Commerce Bancorp, under fire for its business dealings with insiders, on on Friday said that Chairman and Chief Executive Officer Vernon Hill is leaving the company, and that it has settled two federal regulatory probes.
The Cherry Hill-based company also said the banking unit has agreed to governance changes in a consent order with the Office of the Comptroller of the Currency. The parent also signed a memorandum of understanding with the Federal Reserve Bank of Philadelphia. Commerce had on June 12 said regulators expected it to settle the probes.
Commerce did not in a press statement say who will replace Hill at Commerce Bancorp. A spokesman was not immediately available for comment.
"It's shocking. I'm very surprised that Vernon stepped down," said Mark Fitzgibbon, director of research at Sandler O'Neill & Partners LP. "He had been on the road marketing the company to investors after the bank said it expected to settle things. That makes you wonder whether something came up in the last two weeks that prompted him to step down."