The effects of last year's interest rate increases are still being felt at some Midwest banks and thrifts, including Cleveland-based Keycorp, which reported second-quarter net income down 10.3%, to $199 million.

Firstar Corp., Milwaukee, was able to overcome higher costs of funds to report an 8.5% increase in quarterly net income, to $53.8 million. And loan growth, securities gains, and cost controls helped Chicago-based Harris Bank post record net income of $42.1 million, up 15%.

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