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Mercantile Bankshares Profit Inches Up

The bottom line falls short.

Bank company

Mercantile Bankshares

(MRBK) - Get Meridian Corporation Report

said its third-quarter earnings rose 0.9% from the year-ago period.

The company earned $71.57 million, or 57 cents a share, compared with $70.96 million, or 57 cents a share, in the year-ago period. Analysts polled by Thomson First Call were expecting earnings of 60 cents a share.

Third-quarter net interest margin fell 15 basis point to 4.26%.

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Net interest income rose 4.29% to $166.07 million.

Non-interest income fell 5.2% to $59.77 million in the quarter.

Average deposits at the end of the quarter were $12.59 billion, up 7.1% from the coresponding period last year.

"Given the difficult operating environment, the core banking business performed well this quarter. Expenses were also kept in check after accounting for the acquisition of James Monroe. The results for the quarter were driven by a significant decline in non-interest income and, in particular, non-marketable investments. The acquisition of James Monroe and the previously announced sale of our mortgage banking joint venture also had a mildly dilutive effect. We are excited about our pending merger with PNC," the Baltimore-based company said.

The shares of the company were trading down 22 cents at $44.35 Tuesday.

This story was created through a joint venture between TheStreet.com and IRIS.