Press Releases (Net Profit $7.5)

Press Releases 

MERCANTIL COMMERCEBANK REPORTS NET PROFIT OF $7.5 MILLION FOR THE FOURTH QUARTER 2013 AND $34.2 MILLION FOR THE YEAR

Coral Gables, FL (January 30, 2014)

Mercantil Commercebank, one of the largest banks headquartered in Florida, today announced a net profit of $7.5 million for the fourth quarter of 2013, and closed the year with total assets of $6.8 billion.

Net loans closed at $4.8 billion, an increase of 8.7% over the same quarter last year. Commercial and Industrial (C&I) loans, a key strategic market segment for the Bank, continued to grow. During the fourth quarter, C&I loans grew by 5.3%, and over the last twelve months, they grew by a substantial 14.0%. This was attributed to steady economic expansion in a broad range of sectors. Deposits closed at $5.6 billion, a 1.0% increase over the previous quarter, and 3.6% over the previous year.

The Bank’s capital closed at $721.7 million, and its capital ratios continued to significantly exceed the regulatory benchmarks to be considered “well capitalized”. At December 31, the Bank’s Tier 1 Leverage Ratio was 10.3% and the Total Risk Weighted Capital Ratio was 16.2%.

Non-performing loans, as a percentage of total loans, improved from 0.9% in the previous quarter to 0.7% in the fourth quarter. Net interest income for the quarter was $37.8 million, slightly higher than the previous quarter as a result of loan growth. Operating profit for the quarter was $11.3 million.

The Bank maintains a significant portion of its assets, $1.9 billion or 27.6% 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 and helps to offset the effects of the protracted low interest rate environment.

“We are pleased with our results in the fourth quarter and proud of our achievements during the year,” said Millar Wilson, Vice-Chairman and CEO of Mercantil Commercebank. “As we continued to expand our footprint in South Florida and Houston, Texas, we successfully grew loans and deposits contributing to a stronger balance sheet and customer base. At the same time, we further strengthened our team of talented professionals and product offerings to deliver the highest level of service for our customers.”

“Throughout 2013, our focus on enhancing the well-being of our clients, our people, business partners and local communities was also a priority,” added Wilson. “In the coming year, our team remains committed to supporting the communities we serve.”

Period ended:

($’s in millions)

Dec. 31, 2013

Sept. 30, 2013

Dec. 31, 2012

Total Assets

$6,820.3

$6,996.7

$6,819.7

Total Loans, net

$4,750.1

$4,544.2

$4,371.4

Allowance for Loan Losses

$     60.5

$     60.4

$     67.3

Non-accruing Loans

$     34.9

$     42.5

$     86.2

Repossessed Assets

$     12.7

$     23.3

$     11.0

Non-performing
Assets to Total Assets

0.70%

0.96%

1.4%

Non-accruing
Loans to Total Loans

0.73%

0.92%

1.9%

Total Deposits

$5,559.4

$5,500.7

$5,365.5

Capital

$   721.7

$   717.3

$   718.8

Quarter Results

Net Interest Income

$     37.8

$     37.5

$     39.2

Operationg Profit

$     11.3

$     12.9

$     14.1

Loan Provisions

$       0.1

$       0.1

$       2.0

Net Income

$       7.5

$       7.4

$     10.2

Return on Assets

0.44%

0.43%

0.60%

Year-to-date Results

Net Interest Income

$   150.5

$   158.1

Operationg Profit

$      51.8

$      63.9

Loan Provisions

$       0.3

$      24.1

Net Income

$      34.2

$      31.8

Return on Assets

0.50%

0.47%

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.