TD Bank Financial Group has doubled the size of its U.S. banking platform in one fell swoop by acquiring Commerce Bancorp Inc. of Cherry Hill, N.J., in a US$8.5-billion stock and cash deal.

Canada’s second-largest bank, which already owns TD Banknorth in New England, will become North America’s fifth-largest bank when ranked by deposits,with $312 billion in total deposits.

TD also will now be the seventh-largest bank in North America in terms of branches, with more than 2,100 locations — and roughly half of those branches located in the U.S.

“We are the first North American bank,” says TD’s president and CEO, Ed Clark. “The combination of TD, TD Banknorth and Commerce creates a powerful franchise.”

As of June 30, Commerce had US$48 billion in assets, 2.4 million customers and 460 branches and 700 ATMs in New Jersey, New York, Connecticut, Pennsylvania, Delaware, Virginia, Maryland, Washington, D.C., and Florida.

Bharat Masrani, the CEO of TD Banknorth, will be the head of TD’s overall U.S. operations. Commerce chairman Dennis DeFlorio and president and CEO Bob Falese will continue to run Commerce but will report to Masrani.

Commerce has a customer-friendly retail approach to banking, with services such as longer hours and Sunday openings, that fits well with TD’s strong Canadian retail platform and culture, Clark says. IE