By Jeff McKinney
The Cincinnati Enquirer

Many large banks, including those with Tristate operations, are hoping that business lending will be a key to higher profits this year. That would be a shift from last year when consumer lending helped fuel earnings.

Several banks, including Cincinnati's Fifth Third Bancorp and Columbus' Huntington Bancshares Inc., have told Wall Street banking analysts that they are leaning toward more lending to medium-sized businesses as demand for mortgage and consumer lending will weaken, particularly if the economy improves and interest rates rise.

Fifth Third executives told analysts last week after reporting record earnings for 2002 that the middle market remains brisk, offering more potential loan growth.

And executives at Huntington Bancshares, which operates 28 branches locally, said it will focus on business lending this year to help boost overall profits.

Fifth Third unit adds two clients

Fifth Third Bank Processing Solutions, formerly known as Midwest Payment Systems, has signed two deals that could generate up to $725,000 in additional fee income for its parent company.

The Fifth Third data-processing unit will process more than 950,000 debit and credit card transactions a year for Tulsa, Okla.-based May's Drug Stores Inc.

The unit also has agreed to handle online debit processing for Nashville, Tenn.-based footwear maker and retailer Genesco. It will process more than 500,000 transactions annually for Genesco's Journeys, Journey Kidz, Jarman and Underground Station stores.

County offers online billing

U.S. Bank and the Butler County treasurer's office have signed a deal that will allow residents there to pay their property taxes via the Internet.

The system means that residents can make payments online to Treasurer Carole B. Mosketti before the first half of real estate property taxes are due Feb. 14.

Residents also will able to pay water and sewer bills online via Web site.

Two appointed to Fed branch

Two Tristate business executives have been appointed to the Cincinnati branch of the Federal Reserve Bank of Cleveland, one of 12 banks that make up the Federal Reserve System. In addition, another was reappointed to the Cleveland Fed board.

Dennis C. Cuneo, senior vice president of Toyota Manufacturing North America Inc. in Erlanger, was named board chairman and a director of the Cincinnati branch. In addition, V. Daniel Radford, executive secretary-treasurer of the Cincinnati AFL-CIO Labor Council, was reappointed a director of the Cincinnati branch.

Phillip R. Cox, president and chief executive of Cox Financial Corp. in Cincinnati, was reappointed director of the Federal Reserve Bank of Cleveland, with branches in Cincinnati and Pittsburgh.

The appointments also come as the Cleveland Fed appointed Robert Mahoney its new chairman, replacing David Hoag.

E-mail jmckinney@enquirer.com