Former prominent Tristate banker Ralph S. “Mike” Michael III, who played a key role in getting new stadiums built for the Bengals and Reds, is stepping down from one of the executive positions at the parent of PNC Bank.

        Mr. Michael, 47, will depart as chief executive of PNC Advisors, the money management unit for the banking comp anies, effective Sept. 30, to pursue other opportunities. PNC Bank and PNC Advisors are part of PNC Financial Services Group Inc.

        His departure comes after the Pittsburgh-based bank last month settled a case with federal regulators over how the bank accounted for $762 million in bad loans last year. The bank restated 2001 profits to reflect the loans in financial statements, reducing earning s. As part of the settlement, PNC agreed to regulatory approval before making certain business decisions and hired a consultant to review many of its management functions.

        Mr. Michael ran PNC Bank Ohio in Cincinnati from 1992 to 1996 before heading to Pittsburgh to run the firm's corporate banking unit.

Commercial, industrial loans predicted weak

        The demand for commercial and industrial loans, typically one of banks' biggest sources of profits, could remain weak for about three years, some industry experts say.

        If that trend does occur, it could force banks to find another way to boost earnings such as trimming expenses more, they say.

        Profits at many U.S. banks — including those in the Tristate — have been hit hard the past couple of years as the we aker economy and Sept. 11 terrorist attacks hurt companies' ability to repay loans.

        For instance, five of the seven largest banks with Cincinnati operations had their worst

        recent quarters in the fourth quarter of 2001, forcing them to spend hundreds of millions of dollars to cover bad loans and increase reserves for potential losses. One problem is that many U.S. companies are already deeply in debt and not prepared to take on more new loans, Adam Compton, an analyst at Keefe, Bruyette & Woods Inc., told industry publication American Banker. He said those companies instead are more inclined to repay existing debt. Mr. Compton said small- and medium-size banks might feel less of a squeeze than larger banks, which have more business loans. But he said all banking companies could feel the pinch.

        Keith Leggett, an economist at the American Bankers Association, predicted that business loan growth would be in the low single-digits range next year, suggesting slow demand for that business.

        Not all industry experts agree.

        Ken Mayland, former chief economist at KeyCorp and president of ClearView Economics in Pepper Pike, Ohio, is more optimistic.

        He said ca pital spending and business inventories are beginning to improve. Mr. Mayland said although some companies might keep reducing debt, the Federal Reserve's policy of low interest rates and expanding money supply could prevent a credit crunch such as that of the 1990s..

5/3 investing $5M to boost divisions

        Fifth Third Bank is investing about $5 million as part of marketing efforts to boost business in its mortgage and investment units.

        The Cincinnati company will spend about $1.5 million — including $222,000 locally — to promote “Wild About Home Loans,” a campaign to boost mortgage lending to all residents.

        The effort will include loans to low-income and minority residents with no money down; FHA/VA loans; jumbo loans for home purchases over $300,000; and prime-rate loans with a 4.95 annual percentage rate.

        The bank plans to invest $3.5 million as part of its campaignto generate more businesses from consumers planning to invest in such things as mutual funds, stocks and individual retirement accounts.

        Contact Jeff McKinney at 768-8499; fax 564-6991; or e-mail jmckinney@enquirer.com.

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