Earnings inch up for Mercantile

October 12, 1990

Net income for Mercantile Bankshares Inc., the parent company of Mercantile-Safe Deposit and Trust Co., edged up slightly during the third quarter hitting $15.9 million, or 57 cents a share.

The profit was less than one percent higher than the previous third quarter, when the bank holding company earned $15.8 million, or 57 cents per share. But it was welcomed news in light of the troubles of other banks where large losses are being taken because of the declining real estate market.

Net income for the first nine months was $50.2 million, or $1.79 per share, a 4 percent increase over the same period a year ago when Mercantile earned $48.2 million, or $1.73 per share.

Mercantile, which owns 18 community banking operations, is a conservatively managed bank and has not suffered the problems that other banks are now having. However, the bank did boost its reserves for possible loan losses from $2.18 million to $4.45 million.

Total assets as of Sept. 30 were $4.4 billion, a 7.4 percent increase over the same time last year when assets were $4.1 billion. Deposits at the end of September were $3.6 billion compared to $3.4 billion a year ago.

Average total loans during the first nine months were $3 billion, a 7 percent increase over the $2.9 billion in loans made in the first nine months of 1989.

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