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NATIONAL MERCANTILE BANCORP REPORTS RESULTS

 NATIONAL MERCANTILE BANCORP REPORTS RESULTS
 LOS ANGELES, April 21 /PRNewswire/ -- National Mercantile Bancorp


(NASDAQ: MBLA), today reported a net loss for its first quarter ended March 31, 1992 of $66,000, or $.02 per share, compared to a net loss of $98,000, or $.03 per share, for its first quarter a year ago.
 Donald D. Thornburg, National Mercantile president and chief executive officer, said the loss resulted primarily from a decline in interest income at Mercantile National Bank, the sole subsidiary of the company. The interest income drop, he noted, was caused by a combination of factors, namely, a 32.5 percent reduction in net loans from the first quarter 1991, sharply narrower interest rate margins and the effect of nonaccrual loans.
 "During the first quarter of 1992 we received a number of loan repayments," Thornburg said. "The generally reduced level of economic activity, combined with more stringent loan underwriting criteria and a desire to improve liquidity, caused a delay in new loan originations to offset the repayments. As a result, we were able to end the quarter in an improved liquidity position as our loan-to-deposit ratio experienced a desired decline."
 Net loans at March 31, 1992 fell to $198.2 million, down from $293.6 million at March 31, 1991. Total assets for the company were $306.9 million, compared with $414.9 million a year ago. Total deposits at the end of the first quarter were $259.7 million vs. $363.9 million at the end of last year's first quarter.
 Additions to the loan loss reserve for the quarter were $400,000, compared to $1.6 million added during the 1991 comparable period. The allowance for loan losses at the end of the first quarter totaled $9.2 million, or 4.4 percent of gross loans at March 31, 1992, up from $7.4 million, or 2.4 percent of gross loans at March 31, 1991. During the quarter, the company realized net recoveries of $401,000 on previously charged off loans.
 Non-interest expense declined from $4.6 million in the year-earlier quarter to $3.9 million for the 1992 first quarter.
 Thornburg noted that the company's risk-adjusted capital of 11.7 percent of risk-weighted assets at March 31, 1992 compared favorably to the 10.7 percent level recorded at Dec. 31, 1991.
 National Mercantile Bancorp is the holding company for Mercantile National Bank, member FDIC, an independent commercial bank with offices in Century City and Irvine, Calif. The bank offers a wide range of financial services to middle market companies, the entertainment industry, the real estate community, professionals, high net worth individuals and the escrow and the title industries.
 NATIONAL MERCANTILE BANCORP
 Consolidated Results of Operations
 (in thousands except per share data)
 (unaudited)
 Three Months Ended
 March 31,
 1992 1991
 Interest income $5,827 $9,426
 Interest expense 2,245 3,749
 Net interest income 3,582 5,677
 Provision for credit losses 400 1,598
 Net interest income after
 provision for credit losses 3,182 4,079
 Gain on debt securities
 held for sale 258 ---
 Net gain on trading securities 23 ---
 Gain on sale of investment
 securities --- 2
 Other operating income 378 334
 Other operating expense 3,907 4,615
 Loss before income tax benefit (66) (200)
 Income tax benefit --- 102
 Net loss ($66) ($98)
 Net loss per share ($0.02) ($0.03)
 Fully diluted weighted
 average common and equivalent
 shares outstanding(a) 3,035,379 3,030,976
 (a) With a net loss, assumed conversion of potentially dilutive common stock options are excluded as the effect would be antidilutive.
 NATIONAL MERCANTILE BANCORP
 Consolidated Balance Sheets
 (in thousands)
 (unaudited)
 March 31,
 1992 1991
 Assets:
 Cash and due from banks - demand $22,373 $36,565
 Short-term invested cash 17,582 22,019
 Investment securities 21,693 50,280
 Debt securities held for sale 31,900 ---
 Trading securities 3,983 ---
 Loans 207,398 300,949
 Allowance for credit losses (9,182) (7,350)
 Net loans 198,216 293,599
 Total earning assets 273,374 365,898
 Other assets 11,168 12,413
 Total $306,915 $414,876
 Liabilities and Shareholders' Equity:
 Deposits:
 Noninterest-bearing $80,614 $142,352
 Interest-bearing 179,101 221,518
 Total 259,715 363,870
 Securities sold under
 agreements to repurchase 17,853 17,183
 Other liabilities 4,844 5,468
 Total 282,412 386,521
 Shareholders' Equity 24,503 28,355
 Total $306,915 $414,876
 Other Financial Data:
 Fully diluted book value per share $8.07 $9.32
 Risk-based capital ratio (a) 11.7 pct. 9.8 pct.
 Regulatory capital leverage ratio (b) 8.7 pct. 8.0 pct.
 (a) The company's total risk-based capital at March 31, 1992 was $10.7 million in excess of the minimum required under current regulatory capital guidelines, which require the company to maintain total capital (as defined) of not less than 7.25 percent of total risk-weighted assets ($240.0 million at March 31, 1992).
 (b) The regulatory capital leverage ratio represents the ratio of Tier 1 capital (comprised of primarily of total shareholders' equity) at March 31 to average total assets during the three-month period ended March 31.
 -0- 4/22/92
 /CONTACT: Donald D. Thornburg, president and CEO of National Mercantile Bancorp, 310-277-2265; or Cecilia A. Wilkinson of Pondel Parsons & Wilkinson, 310-207-9300, for National Mercantile Bancorp/
 (MBLA) CO: National Mercantile Bancorp ST: California IN: FIN SU: ERN


KJ -- LA038 -- 0952 04/21/92 18:02 EDT
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