Commerce Bancorp Net Income up 46%; Deposits up $6.3 Billion.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. -- 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 2004, announced 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.
SECOND QUARTER FINANCIAL HIGHLIGHTS
June 30, 2004
%
Increase
--------
-- Total Assets: $ 26.7 Billion 35 %
-- Total Deposits: $ 24.1 Billion 35 %
-- Total (Net) Loans: $ 8.2 Billion 31 %
-- Total Revenues: $ 337.0 Million 28 %
-- Net Income: $ 66.2 Million 46 %
-- Net Income Per Share: $ .79 25 %
------- --------
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. Strong deposit growth and positive operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. produced another record quarter of performance." Financial highlights were: --Net income increased 46% for the second quarter of 2004 to $66.2 million. --Earnings per share rose 25% for the second quarter, despite the addition of 5.0 million shares from our secondary offering in September September: see month. 2003, and 3.8 million shares assuming conversion of our Trust Capital Securities. Assuming conversion of our Trust Capital Securities reduced earnings per share by $.01 for the second quarter. --Revenue growth of 28% exceeded expense growth of 21%. --The net interest margin for the second quarter decreased 10 basis points from the first quarter to 4.29%. The decrease was caused primarily by a decrease in yield in the investment portfolio related to the spike A burst of extra voltage in a power line that lasts only a few nanoseconds. See power surge, power swell, sag and surge suppression. (jargon) spike - To defeat a selection mechanism by introducing a (sometimes temporary) device that forces a specific result. in mortgage-backed security Noun 1. mortgage-backed security - a security created when a group of mortgages are gathered together and bonds are sold to other institutions or the public; investors receive a portion of the interest payments on the mortgages as well as the principal payments; prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. experienced in the second quarter. The Company projects the net interest margin will expand in the third and fourth quarters of 2004, and should meet or exceed the 4.39% margin from the first quarter. --Core deposits grew 36% for the prior 12 months, including $1.4 billion in growth during the second quarter of 2004 and $3.3 billion for the first six months of 2004. --Average total deposits grew 10% on a linked quarter basis and 41% year over year. --Annualized deposit growth per branch was $26 million, and comparable store deposits grew 25%. --The Company opened 11 new offices in the second quarter, increasing our total to 289, in the following areas:
Metropolitan New York 10
Metropolitan Philadelphia 1
------
11
--The company expects to meet or exceed the current First Call E.P.S. consensus projections of $.83 for the third quarter and $3.22 for 2004.
Regional Deposit Growth
-----------------------
# of $ % Annualized
Offices 6/30/04 6/30/03 Increase Increase Growth/Branch
------- ------- ------- -------- -------- -------------
(dollars in millions)
Northern New
Jersey 106 $8,254 $6,406 $1,848 29% $22
New York City 31 2,534 1,001 1,533 153 71
Long Island/
NY State 18 1,594 585 1,009 172 68
------ -------- ------- -------- -------- -------------
Metro New York 155 $12,382 $7,992 $4,390 55% $37
--------
Metro
Philadelphia 134 $11,680 9,795 1,885 19 14
------ ------- -------- --------- ------- -------------
Total 289 $24,062 $17,787 $6,275 35% $26
Income Statement
----------------
Three Months Ended Six Months Ended
June 30, 2004 June 30, 2004
----------------------------------------------------------
2004 2003 % Increase 2004 2003 % Increase
----------------------------------------------------------
(dollars in thousands, except per share data)
Total
Revenues: $337,024 $262,674 28% $653,468 $506,069 29%
Total
Expenses: 226,255 187,678 21 438,505 359,799 22
Net Income: 66,235 45,317 46 128,210 88,207 45
Net Income
Per Share: $.79 $.63 25% $1.54 $1.23 25%
-------- --------- ---------- --------- --------- --------
Balance Sheet
-------------
Linked Quarter
----------------
6/30/04 6/30/03 % Change 3/31/04 $ Increase % Increase
-----------------------------------------------------------
(dollars in millions)
Total
Assets: $26,739 $19,837 35% $24,955 $1,783 7%
Total Loans
(Net): 8,206 6,279 31 7,671 535 7
Core
Deposits: 23,109 17,002 36 21,706 1,402 6
Total
Deposits: 24,062 17,787 35 22,883 1,179 5
Shareholder Returns
-------------------
June 30, 2004
---------------
Commerce S & P Index
---------- -------------
1 year +50% 19%
5 years +24% -2%
10 years +28% 12%
Growth Targets Due to our continued strong growth trends, we offer the following growth targets:
Last 5-Year Actual %
Growth Targets Growth % Second Quarter 2004
-------------- ------------- --------------------
Total Deposits: 25% 39% 35%
-----
Comp Store Deposits: 18 23% 25
-----
Total Revenue: 25 33% 28
-----
Net Income: 25 34% 46
-----
Earnings Per Share: 20 26% 25
-----
Total Deposits The Company's dramatic deposit growth continues with total deposits at June June: see month. 30, 2004 of $24.1 billion, a $6.3 billion increase or 35% over total deposits of $17.8 billion a year ago, including $1.2 billion of growth in the second quarter.
6/30/04 6/30/03 $ Increase %Increase
--------- --------- ------------ -----------
(dollars in millions)
Core Deposits $23,109 $17,002 $6,106 36%
-----
Total Deposits 24,062 17,787 6,275 35%
-----
Core Deposits Core deposit growth by type of account is as follows:
2nd Quarter
Cost of Annual
6/30/04 6/30/03 Funds Growth %
--------- --------- ------------ ----------
(dollars in millions)
Demand $5,623 $4,185 .00% 34%
Interest Bearing Demand 9,632 6,616 .78 46
Savings 5,387 3,787 .73 42
Time 2,467 2,414 1.82 2
--------- --------- ------------ ----------
Total Core Deposits: $23,109 $17,002 .70% 36%
--------- --------- ------------ ----------
Core deposit growth by type of customer is as follows:
Annual Comp Store
6/30/04 % Total 6/30/03 % Total Growth % Growth %
--------- --------- -------- ------- -------- -----------
(dollars in millions)
Consumer $11,065 48% $8,619 51% 28% 17%
Commercial 8,402 36 6,157 36 36 25
Government 3,642 16 2,226 13 64 53
--------- --------- -------- ------- -------- -----------
Total $23,109 100% 17,002 100% 36% 25%
--------- -------- -------- -----------
Core deposits, excluding government deposits, grew $4.7 billion or 32% over the year ago period. Comparable Store Deposit Growth Comparable store deposit growth is measured as the year over year percentage increase in core deposits for branches open two years or more at the balance sheet date. Comparable store deposit growth by market served is as follows:
# of Comp Store
Stores Increase
-------- ------------
Metro Philadelphia 110 20%
Northern New Jersey 76 23
New York City 6 59
Long Island/NY State 4 146
-------- ------------
Total 196 25%
Net Income and Earnings Per Share Net income totaled $66.2 million for the second quarter of 2004, up $20.9 million or 46% over net income of $45.3 million for the second quarter of 2003. 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 $.79 compared to $.63 for the second quarter of 2003, a 25% increase.
Three Months Ended Six Months Ended
-------------------- ------------------
% %
6/30/04 6/30/03 Increase 6/30/04 6/30/03 Increase
------- ------- -------- ------- ------- --------
(dollars in thousands, except per share data)
Net Income $66,235 $45,317 46% $128,210 $88,207 45%
----- -----
Earnings Per
Share $.79 $.63 25% $1.54 $1.23 25%
----- -----
For the first six months of 2004, net income totaled $128.2 million, up $40.0 million or 45% over net income of $88.2 million for the first six months of 2004. On a diluted per share basis, net income for the first six months of 2004 was $1.54 compared to $1.23 for the first six months of 2003, a 25% increase. Total Revenues
Three Months Ended Six Months Ended
-------------------- ------------------
% %
6/30/04 6/30/03 Increase 6/30/04 6/30/03 Increase
-------- -------- -------- -------- -------- --------
(dollars in thousands, except per share data)
Total
Revenues $337,024 $262,674 28% $653,468 $506,069 29%
Revenue Per
Share $16.35 $14.57 12% $15.92 $14.07 13%
Net Interest Income and Net Interest Margin Net interest income for the second quarter totaled $244.7 million, a 36% increase over the $179.3 million recorded a year ago. For the first six months of 2004 the Company recorded net interest income of $475.0 million, a 37% increase over the $346.6 million earned in the second quarter of 2003. The increase in net interest income in both the quarter and first six months 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 second quarter of 2004 was 4.29% down 10 basis points from the 4.39% margin for the first quarter of 2004. The decrease in the margin was attributed primarily to a decrease in the yield on the investment portfolio of 10 basis points, which was caused by the spike in mortgaged-backed security prepayments experienced in the second quarter. The Company projects the net interest margin will expand in the third and fourth quarters of 2004, and should meet or exceed the 4.39% margin from the first quarter. On a tax equivalent basis the Company recorded $249.2 million in net interest income in the second quarter of 2004, an increase of $65.9 million or 36% over the second quarter of 2003. Net interest income on a tax equivalent basis of $483.6 million was earned in the first six months of 2004, an increase of $129.2 million or 36% over the first six months of 2003. Net Interest Income and Rate/Volume Analysis As shown below, the increase in net interest income was due to volume increases in the Company's earning assets, which were fueled by the Company's rapid growth of low-cost core deposits.
Net Interest Income
Quarter Ended Volume Rate Total %
June 30 Increase Change Increase Increase
------------- --------- -------- ---------- ----------
(dollars in thousands)
2004 vs. 2003 $72,797 ($6,873) $65,924 36%
First Six Months $142,325 ($13,124) $129,201 36%
Non-Interest Income Non-interest income for the second quarter of 2004 increased to $92.3 million from $83.4 million a year ago, an 11% increase. On a linked quarter basis, non-interest income increased 7%, primarily due to increased deposit charges and service fees. The growth in non-interest income for the second quarter and the first six months is 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 Six Months Ended
-------------------- ------------------
% %
6/30/04 6/30/03 Increase 6/30/04 6/30/03 Increase
------- ------- -------- ------- ------- --------
(dollars in thousands)
-------------------------------------------------
Deposit Charges
& Service Fees $52,717 $38,765 36% $98,198 $73,607 33%
Other Operating
Income:
Insurance 18,570 17,190 8 36,906 33,245 11
Capital Markets 6,622 9,695 (32) 16,349 19,698 (17)
Loan Brokerage
Fees 3,725 7,545 (51) 6,778 15,468 (56)
Other 10,006 8,958 12 19,217 16,337 18
--------------------------------------------------
Total Other $38,923 $43,388 (10) $79,250 $84,748 (6)
Net Investment
Securities Gains 635 1,217 (48) 1,059 1,081 (2)
--------------------------------------------------
Total Non-Interest
Income $92,275 $83,370 11% $178,507 $159,436 12%
Commerce Insurance Services Total revenues for the Company's insurance division were $18.6 million for the second quarter of 2004 compared to $17.2 million for the second quarter of 2003, an 8% increase. Total revenues for the first six months of 2004 were $36.9 million an 11% increase over the $33.2 million for the 2003 period. Commerce Capital Markets Total revenues for the Company's capital markets division were $6.6 million for the second quarter of 2004 compared to $9.7 million for the second quarter of 2003, a 32% decrease. Total revenues for the first six months of 2004 were $16.3 million a 17% decrease from the $19.7 million for the 2003 period. The decrease in revenue in the second quarter was related primarily to volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in interest rates and the resulting impact on the trading and sales function. Non- non- word element [L.]not . non- pref. Not: noninvasive. Interest Expenses Non-interest expenses for the second quarter of 2004 were $226.3 million, up 21% from $187.7 million a year ago. The Company continued to experience positive operating leverage in the second quarter, as revenue growth of 28% exceeded non-interest expense growth of 21%. One important factor influencing the growth in non-interest expenses is that 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. significant start-up Start-up The earliest stage of a new business venture. expenses related to the 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. and Long Island markets in prior years. As a result, the impact of the growth in non-interest expenses in these markets is declining in 2004. Lending Loans increased 31% to $8.3 billion, from the second quarter of 2003, 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. 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
-------------------------------
6/30/04 6/30/03 Growth Rate % of Total Growth
--------- --------- ----------- -----------------
(dollars in millions)
Metro Philadelphia $5,352 $4,177 28% 60%
Northern New Jersey 2,180 1,954 12 12
New York/Long Island 798 248 222 28
-------- -------- ------ -----
Total: $8,330 $6,379 31% 100%
Loan Composition
------------------
6/30/04 % of Total 6/30/03 % of Total $ Increase %Increase
------- ---------- ------- ---------- ---------- ---------
(dollars in thousands)
Commercial $2,158 26% $1,686 27% $472 28%
Owner-
Occupied 1,805 22% 1,486 23% 319 21%
------- ---------- ------- ---------- ---------- ---------
Total
Commercial $3,963 48% $3,172 50% $791 25%
Consumer 2,885 34% 2,111 33% 774 37%
Commercial
Real Estate 1,482 18% 1,096 17% 387 35%
------- ---------- ------- ---------- ---------- ---------
Gross Loans $8,330 100% $6,379 100% $1,951
Less:
Reserves (124) (100) (24)
------- ------- ----------
Net
Loans $8,206 $6,279 $1,927 31%
---------
Asset Quality
-------------
Quarter Ended
---------------
6/30/04 3/31/04 12/31/03 6/30/03
------- ------- -------- -------
Non-Performing Assets/Assets .11% .13% .11% .12%
Net Loan Charge-Offs .17% .22% .13% .15%
Loan Loss Reserve/ Gross Loans 1.50% 1.51% 1.51% 1.56%
Non-Performing Loan Coverage 419% 385% 515% 441%
Non-Performing Assets/Capital
and Reserves 2% 2% 2% 2%
Non-performing assets and loans past due 90 days at June 30, 2004 totaled $30.7 million or .11% of total assets, versus $24.5 million, or .12% of total assets a year ago. Investments At June 30, 2004, total investments increased to $15.9 billion. The available for sale and held to maturity portfolios totaled $12.1 billion and $3.8 billion, respectively. The portfolio is comprised primarily of high quality U.S. Government agency and mortgage-backed Mortgage-backed may refer to:
Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. interest rates during the second quarter, the duration of the total portfolio increased to 4.20 years at June 30, 2004 from 2.74 years at March 31, 2004. The yield on the total portfolio was 4.79% at June 30, 2004. Detailed below is information regarding the composition and characteristics of the Company's investment portfolio, excluding trading securities, as of June 30, 2004.
Average Average Average Average
Product Description Amount Yield Book Price Duration Life
----------- ------- ----------- --------- -------
(in millions) (in years)
Mortgage-backed
Securities:
Federal Agencies
Pass Through
Certificates
(AAA Rated) $4,349 4.88% $101.17 4.39 5.58
Collateralized
Mortgage
Obligations
(AAA Rated) 10,226 4.85 100.84 4.04 4.97
Obligations of
State and Political
Subdivisions/Other 1,328 4.01 100.24 4.79 5.56
--------- ------- ----------- --------- -------
Total $15,903 4.79% $100.88 4.20 5.19
The after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. depreciation in the Company's available for sale portfolio was $(122.0) million at June 30, 2004. Linked Quarter Comparison A comparison of financial results for the quarter ended June 30, 2004 to the previous quarter ended March 31, 2004 is as follows: (dollars in thousands, except per share data)
Three Months Ended
--------------------- Linked Quarter
6/30/04 3/31/04 $ Increase % Increase
----------- ----------- ---------- --------------
Total Assets $26,738,671 $24,955,251 $1,783,420 7%
Total Loans
(Net) 8,205,768 7,670,810 534,958 7%
Core Deposits 23,108,553 21,706,134 1,402,419 6%
Total Deposits 24,061,748 22,882,678 1,179,070 5%
Total Revenues 337,024 316,444 20,580 7%
Net Interest
Income 244,749 230,212 14,537 6%
Non-Interest
Income 92,275 86,232 6,043 7%
Non-Interest
Expense 226,255 212,250 14,005 7%
Net Income 66,235 61,975 4,260 7%
----
Net Income Per
Share $.79 $.75 $.04 5%
Capital Resources 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 June 30, 2004 increased to $1.3 billion, a $317.6 million increase, or 31% over stockholders' equity of $1.0 billion at June 30, 2003. As of April 1, 2004 each of the outstanding Convertible Trust Capital Securities became convertible into 0.9478 shares of the Company's common stock. 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 and six months ending June 30, 2004 is shown in the table below:
Return On Equity
------------------
Three Months Ended Six Months Ended
--------------------- -----------------
6/30/04 6/30/03 6/30/04 6/30/03
------- ------- ------- -------
19.86% 17.91% 18.87% 17.92%
The Company's capital ratios at June 30, 2004 were as follows:
Regulatory Guidelines
Commerce "Well Capitalized"
---------- ---------------------
Leverage Ratio 6.11% 5.00%
Tier I 12.47% 6.00%
Total Capital 13.42% 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 June 30, 2004 was 25% compared to the same period a year ago. --New Branch Offices During the second quarter of 2004, the Company opened 11 new branch offices, increasing the total offices opened to 289. 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 130 of its 289 branches. Branches opened during the second quarter were as follows:
Metropolitan New York
-----------------------
Location County
---------- --------
Metuchen/Downtown Middlesex (NJ)
Forest Hills/Queens Blvd. Queens (NY)
Auburndale Queens (NY)
East Brunswick Middlesex (NJ)
Livingston Essex (NJ)
Glen Rock Bergen (NJ)
New Hyde Park Nassau (NY)
Harlem Manhattan (NY)
Victory Blvd. Staten Island (NY)
Brick Ocean (NJ)
Metropolitan Philadelphia
---------------------------
Location County
---------- --------
Skippack Montgomery (PA)
--Commerce Online Commerce continued its leading role in on-line banking by increasing its penetration The successful unauthorized breach of a security perimeter. See penetration test. rate to 39.3%, which is one of the highest 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. . 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,
--------------------------
%
2004 2003 Change
-------- -------- ------
(dollars and shares in
thousands)
Income Statement Data:
Net interest income $244,749 $179,304 36%
Provision for loan losses 10,748 6,900 56
Noninterest income 92,275 83,370 11
Total revenues 337,024 262,674 +28
-------- ----
Noninterest expense 226,255 187,678 21
Net income 66,235 45,317 +46
-------- ----
Per Share Data:
Net income - Basic $0.85 $0.65 31%
Net income - Diluted 0.79 0.63 +25
-------- ----
Book value - Basic
Book value - Diluted, excludes conversion
Book value - Diluted if converted
Revenue per share - Diluted, excludes
conversion $16.35 $14.57 +12%
-------- ----
Weighted Average Shares Outstanding:
Basic 77,980 69,193
Diluted 86,260 72,128
Balance Sheet Data:
Total assets
Loans (net)
Allowance for loan losses
Securities available for sale
Securities held to maturity
Total deposits
Core deposits
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 0.81% 0.95%
Net interest margin 4.29 4.41
Return on average assets 1.03 0.98
Return on average total stockholders'
equity 19.86 17.91
Six Months Ended
June 30,
-------------------------------
%
2004 2003 Change
----------- ----------- ------
(dollars and shares in
thousands)
Income Statement Data:
Net interest income $474,961 $346,633 37%
Provision for loan losses 20,248 13,800 47
Noninterest income 178,507 159,436 12
Total revenues 653,468 506,069 +29
----------- ----
Noninterest expense 438,505 359,799 22
Net income 128,210 88,207 +45
----------- ----
Per Share Data:
Net income - Basic $1.65 $1.28 29%
Net income - Diluted 1.54 1.23 +25
----------- ----
Book value - Basic $16.97 $14.51 17%
Book value - Diluted, excludes
conversion 16.04 13.88 +16
----------- ----
Book value - Diluted if converted 17.65 0.00 -
Revenue per share - Diluted, excludes
conversion $15.92 $14.07 +13%
----------- ----
Weighted Average Shares Outstanding:
Basic 77,572 68,758
Diluted 85,893 71,944
Balance Sheet Data:
Total assets $26,738,671 $19,837,312 +35%
Loans (net) 8,205,768 6,279,305 31
Allowance for loan losses 124,688 99,318 26
Securities available for sale 12,131,104 10,259,811 18
Securities held to maturity 3,772,204 841,752 348
Total deposits 24,061,748 17,787,082 35
----------- -----------
Core deposits 23,108,553 17,002,324 36
----------- -----------
Convertible Trust Capital Securities
- Commerce Capital Trust II 200,000 200,000 -
Stockholders' equity 1,328,115 1,010,490 +31
----
Capital:
Stockholders' equity to total assets 4.97% 5.09%
-----------
Risk-based capital ratios:
Tier I 12.47 11.13
Total capital 13.42 12.12
Leverage ratio 6.11 6.04
Performance Ratios:
Cost of funds 0.80% 1.00%
Net interest margin 4.34 4.50
Return on average assets 1.04 1.00
Return on average total stockholders'
equity 18.87 17.92
The following summary presents information regarding non-performing
loans and assets as of June 30, 2004 and the preceding four quarters
(dollar amounts in thousands).
June March December September June
30, 31, 31, 30, 30,
2004 2004 2003 2003 2003
-------- -------- -------- --------- --------
Non-accrual loans:
Commercial $17,382 $19,701 $6,867 $7,295 $7,049
Consumer 11,675 9,984 9,242 8,295 9,517
Commercial real
estate:
Construction - - 138 - -
Mortgage 675 810 5,494 7,502 5,970
-------- -------- -------- --------- --------
Total non-accrual
loans 29,732 30,495 21,741 23,092 22,536
-------- -------- -------- --------- --------
Restructured loans:
Commercial 1 1 1 2 3
Consumer - - - - -
Commercial real
estate:
Construction - - - - -
Mortgage - - - - -
-------- -------- -------- --------- --------
Total restructured
loans 1 1 1 2 3
-------- -------- -------- --------- --------
Total non-performing
loans 29,733 30,496 21,742 23,094 22,539
-------- -------- -------- --------- --------
Other real estate 653 1,890 1,831 1,670 1,540
-------- -------- -------- --------- --------
Total non-performing
assets 30,386 32,386 23,573 24,764 24,079
-------- -------- -------- --------- --------
Loans past due 90 days
or more and still
accruing 318 696 538 649 434
-------- -------- -------- --------- --------
Total non-performing
assets and loans past
due 90 days or more $30,704 $33,082 $24,111 $25,413 $24,513
======== ======== ======== ========= ========
Total non-performing
loans as a percentage
of total period-end
loans 0.36% 0.39% 0.29% 0.34% 0.35%
Total non-performing
assets as a percentage
of total period-end
assets 0.11% 0.13% 0.10% 0.12% 0.12%
--------
Total non-performing
assets and loans past
due 90 days or more as
a percentage of total
period-end assets 0.11% 0.13% 0.11% 0.12% 0.12%
Allowance for loan
losses as a percentage
of total non-performing
loans 419% 385% 515% 449% 441%
Allowance for loan
losses as a percentage
of total period-end
loans 1.50% 1.51% 1.51% 1.52% 1.56%
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% 2%
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 Six Months Ended Year
--------------------- --------------------- Ended
06/30/04 06/30/03 06/30/04 06/30/03 12/31/03
---------- ---------- ---------- ---------- ----------
Balance at
beginning of
period $117,329 $94,731 $112,057 $90,733 $90,733
Provisions
charged to
operating
expenses 10,748 6,900 20,248 13,800 31,850
---------- ---------- ---------- ---------- ----------
128,077 101,631 132,305 104,533 122,583
Recoveries on
loans charged-
off:
Commercial 104 141 260 345 669
Consumer 101 146 371 277 584
Commercial
real estate 1 - 48 - 11
---------- ---------- ---------- ---------- ----------
Total
recoveries 206 287 679 622 1,264
Loans charged-
off:
Commercial (2,587) (1,197) (4,880) (3,065) (5,601)
Consumer (1,004) (1,390) (1,776) (2,755) (5,950)
Commercial
real estate (4) (13) (1,640) (17) (239)
---------- ---------- ---------- ---------- ----------
Total charge-
offs (3,595) (2,600) (8,296) (5,837) (11,790)
---------- ---------- ---------- ---------- ----------
Net charge-offs (3,389) (2,313) (7,617) (5,215) (10,526)
---------- ---------- ---------- ---------- ----------
Balance at end
of period $124,688 $99,318 $124,688 $99,318 $112,057
========== ========== ========== ========== ==========
Net charge-offs
as a
percentage of
average loans
outstanding 0.17% 0.15% 0.19% 0.17% 0.16%
Net Reserve
Additions $7,359 $4,587 $12,631 $8,585 $21,324
---------- ---------- ---------- ---------- ----------
Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net
Interest Income
(unaudited)
June 2004
------------------------------
Average Average
Balance Interest Rate
------------------------------
(dollars in thousands)
Earning Assets
----------------------
Investment securities
Taxable $14,747,643 $173,678 4.74%
Tax-exempt 290,200 4,465 6.19
Trading 174,578 2,075 4.78
------------ --------- ------
Total investment securities 15,212,421 180,218 4.76
Federal funds sold 62,357 154 0.99
Loans
Commercial mortgages 3,021,768 45,333 6.03
Commercial 1,961,351 25,477 5.22
Consumer 2,767,826 39,079 5.68
Tax-exempt 335,505 6,243 7.48
------------ --------- ------
Total loans 8,086,450 116,132 5.78
------------ --------- ------
Total earning assets $23,361,228 $296,504 5.10%
============
Sources of Funds
----------------------
Interest-bearing liabilities
Savings $5,276,657 $10,216 0.78%
Interest bearing demand 9,643,771 18,729 0.78
Time deposits 2,507,526 11,378 1.82
Public funds 856,683 2,886 1.35
------------ --------- ------
Total deposits 18,284,637 43,209 0.95
Other borrowed money 523,931 1,052 0.81
Long-term debt 200,000 3,020 6.07
------------ --------- ------
Total deposits and interest-bearing
liabilities 19,008,568 47,281 1.00
Noninterest-bearing funds (net) 4,352,660
------------ --------- ------
Total sources to fund earning assets $23,361,228 47,281 0.81
============ --------- ------
Net interest income and
margin tax-equivalent basis $249,223 4.29%
========= ======
Other Balances
----------------------
Cash and due from banks $1,163,942
Other assets 1,419,098
Total assets 25,822,157
Total deposits 23,541,453
------------
Demand deposits (noninterest-bearing) 5,256,816
Other liabilities 222,779
Stockholders' equity 1,333,994
Allowance for loan losses 122,111
March 2004
------------------------------
Average Average
Balance Interest Rate
------------------------------
(dollars in thousands)
Earning Assets
----------------------
Investment securities
Taxable $13,295,903 $159,648 4.83%
Tax-exempt 256,628 3,860 6.05
Trading 161,701 2,065 5.14
------------ --------- ------
Total investment securities 13,714,232 165,573 4.86
Federal funds sold 144,297 340 0.95
Loans
Commercial mortgages 2,793,159 42,782 6.16
Commercial 1,878,353 24,535 5.25
Consumer 2,603,037 36,936 5.71
Tax-exempt 337,313 6,092 7.26
------------ --------- ------
Total loans 7,611,862 110,345 5.83
------------ --------- ------
Total earning assets $21,470,391 $276,258 5.17%
============
Sources of Funds
----------------------
Interest-bearing liabilities
Savings $4,492,847 $7,786 0.70%
Interest bearing demand 8,986,070 15,943 0.71
Time deposits 2,430,589 11,323 1.87
Public funds 968,513 3,320 1.38
------------ --------- ------
Total deposits 16,878,019 38,372 0.91
Other borrowed money 174,746 448 1.03
Long-term debt 200,000 3,020 6.07
------------ --------- ------
Total deposits and interest-bearing
liabilities 17,252,765 41,840 0.98
Noninterest-bearing funds (net) 4,217,626
------------ --------- ------
Total sources to fund earning assets $21,470,391 41,840 0.78
============ --------- ------
Net interest income and
margin tax-equivalent basis $234,418 4.39%
========= ======
Other Balances
----------------------
Cash and due from banks $1,007,182
Other assets 1,129,880
Total assets 23,491,544
Total deposits 21,478,730
------------
Demand deposits (noninterest-bearing) 4,600,711
Other liabilities 253,890
Stockholders' equity 1,384,178
Allowance for loan losses 115,909
June 2003
-------------------------------
Average Average
Balance Interest Rate
-------------------------------
(dollars in thousands)
Earning Assets
----------------------
Investment securities
Taxable $10,026,080 $119,147 4.77%
Tax-exempt 192,892 3,689 7.67
Trading 158,297 2,389 6.05
------------ --------- ------
Total investment securities 10,377,269 125,225 4.84
Federal funds sold 32,095 97 1.21
Loans
Commercial mortgages 2,319,945 37,156 6.42
Commercial 1,552,400 21,587 5.58
Consumer 2,109,143 33,336 6.34
Tax-exempt 264,737 5,338 8.09
------------ --------- ------
Total loans 6,246,225 97,417 6.26
------------ --------- ------
Total earning assets $16,655,589 $222,739 5.36%
============
Sources of Funds
----------------------
Interest-bearing liabilities
Savings $3,477,229 $6,754 0.78%
Interest bearing demand 6,427,333 11,961 0.75
Time deposits 2,313,690 14,093 2.44
Public funds 878,005 3,294 1.50
------------ --------- ------
Total deposits 13,096,257 36,102 1.11
Other borrowed money 278,780 318 0.46
Long-term debt 200,000 3,020 6.06
------------ --------- ------
Total deposits and interest-bearing
liabilities 13,575,037 39,440 1.17
Noninterest-bearing funds (net) 3,080,552
------------ --------- ------
Total sources to fund earning assets $16,655,589 39,440 0.95
============ --------- ------
Net interest income and
margin tax-equivalent basis $183,299 4.41%
========= ======
Other Balances
----------------------
Cash and due from banks $945,600
Other assets 994,784
Total assets 18,498,841
Total deposits 16,734,886
------------
Demand deposits (noninterest-bearing) 3,638,629
Other liabilities 273,183
Stockholders' equity 1,011,992
Allowance for loan losses 97,132
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) June 30, March 31, 2004
------------------------------------------------
2004 Actual $ Change % Change
----------------------------------------------------------------------
Assets
Cash and due from
banks $1,081,459 $971,897 $109,562 11%
Federal funds sold 8,500 56,000 (47,500) (85)
------------------------------------------------
Cash and cash
equivalents 1,089,959 1,027,897 62,062 6
Loans held for sale 41,047 34,934 6,113 17
Trading securities 182,105 234,359 (52,254) (22)
Securities available
for sale 12,131,104 11,972,943 158,161 1
Securities held to
maturity 3,772,204 2,871,593 900,611 31
Loans 8,330,456 7,788,139 542,317 7
Less allowance
for loan losses 124,688 117,329 7,359 6
------------------------------------------------
8,205,768 7,670,810 534,958 7
Reserve % 1.50% 1.51%
Bank premises and
equipment, net 906,455 856,634 49,821 6
Other assets 410,029 286,081 123,948 43
------------------------------------------------
$26,738,671 $24,955,251 $1,783,420 7%
================================================
Liabilities
Deposits:
Demand:
Noninterest-
bearing $5,622,574 $5,092,813 $529,761 10%
Interest-bearing 9,632,178 9,313,838 318,340 3
Savings 5,597,767 4,995,245 602,522 12
Time 3,209,229 3,480,782 (271,553) (8)
------------------------------------------------
Total deposits 24,061,748 22,882,678 1,179,070 5
Core deposits 23,108,553 21,706,134 1,402,419 6
Total other
liabilities 1,348,808 620,017 728,791 118
------------------------------------------------
25,410,556 23,502,695 1,907,861 8
Stockholders' Equity 1,328,115 1,452,556 (124,441) (9)
------------------------------------------------
$26,738,671 $24,955,251 $1,783,420 7%
================================================
----------------------------------------------------------------------
(dollars in thousands) June 30, 2003
----------------------------------
Actual $ Change % Change
----------------------------------------------------------------------
Assets
Cash and due from banks $1,013,885 $67,574 7%
Federal funds sold 0 8,500 0
----------------------------------
Cash and cash equivalents 1,013,885 76,074 8
Loans held for sale 91,285 (50,238) (55)
Trading securities 209,451 (27,346) (13)
Securities available for sale 10,259,811 1,871,293 18
Securities held to maturity 841,752 2,930,452 348
Loans 6,378,623 1,951,833 31
Less allowance for loan losses 99,318 25,370 26
----------------------------------
6,279,305 1,926,463 31
---------
Reserve % 1.56%
Bank premises and equipment, net 701,246 205,209 29
Other assets 440,577 (30,548) (7)
----------------------------------
$19,837,312 $6,901,359 35%
==================================
Liabilities
Deposits:
Demand:
Noninterest-bearing $4,185,186 $1,437,388 34%
Interest-bearing 6,616,309 3,015,869 46
Savings 3,786,798 1,810,969 48
Time 3,198,789 10,440 0
----------------------------------
Total deposits 17,787,082 6,274,666 35
Core deposits 17,002,324 6,106,229 36
---------
Total other liabilities 1,039,740 309,068 30
----------------------------------
18,826,822 6,583,734 35
Stockholders' Equity 1,010,490 317,625 31
----------------------------------
$19,837,312 $6,901,359 35%
==================================
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
----------------------------------------------------------------------
June 30, December 31,
-------------------------
(dollars in thousands) 2004 2003
----------------------------------------------------------------------
Assets
Cash and due from banks $1,081,459 $910,092
Federal funds sold 8,500 0
-------------------------
Cash and cash equivalents 1,089,959 910,092
Loans held for sale 41,047 42,769
Trading securities 182,105 170,458
Securities available for sale 12,131,104 10,650,655
Securities held to maturity 3,772,204 2,490,484
(market value 06/04-$3,696,221;
12/03-$2,467,192)
Loans 8,330,456 7,440,576
Less allowance for loan losses 124,688 112,057
-------------------------
8,205,768 7,328,519
Bank premises and equipment, net 906,455 811,451
Other assets 410,029 307,752
-------------------------
$26,738,671 $22,712,180
=========================
Liabilities
Deposits:
Demand:
Noninterest-bearing $5,622,574 $4,574,714
Interest-bearing 9,632,178 8,574,297
Savings 5,597,767 4,222,282
Time 3,209,229 3,330,107
-------------------------
Total deposits 24,061,748 20,701,400
Other borrowed money 944,040 311,510
Other liabilities 204,768 221,982
Convertible Trust Capital Securities -
Commerce Capital Trust II 200,000 200,000
-------------------------
25,410,556 21,434,892
Stockholders' Equity
Common stock, 78,658,414 shares issued
(76,869,415 shares in 2003) 78,658 76,869
Capital in excess of par or stated value 936,539 866,095
Retained earnings 446,260 347,365
Accumulated other comprehensive income (122,003) (3,702)
-------------------------
1,339,454 1,286,627
Less treasury stock, at cost, 397,859
shares (363,076 shares in 2003) 11,339 9,339
-------------------------
Total stockholders' equity 1,328,115 1,277,288
-------------------------
$26,738,671 $22,712,180
=========================
Commerce Bancorp, Inc. and Subsidiaries
Computation of Net Income Per Share
(dollars in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ------------------
2004 2003 2004 2003
----------- -------- --------- --------
Basic:
Net income $66,235 $45,317 $128,210 $88,207
=========== ======== ========= ========
Average common shares
outstanding 77,980 69,193 77,572 68,758
=========== ======== ========= ========
Net income per share of common
stock $0.85 $0.65 $1.65 $1.28
=========== ======== ========= ========
Diluted:
Net income $66,235 $45,317 $128,210 $88,207
Interest expense on trust
preferred securities 1,963 3,926
----------- -------- --------- --------
$68,198 $45,317 $132,136 $88,207
=========== ======== ========= ========
Average common shares
outstanding 77,980 69,193 77,572 68,758
Additional shares considered
in diluted computation
assuming:
Exercise of stock options 4,489 2,935 4,530 3,186
Conversion of trust
preferred securities 3,791 3,791
----------- -------- --------- --------
Average number of shares
outstanding on a diluted
basis 86,260 72,128 85,893 71,944
=========== ======== ========= ========
Net income per common
share - diluted $0.79 $0.63 $1.54 $1.23
=========== ======== ========= ========
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
----------------------------------------------------------------------
Three Months Ended
-----------------------------------------------
June 30, March 31, June 30,
-----------------------------------------------
(dollars in thousands,
except per share
amounts) 2004 2004 % Change 2003 % Change
---------------------- -----------------------------------------------
Interest income
Interest and fees on
loans $113,947 $108,213 5% $95,548 19%
Interest on
investments 177,929 163,499 9 123,098 45
Other interest 154 340 (55) 98 57
---------------------------- ------------------
Total interest
income 292,030 272,052 7 218,744 34
---------------------------- ------------------
Interest expense
Interest on deposits:
Demand 18,729 15,943 17 11,961 57
Savings 10,216 7,786 31 6,754 51
Time 14,264 14,643 (3) 17,387 (18)
---------------------------- ------------------
Total interest on
deposits 43,209 38,372 13 36,102 20
Interest on other
borrowed money 1,052 448 135 318 231
Interest on long-term
debt 3,020 3,020 0 3,020 0
---------------------------- ------------------
Total interest
expense 47,281 41,840 13 39,440 20
---------------------------- ------------------
Net interest income 244,749 230,212 6 179,304 36
Provision for loan
losses 10,748 9,500 13 6,900 56
---------------------------- ------------------
Net interest income
after provision for
loan losses 234,001 220,712 6 172,404 36
Noninterest income
Deposit charges and
service fees 52,717 45,481 16 38,765 36
Other operating income 38,923 40,327 (3) 43,388 (10)
Net investment
securities gains 635 424 50 1,217 (48)
---------------------------- ------------------
Total noninterest
income 92,275 86,232 7 83,370 11
---------------------------- ------------------
Total Revenues 337,024 316,444 7 262,674 28
-- --
Noninterest expense
Salaries and benefits 104,110 97,340 7 86,338 21
Occupancy 27,949 28,110 (1) 22,695 23
Furniture and
equipment 27,001 24,179 12 20,556 31
Office 10,920 10,920 0 9,233 18
Marketing 9,278 8,696 7 9,198 1
Other 46,997 43,005 9 39,658 19
---------------------------- ------------------
Total noninterest
expenses 226,255 212,250 7 187,678 21
---------------------------- ------------------
Income before income
taxes 100,021 94,694 6 68,096 47
Provision for federal
and state income
taxes 33,786 32,719 3 22,779 48
---------------------------- ------------------
Net income $66,235 $61,975 7% $45,317 46%
============================ ==================
Net income per common
and common equivalent
share:
Basic $0.85 $0.80 6% $0.65 31%
---------------------------- ------------------
Diluted $0.79 $0.75 5 $0.63 25
---------------------------- ------------------
Average common and
common equivalent
shares outstanding:
Basic 77,980 77,164 1 69,193 13
---------------------------- ------------------
Diluted 86,260 85,532 1 72,128 20
---------------------------- ------------------
Cash dividends, common
stock $0.19 $0.19 0% $0.16 19%
============================ ==================
Return on average
assets 1.03% 1.06% 0.98%
Return on average
equity 19.86 17.91 17.91
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
----------------------------------------------------------------------
June 30, March 31, Linked Quarter
---------------------------------------------
(dollars in thousands) 2004 2004 % Change
----------------------------------------------------------------------
Assets
Cash and due from banks $1,081,459 $971,897 11%
Federal funds sold 8,500 56,000 (85)
---------------------------------------------
Cash and cash
equivalents 1,089,959 1,027,897 6
Loans held for sale 41,047 34,934 17
Trading securities 182,105 234,359 (22)
Securities available for
sale 12,131,104 11,972,943 1
Securities held to
maturity 3,772,204 2,871,593 31
Loans:
Commercial real
estate:
Investor developer 1,308,103 1,236,862 6
Residential
construction 174,431 144,326 21
---------------------------------------------
1,482,534 1,381,188 7
Commercial loans:
Term 1,111,848 1,071,736 4
Line of credit 1,046,104 960,080 9
Demand 0 1,080 (100)
---------------------------------------------
2,157,952 2,032,896 6
Owner-occupied 1,805,336 1,710,098 6
---------------------------------------------
3,963,288 3,742,994 6
Consumer:
Mortgages (1-4
family
residential) 1,111,049 984,415 13
Installment 134,710 135,406 (1)
Home equity 1,573,454 1,485,055 6
Credit lines 65,421 59,081 11
---------------------------------------------
2,884,634 2,663,957 8
---------------------------------------------
Total loans 8,330,456 7,788,139 7
-------------- ------------- ----------------
Less allowance for
loan losses 124,688 117,329 6
---------------------------------------------
8,205,768 7,670,810 7
Bank premises and
equipment, net 906,455 856,634 6
Other assets 410,029 286,081 43
---------------------------------------------
$26,738,671 $24,955,251 7%
=============================================
Liabilities
Deposits:
Demand:
Noninterest-bearing $5,622,574 $5,092,813 10%
Interest-bearing 9,632,178 9,313,838 3
Savings 5,597,767 4,995,245 12
Time 3,209,229 3,480,782 (8)
---------------------------------------------
Total deposits 24,061,748 22,882,678 5
----------------
Other borrowed money 944,040 137,978 584
Other liabilities 204,768 282,039 (27)
Convertible Trust
Capital Securities -
Commerce Capital Trust
II 200,000 200,000 0
---------------------------------------------
25,410,556 23,502,695 8
Stockholders' Equity
Common stock 78,658 78,120 1
Capital in excess of par
or stated value 936,539 912,905 3
Retained earnings 446,260 394,794 13
Accumulated other
comprehensive income (122,003) 78,076 (256)
---------------------------------------------
1,339,454 1,463,895 (9)
Less treasury stock, at
cost 11,339 11,339 0
---------------------------------------------
Total stockholders'
equity 1,328,115 1,452,556 (9)
---------------------------- ----------------
$26,738,671 $24,955,251 7%
=============================================
----------------------------------------------------------------------
June 30,
-----------------------------
(dollars in thousands) 2003 % Change
----------------------------------------------------------------------
Assets
Cash and due from banks $1,013,885 7%
Federal funds sold 0 0
-------------- --------------
Cash and cash equivalents 1,013,885 8
Loans held for sale 91,285 (55)
Trading securities 209,451 (13)
Securities available for sale 10,259,811 18
Securities held to maturity 841,752 348
Loans:
Commercial real estate:
Investor developer 981,657 33
Residential construction 113,931 53
-----------------------------
1,095,588 35
Commercial loans:
Term 897,252 24
Line of credit 787,084 33
Demand 1,512 (100)
-----------------------------
1,685,848 28
Owner-occupied 1,486,464 21
-----------------------------
3,172,312 25
Consumer:
Mortgages (1-4 family residential) 676,350 64
Installment 135,750 (1)
Home equity 1,239,553 27
Credit lines 59,070 11
-----------------------------
2,110,723 37
-----------------------------
Total loans 6,378,623 31
-------------- --------------
Less allowance for loan losses 99,318 26
-----------------------------
6,279,305 31
Bank premises and equipment, net 701,246 29
Other assets 440,577 (7)
-----------------------------
$19,837,312 35%
=============================
Liabilities
Deposits:
Demand:
Noninterest-bearing $4,185,186 34%
Interest-bearing 6,616,309 46
Savings 3,786,798 48
Time 3,198,789 0
-----------------------------
Total deposits 17,787,082 35
--------------
Other borrowed money 507,975 86
Other liabilities 331,765 (38)
Convertible Trust Capital Securities -
Commerce Capital Trust II 200,000 0
-----------------------------
18,826,822 35
Stockholders' Equity
Common stock 69,921 12
Capital in excess of par or stated value 591,060 58
Retained earnings 265,239 68
Accumulated other comprehensive income 89,515 (236)
-----------------------------
1,015,735 32
Less treasury stock, at cost 5,245 116
-----------------------------
Total stockholders' equity 1,010,490 31
-------------- --------------
$19,837,312 35%
=============================
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
----------------------------------------------------------------------
Three Months Ended
June 30,
(dollars in thousands, except per share --------------------------
amounts) 2004 2003 % Change
----------------------------------------------------------------------
Interest income
Interest and fees on loans $113,947 $95,548 19%
Interest on investments 177,929 123,098 45
Other interest 154 98 57
--------------------------
Total interest income 292,030 218,744 34
--------------------------
Interest expense
Interest on deposits:
Demand 18,729 11,961 57
Savings 10,216 6,754 51
Time 14,264 17,387 (18)
--------------------------
Total interest on deposits 43,209 36,102 20
Interest on other borrowed money 1,052 318 231
Interest on long-term debt 3,020 3,020 0
--------------------------
Total interest expense 47,281 39,440 20
--------------------------
Net interest income 244,749 179,304 36
Provision for loan losses 10,748 6,900 56
--------------------------
Net interest income after provision for
loan losses 234,001 172,404 36
Noninterest income
Deposit charges and service fees 52,717 38,765 36
Other operating income 38,923 43,388 (10)
Net investment securities gains 635 1,217 (48)
--------------------------
Total noninterest income 92,275 83,370 11
--------------------------
Total Revenues 337,024 262,674 28
----
Noninterest expense
Salaries and benefits 104,110 86,338 21
Occupancy 27,949 22,695 23
Furniture and equipment 27,001 20,556 31
Office 10,920 9,233 18
Marketing 9,278 9,198 1
Other 46,997 39,658 19
--------------------------
Total noninterest expenses 226,255 187,678 21
--------------------------
Income before income taxes 100,021 68,096 47
Provision for federal and state income
taxes 33,786 22,779 48
--------------------------
Net income $66,235 $45,317 46%
==========================
Net income per common and common equivalent
share:
Basic $0.85 $0.65 31%
--------------------------
Diluted $0.79 $0.63 25
--------------------------
Average common and common equivalent shares
outstanding:
Basic 77,980 69,193 13
--------------------------
Diluted 86,260 72,128 20
--------------------------
Cash dividends, common stock $0.19 $0.16 19%
==========================
Six Months Ended
June 30,
---------------------------
(dollars in thousands, except per share
amounts) 2004 2003 % Change
----------------------------------------------------------------------
Interest income
Interest and fees on loans $222,160 $188,669 18%
Interest on investments 341,428 236,759 44
Other interest 494 177 179
---------------------------
Total interest income 564,082 425,605 33
---------------------------
Interest expense
Interest on deposits:
Demand 34,672 24,358 42
Savings 18,002 13,109 37
Time 28,907 34,233 (16)
---------------------------
Total interest on deposits 81,581 71,700 14
Interest on other borrowed money 1,500 1,232 22
Interest on long-term debt 6,040 6,040 0
---------------------------
Total interest expense 89,121 78,972 13
---------------------------
Net interest income 474,961 346,633 37
Provision for loan losses 20,248 13,800 47
---------------------------
Net interest income after provision for
loan losses 454,713 332,833 37
Noninterest income
Deposit charges and service fees 98,198 73,607 33
Other operating income 79,250 84,748 (6)
Net investment securities gains 1,059 1,081 (2)
---------------------------
Total noninterest income 178,507 159,436 12
---------------------------
Total Revenues 653,468 506,069 29
----
Noninterest expense
Salaries and benefits 201,450 168,420 20
Occupancy 56,059 43,183 30
Furniture and equipment 51,180 41,782 22
Office 21,840 18,419 19
Marketing 17,974 14,474 24
Other 90,002 73,521 22
---------------------------
Total noninterest expenses 438,505 359,799 22
---------------------------
Income before income taxes 194,715 132,470 47
Provision for federal and state income
taxes 66,505 44,263 50
---------------------------
Net income $128,210 $88,207 45%
===========================
Net income per common and common equivalent
share:
Basic $1.65 $1.28 29%
---------------------------
Diluted $1.54 $1.23 25
---------------------------
Average common and common equivalent shares
outstanding:
Basic 77,572 68,758 13
---------------------------
Diluted 85,893 71,944 19
---------------------------
Cash dividends, common stock $0.38 $0.33 15%
===========================
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion