UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Form 10-K
  ANNUAL REPORT UNDER
    SECTION 13 OR 15(d)
 OF THE SECURITIES EXCHANGE ACT
    OF 1934
 For the
    fiscal year ended December 31, 2010
  Commission file number 1-13805
 Harris Preferred Capital
    Corporation
 (Exact name of registrant as
    specified in its charter)
  Maryland(State or other
    jurisdiction
    of incorporation or organization)

# 36-4183096(I.R.S. Employer
    Identification No.)111 West Monroe Street, Chicago, Illinois(Address of principal
    executive offices)

60603(Zip
    Code)   Registrants telephone number, including area code:
 (312) 461-2121
  Securities registered pursuant to Section 12(b) of the
    Act:
  Title of Each Class

Name of Each Exchange on Which Registered73/8%
    Noncumulative Exchangeable
    Preferred Stock, Series A, par value
    $1.00 per share

New York Stock Exchange   Securities registered pursuant to Section 12(g) of the
    Act:
 None
  o þ
  o þ
  Regulation S-T o o
  þ o
  Regulation S-K Form 10-K Form 10-K. þ
  12b-2
  Large
    accelerated
    filer o
    Accelerated
    filer o
    Non-accelerated
    filer þ
    Smaller
    reporting
    company o   Rule 12b-2 o þ




---



##### 





Harris
    Preferred Capital Corporation
  TABLE OF
    CONTENTS
   
 Part IItem 1.


Business


2Item 1A.


Risk Factors


7Item 1B.


Unresolved Staff Comments


13Item 2.


Properties


13Item 3.


Legal Proceedings


13Item 4.


Reserved


14Part IIItem 5.


Market for the Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


14Item 6.


Selected Financial Data


15Item 7.


Managements Discussion and Analysis of
    Financial Condition and Results of Operations


16Item 7A.


Quantitative and Qualitative Disclosures About
    Market Risk


19Item 8.


Financial Statements and Supplementary Data


20Item 9.


Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


20Item 9A.


Controls and Procedures


20Item 9B.


Other Information


21Part IIIItem 10.


Directors, Executive Officers and Corporate
    Governance


21Item 11.


Executive Compensation


24Item 12.


Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


24Item 13.


Certain Relationships and Related Transactions,
    and Director Independence


24Item 14.


Principal Accounting Fees and Services


25Part IVItem 15


Exhibits, Financial Statement Schedules.


25(a) Exhibits24 Power of Attorney31.1 Certification of Pamela C. Piarowski pursuant to
    Rule 13a-14(a)31.2 Certification of Paul R. Skubic pursuant to
    Rule 13a-14(a)32.1 Certification pursuant to 18 U.S.C. Section 1350.(b) Reports on
    Form 8-KNoneSignatures


28   1




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##### 



PART I  Forward-Looking
    Information
  Form 10-K
  ITEM 1.
    BUSINESS  General
    3 8 3 8
 2




---



##### 



pari passu
        Business
   3




---



##### 



4




---



##### 



and/or
      day-to-day
 5




---



##### 



Employees
    Environmental
    Matters
  clean-up, clean-up clean-up.
  Qualification
    as a REIT
   6




---



##### 



Year Ended December 31, 2010Dividends














Amount inper share


# of Shares


Declared Date


Record Date


Paid Date


ThousandsPreferred Dividends

$
.46094



10,000,000



03/05/2010



03/15/2010



03/30/2010


$
4,609.46094



10,000,000



06/11/2010



06/15/2010



06/30/2010



4,609.46094



10,000,000



09/02/2010



09/15/2010



09/30/2010



4,610.46094



10,000,000



12/02/2010



12/15/2010



12/30/2010



4,610$
18,438     Year Ended December 31, 2009Dividends














Amount inper share


# of Share


Declared Date


Record Date


Paid Date


ThousandsPreferred Dividends

$
.46094



10,000,000



03/05/2009



03/15/2009



03/30/2009


$
4,609.46094



10,000,000



06/11/2009



06/15/2009



06/30/2009



4,609.46094



10,000,000



09/02/2009



09/15/2009



09/30/2009



4,610.46094



10,000,000



12/02/2009



12/15/2009



12/30/2009



4,610$
18,438Common Stock Dividends

$
221



1,180



05/28/2009



06/15/2009



06/22/2009


$
2611,695



1,180



12/02/2009



12/15/2009



12/30/2009



2,000$
2,261   ITEM 1A.
    RISK
    FACTORS  No. 333-40257)),
  Declining
    interest rates will reduce earnings of the Company
      Dividends
    may not be authorized quarterly by our Board of Directors and
    dividends not authorized will not be paid
   7




---



##### 



Dividends
    and operations of the Company restricted by
    regulation
        Automatic
    exchange for Bank Preferred Shares could occur when value of
    Bank Preferred Shares is impaired
   8




---



##### 



Bank
    Preferred Shares will not be listed on any exchange and markets
    may not be liquid
    Adverse
    consequences of failure to qualify as a REIT
      REIT
    requirements with respect to stockholder
    distributions
   9




---



##### 



Redemption
    upon occurrence of a Tax Event
    Illinois
    Tax Law Change
    Automatic
    exchange upon occurrence of the Exchange Event
  one-for-one
  Relationship
    with the Bank and its affiliates; conflicts of
    interest
  day-to-day and/or and/or
  and/or and/or
 10




---



##### 



Risk
    of future revisions in policies and strategies by Board of
    Directors
    Possible
    leverage
    Additional
    issuances of preferred stock could have dilutive
    effect
    RISK
    FACTORS RELATING TO THE BANK
    Possible
    adverse effects of economic conditions
  loan-to-value sub-prime
 11




---



##### 



Planned
    Acquisition of Marshall and Isley Corporation
    Increase
    in interest rates may adversely affect operating
    results
    Competition
   12




---



##### 



Government
    regulation
    
    raising the quality of capital that banks are required to hold
    to ensure banks are better able to absorb losses on both a
    going-concern and liquidation basis;
    increasing risk capital requirements, particularly for market
    risk, securitizations and counterparty credit risk;
    introducing new regulatory capital ratios  the Common
    Equity Ratio and the Leverage Ratio  to complement
    the existing Tier 1 Capital Ratio and Total Capital
    Ratio; and
    increasing minimum capital requirements.    over-the-counter
    ITEM 1B.
    UNRESOLVED
    STAFF COMMENTS    ITEM 2.
    PROPERTIES    ITEM 3.
    LEGAL
    PROCEEDINGS   13




---



##### 



ITEM 4.
    RESERVED PART II  ITEM 5.
    MARKET
    FOR THE REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER
    MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES      www.harrisbank.com
   14




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##### 



ITEM 6.
    SELECTED
    FINANCIAL DATA    2010


2009


2008


2007


2006(In thousands, except per share data)Statement of Operations Data:Interest income

$
20,466


$
22,635


$
21,296


$
22,524


$
21,442Non-interest income


326















Total income

$
20,792


$
22,635


$
21,296


$
22,524


$
21,442Operating expenses:Loan servicing fees paid to Harris N.A.


11



12



15



18



23Advisory fees paid to Harris N.A.


167



196



208



119



127General and administrative


351



399



374



300



342Total operating expenses

$
529


$
607


$
597


$
437


$
492Applicable state income taxes


1,479



1,608











Net income

$
18,784


$
20,420


$
20,699


$
22,087


$
20,950Preferred stock dividends


18,438



18,438



18,438



18,438



18,438Net income available to common stockholder

$
346


$
1,982


$
2,261


$
3,649


$
2,512Basic and diluted earnings per common share

$
293


$
1,680


$
2,261


$
3,649


$
2,512Distributions per preferred share

$
1.8438


$
1.8438


$
1.8438


$
1.8438


$
1.8438Balance Sheet Data (end of period):Total assets

$
586,086


$
583,574


$
501,130


$
492,923


$
487,340Total liabilities

$
1,258


$
1,084


$
886


$
3,129


$
4,731Total stockholders equity

$
584,828


$
582,490


$
500,244


$
489,794


$
482,609Cash Flows Data:Net cash provided by operating activities

$
18,579


$
20,419


$
20,326


$
22,235


$
20,760Net cash provided by (used in) investing activities

$
968


$
(63,483
)

$
(6,424
)

$
(3,603
)

$
232Net cash (used in) provided by financing activities

$
(18,438
)

$
59,301


$
(24,088
)

$
(23,560
)

$
(16,408
)  15




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##### 



ITEM 7.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS    Summary
  Year
    Ended December 31, 2010 Compared to December 31,
    2009
    available-for-sale
      Year
    Ended December 31, 2009 Compared to December 31,
    2008
    available-for-sale
   16




---



##### 



Quarter
    Ended December 31, 2010 Compared to Quarter Ended
    December 31, 2009
    available-for-sale
      Allowance
    for Loan Losses
    Concentrations
    of Credit Risk
      Interest
    Rate Risk
   17




---



##### 



Competition
    Liquidity
    Risk Management
          available-for-sale. available-for-sale available-for-sale available-for-sale
  Accounting
    Pronouncements
  2010-06, ASC 820-10 2010-06
 18




---



##### 



Tax
    Matters
    Ratings
    Adjustment
    ITEM 7A.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK    available-for-sale
  Year Ending December 31








Fair Value at2011


2012


2013


2014


2015


Thereafter


Total


December 31, 2010Residential mortgage-backedAmortized cost

$
7,993


$



$
7,380


$
4,150


$
1,701


$
480,211


$
501,435


$
516,911Average Yield


4.00%







4.00%



4.00%



4.00%



4.22%



4.21%US TreasuriesAmortized cost

$
40,000






















$
40,000


$
40,000Average Yield


0.01%























0.01%    19




---



##### 



ITEM 8.
    FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA    ITEM 9.
    CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE    ITEM 9A.
    CONTROLS
    AND PROCEDURES  Disclosure
    Controls and Procedures
  Rules 13a-15(e) 15d-15(e))
  Managements
    Report on Internal Control over Financial Reporting
  Rule 13a-15(f).
       20




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##### 



Changes
    in Internal Control over Financial Reporting
    ITEM 9B.
    OTHER
    INFORMATION   PART III  ITEM 10.
    DIRECTORS,
    EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE  and/or
      Name

Age

Position and Offices HeldPaul R. Skubic


62


Chairman of the Board, PresidentPamela C. Piarowski


51


Chief Financial Officer, TreasurerMargaret M. Sulkin


52


Assistant TreasurerDelbert J. Wacker


79


DirectorDavid J. Blockowicz


68


DirectorForrest M. Schneider


63


DirectorFrank M. Novosel


64


Director     Form 10-K.
   21




---



##### 



40-year Form 10-K.
  33-year Form 10-K.
  Form 10-K.
  25-year Form 10-K.
        Independent
    Directors
   22




---



##### 



Audit
    Committee
    Investment
    Committee
    Compensation
    of Directors
    Non-QualifiedNon-Equity


DeferredFees Earned


Stock


Option


Incentive Plan


Compensation


All Otheror Paid in


Awards


Awards


Compensation


Earnings


CompensationName

Cash


($)


($)


($)


($)


($)


TotalDelbert J. Wacker *

$
20,000






















$
20,000David J. Blockowicz *


20,000























20,000Forrest M. Schneider *


20,000























20,000Frank M. Novosel **


32,000























32,000$
92,000






















$
92,000     *
    
    Represents $16,000 in compensation received as Independent
    Director and $4,000 in compensation received as an Audit
    Committee Member.**
    
    Represents $16,000 in compensation received as a Non Bank
    Director and $16,000 in compensation received as an Investment
    Committee Member. 23




---



##### 



Section 16(a)
    Beneficial Ownership Reporting Compliance
    ITEM 11.
    EXECUTIVE
    COMPENSATION    ITEM 12.
    SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
    RELATED STOCKHOLDER MATTERS  (a)
    Security
    ownership of certain beneficial owners  3 8
  (b)
    Security
    Ownership of Management  3 8
  Name of

Amount of

PercentTitle of Class

Beneficial Owner

Beneficial Ownership

of ClassPreferred Stock

Paul R. Skubic

8,625 Shares


.032
%Preferred Stock

Forrest Schneider

8,965 Shares


.033
%Preferred Stock

David J. Blockowicz

3,300 Shares


.012
%Preferred Stock

Frank M. Novosel

3,500 Shares


.013
%Preferred Stock

Delbert Wacker

3,000 Shares


.011
%   ITEM 13.
    CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
    INDEPENDENCE  (a)
    Transactions
    with Related Persons  -
       24




---



##### 



(b)
    Review,
    Approval or Ratification of Transactions with Related
    Persons    (c)
    Director
    Independence    ITEM 14.
    PRINCIPAL
    ACCOUNTING FEES AND SERVICES  Audit
    Fees
  Form 10-Q
  Audit-Related
    Fees
    Tax
    Fees
    All Other
    Fees
    Pre-Approval
    Policies and Procedures
   PART IV  ITEM 15.
    EXHIBITS,
    FINANCIAL STATEMENT SCHEDULES        Form 10-K
 25




---



##### 



*3(a)(I)

Articles of Incorporation of the Company, as amended**3(b)

Bylaws of the Company***4

Specimen of certificate representing Series A Preferred
    Shares***10(a)

Form of Servicing Agreement between the Company and the Bank***10(b)

Form of Advisory Agreement between the Company and the Bank***10(c)

Form of Bank Loan Agreement between the Company and the Bank***10(d)

Form of Mortgage Loan Assignment Agreement between the Company
    and the Bank14

Code of Ethics for Senior Officers (Incorporated by reference to
    Exhibit 14 to the Companys Annual Report on
    Form 10-K
    for the year ended December 31, 2003)24

Power of attorney31.1

Certification of Pamela C. Piarowski pursuant to
    Rule 13a  14(a)31.2

Certification of Paul R. Skubic pursuant to
    Rule 13a  14(a)32.1

Certification pursuant to 18 U.S.C. Section 1350     *
    
    Incorporated by reference to Exhibit 3.1 filed with the
    Companys
    Form 8-K
    dated March 4, 2009.**
    
    Incorporated by reference to Exhibit 3.1 filed with the
    Companys
    Form 8-K
    dated August 31, 2007.***
    
    Incorporated by reference to the exhibit of the same number
    filed with the Companys Registration Statement on
    Form S-11
    (Securities and Exchange Commission file number
    333-40257) 26




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##### 



Index to
    Consolidated Financial Statements
  Form 10-K:
  Harris Preferred Capital CorporationConsolidated Financial StatementsReport of Independent Registered Public Accounting FirmConsolidated Balance SheetsConsolidated Statements of Income and Comprehensive IncomeConsolidated Statements of Changes in Stockholders EquityConsolidated Statements of Cash FlowsNotes to Consolidated Financial StatementsHarris N.A.Financial ReviewConsolidated Financial StatementsIndependent Auditors ReportConsolidated Statements of ConditionConsolidated Statements of OperationsConsolidated Statements of Comprehensive Income (Loss)Consolidated Statements of Changes in Stockholders EquityConsolidated Statements of Cash FlowsNotes to Consolidated Financial Statements    27




---



##### 



SIGNATURES    PAUL
    R. SKUBIC
     PAMELA
    C. PIAROWSKI
       David J. Blockowicz

Forrest M. SchneiderFrank M. Novosel

Delbert J. WackerPaul R. SkubicAttorney-In-Fact      28




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##### 



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM               29




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##### 



Harris
    Preferred Capital Corporation
  Consolidated
    Balance Sheets
  December 31


December 312010


2009(In thousands, except share data)ASSETSCash on deposit with Harris N.A.

$
525


$
916Securities purchased from Harris N.A. under agreement to resell


23,500



22,000Total cash and cash equivalents with Harris N.A.

$
24,025


$
22,916Notes receivable from Harris N.A.


3,369



3,584Securities available for sale, at fair valueMortgage-backed


516,911



515,190U.S. Treasury Bills


40,000



39,999Other assets


1,781



1,885Total assets

$
586,086


$
583,574LIABILITIES AND STOCKHOLDERS EQUITYAccrued expenses

$
114


$
116Accrued taxes payable and deferred tax liabilities


1,144



968Total liabilities

$
1,258


$
1,084Stockholders Equity73/8%
    Noncumulative Exchangeable Preferred Stock, Series A
    ($1 par value); liquidation value of $250,000;
    20,000,000 shares authorized; 10,000,000 shares issued
    and outstanding

$
250,000


$
250,000Common stock ($1 par value); 5,000 shares authorized;
    1,180 issued and outstanding


1



1Additional paid-in capital


320,733



320,733Earnings less than distributions


(255
)


(601
)Accumulated other comprehensive income  net
    unrealized gains on
    available-for-sale
    securities, net of tax


14,349



12,357Total stockholders equity

$
584,828


$
582,490Total liabilities and stockholders equity

$
586,086


$
583,574    30




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##### 



Harris
    Preferred Capital Corporation
  Consolidated
    Statements of Income
 and
    Comprehensive Income
  For the Years EndedDecember 312010


2009


2008(In thousands)Interest income:Securities purchased from Harris N.A. under agreement to resell

$
85


$
31


$
963Notes receivable from Harris N.A.


222



246



302Securities available for sale:Mortgage-backed


20,152



22,356



20,011U.S. Treasury Bills


7



2



20Total interest income

$
20,466


$
22,635


$
21,296Noninterest income:Gain on sale of securities


326







Total income

$
20,792


$
22,635


$
21,296Operating expenses:Loan servicing fees paid to Harris N.A.

$
11


$
12


$
15Advisory fees paid to Harris N.A.


167



196



208General and administrative


351



399



374Total operating expenses

$
529


$
607


$
597Income before income taxes

$
20,263


$
22,028


$
20,699Applicable state income taxes


1,479



1,608



Net Income

$
18,784


$
20,420


$
20,699Preferred stock dividends


18,438



18,438



18,438Net income available to common stockholder

$
346


$
1,982


$
2,261Basic and diluted earnings per common share

$
293


$
1,680


$
2,261Average number of common shares outstanding


1,180



1,148



1,000Net income

$
18,784


$
20,420


$
20,699Other comprehensive income:Available-for-sale
    securities:Unrealized holding gains arising during the period, net of
    deferred state taxes


2,294



2,525



10,839Less reclassification adjustment for realized gains included in
    net income, net of state tax effect


(302
)






Comprehensive income

$
20,776


$
22,945


$
31,538    31




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##### 



Harris
    Preferred Capital Corporation
  Consolidated
    Statements of Changes in Stockholders Equity
 For the
    Years Ended December 31, 2010, 2009 and 2008
  (Distributions inExcess of


AccumulatedAdditional


Earnings) Earnings


Other


TotalPreferred


Common


Paid-in


in Excess of


Comprehensive


StockholdersStock


Stock


Capital


Distributions


Income (Loss)


Equity(In thousands except per share data)Balance at December 31, 2007

$
250,000


$
1


$
240,733


$
67


$
(1,007
)

$
489,794Net income

$



$



$



$
20,699


$



$
20,699Other comprehensive income


















10,839



10,839Dividends declared on common stock ($2,650 per share)














(2,650
)






(2,650
)Dividends declared on preferred stock ($1.8438 per share)














(18,438
)






(18,438
)Balance at December 31, 2008

$
250,000


$
1


$
240,733


$
(322
)

$
9,832


$
500,244Net income

$



$



$



$
20,420


$



$
20,420Other comprehensive income


















2,525



2,525Capital contribution and issuance of common stock










80,000











80,000Dividends declared on common stock ($2,261 per share)














(2,261
)






(2,261
)Dividends declared on preferred stock ($1.8438 per share)














(18,438
)






(18,438
)Balance at December 31, 2009

$
250,000


$
1


$
320,733


$
(601
)

$
12,357


$
582,490Net income

$



$



$



$
18,784


$



$
18,784Other comprehensive income


















1,992



1,992Dividends declared on preferred stock ($1.8438 per share)














(18,438
)






(18,438
)Balance at December 31, 2010

$
250,000


$
1


$
320,733


$
(255
)

$
14,349


$
584,828    32




---



##### 



Harris
    Preferred Capital Corporation
  Consolidated
    Statements of Cash Flows
  For the Years Ended December 312010


2009


2008(In thousands)Operating Activities:Net income

$
18,784


$
20,420


$
20,699Adjustments to reconcile net income to net cash provided by
    operating activities:Gain on sale of securities


(326
)






Net decrease (increase) in other assets


104







(356
)Net increase (decrease) in accrued expenses and taxes


17



(1
)


(17
)Net cash provided by operating activities

$
18,579


$
20,419


$
20,326Investing Activities:Repayments of notes receivable from Harris N.A.

$
215


$
700


$
1,051Purchases of securities
    available-for-sale


(394,504
)


(336,736
)


(265,238
)Proceeds from maturities/redemptions of securities
    available-for-sale


389,564



272,553



257,763Proceeds from sales of securities
    available-for-sale


5,693







Net cash provided by (used in) investing activities

$
968


$
(63,483
)

$
(6,424
)Financing Activities:Cash dividends paid on preferred stock

$
(18,438
)

$
(18,438
)

$
(18,438
)Cash dividends paid on common stock






(2,261
)


(5,650
)Capital contribution and issuance of common stock






80,000



Net cash (used in) provided by financing activities

$
(18,438
)

$
59,301


$
(24,088
)Net increase (decrease) in cash and cash equivalents with
    Harris N.A.

$
1,109


$
16,237


$
(10,186
)Cash and cash equivalents with Harris N.A. at beginning of year


22,916



6,679



16,865Cash and cash equivalents with Harris N.A. at end of year

$
24,025


$
22,916


$
6,679Supplemental Disclosures of Cash Flow Information:Cash paid during the year for:State Income Taxes

$
24







    33




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial Statements
  1.
    Organization
    and Basis of Presentation  Sections 856-860. 3 8
        2.
    Summary
    of Significant Accounting Policies  Cash
    and Cash Equivalents
    Allowance
    for Loan Losses
   34




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial
    Statements  (Continued)
  Income
    Taxes
  Sections 856-860
      Securities
  available-for-sale, Available-for-sale
      available-for-sale
  Available-for-sale other-than-temporary other-than-temporary,
 35




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial
    Statements  (Continued)
  other-than-temporary available-for-sale other-than-temporarily
  New
    Accounting Pronouncements
  2010-06, ASC 820-10 2010-06
  Managements
    Estimates
    3.
    Notes
    Receivable from the Bank       36




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial
    Statements  (Continued)
        4.
    Securities  available-for-sale
  December 31, 2010


December 31, 2009Amortized


Unrealized


Unrealized


Fair


Amortized


Unrealized


Unrealized


FairCost


Gains


Losses


Value


Cost


Gains


Losses


Value(In thousands)Available-for-Sale
    SecuritiesResidential mortgage-backed

$
501,435


$
17,439


$
1,963


$
516,911


$
501,861


$
14,214


$
885


$
515,190U.S. Treasury Bills


40,000











40,000



40,000







1



39,999Total Securities

$
541,435


$
17,439


$
1,963


$
556,911


$
541,861


$
14,214


$
886


$
555,189   other-than-temporarily
  December 31,
    2010
  Length of Continuous Unrealized Loss PositionLess than 12 months


12 months or longer


TotalUnrealized





Unrealized





UnrealizedFair Value


Loss


Fair Value


Losses


Fair Value


Losses(In thousands)Residential 
    mortgage-backed

$
79,133


$
1,963


$



$



$
79,133


$
1,963Total

$
79,133


$
1,963


$



$



$
79,133


$
1,963  37




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial
    Statements  (Continued)
  December 31,
    2009
  Length of Continuous Unrealized Loss PositionLess than 12 months


12 months or longer


TotalUnrealized





Unrealized





UnrealizedFair Value


Losses


Fair Value


Losses


Fair Value


Losses(In thousands)Residential 
    mortgage-backed

$
104,988


$
885


$



$



$
104,988


$
885U.S. Treasury bills


39,999



1











39,999



1Total

$
144,987


$
886


$



$



$
144,987


$
886   available-for-sale
  December 31, 2010Amortized


FairCost


Value(In thousands)Maturities:Within 1 year

$
47,993


$
48,0531 to 5 years


13,231



13,7035 to 10 years


120,155



128,564Over 10 years


360,056



366,591Total Securities

$
541,435


$
556,911   5.
    Fair
    Value Measurements  ,
     38




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial
    Statements  (Continued)
      Fair Value


Fair Value Measurements Using12/31/10


Level 1


Level 2


Level 3(In thousands)Available-for-sale
    securities:Residential mortgage-backed

$
516,911


$



$
516,911


$
U.S. Treasury


40,000



40,000







$
556,911


$
40,000


$
516,911


$
   Fair Value


Fair Value Measurements Using12/31/09


Level 1


Level 2


Level 3(In thousands)Available-for-sale
    securities:Residential mortgage-backed

$
515,190


$



$
515,190


$
U.S. Treasury


39,999



39,999







$
555,189


$
39,999


$
515,190


$
   6.
    Fair
    Value of Financial Instruments        available-for-sale
 39




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial
    Statements  (Continued)
    December 31, 2010


December 31, 2009Carrying


Fair


Carrying


FairValue


Value


Value


Value(In thousands)AssetsCash on deposit with Harris N.A.

$
525


$
525


$
916


$
916Securities purchased from Harris N.A. under agreement to resell


23,500



23,500



22,000



22,000Notes receivable from Harris N.A.


3,369



4,758



3,584



4,908Securities
    available-for-sale


556,911



556,911



555,189



555,189Accrued interest receivable


1,781



1,781



1,885



1,885Total on-balance-sheet financial assets

$
586,086


$
587,475


$
583,574


$
584,898   7.
    Common
    and Preferred Stock  Form S-11.
  3 8
   40




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial
    Statements  (Continued)
    8.
    Transactions
    with Affiliates  day-to-day
        9.
    Operating
    Segment    10.
    Commitments
    and Contingencies   41




---



##### 



Harris
    Preferred Capital Corporation
  Notes
    to consolidated Financial
    Statements  (Continued)
  11.
    Quarterly
    Financial Information (unaudited)    Year Ended December 31, 2010


Year Ended December 31, 2009First


Second


Third


Fourth


First


Second


Third


FourthQuarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter(In thousands except per share data)Total interest income

$
5,350


$
5,211


$
5,062


$
4,843


$
5,456


$
5,683


$
5,860


$
5,636Total noninterest income














326















Total operating expenses


195



119



61



154



179



118



134



176Net income before income taxes

$
5,155


$
5,092


$
5,001


$
5,015


$
5,277


$
5,565


$
5,726


$
5,460Applicable state income taxes


376



371



365



367



385



406



418



399Net Income

$
4,779


$
4,721


$
4,636


$
4,648


$
4,892


$
5,159


$
5,308


$
5,061Preferred dividends


4,609



4,609



4,610



4,610



4,609



4,609



4,610



4,610Net income available to common stockholder

$
170


$
112


$
26


$
37


$
283


$
550


$
698


$
451Basic and diluted earnings per common share

$
144


$
94


$
23


$
32


$
268


$
466


$
593


$
381   Financial
    Statements of Harris N.A.
   42




---



##### 



MANAGEMENTS
    DISCUSSION AND ANALYSIS OF
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  2010
    Compared to 2009
  Summary
    available-for-sale available-for-sale
         43




---



##### 



2009
    Compared to 2008
  Summary
    available-for-sale
         44




---



##### 



45




---



##### 



Independent
    Auditors Report
               46




---



##### 



Harris
    N.A. and Subsidiaries
  Consolidated
    Statements of Condition
  December 312010


2009(In thousands except share date)AssetsCash and demand balances due from banks

$
734,907


$
904,865Money market assets:Interest-bearing deposits at banks ($14.1 billion and
    $8.4 billion held at Federal Reserve Bank at
    December 31, 2010 and 2009, respectively)


15,014,090



9,231,581Federal funds sold and securities purchased under agreement to
    resell


1,255,313



174,979Total cash and cash equivalents

$
17,004,310


$
10,311,425Securities
    available-for-sale
    at fair value


5,674,981



5,898,831Trading account assets and derivative instruments


1,161,940



1,353,509Loans, net of unearned income


22,372,665



23,175,717Allowance for loan losses


(706,101
)


(680,782
)Net loans

$
21,666,564


$
22,494,935Loans held for sale


29,915



29,974Premises and equipment, net


547,567



526,623Bank-owned insurance


1,373,099



1,339,657Goodwill and other intangible assets, net


894,074



817,507Other assets


1,673,910



1,199,166Total assets

$
50,026,360


$
43,971,627LiabilitiesDeposits in domestic offices  noninterest-bearing

$
9,204,496


$
9,704,773
    interest-bearing (includes $1.3 billion and
    $0.7 billion measured at fair value at December 31,
    2010 and 2009, respectively)


23,021,378



18,968,058Deposits in foreign offices  noninterest-bearing


2,718,059




    interest-bearing


1,518,884



1,622,410Total deposits

$
36,462,817


$
30,295,241Federal funds purchased


194,251



236,099Securities sold under agreement to repurchase


864,918



2,512,490Short-term borrowings


1,427,794



717,050Accrued interest, taxes and other


197,434



172,618Accrued pension and post-retirement


26,753



58,393Other liabilities


648,413



643,289Long-term notes  senior/unsecured


2,396,500



2,396,500Long-term notes  senior/secured


2,375,000



2,375,000Long-term notes  subordinated


200,000



292,750Total liabilities

$
44,793,880


$
39,699,430Stockholders EquityCommon stock ($10 par value); authorized
    40,000,000 shares; issued and outstanding 19,989,512 and
    17,534,512 shares at December 31, 2010 and
    December 31, 2009, respectively

$
199,895


$
175,345Surplus


3,297,290



2,322,917Retained earnings


1,621,829



1,621,719Accumulated other comprehensive loss


(136,534
)


(97,784
)Stockholders equity before noncontrolling
    interest  preferred stock of subsidiary

$
4,982,480


$
4,022,197Noncontrolling interest  preferred stock of subsidiary


250,000



250,000Total stockholders equity

$
5,232,480


$
4,272,197Total liabilities and stockholders equity

$
50,026,360


$
43,971,627    47




---



##### 



Harris
    N.A. and Subsidiaries
  Consolidated
    Statements of Operations
  For The Years Ended December 312010


2009


2008(In thousands)Interest IncomeLoans

$
1,036,732


$
1,152,281


$
1,452,034Money market assets:Deposits at banks


29,051



19,418



30,469Federal funds sold and securities purchased under agreements to
    resell


333



151



16,326Trading account assets


10,267



9,009



20,338Securities
    available-for-sale:U.S. Treasury and federal agency


48,927



100,689



246,674State and municipal


49,284



54,174



52,387Other


14,025



15,427



19,473Total interest income

$
1,188,619


$
1,351,149


$
1,837,701Interest ExpenseDeposits

$
176,506


$
307,166


$
609,830Short-term borrowings


6,359



7,982



61,295Short-term senior notes


4



1,726



15,483Long-term notes  senior/unsecured


91,656



88,276



68,190Long-term notes  senior/secured


33,927



49,183



67,621Long-term notes  subordinated


1,587



4,005



10,795Total interest expense

$
310,039


$
458,338


$
833,214Net Interest Income

$
878,580


$
892,811


$
1,004,487Provision for loan losses


312,741



544,413



589,108Net Interest Income after Provision for Loan Losses

$
565,839


$
348,398


$
415,379Noninterest IncomeTrust and investment management fees

$
90,112


$
78,724


$
87,164Net money market and bond trading income, including derivative
    activity


29,585



20,270



7,737Foreign exchange trading gains, net


4,821



11,462



6,900Service charges and fees


193,185



202,156



202,362Charge card income


113,395



416



439Equity securities gains, net


7,490



8,365



49,884Net securities gains, other than trading


6,504



35,037



10,956Other-than-temporary
    impairment of securities


(5,112
)


(1,350
)


(4,571
)Bank-owned insurance


46,160



45,047



52,054Letter of credit fees


22,341



20,674



16,035Net gains on loans held for sale


19,031



21,680



4,471Net losses on loan sales to affiliates










(9,453
)Other


40,993



40,555



39,355Total noninterest income

$
568,505


$
483,036


$
463,333Noninterest ExpensesSalaries and other compensation

$
440,811


$
407,958


$
409,751Pension and other employee benefits


100,625



103,006



103,887Net occupancy


101,231



100,651



99,149Equipment


76,345



68,055



69,137Marketing


59,801



41,411



47,655Communication and delivery


33,510



29,546



31,458Professional fees


106,466



90,855



105,724Outside information processing, database and network fees


38,933



34,803



39,927FDIC insurance


45,767



61,977



16,165Intercompany services, net


(7,088
)


(1,503
)


20,384Restructuring reversal






(702
)


(2,664
)Visa indemnification reversal


(7,500
)


(3,000
)


(16,300
)Charge card expense


26,637







Provision for off-balance sheet credit losses


10,253



(314
)


381Auction rate security charge










21,825Amortization of intangibles


25,966



25,409



27,865Other


114,602



84,094



85,391Total noninterest expenses

$
1,166,359


$
1,042,246


$
1,059,735Loss before income tax benefit

$
(32,015
)

$
(210,812
)

$
(181,023
)Applicable income tax benefit


(50,563
)


(116,497
)


(96,219
)Net income (loss)

$
18,548


$
(94,315
)

$
(84,804
)Less: noncontrolling interest  dividends on preferred
    stock of subsidiary


18,438



18,438



18,438Net Income (Loss) Available for Common Stockholder

$
110


$
(112,753
)

$
(103,242
)    48




---



##### 



Harris
    N.A. and Subsidiaries
  Consolidated
    Statements of Comprehensive Income (Loss)
  For The Years Ended December 312010


2009


2008(In thousands)Net income (loss)

$
18,548


$
(94,315
)

$
(84,804
)Other comprehensive (loss) income:Cash flow hedges:Net unrealized (loss) gain on derivative instruments, net of tax
    (benefit) expense of ($7,118) in 2010, $31,935 in 2009 and
    ($68,427) in 2008


(13,219
)


59,307



(127,075
)Reclassification adjustment for realized loss included in net
    income (loss), net of tax benefit of $2,134 in 2010, $3,447 in
    2009 and $5,090 in 2008


3,962



6,402



9,452Pension and postretirement medical benefit plans:Net (loss) gain and net prior service cost, net of tax (benefit)
    expense of ($10,015) in 2010, $18,182 in 2009 and ($54,953) in
    2008


(15,027
)


33,764



(102,256
)Amortization included in net periodic benefit cost, net of tax
    benefit of $2,652 in 2010, $1,466 in 2009 and $431 in 2008


4,924



2,723



800Securities
    available-for-sale:Unrealized holding (losses) gains arising during the period, net
    of tax (benefit) expense of ($10,813) in 2010, $9,844 in 2009
    and $24,931 in 2008


(18,329
)


28,833



47,283Reclassification adjustment for realized gains included in net
    income (loss), net of tax expense of $571 in 2010, $12,263 in
    2009 and $3,835 in 2008


(1,061
)


(22,774
)


(7,121
)Other comprehensive (loss) income

$
(38,750
)

$
108,255


$
(178,917
)Comprehensive (loss) income

$
(20,202
)

$
13,940


$
(263,721
)Comprehensive income related to noncontrolling interest


18,438



18,438



18,438Comprehensive loss available for common stockholder

$
(38,640
)

$
(4,498
)

$
(282,159
)    49




---



##### 



Harris
    N.A. and Subsidiaries
  Consolidated
    Statements of Changes in Stockholders Equity
  Accumulated


NoncontrollingOther


Interest -


TotalCommon





Retained


Comprehensive


Preferred Stock


StockholdersStock


Surplus


Earnings


Loss


Of Subsidiary


Equity(In thousands except per share data)Balance at December 31, 2007

$
155,148


$
1,780,609


$
1,879,907


$
(27,322
)

$
250,000


$
4,038,342Stock option exercise






1,972















1,972Tax benefit from stock option exercise






1,779















1,779Net (loss) income










(103,242
)






18,438



(84,804
)Dividends  ($2.37 per common share)










(38,000
)










(38,000
)Dividends  preferred stock of subsidiary


















(18,438
)


(18,438
)Other comprehensive loss














(178,917
)






(178,917
)Issuance of common stock and contribution to capital surplus


16,347



387,669















404,016Adoption to initially apply FASB
    ASC 715-60










(313
)










(313
)Adoption of measurement date provisions of FASB ASC 715,
    net of tax of $2,090










(3,880
)


200







(3,680
)Balance at December 31, 2008

$
171,495


$
2,172,029


$
1,734,472


$
(206,039
)

$
250,000


$
4,121,957Stock option exercise






1,824















1,824Tax benefit from stock option exercise






2,914















2,914Net (loss) income










(112,753
)






18,438



(94,315
)Dividends  preferred stock of subsidiary


















(18,438
)


(18,438
)Other comprehensive income














108,255







108,255Issuance of common stock and contribution to capital surplus


3,850



146,150















150,000Balance at December 31, 2009

$
175,345


$
2,322,917


$
1,621,719


$
(97,784
)

$
250,000


$
4,272,197Stock option exercise






1,628















1,628Tax benefit from stock option exercise






4,295















4,295Net income










110







18,438



18,548Dividends  preferred stock of subsidiary


















(18,438
)


(18,438
)Other comprehensive loss














(38,750
)






(38,750
)Issuance of common stock and contribution to capital surplus


24,550



968,450















993,000Balance at December 31, 2010

$
199,895


$
3,297,290


$
1,621,829


$
(136,534
)

$
250,000


$
5,232,480    50




---



##### 



Harris
    N.A. and Subsidiaries
  Consolidated
    Statements of Cash Flows
  For The Years Ended December 312010


2009


2008Cash Flows from Operating Activities:Net income (loss)

$
18,548


$
(94,315
)

$
(84,804
)Less: noncontrolling interest  dividends on preferred
    stock of subsidiary


18,438



18,438



18,438Net income (loss) available for common stockholder

$
110


$
(112,753
)

$
(103,242
)Adjustments to determine net cash flows provided by (used in)
    operating activities:Provision for loan losses


312,741



544,413



589,108Depreciation and amortization, including intangibles


111,617



99,123



94,602Deferred tax (benefit) expense


(74,929
)


33,256



1,505Tax benefit from stock options exercise


4,295



2,914



1,779Other-than-temporary
    impairment on securities


5,112



1,350



4,571Net gains on securities, other than trading


(6,504
)


(35,037
)


(10,956
)Net equity investment gains


(7,490
)


(8,365
)


(49,884
)Increase in bank-owned insurance


(33,442
)


(35,342
)


(39,359
)Net decrease (increase) in trading securities


182,365



(6,367
)


(1,231,304
)Decrease in accrued interest receivable


21,567



42,958



42,695Increase in prepaid expenses


(47,979
)


(111,301
)


(3,417
)Decrease in accrued interest payable


(777
)


(62,672
)


(25,945
)Increase (decrease) in other accrued expenses


158,454



34,167



(91,244
)Net change in pension and post retirement benefits


(49,106
)


(57,405
)


(72,462
)Origination of loans held for sale


(821,386
)


(1,379,863
)


(417,250
)Proceeds from sale of loans held for sale


840,476



1,401,113



454,872Net gains on loans held for sale


(19,031
)


(21,680
)


(4,471
)Net (gains) losses on sale of premises and equipment


(866
)


(2,605
)


399Net losses on loan sales to affiliates










9,453Net change in due from parent


(2,701
)


3,845



741Visa indemnification reversal


(7,500
)


(3,000
)


(16,300
)Other, net


(91,188
)


(13,969
)


91,115Net cash provided by (used in) operating activities

$
473,838


$
312,780


$
(774,994
)Cash Flows from Investing Activities:Proceeds from sales of securities
    available-for-sale

$
523,168


$
3,454,572


$
1,263,951Proceeds from maturities of securities
    available-for-sale


4,323,687



4,469,289



10,869,711Purchases of securities
    available-for-sale


(4,665,027
)


(4,777,802
)


(11,805,326
)Net decrease (increase) in loans


1,826,178



2,984,252



(172,613
)Proceeds from loans sold to affiliates


273,522



502,711



472,477Net proceeds from FDIC loss share agreement


75,706







Purchases of premises and equipment


(81,224
)


(84,782
)


(84,062
)Proceeds from sales of premises and equipment


4,726



28,699



15,154Proceeds from Visa redemption










37,800Acquisitions, net of cash acquired


176,492



(681,442
)


(285,214
)Net cash provided by investing activities

$
2,457,228


$
5,895,497


$
311,878Cash flows from Financing Activities:Net increase (decrease) in deposits

$
3,386,598


$
(23,695,855
)

$
22,182,025Net increase in deposits measured at fair value


608,436



629,767



Net (decrease) increase in Federal funds purchased and
    securities sold under agreement to repurchase


(1,689,420
)


(831,694
)


1,784,129Net increase (decrease) in other short-term borrowings


710,744



357,574



(584,916
)Net decrease in short-term senior notes






(75,000
)


(5,000
)Proceeds from issuance long-term notes 
    senior/unsecured






550,000



Repayment of long-term notes  senior/unsecured


(137,409
)


(250,000
)


Proceeds from issuance long-term notes  senior/secured










375,000Repayment of long-term notes  subordinated


(92,750
)






Net proceeds from stock options exercise


1,628



1,824



1,972Excess tax expense from stock options exercise


(570
)


(639
)


(1,183
)Issuance of common stock


24,550







Capital contributions from parent


968,450



150,000



404,016Cash dividends paid on common stock










(38,000
)Cash dividends paid on preferred stock


(18,438
)


(18,438
)


(18,438
)Net cash provided by (used in) financing activities

$
3,761,819


$
(23,182,461
)

$
24,099,605Net increase (decrease) in cash and cash equivalents

$
6,692,885


$
(16,974,184
)

$
23,636,489Cash and cash equivalents at January 1


10,311,425



27,285,609



3,649,120Cash and cash equivalents at December 31

$
17,004,310


$
10,311,425


$
27,285,609 51




---



##### 



Harris
    N.A. and Subsidiaries
  Consolidated
    Statements of Cash Flows  (Continued)
  For The Years Ended December 312010


2009


2008Supplemental Disclosures of Cash Flow Information:Cash paid (received) during the year for:Interest

$
310,816


$
521,010


$
825,709Income taxes

$
(135,893
)

$
(167,848
)

$
92,410Financing activity affecting assets and liabilities but not
    resulting in cash flows:Net (decrease) increase in assets and liabilities due to
    contribution of parents banking assets

$
(176,492
)

$
681,442


$
285,214Supplemental Disclosures of Noncash Activities:In 2010, the fair values of noncash assets acquired and
    liabilities assumed were $2.1 billion and
    $2.3 billion, respectively, in the acquisition of AMCOREIn 2009, the fair values of noncash assets acquired and
    liabilities assumed were $0.4 million and zero,
    respectively, in the acquisition of Pierce Givens,
    $654.0 million and $82.3 million, in the acquisition
    of Diners Club.In 2008, the fair values of noncash assets acquired and
    liabilities assumed were $1.4 billion and
    $1.3 billion, respectively, in the acquisition of Merchants
    and Manufacturers Bancorporation, $807.5 million and
    $688.0 million, respectively, in the acquisition of Ozaukee
    Bank.Noncash transfers to OREO totaled $64.1 million,
    $7.8 million and $10.0 million in 2010, 2009 and 2008,
    respectively.    52




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial Statements
  1.
    Summary
    of Significant Accounting Policies  Principles
    of consolidation and nature of operations
      not-for-profit
  Basis
    of accounting
    Noncontrolling
    interest in subsidiaries
  810-10-65)
  Foreign
    currency and foreign exchange contracts
    Derivative
    financial instruments
   53




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
                  Securities
  available-for-sale. Available-for-sale
 54




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Available-for-sale
  Available-for-sale other-than-temporary other-than-temporary, other-than-temporary available-for-sale other-than-temporarily
  Loans
           55




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
            ASC 310-30, ASC 310-30
  Allowance
    for loan losses / Losses on commitments
   56




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Premises
    and Equipment
    Leases
    Bank-owned
    insurance
    Intangible
    Assets
    FDIC
    Indemnification Asset
   57




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Diners
    Club Liability
    Income
    Taxes
        Cash
    flows
    Managements
    estimates
  other-than-temporary
  Recent
    accounting standards
   58




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      2010-06, ASC 820-10 2010-06
  2010-20, ASC 310-10-50,
 59




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  2.
    Securities  available-for-sale
  December 31, 2010


December 31, 2009Amortized


Unrealized


Unrealized


Fair


Amortized


Unrealized


Unrealized


FairCost


Gains


Losses


Value


Cost


Gains


Losses


Value(In thousands)U.S. Treasury

$
388,761


$
5


$
(3
)

$
388,763


$
40,250


$



$
(1
)

$
40,249U.S. government agency


1,985,293



11,449



(397
)


1,996,345



2,869,073



15,850



(494
)


2,884,429U.S. government sponsored mortgage-backed


628,678



23,764



(2,060
)


650,382



712,912



21,629



(894
)


733,647State and municipal


1,578,403



31,600



(9,532
)


1,600,471



1,549,003



44,685



(2,996
)


1,590,692Non-mortgage asset backed


726,677



1,929



(158
)


728,448



36,489



8,237







44,726Corporate debt securities


10,253











10,253















Foreign corporate debt securities


300,000



69







300,069



500,000



1,440







501,440Foreign government debt securities


250











250



499



1







500Other


















103,148











103,148Total securities

$
5,618,315


$
68,816


$
(12,150
)

$
5,674,981


$
5,811,374


$
91,842


$
(4,385
)

$
5,898,831   available-for-sale available-for-sale available-for-sale
 60




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  other-than-temporary other-than-temporary
  Length of Continuous Unrealized Loss PositionLess than 12 months


12 months or longer


TotalUnrealized





Unrealized


Number of





UnrealizedFair Value


Losses


Fair Value


Losses


Securities


Fair Value


Losses(In thousands)December 31, 2010U.S. Treasury

$
105,773


$
(3
)

$



$







$
105,773


$
(3
)U.S. government agency


149,810



(191
)


224,794



(206
)


1



374,604



(397
)U.S. government sponsored mortgage-backed


82,301



(2,060
)














82,301



(2,060
)State and municipal


455,935



(9,300
)


6,093



(232
)


21



462,028



(9,532
)Non-mortgage asset backed


163,574



(158
)














163,574



(158
)Temporarily impaired securities 
    available-for-sale

$
957,393


$
(11,712
)

$
230,887


$
(438
)


22


$
1,188,280


$
(12,150
)December 31, 2009U.S. Treasury

$
40,249


$
(1
)

$



$







$
40,249


$
(1
)U.S. government agency


184,279



(20
)


514,526



(474
)


6



698,805



(494
)U.S. government sponsored mortgage-backed


105,003



(885
)


1,237



(9
)


7



106,240



(894
)State and municipal


144,519



(1,768
)


24,179



(1,228
)


88



168,698



(2,996
)Temporarily impaired securities 
    available-for-sale

$
474,050


$
(2,674
)

$
539,942


$
(1,711
)


101


$
1,013,992


$
(4,385
)   other-than-temporary other-than-temporary other-than-temporary
  available-for-sale
  December 31, 2010Amortized


FairCost


Value(In thousands)Maturities:Within 1 year

$
2,298,638


$
2,301,6031 to 5 years


2,052,533



2,077,2985 to 10 years


659,812



679,642Over 10 years


607,332



616,438Total securities

$
5,618,315


$
5,674,981    61




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    available-for-sale
    available-for-sale
  available-for-sale other-than-temporary
  available-for-sale
  available-for-sale
 62




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  3.
    Loans    December 312010


2009(In thousands)Domestic loans:Commercial, financial, agricultural, brokers and dealers

$
3,140,584


$
3,366,723Real estate construction


365,446



561,351Real estate mortgages


13,487,760



13,985,641Installment


4,708,319



4,517,429Credit card


641,314



704,604Lease financing, net (unearned discount of $0.1 million and
    $0.1 million at December 31, 2010 and
    December 31, 2009, respectively)


12,699



15,603Foreign loans:Other, primarily commercial and industrial


22,982



30,637Total loans(1)

$
22,379,104


$
23,181,988Less unearned income


6,439



6,271Loans, net of unearned income

$
22,372,665


$
23,175,717Less allowance for loan losses


706,101



680,782Loans, net of allowance for loan losses

$
21,666,564


$
22,494,935     (1)
    
    Includes $1.2 billion of acquired loans subject to loss
    share agreement.    December 312010


2009(In thousands)Nonaccrual loans

$
785,600


$
485,996Nonperforming restructured loans


110,395



22,070Total nonperforming loans

$
895,995


$
508,066Other real estate owned


39,374



10,868Total nonperforming assets

$
935,369


$
518,934Gross amount of interest income that would have been recorded if
    nonperforming loans had been accruing interest at their original
    terms

$
27,300


$
23,660Interest income actually recognized


4,811



4,743Interest shortfall

$
22,489


$
18,91790-day past
    due loans, still accruing interest

$
144,981


$
116,107Nonperforming loans to total loans at year-end


4.00
%


2.20
%Nonperforming assets to total loans at year-end


4.18
%


2.25
%    63




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    ASC 310-30, ASC 310-30. ASC 310-30 ASC 310-30
    December 31, 2010Purchased


OtherCredit-Impaired


AcquiredLoans


Loans


Total(In thousands)Commercial

$
257,189


$
740,454


$
997,643Consumer


4,475



224,740



229,215Total loans

$
261,664


$
965,194


$
1,226,858     2010(In thousands)Contractually required payments including interest

$
2,231,354Nonaccretable difference


509,753Cash flows expected to be collected (undiscounted)

$
1,721,601Accretable yield


195,975Fair value of purchased loans

$
1,525,626  64




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    2010(In thousands)Accretable yield, acquisition date

$
195,975Additions


7,315Removals


(15,022
)Accretion


(44,689
)Reclassification from nonaccretable difference


49,766Accretable yield, end of year

$
193,345     December 312010


2009(In thousands)Contractual outstanding balance

$
1,911,784


$
42,372Carrying amount

$
1,239,445


$
29,170   non-AMCORE
    2010(In thousands)Balance, beginning of year

$
6,679Provisions charged to expense


2,018Reductions


(4,047
)Losses partially recoverable under loss share agreement


8,072Balance, end of year

$
12,722  65




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  4.
    Allowance
    for Loan Losses    Years Ended December 312010


2009


2008(In thousands)Balance, beginning of year

$
680,782


$
574,224


$
367,525Charge-offs


(373,997
)


(510,773
)


(462,256
)Recoveries


78,503



72,918



48,160Net charge-offs

$
(295,494
)

$
(437,855
)

$
(414,096
)Provisions charged to expense


312,741



544,413



589,108Acquired reserves from acquisition










31,687Losses partially recoverable under loss share agreement


8,072







Balance, end of year

$
706,101


$
680,782


$
574,224   ASC 310-30.
  Impaired Loans


Impaired Loansfor Which There


for Which There


Totalis a Related


is No Related


ImpairedAllowance


Allowance


Loans(In thousands)December 31, 2010Balance

$
220,419


$
186,168


$
406,587Related allowance


99,936







99,936Balance, net of allowance

$
120,483


$
186,168


$
306,651December 31, 2009Balance

$
128,665


$
130,260


$
258,925Related allowance


58,479







58,479Balance, net of allowance

$
70,186


$
130,260


$
200,446   Years Ended December 312010


2009(In thousands)Average impaired loans

$
324,093


$
401,150Total interest income on impaired loans recorded on a cash basis

$
4,811


$
4,743    66




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  5.
    Premises
    and Equipment    December 312010


2009(In thousands)Land

$
107,840


$
104,370Buildings


328,188



325,559Computer equipment and software


517,673



501,767Other equipment


94,207



111,514Leasehold improvements


99,853



99,035Total

$
1,147,761


$
1,142,245Accumulated depreciation and amortization


600,194



615,622Premises and equipment

$
547,567


$
526,623       6.
    Goodwill
    and Other Intangible Assets          2010


2009(In thousands)Goodwill at beginning of year

$
705,291


$
689,158Acquisitions during the year


84,572



17,807Other(1)


(6,553
)


(1,674
)Goodwill at end of year

$
783,310


$
705,291  67




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    (1)
    
    Includes the effect of accounting adjustments related to
    non-current year acquisitions.        December 31, 2010Gross Carrying


Accumulated


Net CarryingAmount


Amortization


Value(In thousands)Branch network

$
145,000


$
(140,167
)

$
4,833Core deposits


167,833



(108,692
)


59,141Purchased credit card relationships


46,311



(2,002
)


44,309Customer relationships


4,300



(1,819
)


2,481Other


1,310



(1,310
)


Total finite life intangibles

$
364,754


$
(253,990
)

$
110,764   December 31, 2009Gross Carrying


Accumulated


Net CarryingAmount


Amortization


Value(In thousands)Branch network

$
145,000


$
(130,500
)

$
14,500Core deposits


124,924



(73,631
)


51,293Purchased credit card relationships


44,340







44,340Customer relationships


3,000



(917
)


2,083Other


1,310



(1,310
)


Total finite life intangibles

$
318,574


$
(206,358
)

$
112,216    68




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Year

Amount(In thousands)2011

$
24,0702012


19,5202013


16,8212014


13,4592015


9,881Thereafter


27,013Total

$
110,764   Mortgage
    servicing rights
     69




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    2010


2009


2008(In thousands)MSR at beginning of year

$
30,598


$
22,063


$
17,813Originations


8,426



14,309



4,690Acquired in acquisitions










4,195Disposals










(249
)Amortization


(6,842
)


(5,774
)


(4,386
)MSR at end of year

$
32,182


$
30,598


$
22,063Valuation allowance at beginning of year

$



$



$
Addition, net


3,898







Valuation allowance at end of year

$
3,898


$



$
MSR, net

$
28,284


$
30,598


$
22,063Fair value at beginning of year

$
31,210


$
26,129


$
22,721Fair value at end of year


30,526



31,210



26,129   7.
    Deposits    December 312010


2009(In thousands)Demand deposits

$
9,204,496


$
9,704,773Demand deposits in foreign offices


2,718,059



Interest-bearing checking deposits


281,266



236,172Money market accounts


13,497,676



10,728,563Statement savings accounts


2,391,755



2,233,326Savings certificates


5,512,334



5,003,757Time deposits


1,338,347



766,240Time deposits in foreign offices


1,518,884



1,622,410Total deposits

$
36,462,817


$
30,295,241     Year

Amount(In thousands)2011

$
5,723,9122012


750,5792013


416,5912014


312,5662015


351,852Thereafter


814,065Total

$
8,369,565  70




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    step-up
  8.
    Securities
    Purchased Under Agreement to Resell, Securities Sold Under
    Agreement to Repurchase, Federal Funds, Commercial Paper and
    Securities Lending Activities         71




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  9.
    Long-Term
    Notes    December 312010


2009


Rate

Reprice(In thousands)Floating rate senior note to BMO subsidiary due June 13,
    2011

$
746,500


$
746,500


14bps + 90 day LIBOR

QuarterlyFloating rate senior note to BMO branch due August 14, 2012


1,100,000



1,100,000


14bps + 90 day LIBOR

QuarterlyFloating rate senior note to BMO subsidiary due
    September 29, 2011


550,000



550,000


14bps + 90 day LIBOR

QuarterlyTotal long-term notes  senior/unsecured

$
2,396,500


$
2,396,500Floating rate secured note to FHLB due October 30, 2017

$
1,000,000


$
1,000,000


30 day LIBOR

MonthlyFloating rate secured note to FHLB due November 13, 2017


500,000



500,000


30 day LIBOR

MonthlyFloating rate secured note to FHLB due November 28, 2017


500,000



500,000


30 day LIBOR

MonthlyFloating rate secured note to FHLB due February 20, 2018


375,000



375,000


30 day LIBOR

MonthlyTotal long-term notes  senior/secured

$
2,375,000


$
2,375,000Floating rate subordinated note to Bankcorp due
    December 23, 2012

$



$
28,500


50bps + 90 day LIBOR

QuarterlyFloating rate subordinated note to Bankcorp due May 30, 2013






34,000


50bps + 90 day LIBOR

QuarterlyFloating rate subordinated note to Bankcorp due
    November 26, 2013






24,000


50bps + 90 day LIBOR

QuarterlyFloating rate subordinated note to Bankcorp due
    February 26, 2014






6,250


50bps + 90 day LIBOR

QuarterlyFloating rate subordinated note to Bankcorp due May 31, 2014


100,000



100,000


35bps + 90 day LIBOR

QuarterlyFloating rate subordinated note to Bankcorp due May 31, 2016


100,000



100,000


38bps + 90 day LIBOR

QuarterlyTotal long-term notes  subordinated

$
200,000


$
292,750Total long-term notes

$
4,971,500


$
5,064,250       30-day 90-day
 72




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      10.
    Fair
    Value of Financial Instruments and Fair Value
    Measurements  Fair
    Value of Financial Instruments
  Financial Instruments,
    available-for-sale,
         73




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      December 312010


2009Carrying


Fair


Carrying


FairValue


Value


Value


Value(In thousands)AssetsCash and demand balances due from banks

$
734,907


$
734,907


$
904,865


$
904,865Money market assets:Interest-bearing deposits at banks


15,014,090



15,014,090



9,231,581



9,231,581Federal funds sold and securities purchased under agreement to
    resell


1,255,313



1,255,313



174,979



174,979Securities
    available-for-sale


5,674,981



5,674,981



5,898,831



5,898,831Trading account assets


866,719



866,719



1,113,460



1,113,460Loans, net of unearned income and allowance for loan losses


21,666,564



21,805,208



22,494,935



22,661,518Accrued interest receivable


88,893



88,893



29,974



30,553Loans held for sale


29,915



30,223



105,169



105,169Derivative instruments


298,532



298,532



254,417



254,417Total on-balance-sheet financial assets

$
45,629,914


$
45,768,866


$
40,208,211


$
40,375,373LiabilitiesDeposits:Demand deposits

$
28,093,252


$
28,093,252


$
22,902,834


$
22,902,834Time deposits


8,369,565



8,446,864



7,392,407



7,507,644Federal funds purchased


194,251



194,251



236,099



236,099Securities sold under agreement to repurchase


864,918



864,918



2,512,490



2,512,490Short-term borrowings


1,427,794



1,427,794



717,050



717,050Derivative instruments


432,289



432,289



387,517



387,517Trading account liabilities


74,033



74,033



144,657



144,657Accrued interest payable


23,904



23,904



24,681



24,681Long-term notes  senior/unsecured


2,396,500



2,396,500



2,396,500



2,396,500Long-term notes  senior/secured


2,375,000



2,375,000



2,375,000



2,375,000Long-term notes  subordinated


200,000



200,000



292,750



292,750Total on-balance-sheet financial liabilities

$
44,451,506


$
44,528,805


$
39,381,985


$
39,497,222Off-Balance-Sheet Credit Facilities((obligations)/positive positions)Loan commitments

$
11,961


$
11,961


$
24,063


$
24,063Standby letters of credit


(1,520
)


(1,520
)


(1,775
)


(1,775
)Total off-balance-sheet credit facilities

$
10,441


$
10,441


$
22,288


$
22,288  74




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    December 31, 2010Fair Value Measurements Using


Total atLevel 1


Level 2


Level 3


Fair Value(In thousands)AssetsSecurities
    available-for-saleU.S. Treasury

$
388,763


$



$



$
388,763U.S. government agency






1,996,345







1,996,345U.S. government sponsored mortgage-backed






650,382







650,382State and municipal






1,586,744



13,727



1,600,471Non-mortgage asset backed






727,674



774



728,448Foreign corporate debt securities


300,069











300,069Foreign government debt securities






250







250Corporate debt securities






10,253







10,253Other














Total securities available  for  sale

$
688,832


$
4,971,648


$
14,501


$
5,674,981Trading account assetsU.S. government agency

$



$
830,016


$



$
830,016Corporate debt securities






36,703







36,703Total trading account assets

$



$
866,719


$



$
866,719Derivative instrumentsTrading derivativesInterest rate contracts

$



$
268,990


$
3,312


$
272,302Foreign exchange contracts






13,389







13,389Equity contracts






156,701







156,701Total derivative instruments

$



$
439,080


$
3,312


$
442,392Total assets

$
688,832


$
5,410,728


$
17,813


$
6,984,092LiabilitiesStructured CDs (included in interest-bearing deposits)

$



$
1,307,774


$



$
1,307,774Trading account liabilities (included in other liabilities)U.S. Treasury


74,033











74,033Derivative instruments (included in other liabilities)Trading derivativesInterest rate contracts






293,827



14



293,841Foreign exchange contracts






12,924







12,924Equity contracts






127,212







127,212Commodity contracts






637







637Hedging derivativesInterest rate contracts/cash flow hedges






139,389







139,389Total derivative instruments

$



$
573,989


$
14


$
574,003Total liabilities

$
74,033


$
1,307,774


$



$
1,955,810   75




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  December 31, 2009Fair Value Measurements Using


Total atLevel 1


Level 2


Level 3


Fair Value(In thousands)AssetsSecurities
    available-for-saleU.S. Treasury

$
40,249


$



$



$
40,249U.S. government agency






2,884,429







2,884,429U.S. government sponsored mortgage-backed






733,647







733,647State and municipal






1,561,800



28,892



1,590,692Non-mortgage asset backed






5



44,721



44,726Foreign government debt securities






501,940







501,940Other






103,148







103,148Total securities available-for-sale

$
40,249


$
5,784,969


$
73,613


$
5,898,831Trading account assets






1,113,460







1,113,460Derivative instruments






253,010



1,407



254,417Total assets

$
40,249


$
7,151,439


$
75,020


$
7,266,708LiabilitiesStructured CDs (included in interest-bearing deposits)

$



$
707,435


$



$
707,435Trading account liabilities (included in other liabilities)


144,657











144,657Derivative instruments (included in other liabilities)






387,414



103



387,517Total liabilities

$
144,657


$
1,094,849


$
103


$
1,239,609  76




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Trading


Securities








CommitmentAccount


Available-


Derivative


Derivative


to PurchaseAssets


for-sale


Assets


Liabilities


ARS(In thousands)Fair value at January 1, 2009

$



$
55,060


$
2,433


$
852


$
2,015Realized and unrealized gains and losses included in earnings(1)






1,397



12,055



(749
)


Unrealized gains and losses included in OCI






20,706











Purchases, sales, issuances, settlements






(3,550
)


(13,081
)






(2,015
)Fair value at December 31, 2009

$



$
73,613


$
1,407


$
103


$
Gains and losses included in earnings related to assets and
    liabilities held at December 31, 2009

$



$
1,796


$
1,407


$
(103
)

$
Fair value at January 1, 2010

$



$
73,613


$
1,407


$
103


$
Realized and unrealized gains and losses included in earnings(1)






1,909



16,312



(89
)


Unrealized gains and losses included in OCI






(12,236
)










Purchases, sales, issuances, settlements






(48,785
)


(14,407
)






Fair value at December 31, 2010

$



$
14,501


$
3,312


$
14


$
Gains and losses included in earnings related to assets and
    liabilities held at December 31, 2010

$



$
(4,319
)

$
3,312


$
(14
)

$
     (1)
    
    Included in trading income for trading account assets, net
    securities gains (losses) for AFS securities, and other
    noninterest income for derivative assets and liabilities.     77




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    December 31, 2010Fair Value Measurements UsingLevel 1


Level 2


Level 3


Losses(In thousands)AssetsNonmarketable securities (included in other assets)

$



$



$
1,077


$
239Collateral-dependent impaired loans










211,815



61,894Other real estate owned










18,942



15,329Total assets

$



$



$
231,834


$
77,462    December 31, 2009Fair Value Measurements UsingLevel 1


Level 2


Level 3


Losses(In thousands)AssetsNonmarketable securities (included in other assets)

$



$



$
18,322


$
1,350Collateral-dependent impaired loans










204,956



39,083Other real estate owned










9,240



603Total assets

$



$



$
232,518


$
41,036   11.
    Financial
    Instruments with Off-Balance-Sheet Risk    Credit
    facilities
         78




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    case-by-case
        Financial
    Guarantees
         79




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  Securities
    activities
        Commitments
    to Invest in Equity Securities
    12.
    Derivative
    Financial Instruments  over-the-counter
  point-in-time
    Types
    of Derivatives
  Swaps
       80




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
            Forwards
    and Futures
  over-the-counter
  over-the-counter
  Options
  over-the-counter
    Derivative-Related
    Risks
  Over-the-counter
 81




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      Uses
    of Derivatives
  Trading
    Derivatives
               82




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
          Hedging
    Derivatives
      Hedge
    Accounting
  Cash Flow
    Hedges
  available-for-sale
 83




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      Fair
    Value Hedges
  available-for-sale
        Pretax gain (loss)recordedin other noninterestincome2010


2009(In thousands)Hedging derivatives:Interest rate contracts

$



$
(1,655
)Hedged items:Fixed rate AFS securities






(2,701
)Fixed rate deposits






1,370     Ineffective portion of

Reclassification of gainEffective portion of

gain (loss) recorded in

(loss) from AOCI topre-tax gain (loss)

other noninterest

interest income orrecorded in OCI

income

interest expense2010

2009

2010

2009

2010

2009(In thousands)

(In thousands)

(In thousands)Interest rate contracts

$
40


$
66,722


$



$
(2
)

$
(6,096
)

$
(9,849
)  84




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    2010


2009


Location of gain (loss) recognized in income(In thousands)Interest rate contracts

$
14,850


$
1,710


Net money market, bond and derivative trading incomeInterest rate contracts


1,994



(277
)

Other non-interest incomeForeign exchange contracts


4,866



11,465


Foreign exchange trading gains, netEquity contracts


25,019



10,165


Net money market, bond and derivative trading incomeEquity contracts


2,733



18,646


Salaries and other compensation expenseCommodity contracts


305






Net money market, bond and derivative trading incomeTotal

$
49,767


$
41,709     Gross Assets


Gross Liabilities2010


2009


2010


2009(In thousands)


(In thousands)Trading derivatives(1):Interest rate contracts

$
272,302


$
288,830


$
293,841


$
294,733Foreign exchange contracts


13,389



12,435



12,924



12,176Equity contracts


156,701



36,176



127,212



25,482Commodity contracts










637



Hedging derivatives(2):Interest rate contracts/cash flow hedges






12,960



139,389



153,040Total fair value

$
442,392


$
350,401


$
574,003


$
485,431     (1)
    
    Trading derivatives are recorded in trading account assets and
    derivative instruments and in other liabilities.(2)
    
    Hedging derivatives are recorded in other assets and other
    liabilities.    2010


2009(In thousands)Trading derivatives:Interest rate contracts

$
18,000,087


$
12,443,474Foreign exchange contracts


620,865



1,366,632Equity contracts


1,403,263



816,666Commodity contracts


5,416



Hedging derivatives:Interest rate contracts/cash flow hedges


2,221,000



3,381,000Total

$
22,250,631


$
18,007,772  85




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  13.
    Concentrations
    of Credit Risk in Financial Instruments    Midwestern
    geographic area
      14.
    Employee
    Benefit Plans         86




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  out-of-pocket
     87




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Pension Benefits


Postretirement Medical Benefits2010**


2009**


2008**


2010**


2009**


2008**(In thousands)Change in benefit obligation*Benefit obligation at beginning of year

$
421,794


$
415,035


$
430,891


$
68,731


$
59,723


$
60,988Service cost


19,021



19,020



21,897



1,758



1,920



1,994Interest cost


24,058



24,916



25,071



3,946



3,586



3,639Benefits paid


(29,246
)


(32,797
)


(41,771
)


(3,323
)


(3,167
)


(2,624
)Medicare drug legislation














(2,321
)


(1,188
)


841Actuarial loss (gain)


49,915



(4,380
)


(21,590
)


4,604



7,857



(6,523
)Change in measurement date










537











1,408Benefit obligation at end of year

$
485,542


$
421,794


$
415,035


$
73,395


$
68,731


$
59,723Change in plan assetsFair value of plan assets at beginning of year

$
416,832


$
309,712


$
380,294


$
53,502


$
43,051


$
64,979Actual return on plan assets


66,606



69,738



(123,769
)


5,621



10,451



(23,181
)Employer contribution


145,305



70,179



99,521











Benefits paid


(29,246
)


(32,797
)


(41,771
)










Change in measurement date










(4,563
)










1,253Fair value of plan assets at end of year ***

$
599,497


$
416,832


$
309,712


$
59,123


$
53,502


$
43,051Funded Status at end of year

$
113,955


$
(4,962
)

$
(105,322
)

$
(14,272
)

$
(15,229
)

$
(16,672
)Assets (liabilities) recognized in the Statements of
    Condition consist of:Other assets

$
114,173


$
24,906


$
24,906


$
4,587


$
4,587


$
4,587Accrued pension and post-retirement liabilities


(218
)


(29,868
)


(130,228
)


(18,859
)


(19,816
)


(21,259
)Net liabilities recognized

$
113,955


$
(4,962
)

$
(105,322
)

$
(14,272
)

$
(15,229
)

$
(16,672
)Amounts recognized in Accumulated Other Comprehensive Income
    (Loss) consist of:Net loss

$
122,910


$
107,584


$
153,771


$
5,448


$
4,506


$
4,843Prior service cost


2,896



1,791



2,255











Transition obligation














797



1,329



1,858Amounts recognized in AOCI

$
125,806


$
109,375


$
156,026


$
6,245


$
5,835


$
6,701 88




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  Pension Benefits


Postretirement Medical Benefits2010**


2009**


2008**


2010**


2009**


2008**(In thousands)Components of net periodic benefit costService cost

$
19,021


$
19,020


$
21,897


$
1,758


$
1,920


$
1,994Interest cost


24,058



24,916



25,071



3,946



3,586



3,639Expected return on plan assets


(40,802
)


(31,477
)


(25,941
)


(4,280
)


(3,444
)


(5,013
)Amortization of prior service cost


679



464



464











Amortization of transition obligation














532



529



525Amortization of actuarial loss or (gain)


7,001



3,546



1,530











(958
)Net periodic benefit cost

$
9,957


$
16,469


$
23,021


$
1,956


$
2,591


$
187Other Changes in Plan Assets and Benefit Obligations
    recognized in Other Comprehensive IncomeNet loss (gain)

$
22,327


$
(42,641
)

$
128,120


$
943


$
(337
)

$
21,667Amortization of (loss) gain


(7,001
)


(3,546
)


(1,912
)










1,198Prior service cost


1,784



















Amortization of prior service cost


(679
)


(464
)


(580
)










Amortization of transition obligation














(532
)


(529
)


(656
)Total recognized in OCI

$
16,431


$
(46,651
)

$
125,628


$
411


$
(866
)

$
22,209     *
    
    Benefit obligation is projected for Pension Benefits and
    accumulated for Postretirement Medical Benefits.**
    
    Plan assets and obligation measured as of December 31.***
    
    The actual allocation of plan assets at fair value is as follows:  Pension


Postretirement Medical2010


2009


2008


2010


2009


2008Equity securities


55
%


50
%


54
%


55
%


50
%


54
%Fixed income securities


43
%


49
%


32
%


43
%


49
%


32
%Cash equivalents


2
%


1
%


14
%


2
%


1
%


14
%       Equity securities


50
%Fixed income securities


50
%  89




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Pension Benefits


Postretirement Medical Benefits2010


2009


2008


2010


2009


2008Weighted-average assumptions used to determine benefit
    obligation as of December 31Discount rate


5.40
%


5.90
%


6.20
%


5.40
%


5.90
%


6.20
%Rate of compensation increase


2.00
%


2.00
%


3.80
%


N/A



N/A



N/AWeighted-average assumptions used to determine net benefit
    cost for years ended December 31Discount rate


5.90
%


6.20
%


6.00
%


5.90
%


6.20
%


6.00
%Expected return on plan assets


8.00
%


8.00
%


8.00
%


8.00
%


8.00
%


8.00
%Rate of compensation increase


2.00
%


3.80
%


3.80
%


N/A



N/A



N/A             Pension Plan Assets at December 31, 2010Fair Value Measurements Using


Total atLevel 1


Level 2


Fair Value(In thousands)Asset categoryCash and money market funds

$
10,269


$



$
10,269Equity securities


191,798







191,798U.S. Treasury securities


20,324







20,324U.S. government agency securities






9,706



9,706Corporate debt securities






168,843



168,843Mutual funds


198,755







198,755Derivative instruments


(198
)






(198
)Total plan assets at fair value

$
420,948


$
178,549


$
599,497   90




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  Pension Plan Assets at December 31, 2009Fair Value Measurements Using


Total atLevel 1


Level 2


Fair Value(In thousands)Asset categoryCash and money market funds

$
4,913


$



$
4,913Equity securities


119,076







119,076U.S. Treasury securities


2,207







2,207U.S. government agency securities






8,153



8,153Corporate debt securities






100,119



100,119Mutual funds


182,752







182,752Derivative instruments


(388
)






(388
)Total plan assets at fair value

$
308,560


$
108,272


$
416,832   Postretirement Medical Plan Assets atDecember 31, 2010Fair Value Measurements Using


Total atLevel 1


Level 2


Fair Value(In thousands)Asset categoryCash and money market funds

$
1,013


$



$
1,013Equity securities


18,915







18,915U.S. Treasury securities


2,004







2,004U.S. government agency securities






957



957Corporate debt securities






16,651



16,651Mutual funds


19,601







19,601Derivative instruments


(19
)






(19
)Total plan assets at fair value

$
41,514


$
17,608


$
59,122   Postretirement Medical Plan Assets atDecember 31, 2009Fair Value Measurements Using


Total atLevel 1


Level 2


Fair Value(In thousands)Asset categoryCash and money market funds

$
630


$



$
630Equity securities


15,284







15,284U.S. Treasury securities


283







283U.S. government agency securities






1,047



1,047Corporate debt securities






12,851



12,851Mutual funds


23,457







23,457Derivative instruments


(50
)






(50
)Total plan assets at fair value

$
39,604


$
13,898


$
53,502  91




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      1 Percentage


1 Percentage2010

Point Increase


Point Decrease(In thousands)Effect on total of service and interest cost components

$
648


$
(557
)Effect on postretirement benefit obligation

$
8,925


$
(7,582
)  92




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Supplemental Unfunded Retirement Benefits2010


2009


2008(In thousands)Change in benefit obligationBenefit obligation at beginning of year

$
4,945


$
10,360


$
12,781Service cost


497



845



997Interest cost


231



540



636Benefits paid


(3,129
)


(3,491
)


(3,273
)Actuarial loss (gain)


5,131



(3,309
)


(724
)Change in measurement date










(57
)Benefit obligation at end of year

$
7,675


$
4,945


$
10,360Change in plan assetsFair value of plan assets at beginning of year

$



$



$
Employer contribution


3,129



3,491



3,738Benefits paid


(3,129
)


(3,491
)


(3,273
)Change in measurement date










(465
)Fair value of plan assets at end of year

$



$



$
Funded Status at end of year

$
(7,675
)

$
(4,945
)

$
(10,360
)Liabilities recognized in the Statements of Condition consist
    of:Accrued pension and post-retirement liabilities

$
(7,675
)

$
(4,945
)

$
(10,360
)Net liabilities recognized

$
(7,675
)

$
(4,945
)

$
(10,360
)Amounts recognized in Accumulated Other Comprehensive Income
    (loss) consist of:Net loss or (gain)

$
4,036


$
(2,468
)

$
157Prior service credit


(940
)


(1,269
)


(1,599
)Amounts recognized in AOCI

$
3,096


$
(3,737
)

$
(1,442
)Components of net periodic benefit costService cost

$
497


$
845


$
997Interest cost


231



540



636Amortization of prior service credit


(330
)


(330
)


(330
)Amortization of actuarial gain


(305
)






Net periodic benefit cost

$
93


$
1,055


$
1,303Other Changes in Plan Assets and Benefit Obligations
    recognized in Other Comprehensive IncomeNet loss (gain)

$
6,199


$
(2,625
)

$
(1,024
)Amortization of gain


305







Amortization of prior service credit


330



330



412Total recognized in OCI

$
6,834


$
(2,295
)

$
(612
)   93




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  Supplemental Unfunded RetirementBenefits2010


2009


2008Weighted-average assumptions used to determine benefit
    obligation as of December 31Discount rate


4.70
%


5.20
%


5.50
%Rate of compensation increase


2.00
%


2.00
%


3.80
%Weighted-average assumptions used to determine net benefit
    cost for years ended December 31Discount rate


5.20
%


5.50
%


5.25
%Rate of compensation increase


2.00
%


3.80
%


3.80
%       Postretirement Medical Benefits


SupplementalPension


Before Medicare


Medicare


RetirementYear

Benefits


Subsidy


Subsidy(1)


Benefits(In thousands)2011

$
30,480


$
4,118


$
429


$
9572012


32,653



4,312



490



1,0362013


31,879



4,562



546



8052014


34,541



4,874



614



9452015


34,015



5,148



689



912Thereafter


184,245



30,967



4,815



4,660     (1)
    
    Medicare subsidies expected to be received.  15.
    Stock-Based
    Compensation Plans   94




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  Stock
    Option Program
              Year Ended December 31, 2010Wtd. Avg.Wtd. Avg.


Aggregate Intrinsic


RemainingOptions

Shares


Exercise Price


Value


Contractual Life(In millions)Outstanding at beginning of year


2,150,591


$
43.64


$
23.5



4.63 yearsGranted


189,375



58.09Exercised


(566,195
)


38.23Transferred(1)


282,371



45.92Outstanding at December 31, 2010


2,056,142



49.31


$
20.2



5.10 yearsOptions exercisable at December 31, 2010


1,244,231


$
46.00


$
16.3



3.56 years     (1)
    
    Transferred shares represent the net impact of employees moving
    between BMO and the Bank.  95




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  Year Ended December 31, 2009Wtd. Avg.Wtd. Avg.


Aggregate Intrinsic


RemainingOptions

Shares


Exercise Price


Value


Contractual Life(In millions)Outstanding at beginning of year


2,494,946


$
35.34


$
1.1



4.62 yearsGranted


174,653



50.90Exercised


(541,535
)


29.16Transferred(1)


22,527



41.40Outstanding at December 31, 2009


2,150,591



43.64


$
23.5



4.63 yearsOptions exercisable at December 31, 2009


1,452,407


$
40.85


$
19.4



3.05 years     (1)
    
    Transferred shares represent the net impact of employees moving
    between BMO and the Bank.    Wtd. Avg.Grant DateFair ValueOptions

Shares


per ShareNonvested at beginning of year


698,184


$
7.31Granted


189,375



10.46Vested


(143,212
)


4.25Transferred(1)


67,564



7.39Nonvested at December 31, 2010


811,911


$
8.06     (1)
    
    Transferred shares represent the net impact of employees moving
    between BMO and the Bank.    Wtd. Avg.Grant DateFair ValueOptions

Shares


per ShareNonvested at beginning of year


725,206


$
6.87Granted


174,653



9.48Vested


(198,757
)


7.05Transferred(1)


(2,918
)


7.45Nonvested at December 31, 2009


698,184


$
7.31     (1)
    
    Transferred shares represent the net impact of employees moving
    between BMO and the Bank.    2010


2009Risk-free interest rate


2.90
%


2.86
%Expected life, in years


6.5



6.5Expected volatility


24.00
%


27.48
%Expected dividend yield


4.71
%


6.59
%  96




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  Mid-Term
    Incentive Plan
            Employee
    Share Purchase Plan
    16.
    Lease
    Expense and Obligations   97




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
          Year

Amount(In thousands)2011

$
36,2032012


31,9002013


30,0732014


29,3992015


28,699Thereafter


250,922Total minimum future rentals

$
407,196    98




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  17.
    Income
    Taxes    Federal


State


Total(In thousands)2010:Current

$
21,560


$
2,806


$
24,366Deferred


(71,131
)


(3,798
)


(74,929
)Total

$
(49,571
)

$
(992
)

$
(50,563
)2009:Current

$
(153,525
)

$
3,772


$
(149,753
)Deferred


38,888



(5,632
)


33,256Total

$
(114,637
)

$
(1,860
)

$
(116,497
)2008:Current

$
(96,539
)

$
(1,185
)

$
(97,724
)Deferred


(14,021
)


15,526



1,505Total

$
(110,560
)

$
14,341


$
(96,219
)  99




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    December 312010


2009


2008(In thousands)Deferred tax assets:Allowance for possible loan losses

$
284,718


$
264,377


$
233,062Deferred employee compensation


26,837



25,179



21,979Deferred expense and prepaid income


15,560



18,613



22,586Intangible assets and purchase accounting valuations


13,772







State tax loss carryforward


34,176



29,479



11,971Tax credit carryforward


46,459



1,947



Other assets


6,804



5,615



6,532Gross deferred tax assets

$
428,326


$
345,210


$
296,130Valuation allowance


(45,873
)


(37,241
)


(26,285
)Deferred tax assets, net of valuation allowance

$
382,453


$
307,969


$
269,845Deferred tax liabilities:Depreciable assets


(50,914
)


(47,457
)


(48,769
)Intangible assets and purchase accounting valuations






(9,993
)


(5,036
)Pension and medical trust


(86,141
)


(80,035
)


(10,113
)Other liabilities


(1,150
)


(1,373
)


(1,332
)Gross deferred tax liabilities

$
(138,205
)

$
(138,858
)

$
(65,250
)Deferred tax assets

$
244,248


$
169,111


$
204,595Tax effect of fair value adjustments on
    available-for-sale
    securities, pension liabilities and hedging transactions
    recorded directly to stockholders equity


82,055



58,323



111,480Net deferred tax assets

$
326,303


$
227,434


$
316,075        100




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    Years Ended December 312010


2009


2008Federal statutory rate:


35.0
%


35.0
%


35.0
%Increase (reduction) in income tax benefits due to:Bank-owned insurance


31.9



6.8



9.1Valuation allowance change for state deferred taxes, net of
    federal effect


(17.1
)


(4.8
)


(13.2
)State income taxes, excluding valuation allowance, net of
    federal effect


18.4



5.3



8.5Tax-exempt municipal income


31.8



7.7



8.8Other, net


0.2



0.8



Actual income tax rate


100.2
%


50.8
%


48.2
%         18.
    Regulatory
    Capital         101




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
            To Be Well CapitalizedFor Capital


Under Prompt CorrectiveActual


Adequacy Purposes


Action ProvisionsCapital


Capital


Capital


Capital


Capital


CapitalAmount


Ratio


Amount


Ratio


Amount


Ratio(In thousands)As of December 31, 2010Total Capital to Risk-Weighted Assets

$
4,945,364



17.87
%

3
    $
2,213,929



3
    8.00
%

3
    $
2,767,411



3
    10.00
%Tier 1 Capital to Risk-Weighted Assets

$
4,422,319



15.98
%


3
    1,106,963



34.00
%

3
    $
1,660,445



3
    6.00
%Tier 1 Capital to Quarterly Average Assets

$
4,422,319



9.64
%

3
    $
1,834,987



34.00
%

3
    $
2,293,734



3
    5.00
%As of December 31, 2009Total Capital to Risk-Weighted Assets

$
4,160,567



13.55
%

3
    $
2,456,423



3
    8.00
%

3
    $
3,070,529



3
    10.00
%Tier 1 Capital to Risk-Weighted Assets

$
3,520,984



11.46
%

3
    $
1,228,965



3
    4.00
%

3$
1,843,447



3
    6.00
%Tier 1 Capital to Quarterly Average Assets

$
3,520,984



8.82
%

3
    $
1,596,818



3
    4.00
%

3
    $
1,996,023



3
    5.00
%   19.
    Investments
    in Subsidiaries and Statutory Restrictions     102




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      20.
    Contingent
    Liabilities and Litigation    21.
    Accumulated
    Other Comprehensive Loss    Unrealized





Unrealized


AccumulatedGain on


Pension and


Loss on


OtherSecurities


Postretirement


Cash Flow Hedge


ComprehensiveAvailable-For-Sale


Adjustments


Activity


Loss(In thousands)Balance at December 31, 2010

$
41,132


$
(85,007
)

$
(92,659
)

$
(136,534
)Balance at December 31, 2009

$
60,522


$
(74,904
)

$
(83,402
)

$
(97,784
)Balance at December 31, 2008

$
54,463


$
(111,391
)

$
(149,111
)

$
(206,039
)  103




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  22.
    Foreign
    Activities  (by Domicile of
    Customer)    Foreign


Domestic


Consolidated(In thousands)2010Total operating income

$
13,710


$
1,743,414


$
1,757,124Total expenses


12,497



1,776,642



1,789,139Income (loss) before taxes

$
1,213


$
(33,228
)

$
(32,015
)Applicable income tax expense (benefit)


482



(51,045
)


(50,563
)Net income

$
731


$
17,817


$
18,548Identifiable assets at year-end

$
1,388,067


$
48,638,293


$
50,026,3602009Total operating income

$
26,788


$
1,807,397


$
1,834,185Total expenses


32,196



2,012,801



2,044,997Loss before taxes

$
(5,408
)

$
(205,404
)

$
(210,812
)Applicable income tax benefit


(2,149
)


(114,348
)


(116,497
)Net loss

$
(3,259
)

$
(91,056
)

$
(94,315
)Identifiable assets at year-end

$
1,434,674


$
42,536,953


$
43,971,6272008Total operating income

$
36,075


$
2,264,959


$
2,301,034Total expenses


93,673



2,388,384



2,482,057Loss before taxes

$
(57,598
)

$
(123,425
)

$
(181,023
)Applicable income tax benefit


(22,892
)


(73,327
)


(96,219
)Net loss

$
(34,706
)

$
(50,098
)

$
(84,804
)Identifiable assets at year-end

$
1,757,762


$
65,548,293


$
67,306,055     23.
    Business
    Combinations   104




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      travel-and-entertainment
  high-net-worth
   105




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
          2010


2009


2008Pierce





Merchants andAMCORE


Givens


Diners Club


Manufacturers


Ozaukee(In thousands)Cash and cash equivalents

$
413,568


$



$



$
36,223


$
52,125Securities


9,931











135,116



116,404Loans, net


1,525,626







647,942



1,031,275



532,507Premises and equipment


20,857







4,394



35,162



14,297Bank owned life insurance














9,221



9,579Goodwill


84,572







11,492



112,049



125,022FDIC Indemnification asset


427,521















Identifiable intangible assets


22,353



3,000



46,311



10,985



11,736Other real estate owned


23,011















Other assets


38,058



423



1,710



46,063



9,723Total assets

$
2,565,497


$
3,423


$
711,849


$
1,416,094


$
871,393Deposits

$
2,172,542


$



$
9,511


$
1,047,570


$
595,461Borrowings


137,409











154,399



82,453Accrued expenses














19,746



5,541Note payable














53,611



Other liabilities


14,163







72,750



4,071



4,594Total liabilities

$
2,324,114


$



$
82,261


$
1,279,397


$
688,049Purchase price

$
241,383


$
3,423


$
629,588


$
136,697


$
183,344   24.
    Related
    Party Transactions   106




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
    and/or
  and/or
       107




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
            Interest Expense


Loan BalanceYear Ended December 31


December 312010


2009


2010


2009


Rate

Reprice(In thousands)Long-term notes  senior/unsecuredFloating rate senior note to BMO subsidiary due June 15,
    2010





$
2,526







Floating rate senior note to BMO subsidiary due June 13,
    2011


3,594



12,096



746,500



746,500


14bps + 90 day LIBOR


QuarterlyFloating rate senior note to BMO branch due August 14, 2012


5,301



8,722



1,100,000



1,100,000


14bps + 90 day LIBOR


QuarterlyFloating rate senior note to BMO subsidiary due
    September 29, 2011


9,990



7,092



550,000



550,000


14bps + 90 day LIBOR


QuarterlyTotal long-term notes  senior/unsecured

$
18,885


$
30,436


$
2,396,500


$
2,396,500Long-term notes  subordinatedFloating rate subordinated note to Bankcorp due
    December 23, 2012

$
48


$
424


$



$
28,500


50bps + 90 day LIBOR


QuarterlyFloating rate subordinated note to Bankcorp due May 30, 2013


57



498







34,000


50bps + 90 day LIBOR


QuarterlyFloating rate subordinated note to Bankcorp due
    November 26, 2013


41



347







24,000


50bps + 90 day LIBOR


QuarterlyFloating rate subordinated note to Bankcorp due
    February 26, 2014


12



91







6,250


50bps + 90 day LIBOR


QuarterlyFloating rate subordinated note to Bankcorp due May 31, 2014


702



1,310



100,000



100,000


35bps + 90 day LIBOR


QuarterlyFloating rate subordinated note to Bankcorp due May 31, 2016


728



1,335



100,000



100,000


38bps + 90 day LIBOR


QuarterlyTotal long-term notes  subordinated

$
1,588


$
4,005


$
200,000


$
292,750Total long-term notes

$
20,473


$
34,441


$
2,596,500


$
2,689,250   108




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  Interest Expense


Certificate of DepositYear Ended December 31


Balance December 312010


2009


2010


2009(In thousands)Certificates of depositCertificate of deposit to BMO subsidiary due on March 31,
    2009

$



$
4,534


$



$



4.30%


FixedCertificate of deposit to BMO subsidiary due on May 29, 2009






632










35bps + 90 day LIBOR


QuarterlyCertificate of deposit to BMO subsidiary due on June 30,
    2009






484










35bps + 90 day LIBOR


QuarterlyCertificate of deposit to BMO subsidiary due on July 31,
    2009






696










38bps + 90 day LIBOR


QuarterlyCertificate of deposit to BMO subsidiary due on August 28,
    2009






1,281










38bps + 90 day LIBOR


QuarterlyCertificate of deposit to BMO subsidiary due on
    September 28, 2009






7,016










6bps + 90 day LIBOR


QuarterlyCertificate of deposit to BMO subsidiary due on February 7,
    2011


3



17



1,300



1,300


0.18%


FixedCertificate of deposit to BMO subsidiary due on October 10,
    2010






2







125


0.25%


FixedCertificate of deposit to BMO subsidiary due on January 26,
    2011(1)










250






0.14%


FixedCertificate of deposit to BMO subsidiary due on January 4,
    2011


4



2



3,194



3,121


0.12%


FixedCertificate of deposit to BMO subsidiary due on July 29,
    2011


12,201



11,804



950,000



950,000


93bps + 90 day LIBOR


QuarterlyCertificate of deposit to BMO subsidiary due on
    September 29, 2011






9,468










145bps + 90 day LIBOR


QuarterlyTotal certificates of deposit

$
12,208


$
35,936


$
954,744


$
954,546     (1)
    
    Includes interest expense less than $1 thousand.  25.
    Restructuring
    Charge        Severance-RelatedChargesBalance at December 31, 2008

$
862Restructuring reversals during the year


(702
)(Paid), reversed during the year


(160
)Balance at December 31, 2009

$
  109




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
  26.
    Visa
    Indemnification Charge            27.
    Other
    Assets    other-than-temporary
   110




---



##### 



HARRIS
    N.A. AND SUBSIDIARIES
  Notes
    to Consolidated Financial
    Statements  (Continued)
      available-for-sale
  other-than-temporary other-than-temporary other-than-temporary other-than-temporary
          28.
    Subsequent
    Events   111