MEMO: MERCANTILE REPORTS IMPACT OF MERGER EXPENSES

Mercantile Bancorporation Inc. has reported first-quarter net income at $44,577,000 or 70 cents a share before the impact of merger expenses. Net income for the quarter was $4,565,000 or 7 cents a share, including merger expenses.

Non-recurring merger expenses resulted in a one-time charge of $40,012,000 or 63 cents a share and related to four acquisitions closed during the first quarter.

The co-branded credit card, launched in spring 1995 by Southwestern Bell Company and Mercantile, negatively impacted first-quarter earnings by 9 cents a share.

Excluding merger expenses, mercantile's return on assets for the first quarter was 1 percent, compared to 1.3 percent for first quarter 1995. Return on equity was 10.6 percent compared to 15.3 percent last year.

Mercantile Bancorporation, headquartered in St. Louis, is an $18 billion multi-bank holding company with banks in Missouri -- including Cape Girardeau -- Southern Illinois, eastern Kansas, northern Iowa and Arkansas.