Commerce Bancorp, Inc. and Subsidiaries Consolidated Statements of
Income (unaudited)
--------------------------------------------------------------------------
Three Months Ended December 31, --------------------------------
(dollars in thousands, except per share amounts) 2006 2005 % Change
--------------------------------------------------------------------------
Interest Interest and fees on loans $262,743 $194,617 35 % income
Interest on investments 342,005 278,317 23 Other interest 4,345 293
1,383 -------------------------------- Total interest income
609,093 473,227 29 -------------------------------- Interest
Interest on deposits: expense Demand 146,773 84,148 74 Savings
72,947 45,866 59 Time 60,134 31,987 88
-------------------------------- Total interest on deposits 279,854
162,001 73 Interest on other borrowed money 3,568 12,386 (71)
Interest on long-term debt 0 0 0 --------------------------------
Total interest expense 283,422 174,387 63
-------------------------------- Net interest income 325,671
298,840 9 Provision for credit losses 10,200 5,400 89
-------------------------------- Net interest income after
provision for credit losses 315,471 293,440 8 Non- Deposit charges
and service interest fees 102,840 81,624 26 income Other operating
income 61,101 42,600 43 Net investment securities (losses) gains
2,697 (25,541) (111) -------------------------------- Total
noninterest income 166,638 98,683 69
-------------------------------- Total Revenues 492,309 397,523 24
Non- Salaries and benefits 163,067 145,426 12 interest Occupancy
55,237 46,101 20 expense Furniture and equipment 43,916 36,794 19
Office 17,150 15,708 9 Marketing 12,515 10,544 19 Other 71,289
66,320 7 -------------------------------- Total noninterest
expenses 363,174 320,893 13 -------------------------------- Income
before income taxes 118,935 71,230 67 Provision for federal and
state income taxes 40,272 24,292 66
-------------------------------- Net income $78,663 $46,938 68 %
================================ Net income per common and common
equivalent share: Basic $0.41 $0.27 52 %
-------------------------------- Diluted $0.40 $0.26 54
-------------------------------- Average common and common
equivalent shares outstanding: Basic 187,704 174,958 7
-------------------------------- Diluted 196,052 182,801 7
-------------------------------- Cash dividends, common stock $0.13
$0.12 8 % ================================
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Twelve Months Ended December 31, --------------------------------
(dollars in thousands, except per share amounts) 2006 2005 % Change
--------------------------------------------------------------------------
Interest Interest and fees on loans $970,270 $680,552 43 % income
Interest on investments 1,301,928 981,420 33 Other interest 6,926
3,272 112 -------------------------------- Total interest income
2,279,124 1,665,244 37 -------------------------------- Interest
Interest on deposits: expense Demand 495,147 252,674 96 Savings
261,428 123,419 112 Time 189,944 98,780 92
-------------------------------- Total interest on deposits 946,519
474,873 99 Interest on other borrowed money 58,097 28,410 104
Interest on long-term debt 0 8,379 (100)
-------------------------------- Total interest expense 1,004,616
511,662 96 -------------------------------- Net interest income
1,274,508 1,153,582 10 Provision for credit losses 33,700 19,150 76
-------------------------------- Net interest income after
provision for credit losses 1,240,808 1,134,432 9 Non- Deposit
charges and service interest fees 374,210 282,692 32 income Other
operating income 214,246 174,132 23 Net investment securities
(losses) gains 2,697 (14,030) (119)
-------------------------------- Total noninterest income 591,153
442,794 34 -------------------------------- Total Revenues
1,865,661 1,596,376 17 Non- Salaries and benefits 614,627 526,428
17 interest Occupancy 196,498 165,077 19 expense Furniture and
equipment 161,075 126,986 27 Office 62,234 55,833 11 Marketing
42,737 37,261 15 Other 278,590 234,795 19
-------------------------------- Total noninterest expenses
1,355,761 1,146,380 18 -------------------------------- Income
before income taxes 476,200 430,846 11 Provision for federal and
state income taxes 161,051 147,907 9
-------------------------------- Net income $315,149 $282,939 11 %
================================ Net income per common and common
equivalent share: Basic $1.70 $1.70 0 %
-------------------------------- Diluted $1.63 $1.61 1
-------------------------------- Average common and common
equivalent shares outstanding: Basic 184,919 165,974 11
-------------------------------- Diluted 193,674 179,135 8
-------------------------------- Cash dividends, common stock $0.49
$0.45 9 % ================================ Commerce Bancorp, Inc.
and Subsidiaries Consolidated Statements of Income (unaudited)
-------------------------------------------------------------------------
Three Months Ended (dollars in
----------------------------------------------- thousands, Dec. 31,
Sept. 30, Dec. 31, except per
----------------------------------------------- share amounts) 2006
2006 % Change 2005 % Change
-------------------------------------------------------------------------
Inter- Interest and fees est on loans $262,743 $255,663 3 %
$194,617 35 % income Interest on investments 342,005 339,825 1
278,317 23 Other interest 4,345 1,918 127 293 1,383
--------------------------- ----------------- Total interest income
609,093 597,406 2 473,227 29 ---------------------------
----------------- Inter- Interest on est deposits: expense Demand
146,773 132,349 11 84,148 74 Savings 72,947 70,320 4 45,866 59 Time
60,134 52,375 15 31,987 88 ---------------------------
----------------- Total interest on deposits 279,854 255,044 10
162,001 73 Interest on other borrowed money 3,568 20,392 (83)
12,386 (71) Interest on long- term debt 0 0 0 0 0
--------------------------- ----------------- Total interest
expense 283,422 275,436 3 174,387 63 ---------------------------
----------------- Net interest income 325,671 321,970 1 298,840 9
Provision for credit losses 10,200 9,499 7 5,400 89
--------------------------- ----------------- Net interest income
after provision for credit losses 315,471 312,471 1 293,440 8 Non-
Deposit charges inter- and service fees 102,840 97,436 6 81,624 26
est Other operating income income 61,101 53,121 15 42,600 43 Net
investment securities (losses) gains 2,697 0 0 (25,541) (111)
--------------------------- ----------------- Total noninterest
income 166,638 150,557 11 98,683 69 ---------------------------
----------------- Total Revenues 492,309 472,527 4 397,523 24 Non-
Salaries and inter- benefits 163,067 156,105 4 145,426 12 est
Occupancy 55,237 49,534 12 46,101 20 expense Furniture and
equipment 43,916 41,543 6 36,794 19 Office 17,150 15,213 13 15,708
9 Marketing 12,515 10,712 17 10,544 19 Other 71,289 70,362 1 66,320
7 --------------------------- ----------------- Total noninterest
expenses 363,174 343,469 6 320,893 13 ---------------------------
----------------- Income before income taxes 118,935 119,559 (1)
71,230 67 Provision for federal and state income taxes 40,272
39,890 1 24,292 66 --------------------------- -----------------
Net income $78,663 $79,669 (1)% $46,938 68 %
=========================== ================= Net income per common
and common equivalent share: Basic $0.41 $0.43 (5)% $0.27 52 %
--------------------------- ----------------- Diluted $0.40 $0.41
(2) $0.26 54 --------------------------- ----------------- Average
common and common equivalent shares outstanding: Basic 187,704
186,527 1 174,958 7 --------------------------- -----------------
Diluted 196,052 194,754 1 182,801 7 ---------------------------
----------------- Cash dividends, common stock $0.13 $0.12 8 %
$0.12 8 % =========================== ================= Return on
average assets 0.71 % 0.74 % 0.50 % Return on average equity 11.34
12.06 8.67 Commerce Bancorp, Inc. Selected Consolidated Financial
Data (unaudited) Three Months Ended December 31,
---------------------------------- % 2006 2005 Change ----------
---------- ------ (dollars and shares in thousands) Income
Statement Data: Net interest income $325,671 $298,840 9 % Provision
for credit losses 10,200 5,400 89 Noninterest income 166,638 98,683
69 Total revenues 492,309 397,523 24 Noninterest expense 363,174
320,893 13 Net income 78,663 46,938 68 Per Share Data: Net income -
Basic $0.41 $0.27 52 % Net income - Diluted 0.40 0.26 54 Book value
- Basic Book value - Diluted Revenue per share - Diluted $10.04
$8.70 15 % Weighted Average Shares Outstanding: Basic 187,704
174,958 Diluted 196,052 182,801 Balance Sheet Data: Total assets
Loans (net) Allowance for credit losses Securities available for
sale Securities held to maturity Total deposits Core deposits
Stockholders' equity Capital: Stockholders' equity to total assets
Risk-based capital ratios: Tier I Total capital Leverage ratio
Performance Ratios: Cost of funds 2.76 % 2.01 % Net interest margin
3.25 3.52 Return on average assets 0.71 0.50 Return on average
total stockholders' equity 11.34 8.67 Twelve Months Ended December
31, ---------------------------------- % 2006 2005 Change
----------- ----------- ------ (dollars and shares in thousands)
Income Statement Data: Net interest income $1,274,508 $1,153,582 10
% Provision for credit losses 33,700 19,150 76 Noninterest income
591,153 442,794 34 Total revenues 1,865,661 1,596,376 17
Noninterest expense 1,355,761 1,146,380 18 Net income 315,149
282,939 11 Per Share Data: Net income - Basic $1.70 $1.70 - % Net
income - Diluted 1.63 1.61 1 Book value - Basic $14.94 $12.92 16 %
Book value - Diluted 14.28 12.38 15 Revenue per share - Diluted
$9.63 $8.91 8 % Weighted Average Shares Outstanding: Basic 184,919
165,974 Diluted 193,674 179,135 Balance Sheet Data: Total assets
$45,264,760 $38,466,037 18 % Loans (net) 15,454,996 12,524,988 23
Allowance for credit losses 160,269 141,464 13 Securities available
for sale 11,098,113 9,518,821 17 Securities held to maturity
14,884,982 13,005,364 14 Total deposits 41,288,211 34,726,713 19
Core deposits 40,076,568 33,869,540 18 Stockholders' equity
2,816,934 2,309,173 22 Capital: Stockholders' equity to total
assets 6.22 % 6.00 % Risk-based capital ratios: Tier I 11.82 11.81
Total capital 12.53 12.58 Leverage ratio 6.22 6.04 Performance
Ratios: Cost of funds 2.59 % 1.65 % Net interest margin 3.35 3.77
Return on average assets 0.75 0.83 Return on average total
stockholders' equity 12.26 14.90 The following summary presents
information regarding non-performing loans and assets as of
December 31, 2006 and the preceding four quarters (dollar amounts
in thousands). Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2006
2006 2006 2006 2005 ------- -------- -------- -------- --------
Non-accrual loans: Commercial $33,686 $33,658 $34,904 $16,975
$16,712 Consumer 11,820 9,325 8,927 9,285 8,834 Commercial real
estate: Construction 3,531 496 1,708 1,726 1,763 Mortgage 1,565
1,828 2,523 2,096 4,329 ------- -------- -------- -------- --------
Total non-accrual loans 50,602 45,307 48,062 30,082 31,638 -------
-------- -------- -------- -------- Restructured loans: Commercial
- - 2,941 3,037 3,133 Consumer - - - - - Commercial real estate:
Construction - - - - - Mortgage - - - - - ------- -------- --------
-------- -------- Total restructured loans - - 2,941 3,037 3,133
------- -------- -------- -------- -------- Total non-performing
loans 50,602 45,307 51,003 33,119 34,771 ------- -------- --------
-------- -------- Other real estate/ foreclosed assets 2,610 2,022
1,369 435 279 ------- -------- -------- -------- -------- Total
non-performing assets 53,212 47,329 52,372 33,554 35,050 -------
-------- -------- -------- -------- Loans past due 90 days or more
and still accruing 620 441 583 332 248 ------- -------- --------
-------- -------- Total non-performing assets and loans past due 90
days or more $53,832 $47,770 $52,955 $33,886 $35,298 -------
-------- -------- -------- -------- Total non-performing loans as a
percentage of total period- end loans 0.32% 0.31% 0.36% 0.25% 0.27%
Total non-performing assets as a percentage of total period-end
assets 0.12% 0.11% 0.12% 0.08% 0.09% Total non-performing assets
and loans past due 90 days or more as a percentage of total
period-end assets 0.12% 0.11% 0.12% 0.08% 0.09% Allowance for
credit losses as a percentage of total non- performing loans 317%
341% 291% 432% 407% Allowance for credit losses as a percentage of
total period-end loans 1.03% 1.05% 1.04% 1.06% 1.12% 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% 1% 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) Three Months Ended
Twelve Months Ended ---------------------- ----------------------
12/31/06 12/31/05 12/31/06 12/31/05 ---------- ----------
---------- ---------- Balance at beginning of period $154,572
$138,903 $141,464 $135,620 Provisions charged to operating expenses
10,200 5,400 33,700 19,150 ---------- ---------- ----------
---------- 164,772 144,303 175,164 154,770 Recoveries on loans
charged-off: Commercial 1,652 626 5,987 2,546 Consumer 232 1,234
1,604 2,566 Commercial real estate 10 - 385 80 ----------
---------- ---------- ---------- Total recoveries 1,894 1,860 7,976
5,192 Loans charged-off: Commercial (3,925) (4,842) (14,107)
(13,944) Consumer (2,376) (2,192) (8,179) (5,912) Commercial real
estate (96) (159) (585) (1,136) ---------- ---------- ----------
---------- Total charge-offs (6,397) (7,193) (22,871) (20,992)
---------- ---------- ---------- ---------- Net charge-offs (4,503)
(5,333) (14,895) (15,800) ---------- ---------- ----------
---------- Allowance for credit loss acquired bank 2,494 2,494
---------- ---------- Balance at end of period $160,269 $141,464
$160,269 $141,464 ========== ========== ========== ========== Net
charge-offs as a percentage of average loans outstanding 0.12 %
0.18 % 0.11 % 0.15 % Net Allowance Additions $5,697 $2,561 $18,805
$5,844 Commerce Bancorp, Inc. and Subsidiaries Average Balances and
Net Interest Income (unaudited) ----------------------------------
December 2006 ---------------------------------- Average Average
Balance Interest Rate ---------------------------------- (dollars
in thousands) Earning Assets Investment securities Taxable
$24,610,625 $335,665 5.41 % Tax-exempt 586,903 8,596 5.81 Trading
103,468 1,157 4.44 ------------- ---------- ------- Total
investment securities 25,300,996 345,418 5.42 Federal funds sold
323,652 4,345 5.33 Loans Commercial mortgages 5,192,406 92,553 7.07
Commercial 3,764,466 74,777 7.88 Consumer 5,533,248 88,846 6.37
Tax-exempt 538,746 10,104 7.44 ------------- ---------- -------
Total loans 15,028,866 266,280 7.03 ------------- ----------
------- Total earning assets $40,653,514 $616,043 6.01 %
============= Sources of Funds Interest-bearing liabilities Savings
$10,643,889 $72,947 2.72 % Interest bearing demand 16,280,718
146,773 3.58 Time deposits 3,723,163 39,578 4.22 Public funds
1,525,472 20,556 5.35 ------------- ---------- ------- Total
deposits 32,173,242 279,854 3.45 Other borrowed money 267,992 3,568
5.28 Long-term debt 0 0 0.00 ------------- ---------- ------- Total
deposits and interest-bearing liabilities 32,441,234 283,422 3.47
Noninterest-bearing funds (net) 8,212,280 ------------- ----------
------- Total sources to fund earning assets $40,653,514 283,422
2.76 ============= ---------- ------- Net interest income and
margin tax-equivalent basis $332,621 3.25 % ========== =======
Other Balances Cash and due from banks $1,174,831 Other assets
2,451,220 Total assets 44,127,276 Total deposits 40,704,685 Demand
deposits (noninterest-bearing) 8,531,443 Other liabilities 378,776
Stockholders' equity 2,775,823 Allowance for loan losses 152,289
---------------------------------- September 2006
---------------------------------- Average Average Balance Interest
Rate ---------------------------------- (dollars in thousands)
Earning Assets Investment securities Taxable $24,566,553 $334,250
5.40 % Tax-exempt 530,542 7,641 5.71 Trading 78,103 934 4.74
------------- ---------- ------- Total investment securities
25,175,198 342,825 5.40 Federal funds sold 145,897 1,918 5.22 Loans
Commercial mortgages 5,001,608 90,050 7.14 Commercial 3,603,790
72,606 7.99 Consumer 5,407,721 87,077 6.39 Tax-exempt 510,950 9,123
7.08 ------------- ---------- ------- Total loans 14,524,069
258,856 7.07 ------------- ---------- ------- Total earning assets
$39,845,164 $603,599 6.01 % ============= Sources of Funds
Interest-bearing liabilities Savings $10,592,676 $70,320 2.63 %
Interest bearing demand 14,975,663 132,349 3.51 Time deposits
3,344,257 32,667 3.88 Public funds 1,470,116 19,708 5.32
------------- ---------- ------- Total deposits 30,382,712 255,044
3.33 Other borrowed money 1,543,210 20,392 5.24 Long-term debt 0 0
0.00 ------------- ---------- ------- Total deposits and
interest-bearing liabilities 31,925,922 275,436 3.42
Noninterest-bearing funds (net) 7,919,242 ------------- ----------
------- Total sources to fund earning assets $39,845,164 275,436
2.74 ============= ---------- ------- Net interest income and
margin tax-equivalent basis $328,163 3.27 % ========== =======
Other Balances Cash and due from banks $1,219,806 Other assets
2,359,885 Total assets 43,279,878 Total deposits 38,772,316 Demand
deposits (noninterest-bearing) 8,389,604 Other liabilities 321,225
Stockholders' equity 2,643,127 Allowance for loan losses 144,977
---------------------------------- December 2005
---------------------------------- Average Average Balance Interest
Rate ---------------------------------- (dollars in thousands)
Earning Assets Investment securities Taxable $21,761,130 $273,042
4.98 % Tax-exempt 518,699 6,279 4.80 Trading 124,625 1,838 5.85
------------- ---------- ------- Total investment securities
22,404,454 281,159 4.98 Federal funds sold 26,165 293 4.44 Loans
Commercial mortgages 4,124,373 68,958 6.63 Commercial 2,893,352
51,892 7.12 Consumer 4,402,231 68,197 6.15 Tax-exempt 487,280 8,570
6.98 ------------- ---------- ------- Total loans 11,907,236
197,617 6.58 ------------- ---------- ------- Total earning assets
$34,337,855 $479,069 5.53 % ============= Sources of Funds
Interest-bearing liabilities Savings $8,993,005 $45,866 2.02 %
Interest bearing demand 13,222,933 84,148 2.52 Time deposits
2,970,865 23,540 3.14 Public funds 861,920 8,447 3.89 -------------
---------- ------- Total deposits 26,048,723 162,001 2.47 Other
borrowed money 1,213,323 12,386 4.05 Long-term debt 0 0 0.00
------------- ---------- ------- Total deposits and
interest-bearing liabilities 27,262,046 174,387 2.54
Noninterest-bearing funds (net) 7,075,809 ------------- ----------
------- Total sources to fund earning assets $34,337,855 174,387
2.01 ============= ---------- ------- Net interest income and
margin tax-equivalent basis $304,682 3.52 % ========== =======
Other Balances Cash and due from banks $1,304,177 Other assets
1,945,109 Total assets 37,445,373 Total deposits 33,783,365 Demand
deposits (noninterest-bearing) 7,734,642 Other liabilities 282,218
Stockholders' equity 2,166,467 Allowance for loan losses 141,768
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
Twelve Months Ended December 31, December 31, ------------------
------------------- 2006 2005 2006 2005 --------- --------
--------- -------- Basic: Net income applicable to common stock
$78,663 $46,938 $315,149 $282,939 ========= ======== ========
======== Average common shares outstanding 187,704 174,958 184,919
165,974 ========= ======== ======== ======== Net income per common
share $0.41 $0.27 $1.70 $1.70 ========= ======== ======== ========
Diluted: Net income applicable to common stock on a diluted basis
$78,663 $46,938 $315,149 $282,939 Interest expense on trust
preferred securities 5,446 --------- -------- ---------- -------
$78,663 $46,938 $315,149 $288,385 ========= ======== ========
======== Average common shares outstanding 187,704 174,958 184,919
165,974 Additional shares considered in diluted computation
assuming: Exercise of stock options 8,348 7,843 8,755 7,843
Conversion of trust preferred securities 5,318 --------- --------
---------- ------- Average common and common equivalent shares
outstanding 196,052 182,801 193,674 179,135 ========= ========
======== ======== Net income per common and common equivalent share
$0.40 $0.26 $1.63 $1.61 ========= ======== ======== ========
DATASOURCE: Commerce Bancorp, Inc.
Copyright