Commerce Bancorp 8-K Receives Branch Approval from Occ

Exhibit 99.2

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited) 

 

		June 30,			March 31,			Linked Quarter			June 30,
	(dollars in thousands)	2007			2007			% Change			2006			% Change
Assets	Cash and due from banks	$	1,405,696		$	1,237,008			14	%	$	1,409,537			(0	)%
	Federal funds sold		9,700			506,400			(98	)		56,600			(83	)
	Cash and cash equivalents		1,415,396			1,743,408			(19	)		1,466,137			(3	)
	Loans held for sale		31,618			48,447			(35	)		43,825			(28	)
	Trading securities		77,472			156,241			(50	)		91,148			(15	)
	Securities available for sale		13,221,171			12,333,705			7			11,074,128			19
	Securities held to maturity		14,585,714			14,811,708			(2	)		14,415,921			1
	Loans:
	Commercial real estate:
	Investor developer		2,376,510			2,562,842			(7	)		2,329,475			2
	Residential construction		497,202			344,144			44			320,749			55
			2,873,712			2,906,986			(1	)		2,650,224			8
	Commercial loans:
	Term		2,627,535			2,432,065			8			2,028,761			30
	Line of credit		1,830,054			1,790,734			2			1,702,539			7
			4,457,589			4,222,799			6			3,731,300			19
	Owner-occupied		3,000,421			3,007,211			(0	)		2,613,555			15
			7,458,010			7,230,010			3			6,344,855			18
	Consumer:
	Mortgages (1-4 family residential)		2,299,516			2,256,222			2			2,198,114			5
	Installment		283,717			282,667			0			265,639			7
	Home equity		3,299,510			3,119,327			6			2,714,150			22
	Credit lines		153,114			138,794			10			100,544			52
			6,035,857			5,797,010			4			5,278,447			14
	Total loans		16,367,579			15,934,006			3			14,273,526			15
	Less allowance for loan losses		160,694			155,912			3			140,746			14
			16,206,885			15,778,094			3			14,132,780			15
	Bank premises and equipment, net		1,882,287			1,801,998			4			1,494,333			26
	Goodwill and other intangible assets		145,335			145,923			(0	)		148,846			(2	)
	Other assets		609,647			552,108			10			569,181			7
	Total assets	$	48,175,525		$	47,371,632			2	%	$	43,436,299			11	%
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	9,376,914		$	9,321,584			1	%	$	8,653,739			8	%
	Interest-bearing		18,859,695			18,682,011			1			14,269,002			32
	Savings		10,524,414			10,580,371			(1	)		10,765,985			(2	)
	Time		5,627,242			5,391,900			4			4,361,036			29
	Total deposits		44,388,265			43,975,866			1			38,049,762			17
	Other borrowed money		545,310			122,725			344			2,568,445			(79	)
	Other liabilities		349,226			391,848			(11	)		291,732			20
			45,282,801			44,490,439			2			40,909,939			11
Stockholders'	Common stock		194,119			192,751			1			186,662			4
Equity	Capital in excess of par value		1,812,341			1,779,523			2			1,646,984			10
	Retained earnings		1,059,127			1,007,299			5			863,229			23
	Accumulated other comprehensive (loss) income		(123,847	)		(49,364	)		151			(154,043	)		(20	)
			2,941,740			2,930,209			0			2,542,832			16
	Less treasury stock, at cost		49,016			49,016			0			16,472			198
	Total stockholders' equity		2,892,724			2,881,193			0			2,526,360			15
	Total liabilities and stockholders' equity	$	48,175,525		$	47,371,632			2	%	$	43,436,299			11	%

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited) 

(dollars in thousands)	June 30,			March 31, 2007									June 30, 2006
	2007			Actual			$ Change			% Change			Actual			$ Change			% Change
Assets
Cash and due from banks	$	1,405,696		$	1,237,008		$	168,688			14	%	$	1,409,537		$	(3,841	)		(0	)%
Federal funds sold		9,700			506,400			(496,700	)		(98	)		56,600			(46,900	)		(83	)
Cash and cash equivalents		1,415,396			1,743,408			(328,012	)		(19	)		1,466,137			(50,741	)		(3	)
Loans held for sale		31,618			48,447			(16,829	)		(35	)		43,825			(12,207	)		(28	)
Trading securities		77,472			156,241			(78,769	)		(50	)		91,148			(13,676	)		(15	)
Securities available for sale		13,221,171			12,333,705			887,466			7			11,074,128			2,147,043			19
Securities held to maturity		14,585,714			14,811,708			(225,994	)		(2	)		14,415,921			169,793			1
Loans		16,367,579			15,934,006			433,573			3			14,273,526			2,094,053			15
Less allowance for loan losses		160,694			155,912			4,782			3			140,746			19,948			14
		16,206,885			15,778,094			428,791			3			14,132,780			2,074,105			15
Reserve %		1.04	%		1.03	%								1.04	%
Bank premises and equipment, net		1,882,287			1,801,998			80,289			4			1,494,333			387,954			26
Other assets		754,982			698,031			56,951			8			718,027			36,955			5
Total assets	$	48,175,525		$	47,371,632		$	803,893			2	%	$	43,436,299		$	4,739,226			11	%
Liabilities
Deposits:
Demand:
Noninterest-bearing	$	9,376,914		$	9,321,584		$	55,330			1	%	$	8,653,739		$	723,175			8	%
Interest-bearing		18,859,695			18,682,011			177,684			1			14,269,002			4,590,693			32
Savings		10,524,414			10,580,371			(55,957	)		(1	)		10,765,985			(241,571	)		(2	)
Time		5,627,242			5,391,900			235,342			4			4,361,036			1,266,206			29
Total deposits		44,388,265			43,975,866			412,399			1			38,049,762			6,338,503			17
Core deposits		43,013,805			42,698,696			315,109			1			36,783,874			6,229,931			17
Total other liabilities		894,536			514,573			379,963			74			2,860,177			(1,965,641	)		(69	)
		45,282,801			44,490,439			792,362			2			40,909,939			4,372,862			11
Stockholders' Equity		2,892,724			2,881,193			11,531			0			2,526,360			366,364			15
Total liabilities and stockholders' equity	$	48,175,525		$	47,371,632		$	803,893			2	%	$	43,436,299		$	4,739,226			11	%

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited) 

		June 30,			December 31,
	(dollars in thousands)	2007			2006
Assets	Cash and due from banks	$	1,405,696		$	1,207,390
	Federal funds sold		9,700			9,300
	Cash and cash equivalents		1,415,396			1,216,690
	Loans held for sale		31,618			52,741
	Trading securities		77,472			106,007
	Securities available for sale		13,221,171			11,098,113
	Securities held to maturity		14,585,714			14,884,982
	(market value 06/07-$14,171,224; 2006-$14,617,764)
	Loans		16,367,579			15,607,049
	Less allowance for loan losses		160,694			152,053
			16,206,885			15,454,996
	Bank premises and equipment, net		1,882,287			1,753,670
	Goodwill and other intangible assets		145,335			141,631
	Other assets		609,647			562,986
	Total assets	$	48,175,525		$	45,271,816
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	9,376,914		$	8,936,824
	Interest-bearing		18,859,695			16,853,457
	Savings		10,524,414			10,459,306
	Time		5,627,242			5,038,624
	Total deposits		44,388,265			41,288,211
	Other borrowed money		545,310			777,404
	Other liabilities		349,226			405,103
			45,282,801			42,470,718
Stockholders'	Common stock, 194,119,379 shares issued (189,738,423 shares in 2006)		194,119			189,738
Equity	Capital in excess of par value		1,812,341			1,744,691
	Retained earnings		1,059,127			958,770
	Accumulated other comprehensive (loss) income		(123,847	)		(65,240	)
			2,941,740			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		2,892,724			2,801,098
	Total liabilities and stockholders' equity	$	48,175,525		$	45,271,816

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited) 

		Three Months Ended							Six Months Ended
		June 30,							June 30,
	(dollars in thousands, except per share amounts)	2007		2006		% Change			2007		2006		% Change
Interest	Interest and fees on loans	$	278,863	$	236,890		18	%	$	549,633	$	451,864		22	%
income	Interest on investments		376,245		325,022		16			731,553		620,098		18
	Other interest		2,000		250		700			7,733		663		1,066
	Total interest income		657,108		562,162		17			1,288,919		1,072,625		20
Interest	Interest on deposits:
expense	Demand		177,289		118,085		50			341,031		216,025		58
	Savings		72,954		64,157		14			145,072		118,161		23
	Time		60,521		41,174		47			119,384		77,435		54
	Total interest on deposits		310,764		223,416		39			605,487		411,621		47
	Interest on other borrowed money		3,519		19,809		(82	)		7,651		34,137		(78	)
	Total interest expense		314,283		243,225		29			613,138		445,758		38
	Net interest income		342,825		318,937		7			675,781		626,867		8
	Provision for credit losses		12,550		7,500		67			22,550		14,001		61
	Net interest income after provision for credit losses		330,275		311,437		6			653,231		612,866		7
Noninterest	Deposit charges and service fees		116,913		91,653		28			222,119		173,934		28
income	Other operating income		59,659		51,303		16			111,025		100,024		11
	Net investment securities (losses) gains		0		0		0			2,879		0		0
	Total noninterest income		176,572		142,956		24			336,023		273,958		23
	Total Revenues		519,397		461,893		12			1,011,804		900,825		12
Noninterest	Salaries and benefits		171,494		150,630		14			339,253		295,455		15
expense	Occupancy		58,626		45,487		29			116,698		91,727		27
	Furniture and equipment		45,271		39,656		14			88,123		75,616		17
	Office		16,808		14,398		17			33,111		29,871		11
	Marketing		10,694		11,699		(9	)		21,127		19,510		8
	Other		85,002		71,914		18			152,368		136,939		11
	Total noninterest expenses		387,895		333,784		16			750,680		649,118		16
	Income before income taxes		118,952		120,609		(1	)		238,574		237,706		0
	Provision for federal and state income taxes		42,049		41,089		2			83,735		80,889		4
	Net income	$	76,903	$	79,520		(3	)%	$	154,839	$	156,817		(1	)%
	Net income per common and common equivalent share:
	Basic	$	0.40	$	0.43		(7	)%	$	0.81	$	0.86		(6	)%
	Diluted	$	0.39	$	0.41		(5	)	$	0.79	$	0.82		(4	)
	Average common and common equivalent shares outstanding:
	Basic		191,552		184,437		4			190,421		182,686		4
	Diluted		197,462		193,842		2			196,987		191,914		3
	Cash dividends, common stock	$	0.13	$	0.12		8	%	$	0.26	$	0.24		8	%

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited) 

		Three Months Ended
		June 30,			March 31,						June 30,
	(dollars in thousands, except per share amounts)	2007			2007			% Change			2006			% Change
Interest	Interest and fees on loans	$	278,863		$	270,770			3	%	$	236,890			18	%
income	Interest on investments		376,245			355,308			6			325,022			16
	Other interest		2,000			5,733			(65	)		250			700
	Total interest income		657,108			631,811			4			562,162			17
Interest	Interest on deposits:
expense	Demand		177,289			163,742			8			118,085			50
	Savings		72,954			72,118			1			64,157			14
	Time		60,521			58,863			3			41,174			47
	Total interest on deposits		310,764			294,723			5			223,416			39
	Interest on other borrowed money		3,519			4,132			(15	)		19,809			(82	)
	Total interest expense		314,283			298,855			5			243,225			29
	Net interest income		342,825			332,956			3			318,937			7
	Provision for credit losses		12,550			10,000			26			7,500			67
	Net interest income after provision for credit losses		330,275			322,956			2			311,437			6
Noninterest	Deposit charges and service fees		116,913			105,206			11			91,653			28
income	Other operating income		59,659			51,366			16			51,303			16
	Net investment securities (losses) gains		0			2,879			(100	)		0			0
	Total noninterest income		176,572			159,451			11			142,956			24
	Total Revenues		519,397			492,407			5			461,893			12
Noninterest	Salaries and benefits		171,494			167,759			2			150,630			14
expense	Occupancy		58,626			58,072			1			45,487			29
	Furniture and equipment		45,271			42,852			6			39,656			14
	Office		16,808			16,303			3			14,398			17
	Marketing		10,694			10,433			3			11,699			(9	)
	Other		85,002			67,366			26			71,914			18
	Total noninterest expenses		387,895			362,785			7			333,784			16
	Income before income taxes		118,952			119,622			(1	)		120,609			(1	)
	Provision for federal and state income taxes		42,049			41,686			1			41,089			2
	Net income	$	76,903		$	77,936			(1	)%	$	79,520			(3	)%
	Net income per common and common equivalent share:
	Basic	$	0.40		$	0.41			(2	)%	$	0.43			(7	)%
	Diluted	$	0.39		$	0.40			(3	)	$	0.41			(5	)
	Average common and common equivalent shares outstanding:
	Basic		191,552			189,278			1			184,437			4
	Diluted		197,462			196,505			0			193,842			2
	Cash dividends, common stock	$	0.13		$	0.13			0	%	$	0.12			8	%
	Return on average assets		0.65	%		0.68	%					0.76	%
	Return on average equity		10.57			10.87						12.83

Commerce Bancorp, Inc. and Subsidiaries

Selected Consolidated Financial Data

(unaudited) 

			Three Months Ended						Six Months Ended
			June 30,						June 30,
							%						%
			2007		2006		Change		2007		2006		Change
			(dollars and shares in thousands)						(dollars and shares in thousands)
Income Statement Data:
	Net interest income		$342,825		$318,937		7	%	$675,781		$626,867		8	%
	Provision for credit losses		12,550		7,500		67		22,550		14,001		61
	Noninterest income		176,572		142,956		24		336,023		273,958		23
	Total revenues		519,397		461,893		12		1,011,804		900,825		12
	Noninterest expense		387,895		333,784		16		750,680		649,118		16
	Net income		76,903		79,520		(3	)	154,839		156,817		(1	)
Per Share Data:
	Net income - Basic		$0.40		$0.43		(7	)%	$0.81		$0.86		(6	)%
	Net income - Diluted		0.39		0.41		(5	)	0.79		0.82		(4	)
	Book value - Basic								$15.05		$13.60		11	%
	Book value - Diluted								14.55		12.96		12
	Revenue per share - Diluted		$10.52		$9.53		10	%	$10.27		$9.39		9	%
	Weighted Average Shares Outstanding:
		Basic	191,552		184,437				190,421		182,686
		Diluted	197,462		193,842				196,987		191,914
Balance Sheet Data:
	Total assets								$48,175,525		$43,436,299		11	%
	Loans (net)								16,206,885		14,132,780		15
	Allowance for credit losses								169,459		148,383		14
	Securities available for sale								13,221,171		11,074,128		19
	Securities held to maturity								14,585,714		14,415,921		1
	Total deposits								44,388,265		38,049,762		17
	Core deposits								43,013,805		36,783,874		17
	Stockholders' equity								2,892,724		2,526,360		15
Capital:
	Stockholders' equity to total assets								6.00	%	5.82	%
	Risk-based capital ratios:
		Tier I							11.72		11.81
		Total capital							12.43		12.53
	Leverage ratio								6.06		6.03
Performance Ratios:
	Cost of funds		2.89	%	2.54	%			2.88	%	2.41	%
	Net interest margin		3.22		3.39				3.25		3.46
	Return on average assets		0.65		0.76				0.66		0.77
	Return on average total stockholders' equity		10.57		12.83				10.72		12.92

The following summary presents information regarding non-performing loans and assets as of June 30, 2007 and the preceding

four quarters (dollar amounts in thousands).        

				June 30,	March 31,	December 31,	September 30,	June 30,
				2007	2007	2006	2006	2006
Non-accrual loans:
	Commercial			$22,381	$20,526	$33,686	$33,658	$34,904
	Consumer			15,462	15,343	11,820	9,325	8,927
	Commercial real estate:
		Construction		8,509	8,575	3,531	496	1,708
		Mortgage		4,328	2,277	1,565	1,828	2,523
			Total non-accrual loans	50,680	46,721	50,602	45,307	48,062
Restructured loans:
	Commercial			-	-	-	-	2,941
	Consumer			-	-	-	-	-
	Commercial real estate:
		Construction		-	-	-	-	-
		Mortgage		-	-	-	-	-
			Total restructured loans	-	-	-	-	2,941
	Total non-performing loans			50,680	46,721	50,602	45,307	51,003
Other real estate/foreclosed assets				5,235	5,000	2,610	2,022	1,369
Total non-performing assets				55,915	51,721	53,212	47,329	52,372
Loans past due 90 days or more
	and still accruing			965	658	620	441	583
Total non-performing assets and
	loans past due 90 days or more			$56,880	$52,379	$53,832	$47,770	$52,955
Total non-performing loans as a
	percentage of total period-end
	loans			0.31%	0.29%	0.32%	0.31%	0.36%
Total non-performing assets as a
	percentage of total period-end assets			0.12%	0.11%	0.12%	0.11%	0.12%
Total non-performing assets and loans
	past due 90 days or more as a
	percentage of total period-end assets			0.12%	0.11%	0.12%	0.11%	0.12%
Allowance for credit losses as a
	percentage of total non-performing
	loans			334%	351%	317%	341%	291%
Allowance for credit losses as a percentage
	of total period-end loans			1.04%	1.03%	1.03%	1.05%	1.04%
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%	2%

The following table presents, for the periods indicated, an analysis of the allowance for credit losses and other    

related data:  (dollar amounts in thousands)          

		Three Months Ended				Six Months Ended				Year Ended
		06/30/07		06/30/06		06/30/07		06/30/06		12/31/06
Balance at beginning of period		$164,057		$142,913		$160,269		$141,464		$141,464
Provisions charged to operating expenses		12,550		7,500		22,550		14,001		33,700
		176,607		150,413		182,819		155,465		175,164
Recoveries on loans charged-off:
	Commercial	1,065		2,095		2,186		2,628		5,987
	Consumer	330		624		619		1,135		1,604
	Commercial real estate	62		317		297		318		385
Total recoveries		1,457		3,036		3,102		4,081		7,976
Loans charged-off:
	Commercial	(5,951)		(3,028)		(10,245)		(7,214)		(14,107)
	Consumer	(2,570)		(1,972)		(5,544)		(3,684)		(8,179)
	Commercial real estate	(84)		(66)		(673)		(265)		(585)
Total charge-offs		(8,605)		(5,066)		(16,462)		(11,163)		(22,871)
Net charge-offs		(7,148)		(2,030)		(13,360)		(7,082)		(14,895)
Balance at end of period		$169,459		$148,383		$169,459		$148,383		$160,269
Net charge-offs as a percentage of
average loans outstanding		0.18	%	0.06	%	0.17	%	0.11	%	0.11	%
Net Allowance Additions		$5,402		$5,470		$9,190		$6,919		$18,805

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

(unaudited)

 

	June 2007				March 2007				June 2006
	Average		Average		Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$26,645,741	$369,794	5.57	%	$25,237,398	$348,630	5.60	%	$23,851,645	$319,271	5.37	%
Tax-exempt	571,408	8,415	5.91		611,725	8,984	5.96		559,733	7,322	5.25
Trading	105,198	1,509	5.75		96,838	1,290	5.40		113,049	1,525	5.41
Total investment securities	27,322,347	379,718	5.57		25,945,961	358,904	5.61		24,524,427	328,118	5.37
Federal funds sold	150,675	2,000	5.32		436,031	5,733	5.33		19,898	250	5.04
Loans
Commercial mortgages	5,443,872	96,125	7.08		5,447,516	95,522	7.11		4,784,584	83,903	7.03
Commercial	4,143,332	80,595	7.80		4,024,615	77,457	7.81		3,492,946	66,879	7.68
Consumer	5,947,306	95,002	6.41		5,711,130	90,500	6.43		5,115,609	80,560	6.32
Tax-exempt	615,035	10,987	7.17		599,202	11,217	7.59		498,492	8,535	6.87
Total loans	16,149,545	282,709	7.02		15,782,463	274,696	7.06		13,891,631	239,877	6.93
Total earning assets	$43,622,567	$664,427	6.11	%	$42,164,455	$639,333	6.14	%	$38,435,956	$568,245	5.93	%
Sources of Funds
Interest-bearing liabilities
Savings	$10,455,936	$72,954	2.80	%	$10,448,840	$72,118	2.80	%	$10,344,463	$64,157	2.49	%
Interest bearing demand	19,173,873	177,289	3.71		17,886,395	163,742	3.71		14,597,277	118,085	3.24
Time deposits	4,152,221	46,518	4.49		3,999,233	43,284	4.39		3,088,653	25,949	3.37
Public funds	1,079,122	14,003	5.20		1,197,869	15,579	5.27		1,224,298	15,225	4.99
Total deposits	34,861,152	310,764	3.58		33,532,337	294,723	3.56		29,254,691	223,416	3.06
Other borrowed money	267,542	3,519	5.28		314,552	4,132	5.33		1,624,229	19,809	4.89
Total deposits and interest-bearing liabilities	35,128,694	314,283	3.59		33,846,889	298,855	3.58		30,878,920	243,225	3.16
Noninterest-bearing funds (net)	8,493,873				8,317,566				7,557,036
Total sources to fund earning assets	$43,622,567	314,283	2.89		$42,164,455	298,855	2.87		$38,435,956	243,225	2.54
Net interest income and
margin tax-equivalent basis		$350,144	3.22	%		$340,478	3.27	%		$325,020	3.39	%
Other Balances
Cash and due from banks	$1,213,084				$1,182,810				$1,278,137
Other assets	2,754,125				2,613,080				2,314,307
Total assets	47,430,063				45,804,220				41,888,789
Total deposits	43,869,934				42,232,192				37,486,585
Demand deposits (noninterest-bearing)	9,008,782				8,699,855				8,231,894
Other liabilities	382,676				390,627				299,622
Stockholders' equity	2,909,911				2,866,849				2,478,353
Allowance for loan losses	159,713				156,125				139,611
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		Six Months Ended
	June 30,		June 30,
	2007	2006	2007	2006
Basic:
Net income applicable to common stock	$76,903	$79,520	$154,839	$156,817
Average common shares outstanding	191,552	184,437	190,421	182,686
Net income per common share	$0.40	$0.43	$0.81	$0.86
Diluted:
Net income applicable to common stock	$76,903	$79,520	$154,839	$156,817
Average common shares outstanding	191,552	184,437	190,421	182,686
Additional shares considered in diluted
computation assuming:
Exercise of stock options	5,910	9,405	6,566	9,228
Average common and common equivalent
shares outstanding	197,462	193,842	196,987	191,914
Net income per common and common
equivalent share	$0.39	$0.41	$0.79	$0.82