Press Releases (Net Profit $6.7)

Press Releases

MERCANTIL COMMERCEBANK REPORTS NET PROFIT OF $6.7 MILLION FOR THE SECOND QUARTER 2014

Coral Gables, FL (July 30, 2014)

Mercantil Commercebank, one of the largest banks headquartered in Florida, today announced a net profit of $6.7 million for the second quarter of 2014, and closed the quarter with total assets of $7.5 billion.

Net loans closed at $5.0 billion, an increase of 3.8% over the previous quarter and 8.7% over the same quarter last year. Commercial and Industrial (C&I) loans, a key strategic market segment for the Bank, grew 5.4% over the last twelve months. This was attributed to steady economic expansion in a broad range of sectors. Deposits closed at $5.8 billion, a 3.8% increase over the previous quarter, and 6.9% over the same quarter last year.

The Bank’s capital closed at $739.8 million, and its capital ratios continued to significantly exceed the regulatory benchmarks to be considered “well capitalized”. At June 30, the Bank’s Tier 1 Leverage Ratio was 10.2% and the Total Risk Weighted Capital Ratio was 14.8%.

Net interest income for the quarter was $37.2 million, similar to the previous quarter. Operating profit for the quarter was $10.5 million.

The Bank maintains a significant portion of its assets, $2.2 billion or 29.8% of total assets, in short-term placements and a securities portfolio of U.S. Government and Government Sponsored Enterprise bonds. This high level of liquidity positions the Bank to continue expanding its lending activities.

““The second quarter showed continued success in our loan and deposit growth,” said Millar Wilson, Vice Chairman and CEO of Mercantil Commercebank. “With our ongoing infrastructure investments in support of our growing business, paired with the strong capital ratios, the Bank is well positioned to continue expanding and meeting the financial needs of our customers across all of our markets.”

Period ended:

($’s in millions)

Jun. 30, 2014

Mar. 31, 2014

Jun. 30, 2013

Total Assets

$7,467.3

$6,898.1

$6,996.7

Total Loans, net

$5,007.2

$4,823.8

$4,608.2

Allowance for Loan Losses

$    60.1

$     62.1

$     61.2

Non-accruing Loans

$     52.4

$     36.2

$     55.4

Repossessed Assets

$       4.0

$     10.0

$     16.3

Non-performing
Assets to Total Assets

0.76%

0.67%

1.02%

Non-accruing
Loans to Total Loans

1.03%

0.74%

1.19%

Total Deposits

$ 5,840.0

$ 5,623.8

$5,465.2

Capital

$   739.8

$   729.5

$   718.8

Quarter Results

Net Interest Income

$    37.2

$     37.1

$     37.0

Operationg Profit

$     10.5

$    11.2

$     13.4

Loan Provisions

$       0.9

$       2.1

$       0.1

Net Income

$       6.7

$       5.9

$       9.2

Return on Assets

0.38%

0.34%

0.54%

Year-to-date Results

Net Interest Income

$     74.3

$     74.9

Operationg Profit

$     21.7

$     27.6

Loan Provisions

$      3.0

Net Income

$     12.6

$     19.3

Return on Assets

0.36%

0.57%

 

ABOUT MERCANTIL COMMERCEBANK:

Mercantil Commercebank N.A. is one of the largest banks in South Florida serving its community for over 30 years. Mercantil Servicios Financieros (MSF), a Venezuelan company, beneficially owns the Bank through U.S. bank holding companies. MSF is the largest provider of financial services in Venezuela with more than 85 years of experience. Mercantil Commercebank has assets of $6.9 billion. The Bank is headquartered in Coral Gables, Florida and has 19 Banking Centers – 15 located in South Florida; three in Houston, Texas; and one in Manhattan, New York. The Bank offers a wide variety of domestic, international, personal and commercial banking services, including investment, trust, and estate planning through its subsidiaries, Mercantil Commercebank Investment Services, Inc. and Mercantil Commercebank Trust Company, N.A. For more information, please visit www.mercantilcb.com.