Press Releases (Net Profit$8.0)

Press Releases 

MERCANTIL COMMERCEBANK REPORTS NET PROFIT OF $8.0 MILLION FOR THE FOURTH QUARTER 2014

Coral Gables, FL (January 30, 2015)

Mercantil Commercebank, one of the largest banks headquartered in Florida, today announced a net profit of $8.0 million for the quarter ending December 31, 2014, and total assets of $7.9 billion.

Net loans closed at $5.2 billion, 4.5% higher than the previous quarter, and 10.2% higher than the same quarter last year. Real estate loans grew 5.2% from the previous quarter, and 25.1% over the last twelve months. Commercial and Industrial (C&I) loans increased 3.5% during the quarter, and 6.6% over the last twelve months. This performance was attributed to positive trends in the South Florida real estate sector, along with growth in lending activity in the New York and Houston markets. Deposits closed at $6.3 billion, a 1.4% increase over the previous quarter, and 13.7% over the same quarter last year.

The Bank’s capital closed at $746.0 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 9.3% and the Total Risk Weighted Capital Ratio was 13.3%.

Net interest income for the quarter was $43.4 million, an increase of 5.9% over the previous quarter, and 14.8% higher with respect to the same quarter last year. Operating profit for the quarter was $14.3 million, a 10.9% increase with respect to the previous quarter and 26.5% higher than the same quarter last year.

The Bank maintains a significant portion of its assets, $2.3 billion or 29.5%, in short-term placements and a securities portfolio primarily comprised of U.S. Government Sponsored Enterprise bonds and high-quality corporate bonds. This high level of liquidity positions the Bank to continue supporting its lending activities.

“Our strong fourth quarter was largely attributed to a consistent growth in loans across all of the markets we serve,” said Millar Wilson, Vice-Chairman and CEO of Mercantil Commercebank. “The Bank also experienced growth in our banking center network, with the opening of our Tanglewood location, which represents our fifth branch in the Greater Houston Area. Moving forward in 2015, we will remain committed to expanding our product offerings while continuing to deliver exceptional customer service that meets the demands of our growing customer base.”

Period ended:

($’s in millions)

Dec. 31, 2014

Sept. 30, 2014

Dec. 31, 2013

Total Assets

$7,903.0

$7,783.9

$6,820.3

Total Loans, net

$5,232.9

$5,007.1

$4,750.1

Allowance for Loan Losses

$    65.4

$     61.3

$     60.5

Non-accruing Loans

$     40.9

$     49.1

$     34.9

Repossessed Assets

$       3.0

$       4.0

$     12.7

Non-performing
Assets to Total Assets

0.56%

0.68%

0.70%

Non-accruing
Loans to Total Loans

0.77%

0.97%

0.73%

Total Deposits

$ 6,318.3

$ 6,229.3

$5,559.4

Capital

$   746.0

$   739.0

$   721.7

Quarter Results

Net Interest Income

$    43.4

$     41.0

$     37.8

Operationg Profit

$     14.3

$    12.9

$     11.3

Loan Provisions

$       2.6

$       2.4

$       0.1

Net Income

$       8.0

$       7.2

$       7.5

Return on Assets

0.37%

0.38%

0.44%

Year-to-date Results

Net Interest Income

$     158.7

$     150.3

Operationg Profit

$     48.9

$     51.8

Loan Provisions

$      8.0

$      0.3

Net Income

$     27.7

$     34.2

Return on Assets

0.38%

0.50%

 

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.