Understanding the Commerce Bank and TD Bank Combination

The Commerce Bank and TD Bank combination was announced in 2022. This significant move will create one of the largest banks in the US.

The combined entity will have over 12,000 ATMs and a large network of branches. This will provide customers with easy access to their accounts.

The merger is expected to be completed in 2023. This will give customers more time to adjust to the changes.

The new bank will have a strong presence in the US, with a large customer base. This will help to drive growth and innovation in the banking industry.

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The acquisition of Commerce Bank by TD Bank was a significant event in 2007. TD Bank Financial Group acquired Commerce Bancorp in a 75% stock and 25% cash transaction valued at $8.5 billion.

The deal was announced on October 2, 2007, and it was structured in a way that Commerce shareholders received 0.4142 shares of a TD common share and $10.50 in cash for each common share of Commerce Bancorp Inc.

As a result of the acquisition, Commerce Bank's shareholders benefited from the deal, receiving a total value of $42.00 per share.

The acquisition also had a significant impact on the operations of Commerce Bank, with Vernon Hill, the company's founder, leaving the company and joining Republic Bank instead.

TD Bank expected to take a one-time restructuring charge of approximately $490 million US pre-tax as a result of the acquisition, which would trim its earnings by 28 cents a share in its 2008 fiscal year and 22 cents in 2009.

The acquisition was completed in March or April of the following year, and it had a significant impact on the financials of both companies, with TD shares falling $3.79 to $72.54 on the TSX, and Commerce shares slipping 14 cents to finish at $39.47 US on the NYSE.

Here's a summary of the key financials of Commerce Bank at the time of the acquisition:

Commerce Bank was founded in 1973 by Vernon Hill, a Wharton School of the University of Pennsylvania graduate.

Hill's goal was to bring fast food convenience to banking, and he successfully expanded the company to over 435 locations in just thirty-three years.

The company had a remarkable growth rate, with over sixty-five new stores opening annually, and planned to reach at least 800 stores by 2010.

In the early 2000s, Commerce Bank featured Kelly Ripa and Regis Philbin in their television advertisements.

However, the company faced some challenges, including a scandal in 2004 where two executives were sentenced to prison for approving loans to Philadelphia's treasurer in exchange for city banking business.

This led to a settlement with the bank, which included restrictions on its expansion, and Hill eventually retired as chairman, president, and CEO.

Commerce Bank was founded in 1973 by Vernon Hill, a graduate of the Wharton School of the University of Pennsylvania.

Hill's vision was to bring fast food convenience to banking, and he successfully expanded Commerce from one location to over 435 in just thirty-three years.

The company grew rapidly, with over sixty-five new stores opening annually, and had planned to reach at least 800 stores by 2010.

In the early 2000s, Commerce Bank featured Kelly Ripa and Regis Philbin in its television advertisements.

Two Commerce executives were sentenced to prison in 2004 for approving loans to Philadelphia's treasurer in exchange for city banking business.

The bank also faced an investigation by the federal Office of the Comptroller of Currency and the Federal Reserve, which led to a settlement with restrictions on Commerce's expansion.

Vernon Hill retired as chairman, president, and CEO after the investigation.

Hill then sued Commerce in 2008, claiming he was fired without cause and was owed over $57 million in severance and damages.

A federal court ruled in 2013 that Commerce could not pay Hill because the bank had refused to certify that he had not committed fraud or breached his fiduciary duty.

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Commerce Bank's business model was centered around being a retailer, not a banker. They called their locations stores, not branches, to emphasize this difference.

Their goal was to create a convenient banking experience for customers, with features like seven-day lobby or drive-thru hours in select locations.

Instant creation of ATM cards on the spot at the time of account opening was also a key feature.

No overdraft fees on debit card usage and free "penny arcade" coin counting machines for both customers and non-customers were other perks offered by Commerce Bank.

They even gave out free lollipops and dog biscuits in the lobby and drive-thru!

Foreign ATM fee reimbursement was available to customers who maintained a daily balance of $2,500 through the statement cycle.

Here's a breakdown of some of the features that made Commerce Bank stand out:

Their business model was so successful that it generated a cult following in the areas where they had stores.

The Commerce Bank brand has been used by multiple banks in the United States, leading to brand confusion.

Several banks, including Commerce Bank and Trust Company in Worcester, Massachusetts, have successfully sued other banks to stop them from using similar names.

TD Bank was sued by Commerce Bank and Trust Company to stop it from using the name "TD Commerce Bank" following its acquisition of Commerce Bancorp.

Commerce Bancshares in Kansas City, Missouri, and Commerce National Bank in Columbus, Ohio, both still exist and do business under their respective names.

They are unaffiliated with the now-defunct Commerce Bancorp, which had used the Commerce Bank brand before it ceased operations.

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On March 31, 2008, TD Bank Financial Group acquired 100% of the outstanding shares of Commerce Bancorp, Inc.

The acquisition made Commerce a wholly-owned subsidiary of TDBFG, marking a significant change in its ownership structure.

On May 31, 2008, Commerce Bank N.A. merged with TD Banknorth and Commerce Bank/North to become TD Bank N.A.

This merger led to the creation of TD Bank, America’s Most Convenient Bank, and its operations were reported in the U.S. Personal and Commercial Banking segment for TDBFG.

TD Bank was formed through a series of mergers, starting with the privatization of TD Banknorth in 2007.

TD Banknorth was delisted from the New York Stock Exchange on April 20, 2007, after being acquired by TD Bank Financial Group.

The merged entity, TD Bank N.A., was formed on May 31, 2008, through the combination of TD Banknorth, Commerce Bank N.A., and Commerce Bank/North.

TD Bank N.A. is reported in the U.S. Personal and Commercial Banking segment for TD Bank Group.