EX-99 4 exhibit99-2.txt EXHIBIT 99.2
Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) ------------------------------------------------------------------------------------------------------------------------------------ March 31, December 31, Linked Quarter March 31, ---------------------------------------------------------------------- (dollars in thousands) 2003 2002 % Change 2002 % Change ------------------------------------------------------------------------------------------------------------------------------------ Assets Cash and due from banks $832,821 $811,434 3 % $495,519 68 % Federal funds sold 61,000 0 0 0 0 --------------------------------------------------------------------- Cash and cash equivalents 893,821 811,434 10 495,519 80 Loans held for sale 55,230 96,920 (43) 39,616 39 Trading securities 205,631 326,479 (37) 243,186 (15) Securities available for sale 8,852,908 7,806,779 13 5,193,533 70 Securities held to maturity 927,562 763,026 22 1,013,692 (8) Loans: Commercial real estate: Owner-occupied 1,333,390 1,345,306 (1) 1,117,698 19 Investor developer 930,791 885,276 5 864,614 8 Residential construction 91,378 102,080 (10) 48,862 87 --------------------------------------------------------------------- 2,355,559 2,332,662 1 2,031,174 16 Commercial loans: Term 872,787 842,869 4 635,939 37 Line of credit 732,693 683,640 7 552,858 33 Demand 15,795 317 4,883 410 3,752 --------------------------------------------------------------------- 1,621,275 1,526,826 6 1,189,207 36 Consumer: Mortgages (1-4 family residential) 647,955 626,652 3 539,360 20 Installment 134,116 140,493 (5) 158,535 (15) Home equity 1,183,594 1,139,589 4 938,444 26 Credit lines 50,928 56,367 (10) 45,690 11 --------------------------------------------------------------------- 2,016,593 1,963,101 3 1,682,029 20 --------------------------------------------------------------------- Total loans 5,993,427 5,822,589 3 4,902,410 22 Less allowance for loan losses 94,731 90,733 4 72,253 31 --------------------------------------------------------------------- 5,898,696 5,731,856 3 4,830,157 22 Bank premises and equipment, net 556,945 499,189 12 389,117 43 Other assets 407,330 368,298 11 279,813 46 --------------------------------------------------------------------- $17,798,123 $16,403,981 8 % $12,484,633 43 % ===================================================================== Liabilities Deposits: Demand: Interest-bearing $6,097,976 $5,635,351 8 % $3,879,973 57 % Noninterest-bearing 3,626,661 3,243,091 12 2,539,171 43 Savings 3,331,131 2,861,677 16 2,201,908 51 Time 3,176,133 2,808,722 13 2,699,811 18 ----------------------------------------------------------------------- Total deposits 16,231,901 14,548,841 12 11,320,863 43 Other borrowed money 109,622 391,641 (72) 81,567 34 Other liabilities 303,039 345,489 (12) 151,453 100 Trust Capital Securities - Commerce Capital Trust I 0 0 0 57,500 (100) Convertible Trust Capital Securities - Commerce Capital Trust II 200,000 200,000 0 200,000 0 Long-term debt 0 0 0 23,000 (100) ----------------------------------------------------------------------- Stockholders' 16,844,562 15,485,971 9 11,834,383 42 Equity Common stock 69,072 68,043 2 66,491 4 Capital in excess of par or stated value 565,246 538,795 5 478,188 18 Retained earnings 231,280 199,604 16 116,601 98 Accumulated other comprehensive income 93,208 113,614 (18) (9,408) (1,091) ----------------------------------------------------------------------- 958,806 920,056 4 651,872 47 Less treasury stock, at cost 5,245 2,046 156 1,622 223 ----------------------------------------------------------------------- Total stockholders' equity 953,561 918,010 4 650,250 47 ----------------------------------------------------------------------- $17,798,123 $16,403,981 8 % $12,484,633 43 % =======================================================================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) ------------------------------------------------------------------------------------------------------------------------------------ (dollars in thousands) March 31, December 31, 2002 March 31, 2002 ------------------------------------------------------------------------------- 2003 Actual $ Change % Change Actual $ Change % Change ------------------------------------------------------------------------------------------------------------------------------------ Assets Cash and due from banks $832,821 $811,434 $21,387 3 % $495,519 $337,302 68 % Federal funds sold 61,000 0 61,000 0 0 61,000 0 ----------------------------------------------------------------------------------- Cash and cash equivalents 893,821 811,434 82,387 10 495,519 398,302 80 Loans held for sale 55,230 96,920 (41,690) (43) 39,616 15,614 39 Trading securities 205,631 326,479 (120,848) (37) 243,186 (37,555)(15) Securities available for sale 8,852,908 7,806,779 1,046,129 13 5,193,533 3,659,375 70 Securities held to maturity 927,562 763,026 164,536 22 1,013,692 (86,130) (8) Loans 5,993,427 5,822,589 170,838 3 4,902,410 1,091,017 22 Less allowance for loan losses 94,731 90,733 3,998 4 72,253 22,478 31 ----------------------------------------------------------------------------------- 5,898,696 5,731,856 166,840 3 4,830,157 1,068,539 22 Reserve % 1.58% 1.56% 1.47% Bank premises and equipment, net 556,945 499,189 57,756 12 389,117 167,828 43 Other assets 407,330 368,298 39,032 11 279,813 127,517 46 ----------------------------------------------------------------------------------- $17,798,123 $16,403,981 $1,394,142 8 % $12,484,633 $5,313,490 43 % =================================================================================== Liabilities Deposits: Demand: Interest-bearing $6,097,976 $5,635,351 $462,625 8 % $3,879,973 $2,218,003 57 % Noninterest-bearing 3,626,661 3,243,091 383,570 12 2,539,171 1,087,490 43 Savings 3,331,131 2,861,677 469,454 16 2,201,908 1,129,223 51 Time 3,176,133 2,808,722 367,411 13 2,699,811 476,322 18 ----------------------------------------------------------------------------------- Total deposits 16,231,901 14,548,841 1,683,060 12 11,320,863 4,911,038 43 Core deposits 15,296,123 13,834,293 1,461,830 11 10,394,735 4,901,388 47 Total other liabilities 612,661 937,130 (324,469) (35) 513,520 99,141 19 ----------------------------------------------------------------------------------- 16,844,562 15,485,971 1,358,591 9 11,834,383 5,010,179 42 Stockholders' Equity 953,561 918,010 35,551 4 650,250 303,311 47 ----------------------------------------------------------------------------------- $17,798,123 $16,403,981 $1,394,142 8 % $12,484,633 $5,313,490 43 % ===================================================================================
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' Common stock, 69,071,627 shares issued (68,043,171 shares in 2002) 69,072 68,043 Equity 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 Interest and fees on loans $93,121 $81,823 14 % income Interest on investments 113,661 86,217 32 Other interest 79 164 (52) ---------------------------------------- Total interest income 206,861 168,204 23 ---------------------------------------- Interest Interest on deposits: expense 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 Deposit charges and service fees 34,842 28,963 20 income 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 Salaries and benefits 82,082 60,145 36 expense 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 % ========================================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (unaudited)
------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended ------------------------------------------------------------------ March 31, December 31, March 31, ------------------------------------------------------------------ (dollars in thousands, except per share amounts) 2003 2002 % Change 2002 % Change ------------------------------------------------------------------------------------------------------------------------------------ Interest Interest and fees on loans $93,121 $93,690 (1)% $81,823 14 % income 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 Interest on deposits: expense 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 Deposit charges and service fees 34,842 36,599 (5) 28,963 20 income 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 Salaries and benefits 82,082 78,446 5 60,145 36 expense 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. 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 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
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 31, December 31, September 30, June 30, March 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%
Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income (unaudited) --------------------------------------------------------------------------------------------------- March 2003 December 2002 March 2002 --------------------------------- ---------------------------- -------------------------------- Average Average Average Average Average Average Balance Interest Rate Balance Interest Rate Balance Interest Rate --------------------------------- ----------------------------- ------------------------------ (dollars in thousands) Earning Assets ------------------------------- Investment securities Taxable $8,681,675 $109,916 5.13 % $8,033,417 $104,326 5.15 % $5,511,447 $83,211 6.12 % Tax-exempt 140,307 2,545 7.36 113,895 1,820 6.34 110,293 1,665 6.12 Trading 270,299 3,215 4.82 272,107 4,068 5.93 189,651 2,960 6.33 ------------- ---------- ------- ------------ --------- ----- ------------ ---------- ------ Total investment securities 9,092,281 115,676 5.16 8,419,419 110,214 5.19 5,811,391 87,836 6.13 Federal funds sold 27,154 80 1.19 51,988 181 1.38 40,672 164 1.64 Loans Commercial mortgages 2,177,008 35,125 6.54 2,241,044 37,009 6.55 1,828,586 31,304 6.94 Commercial 1,496,039 20,943 5.68 1,338,892 19,816 5.87 1,087,048 16,338 6.10 Consumer 2,075,256 33,719 6.59 1,963,307 33,928 6.86 1,656,000 30,936 7.58 Tax-exempt 258,614 5,129 8.04 195,972 4,517 9.14 233,669 4,992 8.66 ------------- ---------- ------- ------------ --------- ----- ------------ ---------- ------ Total loans 6,006,917 94,916 6.41 5,739,215 95,270 6.59 4,805,303 83,570 7.05 ------------- ---------- ------- ------------ --------- ----- ------------ ---------- ------ Total earning assets $15,126,352 $210,672 5.65 % $14,210,622 $205,665 5.74 % $10,657,366 $171,570 6.53 % ============= ============ ============ Sources of Funds --------------------------------- Interest-bearing liabilities Regular savings $3,021,219 $6,355 0.85 % $2,809,817 $7,110 1.00 % $2,044,873 $7,078 1.40 % N.O.W. accounts 403,415 813 0.82 393,844 919 0.93 300,742 1,053 1.42 Money market plus 5,472,788 11,584 0.86 5,048,365 12,375 0.97 3,459,619 11,855 1.39 Time deposits 2,148,534 13,731 2.59 2,054,038 14,376 2.78 1,673,580 16,004 3.88 Public funds 793,437 3,115 1.59 842,374 3,998 1.88 874,379 5,277 2.45 ------------- ---------- ------- ------------ --------- ----- ------------ ---------- ------ Total deposits 11,839,393 35,598 1.22 11,148,438 38,778 1.38 8,353,193 41,267 2.00 Other borrowed money 272,304 914 1.36 201,547 729 1.44 102,611 426 1.68 Long-term debt 200,000 3,020 6.12 200,000 3,022 5.99 127,167 2,432 7.76 ------------- ---------- ------- ------------ --------- ----- ------------ ---------- ------ Total deposits and interest-bearing liabili1ities 2,311,697 39,532 1.30 11,549,985 42,529 1.46 8,582,971 44,125 2.08 Noninterest-bearing funds (net) 2,814,655 2,660,637 2,074,395 ------------- ---------- ------- ------------ --------- ----- ------------ ---------- ------ ------- ----- Total sources to fund earning assets $15,126,352 39,532 1.06 $14,210,622 42,529 1.19 $10,657,366 44,125 1.68 ============= ---------- ------- ============ --------- ----- ============ ---------- ------ Net interest income and margin tax-equivalent basis $171,140 4.59 % $163,136 4.55 % $127,445 4.85 % ========== ======= ========= ===== ========== ====== Other Balances --------------------------------- Cash and due from banks $865,209 $788,271 $510,269 Other assets 933,321 831,250 592,129 Total assets 16,831,542 15,741,365 11,690,615 Total deposits 15,033,367 14,170,281 10,684,272 Demand deposits (noninterest-bearing) 3,193,974 3,021,843 2,331,079 Other liabilities 369,691 283,708 108,125 Stockholders' equity 956,180 885,829 668,440 Allowance for loan losses 93,340 88,778 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.