Commerce Bancorp was a Cherry Hill, New Jersey–based bank created in 1973. In 2007, it was purchased by Toronto-Dominion Bank to form TD Bank, N.A. and merged TD Banknorth into TD Bank; all of its banks and branches were given the TD Bank logo.
History
The company was founded in 1973 by fast-food restaurant franchise owner Vernon Hill, a graduate of the Wharton School of the University of Pennsylvania. Hill sought to bring fast food convenience to banking and expanded Commerce from one location to over 435 in thirty-three years. With growth of over sixty-five new stores opening annually, the company had planned to reach at least 800 stores by 2010. During the early-mid 2000s, television advertisements for Commerce Bank featured Kelly Ripa and Regis Philbin.
Business model
Commerce's philosophy was that they are retailers and not bankers, and went so far as to call their various locations stores, and not branches.
Features that Commerce offered its customers include:
- 7 day lobby or drive-thru hours, even in Center City Philadelphia and Manhattan, with the exception of branches in Paramus, NJ (Bergen County law requires most businesses to be closed on Sunday)
- Instant creation of ATM cards on the spot at the time of account opening
- No overdraft fees on debit card usage(this has changed under TD's ownership)
- Free "Penny Arcade" coin counting machines for both customers and non-customers
- No-Fee Visa Gift Cards for customers
- Lollipops and dog biscuits in the lobby and drive-thru
- Foreign ATM fee reimbursement (if you maintain a daily balance of $2,500 through the statement cycle)
- "No Stupid Fees, No Stupid Hours"
Commerce Bank's business model generated what some call a cult following in the geographic areas where they had stores. Commerce offers its customers merchandising giveaways such as coffee mugs, pens and pencils. In 2006 alone, they gave out 28 million free pens.
It was called Mc-Bank because Vernon Hill used his knowledge of the fast food chains he owned and applied it to the banking industry.
This model was described in the case of study HBS 9-603-080 from Harvard Business School, published at 2002.
Availability of funds
- Generally, deposits made at a Commerce store before 6 pm (8 pm in Florida store locations) will be available on the next business day.
- Cash deposits are made available immediately.
- The bank reserves their right (under Federal Regulation CC) to hold checks for longer periods of time under certain circumstances, including but not limited to:
- New Accounts - During the new account's first 30 days, check deposits may by held up to seven business days. This applies to New Commerce Customers only.
- Large Checks - Checks over $5,000 or a check deposit greater than the average daily deposit may be held up to seven business days.
- Re-deposited Checks - Checks that have been previously returned may be held up to seven business days.
- Repeated Overdrafts - Customers that have overdrawn their account an excessive amount of times (6 or more overdrafts in a 6 month span) may have a seven business day hold placed on all check deposits.
- Reasonable Cause - If there is reason to believe a check is uncollectable (stale-dated, possible check-kiting, the check is in the process of being returned), the check may be held up to seven business days. [1]
WOW! Awards
Every year since 1998, Commerce Bank has had an employee appreciation event called the WOW! Awards. 2006's WOW! Awards were at Radio City Music Hall for the third time (2006, 2005, 2003). Past venues have been Boardwalk Hall in Atlantic City 2004, and the E-Center in Camden, NJ in 2001 and 2002. In 2007, Commerce Bank had regional WOW! Awards shows due to the larger footprint of the company.
Mascots
As with many companies, Commerce Bank had an official Mascot: Mr.C. Mr.C is the Commerce Bank logo, a red c, with black arms and black legs. He always had a huge smile and large bushy eyebrows.
Buzz Bee was also a mascot for the bank. However, Buzz was used primarily as an internal mascot for the "WOW! members" (i.e. the employees).
Both of these "mascots" were eliminated due to the TD acquisition.[citation needed]
Expansion
While most of Commerce Bank's growth was organic, there have been five large acquisitions since the bank's founding:
- early 1990s - Four branch offices were purchased from Long Island-based Anchor Savings Bank: Cherry Hill Mall, Bellmawr, Woodcrest and West Deptford.
- January 21, 1997 - Independence Bancorp, Inc. became Commerce Bank/North.
- August 13, 1998 - Community First Banking Company and its subsidiary Tinton Falls State Bank became Commerce Bank/Shore.
- September 17, 1998 - Prestige Financial Corp. and it's subsidiary, Prestige State Bank became Commerce Bank/Central
- July 25, 2005 - Palm Beach County Bank established Commerce Bank in Southeast Florida.
Commerce Bank Harrisburg
Commerce Bank had an independent franchise [1] in the Harrisburg, Pennsylvania region. Pennsylvania Commerce Bancorp, Inc. [2] has 33 stores in Berks, Cumberland, Dauphin, Lancaster, Lebanon and York counties [3]. The headquarters for Commerce Bank Harrisburg is in Swatara Township, just outside Harrisburg. Commerce Bancorp shared a call-center with Pennsylvania Commerce Bancorp near Harrisburg, PA. Commerce Bancorp owned approximately 11% of the stock of Pennsylvania Commerce Bancorp.
Commerce Bank confusion
A former Commerce Bank in
Tuckerton, New Jersey that was rebranded as TD Bank in 2007. Almost every Commerce Bank was built in this style and is recognizable even after the merger.
There are multiple banks running under the name Commerce Bank or some other similar name such as Commerce Bank and Trust Company. This also caused TD to discontinue plans to use the name TD Commerce Bank for the new bank. Due to this confusion, Commerce Bancorp should not be confused with Kansas City, Missouri based Commerce Bancshares, a $15 billion commercial bank. It also should not be confused with Commerce National Bank, a $3 billion business bank headquartered in Columbus, Ohio. Commerce National Bank is the 3rd largest bank bearing the name Commerce behind Commerce Bancorp and Commerce Bancshares.
TD Bank acquisition
On October 2, 2007, TD Bank Financial Group (TDBFG) and Commerce Bancorp, Inc. announced that they had signed a definitive deal agreement for TDBFG to acquire Commerce Bank in a 75% stock and 25% cash transaction valued at US$8.5 billion.
Under the agreement, Commerce shareholders received 0.4142 shares of a TD common share and US$10.50 in cash in exchange for each common share of Commerce Bancorp Inc. The consideration was negotiated on the basis of US$42.00 per share value for Commerce Bank. The transaction value based on the October 1, 2007 closing price of TD common shares is $42.37.
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