CommerceBancorp : NEWPORT BEACH
Nature of business: CommerceBank holding company Total employees: 141 In Orange County: 141 Stock listing in The Times: On NASDAQ as “CmcBCA” Ticker symbol: “CBNB” Friday’s stock close: $4.50 One-week change: Up $0.38 Analyst review: “CommerceBank is dealing with some very serious problems and must stabilize first before it can take a new direction. Several years ago it got involved in some speculative lending to developers, which turned out to be misguided and led to major losses. It is better for banks to grow at a slow and steady rate of about 15% to 20% a year. But CommerceBank, like several others during the same time period, was just too gung-ho for awhile. But it has a new president who must get a handle on what it is confronted with and then clean it all up. It will take time, but it has a good base to go on and hopefully it will turn itself around.” --Jerry Findley, banking analyst, The Findley Reports, Anaheim Dollar amounts in millions
1988 1989 1990 1991 1992 Revenue $21.6 $26.7 $33.7 $30.0 $24.3 Profit $2.5 $3.6 $3.6 -$3.0 -$3.6
Corporate outlook: “While it is disappointing to report losses for two consecutive years, these losses reflect continuing recessionary economic conditions in Southern California as well as actions that were taken to address the impact of the economy on the bank’s assets. We believe these actions enhance the possibility that 1993 will be a year of renewed profitability.” --Dale E. Walter, president/CEO RETURN ON INVESTMENT: 5-YEAR SUMMARY
Fiscal year ending Dec. 31 Dec. 31 Dec. 31 Dec. 31 1988 1989 1990 1991 52-week high $16.97 $16.86 $14.25 $10.20 $7.38 52-week low $ 8.88 $8.63 $6.69 $4.53 Book value per share $ 8.95 $8.84 $10.62 $9.33 Price per share $ 8.63 $1.83 $6.69 $4.98 Net earnings (loss) per share $1.23 $1.44 $1.50 N/A Price-to-earnings ratio 7:1 8:1 4:1 N/A Average return on investor equity 13.3% 16.3% 14.1% N/A
Fiscal year ending Dec. 31 1992 52-week high $16.97 52-week low $3.33 Book value per share $8.26 Price per share $3.81 Net earnings (loss) per share N/A Price-to-earnings ratio N/A Average return on investor equity N/A
For more information, write CommerceBancorp: 1201 Dove St., Newport Beach, Calif. 92660. (714) 851-9900 Source: CommerceBancorp; Bloomberg Business News Researched by JANICE L. JONES / Los Angeles Times
