Commerce Bank founder Vernon W. Hill II has resigned as its chairman and chief executive officer as a federal investigation continues into the bank”™s real estate and vendor transactions involving Hill, his family members and other parties.
Commerce Bancorp Inc. directors forced Hill from the post he held for 34 years on June 29. The bank at the same time announced it had signed a consent order with the Office of the Comptroller of the Currency in which it agreed to governance changes that prohibit any real estate and vendor transactions with Commerce officials and their relatives.
Hill, 61, also announced his retirement as chairman, president and CEO of Commerce Bancorp Inc., effective July 31.
Bank directors restructured the company”™s leadership team, promoting a team of executives to a newly created office of the chairman.
The federal comptroller”™s office said it was still investigating apparent conflicts of interest and business practices that involve the construction or acquisition of Commerce Bank branch offices.
Commerce Bank stock jumped more than 9 percent on the day of Hill”™s resignation, fueled by speculation that the founder”™s leaving would make it a ripe target for a takeover. Bank executives, however, said there were no immediate plans to sell and the bank would continue building branches.
In a June interview with the Westchester County Business Journal, Hill said he was 27 when he opened his first Commerce Bank in New Jersey in 1973. He partly modeled the bank”™s retail approach and focus on customer satisfaction after the McDonald”™s brand, he said. The business grew from nine employees to about 450 offices and 15,000 employees.
Headquartered in Cherry Hill, N.J., Commerce Bank has some 260 stores in metropolitan New York. Hill said the company would double the number of branches in Westchester County with 20 by the end of 2008.
