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SCHEDULE 13D
(RULE 13d-101)
Information to be Included in Statements Filed Pursuant to Rule 13d-1(a) and
Amendments Thereto Filed Pursuant to Rule 13d-2(a)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
National Mercantile Bancorp
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
636912107
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(CUSIP Number)
Richard G. Erstad
Faegre & Benson LLP
2200 Wells Fargo Center
90 South 7th Street
Minneapolis, Minnesota 55402
(612)336-3000
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
September 15, 2000
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box / /.
Note: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Rule
13d-7(b) for other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
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CUSIP NO. 636912107 13D PAGE 2 OF 5 PAGES
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
Conrad Company, a Montana corporation
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a) [ ]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
WC, BK
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Montana
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7 SOLE VOTING POWER
NUMBER OF
1,472,089
SHARES -----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY EACH -----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
1,472,089
PERSON -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,472,089
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
60.1
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14 TYPE OF REPORTING PERSON (See Instructions)
CO
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ITEM 1. SECURITY AND ISSUER
This statement relates to the Common Stock (the "Common Stock") of
National Mercantile Bancorp, a California corporation (the "Issuer"), 1840
Century Park East, Los Angeles, California 90067.
ITEM 2. IDENTITY AND BACKGROUND
This statement is filed by Conrad Company, a Montana corporation
("Conrad"). Conrad's business address and the location of its principal office
is 60 South Sixth Street, Suite, 3800, P.O. Box 1000, Minneapolis, Minnesota
55480-1000. Conrad's principal business is to operate as a bank holding company.
Conrad is controlled by Texas Financial Bancorporation, Inc., a
Minnesota corporation ("TFBI"). TFBI is controlled by Carl R. Pohlad, Trustee of
the Revocable Trust of Carl R. Pohlad Created U/A dated 6/28/91, as Amended, and
Eloise O. Pohlad, Trustee of the Revocable Trust of Eloise O. Pohlad Created U/A
6/28/91, as Amended, which own 25.64% and 27.95% of the outstanding stock of
TFBI, respectively.
Information with respect to each of Conrad's and TFBI's executive
officers, directors and controlling shareholders is set forth on Schedule I.
Each of the persons listed on Schedule I is a citizen of the United States.
During the last five years, neither Conrad nor TFBI, nor to the best of
its knowledge, any of their respective executive officers and directors listed
on Schedule I hereto, has been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors), or during the last five years has
it been a party to a civil proceeding as a result of which it was or is subject
to a judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, Federal or State securities laws
or finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On June 30, 1997, Conrad paid $4,539,570 to the Issuer for 453,957
shares of 6.5% Series A Noncumulative Perpetual Convertible Preferred Stock (the
"Preferred Stock"). The sources of these funds were cash on hand and a loan from
First Bank Minnesota, N.A.
On December 12, 1997, Conrad paid $177,147 for 13,122 shares of Common
Stock purchased from 9830 Investments No. 1 Ltd. The source of these funds was
cash on hand.
On February 13, 1998, Conrad received 13,122 shares of Common Stock
from the Issuer through a stock split.
On September 15, 2000, Conrad paid $3,899,999.75 for 537,931 shares of
Common Stock purchased from the Issuer. The source of these funds was cash on
hand.
ITEM 4. PURPOSE OF TRANSACTION
Conrad acquired the shares of Preferred Stock and Common Stock it
presently owns (the "Mercantile Stock") for investment. While Conrad has no
contract or agreement to purchase shares of Mercantile Stock from any person,
depending on various factors, including the Issuer's business affairs,
prospects, financial position, price levels of shares of Mercantile Stock,
conditions in the securities markets, general economic and industry conditions
as well as other opportunities available to it, and subject to applicable
restrictions in the Issuer's Articles of Incorporation, Conrad will take such
actions with respect to its investment in the Issuer, including the purchase of
additional shares through open market purchases or privately negotiated
transactions, tender offer or otherwise, as it deems appropriate in light of the
circumstances existing from time to time. Conrad may, and reserves the right to,
sell some or all of its holdings in the open market or in privately negotiated
transactions to one or more purchasers under appropriate circumstances.
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Except as set forth below, Conrad has no plans or proposals which would
relate to or would result in any of the actions required to be described in Item
4 of Schedule 13D.
Under the terms of the Private Purchase Agreement pursuant to which
Conrad purchased its shares of Preferred Stock, so long as Conrad is a holder of
shares of Preferred Stock, the Issuer is obligated to, at the request of Conrad
and subject to any applicable federal or state banking law or regulation, cause
to be nominated for election as directors of the Issuer, and use its reasonable
best efforts to cause to be elected, that number of persons designated by Conrad
which Conrad or any affiliate thereof is entitled to elect based on cumulative
voting in the election of directors.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a)- (b) Conrad owns 453,957 shares of Preferred Stock. Each share of
Preferred Stock is currently convertible into two shares of Common Stock. Conrad
also owns 564,175 shares of Common Stock. Accordingly, Conrad may be deemed to
own 1,472,089 shares of Common Stock, or 60.1% of the outstanding shares of
Common Stock. Conrad has sole voting and investment power as to these shares.
Donald E. Benson owns 57,200 shares of Common Stock and has received options to
purchase an aggregate of 2,350 shares of Common Stock. Conrad disclaims
beneficial ownership of the shares owned by Mr. Benson and the filing of this
Form 13D shall not be construed as an admission that it is a beneficial owner of
the shares owned by Mr. Benson for purposes of Sections 13, 14, and 16.
Except as set forth above, neither Conrad nor, to the best of its
knowledge, any of the individuals named in Item 2, is the beneficial owner of
any Common Stock.
(c) On September 15, 2000, Conrad purchased 537,931 shares of Common
Stock for $7.25 per share. The purchase was consummated in Los Angeles,
California pursuant to the terms of a Subscription Agreement dated September 15,
2000 between Conrad and the Issuer. Neither Conrad nor, to the best of Conrad's
knowledge, any of the individuals named in Item 2, has effected any other
transaction in the Common Stock during the past 60 days.
(d) No other person is known to have the right to receive or the power
to direct the receipt of dividends from, or the proceeds from the sale of, any
of the Common Stock.
(e) Inapplicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER.
Except as set forth below, there exist no contracts, arrangements,
understandings or relationships (legal or otherwise) among the persons named in
Item 2 of this Schedule 13D or between such persons and any other person with
respect to any securities of the Issuer, including, but not limited to, transfer
or voting of such securities, finder's fees, joint ventures, loan or option
agreements, puts or calls, guarantees of profits, division of profits or losses,
or the giving or withholding of proxies.
Pursuant to the terms of the Registration Rights Agreement between
Conrad and the Issuer, Conrad is entitled to two requests that the Issuer
register, and the Issuer is obligated to file registration statement under the
Securities Act of 1933, as amended, covering, shares of Common Stock owned by
Conrad at the time of the request (the "Registrable Securities"). Conrad also
has the right to request that the Issuer include the Registrable Securities in
any registration statement proposed to be filed by the Issuer for its own
account and/or upon the request or for the account of any securityholder,
subject to certain limitations with respect to the number of Registrable
Securities that may be included.
Under the terms of the Private Purchase Agreement, so long as Conrad is
a holder of shares of Preferred Stock, the Issuer is obligated to use its
reasonable best efforts to cause to be elected as directors of the Issuer that
number of persons designated by Conrad which Conrad or any affiliate thereof is
entitled to elect based on cumulative voting in the election of directors.
Donald E. Benson, as a director of the Issuer, has received options to
purchase an aggregate of 2,350 shares of Common Stock.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Private Purchase Agreement between the Issuer and Conrad dated as of
February 6, 1997 and as amended on April 30, 1997 (incorporated by reference to
Exhibit 10.22 to the Issuer's Registration Statement on Form S-2, File No.
333-21455).
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
October 16, 2000 /s/ Paige Winebarger
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Date Signature
Paige Winebarger, Senior Vice President and General Counsel
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Name/Title
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SCHEDULE I
DIRECTORS AND EXECUTIVE OFFICERS
OF CONRAD COMPANY AND
TEXAS FINANCIAL BANCORPORATION, INC.
The name, business address, present principal occupation or employment,
and the name, principal business and address of any corporation or other
organization in which such employment is conducted, of each of the directors,
executive officers and controlling shareholders of Conrad Company and Texas
Financial Bancorporation, Inc. is set forth below:
<TABLE>
<CAPTION>
CONRAD COMPANY
------------------------------- --------------------- ----------------------------------------- ------------------------------------
NAME POSITION WITH PRESENT PRINCIPAL OCCUPATION BUSINESS ADDRESS
CONRAD COMPANY AND ADDRESS
------------------------------- --------------------- ----------------------------------------- ------------------------------------
<S> <C> <C> <C>
Donald E. Benson Executive Vice Director and Executive Vice President Suite 3800
President Marquette Bancshares, Inc 60 South Sixth Street
60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Albert J. Colianni, Jr. Executive Vice Director, Executive Vice President and Suite 3800
President and Chief Chief Operating Officer 60 South Sixth Street
Operating Officer Marquette Bancshares, Inc Minneapolis, MN 55480
60 South Sixth Street, Suite 3800
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Thomas A. Herbst Director and Director and Executive Vice President Suite 3800
Executive Vice Marquette Bancshares, Inc 60 South Sixth Street
President 60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Jay L. Kim Vice President Vice President and Corporate Counsel Suite 3230
Marquette Bancshares, Inc 60 South Sixth Street
60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
William P. McKnight Senior Vice Senior Vice President 1650 West 82nd Street
President Marquette Bancshares, Inc. Bloomington, MN 55431
1650 West 82nd Street
Bloomington, MN 55431
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Janice Ozzello Wilcox Senior Vice Senior Vice President and Chief Suite 3800
President and Chief Financial Officer 60 South Sixth Street
Financial Officer Marquette Bancshares, Inc Minneapolis, MN 55480
60 South Sixth Street, Suite 3800
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
James O. Pohlad Director and Director and Executive Vice President Suite 3800
President Marquette Bancshares, Inc 60 South Sixth Street
60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Kathi Rogers Vice President Vice President Suite 3230
Marquette Bank, N.A. 60 South Sixth Street
60 South Sixth Street, Suite 3230 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
N. Thomas Wiedebush Senior Vice Executive Vice President and Regional Suite 200
President Manager 101 N. Main Avenue
Marquette Bank, N.A. Sioux Falls, SD 57117
101 N. Main Avenue, Suite 200
Sioux Falls, SD 57117
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Paige Winebarger Director, Senior Senior Vice President, General Counsel Suite 3800
Vice President and and Corporate Secretary 60 South Sixth Street
Corporate Secretary Marquette Bancshares, Inc Minneapolis, MN 55480
60 South Sixth Street, Suite 3800
Minneapolis, MN 55480
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Texas Financial Controlling None Suite 3800
Bancorporation, Inc. Shareholder 60 South Sixth Street
Minneapolis, MN 55480
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TEXAS FINANCIAL BANCORPORATION, INC.
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NAME POSITION WITH PRESENT PRINCIPAL OCCUPATION BUSINESS ADDRESS
CONRAD COMPANY AND ADDRESS
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David J. Bendel Vice President Vice President 1650 West 82nd Street
Marquette Bank, N.A. Bloomington, MN 55431
1650 West 82nd Street
Bloomington, MN 55431
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Donald E. Benson Director Director and Executive Vice President Suite 3800
60 South Sixth Street
</TABLE>
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<TABLE>
------------------------------- --------------------- ----------------------------------------- ------------------------------------
<S> <C> <C> <C>
Marquette Bancshares, Inc
60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Christopher E. Clouser Director Chief Executive Officer Suite 3800
Minnesota Twins 60 South Sixth Street
60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Albert J. Colianni, Jr. Director, Executive Director, Executive Vice President and Suite 3800
Vice President and Chief Operating Officer 60 South Sixth Street
Chief Operating Marquette Bancshares, Inc Minneapolis, MN 55480
Officer 60 South Sixth Street, Suite 3800
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
John H. Dasburg Director President and Chief Executive Officer 5101 Northwest Drive
Northwest Airlines, Inc. St. Paul, MN 55121
5101 Northwest Drive
St. Paul, MN 55121
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Deborah Feehan Vice President Vice President 1650 West 82nd Street
Marquette Bancshares, Inc. Bloomington, MN 55431
1650 West 82nd Street
Bloomington, MN 55431
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Stephen W. Gerlach Vice President Vice President Suite 200
Marquette Bank, N.A. 101 N. Main Avenue
101 N. Main Avenue, Suite 200 Sioux Falls, SD 57117
Sioux Falls, SD 57117
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Meghan H. Harris Vice President and Vice President and Senior Counsel Suite 3230
Senior Counsel Marquette Bancshares, Inc 60 South Sixth Street
60 South Sixth Street, Suite 3230 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Thomas A. Herbst Director and Director and Executive Vice President Suite 3800
Executive Vice Marquette Bancshares, Inc 60 South Sixth Street
President 60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Jay L. Kim Vice President and Vice President and Corporate Counsel Suite 3230
Corporate Counsel Marquette Bancshares, Inc 60 South Sixth Street
60 South Sixth Street, Suite 3230 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
William P. McKnight Senior Vice Senior Vice President 1650 West 82nd Street
President Marquette Bancshares, Inc. Bloomington, MN 55431
1650 West 82nd Street
Bloomington, MN 55431
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Janice Ozzello Wilcox Senior Vice Senior Vice President and Chief Suite 3800
President and Chief Financial Officer 60 South Sixth Street
Financial Officer Marquette Bancshares, Inc Minneapolis, MN 55480
60 South Sixth Street, Suite 3800
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Carl R. Pohlad Director Director and President Suite 3800
Marquette Bancshares, Inc 60 South Sixth Street
60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
James O. Pohlad Director and Director and Executive Vice President Suite 3800
President Marquette Bancshares, Inc 60 South Sixth Street
60 South Sixth Street, Suite 3800 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Kathi Rogers Vice President Vice President Suite 3230
Marquette Bank, N.A. 60 South Sixth Street
60 South Sixth Street, Suite 3230 Minneapolis, MN 55480
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Paige Winebarger Senior Vice Senior Vice President, General Counsel Suite 3800
President and and Corporate Secretary 60 South Sixth Street
Corporate Secretary Marquette Bancshares, Inc Minneapolis, MN 55480
60 South Sixth Street, Suite 3800
Minneapolis, MN 55480
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Carl R. Pohlad, Trustee of Controlling None Suite 3800
the Revocable Trust of Carl Shareholder 60 South Sixth Street
R. Pohlad Created U/A dated Minneapolis, MN 55480
6/28/91, as Amended
------------------------------- --------------------- ----------------------------------------- ------------------------------------
Eloise O. Pohlad, Trustee of Controlling None Suite 3800
the Revocable Trust of Eloise Shareholder 60 South Sixth Street
O. Pohlad Created U/A dated Minneapolis, MN 55480
6/28/91, as Amended
------------------------------- --------------------- ----------------------------------------- ------------------------------------
</TABLE>
