**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

**Form        10-Q**

| (X)    | QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   | For                  the quarterly period ended September                  30, 2005                                                        |

| (                  ) | 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                  or other jurisdiction of | (IRS                  Employer Identification |
| incorporation                  or organization)  | Number)                                       |

| Commerce                  Atrium, 1701 Route 70 East, Cherry Hill, New Jersey                  08034-5400 |
|-----------------------------------------------------------------------------------------------------------|
| (Address                  of Principal Executive Offices) (Zip Code)                                      |
|                                                                                                      |
| (856)                  751-9000                                                                           |
| (Registrant’s                  telephone number, including area                  code)              |

| Yes                  X | No                  __ |
|------------------------|------------------------|

| Yes                  X | No                  __ |
|------------------------|------------------------|

| Yes                  __ | No                  X  |
|-------------------------|-----------------------------|

| Common                  Stock     | 173,651,850                                                                          |
|-----------------------------------|--------------------------------------------------------------------------------------|
| (Title                  of Class) | (No.                  of Shares Outstanding as                  of October 31, 2005) |

----

**COMMERCE        BANCORP, INC. AND SUBSIDIARIES**

|                      |                                                                                                          | Page   |
|---------------------------|---------------------------------------------------------------------------------------------------------------|--------|
| PART                  I.  | FINANCIAL                  INFORMATION                                                                        |   |
|                      |                                                                                                          |   |
| Item                  1.  | Financial                  Statements                                                                         |   |
|                      |                                                                                                          |   |
|                      | Consolidated                  Balance Sheets                  (unaudited)                                     |   |
|                      | September                  30, 2005 and December 31,                  2004                                    | 1      |
|                      |                                                                                                          |   |
|                      | Consolidated                  Statements of Income                  (unaudited)                               |   |
|                      | Three                  months ended September 30, 2005 and September 30,                  2004 and            |   |
|                      | nine                  months ended September 30, 2005 and September 30,                  2004                 | 2      |
|                      |                                                                                                          |   |
|                      | Consolidated                  Statements of Cash Flows                  (unaudited)                           |   |
|                      | Nine                  months ended September 30, 2005 and September 30,                  2004                 | 3      |
|                      |                                                                                                          |   |
|                      | Consolidated                  Statement of Changes in Stockholders’ Equity                  (unaudited) |   |
|                      | Nine                  months ended September 30, 2005                                                         | 4      |
|                      |                                                                                                          |   |
|                      | Notes                  to Consolidated Financial Statements                  (unaudited)                      | 5      |
|                      |                                                                                                          |   |
| Item                  2.  | Management’s                  Discussion and Analysis of                  Financial                     |   |
|                      | Condition                  and Results of Operation                                                           | 10     |
|                      |                                                                                                          |   |
| Item                  3.  | Quantitative                  and Qualitative Disclosures About Market                  Risk                  | 23     |
|                      |                                                                                                          |   |
| Item                  4.  | Controls                  and Procedures                                                                      | 24     |
|                      |                                                                                                          |   |
| PART                  II. | OTHER                  INFORMATION                                                                            |   |
|                      |                                                                                                          |   |
| Item                  1.  | Legal                  Proceedings                                                                            | 24     |
|                      |                                                                                                          |   |
| Item                  6.  | Exhibits                                                                                                      | 25     |
|                      |                                                                                                          |   |

----

**PART        1.**
**FINANCIAL        INFORMATION**

**Item        1.**
**Financial        Statements**

**COMMERCE        BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED        BALANCE SHEETS**

|                    |                                                                 |   |                               |   |                              |       |
|-------------------------|----------------------------------------------------------------------|--------|------------------------------------|--------|-----------------------------------|------------|
|                    |                                                                 |   | **September                  30,** |   | **December                  31,** |       |
|                    | (dollars                  in thousands)                              |   | **2005**                           |   |                              | **2004**   |   |
| **Assets**              | Cash                  and due from banks                             | **$**  | **1,345,080**                      |   | $                                 | 1,050,806  |   |
|                    | Federal                  funds sold                                  |   | **14,500**                         |   |                              |       |   |
|                    | Cash                  and cash equivalents                           |   | **1,359,580**                      |   |                              | 1,050,806  |   |
|                    | Loans                  held for sale                                 |   | **85,372**                         |   |                              | 44,072     |   |
|                    | Trading                  securities                                  |   | **150,847**                        |   |                              | 169,103    |   |
|                    | Securities                  available for sale                       |   | **8,965,121**                      |   |                              | 8,044,150  |   |
|                    | Securities                  held to maturity                         |   | **12,961,900**                     |   |                              | 10,463,658 |   |
|                    | (market                  value 09/05-$12,814,738; 12/04-$10,430,451) |   |                               |   |                              |       |   |
|                    | Loans                                                                |   | **11,289,423**                     |   |                              | 9,454,611  |   |
|                    | Less                  allowance for loan losses                      |   | **138,903**                        |   |                              | 135,620    |   |
|                    |                                                                 |   | **11,150,520**                     |   |                              | 9,318,991  |   |
|                    | Bank                  premises and equipment, net                    |   | **1,217,222**                      |   |                              | 1,059,519  |   |
|                    | Other                  assets                                        |   | **402,978**                        |   |                              | 351,346    |   |
|                    |                                                                 | **$**  | **36,293,540**                     |   | $                                 | 30,501,645 |   |
|                    |                                                                 |   |                               |   |                              |       |   |
| **Liabilities**         | Deposits:                                                            |   |                               |   |                              |       |   |
|                    | Demand:                                                              |   |                               |   |                              |       |   |
|                    | Noninterest-bearing                                                  | **$**  | **7,827,651**                      |   | $                                 | 6,406,614  |   |
|                    | Interest-bearing                                                     |   | **13,133,145**                     |   |                              | 11,604,066 |   |
|                    | Savings                                                              |   | **8,676,201**                      |   |                              | 6,490,263  |   |
|                    | Time                                                                 |   | **3,606,689**                      |   |                              | 3,157,942  |   |
|                    | Total                  deposits                                      |   | **33,243,686**                     |   |                              | 27,658,885 |   |
|                    | Other                  borrowed money                                |   | **703,227**                        |   |                              | 661,195    |   |
|                    | Other                  liabilities                                   |   | **232,266**                        |   |                              | 315,860    |   |
|                    | Long-term                  debt                                      |   |                               |   |                              | 200,000    |   |
|                    |                                                                 |   | **34,179,179**                     |   |                              | 28,835,940 |   |
|                    |                                                                 |   |                               |   |                              |       |   |
| **Stockholders’** | Common                  stock, 173,784,250 shares                    |   |                               |   |                              |       |   |
| **Equity**              | issued                  (160,635,618 shares in 2004)                 |   | **173,784**                        |   |                              | 160,636    |   |
|                    | Capital                  in excess of par value                      |   | **1,263,180**                      |   |                              | 951,476    |   |
|                    | Retained                  earnings                                   |   | **725,215**                        |   |                              | 543,978    |   |
|                    | Accumulated                  other comprehensive (loss) income       |   | **(35,108**                        | **)**  |                              | 20,953     |   |
|                    |                                                                 |   | **2,127,071**                      |   |                              | 1,677,043  |   |
|                    |                                                                 |   |                               |   |                              |       |   |
|                    | Less                  treasury stock, at cost, 837,338 shares        |   |                               |   |                              |       |   |
|                    | issued                  (795,610 shares in 2004)                     |   | **12,710**                         |   |                              | 11,338     |   |
|                    | Total                  stockholders’ equity                    |   | **2,114,361**                      |   |                              | 1,665,705  |   |
|                    |                                                                 | **$**  | **36,293,540**                     |   | $                                 | 30,501,645 |   |

See        accompanying notes

----

**COMMERCE        BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF INCOME**

|            |                                                              |                                                                      |        |   |                                                                     |     |
|-----------------|-------------------------------------------------------------------|---------------------------------------------------------------------------|-------------|--------|--------------------------------------------------------------------------|----------|
|            |                                                              | **Three                  Months Ended****September                  30,** |        |   | **Nine                  Months Ended****September                  30,** |     |
|            | (dollars                  in thousands, except per share amounts) |                                                                      | **2005**    |   |                                                                     | **2004** |   |   | **2005** |   |   | **2004** |   |
| **Interest**    | Interest                  and fees on loans                       | **$**                                                                     | **178,878** |   | $                                                                        | 124,698  |   | **$** | **485,935** |   | $ | 346,858 |   |
| **income**      | Interest                  on investments                          |                                                                      | **243,187** |   |                                                                     | 195,968  |   |   | **703,103** |   |   | 537,396 |   |
|            | Other                  interest                                   |                                                                      | **1,774**   |   |                                                                     | 148      |   |   | **2,979** |   |   | 642 |   |
|            | Total                  interest income                            |                                                                      | **423,839** |   |                                                                     | 320,814  |   |   | **1,192,017** |   |   | 884,896 |   |
|            |                                                              |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
| **Interest**    | Interest                  on deposits:                            |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
| **expense**     | Demand                                                            |                                                                      | **68,100**  |   |                                                                     | 24,539   |   |   | **168,526** |   |   | 59,211 |   |
|            | Savings                                                           |                                                                      | **35,215**  |   |                                                                     | 12,408   |   |   | **77,553** |   |   | 30,410 |   |
|            | Time                                                              |                                                                      | **26,114**  |   |                                                                     | 14,210   |   |   | **66,793** |   |   | 43,117 |   |
|            | Total                  interest on deposits                       |                                                                      | **129,429** |   |                                                                     | 51,157   |   |   | **312,872** |   |   | 132,738 |   |
|            | Interest                  on other borrowed money                 |                                                                      | **4,697**   |   |                                                                     | 2,255    |   |   | **16,024** |   |   | 3,755 |   |
|            | Interest                  on long-term debt                       |                                                                      | **2,339**   |   |                                                                     | 3,020    |   |   | **8,379** |   |   | 9,060 |   |
|            | Total                  interest expense                           |                                                                      | **136,465** |   |                                                                     | 56,432   |   |   | **337,275** |   |   | 145,553 |   |
|            |                                                              |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
|            | Net                  interest income                              |                                                                      | **287,374** |   |                                                                     | 264,382  |   |   | **854,742** |   |   | 739,343 |   |
|            | Provision                  for loan losses                        |                                                                      | **3,000**   |   |                                                                     | 10,750   |   |   | **13,750** |   |   | 30,998 |   |
|            | Net                  interest income after provision for          |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
|            | loan                  losses                                      |                                                                      | **284,374** |   |                                                                     | 253,632  |   |   | **840,992** |   |   | 708,345 |   |
|            |                                                              |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
| **Noninterest** | Deposit                  charges and service fees                 |                                                                      | **72,302**  |   |                                                                     | 57,081   |   |   | **201,068** |   |   | 155,279 |   |
| **income**      | Other                  operating income                           |                                                                      | **46,763**  |   |                                                                     | 42,089   |   |   | **131,532** |   |   | 121,339 |   |
|            | Net                  investment securities gains                  |                                                                      | **5,714**   |   |                                                                     | 943      |   |   | **11,511** |   |   | 2,002 |   |
|            | Total                  noninterest income                         |                                                                      | **124,779** |   |                                                                     | 100,113  |   |   | **344,111** |   |   | 278,620 |   |
|            |                                                              |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
| **Noninterest** | Salaries                  and benefits                            |                                                                      | **134,149** |   |                                                                     | 114,467  |   |   | **381,002** |   |   | 315,917 |   |
| **expense**     | Occupancy                                                         |                                                                      | **41,873**  |   |                                                                     | 31,689   |   |   | **118,976** |   |   | 87,748 |   |
|            | Furniture                  and equipment                          |                                                                      | **32,371**  |   |                                                                     | 27,987   |   |   | **90,192** |   |   | 79,167 |   |
|            | Office                                                            |                                                                      | **14,871**  |   |                                                                     | 11,082   |   |   | **40,125** |   |   | 32,922 |   |
|            | Marketing                                                         |                                                                      | **12,460**  |   |                                                                     | 8,994    |   |   | **26,717** |   |   | 26,968 |   |
|            | Other                                                             |                                                                      | **52,858**  |   |                                                                     | 52,943   |   |   | **168,475** |   |   | 142,945 |   |
|            | Total                  noninterest expenses                       |                                                                      | **288,582** |   |                                                                     | 247,162  |   |   | **825,487** |   |   | 685,667 |   |
|            |                                                              |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
|            | Income                  before income taxes                       |                                                                      | **120,571** |   |                                                                     | 106,583  |   |   | **359,616** |   |   | 301,298 |   |
|            | Provision                  for federal and state income taxes     |                                                                      | **41,116**  |   |                                                                     | 36,493   |   |   | **123,615** |   |   | 102,998 |   |
|            | Net                  income                                       | **$**                                                                     | **79,455**  |   | $                                                                        | 70,090   |   | **$** | **236,001** |   | $ | 198,300 |   |
|            |                                                              |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
|            | Net                  income per common and common                 |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
|            | equivalent                  share:                                |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
|            | Basic                                                             | **$**                                                                     | **0.48**    |   | $                                                                        | 0.45     |   | **$** | **1.45** |   | $ | 1.27 |   |
|            | Diluted                                                           | **$**                                                                     | **0.45**    |   | $                                                                        | 0.42     |   | **$** | **1.36** |   | $ | 1.19 |   |
|            | Average                  common and common equivalent             |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
|            | shares                  outstanding:                              |                                                                      |        |   |                                                                     |     |   |   |   |   |   |   |   |
|            | Basic                                                             |                                                                      | **165,701** |   |                                                                     | 157,250  |   |   | **162,947** |   |   | 155,851 |   |
|            | Diluted                                                           |                                                                      | **180,360** |   |                                                                     | 172,090  |   |   | **177,951** |   |   | 171,865 |   |
|            | Dividends                  declared, common stock                 | **$**                                                                     | **0.11**    |   | $                                                                        | 0.10     |   | **$** | **0.33** |   | $ | 0.29 |   |

See        accompanying notes

----

**COMMERCE        BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

|           |                                                                                                                       |   |                                                                     |   |
|----------------|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
|           |                                                                                                                       |   | **Nine                  Months Ended****September                  30,** |   |
|           | (dollars                  in thousands)                                                                                    |   | **2005**                                                                 |   |   | **2004** |   |
| **Operating**  | Net                  income                                                                                                | **$**  | **236,001**                                                              |   | $ | 198,300 |   |
| **activities** | Adjustments                  to reconcile net income to net cash                                                           |   |                                                                     |   |   |   |   |
|           | provided                  by operating activities:                                                                         |   |                                                                     |   |   |   |   |
|           | Provision                  for loan losses                                                                                 |   | **13,750**                                                               |   |   | 30,998 |   |
|           | Provision                  for depreciation, amortization and accretion                                                    |   | **118,578**                                                              |   |   | 97,203 |   |
|           | Gain                  on sales of securities                                                                               |   | **(11,511**                                                              | **)**  |   | (2,002 | ) |
|           | Proceeds                  from sales of loans held for sale                                                                |   | **826,293**                                                              |   |   | 567,653 |   |
|           | Originations                  of loans held for sale                                                                       |   | **(618,093**                                                             | **)**  |   | (561,624 | ) |
|           | Net                  decrease (increase) in trading securities                                                             |   | **18,256**                                                               |   |   | (74,800 | ) |
|           | Increase                  in other assets, net                                                                             |   | **(24,045**                                                              | **)**  |   | (11,605 | ) |
|           | (Decrease)                  increase in other liabilities                                                                  |   | **(85,019**                                                              | **)**  |   | 55,195 |   |
|           | Net                  cash provided by operating activities                                                                 |   | **474,210**                                                              |   |   | 299,318 |   |
|           |                                                                                                                       |   |                                                                     |   |   |   |   |
| **Investing**  | Proceeds                  from the sales of securities available for sale                                                  |   | **2,411,556**                                                            |   |   | 1,917,794 |   |
| **activities** | Proceeds                  from the maturity of securities available for sale                                               |   | **2,151,775**                                                            |   |   | 3,044,415 |   |
|           | Proceeds                  from the maturity of securities held to maturity                                                 |   | **2,001,015**                                                            |   |   | 644,684 |   |
|           | Purchase                  of securities available for sale                                                                 |   | **(5,584,017**                                                           | **)**  |   | (7,005,159 | ) |
|           | Purchase                  of securities held to maturity                                                                   |   | **(4,514,861**                                                           | **)**  |   | (2,237,022 | ) |
|           | Net                  increase in loans                                                                                     |   | **(2,094,779**                                                           | **)**  |   | (1,481,917 | ) |
|           | Capital                  expenditures                                                                                      |   | **(237,875**                                                             | **)**  |   | (217,244 | ) |
|           | Net                  cash used by investing activities                                                                     |   | **(5,867,186**                                                           | **)**  |   | (5,334,449 | ) |
|           |                                                                                                                       |   |                                                                     |   |   |   |   |
| **Financing**  | Net                  increase in demand and savings deposits                                                               |   | **5,136,054**                                                            |   |   | 5,667,456 |   |
| **activities** | Net                  increase (decrease) in time deposits                                                                  |   | **448,747**                                                              |   |   | (127,224 | ) |
|           | Net                  increase (decrease) in other borrowed money                                                           |   | **42,032**                                                               |   |   | (145,657 | ) |
|           | Dividends                  paid                                                                                            |   | **(53,336**                                                              | **)**  |   | (44,187 | ) |
|           | Redemption                  of long term debt                                                                              |   | **(155**                                                                 | **)**  |   |   |   |
|           | Proceeds                  from issuance of common stock under dividend                  reinvestment and other stock plans |   |  **129,447**                                                        |   |   |  100,954 |   |
|           | Other                                                                                                                      |   | **(1,039**                                                               | **)**  |   | (1,985 | ) |
|           | Net                  cash provided by financing activities                                                                 |   | **5,701,750**                                                            |   |   | 5,449,357 |   |
|           |                                                                                                                       |   |                                                                     |   |   |   |   |
|           | Increase                  in cash and cash equivalents                                                                     |   | **308,774**                                                              |   |   | 414,226 |   |
|           | Cash                  and cash equivalents at beginning of year                                                            |   | **1,050,806**                                                            |   |   | 910,092 |   |
|           | Cash                  and cash equivalents at end of period                                                                | **$**  | **1,359,580**                                                            |   | $ | 1,324,318 |   |
|           |                                                                                                                       |   |                                                                     |   |   |   |   |
|           | Supplemental                  disclosures of cash flow information:                                                        |   |                                                                     |   |   |   |   |
|           | Cash                  paid during the period for:                                                                          |   |                                                                     |   |   |   |   |
|           | Interest                                                                                                                   | **$**  | **332,875**                                                              |   | $ | 145,550 |   |
|           | Income                  taxes                                                                                              |   | **116,767**                                                              |   |   | 93,432 |   |
|           | Other                  noncash activities:                                                                                 |   |                                                                     |   |   |   |   |
|           | Transfer                  of loans to held for sale                                                                        |   | **249,500**                                                              |   |   |   |   |
|           | Issuance                  of common stock upon redemption of Convertible TrustCapital                  Securities          |   |  **195,069**                                                        |   |   |   |   |

See        accompanying notes.

----

**COMMERCE        BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY**

| Nine                  months ended September 30, 2005              |         |   |                            |   |         |   |         |   |                               |   |           |   |
|--------------------------------------------------------------------|--------------|--------|---------------------------------|--------|--------------|--------|--------------|--------|------------------------------------|--------|----------------|--------|
| *(in                  thousands)*                                  |         |   |                            |   |         |   |         |   |                               |   |           |   |
|                                                               |         |   | **Capital                  in** |   |         |   |         |   | **Accumulated**                    |   |           |   |
|                                                               |         |   | **Excess                  of**  |   |         |   |         |   | **Other**                          |   |           |   |
|                                                               | **Common**   |   | **Par**                         |   | **Retained** |   | **Treasury** |   | **Comprehensive**                  |   |           |   |
|                                                               | **Stock**    |   | **Value**                       |   | **Earnings** |   | **Stock**    |   | **Income                  (Loss)** |   | **Total**      |   |
|                                                               |         |   |                            |   |         |   |         |   |                               |   |           |   |
| **Balances                  at December 31, 2004**                 | **$160,636** |   | **$951,476**                    |   | **$543,978** |   | **$(11,338** | **)**  | **$20,953**                        |   | **$1,665,705** |   |
| Net                  income                                        |         |   |                            |   | 236,001      |   |         |   |                               |   | 236,001        |   |
| Other                  comprehensive loss, net of tax              |         |   |                            |   |         |   |         |   |                               |   |           |   |
| Unrealized                  loss on securities (pre-tax $85,175)   |         |   |                            |   |         |   |         |   | (53,660                            | )      | (53,660        | )      |
| Reclassification                  adjustment (pre-tax $3,694)      |         |   |                            |   |         |   |         |   | (2,401                             | )      | (2,401         | )      |
| Other                  comprehensive loss                          |         |   |                            |   |         |   |         |   |                               |   | (56,061        | )      |
| Total                  comprehensive income                        |         |   |                            |   |         |   |         |   |                               |   | 179,940        |   |
| Cash                  dividends                                    |         |   |                            |   | (54,761      | )      |         |   |                               |   | (54,761        | )      |
| Shares                  issued under dividend reinvestment         |         |   |                            |   |         |   |         |   |                               |   |           |   |
| and                  compensation and benefit plans (5,572 shares) | 5,572        |   | 123,875                         |   |         |   |         |   |                               |   | 129,447        |   |
| Shares                  issued upon redemption of Trust Capital    |         |   |                            |   |         |   |         |   |                               |   |           |   |
| Securities                  (7,576 shares)                         | 7,576        |   | 187,493                         |   |         |   |         |   |                               |   | 195,069        |   |
| Other                                                              |         |   | 336                             |   | (3           | )      | (1,372       | )      |                               |   | (1,039         | )      |
| **Balances                  at September 30, 2005**                | **$173,784** |   | **$1,263,180**                  |   | **$725,215** |   | **$(12,710** | **)**  | **$(35,108**                       | **)**  | **$2,114,361** |   |

See        accompanying notes

----

**COMMERCE        BANCORP, INC. AND SUBSIDIARIES**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**A.**
**Consolidated        Financial Statements**

**B.**
**Long-Term        Debt**

----

**C.        **
**Bank        Premises and Equipment**

**D.**
**Commitments**

**E.**
**Comprehensive        Income**

**F.**
**New        Accounting Standards**

----

**G.**
**Stock-Based        Compensation**

|                                                            |                                                                      |     |                                                                     |   |
|-----------------------------------------------------------------|---------------------------------------------------------------------------|----------|--------------------------------------------------------------------------|--------|
|                                                            | **Three                  Months Ended****September                  30,** |     | **Nine                  Months Ended****September                  30,** |   |
|                                                            |                                                                      | **2005** |                                                                     |   | **2004** |   |   | **2005** |   |   | **2004** |   |
| Reported                  net income                            | $                                                                         | 79,455   |                                                                     | $      | 70,090 |   | $ | 236,001 |   | $ | 198,300 |   |
| Less:                  Stock option compensation expense        |                                                                      |     |                                                                     |   |   |   |   |   |   |   |   |   |
| determined                  under fair value method, net of tax |                                                                      | (4,031   | )                                                                        |   | (3,090 | ) |   | (12,092 | ) |   | (9,600 | ) |
| Pro                  forma net income, basic                    | $                                                                         | 75,424   |                                                                     | $      | 67,000 |   | $ | 223,909 |   | $ | 188,700 |   |
| Add:                  Interest expense on Convertible Trust     |                                                                      |     |                                                                     |   |   |   |   |   |   |   |   |   |
| Capital                  Securities, net of tax                 |                                                                      | 1,520    |                                                                     |   | 1,963 |   |   | 5,446 |   |   | 5,889 |   |
| Pro                  forma net income, diluted                  | $                                                                         | 76,944   |                                                                     | $      | 68,963 |   | $ | 229,355 |   | $ | 194,589 |   |
|                                                            |                                                                      |     |                                                                     |   |   |   |   |   |   |   |   |   |
| Reported                  net income per share:                 |                                                                      |     |                                                                     |   |   |   |   |   |   |   |   |   |
| Basic                                                           | $                                                                         | 0.48     |                                                                     | $      | 0.45 |   | $ | 1.45 |   | $ | 1.27 |   |
| Diluted                                                         | $                                                                         | 0.45     |                                                                     | $      | 0.42 |   | $ | 1.36 |   | $ | 1.19 |   |
|                                                            |                                                                      |     |                                                                     |   |   |   |   |   |   |   |   |   |
| Pro                  forma net income per share:                |                                                                      |     |                                                                     |   |   |   |   |   |   |   |   |   |
| Basic                                                           | $                                                                         | 0.46     |                                                                     | $      | 0.43 |   | $ | 1.37 |   | $ | 1.21 |   |
| Diluted                                                         | $                                                                         | 0.43     |                                                                     | $      | 0.40 |   | $ | 1.29 |   | $ | 1.13 |   |

----

**H.        **
**Segment        Information**

|                                                 |                                                                           |      |                                                                           |        |
|------------------------------------------------------|--------------------------------------------------------------------------------|-----------|--------------------------------------------------------------------------------|-------------|
|                                                 | **Three                  Months Ended****September                  30, 2005** |      | **Three                  Months Ended****September                  30, 2004** |        |
|                                                 | **Community**                                                                  |      |                                                                           | **Parent/** |   |   |   |   | **Community** |   |   | **Parent/** |   |   |   |   |
|                                                 |                                                                           | **Banks** |                                                                           |        | **Other** |   |   | **Total** |   |   | **Banks** |   |   | **Other** |   |   | **Total** |   |
| Net                  interest income                 | $                                                                              | 288,799   |                                                                           | $           | (                  1,425 | ) | $ | 287,374 |   | $ | 266,351 |   | $ | (1,969 | ) | $ | 264,382 |   |
| Provision                  for loan losses           |                                                                           | 3,000     |                                                                           |        | - |   |   | 3,000 |   |   | 10,750 |   |   | - |   |   | 10,750 |   |
| Net                  interest income after provision |                                                                           | 285,799   |                                                                           |        | (1,425 | ) |   | 284,374 |   |   | 255,601 |   |   | (1,969 | ) |   | 253,632 |   |
| Noninterest                  income                  |                                                                           | 99,833    |                                                                           |        | 24,946 |   |   | 124,779 |   |   | 67,167 |   |   | 32,946 |   |   | 100,113 |   |
| Noninterest                  expense                 |                                                                           | 274,652   |                                                                           |        | 13,930 |   |   | 288,582 |   |   | 221,704 |   |   | 25,458 |   |   | 247,162 |   |
| Income                  before income taxes          |                                                                           | 110,980   |                                                                           |        | 9,591 |   |   | 120,571 |   |   | 101,064 |   |   | 5,519 |   |   | 106,583 |   |
| Income                  tax expense                  |                                                                           | 38,001    |                                                                           |        | 3,115 |   |   | 41,116 |   |   | 34,472 |   |   | 2,021 |   |   | 36,493 |   |
| Net                  income                          | $                                                                              | 72,979    |                                                                           | $           | 6,476 |   | $ | 79,455 |   | $ | 66,592 |   | $ | 3,498 |   | $ | 70,090 |   |
|                                                 |                                                                           |      |                                                                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                  assets (in millions)        | $                                                                              | 32,129    |                                                                           | $           | 2,515 |   | $ | 34,644 |   | $ | 25,203 |   | $ | 2,191 |   | $ | 27,394 |   |

|                                                 |                                                                          |      |                                                                          |        |
|------------------------------------------------------|-------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------|-------------|
|                                                 | **Nine                  Months Ended****September                  30, 2005** |      | **Nine                  Months Ended****September                  30, 2004** |        |
|                                                 | **Community**                                                                 |      |                                                                          | **Parent/** |   |   |   |   | **Community** |   |   | **Parent/** |   |   |   |   |
|                                                 |                                                                          | **Banks** |                                                                          |        | **Other** |   |   | **Total** |   |   | **Banks** |   |   | **Other** |   |   | **Total** |   |
| Net                  interest income                 | $                                                                             | 859,613   |                                                                          | $           | (4,871 | ) | $ | 854,742 |   | $ | 744,572 |   | $ | (5,229 | ) | $ | 739,343 |   |
| Provision                  for loan losses           |                                                                          | 13,750    |                                                                          |        | - |   |   | 13,750 |   |   | 30,998 |   |   |   |   |   | 30,998 |   |
| Net                  interest income after provision |                                                                          | 845,863   |                                                                          |        | (4,871 | ) |   | 840,992 |   |   | 713,574 |   |   | (5,229 | ) |   | 708,345 |   |
| Noninterest                  income                  |                                                                          | 265,052   |                                                                          |        | 79,059 |   |   | 344,111 |   |   | 192,136 |   |   | 86,484 |   |   | 278,620 |   |
| Noninterest                  expense                 |                                                                          | 769,320   |                                                                          |        | 56,167 |   |   | 825,487 |   |   | 614,212 |   |   | 71,455 |   |   | 685,667 |   |
| Income                  before income taxes          |                                                                          | 341,595   |                                                                          |        | 18,021 |   |   | 359,616 |   |   | 291,498 |   |   | 9,800 |   |   | 301,298 |   |
| Income                  tax expense                  |                                                                          | 117,630   |                                                                          |        | 5,985 |   |   | 123,615 |   |   | 99,596 |   |   | 3,402 |   |   | 102,998 |   |
| Net                  income                          | $                                                                             | 223,965   |                                                                          | $           | 12,036 |   | $ | 236,001 |   | $ | 191,902 |   | $ | 6,398 |   | $ | 198,300 |   |
|                                                 |                                                                          |      |                                                                          |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                  assets (in millions)        | $                                                                             | 30,370    |                                                                          | $           | 2,478 |   | $ | 32,848 |   | $ | 23,471 |   | $ | 2,104 |   | $ | 25,575 |   |

----

**I.**
**Net        Income Per Share**

|                                                                           |                                                                      |          |                                                                     |    |
|--------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------|--------------------------------------------------------------------------|---------|
|                                                                           | **Three                  Months Ended****September                  30,** |          | **Nine                  Months Ended****September                  30,** |    |
|                                                                           |                                                                      | **2005**      |                                                                     |    | **2004** |   |   | **2005** |   |   | **2004** |   |
|                                                                           |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
| **Basic:**                                                                     |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
| Net                  income available to common shareholders - basic           | $                                                                         | 79,455        |                                                                     | $       | 70,090 |   | $ | 236,001 |   | $ | 198,300 |   |
| Average                  common shares outstanding - basic                     |                                                                      | 165,701       |                                                                     |    | 157,250 |   |   | 162,947 |   |   | 155,851 |   |
| Net                  income per common share - basic                           |  $                                                                   | 0.48          |                                                                     | $       | 0.45 |   | $ | 1.45 |   | $ | 1.27 |   |
|                                                                           |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
| **Diluted:**                                                                   |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
| Net                  income                                                    | $                                                                         | 79,455        |                                                                     | $       | 70,090 |   | $ | 236,001 |   | $ | 198,300 |   |
| Add                  interest expense on Convertible Trust Capital Securities, |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
| net                  of tax                                                    |                                                                      | 1,520         |                                                                     |    | 1,963 |   |   | 5,446 |   |   | 5,889 |   |
|  Net                  income available to common shareholders - diluted   |  $                                                                   |  80,975  |                                                                     |  $ |  72,053 |   |  $ |  241,447 |   |  $ |  204,189 |   |
|                                                                           |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
|                                                                           |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
| Average                  common shares outstanding                             |                                                                      | 165,701       |                                                                     |    | 157,250 |   |   | 162,947 |   |   | 155,851 |   |
| Additional                  shares considered in diluted computation assuming: |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
| Exercise                  of stock options                                     |                                                                      | 8,478         |                                                                     |    | 7,258 |   |   | 7,894 |   |   | 8,432 |   |
| Conversion                  of Convertible Trust Capital Securities            |                                                                      | 6,181         |                                                                     |    | 7,582 |   |   | 7,110 |   |   | 7,582 |   |
|  Average                  common shares outstanding - diluted             |                                                                      |  180,360 |                                                                     |    |  172,090 |   |   |  177,951 |   |   |  171,865 |   |
|                                                                           |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |
| Net                  income per common share - diluted                         | $                                                                         | 0.45          |                                                                     | $       | 0.42 |   | $ | 1.36 |   | $ | 1.19 |   |
|                                                                           |                                                                      |          |                                                                     |    |   |   |   |   |   |   |   |   |

**J.  **
**Subsequent        Events**

----

**Item        2.**
**Management’s        Discussion and Analysis of Financial Condition and Results of        Operation**

**Executive        Summary**

**Capital        Resources**

|                                        |       |   | Per                  Regulatory Guidelines |      |
|---------------------------------------------|------------|--------|--------------------------------------------|-----------|
|                                        | Actual     |   | Minimum                                    |      | “Well                  Capitalized” |   |
|                                        | Amount     | Ratio  |                                       | Amount    | Ratio |   | Amount | Ratio |   |
|                                        |       |   |                                       |      |   |   |   |   |   |
| **September                  30, 2005:**    |       |   |                                       |      |   |   |   |   |   |
| Company                                     |       |   |                                       |      |   |   |   |   |   |
| Risk                  based capital ratios: |       |   |                                       |      |   |   |   |   |   |
| Tier                  1                     | $2,140,645 | 12.18  | %                                          | $703,048  | 4.00 | % | $1,054,572 | 6.00 | % |
| Total                  capital              | 2,286,589  | 13.01  |                                       | 1,406,096 | 8.00 |   | 1,757,620 | 10.00 |   |
| Leverage                  ratio             | 2,140,645  | 6.17   |                                       | 1,386,656 | 4.00 |   | 1,733,320 | 5.00 |   |
| Commerce                  NJ                |       |   |                                       |      |   |   |   |   |   |
| Risk                  based capital ratios: |       |   |                                       |      |   |   |   |   |   |
| Tier                  1                     | $1,879,731 | 11.73  | %                                          | $640,958  | 4.00 | % | $961,438 | 6.00 | % |
| Total                  capital              | 2,004,466  | 12.51  |                                       | 1,281,917 | 8.00 |   | 1,602,396 | 10.00 |   |
| Leverage                  ratio             | 1,879,731  | 6.01   |                                       | 1,250,242 | 4.00 |   | 1,562,802 | 5.00 |   |
|                                        |       |   |                                       |      |   |   |   |   |   |

----

|                                        |       |   |    | Per                  Regulatory Guidelines |                                            |
|---------------------------------------------|------------|--------|---------|--------------------------------------------|-------------------------------------------------|
|                                        | Actual     |   | Minimum |                                       | “Well                  Capitalized” |   |
|                                        | Amount     | Ratio  |    | Amount                                     | Ratio                                           |   | Amount | Ratio |   |
|                                        |       |   |    |                                       |                                            |   |   |   |   |
| **September                  30, 2004:**    |       |   |    |                                       |                                            |   |   |   |   |
| Company                                     |       |   |    |                                       |                                            |   |   |   |   |
| Risk                  based capital ratios: |       |   |    |                                       |                                            |   |   |   |   |
| Tier                  1                     | $1,727,456 | 12.31  | %       | $561,267                                   | 4.00                                            | % | $841,901 | 6.00 | % |
| Total                  capital              | 1,862,398  | 13.27  |    | 1,122,535                                  | 8.00                                            |   | 1,403,169 | 10.00 |   |
| Leverage                  ratio             | 1,727,456  | 6.30   |    | 1,097,088                                  | 4.00                                            |   | 1,371,360 | 5.00 |   |
| Commerce                  NJ                |       |   |    |                                       |                                            |   |   |   |   |
| Risk                  based capital ratios: |       |   |    |                                       |                                            |   |   |   |   |
| Tier                  1                     | $1,497,843 | 11.78  | %       | $508,526                                   | 4.00                                            | % | $762,789 | 6.00 | % |
| Total                  capital              | 1,618,047  | 12.73  |    | 1,017,052                                  | 8.00                                            |   | 1,271,315 | 10.00 |   |
| Leverage                  ratio             | 1,497,843  | 6.05   |    | 990,503                                    | 4.00                                            |   | 1,238,129 | 5.00 |   |

**Deposits**

|       |                                       |                               |                                       |                               |                                    |
|------------|--------------------------------------------|------------------------------------|--------------------------------------------|------------------------------------|-----------------------------------------|
|       | **September                  30,****2005** | **%                  of****Total** | **September                  30,****2004** | **%                  of****Total** | **Annual****Growth                  %** |
|       |                                       |                               |                                       |                               |                                    |
| Consumer   | $                  13,947                  | 43%                                | $                  11,388                  | 45%                                | 22%                                     |
|       |                                       |                               |                                       |                               |                                    |
| Commercial | 12,050                                     | 37                                 | 8,989                                      | 36                                 | 34                                      |
|       |                                       |                               |                                       |                               |                                    |
| Government | 6,374                                      | 20                                 | 4,732                                      | 19                                 | 35                                      |
|       |                                       |                               |                                       |                               |                                    |
| Total      | $                  32,371                  | 100%                               | $                  25,109                  | 100%                               | 29%                                     |
|       |                                       |                               |                                       |                               |                                    |

----

**Interest        Rate Sensitivity and Liquidity**

|                                 |   |                                    |   |                           |   |
|--------------------------------------|--------|-----------------------------------------|--------|--------------------------------|--------|
|                                 |   | **Basis                  Point Change** |   |
|                                 |   | **Plus                  200**           |   | **Minus                  100** |   |
| September                  30, 2005: |   |                                    |   |                           |   |
| Twelve                  Months       |   | (4.5                                    | )%     | (5.1                           | )%     |
| Twenty                  Four Months  |   | 2.4                                     | %      | (7.7                           | )%     |
|                                 |   |                                    |   |                           |   |
| September                  30, 2004: |   |                                    |   |                           |   |
| Twelve                  Months       |   | 1.21                                    | %      | (6.34                          | )%     |
| Twenty                  Four Months  |   | 8.64                                    | %      | (11.25                         | )%     |
|                                 |   |                                    |   |                           |   |

----

|                                    |                              |                           |
|-----------------------------------------|-----------------------------------|--------------------------------|
|                                    | **Market                  Value** |                           |
|                                    | **Of                  Equity**    | **Per                  Share** |
|                                    |                              |                           |
| Plus                  200 basis points  | $7,306                            | $42.04                         |
|                                    |                              |                           |
| Current                  Rate           | $7,321                            | $42.13                         |
|                                    |                              |                           |
| Minus                  100 basis points | $6,257                            | $36.00                         |

**Short-Term        Borrowings**

**Interest        Earning Assets**

----

**Loans**

|                                                |   | **September                  30,** |   |   | **December                  31,** |   |
|-----------------------------------------------------|--------|------------------------------------|--------|--------|-----------------------------------|--------|
|                                                |   | **2005**                           |   |   | **2004**                          |   |
|                                                |   | (in                  thousands)    |   |
| Commercial:                                         |   |                               |   |   |                              |   |
| Term                                                | $      | 1,629,366                          |   | $      | 1,283,476                         |   |
| Line                  of credit                     |   | 1,345,536                          |   |   | 1,168,542                         |   |
|                                                |   | 2,974,902                          |   |   | 2,452,018                         |   |
|                                                |   |                               |   |   |                              |   |
| Owner-occupied                                      |   | 2,313,175                          |   |   | 1,998,203                         |   |
|                                                |   | 5,288,077                          |   |   | 4,450,221                         |   |
|                                                |   |                               |   |   |                              |   |
| Consumer:                                           |   |                               |   |   |                              |   |
| Mortgages                  (1-4 family residential) |   | 1,621,419                          |   |   | 1,340,009                         |   |
| Installment                                         |   | 203,055                            |   |   | 132,646                           |   |
| Home                  equity                        |   | 2,177,317                          |   |   | 1,799,841                         |   |
| Credit                  lines                       |   | 86,256                             |   |   | 69,079                            |   |
|                                                |   | 4,088,047                          |   |   | 3,341,575                         |   |
| Commercial                  real estate:            |   |                               |   |   |                              |   |
| Investor                  developer                 |   | 1,657,101                          |   |   | 1,455,891                         |   |
| Construction                                        |   | 256,198                            |   |   | 206,924                           |   |
|                                                |   | 1,913,299                          |   |   | 1,662,815                         |   |
| Total                  loans                        | $      | 11,289,423                         |   | $      | 9,454,611                         |   |

**Investments**

----

|                                            |                           |   |                         |   |                      |
|-------------------------------------------------|--------------------------------|--------|------------------------------|--------|---------------------------|
|                                            | **Available**                  |   | **Held                  to** |   |                      |
| **Product                  Description**        | **For                  Sale**  |   | **Maturity**                 |   | **Total**                 |
|                                            | (in                  millions) |
| Mortgage-backed                  Securities:    |                           |   |                         |   |                      |
| Federal                  Agencies Pass Through  |                           |   |                         |   |                      |
| Certificates                  (AAA Rated)       | $                  1,217       |   | $                  2,378     |   | $                  3,595  |
|                                            |                           |   |                         |   |                      |
| Collateralized                  Mortgage        |                           |   |                         |   |                      |
| Obligations                  (AAA Rated)        | 6,991                          |   | 8,847                        |   | 15,838                    |
|                                            |                           |   |                         |   |                      |
| U.S.                  Government agencies/Other | 757                            |   | 1,737                        |   | 2,494                     |
|                                            |                           |   |                         |   |                      |
| Total                                           | $                  8,965       |   | $                  12,962    |   | $                  21,927 |
|                                            |                           |   |                         |   |                      |
| Duration                  (in years)            | 3.55                           |   | 4.10                         |   | 3.88                      |
| Average                  Life (in years)        | 4.29                           |   | 5.11                         |   | 4.78                      |
| Quarterly                  Average Yield        | 4.83%                          |   | 4.79%                        |   | 4.81%                     |

|                                                                    |   |                                       |
|-------------------------------------------------------------------------|--------|--------------------------------------------|
|                                                                    |   | **At                  September 30, 2005** |
|                                                                    |   |  **Amortized****Cost**                | **Gross****Unrealized****Gains** | **Gross****Unrealized****Losses** |  **Market****Value** |
| U.S.                  Government agency and mortgage-backed obligations |   |  $                  8,932,661         |  $                  1,263 |  $                  (72,622) |  $                  8,861,302 |
| Obligations                  of state and political subdivisions        |   | 60,078                                     | 78 | (449) | 59,707 |
| Equity                  securities                                      |   | 9,679                                      | 15,647 |   | 25,326 |
| Other                                                                   |   | 18,581                                     | 205 |   | 18,786 |
| Securities                  available for sale                          |   | $                  9,020,999               | $17,193 | $                  (73,071) | $                  8,965,121 |
|                                                                    |   |                                       |   |   |   |
| U.S.                  Government agency and mortgage-backed obligations |   |  $12,398,722                          |  $10,295 |  $(158,199) |  $12,250,818 |
| Obligations                  of state and political subdivisions        |   | 452,249                                    | 1,373 | (631) | 452,991 |
| Other                                                                   |   | 110,929                                    |   |   | 110,929 |
| Securities                  held to maturity                            |   | $12,961,900                                | $11,668 | $(158,830) | $12,814,738 |

----

|                                                                    |   |                                      |
|-------------------------------------------------------------------------|--------|-------------------------------------------|
|                                                                    |   | **At                  December 31, 2004** |
|                                                                    |   |  **Amortized****Cost**               | **Gross****Unrealized****Gains** | **Gross****Unrealized****Losses** |  **Market****Value** |
| U.S.                  Government agency and mortgage-backed obligations |   |  $                  7,884,113        |  $40,141 |  $(21,438) |  $                  7,902,816 |
| Obligations                  of state and political subdivisions        |   | 87,605                                    | 305 |   | 87,910 |
| Equity                  securities                                      |   | 10,129                                    | 13,174 |   | 23,303 |
| Other                                                                   |   | 29,312                                    | 809 |   | 30,121 |
| Securities                  available for sale                          |   | $                  8,011,159              | $54,429 | $(21,438) | $                  8,044,150 |
|                                                                    |   |                                      |   |   |   |
| U.S.                  Government agency and mortgage-backed obligations |   |  $                  9,967,041        |  $43,982 |  $(81,028) |  $                  9,929,995 |
| Obligations                  of state and political subdivisions        |   | 398,963                                   | 3,867 | (28) | 402,802 |
| Other                                                                   |   | 97,654                                    |   |   | 97,654 |
| Securities                  held to maturity                            |   | $10,463,658                               | $47,849 | $(81,056) | $10,430,451 |

**Net        Income**

----

**Net        Interest Income**

|                                   | **Net                  Interest Income** |
|----------------------------------------|------------------------------------------|
| **September**                          | **Volume**                               |   | **Rate** |   | **Total** |   | **%** |
| **2005                  vs. 2004**     | **Increase**                             |   | **Change** |   | **Increase** |   | **Increase** |
|                                   |                                     |   |   |   |   |   |   |
| **Quarter**                            | $                  66,471                |   | $(42,874) |   | $23,597 |   | 9% |
|                                   |                                     |   |   |   |   |   |   |
| **First                  Nine Months** | $204,086                                 |   | $(88,017) |   | $116,069 |   | 15% |

----

**Average        Balances and Net Interest Income**

|                                                   | September                  2005 |   | June                  2005 |   | September                  2004 |   |
|--------------------------------------------------------|---------------------------------|--------|----------------------------|--------|---------------------------------|--------|
|                                                   | Average                         |   |                       |   | Average                         |   | Average |   |   |   | Average |   | Average |   |   |   | Average |   |
| *(dollars                  in thousands)*              | Balance                         |   | Interest                   |   | Rate                            |   | Balance |   | Interest |   | Rate |   | Balance |   | Interest |   | Rate |   |
| **Earning                  Assets**                    |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                  securities                 |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                | $19,732,946                     |   | $                  239,481 |   | 4.81                            | %      | $18,821,647 |   | $                  231,275 |   | 4.93 | % | $15,741,541 |   | $191,627 |   | 4.84 | % |
| Tax-exempt                                             | 397,351                         |   | 4,366                      |   | 4.36                            |   | 374,448 |   | 3,257 |   | 3.49 |   | 385,814 |   | 5,126 |   | 5.29 |   |
| Trading                                                | 96,344                          |   | 1,335                      |   | 5.50                            |   | 178,037 |   | 2,427 |   | 5.47 |   | 159,954 |   | 1,552 |   | 3.86 |   |
| Total                  investment securities           | 20,226,641                      |   | 245,182                    |   | 4.81                            |   | 19,374,132 |   | 236,959 |   | 4.91 |   | 16,287,309 |   | 198,305 |   | 4.84 |   |
| Federal                  funds sold                    | 198,260                         |   | 1,774                      |   | 3.55                            |   | 117,491 |   | 889 |   | 3.03 |   | 40,413 |   | 148 |   | 1.46 |   |
| Loans                                                  |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                  mortgages                  | 3,865,284                       |   | 63,300                     |   | 6.50                            |   | 3,707,963 |   | 59,684 |   | 6.46 |   | 3,189,126 |   | 48,881 |   | 6.10 |   |
| Commercial                                             | 2,760,625                       |   | 47,117                     |   | 6.77                            |   | 2,569,001 |   | 41,417 |   | 6.47 |   | 2,069,986 |   | 28,552 |   | 5.49 |   |
| Consumer                                               | 4,087,665                       |   | 62,720                     |   | 6.09                            |   | 3,720,529 |   | 55,819 |   | 6.02 |   | 3,024,776 |   | 43,287 |   | 5.69 |   |
| Tax-exempt                                             | 498,211                         |   | 8,831                      |   | 7.03                            |   | 426,032 |   | 7,568 |   | 7.12 |   | 337,374 |   | 6,121 |   | 7.22 |   |
| Total                  loans                           | 11,211,785                      |   | 181,968                    |   | 6.44                            |   | 10,423,525 |   | 164,488 |   | 6.33 |   | 8,621,262 |   | 126,841 |   | 5.85 |   |
| Total                  earning assets                  | $31,636,686                     |   | $                  428,924 |   | 5.38                            | %      | $29,915,148 |   | $                  402,336 |   | 5.39 | % | $24,948,984 |   | $325,294 |   | 5.19 | % |
| **Sources                  of Funds**                  |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                  liabilities          |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                                                | $                  8,127,451    |   | $                  35,215  |   | 1.72                            | %      | $                  7,082,969 |   | $                  23,258 |   | 1.32 | % | $                  5,715,755 |   | $                  12,408 |   | 0.86 | % |
| Interest                  bearing demand               | 12,638,411                      |   | 68,100                     |   | 2.14                            |   | 12,094,680 |   | 53,755 |   | 1.78 |   | 10,270,059 |   | 24,539 |   | 0.95 |   |
| Time                  deposits                         | 2,734,408                       |   | 18,760                     |   | 2.72                            |   | 2,668,791 |   | 16,085 |   | 2.42 |   | 2,409,160 |   | 11,046 |   | 1.82 |   |
| Public                  funds                          | 842,894                         |   | 7,354                      |   | 3.46                            |   | 828,305 |   | 6,196 |   | 3.00 |   | 800,579 |   | 3,164 |   | 1.57 |   |
| Total                  deposits                        | 24,343,164                      |   | 129,429                    |   | 2.11                            |   | 22,674,745 |   | 99,294 |   | 1.76 |   | 19,195,553 |   | 51,157 |   | 1.06 |   |
|                                                   |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  borrowed money                  | 541,119                         |   | 4,697                      |   | 3.44                            |   | 845,462 |   | 6,917 |   | 3.28 |   | 614,282 |   | 2,255 |   | 1.46 |   |
| Long-term                  debt                        | 163,043                         |   | 2,339                      |   | 5.69                            |   | 200,000 |   | 3,020 |   | 6.06 |   | 200,000 |   | 3,020 |   | 6.01 |   |
| Total                  deposits and interest-bearing   |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities                                            | 25,047,326                      |   | 136,465                    |   | 2.16                            |   | 23,720,207 |   | 109,231 |   | 1.85 |   | 20,009,835 |   | 56,432 |   | 1.12 |   |
| Noninterest-bearing                  funds (net)       | 6,589,360                       |   |                       |   |                            |   | 6,194,941 |   |   |   |   |   | 4,939,149 |   |   |   |   |   |
| Total                  sources to fund earning assets  | $31,636,686                     |   | 136,465                    |   | 1.71                            |   | $29,915,148 |   | 109,231 |   | 1.46 |   | $                  24,948,984 |   | 56,432 |   | 0.90 |   |
|                                                   |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income and               |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| margin                  tax-equivalent basis           |                            |   | $                  292,459 |   | 3.67                            | %      |   |   | $                  293,105 |   | 3.93 | % |   |   | $268,862 |   | 4.29 | % |
| **Other                  Balances**                    |                            |   |                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  and due from banks               | $                  1,306,848    |   |                       |   |                            |   | $                  1,241,372 |   |   |   |   |   | $                  1,145,324 |   |   |   |   |   |
| Other                  assets                          | 1,845,602                       |   |                       |   |                            |   | 1,749,133 |   |   |   |   |   | 1,430,576 |   |   |   |   |   |
| Total                  assets                          | 34,644,396                      |   |                       |   |                            |   | 32,763,128 |   |   |   |   |   | 27,393,847 |   |   |   |   |   |
| Total                  deposits                        | 31,788,250                      |   |                       |   |                            |   | 29,661,511 |   |   |   |   |   | 24,852,938 |   |   |   |   |   |
| Demand                  deposits (noninterest-bearing) | 7,445,086                       |   |                       |   |                            |   | 6,986,766 |   |   |   |   |   | 5,657,385 |   |   |   |   |   |
| Other                  liabilities                     | 240,177                         |   |                       |   |                            |   | 259,873 |   |   |   |   |   | 248,878 |   |   |   |   |   |
| Stockholders’                  equity            | 1,911,807                       |   |                       |   |                            |   | 1,796,282 |   |   |   |   |   | 1,477,749 |   |   |   |   |   |

| 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.                                                                                                    |

----

**Noninterest        Income**

|                                     |                                                                      |   |                                                                     |
|------------------------------------------|---------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|
|                                     | **Three                  Months Ended****September                  30,** |   | **Nine                  Months Ended****September                  30,** |
|                                     | **2005**                                                                  |   | **2004**                                                                 |   | **2005** |   | **2004** |
| Other                  operating income: |                                                                      |   |                                                                     |   |   |   |   |
| Insurance                                | $19,539                                                                   |   | $19,178                                                                  |   | $58,079 |   | $56,084 |
| Capital                  Markets         | 5,268                                                                     |   | 8,268                                                                    |   | 18,956 |   | 24,617 |
| Loan                  Brokerage Fees     | 7,378                                                                     |   | 3,027                                                                    |   | 13,086 |   | 9,805 |
| Other                                    | 14,578                                                                    |   | 11,616                                                                   |   | 41,411 |   | 30,833 |
| Total                  other             | $46,763                                                                   |   | $42,089                                                                  |   | $131,532 |   | $121,339 |

**Noninterest        Expense**

|                                                     |                                                                      |   |                                                                     |
|----------------------------------------------------------|---------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|
|                                                     | **Three                  Months Ended****September                  30,** |   | **Nine                  Months Ended****September                  30,** |
|                                                     | **2005**                                                                  |   | **2004**                                                                 |   | **2005** |   | **2004** |
| Other                  noninterest expense:              |                                                                      |   |                                                                     |   |   |   |   |
| Business                  development costs              | $                  8,589                                                  |   | $                  7,289                                                 |   | $                  29,359 |   | $                  21,530 |
| Bank-card                  related service charges       | 11,601                                                                    |   | 9,741                                                                    |   | 34,825 |   | 25,686 |
| Professional                  services/Insurance         | 5,805                                                                     |   | 11,708                                                                   |   | 24,663 |   | 28,838 |
| Provision                  for non-credit-related losses | 6,378                                                                     |   | 5,438                                                                    |   | 20,693 |   | 15,334 |
| Other                                                    | 20,485                                                                    |   | 18,767                                                                   |   | 58,935 |   | 51,557 |
| Total                  other                             | $52,858                                                                   |   | $52,943                                                                  |   | $168,475 |   | $142,945 |

----

**Loan        and Asset Quality**

----

|                                                          |   | **September                  30,****2005** |    | **June                  30,****2005** |   | **March                  31,****2005** |   | **December                  31,****2004** |    | **September                  30,****2004** |   |
|---------------------------------------------------------------|--------|--------------------------------------------|---------|---------------------------------------|--------|----------------------------------------|--------|-------------------------------------------|---------|--------------------------------------------|--------|
| Non-accrual                  loans:                           |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |
| Commercial                                                    |   |                                       | $16,926 |                                  |   | $20,467                                |   |                                      | $18,376 |                                       |   | $17,874 |   |   | $22,647 |   |
| Consumer                                                      |   |                                       | 8,559   |                                  |   | 8,641                                  |   |                                      | 8,723   |                                       |   | 10,138 |   |   | 9,784 |   |
| Real                  estate:                                 |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Construction                                                  |   |                                       | 1,882   |                                  |   | 178                                    |   |                                      | 178     |                                       |   |   |   |   |   |   |
| Mortgage                                                      |   |                                       | 3,353   |                                  |   | 3,086                                  |   |                                      | 1,290   |                                       |   | 1,317 |   |   | 1,251 |   |
| Total                  non-accrual loans                      |   |                                       | 30,720  |                                  |   | 32,372                                 |   |                                      | 28,567  |                                       |   | 29,329 |   |   | 33,682 |   |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Restructured                  loans:                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Commercial                                                    |   |                                       | 3,230   |                                  |   | 3,326                                  |   |                                      | 3,422   |                                       |   | 3,518 |   |   | 3,614 |   |
| Total                  restructured loans                     |   |                                       | 3,230   |                                  |   | 3,326                                  |   |                                      | 3,422   |                                       |   | 3,518 |   |   | 3,614 |   |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Total                  non-performing loans                   |   |                                       | 33,950  |                                  |   | 35,698                                 |   |                                      | 31,989  |                                       |   | 32,847 |   |   | 37,296 |   |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Other                  real estate                            |   |                                       | 310     |                                  |   | 349                                    |   |                                      | 777     |                                       |   | 626 |   |   | 972 |   |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Total                  non-performing assets                  |   |                                       | 34,260  |                                  |   | 36,047                                 |   |                                      | 32,766  |                                       |   | 33,473 |   |   | 38,268 |   |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Loans                  past due 90 days or more               |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| and                  still accruing                           |   |                                       | 177     |                                  |   | 165                                    |   |                                      | 233     |                                       |   | 602 |   |   | 614 |   |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Total                  non-performing assets and              |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| loans                  past due 90 days or more               |   |                                       | $34,437 |                                  |   | $36,212                                |   |                                      | $32,999 |                                       |   | $34,075 |   |   | $38,882 |   |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Total                  non-performing loans as a              |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| percentage                  of total period-end loans         |   |                                       | 0.30    | %                                     |   | 0.33                                   | %      |                                      | 0.32    | %                                          |   | 0.35 | % |   | 0.42 | % |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Total                  non-performing assets as a             |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| percentage                  of total period-end assets        |   |                                       | 0.09    | %                                     |   | 0.11                                   | %      |                                      | 0.10    | %                                          |   | 0.11 | % |   | 0.13 | % |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Total                  non-performing assets and loans        |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| past                  due 90 days or more as a                |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| percentage                  of total period-end assets        |   |                                       | 0.09    | %                                     |   | 0.11                                   | %      |                                      | 0.10    | %                                          |   | 0.11 | % |   | 0.14 | % |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Allowance                  for loan losses as a percentage    |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| of                  total non-performing loans                |   |                                       | 409     | %                                     |   | 396                                    | %      |                                      | 435     | %                                          |   | 413 | % |   | 353 | % |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Allowance                  for loan losses as a percentage    |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| of                  total period-end loans                    |   |                                       | 1.23    | %                                     |   | 1.32                                   | %      |                                      | 1.40    | %                                          |   | 1.43 | % |   | 1.48 | % |
|                                                          |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| Total                  non-performing assets and loans        |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| past                  due 90 days or more as a                |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| percentage                  of stockholders’ equity and |   |                                       |    |                                  |   |                                   |   |                                      |    |                                       |   |   |   |   |   |   |
| allowance                  for loan losses                    |   |                                       | 2       | %                                     |   | 2                                      | %      |                                      | 2       | %                                          |   | 2 | % |   | 2 | % |

----

|                                                         | **Three                  Months Ended** |   | **Nine                  Months Ended** |   | **Year                  Ended**   |   |
|--------------------------------------------------------------|-----------------------------------------|--------|----------------------------------------|--------|-----------------------------------|--------|
|                                                         | **September                  30,**      |   | **September                  30,**     |   | **December                  31,** |   |
|                                                         | **2005**                                |   | **2004**                               |   | **2005**                          |   | **2004** |   | **2004** |   |
| Balance                  at beginning of period              | $141,325                                |   | $124,688                               |   | $135,620                          |   | $112,057 |   | $112,057 |   |
| Provisions                  charged to operating expenses    | 3,000                                   |   | 10,750                                 |   | 13,750                            |   | 30,998 |   | 39,238 |   |
|                                                         | 144,325                                 |   | 135,438                                |   | 149,370                           |   | 143,055 |   | 151,295 |   |
|                                                         |                                    |   |                                   |   |                              |   |   |   |   |   |
| Recoveries                  on loans previously charged-off: |                                    |   |                                   |   |                              |   |   |   |   |   |
| Commercial                                                   | 930                                     |   | 435                                    |   | 1,920                             |   | 695 |   | 1,000 |   |
| Consumer                                                     | 245                                     |   | 265                                    |   | 1,332                             |   | 636 |   | 1,123 |   |
| Commercial                  real estate                      | 30                                      |   | 4                                      |   | 80                                |   | 52 |   | 52 |   |
| Total                  recoveries                            | 1,205                                   |   | 704                                    |   | 3,332                             |   | 1,383 |   | 2,175 |   |
|                                                         |                                    |   |                                   |   |                              |   |   |   |   |   |
| Loans                  charged-off:                          |                                    |   |                                   |   |                              |   |   |   |   |   |
| Commercial                                                   | (5,287                                  | )      | (1,651                                 | )      | (9,102                            | )      | (6,649 | ) | (9,416 | ) |
| Consumer                                                     | (1,318                                  | )      | (2,951                                 | )      | (3,720                            | )      | (4,627 | ) | (6,733 | ) |
| Commercial                  real estate                      | (22                                     | )      | (11                                    | )      | (977                              | )      | (1,633 | ) | (1,701 | ) |
| Total                  charge-offs                           | (6,627                                  | )      | (4,613                                 | )      | (13,799                           | )      | (12,909 | ) | (17,850 | ) |
| Net                  charge-offs                             | (5,422                                  | )      | (3,909                                 | )      | (10,467                           | )      | (11,526 | ) | (15,675 | ) |
|                                                         |                                    |   |                                   |   |                              |   |   |   |   |   |
| Balance                  at end of period                    | $138,903                                |   | $131,529                               |   | $138,903                          |   | $131,529 |   | $135,620 |   |
|                                                         |                                    |   |                                   |   |                              |   |   |   |   |   |
| Net                  charge-offs as a percentage of          |                                    |   |                                   |   |                              |   |   |   |   |   |
| average                  loans outstanding                   | 0.20                                    | %      | 0.18                                   | %      | 0.13                              | %      | 0.19 | % | 0.19 | % |
|                                                         |                                    |   |                                   |   |                              |   |   |   |   |   |
| Net                  Reserve (Reductions) Additions          | $(2,422                                 | )      | $6,841                                 |   | $3,283                            |   | $19,472 |   | $23,563 |   |

----

**Forward-Looking        Statements**

**Item        3.**
**Quantitative        and Qualitative Disclosures About Market Risk**

----

**Item        4. **
**Controls        and Procedures**

**Quarterly        evaluation of the Company’s Disclosure Controls and Internal        Controls**

**Limitations        on the Effectiveness of Controls**

**Conclusions.**

**PART        II.**
**OTHER        INFORMATION**

**Item        1. **
**LegalProceedings**

----

**Item        6.**
**Exhibits**

| Exhibit                  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.                                              |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                                                                                                                                                                    |
| Exhibit                  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.                                              |
|                          |                                                                                                                                                                                                                                                                                    |
| Exhibit                  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. |

**SIGNATURES**

|                              |   | COMMERCE                  BANCORP, INC.                       |
|-----------------------------------|--------|---------------------------------------------------------------|
|                              |   | (Registrant)                                                  |
|                              |   |                                                          |
|                              |   |                                                          |
|                              |   |                                                          |
|                              |   |                                                          |
|                              |   |                                                          |
|                              |   |                                                          |
|                              |   |                                                          |
|                              |   |                                                          |
|                              |   |                                                          |
|                              |   |                                                          |
| NOVEMBER                  7, 2005 |   | /s/                  DOUGLAS J. PAULS                         |
| (Date)                            |   | DOUGLAS                  J. PAULS                             |
|                              |   | SENIOR                  VICE PRESIDENT AND                    |
|                              |   | CHIEF                  FINANCIAL OFFICER                      |
|                              |   | (PRINCIPAL                  FINANCIAL AND ACCOUNTING OFFICER) |

----