MERCANTILE <MTRC.O> RAISES RESERVE, SEES LOSS
Mercantile Bancorp Inc said it will add
a special provision of 75 mln dlrs to its reserve for possible
loan losses in the second quarter, and expects to report a loss
of 33 mln dlrs during the period.
    The company estimated it will report net income of two mln
dlrs during the full year 1987.
    Mercantile Bancorp said the additional provision represents
28.5 pct of Mercantile Bancorp's 263 mln dlrs in total
outstanding loans to Latin American countries. The special
provision will raise the reserve to 148 mln dlrs, or 3.1 pct of
the company's 4.7 billion dlrs total loans.
    Mercantile Bancorp earned 19.5 mln dlrs in last year's
second quarter, or 1.23 dlrs a share, and 55.6 mln dlrs, or
3.50 dlrs a share for the full year 1986.
    Mercantile Bancorp's reaffirmed its intention to continue
the present dividend and to follow its normal policy of basing
future dividends on anticipated earnings from ongoing business.
    "It now appears the adjustment process for heavily indebted
countries could stretch into the 1990's, and these
restructurings may have negative economic effects on the loan
portfolio," Mercantile Bancorp said.
 Reuter
