MERCHANTS <MCHN.O> TO REPORT 2ND QTR LOSS Merchants National Corp, with 3.7 billion dlrs in assets, said it will report a loss of 13 mln dlrs for the second quarter due to its decision to increase its provision for losses by 30 mln dlrs, mainly due to uncertainties surrounding Latin American debt. In the second quarter last year, Merchants reported net income of 6.2 mln dlrs or 68 cts a share. As a result of the increased loan loss provision, the bank said the allowance for loan losses will increase from 1.4 pct to 2.5 pct of the bank's total loans. The bank said its expects to report estimated net of over 15 mln dlrs for 1987.