Commerce Bancorp 8-K Commerce Bancorp Reports Results

Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
		December 31,
	(dollars in thousands)	2007			2006
Assets	Cash and due from banks	$	1,331,139		$	1,207,390
	Federal funds sold		925,500			9,300
	Cash and cash equivalents		2,256,639			1,216,690
	Loans held for sale		34,349			52,741
	Trading securities		225,786			106,007
	Securities available for sale		12,979,618			11,098,113
	Securities held to maturity		13,219,272			14,884,982
	(market value 2007-$12,604,659; 2006-$14,617,764)
	Loans		17,841,518			15,607,049
	Less allowance for loan losses		203,193			152,053
			17,638,325			15,454,996
	Bank premises and equipment, net		2,077,748			1,753,670
	Goodwill and other intangible assets		136,713			141,631
	Other assets		687,056			562,986
	Total assets	$	49,255,506		$	45,271,816
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	9,657,798		$	8,936,824
	Interest-bearing		20,877,932			16,853,457
	Savings		9,985,927			10,459,306
	Time		5,517,094			5,038,624
	Total deposits		46,038,751			41,288,211
	Other borrowed money		100,954			777,404
	Other liabilities		331,843			405,103
			46,471,548			42,470,718
Stockholders'	Common stock, 197,710,812 shares issued (189,738,423 shares in 2006)		197,711			189,738
Equity	Capital in excess of par value		1,941,931			1,744,691
	Retained earnings		993,921			958,770
	Accumulated other comprehensive (loss) income		(297,112	)		(65,240	)
			2,836,451			2,827,959
	Less treasury stock, at cost, 1,976,923 shares (1,231,081 shares in 2006)		52,493			26,861
	Total stockholders' equity		2,783,958			2,801,098
	Total liabilities and stockholders' equity	$	49,255,506		$	45,271,816

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)	2007			2006		% Change			2007			2006		% Change
Interest	Interest and fees on loans	$	295,830		$	262,743		13	%	$	1,135,317		$	970,270		17	%
income	Interest on investments		369,346			342,005		8			1,491,552			1,301,928		15
	Other interest		7,506			4,345		73			16,075			6,926		132
	Total interest income		672,682			609,093		10			2,642,944			2,279,124		16
Interest	Interest on deposits:
expense	Demand		166,412			146,773		13			690,059			495,147		39
	Savings		66,380			72,947		(9	)		288,673			261,428		10
	Time		63,763			60,134		6			250,530			189,944		32
	Total interest on deposits		296,555			279,854		6			1,229,262			946,519		30
	Interest on other borrowed money		5,413			3,568		52			20,065			58,097		(65	)
	Total interest expense		301,968			283,422		7			1,249,327			1,004,616		24
	Net interest income		370,714			325,671		14			1,393,617			1,274,508		9
	Provision for credit losses		55,000			10,200		439			103,550			33,700		207
	Net interest income after provision for credit losses		315,714			315,471		0			1,290,067			1,240,808		4
Noninterest income	Deposit charges and service fees		126,964			102,840		23			468,854			374,210		25
	Other operating income		71,993			61,101		13			242,276			214,246		12
	Net investment securities (losses) gains		(1,912	)		2,697		(56	)		(174,376	)		2,697		(6,450	)
	Total noninterest income		197,045			166,638		18			536,754			591,153		(9	)
	Total Revenues		567,759			492,309		15			1,930,371			1,865,661		3
Noninterest	Salaries and benefits		197,994			163,067		21			716,689			614,627		17
expense	Occupancy		70,789			55,237		28			251,352			196,498		28
	Furniture and equipment		49,424			43,916		13			183,808			161,075		14
	Office		17,869			17,150		4			67,890			62,234		9
	Marketing		15,666			12,515		25			48,165			42,737		13
	Other		104,382			71,289		46			343,335			278,590		23
	Total noninterest      expenses		456,124			363,174		26			1,611,239			1,355,761		19
	Income before income taxes		56,635			118,935		(52	)		215,582			476,200		(55	)
	Provision for federal and state income taxes		23,275			56,108		(59	)		75,294	��		176,887		(57	)
	Net income	$	33,360		$	62,827		(47	) %	$	140,288		$	299,313		(53	) %
	Net income per common and common equivalent share:
	Basic	$	0.17		$	0.33		(48	) %	$	0.73		$	1.62		(55	) %
	Diluted	$	0.17		$	0.32		(47	)	$	0.71		$	1.55		(54	)
	Average common and common equivalent shares outstanding:
	Basic		194,888			187,704		4			192,204			184,919		4
	Diluted		200,641			196,052		2			198,406			193,674		2
	Cash dividends, common stock	$	0.13		$	0.13		0	%	$	0.52		$	0.49		6	%

Commerce Bancorp, Inc.
Selected Consolidated Financial Data
(unaudited)
	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
							%									%
	2007			2006			Change			2007			2006			Change
	(dollars and shares in thousands)									(dollars and shares in thousands)
Income Statement Data:
Net interest income	$	370,714		$	325,671			14	%	$	1,393,617		$	1,274,508			9	%
Provision for credit losses		55,000			10,200			439			103,550			33,700			207
Noninterest income		197,045			166,638			18			536,754			591,153			(9	)
Total revenues		567,759			492,309			15			1,930,371			1,865,661			3
Noninterest expense		456,124			363,174			26			1,611,239			1,355,761			19
Net income		33,360			62,827			(47	)		140,288			299,313			(53	)
Per Share Data:
Net income - Basic	$	0.17		$	0.33			(48	) %	$	0.73		$	1.62			(55	) %
Net income - Diluted		0.17			0.32			(47	)		0.71			1.55			(54	)
Book value - Basic										$	14.22		$	14.86			(4	) %
Book value - Diluted											13.79			14.20			(3	)
Revenue per share - Diluted	$	11.32		$	10.04			13	%	$	9.73		$	9.63			1	%
Weighted Average Shares Outstanding:
Basic		194,888			187,704						192,204			184,919
Diluted		200,641			196,052						198,406			193,674
Balance Sheet Data:
Total assets										$	49,255,506		$	45,271,816			9	%
Loans (net)											17,638,325			15,454,996			14
Allowance for credit losses											213,281			160,269			33
Securities available for sale											12,979,618			11,098,113			17
Securities held to maturity											13,219,272			14,884,982			(11	)
Total deposits											46,038,751			41,288,211			12
Core deposits											44,596,836			40,076,568			11
Stockholders' equity											2,783,958			2,801,098			(1	)
Capital:
Stockholders' equity to total assets											5.65	%		6.19	%
Risk-based capital ratios:
Tier I											11.26			11.73
Total capital											12.10			12.44
Leverage ratio											6.01			6.18
Performance Ratios:
Cost of funds		2.65	%		2.76	%					2.79	%		2.59	%
Net interest margin		3.32			3.25						3.24			3.35
Return on average assets		0.27			0.57						0.29			0.71
Return on average total stockholders' equity		4.52			9.05						4.80			11.65

The following summary presents information regarding non-performing loans and assets as of December 31, 2007 and the preceding
four quarters (dollar amounts in thousands).
	December 31,			September 30,			June 30,			March 31,			December 31,
	2007			2007			2007			2007			2006
Non-accrual loans:
Commercial	$	35,575		$	25,736		$	22,381		$	20,526		$	33,686
Consumer		23,493			18,463			15,462			15,343			11,820
Commercial real estate:
Construction		30,813			44,619			8,509			8,575			3,531
Mortgage		14,570			9,287			4,328			2,277			1,565
Total non-accrual loans		104,451			98,105			50,680			46,721			50,602
Restructured loans:
Commercial		-			-			-			-			-
Consumer		-			-			-			-			-
Commercial real estate:
Construction		-			-			-			-			-
Mortgage		-			-			-			-			-
Total restructured loans		-			-			-			-			-
Total non-performing loans		104,451			98,105			50,680			46,721			50,602
Other real estate/foreclosed assets		4,287			2,709			5,235			5,000			2,610
Total non-performing assets		108,738			100,814			55,915			51,721			53,212
Loans past due 90 days or more
and still accruing		1,534			1,078			965			658			620
Total non-performing assets and
loans past due 90 days or more	$	110,272		$	101,892		$	56,880		$	52,379		$	53,832
Total non-performing loans as a
percentage of total period-end
loans		0.59	%		0.58	%		0.31	%		0.29	%		0.32	%
Total non-performing assets as a
percentage of total period-end assets		0.22	%		0.20	%		0.12	%		0.11	%		0.12	%
Allowance for credit losses as a
percentage of total non-performing
loans		204	%		190	%		334	%		351	%		317	%
Allowance for credit losses as a percentage
of total period-end loans		1.20	%		1.09	%		1.04	%		1.03	%		1.03	%
Total non-performing assets and loans
past due 90 days or more as a
percentage of stockholders' equity and
allowance for credit losses		4	%		3	%		2	%		2	%		2	%

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
	12/31/07			12/31/06			12/31/07			12/31/06
Balance at beginning of period	$	185,966		$	154,572		$	160,269		$	141,464
Provisions charged to operating expenses		55,000			10,200			103,550			33,700
		240,966			164,772			263,819			175,164
Recoveries on loans charged-off:
Commercial		1,280			1,652			4,550			5,987
Consumer		372			232			1,246			1,604
Commercial real estate		-			10			297			385
Total recoveries		1,652			1,894			6,093			7,976
Loans charged-off:
Commercial		(9,401	)		(3,925	)		(25,498	)		(14,107	)
Consumer		(3,769	)		(2,376	)		(12,455	)		(8,179	)
Commercial real estate		(16,167	)		(96	)		(18,678	)		(585	)
Total charge-offs		(29,337	)		(6,397	)		(56,631	)		(22,871	)
Net charge-offs		(27,685	)		(4,503	)		(50,538	)		(14,895	)
Balance at end of period	$	213,281		$	160,269		$	213,281		$	160,269
Net charge-offs as a percentage of
average loans outstanding		0.63	%		0.12	%		0.31	%		0.11
Net Allowance Additions	$	27,315		$	5,697		$	53,012		$	18,805

Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	December 2007							September 2007							December 2006
	Average				Average			Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$	24,173,392	$	329,274		5.40	%	$	27,318,695	$	381,917		5.55	%	$	24,610,625	$	335,665		5.41	%
Tax-exempt		460,956		7,086		6.10			437,271		6,614		6.00			586,903		8,596		5.81
Trading		2,396,040		35,842		5.93			328,192		4,894		5.92			103,468		1,157		4.44
Total investment securities		27,030,388		372,202		5.46			28,084,158		393,425		5.56			25,300,996		345,418		5.42
Federal funds sold		649,656		7,506		4.58			61,867		836		5.36			323,652		4,345		5.33
Loans
Commercial  mortgages		5,839,419		101,078		6.87			5,551,061		99,010		7.08			5,192,406		92,553		7.07
Commercial		4,607,099		86,412		7.44			4,317,292		84,024		7.72			3,764,466		74,777		7.88
Consumer		6,337,121		100,478		6.29			6,164,959		99,188		6.38			5,533,248		88,846		6.37
Tax-exempt		673,619		12,095		7.12			640,357		11,742		7.27			538,746		10,104		7.44
Total loans		17,457,258		300,063		6.82			16,673,669		293,964		6.99			15,028,866		266,280		7.03
Total earning assets	$	45,137,302	$	679,771		5.97	%	$	44,819,694	$	688,225		6.09	%	$	40,653,514	$	616,043		6.01	%
Sources of Funds
Interest-bearing liabilities
Savings	$	10,277,552	$	66,380		2.56	%	$	10,561,475	$	77,221		2.90	%	$	10,643,889	$	72,947		2.72	%
Interest bearing   demand		20,483,398		166,412		3.22			19,629,289		182,616		3.69			16,280,718		146,773		3.58
Time deposits		4,231,788		47,952		4.50			4,318,505		49,488		4.55			3,723,163		39,578		4.22
Public funds		1,257,124		15,811		4.99			1,347,235		17,895		5.27			1,525,472		20,556		5.35
Total deposits		36,249,862		296,555		3.25			35,856,504		327,220		3.62			32,173,242		279,854		3.45
Other borrowed money		445,888		5,413		4.82			523,708		7,001		5.30			267,992		3,568		5.28
Total deposits and interest-bearing liabilities		36,695,750		301,968		3.26			36,380,212		334,221		3.64			32,441,234		283,422		3.47
Noninterest-bearing funds (net)		8,441,552							8,439,482							8,212,280
Total sources to fund earning assets	$	45,137,302		301,968		2.65		$	44,819,694		334,221		2.96		$	40,653,514		283,422		2.76
Net interest income and
margin tax equivalent basis			$	377,803		3.32	%			$	354,004		3.13	%			$	332,621		3.25	%
Other Balances
Cash and due from banks	$	1,228,467						$	1,242,929						$	1,174,831
Other assets		2,782,742							2,804,641							2,451,297
Total assets		48,966,327							48,701,192							44,127,353
Total deposits		45,234,270							44,821,215							40,704,685
Demand deposits (noninterest-bearing)		8,984,408							8,964,711							8,531,443
Other liabilities		335,027							393,685							379,025
Stockholders' equity		2,951,142							2,962,584							2,775,651
Allowance for loan losses		182,184							166,072							152,289
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.