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NATIONAL MERCANTILE BANCORP REPORTS RESULTS

 NATIONAL MERCANTILE BANCORP REPORTS RESULTS
 LOS ANGELES, March 27 /PRNewswire/ -- National Mercantile Bancorp


(NASDAQ: MBLA) citing additions to loan loss reserves at its wholly owned subsidiary, Mercantile National Bank, today reported a net loss for the year ended Dec. 31, 1991 of $3,907,000, or $1.29 per share. For the 1991 fourth quarter, the bank holding company's loss totaled $2,980,000, or $.98 per share. In 1990, the company had a net loss of $1,816,000, or $0.62 per share, for the year and a fourth quarter loss of $2,651,000, or $0.87 per share.
 Donald D. Thornburg, who joined National Mercantile as president and chief executive officer on Dec. 1, 1991, said the losses stemmed principally from provisions for loan losses of $9,680,000 for the year, including $5,054,000 in the fourth quarter.
 "As with other banks in our region and service niche, 1991 was a year of significant change and challenge," Thornburg said. "Economic conditions required heightened scrutiny of our loan portfolio and more stringent criteria for establishing reserves. At the same time, we have enhanced our credit underwriting function by revising our loan policies and procedures and attracting a new chief credit officer with substantial experience in the Southern California market. As the economy improves, we are confident these moves will bolster our ability to participate in a healthier marketplace."
 Actual net charge-offs for the full year totaled $8,423,000, compared with $6,995,000 for 1990. Of the 1991 amount, $5,431,000 was charged off in the fourth quarter.
 The reserve for loan losses totaled $8.4 million, or 3.6 percent of gross loans, at Dec. 31, 1991, compared with 1990 loan loss reserves of $7.1 million, or 2.4 percent of gross loans.
 Net loans at year end were at $222.9 million, down from 1990's $292.6 million. Total assets for the company were $395.0 million at year end 1991 compared with $492.8 million a year earlier. Total deposits at year end 1991 decreased to $324.1 million from $405.3 million at Dec. 31, 1990.
 Shareholders' equity at year end 1991 was $24.6 million, down from 1990's year end level of $28.5 million. Consolidated risk-based capital was 10.7 percent of risk-weighted assets at Dec. 31, 1991.
 Thornburg said that the company's principal subsidiary, Mercantile National Bank, was in compliance with all applicable provisions of a regulatory agreement entered in July 1991. In particular, he noted that the bank's risk-based capital ratio at year end of 10.5 percent exceeded the agreement's 10.0 percent requirement.
 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 insurance industries.
 NATIONAL MERCANTILE BANCORP AND SUBSIDIARY
 Consolidated Results of Operations
 (Dollars in thousands, except per share data)
 Quarter ended Dec. 31, Year ended Dec. 31,
 1991 1990 1991 1990
 Interest income $6,839 $9,648 $33,533 $37,299
 Interest expense 3,034 3,689 13,707 12,785
 Net interest
 income 3,805 5,959 19,826 24,514
 Provision for
 credit losses 5,054 6,450 9,680 9,755
 Net interest income
 (loss) after
 provision for credit
 losses (1,249) (491) 10,146 14,759
 Gain on trading
 securities 32 --- 157 ---
 Gain on debt
 securities held
 for sale --- --- 588 ---
 Gain on sale of
 investment
 securities --- 260 26 260
 Gain on sale of
 other real
 estate owned 883 --- 883 ---
 Other operating
 income 453 354 1,513 1,470
 Other operating
 expense 4,531 4,274 19,121 19,390
 Loss before income
 tax benefit (4,412) (4,151) (5,808) (2,901)
 Income tax benefit 1,432 1,500 1,901 1,085
 Net loss ($2,980) ($2,651) ($3,907) ($1,816)
 Net loss per share ($0.98) ($0.87) ($1.29) ($0.62)
 Weighted average
 common shares
 outstanding (a) 3,035,379 3,030,976 3,037,700 2,931,891
 (a) With a net loss, assumed conversion of potentially dilutive common stock options are excluded as the effect would be antidilutive.
 NATIONAL MERCANTILE BANCORP AND SUBSIDIARY
 Consolidated Balance Sheet
 (Dollars in thousands)
 Dec. 31,
 1991 1990
 Assets:
 Cash and due from banks
 -- demand $40,775 $52,148
 Short-term invested cash 65,466 90,794
 Investment securities 21,941 38,997
 Debt securities held for sale 27,868 ---
 Trading securities 3,564 ---
 Loans 231,324 299,684
 Allowances for credit
 losses (8,381) (7,124)
 Net loans 222,943 292,560
 Total earning assets 341,782 422,351
 Other assets 12,414 18,315
 Total $394,971 $492,814
 Liabilities and Shareholders'
 Equity:
 Deposits:
 Non interest-bearing $130,683 $ 181,207
 Interest-bearing 193,454 224,078
 Total 324,137 405,285
 Securities sold under
 agreements to repurchase 40,582 39,003
 Other liabilities 5,683 20,073
 Total 370,402 464,361
 Shareholders' equity 24,569 28,453
 Total $394,971 $ 492,814
 Other Financial Data:
 Fully diluted book value
 per share $8.09 $9.46
 Risk-based capital ratio (a) 10.7 pct. 9.6 pct.
 Regulatory capital
 leverage ratio(b) 7.9 pct. 7.8 pct.
 (a) The company's risk-based capital at Dec. 31, 1991 was $9.3 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 ($267.5 million at Dec. 31, 1991).
 (b) The regulatory capital leverage ratio represents the ratio of Tier 1 capital (comprised primarily of total shareholders' equity) at Dec. 31 to average total assets during the three-month period ended Dec. 31.
 -0- 3/27/92
 /CONTACT: Donald D. Thornburg, president and CEO of National Mercantile Bancorp, 310-277-2265; or Cecilia A. Wilkinson of Rifkind Pondel & Parsons, 310-207-9300, for National Mercantile Bancorp/
 (MBLA) CO: National Mercantile Bancorp ST: California IN: FIN SU: ERN


DM -- LA026 -- 2579 03/27/92 18:30 EST
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