New
Jersey
|
|
1-12069
|
|
22-2433468
|
(State
or other jurisdiction of incorporation or
organization)
|
|
(Commission
File Number)
|
|
(I.R.S.
Employer Identification
No.)
|
Commerce
Atrium, 1701 Route 70 East, Cherry Hill, NJ
08034-5400
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(Address
of principal executive offices) (Zip
Code)
|
Registrant’s
telephone number, including area code:
|
|
(856)
751-9000
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(1)
|
Q:
|
How
does Commerce Bancorp, Inc. rank in customer
satisfaction?
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A:
|
The
inaugural J.D. Power & Associates Retail Banking Satisfaction Study
ranking 33 of the country’s largest banks on the basis of overall
satisfaction and customer commitment was just released.
|
|
Commerce
Bancorp ranked #1
in overall satisfaction.
|
||
J.D.
Power & Associates believe that more meaningful insights can be
attained when overall satisfaction results are combined with
an additional
measure of customer sentiment - commitment. This approach yields
a more
complete measure of customers’ attachment to their banks. By combining
satisfaction, brand image ratings and customers’ own propensity to be
loyal, a more comprehensive picture emerges. This provides a
greater
degree of banking performance differentiation.
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||
Commerce
Bancorp was also ranked #1
in customer commitment.
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||
(2)
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Q:
|
What
is your deposit growth for the first two months of the first
quarter of
2006 and on a year-to-year basis?
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A:
|
Annual
Deposit Growth:
|
Year
over Year
|
|||||||||||||
2/28/05
|
|
2/28/06
|
|
$
Increase
|
|
%
Increase
|
|||||||
(dollars
in millions)
|
|||||||||||||
Core
Deposits
|
$
|
28,313
|
$
|
34,896
|
$
|
6,583
|
23
|
%
|
|||||
Total
Deposits
|
$
|
29,321
|
$
|
35,978
|
$
|
6,657
|
23
|
%
|
Two
Month
|
||||||||||
12/31/05
|
|
2/28/06
|
|
$
Increase
|
||||||
(dollars
in millions)
|
||||||||||
Core
Deposits
|
$
|
33,870
|
$
|
34,896
|
$
|
1,026
|
||||
Total
Deposits
|
$
|
34,727
|
$
|
35,978
|
$
|
1,251
|
(3)
|
Q:
|
What
has your loan growth been for the first two months of the first
quarter of
2006 and for the trailing 12 months?
|
A:
|
Annual
Loan Growth:
|
Year
over Year
|
|||||||||||||
2/28/05
|
|
2/28/06
|
|
$
Increase
|
|
%
Increase
|
|||||||
(dollars
in millions)
|
|||||||||||||
Net
Loans
|
$
|
9,608
|
$
|
13,002
|
$
|
3,394
|
35
|
%
|
Two
Month
|
||||||||||
12/31/05
|
|
2/28/06
|
|
$
Increase
|
||||||
(dollars
in millions)
|
||||||||||
|
$
|
12,525
|
$
|
13,002
|
$
|
477
|
(4)
|
Q:
|
What
is the status of your Florida acquisition?
|
A:
|
On
December 5, 2005, Commerce Bancorp completed the acquisition
of Palm Beach
County Bank which included 7 offices and approximately $370 million
in
assets.
|
|
This
is the beginning step of a major expansion in Southeast Florida
which will
include at least 150 new stores, including 10 to 15 new stores
to open in
2006 in Palm Beach and Broward Counties.
|
||
The
existing Palm Beach County offices are currently in the process
of being
rebranded as Commerce Bank offices and the systems conversions
have been
completed. On April 15, 2006, the rebranding will be completed.
Also, on
April 15, 2006, we will open a new store in Deerfield Beach,
our first
store in Broward County.
|
||
We
also expect to open new stores in Miami-Dade County in
2006.
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||
(5)
|
Q:
|
What
is the status of the naming rights lawsuit initiated by Commercebank
in
Coral Gables, Florida?
|
A:
|
On
February 21, 2006, a judge in Miami, Florida, dismissed the lawsuit
without prejudice. The parties continue to negotiate an amicable
resolution.
|
|
(6)
|
Q:
|
What
are your store expansion plans for 2006?
|
A:
|
Our
strategic plan is to increase our store base approximately 18%
per
year.
|
|
In
2006, we plan to open 65+ new stores including planned openings
in the
following markets:
|
New
Jersey
|
-
|
10-15
|
|
New
York & Connecticut
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-
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20-25
|
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Pennsylvania
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-
|
10
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|
Washington,
D.C./Baltimore
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-
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10-15
|
|
Florida
|
-
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10-15
|
|
Total
|
-
|
65+
|
We
have approximately 150+ new store sites presently in various
stages of
land use approvals.
|
||
(7)
|
Q:
|
Is
there anything new in the regulatory
environment?
|
A:
|
There
is nothing new to report.
|
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(8)
|
Q:
|
What
are your forecasts for the net interest
margin?
|
A:
|
The
continued flattening of the yield curve over an extended period
of time
has produced a challenging interest rate for our industry and
us. The
convergence of short-term rates and longer-term rates has reduced
the
Company’s net interest margin.
|
|
In
the fourth quarter of 2005 the Company initiated actions to stabilize
or
increase the net interest margin. These actions included the
sale of
certain fixed rate mortgage-backed securities and using the proceeds
to
purchase floating rate securities. The Company continued to purchase
additional floating rate securities in the first two months of
this year.
|
||
|
||
The
Company expects its net interest margin to stabilize or increase
in the
first quarter of 2006, in the 3.50% - 3.55% range.
|
||
(9)
|
Q:
|
What
are your estimated earnings per share for the first quarter of
2006 and
for the full year 2006?
|
A:
|
We
continue to expect our first quarter 2006 earnings to be in the
range of
$0.40 to $0.42.
|
|
The
Company has set a long-term EPS growth target of 18-20%. This
is not to be
construed as guidance for 2006. The attainment of this target
will depend
on numerous factors including deposit and loan growth, the shape
of the
yield curve, positive operating leverage and continued control
of credit
costs.
|
||
(10)
|
Q:
|
When
is the new Commerce University expected to be
completed?
|
A:
|
It
should be completed in August 2006.
|
|
(11)
|
Q:
|
What
is the date, time and location of this year’s Annual Shareholders’
Meeting?
|
A:
|
Date:
|
Tuesday,
May 16, 2006
|
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Time:
|
5:00
p.m.
|
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Location:
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17000
Horizon Way
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Mt.
Laurel, New Jersey
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Commerce
Bancorp, Inc.
|
||||
March 9,
2006
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By:
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/s/
Douglas J. Pauls
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||
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|
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Name:
|
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Douglas
J. Pauls
|
|
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|
|
|
Title:
|
|
Senior
Vice President and Chief Financial Officer
|