Commerce Bancorp Inc. earnings up 17%.CHERRY HILL, N.J.--(BUSINESS WIRE)--Jan. 14, 1997--Commerce Bancorp Inc. (NYSE:CBH) reported record earnings, and increased deposits, assets and loans for 1996, it was announced Tuesday by Vernon W. Hill II, chairman of the multi-bank holding company. Earnings for the fourth quarter of 1996 totaled $7.8 million, up $1.6 million, or 26% over net income of $6.1 million for the fourth quarter of 1995. On a fully diluted per share basis, net income for the fourth quarter of 1996 was 58 cents compared to 50 cents for the fourth quarter of 1995. After giving effect to a 5% stock dividend declared by the company on Dec. 17, 1996, the adjusted per share results for the fourth quarter of 1996 were 55 cents compared to 47 cents for the fourth quarter of 1995, a 17% increase. Fully diluted net income per share for 1996 was $2.16 before the SAIF SAIF See: Savings Association Insurance Fund adjustment and $2.09 after the adjustment, compared to $1.96 for
1995. Net income for 1996 exceeded $26.6 million, up $3.1 million, or
13% over 1995.Earnings and earnings per share for 1996 were impacted by the imposition of a historic, one-time special assessment in the third quarter to recapitalize the Savings Association Insurance Fund (SAIF). This assessment impacted net income by approximately $850 thousand after the effect of income taxes. After giving effect to the 5% stock dividend declared by the company on Dec. 17, 1996, fully diluted net income per share was $1.98, compared to $1.85 for 1995. In announcing the earnings, Chairman Hill said, "Our retail approach to banking continues to produce growth in low-cost core deposits which drive our operating results. We look forward to a strong 1997, including our recently consummated and pending acquisitions." Total deposits increased to $2.573 billion, a $348 million increase or 16% over 1995 deposits of $2.225 billion. Total assets exceeded $2.861 billion, up from $2.416 billion a year ago, an 18% increase. Emphasizing its role as a growth retailer, Commerce reported "same-store core deposit growth" at Dec. 31, 1996 of 10.47% compared to a year ago. Loans increased 21% to $1.096 billion, reflecting a strong commitment to the credit needs of Metropolitan Philadelphia, and the results of two home equity loan promotions. Non-performing assets at Dec. 31, 1996 totaled $17.2 million, or .60% of total assets, versus $19.1 million, or .79% of total assets a year ago. Commerce recently completed the acquisition of four insurance brokerage agencies in Southern New Jersey: Keystone National Companies Inc, Buckelew & Associates, Chesley & Cline Inc., and The Morrissey Agency. The combined firm, Commerce National Insurance Services Inc., will offer a full range of commercial, personal and employee benefit services and will be one of the largest insurance agencies in New Jersey. Commerce also previously announced an agreement to acquire Independence Bancorp Inc. (NASDAQ Symbol: IBNJ) a $375 million community bank headquartered in Ramsey, N.J. The acquisition received shareholders' approval by each company on Jan. 8, 1997 and is expected to become effective Jan. 21, 1997. The combined organization will have approximately $3.2 billion in assets, over $3 billion in deposits, and 67 branch offices throughout New Jersey and Metropolitan Philadelphia. During 1996, Commerce Bancorp Inc. opened nine branch offices. The company plans to open 12 to 15 additional branch offices in 1997 as it moves toward its previously announced goal of 100 branch offices and $5 billion in assets by the end of 1999. -0-
Commerce Bancorp Inc.
Selected Consolidated Financial Data
(unaudited)
Three Months Ended
Dec. 31,
---------------------------------
%
1996 1995 Change
------- -------- --------
(dollars in thousands)
Income Statement Data:
Net interest income $29,146 $24,803 18%
Provision for loan losses 824 582 42
Noninterest income 9,882 6,621 49
Noninterest expense 26,124 21,211 23
Net income 7,760 6,149 26
Per Share Data:
Before 5% Stock Dividend
Net income - primary $ 0.62 $ 0.52 19%
Net income - fully diluted
before SAIF -- -- --
Net income - fully diluted
after SAIF 0.58 0.50 16
Book value - primary -- -- --
Book value - fully diluted -- -- --
Weighted average shares outstanding:
(in thousands)
Primary 12,312 11,640 --
Fully diluted 13,004 12,228 --
After 5% Stock Dividend
Net income - primary $ 0.59 $ 0.49 20%
Net income - fully diluted
before SAIF -- -- --
Net income - fully diluted
after SAIF 0.55 0.47 17
Book value - primary -- -- --
Book value - fully diluted -- -- --
Weighted average shares outstanding:
(in thousands)
Primary 12,956 12,279 --
Fully diluted 13,683 12,895 --
Performance Ratios:
Return on average assets 1.11 % 1.03 % --
Return on average total
stockholders' equity 17.52 15.66 --
12 Months Ended
Dec. 31,
--------------------------------
%
1996 1995 Change
------ ------- ------
(dollars in thousands)
Income Statement Data:
Net interest income $108,506 $95,310 14%
Provision for loan losses 2,997 2,215 35
Noninterest income 30,014 21,492 40
Noninterest expense 94,071 77,693 21
Net income 26,625 23,485 13
Per Share Data:
Before 5% Stock Dividend
Net income - primary $ 2.18 $ 2.03 7%
Net income - fully diluted
before SAIF 2.16 1.96 10
Net income - fully diluted
after SAIF 2.09 1.96 7
Book value - primary $14.54 $14.14 3%
Book value - fully diluted 13.48 13.25 2
Weighted Average Shares Outstanding:
(in thousands)
Primary 11,918 11,278 --
Fully diluted 12,715 11,935 --
After 5% Stock Dividend
Net income - primary $ 2.08 $ 1.92 8%
Net income - fully diluted
before SAIF 2.05 1.85 11
Net income - fully diluted
after SAIF 1.98 1.85 7
Book value - primary $13.84 $13.40 3%
Book value - fully diluted 12.84 12.56 2
Weighted Average Shares Outstanding:
(in thousands)
Primary 12,557 11,912 --
Fully diluted 13,394 12,602 --
Balance Sheet Data:
Total assets $2,861,952 $2,415,894 18%
Loans (net) 1,081,830 894,195 21
Allowance for loan losses 14,339 13,320 8
Securities available for sale 725,887 520,314 40
Securities held to maturity 723,311 682,702 6
Federal funds sold 12,950 29,550 (56)
Total deposits 2,573,405 2,225,098 16
Long-term debt 26,333 27,359 (4)
Stockholders' equity 181,353 162,020 12
Capital:
Stockholders' equity to total
assets 6.34 % 6.71 % --
Risk-based capital ratios:
Tier 1 12.75 13.02 --
Total capital 15.40 16.06 --
Leverage ratio 6.44 6.54 --
Performance Ratios:
Return on average assets 1.02 % 1.00 % --
Return on average total stockholders'
equity 16.08 16.20 --
The following summary presents information regarding non-performing
loans and assets as of Dec. 31, 1996 and the preceding four
quarters: (dollar amounts in thousands)
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
1996 1996 1996 1996 1995
-------- -------- -------- --------- --------
Non-accrual loans:
Commercial $757 $1,066 $1,000 $701 $629
Consumer 747 979 827 794 853
Real estate:
Construction 2,156 2,196 1,687 1,787 1,787
Mortgage 4,927 4,744 5,015 5,054 4,708
-------- ------- ------- ------- --------
Total non-
accrual loans 8,587 8,985 8,529 8,336 7,977
-------- ------- ------- ------- --------
Restructured loans
Commercial 21 21 22 144 161
Consumer 29 29 59 60 60
Real Estate:
Construction -- -- -- -- --
Mortgage 481 500 -- 84 301
-------- ------- ------- ------- --------
Total restructured
loans 531 550 81 288 522
-------- ------- ------- ------- --------
Total non-
performing
loans 9,118 9,535 8,610 8,624 8,499
-------- ------- ------- ------- --------
Other real
estate 8,032 7,422 7,721 8,241 10,561
-------- ------- ------- ------- --------
Total non-
performing
assets 17,150 16,957 16,331 16,865 19,060
-------- ------- ------- ------- --------
Loans past due 90
days or more and
still accruing 249 142 427 163 126
-------- ------- ------- ------- --------
Total non-performing
assets and loans past
due 90 days or
more $17,399 $17,099 $16,758 $17,028 $19,186
======= ======= ======= ======= =======
Total non-performing
loans as a percentage
of total period-end
loans 0.83% 0.90% 0.83% 0.92% 0.94%
Total non-performing
assets as a
percentage of total
period-end
assets 0.60% 0.63% 0.63% 0.68% 0.79%
Total non-performing
assets and loans past
due 90 days or more
as a percentage of
total period-
end assets 0.61% 0.63% 0.64% 0.69% 0.79%
Allowance for loan
losses as a
percentage of total
non-performing
loans 157% 149% 159% 156% 157%
Allowance for loan
losses as a
percentage of
total period-
end loans 1.31% 1.34% 1.33% 1.43% 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 9% 9% 10% 10% 11%
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 Year
Ended Ended
-------- --------
12/31/96 12/31/95
-------- --------
Balance at beginning of period $13,320 $12,036
Provisions charged to operating expenses 2,997 2,215
------ ------
16,317 14,251
Recoveries on loans charged-off:
Commercial 186 154
Consumer 145 144
Real estate 95 292
------ ------
Total Recoveries 426 590
Loans charged-off:
Commercial (727) (595)
Consumer (748) (580)
Real estate (929) (346)
------- -------
Total charged-off (2,404) (1,521)
------- -------
Net Charge-offs (1,978) (931)
------- -------
Balance at end of period $14,339 $13,320
======= =======
Net charge-offs as a percentage of average
loans outstanding 0.20 % 0.11 %
CONTACT: Commerce Bancorp, Cherry Hill Vernon W. Hill II, chairman and president or C. Edward Jordan, Jr. executive VP, 609/751-9000 |
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