Commerce Bancorp 8-K Results of Operations and Financial Condition

Exhibit 99.2

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited) 

		March 31,			December 31,			Linked Quarter			March 31,
	(dollars in thousands)	2007			2006			% Change			2006			% Change
Assets	Cash and due from banks	$	1,237,008		$	1,207,390			2	%	$	1,185,293			4	%
	Federal funds sold		506,400			9,300			5,345			6,600			7,573
	Cash and cash equivalents		1,743,408			1,216,690			43			1,191,893			46
	Loans held for sale		48,447			52,741			(8	)		37,349			30
	Trading securities		156,241			106,007			47			123,468			27
	Securities available for sale		12,333,705			11,098,113			11			10,245,046			20
	Securities held to maturity		14,811,708			14,884,982			(0	)		13,705,727			8
	Loans:
	Commercial real estate:
	Investor developer		2,562,842			2,625,628			(2	)		2,156,040			19
	Residential construction		344,144			280,476			23			289,236			19
			2,906,986			2,906,104			0			2,445,276			19
	Commercial loans:
	Term		2,432,065			2,392,889			2			1,951,600			25
	Line of credit		1,790,734			1,843,545			(3	)		1,632,310			10
			4,222,799			4,236,434			(0	)		3,583,910			18
	Owner-occupied		3,007,211			2,845,791			6			2,526,458			19
			7,230,010			7,082,225			2			6,110,368			18
	Consumer:
	Mortgages (1-4 family residential)		2,256,222			2,235,247			1			2,119,424			6
	Installment		282,667			287,151			(2	)		230,927			22
	Home equity		3,119,327			2,958,893			5			2,484,333			26
	Credit lines		138,794			137,429			1			90,282			54
			5,797,010			5,618,720			3			4,924,966			18
	Total loans		15,934,006			15,607,049			2			13,480,610			18
	Less allowance for loan losses		155,912			152,053			3			135,745			15
			15,778,094			15,454,996			2			13,344,865			18
	Bank premises and equipment, net		1,808,096			1,753,670			3			1,406,608			29
	Goodwill and other intangible assets		145,923			141,631			3			150,466			(3	)
	Other assets		546,010			562,986			(3	)		486,960			12
	Total assets	$	47,371,632		$	45,271,816			5	%	$	40,692,382			16	%
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	9,321,584		$	8,936,824			4	%	$	8,391,102			11	%
	Interest-bearing		18,682,011			16,853,457			11			14,146,346			32
	Savings		10,580,371			10,459,306			1			10,328,280			2
	Time		5,391,900			5,038,624			7			4,246,379			27
	Total deposits		43,975,866			41,288,211			7			37,112,107			18
	Other borrowed money		122,725			777,404			(84	)		869,753			(86	)
	Other liabilities		391,848			405,103			(3	)		292,225			34
			44,490,439			42,470,718			5			38,274,085			16
Stockholders' Equity	Common stock		192,751			189,738			2			184,046			5
	Capital in excess of par value		1,779,523			1,744,691			2			1,566,673			14
	Retained earnings		1,007,299			958,770			5			805,967			25
	Accumulated other comprehensive loss		(49,364	)		(65,240	)		(24	)		(121,918	)		(60	)
			2,930,209			2,827,959			4			2,434,768			20
	Less treasury stock, at cost		49,016			26,861			82			16,471			198
	Total stockholders' equity		2,881,193			2,801,098			3			2,418,297			19
	Total liabilities and stockholders' equity	$	47,371,632		$	45,271,816			5	%	$	40,692,382			16	%

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited) 

	(dollars in thousands)	March 31,			December 31, 2006									March 31, 2006
		2007			Actual			$ Change			% Change			Actual			$ Change			% Change
Assets	Cash and due from banks	$	1,237,008		$	1,207,390		$	29,618			2	%	$	1,185,293		$	51,715			4	%
	Federal funds sold		506,400			9,300			497,100			5,345			6,600			499,800			7,573
	Cash and cash equivalents		1,743,408			1,216,690			526,718			43			1,191,893			551,515			46
	Loans held for sale		48,447			52,741			(4,294	)		(8	)		37,349			11,098			30
	Trading securities		156,241			106,007			50,234			47			123,468			32,773			27
	Securities available for sale		12,333,705			11,098,113			1,235,592			11			10,245,046			2,088,659			20
	Securities held to maturity		14,811,708			14,884,982			(73,274	)		(0	)		13,705,727			1,105,981			8
	Loans		15,934,006			15,607,049			326,957			2			13,480,610			2,453,396			18
	Less allowance for loan losses		155,912			152,053			3,859			3			135,745			20,167			15
			15,778,094			15,454,996			323,098			2			13,344,865			2,433,229			18
	Reserve %		1.03	%		1.03	%								1.06	%
	Bank premises and equipment, net		1,808,096			1,753,670			54,426			3			1,406,608			401,488			29
	Other assets		691,933			704,617			(12,684	)		(2	)		637,426			54,507			9
	Total assets	$	47,371,632		$	45,271,816		$	2,099,816			5	%	$	40,692,382		$	6,679,250			16	%
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	9,321,584		$	8,936,824		$	384,760			4	%	$	8,391,102		$	930,482			11	%
	Interest-bearing		18,682,011			16,853,457			1,828,554			11			14,146,346			4,535,665			32
	Savings		10,580,371			10,459,306			121,065			1			10,328,280			252,091			2
	Time		5,391,900			5,038,624			353,276			7			4,246,379			1,145,521			27
	Total deposits		43,975,866			41,288,211			2,687,655			7			37,112,107			6,863,759			18
	Core deposits		42,698,696			40,076,568			2,622,128			7			35,912,440			6,786,256			19
	Total other liabilities		514,573			1,182,507			(667,934	)		(56	)		1,161,978			(647,405	)		(56	)
			44,490,439			42,470,718			2,019,721			5			38,274,085			6,216,354			16
			2,881,193			2,801,098			80,095			3			2,418,297			462,896			19
Stockholders' Equity	Total liabilities and stockholders' equity	$	47,371,632		$	45,271,816		$	2,099,816			5	%	$	40,692,382		$	6,679,250			16	%

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited) 

		March 31,			December 31,
	(dollars in thousands)	2007			2006
Assets	Cash and due from banks	$	1,237,008		$	1,207,390
	Federal funds sold		506,400			9,300
	Cash and cash equivalents		1,743,408			1,216,690
	Loans held for sale		48,447			52,741
	Trading securities		156,241			106,007
	Securities available for sale		12,333,705			11,098,113
	Securities held to maturity		14,811,708			14,884,982
	(market value 03/07-$14,587,667; 2006-$14,617,764)
	Loans		15,934,006			15,607,049
	Less allowance for loan losses		155,912			152,053
			15,778,094			15,454,996
	Bank premises and equipment, net		1,808,096			1,753,670
	Goodwill and other intangible assets		145,923			141,631
	Other assets		546,010			562,986
	Total assets	$	47,371,632		$	45,271,816
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	9,321,584		$	8,936,824
	Interest-bearing		18,682,011			16,853,457
	Savings		10,580,371			10,459,306
	Time		5,391,900			5,038,624
	Total deposits		43,975,866			41,288,211
	Other borrowed money		122,725			777,404
	Other liabilities		391,848			405,103
			44,490,439			42,470,718
Stockholders' Equity	Common stock, 192,751,235 shares issued (189,738,423 shares in 2006)		192,751			189,738
	Capital in excess of par value		1,779,523			1,744,691
	Retained earnings		1,007,299			958,770
	Accumulated other comprehensive loss		(49,364	)		(65,240	)
			2,930,209			2,827,959
	Less treasury stock, at cost, 1,874,923 shares (1,231,081 shares in 2006)		49,016			26,861
	Total stockholders' equity		2,881,193			2,801,098
	Total liabilities and stockholders' equity	$	47,371,632		$	45,271,816

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited) 

		Three Months Ended
		March 31,
	(dollars in thousands, except per share amounts)	2007		2006		% Change
Interest	Interest and fees on loans	$	270,770	$	214,974		26	%
income	Interest on investments		355,308		295,076		20
	Other interest		5,733		413		1,288
	Total interest income		631,811		510,463		24
Interest	Interest on deposits:
expense	Demand		163,742		97,940		67
	Savings		72,118		54,004		34
	Time		58,863		36,261		62
	Total interest on deposits		294,723		188,205		57
	Interest on other borrowed money		4,132		14,328		(71	)
	Total interest expense		298,855		202,533		48
	Net interest income		332,956		307,930		8
	Provision for credit losses		10,000		6,501		54
	Net interest income after provision for credit losses		322,956		301,429		7
Noninterest	Deposit charges and service fees		105,206		82,281		28
income	Other operating income		51,366		48,721		5
	Net investment securities gains		2,879		0		0
	Total noninterest income		159,451		131,002		22
	Total Revenues		492,407		438,932		12
Noninterest	Salaries and benefits		167,759		144,825		16
expense	Occupancy		58,072		46,240		26
	Furniture and equipment		42,852		35,960		19
	Office		16,303		15,473		5
	Marketing		10,433		7,811		34
	Other		67,366		65,025		4
	Total noninterest expenses		362,785		315,334		15
	Income before income taxes		119,622		117,097		2
	Provision for federal and state income taxes		41,686		39,800		5
	Net income	$	77,936	$	77,297		1	%
	Net income per common and common equivalent share:
	Basic	$	0.41	$	0.43		(5	)%
	Diluted	$	0.40	$	0.41		(2	)
	Average common and common equivalent shares outstanding:
	Basic		189,278		180,917		5
	Diluted		196,505		189,867		3
	Cash dividends, common stock	$	0.13	$	0.12		8	%

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited) 

		Three Months Ended
		March 31,			December 31,						March 31,
	(dollars in thousands, except per share amounts)	2007			2006			% Change			2006			% Change
Interest	Interest and fees on loans	$	270,770		$	262,743			3	%	$	214,974			26	%
income	Interest on investments		355,308			342,005			4			295,076			20
	Other interest		5,733			4,345			32			413			1,288
	Total interest income		631,811			609,093			4			510,463			24
Interest	Interest on deposits:
expense	Demand		163,742			146,773			12			97,940			67
	Savings		72,118			72,947			(1	)		54,004			34
	Time		58,863			60,134			(2	)		36,261			62
	Total interest on deposits		294,723			279,854			5			188,205			57
	Interest on other borrowed money		4,132			3,568			16			14,328			(71	)
	Total interest expense		298,855			283,422			5			202,533			48
	Net interest income		332,956			325,671			2			307,930			8
	Provision for credit losses		10,000			10,200			(2	)		6,501			54
	Net interest income after provision for credit losses		322,956			315,471			2			301,429			7
Noninterest	Deposit charges and service fees		105,206			102,840			2			82,281			28
income	Other operating income		51,366			61,101			(16	)		48,721			5
	Net investment securities gains		2,879			2,697			7			0			0
	Total noninterest income		159,451			166,638			(4	)		131,002			22
	Total Revenues		492,407			492,309			0			438,932			12
Noninterest	Salaries and benefits		167,759			163,067			3			144,825			16
expense	Occupancy		58,072			55,237			5			46,240			26
	Furniture and equipment		42,852			43,916			(2	)		35,960			19
	Office		16,303			17,150			(5	)		15,473			5
	Marketing		10,433			12,515			(17	)		7,811			34
	Other		67,366			71,289			(6	)		65,025			4
	Total noninterest expenses		362,785			363,174			(0	)		315,334			15
	Income before income taxes		119,622			118,935			1			117,097			2
	Provision for federal and state income taxes		41,686			56,108			(26	)		39,800			5
	Net income	$	77,936		$	62,827			24	%	$	77,297			1	%
	Net income per common and common equivalent share:
	Basic	$	0.41		$	0.33			24	%	$	0.43			(5	)%
	Diluted	$	0.40		$	0.32			25		$	0.41			(2	)
	Average common and common equivalent shares outstanding:
	Basic		189,278			187,704			1			180,917			5
	Diluted		196,505			196,052			0			189,867			3
	Cash dividends, common stock	$	0.13		$	0.13			0	%	$	0.12			8	%
	Return on average assets		0.68	%		0.57	%					0.79	%
	Return on average equity		10.87			9.05						13.00

Commerce Bancorp, Inc. and Subsidiaries

Selected Consolidated Financial Data

(unaudited) 

	Three Months Ended
	March 31,
	2007			2006			% Change
	(dollars and shares in thousands)
Income Statement Data:
Net interest income	$	332,956		$	307,930			8	%
Provision for credit losses		10,000			6,501			54
Noninterest income		159,451			131,002			22
Total revenues		492,407			438,932			12
Noninterest expense		362,785			315,334			15
Net income		77,936			77,297			1
Per Share Data:
Net income - Basic	$	0.41		$	0.43			(5	)%
Net income - Diluted		0.40			0.41			(2	)
Book value - Basic	$	15.09		$	13.21			14	%
Book value - Diluted		14.54			12.59			15
Revenue per share - Diluted	$	10.02		$	9.25			8	%
Weighted Average Shares Outstanding:
Basic		189,278			180,917
Diluted		196,505			189,867
Balance Sheet Data:
Total assets	$	47,371,632		$	40,692,382			16	%
Loans (net)		15,778,094			13,344,865			18
Allowance for credit losses		164,057			142,913			15
Securities available for sale		12,333,705			10,245,046			20
Securities held to maturity		14,811,708			13,705,727			8
Total deposits		43,975,866			37,112,107			18
Core deposits		42,698,696			35,912,440			19
Stockholders' equity		2,881,193			2,418,297			19
Capital:
Stockholders' equity to total assets		6.08	%		5.94	%
Risk-based capital ratios:
Tier I		11.66			11.80
Total capital		12.36			12.53
Leverage ratio		6.09			6.09
Performance Ratios:
Cost of funds		2.87	%		2.28	%
Net interest margin		3.27			3.53
Return on average assets		0.68			0.79
Return on average total stockholders' equity		10.87			13.00

The following summary presents information regarding non-performing loans and assets as of March 31, 2007 and the preceding four quarters (dollar amounts in thousands).

	March 31,			December 31,			September 30,			June 30,			March 31,
	2007			2006			2006			2006			2006
Non-accrual loans:
Commercial	$	20,526		$	33,686		$	33,658		$	34,904		$	16,975
Consumer		15,343			11,820			9,325			8,927			9,285
Commercial real estate:
Construction		8,575			3,531			496			1,708			1,726
Mortgage		2,277			1,565			1,828			2,523			2,096
Total non-accrual loans		46,721			50,602			45,307			48,062			30,082
Restructured loans:
Commercial		-			-			-			2,941			3,037
Total restructured loans		-			-			-			2,941			3,037
Total non-performing loans		46,721			50,602			45,307			51,003			33,119
Other real estate/foreclosed assets		5,000			2,610			2,022			1,369			435
Total non-performing assets		51,721			53,212			47,329			52,372			33,554
Loans past due 90 days or more
and still accruing		658			620			441			583			332
Total non-performing assets and
loans past due 90 days or more	$	52,379		$	53,832		$	47,770		$	52,955		$	33,886
Total non-performing loans as a
percentage of total period-end
loans		0.29	%		0.32	%		0.31	%		0.36	%		0.25	%
Total non-performing assets as a
percentage of total period-end assets		0.11	%		0.12	%		0.11	%		0.12	%		0.08	%
Total non-performing assets and loans
past due 90 days or more as a
percentage of total period-end assets		0.11	%		0.12	%		0.11	%		0.12	%		0.08	%
Allowance for credit losses as a
percentage of total non-performing
loans		351	%		317	%		341	%		291	%		432	%
Allowance for credit losses as a percentage
of total period-end loans		1.03	%		1.03	%		1.05	%		1.04	%		1.06	%
Total non-performing assets and loans
past due 90 days or more as a
percentage of stockholders' equity and
allowance for credit losses		2	%		2	%		2	%		2	%		1	%

The following table presents, for the periods indicated, an analysis of the allowance for credit losses and other related data: (dollar amounts in thousands)

							Year
	Three Months Ended						Ended
	03/31/07			03/31/06			12/31/06
Balance at beginning of period	$	160,269		$	141,464		$	141,464
Provisions charged to operating expenses		10,000			6,501			33,700
		170,269			147,965			175,164
Recoveries on loans charged-off:
Commercial		1,121			533			5,987
Consumer		289			511			1,604
Commercial real estate		235			1			385
Total recoveries		1,645			1,045			7,976
Loans charged-off:
Commercial		(4,294	)		(4,186	)		(14,107	)
Consumer		(2,974	)		(1,712	)		(8,179	)
Commercial real estate		(589	)		(199	)		(585	)
Total charge-offs		(7,857	)		(6,097	)		(22,871	)
Net charge-offs		(6,212	)		(5,052	)		(14,895	)
Balance at end of period	$	164,057		$	142,913		$	160,269
Net charge-offs as a percentage of
average loans outstanding		0.16	%		0.16	%		0.11	%
Net Allowance Additions	$	3,788		$	1,449		$	18,805

Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income

(unaudited)

	March 2007							December 2006							March 2006
	Average				Average			Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$	25,237,398	$	348,630		5.60	%	$	24,610,625	$	335,665		5.41	%	$	22,325,450	$	289,739		5.26	%
Tax-exempt		611,725		8,984		5.96			586,903		8,596		5.81			549,794		6,956		5.13
Trading		96,838		1,290		5.40			103,468		1,157		4.44			108,670		1,255		4.69
Total investment securities		25,945,961		358,904		5.61			25,300,996		345,418		5.42			22,983,914		297,950		5.26
Federal funds sold		436,031		5,733		5.33			323,652		4,345		5.33			36,594		413		4.58
Loans
Commercial mortgages		5,447,516		95,522		7.11			5,192,406		92,553		7.07			4,491,557		76,193		6.88
Commercial		4,024,615		77,457		7.81			3,764,466		74,777		7.88			3,221,996		59,125		7.44
Consumer		5,711,130		90,500		6.43			5,533,248		88,846		6.37			4,817,562		74,127		6.24
Tax-exempt		599,202		11,217		7.59			538,746		10,104		7.44			492,283		8,506		7.01
Total loans		15,782,463		274,696		7.06			15,028,866		266,280		7.03			13,023,398		217,951		6.79
Total earning assets	$	42,164,455	$	639,333		6.14	%	$	40,653,514	$	616,043		6.01	%	$	36,043,906	$	516,314		5.81	%
Sources of Funds
Interest-bearing liabilities
Savings	$	10,448,840	$	72,118		2.80	%	$	10,643,889	$	72,947		2.72	%	$	9,712,691	$	54,004		2.25	%
Interest bearing demand		17,886,395		163,742		3.71			16,280,718		146,773		3.58			13,584,371		97,940		2.92
Time deposits		3,999,233		43,284		4.39			3,723,163		39,578		4.22			3,131,039		25,850		3.35
Public funds		1,197,869		15,579		5.27			1,525,472		20,556		5.35			952,132		10,411		4.43
Total deposits		33,532,337		294,723		3.56			32,173,242		279,854		3.45			27,380,233		188,205		2.79
Other borrowed money		308,980		4,132		5.42			267,992		3,568		5.28			1,316,437		14,328		4.41
Total deposits and interest-bearing liabilities		33,841,317		298,855		3.58			32,441,234		283,422		3.47			28,696,670		202,533		2.86
Noninterest-bearing funds (net)		8,323,138							8,212,280							7,347,236
Total sources to fund earning assets	$	42,164,455		298,855		2.87		$	40,653,514		283,422		2.76		$	36,043,906		202,533		2.28
Net interest income and
margin tax-equivalent basis			$	340,478		3.27	%			$	332,621		3.25	%			$	313,781		3.53	%
Other Balances
Cash and due from banks	$	1,182,810						$	1,174,831						$	1,286,259
Other assets		2,607,508							2,451,297							2,094,400
Total assets		45,798,648							44,127,353							39,288,182
Total deposits		42,232,192							40,704,685							35,295,835
Demand deposits (noninterest-bearing)		8,699,855							8,531,443							7,915,602
Other liabilities		390,627							379,025							298,278
Stockholders' equity		2,866,849							2,775,651							2,377,632
Allowance for loan losses		156,125							152,289							136,383
Notes -Weighted average yields on tax-exempt obligations have been computed on a tax-equivalent basis assuming a federal tax rate of 35%.
-Non-accrual loans have been included in the average loan balance.
-Consumer loans include loans held for sale.

Commerce Bancorp, Inc. and Subsidiaries

Computation of Net Income Per Share

(dollars in thousands, except per share amounts)

	Three Months Ended
	March 31,
	2007		2006
Basic:
Net income applicable to common stock	$	77,936	$	77,297
Average common shares outstanding		189,278		180,917
Net income per common share	$	0.41	$	0.43
Diluted:
Net income applicable to common stock	$	77,936	$	77,297
Average common shares outstanding		189,278		180,917
Additional shares considered in diluted
computation assuming:
Exercise of stock options		7,227		8,950
Average common and common equivalent
shares outstanding		196,505		189,867
Net income per common and common
equivalent share	$	0.40	$	0.41