BY KHADIJA BATUTA

Cherry Hill, New Jersey-based Commerce Bancorp Inc. and Canada’s Toronto-based TD Bank Financial Group announced yesterday that a definitive agreement has been signed for Commerce to be acquired by TD Bank for $8.5 billion.  The merger will result in the first fully integrated financial services company in North America.

Toronto-Dominion Bank and its subsidiaries, collectively known as TD Bank Financial Group, is Canada’s third largest bank with operations worldwide.  It will increase its holdings to approximately $250 billion in deposits and 2,000 branches in North America with the addition of Commerce Bank’s $44 billion in deposits and about 460 branches and nearly 700 ATM locations throughout the tri-state area, Pennsylvania, Delaware, Washington, D.C., Virginia, Maryland and Southeast Florida.

"Our joining forces with TD Bank Financial Group opens the door to tremendous new growth opportunities," said Dennis DiFlorio, chairman, Commerce Bank N.A. "Combining TD's broad array of sophisticated retail and commercial products with our unparalleled banking convenience is truly exciting. We are delighted for our customers, employees and shareholders."

TD Banknorth chief executive Bharat Masrani maintained the company’s commitment to Commerce’s “customer friendliness” that is hugely responsible for its position as New Jersey’s largest bank and its rise as one of the fastest growing banks in New York City.  After introducing late weekday hours, Sunday service and no-fee checking to Manhattan in 2001, Commerce helped to revolutionize what had been a stilted banking industry in New York City, forcing the marketplace to include these signature features as part of its standard offerings to customers.

The new company also will retain the Commerce Bank name and logo, as well as its banking personnel.  However, analysts are already predicting changes at the new Commerce Bank, including those that may not favor its customers.  Company executives at both firms discount these comments.

“This merger is not about cost cutting; it’s about growth,” stated Greg Braca, Commerce Bank’s New York City market president.

“Commerce gives us scale in the Mid-Atlantic and will allow us to turbocharge our organic growth strategy,” said Mr. Masrani.

TD Bank views the merger as an opportunity that can only strengthen the new company and better serve customers.

“I am tremendously excited that we are unleashing this growth engine with new products and a bigger balance sheet, greater capital and commercial banking capability and far higher financial flexibility,” Mr. Masrani stated.

For more information and details about the acquisition, please visit Commerce Bank at http://www.commerceonline.com/ and TD Bank Financial Group at http://www.td.com/.