President’s Message – Second Quarter 2010 Results Overview

I am pleased to report that Mercantil Commercebank posted a third consecutive quarter of positive growth. Diligent portfolio management and streamlined operational efficiencies coupled with new business development in healthy industry sectors guided our performance through what is still a very challenging, yet slowly recovering economy. Our financial strength also made it possible to introduce new products and services that will further solidify our position as one of Florida’s leading financial institutions.

In the second quarter, we posted a modest net profit of $2.3 million. Compared to the first quarter of the year, we experienced a growth in loans of 15% to close at $3.6 billion and improved the quality of the portfolio. We also increased deposits to reach $4.5 billion. At the end of the quarter, total assets were $6.4 billion, representing a gain of 7%. Our investment portfolio is highly liquid and is comprised of secure short-term and government-backed bonds. This gives us the flexibility to respond to increased loan demand when the economy gains momentum and offers new opportunities.

Backed by our strong capital base, we continued in our commitment to serve businesses, particularly small businesses, by introducing new credit products such as the MCB Business Credit Line and an improved business online banking. We also developed a new suite of personal and commercial deposit products to enhance your experience in banking with us. As always, we continue working in partnership with our subsidiaries, Mercantil Commercebank Investment Services, Inc. and Mercantil Commercebank Trust Company, N.A., to offer you the expert investment and financial planning advice you need during these challenging times.

In this issue, you will learn about some of the latest enhancements to our online banking services, community involvement support and more. We also share valuable advice to keep your financial information secure. At Mercantil Commercebank, we remain committed to improving your financial well-being and to building stronger communities.

Click here to read more about our Second Quarter 2010 results.

To view an online demo and obtain answers to questions (FAQs) about this free business banking service, click here.

Mercantil Commercebank Launches More Convenient and Secure Online Banking for Businesses
The Bank’s commercial customers will soon be able to take advantage of a new online banking platform with improved features and security. Among these improvements, you can now easily access information on cleared, pending, and scheduled transactions for each account, initiate wire transfers and much more, from any internet-connected computer worldwide, anytime, anywhere:

• A cleaner, more intuitive navigation enables you to quickly view account activity, statements, and search for transactions
• From a central payment center, you can create and manage both domestic and international payments, stop payments, and initiate wire or ACH transfers with the option of using timesaving templates and pre-defined beneficiaries
• With the click of a mouse, you can also set up one-time or recurring funds transfers between your accounts at Mercantil Commercebank or other financial institutions – both domestically and internationally.
• Reporting is more robust as well. Account activity can be downloaded in CVS or BAI formats for cash management. Define categories for expenses and income and generate reports using standard or user-customized filters.
• Additional tools include reminders and alerts based on account or transaction activity.

You can also expect even greater security. A new level of identity protection has been added; now your account logins will use a new MCB Business Online Access Key code in addition to your Company ID, User ID, and Password. This device is about the size of a flash drive and generates a new random password every time you want to access your account. An Image and Phrase upon login are anti-phishing devices, so if you don’t recognize them don’t continue to login. Furthermore, secure email communication with the Bank’s online banking support center provides a higher level of encryption.

To view an online demo and obtain answers to questions (FAQs) about this free business banking service, click here.

If you have a Certificate of Deposit account, you can now enjoy the convenience, security and confidentiality of our new Online CD Notices Service. This new service lets you manage multiple notices related to your CDs safely and easily – just by signing on to Personal Online Banking.

Keep track of important notifications online, including:

• Maturities
• Automatic Renewals
• Interest Disbursements
• Rate Changes

The Online CD Notices Service is free and registration is easy. To learn how you can enroll, click here.

A subsidiary of Mercantil Commercebank-N.A., Mercantil CIS is a US-based broker-dealer and investment advisor. It upholds to the highest regulatory and asset protection standards as a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). As an investment advisor, it is regulated by the Securities and Exchange Commission (SEC).

Mercantil CIS professionals are guided by an investment approach that is founded on a firm commitment to thoroughly understand clients’ goals and preferences – today and into the future. Working closely with clients, Mercantil CIS advisors develop investment strategies that are tailored to the objectives and risk-tolerance of each individual or institutional investor. All clients can expect the highest degree of personal attention and assistance from an advisor that is proficient in both English and Spanish.

Mercantil CIS offers two investment services or approaches: (Brokerage) and (Advisory). With Brokerage services, clients who prefer to manage their own investments have access to transaction-specific recommendations from Mercantil CIS experts, plus a comprehensive range of securities and investment products including stocks, bonds, money and mutual funds, structured products, and other vehicles. Advisory clients, on the other hand, benefit from the services of a dedicated, experienced Mercantil CIS investment advisor who helps them select the appropriate investment options and manages their portfolio to achieve their financial goals.

Visit www.mercantilcis.com or contact 1-800-320-2819 to learn more about Mercantil CIS and your investment options.

Not FDIC insured | Not bank guaranteed | May lose value | Not insured by governmental agencies Member FINRA/SIPC, Registered Investment Adviser

Mercantil Commercebank Receives Miami Chamber of Commerce Minority Business Award for Community Involvement
For a second consecutive year, the Greater Miami Chamber of Commerce recognized Mercantil Commercebank with its Top 100 Minority Business Award®, this year in the category of community involvement. The honor involves an extensive evaluation of the Bank’s civic and charitable endeavors. Throughout its 30-year history, Mercantil Commercebank has been committed to giving back to the community, both at the corporate level and among its employees. It has traditionally supported the American Red Cross Greater Miami and the Keys, New World School of the Arts, La Liga Contra el Cancer, Habitat for Humanity, the March of Dimes, CHARLEE Group homes, and Voices For Children, among other worthwhile organizations.

The weakened economy saw increased community needs, yet curtailed philanthropic resources. The Bank and its employees re-affirmed their tradition of community involvement by actively participating in Habitat for Humanity and the annual Brownsville beautification project. Matched employee contributions went toward American Red Cross relief efforts in Haiti. Expanding upon a long-term partnership, the Bank also launched a pilot photography program at Zoo Miami. These and other endeavors demonstrate Mercantil Commercebank’s unwavering dedication to community involvement. Community service is an integral part of the Bank’s identity and corporate culture.

An eye on the Zoolens^SM Photography Project

This spring Mercantil Commercebank, in partnership with Zoo Miami and the Zoological Society of Florida, pioneered a photography program designed to foster the arts and promote an understanding of wildlife among eighth grade students in eight Miami-Dade County Public Schools. Olympus Imaging America, Inc. and the North American Nature Photography Association (NANPA) also partnered in this pilot program.

The students’ photo-expeditions at Zoo Miami resulted in the selection of three winners: First Place winner David Martinez from West Miami Middle School; Second Place and Student’s Choice winner Karen Ramirez from Hammocks Middle School; and Third Place winner Giselle Cisne from Miami Lakes Middle School. Winners were selected from a highly talented group of 300 eighth-grade students by a distinguished panel of judges, including renowned photographers Alex Gort, Jr., Maria Martinez-Cañas, and Suzanne Lee Mast of the Miami Herald, along with Zoo Miami’s director of communications Ron Magill, and New World School of the Arts professor in visual arts Rosario Martinez-Cañas.

Prizes included Mercantil Commercebank savings accounts, student memberships in NANPA, and recognition within the Zoolens website, the Zoo Miami website, and in the Zoological Society of Florida’s newsletter. The First Place winner also received a unique behind-the-scenes tour of the Zoo. Both the First Place and the Students’ Choice winners won Olympus e-620 Professional cameras. All participating schools received a donation toward their art department.

The long-term goal of the Zoolens Photography Project is to broaden the number of participating schools, allowing an increasing number of Miami-Dade County Public School students to participate in this innovative program. Click here to find out more about Zoolens and see winning photographs.

• Install anti-virus software on your computer and obtain updates on a regular basis
• Release personal information on email correspondence only if you have initiated contact with a company, organization or individual and determine the recipient to be trustworthy
• Never provide personal information when replying to unsolicited emails
• Be cautious when using Wi-Fi or public computers

• Periodically change your online password, including those you use with online merchants
• Avoid using obvious passwords, like your date of birth or children’s names
• Create passwords with a mix of upper and lower case characters, as well as numbers and symbols

• Never share your account numbers, personal identification number (PIN) or passwords
• Be cautious of telephone calls requesting bank information where you have not initiated contact
• Mail checks in a locked mailbox
• Enroll for online statements to avoid lost or stolen statements in the mail
• Review your account statement carefully every month and report any suspicious activity immediately

• Store legal documents, contracts and passports in a safe deposit box or personal vault
• Never provide your social security or Cedula number over the phone unless you have initiated contact with a company, organization or individual you consider trustworthy
• Shred documents containing personal information
• Be cautious when using Wi-Fi or public computers

If you suspect that your identity has been compromised, take action right away.

Click here to download this important information in PDF format. For more tips on how to protect your identity and how to report ID theft, visit our Identity Theft and Security Center.