-----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, SZ8D9YAHsnDAZAWoY4s0Hb6l/gDabK72TdNyRIzlg5CUBQO+yfriECI3fjC74KAP mszHYjmU2OeABVaPvDrvng== 0000950159-05-000017.txt : 20050113 0000950159-05-000017.hdr.sgml : 20050113 20050113162615 ACCESSION NUMBER: 0000950159-05-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050113 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050113 DATE AS OF CHANGE: 20050113 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: 05528451 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 comm8k10-9.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): January 13, 2005 ---------------- Commerce Bancorp, Inc. ---------------------- (Exact name of registrant as specified in its charter) New Jersey 1-12069 22-2433468 ---------- --------------------- --------------- (State or other (Commission File Number) (IRS Employer jurisdiction Identification of incorporation) 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 ------------ N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ___ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act ___ (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the ___ Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the ___ Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On January 13, 2005 the Registrant issued a press release reporting its results for the fourth quarter of 2004. A copy of the press release is attached as Exhibit 99.1 to this report. On January 13, 2005 the Registrant also made certain supplemental information available. A copy of the supplemental information is attached as Exhibit 99.2 to this report. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1 Press Release, dated January 13, 2005 99.2 Supplemental Information. 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. COMMERCE BANCORP, INC. Date: January 13, 2005 By: /s/ DOUGLAS J. PAULS ----------------------------- Douglas J. Pauls Senior Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. 99.1 Press Release, dated January 13, 2005. 99.2 Supplemental Information. EX-99 2 ex99-1.txt EXHIBIT 99.1 COMMERCE BANCORP [GRAPHIC OMITTED] CONTACTS -------- Vernon W. Hill, II C. Edward Jordan, Jr. Chairman and President Executive Vice President (856) 751-9000 COMMERCE BANCORP 2004 NET INCOME UP 41% January 13, 2005 - Cherry Hill, New Jersey - Commerce Bancorp, Inc. (NYSE Symbol: CBH) reported record earnings and increased deposits, assets and loans for the fourth quarter of 2004, announced Vernon W. Hill, II, Chairman of the multi-bank holding company.
FOURTH QUARTER FINANCIAL HIGHLIGHTS ----------------------------------- December 31, 2004 Three Months Ended Year Ended ------------------ ---------- 12/31/04 12/31/03 % Increase 12/31/04 12/31/03 % Increase -------- -------- ---------- -------- -------- ---------- (dollars in millions, except per share data) Total Assets: $30,501 $22,712 34% Total Deposits: 27,659 20,701 34% Total (Net) Loans: 9,319 7,329 27% ------------------------------------------------------------------------------------------------------------------- Total Revenues: $374.9 $303.0 24% $1,392.9 $1,088.3 28% Net Income: 75.1 56.6 33% 273.4 194.3 41% Net Income Per Share: $.88 $.70 26% $3.26 $2.58 26%
Chairman's Statement - -------------------- Vernon W. Hill, II, Chairman, commenting on the Company's financial results said, "strong deposit growth and positive operating leverage produced another record quarter of performance." Financial highlights were: o Net income increased 33% for the fourth quarter of 2004 to $75.1 million. o Earnings per share rose 26% for the fourth quarter to $.88. o Revenue growth of 24% exceeded expense growth of 23% for the fourth quarter. o Net interest income grew 29% during the fourth quarter. The net interest margin for the fourth quarter was 4.16%. o Core deposits grew 35% for the prior 12 months. Core deposits grew by $1.5 billion during the fourth quarter of 2004 and $6.9 billion for 2004. o Annualized deposit growth per store was $ 26 million. o Comparable store deposits for stores open two years or more grew 24% (29% excluding time deposits). Comparable store deposits for stores open one year or more grew 32%. o Stockholder's equity increased 30% to $1.7 billion. o The Company opened 49 new stores in 2004, an increase of 18%, bringing the total number of stores to 319. 22 stores were opened in the fourth quarter in the following areas: Metropolitan New York 16 Metropolitan Philadelphia 6 o For 2005, the Company plans to open 55-60 stores including our first stores in Metro Washington, D.C. o The Company expects to meet or exceed the current First Call E.P.S. consensus projections of $.90 for the first quarter of 2005 and $3.81 for the year. o Prior year E.P.S. amounts reflect the mandatory restatement required by recent FASB guidance related to the Company's 5.95% Convertible Trust Preferred Securities. The restatement impacts 2003 results by $.01 for the fourth quarter and $.03 for the year.
Income Statement - ---------------- Three Months Ended Year Ended December 31 December 31 - ------------------------------------------------------------------------------------------------------------------------------------ 2004 2003 % Increase 2004 2003 % Increase - ------------------------------------------------------------------------------------------------------------------------------------ (dollar in thousands, except per share data) Total Revenues: $374,893 $303,008 24% $1,392,856 $1,088,344 28% Total Expenses: 253,111 206,281 23 938,778 763,392 23 Net Income: 75,118 56,606 33 273,418 194,287 41 -------- -------- -------- -------- -------- -------- Net Income Per Share: $.88 $.70 26% $3.26 $2.58 26% -------- -------- -------- -------- -------- -------- Balance Sheet Linked Quarter -------------- 12/31/04 12/31/03 % Increase 9/30/04 $ Increase % Increase -------------------------------------------------------------------------------------- (dollars in millions) Total Assets: $30,501 $22,712 34% $28,431 $2,070 7% Total Loans (Net): 9,319 7,329 27 8,779 540 6 Core Deposits: 26,657 19,779 35 25,109 1,548 6 Total Deposits: 27,659 20,701 34 26,242 1,417 5 Shareholder Returns December 31, 2004 --------------------------- Commerce S & P Index -------- ----------- 1 Year 24% 11% 5 Years 29% -2% 10 Years 29% 12%
3
Growth Targets - -------------- Last 5 Year Actual % Growth Targets Growth % Fourth Quarter 2004 -------------- ------------ ------------------- Total Deposits: 25% 39% 34% Comp Store Deposits: 18 23 24 Total Revenue: 25 31 24 Net Income 25 36 33 Earnings Per Share 20 27 26 Total Deposits - -------------- The Company's deposit growth continues with total deposits at December 31, 2004 of $27.7 billion, a $7.0 billion increase or 34% over total deposits of $20.7 billion a year ago, including growth of $1.4 billion in the fourth quarter. 12/31/04 12/31/03 $ Increase % Increase -------- -------- ---------- ---------- (dollars in millions) Core Deposits $26,657 $19,779 $6,878 35% ----- Total Deposits $27,659 $20,701 $6,958 34% ----- Regional Deposit Growth - ----------------------- Deposit growth by region is as follows: # of $ % Annualized Stores 12/31/04 12/31/03 Increase Increase Growth/Store ------ -------- -------- -------- -------- ----------- (dollars in millions) Northern New Jersey 116 $9,060 $7,251 $1,809 25% $19 New York City 37 3,195 1,480 1,715 116 54 Long Island/NY State 25 2,326 1,203 1,123 93 68 ------ -------- -------- -------- -------- -------- Metro New York 178 $14,581 $9,934 $4,647 47% $33 Metro Philadelphia 141 $13,078 10,767 2,311 21 17 ------ -------- -------- -------- -------- -------- Total 319 $27,659 $20,701 $6,958 34% $26
Based on FDIC deposit information as of June 30, 2004, the average bank branch in America grew $2.4 million compared to the Company's growth of $26 million. 4 Comparable Store Deposit Growth - ------------------------------- Comparable store deposit growth is measured as the year-over-year percentage increase in core deposits for stores open two years or more at the balance sheet date. Additional information is provided below for stores opened one year or more at the balance sheet date. At December 31, 2004 the Company had 62 stores in New York State. Of these stores, 19 are included in the comparable store growth for stores open 2 years or more and 41 are included in the comparable store growth for stores open one year or more at the balance sheet date.
Stores Open 2 Stores Open 1 Years or More Year or More ----------------------------- ----------------------------- # of Comp Store # of Comp Store Stores Increase Stores Increase ------- ---------- ------- ---------- Metro Philadelphia 119 21% 131 24% Northern New Jersey 86 22 98 26 New York City 11 45 25 82 Long Island/NY State 8 43 16 81 ------- ---------- ------- ---------- Total 224 24% 270 32% Excluding time deposits, which include the Company's highest deposit cost of funds, comparable store deposit growth for stores open two years or more was 29%. Core Deposits - ------------- Core deposit growth by type of account is as follows: 4th Quarter Cost of Annual 12/31/04 12/31/03 Funds Growth % -------- -------- ----- -------- (dollars in millions) Demand $6,407 $ 4,575 .00% 40% Interest Bearing Demand 11,604 8,574 1.26 35 Savings 6,166 4,222 1.00 46 -------- -------- ----- -------- Subtotal 24,177 17,371 .87% 39% Time 2,480 2,408 2.00 3 Total Core Deposits: $26,657 $19,779 .98% 35%
5
Core deposit growth by type of customer is as follows: Annual Comp Store 12/31/04 % Total 12/31/03 % Total Growth % Growth % -------- ------- -------- ------- -------- -------- (dollars in millions) Consumer $12,227 46% $ 9,760 49% 25% 13% Commercial 9,138 34 6,599 34 38 28 Government 5,292 20 3,420 17 55 45 -------- ------- -------- ------- -------- -------- Total $26,657 100% $ 19,779 100% 35% 24% -------- ------- -------- ------- -------- --------
Core deposits, excluding government deposits, grew $5.0 billion or 31% over the year ago period.
Government Core Deposits - ------------------------ Government core deposits by state are as follows: Annual # of Growth Relationships 12/31/04 Rate % Total --------------- -------- -------- ------- (dollars in millions) New Jersey 648 $3,147 38% 60% Pennsylvania 193 1,082 80 20 New York 104 1,063 98 20 --------------- -------- -------- ------- Total 945 $5,292 55% 100%
Net Income and Earnings Per Share - --------------------------------- Net income totaled $75.1 million for the fourth quarter of 2004, up $18.5 million or 33% over net income of $56.6 million for the fourth quarter of 2003. On a diluted per share basis, net income for the fourth quarter was $.88 compared to $.70 for the fourth quarter of 2003, a 26% increase. 6
Three Months Ended Year Ended ------------------ ---------- 12/31/04 12/31/03 % Increase 12/31/04 12/31/03 % Increase -------- -------- ---------- -------- -------- ---------- (dollars in thousands, except per share data) Net Income $75,118 $56,606 33% $273,418 $194,287 41% Earnings Per Share $.88 $.70 26% $3.26 $2.58 26% For the year ended December 31, 2004, net income totaled $273.4 million, up $79.1 million or 41% over net income of $194.3 million for the year ended December 31, 2003. On a diluted per share basis, net income for the year ended December 31, 2004 was $3.26 compared to $2.58 for the year ended December 31, 2003, a 26% increase. Total Revenues Three Months Ended Year Ended ------------------ ---------- 12/31/04 12/31/03 % Increase 12/31/04 12/31/03 % Increase -------- -------- ---------- -------- -------- ---------- (dollars in thousands, except per share data) Total Revenues $374,893 $303,008 24% $1,392,856 $1,088,344 28% Revenue Per Share $17.15 $14.47 19% $16.14 $13.91 16%
Net Interest Income and Net Interest Margin - ------------------------------------------- Net interest income for the fourth quarter totaled $278.4 million, a 29% increase over the $215.1 million recorded a year ago. For the year ended December 31, 2004, the Company recorded net interest income of $1.0 billion, a 35% increase over the $755.9 million earned in the year ended December 31, 2003. The increase in net interest income in both the quarter and year was due to the volume increases in interest earning assets resulting from the Company's strong, low-cost core deposit growth. The net interest margin for the fourth quarter of 2004 was 4.16%, down 13 basis points from the third quarter of 2004, and down 11 basis points from the 4.27% margin for the fourth quarter of 2003. On a tax equivalent basis, the Company recorded $283.7 million in net interest income in the fourth quarter of 2004, an increase of $64.6 million or 29% over the fourth quarter of 2003. Net interest income on a tax equivalent basis of $1.0 billion was earned in the year ended December 31, 2004, an increase of $264.7 million or 34% over the year ended December 31, 2003. 7
Net Interest Income and Rate/Volume Analysis - -------------------------------------------- As shown below, the increase in net interest income on a tax equivalent basis was due to volume increases in the Company's earning assets, which were fueled by the Company's continued growth of low-cost core deposits. Net Interest Income ---------------------------------------------------------- December Volume Rate Total % 2004 vs. 2003 Increase Change Increase Increase ------------- -------- ------ -------- -------- (dollars in thousands) Quarter $ 72,240 ($7,624) $ 64,616 29% Year $284,946 ($20,278) $264,668 34%
Non-Interest Income - ------------------- Non-interest income for the fourth quarter of 2004 increased to $96.5 million from $87.9 million a year ago, a 10% increase, which is primarily attributable to the increase in deposit charges and service fees of 38%. The growth in non-interest income for the fourth quarter and the year ended December 31, 2004 is more fully depicted below:
Three Months Ended Year Ended ------------------ ---------- 12/31/04 12/31/03 % Increase 12/31/04 12/31/03 % Increase -------- -------- ---------- -------- -------- ---------- (dollars in thousands) Deposit Charges & Service Fees $62,847 $45,556 38% $218,126 $160,678 36% Other Operating Income: Commerce Insurance 16,395 15,614 5 72,479 66,482 9 Commerce Capital Markets 3,435 13,683 (75) 28,053 42,518 (34) Loan Brokerage Fees 3,384 4,628 (27) 13,189 27,169 (51) Other 9,753 7,315 33 40,585 31,780 28 -------------------------------------------------------------------------------- Total Other Operating Income 32,967 41,240 (20) 154,306 167,949 (8) Net Investment Securities Gains 637 1,088 (41) 2,639 3,851 (31) -------------------------------------------------------------------------------- Total Non-Interest Income $96,451 $87,884 10% $375,071 $332,478 13%
Non-interest income for Commerce Capital Markets was impacted by the exit from the government public finance business during the third quarter as well as lower municipal trading results during the fourth quarter of 2004. 8 Non-Interest Expenses - --------------------- Non-interest expenses for the fourth quarter of 2004 were $253.1 million, up 23% from $206.3 million a year ago. Non-interest expenses for the year ended December 31, 2004 were $938.8 million, up 23% from $763.4 million for the year ended December 31, 2003. The increase in non-interest expenses for the fourth quarter and the year ended December 31, 2004 was widespread throughout non-interest expense categories, reflecting the Company's store expansion program. The Company continued to experience positive operating leverage in the fourth quarter, as revenue growth of 24% exceeded non-interest expense growth of 23%. Lending - ------- Loans increased 27% to $9.5 billion from the fourth 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 store locations, market expansion and added lending personnel. Geographically, loan growth has occurred in the following markets:
Portfolio Geographical Growth ----------------------------- 12/31/04 12/31/03 Growth Rate % of Total Growth -------- -------- ----------- ----------------- (dollars in millions) Metro Philadelphia $5,617 $4,659 21% 48% Northern New Jersey 2,731 2,219 23 25 New York/Long Island 1,107 563 97 27 -------- -------- -------- -------- Total: $9,455 $7,441 27% 100% Loan Composition ---------------- 12/31/04 % of Total 12/31/03 % of Total $ Increase % Increase -------- ---------- -------- ---------- ---------- ---------- (dollars in millions) Commercial $2,452 26% $1,988 27% $464 23% Owner-Occupied 1,998 21% 1,619 22% 379 23% -------- -------- -------- -------- -------- -------- Total Commercial 4,450 47% 3,607 49% 843 23% Consumer 3,342 35% 2,524 34% 818 32% Commercial Real Estate 1,663 18% 1,310 17% 353 27% -------- -------- -------- -------- -------- Gross Loans $9,455 100% $7,441 100% $2,014 Less: Reserves (136) (112) (24) -------- -------- -------- Net Loans $9,319 $7,329 $1,990 27% 9 Asset Quality - ------------- Quarter Ended ------------- 12/31/04 9/30/04 12/31/03 -------- ------- -------- Non-Performing Assets/Assets .11% .14% .11% Net Loan Charge-Offs .18% .18% .13% Loan Loss Reserve/Gross Loans 1.43% 1.48% 1.51% Non-Performing Loan Coverage 413% 353% 515% Non-Performing Assets/Capital 2% 2% 2% and Reserves
Non-performing assets and loans past due 90 days at December 31, 2004 totaled $34.1 million or .11% of total assets, versus $24.1 million, or .11% of total assets a year ago. Investments - ----------- At December 31, 2004, total investments increased to $18.5 billion. The available for sale and held to maturity portfolios totaled $8.0 and $10.5 billion, respectively. During the quarter, the Company transferred approximately $6 billion of securities classified as available for sale to the held to maturity classification based upon the Company's liquidity and annual cash flow from deposit growth and bond and loan prepayments. The aggregate market value of the securities transferred equaled their book value, with no effect on stockholders' equity, regulatory capital or results of operations.
Available Held to Product Description For Sale Maturity Total ------------------- -------- -------- ----- (in millions) Mortgage-backed Securities: Federal Agencies Pass Through $1,740 $2,445 $4,185 Certificates (AAA Rated) Collateralized Mortgage 5,770 7,040 12,810 Obligations (AAA Rated) Obligations of State and 534 979 1,513 Political Subdivisions/Other ------------------------ -------------------- ------------- Total $8,044 $10,464 $18,508 ======================== ==================== ============= Duration (in years) 2.69 3.62 3.22 Average Life (in years) 3.11 4.33 3.80 Quarterly Average Yield 4.82% 4.91% 4.86%
At December 31, the after tax appreciation of the Company's available for sale portfolio was $20.9 million. 10 Linked Quarter Comparison - ------------------------- A comparison of financial results for the quarter ended December 31, 2004 to the previous quarter ended September 30, 2004 is as follows: (dollars in thousands, except per share data)
Three Months Ended Linked Quarter ------------------ -------------- 12/31/04 9/30/04 $ Change % Change -------- ------- -------- -------- Total Assets $30,501,645 $28,431,481 $ 2,070,164 7% Total Loans (Net) 9,318,991 8,779,438 539,553 6 Core Deposits 26,656,530 25,108,705 1,547,825 6 Total Deposits 27,658,885 26,241,632 1,417,253 5 Total Revenues 374,893 364,495 10,398 3 Net Interest Income 278,442 264,382 14,060 5 Non-Interest Income 96,451 100,113 (3,662) (4) Non-Interest Expense 253,111 247,162 5,949 2 Net Income 75,118 70,090 5,028 7 Net Income Per Share $ .88 $ .84 $ .04 5
11 Capital Resources - ----------------- Stockholders' equity at December 31, 2004 increased to $1.7 billion, a $388.4 million increase, or 30% over stockholders' equity of $1.3 billion at December 31, 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. The Company may call its $200 million, 5.95% Convertible Trust Preferred Securities on or after March 11, 2005, provided various terms and conditions are met, primarily related to the market price of the Company's common stock. The Company's common stock must trade at a price of $63.30 or higher for 20 trading days in a period of 30 consecutive trading days in order for the Company to force conversion. Return on average stockholders equity (ROE) for the fourth quarter and year ended December 31, 2004 is shown in the table below: Return on Equity Three Months Ended Year Ended ------------------ ---------- 12/31/04 12/31/03 12/31/04 12/31/03 -------- -------- -------- -------- 18.48% 18.46% 18.78% 18.81% The Company's capital ratios at December 31, 2004 were as follows: Regulatory Guidelines Commerce "Well Capitalized" -------- --------------------- Leverage Ratio 6.19% 5.00% Tier I 12.31 6.00% Total Capital 13.26 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 store) sales and increased deposits from newly opened stores. o "Same Store Sales" ---------------- Comparable store deposits for stores open two years or more grew 24% (29% excluding time deposits). Comparable store deposits for stores open one year or more grew 32%. 12 o New Stores ---------- During the fourth quarter of 2004, the Company opened 22 new stores, increasing the total stores opened to 319. During the last three years, the Company has opened 135 of its 319 stores. Stores opened during the fourth quarter were as follows: Metropolitan New York --------------------- Location County -------- ------- Queens/Ridgewood Queens (NY) Huntington Station Suffolk (NY) 43rd & 6th New York (NY) Hackensack/Courthouse Bergen (NJ) Roselle Union (NJ) Old Bridge/Route 9 Middlesex (NJ) Union/Chestnut Union (NJ) Westfield Union (NJ) Mamaroneck/Rye Westchester (NY) Port Chester Westchester (NY) Mount Kisco Westchester (NY) Stony Point Rockland (NY) Roxbury Morris (NJ) Jackson Heights Queens (NY) Hazlet Monmouth (NJ) Fairlawn/River Road Bergen (NJ) Metropolitan Philadelphia ------------------------- Location County -------- ------ 15th & JFK Philadelphia (PA) Pennsauken Camden (NJ) Bensalem/Neshaminy Bucks (PA) Plymouth Meeting Montgomery (PA) Dover Kent (DE) East Goshen Chester (PA) For 2005, the Company plans to open 55 - 60 stores in Metro New York, Philadelphia and Washington, D.C. 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 3 exhibit99-2.txt EXHIBIT 99.2
Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) - ---------------------------------------------------------------------------------------------------------------------------------- December 31, September 30, December 31, -------------------------------------------------------------- (dollars in thousands) 2004 2004 % Change 2003 % Change - ---------------------------------------------------------------------------------------------------------------------------------- Assets Cash and due from banks $1,050,806 $1,069,318 (2)% $910,092 15 % Federal funds sold 0 255,000 (100) 0 0 -------------------------------------------------------------- Cash and cash equivalents 1,050,806 1,324,318 (21) 910,092 15 Loans held for sale 44,072 36,740 20 42,769 3 Trading securities 169,103 245,258 (31) 170,458 (1) Securities available for sale 8,044,150 12,692,985 (37) 10,650,655 (24) Securities held to maturity 10,463,658 4,080,134 156 2,490,484 320 Loans: Commercial real estate: Investor developer 1,455,891 1,391,812 5 1,167,672 25 Residential construction 206,924 182,443 13 142,567 45 -------------------------------------------------------------- 1,662,815 1,574,255 6 1,310,239 27 Commercial loans: Term 1,283,476 1,184,854 8 1,027,526 25 Line of credit 1,168,542 1,105,510 6 959,158 22 Demand 0 0 0 1,077 (100) -------------------------------------------------------------- 2,452,018 2,290,364 7 1,987,761 23 Owner-occupied 1,998,203 1,913,351 4 1,619,079 23 -------------------------------------------------------------- 4,450,221 4,203,715 6 3,606,840 23 Consumer: Mortgages (1-4 family residential) 1,336,686 1,216,110 10 918,686 45 Installment 140,603 136,538 3 138,437 2 Home equity 1,795,378 1,712,733 5 1,405,795 28 Credit lines 68,908 67,616 2 60,579 14 -------------------------------------------------------------- 3,341,575 3,132,997 7 2,523,497 32 -------------------------------------------------------------- Total loans 9,454,611 8,910,967 6 7,440,576 27 Less allowance for loan losses 135,620 131,529 3 112,057 21 -------------------------------------------------------------- 9,318,991 8,779,438 6 7,328,519 27 Bank premises and equipment, net 1,059,519 963,459 10 811,451 31 Other assets 351,346 309,149 14 307,752 14 -------------------------------------------------------------- $30,501,645 $28,431,481 7 % $22,712,180 34 % ============================================================== Liabilities Deposits: Demand: Noninterest-bearing $6,406,614 $6,047,322 6 % $4,574,714 40 % Interest-bearing 11,604,066 10,886,783 7 8,574,297 35 Savings 6,490,263 6,104,644 6 4,222,282 54 Time 3,157,942 3,202,883 (1) 3,330,107 (5) -------------------------------------------------------------- Total deposits 27,658,885 26,241,632 5 20,701,400 34 Other borrowed money 661,195 165,853 299 311,510 112 Other liabilities 315,860 274,377 15 221,982 42 Convertible Trust Capital Securities - Commerce Capital Trust II 200,000 200,000 0 200,000 0 -------------------------------------------------------------- 28,835,940 26,881,862 7 21,434,892 35 Stockholders' Common stock 80,318 79,436 1 76,869 4 Equity Capital in excess of par or stated value 1,031,794 967,296 7 866,095 19 Retained earnings 543,978 501,477 8 347,365 57 Accumulated other comprehensive income 20,953 12,748 64 (3,702) (666) -------------------------------------------------------------- 1,677,043 1,560,957 7 1,286,627 30 Less treasury stock, at cost 11,338 11,338 0 9,339 21 -------------------------------------------------------------- Total stockholders' equity 1,665,705 1,549,619 7 1,277,288 30 -------------------------------------------------------------- $30,501,645 $28,431,481 7 % $22,712,180 34 % ==============================================================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) - ---------------------------------------------------------------------------------------------------------------------------------- (dollars in thousands) December 31, September 30, 2004 December 31, 2003 ------------------------------------------------------------------------------------- 2004 Actual $ Change % Change Actual $ Change % Change - ---------------------------------------------------------------------------------------------------------------------------------- Assets Cash and due from banks $1,050,806 $1,069,318 ($18,512) (2)% $910,092 $140,714 15 % Federal funds sold 0 255,000 (255,000) (100) 0 0 0 ------------------------------------------------------------------------------------- Cash and cash equivalents 1,050,806 1,324,318 (273,512) (21) 910,092 140,714 15 Loans held for sale 44,072 36,740 7,332 20 42,769 1,303 3 Trading securities 169,103 245,258 (76,155) (31) 170,458 (1,355) (1) Securities available for sale 8,044,150 12,692,985 (4,648,835) (37) 10,650,655 (2,606,505) (24) Securities held to maturity 10,463,658 4,080,134 6,383,524 156 2,490,484 7,973,174 320 Loans 9,454,611 8,910,967 543,644 6 7,440,576 2,014,035 27 Less allowance for loan losses 135,620 131,529 4,091 3 112,057 23,563 21 ------------------------------------------------------------------------------------- 9,318,991 8,779,438 539,553 6 7,328,519 1,990,472 27 Reserve % 1.43% 1.48% 1.51% Bank premises and equipment, net 1,059,519 963,459 96,060 10 811,451 248,068 31 Other assets 351,346 309,149 42,197 14 307,752 43,594 14 ------------------------------------------------------------------------------------- $30,501,645 $28,431,481 $2,070,164 7 % $22,712,180 $7,789,465 34 % ===================================================================================== Liabilities Deposits: Demand: Noninterest-bearing $6,406,614 $6,047,322 $359,292 6 % $4,574,714 $1,831,900 40 % Interest-bearing 11,604,066 10,886,783 717,283 7 8,574,297 3,029,769 35 Savings 6,490,263 6,104,644 385,619 6 4,222,282 2,267,981 54 Time 3,157,942 3,202,883 (44,941) (1) 3,330,107 (172,165) (5) ------------------------------------------------------------------------------------- Total deposits 27,658,885 26,241,632 1,417,253 5 20,701,400 6,957,485 34 Core deposits 26,656,530 25,108,705 1,547,825 6 19,778,922 6,877,608 35 Total other liabilities 1,177,055 640,230 536,825 84 733,492 443,563 60 ------------------------------------------------------------------------------------- 28,835,940 26,881,862 1,954,078 7 21,434,892 7,401,048 35 Stockholder's Equity 1,665,705 1,549,619 116,086 7 1,277,288 388,417 30 ------------------------------------------------------------------------------------- $30,501,645 $28,431,481 $2,070,164 7 % $22,712,180 $7,789,465 34 % =====================================================================================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) - ---------------------------------------------------------------------------------- ------------------------------ December 31, ----------------------------- (dollars in thousands) 2004 2003 - ---------------------------------------------------------------------------------- ------------------------------ Assets Cash and due from banks $1,050,806 $910,092 Federal funds sold 0 0 ----------------------------- Cash and cash equivalents 1,050,806 910,092 Loans held for sale 44,072 42,769 Trading securities 169,103 170,458 Securities available for sale 8,044,150 10,650,655 Securities held to maturity 10,463,658 2,490,484 (market value 2004-$10,430,451; 2003-$2,467,192) Loans 9,454,611 7,440,576 Less allowance for loan losses 135,620 112,057 ----------------------------- 9,318,991 7,328,519 Bank premises and equipment, net 1,059,519 811,451 Other assets 351,346 307,752 ----------------------------- $30,501,645 $22,712,180 ============================= Liabilities Deposits: Demand: Noninterest-bearing $6,406,614 $4,574,714 Interest-bearing 11,604,066 8,574,297 Savings 6,490,263 4,222,282 Time 3,157,942 3,330,107 ----------------------------- Total deposits 27,658,885 20,701,400 Other borrowed money 661,195 311,510 Other liabilities 315,860 221,982 Convertible Trust Capital Securities - Commerce Capital Trust II 200,000 200,000 ----------------------------- 28,835,940 21,434,892 Stockholders' Common stock, 80,317,809 shares issued (76,869,415 shares in 2003) 80,318 76,869 Equity Capital in excess of par or stated value 1,031,794 866,095 Retained earnings 543,978 347,365 Accumulated other comprehensive income 20,953 (3,702) ----------------------------- 1,677,043 1,286,627 Less treasury stock, at cost, 397,805 shares (363,076 shares in 2003) 11,338 9,339 ----------------------------- Total stockholders' equity 1,665,705 1,277,288 ----------------------------- $30,501,645 $22,712,180 =============================
Commerce Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended Twelve Months Ended December 31, December 31, -------------------------------------- ------------------------------------ (dollars in thousands, except per share amounts) 2004 2003 * % Change 2004 2003 * % Change - --------------------------------------------------------------------------------------------- ------------------------------------ Interest Interest and fees on loans $136,328 $103,803 31 % $483,186 $391,361 23 % income Interest on investments 216,806 152,272 42 754,202 524,015 44 Other interest 261 50 422 903 255 254 -------------------------------------- ------------------------------------ Total interest income 353,395 256,125 38 1,238,291 915,631 35 -------------------------------------- ------------------------------------ Interest Interest on deposits: expense Demand 36,042 14,263 153 95,253 50,711 88 Savings 16,270 7,597 114 46,680 27,596 69 Time 16,691 15,200 10 59,808 66,115 (10) -------------------------------------- ------------------------------------ Total interest on deposits 69,003 37,060 86 201,741 144,422 40 Interest on other borrowed money 2,930 921 218 6,685 3,263 105 Interest on long-term debt 3,020 3,020 0 12,080 12,080 0 -------------------------------------- ------------------------------------ Total interest expense 74,953 41,001 83 220,506 159,765 38 -------------------------------------- ------------------------------------ Net interest income 278,442 215,124 29 1,017,785 755,866 35 Provision for loan losses 8,240 10,800 (24) 39,238 31,850 23 -------------------------------------- ------------------------------------ Net interest income after provision for loan losses 270,202 204,324 32 978,547 724,016 35 Noninterest Deposit charges and service fees 62,847 45,556 38 218,126 160,678 36 income Other operating income 32,967 41,240 (20) 154,306 167,949 (8) Net investment securities gains 637 1,088 (41) 2,639 3,851 (31) -------------------------------------- ------------------------------------ Total noninterest income 96,451 87,884 10 375,071 332,478 13 -------------------------------------- ------------------------------------ Total Revenues 374,893 303,008 24 1,392,856 1,088,344 28 Noninterest Salaries and benefits 115,227 93,802 23 431,144 354,954 21 expense Occupancy 33,462 27,983 20 121,210 95,926 26 Furniture and equipment 30,075 25,610 17 109,242 89,162 23 Office 13,103 10,865 21 46,025 39,190 17 Marketing 9,268 10,189 (9) 36,236 34,075 6 Other 51,976 37,832 37 194,921 150,085 30 -------------------------------------- ------------------------------------ Total noninterest expenses 253,111 206,281 23 938,778 763,392 23 -------------------------------------- ------------------------------------ Income before income taxes 113,542 85,927 32 414,840 293,102 42 Provision for federal and state income taxes 38,424 29,321 31 141,422 98,815 43 -------------------------------------- ------------------------------------ Net income $75,118 $56,606 33 % $273,418 $194,287 41 % ====================================== ==================================== Net income per common and common equivalent share: Basic $0.95 $0.75 27 % $3.49 $2.73 28 % -------------------------------------- ------------------------------------ Diluted $0.88 $0.70 26 $3.26 $2.58 26 -------------------------------------- ------------------------------------ Average common and common equivalent shares outstanding: Basic 79,465 75,958 5 78,312 71,084 10 -------------------------------------- ------------------------------------ Diluted 87,445 83,788 4 86,302 78,253 10 -------------------------------------- ------------------------------------ Cash dividends, common stock $0.19 $0.16 19 % $0.76 $0.66 15 % ====================================== ==================================== * Per share amounts restated. See description in earnings release.
Commerce Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended ----------------------------------------------------------------------- December 31, September 30, December 31, ----------------------------------------------------------------------- (dollars in thousands, except per share amounts) 2004 2004 % Change 2003 * % Change - ------------------------------------------------------------------------------------------------------------------------------------ Interest Interest and fees on loans $136,328 $124,698 9 % $103,803 31 % income Interest on investments 216,806 195,968 11 152,272 42 Other interest 261 148 76 50 422 ---------------------------------------- --------------------------- Total interest income 353,395 320,814 10 256,125 38 ---------------------------------------- --------------------------- Interest Interest on deposits: expense Demand 36,042 24,539 47 14,263 153 Savings 16,270 12,408 31 7,597 114 Time 16,691 14,210 17 15,200 10 ---------------------------------------- --------------------------- Total interest on deposits 69,003 51,157 35 37,060 86 Interest on other borrowed money 2,930 2,255 30 921 218 Interest on long-term debt 3,020 3,020 0 3,020 0 ---------------------------------------- --------------------------- Total interest expense 74,953 56,432 33 41,001 83 ---------------------------------------- --------------------------- Net interest income 278,442 264,382 5 215,124 29 Provision for loan losses 8,240 10,750 (23) 10,800 (24) ---------------------------------------- --------------------------- Net interest income after provision for loan losses 270,202 253,632 7 204,324 32 Noninterest Deposit charges and service fees 62,847 57,081 10 45,556 38 income Other operating income 32,967 42,089 (22) 41,240 (20) Net investment securities gains 637 943 (32) 1,088 (41) ---------------------------------------- --------------------------- Total noninterest income 96,451 100,113 (4) 87,884 10 ---------------------------------------- --------------------------- Total Revenues 374,893 364,495 3 303,008 24 Noninterest Salaries and benefits 115,227 114,467 1 93,802 23 expense Occupancy 33,462 31,689 6 27,983 20 Furniture and equipment 30,075 27,987 7 25,610 17 Office 13,103 11,082 18 10,865 21 Marketing 9,268 8,994 3 10,189 (9) Other 51,976 52,943 (2) 37,832 37 ---------------------------------------- --------------------------- Total noninterest expenses 253,111 247,162 2 206,281 23 ---------------------------------------- --------------------------- Income before income taxes 113,542 106,583 7 85,927 32 Provision for federal and state income taxes 38,424 36,493 5 29,321 31 ---------------------------------------- --------------------------- Net income $75,118 $70,090 7 % $56,606 33 % ======================================== =========================== Net income per common and common equivalent share: Basic $0.95 $0.89 7 % $0.75 27 % Diluted $0.88 $0.84 5 $0.70 26 Average common and common equivalent shares outstanding: Basic 79,465 78,625 1 75,958 5 ---------------------------------------- --------------------------- Diluted 87,445 86,045 2 83,788 4 ---------------------------------------- --------------------------- Cash dividends, common stock $0.19 $0.19 0 % $0.16 19 % ======================================== =========================== Return on average assets 1.01 % 1.02 % 1.02 % Return on average equity 18.48 18.97 18.46 * Per share amounts restated. See description in earnings release.
Commerce Bancorp, Inc. Selected Consolidated Financial Data (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------------ -------------------------------------- % % 2004 2003* Change 2004 2003* Change -------- -------- ----------- -------- -------- ----------- (dollars and shares in thousands) (dollars and shares in thousands) Income Statement Data: Net interest income $278,442 $215,124 29 % $1,017,785 $755,866 35 % Provision for loan losses 8,240 10,800 (24) 39,238 31,850 23 Noninterest income 96,451 87,884 10 375,071 332,478 13 Total revenues 374,893 303,008 24 1,392,856 1,088,344 28 Noninterest expense 253,111 206,281 23 938,778 763,392 23 Net income 75,118 56,606 33 273,418 194,287 41 Per Share Data: Net income - Basic $0.95 $0.75 27 % $3.49 $2.73 28 % Net income - Diluted 0.88 0.70 26 3.26 2.58 26 Book value - Basic $20.84 $16.70 25 % Book value - Diluted if converted 21.22 17.66 20 Revenue per share - Diluted $17.15 $14.47 19 % $16.14 $13.91 16 % Weighted Average Shares Outstanding: Basic 79,465 75,958 78,312 71,084 Diluted 87,445 83,788 86,302 78,253 Balance Sheet Data: Total assets $30,501,645 $22,712,180 34 % Loans (net) 9,318,991 7,328,519 27 Allowance for loan losses 135,620 112,057 21 Securities available for sale 8,044,150 10,650,655 (24) Securities held to maturity 10,463,658 2,490,484 320 Total deposits 27,658,885 20,701,400 34 Core deposits 26,656,530 19,778,922 35 Convertible Trust Capital Securities - Commerce Capital Trust II 200,000 200,000 - Stockholders' equity 1,665,705 1,277,288 30 Capital: Stockholders' equity to total assets 5.46 % 5.62 % Risk-based capital ratios: Tier I 12.31 12.66 Total capital 13.26 13.62 Leverage ratio 6.19 6.61 Performance Ratios: Cost of funds 1.10 % 0.80 % 0.91 % 0.90 % Net interest margin 4.16 4.27 4.28 4.36 Return on average assets 1.01 1.02 1.03 0.99 Return on average total stockholders' equity 18.48 18.46 18.78 18.81 * Per share amounts restated. See description in earnings release.
The following summary presents information regarding non-performing loans and assets as of December 31, 2004 and the preceding four quarters (dollar amounts in thousands). December 31, September 30, June 30, March 31, December 31, 2004 2004 2004 2004 2003 -------------- -------------- -------------- -------------- -------------- Non-accrual loans: Commercial $17,874 $22,647 $17,382 $19,701 $10,972 Consumer 10,138 9,784 11,675 9,984 9,242 Commercial real estate: Construction - - - - 138 Mortgage 1,317 1,251 675 810 1,389 -------------- -------------- -------------- -------------- -------------- Total non-accrual loans 29,329 33,682 29,732 30,495 21,741 -------------- -------------- -------------- -------------- -------------- Restructured loans: Commercial 3,518 3,614 1 1 1 Consumer - - - - - Commercial real estate: Construction - - - - - Mortgage - - - - - -------------- -------------- -------------- -------------- -------------- Total restructured loans 3,518 3,614 1 1 1 -------------- -------------- -------------- -------------- -------------- Total non-performing loans 32,847 37,296 29,733 30,496 21,742 -------------- -------------- -------------- -------------- -------------- Other real estate 626 972 653 1,890 1,831 -------------- -------------- -------------- -------------- -------------- Total non-performing assets 33,473 38,268 30,386 32,386 23,573 -------------- -------------- -------------- -------------- -------------- Loans past due 90 days or more and still accruing 602 614 318 696 538 -------------- -------------- -------------- -------------- -------------- Total non-performing assets and loans past due 90 days or more $34,075 $38,882 $30,704 $33,082 $24,111 ============== ============== ============== ============== ============== Total non-performing loans as a percentage of total period-end loans 0.35% 0.42% 0.36% 0.39% 0.29% Total non-performing assets as a percentage of total period-end assets 0.11% 0.13% 0.11% 0.13% 0.10% Total non-performing assets and loans past due 90 days or more as a percentage of total period-end assets 0.11% 0.14% 0.11% 0.13% 0.11% Allowance for loan losses as a percentage of total non-performing loans 413% 353% 419% 385% 515% Allowance for loan losses as a percentage of total period-end loans 1.43% 1.48% 1.50% 1.51% 1.51% 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 Twelve Months Ended ----------------------------- ----------------------------- 12/31/04 12/31/03 12/31/04 12/31/03 ------------ ----------- ------------ ----------- Balance at beginning of period $131,529 $103,592 $112,057 $90,733 Provisions charged to operating expenses 8,240 10,800 39,238 31,850 ------------ ----------- ------------ ----------- 139,769 114,392 151,295 122,583 Recoveries on loans charged-off: Commercial 305 213 1,000 669 Consumer 487 68 1,123 584 Commercial real estate - 11 52 11 ------------ ----------- ------------ ----------- Total recoveries 792 292 2,175 1,264 Loans charged-off: Commercial (2,764) (928) (9,288) (5,601) Consumer (2,169) (1,511) (6,903) (5,950) Commercial real estate (8) (188) (1,659) (239) ------------ ----------- ------------ ----------- Total charge-offs (4,941) (2,627) (17,850) (11,790) ------------ ----------- ------------ ----------- Net charge-offs (4,149) (2,335) (15,675) (10,526) ------------ ----------- ------------ ----------- Balance at end of period $135,620 $112,057 $135,620 $112,057 ============ =========== ============ =========== Net charge-offs as a percentage of average loans outstanding 0.18 % 0.13 % 0.19 % 0.16 % Net Reserve Additions $4,091 $8,465 $23,563 $21,324
Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income (unaudited) -------------------------------------------------------------------------------------------------- December 2004 September 2004 December 2003 -------------------------------- ------------------------------ ----------------------------- Average Average Average Average Average Average Balance Interest Rate Balance Interest Rate Balance Interest Rate -------------------------------- ------------------------------ ----------------------------- (dollars in thousands) Earning Assets - --------------------------------- Investment securities Taxable $17,294,817 $211,263 4.86 % $15,741,541 $191,627 4.84 % $12,743,163 $148,537 4.62 % Tax-exempt 457,654 5,628 4.89 385,814 5,126 5.29 242,901 3,829 6.25 Trading 180,711 2,898 6.38 159,954 1,552 3.86 190,658 1,917 3.99 ----------- ---------- ----- ----------- -------- ----- ----------- -------- ------ Total investment securities 17,933,182 219,789 4.88 16,287,309 198,305 4.84 13,176,722 154,283 4.65 Federal funds sold 54,620 261 1.90 40,413 148 1.46 20,435 50 0.97 Loans Commercial mortgages 3,357,348 52,747 6.25 3,189,126 48,881 6.10 2,655,510 41,172 6.15 Commercial 2,186,627 31,852 5.80 2,069,986 28,552 5.49 1,760,615 23,285 5.25 Consumer 3,233,755 47,550 5.85 3,024,776 43,287 5.69 2,444,764 35,773 5.81 Tax-exempt 350,414 6,429 7.30 337,374 6,121 7.22 283,291 5,497 7.70 ----------- ---------- ----- ----------- -------- ----- ----------- -------- ------ Total loans 9,128,144 138,578 6.04 8,621,262 126,841 5.85 7,144,180 105,727 5.87 ----------- ---------- ----- ----------- -------- ----- ----------- -------- ------ Total earning assets $27,115,946 $358,628 5.26 % $24,948,984 $325,294 5.19 % $20,341,337 $260,060 5.07 % =========== =========== =========== Sources of Funds - --------------------------------- Interest-bearing liabilities Savings $6,289,379 $16,270 1.03 % $5,715,755 $12,408 0.86 % $4,251,627 $7,597 0.71 % Interest bearing demand 11,348,516 36,042 1.26 10,270,059 24,539 0.95 8,230,585 14,263 0.69 Time deposits 2,472,670 12,436 2.00 2,409,160 11,046 1.82 2,403,680 12,049 1.99 Public funds 888,209 4,255 1.91 800,579 3,164 1.57 923,561 3,151 1.35 ----------- ---------- ----- ----------- -------- ----- ----------- -------- ------ Total deposits 20,998,774 69,003 1.31 19,195,553 51,157 1.06 15,809,453 37,060 0.93 Other borrowed money 545,073 2,930 2.14 614,282 2,255 1.46 411,079 921 0.89 Long-term debt 200,000 3,020 6.01 200,000 3,020 6.01 200,000 3,020 5.99 ----------- ---------- ----- ----------- -------- ----- ----------- -------- ------ Total deposits and interest-bearing liabilities 21,743,847 74,953 1.37 20,009,835 56,432 1.12 16,420,532 41,001 0.99 Noninterest-bearing funds (net) 5,372,099 4,939,149 3,920,805 ----------- ---------- ----- ----------- -------- ----- ----------- -------- ------ Total sources to fund earning assets $27,115,946 74,953 1.10 $24,948,984 56,432 0.90 $20,341,337 41,001 0.80 =========== ---------- ----- =========== -------- ----- =========== -------- ------ Net interest income and margin tax-equivalent basis $283,675 4.16 % $268,862 4.29 % $219,059 4.27 % ========== ===== ======== ===== ======== ====== Other Balances - ------------------------- Cash and due from banks $1,223,722 $1,145,324 $905,464 Other assets 1,522,258 1,430,576 1,101,329 Total assets 29,725,307 27,393,847 22,241,356 Total deposits 27,105,818 24,852,938 20,171,403 Demand deposits (noninterest-bearing) 6,107,044 5,657,385 4,361,950 Other liabilities 248,762 248,878 232,037 Stockholders' equity 1,625,654 1,477,749 1,226,837 Allowance for loan losses 136,619 131,037 106,774 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 Computation of Net Income Per Share (dollars in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, ------------------------- -------------------------- 2004 2003 * 2004 2003 * ----------- ----------- ----------- ----------- Basic: Net income $75,118 $56,606 $273,418 $194,287 =========== =========== =========== =========== Average common shares outstanding 79,465 75,958 78,312 71,084 =========== =========== =========== =========== Net income per share of common stock $0.95 $0.75 $3.49 $2.73 =========== =========== =========== =========== Diluted: Net income $75,118 $56,606 $273,418 $194,287 Interest expense on trust preferred securities 1,963 1,963 7,852 7,852 ----------- ----------- ----------- ----------- $77,081 $58,569 $281,270 $202,139 =========== =========== =========== =========== Average common shares outstanding 79,465 75,958 78,312 71,084 Additional shares considered in diluted computation assuming: Exercise of stock options 4,189 4,039 4,199 3,378 Conversion of trust preferred securities 3,791 3,791 3,791 3,791 ----------- ----------- ----------- ----------- Average number of shares outstanding on a diluted basis 87,445 83,788 86,302 78,253 =========== =========== =========== =========== Net income per common share - diluted $0.88 $0.70 $3.26 $2.58 =========== =========== =========== =========== * Per share amounts restated. See description in earnings release.
-----END PRIVACY-ENHANCED MESSAGE-----