Mercantile earnings rose 4.6% in quarter

July 12, 1994|By Timothy J. Mullaney | Timothy J. Mullaney,Sun Staff Writer

Mercantile Bankshares Corp. said its earnings rose 4.6 percent during the second quarter of 1994, reflecting a 70 percent drop in the amount of money the company had to set aside to guard against bad loans.

The Baltimore-based parent of Mercantile-Safe Deposit & Trust said it earned $21.4 million, or 47 cents a share, during the three months that ended June 30. The company earned $20.4 million, or 44 cents a share, in the same three months last year.

The company's provision for loan losses fell by nearly $2.8 million. That drop, a sign of the improving economy, more than accounted for the profit gain. Mercantile's net interest income also rose 5 percent, but non-interest expenses jumped 12 percent, fueled by a 13 percent jump in rent and similar payments for company-occupied real estate and a 41 percent gain in unspecified "other expenses," to $9.1 million.

The results were slightly below analysts' consensus expectations, according to estimates published by Zacks Corporate Earnings Estimator. Analysts had expected Mercantile to earn 48 cents a share.

Mercantile Bankshares Corp.

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

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

.. .. .. .. .. .. .. .. .. .. MRBK .. .. .. .. .. 20 1/2 .. .. +/

Period ended

6/30/94 .. .. .. .. .. .. .. 2nd qtr. .. .. .. .. Year ago .. Chg.

Net Income .. .. .. .. .. .. $21,352 .. .. .. .. $20,414 .. +4.6%

Primary EPS.. .. .. .. .. .. ..$0.47 .. .. .. .. .. $0.44 .. +6.8%

Annualized return

on assets .. .. .. .. .. .. .. 1.54 .. .. .. .. .. . 1.53 .. +0.6%

Add. to allowance

for loan losses.. .. .. .. .. 1,180 .. .. .. .. .. 3,962 .. -70.2%

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

DNet Income .. .. .. .. .. .. $42,573 .. .. .. .. $40,906 .. ..+4.1%

Primary EPS.. .. .. .. .. .. ..$0.93 .. .. .. .. .. $0.89.. ..+4.5%

Annualized

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

Add. to allowance

for loan losses .. .. .. .. .. 3,002 .. .. .. .. .. 7,215 .. -58.4%

.. .. .. .. .. .. .. .. .. .. .. .. Balances as of .. .. .. .. .. .. .. .. 6/30/94 .. .. .. .. 6/30/93

DAssets .. .. .. .. .. $5,587,145 .. .. .. .. $5,445,708 .. .. +2.6%

Deposits.. .. .. .. ..$4,549,508 .. .. .. .. $4,477,794.. .. ..+1.6%

Loans outst. .. .. .. $3,619,176 .. .. .. .. $3,550,949.. .. ..+1.9%

Loan loss

reserve.. .. .. .. .. .. 91,666 .. .. .. .. ..88,930 .. .. .. +3.1

Figures in thousands (except per share data.)

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