Mercantil commercebank increases capital by $65 million
Total Capital of the Bank is now $624 Million
Coral Gables, FL - June 29, 2009
Mercantil Commercebank, one of the largest Banks based in South Florida with $5.8 billion in assets, announced today an increase of $65 million in capital from its holding company, Mercantil Commercebank Florida Bancorp, to reach a total of $624 million.
Under regulatory standards, a bank is considered well capitalized if its Tier 1 Leverage Ratio (tangible equity over total assets) is 5% or higher. As of the quarter ending March 31, 2009, the bank’s Tier 1 Leverage Ratio was 8.67%. At the end of the present quarter, the additional capital will bring the Bank’s Tier 1 Leverage Ratio to approximately 10%, almost double the regulatory threshold for a ‘well capitalized’ bank.
Earlier this year, Fitch Ratings, the leader in credit ratings coverage of financial institutions, reaffirmed the Bank's investment grade rating, primarily on the basis of its capital strength, noting that: "Capital levels are considered solid and provide a significant layer of support.”
“High levels of capital facilitate growth, especially in challenging economic environments,” said Millar Wilson, Mercantil Commercebank President and CEO. “Our high level of capital, coupled with a very liquid balance sheet, gives us a competitive advantage to serve our customers’ credit needs and continue our growth.”
ABOUT MERCANTIL COMMERCEBANK
Mercantil Commercebank N.A. is one of the largest privately held banks in South Florida serving its community for 30 years. Mercantil Servicios Financieros (MSF), a Venezuelan company, beneficially owns the Bank through U.S. bank holding companies. MSF is the largest provider of financial services in Venezuela, with more than 80 years of experience. Mercantil Commercebank has assets of $5.8 billion. The Bank is headquartered in Coral Gables, Florida, and has 17 Banking Centers, 15 in South Florida; one in Manhattan, New York; and one in Houston, Texas. Mercantil Commercebank is a recipient of the “100 Top Business Minority Awards,” and is ranked as a Top Community Bank in South Florida. The Bank offers a wide variety of domestic, international, personal, and commercial banking services, including investment, trust, and estate planning through its subsidiaries, Mercantil Commercebank Investment Services, Inc. and Mercantil Commercebank Trust Company, N.A. For more information, please visit www.mercantilcb.com.
Editor’s Note: There’s another bank in South Florida whose moniker includes the word ‘Mercantile.’ Please note that we are MERCANTIL COMMERCEBANK. Thank you.
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