Commerce Bancorp Earnings Up 21%.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 14, 1998--Commerce Bancorp Inc. (NYSE NYSE See: New York Stock Exchange :CBH CBH cutaneous basophil hypersensitivity. ) reported increased earnings, assets, loans and deposits for the first quarter of 1998, it was announced Tuesday Tuesday: see week. 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. Net income for the first quarter of 1998 totaled $11.4 million, up $2.0 million, or 21% over net income of $9.4 million for the first quarter of 1997. On a per share basis, 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. net income for the first quarter of 1998 was $.61, up 15% over the $.53 recorded for the first quarter a year ago. Return on equity for the first quarter of 1998 was 17.29%. In announcing the quarterly results, Chairman Hill said, "We continue to sustain our record of significant deposit growth in a no growth industry. This deposit growth momentum continues to drive our profitability." Commerce National Insurance Services continues to extend its presence in the markets served by Commerce and contributed favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to first quarter results. Also during the first quarter, the acquisition of A.H. Williams & Co. Inc., a major public finance and financial advisory firm headquartered in 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. , was completed. A.H. Williams was combined with Commerce Capital Investment Services to create Commerce Capital Markets Inc., the region's preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae public finance firm. The acquisition will be accretive to earnings in 1998. Total deposits increased to $3.751 billion, a $679 million increase, or 22% over deposits of $3.072 billion. Total assets exceeded $4.158 billion, up from $3.345 billion a year ago, a 24% increase. Emphasizing its role as a growth retailer, Commerce reported "same-store core deposit growth" at March 31, 1998 of 13.1% compared to a year ago. Loans increased 12% to $1.447 billion from a year ago, reflecting a strong commitment to the credit needs of the communities served by Commerce. Non-performing assets at March 31, 1998 totaled $17.0 million, or 0.41% of total assets, versus $18.8 million, or 0.56% of total assets a year ago. 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. at March 31, 1998 increased to $272.5 million, a $68 million increase, or 33% over stockholders' equity of $204.3 million at March 31, 1997. Stockholders' equity to total assets at March 31, 1998 was 6.55% and the company's risk-based capital ratios Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. , Tier 1 and Total Capital, were 16.41% and 18.50%, respectively, and the leverage ratio was 7.86%. During 1998, the company plans to open 15 to 18 additional branch offices in New Jersey, Southeastern south·east n. 1. Abbr. SE The direction or point on the mariner's compass halfway between due south and due east, or 135° east of due north. 2. An area or region lying in the southeast. 3. Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , and Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). as it moves towards its previously announced goal of 175 branch offices and $8 billion in assets by the end of 2002. 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. is a multi-bank holding company headquartered in Cherry Hill, with 76 offices serving Metropolitan Philadelphia and New Jersey. -0-
Commerce Bancorp Inc.
Selected Consolidated Financial Data
(unaudited)
Three Months Ended
March 31,
--------------------------------
%
1998 1997 Change
------- ------- -------
(dollars and shares in thousands)
Income Statement Data:
Net interest income $ 39,760 $ 34,466 15%
Provision for loan losses 1,210 1,626 (26)
Noninterest income 19,888 12,949 54
Noninterest expense 40,695 31,206 30
Net income 11,447 9,434 21
------- ---------- -------
Per Share Data:
Net income - Basic $ 0.65 $ 0.57 14%
Net income - Diluted 0.61 0.53 15
------- --------- -------
Book value - Basic $15.16 $12.17 25%
Book value - Diluted 14.50 11.51 26
------- --------- -------
Weighted average shares outstanding:
Basic 17,509 16,363
Diluted 18,750 17,684
Balance Sheet Data:
Total assets $4,158,670 $3,345,298 24%
Loans (net) 1,446,824 1,286,235 12
Allowance for loan losses 21,976 19,544 12
Securities available for sale 1,289,115 812,418 59
Securities held to maturity 1,028,760 864,132 19
Total deposits 3,751,445 3,072,459 22
Long-term debt 25,051 26,077 (4)
Trust preferred securities 57,500 0
Stockholders' equity 272,456 204,321 33
Capital:
Stockholders' equity to
total assets 6.55% 6.11%
Risk-based capital ratios:
Tier 1 16.41 12.65
Total capital 18.50 15.17
Leverage Ratio 7.86 6.58
Performance Ratios:
Return on average assets 1.13% 1.17%
Return on average total stockholders'
equity 17.29 18.26
-0-
The following summary presents information regarding non-performing
loans and assets as of March 31, 1998 and the preceding four
quarters: (dollar amounts in thousands)
March 31, Dec. 31, Sept. 30, June 30, March 31,
1998 1997 1997 1997 1997
------- -------- -------- -------- --------
Non-accrual loans:
Commercial $1,764 $1,816 $1,920 $1,057 $1,349
Consumer 944 703 893 1,254 1,109
Real estate:
Construction 393 1,345 2,006 2,155 2,155
Mortgage 7,742 7,706 7,533 5,818 6,074
-------- ------- ------- ------- --------
Total non-
accrual loans 10,843 11,570 12,352 10,284 10,687
-------- ------- ------- ------- --------
Restructured loans
Commercial 19 19 20 20 21
Consumer -- -- -- -- --
Real Estate:
Construction -- -- -- -- --
Mortgage 114 -- -- -- --
-------- -------- ------- ------- --------
Total restructured
loans 133 19 20 20 21
-------- -------- ------- ------- --------
Total non-
performing
loans 10,976 11,589 12,372 10,304 10,708
-------- -------- ------- ------- --------
Other real
estate 6,029 5,845 6,673 7,035 8,042
-------- -------- ------- ------- --------
Total non-
performing
assets 17,005 17,434 19,045 17,339 18,750
-------- -------- ------- ------- --------
Loans past due
90 days or more
and still
accruing 308 226 423 458 300
-------- -------- ------- ------- --------
Total non-
performing assets
and loans past
due 90 days or
more $17,313 $17,660 $19,468 $17,797 $19,050
======= ======= ======= ======= =======
Total non-
performing
loans as a
percentage
of total
period-end
loans 0.75% 0.82% 0.89% 0.76% 0.82%
Total non-
performing
assets as a
percentage
of total
period-end
assets 0.41% 0.44% 0.50% 0.48% 0.56%
Total non-
performing
assets and
loans past
due 90 days
or more as a
percentage of
total period-
end assets 0.42% 0.45% 0.51% 0.49% 0.57%
Allowance for
loan losses as
a percentage
of total non-
performing
loans 200% 183% 169% 198% 183%
Allowance for
loan losses as
a percentage
of total period-
end loans 1.50% 1.51% 1.50% 1.50% 1.50%
Total non-
performing
assets and loans
past due 90 days
or more as a
percentage of
stockholders'
equity and
allowance for
loan losses 6% 6% 8% 7% 9%
-0-
The following table presents, for the periods indicated, an analysis
of the allowance for loan losses and other related data: (dollar
amounts in thousands)
Three Months Ended Year Ended
------------------ ----------
03/31/98 03/31/97 12/31/97
----------- ----------- ----------
Balance at beginning
of period $21,261 $17,975 $17,975
Provisions charged to
operating expenses 1,210 1,626 4,668
----------- ----------- ----------
22,471 19,601 22,643
Recoveries on loans
charged-off:
Commercial 45 53 348
Consumer 94 72 406
Real Estate 9 18 144
----------- ----------- ----------
Total recoveries 148 143 898
Loans charged-off:
Commercial (189) (42) (964)
Consumer (271) (158) (1,170)
Real estate (183) 0 (146)
----------- ----------- ----------
Total charged-off (643) (200) (2,280)
----------- ----------- ----------
Net charge-offs (495) (57) (1,382)
----------- ----------- ----------
Balance at end of period $21,976 $19,544 $21,261
=========== =========== ==========
Net charge-offs as a
percentage of average
loans outstanding 0.14% 0.02% 0.10%
CONTACT: Commerce Bancorp Inc. Vernon W. Hill II, chairman and president, 609/751-9000 or C. Edward Jordan Edward Jordan was typical of the violent but short-lived pirates of his time. An Irish rebel, in 1809, desperate to avoid debts, he slaughtered the crew of a merchant who came to seize his ship but was captured a few weeks later. Jr., executive VP, 609/751-9000 KEYWORDS Keywords are the words that are used to reveal the internal structure of an author's reasoning. While they are used primarily for rhetoric, they are also used in a strictly grammatical sense for structural composition, reasoning, and comprehension. : PENNSYLVANIA NEW JERSEY DELAWARE INDUSTRY KEYWORDS: BANKING EARNINGS Today's News On The Net - Business Wire's full file on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the with Hyperlinks to your home page. URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com |
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