midwest, Bank of Montreal is benefiting from the ongoing recovery in the U.S. economy.

Q2 adjusted net income from U.S. personal and commercial banking hit $176 million, a solid jump from the $154 million earned the year before. A 17% increase in commercial loans helped support earnings growth.

Wealth management is another area that Bank of Montreal is relying on to drive future revenue growth, and the company now has operations in Canada, the U.S., Europe, and Asia.

Net income in the wealth management division increased by 34% in the second quarter as assets under management grew by 36%.

Bank of Montreal also runs a capital markets division. This area of operations tends to be more volatile and earnings can vary widely from one quarter to the next. The company had much stronger earnings from the group in Q2 compared with the first quarter of 2015, but the year-over-year performance was a bit weak.

Investors should find comfort in the diversified revenue stream, especially as fears grow about a possible Canadian recession.

Dividends and share buybacks

Bank of Montreal recently increased its quarterly dividend to $0.82 per share, which is good for a yield of 4.4%. The company has given shareholders a piece of the profits every year since 1829. That’s a pretty good track record and investors should see the trend continue.

Bank of Montreal also repurchases its stock, which translates into a bigger slice of the pie for every shareholder. Six million shares have been repurchased in the last two quarters.

Good value

Bank of Montreal is an attractive investment at current prices. The stock is now trading for less than 11 times forward earnings and just 1.4 times book value.

Should you buy Bank of Montreal?

If you have a long-term perspective, Bank of Montreal is a solid dividend bet and is now trading at a reasonable price. In the short term the stock could continue to drift lower, so it might be a good idea to wade in slowly.

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Fool contributor Andrew Walker has no position in any stocks mentioned.