Tax Accounting Taxes Commerce Bancorp

May restate results for 2004, 2005, and 2006 owing to its provision for federal and state income taxes.
Stephen TaubMarch 5, 2007

Commerce Bancorp will delay the filing of its 2006 annual report by 15 days so it can complete its analysis of unresolved tax accounting matters.

The holding company for Commerce Bank N.A. and Commerce Bank/North disclosed that it may need to restate results for 2004 and 2005 because of its provision for federal and state income taxes. According to the bank, a restatement would reduce diluted earnings per share by 5 cents, or 3 percent, in 2004, and by 6 cents, or 4 percent, in 2005.

Commerce also noted that as it had previously disclosed, it may revise its 2006 unaudited results, reducing earnings per share by 7 cents, or 4 percent.

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The company added that any restatement would not impact reported assets, deposits, or operating revenues and expenses.

In January, Commerce disclosed in a regulatory filing that it under investigation by the Office of the Comptroller of the Currency, in conjunction with the Board of Governors of the Federal Reserve System. The probe is related to transactions with its officers, directors, and related parties, including transactions involving bank premises.

Commerce stated at the time that it was cooperating fully.

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