EX-99.2 3 ex99-2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
 
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited) 

 
                         
     
March 31,
 
December 31,
 
Linked Quarter
 
March 31,
 
 
 
 
(dollars in thousands)
 
2007
 
2006
 
% Change
 
2006
 
% Change
 
 
 
                     
 Assets
    Cash and due from banks
 
$
1,237,008
 
$
1,207,390
   
2
%  
$
1,185,293
   
4
%
 
    Federal funds sold
   
506,400
   
9,300
   
5,345
   
6,600
   
7,573
 
 
    Cash and cash equivalents
   
1,743,408
   
1,216,690
   
43
   
1,191,893
   
46
 
 
    Loans held for sale
   
48,447
   
52,741
   
(8
)
 
37,349
   
30
 
 
    Trading securities
   
156,241
   
106,007
   
47
   
123,468
   
27
 
 
    Securities available for sale
   
12,333,705
   
11,098,113
   
11
   
10,245,046
   
20
 
 
    Securities held to maturity
   
14,811,708
   
14,884,982
   
(0
)
 
13,705,727
   
8
 
 
    Loans:
                               
 
    Commercial real estate:
                               
 
    Investor developer
   
2,562,842
   
2,625,628
   
(2
)
 
2,156,040
   
19
 
 
    Residential construction
   
344,144
   
280,476
   
23
   
289,236
   
19
 
       
2,906,986
   
2,906,104
   
0
   
2,445,276
   
19
 
 
    Commercial loans:
                               
 
    Term
   
2,432,065
   
2,392,889
   
2
   
1,951,600
   
25
 
 
    Line of credit
   
1,790,734
   
1,843,545
   
(3
)
 
1,632,310
   
10
 
       
4,222,799
   
4,236,434
   
(0
)
 
3,583,910
   
18
 
 
    Owner-occupied
   
3,007,211
   
2,845,791
   
6
   
2,526,458
   
19
 
       
7,230,010
   
7,082,225
   
2
   
6,110,368
   
18
 
 
    Consumer:
                               
 
    Mortgages (1-4 family residential)
   
2,256,222
   
2,235,247
   
1
   
2,119,424
   
6
 
 
    Installment
   
282,667
   
287,151
   
(2
)
 
230,927
   
22
 
 
    Home equity
   
3,119,327
   
2,958,893
   
5
   
2,484,333
   
26
 
 
    Credit lines
   
138,794
   
137,429
   
1
   
90,282
   
54
 
       
5,797,010
   
5,618,720
   
3
   
4,924,966
   
18
 
 
        Total loans
   
15,934,006
   
15,607,049
   
2
   
13,480,610
   
18
 
 
    Less allowance for loan losses
   
155,912
   
152,053
   
3
   
135,745
   
15
 
       
15,778,094
   
15,454,996
   
2
   
13,344,865
   
18
 
 
    Bank premises and equipment, net
   
1,808,096
   
1,753,670
   
3
   
1,406,608
   
29
 
 
    Goodwill and other intangible assets
   
145,923
   
141,631
   
3
   
150,466
   
(3
)
 
    Other assets
   
546,010
   
562,986
   
(3
)
 
486,960
   
12
 
 
    Total assets
 
$
47,371,632
 
$
45,271,816
   
5
%
$
40,692,382
   
16
%
 
Liabilities
    Deposits:
                               
 
    Demand:
                               
 
    Noninterest-bearing
 
$
9,321,584
 
$
8,936,824
   
4
%
$
8,391,102
   
11
%
 
    Interest-bearing
   
18,682,011
   
16,853,457
   
11
   
14,146,346
   
32
 
 
    Savings
   
10,580,371
   
10,459,306
   
1
   
10,328,280
   
2
 
 
    Time
   
5,391,900
   
5,038,624
   
7
   
4,246,379
   
27
 
 
    Total deposits
   
43,975,866
   
41,288,211
   
7
   
37,112,107
   
18
 
                                   
 
    Other borrowed money
   
122,725
   
777,404
   
(84
)
 
869,753
   
(86
)
 
    Other liabilities
   
391,848
   
405,103
   
(3
)
 
292,225
   
34
 
       
44,490,439
   
42,470,718
   
5
   
38,274,085
   
16
 
 
 
                               
Stockholders' Equity   
    Common stock
   
192,751
   
189,738
   
2
   
184,046
   
5
 
 
    Capital in excess of par value
   
1,779,523
   
1,744,691
   
2
   
1,566,673
   
14
 
 
    Retained earnings
   
1,007,299
   
958,770
   
5
   
805,967
   
25
 
 
    Accumulated other comprehensive loss
   
(49,364
)
 
(65,240
)
 
(24
)
 
(121,918
)
 
(60
)
       
2,930,209
   
2,827,959
   
4
   
2,434,768
   
20
 
                                   
 
    Less treasury stock, at cost
   
49,016
   
26,861
   
82
   
16,471
   
198
 
 
        Total stockholders' equity
   
2,881,193
   
2,801,098
   
3
   
2,418,297
   
19
 
 
    Total liabilities and stockholders' equity
 
$
47,371,632
 
$
45,271,816
   
5
%
$
40,692,382
   
16
%
                                   
 
 
 

 
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited) 

                                 
 
(dollars in thousands)
 
March 31,
 
December 31, 2006
 
March 31, 2006
 
 
 
 
2007
 
Actual
 
$ Change
 
% Change
 
Actual
 
$ Change
 
% Change
 
 
 
                             
Assets 
    Cash and due from banks
 
$
1,237,008
 
$
1,207,390
 
$
29,618
   
2
%   
$
1,185,293
 
$
51,715
   
4
%
 
    Federal funds sold
   
506,400
   
9,300
   
497,100
   
5,345
   
6,600
   
499,800
   
7,573
 
 
        Cash and cash equivalents
   
1,743,408
   
1,216,690
   
526,718
   
43
   
1,191,893
   
551,515
   
46
 
 
    Loans held for sale
   
48,447
   
52,741
   
(4,294
)
 
(8
)
 
37,349
   
11,098
   
30
 
 
    Trading securities
   
156,241
   
106,007
   
50,234
   
47
   
123,468
   
32,773
   
27
 
 
    Securities available for sale
   
12,333,705
   
11,098,113
   
1,235,592
   
11
   
10,245,046
   
2,088,659
   
20
 
 
    Securities held to maturity
   
14,811,708
   
14,884,982
   
(73,274
)
 
(0
)
 
13,705,727
   
1,105,981
   
8
 
                                               
 
    Loans
   
15,934,006
   
15,607,049
   
326,957
   
2
   
13,480,610
   
2,453,396
   
18
 
 
        Less allowance for loan losses
   
155,912
   
152,053
   
3,859
   
3
   
135,745
   
20,167
   
15
 
       
15,778,094
   
15,454,996
   
323,098
   
2
   
13,344,865
   
2,433,229
   
18
 
 
        Reserve %
   
1.03
%
 
1.03
%
             
1.06
%
           
 
    Bank premises and equipment, net
   
1,808,096
   
1,753,670
   
54,426
   
3
   
1,406,608
   
401,488
   
29
 
 
    Other assets
   
691,933
   
704,617
   
(12,684
)
 
(2
)
 
637,426
   
54,507
   
9
 
 
    Total assets
 
$
47,371,632
 
$
45,271,816
 
$
2,099,816
   
5
%
$
40,692,382
 
$
6,679,250
   
16
%
 
 
                                           
Liabilities 
    Deposits:
                                           
 
        Demand:
                                           
 
        Noninterest-bearing
 
$
9,321,584
 
$
8,936,824
 
$
384,760
   
4
%
$
8,391,102
 
$
930,482
   
11
%
 
        Interest-bearing
   
18,682,011
   
16,853,457
   
1,828,554
   
11
   
14,146,346
   
4,535,665
   
32
 
 
        Savings
   
10,580,371
   
10,459,306
   
121,065
   
1
   
10,328,280
   
252,091
   
2
 
 
        Time
   
5,391,900
   
5,038,624
   
353,276
   
7
   
4,246,379
   
1,145,521
   
27
 
 
        Total deposits
   
43,975,866
   
41,288,211
   
2,687,655
   
7
   
37,112,107
   
6,863,759
   
18
 
                                               
 
        Core deposits
   
42,698,696
   
40,076,568
   
2,622,128
   
7
   
35,912,440
   
6,786,256
   
19
 
                                               
 
    Total other liabilities
   
514,573
   
1,182,507
   
(667,934
)
 
(56
)
 
1,161,978
   
(647,405
)
 
(56
)
       
44,490,439
   
42,470,718
   
2,019,721
   
5
   
38,274,085
   
6,216,354
   
16
 
                                               
 
 
   
2,881,193
   
2,801,098
   
80,095
   
3
   
2,418,297
   
462,896
   
19
 
Stockholders' Equity 
    Total liabilities and stockholders' equity
 
$
47,371,632
 
$
45,271,816
 
$
2,099,816
   
5
%
$
40,692,382
 
$
6,679,250
   
16
%
                                               
 
 

 
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited) 

             
     
March 31,
 
December 31,
 
 
(dollars in thousands)
 
2007
 
2006
 
 
 
         
Assets 
    Cash and due from banks
 
$
1,237,008
 
$
1,207,390
 
 
    Federal funds sold
   
506,400
   
9,300
 
 
        Cash and cash equivalents
   
1,743,408
   
1,216,690
 
 
    Loans held for sale
   
48,447
   
52,741
 
 
    Trading securities
   
156,241
   
106,007
 
 
    Securities available for sale
   
12,333,705
   
11,098,113
 
 
    Securities held to maturity
   
14,811,708
   
14,884,982
 
 
        (market value 03/07-$14,587,667; 2006-$14,617,764)
             
 
    Loans
   
15,934,006
   
15,607,049
 
 
        Less allowance for loan losses
   
155,912
   
152,053
 
       
15,778,094
   
15,454,996
 
 
    Bank premises and equipment, net
   
1,808,096
   
1,753,670
 
 
    Goodwill and other intangible assets
   
145,923
   
141,631
 
 
    Other assets
   
546,010
   
562,986
 
 
    Total assets
 
$
47,371,632
 
$
45,271,816
 
 
 
             
Liabilities 
    Deposits:
             
 
        Demand:
             
 
        Noninterest-bearing
 
$
9,321,584
 
$
8,936,824
 
 
        Interest-bearing
   
18,682,011
   
16,853,457
 
 
        Savings
   
10,580,371
   
10,459,306
 
 
        Time
   
5,391,900
   
5,038,624
 
 
            Total deposits
   
43,975,866
   
41,288,211
 
                 
 
    Other borrowed money
   
122,725
   
777,404
 
 
    Other liabilities
   
391,848
   
405,103
 
       
44,490,439
   
42,470,718
 
 
 
             
Stockholders' Equity  
    Common stock, 192,751,235 shares issued (189,738,423 shares in 2006)
   
192,751
   
189,738
 
 
    Capital in excess of par value
   
1,779,523
   
1,744,691
 
 
    Retained earnings
   
1,007,299
   
958,770
 
 
    Accumulated other comprehensive loss
   
(49,364
)
 
(65,240
)
       
2,930,209
   
2,827,959
 
                 
 
    Less treasury stock, at cost, 1,874,923 shares (1,231,081 shares in 2006)
   
49,016
   
26,861
 
 
        Total stockholders' equity
   
2,881,193
   
2,801,098
 
 
    Total liabilities and stockholders' equity
 
$
47,371,632
 
$
45,271,816
 
                 
 
 
 

 
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited) 
 

                 
     
Three Months Ended
 
 
 
 
March 31,
 
 
(dollars in thousands, except per share amounts)
 
2007
 
2006
 
% Change
 
                 
Interest 
Interest and fees on loans
 
$
270,770
 
$
214,974
   
26
%
income  
Interest on investments
   
355,308
   
295,076
   
20
 
 
Other interest
   
5,733
   
413
   
1,288
 
 
        Total interest income
   
631,811
   
510,463
   
24
 
                       
Interest 
Interest on deposits:
                   
expense  
     Demand
   
163,742
   
97,940
   
67
 
 
     Savings
   
72,118
   
54,004
   
34
 
 
     Time
   
58,863
   
36,261
   
62
 
 
    Total interest on deposits
   
294,723
   
188,205
   
57
 
 
Interest on other borrowed money
   
4,132
   
14,328
   
(71
)
 
    Total interest expense
   
298,855
   
202,533
   
48
 
                       
 
Net interest income
   
332,956
   
307,930
   
8
 
 
Provision for credit losses
   
10,000
   
6,501
   
54
 
 
Net interest income after provision for credit losses
   
322,956
   
301,429
   
7
 
                       
Noninterest 
Deposit charges and service fees
   
105,206
   
82,281
   
28
 
income 
Other operating income
   
51,366
   
48,721
   
5
 
 
Net investment securities gains
   
2,879
   
0
   
0
 
 
    Total noninterest income
   
159,451
   
131,002
   
22
 
                       
 
    Total Revenues
   
492,407
   
438,932
   
12
 
                       
Noninterest  
Salaries and benefits
   
167,759
   
144,825
   
16
 
expense 
Occupancy
   
58,072
   
46,240
   
26
 
 
Furniture and equipment
   
42,852
   
35,960
   
19
 
 
Office
   
16,303
   
15,473
   
5
 
 
Marketing
   
10,433
   
7,811
   
34
 
 
Other
   
67,366
   
65,025
   
4
 
 
    Total noninterest expenses
   
362,785
   
315,334
   
15
 
                       
 
Income before income taxes
   
119,622
   
117,097
   
2
 
 
Provision for federal and state income taxes
   
41,686
   
39,800
   
5
 
 
Net income
 
$
77,936
 
$
77,297
   
1
%
                       
 
Net income per common and common equivalent share:
                   
 
         Basic
 
$
0.41
 
$
0.43
   
(5
)%
 
         Diluted
 
$
0.40
 
$
0.41
   
(2
)
 
Average common and common equivalent shares outstanding:
                   
 
         Basic
   
189,278
   
180,917
   
5
 
 
         Diluted
   
196,505
   
189,867
   
3
 
 
Cash dividends, common stock
 
$
0.13
 
$
0.12
   
8
%
                       
 
 
 

 
 
Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited) 
     
     
Three Months Ended  
 
 
 
 
March 31,
 
December 31,
 
 March 31,
 
 
(dollars in thousands, except per share amounts)
 
2007
 
2006
 
% Change
 
 2006
 
% Change
 
                          
Interest  
Interest and fees on loans
 
$
270,770
 
$
262,743
   
3
%  
$
214,974
   
26
%
income 
Interest on investments
   
355,308
   
342,005
   
4
   
295,076
   
20
 
 
Other interest
   
5,733
   
4,345
   
32
   
413
   
1,288
 
 
       Total interest income
   
631,811
   
609,093
   
4
   
510,463
   
24
 
                                   
Interest  
Interest on deposits:
                               
expense 
    Demand
   
163,742
   
146,773
   
12
   
97,940
   
67
 
 
    Savings
   
72,118
   
72,947
   
(1
)
 
54,004
   
34
 
 
    Time
   
58,863
   
60,134
   
(2
)
 
36,261
   
62
 
 
       Total interest on deposits
   
294,723
   
279,854
   
5
   
188,205
   
57
 
 
Interest on other borrowed money
   
4,132
   
3,568
   
16
   
14,328
   
(71
)
 
       Total interest expense
   
298,855
   
283,422
   
5
   
202,533
   
48
 
                                   
 
Net interest income
   
332,956
   
325,671
   
2
   
307,930
   
8
 
 
Provision for credit losses
   
10,000
   
10,200
   
(2
)
 
6,501
   
54
 
 
Net interest income after provision for credit losses
   
322,956
   
315,471
   
2
   
301,429
   
7
 
                                   
Noninterest  
Deposit charges and service fees
   
105,206
   
102,840
   
2
   
82,281
   
28
 
income 
Other operating income
   
51,366
   
61,101
   
(16
)
 
48,721
   
5
 
 
Net investment securities gains
   
2,879
   
2,697
   
7
   
0
   
0
 
 
       Total noninterest income
   
159,451
   
166,638
   
(4
)
 
131,002
   
22
 
                                   
 
       Total Revenues
   
492,407
   
492,309
   
0
   
438,932
   
12
 
                                   
Noninterest   
Salaries and benefits
   
167,759
   
163,067
   
3
   
144,825
   
16
 
expense  
Occupancy
   
58,072
   
55,237
   
5
   
46,240
   
26
 
 
Furniture and equipment
   
42,852
   
43,916
   
(2
)
 
35,960
   
19
 
 
Office
   
16,303
   
17,150
   
(5
)
 
15,473
   
5
 
 
Marketing
   
10,433
   
12,515
   
(17
)
 
7,811
   
34
 
 
Other
   
67,366
   
71,289
   
(6
)
 
65,025
   
4
 
 
       Total noninterest expenses
   
362,785
   
363,174
   
(0
)
 
315,334
   
15
 
                                   
 
Income before income taxes
   
119,622
   
118,935
   
1
   
117,097
   
2
 
 
Provision for federal and state income taxes
   
41,686
   
56,108
   
(26
)
 
39,800
   
5
 
 
Net income
 
$
77,936
 
$
62,827
   
24
%
$
77,297
   
1
%
                                   
 
Net income per common and common equivalent share:
                               
 
      Basic
 
$
0.41
 
$
0.33
   
24
%
$
0.43
   
(5
)%
 
      Diluted
 
$
0.40
 
$
0.32
   
25
 
$
0.41
   
(2
)
 
Average common and common equivalent shares outstanding:
                               
 
      Basic
   
189,278
   
187,704
   
1
   
180,917
   
5
 
 
      Diluted
   
196,505
   
196,052
   
0
   
189,867
   
3
 
 
Cash dividends, common stock
 
$
0.13
 
$
0.13
   
0
%
$
0.12
   
8
%
                                   
 
Return on average assets
   
0.68
%
 
0.57
%
       
0.79
%
     
 
Return on average equity
   
10.87
   
9.05
         
13.00
       
                                   
 
 
 

 
 
Commerce Bancorp, Inc. and Subsidiaries
Selected Consolidated Financial Data
(unaudited) 

 
Three Months Ended
 
March 31,
 
2007
 
2006
 
%
Change
 
(dollars and shares in thousands)
             
Income Statement Data:
           
Net interest income 
$
332,956
 
$
307,930
     
8
%
Provision for credit losses 
 
10,000
   
6,501
     
54
 
Noninterest income 
 
159,451
   
131,002
     
22
 
Total revenues 
 
492,407
   
438,932
 
 
 
12
 
Noninterest expense 
 
362,785
   
315,334
     
15
 
Net income 
 
77,936
   
77,297
 
 
 
1
 
                     
                     
Per Share Data:
                   
Net income - Basic 
$
0.41
 
$
0.43
     
(5
)%
Net income - Diluted 
 
0.40
   
0.41
 
 
 
(2
)
                     
Book value - Basic 
$
15.09
 
$
13.21
     
14
%
Book value - Diluted 
 
14.54
   
12.59
 
 
 
15
 
                     
Revenue per share - Diluted 
$
10.02
 
$
9.25
 
 
 
8
%
                     
Weighted Average Shares Outstanding: 
                   
 Basic
 
189,278
   
180,917
         
 Diluted
 
196,505
   
189,867
         
                     
Balance Sheet Data:
                   
                     
Total assets 
$
47,371,632
 
$
40,692,382
 
 
 
16
%
Loans (net) 
 
15,778,094
   
13,344,865
     
18
 
Allowance for credit losses 
 
164,057
   
142,913
     
15
 
Securities available for sale 
 
12,333,705
   
10,245,046
     
20
 
Securities held to maturity 
 
14,811,708
   
13,705,727
     
8
 
Total deposits 
 
43,975,866
   
37,112,107
     
18
 
Core deposits 
 
42,698,696
   
35,912,440
     
19
 
Stockholders' equity 
 
2,881,193
   
2,418,297
 
 
 
19
 
                     
Capital:
                   
                     
Stockholders' equity to total assets 
 
6.08
%
 
5.94
%
       
                     
Risk-based capital ratios: 
                   
 Tier I
 
11.66
   
11.80
         
 Total capital
 
12.36
   
12.53
         
                     
Leverage ratio 
 
6.09
   
6.09
         
                     
Performance Ratios:
                   
                     
Cost of funds 
 
2.87
%
 
2.28
%
       
Net interest margin 
 
3.27
   
3.53
         
Return on average assets 
 
0.68
   
0.79
         
Return on average total stockholders' equity 
 
10.87
   
13.00
         
                     
 
 
 

 

The following summary presents information regarding non-performing loans and assets as of March 31, 2007 and the preceding four quarters (dollar amounts in thousands).
 
                       
   
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
 
 
2007
 
2006
 
2006
 
2006
 
2006
 
Non-accrual loans:
                     
Commercial
 
$
20,526
 
$
33,686
 
$
33,658
 
$
34,904
 
$
16,975
 
Consumer
   
15,343
   
11,820
   
9,325
   
8,927
   
9,285
 
Commercial real estate:
                               
Construction 
   
8,575
   
3,531
   
496
   
1,708
   
1,726
 
Mortgage 
   
2,277
   
1,565
   
1,828
   
2,523
   
2,096
 
    Total non-accrual loans
   
46,721
   
50,602
   
45,307
   
48,062
   
30,082
 
                                 
Restructured loans:
                               
Commercial
   
-
   
-
   
-
   
2,941
   
3,037
 
    Total restructured loans
   
-
   
-
   
-
   
2,941
   
3,037
 
                                 
Total non-performing loans
   
46,721
   
50,602
   
45,307
   
51,003
   
33,119
 
                                 
Other real estate/foreclosed assets
   
5,000
   
2,610
   
2,022
   
1,369
   
435
 
                                 
Total non-performing assets
   
51,721
   
53,212
   
47,329
   
52,372
   
33,554
 
                                 
Loans past due 90 days or more
                               
and still accruing
   
658
   
620
   
441
   
583
   
332
 
                                 
Total non-performing assets and
                               
loans past due 90 days or more
 
$
52,379
 
$
53,832
 
$
47,770
 
$
52,955
 
$
33,886
 
                                 
Total non-performing loans as a
                               
percentage of total period-end
                               
loans
   
0.29
%
 
0.32
%
 
0.31
%
 
0.36
%
 
0.25
%
                                 
Total non-performing assets as a
                               
percentage of total period-end assets
   
0.11
%
 
0.12
%
 
0.11
%
 
0.12
%
 
0.08
%
                                 
Total non-performing assets and loans
                               
past due 90 days or more as a
                               
percentage of total period-end assets
   
0.11
%
 
0.12
%
 
0.11
%
 
0.12
%
 
0.08
%
                                 
Allowance for credit losses as a
                               
percentage of total non-performing
                               
loans
   
351
%
 
317
%
 
341
%
 
291
%
 
432
%
                                 
Allowance for credit losses as a percentage
                               
of total period-end loans
   
1.03
%
 
1.03
%
 
1.05
%
 
1.04
%
 
1.06
%
                                 
Total non-performing assets and loans
                               
past due 90 days or more as a
                               
percentage of stockholders' equity and
                               
allowance for credit losses
   
2
%
 
2
%
 
2
%
 
2
%
 
1
%
 
 
 

 
The following table presents, for the periods indicated, an analysis of the allowance for credit losses and other related data: (dollar amounts in thousands)
 
       
 
 
Year
 
 
 
Three Months Ended
 
Ended
 
 
 
03/31/07
 
03/31/06
 
12/31/06
 
 
 
 
 
 
 
 
 
               
               
Balance at beginning of period
 
$
160,269
 
$
141,464
 
$
141,464
 
Provisions charged to operating expenses
   
10,000
   
6,501
   
33,700
 
     
170,269
   
147,965
   
175,164
 
                     
Recoveries on loans charged-off:
                   
Commercial
   
1,121
   
533
   
5,987
 
Consumer
   
289
   
511
   
1,604
 
Commercial real estate
   
235
   
1
   
385
 
Total recoveries
   
1,645
   
1,045
   
7,976
 
                     
Loans charged-off:
                   
Commercial
   
(4,294
)
 
(4,186
)
 
(14,107
)
Consumer
   
(2,974
)
 
(1,712
)
 
(8,179
)
Commercial real estate
   
(589
)
 
(199
)
 
(585
)
Total charge-offs
   
(7,857
)
 
(6,097
)
 
(22,871
)
Net charge-offs
   
(6,212
)
 
(5,052
)
 
(14,895
)
                     
                     
Balance at end of period
 
$
164,057
 
$
142,913
 
$ 
160,269
 
                     
                     
                     
Net charge-offs as a percentage of
                   
average loans outstanding
   
0.16
%
 
0.16
%
 
0.11
%
                     
                     
Net Allowance Additions
 
$
3,788
 
$
1,449
 
$ 
18,805
 
                     
 
 
 

Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
 
 
                                       
       
                                       
   
March 2007
 
December 2006
 
March 2006
 
 
 
Average
 
 
 
Average
 
Average
 
 
 
Average
 
Average
 
 
 
Average
 
 
 
Balance
 
Interest
 
Rate
 
Balance
 
Interest
 
Rate
 
Balance
 
Interest
 
Rate
 
(dollars in thousands)
                                     
Earning Assets
                                     
Investment securities
                                     
   Taxable
 
$
25,237,398
 
$
348,630
   
5.60
%   
$
24,610,625
 
$
335,665
   
5.41
%   
$
22,325,450
 
$
289,739
   
5.26
%
   Tax-exempt
   
611,725
   
8,984
   
5.96
   
586,903
   
8,596
   
5.81
   
549,794
   
6,956
   
5.13
 
   Trading
   
96,838
   
1,290
   
5.40
   
103,468
   
1,157
   
4.44
   
108,670
   
1,255
   
4.69
 
Total investment securities
   
25,945,961
   
358,904
   
5.61
   
25,300,996
   
345,418
   
5.42
   
22,983,914
   
297,950
   
5.26
 
Federal funds sold
   
436,031
   
5,733
   
5.33
   
323,652
   
4,345
   
5.33
   
36,594
   
413
   
4.58
 
Loans
                                                       
   Commercial mortgages
   
5,447,516
   
95,522
   
7.11
   
5,192,406
   
92,553
   
7.07
   
4,491,557
   
76,193
   
6.88
 
   Commercial
   
4,024,615
   
77,457
   
7.81
   
3,764,466
   
74,777
   
7.88
   
3,221,996
   
59,125
   
7.44
 
   Consumer
   
5,711,130
   
90,500
   
6.43
   
5,533,248
   
88,846
   
6.37
   
4,817,562
   
74,127
   
6.24
 
   Tax-exempt
   
599,202
   
11,217
   
7.59
   
538,746
   
10,104
   
7.44
   
492,283
   
8,506
   
7.01
 
Total loans
   
15,782,463
   
274,696
   
7.06
   
15,028,866
   
266,280
   
7.03
   
13,023,398
   
217,951
   
6.79
 
                                                         
Total earning assets
 
$
42,164,455
 
$
639,333
   
6.14
%
$
40,653,514
 
$
616,043
   
6.01
%
$
36,043,906
 
$
516,314
   
5.81
%
                                                         
Sources of Funds
                                                       
Interest-bearing liabilities
                                                       
   Savings
 
$
10,448,840
 
$
72,118
   
2.80
%
$
10,643,889
 
$
72,947
   
2.72
%
$
9,712,691
 
$
54,004
   
2.25
%
   Interest bearing demand
   
17,886,395
   
163,742
   
3.71
   
16,280,718
   
146,773
   
3.58
   
13,584,371
   
97,940
   
2.92
 
   Time deposits
   
3,999,233
   
43,284
   
4.39
   
3,723,163
   
39,578
   
4.22
   
3,131,039
   
25,850
   
3.35
 
   Public funds
   
1,197,869
   
15,579
   
5.27
   
1,525,472
   
20,556
   
5.35
   
952,132
   
10,411
   
4.43
 
    Total deposits
   
33,532,337
   
294,723
   
3.56
   
32,173,242
   
279,854
   
3.45
   
27,380,233
   
188,205
   
2.79
 
                                                         
   Other borrowed money
   
308,980
   
4,132
   
5.42
   
267,992
   
3,568
   
5.28
   
1,316,437
   
14,328
   
4.41
 
Total deposits and interest-bearing liabilities
   
33,841,317
   
298,855
   
3.58
   
32,441,234
   
283,422
   
3.47
   
28,696,670
   
202,533
   
2.86
 
                                                         
Noninterest-bearing funds (net)
   
8,323,138
               
8,212,280
               
7,347,236
             
Total sources to fund earning assets
 
$
42,164,455
   
298,855
   
2.87
 
$
40,653,514
   
283,422
   
2.76
 
$
36,043,906
   
202,533
   
2.28
 
                                                         
Net interest income and
                                                       
   margin tax-equivalent basis
       
$
340,478
   
3.27
%
     
$
332,621
   
3.25
%
     
$
313,781
   
3.53
%
                                                         
Other Balances
                                                       
Cash and due from banks
 
$
1,182,810
             
$
1,174,831
             
$
1,286,259
             
Other assets
   
2,607,508
               
2,451,297
               
2,094,400
             
Total assets
   
45,798,648
               
44,127,353
               
39,288,182
             
Total deposits
   
42,232,192
               
40,704,685
               
35,295,835
             
Demand deposits (noninterest-bearing)
   
8,699,855
               
8,531,443
               
7,915,602
             
Other liabilities
   
390,627
               
379,025
               
298,278
             
Stockholders' equity
   
2,866,849
               
2,775,651
               
2,377,632
             
Allowance for loan losses
   
156,125
               
152,289
               
136,383
             
                                                         
                                                         
                                                         
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 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
 
   
March 31,
 
           
   
2007
 
2006
 
Basic:
         
Net income applicable to common stock
 
$
77,936
 
$
77,297
 
               
Average common shares outstanding
   
189,278
   
180,917
 
               
Net income per common share
 
$
0.41
 
$
0.43
 
               
               
               
               
               
Diluted:
             
Net income applicable to common stock
 
$
77,936
 
$
77,297
 
               
               
Average common shares outstanding
   
189,278
   
180,917
 
Additional shares considered in diluted
             
     computation assuming:
             
    Exercise of stock options
   
7,227
   
8,950
 
               
Average common and common equivalent
             
     shares outstanding
   
196,505
   
189,867
 
               
Net income per common and common
             
      equivalent share
 
$
0.40
 
$
0.41