Commerce Bancorp Earnings Per Share Up 32% Deposits Grow 48%.Business Editors Commerce Bancorp This article is about the bank headquartered in Cherry Hill, New Jersey. For other uses, see Commerce Bank. Commerce Bancorp (NYSE: CBH), doing business as Commerce Bank , Inc. (NYSE NYSE See: New York Stock Exchange Symbol: CBH CBH cutaneous basophil hypersensitivity. ) reported record earnings and increased deposits, assets and loans for the second quarter of 2002, it was announced today by Vernon Vernon, city, Canada Vernon, city (1991 pop. 23,514), S British Columbia, Canada, near the north end of Okanagan Lake. The center of a fruit-growing and dairying area, it has packing and dehydrating plants. W. Hill, II, Chairman of the multi-bank holding company. Chairman Hill indicated "America's Most Convenient Bank" continued its record growth, fueled by a deposit increase of 48%. Our combination of record deposit growth with a low cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. is unique in America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. ."
======================================================================
June 30, 2002
SECOND QUARTER FINANCIAL HIGHLIGHTS
-----------------------------------
%
Increase
--------
-- Total Assets: $ 13.7 Billion 47%
-- Total Deposits: $ 12.4 Billion 48
-- Total (Net) Loans: $ 5.2 Billion 28
-- Total Revenues: $200.4 Million 40
-- Net Income: $ 34.8 Million 39
-- Net Income Per Share: $ .49 32%
------- -------
======================================================================
Three Months Ended
June 30,
----------------------------------------
%
2002 2001 Increase
----------- ----------- -----------
(dollars in thousands, except per share
data)
Total Assets $ $ %
Total Loans (Net)
Core Deposits
Total Deposits
Total Revenues 200,355 142,784 40
Net Income 34,802 25,110 39
Net Income Per Share $ .49 $ .37 32%
----------- ----------- -----------
Six Months Ended
June 30,
----------------------------------------
%
2002 2001 Increase
----------- ----------- -----------
(dollars in thousands, except per
share data)
Total Assets $13,729,095 $9,345,438 47%
Total Loans (Net) 5,179,445 4,054,401 28
Core Deposits 11,353,030 7,637,753 49
-----
Total Deposits 12,387,389 8,366,140 48
Total Revenues 380,324 272,632 40
Net Income 66,552 48,511 37
Net Income Per Share $ .94 $ .72 31%
----------- ----------- -----------
Chairman's Statement Vernon W. Hill, II, Chairman, commenting on the Company's financial results said, "in these uncertain times, our simple, proven, focused model continues to produce exceptional results." Some of our second quarter highlights were:
-- Core deposits grew 49% as deposit growth for the quarter again exceeded $1.0 billion.
-- Comparable store deposit growth reached an all-time high of 30%.
-- Total revenues grew 40%.
-- Net income increased 39%.
-- Earnings per share rose 32%.
-- Our entry into Manhattan continued to meet with success:
-- Total deposits increased to $312 million, a quarterly increase of $120 million, with six branch locations.
-- Total accounts now exceed 29,000.
-- Deposit growth per branch was approximately five times our normal branch deposit growth.
-- Branch profitability has been achieved at our first four branches, two of which opened in late September 2001 and two of which opened in late December 2001.
-- On Saturday, June 22, 2002, we opened our first four branches in Long Island which met with huge customer acceptance and were marked by deposit growth and new account openings substantially ahead of our projections.
-- Shareholder returns, foremost in our objectives, continue to be excellent. Our one, five and ten year returns compared to the S & P Index were as follows:
Commerce S & P Index
-------- -----------
1 year 28% -18%
5 years 29 4
10 years 35 11
Deposits The Company's dramatic deposit growth continues with total deposits at June June: see month. 30, 2002 exceeding $12.3 billion, a $4.0 billion increase or 48% over total deposits of $8.4 billion a year ago.
6/30/02 6/30/01 % Increase
------- ------- ----------
(dollars in millions)
Deposits 12,387 $8,366 48%
--------
Core Deposits 11,353 7,638 49%
--------
Of the $4.0 billion increase in total deposits, $3.7 billion was in core deposits. The Company's unique retail banking model, which focuses on providing convenience and service, continues to produce approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1 billion in low cost core deposit growth for the third consecutive quarter. The breakdown breakdown /break·down/ (brak´doun) 1. the act or process of ceasing to function. 2. an often sudden collapse in health. 3. loss of self-control. of core deposit growth by category shown below has been expanded since the previous quarter to include all deposit types:
Same
Annual Store
6/30/02 % Total 6/30/01 % Total Growth Growth %
------- ------- ------- ------- ------ --------
(dollars in millions)
Consumer $6,117 54% $4,009 53% 53% 32%
Commercial 3,975 35% 2,697 35% 47% 30%
Government 1,261 11% 932 12% 35% 18%
Total $11,353 100% $7,638 100% 49% 30%
------- ------- ------- -------
Net Income and Earnings Per Share Net income totaled $34.8 million for the second quarter of 2002, up $9.7 million or 39% over net income of $25.1 million for the second quarter of 2001. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share basis, net income for the second quarter was $.49 compared to $.37 for the second quarter of 2001, a 32% increase.
Quarter Ended
6/30/02 6/30/01 % Increase
------- ------- ----------
(dollars in thousands, except per share data)
Net Income $34,802 $25,110 39%
-------
Earnings Per Share .49 .37 32
-------
For the first six months of 2002, net income totaled $66.6 million, up $18.1 million or 37% over net income of $48.5 million for the first six months of 2001. On a diluted per share basis, net income for the first six months of 2002 was $.94 compared to $.72 for the first six months of 2001, a 31% increase. The 39% growth in net income for the second quarter of 2002 was driven by increased net interest income of 45% and increased fee income of 30%. On a year-to-year basis, total revenues grew 40% compared to a 40% increase in expenses. On a linked quarter basis, total revenues grew 11% versus a 9% growth in expenses. On July July: see month. 2, 2002, the State legislature A state legislature may refer to a legislative branch or body of a political subdivision in a federal system. The following legislatures exist in the following political subdivisions: immaterial adj. .
Total Revenues
Quarter Ended
6/30/02 6/30/01 % Increase
------- ------- ----------
(dollars in thousands, except per share data)
Total Revenues $200,355 $142,784 40%
------
Revenue Per Share $11.29 $8.41 34
------
Emphasizing its role as a growth retailer, total revenues (net interest income plus non-interest income) were $200.4 million for the second quarter of 2002 compared to $142.8 million for the second quarter of 2001, up $57.6 million, or 40%. Total revenues for the first six months totaled $380.3 million compared to $272.6 million for the first six months of 2001, up $107.7 million, or 40%. Total revenue growth resulted from significant growth in net interest income and non-interest income as more fully discussed below. Net Interest Margin The net interest margin for the second quarter of 2002 was 4.75% compared to 4.85% for the previous quarter and 4.81% for the second quarter of 2001. The 10 basis point linked quarter decrease in the net interest margin for the second quarter was largely due to the temporary added interest costs and the associated debt issuance costs of two existing debt securities totaling $80,500,000 which were subsequently called during the quarter for mandatory Peremptory; obligatory; required; that which must be subscribed to or obeyed. Mandatory statutes are those that require, as opposed to permit, a particular course of action. redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. . These debt securities were retired from the proceeds of a newly issued $200 million convertible trust preferred securities offering which was completed on March 11, 2002. Without these non-recurring events, the net interest margin would have been 4.81% for the second quarter. Non-Interest Income Non-interest income for the second quarter of 2002 increased to $61.7 million from $47.4 million a year ago, a 30% increase. On a linked quarter basis, non-interest income increased 10%. Non-interest income for the first six months of 2002 increased to $117.6 million from $91.5 million in the first six months of 2001, a 29% increase. The growth in non-interest income for the second quarter and the first six months of 2002 was reflected in increased deposit charges and service fees and other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. which are more fully depicted de·pict tr.v. de·pict·ed, de·pict·ing, de·picts 1. To represent in a picture or sculpture. 2. To represent in words; describe. See Synonyms at represent. below:
Quarter Ended
-------------
6/30/02 6/30/01 % Increase
------- ------- ----------
(Dollars in thousands)
----------------------------------
Deposit Charges & Service Fees $31,629 $25,194 26%
Other Operating Income:
Insurance 14,241 12,216 17%
Capital Markets 8,082 5,256 54%
Loan Brokerage Fees 4,118 1,400 194%
Other 3,659 3,315 10%
----------------------------------
Total Other 30,100 22,187 36%
----------------------------------
Total Non-Interest Income 61,729 47,381 30%
Six Months Ended
----------------
6/30/02 6/30/01 % Increase
------- ------- ----------
(Dollars in thousands)
----------------------------------
Deposit Charges & Service Fees $60,592 $47,030 29%
Other Operating Income:
Insurance 27,629 24,759 12%
Capital Markets 14,528 10,431 39%
Loan Brokerage Fees 8,143 2,862 185%
Other 6,727 6,407 5%
----------------------------------
Total Other 57,027 44,459 28%
----------------------------------
Total Non-Interest Income 117,619 91,489 29%
Commerce National Insurance Services Total revenues for the Company's insurance division was $14.2 million for the second quarter of 2002 compared to $12.2 million for the second quarter of 2001, a 17% increase. Total revenues for the first six month of 2002 were $27.6 million versus $24.8 million for the same period a year ago, a 12% increase. Commerce Capital Markets Total revenues for the Company's capital markets division were $8.1 million for the second quarter of 2002 compared to $5.3 million for the second quarter of 2001, a 54% increase. Total revenues for the first six months of 2002 were $14.5 million versus $10.4 million for the same period a year ago, a 39% increase. Non- non- word element [L.]not . non- pref. Not: noninvasive. Interest Expenses Non-interest expenses for the second quarter of 2002 were $137.5 million, up 40% from $97.9 million a year ago. On a linked quarter basis, non-interest expenses increased 9%. Non-interest expenses for the first six months of 2002 were $263.5 million, up 40% from $188.3 million in the first six months of 2001. The increase in non-interest expenses for the second quarter and the first six months of 2002 were widespread throughout all non-interest expense categories and were consistent with the same reporting periods a year ago. They reflect the Company's rapid growth during the respective periods and also reflect substantial infrastructure investments made by the Company to support future growth. Linked Quarter Comparison A comparison of financial results for the quarter ended June 30, 2002 to the previous quarter ended March 31, 2002 is as follows: (Dollars in thousands, except per share data)
Three Months Ended
-------------------------- Linked Quarter
6/30/02 3/31/02 % Increase
------- ------ ----------
Total Assets $13,729,095 $12,484,633 10%
Total Loans (Net) 5,179,445 4,830,157 7%
Core Deposits 11,353,030 10,394,735 9%
Total Deposits 12,387,389 11,320,863 9%
Total Revenues $200,355 179,969 11%
Non-Interest Income 61,729 55,890 10%
Non-Interest Expense 137,540 125,921 9%
Net Income 34,802 31,750 10%
Net Income Per Share .49 .45 9%
Loans Loans increased 28% to $5.3 billion, and the growth was widespread throughout all loan categories.
6/30/02 % of Total 6/30/01 % of Total
------- ---------- ------- ----------
(dollars in millions)
Commercial $1,315,087 25% $1,014,746 25%
Consumer 1,786,298 34% 1,415,471 34%
Commercial Real Estate 1,277,979 24% 941,391 23%
Owner-Occupied 880,179 17% 740,341 18%
---------- ----- ---------- -----
Gross Loans $5,259,543 100% $4,111,949 100%
Less: Reserves (80,098) (57,548)
---------- ----------
Net Loans $5,179,445 $4,054,401
Asset Quality Asset quality remains extremely sound due to the Company's conservative underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards, strong customer relationships and aggressive collection efforts. The Company's asset quality results are highlighted below:
Quarter Ended
6/30/02 12/31/01 6/30/01 12/31/00
------- -------- ------- --------
Non-Performing Assets/Assets .13% .16% .22% .20%
Net Loan Charge-Offs .19% .17% .26% .19%
Loan Loss Reserve/ Gross Loans 1.52% 1.46% 1.40% 1.32%
Non-Performing Loan Coverage 530% 398% 301% 357%
Non-Performing Assets/Capital 2% 3% 4% 3%
and Reserves
Non-performing assets and loans past due 90 days at June 30, 2002 totaled $18.4 million or .13% of total assets, versus $22.1 million, or .24% of total assets a year ago. Non-performing assets and loans past due 90 days or more represented 2% of stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. and the allowance for loan losses at June 30, 2002. Despite the Company's superior asset quality, the uncertain economic environment prompted the Company to increase its reserve for loan losses as a percentage of loans to 1.52% from 1.47% on a linked quarter basis. Capital Resources Stockholders' equity at June 30, 2002 increased to $772.6 million, a $212.1 million increase, or 38% over stockholders' equity of $560.5 million at June 30, 2001. Return on average stockholders' equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) for the second quarter of 2002 was 18.99% compared to 18.16% for the second quarter of 2001. During the first quarter of 2002, the Company successfully completed a $200 million Convertible Trust Preferred Offering. A portion of the proceeds were used to complete early retirement on May 19, 2002, of a $23,000,000, 8 ?% Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Note due July 15, 2003 which was originally issued in July 1993. A portion of the proceeds were also used to retire retire v. 1) to stop working at one's occupation. 2) to pay off a promissory note, and thus "retire" the loan. 3) for a jury to go into the jury room to decide on a verdict after all evidence, argument and jury instructions have been completed. on July 1, 2002, a $57,500,000, 8 3/4% Trust Preferred issue of Commerce Capital Trust I which was originally issued in June 1997. The Company's capital ratios at June 30, 2002 were as follows:
Regulatory Guidelines
Commerce "Well Capitalized"
-------- ---------------------
Leverage Ratio 7.10% 5.00%
Tier I 12.81% 6.00%
Total Capital 14.24% 10.00%
Retail Activities "America's Most Convenient Bank" continued its unique retail focus by offering the best in community branch banking and on-line banking. The Company's continued deposit growth consists of growth in "same-store" (existing branches) sales and increased deposits from newly opened branches. -- "Same Store Sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of " ------------------ "Same-store core deposit growth" at June 30, 2002 was 30% compared to the same period a year ago. -- New Branch Offices ------------------ During the second quarter of 2002, the Company opened nine new branch offices, increasing the total offices opened to 196, as it continues to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution its plan to open 40 - 45 new branches each year. During the last three years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company has opened 92 of its 196 branches. Branches opened during the second quarter were as follows: Branch # Location County -------- -------- ------ 188 3rd & Broadway New York City, NY 189 43rd & 3rd New York City, NY 190 Willingboro Burlington, NJ 191 Lionville Chester, PA 192 Garden City Nassau, NY 193 Massapequa Nassau, NY 194 Patchogue Suffolk, NY 195 Farmingville Suffolk, NY 196 Neptune Monmouth, NJ The Company plans to open a total of roughly 41 branch offices during 2002, of which approximately 31 offices will be in Metropolitan New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and approximately 10 offices will be in Metropolitan Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. . The second quarter was marked by the opening of four branches on Long Island on June 22, 2002, as we continue to enter one new market each year. Also, two additional offices were opened in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . During the balance of 2002, the Company will open an additional four units in New York City and an additional two units in Long Island. The Company's long range build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. plans call for approximately 100 offices throughout New York City and 50-60 offices on Long Island. -- Commerce Online --------------- Commerce continued its leading role in on-line banking by increasing on-line households' usage to 204,279, a 32.7% penetration The successful unauthorized breach of a security perimeter. See penetration test. rate, which is the highest in America. Future Guidance The Company has set the following growth targets:
Actual %
Growth Last 5-Year Second Quarter
Targets Growth % 2002
------- -------- ----
Total Deposits 20 - 20% 31% 48%
Comp Store Deposits 15 18% 30%
Total Revenue 25 33% 40%
Net Income 20 - 25 27% 39%
Earnings Per Share 15 - 20 22% 32%
Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. The Company may from time to time make written or oral "forward-looking statements", including statements contained in the Company's filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the Company, which are made in good faith by the Company pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations Anticipations is the magazine of the Young Fabians, the under-31 section of the Fabian Society. The magazine was founded in 1996, however the group only produced one edition. , estimates and intentions, that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Company's control). The words "may", "could", "should", "would", "believe", "anticipate", "estimate", "expect", "intend", "plan", and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: the strength of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. economy in general and the strength of the local economies in which the company conducts operations; the effects of, and changes in, trade, monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. (the "FRB See Federal Reserve Board. "); inflation; interest rates, market and monetary fluctuations; the timely development of competitive new products and services by the Company and the acceptance of such products and services by customers; the willingness of customers to substitute competitors' products and services for the Company's products and services and vice versa VICE VERSA. On the contrary; on opposite sides. ; the impact of changes in financial services' laws and regulations (including laws concerning taxes, banking, securities and insurance); technological changes; future acquisitions; the expense savings and revenue enhancements revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. from acquisitions being less than expected; the growth and profitability of the Company's non-interest or fee income being less than expected; unanticipated regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. or judicial proceedings judicial proceedings n. any action by a judge re: trials, hearings, petitions, or other matters formally before the court. (See: judicial) ; changes in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. and saving habits; and the success of the Company at managing the risks involved in the foregoing. The Company cautions that the foregoing list of important factors is not exclusive. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
Commerce Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
Three Months Ended
June 30,
----------------------------
%
2002 2001 Change
-------- -------- ------
(dollars and shares
in thousands)
Income Statement Data:
Net interest income $138,626 $95,403 45%
Provision for loan losses 10,250 7,982 28
Noninterest income 61,729 47,381 30
Total revenues 200,355 142,784 + 40
------- ----
Noninterest expense 137,540 97,940 40
Net income 34,802 25,110 + 39
------- ----
Per Share Data:
Net income - Basic $0.52 $0.39 33%
Net income - Diluted 0.49 0.37 + 32
------- ----
Book value - Basic
Book value - Diluted
Revenue per share - Diluted $11.29 $8.41 + 34%
------- ----
Weighted Average Shares Outstanding:
Basic 66,552 64,452
Diluted 71,007 67,873
Balance Sheet Data:
Total assets
Loans (net)
Allowance for loan losses
Securities available for sale
Securities held to maturity
Total deposits
Core deposits
Long-term debt
Trust Capital Securities
- Commerce Capital Trust I
Convertible Trust Capital Securities
- Commerce Capital Trust II
Stockholders' equity
Capital:
Stockholders' equity to total assets
Risk-based capital ratios:
Tier I
Total capital
Leverage ratio
Performance Ratios:
Cost of funds 1.66% 2.53%
Net interest margin 4.75 4.81
Return on average assets 1.06 1.11
Return on average total
stockholders' equity 18.99 18.16
Six Months Ended
June 30,
----------------------------
%
2002 2001 Change
-------- -------- ------
(dollars and shares
in thousands)
Income Statement Data:
Net interest income $262,705 $181,143 45%
Provision for loan losses 17,150 12,591 36
Noninterest income 117,619 91,489 29
Total revenues 380,324 272,632 + 40
------- ----
Noninterest expense 263,461 188,294 40
Net income 66,552 48,511 + 37
------- ----
Per Share Data:
Net income - Basic $1.00 $0.76 32%
Net income - Diluted 0.94 0.72 + 31
------- ----
Book value - Basic $11.57 $8.66 34%
Book value - Diluted 10.88 8.25 + 32
------- ----
Revenue per share - Diluted $10.79 $8.09 + 33%
------- ----
Weighted Average Shares Outstanding:
Basic 66,275 64,135
Diluted 70,510 67,371
Balance Sheet Data:
Total assets $13,729,095 $9,345,438 + 47%
Loans (net) 5,179,445 4,054,401 28
Allowance for loan losses 80,098 57,548 39
Securities available for sale 5,946,271 2,679,546 122
Securities held to maturity 920,893 1,310,277 (30)
Total deposits 12,387,389 8,366,140 48
---------- ---------
Core deposits 11,353,030 7,637,753 49
---------- ---------
Long-term debt 0 23,000 (100)
Trust Capital Securities
- Commerce Capital Trust I 57,500 57,500 -
Convertible Trust Capital Securities
- Commerce Capital Trust II 200,000 0 -
Stockholders' equity 772,588 560,504 + 38
----
Capital:
Stockholders' equity to total assets 5.63% 6.00%
-----
Risk-based capital ratios:
Tier I 12.81 10.77
Total capital 14.24 11.95
Leverage ratio 7.10 6.78
Performance Ratios:
Cost of funds 1.67% 2.76%
Net interest margin 4.79 4.73
Return on average assets 1.07 1.11
Return on average total
stockholders' equity 18.99 18.04
The following summary presents information regarding
non-performing loans and assets as of June 30, 2002 and the preceding
four quarters (dollar amounts in thousands).
June 30, March 31, Dec. 31, Sept. 30, June 30,
2002 2002 2001 2001 2001
-------- --------- -------- --------- --------
Non-accrual loans:
Commercial $7,581 $9,473 $6,835 $9,196 $10,608
Consumer 1,557 1,537 1,484 1,382 1,338
Real estate:
Construction 181 181 1,590 1,590 1,590
Mortgage 5,778 5,695 6,924 6,944 5,598
-------- --------- -------- --------- --------
Total non-accrual
loans 15,097 16,886 16,833 19,112 19,134
-------- --------- -------- --------- --------
Restructured loans:
Commercial 6 7 8 9 10
Consumer
Real estate:
Construction
Mortgage
-------- --------- -------- --------- --------
Total
restructured
loans 6 7 8 9 10
-------- --------- -------- --------- --------
Total
non-performing
loans 15,103 16,893 16,841 19,121 19,144
-------- --------- -------- --------- --------
Other real estate 2,471 2,602 1,549 1,671 1,552
-------- --------- -------- --------- --------
Total non-performing
assets 17,574 19,495 18,390 20,792 20,696
-------- --------- -------- --------- --------
Loans past due 90
days or more
and still accruing 834 484 519 964 1,416
-------- --------- -------- --------- --------
Total non-performing
assets and loans
past due 90 days
or more $18,408 $19,979 $18,909 $21,756 $22,112
======== ========= ======== ========= ========
Total non-performing
loans as a
percentage of
total period-end
loans 0.29% 0.34% 0.37% 0.44% 0.47%
Total non-performing
assets as a
percentage of
total period-end
assets 0.13% 0.16% 0.16% 0.20% 0.22%
-----
Total non-performing
assets and loans
past due 90 days or
more as a percentage
of total period-end
assets 0.13% 0.16% 0.17% 0.21% 0.24%
Allowance for loan
losses as a
percentage of total
non-performing
loans 530% 428% 398% 321% 301%
Allowance for loan
losses as a
percentage of
total period-end
loans 1.52% 1.47% 1.46% 1.42% 1.40%
Total non-performing
assets and loans past
due 90 days or more
as a percentage of
stockholders' equity
and allowance for
loan losses 2% 3% 3% 3% 4%
The following table presents, for the periods indicated, an analysis
of the allowance for loan losses and other related data: (dollar
amounts in thousands)
Year
Three Months Ended Six Months Ended Ended
------------------ -------------------
6/30/02 6/30/01 6/30/02 6/30/01 12/31/01
------- -------- -------- ------- --------
Balance at
beginning
of period $72,253 $52,157 $66,981 $48,680 $48,680
Provisions
charged to
operating
expenses 10,250 7,982 17,150 12,591 26,384
------- -------- -------- ------- --------
82,503 60,139 84,131 61,271 75,064
Recoveries
on loans
charged-off:
Commercial 215 150 405 159 552
Consumer 105 95 220 136 288
Commercial
real
estate -- 2 1 14 134
------- -------- -------- ------- --------
Total
recoveries 320 247 626 309 974
Loans
charged-off:
Commercial (1,874) (1,976) (3,061) (2,334) (5,862)
Consumer (841) (636) (1,565) (1,295) (2,784)
Commercial
real
estate (10) (226) (33) (403) (411)
------- -------- -------- ------- --------
Total
charge-offs (2,725) (2,838) (4,659) (4,032) (9,057)
------- -------- -------- ------- --------
Net
charge-offs (2,405) (2,591) (4,033) (3,723) (8,083)
------- -------- -------- ------- --------
Balance
at end
of period $80,098 $57,548 $80,098 $57,548 $66,981
======= ======== ======== ======= ========
Net
charge-offs
as a
percentage
of average
loans
outstanding 0.19% 0.26% 0.16% 0.19% 0.19%
Net Reserve
Additions $7,845 $5,391 $13,117 $8,868 $18,301
------- -------- -------- ------- --------
Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net
Interest Income
(unaudited)
---------------------------------
June 2002
---------------------------------
Average Average
Balance Interest Rate
--------------------------------
(dollars in thousands)
Earning Assets
-------------------------------------
Investment securities
Taxable $6,484,728 $97,970 6.06%
Tax-exempt 128,237 2,043 6.39
Trading 225,231 3,069 5.47
----------- ----------- ------
Total investment securities 6,838,196 103,082 6.05
Federal funds sold 27,592 116 1.69
Loans
Commercial mortgages 1,928,153 33,683 7.01
Commercial 1,194,310 17,952 6.03
Consumer 1,787,395 32,026 7.19
Tax-exempt 241,226 5,072 8.43
----------- ----------- ------
Total loans 5,151,084 88,733 6.91
----------- ----------- ------
Total earning assets $12,016,872 $191,932 6.41%
===========
Sources of Funds
-------------------------------------
Interest-bearing liabilities
Regular savings $2,304,839 $8,133 1.42%
N.O.W. accounts 331,878 1,152 1.39
Money market plus 3,858,362 13,555 1.41
Time deposits 1,840,499 15,992 3.49
Public funds 984,503 5,546 2.26
----------- ----------- ------
Total deposits 9,320,081 44,378 1.91
Other borrowed money 70,078 282 1.61
Long-term debt 269,885 5,082 7.55
----------- ----------- ------
Total deposits and interest-bearing
liabilities 9,660,044 49,742 2.07
Noninterest-bearing funds (net) 2,356,828
----------- ----------- ------
Total sources to fund earning assets $12,016,872 49,742 1.66
=========== ----------- ------
Net interest income and
margin tax-equivalent basis $142,190 4.75%
=========== ======
Other Balances
-------------------------------------
Cash and due from banks $547,088
Other assets 677,551
Total assets 13,166,040
Total deposits 11,885,164
-----------
Demand deposits (noninterest-bearing) 2,565,083
Other liabilities 207,939
Stockholders' equity 732,974
Allowance for loan losses 75,471
---------------------------------
March 2002
---------------------------------
Average Average
Balance Interest Rate
-------------------------------
(dollars in thousands)
Earning Assets
-------------------------------------
Investment securities
Taxable $5,511,447 $83,211 6.12%
Tax-exempt 110,293 1,665 6.12
Trading 189,651 2,960 6.33
----------- --------- ------
Total investment securities 5,811,391 87,836 6.13
Federal funds sold 40,672 164 1.64
Loans
Commercial mortgages 1,828,586 31,304 6.94
Commercial 1,087,048 16,338 6.10
Consumer 1,656,000 30,936 7.58
Tax-exempt 233,669 4,992 8.66
----------- --------- ------
Total loans 4,805,303 83,570 7.05
----------- --------- ------
Total earning assets $10,657,366 $171,570 6.53%
===========
Sources of Funds
-------------------------------------
Interest-bearing liabilities
Regular savings $2,044,873 $7,078 1.40 %
N.O.W. accounts 300,742 1,053 1.42
Money market plus 3,459,619 11,855 1.39
Time deposits 1,673,580 16,004 3.88
Public funds 874,379 5,277 2.45
----------- --------- ------
Total deposits 8,353,193 41,267 2.00
Other borrowed money 102,611 426 1.68
Long-term debt 127,167 2,432 7.76
----------- --------- ------
Total deposits and interest-bearing
liabilities 8,582,971 44,125 2.08
Noninterest-bearing funds (net) 2,074,395
----------- --------- ------
Total sources to fund earning assets $10,657,366 44,125 1.68
=========== --------- ------
Net interest income and
margin tax-equivalent basis $127,445 4.85%
========= ======
Other Balances
-------------------------------------
Cash and due from banks $510,269
Other assets 592,129
Total assets 11,690,615
Total deposits 10,684,272
-----------
Demand deposits (noninterest-bearing) 2,331,079
Other liabilities 108,125
Stockholders' equity 668,440
Allowance for loan losses 69,149
-----------------------------
June 2001
-----------------------------
Average Average
Balance Interest Rate
-----------------------------
(dollars in thousands)
Earning Assets
-------------------------------------
Investment securities
Taxable $3,802,458 $62,079 6.55%
Tax-exempt 80,070 1,335 6.69
Trading 185,558 2,608 5.64
---------- --------- ------
Total investment securities 4,068,086 66,022 6.51
Federal funds sold 75,659 850 4.51
Loans
Commercial mortgages 1,532,835 30,982 8.11
Commercial 934,145 19,071 8.19
Consumer 1,387,114 28,937 8.37
Tax-exempt 185,415 4,038 8.74
---------- --------- ------
Total loans 4,039,509 83,028 8.24
---------- --------- ------
Total earning assets $8,183,254 $149,901 7.34%
==========
Sources of Funds
-------------------------------------
Interest-bearing liabilities
Regular savings $1,576,198 $8,345 2.12%
N.O.W. accounts 240,848 1,454 2.42
Money market plus 2,537,801 14,494 2.29
Time deposits 1,162,981 15,093 5.21
Public funds 781,823 10,010 5.14
---------- --------- ------
Total deposits 6,299,651 49,396 3.15
Other borrowed money 78,654 908 4.63
Long-term debt 80,500 1,400 6.98
---------- --------- ------
Total deposits and interest-bearing l6,458,805 51,704 3.21
Noninterest-bearing funds (net) 1,724,449
---------- --------- ------
Total sources to fund earning assets $8,183,254 51,704 2.53
========== --------- ------
Net interest income and
margin tax-equivalent basis $98,197 4.81%
========= ======
Other Balances
-------------------------------------
Cash and due from banks $392,267
Other assets 498,858
Total assets 9,020,019
Total deposits 8,185,095
----------
Demand deposits (noninterest-bearing)1,885,444
Other liabilities 122,698
Stockholders' equity 553,072
Allowance for loan losses 54,360
Notes
-- Weighted average yields on tax-exempt obligations have been
computed on a tax-equivalent basis assuming a federal tax rate
of 35%.
-- Non-accrual loans have been included in the average loan
balance.
-- Investment securities includes investments available for sale.
-- Consumer loans include mortgage loans held for sale.
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
----------------------------------------------------------------------
(dollars in thousands) June 30, March 31, 2002
----------------------------------------------------------------------
2002 Actual $ Change %Change
----------------------------------------------------------------------
Assets
Cash and due from
banks $ 659,667 $ 495,519 $ 164,148 33%
Federal funds sold 85,000 0 85,000 0
----------------------------------------------
Cash and cash
equivalents 744,667 495,519 249,148 50
Loans held for sale 34,758 39,616 (4,858) (12)
Trading securities 218,854 243,186 (24,332) (10)
Securities available
for sale 5,946,271 5,193,533 752,738 14
Securities held to
maturity 920,893 1,013,692 (92,799) (9)
Loans 5,259,543 4,902,410 357,133 7
Less allowance for
loan losses 80,098 72,253 7,845 11
----------------------------------------------
5,179,445 4,830,157 349,288 7
Reserve % 1.52% 1.47%
Bank premises and
equipment, net 412,299 389,117 23,182 6
Other assets 271,908 279,813 (7,905) (3)
----------------------------------------------
$13,729,095 $12,484,633 $ 1,244,462 10%
==============================================
Liabilities
Deposits:
Demand:
Interest-bearing $ 4,292,382 $ 3,879,973 $ 412,409 11%
Noninterest-
bearing 2,767,743 2,539,171 228,572 9
Savings 2,387,166 2,201,908 185,258 8
Time 2,940,098 2,699,811 240,287 9
----------------------------------------------
Total deposits 12,387,389 11,320,863 1,066,526 9
Core deposits 11,353,030 10,394,735 958,295 9
Total other
liabilities 569,118 513,520 55,598 11
----------------------------------------------
12,956,507 11,834,383 1,122,124 9
Stockholders' Equity 772,588 650,250 122,338 19
----------------------------------------------
$13,729,095 $12,484,633 $1,244,462 10%
==============================================
----------------------------------------------------------------------
(dollars in thousands) June 30, 2001
----------------------------------------------------------------------
Actual $ Change % Change
----------------------------------------------------------------------
Assets
Cash and due from
banks $ 502,814 $ 156,853 31%
Federal funds sold 54,800 30,200 55
---------------------------------------------
Cash and cash
equivalents 557,614 187,053 34
Loans held for sale 73,643 (38,885)
Trading securities 144,150 74,704 52
Securities available
for sale 2,679,546 3,266,725 122
Securities held to
maturity 1,310,277 (389,384) (30)
Loans 4,111,949 1,147,594 28
Less allowance for
loan losses 57,548 22,550 39
---------------------------------------------
4,054,401 1,125,044 28
----
Reserve % 1.40%
Bank premises and
equipment, net 299,457 112,842 38
Other assets 226,350 45,558 20
---------------------------------------------
$ 9,345,438 $ 4,383,657 47%
=============================================
Liabilities
Deposits:
Demand:
Interest-bearing $ 2,805,812 $ 1,486,570 53%
Noninterest-
bearing 2,025,801 741,942 37
Savings 1,628,410 758,756 47
Time 1,906,117 1,033,981 54
---------------------------------------------
Total deposits 8,366,140 4,021,249 48
Core deposits 7,637,753 3,715,277 49
----
Total other
liabilities 418,794 150,324 36
---------------------------------------------
8,784,934 4,171,573 47
Stockholders' Equity 560,504 212,084 38
---------------------------------------------
$ 9,345,438 $ 4,383,657 47 %
=============================================
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
----------------------------------------------------------------------
Linked
June 30, March 31, Quarter June 30,
-----------------------------------------------
(dollars in thousands) 2002 2002 % 2001 %
Change Change
----------------------------------------------------------------------
Assets
Cash and due from banks $659,667 $495,519 33% $502,814 31%
Federal funds sold 85,000 0 0 54,800 55
-------------------------------------------------
Cash and cash
equivalents 744,667 495,519 50 557,614 34
Loans held for sale 34,758 39,616 (12) 73,643 (53)
Trading securities 218,854 243,186 (10) 144,150 52
Securities
available for sale 5,946,271 5,193,533 14 2,679,546 122
Securities held
to maturity 920,893 1,013,692 (9) 1,310,277 (30)
Loans:
Commercial real
estate:
Owner-occupied 880,179 833,121 6 740,341 19
Investor
developer 799,494 720,964 11 540,913 48
Construction 478,485 477,089 0 400,478 19
-------------------------------------------------
2,158,158 2,031,174 6 1,681,732 28
Commercial loans:
Term 687,953 635,939 8 531,284 29
Line of credit 626,755 552,858 13 480,439 30
Demand 379 410 (8) 3,023 (87)
-------------------------------------------------
1,315,087 1,189,207 11 1,014,746 30
Consumer:
Mortgages (1-4
family
residential) 553,452 539,360 3 451,047 23
Installment 150,254 158,535 (5) 169,580 (11)
Home equity 1,035,738 938,444 10 761,565 36
Credit lines 46,854 45,690 3 33,279 41
-------------------------------------------------
1,786,298 1,682,029 6 1,415,471 26
-------------------------------------------------
Total loans 5,259,543 4,902,410 7 4,111,949 28
--------- --------- ---- --------- ----
Less allowance
for loan losses 80,098 72,253 11 57,548 39
-------------------------------------------------
5,179,445 4,830,157 7 4,054,401 28
Bank premises and
equipment, net 412,299 389,117 6 299,457 38
Other assets 271,908 279,813 (3) 226,350 20
-------------------------------------------------
$13,729,095 $12,484,633 10% $9,345,438 47%
=================================================
Liabilities
Deposits:
Demand:
Interest-bearing $4,292,382 $3,879,973 11% $2,805,812 53%
Noninterest-bearing 2,767,743 2,539,171 9 2,025,801 37
Savings 2,387,166 2,201,908 8 1,628,410 47
Time 2,940,098 2,699,811 9 1,906,117 54
-------------------------------------------------
Total deposits 12,387,389 11,320,863 9 8,366,140 48
---- ----
Other
borrowed money 118,491 81,567 45 126,061 (6)
Other liabilities 193,127 151,453 28 212,233 (9)
Trust Capital
Securities - Commerce
Capital Trust I 57,500 57,500 0 57,500 0
Convertible Trust
Capital Securities -
Commerce Capital
Trust II 200,000 200,000 0 0 0
Long-term debt 0 23,000 (100) 23,000 (100)
-------------------------------------------------
12,956,507 11,834,383 9 8,784,934 47
Stockholders' Equity
Common stock 67,000 66,491 1 50,716 32
Capital in excess of
par or stated value 493,800 478,188 3 449,740 10
Retained earnings 141,459 116,601 21 58,025 144
Accumulated other
comprehensive income 71,950 (9,408)(865) 3,645 1,874
-------------------------------------------------
774,209 651,872 19 562,126 38
Less treasury stock, at
cost 1,621 1,622 (0) 1,622 (0)
-------------------------------------------------
Total stockholders'
equity 772,588 650,250 19 560,504 38
-------------------------------------------------
$13,729,095 $12,484,633 10% $9,345,438 47%
=================================================
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
----------------------------------------------------------------------
Three Months Ended
dollars in ---------------------------------------------------
thousands,except June 30, March 31, June 30,
per share ---------------------------------------------------
amounts) 2002 2002 % Change 2001 % Change
---------------------------- --------------------
Interest
income
Interest and
fees on loans $ 86,959 $ 81,823 6% $ 81,616 7%
Interest on
investments 101,293 86,217 17 64,643 57
Other interest 116 164 (29) 850 (86)
---------------------------- --------------------
Total interest
income 188,368 168,204 12 147,109 28
---------------------------- --------------------
Interest
expense
Interest on
deposits:
Demand 14,707 12,908 14 15,948 (8)
Savings 8,133 7,078 15 8,345 (3)
Time 21,538 21,281 1 25,103 (14)
---------------------------- --------------------
Total interest
on deposits 44,378 41,267 8 49,396 (10)
Interest on other
borrowed money 282 426 (34) 909 (69)
Interest on
long-term debt 5,082 2,432 109 1,401 263
---------------------------- --------------------
Total interest
expense 49,742 44,125 13 51,706 (4)
---------------------------- --------------------
Net interest
income 138,626 124,079 12 95,403 45
Provision for
loan losses 10,250 6,900 49 7,982 28
---------------------------- --------------------
Net interest
income after
provision for
loan losses 128,376 117,179 10 87,421 47
Noninterest
income
Deposit charges
and service fees 31,629 28,963 9 25,194 26
Other operating
income 30,100 26,927 12 22,187 36
Net investment
securities gains 0 0 0 0 0
---------------------------- --------------------
Total
noninterest
income 61,729 55,890 10 47,381 30
---------------------------- --------------------
Total Revenues 200,355 179,969 11 142,784 40
---- ----
Noninterest
expense
Salaries and
benefits 64,178 60,145 7 45,574 41
Occupancy 13,083 12,098 8 9,129 43
Furniture and
equipment 15,588 15,105 3 12,241 27
Office 7,454 6,916 8 6,589 13
Audit and
regulatory fees
and assessments 1,181 1,205 (2) 1,005 18
Marketing 6,112 4,861 26 4,211 45
Other 29,944 25,591 17 19,191 56
---------------------------- --------------------
Total
noninterest
expenses 137,540 125,921 9 97,940 40
---- ----
---------------------------- --------------------
Income before
income taxes 52,565 47,148 11 36,862 43
Provision for
federal and state
income taxes 17,763 15,398 15 11,752 51
---------------------------- --------------------
Net income $ 34,802 $ 31,750 10 % $ 25,110 39 %
---- ----
============================ ====================
Net income per
common and
common
equivalent
share:
Basic $ 0.52 $ 0.48 8 % $ 0.39 33 %
---------------------------- --------------------
Diluted $ 0.49 $ 0.45 9 $ 0.37 32
---- ----
---------------------------- --------------------
Average common
and common
equivalent
shares
outstanding:
Basic 66,552 65,995 1 64,452 3
---------------------------- --------------------
Diluted 71,007 70,033 1 67,873 5
---------------------------- --------------------
Cash dividends,
common stock $ 0.15 $ 0.15 0 % $ 0.14 7 %
============================ ====================
Return on average
assets 1.06% 1.09% 1.11%
Return on average
equity 18.99 19.00 18.16
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
----------------------------------------------------------------------
June 30, December 31,
-------------------------
(dollars in thousands) 2002 2001
----------------------------------------------------------------------
Assets
Cash and due from banks $ 659,667 $ 557,738
Federal funds sold 85,000 0
-------------------------
Cash and cash equivalents 744,667 557,738
Loans held for sale 34,758 73,261
Trading securities 218,854 282,811
Securities available for sale 5,946,271 4,152,704
Securities held to maturity 920,893 1,132,172
(market value 06/02-$942,693;
12/01-$1,146,345)
Loans 5,259,543 4,583,412
Less allowance for loan losses 80,098 66,981
-------------------------
5,179,445 4,516,431
Bank premises and equipment, net 412,299 362,992
Other assets 271,908 285,594
-------------------------
$13,729,095 $11,363,703
=========================
Liabilities
Deposits:
Demand:
Interest-bearing $ 4,292,382 $ 3,608,709
Noninterest-bearing 2,767,743 2,403,637
Savings 2,387,166 1,925,919
Time 2,940,098 2,247,329
-------------------------
Total deposits 12,387,389 10,185,594
Other borrowed money 118,491 264,554
Other liabilities 193,127 196,485
Trust Capital Securities -
Commerce Capital Trust I 57,500 57,500
Convertible Trust Capital
Securities - Commerce Capital Trust II 200,000 0
Long-term debt 0 23,000
-------------------------
12,956,507 10,727,133
Stockholders' Common stock, 67,000,422
shares issued (65,832,559 shares in 2001) 67,000 65,833
Equity Capital in excess of par
or stated value 493,800 461,897
Retained earnings 141,459 94,698
Accumulated other comprehensive income 71,950 15,764
-------------------------
774,209 638,192
Less treasury stock, at cost, 200,018
shares (200,118 shares in 2001) 1,621 1,622
-------------------------
Total stockholders' equity 772,588 636,570
-------------------------
$13,729,095 $11,363,703
=========================
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
----------------------------------------------------------------------
Three Months Ended
June 30,
-----------------------------
(dollars in thousands, except
per share amounts) 2002 2001 % Change
----------------------------------------------------------------------
Interest income
Interest and fees on loans $ 86,959 $ 81,616 7 %
Interest on investments 101,293 64,643 57
Other interest 116 850 (86)
---------------------------------
Total interest income 188,368 147,109 28
---------------------------------
Interest expense
Interest on deposits:
Demand 14,707 15,948 (8)
Savings 8,133 8,345 (3)
Time 21,538 25,103 (14)
---------------------------------
Total interest on deposits 44,378 49,396 (10)
Interest on other borrowed money 282 909 (69)
Interest on long-term debt 5,082 1,401 263
---------------------------------
Total interest expense 49,742 51,706 (4)
---------------------------------
Net interest income 138,626 95,403 45
Provision for loan losses 10,250 7,982 28
---------------------------------
Net interest income after
provision for loan losses 128,376 87,421 47
Noninterest income
Deposit charges and service fees 31,629 25,194 26
Other operating income 30,100 22,187 36
Net investment securities gains 0 0 0
---------------------------------
Total noninterest income 61,729 47,381 30
---------------------------------
Total Revenues 200,355 142,784 40
----
Noninterest expense
Salaries and benefits 64,178 45,574 41
Occupancy 13,083 9,129 43
Furniture and equipment 15,588 12,241 27
Office 7,454 6,589 13
Audit and regulatory fees and
assessments 1,181 1,005 18
Marketing 6,112 4,211 45
Other 29,944 19,191 56
---------------------------------
Total noninterest expenses 137,540 97,940 40
---------------------------------
Income before income taxes 52,565 36,862 43
Provision for federal and state
income taxes 17,763 11,752 51
---------------------------------
Net income $ 34,802 $ 25,110 39 %
=================================
Net income per common and
common equivalent share:
Basic $ 0.52 $ 0.39 33 %
---------------------------------
Diluted $ 0.49 $ 0.37 32
---------------------------------
Average common and common
equivalent shares outstanding:
Basic 66,552 64,452 3
---------------------------------
Diluted 71,007 67,873 5
---------------------------------
Cash dividends, common stock $ 0.15 $ 0.14 7 %
=================================
----------------------------------------------------------------------
Six Months Ended
June 30,
-----------------------------
2002 2001 % Change
----------------------------------------------------------------------
Interest income
Interest and fees on loans $168,782 $161,355 5 %
Interest on investments 187,510 126,093 49
Other interest 280 2,740 (90)
---------------------------------
Total interest income 356,572 290,188 23
---------------------------------
Interest expense
Interest on deposits:
Demand 27,615 33,982 (19)
Savings 15,211 17,240 (12)
Time 42,819 52,345 (18)
---------------------------------
Total interest on deposits 85,645 103,567 (17)
Interest on other borrowed money 708 2,482 (71)
Interest on long-term debt 7,514 2,996 151
---------------------------------
Total interest expense 93,867 109,045 (14)
---------------------------------
Net interest income 262,705 181,143 45
Provision for loan losses 17,150 12,591 36
---------------------------------
Net interest income after
provision for loan losses 245,555 168,552 46
Noninterest income
Deposit charges and service fees 60,592 47,030 29
Other operating income 57,027 43,479 31
Net investment securities gains 0 980 (100)
---------------------------------
Total noninterest income 117,619 91,489 29
---------------------------------
Total Revenues 380,324 272,632 40
----
Noninterest expense
Salaries and benefits 124,323 89,501 39
Occupancy 25,181 17,927 40
Furniture and equipment 30,693 23,847 29
Office 14,370 12,655 14
Audit and regulatory fees and
assessments 2,386 1,965 21
Marketing 10,973 6,475 69
Other 55,535 35,924 55
---------------------------------
Total noninterest expenses 263,461 188,294 40
---------------------------------
Income before income taxes 99,713 71,747 39
Provision for federal and state
income taxes 33,161 23,236 43
---------------------------------
Net income $ 66,552 $ 48,511 37 %
=================================
Net income per common and
common equivalent share:
Basic $ 1.00 $ 0.76 32 %
---------------------------------
Diluted $ 0.94 $ 0.72 31
---------------------------------
Average common and common
equivalent shares outstanding:
Basic 66,275 64,135 3
---------------------------------
Diluted 70,510 67,371 5
---------------------------------
Cash dividends, common stock $ 0.30 $ 0.27 11 %
=================================
--30--DM/ph& des/ph SF/ph NR/ph
CONTACT: Commerce Bancorp, Inc.
Vernon W. Hill, II or C. Edward Jordan, Jr., 856/751-9000
KEYWORD: NEW JERSEY
INDUSTRY KEYWORD: BANKING EARNINGS
SOURCE: Commerce Bancorp, Inc.
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