Commerce Bancorp Earnings Per Share up 33 % -- Deposits up $1.5 Billion.Business Editors CHERRY HILL Cherry Hill, township (1990 pop. 69,319), Camden co., W central N.J.; name was changed from Delaware township to Cherry Hill in 1961. Largely residential, Cherry Hill has been marked by great development and housing growth, especially since the 1970s. , N.J.--(BUSINESS WIRE)--April 10, 2003 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 first quarter of 2003, 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" continues to produce record results, fueled by a deposit increase of 43% and earnings per share growth of 33%."
FIRST QUARTER FINANCIAL HIGHLIGHTS
March 31, 2003
%
Increase
--------
Total Assets: $ 17.8 Billion 43 %
Total Deposits: $ 16.2 Billion 43 %
Total (Net) Loans: $ 5.9 Billion 22 %
Total Revenues: $243.4 Million 35 %
Net Income: $ 42.9 Million 35 %
Net Income Per Share: $ .60 33 %
------ ----
Three Months Ended
March 31, 2003
------------------------------
2003 2002 %Change
------------------------------
(dollars in thousands, except per share data)
Total Revenues: $243,395 $179,969 35%
Total Expenses: 172,121 125,921 37
Net Income: 42,890 31,750 35
Net Income Per Share: $.60 $.45 33%
-------- -------- ------
Balance Sheet
Linked Quarter
3/31/03 3/31/02 % Change 12/31/02 $ Increase % Increase
-------------------------------------------------------
(dollars in millions)
Total Assets: $17,798 $12,485 43% $16,404 $1,394 8%
Total Loans
(Net): 5,899 4,830 22 5,732 167 3
Core Deposits: 15,296 10,395 47 13,834 1,462 11
Total Deposits: 16,232 11,321 43 14,549 1,683 12
Chairman's Statement Vernon W. Hill, II, Chairman, commenting on the Company's financial results said, " the unique Commerce business model continues to produce strong top-line revenue growth driven by strong deposit growth volume which significantly increases our net interest income, despite the difficult low-rate operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. ." Some of our financial highlights were: -- Net income increased 35% for the first quarter of 2003. -- Earnings per share rose 33% for the first quarter. -- Total revenues grew 35% for the quarter. -- Core deposits grew 47% for the prior 12 months including $1.5 billion in growth during the first quarter. -- Comparable store deposits grew 29%. -- The Company opened 2 new offices in the first quarter of 2003 and has 25 new offices under construction for openings in the second and third quarter. -- On-line banking and branch banking continued to reinforce re·in·force v. 1. To give more force or effectiveness to something; strengthen. 2. To reward an individual, especially an experimental subject, with a reinforcer subsequent to a desired response or performance. 3. each other as our on-line penetration The successful unauthorized breach of a security perimeter. See penetration test. rate increased to 36%. -- Shareholder returns, foremost in our objectives, continue to be favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. . A comparison of our one, five and ten year shareholder returns to the S & P Index follows:
Commerce S & P Index
-------- -----------
1 year -10.26% -24.64%
5 years 16.85 -3.76
10 years 28.54 9.54
Future Guidance Due to our continued strong operating performance, we reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it our growth targets:
Last 5-Year Actual %
Growth Targets Growth % First Quarter 2003
-------------- ----------- ------------------
Total Deposits: 25% 32% 43%
---
Comp Store Deposits: 18 20 29
---
Total Revenue: 25 30 35
---
Net Income: 25 31 35
---
Earnings Per Share: 20 31 33
---
Additionally, the Company plans to open approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 46 branch offices in 2003, in the following areas:
Metropolitan New York 33
Metropolitan Philadelphia 13
Total Deposits The Company's dramatic deposit growth continues with total deposits at March 31, 2003 of $16.2 billion, a $4.9 billion increase or 43% over total deposits of $11.3 billion a year ago, including $1.7 billion of growth in the first quarter.
3/31/03 3/31/02 $ Increase %Increase
------- ------- ---------- ---------
(dollars in millions)
Core Deposits $15,296 $10,395 $4,901 47%
---
Total Deposits 16,232 11,321 4,911 43%
---
Core deposit growth by type of account is as follows:
Balance Balance Cost of Annual
3/31/03 3/31/02 Funds Growth %
------- ------- ------- --------
(dollars in millions)
Non-interest Bearing Demand $3,627 $2,539 .00% 43%
Interest Bearing Demand 6,098 3,880 .86 57
Savings 3,331 2,202 .85 51
Time 2,240 1,774 2.59 26
Total Core Deposits: $15,296 $10,395 .93% 47%
------- ------- ---- ----
Core deposit growth by type of customer is as follows:
Comp
Annual Store
3/31/03 % Total 3/31/02 % Total Growth % Growth %
------- ------- ------- ------- -------- --------
(dollars in millions)
Consumer $7,894 52% $5,638 54% 40% 23%
Commercial 5,291 34 3,495 34 51 32
Government 2,111 14 1,262 12 67 38
------- ---- ------- ---- --- ---
Total $15,296 100% $10,395 100% 47% 29%
------- ------- --- ---
The Company's total deposit costs including non-interest-bearing demand deposits were .96% and the total 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. was 1.06% for the first quarter of 2003. Core deposit costs were .93% for the first quarter of 2003. The deposit growth by markets served is as follows:
Deposit Growth by Market
Annualized
# of $ % Comp Growth/
Offices 3/31/03 3/31/02 Increase Increase Store Branch
------- ------- ------- -------- -------- ----- ------
(dollars in millions)
Metro
Philadelphia 124 $9,520 $7,099 $2,421 34% 29% $21
Northern
New Jersey 84 5,548 4,030 1,518 38 28 21
Manhattan 11 760 192 568 295 n/a 95
Long Island 7 404 n/a 404 n/a n/a 108
--- ------ ------ ----- --- --- ---
Total 226 $16,232 $11,321 $4,911 43% 29% $27
Net Income and Earnings Per Share Net income totaled $42.9 million for the first quarter of 2003, up $11.1 million or 35% over net income of $31.8 million for the first quarter of 2002. 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 first quarter was $.60 compared to $.45 for the first quarter of 2002, a 33% increase.
Three Months Ended
------------------
3/31/03 3/31/02 % Increase
------- ------- ----------
(dollars in thousands, except per share data)
Net Income $42,890 $31,750 35%
----
Earnings Per Share $.60 $.45 33%
----
The 35% growth in net income for the first quarter of 2003 was driven by increased net interest income of 35% and increased fee income of 36%. On a year-to-year basis, total revenues grew 35% compared to a 37% increase in expenses. If the Company had chosen to expense stock options beginning with grants issued in 2003, the impact on earnings per share for the first quarter of 2003 would have been $.02 per share. Total Revenues
Three Months Ended
------------------
3/31/03 3/31/02 % Increase
------- ------- ----------
(dollars in thousands, except per share data)
Total Revenues $243,395 $179,969 35%
----
Revenue Per Share $13.56 $10.28 32%
----
Net Interest Income and Net Interest Margin Net interest income for the first quarter totaled $167.3 million, a 5% increase from the prior quarter and a 35% increase over the $124.1 million recorded a year ago. The increase in net interest income was due to the volume increases in interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin resulting from the Company's strong, low-cost core deposit growth. The net interest margin for the first quarter of 2003 was 4.59% up four basis points from the 4.55% margin for the fourth quarter of 2002. The increase in the margin was attributed primarily to a reduction in the cost of funds which more than offset the decline in the yield on interest-earning assets. The Company's continued ability to grow deposits, resulting in significant earning asset Earning asset An asset that generates income, e.g., income from rental property. growth, permitted the Company to record $171.1 million in net interest income on a tax equivalent basis in the first quarter of 2003, an increase of $43.7 million or 34% over the first quarter of 2002. As shown below, the increase in net interest income was due to volume increases in the Company's earning assets.
Net Interest Income
-----------------------------------------
Quarter Ended Volume Rate Total %
March 31 Increase Change Increase Increase
-------- -------- ------ -------- --------
(dollars in millions)
2003 vs. 2002 $49,552 ($5,857) $43,695 34%
Non-Interest Income Non-interest income for the first quarter of 2003 increased to $76.1 million from $55.9 million a year ago, a 36% increase. On a linked quarter basis, non-interest income increased 8%. The growth in non-interest income for the first quarter and 2003 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:
Three Months Ended
------------------
3/31/03 3/31/02 % Increase
------- ------- ----------
(Dollars in thousands)
-------------------------------
Deposit Charges & Service Fees $34,842 $28,963 20%
Other Operating Income:
Insurance 16,055 13,388 20
Capital Markets 10,003 6,446 55
Loan Brokerage Fees 7,923 4,025 97
Other 7,379 3,068 136
-------------------------------
Total Other 41,360 26,927 53%
Net Investment Securities Losses (136) 0 --
-------------------------------
Total Non-Interest Income $76,066 $55,890 36%
Commerce National Insurance Services Total revenues for the Company's insurance division were $16.1 million for the first quarter of 2003 compared to $13.4 million for the first quarter of 2002, a 20% increase. Commerce Capital Markets Total revenues for the Company's capital markets division were $10.0 million for the first quarter of 2003 compared to $6.4 million for the first quarter of 2002, a 55% increase. During the first quarter of 2003, the Company discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: its equity research and institutional sales division. A small investment banking staff remains to support middle market lending. In conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. therewith there·with adv. 1. With that, this, or it. 2. In addition to that. 3. Archaic Immediately thereafter. Adv. 1. , the Company absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. , in the normal course of business, expense of approximately $1.0 million in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments to affected employees. A 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 total revenues by division is as follows:
Three Months Ended
------------------
3/31/03 3/31/02
------- -------
Trading & Sales $3,960 $3,068
Public Finance 3,576 1,700
Retail & Asset Management 2,467 1,678
---------------------
$10,003 $6,446
Non-Interest Expenses Non-interest expenses for the first quarter of 2003 were $172.1 million, up 37% from $125.9 million a year ago. The increase in non-interest expenses for the first quarter of 2003 was 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 March 31, 2003 to the previous quarter ended December December: see month. 31, 2002 is as follows: (dollars in thousands, except per share data)
Three Months Ended Linked
------------------ Quarter
3/31/03 12/31/02 $ Increase % Increase
------- -------- ---------- ----------
Total Assets $17,798,123 $16,403,981 $1,394,142 8
Total Loans (Net) 5,898,696 5,731,856 166,840 3
Core Deposits 15,296,123 13,834,293 1,461,830 11
Total Deposits 16,231,901 14,548,841 1,683,060 12
Total Revenues 243,395 229,711 13,684 6
Net Interest Income 167,329 159,496 7,833 5
Non-Interest Income 76,066 70,215 5,851 8
Non-Interest Expense 172,121 160,879 11,242 7
Net Income 42,890 40,574 2,316 6
Net Income Per Share $.60 $.57 $.03 5
Lending Loans increased 22% to $5.9 billion, and the growth was widespread throughout all loan categories. The Company's primary strength is in building customer relationships and growing market share in deposits, loans, and related services. Consumer and small business loan growth is directly related to the Company's significant increase in branch locations, market expansion and added lending personnel. Detailed in the chart below is a recap re·cap 1 tr.v. re·capped, re·cap·ping, re·caps 1. To replace a cap or caplike covering on: recapped the bottle. 2. of commercial and commercial real estate loan growth for the past year by loan size: (dollars in millions, except # of loans and average loan size)
Commercial Loan and Commercial Real Estate Growth
-------------------------------------------------
# of Average
Size Loans Loan Size 3/31/03 3/31/02 % Increase
---- ------ --------- ------- ------- ----------
Less Than $5 Million 15,161 $220,000 $3,335 $2,682 24%
Greater Than $5 Million 76 8,447,000 642 538 19
------ --------- ------- ------- ----------
Total: 15,237 $261,000 $3,977 $3,220 24%
Geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge , loan growth has occurred in the following markets:
Portfolio Geographical Growth
-----------------------------
% of Total
3/31/03 3/31/02 Growth Rate Growth
------- ------- ----------- ----------
(dollars in millions)
Metro Philadelphia $4,067 $3,370 21% 64%
Northern New Jersey 1,758 1,499 17 24
New York/Long Island 168 33 n/a 12
------- ------- ----------
Total: $5,993 $4,902 100%
The Company continues to serve Main Street 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. and has avoided the pitfalls experienced by participation in Shared National Credit lending, loans to the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , airlines, and energy sectors, sub-prime loans and foreign lending.
Loan Composition
----------------
% of % of
3/31/03 Total 3/31/02 Total $ Increase %Increase
------- ----- ------- ----- ---------- ---------
(dollars in thousands)
Commercial $1,621 27% $1,189 24% $432 36%
Consumer 2,017 34 1,682 34 335 20
Commercial
Real Estate 1,022 17 913 19 109 12
Owner-Occupied 1,333 22 1,118 23 215 19
------ ---- ------ ----
Gross Loans $5,993 100% $4,902 100%
Less: Reserves ( 94) ( 72)
------ ------
Net Loans $5,899 $4,830 22%
----
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
-------------
3/31/03 12/31/02 3/31/02
------- -------- -------
Non-Performing Assets/Assets .13% .11% .16%
Net Loan Charge-Offs .19% .19% .14%
Loan Loss Reserve/ Gross Loans 1.58% 1.56% 1.47%
Non-Performing Loan Coverage 499% 640% 428%
Non-Performing Assets/Capital
and Reserves 2% 2% 3%
During the first quarter, the Company increased its reserve for loan losses as a percentage of loans to 1.58% from 1.56% on a linked quarter basis and from 1.47% a year ago. Non-performing assets and loans past due 90 days at March 31, 2003 totaled $22.9 million or .13% of total assets, versus $20.0 million, or .16% 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 reserve for loan losses at March 31, 2003. Investments Total investments increased to $10.0 billion from $6.4 billion a year ago. The portfolio is comprised primarily of high quality U.S. Government agency and mortgage-backed Mortgage-backed may refer to:
Detailed below is information regarding the composition and characteristics of the Company's investment portfolio, excluding trading securities, as of March 31, 2003.
Average
Product Description Amount Duration Life Yield
------------------- ------ -------- ------- -----
(in millions) (in years)
Federal Agencies Pass Through $3,568 3.3 4.3 5.58%
Certificates (AAA Rated)
Collateralized Mortgage 5,592 2.2 2.6 5.04
Obligations (AAA Rated)
Obligations of State and 216 4.6 4.6 5.25
Political Subdivision
Other 404 3.0 3.5 4.86
-----------------------------------
$9,780 2.7 3.3 5.23%
The appreciation in the available for sale and held to maturity portfolios totaled $177 million at March 31, 2003. Capital Resources Stockholders' equity at March 31, 2003 increased to $953.6 million, a $303.3 million increase, or 47% over stockholders' equity of $650.3 million at March 31, 2002. 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 first quarter of 2003 was 17.94% compared to 19.00 % for the first quarter of 2002. The Company's capital ratios at March 31, 2003 were as follows:
Regulatory Guidelines
Commerce "Well Capitalized"
-------- ------------------
Leverage Ratio 6.28% 5.00%
Tier I 11.39 6.00%
Total Capital 12.41 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 branch) 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 March 31, 2003 was 29% compared to the same period a year ago. Same store core deposit increases for the previous four quarters were 29%, 31%, 30% and 28%, respectively. -- New Branch Offices During the first quarter of 2003, the Company opened 2 new branch offices, increasing the total offices opened to 226. 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 106 of 226 branches. Branches opened during the first quarter were as follows:
Metropolitan New York
Location County
Springfield Union (NJ)
Metropolitan Philadelphia
Location County
Trenton Mercer (NJ)
-- Commerce Online Commerce continued its leading role in on-line banking by increasing its penetration rate to 36.1%, which is one of the highest in America. Investor Day The Company is pleased to announce that it will host an Investor Day on Tuesday Tuesday: see week. , April 29, 2003. The event will be held at the Waldorf Waldorf can have the following meanings: in places:
1 Commercial, industrial, and residential section of NW Queens borough of New York City, SE N.Y.; settled in the 17th cent. as Hallet's Cove. It was renamed for John Jacob Astor in 1839. Hotel located at 301 Park Avenue 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. . The meeting will start at 9:30 a.m. and will conclude with a Noon luncheon including a guest speaker. The Investors Day will provide an opportunity for all investors and analysts to meet with several members of Commerce's senior management team. Presentations will be made by the following executives:
Vernon W. Hill, II Chairman and
Chief Executive Officer
Dennis D. DiFlorio Executive Vice President
Chief Retail Officer
Robert D. Falese Executive Vice President
Chief Lending Officer
Peter M. Musumeci Executive Vice President
Chief Credit Officer
George E. Norcross, III President
Commerce Insurance
C. Edward Jordan, Jr. Executive Vice President
Investor Relations
Douglas J. Pauls Senior Vice President
Chief Financial Officer
John Cunningham Senior Vice President
Director of Marketing
Fred Graziano Senior Vice President
Market President/Northern/NJ
Interested qualifying members of the investment community who have not already pre-registered may register by accessing the Investor Relations Investor relations The process by which the corporation communicates with its investors. area of the Company's website: www.commerceonline.com and filling in the information request form therein. 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
March 31,
--------------------------------
%
2003 2002 Change
------------ ------------ ------
(dollars and shares in
thousands)
Income Statement Data:
Net interest income $167,329 $124,079 35%
Provision for loan losses 6,900 6,900 -
Noninterest income 76,066 55,890 36
Total revenues 243,395 179,969 + 35
------------ ------
Noninterest expense 172,121 125,921 37
Net income 42,890 31,750 + 35
------------ ------
Per Share Data:
Net income - Basic $0.63 $0.48 31%
Net income - Diluted 0.60 0.45 + 33
------------ ------
Book value - Basic $13.86 $9.81 41%
Book value - Diluted 13.20 9.25 + 43
------------ ------
Revenue per share - Diluted $13.56 $10.28 + 32%
------------ ------
Weighted Average Shares Outstanding:
Basic 68,318 65,995
Diluted 71,785 70,033
Balance Sheet Data:
Total assets $17,798,123 $12,484,633 + 43%
Loans (net) 5,898,696 4,830,157 22
Allowance for loan losses 94,731 72,253 31
Securities available for sale 8,852,908 5,193,533 70
Securities held to maturity 927,562 1,013,692 (8)
Total deposits 16,231,901 11,320,863 43
------------ ------------
Core deposits 15,296,123 10,394,735 47
------------ ------------
Long-term debt 0 23,000 (100)
Trust Capital Securities - Commerce
Capital Trust I 0 57,500 (100)
Convertible Trust Capital Securities
- Commerce Capital Trust II 200,000 200,000 -
Stockholders' equity 953,561 650,250 + 47
Capital:
Stockholders' equity to total assets 5.36% 5.21%
------------
Risk-based capital ratios:
Tier I 11.39 12.94
Total capital 12.41 14.51
Leverage ratio 6.28 7.57
Performance Ratios:
Cost of funds 1.06% 1.68%
Net interest margin 4.59 4.85
Return on average assets 1.02 1.09
Return on average total
stockholders' equity 17.94 19.00
The following summary presents information regarding non-performing
loans and assets as of March 31, 2003 and the preceding four quarters
(dollar amounts in thousands).
March December September June March
31, 31, 30, 30, 31,
2003 2002 2002 2002 2002
-------- -------- --------- -------- --------
Non-accrual loans:
Commercial $4,874 $5,412 $7,213 $7,581 $9,473
Consumer 6,388 2,734 2,147 1,557 1,537
Real estate:
Construction 131 131 181 181
Mortgage 7,721 5,891 5,754 5,778 5,695
-------- -------- --------- -------- --------
Total non-accrual
loans 18,983 14,168 15,245 15,097 16,886
-------- -------- --------- -------- --------
Restructured loans:
Commercial 4 5 6 6 7
Consumer
Real estate:
Construction
Mortgage
-------- -------- --------- -------- --------
Total restructured
loans 4 5 6 6 7
-------- -------- --------- -------- --------
Total non-performing
loans 18,987 14,173 15,251 15,103 16,893
-------- -------- --------- -------- --------
Other real estate 3,553 3,589 2,367 2,471 2,602
-------- -------- --------- -------- --------
Total non-performing
assets 22,540 17,762 17,618 17,574 19,495
-------- -------- --------- -------- --------
Loans past due 90 days
or more and still
accruing 376 620 900 834 484
-------- -------- --------- -------- --------
Total non-performing
assets and loans past
due 90 days or more $22,916 $18,382 $18,518 $18,408 $19,979
======== ======== ========= ======== ========
Total non-performing
loans as a
percentage of total
period-end
loans 0.32% 0.24% 0.28% 0.29% 0.34%
Total non-performing
assets as a percentage
of total period-end
assets 0.13% 0.11% 0.11% 0.13% 0.16%
--------
Total non-performing
assets and loans
past due 90 days or
more as a percentage
of total period-end
assets 0.13% 0.11% 0.12% 0.13% 0.16%
Allowance for loan
losses as a
percentage of total
non-performing loans 499% 640% 560% 530% 428%
Allowance for loan
losses as a percentage
of total period-end
loans 1.58% 1.56% 1.54% 1.52% 1.47%
Total non-performing
assets and loans past
due 90 days or more as a
percentage of
stockholders' equity
and allowance for
loan losses 2% 2% 2% 2% 3%
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 Ended
-------------------
03/31/03 03/31/02 12/31/02
--------- --------- ---------
Balance at beginning of period $90,733 $66,981 $66,981
Provisions charged to operating
expenses 6,900 6,900 33,150
--------- --------- ---------
97,633 73,881 100,131
Recoveries on loans charged-off:
Commercial 204 190 815
Consumer 131 115 339
Commercial real estate - 1 176
--------- --------- ---------
Total recoveries 335 306 1,330
Loans charged-off:
Commercial (1,868) (1,187) (7,181)
Consumer (1,365) (724) (3,514)
Commercial real estate (4) (23) (33)
--------- --------- ---------
Total charge-offs (3,237) (1,934) (10,728)
--------- --------- ---------
Net charge-offs (2,902) (1,628) (9,398)
--------- --------- ---------
Balance at end of period $94,731 $72,253 $90,733
========= ========= =========
Net charge-offs as a percentage of
average loans outstanding 0.19% 0.14% 0.18%
Net Reserve Additions $3,998 $5,272 $23,752
--------- --------- ---------
Commerce Bancorp, Inc. and Subsidiaries Average Balances and
Net Interest Income
(unaudited)
------------------------------
March 2003
------------------------------
Average Average
Balance Interest Rate
------------------------------
(dollars in thousands)
Earning Assets
----------------------------------------
Investment securities
Taxable $8,681,675 $109,916 5.13%
Tax-exempt 140,307 2,545 7.36
Trading 270,299 3,215 4.82
------------ --------- -------
Total investment securities 9,092,281 115,676 5.16
Federal funds sold 27,154 80 1.19
Loans
Commercial mortgages 2,177,008 35,125 6.54
Commercial 1,496,039 20,943 5.68
Consumer 2,075,256 33,719 6.59
Tax-exempt 258,614 5,129 8.04
------------ --------- -------
Total loans 6,006,917 94,916 6.41
------------ --------- -------
Total earning assets $15,126,352 $210,672 5.65%
============
Sources of Funds
----------------------------------------
Interest-bearing liabilities
Regular savings $3,021,219 $6,355 0.85%
N.O.W. accounts 403,415 813 0.82
Money market plus 5,472,788 11,584 0.86
Time deposits 2,148,534 13,731 2.59
Public funds 793,437 3,115 1.59
------------ --------- -------
Total deposits 11,839,393 35,598 1.22
Other borrowed money 272,304 914 1.36
Long-term debt 200,000 3,020 6.12
------------ --------- -------
Total deposits and interest-bearing
liabilities 12,311,697 39,532 1.30
Noninterest-bearing funds (net) 2,814,655
------------ --------- -------
Total sources to fund earning assets $15,126,352 39,532 1.06
============ --------- -------
Net interest income and
margin tax-equivalent basis $171,140 4.59%
========= =======
Other Balances
----------------------------------------
Cash and due from banks $865,209
Other assets 933,321
Total assets 16,831,542
Total deposits 15,033,367
------------
Demand deposits (noninterest-bearing) 3,193,974
Other liabilities 369,691
Stockholders' equity 956,180
Allowance for loan losses 93,340
------------------------------
December 2002
------------------------------
Average Average
Balance Interest Rate
------------------------------
(dollars in thousands)
Earning Assets
----------------------------------------
Investment securities
Taxable $8,033,417 $104,326 5.15%
Tax-exempt 113,895 1,820 6.34
Trading 272,107 4,068 5.93
------------ --------- -------
Total investment securities 8,419,419 110,214 5.19
Federal funds sold 51,988 181 1.38
Loans
Commercial mortgages 2,241,044 37,009 6.55
Commercial 1,338,892 19,816 5.87
Consumer 1,963,307 33,928 6.86
Tax-exempt 195,972 4,517 9.14
------------ --------- -------
Total loans 5,739,215 95,270 6.59
------------ --------- -------
Total earning assets $14,210,622 $205,665 5.74%
============
Sources of Funds
----------------------------------------
Interest-bearing liabilities
Regular savings $2,809,817 $7,110 1.00%
N.O.W. accounts 393,844 919 0.93
Money market plus 5,048,365 12,375 0.97
Time deposits 2,054,038 14,376 2.78
Public funds 842,374 3,998 1.88
------------ --------- -------
Total deposits 11,148,438 38,778 1.38
Other borrowed money 201,547 729 1.44
Long-term debt 200,000 3,022 5.99
------------ --------- -------
Total deposits and interest-bearing
liabilities 11,549,985 42,529 1.46
Noninterest-bearing funds (net) 2,660,637
------------ --------- -------
Total sources to fund earning assets $14,210,622 42,529 1.19
============ --------- -------
Net interest income and
margin tax-equivalent basis $163,136 4.55%
========= =======
Other Balances
----------------------------------------
Cash and due from banks $788,271
Other assets 831,250
Total assets 15,741,365
Total deposits 14,170,281
------------
Demand deposits (noninterest-bearing) 3,021,843
Other liabilities 283,708
Stockholders' equity 885,829
Allowance for loan losses 88,778
------------------------------
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
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.
- Consumer loans include mortgage loans held for sale.
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
----------------------------------------------------------------------
(dollars in thousands) March 31, December 31, 2002
-----------------------------------------------
2003 Actual $Change % Change
----------------------------------------------------------------------
Assets
Cash and due from banks $832,821 $811,434 $21,387 3%
Federal funds sold 61,000 0 61,000 0
------------ ------------ ----------- ---------
Cash and
cash
equivalents 893,821 811,434 82,387 10
Loans held for sale 55,230 96,920 (41,690) (43)
Trading securities 205,631 326,479 (120,848) (37)
Securities available
for sale 8,852,908 7,806,779 1,046,129 13
Securities held to
maturity 927,562 763,026 164,536 22
Loans 5,993,427 5,822,589 170,838 3
Less
allowance
for loan
losses 94,731 90,733 3,998 4
------------ ------------ ----------- ---------
5,898,696 5,731,856 166,840 3
Reserve % 1.58% 1.56%
Bank premises and
equipment, net 556,945 499,189 57,756 12
Other
assets 407,330 368,298 39,032 11
------------ ------------ ----------- ---------
$17,798,123 $16,403,981 $1,394,142 8%
============ ============ =========== =========
Liabilities
Deposits:
Demand:
Interest-
bearing $6,097,976 $5,635,351 $462,625 8%
Noninterest-
bearing 3,626,661 3,243,091 383,570 12
Savings 3,331,131 2,861,677 469,454 16
Time 3,176,133 2,808,722 367,411 13
------------ ------------ ----------- ---------
Total
deposits 16,231,901 14,548,841 1,683,060 12
Core
deposits 15,296,123 13,834,293 1,461,830 11
Total other liabilities 612,661 937,130 (324,469) (35)
------------ ------------ ----------- ---------
16,844,562 15,485,971 1,358,591 9
Stockholders' Equity 953,561 918,010 35,551 4
------------ ------------ ----------- ---------
$17,798,123 $16,403,981 $1,394,142 8%
============ ============ =========== =========
----------------------------------------------------------------------
(dollars in thousands) March 31, 2002
----------------------------------
Actual $Change % Change
----------------------------------------------------------------------
Assets
Cash and due from banks $495,519 $337,302 68 %
Federal funds sold 0 61,000 0
------------ ----------- ---------
Cash and cash equivalents 495,519 398,302 80
Loans held for sale 39,616 15,614 39
Trading securities 243,186 (37,555) (15)
Securities available for sale 5,193,533 3,659,375 70
Securities held to maturity 1,013,692 (86,130) (8)
Loans 4,902,410 1,091,017 22
Less allowance for loan
losses 72,253 22,478 31
------------ ----------- ---------
4,830,157 1,068,539 22
Reserve % 1.47% ----
Bank premises and equipment, net 389,117 167,828 43
Other
assets 279,813 127,517 46
------------ ----------- ---------
$12,484,633 $5,313,490 43 %
============ =========== =========
Liabilities
Deposits:
Demand:
Interest-bearing $3,879,973 $2,218,003 57 %
Noninterest-bearing 2,539,171 1,087,490 43
Savings 2,201,908 1,129,223 51
Time 2,699,811 476,322 18
------------ ----------- ---------
Total deposits 11,320,863 4,911,038 43
Core deposits 10,394,735 4,901,388 47
----
Total other liabilities 513,520 99,141 19
------------ ----------- ---------
11,834,383 5,010,179 42
Stockholders' Equity 650,250 303,311 47
------------ ----------- ---------
$12,484,633 $5,313,490 43 %
============ =========== =========
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
----------------------------------------------------------------------
Linked
March 31, December 31, Quarter
------------ ------------ ---------
(dollars in thousands) 2003 2002 % Change
----------------------------------------------- ------------ ---------
Assets
Cash and due from banks $832,821 $811,434 3%
Federal funds sold 61,000 0 0
-----------------------------------
Cash and cash equivalents 893,821 811,434 10
Loans held for sale 55,230 96,920 (43)
Trading securities 205,631 326,479 (37)
Securities available for sale 8,852,908 7,806,779 13
Securities held to maturity 927,562 763,026 22
Loans:
Commercial real estate:
Owner-occupied 1,333,390 1,345,306 (1)
Investor developer 930,791 885,276 5
Residential construction 91,378 102,080 (10)
-----------------------------------
2,355,559 2,332,662 1
Commercial loans:
Term 872,787 842,869 4
Line of credit 732,693 683,640 7
Demand 15,795 317 4,883
-----------------------------------
1,621,275 1,526,826 6
Consumer:
Mortgages (1-4 family
residential) 647,955 626,652 3
Installment 134,116 140,493 (5)
Home equity 1,183,594 1,139,589 4
Credit lines 50,928 56,367 (10)
-----------------------------------
2,016,593 1,963,101 3
-----------------------------------
Total loans 5,993,427 5,822,589 3
------------ ------------ ---------
Less allowance for loan
losses 94,731 90,733 4
-----------------------------------
5,898,696 5,731,856 3
Bank premises and equipment, net 556,945 499,189 12
Other assets 407,330 368,298 11
-----------------------------------
$17,798,123 $16,403,981 8%
===================================
Liabilities
Deposits:
Demand:
Interest-bearing $6,097,976 $5,635,351 8%
Noninterest-bearing 3,626,661 3,243,091 12
Savings 3,331,131 2,861,677 16
Time 3,176,133 2,808,722 13
-----------------------------------
Total deposits 16,231,901 14,548,841 12
---------
Other borrowed money 109,622 391,641 (72)
Other liabilities 303,039 345,489 (12)
Trust Capital Securities - Commerce
Capital Trust I 0 0 0
Convertible Trust Capital
Securities - Commerce Capital
Trust II 200,000 200,000 0
Long-term debt 0 0 0
-----------------------------------
16,844,562 15,485,971 9
Stockholders' Equity
Common stock 69,072 68,043 2
Capital in excess of par or stated
value 565,246 538,795 5
Retained earnings 231,280 199,604 16
Accumulated other comprehensive
income 93,208 113,614 (18)
-----------------------------------
958,806 920,056 4
Less treasury stock, at cost 5,245 2,046 156
-----------------------------------
Total stockholders' equity 953,561 918,010 4
-----------------------------------
$17,798,123 $16,403,981 8%
===================================
----------------------------------------------------------------------
March 31,
----------------------
(dollars in thousands) 2002 % Change
----------------------------------------------------------------------
Assets
Cash and due from banks $495,519 68%
Federal funds sold 0 0
----------------------
Cash and cash equivalents 495,519 80
Loans held for sale 39,616 39
Trading securities 243,186 (15)
Securities available for sale 5,193,533 70
Securities held to maturity 1,013,692 (8)
Loans:
Commercial real estate:
Owner-occupied 1,117,698 19
Investor developer 864,614 8
Residential construction 48,862 87
----------------------
2,031,174 16
Commercial loans:
Term 635,939 37
Line of credit 552,858 33
Demand 410 3,752
----------------------
1,189,207 36
Consumer:
Mortgages (1-4 family residential) 539,360 20
Installment 158,535 (15)
Home equity 938,444 26
Credit lines 45,690 11
----------------------
1,682,029 20
----------------------
Total loans 4,902,410 22
------------ ------
Less allowance for loan losses 72,253 31
----------------------
4,830,157 22
Bank premises and equipment, net 389,117 43
Other assets 279,813 46
------------ ---------
$12,484,633 43%
======================
Liabilities
Deposits:
Demand:
Interest-bearing $3,879,973 57%
Noninterest-bearing 2,539,171 43
Savings 2,201,908 51
Time 2,699,811 18
----------------------
Total deposits 11,320,863 43
---------
Other borrowed money 81,567 34
Other liabilities 151,453 100
Trust Capital Securities - Commerce Capital
Trust I 57,500 (100)
Convertible Trust Capital Securities - Commerce
Capital Trust II 200,000 0
Long-term debt 23,000 (100)
----------------------
11,834,383 42
Stockholders' Equity
Common stock 66,491 4
Capital in excess of par or stated value 478,188 18
Retained earnings 116,601 98
Accumulated other comprehensive income (9,408) (1,091)
----------------------
651,872 47
Less treasury stock, at cost 1,622 223
----------------------
Total stockholders' equity 650,250 47
----------------------
$12,484,633 43%
======================
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
----------------------------------------------------------------------
Three Months Ended
----------------------------------------------
March 31, December 31, March 31,
-------- ------------------ ------------------
(dollars in thousands, 2003 2002 % Change 2002 % Change
except per share
amounts)
----------------------------------------------------------------------
Interest income
Interest and fees on
loans $93,121 $93,690 (1)% $81,823 14%
Interest on investments 113,661 108,153 5 86,217 32
Other interest 79 181 (56) 164 (52)
----------------------------------------------
Total interest
income 206,861 202,024 2 168,204 23
----------------------------------------------
Interest expense
Interest on deposits:
Demand 12,397 13,294 (7) 12,908 (4)
Savings 6,355 7,109 (11) 7,078 (10)
Time 16,846 18,374 (8) 21,281 (21)
----------------------------------------------
Total interest on
deposits 35,598 38,777 (8) 41,267 (14)
Interest on other
borrowed money 914 728 26 426 115
Interest on long-term
debt 3,020 3,023 (0) 2,432 24
----------------------------------------------
Total interest
expense 39,532 42,528 (7) 44,125 (10)
----------------------------------------------
Net interest income 167,329 159,496 5 124,079 35
Provision for loan
losses 6,900 8,000 (14) 6,900 0
----------------------------------------------
Net interest income
after provision for
loan losses 160,429 151,496 6 117,179 37
Noninterest income
Deposit charges and
service fees 34,842 36,599 (5) 28,963 20
Other operating income 41,360 33,616 23 26,927 54
Net investment
securities gains (136) 0 0 0 0
----------------------------------------------
Total noninterest
income 76,066 70,215 8 55,890 36
----------------------------------------------
Total Revenues 243,395 229,711 6 179,969 35
---- -----
Noninterest expense
Salaries and benefits 82,082 78,446 5 60,145 36
Occupancy 20,488 16,102 27 12,098 69
Furniture and equipment 21,226 18,995 12 15,105 41
Office 9,186 8,643 6 6,916 33
Marketing 5,276 4,910 7 4,861 9
Other 33,863 33,783 0 26,796 26
----------------------------------------------
Total noninterest
expenses 172,121 160,879 7 125,921 37
----------------------------------------------
Income before income
taxes 64,374 60,832 6 47,148 37
Provision for federal
and state income taxes 21,484 20,258 6 15,398 40
----------------------------------------------
Net income $42,890 $40,574 6% $31,750 35%
==============================================
Net income per common
and common equivalent
share:
Basic $0.63 $0.60 5% $0.48 31%
----------------------------------------------
Diluted $0.60 $0.57 5 $0.45 33
----------------------------------------------
Average common and
common equivalent
shares outstanding:
Basic 68,318 67,548 1 65,995 4
----------------------------------------------
Diluted 71,785 71,505 0 70,033 3
----------------------------------------------
Cash dividends, common
stock $0.17 $0.15 10% $0.15 10%
==============================================
Return on average assets 1.02% 1.03% 1.09%
Return on average equity 17.94 18.32 19.00
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
----------------------------------------------------------------------
March 31, December 31,
------------------------
(dollars in thousands) 2003 2002
----------------------------------------------------------------------
Assets
Cash and due from banks $832,821 $811,434
Federal funds sold 61,000 0
------------------------
Cash and cash equivalents 893,821 811,434
Loans held for sale 55,230 96,920
Trading securities 205,631 326,479
Securities available for sale 8,852,908 7,806,779
Securities held to maturity 927,562 763,026
(market value 03/03-$957,414;
12/02-$791,889)
Loans 5,993,427 5,822,589
Less allowance for loan losses 94,731 90,733
------------------------
5,898,696 5,731,856
Bank premises and equipment, net 556,945 499,189
Other assets 407,330 368,298
------------------------
$17,798,123 $16,403,981
========================
Liabilities
Deposits:
Demand:
Interest-bearing $6,097,976 $5,635,351
Noninterest-bearing 3,626,661 3,243,091
Savings 3,331,131 2,861,677
Time 3,176,133 2,808,722
------------------------
Total deposits 16,231,901 14,548,841
Other borrowed money 109,622 391,641
Other liabilities 303,039 345,489
Trust Capital Securities - Commerce Capital
Trust I 0 0
Convertible Trust Capital Securities -
Commerce Capital Trust II 200,000 200,000
Long-term debt 0 0
------------------------
16,844,562 15,485,971
Stockholders' Equity
Common stock, 69,071,627 shares issued
(68,043,171 shares in 2002) 69,072 68,043
Capital in excess of par or stated value 565,246 538,795
Retained earnings 231,280 199,604
Accumulated other comprehensive income 93,208 113,614
------------------------
958,806 920,056
Less treasury stock, at cost, 286,358 shares
(209,794 shares in 2002) 5,245 2,046
------------------------
Total stockholders' equity 953,561 918,010
------------------------
$17,798,123 $16,403,981
========================
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
----------------------------------------------------------------------
Three Months Ended
March 31,
---------------------------
(dollars in thousands, except per share
amounts) 2003 2002 % Change
--------------------------------------------------- -------- ---------
Interest income
Interest and fees on loans $93,121 $81,823 14%
Interest on investments 113,661 86,217 32
Other interest 79 164 (52)
-------- -------- ---------
Total interest income 206,861 168,204 23
-------- -------- ---------
Interest expense
Interest on deposits:
Demand 12,397 12,908 (4)
Savings 6,355 7,078 (10)
Time 16,846 21,281 (21)
-------- -------- ---------
Total interest on deposits 35,598 41,267 (14)
Interest on other borrowed money 914 426 115
Interest on long-term debt 3,020 2,432 24
-------- -------- ---------
Total interest expense 39,532 44,125 (10)
-------- -------- ---------
Net interest income 167,329 124,079 35
Provision for loan losses 6,900 6,900 0
-------- -------- ---------
Net interest income after provision for
loan losses 160,429 117,179 37
Noninterest income
Deposit charges and service fees 34,842 28,963 20
Other operating income 41,360 26,927 54
Net investment securities gains (136) 0 0
-------- -------- ---------
Total noninterest income 76,066 55,890 36
-------- -------- ---------
Total Revenues 243,395 179,969 35
----
Noninterest expense
Salaries and benefits 82,082 60,145 36
Occupancy 20,488 12,098 69
Furniture and equipment 21,226 15,105 41
Office 9,186 6,916 33
Marketing 5,276 4,861 9
Other 33,863 26,796 26
-------- -------- ---------
Total noninterest expenses 172,121 125,921 37
-------- -------- ---------
Income before income taxes 64,374 47,148 37
Provision for federal and state
income taxes 21,484 15,398 40
-------- -------- ---------
Net income $42,890 $31,750 35%
======== ======== =========
Net income per common and common
equivalent share:
Basic $0.63 $0.48 31%
-------- -------- ---------
Diluted $0.60 $0.45 33
-------- -------- ---------
Average common and common equivalent
shares outstanding:
Basic 68,318 65,995 4
-------- -------- ---------
Diluted 71,785 70,033 3
-------- -------- ---------
Cash dividends, common stock $0.17 $0.15 10%
======== ======== =========
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