Coral Gables, FL - February 4, 2009

Mercantil Commercebank, one of the largest privately held banks in South Florida, announced today its end-of-year 2008 results.

The Bank reached $6.0 billion in assets, an increase of 10.4 percent compared to 2007.
Deposits and customer sweep repos (interest bearing commercial funds) increased by 8.3 percent while loans grew 2.4 percent to close the year at $3.1 billion. During the second semester, the Bank received capital of $100 million from its holding company contributing to total equity of $559.5 million, an increase of 18.7 percent over the last 12 months.  The Bank’s tangible equity to assets ratio (an important measure of capital strength) was 8.96 percent at year-end, higher than the national peer group average of 8.06 percent reported as of September 30th, 2008.  The National Peer Group is comprised of Banks with more than $3 billion in assets.

The Bank reported a profit of $2.5 million for 2008, 94 percent below 2007, while reporting a $9.3 million loss for the fourth quarter of 2008.   The results of the year reflect provisions of $77 million made following the Bank’s long-standing policy of ensuring adequate loan reserves.  The provisions adjusted the carrying value of impaired loans to the value of their real estate collateral.

“The Bank’s asset diversification and sound credit underwriting have allowed it to reduce the effects of the economic downturn, remaining profitable at year-end 2008, and further consolidating its position as one the leading financial institutions headquartered in the state of Florida, said Millar Wilson, President & CEO of Mercantil Commercebank.

Through the years, Mercantil Commercebank:

• Has significantly increased its capital base to support its growth
• Has maintained high levels of liquidity enabling it to serve the credit
  needs of its customers
• Achieved significant year-to-year increases in customer deposits
• Did not participate, as a lender or as an investor, in securities backed by sub-prime mortgage loans. Earlier in 2007, the Bank anticipated the risks inherent in this sector, and established policies that restricted participation in this area.
• Reduced significantly its real estate exposure as part of a strategy initiated in 2004 to  reduce the percentage of real estate loans-to-total loans on its balance sheet. The Bank’s real estate concentration in its portfolio has always been much lower than the average of Florida-based banks.
• Has maintained a long-standing policy of ensuring adequate loan reserves.

“We have the resources, the liquidity, and the strong capital to serve our customers, expand our network of banking centers, and increase our market share in 2009, including our imminent expansion into Palm Beach County, with the opening a new branch in Lake Worth.“ concluded Wilson.

Back to top