NEW YORK (Reuters) - Commerce Bancorp Inc CBH.N, the large New Jersey bank being acquired by Canada’s Toronto-Dominion Bank (TD.TO), on Friday said fourth-quarter profit fell 47 percent, as credit losses quintupled.
Net income fell to $33.4 million, or 17 cents per share, from $62.8 million, or 32 cents, a year earlier.
Commerce set aside $55 million for credit losses, up from $10.2 million a year earlier and $26 million in the third quarter, hurt by exposure to soured residential real estate, real estate development, and commercial loans.
Analysts on average had expected profit of 26 cents per share, according to Reuters Estimates.
Toronto-Dominion agreed on Oct 2 to pay about $8.5 billion in stock and cash to acquire Commerce, nearly doubling the U.S. presence of Canada’s second-largest bank.
Reporting by Jonathan Stempel; Editing by Gerald E. McCormick