Mercantile earnings rise to $19.1 million

October 16, 1992|By David Conn | David Conn,Staff Writer

Mercantile Bankshares Corp. took a $21 million hit from Baltimore Orioles' owner Eli S. Jacobs in the third quarter but managed to generate enough operating profits and gains from securities sales to increase earnings compared with a year earlier.

The Baltimore-based company, parent of the Mercantile-Safe Deposit & Trust Co., said earnings grew to $19.1 million, or 63 cents a share, in the three months that ended Sept. 30, up 13.5 percent from a year ago and 1.6 percent from the second quarter of this year.

The company, which reported its results Wednesday, said the latest earnings were depressed by an unusually large contribution to the bank's reserves for possible loan losses, which Mercantile said was "primarily attributable to a $21.3 million loan to one borrower."

President Edward Dunn acknowledged yesterday that that borrower was Mr. Jacobs, with whom the company is in talks to satisfy the debt, he added.

The bank, whose parent company has $5.3 billion in assets, also is in litigation with Mr. Jacobs. Mercantile-Safe Deposit sued the New York businessman in August, seeking repayment of the loan. Mr. Jacobs countersued, alleging breach of contract, among other things. The lawsuits remain unresolved.

,

Three months ended 9/30/92

... ... ...Income... ... ... .... Share

'92 ... ...19,088,000.. ... .... 0.63

'91 ... ...16,820,000.. ... .... 0.55

% change ...+13.5... ... ... .... +14.5

... ...Annualized return on assets* '92.... 1.46%

1.34%

... ...Addition to allowance... ... ... ... Net

...for loan losses ... ... .... ... ... charge-offs

'92... 33,348,000... ... ... ... ... ... ..1,093,000

4,939,000... ... ... ... ... ... ...6,079,000

change +575.2... ... ... ... ... ... ... ... -82.0

Nine months ended 9/30/92

... ...Income.... ... ... ... Share

'92 ... 56,746,000... ... ...1.87

'91 ... 53,066,000... ... ...1.76

% change +6.9... ... ... ... .. +6.3

Balances as of 9/30/92

... ...Assets... ... ... ... Deposits

'92... 5,295,979,000... ... 4,383,295,000

'91... 5,066,152,000... ... 4,170,225,000

% change +4.5... ... ... ....+5.1

... ... Loans.... .... .... ... Allowance

... ... outstanding... .... ... for loan losses

3,526,864,000... ... ..102,686,000

'91.... 3,298,898,000... ... ..63,326,000

% change +6.9... ... ... ... ...+62.2

* Return on assets are based on average assets, not assets at

quarter-end.

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