After announcing its deal for Commerce Bancorp Inc. of New Jersey in October, Toronto-Dominion Bank said little about how it planned to fit Commerce's fabled retail banking model into its own U.S. bank unit.
After getting regulatory approval for the deal, which is set to close in the next few weeks, the $436.7 billion-asset Toronto-Dominion disclosed some details on Wednesday.
Executives said they would keep the Commerce brand but change the name to TD Commerce Bank as it combines the $49.3 billion-asset Commerce, of Cherry Hill, with TD Banknorth Inc. of Portland, Maine, creating a company with roughly 1,100 branches.
Commerce's red logo would turn green and white, and the Canadian company plans to launch a multimillion-dollar advertising campaign this year in both companies' markets, from Maine to Florida.
Commerce's tag line, "America's most convenient bank," would be retained to signal to employees and customers that TD Banknorth plans to follow the Commerce strategy, rather than the other way around, executives said.
Edmund Clark, Toronto-Dominion's chief executive, said in a telephone interview Wednesday that "extensive research" has shown customers "don't really care what the name is, they don't care what the color is."
"But the reality is, to convince your employees that you're not going to change" the strategy of convenience Commerce built, "symbols do matter," Mr. Clark said.
Analysts and branding experts said keeping the Commerce name makes sense.
"It's a strong brand and it is an important aspect to maintain" Commerce's success, said Brenda Lum, an analyst with the rating agency DBRS Ltd. But she said a key question for her is whether Toronto-Dominion is "getting everybody" from both outfits "aligned behind the Commerce model."
Ted Selame, the president and CEO of BrandEquity, said, "Banknorth wouldn't work well in New Jersey," for example. But he said TD Banknorth is "a pretty strong brand" in the company's own New England markets.
Bharat Masrani, TD Banknorth's president and CEO, said the combination would allow TD Banknorth, which has assets of about $58 billion, to keep improving organic growth and customer service, among other things.
"With the Commerce acquisition, we can accelerate some of that repositioning," he said.
Many details about the integration of Commerce remain sketchy, but Toronto-Dominion said that it would get rid of Commerce's mascot, a red "C," and that some TD Banknorth branches would install Commerce's free Penny Arcade coin-counting machines. Toronto Dominion is also considering adding coin-counting machines in Canada.
Other elements to be transferred to TD Banknorth branches include expanded hours, with some branches adopting Sunday hours, and the current Commerce branches would continue to hand out free lollipops and dog treats.
Toronto-Dominion would also fulfill Commerce's branching plans. The New Jersey company opened 42 branches last year and planned to add 55 in 2008.
At first Commerce would be managed separately, but Mr. Masrani said a new management team would be announced shortly.
When Dennis DiFlorio, the chairman of Commerce's banking subsidiary, was asked during the same interview whether he would stay, he said: "I wired this place. My head, heart, and soul is in this place, regardless of what role I'll play in this organization. I fully respect my role in the transition and growth."
