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COMMERCEBANCORP ADDS $5.5 MILLION TO ITS LOAN LOSS PROVISION: PROJECTS $2.9 MILLION 1991 LOSS

 COMMERCEBANCORP ADDS $5.5 MILLION TO ITS LOAN LOSS PROVISION:
 PROJECTS $2.9 MILLION 1991 LOSS
 NEWPORT BEACH, Calif., Feb. 3 /PRNewswire/ -- CommerceBancorp (NASDAQ-NMS: CBNB) announced today that its wholly owned subsidiary, CommerceBank, will add $5.5 million to its loan loss reserve for the fourth quarter of fiscal 1991. As a result, based on unaudited financial information, CommerceBancorp projects a $2.9 million loss for the fiscal year ended Dec. 31, 1991, the first loss in its 12-year history.
 CommerceBancorp President Raymond E. Dellerba said, "Consistent with the company's ongoing commitment to address weak credits as circumstances require, the company believes it to be prudent and in the best interest of its shareholders to add to its loan loss reserve at this time. The contribution is general and not related to any particular loan." Dellerba noted that, "A key element in the bank's ongoing assessment of its loan portfolio is the effect of the protracted recession and weak real estate market on CommerceBank borrowers." With this increase, the allowance for loan losses for fiscal 1991 will total approximately $7 million, representing approximately 3 percent of the bank's outstanding loans.
 Despite the loss, CommerceBancorp continues to maintain a strong capital base. "By all measures of capital adequacy," Dellerba said, "CommerceBancorp exceeds minimum regulatory guidelines, with Tier I capital at 7.9 percent and total capital at 9.4 percent." The required minimum regulatory capital ratios are 3.625 percent and 7.25 percent, respectively.
 CommerceBank was established in 1979 and operates four regional banking offices in Orange and Los Angeles Counties, which specialize in providing banking services to emerging and medium-sized businesses and to high-profile professionals and individuals.
 -0- 2/3/92
 /CONTACT: Lee Oliver of Leland Oliver Inc., 714-667-1555, for CommerceBancorp/
 (CBNB) CO: CommerceBancorp ST: California IN: FIN SU:


EH-JL -- LA043 -- 6446 02/03/92 19:25 EST
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Publication:PR Newswire
Date:Feb 3, 1992
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