Commerce Bancorp Chooses First Mercantile As Third-Party Plan Provider.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--July 13, 2001

First Mercantile Trust Company today announced that Commerce Bancorp, Inc. of Cherry Hill, New Jersey (NYSE:CBH) has selected First Mercantile (Nasdaq:NCBC)as its sole third-party provider of defined contribution plans, effective July 1, 2001. The bank, one of the nation's fastest growing independent financial services retailers, with assets of $9.3 billion and a network of over 160 branch offices throughout New Jersey, eastern Pennsylvania and northern Delaware, had previously used a number of plan providers.

For CBH, First Mercantile will provide daily record keeping, administration, and investment services through a private-label platform engineered and administered by First Mercantile. Central to that platform will be a customized web site for CBH corporate customers who are defined contribution plan sponsors and their employees, through which plan sponsors and participants can access account balances, customized reports, investment education material, make changes to investment selections, and much more.

CBH, known as "America's Most Convenient Bank", combines an intense focus on branch banking with one of the nation's best Internet banking sites and an award-winning on-line banking service. Other self-service delivery options offered by Commerce include a 24-hour toll-free telephone banking system, Commerce Visa Check Card, and a network of conveniently located ATMs.

"First Mercantile's customer-friendly, innovative, web-based approach to providing retirement plans is a perfect match for our bank," said Vernon W. Hill, chairman and president of CBH. "We also appreciate their ability to provide the product on a private label basis for us, further enhancing the CBH brand, and reinforcing our customers ties to CBH. We are excited about our association with First Mercantile, and look forward to aggressively marketing the top-notch investment and administrative services they will provide the CBH system."

Scot Lenoir, president of First Mercantile, said, "We are delighted to be affiliated with CBH, one of the most respected and fastest growing retail banks in the country. Over the past five years, assets, loans and deposits at CBH have grown 22%, 27% and 21%, respectively. It's a pattern that parallels the growth at First Mercantile," explained Lenoir, "and it reinforces our mutual determination to provide customers with the most convenient, highest quality financial products and services available."

Founded in 1973, CBH also holds the nation's 20th largest insurance agency in its wholly-owned subsidiary, Commerce National Insurance Services, Inc., and its region's largest public finance underwriter in its wholly-owned subsidiary, Commerce Capital Markets, Inc.

Memphis-based First Mercantile has provided retirement plans and other financial services for nearly 30 years. First Mercantile currently serves more than 2,000 companies from coast to coast. First Mercantile Trust is a subsidiary of National Commerce Financial Corporation (Nasdaq:NCBC).