Fast-growing Commerce Bank to keep its stride

Fast-growing Commerce Bank plans to keep its stride this year by opening at least 10 new branches in New York City, with a focus outside the heavily-banked Manhattan market.

The pace would match last year's performance, when the Cherry Hill, N.J.-based bank opened 10 branches in the city. It has opened 48 since entering the market in September 2001.

Commerce plans its second Bronx location, on Pelham Parkway. It's also opening three branches in Brooklyn, in Bay Ridge, Sunset Park and Borough Park; three in Queens, in Forest Hills, Kew Gardens and Ridgewood; one in the Tottenville neighborhood of Staten Island; and two in Manhattan, at 50th and Broadway and at Broadway and Warren.

"Manhattan is not completely built out, but we are in a lot of places in Manhattan," Chief Executive Vernon Hill said in an interview, referring to Commerce's 23 Manhattan branches.

Commerce is adding branches faster in the New York area than elsewhere because of the market’s vast size and the speed at which branches in the city become profitable. Commerce defines profitability as having enough deposits to pay for ongoing costs but without offsetting startup expenses, Mr. Hill said. Commerce's New York City branches become profitable in six months versus about a year for its suburban locations, Mr. Hill added.

Companywide, Commerce is planning to add more than 65 branches this year, including 10 to 15 in New Jersey; 20 to 25 in New York and Connecticut; 10 to 15 in the Washington, D.C., area; and 10 to 15 in Florida. The bank currently has about 375 branches.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.