BANK EARNINGS

CAPE GIRARDEAU -- Mercantile Bancorporation Inc., parent company of Mercantile Bank of Cape Girardeau, has reported a strong earnings increase for 1990, with record levels of total assets, total loans outstanding and total deposits, confirming the strategy and management process initiated in 1989 to improve the company's performance.

Mercantile's net income for 1990 was $56,716,000, or $3.50 a share. In 1989, Mercantile earned $522,000, or three cents a share, after setting aside a special loan loss provision to substantially increase non-performing loan coverage ratios.

During the final quarter for 1990, Mercantile earned $16,158,000, compared with a year early of $10,696,000. On a per share basis, earnings were 99 cents versus 66 cents for the fourth quarter of 1989.

"In 1990, Mercantile took steps toward improved profitability," said Thomas H. Jacobsen, Mercantile's chairman and chief executive officer. "The company remained on plan despite the effects of uncertainties in the financial services industry and the local and national economy."

He continued, "Mercantile performed well compared with its recent history and in spite of economic slowdown by emphasizing profitability while remaining receptive to opportunities for growth. The plan for 1990 was ambitious but achievable, and we expect the same planning and management process to serve us well in 1991."

Total assets, total loans outstanding and total deposits were are record levels on Dec. 31, noted Jacobsen. Total assets were $7.62 billion, an increase of 9.7 percent over year-earlier assets of $6.94 billion; total loans outstanding increased 10.7 percent, from $4.86 billion to $5.39 billion; and total deposits in the company's banks increased 13.1 percent from $5.45 billion to $6.16 billion.

Mercantile Bancorporation, headquartered in St. Louis, owned 26 banks throughout Missouri and Western Illinois. Subsidiaries include a brokers services company, an asset-based lending company, an investment advisory services company and a credit life insurance company.