Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) ------------------------------------------------------------------------ Linked Dec. 31, Sept. 30, Quarter ------------------------------------------------------------------------ (dollars in thousands) 2005 2005 % Change ------------------------------------------------------------------------ Assets Cash and due from banks $1,284,064 $1,345,080 (5) % Federal funds sold 12,700 14,500 (12) -------------------------------------------- Cash and cash equivalents 1,296,764 1,359,580 (5) Loans held for sale 30,091 85,372 (65) Trading securities 143,016 150,847 (5) Securities available for sale 9,518,821 8,965,121 6 Securities held to maturity 13,005,364 12,961,900 0 Loans: Commercial real estate: Investor developer 2,001,674 1,657,101 21 Residential construction 290,530 256,198 13 -------------------------------------------- 2,292,204 1,913,299 20 Commercial loans: Term 1,781,148 1,629,366 9 Line of credit 1,517,347 1,345,536 13 Demand 0 0 0 -------------------------------------------- 3,298,495 2,974,902 11 Owner-occupied 2,402,300 2,313,175 4 -------------------------------------------- 5,700,795 5,288,077 8 Consumer: Mortgages (1-4 family residential) 2,000,309 1,621,419 23 Installment 211,332 203,055 4 Home equity 2,353,581 2,177,317 8 Credit lines 100,431 86,256 16 -------------------------------------------- 4,665,653 4,088,047 14 -------------------------------------------- Total loans 12,658,652 11,289,423 12 -------------------------------------------- Less allowance for loan losses 133,664 * 138,903 (4) -------------------------------------------- 12,524,988 11,150,520 12 Bank premises and equipment, net 1,378,786 1,217,222 13 Other assets 568,207 402,978 41 -------------------------------------------- Total assets $38,466,037 $36,293,540 6 % ============================================ Liabilities Deposits: Demand: Noninterest- bearing $8,019,878 $7,827,651 2 % Interest- bearing 13,286,678 13,133,145 1 Savings 9,486,712 8,676,201 9 Time 3,933,445 3,606,689 9 -------------------------------------------- Total deposits 34,726,713 33,243,686 4 ------- Other borrowed money 1,106,443 703,227 57 Other liabilities 323,708 232,266 39 Long-term debt 0 0 0 -------------------------------------------- 36,156,864 34,179,179 6 Stockholders' Common stock 179,499 173,784 3 Equity Capital in excess of par value 1,450,843 1,259,184 15 Retained earnings 750,710 729,211 3 Accumulated other comprehensive (loss) income (59,169) (35,108) 69 -------------------------------------------- 2,321,883 2,127,071 9 Less treasury stock, at cost 12,710 12,710 0 -------------------------------------------- Total stockholders' equity 2,309,173 2,114,361 9 -------------------------------------------- Total liabilities and stockholders' equity $38,466,037 $36,293,540 6 % ============================================ * Net of transfer of $7.8 million to Allowance for Unfunded Credit Commitments included in Other Liabilities ------------------------------------------------------------------- Dec. 31, ------------------------------------------------------------------- (dollars in thousands) 2004 % Change ------------------------------------------------------------------- Assets Cash and due from banks $1,050,806 22 % Federal funds sold 0 0 ----------------------------- Cash and cash equivalents 1,050,806 23 Loans held for sale 44,072 (32) Trading securities 169,103 (15) Securities available for sale 8,044,150 18 Securities held to maturity 10,463,658 24 Loans: Commercial real estate: Investor developer 1,455,891 37 Residential construction 206,924 40 ----------------------------- 1,662,815 38 Commercial loans: Term 1,283,476 39 Line of credit 1,168,542 30 Demand 0 0 ----------------------------- 2,452,018 35 Owner-occupied 1,998,203 20 ----------------------------- 4,450,221 28 Consumer: Mortgages (1-4 family residential) 1,340,009 49 Installment 132,646 59 Home equity 1,799,841 31 Credit lines 69,079 45 ----------------------------- 3,341,575 40 ----------------------------- Total loans 9,454,611 34 ----------------------------- Less allowance for loan losses 135,620 (1) ----------------------------- 9,318,991 34 Bank premises and equipment, net 1,059,519 30 Other assets 351,346 62 ----------------------------- Total assets $30,501,645 26 % ============================= Liabilities Deposits: Demand: Noninterest- bearing $6,406,614 25 % Interest- bearing 11,604,066 15 Savings 6,490,263 46 Time 3,157,942 25 ----------------------------- Total deposits 27,658,885 26 ------- Other borrowed money 661,195 67 Other liabilities 315,860 2 Long-term debt 200,000 (100) ----------------------------- 28,835,940 25 Stockholders' Common stock 160,636 12 Equity Capital in excess of par value 951,476 52 Retained earnings 543,978 38 Accumulated other comprehensive (loss) income 20,953 (382) ----------------------------- 1,677,043 38 Less treasury stock, at cost 11,338 12 ----------------------------- Total stockholders' equity 1,665,705 39 ----------------------------- Total liabilities and stockholders' equity $30,501,645 26 % ============================= * Net of transfer of $7.8 million to Allowance for Unfunded Credit Commitments included in Other Liabilities Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) ------------------------------------------------------------------------- (dollars in December 31, September 30, 2005 thousands) ------------------------------------------------ 2005 Actual $ Change % Change ------------------------------------------------------------------------- Assets Cash and due from banks $1,284,064 $1,345,080 ($61,016) (5)% Federal funds sold 12,700 14,500 (1,800) (12) ---------------------------------------------- Cash and cash equivalents 1,296,764 1,359,580 (62,816) (5) Loans held for sale 30,091 85,372 (55,281) (65) Trading securities 143,016 150,847 (7,831) (5) Securities available for sale 9,518,821 8,965,121 553,700 6 Securities held to maturity 13,005,364 12,961,900 43,464 0 Loans 12,658,652 11,289,423 1,369,229 12 Less allowance for loan losses 133,664 * 138,903 (5,239) (4) ---------------------------------------------- 12,524,988 11,150,520 1,374,468 12 Reserve % 1.12% 1.23% Bank premises and equipment, net 1,378,786 1,217,222 161,564 13 Other assets 568,207 402,978 165,229 41 ---------------------------------------------- Total assets $38,466,037 $36,293,540 $2,172,497 6 % ============================================== Liabil- ities Deposits: Demand: Noninterest- bearing $8,019,878 $7,827,651 $192,227 2 % Interest- bearing 13,286,678 13,133,145 153,533 1 Savings 9,486,712 8,676,201 810,511 9 Time 3,933,445 3,606,689 326,756 9 ---------------------------------------------- Total deposits 34,726,713 33,243,686 1,483,027 4 Core deposits 33,869,540 32,370,994 1,498,546 5 Total other liabilities 1,430,151 935,493 494,658 53 ---------------------------------------------- 36,156,864 34,179,179 1,977,685 6 Stockholders' Equity 2,309,173 2,114,361 194,812 9 ---------------------------------------------- Total liabilities and stockholders' equity $38,466,037 $36,293,540 $2,172,497 6 % ============================================== * Net of transfer of $7.8 million to Allowance for Unfunded Credit Commitments included in Other Liabilities -------------------------------------------------------------------------- (dollars in thousands) December 31, 2004 ----------------------------------- Actual $ Change % Change -------------------------------------------------------------------------- Assets Cash and due from banks $1,050,806 $233,258 22 % Federal funds sold 0 12,700 0 ----------------------------------- Cash and cash equivalents 1,050,806 245,958 23 Loans held for sale 44,072 (13,981) (32) Trading securities 169,103 (26,087) (15) Securities available for sale 8,044,150 1,474,671 18 Securities held to maturity 10,463,658 2,541,706 24 Loans 9,454,611 3,204,041 34 Less allowance for loan losses 135,620 (1,956) (1) ----------------------------------- 9,318,991 3,205,997 34 ------ Reserve % 1.43% Bank premises and equipment, net 1,059,519 319,267 30 Other assets 351,346 216,861 62 ----------------------------------- Total assets $30,501,645 $7,964,392 26 % =================================== Liabil- ities Deposits: Demand: Noninterest- bearing $6,406,614 $1,613,264 25 % Interest-bearing 11,604,066 1,682,612 15 Savings 6,490,263 2,996,449 46 Time 3,157,942 775,503 25 ----------------------------------- Total deposits 27,658,885 7,067,828 26 Core deposits 26,656,530 7,213,010 27 ------ Total other liabilities 1,177,055 253,096 22 ----------------------------------- 28,835,940 7,320,924 25 Stockholders' Equity 1,665,705 643,468 39 ----------------------------------- Total liabilities and stockholders' equity $30,501,645 $7,964,392 26 % =================================== * Net of transfer of $7.8 million to Allowance for Unfunded Credit Commitments included in Other Liabilities Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) ------------------------------------------------------------------------- December 31, --------------------------- (dollars in thousands) 2005 2004 ------------------------------------------------------------------------- Assets Cash and due from banks $1,284,064 $1,050,806 Federal funds sold 12,700 0 --------------------------- Cash and cash equivalents 1,296,764 1,050,806 Loans held for sale 30,091 44,072 Trading securities 143,016 169,103 Securities available for sale 9,518,821 8,044,150 Securities held to maturity 13,005,364 10,463,658 (market value 2005- $12,758,552; 2004- $10,430,451) Loans 12,658,652 9,454,611 Less allowance for loan losses 133,664 * 135,620 --------------------------- 12,524,988 9,318,991 Bank premises and equipment, net 1,378,786 1,059,519 Other assets 568,207 351,346 --------------------------- Total assets $38,466,037 $30,501,645 =========================== Liabilities Deposits: Demand: Noninterest-bearing $8,019,878 $6,406,614 Interest-bearing 13,286,678 11,604,066 Savings 9,486,712 6,490,263 Time 3,933,445 3,157,942 --------------------------- Total deposits 34,726,713 27,658,885 Other borrowed money 1,106,443 661,195 Other liabilities 323,708 315,860 Long-term debt 0 200,000 --------------------------- 36,156,864 28,835,940 Stockholders' Common stock, 179,498,717 Equity shares issued (160,635,618 shares in 2004) 179,499 160,636 Capital in excess of par value 1,450,843 951,476 Retained earnings 750,710 543,978 Accumulated other comprehensive (loss) income (59,169) 20,953 --------------------------- 2,321,883 1,677,043 Less treasury stock, at cost, 837,338 shares (795,610 shares in 2004) 12,710 11,338 --------------------------- Total stockholders' equity 2,309,173 1,665,705 --------------------------- Total liabilities and stockholders' equity $38,466,037 $30,501,645 =========================== * Net of transfer of $7.8 million to Allowance for Unfunded Credit Commitments included in Other Liabilities Commerce Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) ------------------------------------------------------------------------- Three Months Ended December 31, (dollars in thousands, except -------------------------------- per share amounts) 2005 2004 % Change ------------------------------------------------------------------------- Interest Interest and fees on loans $194,617 $136,328 43 % income Interest on investments 278,317 216,806 28 Other interest 293 261 12 -------------------------------- Total interest income 473,227 353,395 34 -------------------------------- Interest Interest on deposits: expense Demand 84,148 36,042 133 Savings 45,866 16,270 182 Time 31,987 16,691 92 -------------------------------- Total interest on deposits 162,001 69,003 135 Interest on other borrowed money 12,386 2,930 323 Interest on long-term debt 0 3,020 (100) -------------------------------- Total interest expense 174,387 74,953 133 -------------------------------- Net interest income 298,840 278,442 7 Provision for credit losses 5,400 8,240 (34) -------------------------------- Net interest income after provision for credit losses 293,440 270,202 9 Non- Deposit charges and service interest fees 81,624 62,847 30 income Other operating income 42,600 32,967 29 Net investment securities (losses) gains (25,541) 637 (4,110) -------------------------------- Total noninterest income 98,683 96,451 2 -------------------------------- Total Revenues 397,523 374,893 6 ---- Non- interest Salaries and benefits 145,426 115,227 26 expense Occupancy 46,101 33,462 38 Furniture and equipment 36,794 30,075 22 Office 15,708 13,103 20 Marketing 10,544 9,268 14 Other 66,320 51,976 28 -------------------------------- Total noninterest expenses 320,893 253,111 27 -------------------------------- Income before income taxes 71,230 113,542 (37) Provision for federal and state income taxes 24,292 38,424 (37) -------------------------------- Net income $46,938 $75,118 (38)% ================================ Net income per common and common equivalent share: Basic $0.27 $0.47 (43)% -------------------------------- Diluted $0.26 $0.44 (41) -------------------------------- Average common and common equivalent shares outstanding: Basic 174,958 158,930 10 -------------------------------- Diluted 182,801 174,889 5 -------------------------------- Cash dividends, common stock $0.12 $0.11 9 % ================================ ------------------------------------------------------------------------- Twelve Months Ended December 31, -------------------------------- (dollars in thousands, except per share amounts) 2005 2004 % Change ------------------------------------------------------------------------- Interest Interest and fees on loans $680,552 $483,186 41 % income Interest on investments 981,420 754,202 30 Other interest 3,272 903 262 -------------------------------- Total interest income 1,665,244 1,238,291 34 -------------------------------- Interest Interest on deposits: expense Demand 252,674 95,253 165 Savings 123,419 46,680 164 Time 98,780 59,808 65 -------------------------------- Total interest on deposits 474,873 201,741 135 Interest on other borrowed money 28,410 6,685 325 Interest on long-term debt 8,379 12,080 (31) -------------------------------- Total interest expense 511,662 220,506 132 -------------------------------- Net interest income 1,153,582 1,017,785 13 Provision for credit losses 19,150 39,238 (51) -------------------------------- Net interest income after provision for credit losses 1,134,432 978,547 16 Non- Deposit charges and service interest fees 282,692 218,126 30 income Other operating income 174,132 154,306 13 Net investment securities (losses) gains (14,030) 2,639 (632) -------------------------------- Total noninterest income 442,794 375,071 18 -------------------------------- Total Revenues 1,596,376 1,392,856 15 ----- Non- interest Salaries and benefits 526,428 431,144 22 expense Occupancy 165,077 121,210 36 Furniture and equipment 126,986 109,242 16 Office 55,833 46,025 21 Marketing 37,261 36,236 3 Other 234,795 194,921 20 -------------------------------- Total noninterest expenses 1,146,380 938,778 22 -------------------------------- Income before income taxes 430,846 414,840 4 Provision for federal and state income taxes 147,907 141,422 5 -------------------------------- Net income $282,939 $273,418 3 % ================================ Net income per common and common equivalent share: Basic $1.70 $1.74 (2)% -------------------------------- Diluted $1.61 $1.63 (1) -------------------------------- Average common and common equivalent shares outstanding: Basic 165,974 156,625 6 -------------------------------- Diluted 179,135 172,603 4 -------------------------------- Cash dividends, common stock $0.45 $0.40 13 % ================================ Commerce Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) -------------------------------------------------------------------------- Three Months Ended (dollars in -------------------------------------------------- thousands, except Dec. 31, Sept. 30, Dec. 31, per share -------------------------------------------------- amounts) 2005 2005 % Change 2004 % Change -------------------------------------------------------------------------- Inter- Interest and fees est on loans $194,617 $178,878 9 % $136,328 43 % income Interest on investments 278,317 243,187 14 216,806 28 Other interest 293 1,774 (83) 261 12 ------------------------------ ------------------ Total interest income 473,227 423,839 12 353,395 34 ------------------------------ ------------------ Inter- Interest on est deposits: expense Demand 84,148 68,100 24 36,042 133 Savings 45,866 35,215 30 16,270 182 Time 31,987 26,114 22 16,691 92 ------------------------------ ------------------ Total interest on deposits 162,001 129,429 25 69,003 135 Interest on other borrowed money 12,386 4,697 164 2,930 323 Interest on long- term debt 0 2,339 (100) 3,020 (100) ------------------------------ ------------------ Total interest expense 174,387 136,465 28 74,953 133 ------------------------------ ------------------ Net interest income 298,840 287,374 4 278,442 7 Provision for credit losses 5,400 3,000 80 8,240 (34) ------------------------------ ------------------ Net interest income after provision for credit losses 293,440 284,374 3 270,202 9 Non- Deposit charges inter- and service fees 81,624 72,302 13 62,847 30 est Other operating income income 42,600 46,763 (9) 32,967 29 Net investment securities (losses) gains (25,541) 5,714 (547) 637 (4,110) ------------------------------ ------------------ Total noninterest income 98,683 124,779 (21) 96,451 2 ------------------------------ ------------------ Total Revenues 397,523 412,153 (4) 374,893 6 ----- ----- Non- Salaries and inter- benefits 145,426 134,149 8 115,227 26 est Occupancy 46,101 41,873 10 33,462 38 expense Furniture and equipment 36,794 32,371 14 30,075 22 Office 15,708 14,871 6 13,103 20 Marketing 10,544 12,460 (15) 9,268 14 Other 66,320 52,858 25 51,976 28 ------------------------------ ------------------ Total noninterest expenses 320,893 288,582 11 253,111 27 ------------------------------ ------------------ Income before income taxes 71,230 120,571 (41) 113,542 (37) Provision for federal and state income taxes 24,292 41,116 (41) 38,424 (37) ------------------------------ ------------------ Net income $46,938 $79,455 (41)% $75,118 (38)% ============================== ================== Net income per common and common equivalent share: Basic $0.27 $0.48 (44)% $0.47 (43)% ------------------------------ ------------------ Diluted $0.26 $0.45 (42) $0.44 (41) ------------------------------ ------------------ Average common and common equivalent shares outstanding: Basic 174,958 165,701 6 158,930 10 ------------------------------ ------------------ Diluted 182,801 180,360 1 174,889 5 ------------------------------ ------------------ Cash dividends, common stock $0.12 $0.11 9 % $0.11 9 % ============================== ================== Return on average assets 0.50 % 0.92 % 1.01 % Return on average equity 8.67 16.62 18.48 Commerce Bancorp, Inc. Selected Consolidated Financial Data (Unaudited) Three Months Ended December 31, ------------------------------------- % 2005 2004 Change ---------- ---------- -------------- (dollars and shares in thousands) Income Statement Data: Net interest income $298,840 $278,442 7 % Provision for credit losses 5,400 8,240 (34) Noninterest income 98,683 96,451 2 Total revenues 397,523 374,893 + 6 ---------- -------------- Noninterest expense 320,893 253,111 27 Net income 46,938 75,118 - (38) ---------- -------------- Per Share Data: Net income - Basic $0.27 $0.47 (43)% Net income - Diluted 0.26 0.44 - (41) ---------- -------------- Book value - Basic Book value - Diluted Revenue per share - Diluted $8.70 $8.57 + 1 % ---------- -------------- Weighted Average Shares Outstanding: Basic 174,958 158,930 Diluted 182,801 174,889 Balance Sheet Data: Total assets Loans (net) Allowance for credit losses Securities available for sale Securities held to maturity Total deposits Core deposits Convertible Trust Capital Securities - Commerce Capital Trust II Stockholders' equity Capital: Stockholders' equity to total assets Risk-based capital ratios: Tier I Total capital Leverage ratio Performance Ratios: Cost of funds 2.01 % 1.10 % Net interest margin 3.52 4.16 Return on average assets 0.50 1.01 Return on average total stockholders' equity 8.67 18.48 Twelve Months Ended December 31, ------------------------------------- % 2005 2004 Change ------------ ------------ --------- (dollars and shares in thousands) Income Statement Data: Net interest income $1,153,582 $1,017,785 13 % Provision for credit losses 19,150 39,238 (51) Noninterest income 442,794 375,071 18 Total revenues 1,596,376 1,392,856 + 15 ------------ --------- Noninterest expense 1,146,380 938,778 22 Net income 282,939 273,418 + 3 ------------ --------- Per Share Data: Net income - Basic $1.70 $1.74 (2)% Net income - Diluted 1.61 1.63 - (1) ------------ --------- Book value - Basic $12.92 $10.42 24 % Book value - Diluted 12.38 10.61 + 17 ------------ --------- Revenue per share - Diluted $8.91 $8.07 + 10 % ------------ --------- Weighted Average Shares Outstanding: Basic 165,974 156,625 Diluted 179,135 172,603 Balance Sheet Data: Total assets $38,466,037 $30,501,645 + 26 % Loans (net) 12,524,988 9,318,991 34 Allowance for credit losses 141,464 135,620 (1) Securities available for sale 9,518,821 8,044,150 18 Securities held to maturity 13,005,364 10,463,658 24 Total deposits 34,726,713 27,658,885 26 ------------ ------------ Core deposits 33,869,540 26,656,530 27 ------------ ------------ Convertible Trust Capital Securities - Commerce Capital Trust II 0 200,000 - Stockholders' equity 2,309,173 1,665,705 + 39 --------- Capital: Stockholders' equity to total assets 6.00 % 5.46 % ------------ Risk-based capital ratios: Tier I 11.81 12.30 Total capital 12.58 13.25 Leverage ratio 6.03 6.19 Performance Ratios: Cost of funds 1.65 % 0.91 % Net interest margin 3.77 4.28 Return on average assets 0.83 1.03 Return on average total stockholders' equity 14.90 18.78 The following summary presents information regarding non-performing loans and assets as of December 31, 2005 and the preceding four quarters (dollar amounts in thousands). Dec. 31 Sept. 30 June 30, March 31, Dec. 31, 2005 2005 2005 2005 2004 -------- -------- -------- -------- -------- Non-accrual loans: Commercial $16,712 $16,926 $20,467 $18,376 $17,874 Consumer 8,834 8,559 8,641 8,723 10,138 Commercial real estate: Construction 1,763 1,882 178 178 - Mortgage 4,329 3,353 3,086 1,290 1,317 -------- -------- -------- -------- -------- Total non-accrual loans 31,638 30,720 32,372 28,567 29,329 -------- -------- -------- -------- -------- Restructured loans: Commercial 3,133 3,230 3,326 3,422 3,518 Consumer - - - - - Commercial real estate: Construction - - - - - Mortgage - - - - - -------- -------- -------- -------- -------- Total restructured loans 3,133 3,230 3,326 3,422 3,518 -------- -------- -------- -------- -------- Total non-performing loans 34,771 33,950 35,698 31,989 32,847 -------- -------- -------- -------- -------- Other real estate 279 310 349 777 626 -------- -------- -------- -------- -------- Total non-performing assets 35,050 34,260 36,047 32,766 33,473 -------- -------- -------- -------- -------- Loans past due 90 days or more and still accruing 248 177 165 233 602 -------- -------- -------- -------- -------- Total non-performing assets and loans past due 90 days or more $35,298 $34,437 $36,212 $32,999 $34,075 ======== ======== ======== ======== ======== Total non-performing loans as a percentage of total period-end loans 0.27% 0.30% 0.33% 0.32% 0.35% Total non-performing assets as a percentage of total period-end assets 0.09% 0.09% 0.11% 0.10% 0.11% -------- Total non-performing assets and loans past due 90 days or more as a percentage of total period-end assets 0.09% 0.09% 0.11% 0.10% 0.11% Allowance for credit losses as a percentage of total non-performing loans 407% 409% 396% 435% 413% Allowance for credit losses as a percentage of total period-end loans 1.12% 1.23% 1.32% 1.40% 1.43% Total non-performing assets and loans past due 90 days or more as a percentage of stockholders' equity and allowance for credit losses 1% 2% 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 ---------------------- ---------------------- 12/31/05 12/31/04 12/31/05 12/31/04 ---------- ---------- ---------- ---------- Balance at beginning of period $138,903 $131,529 $135,620 $112,057 Provisions charged to operating expenses 5,400 8,240 19,150 39,238 ---------- ---------- ---------- ---------- 144,303 139,769 154,770 151,295 Recoveries on loans charged-off: Commercial 626 305 2,546 1,000 Consumer 1,234 487 2,566 1,123 Commercial real estate - - 80 52 ---------- ---------- ---------- ---------- Total recoveries 1,860 792 5,192 2,175 Loans charged-off: Commercial (4,842) (2,767) (13,944) (9,416) Consumer (2,192) (2,106) (5,912) (6,733) Commercial real estate (159) (68) (1,136) (1,701) ---------- ---------- ---------- ---------- Total charge-offs (7,193) (4,941) (20,992) (17,850) ---------- ---------- ---------- ---------- Net charge-offs (5,333) (4,149) (15,800) (15,675) ---------- ---------- ---------- ---------- Allowance for credit loss acquired bank 2,494 2,494 ---------- ---------- Balance at end of period $141,464 $135,620 $141,464 $135,620 ========== ========== ========== ========== Net charge-offs as a percentage of average loans outstanding 0.18 % 0.18 % 0.15 % 0.19 % Net Allowance Additions $2,561 $4,091 $5,844 $23,563 ---------- ---------- ---------- ---------- Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income (unaudited) --------------------------------- 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. --------------------------------- September 2005 --------------------------------- Average Average Balance Interest Rate --------------------------------- (dollars in thousands) Earning Assets -------------------------------------- Investment securities Taxable $19,732,946 $239,481 4.81 % Tax-exempt 397,351 4,366 4.36 Trading 96,344 1,335 5.50 ----------- -------- ------- Total investment securities 20,226,641 245,182 4.81 Federal funds sold 198,260 1,774 3.55 Loans Commercial mortgages 3,865,284 63,300 6.50 Commercial 2,760,625 47,117 6.77 Consumer 4,087,665 62,720 6.09 Tax-exempt 498,211 8,831 7.03 ----------- -------- ------- Total loans 11,211,785 181,968 6.44 ----------- -------- ------- Total earning assets $31,636,686 $428,924 5.38 % =========== Sources of Funds -------------------------------------- Interest-bearing liabilities Savings $8,127,451 $35,215 1.72 % Interest bearing demand 12,638,411 68,100 2.14 Time deposits 2,734,408 18,760 2.72 Public funds 842,894 7,354 3.46 ----------- -------- ------- Total deposits 24,343,164 129,429 2.11 Other borrowed money 541,119 4,697 3.44 Long-term debt 163,043 2,339 5.69 ----------- -------- ------- Total deposits and interest-bearing liabilities 25,047,326 136,465 2.16 Noninterest-bearing funds (net) 6,589,360 ----------- -------- ------- Total sources to fund earning assets $31,636,686 136,465 1.71 =========== -------- ------- Net interest income and margin tax-equivalent basis $292,459 3.67 % ======== ======= Other Balances -------------------------------------- Cash and due from banks $1,306,848 Other assets 1,845,602 Total assets 34,644,396 Total deposits 31,788,250 ---------- Demand deposits (noninterest-bearing) 7,445,086 Other liabilities 240,177 Stockholders' equity 1,911,807 Allowance for loan losses 144,740 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. --------------------------------- December 2004 --------------------------------- Average Average Balance Interest Rate ----------- --------- ------- (dollars in thousands) Earning Assets -------------------------------------- Investment securities Taxable $17,294,817 $211,263 4.86 % Tax-exempt 457,654 5,628 4.89 Trading 180,711 2,898 6.38 ----------- -------- ------- Total investment securities 17,933,182 219,789 4.88 Federal funds sold 54,620 261 1.90 Loans Commercial mortgages 3,357,348 52,747 6.25 Commercial 2,186,627 31,852 5.80 Consumer 3,233,755 47,550 5.85 Tax-exempt 350,414 6,429 7.30 ----------- -------- ------- Total loans 9,128,144 138,578 6.04 ----------- -------- ------- Total earning assets $27,115,946 $358,628 5.26 % =========== Sources of Funds -------------------------------------- Interest-bearing liabilities Savings $6,289,379 $16,270 1.03 % Interest bearing demand 11,348,516 36,042 1.26 Time deposits 2,472,670 12,436 2.00 Public funds 888,209 4,255 1.91 ----------- -------- ------- Total deposits 20,998,774 69,003 1.31 Other borrowed money 545,073 2,930 2.14 Long-term debt 200,000 3,020 6.01 ----------- -------- ------- Total deposits and interest-bearing liabilities 21,743,847 74,953 1.37 Noninterest-bearing funds (net) 5,372,099 ----------- -------- ------- Total sources to fund earning assets $27,115,946 74,953 1.10 =========== -------- ------- Net interest income and margin tax-equivalent basis $283,675 4.16 % ======== ======= Other Balances Cash and due from banks $1,223,722 Other assets 1,522,258 Total assets 29,725,307 Total deposits 27,105,818 ---------- Demand deposits (noninterest-bearing) 6,107,044 Other liabilities 248,762 Stockholders' equity 1,625,654 Allowance for loan losses 136,619 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, ------------------- ------------------- 2005 2004 2005 2004 --------- --------- --------- --------- Basic: Net income applicable to common stock $46,938 $75,118 $282,939 $273,418 ========= ========= ========= ========= Average common shares outstanding 174,958 158,930 165,974 156,625 ========= ========= ========= ========= Net income per common share $0.27 $0.47 $1.70 $1.74 ========= ========= ========= ========= Diluted: Net income applicable to common stock on a diluted basis $46,938 $75,118 $282,939 $273,418 Interest expense on trust preferred securities 0 1,963 5,446 7,852 --------- --------- --------- --------- $46,938 $77,081 $288,385 $281,270 ========= ========= ========= ========= Average common shares outstanding 174,958 158,930 165,974 156,625 Additional shares considered in diluted computation assuming: Exercise of stock options 7,843 8,377 7,843 8,396 Conversion of trust preferred securities 7,582 5,318 7,582 --------- --------- --------- --------- Average common and common equivalent shares outstanding 182,801 174,889 179,135 172,603 ========= ========= ========= ========= Net income per common and common equivalent share $0.26 $0.44 $1.61 $1.63 ========= ========= ========= ========= Restated for the March 2005 stock split PRNewswire -- Jan. 17 First Call Analyst: END FIRST AND FINAL ADD DATASOURCE: Commerce Bancorp, Inc. 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