Mercantile earnings rise 8.6 percent in second quarter

July 14, 1993

Earnings for Mercantile Bankshares Corp., which owns Mercantile-Safe Deposit and Trust Co., rose 8.6 percent in the second quarter as the Baltimore-based banking company enjoyed the effects of falling interest rates.

Like other banks, Mercantile is reaping the benefits of declining interest rates and is putting more of its money into loans and investments.

While the interest rates charged on bank loans have dropped, they have not fallen as much as the rates offered for depositors' money. As a result, the difference between the two rates has grown larger, and banks have posted higher profits.

In Mercantile's case, the difference between the rate that the bank paid for deposits and the amount it charged for loans was 4 percent -- greater than the difference of 3.89 percent a year ago.

Also, Mercantile increased this advantage by having more money in loans and other investments than it had a year ago. The company said it had $5 billion placed in money-making investments, a rise of 3 percent.

Mercantile .. .. .. .. Ticker .. .. .. .. .. .. Yesterday's.

Bankshares .. .. .. .. Symbol .. .. .. .. .. .. Cls. .. .. Chg.

.. .. .. .. .. .. .. .. MRBK .. .. .. .. .. .. 30.. .. .. -1

Period ended

June 30 .. .. .. .. .. 2nd qtr. .. .. .. .. ..Year ago .. ..Chg.

Net Income .. .. .. .. $20,414 .. .. .. .. .. $18,787 .. .. +8.6%

Primary EPS .. .. .. .. $0.67 .. .. .. .. .. .. $0.62 .. .. +8.1%

Annualized return

on assets .. .. .. .. .. 1.53 .. .. .. .. .. .. 1.44 .. .. .. --

Add. to allowance

for loan losses .. .. ..$3,962 .. .. .. .. .. .. $4,937 .. ..-19.7%

.. .. .. .. .. .. .. .. 6 mos. .. .. .. .. .. .. Year ago .. .. Chg.

ENet Income .. .. .. .. $40,906 .. .. .. .. .. .. $37,658 .. .. +8.6%

Primary EPS.. .. .. .. ..$1.34 .. .. .. .. .. .. .. $1.24 .. ..+8.1%

Annualized

return on assets .. .. .. 1.55 .. .. .. .. .. .. .. 1.46 .. .. .. --

Add. to allowance

for loan losses .. .. .. $7,215 .. .. .. .. .. .. $6,880 .. .. .. +4.9%

.. .. .. .. .. .. .. .. .. Balances as of .. .. .. .. .. .. .. .. .. 6/30/93 .. .. .. .. 6/30/92

KAssets .. .. .. .. .. .. .. $5,445,708 .. .. .. .. $5,254,584 .. .. +3.6% Deposits .. .. .. .. .. .. ..$4,477,794 .. .. .. .. $4,365,749 .. .. +2.6% Loans outst. .. .. .. .. .. .$3,550,949 .. .. .. .. $3,468,579 .. .. +2.4% Loan loss

reserve .. .. .. .. .. .. .. .. $88,930 .. .. .. .. .. $70,431 .. .. -26.3% Figures in thousands (except per-share data.)

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