Mercantile Bankshares Reports 11% Increase in Net Income

Apr 18, 2001, 01:00 ET from Mercantile Bankshares Corporation

    BALTIMORE, April 18 /PRNewswire/ -- Edward J. Kelly, III, President and
 Chief Executive Officer of Mercantile Bankshares Corporation (Nasdaq:   MRBK),
 today reported that, for the quarter ended March 31, 2001, net income was
 $46,358,000, an 11.5% increase over net income of $41,585,000 for the same
 period in 2000.  Diluted net income per share was $.65 for the quarter ended
 March 31, 2001, an increase of 8.3% from the $.60 reported for the first
 quarter last year.  Cash net income, which excludes amortization of goodwill,
 was $48,670,000 for the quarter ended March 31, 2001, an increase of 14.4%
 over $42,543,000 for the same period last year.  Diluted cash net income per
 share was $.68 for the first quarter 2001 as compared to $.62 for the same
 period last year, an increase of 9.7%.  The results for this year's first
 quarter include Union National Bank and The Bank of Fruitland which were
 merged with affiliates of Mercantile during the prior years' third and fourth
 quarters, respectively.
     Return on average assets for the quarter was 2.11%, return on average
 tangible equity was 18.34% and average tangible equity to average assets was
 12.21%.  These key performance measures reflect Mercantile's continuing
 profitability and financial strength, and were equal to or improved from the
 results for the same period last year.
     Net interest income for the quarter ended March 31, 2001 increased 8.6% to
 $104,970,000 from $96,643,000 the prior year.  The growth in net interest
 income is attributable to the continuing strong growth in average earning
 assets, particularly loans.  Average loans increased 16.8% to $6,753,493,000
 for the quarter ended March 31, 2001.  The previously mentioned bank
 acquisitions accounted for approximately 30% of this growth.  Funding for the
 increase in earning assets came from a 14.9% growth in average total deposits,
 with the recent acquisitions accounting for approximately 40% of this growth.
 Offsetting the positive growth was a decline in the net interest margin to
 5.09% from the 5.24% reported in the fourth quarter 2000 and from 5.22% in the
 first quarter 2000.  This decline was attributable to the 150 basis point
 reduction in the discount rate by the Federal Reserve during the first quarter
 2001.  The company is asset sensitive, with assets repricing more quickly with
 changes in interest rates than liabilities.  This means that the net interest
 margin generally expands when interest rates rise, as they did during the
 course of last year, and contracts when rates fall.
     During the quarter ended March 31, 2001, nonperforming assets increased
 $2,053,000 from December 31, 2000, to $33,423,000 or .49% of period-end loans
 and other real estate owned.  Nonperforming assets were .47% and .39%, at
 December 31, 2000 and March 31, 2000, respectively.  The allowance for loan
 losses was $140,797,000 at March 31, 2001, representing 2.07% of total loans.
 The allowance for loan losses to total loans was 2.07% and 2.05% at
 December 31, 2000 and March 31, 2000, respectively.
     Noninterest income increased 13.6% to $33,715,000 for the first quarter
 2001.  Included in this increase was a gain from the sale of some equity
 securities held in the available-for-sale portfolio.  Excluding the investment
 securities gain, the growth rate was 8.7% for the same period.  Trust Division
 revenues grew 1.4% to $17,131,000 for the quarter ended March 31, 2001.  Since
 trust revenues are primarily based on the market value of assets administered,
 the decline in the stock market values over the past year contributed to
 slower revenue growth.  Mortgage banking revenues more than doubled to
 $1,594,000.  Revenues benefited from increased volume in residential loan
 originations as a result of declining interest rates.  On March 1, 2001,
 additional commercial mortgage origination and servicing capacity was provided
 by an affiliation between Mercantile Mortgage Corporation and the former
 commercial financing subsidiary of Columbia National Incorporated.  This
 affiliation added a commercial real estate loan servicing portfolio of nearly
 $5 billion, of which $1 billion is servicing owned.
     Noninterest expenses for the quarter ended March 31, 2001 increased 7.0%
 to $62,664,000 from $58,570,000 for the first quarter of 2000.  The key
 measure of expense management is the efficiency ratio which improved to 45.1%
 this year from 46.0% in the prior year.  The increase in salaries and employee
 benefits is a result of increased staff from acquisitions and a general
 increase in costs for the health and welfare benefit plans.  The increase in
 net occupancy expense is also attributable to the acquisitions.  Other
 expenses decreased 7.4% as a result of reduced expense for the deferred
 compensation plan for directors.  The cost of this plan fluctuates with the
 market value of Mercantile's stock.  Amortization of goodwill, which increased
 by 141.3%, includes accelerated amortization of $250,000 as a result of the
 prepayment of investment securities acquired in the Union National Bank
 acquisition.  Noninterest expense, excluding goodwill, was $60,352,000 for the
 first quarter 2001, an increase of 4.8% from $57,612,000 for the prior year.
     At March 31, 2001, total assets increased 13.0% to $9,119,488,000 compared
 to $8,071,032,000 one year earlier.  The recent acquisitions accounted for
 approximately 40% of this growth.  Shareholders' equity at March 31, 2001, was
 $1,215,312,000, an increase of 23.3% from $985,409,000 one year earlier.  The
 Corporation, having purchased no shares this quarter, still has authorization
 to repurchase up to 2.5 million shares under prior authorizations.
 
 
                                               For the Three Months Ended
                                                       March 31,
                                                                       Incr.
                                                2001         2000     (Decr.)
     OPERATING RESULTS
     Net interest income                      $104,970     $96,643      8.6%
     Net interest income - taxable
      equivalent                               106,646      97,843      9.0
     Provision for loan losses                   2,951       3,015     (2.1)
     Net income                                 46,358      41,585     11.5
 
 
     PER COMMON SHARE DATA
     Basic net income                            $.65         $.61     6.6%
     Diluted net income                           .65          .60     8.3
     Diluted cash basis                           .68          .62     9.7
     Dividends paid                               .26          .24     8.3
     Book value at period end                   17.08        14.47    18.0
     Market value at period end                    37      30 9/16    21.1
     Market range:
         High                                  44 1/2      32 1/16     38.8
         Low                                   33 5/8       23 3/4     41.6
 
 
     AVERAGE  BALANCE SHEET DATA
     Total loans                            $6,753,493   $5,783,962   16.8%
     Total earning assets                    8,493,016    7,538,459   12.7
     Total assets                            8,920,292    7,916,534   12.7
     Total deposits                          6,801,646    5,918,374   14.9
     Shareholders' equity                    1,180,389      997,364   18.4
 
 
     STATISTICS AND RATIOS  (Net income
      annualized)
     Return on average assets                     2.11%        2.11%
     Return on average equity                    15.93        16.77
     Return on average tangible equity           18.34        17.99
     Average equity to average assets            13.23        12.60
     Average tangible equity to average
      assets                                     12.21        12.09
     Net interest rate spread-taxable
      equivalent                                  3.88         4.17
     Net interest margin on earning
      assets-taxable equivalent                   5.09         5.22
     Efficiency ratio                            45.14        45.95
 
     Bank Offices                                  189          183       6
     Employees                                   2,943        2,794     149
 
 
     CREDIT QUALITY DATA AT PERIOD END
     Net charge-offs / (recoveries)              $766         $(177)  532.8%
     Nonaccrual loans                          32,767        21,762    50.6
     Renegotiated loans                             -             -      -
     Total nonperforming loans                 32,767        21,762    50.6
     Other real estate owned, net                 656         1,460   (55.1)
     Total nonperforming assets                33,423        23,222    43.9
 
 
     CREDIT QUALITY RATIOS
     Provision for loan losses
      (annualized)
          as a percent of period-end loans        .18%          .21%
     Net charge-offs / (recoveries) -
      annualized
          as a percent of period-end loans        .05          (.01)
     Nonperforming loans as a
          percent of period-end loans             .48           .37
     Allowance for loan losses
          as a percent of period-end loans       2.07          2.05
     Allowance for loan losses
          as a percent of nonperforming
           loans                               429.69        556.88
     Other real estate owned as a percent
      of period-end loans and other real
      estate owned                                .01           .02
     Nonperforming assets as a percent of
          period-end loans and other real
           estate owned                           .49           .39
 
     In view of the changing conditions in the national economy, the effect of
 actions taken by regulatory authorities and normal seasonal factors, the
 results for the interim period are not necessarily indicative of annual
 performance.   For comparability, certain prior period amounts have been
 reclassified to conform with current period presentation.
 
 
                                            For the Three Months Ended
                                                     March 31,
                                                        Increase/(Decrease)
                                           2001      2000    Amount     %
     INTEREST INCOME
     Interest and fees on loans          $145,427  $124,172  $21,255   17.1%
     Interest and dividends
       on investment securities:
        Taxable interest income            22,902    23,842     (940)  (3.9)
        Tax-exempt interest income            488       147      341  232.0
        Dividends                             367       398      (31)  (7.8)
        Other investment income               850        33      817      -
                                           24,607    24,420      187    0.8
     Other interest income                    708       228      480  210.5
             Total interest income        170,742   148,820   21,922   14.7
 
     INTEREST EXPENSE
     Interest on deposits                  55,145    40,005   15,140   37.8
     Interest on short-term borrowings      9,107    10,768   (1,661) (15.4)
     Interest on long-term debt             1,520     1,404      116    8.3
 
             Total interest expense        65,772    52,177   13,595   26.1
 
     NET INTEREST INCOME                  104,970    96,643    8,327    8.6
     Provision for loan losses              2,951     3,015      (64)  (2.1)
 
     NET INTEREST INCOME AFTER
     PROVISION FOR LOAN LOSSES            102,019    93,628    8,391    9.0
 
     NONINTEREST INCOME
     Trust Division services               17,131    16,890      241    1.4
     Service charges on deposit accounts    6,420     5,759      661   11.5
     Mortgage banking related fees          1,594       729      865  118.7
     Investment securities gains and
      (losses)                              1,539        69    1,470      -
     Other income                           7,031     6,233      798   12.8
 
             Total noninterest income      33,715    29,680    4,035   13.6
 
     NONINTEREST EXPENSES
     Salaries                              29,580    27,945    1,635    5.9
     Employee benefits                      7,926     7,158      768   10.7
     Net occupancy expense of bank
      premises                              3,435     2,686      749   27.9
     Furniture and equipment expenses       6,004     5,768      236    4.1
     Communications and supplies            3,277     3,112      165    5.3
     Amortization of goodwill               2,312       958    1,354  141.3
     Other expenses                        10,130    10,943     (813)  (7.4)
 
             Total noninterest expenses    62,664    58,570    4,094    7.0
 
     Income before income taxes            73,070    64,738    8,332   12.9
     Applicable income taxes               26,712    23,153    3,559   15.4
 
     NET INCOME                           $46,358   $41,585   $4,773   11.5
 
     Weighted average shares outstanding   71,120    68,491    2,629    3.8
     Adjusted weighted average shares
      outstanding                          71,771    68,912    2,859    4.1
 
     NET INCOME PER COMMON SHARE:
       BASIC                                 $.65      $.61     $.04    6.6
       DILUTED                               $.65      $.60     $.05    8.3
 
 
                                                  March 31,
                                                          Increase/(Decrease)
                                     2001         2000        Amount      %
     ASSETS
 
     Cash and due from banks      $264,929      $254,048     $10,881    4.3%
     Interest-bearing deposits
      in other banks                   355           152         203  133.6
     Investment securities:
       Available-for-sale at
        fair value
         U.S. Treasury and
          government agencies    1,599,585     1,609,996     (10,411)  (0.6)
         States and political
          subdivisions               1,371         1,332          39    2.9
         Other investments          62,386        17,934      44,452  247.9
       Held-to-maturity
         States and political
          subdivisions - market
          value of
           $42,493 (2001) and
            $14,260 (2000)          40,916        14,321      26,595  185.7
         Other investments -
          market value of
           $13,446 (2001) and
            $9,688 (2000)           13,446         9,688       3,758   38.8
             Total investment
              securities         1,717,704     1,653,271      64,433    3.9
 
     Federal funds sold             52,518        72,646     (20,128) (27.7)
 
     Loans held-for-sale            60,021         4,525      55,496      -
 
     Loans                       6,788,018     5,902,512     885,506   15.0
     Less: allowance for loan
      losses                      (140,797)     (121,189)     19,608   16.2
             Loans, net          6,647,221     5,781,323     865,898   15.0
 
     Bank premises and
      equipment, net               103,284        95,691       7,593    7.9
     Other real estate owned,
      net                              656         1,460        (804) (55.1)
     Goodwill, net                 109,465        45,524      63,941  140.5
     Other intangible assets,
      net                            8,118         4,903       3,215   65.6
     Other assets                  155,217       157,489      (2,272)  (1.4)
             Total assets       $9,119,488    $8,071,032  $1,048,456   13.0
 
     LIABILITIES
 
     Deposits:
         Noninterest-bearing
          deposits              $1,577,009    $1,446,890    $130,119    9.0
         Interest-bearing
          deposits               5,422,389     4,663,724     758,665   16.3
             Total deposits      6,999,398     6,110,614     888,784   14.5
     Short-term borrowings         692,060       788,214     (96,154) (12.2)
     Accrued expenses and other
      liabilities                  120,171       104,113      16,058   15.4
     Long-term debt                 92,547        82,682       9,865   11.9
             Total liabilities   7,904,176     7,085,623     818,553   11.6
 
     SHAREHOLDERS' EQUITY
 
     Preferred stock, no par
      value; authorized
       2,000,000 shares; issued
        and outstanding--None
     Common stock, $2 par
      value;
       authorized 130,000,000
        shares                     142,328       136,236       6,092    4.5
     Capital surplus               217,053       134,258      82,795   61.7
     Retained earnings             828,602       721,488     107,114   14.8
     Accumulated other
      comprehensive income
      (loss)                        27,329        (6,573)     33,902  515.8
         Total
          shareholders' equity   1,215,312       985,409     229,903   23.3
          Total
           liabilities and
           shareholders' equity $9,119,488    $8,071,032  $1,048,456   13.0
 
 
     Actual shares outstanding      71,164        68,118       3,046    4.5
 
 
     Book value per common
      share                         $17.08        $14.47       $2.61   18.0
 
 
                                             For the Three Months Ended
                                                     March 31,
 
                                             2001                2000
     Earning assets                     Average  Yield*/    Average  Yield*/
      Loans:                            Balance    Rate     Balance    Rate
        Commercial                     $2,376,990  9.04%   $2,094,958  8.98%
        Real Estate                     3,550,430  8.66     2,992,315  8.55
        Consumer                          826,073  8.79       696,689  8.54
                     Total loans        6,753,493  8.81     5,783,962  8.71
 
      Federal funds sold                   48,359  5.90        16,497  5.51
 
      Securities :**
       Taxable securities
         U.S. Treasury securities       1,398,306  5.65     1,656,290  5.61
         U.S. Agency securities           191,005  7.29        46,678  6.36
         Other stocks and bonds            62,552  8.21        22,834  8.40
       Tax-exempt securities
         States and political
          subdivisions                     38,907  8.41        12,046  8.11
                     Total securities   1,690,770  5.99     1,737,848  5.68
 
      Interest-bearing deposits in
       other banks                            394  5.26           152  4.49
                     Total earning
                      assets            8,493,016  8.23     7,538,459  8.00
 
      Cash and due from banks             205,809             214,136
      Bank premises and equipment, net    103,033              95,506
      Other assets                        258,655             187,374
      Less: allowance for loan losses    (140,221)           (118,941)
                     Total assets      $8,920,292          $7,916,534
 
     Interest-bearing liabilities
      Deposits:
        Savings                          $840,453  1.90      $860,174  1.93
        Checking plus interest
         accounts                         744,267   .94       711,973  1.06
        Money market                      765,960  3.20       780,517  3.00
        Certificates of deposit
         $100,000 and over              1,099,294  6.23       767,959  5.48
        Other time deposits             1,854,208  5.80     1,440,931  4.95
                     Total interest-
                      bearing deposits  5,304,182  4.22     4,561,554  3.53
 
      Short-term borrowings               739,113  5.00       828,419  5.23
      Long-term debt                       92,547  6.66        82,682  6.83
                     Total interest-
                      bearing funds     6,135,842  4.35     5,472,655  3.83
 
      Noninterest-bearing deposits      1,497,464           1,356,820
      Other liabilities and accrued
       expenses                           106,597              89,695
                     Total liabilities  7,739,903           6,919,170
      Shareholders' equity              1,180,389             997,364
        Total liabilities &
         shareholders' equity          $8,920,292          $7,916,534
 
      Net interest rate spread                     3.88%               4.17%
      Effect of noninterest-bearing
       funds                                       1.21                1.05
      Net interest margin on earning
       assets                                      5.09%               5.22%
 
        *   Presented on a tax-equivalent basis using the statutory federal
        corporate income tax rate of 35%.
       **  Balances reported at amortized cost; excludes pretax unrealized
       gains (losses) on securities available-for-sale.
 
 
 
                                                 1Q 01       4Q 00       3Q 00
     PERIOD-END LOANS BY TYPE
     Const. & Land Develop. Loans             $833,530    $840,255    $797,997
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                 1,302,097   1,281,129   1,218,337
     Commercial & Agricultural  Real Estate
      Loans                                  1,617,377   1,573,992   1,526,849
     Home Equity Lines                         186,656     190,718     175,282
     Consumer Loans  (Excl. H/E Lines)         605,146     617,276     618,020
     Commercial, Industrial and
      Agricultural Loans                     2,243,212   2,196,519   2,105,871
                 TOTAL LOANS AT END OF
                  PERIOD                    $6,788,018  $6,699,889  $6,442,356
 
     NONPERFORMING LOANS BY TYPE
     Const. & Land Develop. Loans               $3,294      $3,394      $2,094
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                     2,541       3,123       3,337
     Commercial & Agricultural  Real Estate
      Loans                                      5,945       6,848       6,186
     Home Equity Lines                              73         106         143
     Consumer Loans  (Excl. H/E Lines)             549         143         114
     Commercial, Industrial and
      Agricultural Loans                        20,365      16,751      12,097
                 TOTAL NPL'S AT END OF
                  PERIOD                       $32,767     $30,365     $23,971
 
     LOANS PAST DUE 30-89 DAYS BY TYPE
     Const. & Land Develop. Loans               $1,028        $483      $1,613
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                    11,779      10,227       8,959
     Commercial & Agricultural  Real Estate
      Loans                                     15,554      10,915      11,106
     Home Equity Lines                           1,000       1,185         671
     Consumer Loans  (Excl. H/E Lines)           8,250       5,790       4,720
     Commercial, Industrial and
      Agricultural Loans                        31,993      36,931      38,683
                TOTAL LOANS PAST DUE 30-89
                 DAYS                          $69,604     $65,531     $65,752
 
     CHARGE-OFFS BY LOAN TYPE
     Const. & Land Develop. Loans                 $-          $-          $-
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                        18          60          27
     Commercial & Agricultural  Real Estate
      Loans                                        -           -             5
     Home Equity Lines                              32          46         -
     Consumer Loans  (Excl. H/E Lines)             658         940         739
     Commercial, Industrial and
      Agricultural Loans                           879       1,005       1,498
                 TOTAL CHARGE-OFFS              $1,587      $2,051      $2,269
 
     RECOVERIES BY LOAN TYPE
     Const. & Land Develop. Loans                 $-            $1          $1
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                        25          18           8
     Commercial & Agricultural  Real Estate
      Loans                                        113           8           5
     Home Equity Lines                              20           1          13
     Consumer Loans  (Excl. H/E Lines)             309         314         307
     Commercial, Industrial and
      Agricultural Loans                           354         418         660
                 TOTAL RECOVERIES                 $821        $760        $994
 
 
                                                 2Q 00       1Q 00       4Q 99
     PERIOD-END LOANS BY TYPE
     Const. & Land Develop. Loans             $747,253    $705,669    $666,095
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                 1,139,809   1,099,373   1,081,729
     Commercial & Agricultural  Real Estate
      Loans                                  1,428,254   1,385,839   1,330,261
     Home Equity Lines                         166,708     161,422     156,569
     Consumer Loans  (Excl. H/E Lines)         587,872     561,368     529,591
     Commercial, Industrial and
      Agricultural Loans                     2,050,215   1,993,366   1,954,697
                 TOTAL LOANS AT END OF
                  PERIOD                    $6,120,111  $5,907,037  $5,718,942
 
     NONPERFORMING LOANS BY TYPE
     Const. & Land Develop. Loans               $2,484      $2,849      $2,581
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                     2,729       3,967       3,373
     Commercial & Agricultural  Real Estate
      Loans                                      6,950       6,839       4,493
     Home Equity Lines                             122         156         150
     Consumer Loans  (Excl. H/E Lines)              82          51         108
     Commercial, Industrial and
      Agricultural Loans                        14,103       7,900       8,424
                 TOTAL NPL'S AT END OF
                  PERIOD                       $26,470     $21,762     $19,129
 
     LOANS PAST DUE 30-89 DAYS BY TYPE
     Const. & Land Develop. Loans               $6,675        $736        $217
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                     9,100      13,651      13,205
     Commercial & Agricultural  Real Estate
      Loans                                      5,474      12,374       8,651
     Home Equity Lines                             799       1,424         634
     Consumer Loans  (Excl. H/E Lines)           4,141       5,732       6,081
     Commercial, Industrial and
      Agricultural Loans                        40,807      65,112      42,342
                TOTAL LOANS PAST DUE 30-89
                 DAYS                          $66,996     $99,029     $71,130
 
     CHARGE-OFFS BY LOAN TYPE
     Const. & Land Develop. Loans                 $-           $11        $284
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                       108         127         303
     Commercial & Agricultural  Real Estate
      Loans                                        103         127         897
     Home Equity Lines                             -            13          19
     Consumer Loans  (Excl. H/E Lines)             500         760         594
     Commercial, Industrial and
      Agricultural Loans                            81          56       3,204
                 TOTAL CHARGE-OFFS                $792      $1,094      $5,301
 
     RECOVERIES BY LOAN TYPE
     Const. & Land Develop. Loans                   $1        $174          $2
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                        52          66         201
     Commercial & Agricultural  Real Estate
      Loans                                        160          28          15
     Home Equity Lines                              46         201           -
     Consumer Loans  (Excl. H/E Lines)             270         286         326
     Commercial, Industrial and
      Agricultural Loans                           168         516         172
                 TOTAL RECOVERIES                 $697      $1,271        $716
 
 
                            1Q 01    4Q 00    3Q 00    2Q 00    1Q 00    4Q 99
 
     TRUST ASSET DATA
     (End of Period)                     (Dollars in millions)
     Personal
     Assets with
      Investment
      Responsibility       $7,778   $8,354   $8,316   $8,269   $8,286   $8,302
     Assets with no
      Investment
      Responsibility        2,597    2,814    2,962    2,886    2,937    2,894
           Total
            Personal       10,375   11,168   11,278   11,155   11,223   11,196
 
     Institutional
     Assets with
      Investment
      Responsibility        6,320    5,983    6,101    5,593    5,907    5,608
     Assets with no
      Investment
      Responsibility       21,539   22,190   23,967   23,192   22,126   21,428
         Total
          Institutional    27,859   28,173   30,068   28,785   28,033   27,036
 
     Personal &
      Institutional
      Combined
     Assets with
      Investment
      Responsibility       14,098   14,337   14,417   13,862   14,193   13,910
     Assets with no
      Investment
      Responsibility       24,136   25,004   26,929   26,078   25,063   24,322
         Total
          Assets Under
          Administration  $38,234  $39,341  $41,346  $39,940  $39,256  $38,232
 
 
     OTHER INTANGIBLE ASSET
     INFORMATION                            (Dollars in thousands)
     EOP Deposit Intangibles,
      Net                       $7,623  $7,975  $6,966  $4,157  $4,360  $4,564
     EOP Mortgage Servicing
      Rights, Net                  447     450     490     514     543     591
         EOP Total Other
          Intangibles Net       $8,070  $8,425  $7,456  $4,671  $4,903  $5,155
 
     Amortization of Deposit
      Intangibles and
            Mortgage Servicing
             Rights               $410    $406    $373    $285    $285  $1,146
 
 
     PRINCIPAL BALANCE OF LOANS SERVICED FOR OTHERS
                                         (Dollars in thousands)
 
     EOP 1-4 Family
      Residential
      Mortgages
      (owned)         $377,265 $383,394  $389,532  $389,741 $398,590
 $409,599
     EOP Commercial
      Mortgages
      (owned)        1,290,745  142,227   137,854   136,111  133,399  131,440
     EOP Commercial
      Mortgages
      (not owned)    3,455,800  142,227   137,854   136,111  133,399  131,440
     EOP Total
      Principal
      Balance of Loans
      Serviced For
      Others        $5,123,810 $667,848  $665,240  $661,963 $665,388
 $672,479
 
 
                                          (Dollars in thousands)
     MORTGAGE BANKING
      RELATED FEES       $1,594      $800      $812     $765     $729    $937
 
 

SOURCE Mercantile Bankshares Corporation
    BALTIMORE, April 18 /PRNewswire/ -- Edward J. Kelly, III, President and
 Chief Executive Officer of Mercantile Bankshares Corporation (Nasdaq:   MRBK),
 today reported that, for the quarter ended March 31, 2001, net income was
 $46,358,000, an 11.5% increase over net income of $41,585,000 for the same
 period in 2000.  Diluted net income per share was $.65 for the quarter ended
 March 31, 2001, an increase of 8.3% from the $.60 reported for the first
 quarter last year.  Cash net income, which excludes amortization of goodwill,
 was $48,670,000 for the quarter ended March 31, 2001, an increase of 14.4%
 over $42,543,000 for the same period last year.  Diluted cash net income per
 share was $.68 for the first quarter 2001 as compared to $.62 for the same
 period last year, an increase of 9.7%.  The results for this year's first
 quarter include Union National Bank and The Bank of Fruitland which were
 merged with affiliates of Mercantile during the prior years' third and fourth
 quarters, respectively.
     Return on average assets for the quarter was 2.11%, return on average
 tangible equity was 18.34% and average tangible equity to average assets was
 12.21%.  These key performance measures reflect Mercantile's continuing
 profitability and financial strength, and were equal to or improved from the
 results for the same period last year.
     Net interest income for the quarter ended March 31, 2001 increased 8.6% to
 $104,970,000 from $96,643,000 the prior year.  The growth in net interest
 income is attributable to the continuing strong growth in average earning
 assets, particularly loans.  Average loans increased 16.8% to $6,753,493,000
 for the quarter ended March 31, 2001.  The previously mentioned bank
 acquisitions accounted for approximately 30% of this growth.  Funding for the
 increase in earning assets came from a 14.9% growth in average total deposits,
 with the recent acquisitions accounting for approximately 40% of this growth.
 Offsetting the positive growth was a decline in the net interest margin to
 5.09% from the 5.24% reported in the fourth quarter 2000 and from 5.22% in the
 first quarter 2000.  This decline was attributable to the 150 basis point
 reduction in the discount rate by the Federal Reserve during the first quarter
 2001.  The company is asset sensitive, with assets repricing more quickly with
 changes in interest rates than liabilities.  This means that the net interest
 margin generally expands when interest rates rise, as they did during the
 course of last year, and contracts when rates fall.
     During the quarter ended March 31, 2001, nonperforming assets increased
 $2,053,000 from December 31, 2000, to $33,423,000 or .49% of period-end loans
 and other real estate owned.  Nonperforming assets were .47% and .39%, at
 December 31, 2000 and March 31, 2000, respectively.  The allowance for loan
 losses was $140,797,000 at March 31, 2001, representing 2.07% of total loans.
 The allowance for loan losses to total loans was 2.07% and 2.05% at
 December 31, 2000 and March 31, 2000, respectively.
     Noninterest income increased 13.6% to $33,715,000 for the first quarter
 2001.  Included in this increase was a gain from the sale of some equity
 securities held in the available-for-sale portfolio.  Excluding the investment
 securities gain, the growth rate was 8.7% for the same period.  Trust Division
 revenues grew 1.4% to $17,131,000 for the quarter ended March 31, 2001.  Since
 trust revenues are primarily based on the market value of assets administered,
 the decline in the stock market values over the past year contributed to
 slower revenue growth.  Mortgage banking revenues more than doubled to
 $1,594,000.  Revenues benefited from increased volume in residential loan
 originations as a result of declining interest rates.  On March 1, 2001,
 additional commercial mortgage origination and servicing capacity was provided
 by an affiliation between Mercantile Mortgage Corporation and the former
 commercial financing subsidiary of Columbia National Incorporated.  This
 affiliation added a commercial real estate loan servicing portfolio of nearly
 $5 billion, of which $1 billion is servicing owned.
     Noninterest expenses for the quarter ended March 31, 2001 increased 7.0%
 to $62,664,000 from $58,570,000 for the first quarter of 2000.  The key
 measure of expense management is the efficiency ratio which improved to 45.1%
 this year from 46.0% in the prior year.  The increase in salaries and employee
 benefits is a result of increased staff from acquisitions and a general
 increase in costs for the health and welfare benefit plans.  The increase in
 net occupancy expense is also attributable to the acquisitions.  Other
 expenses decreased 7.4% as a result of reduced expense for the deferred
 compensation plan for directors.  The cost of this plan fluctuates with the
 market value of Mercantile's stock.  Amortization of goodwill, which increased
 by 141.3%, includes accelerated amortization of $250,000 as a result of the
 prepayment of investment securities acquired in the Union National Bank
 acquisition.  Noninterest expense, excluding goodwill, was $60,352,000 for the
 first quarter 2001, an increase of 4.8% from $57,612,000 for the prior year.
     At March 31, 2001, total assets increased 13.0% to $9,119,488,000 compared
 to $8,071,032,000 one year earlier.  The recent acquisitions accounted for
 approximately 40% of this growth.  Shareholders' equity at March 31, 2001, was
 $1,215,312,000, an increase of 23.3% from $985,409,000 one year earlier.  The
 Corporation, having purchased no shares this quarter, still has authorization
 to repurchase up to 2.5 million shares under prior authorizations.
 
 
                                               For the Three Months Ended
                                                       March 31,
                                                                       Incr.
                                                2001         2000     (Decr.)
     OPERATING RESULTS
     Net interest income                      $104,970     $96,643      8.6%
     Net interest income - taxable
      equivalent                               106,646      97,843      9.0
     Provision for loan losses                   2,951       3,015     (2.1)
     Net income                                 46,358      41,585     11.5
 
 
     PER COMMON SHARE DATA
     Basic net income                            $.65         $.61     6.6%
     Diluted net income                           .65          .60     8.3
     Diluted cash basis                           .68          .62     9.7
     Dividends paid                               .26          .24     8.3
     Book value at period end                   17.08        14.47    18.0
     Market value at period end                    37      30 9/16    21.1
     Market range:
         High                                  44 1/2      32 1/16     38.8
         Low                                   33 5/8       23 3/4     41.6
 
 
     AVERAGE  BALANCE SHEET DATA
     Total loans                            $6,753,493   $5,783,962   16.8%
     Total earning assets                    8,493,016    7,538,459   12.7
     Total assets                            8,920,292    7,916,534   12.7
     Total deposits                          6,801,646    5,918,374   14.9
     Shareholders' equity                    1,180,389      997,364   18.4
 
 
     STATISTICS AND RATIOS  (Net income
      annualized)
     Return on average assets                     2.11%        2.11%
     Return on average equity                    15.93        16.77
     Return on average tangible equity           18.34        17.99
     Average equity to average assets            13.23        12.60
     Average tangible equity to average
      assets                                     12.21        12.09
     Net interest rate spread-taxable
      equivalent                                  3.88         4.17
     Net interest margin on earning
      assets-taxable equivalent                   5.09         5.22
     Efficiency ratio                            45.14        45.95
 
     Bank Offices                                  189          183       6
     Employees                                   2,943        2,794     149
 
 
     CREDIT QUALITY DATA AT PERIOD END
     Net charge-offs / (recoveries)              $766         $(177)  532.8%
     Nonaccrual loans                          32,767        21,762    50.6
     Renegotiated loans                             -             -      -
     Total nonperforming loans                 32,767        21,762    50.6
     Other real estate owned, net                 656         1,460   (55.1)
     Total nonperforming assets                33,423        23,222    43.9
 
 
     CREDIT QUALITY RATIOS
     Provision for loan losses
      (annualized)
          as a percent of period-end loans        .18%          .21%
     Net charge-offs / (recoveries) -
      annualized
          as a percent of period-end loans        .05          (.01)
     Nonperforming loans as a
          percent of period-end loans             .48           .37
     Allowance for loan losses
          as a percent of period-end loans       2.07          2.05
     Allowance for loan losses
          as a percent of nonperforming
           loans                               429.69        556.88
     Other real estate owned as a percent
      of period-end loans and other real
      estate owned                                .01           .02
     Nonperforming assets as a percent of
          period-end loans and other real
           estate owned                           .49           .39
 
     In view of the changing conditions in the national economy, the effect of
 actions taken by regulatory authorities and normal seasonal factors, the
 results for the interim period are not necessarily indicative of annual
 performance.   For comparability, certain prior period amounts have been
 reclassified to conform with current period presentation.
 
 
                                            For the Three Months Ended
                                                     March 31,
                                                        Increase/(Decrease)
                                           2001      2000    Amount     %
     INTEREST INCOME
     Interest and fees on loans          $145,427  $124,172  $21,255   17.1%
     Interest and dividends
       on investment securities:
        Taxable interest income            22,902    23,842     (940)  (3.9)
        Tax-exempt interest income            488       147      341  232.0
        Dividends                             367       398      (31)  (7.8)
        Other investment income               850        33      817      -
                                           24,607    24,420      187    0.8
     Other interest income                    708       228      480  210.5
             Total interest income        170,742   148,820   21,922   14.7
 
     INTEREST EXPENSE
     Interest on deposits                  55,145    40,005   15,140   37.8
     Interest on short-term borrowings      9,107    10,768   (1,661) (15.4)
     Interest on long-term debt             1,520     1,404      116    8.3
 
             Total interest expense        65,772    52,177   13,595   26.1
 
     NET INTEREST INCOME                  104,970    96,643    8,327    8.6
     Provision for loan losses              2,951     3,015      (64)  (2.1)
 
     NET INTEREST INCOME AFTER
     PROVISION FOR LOAN LOSSES            102,019    93,628    8,391    9.0
 
     NONINTEREST INCOME
     Trust Division services               17,131    16,890      241    1.4
     Service charges on deposit accounts    6,420     5,759      661   11.5
     Mortgage banking related fees          1,594       729      865  118.7
     Investment securities gains and
      (losses)                              1,539        69    1,470      -
     Other income                           7,031     6,233      798   12.8
 
             Total noninterest income      33,715    29,680    4,035   13.6
 
     NONINTEREST EXPENSES
     Salaries                              29,580    27,945    1,635    5.9
     Employee benefits                      7,926     7,158      768   10.7
     Net occupancy expense of bank
      premises                              3,435     2,686      749   27.9
     Furniture and equipment expenses       6,004     5,768      236    4.1
     Communications and supplies            3,277     3,112      165    5.3
     Amortization of goodwill               2,312       958    1,354  141.3
     Other expenses                        10,130    10,943     (813)  (7.4)
 
             Total noninterest expenses    62,664    58,570    4,094    7.0
 
     Income before income taxes            73,070    64,738    8,332   12.9
     Applicable income taxes               26,712    23,153    3,559   15.4
 
     NET INCOME                           $46,358   $41,585   $4,773   11.5
 
     Weighted average shares outstanding   71,120    68,491    2,629    3.8
     Adjusted weighted average shares
      outstanding                          71,771    68,912    2,859    4.1
 
     NET INCOME PER COMMON SHARE:
       BASIC                                 $.65      $.61     $.04    6.6
       DILUTED                               $.65      $.60     $.05    8.3
 
 
                                                  March 31,
                                                          Increase/(Decrease)
                                     2001         2000        Amount      %
     ASSETS
 
     Cash and due from banks      $264,929      $254,048     $10,881    4.3%
     Interest-bearing deposits
      in other banks                   355           152         203  133.6
     Investment securities:
       Available-for-sale at
        fair value
         U.S. Treasury and
          government agencies    1,599,585     1,609,996     (10,411)  (0.6)
         States and political
          subdivisions               1,371         1,332          39    2.9
         Other investments          62,386        17,934      44,452  247.9
       Held-to-maturity
         States and political
          subdivisions - market
          value of
           $42,493 (2001) and
            $14,260 (2000)          40,916        14,321      26,595  185.7
         Other investments -
          market value of
           $13,446 (2001) and
            $9,688 (2000)           13,446         9,688       3,758   38.8
             Total investment
              securities         1,717,704     1,653,271      64,433    3.9
 
     Federal funds sold             52,518        72,646     (20,128) (27.7)
 
     Loans held-for-sale            60,021         4,525      55,496      -
 
     Loans                       6,788,018     5,902,512     885,506   15.0
     Less: allowance for loan
      losses                      (140,797)     (121,189)     19,608   16.2
             Loans, net          6,647,221     5,781,323     865,898   15.0
 
     Bank premises and
      equipment, net               103,284        95,691       7,593    7.9
     Other real estate owned,
      net                              656         1,460        (804) (55.1)
     Goodwill, net                 109,465        45,524      63,941  140.5
     Other intangible assets,
      net                            8,118         4,903       3,215   65.6
     Other assets                  155,217       157,489      (2,272)  (1.4)
             Total assets       $9,119,488    $8,071,032  $1,048,456   13.0
 
     LIABILITIES
 
     Deposits:
         Noninterest-bearing
          deposits              $1,577,009    $1,446,890    $130,119    9.0
         Interest-bearing
          deposits               5,422,389     4,663,724     758,665   16.3
             Total deposits      6,999,398     6,110,614     888,784   14.5
     Short-term borrowings         692,060       788,214     (96,154) (12.2)
     Accrued expenses and other
      liabilities                  120,171       104,113      16,058   15.4
     Long-term debt                 92,547        82,682       9,865   11.9
             Total liabilities   7,904,176     7,085,623     818,553   11.6
 
     SHAREHOLDERS' EQUITY
 
     Preferred stock, no par
      value; authorized
       2,000,000 shares; issued
        and outstanding--None
     Common stock, $2 par
      value;
       authorized 130,000,000
        shares                     142,328       136,236       6,092    4.5
     Capital surplus               217,053       134,258      82,795   61.7
     Retained earnings             828,602       721,488     107,114   14.8
     Accumulated other
      comprehensive income
      (loss)                        27,329        (6,573)     33,902  515.8
         Total
          shareholders' equity   1,215,312       985,409     229,903   23.3
          Total
           liabilities and
           shareholders' equity $9,119,488    $8,071,032  $1,048,456   13.0
 
 
     Actual shares outstanding      71,164        68,118       3,046    4.5
 
 
     Book value per common
      share                         $17.08        $14.47       $2.61   18.0
 
 
                                             For the Three Months Ended
                                                     March 31,
 
                                             2001                2000
     Earning assets                     Average  Yield*/    Average  Yield*/
      Loans:                            Balance    Rate     Balance    Rate
        Commercial                     $2,376,990  9.04%   $2,094,958  8.98%
        Real Estate                     3,550,430  8.66     2,992,315  8.55
        Consumer                          826,073  8.79       696,689  8.54
                     Total loans        6,753,493  8.81     5,783,962  8.71
 
      Federal funds sold                   48,359  5.90        16,497  5.51
 
      Securities :**
       Taxable securities
         U.S. Treasury securities       1,398,306  5.65     1,656,290  5.61
         U.S. Agency securities           191,005  7.29        46,678  6.36
         Other stocks and bonds            62,552  8.21        22,834  8.40
       Tax-exempt securities
         States and political
          subdivisions                     38,907  8.41        12,046  8.11
                     Total securities   1,690,770  5.99     1,737,848  5.68
 
      Interest-bearing deposits in
       other banks                            394  5.26           152  4.49
                     Total earning
                      assets            8,493,016  8.23     7,538,459  8.00
 
      Cash and due from banks             205,809             214,136
      Bank premises and equipment, net    103,033              95,506
      Other assets                        258,655             187,374
      Less: allowance for loan losses    (140,221)           (118,941)
                     Total assets      $8,920,292          $7,916,534
 
     Interest-bearing liabilities
      Deposits:
        Savings                          $840,453  1.90      $860,174  1.93
        Checking plus interest
         accounts                         744,267   .94       711,973  1.06
        Money market                      765,960  3.20       780,517  3.00
        Certificates of deposit
         $100,000 and over              1,099,294  6.23       767,959  5.48
        Other time deposits             1,854,208  5.80     1,440,931  4.95
                     Total interest-
                      bearing deposits  5,304,182  4.22     4,561,554  3.53
 
      Short-term borrowings               739,113  5.00       828,419  5.23
      Long-term debt                       92,547  6.66        82,682  6.83
                     Total interest-
                      bearing funds     6,135,842  4.35     5,472,655  3.83
 
      Noninterest-bearing deposits      1,497,464           1,356,820
      Other liabilities and accrued
       expenses                           106,597              89,695
                     Total liabilities  7,739,903           6,919,170
      Shareholders' equity              1,180,389             997,364
        Total liabilities &
         shareholders' equity          $8,920,292          $7,916,534
 
      Net interest rate spread                     3.88%               4.17%
      Effect of noninterest-bearing
       funds                                       1.21                1.05
      Net interest margin on earning
       assets                                      5.09%               5.22%
 
        *   Presented on a tax-equivalent basis using the statutory federal
        corporate income tax rate of 35%.
       **  Balances reported at amortized cost; excludes pretax unrealized
       gains (losses) on securities available-for-sale.
 
 
 
                                                 1Q 01       4Q 00       3Q 00
     PERIOD-END LOANS BY TYPE
     Const. & Land Develop. Loans             $833,530    $840,255    $797,997
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                 1,302,097   1,281,129   1,218,337
     Commercial & Agricultural  Real Estate
      Loans                                  1,617,377   1,573,992   1,526,849
     Home Equity Lines                         186,656     190,718     175,282
     Consumer Loans  (Excl. H/E Lines)         605,146     617,276     618,020
     Commercial, Industrial and
      Agricultural Loans                     2,243,212   2,196,519   2,105,871
                 TOTAL LOANS AT END OF
                  PERIOD                    $6,788,018  $6,699,889  $6,442,356
 
     NONPERFORMING LOANS BY TYPE
     Const. & Land Develop. Loans               $3,294      $3,394      $2,094
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                     2,541       3,123       3,337
     Commercial & Agricultural  Real Estate
      Loans                                      5,945       6,848       6,186
     Home Equity Lines                              73         106         143
     Consumer Loans  (Excl. H/E Lines)             549         143         114
     Commercial, Industrial and
      Agricultural Loans                        20,365      16,751      12,097
                 TOTAL NPL'S AT END OF
                  PERIOD                       $32,767     $30,365     $23,971
 
     LOANS PAST DUE 30-89 DAYS BY TYPE
     Const. & Land Develop. Loans               $1,028        $483      $1,613
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                    11,779      10,227       8,959
     Commercial & Agricultural  Real Estate
      Loans                                     15,554      10,915      11,106
     Home Equity Lines                           1,000       1,185         671
     Consumer Loans  (Excl. H/E Lines)           8,250       5,790       4,720
     Commercial, Industrial and
      Agricultural Loans                        31,993      36,931      38,683
                TOTAL LOANS PAST DUE 30-89
                 DAYS                          $69,604     $65,531     $65,752
 
     CHARGE-OFFS BY LOAN TYPE
     Const. & Land Develop. Loans                 $-          $-          $-
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                        18          60          27
     Commercial & Agricultural  Real Estate
      Loans                                        -           -             5
     Home Equity Lines                              32          46         -
     Consumer Loans  (Excl. H/E Lines)             658         940         739
     Commercial, Industrial and
      Agricultural Loans                           879       1,005       1,498
                 TOTAL CHARGE-OFFS              $1,587      $2,051      $2,269
 
     RECOVERIES BY LOAN TYPE
     Const. & Land Develop. Loans                 $-            $1          $1
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                        25          18           8
     Commercial & Agricultural  Real Estate
      Loans                                        113           8           5
     Home Equity Lines                              20           1          13
     Consumer Loans  (Excl. H/E Lines)             309         314         307
     Commercial, Industrial and
      Agricultural Loans                           354         418         660
                 TOTAL RECOVERIES                 $821        $760        $994
 
 
                                                 2Q 00       1Q 00       4Q 99
     PERIOD-END LOANS BY TYPE
     Const. & Land Develop. Loans             $747,253    $705,669    $666,095
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                 1,139,809   1,099,373   1,081,729
     Commercial & Agricultural  Real Estate
      Loans                                  1,428,254   1,385,839   1,330,261
     Home Equity Lines                         166,708     161,422     156,569
     Consumer Loans  (Excl. H/E Lines)         587,872     561,368     529,591
     Commercial, Industrial and
      Agricultural Loans                     2,050,215   1,993,366   1,954,697
                 TOTAL LOANS AT END OF
                  PERIOD                    $6,120,111  $5,907,037  $5,718,942
 
     NONPERFORMING LOANS BY TYPE
     Const. & Land Develop. Loans               $2,484      $2,849      $2,581
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                     2,729       3,967       3,373
     Commercial & Agricultural  Real Estate
      Loans                                      6,950       6,839       4,493
     Home Equity Lines                             122         156         150
     Consumer Loans  (Excl. H/E Lines)              82          51         108
     Commercial, Industrial and
      Agricultural Loans                        14,103       7,900       8,424
                 TOTAL NPL'S AT END OF
                  PERIOD                       $26,470     $21,762     $19,129
 
     LOANS PAST DUE 30-89 DAYS BY TYPE
     Const. & Land Develop. Loans               $6,675        $736        $217
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                     9,100      13,651      13,205
     Commercial & Agricultural  Real Estate
      Loans                                      5,474      12,374       8,651
     Home Equity Lines                             799       1,424         634
     Consumer Loans  (Excl. H/E Lines)           4,141       5,732       6,081
     Commercial, Industrial and
      Agricultural Loans                        40,807      65,112      42,342
                TOTAL LOANS PAST DUE 30-89
                 DAYS                          $66,996     $99,029     $71,130
 
     CHARGE-OFFS BY LOAN TYPE
     Const. & Land Develop. Loans                 $-           $11        $284
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                       108         127         303
     Commercial & Agricultural  Real Estate
      Loans                                        103         127         897
     Home Equity Lines                             -            13          19
     Consumer Loans  (Excl. H/E Lines)             500         760         594
     Commercial, Industrial and
      Agricultural Loans                            81          56       3,204
                 TOTAL CHARGE-OFFS                $792      $1,094      $5,301
 
     RECOVERIES BY LOAN TYPE
     Const. & Land Develop. Loans                   $1        $174          $2
     1-4 Family Res. Loans (Excl. H/E
      Lines)                                        52          66         201
     Commercial & Agricultural  Real Estate
      Loans                                        160          28          15
     Home Equity Lines                              46         201           -
     Consumer Loans  (Excl. H/E Lines)             270         286         326
     Commercial, Industrial and
      Agricultural Loans                           168         516         172
                 TOTAL RECOVERIES                 $697      $1,271        $716
 
 
                            1Q 01    4Q 00    3Q 00    2Q 00    1Q 00    4Q 99
 
     TRUST ASSET DATA
     (End of Period)                     (Dollars in millions)
     Personal
     Assets with
      Investment
      Responsibility       $7,778   $8,354   $8,316   $8,269   $8,286   $8,302
     Assets with no
      Investment
      Responsibility        2,597    2,814    2,962    2,886    2,937    2,894
           Total
            Personal       10,375   11,168   11,278   11,155   11,223   11,196
 
     Institutional
     Assets with
      Investment
      Responsibility        6,320    5,983    6,101    5,593    5,907    5,608
     Assets with no
      Investment
      Responsibility       21,539   22,190   23,967   23,192   22,126   21,428
         Total
          Institutional    27,859   28,173   30,068   28,785   28,033   27,036
 
     Personal &
      Institutional
      Combined
     Assets with
      Investment
      Responsibility       14,098   14,337   14,417   13,862   14,193   13,910
     Assets with no
      Investment
      Responsibility       24,136   25,004   26,929   26,078   25,063   24,322
         Total
          Assets Under
          Administration  $38,234  $39,341  $41,346  $39,940  $39,256  $38,232
 
 
     OTHER INTANGIBLE ASSET
     INFORMATION                            (Dollars in thousands)
     EOP Deposit Intangibles,
      Net                       $7,623  $7,975  $6,966  $4,157  $4,360  $4,564
     EOP Mortgage Servicing
      Rights, Net                  447     450     490     514     543     591
         EOP Total Other
          Intangibles Net       $8,070  $8,425  $7,456  $4,671  $4,903  $5,155
 
     Amortization of Deposit
      Intangibles and
            Mortgage Servicing
             Rights               $410    $406    $373    $285    $285  $1,146
 
 
     PRINCIPAL BALANCE OF LOANS SERVICED FOR OTHERS
                                         (Dollars in thousands)
 
     EOP 1-4 Family
      Residential
      Mortgages
      (owned)         $377,265 $383,394  $389,532  $389,741 $398,590
 $409,599
     EOP Commercial
      Mortgages
      (owned)        1,290,745  142,227   137,854   136,111  133,399  131,440
     EOP Commercial
      Mortgages
      (not owned)    3,455,800  142,227   137,854   136,111  133,399  131,440
     EOP Total
      Principal
      Balance of Loans
      Serviced For
      Others        $5,123,810 $667,848  $665,240  $661,963 $665,388
 $672,479
 
 
                                          (Dollars in thousands)
     MORTGAGE BANKING
      RELATED FEES       $1,594      $800      $812     $765     $729    $937
 
 SOURCE  Mercantile Bankshares Corporation