----

----

| [X]                                             | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|-------------------------------------------------|-----------------------------------------------------------|
| SECURITIES      EXCHANGE ACT OF 1934            |
| For      the fiscal year ended December 31,2007 |

| [   ]                                                           | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|--------------------------------------------------------------------------------|---------------------------------------------------------------|
| SECURITIES      EXCHANGE ACT OF 1934                                           |
| For      the transition period from ________________ to      ________________. |

| New      Jersey                                    | 22-2433468                                   |
|----------------------------------------------------|----------------------------------------------|
| (State      of other jurisdiction of incorporation | (I.R.S.      Employee Identification Number) |
| or      organization)                              |                                         |
| Commerce      Atrium                               |                                         |
| 1701      Route 70 East                            | 08034-5400                                   |
| Cherry      Hill, New Jersey                       | (Zip      Code)                              |
| (Address      of principal executive offices)      |                                         |

|   | Common      Stock   |   | New      York Stock Exchange                  |
|--------|---------------------|--------|-----------------------------------------------|
|   | Title      of Class |   | Name      of Each Exchange on WhichRegistered |

|   | As      of June 30, 2007, the aggregate market value of the registrant’s common      stock held by non-affiliates of the Registrant was approximately      $5,218,695,495 based on the closing sale price as reported on the New York      Stock Exchange. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Common      Stock $1.00 Par Value |   | 200,134,260                                  |
|-----------------------------------|--------|----------------------------------------------|
| Title      of Class               |   | No.      of Shares Outstanding as of 3/10/08 |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Page   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Part      I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item      1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Business                                                                                                                                                                                     |   |
| Item      1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Risk      Factors                                                                                                                                                                            | 10     |
| Item      1B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Unresolved      Staff      Comments                                                                                                                                                          | 12     |
| Item      2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Properties                                                                                                                                                                                   | 13     |
| Item      3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Legal      Proceedings                                                                                                                                                                       | 13     |
| Item      4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Submission      of Matters to a Vote of Security      Holders                                                                                                                                | 14     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Part      II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Item      5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Market      for Registrant's Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 14     |
| Item      6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Selected      Financial      Data                                                                                                                                                            | 14     |
| Item      7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Management's      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 16     |
| Item      7A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Quantitative      and Qualitative Disclosures About Market      Risk                                                                                                                         | 31     |
| Item      8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Financial      Statements and Supplementary      Data                                                                                                                                        | 32     |
| Item      9.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 61     |
| Item      9A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Controls      and      Procedures                                                                                                                                                            | 61     |
| Item      9B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Other      Information                                                                                                                                                                       | 61     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Part      III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Item      10.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Directors,      Executive Officers of the Registrant and Corporate    Governance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 62     |
| Item      11.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Executive      Compensation                                                                                                                                                                  | 66     |
| Item      12.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 82     |
| Item      13.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Certain      Relationships and Related Transactions, and Director      Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 85     |
| Item      14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Principal      Accounting Fees and      Services                                                                                                                                             | 88     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Part      IV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Item      15.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Exhibits      and Financial Statement      Schedules                                                                                                                                         | 89     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Signatures                                                                                                                                                                      | 93                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Section      302      Certifications                                                                                                                                            | 94                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Section      906      Certification                                                                                                                                             | 96                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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Item 1. Business

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Item 1A. Risk Factors

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The Company has entered into a Memorandum of Understanding (MOU) withthe Federal Reserve Bank of Philadelphia (FRB) and Commerce NA has entered intoa Consent Order with the Office of the Comptroller of the Currency(OCC).

Item 1B. Unresolved Staff Comments

----

Item 2. Properties

Item 3. Legal Proceedings

----

Item 4.  Submission of Matters to a Vote ofSecurity Holders

Item 5. Market for Registrant's Common Equity, RelatedStockholder Matters and Issuer Purchases of Equity Securities

Item 6. Selected Financial Data

----

|                                                      |   | Year      Ended December 31, |
|-----------------------------------------------------------|--------|------------------------------|
| (dollars      in thousands, except per share data)        |   | 2007                         |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
| Income      Statement Data:                               |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      interest income                            | $      | 1,393,617                    |   | $ | 1,274,508 |   | $ | 1,153,582 |   | $ | 1,017,785 |   | $ | 755,866 |   |
|  Provision      for credit losses                    |   | 103,550                      |   |   | 33,700 |   |   | 19,150 |   |   | 39,238 |   |   | 31,850 |   |
|  Noninterest      income                             |   | 536,754                      |   |   | 591,153 |   |   | 442,794 |   |   | 375,071 |   |   | 332,478 |   |
|  Noninterest      expense                            |   | 1,611,239                    |   |   | 1,355,761 |   |   | 1,146,380 |   |   | 938,778 |   |   | 763,392 |   |
|  Income      before income taxes                     |   | 215,582                      |   |   | 476,200 |   |   | 430,846 |   |   | 414,840 |   |   | 293,102 |   |
|  Net      income                                     |   | 140,288                      |   |   | 299,313 |   |   | 282,939 |   |   | 273,418 |   |   | 194,287 |   |
| Balance      Sheet Data:                                  |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total      assets                                   | $      | 49,255,506                   |   | $ | 45,271,816 |   | $ | 38,466,037 |   | $ | 30,501,645 |   | $ | 22,712,180 |   |
|  Loans      (net)                                    |   | 17,638,325                   |   |   | 15,454,996 |   |   | 12,524,988 |   |   | 9,318,991 |   |   | 7,328,519 |   |
|  Securities      available for sale                  |   | 12,979,618                   |   |   | 11,098,113 |   |   | 9,518,821 |   |   | 8,044,150 |   |   | 10,650,655 |   |
|  Securities      held to maturity                    |   | 13,219,272                   |   |   | 14,884,982 |   |   | 13,005,364 |   |   | 10,463,658 |   |   | 2,490,484 |   |
|  Trading      securities                             |   | 225,786                      |   |   | 106,007 |   |   | 143,016 |   |   | 169,103 |   |   | 170,458 |   |
|  Deposits                                            |   | 46,038,751                   |   |   | 41,288,211 |   |   | 34,726,713 |   |   | 27,658,885 |   |   | 20,701,400 |   |
|  Long-term      debt                                 |   |                         |   |   |   |   |   |   |   |   | 200,000 |   |   | 200,000 |   |
|  Stockholders'      equity                           |   | 2,783,958                    |   |   | 2,801,098 |   |   | 2,309,173 |   |   | 1,665,705 |   |   | 1,277,288 |   |
| Per      Share Data:                                      |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      income-basic                               | $      | 0.73                         |   | $ | 1.62 |   | $ | 1.70 |   | $ | 1.74 |   | $ | 1.36 |   |
|  Net      income-diluted                             |   | 0.71                         |   |   | 1.55 |   |   | 1.61 |   |   | 1.63 |   |   | 1.29 |   |
|  Dividends      declared                             |   | 0.52                         |   |   | 0.49 |   |   | 0.45 |   |   | 0.40 |   |   | 0.34 |   |
|  Book      value                                     |   | 14.22                        |   |   | 14.86 |   |   | 12.92 |   |   | 10.42 |   |   | 8.35 |   |
|  Average      shares outstanding:                    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Basic                                               |   | 192,204                      |   |   | 184,919 |   |   | 165,974 |   |   | 156,625 |   |   | 142,169 |   |
|  Diluted                                             |   | 198,506                      |   |   | 193,674 |   |   | 179,135 |   |   | 172,603 |   |   | 156,507 |   |
| Selected      Ratios:                                     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Performance                                         |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Return      on average assets                       |   | 0.29                         | % |   | 0.71 | % |   | 0.83 | % |   | 1.03 | % |   | 0.99 | % |
|  Return      on average equity                       |   | 4.80                         |   |   | 11.65 |   |   | 14.90 |   |   | 18.78 |   |   | 18.81 |   |
|  Net      interest margin                            |   | 3.24                         |   |   | 3.35 |   |   | 3.77 |   |   | 4.28 |   |   | 4.36 |   |
|  Liquidity      and Capital                          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Average      loans to average deposits              |   | 37.50                        | % |   | 37.09 | % |   | 35.01 | % |   | 34.49 | % |   | 36.93 | % |
|  Dividend      payout-basic                          |   | 71.23                        |   |   | 30.25 |   |   | 26.47 |   |   | 22.99 |   |   | 25.00 |   |
|  Stockholders'      equity to total assets           |   | 5.65                         |   |   | 6.19 |   |   | 6.00 |   |   | 5.46 |   |   | 5.62 |   |
|  Risk-based      capital:                            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Tier      1                                         |   | 11.21                        |   |   | 11.73 |   |   | 11.81 |   |   | 12.30 |   |   | 12.66 |   |
|  Total                                               |   | 12.04                        |   |   | 12.44 |   |   | 12.58 |   |   | 13.25 |   |   | 13.62 |   |
|  Leverage      ratio                                 |   | 6.01                         |   |   | 6.18 |   |   | 6.04 |   |   | 6.19 |   |   | 6.61 |   |
|  Asset      Quality                                  |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Non-performing      assets to total year-end assets |   | 0.22                         | % |   | 0.12 | % |   | 0.09 | % |   | 0.11 | % |   | 0.10 | % |
|  Net      charge-offs to average loans outstanding   |   | 0.31                         |   |   | 0.11 |   |   | 0.15 |   |   | 0.19 |   |   | 0.16 |   |
|  Non-performing      loans to total                  |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  year-end      loans                                 |   | 0.59                         |   |   | 0.32 |   |   | 0.27 |   |   | 0.35 |   |   | 0.29 |   |
|  Allowance      for credit losses to total           |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  end      of year loans                              |   | 1.20                         |   |   | 1.03 |   |   | 1.12 |   |   | 1.43 |   |   | 1.51 |   |
|  Allowance      for credit losses to non-            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  performing      loans                               |   | 204.19                       |   |   | 316.72 |   |   | 406.85 |   |   | 412.88 |   |   | 515.39 |   |

----

Item 7.  Management’s Discussion andAnalysis of Financial Condition and Results of Operations

| ·   | Opened      42 new stores, including 22 in metro New York, the Company’s largest and      fastest growing market. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | Total      assets grew 9%. |
|--------------------|----------------------------|

| ·   | Total      deposits grew 12%. |
|--------------------|-------------------------------|

| ·   | Total      loans grew 14%, increasing the ratio of loans to deposits to 39% at      December 31, 2007. |
|--------------------|--------------------------------------------------------------------------------------------------------|

|                              | 2007     | 2006                          |  Change |
|-----------------------------------|----------|-------------------------------|--------------|
| (amounts      in billions)        |     |                          |         |
| Total      Assets                 | $49.3    | $    45.3 | 9%           |
| Total      Loans (net)            | 17.6     | 15.5                          | 14%          |
| Total      Investments            | 26.4     | 26.1                          | 1%           |
| Total      Deposits               | 46.0     | 41.3                          | 12%          |
|                              |     |                          |         |
| (amounts      in millions)        |     |                          |         |
| Total      Revenues               | $1,930.4 | $1,865.7                      | 3%           |
| Net      Income                   | 140.3    | 299.3                         | (53)%        |
| Net      Income per Share Diluted | 0.71     | 1.55                          | (54)%        |

|   | Net      Interest Income(dollars      in millions) |
|--------|----------------------------------------------------|
|   | VolumeIncrease                                     | Rate      Change | Total      Increase |
| 2007   | $169.0                                             | ($46.2) | $122.8 | 9% |
| 2006   | $254.3                                             | ($128.0) | $126.3 | 11% |

----

|                    |   | Net      Income (Loss) |    |
|-------------------------|--------|------------------------|---------|
|                    |   | 2007                   |    |   | 2006 |   |   | 2005 |   |
| Community      Banks    |   | $                      | 143,857 |   |   | $ | 289,228 |   |   | $ | 270,960 |   |
| Parent/Other            |   |                   | (3,569  | ) |   |   | 10,085 |   |   |   | 11,979 |   |
| Consolidated      Total |   | $                      | 140,288 |   |   | $ | 299,313 |   |   | $ | 282,939 |   |

----

| · | the      volume, pricing, mix and maturity of interest-earning assets and      interest-bearing liabilities; |
|--------|--------------------------------------------------------------------------------------------------------------|

| · | market      interest rate fluctuations; and |
|--------|---------------------------------------------|

| · | asset      quality. |
|--------|---------------------|

|                                                                                                                                                                  |   | 2007      vs. 2006          |    |   | 2006      vs. 2005         |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|----------------------------|--------|
|                                                                                                                                                                  |   | Increase      (Decrease)    |    |   | Increase      (Decrease)   |   |
|                                                                                                                                                                  |   | Due      to Changes in (1)  |    |   | Due      to Changes in (1) |   |
|                                                                                                                                                                  |   | Volume                      |    |   | Rate                       |   |   | Total |   |   | Volume |   |   | Rate |   |   | Total |   |
|                                                                                                                                                                  |   | (dollars      in thousands) |    |
| Interest      onInvestments:                                                                                                                                          |   |                        |    |
| Taxable                                                                                                                                                               |   | $                           | 110,525 |   |                       | $      | 40,163 |   |   | $ | 150,688 |   |   | $ | 225,767 |   |   | $ | 87,475 |   |   | $ | 313,242 |   |
| Tax-exempt                                                                                                                                                            |   |                        | (2,219  | )      |                       |   | 2,803 |   |   |   | 584 |   |   |   | 7,261 |   |   |   | 6,041 |   |   |   | 13,302 |   |
| Trading                                                                                                                                                               |   |                        | 37,581  |   |                       |   | 1,082 |   |   |   | 38,663 |   |   |   | (1,300 | ) |   |   | (824 | ) |   |   | (2,124 | ) |
| Federal   funds      sold                                                                                                                              |   |                        | 9,518   |   |                       |   | (369 | ) |   |   | 9,149 |   |   |   | 1,783 |   |   |   | 1,871 |   |   |   | 3,654 |   |
| Interest      on loans:                                                                                                                                               |   |                        |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercialmortgages                                                                                                                                                   |   |                        | 49,334  |   |                       |   | (299 | ) |   |   | 49,035 |   |   |   | 74,715 |   |   |   | 20,947 |   |   |   | 95,662 |   |
| Commercial                                                                                                                                                            |   |                        | 57,808  |   |                       |   | (2,706 | ) |   |   | 55,102 |   |   |   | 68,532 |   |   |   | 28,847 |   |   |   | 97,379 |   |
| Consumer                                                                                                                                                              |   |                        | 52,347  |   |                       |   | 2,211 |   |   |   | 54,558 |   |   |   | 82,911 |   |   |   | 10,990 |   |   |   | 93,901 |   |
| Tax-exempt                                                                                                                                                            |   |                        | 8,887   |   |                       |   | 886 |   |   |   | 9,773 |   |   |   | 4,201 |   |   |   | 69 |   |   |   | 4,270 |   |
| Total      interest   income                                                                                                                           |   |                        | 323,781 |   |                       |   | 43,771 |   |   |   | 367,552 |   |   |   | 463,870 |   |   |   | 155,416 |   |   |   | 619,286 |   |
| Interest      expense:                                                                                                                                                |   |                        |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                                                                                                                                                               |   |                        | 3,018   |   |                       |   | 24,227 |   |   |   | 27,245 |   |   |   | 66,538 |   |   |   | 71,471 |   |   |   | 138,009 |   |
| Interest      bearingdemand                                                                                                                                           |   |                        | 158,527 |   |                       |   | 36,385 |   |   |   | 194,912 |   |   |   | 79,697 |   |   |   | 162,777 |   |   |   | 242,474 |   |
| Time      deposits                                                                                                                                                    |   |                        | 38,243  |   |                       |   | 24,956 |   |   |   | 63,199 |   |   |   | 21,921 |   |   |   | 29,997 |   |   |   | 51,918 |   |
| Public      funds                                                                                                                                                     |   |                        | (3,848  | )      |                       |   | 1,235 |   |   |   | (2,613 | ) |   |   | 23,723 |   |   |   | 15,522 |   |   |   | 39,245 |   |
| Other   borrowed   money                                                                                                                |   |                        | (41,167 | )      |                       |   | 3,135 |   |   |   | (38,032 | ) |   |   | 17,617 |   |   |   | 12,070 |   |   |   | 29,687 |   |
| Long-term   debt                                                                                                                                       |   |                        | -       |   |                       |   | - |   |   |   | - |   |   |   | - |   |   |   | (8,379 | ) |   |   | (8,379 | ) |
| Total      interest   expense                                                                                                                          |   |                        | 154,773 |   |                       |   | 89,938 |   |   |   | 244,711 |   |   |   | 209,496 |   |   |   | 283,458 |   |   |   | 492,954 |   |
| Net      change                                                                                                                                                       |   | $                           | 169,008 |   |                       |   | (46,167 | ) |   | $ | 122,841 |   |   | $ | 254,374 |   |   |   | (128,042 | ) |   | $ | 126,332 |   |
| (1)Changes      due to both volume and rate have been allocated to volume or rate changes      in proportion to the absolute dollar amounts of the change in    each. |   |

----

|                                                      |                                                                                                                                                                                                                              |                 | Year      Ended December 31, |           |              |                       |
|-----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|------------------------------|----------------|-------------------|----------------------------|
|                                                      | 2007                                                                                                                                                                                                                              |  2006           |  2005                   |
| (dollars      in thousands)Earning      Assets            | AverageBalance                                                                                                                                                                                                                    |  Interest       | AverageRate                  | AverageBalance |  Interest    | AverageRate                | AverageBalance |  Interest | AverageRate |
| Investment      securities                                |                                                                                                                                                                                                                              |                 |                         |           |              |                       |   |   |   |   |   |   |
| Taxable                                                   | $25,844,932                                                                                                                                                                                                                       | $1,429,614           | 5.53                         | %              | $23,846,823       | $1,278,926                 | 5.36 | % | $19,637,178 | $   965,684 | 4.92 | % |
| Tax-exempt                                                | 519,699                                                                                                                                                                                                                           | 31,100               | 5.98                         |           | 556,773           | 30,516                     | 5.48 |   | 424,303 | 17,214 | 4.06 |   |
| Trading                                                   | 736,761                                                                                                                                                                                                                           | 43,534               | 5.91                         |           | 100,746           | 4,871                      | 4.84 |   | 127,634 | 6,995 | 5.48 |   |
| Total      investment securities                          | 27,101,392                                                                                                                                                                                                                        | 1,504,248            | 5.55                         |           | 24,504,342        | 1,314,313                  | 5.36 |   | 20,189,115 | 989,893 | 4.90 |   |
| Federal      funds sold                                   | 324,423                                                                                                                                                                                                                           | 16,075               | 4.95                         |           | 132,336           | 6,926                      | 5.23 |   | 98,265 | 3,272 | 3.33 |   |
| Loans                                                     |                                                                                                                                                                                                                              |                 |                         |           |              |                       |   |   |   |   |   |   |
| Commercial      mortgages                                 | 5,571,488                                                                                                                                                                                                                         | 391,735              | 7.03                         |           | 4,869,826         | 342,700                    | 7.04 |   | 3,808,107 | 247,038 | 6.49 |   |
| Commercial                                                | 4,274,802                                                                                                                                                                                                                         | 328,488              | 7.68                         |           | 3,522,513         | 273,386                    | 7.76 |   | 2,639,491 | 176,007 | 6.67 |   |
| Consumer                                                  | 6,042,186                                                                                                                                                                                                                         | 385,168              | 6.37                         |           | 5,221,014         | 330,610                    | 6.33 |   | 3,911,672 | 236,709 | 6.05 |   |
| Tax-exempt                                                | 632,280                                                                                                                                                                                                                           | 46,041               | 7.28                         |           | 510,248           | 36,268                     | 7.11 |   | 451,151 | 31,998 | 7.09 |   |
| Total      loans                                          | 16,520,756                                                                                                                                                                                                                        | 1,151,432            | 6.97                         |           | 14,123,601        | 982,964                    | 6.96 |   | 10,810,421 | 691,752 | 6.40 |   |
| Total      earning assets                                 | $43,946,571                                                                                                                                                                                                                       | $2,671,755           | 6.08                         | %              | $38,760,279       | $2,304,203                 | 5.94 | % | $31,097,801 | $1,684,917 | 5.42 | % |
| Sources      of Funds                                     |                                                                                                                                                                                                                              |                 |                         |           |              |                       |   |   |   |   |   |   |
| Interest-bearing      liabilities                         |                                                                                                                                                                                                                              |                 |                         |           |              |                       |   |   |   |   |   |   |
| Savings                                                   | $10,435,825                                                                                                                                                                                                                       | $  288,673 | 2.77                         | %              | $10,326,719       | $   261,428 | 2.53 | % | $  7,698,370 | $   123,419 | 1.60 | % |
| Interest-bearing      demand                              | 19,301,275                                                                                                                                                                                                                        | 690,059              | 3.58                         |           | 14,867,213        | 495,147                    | 3.33 |   | 12,474,260 | 252,673 | 2.03 |   |
| Time      deposits                                        | 4,176,466                                                                                                                                                                                                                         | 187,242              | 4.48                         |           | 3,323,462         | 124,043                    | 3.73 |   | 2,736,142 | 72,125 | 2.64 |   |
| Public      funds                                         | 1,220,847                                                                                                                                                                                                                         | 63,288               | 5.18                         |           | 1,295,061         | 65,901                     | 5.09 |   | 828,860 | 26,656 | 3.22 |   |
| Total      deposits                                       | 35,134,413                                                                                                                                                                                                                        | 1,229,262            | 3.50                         |           | 29,812,455        | 946,519                    | 3.17 |   | 23,737,632 | 474,873 | 2.00 |   |
|                                                      |                                                                                                                                                                                                                              |                 |                         |           |              |                       |   |   |   |   |   |   |
| Other      borrowed money                                 | 388,654                                                                                                                                                                                                                           | 20,065               | 5.16                         |           | 1,186,068         | 58,097                     | 4.90 |   | 826,400 | 28,410 | 3.44 |   |
| Long-term      debt                                       |                                                                                                                                                                                                                              |                 |                         |           |              |                       |   |   | 140,274 | 8,379 | 5.97 |   |
| Total      deposits and interest-bearing      liabilities |  35,523,067                                                                                                                                                                                                                  |  1,249,327      |  3.52                   |           |  30,998,523  |  1,004,616            |  3.24 |   |  24,704,306 |  511,662 |  2.07 |   |
| Noninterest-bearing      funds(net)                       |  8,423,504                                                                                                                                                                                                                   |                 |                         |           |  7,761,756   |                       |   |   |  6,393,495 |   |   |   |
| Total      sources to fundearning      assets             |  $43,946,571                                                                                                                                                                                                                 |  1,249,327      |  2.84                   |           |  $38,760,279 |  1,004,616            |  2.59 |   |  $31,097,801 |  511,662 |  1.65 |   |
| Net      interest income andmargin      tax-equivalent    |                                                                                                                                                                                                                              |                 |                         |           |              |                       |   |   |   |   |   |   |
| basis                                                     |                                                                                                                                                                                                                              | $1,422,428           | 3.24                         |           |              | $1,299,587                 | 3.35 |   |   | $1,173,255 | 3.77 |   |
| Tax-exempt      adjustment                                |                                                                                                                                                                                                                              | 28,811               |                         |           |              | 25,079                     |   |   |   | 19,673 |   |   |
| Net      interest income and margin                       |                                                                                                                                                                                                                              | $1,393,617           | 3.17                         | %              |              | $1,274,508                 | 3.29 | % |   | $1,153,582 | 3.71 | % |
| Other      Balances                                       |                                                                                                                                                                                                                              |                 |                         |           |              |                       |   |   |   |   |   |   |
| Cash      and due from banks                              | $1,217,019                                                                                                                                                                                                                        |                 |                         |           | $1,239,398        |                       |   |   | $1,257,799 |   |   |   |
| Other      assets                                         | 2,739,292                                                                                                                                                                                                                         |                 |                         |           | 2,306,101         |                       |   |   | 1,792,339 |   |   |   |
| Total      assets                                         | 47,736,787                                                                                                                                                                                                                        |                 |                         |           | 42,162,415        |                       |   |   | 34,005,732 |   |   |   |
| Total      deposits                                       | 44,049,769                                                                                                                                                                                                                        |                 |                         |           | 38,081,613        |                       |   |   | 30,881,184 |   |   |   |
| Demand      deposits(noninterest-bearing)                 |  8,915,356                                                                                                                                                                                                                   |                 |                         |           |  8,269,158   |                       |   |   |  7,143,552 |   |   |   |
| Other      liabilities                                    | 375,402                                                                                                                                                                                                                           |                 |                         |           | 324,749           |                       |   |   | 258,886 |   |   |   |
| Stockholders'      equity                                 | 2,922,962                                                                                                                                                                                                                         |                 |                         |           | 2,569,985         |                       |   |   | 1,898,989 |   |   |   |
| 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. |

----

|                          |   | 2007   |    |   | 2006   |   |
|-------------------------------|--------|--------|---------|--------|--------|--------|
| Other      Operating Income:  |   |   |    |   |   |   |
| Commerce      Banc Insurance  |   | $      | 85,645  |   |   | $      | 83,525 |   |
| Commerce      Capital Markets |   |   | 30,344  |   |   |   | 29,553 |   |
| Operating      lease revenue  |   |   | 20,869  |   |   |   | 15,587 |   |
| Loan      brokerage fees      |   |   | 9,858   |   |   |   | 9,861 |   |
| eMoney      Advisor revenues  |   |   | 13,307  |   |   |   | 8,667 |   |
| Gains      on SBA loan sales  |   |   | 5,691   |   |   |   | 7,431 |   |
| Other                         |   |   | 76,562  |   |   |   | 59,622 |   |
| Total      Other              |   | $      | 242,276 |   |   | $      | 214,246 |   |

|                                          |   | 2007   |    |   | 2006   |   |
|-----------------------------------------------|--------|--------|---------|--------|--------|--------|
| Other      Noninterest Expenses:              |   |   |    |   |   |   |
| Business      Development Costs               |   | $      | 46,395  |   |   | $      | 44,637 |   |
| Bank-Card      Related Service Charges        |   |   | 65,020  |   |   |   | 55,594 |   |
| Professional      Services/Insurance          |   |   | 85,852  |   |   |   | 51,146 |   |
| Provisions      for Non-Credit-Related Losses |   |   | 27,077  |   |   |   | 28,738 |   |
| Other                                         |   |   | 118,991 |   |   |   | 98,475 |   |
| Total      Other                              |   | $      | 343,335 |   |   | $      | 278,590 |   |

----

|                                     | December      31,      |                   |
|------------------------------------------|------------------------|------------------------|
|                                     | 2007                   | 2006                   | 2005 | 2004 | 2003 |   |
| (dollars      in thousands)              |                   |
| Commercial:                              |                   |                   |   |   |   |   |
| Term                                     | $  3,045,907 | $  2,392,889 | $  1,781,148 | $1,283,476 | $1,027,526 |   |
| Line      of credit                      | 2,070,636              | 1,843,545              | 1,517,347 | 1,168,542 | 960,235 |   |
|                                     | 5,116,543              | 4,236,434              | 3,298,495 | 2,452,018 | 1,987,761 |   |
|                                     |                   |                   |   |   |   |   |
| Owner-occupied                           | 3,245,123              | 2,845,791              | 2,402,300 | 1,998,203 | 1,619,079 |   |
|                                     |                   |                   |   |   |   |   |
| Consumer:                                |                   |                   |   |   |   |   |
| Mortgages                                |                   |                   |   |   |   |   |
| (1-4      family  residential) | 2,314,532              | 2,235,247              | 2,000,309 | 1,340,009 | 918,686 |   |
| Installment                              | 285,543                | 287,151                | 211,332 | 132,646 | 138,437 |   |
| Home      equity                         | 3,585,904              | 2,958,893              | 2,353,581 | 1,799,841 | 1,405,795 |   |
| Credit      lines                        | 194,030                | 137,429                | 100,431 | 69,079 | 60,579 |   |
|                                     | 6,380,009              | 5,618,720              | 4,665,653 | 3,341,575 | 2,523,497 |   |
|                                     |                   |                   |   |   |   |   |
| Commercial      real estate:             |
| Investor      developer                  | 2,502,872              | 2,625,628              | 2,001,674 | 1,455,891 | 1,167,672 |   |
| Construction                             | 596,971                | 280,476                | 290,530 | 206,924 | 142,567 |   |
|                                     | 3,099,843              | 2,906,104              | 2,292,204 | 1,662,815 | 1,310,239 |   |
| Total      loans                         | $17,841,518            | $15,607,049            | $12,658,652 | $9,454,611 | $7,440,576 |   |

|                          | December      31, 2007       |
|-------------------------------|------------------------------|
|                          | Due      in One Year or Less | Due      in One to Five Years | Due      in Over Five Years | Total |
| (dollars      in thousands)   |
| Commercial:                   |                         |   |   |   |
| Term                          | $834,150                     | $1,632,756 | $579,001 | $3,045,907 |
| Line      of credit           | 1,453,911                    | 591,381 | 25,344 | 2,070,636 |
|                          | 2,288,061                    | 2,224,137 | 604,345 | 5,116,543 |
|                          |                         |   |   |   |
| Owner-occupied                | 461,815                      | 1,498,601 | 1,284,707 | 3,245,123 |
|                          |                         |   |   |   |
| Consumer:                     |                         |   |   |   |
| Mortgages                     |                         |   |   |   |
| (1-4      family residential) | 59,313                       | 230,005 | 2,025,214 | 2,314,532 |
| Installment                   | 58,340                       | 115,570 | 111,633 | 285,543 |
| Home      equity              | 189,453                      | 788,657 | 2,607,794 | 3,585,904 |
| Credit      lines             | 64,546                       | 129,484 |   | 194,030 |
|                          | 371,652                      | 1,263,716 | 4,744,641 | 6,380,009 |
| Commercial      real estate:  |
| Investor      developer       | 746,774                      | 1,300,044 | 456,054 | 2,502,872 |
| Construction                  | 493,777                      | 103,194 |   | 596,971 |
|                          | 1,240,551                    | 1,403,238 | 456,054 | 3,099,843 |
| Total      loans              | $4,362,079                   | $6,389,692 | $7,089,747 | $17,841,518 |
| Interest      rates:          |                         |   |   |   |
| Predetermined                 | $1,505,987                   | $4,326,566 | $5,071,723 | $10,904,276 |
| Floating                      | 2,856,092                    | 2,063,126 | 2,018,024 | 6,937,242 |
| Total      loans              | $4,362,079                   | $6,389,692 | $7,089,747 | $17,841,518 |

----

|                                                                    |   | Year      Ended December 31, |    |
|-------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                    |   | 2007                         |    |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
| (dollars      in thousands)                                             |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accrual      loans (1):                                             |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                              |   | $                            | 35,575  |   |   | $ | 33,686 |   |   | $ | 16,712 |   |   | $ | 17,874 |   |   | $ | 10,972 |   |
| Consumer                                                                |   |                         | 23,493  |   |   |   | 11,820 |   |   |   | 8,834 |   |   |   | 10,138 |   |   |   | 9,242 |   |
| Real      estate                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction                                                            |   |                         | 30,813  |   |   |   | 3,531 |   |   |   | 1,763 |   |   |   |   |   |   |   | 138 |   |
| Mortgage                                                                |   |                         | 14,570  |   |   |   | 1,565 |   |   |   | 4,329 |   |   |   | 1,317 |   |   |   | 1,389 |   |
| Total      non-accrualloans                                             |   |                         | 104,451 |   |   |   | 50,602 |   |   |   | 31,638 |   |   |   | 29,329 |   |   |   | 21,741 |   |
| Restructured      loans (1):                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                              |   |                         | -       |   |   |   | - |   |   |   | 3,133 |   |   |   | 3,518 |   |   |   | 1 |   |
| Total      non-performingloans                                          |   |                         | 104,451 |   |   |   | 50,602 |   |   |   | 34,771 |   |   |   | 32,847 |   |   |   | 21,742 |   |
| Other      real estate/ foreclosed      assets                          |   |                         | 4,287   |   |   |   | 2,610 |   |   |   | 279 |   |   |   | 626 |   |   |   | 1,831 |   |
| Total      non-performingassets(1):                                     |   | $                            | 108,738 |   |   | $ | 53,212 |   |   | $ | 35,050 |   |   | $ | 33,473 |   |   | $ | 23,573 |   |
| Non-performingassets      as a percentof      total assets              |   |                         | 0.22    | % |   |   | 0.12 | % |   |   | 0.09 | % |   |   | 0.11 | % |   |   | 0.10 | % |
| Loans      past due 90days      or more and stillaccruing      interest |   | $                            | 1,534   |   |   | $ | 620 |   |   | $ | 248 |   |   | $ | 602 |   |   | $ | 538 |   |

| (1) | Interest      income of approximately $6,612,000, $2,816,000, $2,760,000, $2,906,000,      and $1,908,000 would have been recorded in 2007, 2006, 2005, 2004, and      2003, respectively, on non-performing loans in accordance with their      original terms. Actual interest recorded on these loans amounted to      $3,970,000 in 2007, $1,530,000 in 2006, $809,000 in 2005, $1,070,000 in      2004, and $418,000 in 2003. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                       |   | Year      Ended December 31, |    |
|----------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                       |   | 2007                         |    |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
| (dollars      in thousands)                                                |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at beginningof      period                                    |   | $                            | 160,269 |   |   | $ | 141,464 |   |   | $ | 135,620 |   |   | $ | 112,057 |   |   | $ | 90,733 |   |
| Provisions      charged tooperating      expenses                          |   |                         | 103,550 |   |   |   | 33,700 |   |   |   | 19,150 |   |   |   | 39,238 |   |   |   | 31,850 |   |
|                                                                       |   |                         | 263,819 |   |   |   | 175,164 |   |   |   | 154,770 |   |   |   | 151,295 |   |   |   | 122,583 |   |
| Recoveries      of loanspreviously      charged-off:                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                 |   |                         | 4,550   |   |   |   | 5,987 |   |   |   | 2,546 |   |   |   | 1,000 |   |   |   | 669 |   |
| Consumer                                                                   |   |                         | 1,246   |   |   |   | 1,604 |   |   |   | 2,566 |   |   |   | 1,123 |   |   |   | 584 |   |
| Commercial      real estate                                           |   |                         | 297     |   |   |   | 385 |   |   |   | 80 |   |   |   | 52 |   |   |   | 11 |   |
| Total      recoveries                                                      |   |                         | 6,093   |   |   |   | 7,976 |   |   |   | 5,192 |   |   |   | 2,175 |   |   |   | 1,264 |   |
| Loans      charged-off:                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                 |   |                         | (25,498 | ) |   |   | (14,107 | ) |   |   | (13,944 | ) |   |   | (9,416 | ) |   |   | (5,601 | ) |
| Consumer                                                                   |   |                         | (12,455 | ) |   |   | (8,179 | ) |   |   | (5,912 | ) |   |   | (6,733 | ) |   |   | (5,950 | ) |
| Commercial      real estate                                           |   |                         | (18,678 | ) |   |   | (585 | ) |   |   | (1,136 | ) |   |   | (1,701 | ) |   |   | (239 | ) |
| Total      charged-off                                                     |   |                         | (56,631 | ) |   |   | (22,871 | ) |   |   | (20,992 | ) |   |   | (17,850 | ) |   |   | (11,790 | ) |
| Net      charge-offs                                                       |   |                         | (50,538 | ) |   |   | (14,895 | ) |   |   | (15,800 | ) |   |   | (15,675 | ) |   |   | (10,526 | ) |
| Allowance      for credit losses acquired bank                             |   |                         |    |   |   |   |   |   |   |   | 2,494 |   |   |   |   |   |   |   |   |   |
| Balance      at end of period                                              |   | $                            | 213,281 |   |   | $ | 160,269 |   |   | $ | 141,464 |   |   | $ | 135,620 |   |   | $ | 112,057 |   |
| Net      charge-offs as apercentage      of averageloans      outstanding  |   |                         | 0.31    | % |   |   | 0.11 | % |   |   | 0.15 | % |   |   | 0.19 | % |   |   | 0.16 | % |
| Allowance      for credit lossesas      a percentage ofyear-end      loans |   |                         | 1.20    | % |   |   | 1.03 | % |   |   | 1.12 | % |   |   | 1.43 | % |   |   | 1.51 | % |
| Components:                                                                |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan and lease losses                                   |   | $                            | 203,193 |   |   | $ | 152,053 |   |   | $ | 133,664 |   |   | $ | 135,620 |   |   | $ | 112,057 |   |
| Allowance      for unfunded credit commitments (1)                         |   |                         | 10,088  |   |   |   | 8,216 |   |   |   | 7,800 |   |   |   |   |   |   |   |   |   |
| Total      allowance for credit losses                                     |   | $                            | 213,281 |   |   | $ | 160,269 |   |   | $ | 141,464 |   |   | $ | 135,620 |   |   | $ | 112,057 |   |

| (1)   | During      2005, the allowance for unfunded credit commitments was reclassified from      the allowance for loan and lease losses to other    liabilities. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   | Allowance      for Loan and Lease Losses at December 31, |
|----------------------------------------|----------------------------------------------------------|
|                                   | 2007                                                     |   | 2006 |   | 2005 |   | 2004 |   | 2003 |   |
|                                   |  Amount                                             | %      GrossLoans |   |  Amount | %      GrossLoans |   |  Amount | %      GrossLoans |   |  Amount | %      GrossLoans |   |  Amount | %      GrossLoans |   |
| (dollars      in thousands)            |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Commercial                       | $                                                        | 79,843 | 29 | % | $ | 61,325 | 27 | % | $ | 55,372 | 26 | % | $ | 47,230 | 26 | % | $ | 50,400 | 27 | % |
|  Owner-occupied                   |                                                     | 32,441 | 18 |   |   | 30,755 | 18 |   |   | 18,255 | 19 |   |   | 29,488 | 21 |   |   | 26,862 | 22 |   |
|  Consumer                         |                                                     | 42,434 | 36 |   |   | 37,030 | 36 |   |   | 36,868 | 37 |   |   | 38,100 | 35 |   |   | 13,082 | 34 |   |
|  Commercial      real estate |                                                     |  48,475 |  17 |   |   |  22,943 |  19 |   |   |  23,169 |  18 |   |   |  20,802 |  18 |   |   |  21,713 |  17 |   |
|                                   | $                                                        | 203,193 | 100 | % | $ | 152,053 | 100 | % | $ | 133,664 | 100 | % | $ | 135,620 | 100 | % | $ | 112,057 | 100 | % |

|                                                     |   | December      31, |       |
|----------------------------------------------------------|--------|-------------------|------------|
|                                                     |   | 2007              |       |   | 2006 |   |   | 2005 |   |
| (dollars      in thousands)                              |   |
| U.S.      Government agency                              |   | $                 | 132,883    |   |   | $ | 707,613 |   |   | $ | 572,390 |   |
| U.S.      Government-Sponsored agencies                  |   |              | 1,009,475  |   |   |   | 2,980,102 |   |   |   | 3,007,725 |   |
| Mortgage-backed      obligations                         |   |              | 5,132,046  |   |   |   | 7,296,532 |   |   |   | 5,842,363 |   |
| Obligations      of state andpolitical      subdivisions |   |              | 53,276     |   |   |   | 54,745 |   |   |   | 59,127 |   |
| Asset      backed securities                             |   |              | 6,589,086  |   |   |   | - |   |   |   | - |   |
| Equity      securities                                   |   |              | 20,209     |   |   |   | 19,071 |   |   |   | 22,772 |   |
| Other                                                    |   |              | 42,643     |   |   |   | 40,050 |   |   |   | 14,444 |   |
| Securities      availablefor      sale                   |   | $                 | 12,979,618 |   |   | $ | 11,098,113 |   |   | $ | 9,518,821 |   |
| U.S.      Government agency                              |   | $                 | 620,753    |   |   | $ | 1,531,668 |   |   | $ | 1,210,638 |   |
| U.S.      Government-Sponsored agencies                  |   |              | 6,686,170  |   |   |   | 7,025,439 |   |   |   | 5,704,085 |   |
| Mortgage-backed      obligations                         |   |              | 5,333,834  |   |   |   | 5,648,427 |   |   |   | 5,500,864 |   |
| Obligations      of state andpolitical      subdivisions |   |              | 433,395    |   |   |   | 554,189 |   |   |   | 490,257 |   |
| Other                                                    |   |              | 145,120    |   |   |   | 125,259 |   |   |   | 99,520 |   |
| Securities      held tomaturity                          |   | $                 | 13,219,272 |   |   | $ | 14,884,982 |   |   | $ | 13,005,364 |   |

----

|                                                     |   | December      31, 2007 |    |
|----------------------------------------------------------|--------|------------------------|---------|
|                                                     |   | Due      Under 1 Year  |    |   | Due      1-5 Years |   |   | Due      5-10 Years |   |   | Due      Over 10 Years |   |   | Total |   |
|                                                     |   | Amount                 |    |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |
| (dollars      in thousands)                              |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      available for sale:                      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Government agency                              |   | $                      | 132,883 |   |   |   | 1.08 | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 132,883 |   |   |   | 1.08 | % |
| U.S.      Government-Sponsored agency                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 1,009,475 |   |   |   | 5.43 |   |   |   | 1,009,475 |   |   |   | 5.43 |   |
| Mortgage-backed      obligations                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,132,046 |   |   |   | 5.67 |   |   |   | 5,132,046 |   |   |   | 5.67 |   |
| Obligations      of state andpolitical      subdivisions |   |                   | 740     |   |   |   | 5.50 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 52,536 |   |   |   | 6.86 |   |   |   | 53,276 |   |   |   | 6.85 |   |
| Asset      back securities                               |   |                   |    |   |   |   |   |   |   | $ | 825,087 |   |   |   | 5.26 | % |   | $ | 4,577,226 |   |   |   | 5.21 | % |   |   | 1,186,773 |   |   |   | 5.38 |   |   |   | 6,589,086 |   |   |   | 5.25 |   |
| Other      securities                                    |   |                   | 14,463  |   |   |   | 3.00 |   |   |   | 1,095 |   |   |   | 4.87 |   |   |   |   |   |   |   |   |   |   |   | 27,085 |   |   |   | 6.11 |   |   |   | 42,643 |   |   |   | 5.05 |   |
|                                                     |   | $                      | 148,086 |   |   |   | 1.29 | % |   | $ | 826,182 |   |   |   | 5.26 | % |   | $ | 4,577,226 |   |   |   | 5.21 | % |   | $ | 7,407,915 |   |   |   | 5.60 | % |   | $ | 12,959,409 |   |   |   | 5.04 | % |
| Securities      held to maturity:                        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Government agency                              |   |                   |    |   |   |   |   |   |   | $ | 565,753 |   |   |   | 4.22 | % |   | $ | 25,000 |   |   |   | 6.13 | % |   | $ | 30,000 |   |   |   | 5.25 | % |   | $ | 620,753 |   |   |   | 4.34 | % |
| U.S.      Government-Sponsored agency                    |   |                   |    |   |   |   |   |   |   |   | 6,237 |   |   |   | 7.05 |   |   |   | 27,826 |   |   |   | 5.51 |   |   |   | 6,652,107 |   |   |   | 5.29 |   |   |   | 6,686.170 |   |   |   | 5.30 |   |
| Mortgage-backed      obligations                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,333,834 |   |   |   | 5.45 |   |   |   | 5,333,834 |   |   |   | 5.45 |   |
| Obligations      of state andpolitical      subdivisions |   | $                      | 312,569 |   |   |   | 5.58 | % |   |   | 4,695 |   |   |   | 5.63 |   |   |   | 93,305 |   |   |   | 6.13 |   |   |   | 22,826 |   |   |   | 6.37 |   |   |   | 433,395 |   |   |   | 5.74 |   |
| Other      securities                                    |   |                   | 145,120 |   |   |   | 5.26 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 145,120 |   |   |   | 5.26 |   |
|                                                     |   | $                      | 457,689 |   |   |   | 5.48 | % |   | $ | 576,685 |   |   |   | 4.26 | % |   | $ | 146,131 |   |   |   | 6.01 | % |   | $ | 12,038,767 |   |   |   | 5.36 | % |   | $ | 13,219,272 |   |   |   | 5.33 | % |

|       |   | December      31, |   |
|------------|--------|-------------------|--------|
|       |   | 2007              |   |   | 2006 |   |
| Consumer   |   | $                 | 19,061 |   |   | $ | 16,624 |   |
| Commercial |   |              | 17,606 |   |   |   | 15,768 |   |
| Government |   |              | 7,930  |   |   |   | 7,685 |   |
| Total      |   | $                 | 44,597 |   |   | $ | 40,077 |   |

----

|                                                         |   | 2007    |       |   | 2006    |   |   | 2005    |   |
|--------------------------------------------------------------|--------|---------|------------|--------|---------|--------|--------|---------|--------|
|                                                         |   | Average |       |   | Average |   |   | Average |   |   | Average |   |   | Average |   |   | Average |   |
|                                                         |   | Balance |       |   | Rate    |   |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |
| (dollars      in thousands)                                  |   |    |       |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits:                                        |   |    |       |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                                          |   | $       | 8,915,356  |   |    |   |   |    | $      | 8,269,158 |   |   |   |   |   | $ | 7,143,552 |   |   |   |   |
| Interest-bearing      (money market andN.O.W.      accounts) |   |    | 19,301,275 |   |    |   | 3.58   | %       |   |   | 14,867,213 |   |   |   | 3.33 | % |   |   | 12,474,260 |   |   |   | 2.03 | % |
| Savings      deposits                                        |   |    | 10,435,825 |   |    |   | 2.77   |    |   |   | 10,326,719 |   |   |   | 2.53 |   |   |   | 7,698,370 |   |   |   | 1.60 |   |
| Time      deposits/public funds                              |   |    | 5,397,313  |   |    |   | 4.64   |    |   |   | 4,618,523 |   |   |   | 4.11 |   |   |   | 3,565,002 |   |   |   | 2.77 |   |
| Total      deposits                                          |   | $       | 44,049,769 |   |    |   |   |    |   | $ | 38,081,613 |   |   |   |   |   |   | $ | 30,881,184 |   |   |   |   |   |

| Maturity                    |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|-----------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| (dollars      in thousands) |   |   |      |   |   |   |      |   |   |
| 3      months or less       |   | $      | 1,943,266 |   |   | $      | 1,453,925 |   |   | $ | 1,088,353 |   |
| 3      to 6 months          |   |   | 506,785   |   |   |   | 694,344   |   |   |   | 198,166 |   |
| 6      to 12 months         |   |   | 288,762   |   |   |   | 350,651   |   |   |   | 272,156 |   |
| Over      12 months         |   |   | 63,439    |   |   |   | 110,457   |   |   |   | 538,952 |   |
| Total                       |   | $      | 2,802,252 |   |   | $      | 2,609,377 |   |   | $ | 2,097,627 |   |

| Maturity                    |   |   |      |
|-----------------------------|--------|--------|-----------|
| (dollars      in thousands) |   |   |      |
| 2008                        |   | $      | 5,323,076 |   |
| 2009                        |   |   | 129,987   |   |
| 2010                        |   |   | 40,728    |   |
| 2011                        |   |   | 11,309    |   |
| 2012                        |   |   | 11,986    |   |
| Thereafter                  |   |   | 8         |   |
| Total                       |   | $      | 5,517,094 |   |

----

|                                                                                 |   | Interest      Rate Sensitivity Gaps |     |
|--------------------------------------------------------------------------------------|--------|-------------------------------------|----------|
|                                                                                 |   | December      31, 2007              |     |
|                                                                                 |   | 1-90Days                            |     |   | 91-180Days |   |   | 181-365Days |   |   | 1-5Years |   |   | Beyond5      Years |   |   | Total |   |
| (dollars      in millions)                                                           |   |                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rate      sensitive:                                                                 |   |                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earningassets                                                               |   |                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                                |   | $                                   | 6,449.7  |   |   | $ | 409.2 |   |   | $ | 870.8 |   |   | $ | 4,776.6 |   |   | $ | 5,265.2 |   |   | $ | 17,771.5 |   |
| Investment securities                                                           |   |                                | 10,016.1 |   |   |   | 567.9 |   |   |   | 1,080.4 |   |   |   | 7,602.2 |   |   |   | 7,158.1 |   |   |   | 26,424.7 |   |
| Federal      funds sold                                                         |   |                                | 925.5    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 925.5 |   |
| Total      interest-earning assets                                                   |   |                                | 17,391.3 |   |   |   | 977.1 |   |   |   | 1,951.2 |   |   |   | 12,378.8 |   |   |   | 12,423.3 |   |   |   | 45,121.7 |   |
| Interest-bearingliabilities                                                          |   |                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transactionaccounts                                                                  |   |                                | 9,925.0  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 20,938.8 |   |   |   | 30,863.8 |   |
| Time deposits                                                                        |   |                                | 2,983.4  |   |   |   | 1,391.9 |   |   |   | 947.8 |   |   |   | 194.0 |   |   |   |   |   |   |   | 5,517.1 |   |
| Other borrowedmoney                                                                  |   |                                | 101.0    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 101.0 |   |
| Total      interest-bearingliabilities                                               |   |                                | 13,009.4 |   |   |   | 1,391.9 |   |   |   | 947.8 |   |   |   | 194.0 |   |   |   | 20,938.8 |   |   |   | 36,481.9 |   |
| Period      gap                                                                      |   |                                | 4,381.9  |   |   |   | (414.8 | ) |   |   | 1,003.4 |   |   |   | 12,184.8 |   |   |   | (8,515.5 | ) |   | $ | 8,639.8 |   |
| Cumulative      gap                                                                  |   | $                                   | 4,381.9  |   |   | $ | 3,967.1 |   |   | $ | 4,970.5 |   |   | $ | 17,155.3 |   |   | $ | 8,639.8 |   |   |   |   |   |
| Cumulative      gap as  a percentage of total interest-earning      assets |   |                                | 9.7      | % |   |   | 8.8 | % |   |   | 11.0 | % |   |   | 38.0 | % |   |   | 19.1 | % |   |   |   |   |

|                    |   | Basis      Point Change: |   |
|-------------------------|--------|--------------------------|--------|
|                    |   | Plus      200            |   |   | Minus      100 |   |
| December      31, 2007: |   |                     |   |   |   |   |
| Twelve      Months      |   |                     | 0.8    | % |   |   | (2.8 | )% |
|                    |   |                     |   |   |   |   |   |   |
| December      31, 2006: |   |                     |   |   |   |   |   |   |
| Twelve      Months      |   |                     | (2.0   | )% |   |   | 0.9 | % |

----

|                       |   | Market      Value of Equity |    |   | Per      Share |   |
|----------------------------|--------|-----------------------------|---------|--------|----------------|--------|
|                       |   |                        |    |   |           |   |
| Plus      200 basis point  |   | $                           | 8,679.6 |   |           | $      | 43.90 |   |
| Current      Rate          |   | $                           | 8,466.3 |   |           | $      | 42.82 |   |
| Minus      100 basis point |   | $                           | 7,244.8 |   |           | $      | 36.64 |   |

----

|                            |   | December      31, |   |   | MinimumRegulatory      Requirements |   |
|---------------------------------|--------|-------------------|--------|--------|-------------------------------------|--------|
|                            |   | 2007              |   |   | 2006                                |   |   | 2007 |   |   | 2006 |   |
| Risk      based capital ratios: |   |              |   |   |                                |   |   |   |   |   |
| Tier      1                     |   |              | 11.21  | %      |                                |   | 11.73 | % |   |   | 4.00 | % |   |   | 4.00 | % |
| Total      capital              |   |              | 12.04  |   |                                |   | 12.44 |   |   |   | 8.00 |   |   |   | 8.00 |   |
| Leverage      ratio             |   |              | 6.01   |   |                                |   | 6.18 |   |   |   | 4.00 |   |   |   | 4.00 |   |

|   Common      Share Data |   |
|------------------------------------|--------|
|                               |   | Market      Prices |   |   | Dividends      Declared |   |
|                               |   | High |   |   | Low |   |   | Per      Share |   |
| 2007      Quarter Ended            |   |   |   |   |   |   |   |   |   |
|  December      31             |   | $ | 40.75 |   |   | $ | 34.96 |   |   | $ | 0.1300 |   |
|  September      30            |   | $ | 39.51 |   |   | $ | 33.15 |   |   | $ | 0.1300 |   |
|  June      30                 |   | $ | 36.99 |   |   | $ | 31.71 |   |   | $ | 0.1300 |   |
|  March      31                |   | $ | 35.52 |   |   | $ | 31.04 |   |   | $ | 0.1300 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
| 2006      Quarter Ended            |   |   |   |   |   |   |   |   |   |   |   |   |
|  December      31             |   | $ | 37.05 |   |   | $ | 34.51 |   |   | $ | 0.1300 |   |
|  September      30            |   | $ | 36.73 |   |   | $ | 31.64 |   |   | $ | 0.1200 |   |
|  June      30                 |   | $ | 40.96 |   |   | $ | 34.25 |   |   | $ | 0.1200 |   |
|  March      31                |   | $ | 36.77 |   |   | $ | 32.06 |   |   | $ | 0.1200 |   |

| Contractual      Obligations(1)         |   | Payments      Due By Period     |     |
|-----------------------------------------|--------|---------------------------------|----------|
|                                    |   | One      Year or      Less      |     |   | One      to Three Years |   |   | Three      to Five Years |   |   | BeyondFive      Years |   |   | Total |   |
| (dollars      in millions)              |   |                            |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits      without a stated maturity |   | $                               | 12,822.4 |   |   |   |   |   |   |   |   | $ | 27,699.3 |   |   | $ | 40,521.7 |   |
| Time      deposits                      |   |                            | 5,323.1  |   |   | $ | 170.7 |   |   | $ | 23.3 |   |   |   |   |   |   |   | 5,517.1 |   |
| Other      borrowed money               |   |                            | 101.0    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 101.0 |   |
| Operating      leases                   |   |                            | 82.0     |   |   |   | 163.0 |   |   |   | 168.2 |   |   |   | 854.3 |   |   |   | 1,267.5 |   |
| Total                                   |   | $                               | 18,328.5 |   |   | $ | 333.7 |   |   | $ | 191.5 |   |   | $ | 28,553.6 |   |   | $ | 47,407.3 |   |
|                                    |   |                            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments                             |   | Expiration      by Period       |     |
|                                    |   | One      Year or      Less |     |   | One      to Three Years |   |   | Three      to Five Years |   |   | Beyond      Five Years |   |   | Total |   |
| (dollars      in millions)              |   |                            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Standby      letters of credit          |   | $                               | 702.8    |   |   | $ | 266.6 |   |   | $ | 193.9 |   |   | $ | 48.5 |   |   | $ | 1,211.8 |   |
| Lines      of credit                    |   |                            | 2,867.4  |   |   |   | 632.4 |   |   |   | 645.6 |   |   |   | 102.7 |   |   |   | 4,248.1 |   |
| Commitments      to extend credit:      |   |                            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction                            |   |                            | 419.0    |   |   |   | 232.2 |   |   |   | 1.9 |   |   |   | 22.4 |   |   |   | 675.5 |   |
| Home      equity                        |   |                            | 80.0     |   |   |   | 159.9 |   |   |   | 159.9 |   |   |   | 799.6 |   |   |   | 1,199.4 |   |
| Other                                   |   |                            | 366.0    |   |   |   | 632.2 |   |   |   | 27.4 |   |   |   | 48.2 |   |   |   | 1,073.8 |   |
| Total                                   |   | $                               | 4,435.2  |   |   | $ | 1,923.3 |   |   | $ | 1,028.7 |   |   | $ | 1,021.4 |   |   | $ | 8,408.6 |   |

----

----

Item7A.                      Quantitativeand Qualitative Disclosures About Market Risk

----

Item8.                 FinancialStatements and Supplementary Data

Report on Management’s Assessment of Internal Control OverFinancial Reporting

|   | /s/      Dennis M. DiFlorio                               |
|--------|-----------------------------------------------------------|
|   | Dennis      M. DiFlorio                                   |
|   | Chairman,      Commerce Bank NA                           |
|   |                                                      |
|   |                                                      |
|   | /s/      Douglas J. Pauls                                 |
|   | Douglas      J. Pauls                                     |
|   | Executive      Vice President and Chief Financial Officer |
|   | (Principal      Financial and Accounting Officer)         |

----

|   | /s/      Ernst & Young LLP |
|--------|--------------------------------|

----

|   | /s/      Ernst & Young LLP |
|--------|--------------------------------|

----

 Consolidated Balance Sheets

|                      |                                                                                | December      31 |
|---------------------------|-------------------------------------------------------------------------------------|------------------|
|                      | (dollars      in thousands)                                                         |             | 2007 |   |   | 2006 |
| Assets                    | Cash      and due from banks                                                        | $                | 1,331,139 |   | $ | 1,207,390 |
|                      | Federal      funds sold                                                             |             | 925,500 |   |   | 9,300 |
|                      | Cash      and cash equivalents                                                      |             | 2,256,639 |   |   | 1,216,690 |
|                      | Loans      held for sale                                                            |             | 34,349 |   |   | 52,741 |
|                      | Trading      securities                                                             |             | 225,786 |   |   | 106,007 |
|                      | Securities      available for sale                                                  |             | 12,979,618 |   |   | 11,098,113 |
|                      | Securities      held to maturity                                                    |             | 13,219,272 |   |   | 14,884,982 |
|                      | (market      value 2007 - $12,604,659; 2006 - $14,617,765)                          |             |   |   |   |   |
|                      | Loans                                                                               |             | 17,841,518 |   |   | 15,607,049 |
|                      | Less      allowance for loan and lease losses                                       |             | 203,193 |   |   | 152,053 |
|                      |                                                                                |             | 17,638,325 |   |   | 15,454,996 |
|                      | Bank      premises and equipment, net                                               |             | 2,077,748 |   |   | 1,753,670 |
|                      | Goodwill      and other intangible assets                                           |             | 136,713 |   |   | 141,631 |
|                      | Other      assets                                                                   |             | 687,056 |   |   | 562,986 |
|                      | Total      assets                                                                   | $                | 49,255,506 |   | $ | 45,271,816 |
| Liabilities               | Deposits:                                                                           |             |   |   |   |   |
|                      | Demand:                                                                             |             |   |   |   |   |
|                      | Noninterest-bearing                                                                 | $                | 9,657,798 |   | $ | 8,936,824 |
|                      | Interest-bearing                                                                    |             | 20,877,932 |   |   | 16,853,457 |
|                      | Savings                                                                             |             | 9,985,927 |   |   | 10,459,306 |
|                      | Time                                                                                |             | 5,517,094 |   |   | 5,038,624 |
|                      | Total      deposits                                                                 |             | 46,038,751 |   |   | 41,288,211 |
|                      |                                                                                |             |   |   |   |   |
|                      | Other      borrowed money                                                           |             | 100,954 |   |   | 777,404 |
|                      | Other      liabilities                                                              |             | 331,843 |   |   | 405,103 |
|                      | Total      liabilities                                                              |             | 46,471,548 |   |   | 42,470,718 |
| Stockholders'      Equity | Common      stock, 197,710,812 shares issued (189,738,423 shares in    2006)        |             |  197,711 |   |   |  189,738 |
|                      | Capital      in excess of par value                                                 |             | 1,941,931 |   |   | 1,744,691 |
|                      | Retained      earnings                                                              |             | 993,921 |   |   | 958,770 |
|                      | Accumulated      other comprehensive loss                                           |             | (297,112) |   |   | (65,240) |
|                      |                                                                                |             | 2,836,451 |   |   | 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                                                     |             | 2,783,958 |   |   | 2,801,098 |
|                      | Total      liabilities and stockholders' equity                                     | $                | 49,255,506 |   | $ | 45,271,816 |
|                      | See      accompanying notes.                                                        |             |   |   |   |   |

----

|        |                                                         | Year      Ended December 31, |
|-------------|--------------------------------------------------------------|------------------------------|
|        | (dollars      in thousands, except per share amounts)        |                         | 2007 |   | 2006 |   | 2005 |
| Interest    | Interest      and fees on loans                              | $                            | 1,135,317 | $ | 970,270 | $ | 680,552 |
| Income      | Interest      on investment securities                       |                         | 1,491,552 |   | 1,301,928 |   | 981,420 |
|        | Other      interest                                          |                         | 16,075 |   | 6,926 |   | 3,272 |
|        | Total      interest income                                   |                         | 2,642,944 |   | 2,279,124 |   | 1,665,244 |
|        |                                                         |                         |   |   |   |   |   |
| Interest    | Interest      on deposits:                                   |                         |   |   |   |   |   |
| Expense     | Demand                                                       |                         | 690,059 |   | 495,147 |   | 252,674 |
|        | Savings                                                      |                         | 288,673 |   | 261,428 |   | 123,419 |
|        | Time                                                         |                         | 250,530 |   | 189,944 |   | 98,780 |
|        | Total      interest on deposits                              |                         | 1,229,262 |   | 946,519 |   | 474,873 |
|        | Interest      on other borrowed money                        |                         | 20,065 |   | 58,097 |   | 28,410 |
|        | Interest      on long-term debt                              |                         |   |   |   |   | 8,379 |
|        | Total      interest expense                                  |                         | 1,249,327 |   | 1,004,616 |   | 511,662 |
|        |                                                         |                         |   |   |   |   |   |
|        | Net      interest income                                     |                         | 1,393,617 |   | 1,274,508 |   | 1,153,582 |
|        | Provision      for credit losses                             |                         | 103,550 |   | 33,700 |   | 19,150 |
|        | Net      interest income after provision for credit losses   |                         | 1,290,067 |   | 1,240,808 |   | 1,134,432 |
|        |                                                         |                         |   |   |   |   |   |
| Noninterest | Deposit      charges and service fees                        |                         | 468,854 |   | 374,210 |   | 282,692 |
| Income      | Other      operating income                                  |                         | 242,276 |   | 214,246 |   | 174,132 |
|        | Net      investment securities (losses) gains                |                         | (174,376) |   |        2,697 |   | (14,030) |
|        | Total      noninterest income                                |                         | 536,754 |   | 591,153 |   | 442,794 |
|        |                                                         |                         |   |   |   |   |   |
| Noninterest | Salaries      and benefits                                   |                         | 716,689 |   | 614,627 |   | 526,428 |
| Expense     | Occupancy                                                    |                         | 251,352 |   | 196,498 |   | 165,077 |
|        | Furniture      and equipment                                 |                         | 183,808 |   | 161,075 |   | 126,986 |
|        | Office                                                       |                         | 67,890 |   | 62,234 |   | 55,833 |
|        | Marketing                                                    |                         | 48,165 |   | 42,737 |   | 37,261 |
|        | Other                                                        |                         | 343,335 |   | 278,590 |   | 234,795 |
|        | Total      noninterest expense                               |                         | 1,611,239 |   | 1,355,761 |   | 1,146,380 |
|        | Income      before income taxes                              |                         | 215,582 |   | 476,200 |   | 430,846 |
|        | Provision      for federal and state income taxes            |                         | 75,294 |   | 176,887 |   | 147,907 |
|        | Net      income                                              | $                            | 140,288 | $ | 299,313 | $ | 282,939 |
|        |                                                         |                         |   |   |   |   |   |
|        | Net      income per common and common equivalent share:      |                         |   |   |   |   |   |
|        | Basic                                                        | $                            | 0.73 | $ | 1.62 | $ | 1.70 |
|        | Diluted                                                      | $                            | 0.71 | $ | 1.55 | $ | 1.61 |
|        | Average      common and common equivalent sharesoutstanding: |                         |   |   |   |   |   |
|        | Basic                                                        |                         | 192,204 |   | 184,919 |   | 165,974 |
|        | Diluted                                                      |                         | 198,506 |   | 193,674 |   | 179,135 |
|        | Dividends      declared, common stock                        | $                            | 0.52 | $ | 0.49 | $ | 0.45 |
|        | See      accompanying notes.                                 |                         |   |   |   |   |   |

----

|       |                                                             | Year      Ended December 31, |
|------------|------------------------------------------------------------------|------------------------------|
|       | (dollars      in thousands)                                      |                         | 2007 |   |   | 2006 |   |   | 2005 |   |
| Operating  | Net      income                                                  | $                            | 140,288 |   | $ | 299,313 |   | $ | 282,939 |   |
| Activities | Adjustments      to reconcile net income to net cash             |                         |   |   |   |   |   |   |   |   |
|       | provided      by operating activities:                           |                         |   |   |   |   |   |   |   |   |
|       | Provision      for credit losses                                 |                         | 103,550 |   |   | 33,700 |   |   | 19,150 |   |
|       | Provision      for depreciation, amortization and accretion      |                         | 188,542 |   |   | 156,560 |   |   | 163,502 |   |
|       | Stock-based      compensation expense                            |                         | 17,045 |   |   | 7,376 |   |   |   |   |
|       | Loss      (gain) on sales of securities                          |                         | 174,376 |   |   | (2,697 | ) |   | 14,030 |   |
|       | Proceeds      from sales of loans held for sale                  |                         | 748,148 |   |   | 745,391 |   |   | 1,001,884 |   |
|       | Originations      of loans held for sale                         |                         | (729,756 | ) |   | (760,691 | ) |   | (738,402 | ) |
|       | Net      activity in trading securities                          |                         | 7,078,489 |   |   | 37,009 |   |   | 26,087 |   |
|       | Increase      in other assets, net                               |                         | (6,318 | ) |   | (91,612 | ) |   | (78,898 | ) |
|       | (Decrease)      increase in other liabilities                    |                         | (43,785 | ) |   | 88,134 |   |   | 32,666 |   |
|       | Deferred      income tax benefit                                 |                         | (35,035 | ) |   | (23,414 | ) |   | (17,612 | ) |
|       | Net      cash provided by operating activities                   |                         | 7,635,544 |   |   | 489,069 |   |   | 705,346 |   |
|       |                                                             |                         |   |   |   |   |   |   |   |   |
| Investing  | Proceeds      from the sales of securities available for sale    |                         | 457,890 |   |   | 421,455 |   |   | 3,722,875 |   |
| Activities | Proceeds      from the maturity of securities available for sale |                         | 2,760,468 |   |   | 2,883,670 |   |   | 2,732,109 |   |
|       | Proceeds      from the maturity of securities held to maturity   |                         | 3,471,436 |   |   | 2,227,077 |   |   | 2,627,750 |   |
|       | Purchase      of securities available for sale                   |                         | (12,829,043 | ) |   | (4,897,038 | ) |   | (8,046,583 | ) |
|       | Purchase      of securities held to maturity                     |                         | (1,813,333 | ) |   | (4,118,321 | ) |   | (5,191,021 | ) |
|       | Net      increase in loans                                       |                         | (2,286,582 | ) |   | (2,971,024 | ) |   | (3,160,857 | ) |
|       | Capital      expenditures                                        |                         | (486,155 | ) |   | (512,312 | ) |   | (424,476 | ) |
|       | Cash      acquired in purchase acquisition                       |                         |   |   |   |   |   |   | 5,664 |   |
|       | Net      cash used by investing activities                       |                         | (10,725,319 | ) |   | (6,966,493 | ) |   | (7,734,539 | ) |
|       |                                                             |                         |   |   |   |   |   |   |   |   |
| Financing  | Net      increase in demand and savings deposits                 |                         | 4,272,070 |   |   | 5,456,319 |   |   | 6,138,554 |   |
| Activities | Net      increase in time deposits                               |                         | 478,470 |   |   | 1,105,179 |   |   | 626,949 |   |
|       | Net      (decrease) increase in other borrowed money             |                         | (676,450 | ) |   | (329,039 | ) |   | 445,248 |   |
|       | Dividends      paid                                              |                         | (99,601 | ) |   | (88,192 | ) |   | (72,363 | ) |
|       | Redemption      of long term debt                                |                         |   |   |   |   |   |   | (57,255 | ) |
|       | Proceeds      from issuance of common stock under                |                         |   |   |   |   |   |   |   |   |
|       | dividend      reinvestment and other stock plans                 |                         | 155,235 |   |   | 253,050 |   |   | 194,022 |   |
|       | Other                                                            |                         |   |   |   | 33 |   |   | (4 | ) |
|       | Net      cash provided by financing activities                   |                         | 4,129,724 |   |   | 6,397,350 |   |   | 7,275,151 |   |
|       |                                                             |                         |   |   |   |   |   |   |   |   |
|       | Increase      (decrease) in cash and cash equivalents            |                         | 1,039,949 |   |   | (80,074 | ) |   | 245,958 |   |
|       | Cash      and cash equivalents at beginning of year              |                         | 1,216,690 |   |   | 1,296,764 |   |   | 1,050,806 |   |
|       | Cash      and cash equivalents at end of year                    | $                            | 2,256,639 |   | $ | 1,216,690 |   | $ | 1,296,764 |   |
|       |                                                             |                         |   |   |   |   |   |   |   |   |
|       | Supplemental      disclosures of cash flow information:          |                         |   |   |   |   |   |   |   |   |
|       | Cash      paid during the year for:                              |                         |   |   |   |   |   |   |   |   |
|       | Interest                                                         | $                            | 1,249,533 |   | $ | 980,656 |   | $ | 506,574 |   |
|       | Income      taxes                                                |                         | 123,700 |   |   | 153,447 |   |   | 151,757 |   |
|       | Other      noncash activities:                                   |                         |   |   |   |   |   |   |   |   |
|       | Transfer      of loans to held for sale                          |                         |   |   |   | 7,350 |   |   | 249,500 |   |
|       | Transfer      of available for sale securities to trading        |                         | 7,375,523 |   |   |   |   |   |   |   |
|       | Fair      value of non-cash assets and liabilities acquired:     |                         |   |   |   |   |   |   |   |   |
|       | Assets      acquired                                             |                         | 75 |   |   | 43,091 |   |   | 380,191 |   |
|       | Liabilities      assumed                                         |                         | 24 |   |   | 14,091 |   |   | 366,160 |   |
|       | See      accompanying notes.                                     |                         |   |   |   |   |   |   |   |   |

----

| Years      ended December 31, 2007, 2006 and 2005                                                     |   |        |    |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|
|  (in      thousands)                                                                             |   | CommonStock |    |   | Capital      in Excess of Par Value |   |   | Retained      Earnings |   |   | TreasuryStock |   |   | Accumulated      Other Compre-hensive Income (Loss) |   |   | Total |   |
| Balances      at December 31, 2004                                                                    |   | $           | 160,636 |   |   | $ | 951,476 |   |   | $ | 543,978 |   |   | $ | (11,338 | ) |   | $ | 20,953 |   |   | $ | 1,665,705 |   |
| Net      income                                                                                       |   |        |    |   |   |   |   |   |   |   | 282,939 |   |   |   |   |   |   |   |   |   |   |   | 282,939 |   |
| Other      comprehensive loss, net of tax                                                             |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      loss on securities (pre-tax $136,027)                                                 |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (85,768 | ) |   |   | (85,768 | ) |
| Reclassification      adjustment (pre-tax $8,686)                                                     |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,646 |   |   |   | 5,646 |   |
| Other      comprehensive loss                                                                         |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (80,122 | ) |
| Total      comprehensive income                                                                       |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 202,817 |   |
| Cash      dividends declared                                                                          |   |        |    |   |   |   |   |   |   |   | (76,203 | ) |   |   |   |   |   |   |   |   |   |   | (76,203 | ) |
| Shares      issued under dividend reinvestment and compensation and benefit plans      (7,933 shares) |   |        | 7,933   |   |   |   | 185,144 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 193,077 |   |
| Shares      issued upon redemption of Convertible Trust Capital Securities (7,576      shares)        |   |        | 7,576   |   |   |   | 187,493 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 195,069 |   |
| Acquisition      of  Palm Beach County Bank (3,325 shares)                                  |   |        | 3,325   |   |   |   | 109,309 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 112,634 |   |
| Acquisition      of insurance brokerage agency (29 shares)                                            |   |        | 29      |   |   |   | 797 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 826 |   |
| Other                                                                                                 |   |        |    |   |   |   | 16,624 |   |   |   | (4 | ) |   |   | (1,372 | ) |   |   |   |   |   |   | 15,248 |   |
| Balances      at December 31, 2005                                                                    |   | $           | 179,499 |   |   | $ | 1,450,843 |   |   | $ | 750,710 |   |   | $ | (12,710 | ) |   | $ | (59,169 | ) |   | $ | 2,309,173 |   |
| Net      income                                                                                       |   |        |    |   |   |   |   |   |   |   | 299,313 |   |   |   |   |   |   |   |   |   |   |   | 299,313 |   |
| Other      comprehensive loss,  net of tax                                                  |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      loss on securities (pre-tax $8,454)                                                   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (5,010 | ) |   |   | (5,010 | ) |
| Reclassification      adjustment (pre-tax $1,632)                                                     |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,061 | ) |   |   | (1,061 | ) |
| Other      comprehensive loss                                                                         |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,071 | ) |
| Total      comprehensive income                                                                       |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 293,242 |   |
| Cash      dividends declared                                                                          |   |        |    |   |   |   |   |   |   |   | (91,252 | ) |   |   |   |   |   |   |   |   |   |   | (91,252 | ) |
| Shares      issued under dividend reinvestment and compensation and benefit plans      (9,379 shares) |   |        | 9,379   |   |   |   | 257,799 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 267,178 |   |
| Acquisition      of eMoney Advisors (860 shares)                                                      |   |        | 860     |   |   |   | 28,140 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 29,000 |   |
| Other                                                                                                 |   |        |    |   |   |   | 7,909 |   |   |   | (1 | ) |   |   | (14,151 | ) |   |   |   |   |   |   | (6,243 | ) |
| Balances      at December 31, 2006                                                                    |   | $           | 189,738 |   |   | $ | 1,744,691 |   |   | $ | 958,770 |   |   | $ | (26,861 | ) |   | $ | (65,240 | ) |   | $ | 2,801,098 |   |
| Net      income                                                                                       |   |        |    |   |   |   |   |   |   |   | 140,288 |   |   |   |   |   |   |   |   |   |   |   | 140,288 |   |
| Other      comprehensive loss,  net of tax                                                  |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      loss on securities (pre-tax $459,358)                                                 |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (300,383 | ) |   |   | (300,383 | ) |
| Reclassification      adjustment (pre-tax $105,402)                                                   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 68,511 |   |   |   | 68,511 |   |
| Other      comprehensive loss                                                                         |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (231,872 | ) |
| Total      comprehensive loss                                                                         |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (91,584 | ) |
| Cash      dividends declared                                                                          |   |        |    |   |   |   |   |   |   |   | (100,550 | ) |   |   |   |   |   |   |   |   |   |   | (100,550 | ) |
| Shares      issued under dividend reinvestment and compensation and benefit plans      (7,747 shares) |   |        | 7,747   |   |   |   | 173,107 |   |   |   |   |   |   |   | (25,669 | ) |   |   |   |   |   |   | 155,185 |   |
| Acquisition      of insurance brokerage agency (226 shares)                                           |   |        | 226     |   |   |   | 7,074 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,300 |   |
| Other                                                                                                 |   |        |    |   |   |   | 17,059 |   |   |   | (4,587 | ) |   |   | 37 |   |   |   |   |   |   |   | 12,509 |   |
| Balances      at December 31, 2007                                                                    |   | $           | 197,711 |   |   | $ | 1,941,931 |   |   | $ | 993,921 |   |   | $ | (52,493 | ) |   | $ | (297,112 | ) |   | $ | 2,783,958 |   |
| See      accompanying notes.                                                                          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | SignificantAccountingPolicies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Basis      of Presentation |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
| The      consolidated financial statements include the accounts of Commerce      Bancorp, Inc. (the Company) and its consolidated      subsidiaries.  All material intercompany transactions have been      eliminated. Certain amounts from prior years have been reclassified to      conform with the current year presentation. The consolidated financial      statements have been prepared based on the Company continuing as a going      concern, without consideration for what the merger with The      Toronto-Dominion Bank (refer to Note 2 – Agreement and Plan of Merger with      The Toronto-Dominion Bank) could have on the estimates, assumptions or      assertions made by the Company in the preparation of the consolidated      financial statements. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | The      Company is a multi-bank holding company headquartered in Cherry Hill, New      Jersey, operating primarily in the metropolitan New York, metropolitan      Philadelphia, metropolitan Washington, D.C. and Southeastern Florida      markets. Through its subsidiaries, the Company provides retail and      commercial banking services, corporate trust services, certain insurance      brokerage services, and certain securities services.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | The      preparation of financial statements in conformity with U.S. generally      accepted accounting principles requires management to make estimates and      assumptions that affect the amounts reported in the financial statements      and accompanying notes. Actual results could differ from those      estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Stock      Split                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Per      share data and other appropriate share information for all periods      presented have been restated for the two-for-one stock split in the form      of a 100% stock dividend effective March 7, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Business      Combinations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Business      combinations are accounted for under the purchase method of      accounting.  Under the purchase method, assets and liabilities      of the business acquired are recorded at their estimated fair values as of      the date of acquisition with any excess of the cost of the acquisition      over the fair value of the net tangible and intangible assets acquired      recorded as goodwill.  Results of operations of the acquired      business are included in the income statement from the date of      acquisition.                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Cash      and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Cash      and cash equivalents are defined as short-term investments, which have an      original maturity of three months or less and are readily convertible into      cash.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Investment      Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Investment      securities are classified as held to maturity when the Company has the      intent and ability to hold those securities to maturity. Securities held      to maturity are stated at cost and adjusted for accretion of discounts and      amortization of premiums.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Those      securities that could be sold in response to changes in interest rates,      prepayment risk, the Company's income tax position, the need to increase      regulatory capital, or other similar factors are classified as available      for sale. Available for sale securities are carried at fair value, with      unrealized gains and losses, net of tax, reported as a component of      stockholders' equity. Refer to Note 18 – Fair Value of Financial      Instruments for a discussion of the Company’s assumptions and methods used      to determine the fair value of its investment securities. The amortized      cost of debt securities in this category is adjusted for accretion of      discounts and amortization of premiums. Realized gains and losses are      determined on the specific identification method and are included in      noninterest income. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | The      Company reviews the fair value of the investment portfolio and evaluates      individual securities for declines in fair value that may be other than      temporary.  If declines are deemed other than temporary, an      impairment loss is recognized and the security is written down to its      current fair value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | The      trading portfolio is primarily securities maintained by Commerce Capital      Markets, Inc. (CCMI) for distribution to its customers in order to meet      their needs.  Trading securities are carried at market. Gains      and losses, both realized and unrealized, are included in other operating      income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

|   | Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Loans      are stated at principal amounts outstanding, net of deferred loan      origination fees and costs. Interest income on loans is accrued and      credited to interest income monthly as earned. Loans held for sale are      valued on an aggregate basis at the lower of cost or fair      value.  Net deferred loan origination fees and costs are      amortized over the estimated lives of the related loans as an adjustment      to the yield.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Loans      are placed on a non-accrual status and cease accruing interest when loan      payment performance is deemed unsatisfactory.  However, all      loans past due 90 days are placed on non-accrual status, unless the loan      is both well secured and in the process of collection.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Allowance      for Credit Losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The      Company maintains an allowance for losses inherent in the loan and lease      portfolio and an allowance for losses on unfunded credit      commitments.  The allowance for credit losses is increased by      provisions charged to expense and reduced by charge-offs net of      recoveries. The level of the allowance for loan and lease losses is based      on an evaluation of individual large classified loans and nonaccrual      loans, estimated losses based on risk characteristics of loans in the      portfolio and other qualitative factors.  The level of the      allowance for losses on unfunded credit commitments is based on a risk      characteristic methodology similar to that used in determining the      allowance for loan and lease losses, taking into consideration the      probability of funding these commitments.  While the allowance      for credit losses is maintained at a level considered to be adequate by      management for estimated credit losses, determination of the allowance is      inherently subjective, as it requires estimates that may be susceptible to      significant change. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Transfers      of Financial Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | The      Company accounts for the transfers of financial assets, including sales of      loans, as sales when control over the asset has been      surrendered.  Control over transferred assets is deemed to be      surrendered when (1) the assets have been isolated from the Company, (2)      the transferee obtains the right (free of conditions that constrain it      from taking advantage of that right) to pledge or exchange the transferred      assets, and (3) the Company does not maintain effective control over the      transferred assets through an agreement to repurchase before their      maturity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Bank      Premises and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Bank      premises and equipment are carried at cost less accumulated      depreciation.  Depreciation and amortization are recorded on a      straight-line basis over the estimated useful lives of the assets for      financial reporting purposes, and accelerated methods for income tax      purposes.  The estimated useful lives range from 15 to 40 years      for buildings, 3 to 5 years for furniture, fixtures and equipment and the      shorter of the lease terms or the estimated useful lives of leasehold      improvements. When capitalizing costs for store construction, the Company      includes the costs of purchasing the land, developing the site,      constructing the building (or leasehold improvements if the property is      leased), and furniture, fixtures and equipment necessary to equip the      store. Depreciation charges commence the month in which the store opens.      All other pre-opening and post-opening costs related to stores are      expensed as incurred.                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Other      Real Estate (ORE)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Real      estate acquired in satisfaction of a loan is reported in other assets at      the lower of cost or fair value less disposition costs. Properties      acquired by foreclosure or deed in lieu of foreclosure are transferred to      ORE and recorded at the lower of cost or fair value less disposition costs      based on their appraised value at the date actually or constructively      received. Losses arising from the acquisition of such property are charged      against the allowance for loan and lease losses. Subsequent adjustments to      the carrying values of ORE properties are charged to operating expense.      Included in other noninterest expense is $3.2 million, $615,000, and      $851,000 related to ORE expenses for 2007, 2006, and 2005,      respectively.                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Other      Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The      Company makes investments directly in low-income housing tax credit      (LIHTC) operating partnerships, private venture capital funds and Small      Business Investment Companies (SBIC). At December 31, 2007 and 2006, the      Company’s investment in these entities totaled $66.9 million and $68.7      million, respectively. The majority of these investments are accounted for      under the equity method ofaccounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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|   | Goodwill      and Other Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Goodwill,      the excess of cost over fair value of net assets acquired, amounted to      $121.6 million and $125.8 million at December 31, 2007 and 2006,      respectively.  Goodwill is not amortized into net income but      rather is tested at least annually for impairment.  Other      intangible assets, which include core deposit intangibles, totaled $15.1      million and $15.8 million at December 31, 2007 and 2006,      respectively.  These amounts are amortized over their estimated      useful lives, generally 7-10 years, and also continue to be subject to      impairment testing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Amortization      expense of other intangible assets amounted to $2.7 million, $2.3 million,      and $614,000 for 2007, 2006, and 2005, respectively.  The      estimated amortization expense for the next five years is $1.8 million per      year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Advertising      Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Advertising      costs are expensed as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Income      Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The      provision for income taxes is based on current taxable income. Deferred      income taxes are provided on temporary differences between amounts      reported for financial statement and tax purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Income      Tax Contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The      Company is subject to the income tax laws of the United States, as well as      its states and municipalities.  These tax laws are complex and      subject to different interpretations by taxpayers and the relevant taxing      authorities.  In establishing its provision for income tax      expense, the Company must make judgments and interpretations about the      application of these inherently complex tax laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Actual      income taxes paid may vary from estimates depending upon changes in income      tax laws, actual results of operations, and the final audit of tax returns      by taxing authorities.  Tax assessments may arise several years      after tax returns have been filed.  In July 2006, the Financial      Accounting Standards Board (FASB) issued Interpretation No. 48,      “Accounting for Uncertainty in Income Taxes” (FIN 48). The Company adopted      FIN 48 effective January 1, 2007.  Uncertain tax positions are      initially recognized in the financial statements when it is more likely      than not the position will be sustained upon examination by the tax      authorities.  Such tax positions are both initially and      subsequently measured as the largest amount of tax benefit that is greater      than 50% likely of being realized upon settlement with the tax authority,      assuming full knowledge of the position and all relevant      facts.  The Company provides for interest on tax positions that      may be challenged by tax authorities.  Interest expense is      recognized beginning in the first period that such interest would begin      accruing. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Restriction      on Cash and Due From Banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The      Company's banking subsidiaries are required to maintain reserve balances      with the Federal Reserve Bank. The weighted average amount of the reserve      balances for 2007 and 2006 were approximately $106.7 million and $109.8      million, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Derivative      Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | As      part of CCMI’s broker-dealer activities, CCMI maintains a trading      securities portfolio for distribution to customers in order to meet those      customers’ needs. Derivative instruments, primarily interest rate futures      and options, are used in order to reduce the exposure to interest rate      risk relating to the trading portfolio. These contracts are carried at      fair value with changes in fair value included in other operating income      and recorded in the same period as changes in fair value of the trading      portfolio. As an accommodation to its loan customers, the Company enters      into interest rate swap agreements. The Company minimizes its risk by      matching these positions with a counterparty.  These swaps are      carried at fair value with changes in fair value included in noninterest      income.                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Recent      Accounting Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | In      September 2006, the FASB issued Statement No. 157, “Fair Value      Measurements” (FAS 157).  FAS 157 provides a single definition      of fair value, establishes a framework for measuring fair value, and      expands disclosures about fair value measurements.  It is      required to be applied whenever another financial accounting standard      requires or permits an asset or liability to be measured at fair      value.  The Company will adopt FAS 157 on January 1, 2008 and      does not believe such adoption will have a material impact on its results      of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|   | In      February 2007, the FASB issued Statement No. 159, “The Fair Value Option      for Financial Assets and Financial Liabilities” (FAS      159).  Under FAS 159, entities are provided with an option to      report selected financial assets and liabilities at fair value, on an      instrument-by-instrument basis.  The objective is to improve      financial reporting by mitigating volatility in reported earnings caused      by measuring related assets and liabilities under different      methods.  FAS 159 also establishes presentation and disclosure      requirements designed to facilitate comparisons between entities that      choose different measurement methods for similar types of assets and      liabilities.  The Company will adopt FAS 159 on January 1, 2008      and does not believe such adoption will have a material impact on its      results of operations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.     | Agreement      and Plan of      Merger with      The      Toronto-Dominion      Bank                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | On      October 2, 2007, the Company and The Toronto-Dominion Bank (TD) entered      into an Agreement and Plan of Merger (Merger Agreement) pursuant to which      TD will acquire the Company and the Company will become a wholly-owned      subsidiary of TD.  The Company’s shareholders approved the      Merger Agreement at a Special Meeting of Shareholders on February 6,      2008.  The consideration for the transaction, a combination of      stock and cash, was valued at $8.5 billion at the time of the      announcement. Under the terms of the Merger Agreement, Company      shareholders will receive 0.4142 TD common shares and $10.50 in cash for      each common share of the Company outstanding immediately prior to the      completion of the merger.  On March 13, 2008, it was      announced that all regulatory approvals necessary to complete the merger      were received.  The merger is expected to close in late      March/early April 2008. The transaction is taxable for      Company shareholders for US federal income tax purposes, including the TD      common shares they receive. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | As      contemplated by the Merger Agreement, the Company completed the sale of      its insurance brokerage business, Commerce Banc Insurance Services, Inc.      (CBIS) on December 31, 2007.  The sale included the commercial      property and casualty, employee benefits, and various specialty insurance      lines of CBIS and was approved by TD, as provided in the Merger      Agreement.  As part of the sale, the Company will retain      ownership of the retail personal-lines insurance business.  The      Company recorded a pre-tax gain of approximately $22.0 million related to      the sale. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| 3.     | Mergers      and Acquisitions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | On      December 5, 2005, the Company completed the acquisition of Palm Beach      County Bank (PBCB), based in West Palm Beach, Florida.  PBCB was      a privately held bank with approximately $370.0 million in assets and      seven retail stores.  The Company issued approximately 3.3      million shares of common stock in exchange for the outstanding PBCB      shares. The purchase price was approximately $110.0 million based on the      value of common stock exchanged.  In connection with the      acquisition, the Company recorded $90.9 million of goodwill and $6.0      million of core deposit intangible. The core deposit intangible is being      amortized over ten years, the estimated useful life, on a straight-line      basis. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | On      February 1, 2006, the Company completed the acquisition of eMoney      Advisors, Inc. (eMoney), a provider of web-enabled wealth and financial      planning solutions.  The Company issued approximately 900,000      shares of common stock in exchange for the outstanding eMoney      shares.  In connection with the acquisition, the Company      recorded $25.5 million of goodwill and $8.1 million of other intangible      assets, which are being amortized over estimated useful lives of seven      years. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |

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| 4. | InvestmentSecurities | A      summary of the amortized cost and market value of securities available for      sale and securities held to maturity (in thousands) at December 31, 2007      and 2006 follows: |   |
|----|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   |                                                     |
|--------|--------|----------------------------------------------------------|
|   |   |                                                     | December      31, |
|   |   |                                                     | 2007 | 2006 |
|   |   |                                                     | AmortizedCost | GrossUnrealizedGains | GrossUnrealized      Losses | MarketValue | AmortizedCost | GrossUnrealizedGains | GrossUnrealizedLosses | MarketValue |
|   |   | U.S.      Government agency                              | $132,883 |   |   | $132,883 | $713,544 | $1 | $(5,932) | $707,613 |
|   |   | U.S.      Government-Sponsored agencies                  | 1,007,857 | $7,299 | $(5,681) | 1,009,475 | 3,021,159 | 2,334 | (43,391) | 2,980,102 |
|   |   | Mortgage-backed      obligations                         | 5,588,979 |   | (456,933) | 5,132,046 | 7,363,428 | 13,712 | (80,608) | 7,296,532 |
|   |   | Asset-Backed      Securities                             | 6,600,997 | 6,041 | (17,952) | 6,589,086 |   |   |   |   |
|   |   | Obligations      of state andpolitical      subdivisions | 53,948 | 9 | (681) | 53,276 | 54,517 | 229 | (1) | 54,745 |
|   |   | Equity      securities                                   | 9,783 | 10,426 |   | 20,209 | 9,679 | 9,392 |   | 19,071 |
|   |   | Other                                                    | 43,563 |   | (920) | 42,643 | 40,221 |   | (171) | 40,050 |
|   |   | Securities      availablefor sale                        | $13,438,010 | $23,775 | $(482,167) | $12,979,618 | $11,202,548 | $25,668 | $(130,103) | $11,098,113 |
|   |   |                                                     |   |   |   |   |   |   |   |   |
|   |   | U.S.      Government agency                              | $620,753 | $  488 | $(1,046) | $620,195 | $1,531,668 |   | $(26,782) | $1,504,886 |
|   |   | U.S.      Government-Sponsored agencies                  | 6,686,170 | 5,943 | (185,655) | 6,506,458 | 7,025,439 | $8,618 | (156,792) | 6,877,265 |
|   |   | Mortgage-backed      obligations                         | 5,333,834 | - | (436,352) | 4,897,482 | 5,648,427 | 6,225 | (99,945) | 5,554,707 |
|   |   | Obligations      of state andpolitical      subdivisions | 433,395 | 2,122 | (113) | 435,404 | 554,189 | 1,881 | (422) | 555,648 |
|   |   | Other                                                    | 145,120 |   |   | 145,120 | 125,259 |   |   | 125,259 |
|   |   | Securities      held tomaturity                          | $13,219,272 | $  8,553 | $(623,166) | $12,604,659 | $14,884,982 | $16,724 | $(283,941) | $14,617,765 |

|   | The      Company’s investment portfolio consists primarily of U.S. Government      agency and mortgage-backed obligations as well as asset-backed securities.      These securities have little, if any, credit risk since they are either      backed by the full faith and credit of the U.S. Government, are issued by      Government Sponsored Enterprises, or are AAA rated. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The      amortized cost and estimated market value of investment securities (in      thousands) at December 31, 2007, by contractual maturity are shown below.      Actual maturities will differ from contractual maturities because obligors      have the right to repay obligations without prepayment      penalties.                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Available      for Sale | Held      to Maturity |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | AmortizedCost | Market      Value | Amortized      Cost | Market      Value |
|   | Due      in one year or less                                                                                                                                                                                                                                                                                                                                                             | $148,081 | $148,086 | $457,689 | $457,886 |
|   | Due      after one year through five years                                                                                                                                                                                                                                                                                                                                               | 1,100 | 1,095 | 570,449 | 569,761 |
|   | Due      after five years through ten years                                                                                                                                                                                                                                                                                                                                              |   |   | 118,305 | 119,913 |
|   | Due      after ten years                                                                                                                                                                                                                                                                                                                                                                 | 81,213 | 79,621 | 52,826 | 53,160 |
|   | Mortgage-backed      securities                                                                                                                                                                                                                                                                                                                                                          | 6,596,836 | 6,141,521 | 12,020,003 | 11,403,939 |
|   | Asset-backed      securities                                                                                                                                                                                                                                                                                                                                                             | 6,600,997 | 6,589,086 |   |   |
|   | Equity      securities                                                                                                                                                                                                                                                                                                                                                                   | 9,783 | 20,209 |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | $13,438,010 | $12,979,618 | $13,219,272 | $12,604,659 |

|   | During      the third quarter of 2007, the Company transferred approximately $7.4      billion of primarily fixed-rate investment securities from its available      for sale portfolio to a trading portfolio as part of an investment      portfolio restructure.  To reduce its exposure to changes in      interest rates, the Company sold the securities in the trading portfolio      during the fourth quarter of 2007 and reinvested those proceeds in      short-term, floating rate, AAA-rated asset-backed      securities.  As a result of the restructure, the Company      recorded $174.4 million in net securities losses during    2007. |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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|   | Proceeds      from sales of securities available for sale during 2007, 2006 and 2005      were $455.0 million, $418.7 million and $3.7 billion, respectively. Gross      gains of $2.9 million, $2.7 million and $12.5 million were realized on the      sales in 2007, 2006, and 2005, respectively, and gross losses of $0, $0      and $26.6 million were realized in 2007, 2006 and 2005,      respectively.                                                                                                         |                     |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                     |
|   | During      the fourth quarter of 2005, the Company, as a protective measure against      further net interest margin compression due to the yield curve at that      time, repositioned a portion of its investment portfolio by selling      fixed-rate securities and purchasing approximately $1.5 billion of      floating-rate securities.  In order to complete the      repositioning, the Company incurred an after-tax charge of approximately      $17.0 million during the fourth quarter of 2005. |                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                     |
|   | At      December 31, 2007 and 2006, investment securities with a carrying value of      $8.8 billion and $9.2 billion, respectively, were pledged to secure      deposits of public funds.                                                                                                                                                                                                                                                                                                                               |                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                     |
|   | The      unrealized losses and related fair value of investments with unrealized      losses less than 12 months and those with unrealized losses 12 months or      longer (in thousands) as of December 31, 2007 are shown    below.                                                                                                                                                                                                                                                                                    |                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                     |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Less      than 12 months | 12      months or more | Totals |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Fair      Value          | Unrealized      Losses | Fair      Value | Unrealized      Losses | Fair      Value | Unrealized      Losses |
|   | Available      for sale:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                     |   |   |   |   |   |
|   | U.S.      Government agency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $4,933                   | $  - | $  - | $  - | $4,933 | $  - |
|   | U.S.      Government-Sponsored agencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -                        | - | 443,781 | 5,514 | 443,781 | 5,514 |
|   | Mortgage-backed      obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2,846,645                | 287,153 | 2,359,640 | 169,947 | 5,206,285 | 457,100 |
|   | Asset-backed      securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 4,162,732                | 17,952 |   |   | 4,162,732 | 17,952 |
|   | Obligations      of state and      political    subdivisions/other                                                                                                                                                                                                                                                                                                                                                                                                                                   | 52,352                   | 681 | 28,355 | 920 | 80,707 | 1,601 |
|   | Securities      available  for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $7,066,662               | $305,786 | $2,831,776 | $176,381 | $  9,898,438 | $482,167 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                     |   |   |   |   |   |
|   | Held      to maturity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                     |   |   |   |   |   |
|   | U.S.      Government agency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $  -           | $  - | $  - | $  - | $  - | $  - |
|   | U.S.      Government-Sponsored agencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -                        | - | 4,946,117 | 122,426 | 4,946,117 | 122,426 |
|   | Mortgage-backed      obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2,505,969                | 208,123 | 3,761,238 | 292,504 | 6,267,207 | 500,627 |
|   | Obligations      of state and politicalsubdivisions/other                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 8,623                    | 53 | 8,894 | 60 | 17,517 | 113 |
|   | Securities      held to maturity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $2,514,592               | $208,176 | $8,716,249 | $414,990 | $11,230,841 | $623,166 |

|   | As      described in Note 1 – Significant Accounting Policies, the Company reviews      the investment securities portfolio to determine if other-than-temporary      impairment has occurred. Management does not believe any individual      unrealized loss as of December 31, 2007 represents an other-than-temporary      impairment.  The unrealized losses on these securities are      caused primarily by the changes in liquidity levels in the market in      addition to changes in general market interest rates and not by material      changes in the credit characteristics of the investment securities      portfolio.  Additionally, at December 31, 2007, management had      the positive intent and ability to hold these securities to recovery or      maturity. The average life and duration of securities with unrealized      losses at December 31, 2007 was 5.09 years and 3.16 years,      respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | During      2007, $84.1 million of securities were sold which had unrealized losses at      December 31, 2006.  Gross gains and losses on these securities      were $476 thousand and $0,respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| 5. | Loans | The      following is a summary of loans outstanding (in thousands) at December 31,      2007 and 2006: |
|----|-------|---------------------------------------------------------------------------------------------------------|

|                                    |   | December      31, |       |
|-----------------------------------------|--------|-------------------|------------|
|                                    |   | 2007              |       |   | 2006 |   |
| Commercial:                             |   |              |       |   |   |   |
| Term                                    |   | $                 | 3,045,907  |   |   | $ | 2,392,889 |   |
| Line      of credit                     |   |              | 2,070,636  |   |   |   | 1,843,545 |   |
|                                    |   |              | 5,116,543  |   |   |   | 4,236,434 |   |
|                                    |   |              |       |   |   |   |   |   |
| Owner-occupied                          |   |              | 3,245,123  |   |   |   | 2,845,791 |   |
|                                    |   |              |       |   |   |   |   |   |
| Consumer:                               |   |              |       |   |   |   |   |   |
| Mortgages      (1-4 family residential) |   |              | 2,314,532  |   |   |   | 2,235,247 |   |
| Installment                             |   |              | 285,543    |   |   |   | 287,151 |   |
| Home      equity                        |   |              | 3,585,904  |   |   |   | 2,958,893 |   |
| Credit      lines                       |   |              | 194,030    |   |   |   | 137,429 |   |
|                                    |   |              | 6,380,009  |   |   |   | 5,618,720 |   |
|                                    |   |              |       |   |   |   |   |   |
| Commercial      real estate:            |   |              |       |   |   |   |   |   |
| Investor      developer                 |   |              | 2,502,872  |   |   |   | 2,625,628 |   |
| Construction                            |   |              | 596,971    |   |   |   | 280,476 |   |
|                                    |   |              | 3,099,843  |   |   |   | 2,906,104 |   |
|                                    |   | $                 | 17,841,518 |   |   | $ | 15,607,049 |   |

| 6. | Allowancefor      CreditLosses | The      following is an analysis of changes in the allowance for credit losses (in      thousands) for 2007, 2006 and 2005: |
|----|--------------------------------|------------------------------------------------------------------------------------------------------------------------------|

|                                               |   |   |                         |   |   |   |    |   |   |
|----------------------------------------------------|--------|--------|------------------------------|--------|--------|--------|---------|--------|--------|
|                                               |   |   | Year      Ended December 31, |   |
|                                               |   |   | 2007                         |   |   | 2006   |    |   | 2005   |   |
|                                               |   |   |                         |   |   |   |    |   |   |   |
| Balance,      January 1                            |   | $      | 160,269                      |   |   | $      | 141,464 |   |   | $ | 135,620 |   |
| Provision      charged to operating expense        |   |   | 103,550                      |   |   |   | 33,700  |   |   |   | 19,150 |   |
| Recoveries      of loans previously charged off    |   |   | 6,093                        |   |   |   | 7,976   |   |   |   | 5,192 |   |
| Loan      charge-offs                              |   |   | (56,631                      | )      |   |   | (22,871 | )      |   |   | (20,992 | ) |
| Allowance      for credit losses acquired bank     |   |   |                         |   |   |   |    |   |   |   | 2,494 |   |
| Balance,      December 31                          |   | $      | 213,281                      |   |   | $      | 160,269 |   |   | $ | 141,464 |   |
| Amount      reclassified as allowance for unfunded |   |   |                         |   |   |   |    |   |   |   |   |   |
| credit      commitments                            |   |   | 10,088                       |   |   |   | 8,216   |   |   |   | 7,800 |   |
| Allowance      for loan and lease losses           |   | $      | 203,193                      |   |   | $      | 152,053 |   |   | $ | 133,664 |   |

|   |                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.     | Non-PerformingLoans      andOther      RealEstate      / Fore-closed Assets | Total      non-performing loans (non-accrual and restructured loans) were $104.5      million and $50.6 million at December 31, 2007 and 2006,      respectively.   Contributing to the overall increase in      non-performing loans were increases in non-accrual loans of $11.7 million,      $27.3 million and $13.0 million in the Company’s consumer, real estate      construction and real estate mortgage loan portfolios,      respectively.  The increase in non-performing loans was      primarily attributable to loans secured by real estate, which were      impacted by the current economic conditions surrounding the real estate      market. Non-performing loans of $8.3 million and $4.4 million were      transferred to other real estate/foreclosed assets during 2007 and 2006,      respectively.  Other real estate/foreclosed assets ($4.3 million      and $2.6 million at December 31, 2007 and 2006, respectively) are included      in other assets.  Non-performing assets (non-performing loans      and other real estate, excluding loans past due 90 days or more and still      accruing interest) at December 31, 2007 were $108.7 million or .22% of      total assets, as compared to $53.2 million or .12% of total assets at      December 31, 2006. |
|   |                                                                        |

----

|   | At      December 31, 2007 and 2006, the recorded investment in loans considered to      be impaired under FASB Statement No. 114 "Accounting by Creditors for      Impairment of a Loan" totaled $77.0 million and $34.7 million,      respectively, all of which are included in non-performing loans. The      reserve for loan and lease losses related to impaired loans totaled      approximately $18.9 million and $4.5 million at December 31, 2007 and      2006, respectively. As permitted, all homogenous smaller balance consumer,      commercial and residential mortgage loans are excluded from individual      review for impairment. The majority of impaired loans were measured using      the fair market value of collateral. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Impaired      loans averaged approximately $52.3 million and $30.2 million during 2007      and 2006, respectively. Interest income of approximately $6.6 million,      $2.8 million, and $2.8 million would have been recorded on non-performing      loans (including impaired loans) in accordance with their original terms      in 2007, 2006, and 2005, respectively. Actual interest income recorded on      these loans amounted to $4.0 million, $1.5 million, and $809 thousand      during 2007, 2006, and 2005, respectively.                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| 8.     | BankPremises,Equipment,and      Leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | A      summary of bank premises and equipment (in thousands) is as      follows: |

|                                           |   | December      31, |      |
|------------------------------------------------|--------|-------------------|-----------|
|                                           |   | 2007              |      |   | 2006 |   |
| Land                                           |   | $                 | 425,224   |   |   | $ | 370,974 |   |
| Buildings                                      |   |              | 946,170   |   |   |   | 750,551 |   |
| Leasehold      improvements                    |   |              | 294,153   |   |   |   | 260,116 |   |
| Furniture,      fixtures and equipment         |   |              | 807,608   |   |   |   | 691,551 |   |
| Leased      property under capital leases      |   |              | 2,522     |   |   |   | 124 |   |
|                                           |   |              | 2,475,677 |   |   |   | 2,073,316 |   |
| Accumulated      depreciation and amortization |   |              | (718,469  | ) |   |   | (571,062 | ) |
|                                           |   |              | 1,757,208 |   |   |   | 1,502,254 |   |
| Premises      and equipment in progress        |   |              | 320,540   |   |   |   | 251,416 |   |
|                                           |   | $                 | 2,077,748 |   |   | $ | 1,753,670 |   |

|   | Total      rent expense charged to operations under operating leases was      approximately $97.9 million in 2007, $73.1 million in 2006, and $60.0      million in 2005. Total depreciation expense charged to operations was      $162.1 million, $137.4 million and $112.5 million in 2007, 2006 and 2005,      respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      future minimum rental commitments, by year, under the non-cancelable      leases, including escalation clauses, are as follows (in thousands) at      December 31, 2007: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | Operating |      |
|---------------------------------|--------|-----------|-----------|
| 2008                            |   | $         | 81,990    |   |
| 2009                            |   |      | 81,221    |   |
| 2010                            |   |      | 81,796    |   |
| 2011                            |   |      | 83,735    |   |
| 2012                            |   |      | 84,478    |   |
| Later      years                |   |      | 854,269   |   |
| Net      minimum lease payments |   | $         | 1,267,490 |   |

| 9.     | Deposits | The      aggregate amount of time certificates of deposits in denominations of      $100,000 or more was $2.8 billion and $2.6 billion at December 31, 2007      and 2006, respectively. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |     |                                                                                                                                                                                     |

----

| 10. | OtherBorrowedMoney | Other      borrowed money consists primarily of securities sold under agreements to      repurchase, federal funds purchased, and lines of credit. The following      table represents information for other borrowed money (in thousands) at      December 31, 2007 and 2006: |
|-----|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | December      31, |    |
|----------------------------------------------------------|--------|-------------------|---------|
|                                                     |   | 2007              |    |   | 2006 |   |
|                                                     |   | Amount            |    |   | AverageRate |   |   | Amount |   |   | Average      Rate |   |
| Securities      sold under agreements      to repurchase |   | $                 | 100,954 |   |   |   | 3.46 | % |   | $ | 662,404 |   |   |   | 5.29 | % |
| Federal      funds purchased                             |   |              | -       |   |   |   | - |   |   |   | 115,000 |   |   |   | 5.28 | % |
| Total                                                    |   | $                 | 100,954 |   |   |   | 3.46 | % |   | $ | 777,404 |   |   |   | 5.29 | % |
|                                                     |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      amount outstanding                          |   | $                 | 388,654 |   |   |   | 5.16 | % |   | $ | 1,186,068 |   |   |   | 4.90 | % |
| Maximum      month-end balance                           |   |              | 545,310 |   |   |   |   |   |   |   | 2,568,445 |   |   |   |   |   |

|   | As      of December 31, 2007, the Company had a line of credit of $2.0 billion      from the Federal Home Loan Bank of Pittsburgh and a line of credit of      $130.9 million from the Federal Home Loan Bank of New York, both of which      were available. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | IncomeTaxes | The      provision for income taxes consists of the following (in      thousands): |
|-----|-------------|------------------------------------------------------------------------------------|

|      |   | December      31, |    |
|-----------|--------|-------------------|---------|
|      |   | 2007              |    |   | 2006 |   |   | 2005 |   |
| Current:  |   |              |    |   |   |   |   |   |   |
| Federal   |   | $                 | 96,804  |   |   | $ | 167,106 |   |   | $ | 156,805 |   |
| State     |   |              | 13,525  |   |   |   | 33,195 |   |   |   | 8,714 |   |
| Deferred: |   |              |    |   |   |   |   |   |   |   |   |   |
| Federal   |   |              | (35,035 | ) |   |   | (23,414 | ) |   |   | (17,612 | ) |
|      |   | $                 | 75,294  |   |   | $ | 176,887 |   |   | $ | 147,907 |   |

|   | The      above provision includes an income tax benefit of $61.0 million related to      net investment security losses recorded in 2007, primarily due to the      investment portfolio restructure, an income tax expense of $900,000      related to net investment security gains recorded in 2006 and an income      tax benefit of $4.9 million related to net investment security losses      recorded in 2005. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      provision for income taxes differs from the expected statutory provision      as follows: |
|--------|----------------------------------------------------------------------------------------------------|

|                                             |   |              |   |
|--------------------------------------------------|--------|-------------------|--------|
|                                             |   | December      31, |   |
|                                             |   | 2007              |   |   | 2006 |   |   | 2005 |   |
| Expected      provision at statutory rate:       |   |              | 35.0   | % |   |   | 35.0 | % |   |   | 35.0 | % |
| Difference      resulting from:                  |   |              |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt interest on      loans                |   |              | (3.2   | ) |   |   | (1.2 | ) |   |   | (1.3 | ) |
| Tax-exempt interest on      securities           |   |              | (2.6   | ) |   |   | (1.1 | ) |   |   | (1.0 | ) |
| State income taxes (net of      federal benefit) |   |              | 4.1    |   |   |   | 4.5 |   |   |   | 1.3 |   |
| Other                                            |   |              | 1.6    |   |   |   | (0.1 | ) |   |   | 0.3 |   |
|                                             |   |              | 34.9   | % |   |   | 37.1 | % |   |   | 34.3 | % |

|   | As      a result of an analysis of the tax structures of certain wholly-owned      subsidiaries, the Company recorded an additional estimated state income      tax liability of $24.4 million during the fourth quarter of 2006 related      to settlements with various taxing authorities.  The impact on      net income, net of federal tax benefits, was approximately $15.8 million      and resulted in an increased effective tax rate for  2006. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | The      amounts payable for federal income taxes for 2007 and 2006 were reduced by      approximately $45.8 million and $26.3 million, respectively, due to the      exercise of stock options.                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

|   | Deferred      income taxes reflect the net tax effects of temporary differences between      the carrying amounts of assets and liabilities for financial reporting      purposes and the amounts used for income tax purposes. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                            |
|   | The      significant components of the Company's deferred tax liabilities and      assets as of December 31, 2007 and 2006 are as follows (in      thousands):                                                                  |

|                                                      |   | December      31, |    |
|-----------------------------------------------------------|--------|-------------------|---------|
|                                                      |   | 2007              |    |   | 2006 |   |
| Deferred      tax assets:                                 |   |              |    |   |   |   |
| Loan      loss reserves                                   |   | $                 | 74,742  |   |   | $ | 56,094 |   |
| Deferred      rents                                       |   |              | 23,667  |   |   |   | 17,010 |   |
| Net      operating loss carryforwards                     |   |              | 5,760   |   |   |   | 6,384 |   |
| Fair      value adjustment, available for sale securities |   |              | 161,279 |   |   |   | 39,195 |   |
| Federal      benefit on state taxes                       |   |              | 4,216   |   |   |   | 8,527 |   |
| Other      reserves                                       |   |              | 12,821  |   |   |   | 4,481 |   |
| Total      deferred tax assets                            |   |              | 282,485 |   |   |   | 131,691 |   |
| Deferred      tax liabilities:                            |   |              |    |   |   |   |   |   |
| Depreciation                                              |   |              | (43,509 | ) |   |   | (47,388 | ) |
| Intangibles                                               |   |              | (3,671  | ) |   |   | (2,711 | ) |
| Other                                                     |   |              | (4,373  | ) |   |   | (10,249 | ) |
| Total      deferred tax liabilities                       |   |              | (51,553 | ) |   |   | (60,348 | ) |
| Net      deferred assets                                  |   | $                 | 230,932 |   |   | $ | 71,343 |   |

|   | No      valuation allowance was recognized for the deferred tax assets at December      31, 2007 or 2006. |
|--------|-----------------------------------------------------------------------------------------------------------|
|   |                                                                                                      |   |   |
|   |                                                                                                      |   | In      July 2006, the FASB issued FIN 48.  FIN 48 clarifies the      accounting for uncertainty in income taxes recognized in an enterprise’s      financial statements in accordance with Statement of Financial Accounting      Standards No. 109, “Accounting for Income Taxes” (FAS      109).  This interpretation prescribes a recognition threshold      and measurement attribute for the financial statement recognition and      measurement of a tax position taken or expected to be taken in a tax      return.  The Company adopted FIN 48 effective January 1, 2007.      As a result of the implementation of FIN 48, the Company recognized a $7.1      million increase in its liability for unrecognized tax benefits, which was      accounted for as a $4.6 million reduction, net of the federal tax benefit,      to the January 1, 2007 balance of retained earnings and is reported as      Other in the Consolidated Statement of Changes in Stockholders’      Equity. |
|   |                                                                                                      |   |   |
|   |                                                                                                      |   | A      reconciliation for 2007 of the beginning and ending amount of unrecognized      tax benefits is as follows (in thousands): |
|   |                                                                                                      |   |   |   |
|   |                                                                                                      | Balance      at January 1, 2007 | $      13,100 |   |
|   |                                                                                                      | Additions      based on tax positions related to the current year | 4,400 |   |
|   |                                                                                                      | Additions      for tax positions of prior years | 700 |   |
|   |                                                                                                      | Reductions      for tax positions of prior years as a result of |   |   |
|   |                                                                                                      |     filing      certain amended returns | (1,600) |   |
|   |                                                                                                      | Balance      at December 31, 2007 | $      16,600 |   |
|   |                                                                                                      |   |   |
|   |                                                                                                      |   | As      of December 31, 2007, the Company’s unrecognized tax benefits totaled      $16.6 million, of which $10.8 million, if recognized, would result in a      reduction of the Company’s effective tax rate. |
|   |                                                                                                      |   |   |
|   |                                                                                                      |   | The      Company recognizes interest and penalties related to its tax contingencies      as income tax expense.  The Company recorded $700 thousand for      interest during 2007.  The Company had approximately $1.7      million accrued for interest at December 31, 2007.  The Company      did not record any amounts for interest in 2006 and 2005.  No      amounts were expensed or accrued for penalties. |
|   |                                                                                                      |   |   |

----

|   |   | The      Company files income tax returns in the U.S. federal jurisdiction and      numerous state and local jurisdictions.  The Company is no      longer subject to Internal Revenue Service examination for periods prior      to 2006. All state and local returns have been concluded and are no longer      subject to examination through 2001, with certain returns concluded      through 2006. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.    | Commitments,Letters      ofCredit      andGuarantees                                                                                                                                                                                                                              | In      the normal course of business, there are various outstanding commitments      to extend credit, such as letters of credit, which are not reflected in      the accompanying consolidated financial statements. These arrangements      have credit risk essentially the same as that involved in extending loans      to customers and are subject to the Company's normal credit policies.      Collateral is obtained based on management's credit assessment of the      borrower. At December 31, 2007, the Company had outstanding standby      letters of credit in the amount of $1.2 billion.  Fees      associated with standby letters of credit have been deferred and recorded      in other liabilities on the Consolidated Balance Sheets.  These      fees are immaterial to the Company’s consolidated financial statements at      December 31, 2007. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                              |
|   | In      addition, the Company is committed as of December 31, 2007 to advance      $675.5 million on construction loans, $1.2 billion on home equity lines of      credit and $4.2 billion on other lines of credit. All other commitments      total approximately $1.1 billion. |
|   |                                                                                                                                                                                                                                                                              |
|   | The      Company has commitments to fund LIHTC partnerships, private venture      capital funds and SBICs that total approximately $16.3 million at December      31, 2007.                                                                                                       |
|   |                                                                                                                                                                                                                                                                              |
| 13.    | CommonStock                                                                                                                                                                                                                                                                       | At      December 31, 2007, the Company's common stock had a par value of $1.00.      The Company is authorized to issue 500,000,000 shares as of this      date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                              |
|   | On      December 19, 2007, the Board of Directors declared a cash dividend of      $0.13 for each share of common stock outstanding, payable January 18, 2008      to stockholders of record on January 4, 2008.                                                                  |
|   |                                                                                                                                                                                                                                                                              |
|   | On      February 15, 2005, the Board of Directors declared a two-for-one stock      split in the form of a 100% stock dividend, distributed on March 7, 2005      to stockholders of record on February 25,2005.                                                                  |

| 14. | Related      Party Transactions |  |
|-----|---------------------------------|--|

|                    |   | December      31, |   |
|-------------------------|--------|-------------------|--------|
|                    |   | 2007              |   |   | 2006 |   |
|                    |   |              |   |   |   |   |
| Executive      officers |   | $                 | 2.8    |   |   | $ | 2.8 |   |
| Company      directors  |   |              | 9.4    |   |   |   | 7.2 |   |
|                    |   | $                 | 12.2   |   |   | $ | 10.0 |   |

----

|   |   | Regulatory      Orders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | On      June 28, 2007, the Company entered into a Memorandum of Understanding      (MOU) with the Federal Reserve Bank of Philadelphia (FRB) and Commerce NA      entered into a Consent Order with the Office of the Comptroller of the      Currency (OCC).  The MOU and Consent Order (together, the      Regulatory Orders) relate to, among other things, corporate governance,      related party transactions and policies and procedures for real estate      related transactions.  As part of the Regulatory Orders,      Commerce NA may engage in related party transactions only after receiving      written notification that the OCC does not object to the transactions,      contracts or agreements, or pursuant to a detailed policy for which      Commerce NA has received written notification that the OCC does not      object.  In addition, as part of the Regulatory Orders, Commerce      NA was required to terminate existing related party transactions, except      those to which the OCC did not object, by December 31,    2007.          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | Leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | The      Company had twenty-two operating leases with related parties, primarily      the former Chairman of the Company, and/or his immediate family members,      for land and bank premises. Rents paid under leases with related parties      are approved by the independent members of the Board of Directors and      supported by independent appraisals. The aggregate annual rental under      these leases was approximately $2.2 million, $2.1 million, and $2.1      million in 2007, 2006, and 2005, respectively. These leases expire      periodically but are renewable through 2042.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | Other      Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   | The      Company utilized architectural design and facilities management services      from a business owned by the spouse of the former Chairman of the Company.      The Company spent $7.8 million, $9.2 million, and $7.5 million in 2007,      2006, and 2005, respectively, for such services and related      costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | The      Company obtains legal services from certain related parties, including a      firm with whom a current director is a partner and a firm with whom the      brother of a current director is a partner.  Amounts paid to      related parties for legal services were approximately $1.7 million, $1.6      million and $740,000 for 2007, 2006 and 2005,  respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | The      Company utilized the facilities of a golf club, whose principal equity      holder is the former Chairman of the Company and other equity holders      include current directors, for business development.  The      Company paid approximately $420,000, $680,000 and $480,000 for the use of      these facilities in 2007, 2006 and 2005, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | Aside      from the Company’s related party leases and other transactions, primarily      loans and deposits made in the ordinary course of business, the      Company terminated its relationships with the above-mentioned related      parties during the third and fourth quarters of 2007, with certain      transitional arrangements, to which the OCC did not object, extending into      2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | Sale      of CBIS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | On      December 31, 2007, the Company completed the sale of CBIS to a group led      by George E. Norcross, III., a current director of the Company and former      Chairman and Chief Executive Officer of CBIS.  The sale of CBIS      was contemplated by the Merger Agreement and approved by      TD.  The Company recorded a pre-tax gain of approximately $22.0      million related to the sale. As part of the CBIS sale, the Company entered      into a non-competition agreement with Mr. Norcross, pursuant to which Mr.      Norcross was paid $4.0 million on January 4, 2008. Also, on December 31,      2007, the Company and Mr. Norcross’ newly-formed insurance brokerage      entered into a transition services agreement whereas the Company will make      available certain infrastructure, administrative and support services over      a transition period, the duration of which is expected to be less than      twelve months.  The Company will be compensated for all services      provided under the transition services agreement. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

|   |                   | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|--------|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                   | Vernon      W. Hill, II. was Chairman, President and Chief Executive Officer of the      Company through July 31, 2007.  Per the terms of his Amended and      Restated Employment Agreement, Mr. Hill was entitled to a lump sum      severance payment of $11.0 million.  Payment of this amount is      subject to regulatory approval and, as a result, no amounts have      been recorded as such approval has not been granted. |   |
|   |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 15.    | EarningsPer      Share | The      calculation of earnings per share follows (in thousands, except for per      share amounts):                                                                                                                                                                                                                                                                                                                                                          |

|                                                                          |   | Year      Ended December 31, |    |
|-------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                          |   | 2007                         |    |   | 2006 |   |   | 2005 |   |
| Basic:                                                                        |   |                         |    |   |   |   |   |   |   |
| Net      income applicable to common stock                                    |   | $                            | 140,288 |   |   | $ | 299,313 |   |   | $ | 282,939 |   |
| Average      common shares outstanding                                        |   |                         | 192,204 |   |   |   | 184,919 |   |   |   | 165,974 |   |
| Net      income per common share                                              |   | $                            | 0.73    |   |   | $ | 1.62 |   |   | $ | 1.70 |   |
|                                                                          |   |                         |    |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                      |   |                         |    |   |   |   |   |   |   |   |   |   |
| Net      income applicable to common stockon      a diluted basis             |   | $                            | 140,288 |   |   | $ | 299,313 |   |   | $ | 282,939 |   |
| Add:  Interest      expense on Convertible Trust Capital Securities |   |                         |    |   |   |   |   |   |   |   | 5,446 |   |
|                                                                          |   | $                            | 140,288 |   |   | $ | 299,313 |   |   | $ | 288,385 |   |
|                                                                          |   |                         |    |   |   |   |   |   |   |   |   |   |
| Average      common shares outstanding                                        |   |                         | 192,204 |   |   |   | 184,919 |   |   |   | 165,974 |   |
| Additional      shares considered in diluted                                  |   |                         |    |   |   |   |   |   |   |   |   |   |
| computation      assuming:                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |
| Exercise      of stock options                                                |   |                         | 6,302   |   |   |   | 8,755 |   |   |   | 7,843 |   |
| Conversion      of trust capital securities                                   |   |                         |    |   |   |   |   |   |   |   | 5,318 |   |
| Average      common and common equivalentshares      outstanding              |   |                         | 198,506 |   |   |   | 193,674 |   |   |   | 179,135 |   |
| Net      income per common and commonequivalent      share                    |   | $                            | 0.71    |   |   | $ | 1.55 |   |   | $ | 1.61 |   |

| 16.    | Stock-Based      Compensation | In      2004, the Board of Directors adopted and Company shareholders approved the      2004 Employee Stock Option Plan (the 2004 Plan) for the officers and      employees of the Company and its subsidiaries.  The 2004 Plan      authorizes the issuance of up to 30,000,000 shares of common stock (as      adjusted for all stock splits and stock dividends) upon the exercise of      options.  As of December 31, 2007, options to purchase      11,659,368 shares of common stock have been issued under the 2004      Plan.  In addition to the 2004 Plan, the Company has a plan for      its non-employee directors. The option price for options issued under the      Company’s plans must be at least equal to 100% of the fair market value of      the Company's common stock as of the date the option is granted. All      options granted will vest evenly over four years from the date of grant.      The options expire not later than 10 years from the date of grant. In      addition, there are options outstanding from prior stock option plans of      the Company, which were granted under similar terms. No additional options      may be issued under these prior plans.                                                                                                                                                            |
|--------|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                          | Prior      to January 1, 2006, the Company accounted for its stock option plans in      accordance with APB Opinion No. 25, “Accounting for Stock Issued to      Employees” (APB 25) and related Interpretations. Typically, stock-based      compensation expense was not recognized in the Consolidated Statements of      Income as all options granted under the Company’s option plans had an      exercise price equal to the market value on the date of      grant.  Effective January 1, 2006, the Company adopted FASB      Statement No. 123 (revised 2004), “Share-Based Payment” (FAS 123R), which      is a revision of FASB Statement No. 123, “Accounting for Stock-Based      Compensation” (FAS 123).  FAS 123R was adopted using the      modified prospective method. Under the modified prospective method,      compensation cost for the year ended December 31, 2006 included (a)      compensation cost for all share-based awards granted prior to, but not yet      vested as of January 1, 2006, based on the grant date fair value net of      estimated forfeitures, and (b) compensation cost for all share-based      payments granted subsequent to January 1, 2006, based on the grant date      fair value net of estimated forfeitures.  Results for prior      periods have not been restated. |

----

|   |   | As      a result of adopting FAS 123R on January 1, 2006, the Company recorded      compensation expense of approximately $17.0 million and $7.4 million      during the years ended December 31, 2007 and 2006, respectively, which      decreased net income per share by $.06 and $.03 for the same respective      periods.  There was no material impact to cash flows resulting      from the adoption of FAS 123R as compared to what would have been recorded      under APB 25.  As of December 31, 2007, the total remaining      unrecognized compensation cost related to stock options granted under the      Company’s plans was $39.6 million, which is expected to be recognized over      a weighted-average vesting period of 2.8 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | The      Company uses the Black-Scholes option pricing model to estimate an      option’s fair value.  The fair value of options included in the      compensation charge recorded in 2007 was estimated using the following      assumptions: risk-free interest rates of 4.47% to 4.68%, dividend yields      of 1.32% to 1.50%, expected volatility of 25.1% to 25.4%, and a weighted      average expected life of 4.63 years.  The risk-free interest      rate is based on the 5-year U.S. Treasury yield in effect at the time of      grant.  The dividend yields reflect the Company’s actual      dividend yield at the date of grant.  Expected volatility is      based on the historical volatility of the Company’s stock over the 5-year      period prior to the grant date.  The weighted average expected      life represents the weighted average period of time that options granted      are expected to be outstanding giving consideration to vesting schedules      and the Company’s historical exercise patterns.  All options      vest evenly over four years from the date of grant and expire 10 years      from the date of grant.  Compensation cost is recognized, net of      estimated forfeitures, over the vesting period of the options on a      straight-line basis. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | The      Black-Scholes option valuation model was developed for use in estimating      the fair value of traded options which have no vesting restrictions and      are fully transferable.  In addition, option valuation models      require the input of highly subjective assumptions including the expected      stock price volatility.  Because the Company’s stock options      have characteristics significantly different from those of traded options,      and because changes in the subjective input assumptions can materially      affect the fair value estimate, in management’s opinion, the existing      models do not necessarily provide a reliable single measure of the fair      value of its stock options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

|   |   | Through      December 31, 2005, the Company accounted for share-based payments to      employees using APB 25’s intrinsic value method and therefore did not      typically recognize compensation expense for employee stock options. Had      the Company adopted FAS 123R in prior periods, the impact would have      approximated the impact of FAS 123 as described in the disclosure of pro      forma net income and pro forma net income per share below (in thousands,      except per share amounts): |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

|                                                       |   | Year      Ended        |    |
|------------------------------------------------------------|--------|------------------------|---------|
|                                                       |   | December      31, 2005 |    |
| Reported      net income                                   |   | $                      | 282,939 |   |
| Less:  Stock      option compensation expense    |   |                   |    |   |
| determined      under fair value method, net of tax        |   |                   | (55,541 | ) |
|                                                       |   |                   |    |   |
| Pro      forma net income, basic                           |   |                   | 227,398 |   |
|                                                       |   |                   |    |   |
| Add:  Interest      expense on Convertible Trust |   |                   |    |   |
| Capital      Securities, net of tax                        |   |                   | 5,446   |   |
|                                                       |   |                   |    |   |
| Pro      forma net income, diluted                         |   | $                      | 232,844 |   |
|                                                       |   |                   |    |   |
| Reported      net income per share:                        |   |                   |    |   |
| Basic                                                      |   | $                      | 1.70    |   |
| Diluted                                                    |   |                   | 1.61    |   |
|                                                       |   |                   |    |   |
| Pro      forma net income per share:                       |   |                   |    |   |
| Basic                                                      |   | $                      | 1.37    |   |
| Diluted                                                    |   |                   | 1.30    |   |

----

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | On      December 8, 2005, the Company’s board of directors approved the      acceleration of vesting of all outstanding unvested stock options awarded      prior to July 1, 2005 to employees and directors.  This      acceleration was effective as of December 16, 2005.  As a result      of the acceleration, options to purchase approximately 10.6 million shares      of common stock became immediately exercisable.  The future      unrecognized compensation expense related to the accelerated options,      approximately $41.0 million, net of tax, is reflected in the 2005 pro      forma amounts above.  The purpose of the acceleration was to      eliminate this future compensation expense that otherwise would have been      recognized under FAS 123R. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   | Information      concerning option activity for all option plans for the periods indicated      is as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

|                              |   |
|-----------------------------------|--------|
|                              |   | Shares      UnderOption |   |   | Weighted      Average Exercise Price |   |
| Balance      at January 1, 2005   |   |   | 26,524,136 |   |   | $ | 17.89 |   |
| Options      granted              |   |   | 3,807,829 |   |   |   | 31.17 |   |
| Options      exercised            |   |   | 2,869,666 |   |   |   | 14.25 |   |
| Options      canceled             |   |   | 568,223 |   |   |   | 27.77 |   |
| Balance      at December 31, 2005 |   |   | 26,894,076 |   |   |   | 19.88 |   |
| Options      granted              |   |   | 4,260,062 |   |   |   | 36.48 |   |
| Options      exercised            |   |   | 4,556,325 |   |   |   | 16.80 |   |
| Options      canceled             |   |   | 224,377 |   |   |   | 34.55 |   |
| Balance      at December 31, 2006 |   |   | 26,373,436 |   |   |   | 22.91 |   |
| Options      granted              |   |   | 3,757,125 |   |   |   | 33.18 |   |
| Options      exercised            |   |   | 7,711,243 |   |   |   | 17.75 |   |
| Options      canceled             |   |   | 956,967 |   |   |   | 35.00 |   |
| Balance      at December 31, 2007 |   |   | 21,462,351 |   |   |   | 26.03 |   |

|   | The      weighted-average fair value of options granted during the years ended      December 31, 2007 and 2006 was $8.35 and $9.61,    respectively.                                                                                                                                                                                                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                       |
|   | Cash      received from option exercises for the years ended December 31, 2007 and      2006 was approximately $83.0 million and $70.4 million,      respectively.  The intrinsic value of stock options exercised      during the years ended December 31, 2007 and 2006 was approximately $139.7      million and $85.9 million, respectively. |
|   |                                                                                                                                                                                                                                                                                                                                                       |
|   | Additional      information concerning options outstanding as of December 31, 2007 is as      follows:                                                                                                                                                                                                                                                     |

|                                |                 |   | Options    Outstanding |   |       | Options      Exercisable                       |   |
|-------------------------------------|----------------------|--------|------------------------|--------|------------|------------------------------------------------|--------|
|  Range      of exercise prices |                 |   | NumberOutstanding      |   |       | Weighted-AverageRemainingContractual      Life |   |   | Weighted-AverageExercise      Price |   |   | Exercisableas      of12/31/2007 |   |   | Weighted­AverageExercise      Price |   |
| $                                   | 5.52      to $10.00  |   |                   |   | 1,290,322  |                                           |   |   | 1.6 |   |   | $ | 9.38 |   |   |   | 1,290,322 |   |   | $ | 9.38 |   |
| $                                   | 10.01      to $15.00 |   |                   |   | 1,246,845  |                                           |   |   | 0.8 |   |   |   | 10.77 |   |   |   | 1,246,845 |   |   |   | 10.77 |   |
| $                                   | 15.01      to $20.00 |   |                   |   | 1,840,118  |                                           |   |   | 2.9 |   |   |   | 15.45 |   |   |   | 1,840,118 |   |   |   | 15.45 |   |
| $                                   | 20.01      to $25.00 |   |                   |   | 4,442,910  |                                           |   |   | 4.4 |   |   |   | 20.90 |   |   |   | 4,442,910 |   |   |   | 20.90 |   |
| $                                   | 25.01      to $40.12 |   |                   |   | 12,642,156 |                                           |   |   | 7.4 |   |   |   | 32.57 |   |   |   | 7,274,714 |   |   |   | 31.11 |   |

|   |   | The      aggregate intrinsic value for stock options outstanding and exercisable at      December 31, 2007 was $260.0 million and $240.7 million,      respectively. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                 |
|   |   | If      the merger with TD is completed, all unvested stock options will vest and      become immediately exercisable as of the merger date.                         |
|   |   |                                                                                                                                                                 |

----

| 17.    | BenefitPlans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Employee      401(k) PlanThe      Company has a defined contribution plan under Section 401(k) of the      Internal Revenue Code. The plan allows all eligible employees to defer a      percentage of their income on a pretax basis through contributions to the      plan. Under the provisions of the plan, the Company may match a percentage      of the employees' contributions subject to a maximum limit. The charge to      operations for Company matching contributions was $6.7 million, $6.4      million and $5.5 million for 2007, 2006 and 2005,      respectively.  As part of the 401(k) plan, the Company maintains      an Employee Stock Ownership Plan (ESOP) component for all eligible      employees. As of December 31, 2007, the ESOP held 2,289,575 shares of the      Company’s common stock, all of which were allocated to participant      accounts. Employer contributions are determined at the discretion of the      Board of Directors. No contribution expense was recorded for the ESOP in      2007, 2006 or 2005. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | Supplemental      Executive Retirement Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Effective      January 1, 2004, the Company’s Board of Directors formalized a      Supplemental Executive Retirement Plan (SERP), which was previously      approved January 1, 1992, for certain designated executives in order to      provide supplemental retirement income.  The SERP is a defined      contribution plan, is unfunded, and contributions are made at the      Company’s discretion.  For the years ended December 31, 2007,      2006 and 2005, the Company expensed $393,000, $374,000 and $355,000,      respectively, for the SERP.  If the merger with TD is completed,      the SERP will be terminated. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | Post-employment      or Post-retirement Benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The      Company offers no post-employment or post-retirement    benefits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

| 18.    | FairValue      ofFinancialInstruments                                                                                                                                                                                                                | FASB      Statement No. 107, "Disclosures about Fair Value of Financial Instruments"      (FAS 107), requires disclosure of fair value information about financial      instruments, whether or not recognized in the balance sheet, for which it      is practicable to estimate that value. In cases where quoted market prices      are not available, fair values are based on estimates using present value      or other valuation techniques. Those techniques are significantly affected      by the assumptions used, including the discount rate and estimates of      future cash flows. In that regard, the derived fair value estimates cannot      be substantiated by comparison to independent markets and, in many cases,      could not be realized in immediate settlement of the      instrument. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                 |
|   | FAS      107 excludes certain financial instruments and all non-financial      instruments from its disclosure requirements. Accordingly, the aggregate      fair value amounts presented do not represent the underlying value of the      Company. |
|   |                                                                                                                                                                                                                                                 |

----

|   | The      following table represents the carrying amounts and fair values of the      Company's financial instruments at December 31, 2007 and    2006: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | December      31,    |       |
|-------------------------------------|--------|----------------------|------------|
|                                |   | 2007                 |       |   | 2006 |   |
|                                |   | Carrying      Amount |       |   | FairValue |   |   | Carrying      Amount |   |   | FairValue |   |
| Financial      assets:              |   |                 |       |   |   |   |   |   |   |   |   |   |
| Cash and cash      equivalents      |   | $                    | 2,256,639  |   |   | $ | 2,256,639 |   |   | $ | 1,216,690 |   |   | $ | 1,216,690 |   |
| Loans held for    sale              |   |                 | 34,349     |   |   |   | 34,349 |   |   |   | 52,741 |   |   |   | 52,741 |   |
| Trading    securities               |   |                 | 225,786    |   |   |   | 225,786 |   |   |   | 106,007 |   |   |   | 106,007 |   |
| Investment      securities          |   |                 | 26,198,890 |   |   |   | 25,584,277 |   |   |   | 25,983,095 |   |   |   | 25,715,877 |   |
| Loans (net)                         |   |                 | 17,638,325 |   |   |   | 17,777,435 |   |   |   | 15,454,996 |   |   |   | 15,377,817 |   |
|                                |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:         |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                            |   |                 | 46,038,751 |   |   |   | 46,078,485 |   |   |   | 41,288,211 |   |   |   | 41,334,666 |   |
| Other borrowed      money           |   |                 | 100,954    |   |   |   | 100,954 |   |   |   | 777,404 |   |   |   | 777,404 |   |
| Off-balance      sheet instruments: |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Standby letters of      credit      |   | $                    | 1,574      |   |   | $ | 1,574 |   |   | $ | 2,952 |   |   | $ | 2,952 |   |
| Commitments to extend      credit   |   |                 |       |   |   |   | 28 |   |   |   |   |   |   |   | 124 |   |

|   | Refer      to Note 22 – Derivative Financial Instruments for fair value information      on derivative financialinstruments. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | The      following methods and assumptions were used by the Company in estimating      its fair value disclosures for financial instruments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Cash and cash equivalents,      loans held for sale and trading securities: The carrying amounts      reported approximate those assets' fair value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Investment securities:      For the Company’s U.S. Government agency, U.S. Government-Sponsored      agency, mortgage-backed obligations, asset-backed and municipal investment      securities, an evaluated market pricing model was used to determine fair      value.  The model used by the Company is an industry-standard      model from a third-party pricing service that considers various      assumptions, including time value, yield curve, volatility factors,      prepayment speeds, default rates, loss severity, current market and      contractual prices for the underlying financial instruments, as well as      other relevant economic measures.  The Company’s fair value      methodology required a degree of subjectivity in relation to the      assumptions used to run the model. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | For      the Company’s non-Agency mortgage-backed investment securities, fair value      at December 31, 2007 was determined based upon external quotes obtained      from reputable third-party broker/dealers.  When      position-specific quotes were not utilized, fair value was based on quotes      of comparable bonds.  Although the third-party brokers utilized      by the Company in the valuation of its non-Agency mortgage-backed      securities have the appropriate knowledge to estimate values, the      Company’s methodology most likely required considerable judgment by the      broker/dealers.                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Loans: For      variable-rate loans that reprice frequently and with no significant change      in credit risk, fair values are based on carrying values. The fair values      for other loans receivable were estimated using discounted cash flow      analyses, using interest rates currently being offered for loans with      similar terms to borrowers of similar credit quality. Loans with      significant collectibility concerns were fair valued on a loan-by-loan      basis utilizing a discounted cash flow method.                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Deposit liabilities:      The fair values disclosed for demand deposits (e.g.,      interest-bearing and noninterest-bearing checking, passbook savings, and      certain types of money market accounts) are, by definition, equal to the      amount payable on demand at the reporting date (i.e., their carrying      amounts). Fair values for fixed-rate certificates of deposit are estimated      using a discounted cash flow calculation that applies interest rates      currently being offered on certificates of deposit to a schedule of      aggregated expected monthly maturities on timedeposits.                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

|   | Other borrowed money:      The carrying amounts reported approximate fair    value.                                                                                                                                                                                                                                                                                                                                         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | Off-balance sheet liabilities:      Off-balance sheet liabilities of the Company consist of letters of      credit, loan commitments and unfunded lines of credit. Fair values for the      Company's off-balance sheet liabilities are based on fees currently      charged to enter into similar agreements, taking into account the      remaining terms of the agreements and the counterparties' credit      standing. |

| 19. | QuarterlyFinancialData(unaudited) | The      following represents summarized unaudited quarterly financial data of the      Company which, in the opinion of management, reflects adjustments      (comprising only normal recurring accruals) necessary for fair      presentation. |
|-----|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                       |   | Three      Months Ended     |    |
|------------------------------------------------------------|--------|-----------------------------|---------|
|                                                       |   | December      31            |    |   | September      30 |   |   | June      30 |   |   | March      31 |   |
|                                                       |   | (dollars      in thousands) |    |
| 2007                                                       |   |                        |    |   |   |   |   |   |   |   |   |   |
| Interest      income                                       |   | $                           | 672,682 |   |   | $ | 681,343 |   |   | $ | 657,108 |   |   | $ | 631,811 |   |
| Interest      expense                                      |   |                        | 301,968 |   |   |   | 334,221 |   |   |   | 314,283 |   |   |   | 298,855 |   |
| Net      interest income                                   |   |                        | 370,714 |   |   |   | 347,122 |   |   |   | 342,825 |   |   |   | 332,956 |   |
| Provision      for  credit losses                |   |                        | 55,000  |   |   |   | 26,000 |   |   |   | 12,550 |   |   |   | 10,000 |   |
| Net      investment securities (losses) gains              |   |                        | (1,912  | ) |   |   | (175,343 | ) |   |   |   |   |   |   | 2,879 |   |
| Provision      (benefit) for federal and stateincome taxes |   |                        | 23,275  |   |   |   | (31,716 | ) |   |   | 42,049 |   |   |   | 41,686 |   |
| Net      income (loss)                                     |   |                        | 33,360  |   |   |   | (47,911 | ) |   |   | 76,903 |   |   |   | 77,936 |   |
|                                                       |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per common share:                   |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                      |   | $                           | 0.17    |   |   | $ | (0.25 | ) |   | $ | 0.40 |   |   | $ | 0.41 |   |
| Diluted                                                    |   |                        | 0.17    |   |   |   | (0.24 | ) |   |   | 0.39 |   |   |   | 0.40 |   |
|                                                       |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2006                                                       |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                       |   | $                           | 609,093 |   |   | $ | 597,406 |   |   | $ | 562,162 |   |   | $ | 510,463 |   |
| Interest      expense                                      |   |                        | 283,422 |   |   |   | 275,436 |   |   |   | 243,225 |   |   |   | 202,533 |   |
| Net      interest income                                   |   |                        | 325,671 |   |   |   | 321,970 |   |   |   | 318,937 |   |   |   | 307,930 |   |
| Provision      for  credit losses                |   |                        | 10,200  |   |   |   | 9,499 |   |   |   | 7,500 |   |   |   | 6,501 |   |
| Provision      for federal and stateincome taxes           |   |                        | 56,108  |   |   |   | 39,890 |   |   |   | 41,089 |   |   |   | 39,800 |   |
| Net      income                                            |   |                        | 62,827  |   |   |   | 79,669 |   |   |   | 79,520 |   |   |   | 77,297 |   |
|                                                       |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per common share:                          |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                      |   | $                           | 0.33    |   |   | $ | 0.43 |   |   | $ | 0.43 |   |   | $ | 0.43 |   |
| Diluted                                                    |   |                        | 0.32    |   |   |   | 0.41 |   |   |   | 0.41 |   |   |   | 0.41 |   |

----

| 20.    | Condensed      | Balance      Sheets                             |              |
|--------|----------------|-------------------------------------------------|-------------------|
|   | Financial      |                                            |              |
|   | Statements     |                                            | December      31, |
|   | of      the    | (dollars      in thousands)                     |  2007        |  2006 |
|   | Parent         | Assets                                          |              |   |
|   | Company        | Cash                                            | $                 | 4,477 | $ | 5,488 |
|   | and      Other | Securities      available for sale              |              | 148,173 |   | 39,034 |
|   | Matters        | Investment      in subsidiaries                 |              | 2,676,020 |   | 2,754,104 |
|   |           | Other      assets                               |              | 9,992 |   | 25,890 |
|   |           | Total assets                                    | $                 | 2,838,662 | $ | 2,824,516 |
|   |           | Liabilities                                     |              |   |
|   |           | Other      liabilities                          | $                 | 54,704 | $ | 23,418 |
|   |           | Total    liabilities                            |              | 54,704 |   | 23,418 |
|   |           | Stockholders'      equity                       |              |   |
|   |           | Common      stock                               |              | 197,711 |   | 189,738 |
|   |           | Capital      in excess of par value             |              | 1,941,931 |   | 1,744,691 |
|   |           | Retained      earnings                          |              | 993,921 |   | 958,770 |
|   |           | Accumulated      other comprehensive loss       |              | (297,112) |   | (65,240) |
|   |           |                                            |              | 2,836,451 |   | 2,827,959 |
|   |           | Less      treasury stock, at cost               |              | 52,493 |   | 26,861 |
|   |           | Total stockholders'      equity                 |              | 2,783,958 |   | 2,801,098 |
|   |           | Total      liabilities and stockholders' equity | $                 | 2,838,662 | $ | 2,824,516 |

| Statements      of Income                                                              |   |                         |    |   |   |   |    |   |   |
|----------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                   |   |                         |    |   |   |   |    |   |   |
|                                                                                   |   | Year      Ended December 31, |    |
| (dollars      in thousands)                                                            |   | 2007                         |    |   | 2006   |   |    | 2005   |   |
| Income:                                                                                |   |                         |    |   |   |   |    |   |   |
| Dividends      from subsidiaries                                                       |   |                         |    |   | $      | 17,000 |    |   | $      | 25,000 |   |
| Interest      income                                                                   |   | $                            | 381     |   |   |   | 289     |   |   |   | 438 |   |
| Other                                                                                  |   |                         | (15,132 | )      |   |   | 5,774   |   |   |   | 3,659 |   |
|                                                                                   |   |                         | (14,751 | )      |   |   | 23,063  |   |   |   | 29,097 |   |
| Expenses:                                                                              |   |                         |    |   |   |   |    |   |   |   |   |   |
| Interest      expense                                                                  |   |                         |    |   |   |   |    |   |   |   | 8,639 |   |
| Operating      expenses                                                                |   |                         | 14,421  |   |   |   | 15,432  |   |   |   | 1,728 |   |
|                                                                                   |   |                         | 14,421  |   |   |   | 15,432  |   |   |   | 10,367 |   |
| Income      before income taxes and equityin      undistributed income of subsidiaries |   |                         | (29,172 | )      |   |   | 7,631   |   |   |   | 18,730 |   |
| Income      tax benefit                                                                |   |                         | (10,234 | )      |   |   | (2,973  | )      |   |   | (2,220 | ) |
|                                                                                   |   |                         | (18,938 | )      |   |   | 10,604  |   |   |   | 20,950 |   |
| Equity      in undistributed income of subsidiaries                                    |   |                         | 159,226 |   |   |   | 288,709 |   |   |   | 261,989 |   |
| Net      income                                                                        |   | $                            | 140,288 |   |   | $      | 299,313 |   |   | $ | 282,939 |   |
|                                                                                   |   |                         |    |   |   |   |    |   |   |   |   |   |

----

| Statements      of Cash Flows                                                              |   |                         |     |
|--------------------------------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                                       |   | Year      Ended December 31, |     |
| (dollars      in thousands)                                                                |   | 2007                         |     |   | 2006 |   |   | 2005 |   |
|                                                                                       |   |                         |     |   |   |   |   |   |   |
| Operating      activities:                                                                 |   |                         |     |   |   |   |   |   |   |
| Net      income                                                                            |   | $                            | 140,288  |   |   | $ | 299,313 |   |   | $ | 282,939 |   |
| Adjustments      to reconcile net income to netcash      provided by operating activities: |   |                         |     |   |   |   |   |   |   |   |   |   |
| Provision      for depreciation, amortization and accretion                                |   |                         | (59      | ) |   |   | 34 |   |   |   | 152 |   |
| Stock-based      compensation expense                                                      |   |                         | 17,045   |   |   |   | 7,376 |   |   |   |   |   |
| Undistributed      income of subsidiaries                                                  |   |                         | (159,226 | ) |   |   | (288,709 | ) |   |   | (261,989 | ) |
| Decrease      (increase) in other assets                                                   |   |                         | 23,051   |   |   |   | (4,618 | ) |   |   | (4,601 | ) |
| Increase      (decrease) in other liabilities                                              |   |                         | 29,975   |   |   |   | (56,346 | ) |   |   | 35,453 |   |
| Net      cash provided (used) by operating activities                                      |   |                         | 51,074   |   |   |   | (42,950 | ) |   |   | 51,954 |   |
| Investing      activities:                                                                 |   |                         |     |   |   |   |   |   |   |   |   |   |
| Investments      in subsidiaries                                                           |   |                         |     |   |   |   | (161,193 | ) |   |   | (155,000 | ) |
| Proceeds      from the maturity of securities available for sale                           |   |                         | 308,000  |   |   |   | 245,000 |   |   |   | 158,000 |   |
| Purchase      of securities available for sale                                             |   |                         | (415,719 | ) |   |   | (204,790 | ) |   |   | (177,451 | ) |
| Net cash used by investing      activities                                                 |   |                         | (107,719 | ) |   |   | (120,983 | ) |   |   | (174,451 | ) |
| Financing      activities:                                                                 |   |                         |     |   |   |   |   |   |   |   |   |   |
| Proceeds from issuance of      common stock                                                |   |                         |     |   |   |   |   |   |   |   |   |   |
| under dividend reinvestment and      other stock plans                                     |   |                         | 155,235  |   |   |   | 253,050 |   |   |   | 194,022 |   |
| Dividends paid                                                                             |   |                         | (99,601  | ) |   |   | (88,192 | ) |   |   | (72,363 | ) |
| Redemption      of long-term debt                                                          |   |                         |     |   |   |   |   |   |   |   | (155 | ) |
| Other                                                                                      |   |                         |     |   |   |   | 33 |   |   |   | (1 | ) |
| Net cash provided by financing      activities                                             |   |                         | 55,634   |   |   |   | 164,891 |   |   |   | 121,503 |   |
| (Decrease)      increase in cash and cash equivalents                                      |   |                         | (1,011   | ) |   |   | 958 |   |   |   | (994 | ) |
| Cash      and cash equivalents at beginning of year                                        |   |                         | 5,488    |   |   |   | 4,530 |   |   |   | 5,524 |   |
| Cash      and cash equivalents at end of year                                              |   | $                            | 4,477    |   |   | $ | 5,488 |   |   | $ | 4,530 |   |
| Supplemental      disclosures of cash flow information:                                    |   |                         |     |   |   |   |   |   |   |   |   |   |
| Cash paid during the period      for:                                                      |   |                         |     |   |   |   |   |   |   |   |   |   |
| Interest                                                                                   |   |                         |     |   |   |   |   |   |   | $ | 9,201 |   |
| Income taxes                                                                               |   | $                            | 90,300   |   |   | $ | 145,183 |   |   |   | 144,479 |   |

|   | Holders      of common stock of the Company are entitled to receive dividends when      declared by the Board of Directors out of funds legally available. Under      the New Jersey Business Corporation Act, the Company may pay dividends      only if it is solvent and would not be rendered insolvent by the dividend      payment and only to the extent of surplus (the excess of the net assets of      the Company over its stated capital).                                                                                                                                                                                                                 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | The      approval of the OCC is required for a national bank to pay dividends if      the total of all dividends declared in any calendar year exceeds net      profits (as defined) for that year combined with its retained net profits      for the preceding two calendar years. New Jersey state banks are subject      to similar dividend restrictions. Commerce NA and      Commerce North can declare dividends in 2008 without additional approval      of approximately $342.0 million and $107.0 million, respectively, plus an      additional amount equal to each bank's net profit for 2008 up to the date      of any such dividend declaration. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | The      Federal Reserve Act requires the extension of credit by any of the      Company’s banking subsidiaries to certain affiliates, including Commerce      Bancorp, Inc. (parent), be secured by readily marketable securities, that      extension of credit to any one affiliate be limited to 10% of the capital      and capital in excess of par or stated value, as defined, and that      extensions of credit to all such affiliates be limited to 20% of capital      and capital in excess of par or stated value. At December 31, 2007 and      2006, the Company complied with these guidelines.                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

|   | The      Company and its subsidiaries are subject to various regulatory capital      requirements administered by the federal banking agencies. Failure to meet      minimum capital requirements can initiate certain mandatory and possibly      additional discretionary actions by regulators that, if undertaken, could      have a direct material effect on the Company's financial statements. Under      capital adequacy guidelines and the regulatory framework for prompt      corrective action, the Company must meet specific guidelines that involve      quantitative measures of the Company's assets, liabilities, and certain      off-balance-sheet items as calculated under regulatory accounting      practices. The Company's capital amounts and classification are also      subject to qualitative judgments by the regulators about components, risk      weightings, and other factors. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | As      of December 31, 2007 and 2006, the Company and each of its subsidiary      banks were categorized as “well-capitalized” under the regulatory      framework for prompt corrective action. There are no conditions or events      since December 31, 2007 that management believes have changed any      subsidiary bank's capital category.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Quantitative      measures established by regulation to ensure capital adequacy require the      Company and its subsidiaries to maintain minimum amounts and ratios of      total and Tier I capital (as defined in the regulations) to risk-based      assets (as defined in the regulations) and of Tier I capital to average      assets (as defined in the regulations), or leverage. Management believes,      as of December 31, 2007, that the Company and its subsidiaries meet all      capital adequacy requirements to which they aresubject.                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The      following table presents the Company's and Commerce NA's risk-based and      leverage capital ratios at December 31, 2007 and  2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|                            |   |   |      |   | Per      Regulatory Guidelines |   |
|---------------------------------|--------|--------|-----------|--------|--------------------------------|--------|
|                            |   | Actual |      |   | Minimum                        |   |   | “Well      Capitalized” |   |
|                            |   | Amount |      |   | Ratio                          |   |   | Amount |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                            |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2007          |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                         |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk based capital      ratios: |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I                          |   | $      | 2,944,357 |   |                           |   | 11.21 | % |   | $ | 1,050,208 |   |   |   | 4.00 | % |   | $ | 1,575,313 |   |   |   | 6.00 | % |
| Total capital                   |   |   | 3,162,329 |   |                           |   | 12.04 |   |   |   | 2,100,417 |   |   |   | 8.00 |   |   |   | 2,625,521 |   |   |   | 10.00 |   |
| Leverage ratio                  |   |   | 2,944,357 |   |                           |   | 6.01 |   |   |   | 1,959,074 |   |   |   | 4.00 |   |   |   | 2,448,843 |   |   |   | 5.00 |   |
|                            |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commerce      NA                |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk based capital      ratios: |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1                          |   | $      | 2,489,156 |   |                           |   | 10.26 | % |   | $ | 970,194 |   |   |   | 4.00 | % |   | $ | 1,455,291 |   |   |   | 6.00 | % |
| Total capital                   |   |   | 2,686,446 |   |                           |   | 11.08 |   |   |   | 1,940,388 |   |   |   | 8.00 |   |   |   | 2,425,485 |   |   |   | 10.00 |   |
| Leverage ratio                  |   |   | 2,489,156 |   |                           |   | 5.56 |   |   |   | 1,789,426 |   |   |   | 4.00 |   |   |   | 2,236,782 |   |   |   | 5.00 |   |
|                            |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2006          |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                         |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk based capital      ratios: |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I                          |   | $      | 2,724,708 |   |                           |   | 11.73 | % |   | $ | 929,142 |   |   |   | 4.00 | % |   | $ | 1,393,712 |   |   |   | 6.00 | % |
| Total capital                   |   |   | 2,889,203 |   |                           |   | 12.44 |   |   |   | 1,858,283 |   |   |   | 8.00 |   |   |   | 2,322,854 |   |   |   | 10.00 |   |
| Leverage ratio                  |   |   | 2,724,708 |   |                           |   | 6.18 |   |   |   | 1,762,755 |   |   |   | 4.00 |   |   |   | 2,203,443 |   |   |   | 5.00 |   |
|                            |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commerce      NA                |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk based capital      ratios: |   |   |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1                          |   | $      | 2,403,663 |   |                           |   | 11.30 | % |   | $ | 850,791 |   |   |   | 4.00 | % |   | $ | 1,276,187 |   |   |   | 6.00 | % |
| Total capital                   |   |   | 2,546,651 |   |                           |   | 11.97 |   |   |   | 1,701,583 |   |   |   | 8.00 |   |   |   | 2,126,979 |   |   |   | 10.00 |   |
| Leverage ratio                  |   |   | 2,403,663 |   |                           |   | 6.00 |   |   |   | 1,602,556 |   |   |   | 4.00 |   |   |   | 2,003,196 |   |   |   | 5.00 |   |

----

| 21.    | SegmentReporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | The      Company operates one reportable segment of business, Community Banks,      which includes Commerce NA and Commerce North. Through its Community      Banks, the Company provides a broad range of retail and commercial banking      services, and corporate trust services. Parent/Other includes the holding      company, CBIS (whose noninterest revenues of $85.6 million, $83.5 million      and $76.2 million in 2007, 2006, and 2005, respectively, were reported in      other operating income), and CCMI (whose noninterest revenues of $30.3      million, $29.6 million, and $25.4 million in 2007, 2006, and 2005,      respectively, were reported in other operating income). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | As      contemplated by the Merger Agreement with TD, the Company completed the      sale of CBIS on December 31, 2007.  The sale included the      commercial property and casualty, employee benefits, and various specialty      insurance lines of CBIS and was approved by TD, as provided in the Merger      Agreement.  As part of the sale, the Company will retain      ownership of the retail personal-lines insurance business.  The      Company recorded a pre-tax gain of approximately $22.0 million related to      the sale. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Selected      segment information for each of the three years ended December 31 is as      follows (in thousands):                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

|                                               |   | 2007                 |             |   | 2006         |   |         | 2005   |   |
|----------------------------------------------------|--------|----------------------|------------------|--------|--------------|--------|--------------|--------|--------|
|                                               |   | Community      Banks |             |   | Parent/Other |   |         | Total  |   |   | CommunityBanks |   |   | Parent/Other |   |   | Total |   |   | CommunityBanks |   |   | Parent/Other |   |   | Total |   |
| Net      interest income (expense)                 |   | $                    | 1,389,346        |   |         | $      | 4,271        |   |   | $ | 1,393,617 |   |   | $ | 1,271,050 |   |   | $ | 3,458 |   |   | $ | 1,274,508 |   |   | $ | 1,157,208 |   |   | $ | (3,626 | ) |   | $ | 1,153,582 |   |
| Provision      for creditlosses                    |   |                 | 103,550          |   |         |   |         |   |   |   | 103,550 |   |   |   | 33,700 |   |   |   |   |   |   |   | 33,700 |   |   |   | 19,150 |   |   |   |   |   |   |   | 19,150 |   |
| Net      interest income (expense) after provision |   |                 |   1,285,796 |   |         |   |   4,271 |   |   |   |   1,290,067 |   |   |   |   1,237,350 |   |   |   |   3,458 |   |   |   |   1,240,808 |   |   |   |   1,138,058 |   |   |   | (3,626 | ) |   |   |   1,134,432 |   |
| Noninterest      income                            |   |                 | 419,327          |   |         |   | 117,427      |   |   |   | 536,754 |   |   |   | 463,873 |   |   |   | 127,280 |   |   |   | 591,153 |   |   |   | 337,979 |   |   |   | 104,815 |   |   |   | 442,794 |   |
| Noninterest      expense                           |   |                 | 1,484,720        |   |         |   | 126,519      |   |   |   | 1,611,239 |   |   |   | 1,241,873 |   |   |   | 113,888 |   |   |   | 1,355,761 |   |   |   | 1,063,467 |   |   |   | 82,913 |   |   |   | 1,146,380 |   |
| Income      before income      taxes               |   |                 | 220,403          |   |         |   | (4,821       | )      |   |   | 215,582 |   |   |   | 459,350 |   |   |   | 16,850 |   |   |   | 476,200 |   |   |   | 412,570 |   |   |   | 18,276 |   |   |   | 430,846 |   |
| Income      tax expense                            |   |                 | 76,546           |   |         |   | (1,252       | )      |   |   | 75,294 |   |   |   | 170,122 |   |   |   | 6,765 |   |   |   | 176,887 |   |   |   | 141,610 |   |   |   | 6,297 |   |   |   | 147,907 |   |
| Net      income                                    |   | $                    | 143,857          |   |         | $      | (3,569       | )      |   | $ | 140,288 |   |   | $ | 289,228 |   |   | $ | 10,085 |   |   | $ | 299,313 |   |   | $ | 270,960 |   |   | $ | 11,979 |   |   | $ | 282,939 |   |
| Average      assets(in millions)                   |   | $                    | 44,409           |   |         | $      | 3,328        |   |   | $ | 47,737 |   |   | $ | 39,260 |   |   | $ | 2,902 |   |   | $ | 42,162 |   |   | $ | 31,534 |   |   | $ | 2,472 |   |   | $ | 34,006 |   |

|   | The      financial information for each segment is reported on the basis used      internally by the Company’s management to evaluate performance.      Measurement of the performance of each segment is based on the management      structure of the Company and is not necessarily comparable with financial      information from other entities. The information presented is not      necessarily indicative of the segment’s results of operations if each of      the Community Banks were independententities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.    | DerivativeFinancialInstruments | As      part of CCMI’s broker-dealer activities, CCMI maintains a trading      securities portfolio for distribution to its customers in order to meet      those customers’ needs. In order to reduce the exposure to market risk      relating to the trading securities portfolio, CCMI buys and sells      derivative financial instruments, primarily interest rate futures and      option contracts.  Realized and unrealized gains and losses on      derivative financial instruments are included in other operating      income.  As of December 31, 2007 and 2006, the notional amount      of interest rate futures and option contract positions was $2.0 million      and $39.0 million, with an aggregate unrealized loss of $21 thousand and      gain of $262 thousand, respectively. |
|--------|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                           | As      an accommodation to its loan customers, the Company enters into interest      rate swap agreements.  The Company minimizes its market risk by      concurrently entering into offsetting swap agreements with counterparties.      The offsetting swap agreements generally have identical notional values      and terms.  These swaps are carried at estimated fair value with      changes in estimated fair value included in other operating      income.  As of December 31, 2007 and 2006, the notional amount      of interest rate swap positions was $2.2 billion and $1.3 billion,      respectively, with aggregate fair values of $10.4 million and $5.7      million, respectively.                                                                                                 |
|   |                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                           | As      part of the Company’s residential mortgage activities, the Company enters      into interest rate lock commitments with its customers. The interest rate      lock commitments on residential mortgage loans intended to be held for      sale are considered free standing derivative instruments. The option to      sell the mortgage loans at the time the commitments are made are also free      standing derivative instruments.  Generally, the change in fair      value of these derivative instruments due to changes in interest rates      offset each other.                                                                                                                                                                                                                                      |

----

Item 9.  Changes In and Disagreements 

Item 9A. Controls and Procedures

Item 9B.  Other Information

----

Item 10. Directors and Executive Officers of the Registrant andCorporate Governance

| Name                        | Age    | Positions      with the Company and Subsidiaries(1)                                                                                                                                                                                                                                                                       |
|-----------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |   |                                                                                                                                                                                                                                                                                                                      |
| Dennis      M. DiFlorio     | 54     | Chairman      of Commerce NA since June 2007; President of Commerce NA from February      2007 through June 2007; President, Retail/Support of Commerce NA from 2004      through February 2007; Executive Vice President of Commerce NA from      January 1996 through 2004; Director of Commerce North since      1997. |
|                        |   |                                                                                                                                                                                                                                                                                                                      |
| Douglas      J. Pauls       | 49     | Executive      Vice President of Bancorp and Commerce NA since March 2006; Chief      Financial Officer of Bancorp and Commerce NA since March    2002.                                                                                                                                                                   |
|                        |   |                                                                                                                                                                                                                                                                                                                      |
| Robert      D. Falese, Jr.  | 61     | President      and Chief Executive Officer of Commerce NA since June 2007; President,      Commercial and Investment Banking of Commerce NA from 2004 through June      2007; Executive Vice President and Senior Loan Officer of Commerce NA from      1992 through 2004.                                                |
|                        |   |                                                                                                                                                                                                                                                                                                                      |
| Fred      Graziano          | 49     | President,      Regional Banking of Commerce NA since February 2007; Market President for      Northern New Jersey market of Commerce NA and Commerce North from 2002      through February 2007.                                                                                                                         |
|                        |   |                                                                                                                                                                                                                                                                                                                      |
| Peter      M. Musumeci, Jr. | 57     | Executive      Vice President and Senior Credit Officer of Commerce NA since 1986;      Treasurer and Assistant Secretary of Bancorp since1984.                                                                                                                                                                           |
|                        |   |                                                                                                                                                                                                                                                                                                                      |

----

| Name                          | Age    | Positions      with the Company and Subsidiaries |
|-------------------------------|--------|--------------------------------------------------|
| Jack      R Bershad           | 77     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| Joseph      E. Buckelew       | 79     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| Donald      T. DiFrancesco    | 63     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| Nicholas      A. Giordano     | 65     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| Morton      N. Kerr           | 77     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| Steven      M. Lewis          | 58     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| John      K. Lloyd            | 62     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| George      E. Norcross, III  | 52     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| Daniel      J. Ragone         | 80     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| William      A. Schwartz, Jr. | 67     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| Joseph      T. Tarquini, Jr.  | 72     | Director      of Bancorp and Commerce NA         |
|                          |   |                                             |
| Joseph      S. Vassalluzzo    | 60     | Director      of Bancorp and Commerce NA         |

----

----

----

Item 11. Executive Compensation

Compensation Discussion and Analysis

| ·   | develop      policies, processes and procedures for considering and determining the      compensation and benefits of the Company’s executive officers and annually      review and reassess the adequacy of such policies, processes and      procedures; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | subject      to the ratification of the Board, annually evaluate the performance of the      Company’s Chief Executive Officer or person performing similar functions      (CEO) and determine and approve his compensation based on this      evaluation; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | subject      to the ratification of the Board, review and approve non-CEO executive      officer compensation; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | review      and make recommendations concerning employment agreements and any      amendments or renewals thereof; |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | subject      to the ratification of the Board, administer equity-based and other      employee benefit plans, which are required to be administered by the Board      or a committee of the Board, and appoint and remove plan administrators      for the Company’s other employee benefitplans; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | annually      review the compensation paid to non-employee directors and make      recommendations to the Board for any adjustments;  and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | review      periodic reports from management on matters relating to the Company’s      compensation practices. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

----

| ·   | salary; |
|--------------------|---------|

| ·   | bonus; |
|--------------------|--------|

| ·         | stock      option awards;                               |
|--------------------------|---------------------------------------------------------|
|                     |                                                    |
|  ·   | severance      and change in control benefits;and  |

| ·   | other      benefits. |
|--------------------|----------------------|

| ·   | a      salary that competitively compensates the executive based on position and      experience; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | a      discretionary cash bonus that is based on an assessment of the executive’s      performance within the context of the Company’s overall performance;      and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | stock      option awards, the value of which is dependent upon increases in the      Company’s stock price after the date that the option is      granted. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | financial      measurements such as asset, deposit and loan growth, total revenues, net      income, net income per share, asset quality and shareholder      returns; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | promoting      the “Commerce” brand; |
|--------------------|--------------------------------------------------|

| ·   | executing      the “Commerce” model; |
|--------------------|--------------------------------------------------|

| ·   | enforcing      the “Commerce” culture; and |
|--------------------|--------------------------------------------------------|

| ·   | achieving      operational and/or industry excellence by improving the customer      experience. |
|--------------------|--------------------------------------------------------------------------------------------------|

----

----

----

|  Name      and Principal Position                   |  Year |  Salary  |  Bonus | Option      Awards      (3) | All      Other Compensation      (4) |  Total |
|----------------------------------------------------------|------------|---------------|-------------|-----------------------------|--------------------------------------|-------------|
|                                                     |       |          |        |                        |                                 |        |
| Dennis      M. DiFlorio                                  | 2007       | $962,500      | $500,000    | $565,203                    | $13,655                              | $2,041,358  |
| Chairman      of  Commerce NA                  | 2006       | 900,000       | 500,000     | 284,109                     | 14,076                               | 1,698,185   |
|                                                     |       |          |        |                        |                                 |        |
| Douglas      J. Pauls                                    | 2007       | 543,750       | 250,000     | 121,294                     | 40,285                               | 955,329     |
| Executive      Vice President and                        | 2006       | 450,000       | 150,000     | 56,822                      | 19,779                               | 676,601     |
|     Chief      Financial Officer     |       |          |        |                        |                                 |        |
|                                                     |       |          |        |                        |                                 |        |
| Robert      D. Falese, Jr.                               | 2007       | 900,000       | 500,000     | 565,203                     | 40,330                               | 2,005,533   |
| President      and Chief Executive                       | 2006       | 900,000       | 500,000     | 284,109                     | 43,311                               | 1,727,420   |
|     Officer      of Commerce NA      |       |          |        |                        |                                 |        |
|                                                     |       |          |        |                        |                                 |        |
| Fred      Graziano                                       | 2007       | 562,500       | 250,000     | 161,725                     | 56,376                               | 1,030,601   |
| President,      Regional Banking of                      | 2006       | 500,000       | 150,000     | 75,763                      | 26,682                               | 752,445     |
|     Commerce      NA                 |       |          |        |                        |                                 |        |
|                                                     |       |          |        |                        |                                 |        |
| George      E. Norcross, III (1)                         | 2007       | 973,750       | -           | 445,578                     | 45,109                               | 1,464,437   |
| Chairman      and Chief Executive                        | 2006       | 950,000       | 500,000     | 189,406                     | 48,005                               | 1,687,411   |
| Officer,      Commerce Banc                              |       |          |        |                        |                                 |        |
| Insurance      Services, Inc.                            |       |          |        |                        |                                 |        |
|                                                     |       |          |        |                        |                                 |        |
| Former                                                   |       |          |        |                        |                                 |        |
| Vernon      W. Hill, II (2)                              | 2007       |  625,000 | -           | 854,188                     | 58,653                               | 1,537,841   |
| Former      Chairman, President                          | 2006       | 1,000,000     | 1,500,000   | 947,031                     | 163,544                              | 3,610,575   |
|     and      Chief Executive Officer |       |          |        |                        |                                 |        |

----

|                               | Dennis      M. DiFlorio                            | Douglas      J. Pauls                  | Robert      D. Falese,      Jr.                    | FredGraziano                           | George      E. Norcross,      III | Vernon      W. Hill,      II |
|------------------------------------|----------------------------------------------------|----------------------------------------|----------------------------------------------------|----------------------------------------|-----------------------------------|------------------------------|
|                               |                                               |                                   |                                               |                                   |                              |                         |
| Life      insurance premiums       | $        - | $      - | $        - | $      - | $10,095                           | $5,351                       |
|                               |                                               |                                   |                                               |                                   |                              |                         |
| Long-term      disability policies | 5,224                                              | 810                                    | 14,353                                             | 810                                    | 1,002                             | 6,010                        |
|                               |                                               |                                   |                                               |                                   |                              |                         |
| 401(k)      contributions          | 5,625                                              | 5,625                                  | 5,625                                              | 5,625                                  | 5,625                             | 5,625                        |
|                               |                                               |                                   |                                               |                                   |                              |                         |
| Personal      use of company car   | 2,806                                              | 6,015                                  | 4,622                                              | 4,091                                  | 2,880                             | -                            |
|                               |                                               |                                   |                                               |                                   |                              |                         |
| Expense      allowance             | -                                                  | -                                      | -                                                  | -                                      | 21,781                            | 41,667                       |
|                               |                                               |                                   |                                               |                                   |                              |                         |
| Country      Club dues             | -                                                  | 27,835                                 | 15,730                                             | 45,850                                 | 3,726                             | -                            |
|                               |                                               |                                   |                                               |                                   |                              |                         |
| Total                              | $13,655                                            | $40,285                                | $40,330                                            | $56,376                                | $45,109                           | $58,653                      |

----

----

| ·   | death; |
|--------------------|--------|

| ·   | permanent      disability; |
|--------------------|----------------------------|

| ·   | a termination      of the named executive officer's employment other than a termination by      the Company for cause or a voluntary resignation by the named executive      officer; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | change      in control. |
|--------------------|-------------------------|

| ·   | both      a “change in control,” as defined in the employment agreement, and any of      the following occur, without prior written consent of the named executive      officer: (i) a reduction in the nature and scope of the named executive      officer’s authority to a level below that which he enjoys when the change      in control occurs; (ii) duties and responsibilities of the named executive      officer are materially inconsistent with that which he enjoys when the      change in control occurs; (iii) fringe benefits provided by the Company to      the named executive officer are materially reduced to a level below that      which he enjoys when the change in control occurs; (iv) the named      executive officer’s position or title is reduced from his current position      or title with the Company when the change in control occurs; (v) any      relocation or transfer of the Company’s principal executive offices to a      location more than fifty miles from their location when the change of      control occurs or if the named executive is required, without his written      consent, to relocate more than fifty miles from his principle residence      when the change in control occurs; (vi) the Company materially breaches      the named executive officer’s employment agreement; or (vii) there is a      failure or refusal of any successor to the Company to assume all duties      and obligations of the Company under the named Executive Officer’s      employment agreement. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                                                                                                                                                                                                                        |   |   Payment      upon Death      (1) |      |   | Payment      upon Permanent      Disability      (2)(3) |   |      | Payment      upon Involuntary      Termination (2)(3) |   |   |   Payment      upon Change in      Control (3)(4)(5)(6) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-----------|--------|---------------------------------------------------------|--------|-----------|------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|--------|
| Dennis      M.      DiFlorio                                      |   | $                                            | 3,000,000 |   |                                                    | $      | 2,790,000 |                                                       |   | $      | 2,790,000                                                              |   |   | $ | 11,494,125 |   |
| Douglas      J. Pauls                                                                                                                                                                                                                       |   |                                         | 1,800,000 |   |                                                    |   | 1,690,000 |                                                       |   |   | 1,690,000                                                              |   |   |   | 6,030,425 |   |
| Robert      D. Falese,      Jr.                                   |   |                                         | 2,700,000 |   |                                                    |   | 2,515,000 |                                                       |   |   | 2,515,000                                                              |   |   |   | 10,894,125 |   |
| Fred      Graziano                                                                                                                                                                                                                          |   |                                         | 1,800,000 |   |                                                    |   | 1,690,000 |                                                       |   |   | 1,690,000                                                              |   |   |   | 6,093,900 |   |
| George      E. Norcross, III. (7)                                                                                                                                                                                                           |   |                                         |  -   |   |                                                    |   | -         |                                                       |   |   | -                                                                      |   |   |   | 7,631,500 |   |
|                                                                                                                                                                                                                                        |   |                                         |      |   |                                                    |   |      |                                                       |   |   |                                                                   |   |   |   |   |   |
| Former                                                                                                                                                                                                                                      |   |                                         |      |   |                                                    |   |      |                                                       |   |   |                                                                   |   |   |   |   |   |
| Vernon      W. Hill, II. (8)                                                                                                                                                                                                                |   |                                         | -         |   |                                                    |   | -         |                                                       |   |   | -                                                                      |   |   |   | - |   |

| (1)   | Represents      an amount equal to three times the annual base salary in effect at the      date of death for Messrs. DiFlorio, Pauls, Falese and Graziano. Messrs.      DiFlorio, Pauls, Falese and Graziano participate in the Company’s group      life insurance program offered to Company employees.  Amounts      payable under the group life program are not included    above. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents      amounts equal to the base salary in effect for the remainder of the term      for each respective employment agreement for Messrs. DiFlorio, Pauls,      Falese and Graziano.  Messrs. DiFlorio, Pauls, Falese and      Graziano participate in the Company’s group long-term disability      program.  Amounts payable under the group long-term disability      program are not included above. In addition, Messrs. DiFlorio and Falese      are covered by separate long-term disability plans paid for by the      Company.  Annual benefits approximate $110,000 and $186,000 for      Messrs. DiFlorio and Falese, respectively, and are not included      above. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Messrs.      DiFlorio, Pauls, Falese and Graziano are entitled to participate in all      Company medical, hospital, disability and life insurance benefits for      three years after termination, the aggregate value of which is estimated      to be $40,000. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Represents      change in control payments of $7,627,500, $4,000,000, $7,327,500 and      $4,000,000 for Messrs. DiFlorio, Pauls, Falese and Graziano, respectively,      payable in four equal installments with the first installment paid on the      closing date of a change in control transaction and the remaining      installments being paid on each successive  anniversary. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Represents      amounts equal to the base salary in effect for the remainder of the term      for each respective employment agreement for Messrs. DiFlorio, Pauls,      Falese and Graziano.  Per each employment agreement, the term is      extended until the three year anniversary of the closing date if there is      a change in control within eighteen months of the initial      term. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Any      unvested stock options held by Messrs. DiFlorio, Pauls, Falese and      Graziano vest upon a change in control.  The value for the      vesting of stock options is determined by multiplying the difference      between the market price of the Company’s common stock at December 31,      2007 and the exercise price of the stock option by the number of options      to vest upon a change in control.  All stock options remain      outstanding and exercisable for a two-year period following      termination.  Value, if any, associated with the extended term      is not included above. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | On      December 31, 2007, the Company completed the sale of CBIS to a group led      by Mr. Norcross.  The sale of CBIS was contemplated by the      Merger Agreement and approved by TD.  Per Mr. Norcross’      employment agreement, the amount represents a $3,591,500 change in control      payment and a $4,000,000 payment to Mr. Norcross as consideration for      entering into a non-competition agreement with the Company. Any unvested      stock options held by Mr. Norcross vested upon the sale of      CBIS.  After a change in control, all stock options shall remain      outstanding and exercisable for their entire term.  Value, if      any, associated with the extended term is not included      above.  Mr. Norcross is entitled to participate in all Company      medical, hospital, disability and life insurance benefits for three years      after termination, the aggregate value of which is estimated to be      $40,000. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Mr.      Hill was Chairman, President and Chief Executive Officer of the Company      through July 31, 2007.  Per the terms of his Amended and      Restated Employment Agreement, Mr. Hill was entitled to a lump sum      severance payment of $11.0 million.  Payment of this amount is      subject to regulatory approval and, as a result, no amounts have been paid      as such approval has not beengranted. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name                                                                                                                                                                                                                                        | Grant      Date     | Number      of Securities Underlying      Options (1) | Exercise      or Base Price      of Option Awards      (2) | Grant      Date Fair Value      of Option Awards      (3) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|-------------------------------------------------------|------------------------------------------------------------|-----------------------------------------------------------|
|                                                                                                                                                                                                                                        |                |                                                  |                                                       |                                                      |
| Dennis      M.      DiFlorio                                      | March      20, 2007 | 125,000                                               | $33.12                                                     | $1,042,500                                                |
| Douglas      J. Pauls                                                                                                                                                                                                                       | March      20, 2007 | 30,000                                                | 33.12                                                      | 250,200                                                   |
| Robert      D. Falese,      Jr.                                   | March      20, 2007 | 125,000                                               | 33.12                                                      | 1,042,500                                                 |
| Fred      Graziano                                                                                                                                                                                                                          | March      20, 2007 | 40,000                                                | 33.12                                                      | 333,600                                                   |
| George      E. Norcross, III.                                                                                                                                                                                                               | March      20, 2007 | 125,000                                               | 33.12                                                      | 1,042,500                                                 |
|                                                                                                                                                                                                                                        |                |                                                  |                                                       |                                                      |
| Former                                                                                                                                                                                                                                      |                |                                                  |                                                       |                                                      |
| Vernon      W. Hill, II (4)                                                                                                                                                                                                                 | March      20, 2007 | 200,000                                               | 33.12                                                      | 1,668,000                                                 |

| (1)   | This      column shows the number of stock options granted in 2007 to each named      executive officer. |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (2)   | This      column shows the exercise price for options granted in 2007 to each named      executive officer, which was the closing price of the Company’s Common      Stock on March 20, 2007, the date the options were  granted. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3)   | This      column shows the full grant date fair value, under FAS 123R, of options      granted to each named executive officer in 2007.  Generally, the      full grant date fair value is the amount the Company would recognize for      financial statement reporting purposes over the award’s vesting schedule.      Options granted in 2007 were valued at $8.34 using a Black-Scholes option      pricing model in accordance with FAS 123R. For a discussion of valuation      assumptions, see Note 16 to the Company’s consolidated financial      statements, which appears elsewhereherein. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Mr.      Hill was Chairman, President and Chief Executive Officer of the Company      through July 31, 2007. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| Name                              | Option      Grant Date  | Number      of Securities Underlying Unexercised Options – Exercisable (1)  | Number      of Securities Underlying Unexercised Options – Unexercisable (2)  | Option      Exercise Price  | Option      Expiration Date  |
|----------------------------------------|------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|----------------------------------|-----------------------------------|
| Dennis      M. DiFlorio                | December      15, 1998       | 58,826                                                                                 |                                                                                     | $10.92                           | December      15, 2008            |
|                                   | December      21, 1999       | 200,208                                                                                |                                                                                     | 9.64                             | December      21, 2009            |
|                                   | January      31, 2001        | 200,000                                                                                |                                                                                     | 15.30                            | January      31, 2011             |
|                                   | February      4, 2002        | 150,000                                                                                |                                                                                     | 20.06                            | February      4, 2012             |
|                                   | February      18, 2003       | 150,000                                                                                |                                                                                     | 21.40                            | February      18, 2013            |
|                                   | February      3, 2004        | 150,000                                                                                |                                                                                     | 29.45                            | February      3, 2014             |
|                                   | March      8, 2005           | 100,000                                                                                |                                                                                     | 31.38                            | March      8, 2015                |
|                                   | March      14, 2006          | 37,500                                                                                 | 112,500                                                                                  | 36.37                            | March      14, 2016               |
|                                   | March      20, 2007          |                                                                                   | 125,000                                                                                  | 33.12                            | March      20, 2017               |
|                                   |                         |                                                                                   |                                                                                     |                             |                              |
| Douglas      J. Pauls                  | February      18, 2003       | 50,000                                                                                 |                                                                                     | $21.40                           | February      18, 2013            |
|                                   | February      3, 2004        | 50,000                                                                                 |                                                                                     | 29.45                            | February      3, 2014             |
|                                   | March      8, 2005           | 30,000                                                                                 |                                                                                     | 31.38                            | March      8, 2015                |
|                                   | March      14, 2006          | 7,500                                                                                  | 22,500                                                                                   | 36.37                            | March      14, 2016               |
|                                   | March      20, 2007          |                                                                                   | 30,000                                                                                   | 33.12                            | March      20, 2017               |
|                                   |                         |                                                                                   |                                                                                     |                             |                              |
| Robert      D. Falese, Jr.             | February      4, 2002        | 145,016                                                                                |                                                                                     | $20.06                           | February      4, 2012             |
|                                   | February      18, 2003       | 140,656                                                                                |                                                                                     | 21.40                            | February      18, 2013            |
|                                   | February      3, 2004        | 150,000                                                                                |                                                                                     | 29.45                            | February      3, 2014             |
|                                   | March      8, 2005           | 100,000                                                                                |                                                                                     | 31.38                            | March      8, 2015                |
|                                   | March      14, 2006          | 37,500                                                                                 | 112,500                                                                                  | 36.37                            | March      14, 2016               |
|                                   | March      20, 2007          |                                                                                   | 125,000                                                                                  | 33.12                            | March      20, 2017               |
|                                   |                         |                                                                                   |                                                                                     |                             |                              |
| Fred      Graziano                     | January      31, 2001        | 60,000                                                                                 |                                                                                     | $15.30                           | January      31, 2011             |
|                                   | February      4, 2002        | 30,000                                                                                 |                                                                                     | 20.06                            | February      4, 2012             |
|                                   | February      18, 2003       | 40,000                                                                                 |                                                                                     | 21.40                            | February      18, 2013            |
|                                   | February      3, 2004        | 40,000                                                                                 |                                                                                     | 29.45                            | February      3, 2014             |
|                                   | March      8, 2005           | 30,000                                                                                 |                                                                                     | 31.38                            | March      8, 2015                |
|                                   | March      14, 2006          | 10,000                                                                                 | 30,000                                                                                   | 36.37                            | March      14, 2016               |
|                                   | March      20, 2007          |                                                                                   | 40,000                                                                                   | 33.12                            | March      20, 2017               |
|                                   |                         |                                                                                   |                                                                                     |                             |                              |
| George      E. Norcross, III. (3) | December      16, 1997       | 190,164                                                                                |                                                                                     | $8.05                            | January      15, 2008             |
|                                   | December      15, 1998       | 220,496                                                                                |                                                                                     | 10.92                            | December      15, 2008            |
|                                   | December      21, 1999       | 209,996                                                                                |                                                                                     | 9.64                             | December      21, 2009            |
|                                   | January      31, 2001        | 200,000                                                                                |                                                                                     | 15.30                            | January      31, 2011             |
|                                   | February      4, 2002        | 200,000                                                                                |                                                                                     | 20.06                            | February      4, 2012             |
|                                   | February      18, 2003       | 200,000                                                                                |                                                                                     | 21.40                            | February      18, 2013            |
|                                   | February      3, 2004        | 200,000                                                                                |                                                                                     | 29.45                            | February      3, 2014             |
|                                   | March      8, 2005           | 100,000                                                                                |                                                                                     | 31.38                            | March      8, 2015                |
|                                   | March      14, 2006          | 100,000(4)                                                                             |                                                                                     | 36.37                            | March      14, 2016               |
|                                   | March      20, 2007          | 125,000(4)                                                                             |                                                                                     | 33.12                            | March      20, 2017               |
|                                   |                         |                                                                                   |                                                                                     |                             |                              |
| Former                                 |                         |                                                                                   |                                                                                     |                             |                              |
| Vernon      W. Hill, II. (5)           | -                            | -                                                                                      | -                                                                                        | -                                | -                                 |

----

| Name                                                                                                                                                                                                                                        | Number      of Shares Acquired      on Exercise | Value      Realized on      Exercise |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--------------------------------------|
| Dennis      M. DiFlorio(1)                                                                                                                                                                                                                  | 90,161                                          | $2,178,548                           |
| Douglas      J. Pauls(2)                                          | 203,020                                         | 5,058,233                            |
| Robert      D. Falese,      Jr.                                   | -                                               | -                                    |
| Fred      Graziano                                                                                                                                                                                                                          | -                                               | -                                    |
| George      E. Norcross, III.(3)                                                                                                                                                                                                            | 12,412                                          | 382,290                              |
|                                                                                                                                                                                                                                        |                                            |                                 |
| Former                                                                                                                                                                                                                                      |                                            |                                 |
| Vernon      W. Hill, II (4)                                       | 3,616,020                                       | 67,304,568                           |

| (1)   | Mr.      DiFlorio exercised (a) 31,332 stock options on April 4, 2007 with a      weighted-average exercise price of $9.38 and a market price of $33.50, and      (b) 58,829 stock options on June 6, 2007 with a weighted-average exercise      price of $10.11 and a market price of$34.30. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Mr.      Pauls exercised (a) 6,500 stock options on March 28, 2007 with an exercise      price of $8.05 and a market price of $33.47, (b) 6,300 stock options on      November 15, 2007 with an exercise price of $10.92 and a market price of      $37.46, (c) 7,000 stock options on November 16, 2007 with an exercise      price of $10.92 and a market price of $36.24, (d) 6,800 stock options on      November 20, 2007 with an exercise price of $10.92 and a market price of      $35.17, (e) 6,764 stock options on November 21, 2007 with a      weighted-average exercise price of $10.16 and a market price of $34.96,      (f) 7,000 stock options on November 28, 2007 with an exercise price of      $9.64 and a market price of $35.28, (g) 113,656 stock options on November      30, 2007 with a weighted-average exercise price of $12.54 and a market      price of $39.34, (h) 9,000 stock options on December 7, 2007 with an      exercise price of $9.64 and a market price of $39.40, and (i) 40,000 stock      options on December 20, 2007 with an exercise price of $20.06 and a market      price of $38.14. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Mr.      Norcross exercised 12,412 stock options on December 12, 2007 with an      exercise price of $8.05 and a market price of  $38.85. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Mr.      Hill exercised (a) 2,391,020 stock options on March 21, 2007 with a      weighted-average exercise price of $10.56 and a market price of $34.41,      (b) 1,100,000 stock options on August 2, 2007 with an weighted-average      exercise price of $25.04 and a market price of $33.98 and (c) 125,000      stock options on October 30, 2007 with a weighted-average exercise price      of $36.37 and a market price of$39.88. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                              | Registrant      Contributions      in Last      Fiscal Year | Aggregate      Earnings      in LastFiscal      Year (1) | Aggregate      Withdrawals/      Distributions | Aggregate      Balanceat      Last Fiscal Year End |
|-----------------------------------|-------------------------------------------------------------|----------------------------------------------------------|------------------------------------------------|----------------------------------------------------|
| Dennis      M. DiFlorio           | $  -                                              | $51,430                                                  | $  -                                 | $1,067,321                                         |
| Douglas      J. Pauls             | -                                                           | 1,468                                                    | -                                              | 30,460                                             |
| Robert      D. Falese, Jr.        | -                                                           | 43,382                                                   | -                                              | 899,182                                            |
| Fred      Graziano                | -                                                           | 2,055                                                    | -                                              | 42,644                                             |
| George      E. Norcross, III.     | -                                                           | 54,424                                                   | -                                              | 1,129,460                                          |
|                              |                                                        |                                                     |                                           |                                               |
| Former                            |                                                        |                                                     |                                           |                                               |
| Vernon      W. Hill, II (2)  |  -                                                     | 161,486                                                  | 567,200                                        | 2,883,177                                          |

| (1)   | This      column shows discretionary earnings credits for each named executive      officer.  As the earnings credited to each account in 2007 did      not represent an above-market rate, no amounts are included in the Summary      Compensation Table. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Mr.      Hill was Chairman, President and Chief Executive Officer of the Company      through July 31, 2007.  Mr. Hill’s aggregate balance at last      fiscal year end was distributed to him during  2008. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Name                    | Fees      Earned or Paid in Cash (1) | Option      Awards (2)(3) | All      Other Compensation (4) |  Total |
|-------------------------------|--------------------------------------|---------------------------|---------------------------------|-------------|
|                          |                                 |                      |                            |        |
| Jack      R Bershad           | $143,000                             | $30,323                   | $201,781                        | $375,104    |
|                          |                                 |                      |                            |        |
| Donald      T. DiFrancesco    | 144,500                              | 30,323                    | 331,060                         | 505,883     |
|                          |                                 |                      |                            |        |
| Nicholas      A. Giordano     | 119,333                              | 12,380                    | 105,151                         | 236,864     |
|                          |                                 |                      |                            |        |
| Morton      N. Kerr           | 161,000                              | 30,323                    | 426,341                         | 617,664     |
|                          |                                 |                      |                            |        |
| Steven      M. Lewis          | 126,500                              | 30,323                    | 279,568                         | 436,391     |
|                          |                                 |                      |                            |        |
| John      K. Lloyd            | 197,000                              | 30,323                    | 361,923                         | 589,246     |
|                          |                                 |                      |                            |        |
| Daniel      J. Ragone         | 144,500                              | 30,323                    | 217,232                         | 392,055     |
|                          |                                 |                      |                            |        |
| William      A. Schwartz, Jr. | 179,000                              | 30,323                    | 807,440                         | 1,016,763   |
|                          |                                 |                      |                            |        |
| Joseph      T. Tarquini, Jr.  | 182,000                              | 30,323                    | 619,871                         | 832,194     |
|                          |                                 |                      |                            |        |
| Joseph      S. Vassalluzzo    | 289,500                              | 30,323                    | 371,806                         | 691,629     |

|   |  (1)      In addition to the annual retainer and meeting fees, each director      received a $30,000 payment during 2007 for their following      roles:  Mr. Bershad, Chairman of Nominating and Governance      Committee; Mr. DiFrancesco, Vice-Chairman of Nominating and Governance      Committee; Mr. Giordano, Chairman of the Special Litigation Committee; Mr.      Kerr, Chairman of the Compensation Committee; Mr. Lewis, Chairman of the      Asset-Liability Committee; Mr. Lloyd, Vice-Chairman of the Compensation      Committee; Mr. Ragone, Chairman of the Audit and Risk Management      Committee; Mr. Schwartz, Vice-Chairman of the Audit and Risk Management      Committee; Mr. Tarquini, Vice-Chairman of the Real Estate Committee; and      Mr. Vassalluzzo, Chairman of the Real Estate Committee.  Mr.      Vassalluzzo also received a one-time payment of $70,000 for additional      real estate work performed during 2007.  At the 2007 Annual      Shareholder Meeting, Mr. Giordano was elected to the Board of Directors;      therefore, his annual retainer was pro-rated  accordingly. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)      Includes amounts for grants made in 2007 and 2006 to the extent the      vesting period for such grants fell in the current      year.  Options granted in 2007 and 2006 were valued at $8.34 and      $9.57, respectively, using a  Black-Scholes option pricing model      in accordance with FAS 123R.  Please refer to Note 16 –      Stock-Based Compensation to the Company’s consolidated financial      statements, which appears elsewhere herein, for a discussion of the      assumptions related to the calculation of such  values. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (3)      The full grant date fair value, under FAS 123R, of option grants to      directors in 2007 was $62,550.  Generally, the full grant date      fair value is the amount the Company would recognize for financial      statement reporting purposes over the award’s vesting      schedule.  As of December 31, 2007, the aggregate number of      unexercised options (vested and unvested) held by each director was as      follows: Mr. Bershad, 146,000; Mr. DiFrancesco, 52,500; Mr. Giordano,      7,500; Mr. Kerr, 40,000; Mr. Lewis, 143,240; Mr. Lloyd, 31,500; Mr.      Ragone, 64,500; Mr. Schwartz, 118,436; Mr. Tarquini, 214,904; and Mr.      Vassalluzzo, 22,500. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)      This column represents current amounts recognized for financial statement      reporting purposes during 2007 in connection with the Company’s retirement      plan for directors (see below for further description of the director      retirement plan), for each director as follows: Mr. Bershad, $197,818; Mr.      DiFrancesco, $327,245; Mr. Giordano, $100,068; Mr. Kerr $423,330; Mr.      Lewis, $277,899; Mr. Lloyd, $357,946; Mr. Ragone, $213,643; Mr. Schwartz,      $802,164; Mr. Tarquini, $617,192; and Mr. Vassalluzzo, $368,214 and the      dollar value of life insurance premiums paid by the Company in 2007 for      the benefit of each director as follows: Mr. Bershad, $3,964; Mr.      DiFrancesco, $3,815; Mr. Giordano, $5,083; Mr. Kerr, $3,011; Mr. Lewis,      $1,669; Mr. Lloyd, $3,977; Mr. Ragone, $3,589; Mr. Schwartz, $5,276; Mr.      Tarquini, $2,679; and Mr. Vassalluzzo,$3,592. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 12. Security Ownership of Certain Beneficial Ownersand Management and Related Stockholder Matters

|                                                                                                    | Shares      Beneficially Owned (1)  |
|---------------------------------------------------------------------------------------------------------|-------------------------------------|
| Name      of Beneficial Owner                                                                           | Amount                              | Percent |
| Directors      and Executive Officers                                                                   |                                |   |
| Jack      R Bershad                                                                                     |  21,569      (2)               | * |
| Joseph      E. Buckelew                                                                                 |  1,319,899      (3)            | * |
| Donald      T. DiFrancesco                                                                              |  53,766      (4)               | * |
| Nicholas      A. Giordano                                                                               | 3,375      (5)                      | * |
| Vernon      W. Hill, II **                                                                              | 6,174,467      (6)                  | 3.07% |
| Morton      N. Kerr                                                                                     | 49,112      (7)                     | * |
| Steven      M. Lewis                                                                                    |  1,032,841      (8)            | * |
| John      K. Lloyd                                                                                      |  23,825      (9)               | * |
| George      E. Norcross, III                                                                            |  2,718,173      (10)           | 1.35% |
| Daniel      J. Ragone                                                                                   |  302,329      (11)             | * |
| William      A. Schwartz, Jr.                                                                           |        49,316 (12)             | * |
| Joseph      T. Tarquini, Jr.                                                                            | 1,125,131      (13)                 | * |
| Joseph      S. Vassalluzzo                                                                              |   13,125      (14)        | * |
| Dennis      M. DiFlorio                                                                                 |    724,631      (15) | * |
| Robert      D. Falese, Jr.                                                                              |        439,963 (16)            | * |
| Douglas      J. Pauls                                                                                   |  277,492      (17)             | * |
| Fred      Graziano                                                                                      |  122,507      (18)             | * |
| All      Directors and Executive Officers as a Group (18 Persons)                                       |  14,185,785      (19)          | 6.92% |
| 5%      Holders                                                                                         |                                |   |
| Davis      Selected Advisers, LP2949      East Elvira Road, Suite 101Tucson,      AZ 85706              | 16,799,219      (20)                | 8.40% |
|                                                                                                    |                                |   |
| Franklin      Mutual Advisers, LLC101      John F. Kennedy ParkwayShort      Hills, NJ  07078 |  11,351,730      (21)          | 5.68% |

----

----

----

|                                                            | (a)                                                                                                         | (b)                                                                                    | (c)                                                                                                                                                        |
|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                            |  Number      of securities to be issued upon exercise of outstanding options, warrants      and rights |  Weighted-average      exercise price of outstanding options, warrants and rights | Number      of securities remaining available for future issuance under equity      compensation plans (excluding securities reflected in column      (a)) |
| Equity      compensation plans approved by security holders     | 21,462,351                                                                                                  | $26.03                                                                                 | 22,864,029                                                                                                                                                 |
| Equity      compensation plans not approved by security holders | N/A                                                                                                         | N/A                                                                                    | N/A                                                                                                                                                        |
| Total                                                           | 21,462,351                                                                                                  | $26.03                                                                                 | 22,864,029                                                                                                                                                 |

Item 13. Certain Relationships and RelatedTransactions, and Director Independence

----

----

| ·   | Lending      relationships, deposit relationships or other financial service      relationships (such as depository, transfer, registrar, indenture trustee,      trusts and estates, insurance and related products, private banking,      investment management, custodial, securities brokerage, cash management      and similar services) between the Company or its subsidiaries, on the one      hand, and (i) the director; and/or (ii) any immediate family member of the      director who resides in the same home as the director; and/or (iii) any      profit or non-profit entity with which the director is affiliated by      reason of being a director, officer, employee, trustee, partner and/or an      owner thereof, on the other, provided that (A) such relationships are in      the ordinary course of business of the Company or its subsidiaries and are      on substantially the same terms as those prevailing at the time for      comparable transactions with non-affiliated persons; and in addition, (B)      with respect to any extension of credit by a subsidiary of the Company to      any borrower described in clauses (i) - (iii) above, such extension of      credit has been made in compliance with applicable law, including      Regulation O of the Board of Governors of the Federal Reserve System and      Section 13(k) of the Securities Exchange Act of 1934 , as amended (the      Exchange Act), and no extension of credit is on a non-accrual      basis. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      fact that (i) the director is a director, officer, employee, trustee,      partner and/or an owner thereof in, any profit or non-profit entity, (ii)      the director is of counsel to a law firm, or (iii) an immediate family      member is a director, officer, employee, trustee, partner and/or an owner      of any entity, that makes payments to, or receives payments from, the      Company or its subsidiaries for property or services in an amount which,      in any fiscal year, is less than the greater of $1 million or two percent      of such other entity’s consolidated gross revenues, and such property or      services were provided or received in the ordinary course of business of      each of the parties. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      fact that the director, or an immediate family member of the director who      resides in the same home as the director, is a director, officer, employee      or trustee of a non-profit organization, foundation or university to which      the Company or its subsidiaries makes discretionary contributions provided      such contributions in any fiscal year, excluding the Company or its      subsidiaries matching funds, are less than the greater of $1 million or      two percent of the entity's consolidated gross revenues for the most      recently ended fiscal year for which total revenue information is      available. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Any      contract or other arrangement for personal services provided by the      director to the Company or its subsidiaries (excluding services as a      director of the Company or its subsidiaries) if the compensation to the      director does not exceed $100,000 per calendar  year. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The      employment by the Company or its subsidiaries of an immediate family      member of the director provided that such immediate family member was or      is not an executive officer of the Company and the compensation of any      such family member was established by the Company or its subsidiary in      accordance with its employment and compensation practices applicable to      employees holding comparablepositions. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 14. Principal Accounting Fees andServices

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007   |      |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Audit      fees                                                                                  |   | $      | 2,529,700 |   |   | $      | 2,645,000 |   |
| Audit-Related      fees                                                                          |   |   | 85,000    |   |   |   | 80,000 |   |
| All      Other      fees                                                                         |   |   | 4,000     |   |   |   | 41,925 |   |
| Total                                                                                            |   | $      | 2,618,700 |   |   | $      | 2,766,925 |   |

----

Item15.                      Exhibitsand Financial Statement Schedules

|   | ExhibitNumber |  Description of Exhibit                                                                                                                                                                                                        |  Location                                                                                                                                                                                                                            |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 2.1           | Plan      of acquisition, reorganization, arrangement, liquidation or      succession.                                                                                                                                              | Agreement      and Plan of Merger dated October 2, 2007 between the Company, The      Toronto-Dominion Bank and Cardinal Merger Co.  Incorporated by      reference from the Company’s Form 8-K dated October 9,    2007. |
|   |          |                                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
|   | 3.1           | Restated      Certificate of Incorporation of the Company, as amended.                                                                                                                                                              | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 2004.                                                                                                      |
|   |          |                                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
|   | 3.2           | By-laws      of the Company, as amended.                                                                                                                                                                                            | Incorporated      by reference from the Company’s Form 10-Q for the quarter ended June 30,      2004.                                                                                                                               |
|   |          |                                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
|   | 10.1          | Ground      lease, dated July 1, 1984, among Commerce NA and Group Four Equities,      relating to the store in Gloucester Township, New Jersey.                                                                                    | Incorporated      by reference from the Company’s Registration Statement on Form S-1, and      Amendments Nos. 1 and 2 thereto (Registration No.  2-94189)                                                                          |
|   |          |                                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
|   | 10.2          | Ground      lease, dated April 15, 1986, between Commerce NA and Mount Holly Equities,      relating to Commerce NA's store in Mt. Holly, New Jersey.                                                                               | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1987.                                                                                                      |
|   |          |                                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
|   | 10.3          | Ground      lease, dated February 15, 1988, between Commerce NA and Holly Ravine      Equities of New Jersey, relating to one of the Commerce NA’s stores in      Cherry Hill, New Jersey.                                    | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1988.                                                                                                      |
|   |          |                                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
|   | 10.4          | Ground      lease, dated June 1, 1994, between Commerce NA and Absecon Associates,      L.L.C., relating to Commerce NA’s branch office in Absecon, New      Jersey.                                                          | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1997.                                                                                                      |
|   |          |                                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
|   | 10.5          | Ground      lease, dated September 11, 1995, between Commerce Shore (merged with and      into Commerce NA in 2004) and Whiting Equities, L.L.C., relating to      Commerce Shore’s stores in Manchester Township, NewJersey. | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1997.                                                                                                      |

----

|   | 10.6   | Ground      lease, dated November 1, 1995, between Commerce NA and Evesboro      Associates, L.L.C., relating to Commerce NA’s stores in Evesham Township,      New Jersey.                                                | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1997. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.7   | Ground      lease, dated October 1, 1996, between Commerce NA and Triad Equities,      L.L.C., relating to one of Commerce NA’s stores in Gloucester Township,      New Jersey.                                            | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1997. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.8   | Ground      lease, dated January 16, 1998, between Commerce N.A. and Ewing Equities,      L.L.C., relating to Commerce N.A.’s store in Ewing, New      Jersey.                                                             | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1998. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.9   | Ground      lease, dated November 30, 1998, between Commerce Shore (merged with and      into Commerce NA in 2004) and Brick/Burnt Tavern Equities, L.L.C.,      relating to Commerce Shore’s stores in Brick, New Jersey. | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1999. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.10  | Ground      lease, dated November 30, 1998, between Commerce Shore (merged with and      into Commerce NA in 2004) and Aberdeen Equities, L.L.C., relating to      Commerce Shore’s store in Aberdeen, New Jersey.         | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1999. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.11  | Ground      lease, dated November 30, 1998, between Commerce NA and Hamilton/Wash      Properties, L.L.C., relating to Commerce NA’s store in Hamilton Township,      New Jersey.                                          | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1999. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.12  | Ground      lease, dated April 2, 1999, between Commerce PA (merged with and into      Commerce NA in 2005) and Abington Equities, L.L.C., relating to Commerce      PA’s store in Abington Township, Pennsylvania.        | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1999. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.13  | Ground      lease, dated October 1999, between Commerce PA (merged with and into      Commerce NA in 2005) and Bensalem Equities, L.L.C., relating to Commerce      PA’s store in Bensalem, Pennsylvania.                  | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 2000. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.14  | Ground      lease, dated March 10, 2000, between Commerce PA (merged with and into      Commerce NA in 2005) and Chalfont Equities, L.L.C., relating to Commerce      PA’s store in New Britain Township, Pennsylvania.    | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 2001. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.15  | Ground      lease, dated January 4, 2001, between Commerce PA (merged with and into      Commerce NA in 2005) and Warminster Equities, L.L.C., relating to Commerce      PA’s store in Warminster Township, Pennsylvania.  | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 2001. |
|   |   |                                                                                                                                                                                                                             |                                                                                                                                 |
|   | 10.16  | Ground      lease dated January 1, 2001, between Commerce NA and Willingboro Equities,      L.L.C., relating to Commerce N.A.’s store in Willingboro, New      Jersey.                                                     | Incorporated      by reference to the Company’s Form 10-Q for the quarter ended March 31,      2003.                           |

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|   | 10.17       | Ground      lease dated November 27, 2001, between Commerce PA (merged with and into      Commerce NA in 2005) and Warrington Equities, L.L.C., relating to Commerce      PA’s store in Warrington, Pennsylvania. | Incorporated      by reference to the Company’s Form 10-Q for the quarter ended March 31,      2003.                                                                                                         |
|--------|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.18       | A      copy of the Retirement Plan for Outside Directors of Commerce Bancorp,      Inc., as amended.                                                                                                                    | Incorporated      by reference from the Company’s Quarterly Report on Form 10-Q for the      quarter ended September 30, 2007.                                                                               |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.19       | The      Company's 1989 Stock Option Plan for Non-Employee    Directors.                                                                                                                                                | Incorporated      by reference from the Company’s Registration Statement on Form S-2 and      Amendments Nos. 1 and 2 thereto (Registration No.  33-31042)                                                   |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.20       | The      Company’s 1998 Stock Option Plan for Non-Employee    Directors.                                                                                                                                          | Incorporated      by reference from the Company’s Definitive Proxy Statement for its 1998      Annual Meeting of Shareholders, Exhibit A thereto.                                                            |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.21       | A      copy of amended and restated employment contract with Dennis M. DiFlorio      dated October 2, 2007, amended on December 31, 2007.                                                                               | Incorporated      by reference from the Company’s Form 8-K filed on October 9,      2007.  Amendment is incorporated by reference from the Company’s      Form 8-K filed on January 7, 2008. |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.22       | A      copy of amended and restated employment contract with Robert D. Falese      dated October 2, 2007, amended on December 31, 2007.                                                                                 | Incorporated      by reference from the Company’s Form 8-K filed on October 9,      2007.  Amendment is incorporated by reference from the Company’s      Form 8-K filed on January 7, 2008. |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.23  | A      copy of amended and restated employment contract with George E. Norcross,      III dated October 2, 2007, amended on December 31, 2007.                                                                          | Incorporated      by reference from the Company’s Form 8-K filed on October 9,      2007.  Amendment is incorporated by reference from the Company’s      Form 8-K filed on January 7, 2008. |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.24       | A      copy of amended and restated employment contract with Vernon W. Hill, II      entered into on March 14, 2006, with an effective date of January 1,      2006.                                                    | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 2005.                                                                               |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.25       | A      copy of amended and restated employment contract with Douglas J. Pauls,      dated October 2, 2007, amended on December 31, 2007.                                                                                | Incorporated      by reference from the Company’s Form 8-K filed on October 9,      2007.  Amendment is incorporated by reference from the Company’s      Form 8-K filed on January 7, 2008. |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.26       | The      Company's Employee Stock Ownership Plan.                                                                                                                                                                       | Incorporated      by reference from the Company’s Annual Report on Form 10-K for the fiscal      year ended December 31, 1989.                                                                               |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.27       | The      Company's 1997 Employee Stock Option Plan.                                                                                                                                                                     | Incorporated      by reference from the Company’s Definitive Proxy Statement for its 1997      Annual Meeting of Shareholders, Exhibit A thereto.                                                            |
|   |        |                                                                                                                                                                                                                    |                                                                                                                                                                                                               |
| *      | 10.28       | The      Company's 2004 Employee Stock Option Plan.                                                                                                                                                                     | Incorporated      by reference from the Company’s Form 10-Q for the quarter ended June 30,      2004.                                                                                                        |

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| *      | 10.29  | Description      of Directors’ and Named Executive Officers’ Compensation                                                                                                                             | Incorporated      by reference from the Company’s Form  8-K filed on February 29,      2008.                                                             |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 10.30  | Consent      Order dated June 28, 2007 issued by the Comptroller of the Currency in the      matter of Commerce Bank, NA.                                                                                         | Incorporated      by reference from the Company’s Form 8-K filed on June 29,      2007.                                                                            |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 10.31  | Stipulation      and Consent to Issuance of a Consent Order dated June 28, 2007 between the      Comptroller of the Currency and the Board of Directors of Commerce Bank,      NA on behalf of Commerce Bank, NA. | Incorporated      by reference from the Company’s Form 8-K filed on June 29,      2007.                                                                            |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 10.32  | Memorandum      of Understanding, dated June 28, 2007 by and between the Federal Reserve      Bank of Philadelphia and Commerce Bancorp, Inc.                                                                     | Incorporated      by reference from the Company’s Form 8-K filed on June 29,      2007.                                                                            |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
| *      | 10.33  | A      copy of Non-Competition Agreement with George E. Norcross, III dated      December 31, 2007.                                                                                                               | Incorporated      by reference from the Company’s Form 8-K filed on January 7,      2008.                                                                          |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
| *      | 10.34  | A copy of amended and restated employment contract with      Fred Graziano, dated October 2, 2007, amended on December 31,      2007.                                                                             |                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 11.1   | Statement      re: computation of per share earnings                                                                                                                                                              | Incorporated      by reference from Note 15 – Earnings Per Share of the Notes to      Consolidated Financial Statements included in this Report on Form      10-K. |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 21.1   | Subsidiaries      of the Company.                                                                                                                                                                                 | Incorporated      by reference from PART 1, Item 1. BUSINESS of this Report on Form      10-K.                                                                           |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 23.1   | Consent      of Ernst & Young LLP.                                                                                                                                                                            |                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 31.1   | Certification of the Company’s Chief Executive Officer      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002.                                  |                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 31.2   | Certification of the Company’s Chief Financial Officer      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002.                                  |                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                              |                                                                                                                                                                     |
|   | 32     | Certification of the Company’s Chief Executive Officer and      Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of    2002.   |                                                                                                                                                                     |

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SIGNATURES

|                      | Commerce      Bancorp, Inc. |
|---------------------------|-----------------------------|
|                      |                        |   |
|                      | By                          | /s/      Dennis M. DiFlorio |
|                      |                        | Dennis      M. DiFlorio |
| Date:      March 13, 2008 |                        | Chairman,      Commerce NA |
|                      |                        |   |
|                      |                        |   |
|                      | By                          | /s/      Douglas J. Pauls |
|                      |                        | Douglas      J. Pauls |
|                      |                        | Executive      Vice President and Chief Financial Officer |
|                      |                        | (Principal      Financial and Accounting Officer) |

| Signature                        |   | Title    | Date                |
|----------------------------------|--------|----------|---------------------|
|                             |   |     |                |
|                             |   |     |                |
|                             |   | Director | March      13, 2008 |
| Jack R Bershad                   |   |     |                |
|                             |   |     |                |
| /s/ Joseph      Buckelew    |   | Director | March      13, 2008 |
| Joseph Buckelew                  |   |     |                |
|                             |   |     |                |
| /s/ Donald T.      DiFrancesco   |   | Director | March      13, 2008 |
| Donald T.      DiFrancesco       |   |     |                |
|                             |   |     |                |
| /s/ Nicholas A.      Giordano    |   | Director | March      13, 2008 |
| Nicholas A.      Giordano        |   |     |                |
|                             |   |     |                |
| /s/ Morton N.      Kerr     |   | Director | March      13, 2008 |
| Morton N. Kerr                   |   |     |                |
|                             |   |     |                |
| /s/ Steven M.      Lewis    |   | Director | March      13, 2008 |
| Steven M.Lewis                   |   |     |                |
|                             |   |     |                |
| /s/ John K. Lloyd                |   | Director | March      13, 2008 |
| John K. Lloyd                    |   |     |                |
|                             |   |     |                |
| /s/ George E. Norcross,      III |   | Director | March      13, 2008 |
| George E. Norcross,      III     |   |     |                |
|                             |   |     |                |
| /s/ Daniel J.    Ragone          |   | Director | March      13, 2008 |
| Daniel J.Ragone                  |   |     |                |
|                             |   |     |                |
| /s/ William A. Schwartz      Jr. |   | Director | March      13, 2008 |
| William A. Schwartz      Jr.     |   |     |                |
|                             |   |     |                |
| /s/ Joseph T. Tarquini      Jr.  |   | Director | March      13, 2008 |
| Joseph T. Tarquini      Jr.      |   |     |                |
|                             |   |     |                |
| /s/ Joseph S.      Vassalluzzo   |   | Director | March      13, 2008 |
| Joseph S.      Vassalluzzo       |   |     |                |

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