Commerce Gets Slapped: Fool by Numbers

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On Jan. 16, Commerce Bancorp (NYSE: CBH) released full-year earnings for the period ended Dec. 31.

• Commerce continues to feel the yield curve crunch, as net interest margin declined to 3.35% from 3.77% last year and cost of funds increased to 2.59% from 1.65%.
• The decline in net interest margin kept net income growth at 11.4% and caused return on assets and return on equity.
• Deposit growth, arguably the most important metric for Commerce, was 18.9% in total with core deposits increasing 18%. Comparable-store deposit growth was 17%.
• Commerce also announced that it is being investigated by the Office of the Comptroller of the Currency and Board of Governors of the Federal Reserve System.

(Figures in thousands, except per-share data)

Income Statement Highlights

	FY 2006	FY 2005	Change
Total Revenue	$1,831,961	$1,577,226	16.2%
Net Interest Income	$1,274,508	$1,153,582	10.5%
Net Profit	$315,149	$282,939	11.4%
EPS	$1.63	$1.61	1.2%

Get back to basics with a look at the income statement.

Ratio Checkup

	FY 2006	FY 2005	Change*
Net Interest Margin	3.35%	3.77%	(0.42%)
Efficiency Ratio**	72.70%	71.80%	0.90%
Nonperforming Assets / Assets	0.12%	0.09%	0.03%
Return on Average Assets	0.75%	0.83%	(0.08%)
Return on Average Equity	12.26%	14.90%	(2.64%)

*Expressed in percentage points.
**Calculated from available data in press release.

Find out more about bank ratios.

Balance Sheet Highlights

Assets	FY 2006	FY 2005	Change
Investments	$ 26,089,102	$ 22,667,202	15.1%
Net Loans	$ 15,507,737	$ 12,555,079	23.5%

Liabilities	FY 2006	FY 2005	Change
Deposits	$ 41,288,211	$ 34,726,713	18.9%
Total Liabilities	$ 42,447,826	$ 36,156,864	17.4%

Learn about bank assets and bank liabilities.

Related Companies:

• Bank of America (NYSE: BAC)
• Wachovia (NYSE: WB)
• PNC Financial Services Group (NYSE: PNC)
• Citigroup (NYSE: C)
• M&T Bank (NYSE: MTB)

Related Foolishness:

• Commerce and Its Bank "Stores"
• Bank Efficiency: Measure With Care
• A Closer Look at Bank Stocks

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Bank of America is an Income Investor recommendation. At the time of publication, Nathan Parmelee had no financial position in any of the companies mentioned. The Motley Fool has a disclosure policy.