Coral Gables, FL - April 28, 2010

Mercantil Commercebank, one of the largest banks headquartered in Florida, today announced a net profit of $1.3 million for the first quarter 2010, or $1.9 million before taxes.

The bank’s total assets and deposits remained unchanged at $6.0 billion and $4.8 billion, respectively, from the previous quarter. Net loans decreased by 2.7% to close the quarter at $3.2 billion. The Bank’s capital is $659.5 million at quarter end, more than double the regulatory threshold for a bank to be considered well-capitalized.

During the first quarter the Bank set aside $11.9 million in loan provisions, a substantial decrease from $18.5 million the previous quarter and $18.2 million in the first quarter of 2009. This was made possible, in part, by the Bank’s proactive management of troubled loans and a slowdown in the decline in values on the properties the Bank financed. “While it may be too early to declare that a recovery is underway in the real estate sector, we have witnessed many instances where declines in property values have moderated considerably,” commented Millar Wilson, President and CEO. The Bank’s ratio of non-performing assets to total assets remained flat from the fourth quarter of last year at 7.5%.

The Bank’s interest income continues to be negatively impacted by the very low interest rate environment, particularly for short-term assets. This led to a decline in net interest income of $3.8 million, or 10.1%, during the first quarter from the fourth quarter of 2009. The Bank maintains a significant portion of its assets, $2.5 billion or 42.0% of total assets, in short-term placements and a securities portfolio of U.S. Government and Government Sponsored Enterprise bonds. This high level of liquidity will provide the Bank with ample flexibility to increase its lending activities, but also reduces its interest income potential.

“By maximizing efficiencies, proactively managing nonperforming assets and experiencing moderation in the real estate market, we were able to report a second consecutive quarter of profitability,” said Millar Wilson, President and CEO. “We are encouraged by favorable signs that the economy may be on its way to recovery. Because of our strong capital and ample liquidity, we are poised to satisfy our customers’ needs as this recovery gains momentum and leads to growing loan demand.”

Period ended		Mar 31, 2010	Dec 31, 2009	Mar 31, 2009
Total Assets		$6,011.3	$5,991.0	$6,197.4
Total Loans (net)		$3,159.6	$3,247.9	$2,908.3
Non-performing Assets to Assets		7.5%	7.5%	5.2%
Total Deposits		$4,354.7	$4,399.7	$4,262.4
Capital		$659.5	$654.5	$567.8
Results
Quarter Ended, Net		$1.3	$6.2	$1.0
	Return on Assets	0.08%	0.39%	0.07%
	Before Provisions and Taxes	$13.8	$27.9	$19.8
Total Year, Net (Loss) Income			$(25.7)
	Return on Assets		(0.42)%
	Income Before Provisions and Taxes		$93.1
($’s in millions)

ABOUT MERCANTIL COMMERCEBANK:
Mercantil Commercebank N.A. is one of the largest 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 85 years of experience. Mercantil Commercebank has assets of $6.0 billion. The Bank is headquartered in Coral Gables, Florida and has 17 Banking Centers - 15 located in South Florida; one in Manhattan, New York; and one in Houston, Texas. 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.