Commerce Bancorp 8-K Results of Operations and Financial Condition

Exhibit 99.2

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited)

		September 30,			December 31,
	(dollars in thousands)	2007			2006
Assets	Cash and due from banks	$	1,345,641		$	1,207,390
	Federal funds sold		3,300			9,300
	Cash and cash equivalents		1,348,941			1,216,690
	Loans held for sale		24,407			52,741
	Trading securities		7,310,103			106,007
	Securities available for sale		7,364,771			11,098,113
	Securities held to maturity		14,440,690			14,884,982
	(market value 09/07-$14,131,679; 2006-$14,617,764)
	Loans		17,057,856			15,607,049
	Less allowance for loan losses		177,329			152,053
			16,880,527			15,454,996
	Bank premises and equipment, net		1,965,873			1,753,670
	Goodwill and other intangible assets		145,129			141,631
	Other assets		513,595			562,986
	Total assets	$	49,994,036		$	45,271,816
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	9,190,005		$	8,936,824
	Interest-bearing		20,276,514			16,853,457
	Savings		10,962,975			10,459,306
	Time		6,104,819			5,038,624
	Total deposits		46,534,313			41,288,211
	Other borrowed money		204,130			777,404
	Other liabilities		317,978			405,103
			47,056,421			42,470,718
Stockholders'	Common stock, 195,634,664 shares issued (189,738,423 shares in 2006)		195,635			189,738
Equity	Capital in excess of par value		1,848,936			1,744,691
	Retained earnings		986,021			958,770
	Accumulated other comprehensive (loss) income		(40,484	)		(65,240	)
			2,990,108			2,827,959
	Less treasury stock, at cost, 1,976,923 shares (1,231,081 shares in 2006)		52,493			26,861
	Total stockholders' equity		2,937,615			2,801,098
	Total liabilities and stockholders' equity	$	49,994,036		$	45,271,816

Commerce Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
	(dollars in thousands, except per share amounts)	2007			2006		% Change			2007			2006		% Change
Interest	Interest and fees on loans	$	289,854		$	255,663		13	%	$	839,487		$	707,527		19	%
income	Interest on investments		390,653			339,825		15			1,122,206			959,923		17
	Other interest		836			1,918		(56	)		8,569			2,581		232
	Total interest income		681,343			597,406		14			1,970,262			1,670,031		18
Interest	Interest on deposits:
expense	Demand		182,616			132,349		38			523,647			348,374		50
	Savings		77,221			70,320		10			222,293			188,481		18
	Time		67,383			52,375		29			186,767			129,810		44
	Total interest on deposits		327,220			255,044		28			932,707			666,665		40
	Interest on other borrowed money		7,001			20,392		(66	)		14,652			54,529		(73	)
	Total interest expense		334,221			275,436		21			947,359			721,194		31
	Net interest income		347,122			321,970		8			1,022,903			948,837		8
	Provision for credit losses		26,000			9,499		174			48,550			23,500		107
	Net interest income after provision for credit losses		321,122			312,471		3			974,353			925,337		5
Noninterest	Deposit charges and service fees		119,771			97,436		23			341,890			271,370		26
income	Other operating income		59,258			53,121		12			170,283			153,145		11
	Net investment securities (losses) gains		(175,343	)		0		0			(172,464	)		0		0
	Total noninterest income		3,686			150,557		(98	)		339,709			424,515		(20	)
	Total Revenues		350,808			472,527		(26	)		1,362,612			1,373,352		(1	)
Noninterest	Salaries and benefits		179,442			156,105		15			518,695			451,560		15
expense	Occupancy		63,865			49,534		29			180,563			141,261		28
	Furniture and equipment		46,261			41,543		11			134,384			117,159		15
	Office		16,910			15,213		11			50,021			45,084		11
	Marketing		11,372			10,712		6			32,499			30,222		8
	Other		86,585			70,362		23			238,953			207,301		15
	Total noninterest expenses		404,435			343,469		18			1,155,115			992,587		16
	Income before income taxes		(79,627	)		119,559		(167	)		158,947			357,265		(56	)
	Provision for federal and state income taxes		(31,716	)		39,890		(180	)		52,019			120,779		(57	)
	Net income	$	(47,911	)	$	79,669		(160	)%	$	106,928		$	236,486		(55	)%
	Net income per common and common equivalent share:
	Basic	$	(0.25	)	$	0.43		(158	)%	$	0.56		$	1.29		(57	)%
	Diluted	$	(0.24	)	$	0.41		(159	)	$	0.54		$	1.23		(56	)
	Average common and common equivalent shares outstanding:
	Basic		193,027			186,527		3			191,299			183,981		4
	Diluted		199,097			194,754		2			197,728			192,872		3
	Cash dividends, common stock	$	0.13		$	0.12		8	%	$	0.39		$	0.36		8	%

Commerce Bancorp, Inc.
Selected Consolidated Financial Data
(unaudited)
	Three Months Ended									Nine Months Ended
	September 30,									September 30,
							%									%
	2007			2006			Change			2007			2006			Change
	(dollars and shares in thousands)									(dollars and shares in thousands)
Income Statement Data:
Net interest income	$	347,122		$	321,970			8	%	$	1,022,903		$	948,837			8	%
Provision for credit losses		26,000			9,499			174			48,550			23,500			107
Noninterest income		3,686			150,557			(98	)		339,709			424,515			(20	)
Total revenues		350,808			472,527			(26	)		1,362,612			1,373,352			(1	)
Noninterest expense		404,435			343,469			18			1,155,115			992,587			16
Net income		(47,911	)		79,669			(160	)		106,928			236,486			(55	)
Per Share Data:
Net income - Basic	$	(0.25	)	$	0.43			(158	)%	$	0.56		$	1.29			(57	)%
Net income - Diluted		(0.24	)		0.41			(159	)		0.54			1.23			(56	)
Book value - Basic										$	15.17		$	14.51			5	%
Book value - Diluted											14.68			13.85			6
Revenue per share - Diluted	$	7.05		$	9.71			(27	)%	$	9.19		$	9.49			(3	)%
Weighted Average Shares Outstanding:
Basic		193,027			186,527						191,299			183,981
Diluted		199,097			194,754						197,728			192,872
Balance Sheet Data:
Total assets										$	49,994,036		$	43,303,510			15	%
Loans (net)											16,880,527			14,550,704			16
Allowance for credit losses											185,966			154,572			20
Securities available for sale											7,364,771			10,800,173			(32	)
Securities held to maturity											14,440,690			14,245,638			1
Total deposits											46,534,313			40,141,661			16
Core deposits											44,751,028			38,538,568			16
Stockholders' equity											2,937,615			2,715,361			8
Capital:
Stockholders' equity to total assets											5.88	%		6.27	%
Risk-based capital ratios:
Tier I											11.24			11.99
Total capital											12.00			12.71
Leverage ratio											5.81			6.08
Performance Ratios:
Cost of funds		2.96	%		2.74	%					2.91	%		2.53	%
Net interest margin		3.13			3.27						3.21			3.39
Return on average assets		-0.39			0.74						0.30			0.76
Return on average total stockholders' equity		-6.47			12.06						4.89			12.61

The following summary presents information regarding non-performing loans and assets as of September 30, 2007 and the preceding four quarters (dollar amounts in thousands).
	September 30,			June 30,			March 31,			December 31,			September 30,
	2007			2007			2007			2006			2006
Non-accrual loans:
Commercial	$	25,736		$	22,381		$	20,526		$	33,686		$	33,658
Consumer		18,463			15,462			15,343			11,820			9,325
Commercial real estate:
Construction		44,619			8,509			8,575			3,531			496
Mortgage		9,287			4,328			2,277			1,565			1,828
Total non-accrual loans		98,105			50,680			46,721			50,602			45,307
Restructured loans:
Commercial		-			-			-			-			-
Consumer		-			-			-			-			-
Commercial real estate:
Construction		-			-			-			-			-
Mortgage		-			-			-			-			-
Total restructured loans		-			-			-			-			-
Total non-performing loans		98,105			50,680			46,721			50,602			45,307
Other real estate/foreclosed assets		2,709			5,235			5,000			2,610			2,022
Total non-performing assets		100,814			55,915			51,721			53,212			47,329
Loans past due 90 days or more
and still accruing		1,078			965			658			620			441
Total non-performing assets and
loans past due 90 days or more	$	101,892		$	56,880		$	52,379		$	53,832		$	47,770
Total non-performing loans as a
percentage of total period-end
loans		0.58	%		0.31	%		0.29	%		0.32	%		0.31	%
Total non-performing assets as a
percentage of total period-end assets		0.20	%		0.12	%		0.11	%		0.12	%		0.11	%
Allowance for credit losses as a
percentage of total non-performing
loans		190	%		334	%		351	%		317	%		341	%
Allowance for credit losses as a percentage
of total period-end loans		1.09	%		1.04	%		1.03	%		1.03	%		1.05	%
Total non-performing assets and loans
past due 90 days or more as a
percentage of stockholders' equity and
allowance for credit losses		3	%		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)
													Year
	Three Months Ended						Nine Months Ended						Ended
	09/30/07			09/30/06			09/30/07			09/30/06			12/31/06
Balance at beginning of period	$	169,459		$	148,383		$	160,269		$	141,464		$	141,464
Provisions charged to operating expenses		26,000			9,499			48,550			23,500			33,700
		195,459			157,882			208,819			164,964			175,164
Recoveries on loans charged-off:
Commercial		1,084			1,707			3,270			4,335			5,987
Consumer		255			237			874			1,372			1,604
Commercial real estate		-			57			297			375			385
Total recoveries		1,339			2,001			4,441			6,082			7,976
Loans charged-off:
Commercial		(5,852	)		(2,968	)		(16,097	)		(10,182	)		(14,107	)
Consumer		(3,142	)		(2,119	)		(8,686	)		(5,803	)		(8,179	)
Commercial real estate		(1,838	)		(224	)		(2,511	)		(489	)		(585	)
Total charge-offs		(10,832	)		(5,311	)		(27,294	)		(16,474	)		(22,871	)
Net charge-offs		(9,493	)		(3,310	)		(22,853	)		(10,392	)		(14,895	)
Balance at end of period	$	185,966		$	154,572		$	185,966		$	154,572		$	160,269
Net charge-offs as a percentage of
average loans outstanding		0.23	%		0.09	%		0.19	%		0.10	%		0.11	%
Net Allowance Additions	$	16,507		$	6,189		$	25,697		$	13,108		$	18,805

Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	September 2007							June 2007							September 2006
	Average				Average			Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$	27,318,695	$	381,917		5.55	%	$	26,645,741	$	369,794		5.57	%	$	24,566,553	$	334,250		5.40	%
Tax-exempt		437,271		6,614		6.00			571,408		8,415		5.91			530,542		7,641		5.71
Trading		328,192		4,894		5.92			105,198		1,509		5.75			78,103		934		4.74
Total investment securities		28,084,158		393,425		5.56			27,322,347		379,718		5.57			25,175,198		342,825		5.40
Federal funds sold		61,867		836		5.36			150,675		2,000		5.32			145,897		1,918		5.22
Loans
Commercial mortgages		5,551,061		99,010		7.08			5,443,872		96,125		7.08			5,001,608		90,050		7.14
Commercial		4,317,292		84,024		7.72			4,143,332		80,595		7.80			3,603,790		72,606		7.99
Consumer		6,164,959		99,188		6.38			5,947,306		95,002		6.41			5,407,721		87,077		6.39
Tax-exempt		640,357		11,742		7.27			615,035		10,987		7.17			510,950		9,123		7.08
Total loans		16,673,669		293,964		6.99			16,149,545		282,709		7.02			14,524,069		258,856		7.07
Total earning assets	$	44,819,694	$	688,225		6.09	%	$	43,622,567	$	664,427		6.11	%	$	39,845,164	$	603,599		6.01	%
Sources of Funds
Interest-bearing liabilities
Savings	$	10,561,475	$	77,221		2.90	%	$	10,455,936	$	72,954		2.80	%	$	10,592,676	$	70,320		2.63	%
Interest bearing demand		19,629,289		182,616		3.69			19,173,873		177,289		3.71			14,975,663		132,349		3.51
Time deposits		4,318,505		49,488		4.55			4,152,221		46,518		4.49			3,344,257		32,667		3.88
Public funds		1,347,235		17,895		5.27			1,079,122		14,003		5.20			1,470,116		19,708		5.32
Total deposits		35,856,504		327,220		3.62			34,861,152		310,764		3.58			30,382,712		255,044		3.33
Other borrowed money		523,708		7,001		5.30			267,542		3,519		5.28			1,543,210		20,392		5.24
Total deposits and interest-bearing liabilities		36,380,212		334,221		3.64			35,128,694		314,283		3.59			31,925,922		275,436		3.42
Noninterest-bearing funds (net)		8,439,482							8,493,873							7,919,242
Total sources to fund earning assets	$	44,819,694		334,221		2.96		$	43,622,567		314,283		2.89		$	39,845,164		275,436		2.74
Net interest income and
margin tax-equivalent basis			$	354,004		3.13	%			$	350,144		3.22	%			$	328,163		3.27	%
Other Balances
Cash and due from banks	$	1,242,929						$	1,213,084						$	1,219,806
Other assets		2,804,641							2,754,125							2,359,885
Total assets		48,701,192							47,430,063							43,279,878
Total deposits		44,821,215							43,869,934							38,772,316
Demand deposits (noninterest-bearing)		8,964,711							9,008,782							8,389,604
Other liabilities		393,685							382,676							321,225
Stockholders' equity		2,962,584							2,909,911							2,643,127
Allowance for loan losses		166,072							159,713							144,977
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.