Roundup: Star Banc's Earnings Up Nearly 15% in 3Q

Third-quarter net income at Cincinnati, Ohio-based Star Banc Corp. reached $34.2 million, a nearly 15% increase. The gain was fueled by increases in net interest income, higher fee income and tight expense control, the bank said.

"Loan totals continue to grow ... and fee income is at an all-time high," said Jerry A. Grundhofer, chairman, president and chief executive.

The bank also credited its new consumer finance company for the jump in profits. Star Banc Finance Inc., a start-up, began operations in March. The company became profitable more quickly than expected, Mr. Grundhofer said.

Like many of its peers, Star Banc also benefited from a $3.8 million refund from the Federal Deposit Insurance Corp.

However, Star Banc's net interest margin suffered a seven basis point decline, to 4.53%, due to higher deposit costs.

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