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:

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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.