Harris Bankcorp posted a 9 percent increase in second-quarter profits and said it might increase reserves in the third quarter to cover shaky Third World loans.
Most major U.S. banking companies have announced such reserve additions, which have resulted in a slew of dismal second-quarter results. Harris, a subsidiary of Bank of Montreal, said it is coordinating its review of the matter with its Canadian parent, ”with action anticipated in the third quarter.”
Harris, with assets of $9.98 billion, hasn`t disclosed its total exposure in less developed countries.
For the second quarter, Chicago`s third-biggest banking firm earned $20.8 million, up from $19.2 million a year earlier. Net interest income on a tax-equivalent basis rose 2 percent, to $89.3 million from $87.8 million.
Noninterest income increased 14 percent, to $52.1 million, with growth in trust revenues and service charges on deposits and higher earnings on bond and foreign exchange trading. Harris had a $1.5 million gain on the sale of residential mortgages and a loss of $113,000 on the sale of investment securities.
FIRST UNITED SHOWS 15% PROFIT INCREASE
First United Financial Services Inc.`s profits rose 15 percent in the second quarter, to $3.7 million from $3.2 million in the year-earlier period. Results for the latest period included an extraordinary after-tax gain of $967,639 related to termination of a noncontributory pension plan. Second-quarter 1986 profits included after-tax securities gains of $758,610.
Net interest income rose 20 percent, to $10.1 million, while the provision for loan losses increased 47 percent, to $711,000.
First United, a bank holding company based in Arlington Heights, had assets of $1.14 billion as of June 30.
MADISON FINANCIAL POSTS A 16% GAIN
Madison Financial Corp. posted a 16 percent increase in profits in the second quarter, to $259,000 from $223,000 in the year-earlier period.
Madison, a Chicago-based bank holding company, said the increase stemmed largely from substantially higher fee income at its three banking
subsidiaries.
As of June 30, assets stood at $175.8 million, up 4 percent from a year earlier.
11% PROFIT GAIN FOR FIRST MIDWEST
Earnings of First Midwest Bancorp Inc. of Naperville rose 11 percent in the second quarter, to $3 million from $2.7 million in the year-earlier period.
The increase stemmed from stronger net interest income and higher noninterest earnings. In addition, the provision for loan losses was cut 27 percent, to $974,000.
As of June 30, assets stood at $1.65 billion, up 4 percent from a year earlier. First Midwest owns 15 Illinois banks.
38% GAIN POSTED BY SUBURBAN BANCORP
Suburban Bancorp Inc. posted a 38 percent jump in profits in the second quarter, to $1.9 million from $1.4 million in the year-earlier period.
Net interest earnings grew 40 percent, to $5.5 million. Noninterest income rose 8 percent, to $1.2 million.
As of June 30, assets of the Palatine-based bank holding company stood at $566.5 million, up 46 percent from a year earlier.
