Coral Gables, FL - July 30, 2009

Mercantil Commercebank, one of the largest banks headquartered in Florida, announced today its 2009 second quarter results.

The bank’s investment portfolio continues to provide a high level of liquidity at $2.3 billion, as well as exceptional asset quality, while interest bearing transaction and savings accounts, the Bank's core client base, are up about 1% from the prior quarter. Additionally, due to its high level of liquidity, the Bank does not compete aggressively in the local market for higher cost deposits.

The Bank’s capital grew to $620 million after an increase of $65 million from its holding company, Mercantil Commercebank Florida Bancorp, a 31% increase over the same period last year.
As of the end of this quarter, the bank’s Tier 1 Leverage Ratio was approximately 10.49%, up from 8.71% at the end of the first quarter, or more than double the regulatory threshold for a ‘well capitalized’ bank. Under regulatory standards, a bank is considered well capitalized if its Tier 1 Leverage Ratio is 5% or higher. Similarly, the Bank’s Tier 1 Risk Weighted Capital ratio increased from 15.04% to 18.33%, which is well above the 6% level considered well capitalized under regulatory standards.

Earlier this year, Fitch Ratings, a credit rating agency with significant coverage of financial institutions, reaffirmed the Bank's investment grade rating, primarily on the basis of its capital strength, noting that at the Bank: "Capital levels are considered solid and provide a significant layer of support.”

Due to the continuing decline in the value of residential and commercial real estate properties, impacted by the ongoing market correction in South Florida, the Bank set aside $47.8 million in Loan Loss Provisions for the quarter, which led to a second quarter loss of $14.9 million, compared to a profit of $4.4 million for the second quarter of 2008.

The bank reported that its ratio of non-performing loans over total loans increased slightly to 10.24%, versus 9.52% at the end of the first quarter. However, loans represent only 55% of the assets of the Bank. Non-performing assets, as a percentage of total assets, represent 6% at June 30th.

Net loans were $3.02 billion, a decrease of 11% from the same period in 2008. It is important to note that the bank’s loan portfolio increased by 4% ($112 million) from the previous quarter in 2009.

The bank announced the opening of its second branch during 2009, in Parkland, Broward County, Florida, complementing the opening of its first branch in Palm Beach County during the first quarter of 2009.

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 $5.6 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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