CommerceBank to Boost Loan Loss Reserve by $5.5 Million

Newport Beach-based CommerceBancorp reported Monday that its wholly owned subsidiary, CommerceBank, will add $5.5 million to its loan loss reserve for the fourth fiscal quarter ended Dec. 31, 1991. This will raise the bank’s allowance for loan losses to $7 million, which represents about 3% of the bank’s outstanding loans.

Based on unaudited financial information, the bank predicts a $2.9-million loss for the 1991 fiscal year--its first loss since its founding 12 years ago.

CommerceBancorp President Raymond E. Dellerba said the loss is largely due to a “protracted recession” and the effects of a weak real estate market on borrowers.