-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QJ9+Sy5gbfBlWT8CokwK1+IluGbU6pjwYbHm/L1Dmt7YfiRJaNBbnueHYE+FSFgc Ig39w2SrJ1cv8LeB4zpFEw== 0000950159-03-000822.txt : 20031015 0000950159-03-000822.hdr.sgml : 20031013 20031015100321 ACCESSION NUMBER: 0000950159-03-000822 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031015 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031015 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMERCE BANCORP INC /NJ/ CENTRAL INDEX KEY: 0000715096 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 222433468 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12069 FILM NUMBER: 03940820 BUSINESS ADDRESS: STREET 1: COMMERCE ATRIUM STREET 2: 1701 RTE 70 E CITY: CHERRY HILL STATE: NJ ZIP: 08034-5400 BUSINESS PHONE: 8567519000 MAIL ADDRESS: STREET 1: 1701 ROUTE 70 EAST CITY: CHERRY HILL STATE: NJ ZIP: 08034-5400 8-K 1 commerce8k.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 15, 2003 ---------------- Commerce Bancorp, Inc. ---------------------- (Exact name of registrant as specified in its charter) New Jersey 0-12874 22-2433468 --------------------------- ---------------------- --------------- (State or other jurisdiction (Commission File Number) IRS Employer of incorporation) Identification Number) Commerce Atrium, 1701 Route 70 East, Cherry Hill, NJ 08034-5400 - ---------------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 856-751-9000 ------------ ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1 Press Release, dated October 15, 2003. 99.2 Supplemental Information. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On October 15, 2003, the Registrant issued a press release reporting its results for its third quarter of 2003. A copy of the press release is attached as Exhibit 99.1 to this report. On October 15, 2003, the Registrant also made certain supplemental information available. A copy of the supplemental information is attached as Exhibit 99.2 to this report. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 15, 2003 COMMERCE BANCORP, INC. By: /s/ VERNON W. HILL, II ----------------------------------------- Vernon W. Hill, II Chairman of the Board and President By: /s/ DOUGLAS J. PAULS ----------------------------------------- Douglas J. Pauls Senior Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. 99.1 Press Release, dated October 15, 2003. 99.2 Supplemental Information. EX-99 3 ex99-1.txt EXHIBIT 99.1 Commerce Bancorp, Inc. [LOGO] CONTACTS -------- Vernon W. Hill, II C. Edward Jordan, Jr. Chairman and President Executive Vice President (856) 751-9000 THIRD QUARTER DEPOSITS UP $1.8 BILLION AT COMMERCE BANCORP ---------------- October 15, 2003 -- Cherry Hill, New Jersey -- Commerce Bancorp, Inc. (NYSE Symbol: CBH) reported record earnings and increased deposits, assets and loans for the third quarter of 2003, it was announced today by Vernon W. Hill, II, Chairman of the multi-bank holding company. ================================================================================ THIRD QUARTER FINANCIAL HIGHLIGHTS ---------------------------------- September 30, 2003 Increase o Total Assets: $ 21.4 Billion 39% o Total Deposits: $ 19.6 Billion 41% o Total (Net) Loans: $ 6.7 Billion 23% o Total Revenues: $ 279.3 Million 27% o Net Income: $ 49.5 Million 31% o Net Income Per Share: $ .67 26% ================================================================================
Three Months Ended Nine Months Ended September 30, 2003 September 30, 2003 -------------------------------------------------------------------------------------- 2003 2002 % Increase 2003 2002 % Increase -------------------------------------------------------------------------------------- (dollars in thousands, except per share data) Total Revenues: $279,267 $220,186 27% $785,336 $600,510 31% Total Expenses: 197,312 154,828 27 557,111 418,289 33 Net Income: 49,474 37,689 31 137,681 104,241 32 Net Income Per Share: $.67 $.53 26% $1.90 $1.47 29%
Balance Sheet ------------- Linked Quarter -------------- 9/30/03 9/30/02 % Change 6/30/03 $ Increase % Increase -------------------------------------------------------------------------------------- (dollars in millions) Total Assets: $21,359 $15,374 39% $19,837 $1,522 8% Total Loans (Net): 6,720 5,457 23 6,279 441 7 Core Deposits: 18,596 12,896 44 17,002 1,594 9 Total Deposits: 19,555 13,880 41 17,787 1,768 10
Chairman's Statement - -------------------- Vernon W. Hill, II, Chairman, commenting on the Company's financial results said, " in the most difficult low-rate operating environment in the last 45 years, the unique Commerce business model continues to produce strong top-line revenue growth driven by strong deposit growth which significantly increases our net interest income and net income". Financial Highlights - -------------------- o Net income increased 31% for the third quarter of 2003 and 32% for the first nine months. o Earnings per share rose 26% for the third quarter and 29% for the first nine months. o Total revenues grew 27% for the quarter and 31% for the first nine months. o Core deposits grew $5.7 billion, or 44% for the prior 12 months including $1.6 billion in growth during the third quarter. o Comparable store deposits grew 30%. -2- o The Company opened 14 new offices in the third quarter of 2003 and has 13 new offices under construction for openings in the fourth quarter which will complete our commitment to open a total of 46 branches this year. o Deposits in our New York City and Long Island markets increased to $1.3 billion and $866 million, respectively. o The Company successfully completed a common stock offering which produced net proceeds of $209 million to support our future growth. Shareholder Returns - ------------------- Commerce S & P Index -------- ----------- 1 year 17.18% 24.38% 5 years 23.82% 1.00% 10 years 28.15% 10.04% Future Guidance - --------------- Due to our continued strong growth trends, we reiterate our growth targets:
Last 5-Year Actual % Growth Targets Growth % Third Quarter 2003 -------------- -------- ------------------ Total Deposits: 25% 37% 41% Comp Store Deposits: 18% 21% 30% Total Revenue: 25% 32% 27% Net Income: 25% 37% 31% Earnings Per Share: 20% 32% 26%
Total Deposits - -------------- The Company's dramatic deposit growth continues with total deposits at September 30, 2003 of $19.6 billion, a $5.7 billion increase or 41% over total deposits of $13.9 billion a year ago, including $1.8 billion of growth in the third quarter.
9/30/03 9/30/02 $ Increase %Increase ------- ------- ---------- --------- (dollars in millions) Core Deposits $18,596 $12,896 $ 5,700 44% Total Deposits 19,555 13,880 5,675 41%
-3- Historically, deposits have increased as follows:
Five Year Deposit Growth ------------------------ 9/30/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ------- -------- -------- -------- -------- -------- (dollars in millions) Core Deposits $18,596 $13,834 $ 9,497 $ 6,854 $ 5,412 $ 4,686 Total Deposits 19,555 14,549 10,186 7,388 5,609 $ 4,929
At September 30, 2003 the five year compounded annual growth rate of total deposits is 37%. The deposit growth by markets served is as follows:
Deposit Growth by Market ------------------------ # of $ % Comp Annualized Stores 9/30/03 9/30/02 Increase Increase Store Growth/Branch ------ ------- ------- -------- -------- ----- ------------- (dollars in millions) Metro Philadelphia 128 $10,417 $8,275 $2,142 26% 30% $18 Northern New Jersey 96 7,008 5,059 1,949 39 28 24 NYC Boroughs 21 1,264 421 843 200 85 84 Long Island 12 866 125 741 594 n/a 98 --- ------- ------- ------ -- -- --- Total 257 $19,555 $13,880 $5,675 41% 30% $29
Core Deposits - ------------- Core deposit growth by type of account is as follows:
3rd Quarter Balance Balance Cost of Annual 9/30/03 9/30/02 Funds Growth % ------- ------- ----- -------- (dollars in millions) Non-interest Bearing Demand $4,323 $3,060 .00 41% Interest Bearing Demand 7,623 5,163 .66 48 Savings 4,175 2,705 .69 54 Time 2,475 1,968 2.22 26 ------- ------- ---- -- Total Core Deposits: $18,596 $12,896 0.73% 44%
-4- The Company regards core deposits as all deposits other than public certificates of deposit. 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. At September 30, 2003, the Company had 167 branches open for two years or more. Core deposit growth by type of customer is as follows:
Annual Comp Store 9/30/03 % Total 9/30/02 % Total $ Increase Growth % Growth % ------- ------- ------- ------- ---------- -------- -------- (dollars in millions) Consumer $9,123 49% $6,588 51% $2,535 38% 23% Commercial 6,610 36 4,582 36 2,028 44 31 Government 2,863 15 1,726 13 1,137 66 46 ------- --- ------- --- ------ -- -- Total $18,596 100% $12,896 100% $5,700 44% 30%
Net Income and Earnings Per Share - --------------------------------- Net income totaled $49.5 million for the third quarter of 2003, up $11.8 million or 31% over net income of $37.7 million for the third quarter of 2002. The growth in net income for the third quarter of 2003 was driven by increased net interest income of 29% and increased non-interest income of 22%. On a diluted per share basis, net income for the third quarter was $.67 compared to $.53 for the third quarter of 2002, a 26% increase. For the first nine months of 2003, net income totaled $137.7 million, up $33.4 million or 32% over net income of $104.2 million for the first nine months of 2002. On a diluted per share basis, net income for the first nine months of 2003 was $1.90 compared to $1.47 for the first nine months of 2002, a 29% increase.
Three Months Ended Nine Months Ended ------------------ ----------------- 9/30/03 9/30/02 % Increase 9/30/03 9/30/02 % Increase ------- ------- ---------- ------- ------- ---------- (dollars in thousands, except per share data) Net Income $49,474 $37,689 31% $137,681 $104,241 32% Earnings Per Share $.67 $.53 26% $1.90 $1.47 29%
Effect on EPS of Expensing Stock Options - ---------------------------------------- If the Company had chosen to expense stock options beginning with grants issued in 2003, the impact on earnings per share for the third quarter of 2003 would have been $0.02 per share, and $0.06 per share for the first nine months of 2003. -5- Total Revenues - -------------- Total revenues increased by 27% for the quarter ended September 30, 2003, despite one of the most difficult rate environments in 45 years which led to our lowest net interest margin in approximately 12 years.
Three Months Ended Nine Months Ended ------------------ ------------------ 9/30/03 9/30/02 % Increase 9/30/03 9/30/02 % Increase ------- ------- ---------- ------- ------- ---------- (dollars in thousands, except per share data) Total Revenues $279,267 $220,186 27% $785,336 $600,510 31% Revenue Per Share $15.11 $12.39 22% $14.42 $11.32 27%
Net Interest Income and Net Interest Margin - ------------------------------------------- The Company's continued ability to grow deposits, resulting in significant earning asset growth, permitted the Company to record net interest income for the third quarter of $194.1 million, a 29% increase over the $150.6 million recorded a year ago. The net interest margin for the third quarter of 2003 was 4.21%, down 20 basis points from the margin for the second quarter of 2003. The decline in the margin was attributed primarily to a decrease in the yield on the investment portfolio, which was due in part to lower reinvestment rates. The third quarter of 2003 was marked by continued volatility in long term interest rates and the lingering process of working through the most recent mortgage refinancing cycle. The significant prepayments in the mortgage-backed securities portfolio were also accompanied by accelerated premium amortization, which lowered the net interest margin for the quarter. The mortgage refinancing cycle appears to have run its course and we believe that the net interest margin has stabilized and will improve in the fourth quarter. Net Interest Income and Rate/Volume Analysis - -------------------------------------------- On a tax equivalent basis, net interest income in the third quarter of 2003 was $198.0 million, an increase of $44.9 million or 29% over the third quarter of 2002. 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 ----------------------------------------------------------- Volume Rate Total % 2003 vs. 2002 Increase Change Increase Increase ------------- -------- ------ -------- -------- (dollars in millions) Third Quarter $55,842 ( $10,925 ) $44,918 29% First Nine Months $155,418 ( $25,694 ) 129,724 31%
-6- Non-Interest Income - ------------------- Non-interest income for the third quarter of 2003 increased to $85.2 million from $69.6 million a year ago, a 22% increase. Non-interest income for the first nine months of 2003 increased to $244.6 million from $187.3 million in the first nine months of 2002, a 31% increase. The growth in non-interest income for the third quarter and the first nine months of 2003 was reflected in increased deposit charges and service fees and other operating income which are more fully depicted below:
Three Months Ended Nine Months Ended ------------------ ----------------- 9/30/03 9/30/02 % Increase 9/30/03 9/30/02 % Increase ------- ------- ---------- ------ ------- ---------- (Dollars in thousands) Deposit Charges & Service Fees $41,500 $33,802 23% $115,107 $94,394 22% Other Operating Income: Insurance 17,623 14,448 22% 50,868 42,076 21% Capital Markets 9,138 12,077 (24)% 28,836 26,605 8% Loan Brokerage Fees 7,073 4,329 63% 22,541 12,471 81% Other 8,142 4,976 63% 24,479 11,705 109% -------------------------------------------------------------------------- Total Other 41,976 35,830 17% 126,724 92,857 36% Net Investment Securities Gains 1,682 2,763 -------------------------------------------------------------------------- Total Non-Interest Income $85,158 $69,632 22% $244,594 $187,251 31%
Commerce Insurance Services - --------------------------- Total revenues for the Company's insurance division were $17.6 million for the third quarter of 2003 compared to $14.4 million for the third quarter of 2002, a 22% increase. Total revenues for the first nine months of 2003 were $50.9 million versus $42.1 million for the same period a year ago, a 21% increase. Commerce Capital Markets - ------------------------ Total revenues for the Company's capital markets division were $9.1 million for the third quarter of 2003 compared to $12.1 million for the third quarter of 2002, a 24% decrease. Total revenues for the first nine months of 2003 were $28.8 million versus $26.6 million for the same period a year ago, an 8% increase. -7- A breakdown of total revenues by division is as follows:
Three Months Ended Nine Months Ended --------------------- ---------------------- 9/30/03 9/30/02 9/30/03 9/30/02 ------- ------- ------- ------- (dollars in thousands) Trading & Sales $955 $4,711 $7,326 $9,603 Public Finance 4,474 4,953 11,058 9,767 Retail & Asset Management 3,709 2,413 10,452 7,235 ------ ------- ------- ------- Total $9,138 $12,077 $28,836 $26,605
Non- Interest Expenses - ---------------------- Non-interest expenses for the third quarter of 2003 were $197.3 million, up 27% from $154.8 million a year ago. Non-interest expenses for the first nine months of 2003 were $557.1 million, up 33% from $418.3 million for the first nine months of 2002. The increase in non-interest expenses for the third quarter and the first nine months of 2003 was widespread throughout all non-interest expense categories and consistent with the same reporting periods a year ago. They reflect the Company's rapid growth during the respective periods and also reflect substantial infrastructure expenditures made by the Company to support future growth. In response to the decline in the net interest margin, expense growth has been slowed to match revenue growth in the third quarter. The Company's expense growth includes the operation of 21 new offices with $1.3 billion in New York City branch deposits and 12 new offices with $.9 billion in Long Island branch deposits with minimal impact on the Company's efficiency ratio. Lending - ------- Loans increased $1.0 billion for the first nine months of 2003 to $6.7 billion, 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, loan growth has occurred in the following markets:
Portfolio Geographical Growth ----------------------------- 9/30/03 9/30/02 Growth Rate % of Total Growth ------- ------- ----------- ----------------- (dollars in millions) Metro Philadelphia $4,383 $3,885 13% 39% Northern New Jersey 2,058 1,571 31 38 New York/Long Island 383 87 -- 23 ------ ------ -- --- Total: $6,824 $5,543 23% 100%
-8- The composition of the Company's loan portfolio is as follows:
Loan Composition ---------------- 9/30/03 % of Total 9/30/02 % of Total $ Increase %Increase ------- ---------- ------- ---------- ---------- --------- (dollars in millions) Commercial $1,729 25% $1,352 24% $377 28% Owner-Occupied 1,536 23 1,317 24 219 16 Consumer 2,345 34 1,866 34 479 26 Commercial Real Estate 1,214 18 1,008 18 206 20 ------ ---- ------ ---- ---- ---- Gross Loans $6,824 100% $5,543 100% $1,281 Less: Reserves ( 104) ( 86) ( 18) ------ ------ ------ Net Loans $6,720 $5,457 $1,263 23%
Asset Quality - ------------- The Company's asset quality results are highlighted below:
Quarter Ended ------------- 9/30/03 6/30/03 12/31/02 9/30/02 ------- ------- -------- ------- Non-Performing Assets/Assets .12% .12% .11% .12% Net Loan Charge-Offs .18% .15% .19% .19% Loan Loss Reserve/ Gross Loans 1.52% 1.56% 1.56% 1.54% Non-Performing Loan Coverage 449% 441% 640% 560% Non-Performing Assets/Capital and Reserves 2% 2% 2% 2%
Non-performing assets and loans past due 90 days at September 30, 2003 totaled $25.4 million or .12% of total assets, versus $18.5 million, or .12% of total assets a year ago. Non-performing assets and loans past due 90 days or more represented 2% of stockholders' equity and the reserve for loan losses at September 30, 2003. -9- Investments - ----------- The Company's cash flow from deposit growth and bond repayments totaled approximately $9.6 billion for the first nine months of 2003. This significant cash flow has provided the Company with ongoing reinvestment opportunities as interest rates change. At September 30, 2003, total investments increased to $12.5 billion from $8.0 billion at September 30, 2002. The portfolio is comprised primarily of high quality U.S. Government agency and mortgage-backed obligations with a current duration of 4.0 years and an average life of 4.4 years. Detailed below is information regarding the composition and characteristics of the Company's investment portfolio, excluding trading securities, as of September 30, 2003.
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) $4,666 4.71% $101.33 4.30 4.65 Collateralized Mortgage Obligations (AAA Rated) 6,069 4.33 100.76 3.76 4.12 Obligations of State and Political Subdivisions/Other 1,784 4.37 100.29 4.01 4.81 ------- ----- ------- ---- ---- Total $12,519 4.48% $100.88 4.00 4.42
The Company's mortgage-backed securities (MBS) portfolio comprises 86% of the total investment portfolio. The MBS portfolio consists of Federal Agencies Pass-Through Certificates and Collateralized Mortgage Obligations (CMO's) which are issued by federal agencies and other private sponsors. The Company's investment policy does not permit investments in inverse floaters, IO's, PO's and other similar issues since they are inconsistent with our philosophy of managing the investment portfolio to produce consistent recurring earnings over time. During the third quarter of 2003, the Company continued its ongoing review and repositioning of the portfolio to adjust for current and anticipated interest rate and yield curve levels. This repositioning of the portfolio involved sales of approximately $1.2 billion for the third quarter. The appreciation in the available for sale portfolio totaled approximately $50 million at September 30, 2003. -10- Linked Quarter Comparison - ------------------------- A comparison of financial results for the quarter ended September 30, 2003 to the previous quarter ended June 30, 2003 is as follows: (dollars in thousands, except per share data)
Three Months Ended ------------------ Linked Quarter 9/30/03 6/30/03 $ Increase % Increase ------- ------- ---------- ---------- Total Assets $21,359,169 $19,837,312 $1,521,857 8% Total Loans (Net) 6,720,476 6,279,305 441,171 7% Core Deposits 18,595,755 17,002,324 1,593,431 9% Total Deposits 19,555,097 17,787,082 1,768,015 10% Total Revenues 279,267 262,674 16,593 6% Net Interest Income 194,109 179,304 14,805 8% Non-Interest Income 85,158 83,370 1,788 2% Non-Interest Expense 197,312 187,678 9,634 5% Net Income 49,474 45,317 4,157 9% Net Income Per Share $.67 $.63 $.04 6%
Capital Resources - ----------------- During the third quarter of 2003, the Company successfully completed a public offering of 5,000,000 shares of common stock which generated approximately $209 million in new capital to support our future growth. Stockholders' equity at September 30, 2003 increased to $1.2 billion, a $363.5 million increase, or 42% over stockholders' equity of $871.1 million at September 30, 2002. Return on average stockholders' equity (ROE) for the third quarter and for the first nine months of 2003 (including and excluding unrealized securities gains/losses) are shown in the table below:
Return on Equity ---------------- Three Months Ended Nine Months Ended ------------------ ----------------- 9/30/03 9/30/02 9/30/03 9/30/02 ------- ------- ------- ------- Including unrealized securities gains/losses adjustment: 21.17% 17.95% 18.97% 18.59% Excluding unrealized securities gains/losses adjustment: 19.72% 20.49% 19.93% 20.12%
-11- The Company's capital ratios at September 30, 2003 were as follows: Regulatory Guidelines Commerce "Well Capitalized" -------- ------------------ Leverage Ratio 6.68% 5.00% Tier I 12.82% 6.00% Total Capital 13.78% 10.00% Expansion Plans - --------------- During the third quarter of 2003, the Company incurred approximately $71.0 million in capital expenditures, of which $51.5 million was related to the construction of new branches, $13.0 million was for the refurbishment of existing branch offices and the replacement of two existing branches, and $6.5 million was related to non-branch infrastructure expenditures including information technology. 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. o "Same Store Sales" ------------------ "Same-store core deposit growth" at September 30, 2003 was 30% compared to the same period a year ago. Same store core deposit increases for the previous four quarters were 29 %, 29%, 29% and 31%, respectively. o New Branch Offices ------------------ During the third quarter of 2003, the Company opened 14 new branch offices, increasing the total offices to 257. During the last three years, the Company has opened 117 of its 257 branches. -12- Branches opened during the third quarter were as follows:
Store Number Location County ------------ -------- ------ 244 Ridley Delaware (PA) 245 Quakertown Bucks (PA) 246 Berkeley Heights Union (NJ) 247 Paramus - Ridgewood Ave. Bergen (NJ) 248 Hanover/Cedar Knolls Morris (NJ) 249 Parsippany Morris (NJ) 250 Brooklyn Heights Brooklyn (Kings - NY) 251 Avenue U Brooklyn (Kings - NY) 252 Oceanside Nassau (NY) 253 Hicksville Nassau (NY) 254 Marlboro Monmouth (NJ) 255 42nd & 9th Manhattan (NY) 256 White Plains Westchester (NY) 257 Oaklyn Camden (NJ)
o Commerce Online --------------- Commerce continued its leading role in on-line banking by increasing its penetration rate to 37%, which is one of the highest in America. -13- Forward-Looking Statements - -------------------------- 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" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, 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 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 (the "FRB"); 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; 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 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 or judicial proceedings; changes in consumer spending 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. -14- EX-99 4 ex99-2.txt EXHIBIT 99.2
Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Linked September 30, June 30, Quarter September 30, ------------------------------------------------------------- (dollars in thousands) 2003 2003 % Change 2002 % Change - ------------------------------------------------------------------------------------------------------------------------------------ Assets Cash and due from banks $775,696 $1,013,885 (23)% $740,604 5 % Federal funds sold 0 0 0 87,900 (100) ------------------------------------------------------------- Cash and cash equivalents 775,696 1,013,885 (23) 828,504 (6) Loans held for sale 94,596 91,285 4 66,612 42 Trading securities 220,433 209,451 5 197,386 12 Securities available for sale 10,416,934 10,259,811 2 7,093,561 47 Securities held to maturity 2,102,235 841,752 150 898,532 134 Loans: Commercial real estate: Owner-occupied 1,535,906 1,486,464 3 1,316,737 17 Investor developer 1,087,956 981,657 11 892,422 22 Residential construction 125,652 113,931 10 115,440 9 ------------------------------------------------------------- 2,749,514 2,582,052 6 2,324,599 18 Commercial loans: Term 887,687 897,252 (1) 745,069 19 Line of credit 840,736 787,084 7 606,814 39 Demand 1,080 1,512 (29) 348 210 ------------------------------------------------------------- 1,729,503 1,685,848 3 1,352,231 28 Consumer: Mortgages (1-4 family residential) 842,321 676,350 25 568,931 48 Installment 140,337 135,750 3 147,126 (5) Home equity 1,306,462 1,239,553 5 1,098,098 19 Credit lines 55,931 59,070 (5) 51,641 8 ------------------------------------------------------------- 2,345,051 2,110,723 11 1,865,796 26 ------------------------------------------------------------- Total loans 6,824,068 6,378,623 7 5,542,626 23 ------------------------------------------------------------- Less allowance for loan losses 103,592 99,318 4 85,479 21 ------------------------------------------------------------- 6,720,476 6,279,305 7 5,457,147 23 Bank premises and equipment, net 754,253 701,246 8 524,870 44 Other assets 274,546 440,577 (38) 307,657 (11) ------------------------------------------------------------- $21,359,169 $19,837,312 8 % $15,374,269 39 % ============================================================= Liabilities Deposits: Demand: Interest-bearing $7,622,949 $6,616,309 15 % $5,162,886 48 % Noninterest-bearing 4,323,354 4,185,186 3 3,060,273 41 Savings 4,175,377 3,786,798 10 2,705,202 54 Time 3,433,417 3,198,789 7 2,951,275 16 ------------------------------------------------------------- Total deposits 19,555,097 17,787,082 10 13,879,636 41 --------- -------- Other borrowed money 155,849 507,975 (69) 142,468 9 Other liabilities 213,661 331,765 (36) 281,099 (24) Trust Capital Securities - Commerce Capital Trust I 0 0 0 0 0 Convertible Trust Capital Securities - Commerce Capital Trust II 200,000 200,000 0 200,000 0 Long-term debt 0 0 0 0 0 ------------------------------------------------------------- 20,124,607 18,826,822 7 14,503,203 39 Stockholders' Common stock 75,806 69,921 8 67,488 12 Equity Capital in excess of par or stated value 824,255 591,060 39 512,081 61 Retained earnings 303,221 265,239 14 169,125 79 Accumulated other comprehensive income 36,523 89,515 (59) 123,993 (71) ------------------------------------------------------------- 1,239,805 1,015,735 22 872,687 42 Less treasury stock, at cost 5,243 5,245 (0) 1,621 223 ------------------------------------------------------------- Total stockholders' equity 1,234,562 1,010,490 22 871,066 42 ------------------------------------------------------------- $21,359,169 $19,837,312 8 % $15,374,269 39 % =============================================================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) - ----------------------------------------------------------------------------------------------------------------------------- (dollars in thousands) September 30, June 30, 2003 ------------------------------------------------------------- 2003 Actual $ Change % Change - ----------------------------------------------------------------------------------------------------------------------------- Assets Cash and due from banks $775,696 $1,013,885 ($238,189) (23)% Federal funds sold 0 0 0 0 ------------------------------------------------------------- Cash and cash equivalents 775,696 1,013,885 (238,189) (23) Loans held for sale 94,596 91,285 3,311 4 Trading securities 220,433 209,451 10,982 5 Securities available for sale 10,416,934 10,259,811 157,123 2 Securities held to maturity 2,102,235 841,752 1,260,483 150 Loans 6,824,068 6,378,623 445,445 7 Less allowance for loan losses 103,592 99,318 4,274 4 ------------------------------------------------------------- 6,720,476 6,279,305 441,171 7 Reserve % 1.52% 1.56% Bank premises and equipment, net 754,253 701,246 53,007 8 Other assets 274,546 440,577 (166,031) (38) ------------------------------------------------------------- $21,359,169 $19,837,312 $1,521,857 8 % ============================================================= Liabilities Deposits: Demand: Interest-bearing $7,622,949 $6,616,309 $1,006,640 15 % Noninterest-bearing 4,323,354 4,185,186 138,168 3 Savings 4,175,377 3,786,798 388,579 10 Time 3,433,417 3,198,789 234,628 7 ------------------------------------------------------------- Total deposits 19,555,097 17,787,082 1,768,015 10 Core deposits 18,595,755 17,002,324 1,593,431 9 Total other liabilities 569,510 1,039,740 (470,230) (45) ------------------------------------------------------------- 20,124,607 18,826,822 1,297,785 7 Stockholders' Equity 1,234,562 1,010,490 224,072 22 ------------------------------------------------------------- $21,359,169 $19,837,312 $1,521,857 8 % ============================================================= - ----------------------------------------------------------------------------------------------------------- (dollars in thousands) September 30, 2002 ------------------------------------------- Actual $ Change % Change - ----------------------------------------------------------------------------------------------------------- Assets Cash and due from banks $740,604 $35,092 5 % Federal funds sold 87,900 (87,900) (100) ------------------------------------------- Cash and cash equivalents 828,504 (52,808) (6) Loans held for sale 66,612 27,984 42 Trading securities 197,386 23,047 12 Securities available for sale 7,093,561 3,323,373 47 Securities held to maturity 898,532 1,203,703 134 Loans 5,542,626 1,281,442 23 Less allowance for loan losses 85,479 18,113 21 ------------------------------------------- 5,457,147 1,263,329 23 Reserve % 1.54% Bank premises and equipment, net 524,870 229,383 44 Other assets 307,657 (33,111) (11) ------------------------------------------- $15,374,269 $5,984,900 39 % =========================================== Liabilities Deposits: Demand: Interest-bearing $5,162,886 $2,460,063 48 % Noninterest-bearing 3,060,273 1,263,081 41 Savings 2,705,202 1,470,175 54 Time 2,951,275 482,142 16 ------------------------------------------- Total deposits 13,879,636 5,675,461 41 Core deposits 12,896,204 5,699,551 44 Total other liabilities 623,567 (54,057) (9) ------------------------------------------- 14,503,203 5,621,404 39 Stockholders' Equity 871,066 363,496 42 ------------------------------------------- $15,374,269 $5,984,900 39 % ===========================================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) - ----------------------------------------------------------------------------------------------------------------------- September 30, December 31, ------------------------------- (dollars in thousands) 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- Assets Cash and due from banks $775,696 $811,434 Federal funds sold 0 0 ------------------------------- Cash and cash equivalents 775,696 811,434 Loans held for sale 94,596 96,920 Trading securities 220,433 326,479 Securities available for sale 10,416,934 7,806,779 Securities held to maturity 2,102,235 763,026 (market value 09/03-$2,090,082; 12/02-$791,889) Loans 6,824,068 5,822,589 Less allowance for loan losses 103,592 90,733 ------------------------------- 6,720,476 5,731,856 Bank premises and equipment, net 754,253 580,818 Other assets 274,546 286,669 ------------------------------- $21,359,169 $16,403,981 =============================== Liabilities Deposits: Demand: Interest-bearing $7,622,949 $5,635,351 Noninterest-bearing 4,323,354 3,243,091 Savings 4,175,377 2,861,677 Time 3,433,417 2,808,722 ------------------------------- Total deposits 19,555,097 14,548,841 Other borrowed money 155,849 391,641 Other liabilities 213,661 345,489 Convertible Trust Capital Securities - Commerce Capital Trust II 200,000 200,000 ------------------------------- 20,124,607 15,485,971 Stockholders' Common stock, 75,805,917 shares issued (68,043,171 shares in 2002) 75,806 68,043 Equity Capital in excess of par or stated value 824,255 538,795 Retained earnings 303,221 199,604 Accumulated other comprehensive income 36,523 113,614 ------------------------------- 1,239,805 920,056 Less treasury stock, at cost, 286,218 shares (209,794 shares in 2002) 5,243 2,046 ------------------------------- Total stockholders' equity 1,234,562 918,010 ------------------------------- $21,359,169 $16,403,981 ===============================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) - --------------------------------------------------------------------------------------------------------------------------------- Three Months Ended Nine Months Ended September 30, September 30, ------------------------------------- ------------------------------------ (dollars in thousands, except per share amounts) 2003 2002 % Change 2003 2002 % Change - ------------------------------------------------------------------------------------------ ------------------------------------ Interest Interest and fees on loans $98,889 $91,843 8 % $287,558 $260,625 10 % income Interest on investments 134,984 104,528 29 371,743 292,038 27 Other interest 28 404 (93) 205 684 (70) ------------------------------------ ------------------------------------ Total interest income 233,901 196,775 19 659,506 553,347 19 ------------------------------------ ------------------------------------ Interest Interest on deposits: expense Demand 12,090 14,504 (17) 36,448 42,119 (13) Savings 6,890 7,912 (13) 19,999 23,123 (14) Time 16,682 20,374 (18) 50,915 63,193 (19) ------------------------------------ ------------------------------------ Total interest on deposits 35,662 42,790 (17) 107,362 128,435 (16) Interest on other borrowed money 1,110 403 175 2,342 1,111 111 Interest on long-term debt 3,020 3,028 (0) 9,060 10,542 (14) ------------------------------------ ------------------------------------ Total interest expense 39,792 46,221 (14) 118,764 140,088 (15) ------------------------------------ ------------------------------------ Net interest income 194,109 150,554 29 540,742 413,259 31 Provision for loan losses 7,250 8,000 (9) 21,050 25,150 (16) ------------------------------------ ------------------------------------ Net interest income after provision for loan losses 186,859 142,554 31 519,692 388,109 34 Noninterest Deposit charges and service fees 41,500 33,802 23 115,107 94,394 22 income Other operating income 41,976 35,830 17 126,724 92,857 36 Net investment securities gains 1,682 0 0 2,763 0 0 ------------------------------------ ------------------------------------ Total noninterest income 85,158 69,632 22 244,594 187,251 31 ------------------------------------ ------------------------------------ Total Revenues 279,267 220,186 27 785,336 600,510 31 Noninterest Salaries and benefits 92,732 74,164 25 261,152 198,487 32 expense Occupancy 24,760 15,215 63 67,943 40,396 68 Furniture and equipment 21,770 17,012 28 63,552 47,705 33 Office 9,906 8,173 21 28,325 22,543 26 Marketing 9,412 7,850 20 23,886 18,823 27 Other 38,732 32,414 19 112,253 90,335 24 ------------------------------------ ------------------------------------ Total noninterest expenses 197,312 154,828 27 557,111 418,289 33 ------------------------------------ ------------------------------------ Income before income taxes 74,705 57,358 30 207,175 157,071 32 Provision for federal and state income taxes 25,231 19,669 28 69,494 52,830 32 ------------------------------------ ------------------------------------ Net income $49,474 $37,689 31 % $137,681 $104,241 32 % ==================================== ==================================== Net income per common and common equivalent share: Basic $0.70 $0.56 25 % $1.98 $1.56 27 % ------------------------------------ ------------------------------------ Diluted $0.67 $0.53 26 $1.90 $1.47 29 ------------------------------------ ------------------------------------ Average common and common equivalent shares outstanding: Basic 70,787 67,065 6 69,442 66,541 4 ------------------------------------ ------------------------------------ Diluted 73,926 71,084 4 72,614 70,704 3 ------------------------------------ ------------------------------------ Cash dividends, common stock $0.17 $0.15 10 % $0.50 $0.45 10 % ==================================== ====================================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) - ------------------------------------------------------------------------------------------------------------------------------- Three Months Ended ------------------------------------------------------------------------- September 30, June 30, September 30, ------------------------------------------------------------------------- (dollars in thousands, except per share amounts) 2003 2003 % Change 2002 % Change - ------------------------------------------------------------------------------------------------------------------------------- Interest Interest and fees on loans $98,889 $95,548 3 % $91,843 8 % income Interest on investments 134,984 123,098 10 104,528 29 Other interest 28 98 (71) 404 (93) ------------------------------------------ ------------------------- Total interest income 233,901 218,744 7 196,775 19 ------------------------------------------ ------------------------- Interest Interest on deposits: expense Demand 12,090 11,961 1 14,504 (17) Savings 6,890 6,754 2 7,912 (13) Time 16,682 17,387 (4) 20,374 (18) ------------------------------------------ ------------------------- Total interest on deposits 35,662 36,102 (1) 42,790 (17) Interest on other borrowed money 1,110 318 249 403 175 Interest on long-term debt 3,020 3,020 0 3,028 (0) ------------------------------------------ ------------------------- Total interest expense 39,792 39,440 1 46,221 (14) ------------------------------------------ ------------------------- Net interest income 194,109 179,304 8 150,554 29 Provision for loan losses 7,250 6,900 5 8,000 (9) ------------------------------------------ ------------------------- Net interest income after provision for loan losses 186,859 172,404 8 142,554 31 Noninterest Deposit charges and service fees 41,500 38,765 7 33,802 23 income Other operating income 41,976 43,388 (3) 35,830 17 Net investment securities gains 1,682 1,217 38 0 0 ------------------------------------------ ------------------------- Total noninterest income 85,158 83,370 2 69,632 22 ------------------------------------------ ------------------------- Total Revenues 279,267 262,674 6 220,186 27 Noninterest Salaries and benefits 92,732 86,338 7 74,164 25 expense Occupancy 24,760 22,695 9 15,215 63 Furniture and equipment 21,770 20,556 6 17,012 28 Office 9,906 9,233 7 8,173 21 Marketing 9,412 9,198 2 7,850 20 Other 38,732 39,658 (2) 32,414 19 ------------------------------------------ ------------------------- Total noninterest expenses 197,312 187,678 5 154,828 27 ------------------------------------------ ------------------------- Income before income taxes 74,705 68,096 10 57,358 30 Provision for federal and state income taxes 25,231 22,779 11 19,669 28 ------------------------------------------ ------------------------- Net income $49,474 $45,317 9 % $37,689 31 % ========================================== ========================= Net income per common and common equivalent share: Basic $0.70 $0.65 8 % $0.56 25 % ------------------------------------------ ------------------------- Diluted $0.67 $0.63 6 $0.53 26 ------------------------------------------ ------------------------- Average common and common equivalent shares outstanding: Basic 70,787 69,193 2 67,065 6 ------------------------------------------ ------------------------- Diluted 73,926 72,128 2 71,084 4 ------------------------------------------ ------------------------- Cash dividends, common stock $0.17 $0.16 3 % $0.15 10 % ========================================== ========================= Return on average assets 0.96 % 0.98 % 1.05 % Return on average equity 21.17 17.91 17.95
Commerce Bancorp, Inc. Selected Consolidated Financial Data (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------------------------ -------------------------------------- 2003 2002 % Change 2003 2002 % Change --------- ------------ --------- ----------- ---------- ---------- (dollars and shares in thousands) (dollars and shares in thousands) Income Statement Data: Net interest income $194,109 $150,554 29 % $540,742 $413,259 31 % Provision for loan losses 7,250 8,000 (9) 21,050 25,150 (16) Noninterest income 85,158 69,632 22 244,594 187,251 31 Total revenues 279,267 220,186 + 27 785,336 600,510 + 31 Noninterest expense 197,312 154,828 27 557,111 418,289 33 Net income 49,474 37,689 + 31 137,681 104,241 + 32 Per Share Data: Net income - Basic $0.70 $0.56 25 % $1.98 $1.56 27 % Net income - Diluted 0.67 0.53 + 26 1.90 1.47 + 29 Book value - Basic $16.35 $12.95 26 % Book value - Diluted 15.69 12.19 + 29 Revenue per share - Diluted $15.11 $12.39 + 22 % $14.42 $11.32 + 27 % Weighted Average Shares Outstanding: Basic 70,787 67,065 69,442 66,541 Diluted 73,926 71,084 72,614 70,704 Balance Sheet Data: Total assets $21,359,169 $15,374,269 + 39 % Loans (net) 6,720,476 5,457,147 23 Allowance for loan losses 103,592 85,479 21 Securities available for sale 10,416,934 7,093,561 47 Securities held to maturity 2,102,235 898,532 134 Total deposits 19,555,097 13,879,636 41 Core deposits 18,595,755 12,896,204 44 Convertible Trust Capital Securities - Commerce Capital Trust II 200,000 200,000 - Stockholders' equity 1,234,562 871,066 + 42 Capital: Stockholders' equity to total assets 5.78 % 5.67 % Risk-based capital ratios: Tier I 12.82 11.54 Total capital 13.78 12.59 Leverage ratio 6.68 6.59 Performance Ratios: Cost of funds 0.85 % 1.40 % 0.94 % 1.57 % Net interest margin 4.21 4.65 4.39 4.74 Return on average assets 0.96 1.05 0.98 1.06 Return on average total stockholders' equity 21.17 17.95 18.97 18.59
The following summary presents information regarding non-performing loans and assets as of September 30, 2003 and the preceding four quarters (dollar amounts in thousands). September 30, June 30, March 31, December 31, September 30, 2003 2003 2003 2002 2002 ---------------- --------------- --------------- ---------------- --------------- Non-accrual loans: Commercial $7,295 $7,049 $4,874 $5,412 $7,213 Consumer 8,295 9,517 9,860 6,326 5,512 Real estate: Construction - - - 131 131 Mortgage 7,502 5,970 4,249 2,299 2,389 ---------------- --------------- --------------- ---------------- --------------- Total non-accrual loans 23,092 22,536 18,983 14,168 15,245 ---------------- --------------- --------------- ---------------- --------------- Restructured loans: Commercial 2 3 4 5 6 Consumer - - - Real estate: Construction - - - Mortgage - - - ---------------- --------------- --------------- ---------------- --------------- Total restructured loans 2 3 4 5 6 ---------------- --------------- --------------- ---------------- --------------- Total non-performing loans 23,094 22,539 18,987 14,173 15,251 ---------------- --------------- --------------- ---------------- --------------- Other real estate 1,670 1,540 3,553 3,589 2,367 ---------------- --------------- --------------- ---------------- --------------- Total non-performing assets 24,764 24,079 22,540 17,762 17,618 ---------------- --------------- --------------- ---------------- --------------- Loans past due 90 days or more and still accruing 649 434 376 620 900 ---------------- --------------- --------------- ---------------- --------------- Total non-performing assets and loans past due 90 days or more $25,413 $24,513 $22,916 $18,382 $18,518 ================ =============== =============== ================ =============== Total non-performing loans as a percentage of total period-end loans 0.34% 0.35% 0.32% 0.24% 0.28% Total non-performing assets as a percentage of total period-end assets 0.12% 0.12% 0.13% 0.11% 0.11% Total non-performing assets and loans past due 90 days or more as a percentage of total period-end assets 0.12% 0.12% 0.13% 0.11% 0.12% Allowance for loan losses as a percentage of total non-performing loans 449% 441% 499% 640% 560% Allowance for loan losses as a percentage of total period-end loans 1.52% 1.56% 1.58% 1.56% 1.54% 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 Nine Months Ended Year ---------------------------- ---------------------------- Ended 09/30/03 09/30/02 09/30/03 09/30/02 12/31/02 ----------- ---------- ----------- ---------- -------------- Balance at beginning of period $99,318 $80,098 $90,733 $66,981 $66,981 Provisions charged to operating expenses 7,250 8,000 21,050 25,150 33,150 ------------ ---------- ------------ ---------- -------------- 106,568 88,098 111,783 92,131 100,131 Recoveries on loans charged-off: Commercial 111 52 456 457 815 Consumer 239 61 516 281 339 Commercial real estate - 22 - 23 176 ------------ ---------- ------------ ---------- -------------- Total recoveries 350 135 972 761 1,330 Loans charged-off: Commercial (1,608) (1,926) (4,673) (4,987) (7,181) Consumer (1,684) (828) (4,439) (2,393) (3,514) Commercial real estate (34) - (51) (33) (33) ------------ ---------- ------------ ---------- -------------- Total charge-offs (3,326) (2,754) (9,163) (7,413) (10,728) ------------ ---------- ------------ ---------- -------------- Net charge-offs (2,976) (2,619) (8,191) (6,652) (9,398) ------------ ---------- ------------ ---------- -------------- Balance at end of period $103,592 $85,479 $103,592 $85,479 $90,733 ============ ========== ============ ========== ============== Net charge-offs as a percentage of average loans outstanding 0.18 % 0.19 % 0.17 % 0.17 % 0.18 % Net Reserve Additions $4,274 $5,381 $12,859 $18,498 $23,752
Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income (unaudited) ----------------------------------------------------------------------------------------------- September 2003 June 2003 September 2002 --------------------------- ------------------------------ ------------------------------ Average Average Average Average Average Average Balance Interest Rate Balance Interest Rate Balance Interest Rate --------------------------- ------------------------------ ------------------------------ (dollars in thousands) Earning Assets - ------------------------------------ Investment securities Taxable $11,605,502 $131,158 4.48 % $10,026,080 $119,147 4.77 % $7,281,082 $102,306 5.57 % Tax-exempt 229,566 3,771 6.52 192,892 3,689 7.67 88,711 1,325 5.92 Trading 155,541 2,115 5.40 158,297 2,389 6.05 168,668 2,095 4.93 ----------- --------- ----- ----------- -------- ----- ----------- -------- ------ Total investment securities 11,990,609 137,044 4.53 10,377,269 125,225 4.84 7,538,461 105,726 5.56 Federal funds sold 10,641 28 1.04 32,095 97 1.21 95,341 403 1.68 Loans Commercial mortgages 2,520,594 39,189 6.17 2,319,945 37,156 6.42 2,131,809 36,868 6.86 Commercial 1,612,069 21,968 5.41 1,552,400 21,587 5.58 1,253,565 19,230 6.09 Consumer 2,262,426 34,309 6.02 2,109,143 33,336 6.34 1,865,040 33,252 7.07 Tax-exempt 271,436 5,266 7.70 264,737 5,338 8.09 178,956 3,835 8.50 ----------- --------- ----- ----------- -------- ----- ----------- -------- ------ Total loans 6,666,525 100,732 5.99 6,246,225 97,417 6.26 5,429,370 93,185 6.81 ----------- --------- ----- ----------- -------- ----- ----------- -------- ------ Total earning assets $18,667,775 $237,804 5.06 % $16,655,589 $222,739 5.36 % $13,063,172 $199,314 6.05 % ============ ============ ============ Sources of Funds - ------------------------------------ Interest-bearing liabilities Regular savings $3,938,114 $6,889 0.69 % $3,477,229 $6,755 0.78 % $2,498,700 $7,912 1.26 % Interest checking accounts 484,279 874 0.72 437,455 734 0.67 352,234 1,031 1.16 Money market plus 6,808,745 11,216 0.65 5,989,878 11,226 0.75 4,389,903 13,472 1.22 Time deposits 2,470,306 13,849 2.22 2,313,690 14,093 2.44 1,958,165 15,021 3.04 Public funds 813,271 2,834 1.38 878,005 3,294 1.50 1,001,570 5,353 2.12 ----------- --------- ----- ----------- -------- ----- ----------- -------- ------ Total deposits 14,514,715 35,662 0.97 13,096,257 36,102 1.11 10,200,572 42,789 1.66 Other borrowed money 727,128 1,111 0.61 278,780 318 0.46 99,819 403 1.60 Long-term debt 200,000 3,020 5.99 200,000 3,020 6.06 200,000 3,029 6.01 ----------- --------- ----- ----------- -------- ----- ----------- -------- ------ Total deposits and interest-bearing liabilities 15,441,843 39,793 1.02 13,575,037 39,440 1.17 10,500,391 46,221 1.75 Noninterest-bearing funds (net) 3,225,932 3,080,552 2,562,781 ----------- --------- ----- ----------- -------- ----- ----------- -------- ------ Total sources to fund earning assets $18,667,775 39,793 0.85 $16,655,589 39,440 0.95 $13,063,172 46,221 1.40 ============ --------- ----- ============ -------- ----- ============ -------- ------ Net interest income and margin tax-equivalent basis $198,011 4.21 % $183,299 4.41 % $153,093 4.65 % ========= ===== ======== ===== ======== ====== Other Balances - ------------------------------------ Cash and due from banks $971,495 $945,600 $671,394 Other assets 1,180,451 994,784 708,005 Total assets 20,717,697 18,498,841 14,359,739 Total deposits 18,611,894 16,734,886 12,970,854 Demand deposits (noninterest-bearing) 4,097,179 3,638,629 2,770,282 Other liabilities 243,799 273,183 248,999 Stockholders' equity 934,876 1,011,992 840,067 Allowance for loan losses 102,024 97,132 82,832 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 Detail of Selected Balance Sheet Accounts (unaudited) - --------------------------------------------------------------------------------------------------------------------- (dollars in thousands) September 30, June 30, December 31, ------------------------------------------------------------- 2003 2003 2002 - --------------------------------------------------------------------------------------------------------------------- Bank Premises and Equipment Land $ 175,890 $ 156,342 $ 123,880 Buildings 324,107 297,320 247,508 Leasehold Improvements 71,065 62,443 43,130 Furniture, Fixtures & Equipment 318,266 304,581 265,712 Capital Leases 124 124 124 ------------------------------------------------------------- 889,452 820,810 680,354 Less: Accumulated Depreciation (231,034) (217,708) (181,165) ------------------------------------------------------------- 658,418 603,102 499,189 Premises and Equipment In Progress 95,835 98,144 81,629 ------------------------------------------------------------- Total Bank premises and equipment, net $ 754,253 $ 701,246 $ 580,818 ============================================================= Other Assets Goodwill & Intangible Assets $ 10,007 $ 10,155 $ 8,570 Other Real Estate 1,670 1,540 3,589 Overdrafts 24,851 23,115 25,994 Accrued Interest 96,333 74,226 67,758 Prepaid Expenses 21,888 21,753 11,500 Other Investments 24,178 26,055 19,037 HBCU - Black College Program - 77,342 75,196 Receivable for Unsettled Trades - 125,742 - Operating Leased Equipment 18,140 14,990 12,826 Bankers Acceptances Sold 9,380 8,433 - Trust Preferred Issuance Costs 5,128 5,173 5,263 Bank Owned Life Insurance - Acquired 5,255 5,201 5,083 Accounts Receivable - Commerce Insurance 27,041 28,240 22,872 Other Assets - Commerce Capital Markets 17,190 11,223 6,301 Other Miscellaneous Assets 13,485 7,389 22,680 ------------------------------------------------------------- Total Other Assets $ 274,546 $ 440,577 $ 286,669 =============================================================
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