**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 June                30, 2006                                                      |

| (                ) | 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                __  |
|----------------------|----------------------------|

| Large                accelerated filer X | Accelerated                filer __ | Non-accelerated                filer __ |
|------------------------------------------|-------------------------------------|-----------------------------------------|

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

| Common                Stock     | 186,497,629                                                                   |
|---------------------------------|-------------------------------------------------------------------------------|
| (Title                of Class) | (No.                of Shares Outstanding as                of July 31, 2006) |

----

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

|                    |                                                                                                      | Page   |
|-------------------------|-----------------------------------------------------------------------------------------------------------|--------|
| PART                I.  | FINANCIAL                INFORMATION                                                                      |   |
|                    |                                                                                                      |   |
| Item                1.  | Financial                Statements                                                                       |   |
|                    |                                                                                                      |   |
|                    | Consolidated                Balance Sheets                (unaudited)                                     |   |
|                    | June                30, 2006 and December 31, 2005                                                        | 1      |
|                    |                                                                                                      |   |
|                    | Consolidated                Statements of Income                (unaudited)                               |   |
|                    | Three                months ended June 30, 2006 and June 30, 2005                and                      |   |
|                    | six                months ended June 30, 2006 and June 30,                2005                            | 2      |
|                    |                                                                                                      |   |
|                    | Consolidated                Statements of Cash Flows                (unaudited)                           |   |
|                    | Six                months ended June 30, 2006 and June 30,                2005                            | 3      |
|                    |                                                                                                      |   |
|                    | Consolidated                Statement of Changes in Stockholders’ Equity                (unaudited) |   |
|                    | Six                months ended June 30, 2006                                                             | 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                4.  | Submission                of Matters to a Vote of Security                Holders                         | 25     |
|                    |                                                                                                      |   |
| Item                6.  | Exhibits                                                                                                  | 25     |
|                    |                                                                                                      |   |

----

**PART1.**
**FINANCIAL      INFORMATION**

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

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                    |                                                               |   |                        |   |                            |       |
|-------------------------|--------------------------------------------------------------------|--------|-----------------------------|--------|---------------------------------|------------|
|                    |                                                               |   | **June                30,** |   | **December                31,** |       |
|                    | (dollars                in thousands)                              |   | **2006**                    |   |                            | **2005**   |   |
| **Assets**              | Cash                and due from banks                             | **$**  | **1,409,537**               |   | $                               | 1,284,064  |   |
|                    | Federal                funds sold                                  |   | **56,600**                  |   |                            | 12,700     |   |
|                    | Cash                and cash equivalents                           |   | **1,466,137**               |   |                            | 1,296,764  |   |
|                    | Loans                held for sale                                 |   | **43,825**                  |   |                            | 30,091     |   |
|                    | Trading                securities                                  |   | **91,148**                  |   |                            | 143,016    |   |
|                    | Securities                available for sale                       |   | **11,074,128**              |   |                            | 9,518,821  |   |
|                    | Securities                held to maturity                         |   | **14,415,921**              |   |                            | 13,005,364 |   |
|                    | (market                value 06/06-$13,904,538; 12/05-$12,758,552) |   |                        |   |                            |       |   |
|                    | Loans                                                              |   | **14,273,526**              |   |                            | 12,658,652 |   |
|                    | Less                allowance for loan and lease losses            |   | **140,746**                 |   |                            | 133,664    |   |
|                    |                                                               |   | **14,132,780**              |   |                            | 12,524,988 |   |
|                    | Bank                premises and equipment, net                    |   | **1,494,333**               |   |                            | 1,378,786  |   |
|                    | Goodwill                and other intangible assets                |   | **148,846**                 |   |                            | 106,926    |   |
|                    | Other                assets                                        |   | **569,181**                 |   |                            | 461,281    |   |
|                    | Total                assets                                        | **$**  | **43,436,299**              |   | $                               | 38,466,037 |   |
|                    |                                                               |   |                        |   |                            |       |   |
| **Liabilities**         | Deposits:                                                          |   |                        |   |                            |       |   |
|                    | Demand:                                                            |   |                        |   |                            |       |   |
|                    | Noninterest-bearing                                                | **$**  | **8,653,739**               |   | $                               | 8,019,878  |   |
|                    | Interest-bearing                                                   |   | **14,269,002**              |   |                            | 13,286,678 |   |
|                    | Savings                                                            |   | **10,765,985**              |   |                            | 9,486,712  |   |
|                    | Time                                                               |   | **4,361,036**               |   |                            | 3,933,445  |   |
|                    | Total                deposits                                      |   | **38,049,762**              |   |                            | 34,726,713 |   |
|                    | Other                borrowed money                                |   | **2,568,445**               |   |                            | 1,106,443  |   |
|                    | Other                liabilities                                   |   | **291,732**                 |   |                            | 323,708    |   |
|                    | Total                liabilities                                   |   | **40,909,939**              |   |                            | 36,156,864 |   |
|                    |                                                               |   |                        |   |                            |       |   |
| **Stockholders’** | Common                stock, 186,661,589 shares                    |   |                        |   |                            |       |   |
| **Equity**              | issued                (179,498,717 shares in 2005)                 |   | **186,662**                 |   |                            | 179,499    |   |
|                    | Capital                in excess of par value                      |   | **1,646,984**               |   |                            | 1,450,843  |   |
|                    | Retained                earnings                                   |   | **863,229**                 |   |                            | 750,710    |   |
|                    | Accumulated                other comprehensive loss                |   | **(154,043**                | **)**  |                            | (59,169    | ) |
|                    |                                                               |   | **2,542,832**               |   |                            | 2,321,883  |   |
|                    |                                                               |   |                        |   |                            |       |   |
|                    | Less                treasury stock, at cost, 946,626 shares        |   |                        |   |                            |       |   |
|                    | (837,338                shares in 2005)                            |   | **16,472**                  |   |                            | 12,710     |   |
|                    | Total                stockholders’ equity                    |   | **2,526,360**               |   |                            | 2,309,173  |   |
|                    | Total                liabilities and stockholders’ equity    | **$**  | **43,436,299**              |   | $                               | 38,466,037 |   |

----

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF INCOME**

|            |                                                            |                                                             |        |   |                                                           |     |
|-----------------|-----------------------------------------------------------------|------------------------------------------------------------------|-------------|--------|----------------------------------------------------------------|----------|
|            |                                                            | **Three                Months Ended****June                30,** |        |   | **Six                Months Ended****June                30,** |     |
|            | (dollars                in thousands, except per share amounts) |                                                             | **2006**    |   |                                                           | **2005** |   |   | **2006** |   |   | **2005** |   |
| **Interest**    | Interest                and fees on loans                       | **$**                                                            | **236,890** |   | $                                                              | 161,839  |   | **$** | **451,864** |   | $ | 307,057 |   |
| **income**      | Interest                on investments                          |                                                             | **325,022** |   |                                                           | 234,970  |   |   | **620,098** |   |   | 459,916 |   |
|            | Other                interest                                   |                                                             | **250**     |   |                                                           | 889      |   |   | **663** |   |   | 1,205 |   |
|            | Total                interest income                            |                                                             | **562,162** |   |                                                           | 397,698  |   |   | **1,072,625** |   |   | 768,178 |   |
|            |                                                            |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
| **Interest**    | Interest                on deposits:                            |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
| **expense**     | Demand                                                          |                                                             | **118,085** |   |                                                           | 53,755   |   |   | **216,025** |   |   | 100,426 |   |
|            | Savings                                                         |                                                             | **64,157**  |   |                                                           | 23,258   |   |   | **118,161** |   |   | 42,338 |   |
|            | Time                                                            |                                                             | **41,174**  |   |                                                           | 22,281   |   |   | **77,435** |   |   | 40,679 |   |
|            | Total                interest on deposits                       |                                                             | **223,416** |   |                                                           | 99,294   |   |   | **411,621** |   |   | 183,443 |   |
|            | Interest                on other borrowed money                 |                                                             | **19,809**  |   |                                                           | 6,917    |   |   | **34,137** |   |   | 11,327 |   |
|            | Interest                on long-term debt                       |                                                             |        |   |                                                           | 3,020    |   |   |   |   |   | 6,040 |   |
|            | Total                interest expense                           |                                                             | **243,225** |   |                                                           | 109,231  |   |   | **445,758** |   |   | 200,810 |   |
|            |                                                            |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
|            | Net                interest income                              |                                                             | **318,937** |   |                                                           | 288,467  |   |   | **626,867** |   |   | 567,368 |   |
|            | Provision                for credit losses                      |                                                             | **7,500**   |   |                                                           | 4,500    |   |   | **14,001** |   |   | 10,750 |   |
|            | Net                interest income after provision for          |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
|            | credit                losses                                    |                                                             | **311,437** |   |                                                           | 283,967  |   |   | **612,866** |   |   | 556,618 |   |
|            |                                                            |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
| **Noninterest** | Deposit                charges and service fees                 |                                                             | **91,653**  |   |                                                           | 68,802   |   |   | **173,934** |   |   | 128,766 |   |
| **income**      | Other                operating income                           |                                                             | **51,303**  |   |                                                           | 42,152   |   |   | **100,024** |   |   | 84,769 |   |
|            | Net                investment securities gains                  |                                                             |        |   |                                                           | 4,689    |   |   |   |   |   | 5,797 |   |
|            | Total                noninterest income                         |                                                             | **142,956** |   |                                                           | 115,643  |   |   | **273,958** |   |   | 219,332 |   |
|            |                                                            |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
| **Noninterest** | Salaries                and benefits                            |                                                             | **150,630** |   |                                                           | 127,552  |   |   | **295,455** |   |   | 246,853 |   |
| **expense**     | Occupancy                                                       |                                                             | **45,487**  |   |                                                           | 39,110   |   |   | **91,727** |   |   | 77,103 |   |
|            | Furniture                and equipment                          |                                                             | **39,656**  |   |                                                           | 28,895   |   |   | **75,616** |   |   | 57,821 |   |
|            | Office                                                          |                                                             | **14,398**  |   |                                                           | 12,577   |   |   | **29,871** |   |   | 25,254 |   |
|            | Marketing                                                       |                                                             | **11,699**  |   |                                                           | 8,456    |   |   | **19,510** |   |   | 14,257 |   |
|            | Other                                                           |                                                             | **71,914**  |   |                                                           | 61,909   |   |   | **136,939** |   |   | 115,617 |   |
|            | Total                noninterest expenses                       |                                                             | **333,784** |   |                                                           | 278,499  |   |   | **649,118** |   |   | 536,905 |   |
|            |                                                            |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
|            | Income                before income taxes                       |                                                             | **120,609** |   |                                                           | 121,111  |   |   | **237,706** |   |   | 239,045 |   |
|            | Provision                for federal and state income taxes     |                                                             | **41,089**  |   |                                                           | 41,702   |   |   | **80,889** |   |   | 82,499 |   |
|            | Net                income                                       | **$**                                                            | **79,520**  |   | $                                                              | 79,409   |   | **$** | **156,817** |   | $ | 156,546 |   |
|            |                                                            |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
|            | Net                income per common and common                 |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
|            | equivalent                share:                                |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
|            | Basic                                                           | **$**                                                            | **0.43**    |   | $                                                              | 0.49     |   | **$** | **0.86** |   | $ | 0.97 |   |
|            | Diluted                                                         | **$**                                                            | **0.41**    |   | $                                                              | 0.46     |   | **$** | **0.82** |   | $ | 0.91 |   |
|            | Average                common and common equivalent             |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
|            | shares                outstanding:                              |                                                             |        |   |                                                           |     |   |   |   |   |   |   |   |
|            | Basic                                                           |                                                             | **184,437** |   |                                                           | 162,287  |   |   | **182,686** |   |   | 161,547 |   |
|            | Diluted                                                         |                                                             | **193,842** |   |                                                           | 177,202  |   |   | **191,914** |   |   | 176,724 |   |
|            | Dividends                declared, common stock                 | **$**                                                            | **0.12**    |   | $                                                              | 0.11     |   | **$** | **0.24** |   | $ | 0.22 |   |

----

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|           |                                                                                                                   |   |                                                           |   |
|----------------|------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|           |                                                                                                                   |   | **Six                Months Ended****June                30,** |   |
|           | (dollars                in thousands)                                                                                  |   | **2006**                                                       |   |   | **2005** |   |
| **Operating**  | Net                income                                                                                              | **$**  | **156,817**                                                    |   | $ | 156,546 |   |
| **activities** | Adjustments                to reconcile net income to net cash                                                         |   |                                                           |   |   |   |   |
|           | provided                by operating activities:                                                                       |   |                                                           |   |   |   |   |
|           | Provision                for credit losses                                                                             |   | **14,001**                                                     |   |   | 10,750 |   |
|           | Provision                for depreciation, amortization and accretion                                                  |   | **76,179**                                                     |   |   | 75,851 |   |
|           | Stock-based                compensation expense                                                                        |   | **2,733**                                                      |   |   |   |   |
|           | Gain                on sales of securities                                                                             |   |                                                           |   |   | (5,797 | ) |
|           | Proceeds                from sales of loans held for sale                                                              |   | **291,142**                                                    |   |   | 346,381 |   |
|           | Originations                of loans held for sale                                                                     |   | **(304,876**                                                   | **)**  |   | (367,246 | ) |
|           | Net                decrease (increase) in trading securities                                                           |   | **51,868**                                                     |   |   | (14,791 | ) |
|           | Increase                in other assets, net                                                                           |   | **(49,605**                                                    | **)**  |   | (24,914 | ) |
|           | Decrease                in other liabilities                                                                           |   | **(46,437**                                                    | **)**  |   | (89,165 | ) |
|           | Net                cash provided by operating activities                                                               |   | **191,822**                                                    |   |   | 87,615 |   |
|           |                                                                                                                   |   |                                                           |   |   |   |   |
| **Investing**  | Proceeds                from the sales of securities available for sale                                                |   |                                                           |   |   | 1,751,170 |   |
| **activities** | Proceeds                from the maturity of securities available for sale                                             |   | **969,424**                                                    |   |   | 1,462,746 |   |
|           | Proceeds                from the maturity of securities held to maturity                                               |   | **1,096,533**                                                  |   |   | 1,184,845 |   |
|           | Purchase                of securities available for sale                                                               |   | **(2,681,109**                                                 | **)**  |   | (2,875,296 | ) |
|           | Purchase                of securities held to maturity                                                                 |   | **(2,514,270**                                                 | **)**  |   | (2,438,003 | ) |
|           | Net                increase in loans                                                                                   |   | **(1,621,793**                                                 | **)**  |   | (1,488,651 | ) |
|           | Capital                expenditures                                                                                    |   | **(180,169**                                                   | **)**  |   | (127,658 | ) |
|           | Net                cash used by investing activities                                                                   |   | **(4,931,384**                                                 | **)**  |   | (2,530,847 | ) |
|           |                                                                                                                   |   |                                                           |   |   |   |   |
| **Financing**  | Net                increase in demand and savings deposits                                                             |   | **2,895,458**                                                  |   |   | 2,509,988 |   |
| **activities** | Net                increase in time deposits                                                                           |   | **427,591**                                                    |   |   | 350,190 |   |
|           | Net                increase (decrease) in other borrowed money                                                         |   | **1,462,002**                                                  |   |   | (93,849 | ) |
|           | Dividends                paid                                                                                          |   | **(43,452**                                                    | **)**  |   | (35,378 | ) |
|           | Proceeds                from issuance of common stock under dividend                reinvestment and other stock plans |   |  **167,300**                                              |   |   |  76,914 |   |
|           | Other                                                                                                                  |   | **36**                                                         |   |   | (1,393 | ) |
|           | Net                cash provided by financing activities                                                               |   | **4,908,935**                                                  |   |   | 2,806,472 |   |
|           |                                                                                                                   |   |                                                           |   |   |   |   |
|           | Increase                in cash and cash equivalents                                                                   |   | **169,373**                                                    |   |   | 363,240 |   |
|           | Cash                and cash equivalents at beginning of year                                                          |   | **1,296,764**                                                  |   |   | 1,050,806 |   |
|           | Cash                and cash equivalents at end of period                                                              | **$**  | **1,466,137**                                                  |   | $ | 1,414,046 |   |
|           |                                                                                                                   |   |                                                           |   |   |   |   |
|           | Supplemental                disclosures of cash flow information:                                                      |   |                                                           |   |   |   |   |
|           | Cash                paid during the period for:                                                                        |   |                                                           |   |   |   |   |
|           | Interest                                                                                                               | **$**  | **441,040**                                                    |   | $ | 198,427 |   |
|           | Income                taxes                                                                                            |   | **77,279**                                                     |   |   | 75,370 |   |
|           | Other                noncash activities:                                                                               |   |                                                           |   |   |   |   |
|           | Transfer                of loans to held for sale                                                                      |   |                                                           |   |   | 249,500 |   |

----

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

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

| Six                months ended June 30, 2006                    |         |   |                          |   |         |   |         |   |              |   |           |   |
|------------------------------------------------------------------|--------------|--------|-------------------------------|--------|--------------|--------|--------------|--------|-------------------|--------|----------------|--------|
| (in                thousands)                                    |         |   |                          |   |         |   |         |   |              |   |           |   |
|                                                             |         |   | **Capital                in** |   |         |   |         |   | **Accumulated**   |   |           |   |
|                                                             |         |   | **Excess                of**  |   |         |   |         |   | **Other**         |   |           |   |
|                                                             | **Common**   |   | **Par**                       |   | **Retained** |   | **Treasury** |   | **Comprehensive** |   |           |   |
|                                                             | **Stock**    |   | **Value**                     |   | **Earnings** |   | **Stock**    |   | **Loss**          |   | **Total**      |   |
|                                                             |         |   |                          |   |         |   |         |   |              |   |           |   |
| **Balances                at December 31, 2005**                 | **$179,499** |   | **$1,450,843**                |   | **$750,710** |   | **$(12,710** | **)**  | **$(59,169**      | **)**  | **$2,309,173** |   |
| Net                income                                        |         |   |                          |   | 156,817      |   |         |   |              |   | 156,817        |   |
| Other                comprehensive loss, net of tax              |         |   |                          |   |         |   |         |   |              |   |           |   |
| Unrealized                loss on securities (pre-tax $152,964)  |         |   |                          |   |         |   |         |   | (94,874           | )      | (94,874        | )      |
| Total                comprehensive income                        |         |   |                          |   |         |   |         |   |              |   | 61,943         |   |
| Cash                dividends                                    |         |   |                          |   | (44,297      | )      |         |   |              |   | (44,297        | )      |
| Shares                issued under dividend reinvestment         |         |   |                          |   |         |   |         |   |              |   |           |   |
| and                compensation and benefit plans (6,303 shares) | 6,303        |   | 164,758                       |   |         |   |         |   |              |   | 171,061        |   |
| Acquisition                of eMoney Advisor, Inc. (860 shares)  | 860          |   | 28,140                        |   |         |   |         |   |              |   | 29,000         |   |
| Other                                                            |         |   | 3,243                         |   | (1           | )      | (3,762       | )      |              |   | (520           | )      |
| **Balances                at June 30, 2006**                     | **$186,662** |   | **$1,646,984**                |   | **$863,229** |   | **$(16,472** | **)**  | **$(154,043**     | **)**  | **$2,526,360** |   |

----

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

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

| **B.  ** | **Stock-Based                Compensation** |
|--------------------|---------------------------------------------|

----

|                                          |   |                              |       |                                                 |   |                                                                           |   |
|-----------------------------------------------|--------|-----------------------------------|------------|------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                               |   | Shares                UnderOption |       |  Weighted                Average Exercise Price |   | Weighted                Average Remaining Contractual                Life |   |
| Outstanding                at January 1, 2006 |   |                              | 26,894,076 |                                                 | $      | 19.88                                                                          |   |   |   |   |
| Options                granted                |   |                              | 4,050,577  |                                                 |   | 36.41                                                                          |   |   |   |   |
| Options                exercised              |   |                              | 2,950,939  |                                                 |   | 19.12                                                                          |   |   |   |   |
| Options                canceled               |   |                              | 85,436     |                                                 |   | 33.60                                                                          |   |   |   |   |
| Outstanding                at June 30, 2006   |   |                              | 27,908,278 |                                                 | $      | 22.26                                                                          |   |   | 6.1 |   |
| Exercisable                at June 30, 2006   |   |                              | 23,968,656 |                                                 | $      | 19.95                                                                          |   |   | 5.5 |   |

----

|                                                          |   |                             |   |                             |   |
|---------------------------------------------------------------|--------|----------------------------------|--------|----------------------------------|--------|
|                                                          |   | **Three                Months**  |   | **Six                Months**    |   |
|                                                          |   | **Ended**                        |   | **Ended**                        |   |
|                                                          |   | **June                30, 2005** |   | **June                30, 2005** |   |
| Reported                net income                            |   | $                                | 79,409 |                             | $      | 156,546 |   |
| Less:                Stock option compensation expense        |   |                             |   |                             |   |   |   |
| determined                under fair value method, net of tax |   |                             | (4,031 | )                                |   | (8,062 | ) |
| Pro                forma net income, basic                    |   | $                                | 75,378 |                             | $      | 148,484 |   |
| Add:                Interest expense on Convertible Trust     |   |                             |   |                             |   |   |   |
| Capital                Securities, net of tax                 |   |                             | 1,963  |                             |   | 3,926 |   |
| Pro                forma net income, diluted                  |   | $                                | 77,341 |                             | $      | 152,410 |   |
|                                                          |   |                             |   |                             |   |   |   |
| Reported                net income per share:                 |   |                             |   |                             |   |   |   |
| Basic                                                         |   | $                                | 0.49   |                             | $      | 0.97 |   |
| Diluted                                                       |   | $                                | 0.46   |                             | $      | 0.91 |   |
|                                                          |   |                             |   |                             |   |   |   |
| Pro                forma net income per share:                |   |                             |   |                             |   |   |   |
| Basic                                                         |   | $                                | 0.46   |                             | $      | 0.92 |   |
| Diluted                                                       |   | $                                | 0.44   |                             | $      | 0.86 |   |
|                                                          |   |                             |   |                             |   |   |   |

**C.**
**Commitments**

**D.**
**Comprehensive      Income**

----

**E.**
**Segment      Information**

|                                               |                                                                  |      |                                                                  |        |
|----------------------------------------------------|-----------------------------------------------------------------------|-----------|-----------------------------------------------------------------------|-------------|
|                                               | **Three                Months Ended****June                30, 2006** |      | **Three                Months Ended****June                30, 2005** |        |
|                                               | **Community**                                                         |      |                                                                  | **Parent/** |   |   |   |   | **Community** |   |   | **Parent/** |   |   |   |   |
|                                               |                                                                  | **Banks** |                                                                  |        | **Other** |   |   | **Total** |   |   | **Banks** |   |   | **Other** |   |   | **Total** |   |
| Net                interest income                 | $                                                                     | 317,861   |                                                                  | $           | 1,076 |   | $ | 318,937 |   | $ | 289,859 |   | $ | (1,392 | ) | $ | 288,467 |   |
| Provision                for credit losses         |                                                                  | 7,500     |                                                                  |        |   |   |   | 7,500 |   |   | 4,500 |   |   |   |   |   | 4,500 |   |
| Net                interest income after provision |                                                                  | 310,361   |                                                                  |        | 1,076 |   |   | 311,437 |   |   | 285,359 |   |   | (1,392 | ) |   | 283,967 |   |
| Noninterest                income                  |                                                                  | 112,306   |                                                                  |        | 30,650 |   |   | 142,956 |   |   | 89,923 |   |   | 25,720 |   |   | 115,643 |   |
| Noninterest                expense                 |                                                                  | 305,867   |                                                                  |        | 27,917 |   |   | 333,784 |   |   | 257,899 |   |   | 20,600 |   |   | 278,499 |   |
| Income                before income taxes          |                                                                  | 116,800   |                                                                  |        | 3,809 |   |   | 120,609 |   |   | 117,383 |   |   | 3,728 |   |   | 121,111 |   |
| Income                tax expense                  |                                                                  | 39,691    |                                                                  |        | 1,398 |   |   | 41,089 |   |   | 40,537 |   |   | 1,165 |   |   | 41,702 |   |
| Net                income                          | $                                                                     | 77,109    |                                                                  | $           | 2,411 |   | $ | 79,520 |   | $ | 76,846 |   | $ | 2,563 |   | $ | 79,409 |   |
|                                               |                                                                  |      |                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                assets (in millions)        | $                                                                     | 39,080    |                                                                  | $           | 2,809 |   | $ | 41,889 |   | $ | 30,225 |   | $ | 2,538 |   | $ | 32,763 |   |

|                                               |                                                                |      |                                                                |        |
|----------------------------------------------------|---------------------------------------------------------------------|-----------|---------------------------------------------------------------------|-------------|
|                                               | **Six                Months Ended****June                30, 2006** |      | **Six                Months Ended****June                30, 2005** |        |
|                                               | **Community**                                                       |      |                                                                | **Parent/** |   |   |   |   | **Community** |   |   | **Parent/** |   |   |   |   |
|                                               |                                                                | **Banks** |                                                                |        | **Other** |   |   | **Total** |   |   | **Banks** |   |   | **Other** |   |   | **Total** |   |
| Net                interest income                 | $                                                                   | 624,918   |                                                                | $           | 1,949 |   | $ | 626,867 |   | $ | 570,814 |   | $ | (3,446 | ) | $ | 567,368 |   |
| Provision                for credit losses         |                                                                | 14,001    |                                                                |        |   |   |   | 14,001 |   |   | 10,750 |   |   |   |   |   | 10,750 |   |
| Net                interest income after provision |                                                                | 610,917   |                                                                |        | 1,949 |   |   | 612,866 |   |   | 560,064 |   |   | (3,446 | ) |   | 556,618 |   |
| Noninterest                income                  |                                                                | 212,590   |                                                                |        | 61,368 |   |   | 273,958 |   |   | 165,219 |   |   | 54,113 |   |   | 219,332 |   |
| Noninterest                expense                 |                                                                | 595,751   |                                                                |        | 53,367 |   |   | 649,118 |   |   | 494,668 |   |   | 42,237 |   |   | 536,905 |   |
| Income                before income taxes          |                                                                | 227,756   |                                                                |        | 9,950 |   |   | 237,706 |   |   | 230,615 |   |   | 8,430 |   |   | 239,045 |   |
| Income                tax expense                  |                                                                | 77,190    |                                                                |        | 3,699 |   |   | 80,889 |   |   | 79,629 |   |   | 2,870 |   |   | 82,499 |   |
| Net                income                          | $                                                                   | 150,566   |                                                                | $           | 6,251 |   | $ | 156,817 |   | $ | 150,986 |   | $ | 5,560 |   | $ | 156,546 |   |
|                                               |                                                                |      |                                                                |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                assets (in millions)        | $                                                                   | 37,846    |                                                                | $           | 2,750 |   | $ | 40,596 |   | $ | 29,475 |   | $ | 2,460 |   | $ | 31,935 |   |

----

| **F.  ** | **Net                Income Per Share** |
|--------------------|-----------------------------------------|

|                                                                         |                                                             |     |                                                           |   |
|------------------------------------------------------------------------------|------------------------------------------------------------------|----------|----------------------------------------------------------------|--------|
|                                                                         | **Three                Months Ended****June                30,** |     | **Six                Months Ended****June                30,** |   |
|                                                                         |                                                             | **2006** |                                                           |   | **2005** |   |   | **2006** |   |   | **2005** |   |
|                                                                         |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
| **Basic:**                                                                   |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
| Net                income available to common shareholders - basic           | $                                                                | 79,520   |                                                           | $      | 79,409 |   | $ | 156,817 |   | $ | 156,546 |   |
| Average                common shares outstanding - basic                     |                                                             | 184,437  |                                                           |   | 162,287 |   |   | 182,686 |   |   | 161,547 |   |
| Net                income per common share - basic                           | $                                                                | 0.43     |                                                           | $      | 0.49 |   | $ | 0.86 |   | $ | 0.97 |   |
|                                                                         |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
| **Diluted:**                                                                 |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
| Net                income                                                    | $                                                                | 79,520   |                                                           | $      | 79,409 |   | $ | 156,817 |   | $ | 156,546 |   |
| Add                interest expense on Convertible Trust Capital Securities, |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
| net                of tax                                                    |                                                             |     |                                                           |   | 1,963 |   |   |   |   |   | 3,926 |   |
| Net                income available to common shareholders - diluted         | $                                                                | 79,520   |                                                           | $      | 81,372 |   | $ | 156,817 |   | $ | 160,472 |   |
|                                                                         |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
|                                                                         |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
| Average                common shares outstanding                             |                                                             | 184,437  |                                                           |   | 162,287 |   |   | 182,686 |   |   | 161,547 |   |
| Additional                shares considered in diluted computation assuming: |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
| Exercise                of stock options                                     |                                                             | 9,405    |                                                           |   | 7,333 |   |   | 9,228 |   |   | 7,595 |   |
| Conversion                of Convertible Trust Capital Securities            |                                                             |     |                                                           |   | 7,582 |   |   |   |   |   | 7,582 |   |
| Average                common shares outstanding - diluted                   |                                                             | 193,842  |                                                           |   | 177,202 |   |   | 191,914 |   |   | 176,724 |   |
|                                                                         |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |
| Net                income per common share - diluted                         | $                                                                | 0.41     |                                                           | $      | 0.46 |   | $ | 0.82 |   | $ | 0.91 |   |
|                                                                         |                                                             |     |                                                           |   |   |   |   |   |   |   |   |   |

| **G.  ** | **New                Accounting Pronouncement** |
|--------------------|-------------------------------------------------|

----

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

**Executive      Summary**

**Critical      Accounting Policy**

**Capital      Resources**

|                                      |   |   |      | Per                Regulatory Guidelines |   |
|-------------------------------------------|--------|--------|-----------|------------------------------------------|--------|
|                                      |   | Actual |      | Minimum                                  |   | “Well                Capitalized” |   |
|                                      |   | Amount |      | Ratio                                    |   | Amount |   | Ratio |   | Amount |   | Ratio |   |
|                                      |   |   |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **June                30, 2006:**         |   |   |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                                   |   |   |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk                based capital ratios: |   |   |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1                     |   | $      | 2,531,557 |                                     |   | 11.81 | % | $ | 857,391 |   |   | 4.00 | % | $ | 1,286,086 |   |   | 6.00 | % |
| Total                capital              |   |   | 2,685,877 |                                     |   | 12.53 |   |   | 1,714,781 |   |   | 8.00 |   |   | 2,143,477 |   |   | 10.00 |   |
| Leverage                ratio             |   |   | 2,531,557 |                                     |   | 6.03 |   |   | 1,678,616 |   |   | 4.00 |   |   | 2,098,270 |   |   | 5.00 |   |
| Commerce                N.A.              |   |   |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk                based capital ratios: |   |   |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1                     |   | $      | 2,287,048 |                                     |   | 11.62 | % | $ | 787,446 |   |   | 4.00 | % | $ | 1,181,169 |   |   | 6.00 | % |
| Total                capital              |   |   | 2,417,485 |                                     |   | 12.28 |   |   | 1,574,892 |   |   | 8.00 |   |   | 1,968,616 |   |   | 10.00 |   |
| Leverage                ratio             |   |   | 2,287,048 |                                     |   | 6.00 |   |   | 1,524,734 |   |   | 4.00 |   |   | 1,905,918 |   |   | 5.00 |   |
|                                      |   |   |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                      |   |   |      |    |   | Per                Regulatory Guidelines      |   |
|-------------------------------------------|--------|--------|-----------|---------|--------|-----------------------------------------------|--------|
|                                      |   | Actual |      | Minimum |   | “Well                Capitalized” |   |
|                                      |   | Amount |      | Ratio   |   | Amount                                        |   | Ratio |   | Amount |   | Ratio |   |
|                                      |   |   |      |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **June                30, 2005:**         |   |   |      |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                                   |   |   |      |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk                based capital ratios: |   |   |      |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1                     |   | $      | 2,032,129 |    |   | 12.39                                         | %      | $ | 656,250 |   |   | 4.00 | % | $ | 984,375 |   |   | 6.00 | % |
| Total                capital              |   |   | 2,179,616 |    |   | 13.29                                         |   |   | 1,312,500 |   |   | 8.00 |   |   | 1,640,626 |   |   | 10.00 |   |
| Leverage                ratio             |   |   | 2,032,129 |    |   | 6.20                                          |   |   | 1,310,297 |   |   | 4.00 |   |   | 1,637,871 |   |   | 5.00 |   |
| Commerce                N.A.              |   |   |      |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk                based capital ratios: |   |   |      |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1                     |   | $      | 1,780,808 |    |   | 11.95                                         | %      | $ | 595,863 |   |   | 4.00 | % | $ | 893,794 |   |   | 6.00 | % |
| Total                capital              |   |   | 1,908,240 |    |   | 12.81                                         |   |   | 1,191,725 |   |   | 8.00 |   |   | 1,489,656 |   |   | 10.00 |   |
| Leverage                ratio             |   |   | 1,780,808 |    |   | 6.05                                          |   |   | 1,177,297 |   |   | 4.00 |   |   | 1,471,622 |   |   | 5.00 |   |

**Deposits**

|       |   |                                |       |                             |   |                                |   |                             |       |                                  |   |
|------------|--------|-------------------------------------|------------|----------------------------------|--------|-------------------------------------|--------|----------------------------------|------------|---------------------------------------|--------|
|       |   | **June                30,****2006** |       | **%                of****Total** |   | **June                30,****2005** |   | **%                of****Total** |       | **Annual****Growth                %** |   |
|       |   |                                |       |                             |   |                                |   |                             |       |                                  |   |   |   |   |   |   |
| Consumer   |   | $                                   | 15,765,786 |                             |   | 43                                  | %      | $                                | 13,249,720 |                                  |   | 45 | % |   | 19 | % |
|       |   |                                |       |                             |   |                                |   |                             |       |                                  |   |   |   |   |   |   |
| Commercial |   |                                | 14,637,257 |                             |   | 40                                  |   |                             | 11,179,385 |                                  |   | 38 |   |   | 31 |   |
|       |   |                                |       |                             |   |                                |   |                             |       |                                  |   |   |   |   |   |   |
| Government |   |                                | 6,380,831  |                             |   | 17                                  |   |                             | 5,195,726  |                                  |   | 17 |   |   | 23 |   |
|       |   |                                |       |                             |   |                                |   |                             |       |                                  |   |   |   |   |   |   |
| Total      |   | $                                   | 36,783,874 |                             |   | 100                                 | %      | $                                | 29,624,831 |                                  |   | 100 | % |   | 24 | % |
|       |   |                                |       |                             |   |                                |   |                             |       |                                  |   |   |   |   |   |   |

**Interest      Rate Sensitivity and Liquidity**

----

|                              |   |                                  |   |                         |   |
|-----------------------------------|--------|---------------------------------------|--------|------------------------------|--------|
|                              |   | **Basis                Point Change** |   |
|                              |   | **Plus                200**           |   | **Minus                100** |   |
| June                30, 2006:     |   |                                  |   |                         |   |
| Twelve                Months      |   | (9.8                                  | )%     | 3.3                          | %      |
| Twenty                Four Months |   | (5.4                                  | )%     | 1.1                          | %      |
|                              |   |                                  |   |                         |   |
| June                30, 2005:     |   |                                  |   |                         |   |
| Twelve                Months      |   | 0.6                                   | %      | (7.4                         | )%     |
| Twenty                Four Months |   | 12.6                                  | %      | (7.6                         | )%     |
|                              |   |                                  |   |                         |   |

----

|                                  |   |                            |   |                         |   |
|---------------------------------------|--------|---------------------------------|--------|------------------------------|--------|
|                                  |   | **Market                Value** |   |                         |   |
|                                  |   | **of                Equity**    |   | **Per                Share** |   |
|                                  |   |                            |   |                         |   |
| Plus                200 basis points  |   | $                               | 8,263  |                         | $      | 44.27 |   |
|                                  |   |                            |   |                         |   |   |   |
| Current                Rate           |   | $                               | 9,134  |                         | $      | 48.93 |   |
|                                  |   |                            |   |                         |   |   |   |
| Minus                100 basis points |   | $                               | 8,777  |                         | $      | 47.02 |   |

**Short-Term      Borrowings**

**Interest      Earning Assets**

----

**Loans**

|                                              |   | **June                30,**   |       |  **December                31,** |   |
|---------------------------------------------------|--------|-------------------------------|------------|---------------------------------------|--------|
|                                              |   | **2006**                      |       |  **2005**                        |   |
|                                              |   | (in                thousands) |       |
| Commercial:                                       |   |                          |       |                             |   |
| Term                                              |   | $                             | 2,028,761  |                                  | $      | 1,781,148 |   |
| Line                of credit                     |   |                          | 1,702,539  |                                  |   | 1,517,347 |   |
|                                              |   |                          | 3,731,300  |                                  |   | 3,298,495 |   |
|                                              |   |                          |       |                                  |   |   |   |
| Owner-occupied                                    |   |                          | 2,613,555  |                                  |   | 2,402,300 |   |
|                                              |   |                          | 6,344,855  |                                  |   | 5,700,795 |   |
|                                              |   |                          |       |                                  |   |   |   |
| Consumer:                                         |   |                          |       |                                  |   |   |   |
| Mortgages                (1-4 family residential) |   |                          | 2,198,114  |                                  |   | 2,000,309 |   |
| Installment                                       |   |                          | 265,639    |                                  |   | 211,332 |   |
| Home                equity                        |   |                          | 2,714,150  |                                  |   | 2,353,581 |   |
| Credit                lines                       |   |                          | 100,544    |                                  |   | 100,431 |   |
|                                              |   |                          | 5,278,447  |                                  |   | 4,665,653 |   |
| Commercial                real estate:            |   |                          |       |                                  |   |   |   |
| Investor                developer                 |   |                          | 2,329,475  |                                  |   | 2,001,674 |   |
| Construction                                      |   |                          | 320,749    |                                  |   | 290,530 |   |
|                                              |   |                          | 2,650,224  |                                  |   | 2,292,204 |   |
| Total                loans                        |   | $                             | 14,273,526 |                                  | $      | 12,658,652 |   |

**Investments**

----

|                                          |   |                          |       |                       |   |       |   |
|-----------------------------------------------|--------|-------------------------------|------------|----------------------------|--------|------------|--------|
|                                          |   | **Available**                 |       | **Held                to** |   |       |   |
| **Product                Description**        |   | **For                Sale**   |       | **Maturity**               |   | **Total**  |   |
|                                          |   | (in                thousands) |       |
| Mortgage-backed                Securities:    |   |                          |       |                       |   |       |   |   |   |   |
| Federal                Agencies Pass Through  |   |                          |       |                       |   |       |   |   |   |   |
| Certificates                (AAA Rated)       |   | $                             | 1,803,892  |                       | $      | 2,172,732  |   | $ | 3,976,624 |   |
|                                          |   |                          |       |                       |   |       |   |   |   |   |
| Collateralized                Mortgage        |   |                          |       |                       |   |       |   |   |   |   |
| Obligations                (AAA Rated)        |   |                          | 8,467,838  |                       |   | 10,420,970 |   |   | 18,888,808 |   |
|                                          |   |                          |       |                       |   |       |   |   |   |   |
| U.S.                Government agencies/Other |   |                          | 802,398    |                       |   | 1,822,219  |   |   | 2,624,617 |   |
|                                          |   |                          |       |                       |   |       |   |   |   |   |
| Total                                         |   | $                             | 11,074,128 |                       | $      | 14,415,921 |   | $ | 25,490,049 |   |
|                                          |   |                          |       |                       |   |       |   |   |   |   |
| Duration                (in years)            |   |                          | 3.87       |                       |   | 4.38       |   |   | 4.16 |   |
| Average                Life (in years)        |   |                          | 6.58       |                       |   | 6.51       |   |   | 6.54 |   |
| Quarterly                Average Yield        |   |                          | 5.60       | %                          |   | 5.19       | %      |   | 5.37 | % |

|                                                                  |   |                                |       |
|-----------------------------------------------------------------------|--------|-------------------------------------|------------|
|                                                                  |   | **At                June 30, 2006** |       |
|                                                                  |   |  **Amortized****Cost**         |       | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   |  **Market****Value** |   |
| U.S.                Government agency and mortgage-backed obligations |   | $                                   | 11,240,485 |   | $ | 6,704 |   | $ | (264,711 | ) | $ | 10,982,478 |   |
| Obligations                of state and political subdivisions        |   |                                | 56,967     |   |   | 7 |   |   | (2,388 | ) |   | 54,586 |   |
| Equity                securities                                      |   |                                | 9,679      |   |   | 13,193 |   |   |   |   |   | 22,872 |   |
| Other                                                                 |   |                                | 14,312     |   |   |   |   |   | (120 | ) |   | 14,192 |   |
| Securities                available for sale                          |   | $                                   | 11,321,443 |   | $ | 19,904 |   | $ | (267,219 | ) | $ | 11,074,128 |   |
|                                                                  |   |                                |       |   |   |   |   |   |   |   |   |   |   |
| U.S.                Government agency and mortgage-backed obligations |   | $                                   | 13,876,344 |   | $ | 3,996 |   | $ | (512,957 | ) | $ | 13,367,383 |   |
| Obligations                of state and political subdivisions        |   |                                | 410,695    |   |   | 261 |   |   | (2,683 | ) |   | 408,273 |   |
| Other                                                                 |   |                                | 128,882    |   |   |   |   |   |   |   |   | 128,882 |   |
| Securities                held to maturity                            |   | $                                   | 14,415,921 |   | $ | 4,257 |   | $ | (515,640 | ) | $ | 13,904,538 |   |

----

|                                                                  |   | **At                December 31, 2005** |       |
|-----------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                  |   |  **Amortized****Cost**             |       | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   |  **Market****Value** |   |
| U.S.                Government agency and mortgage-backed obligations |   | $                                       | 9,529,645  |   | $ | 5,779 |   | $ | (112,946 | ) | $ | 9,422,478 |   |
| Obligations                of state and political subdivisions        |   |                                    | 59,517     |   |   | 41 |   |   | (431 | ) |   | 59,127 |   |
| Equity                securities                                      |   |                                    | 9,679      |   |   | 13,093 |   |   |   |   |   | 22,772 |   |
| Other                                                                 |   |                                    | 14,330     |   |   | 116 |   |   | (2 | ) |   | 14,444 |   |
| Securities                available for sale                          |   | $                                       | 9,613,171  |   | $ | 19,029 |   | $ | (113,379 | ) | $ | 9,518,821 |   |
|                                                                  |   |                                    |       |   |   |   |   |   |   |   |   |   |   |
| U.S.                Government agency and mortgage-backed obligations |   | $                                       | 12,415,587 |   | $ | 5,191 |   | $ | (252,231 | ) | $ | 12,168,547 |   |
| Obligations                of state and political subdivisions        |   |                                    | 490,257    |   |   | 1,216 |   |   | (988 | ) |   | 490,485 |   |
| Other                                                                 |   |                                    | 99,520     |   |   |   |   |   |   |   |   | 99,520 |   |
| Securities                held to maturity                            |   | $                                       | 13,005,364 |   | $ | 6,407 |   | $ | (253,219 | ) | $ | 12,758,552 |   |

**Net      Income**

----

**Net      Interest Income**

|                                        |   | **Net                Interest Income** |    |
|---------------------------------------------|--------|----------------------------------------|---------|
|                                        |   | **Volume**                             |    | **Rate** |   | **Total** |   | **%** |   |
| **2006                vs. 2005**            |   | **Increase**                           |    | **Change** |   | **Increase** |   | **Increase** |   |
|                                        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |
| **Quarter                Ended June 30**    |   | $                                      | 69,010  |   | $ | (37,095 | ) | $ | 31,915 |   |   | 11% |   |
|                                        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |
| **Six                Months Ended June 30** |   | $                                      | 137,932 |   | $ | (75,245 | ) | $ | 62,687 |   |   | 11% |   |
|                                        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |

----

**Average      Balances and Net Interest Income**

|                                                 |   |                     |       |                      |   |                     |   |
|------------------------------------------------------|--------|--------------------------|------------|---------------------------|--------|--------------------------|--------|
|                                                 |   | June                2006 |       | March                2006 |   | June                2005 |   |
|                                                 |   | Average                  |       |                      |   | Average                  |   | Average |   |   |   | Average |   | Average |   |   |   | Average |   |
| *(dollars                in thousands)*              |   | Balance                  |       | Interest                  |   | Rate                     |   | Balance |   | Interest |   | Rate |   | Balance |   | Interest |   | Rate |   |
| **Earning                Assets**                    |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities                 |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                              |   | $                        | 23,851,645 |                      | $      | 319,271                  |   |   | 5.37 | % | $ | 22,325,450 |   | $ | 289,739 |   |   | 5.26 | % | $ | 18,821,647 |   | $ | 231,275 |   |   | 4.93 | % |
| Tax-exempt                                           |   |                     | 559,733    |                      |   | 7,322                    |   |   | 5.25 |   |   | 549,794 |   |   | 6,956 |   |   | 5.13 |   |   | 374,448 |   |   | 3,257 |   |   | 3.49 |   |
| Trading                                              |   |                     | 113,049    |                      |   | 1,525                    |   |   | 5.41 |   |   | 108,670 |   |   | 1,255 |   |   | 4.69 |   |   | 178,037 |   |   | 2,427 |   |   | 5.47 |   |
| Total                investment securities           |   |                     | 24,524,427 |                      |   | 328,118                  |   |   | 5.37 |   |   | 22,983,914 |   |   | 297,950 |   |   | 5.26 |   |   | 19,374,132 |   |   | 236,959 |   |   | 4.91 |   |
| Federal                funds sold                    |   |                     | 19,898     |                      |   | 250                      |   |   | 5.04 |   |   | 36,594 |   |   | 413 |   |   | 4.58 |   |   | 117,491 |   |   | 889 |   |   | 3.03 |   |
| Loans                                                |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                mortgages                  |   |                     | 4,784,584  |                      |   | 83,903                   |   |   | 7.03 |   |   | 4,491,557 |   |   | 76,193 |   |   | 6.88 |   |   | 3,707,963 |   |   | 59,684 |   |   | 6.46 |   |
| Commercial                                           |   |                     | 3,492,946  |                      |   | 66,879                   |   |   | 7.68 |   |   | 3,221,996 |   |   | 59,125 |   |   | 7.44 |   |   | 2,569,001 |   |   | 41,417 |   |   | 6.47 |   |
| Consumer                                             |   |                     | 5,115,609  |                      |   | 80,560                   |   |   | 6.32 |   |   | 4,817,562 |   |   | 74,127 |   |   | 6.24 |   |   | 3,720,529 |   |   | 55,819 |   |   | 6.02 |   |
| Tax-exempt                                           |   |                     | 498,492    |                      |   | 8,535                    |   |   | 6.87 |   |   | 492,283 |   |   | 8,506 |   |   | 7.01 |   |   | 426,032 |   |   | 7,568 |   |   | 7.12 |   |
| Total                loans                           |   |                     | 13,891,631 |                      |   | 239,877                  |   |   | 6.93 |   |   | 13,023,398 |   |   | 217,951 |   |   | 6.79 |   |   | 10,423,525 |   |   | 164,488 |   |   | 6.33 |   |
| Total                earning assets                  |   | $                        | 38,435,956 |                      | $      | 568,245                  |   |   | 5.93 | % | $ | 36,043,906 |   | $ | 516,314 |   |   | 5.81 | % | $ | 29,915,148 |   | $ | 402,336 |   |   | 5.39 | % |
| **Sources                of Funds**                  |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities          |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                                              |   | $                        | 10,344,463 |                      | $      | 64,157                   |   |   | 2.49 | % | $ | 9,712,691 |   | $ | 54,004 |   |   | 2.25 | % | $ | 7,082,969 |   | $ | 23,258 |   |   | 1.32 | % |
| Interest                bearing demand               |   |                     | 14,597,277 |                      |   | 118,085                  |   |   | 3.24 |   |   | 13,584,371 |   |   | 97,940 |   |   | 2.92 |   |   | 12,094,680 |   |   | 53,755 |   |   | 1.78 |   |
| Time                deposits                         |   |                     | 3,088,653  |                      |   | 25,949                   |   |   | 3.37 |   |   | 3,131,039 |   |   | 25,850 |   |   | 3.35 |   |   | 2,668,791 |   |   | 16,085 |   |   | 2.42 |   |
| Public                funds                          |   |                     | 1,224,298  |                      |   | 15,225                   |   |   | 4.99 |   |   | 952,132 |   |   | 10,411 |   |   | 4.43 |   |   | 828,305 |   |   | 6,196 |   |   | 3.00 |   |
| Total                deposits                        |   |                     | 29,254,691 |                      |   | 223,416                  |   |   | 3.06 |   |   | 27,380,233 |   |   | 188,205 |   |   | 2.79 |   |   | 22,674,745 |   |   | 99,294 |   |   | 1.76 |   |
|                                                 |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                borrowed money                  |   |                     | 1,624,229  |                      |   | 19,809                   |   |   | 4.89 |   |   | 1,316,437 |   |   | 14,328 |   |   | 4.41 |   |   | 845,462 |   |   | 6,917 |   |   | 3.28 |   |
| Long-term                debt                        |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 200,000 |   |   | 3,020 |   |   | 6.06 |   |
| Total                deposits and interest-bearing   |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities                                          |   |                     | 30,878,920 |                      |   | 243,225                  |   |   | 3.16 |   |   | 28,696,670 |   |   | 202,533 |   |   | 2.86 |   |   | 23,720,207 |   |   | 109,231 |   |   | 1.85 |   |
| Noninterest-bearing                funds (net)       |   |                     | 7,557,036  |                      |   |                     |   |   |   |   |   | 7,347,236 |   |   |   |   |   |   |   |   | 6,194,941 |   |   |   |   |   |   |   |
| Total                sources to fund earning assets  |   | $                        | 38,435,956 |                      |   | 243,225                  |   |   | 2.54 |   | $ | 36,043,906 |   |   | 202,533 |   |   | 2.28 |   | $ | 29,915,148 |   |   | 109,231 |   |   | 1.46 |   |
|                                                 |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income and               |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| margin                tax-equivalent basis           |   |                     |       |                      | $      | 325,020                  |   |   | 3.39 | % |   |   |   | $ | 313,781 |   |   | 3.53 | % |   |   |   | $ | 293,105 |   |   | 3.93 | % |
| **Other                Balances**                    |   |                     |       |                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and due from banks               |   | $                        | 1,278,137  |                      |   |                     |   |   |   |   | $ | 1,286,259 |   |   |   |   |   |   |   | $ | 1,241,372 |   |   |   |   |   |   |   |
| Other                assets                          |   |                     | 2,314,307  |                      |   |                     |   |   |   |   |   | 2,094,400 |   |   |   |   |   |   |   |   | 1,749,133 |   |   |   |   |   |   |   |
| Total                assets                          |   |                     | 41,888,789 |                      |   |                     |   |   |   |   |   | 39,288,182 |   |   |   |   |   |   |   |   | 32,763,128 |   |   |   |   |   |   |   |
| Total                deposits                        |   |                     | 37,486,585 |                      |   |                     |   |   |   |   |   | 35,295,835 |   |   |   |   |   |   |   |   | 29,661,511 |   |   |   |   |   |   |   |
| Demand                deposits (noninterest-bearing) |   |                     | 8,231,894  |                      |   |                     |   |   |   |   |   | 7,915,602 |   |   |   |   |   |   |   |   | 6,986,766 |   |   |   |   |   |   |   |
| Other                liabilities                     |   |                     | 299,622    |                      |   |                     |   |   |   |   |   | 298,278 |   |   |   |   |   |   |   |   | 259,873 |   |   |   |   |   |   |   |
| Stockholders’                equity            |   |                     | 2,478,353  |                      |   |                     |   |   |   |   |   | 2,377,632 |   |   |   |   |   |   |   |   | 1,796,282 |   |   |   |   |   |   |   |

| 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****June                30,** |   | **Six                Months Ended****June                30,** |   |
|                                   |   | **2006**                                                         |   | **2005**                                                       |   | **2006** |   | **2005** |   |
| Other                operating income: |   |                                                             |   |                                                           |   |     |   |   |   |
| Insurance                              |   | $                                                                | 20,573 |                                                           | $      | 18,750   |   | $ | 42,517 |   | $ | 38,539 |   |
| Capital                Markets         |   |                                                             | 7,263  |                                                           |   | 7,248    |   |   | 13,498 |   |   | 13,687 |   |
| Loan                Brokerage Fees     |   |                                                             | 2,183  |                                                           |   | 2,949    |   |   | 4,119 |   |   | 5,708 |   |
| Other                                  |   |                                                             | 21,284 |                                                           |   | 13,205   |   |   | 39,890 |   |   | 26,835 |   |
| Total                other             |   | $                                                                | 51,303 |                                                           | $      | 42,152   |   | $ | 100,024 |   | $ | 84,769 |   |

**Noninterest      Expense**

|                                                   |   |                                                             |   |                                                           |   |     |   |
|--------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|----------|--------|
|                                                   |   | **Three                Months Ended****June                30,** |   | **Six                Months Ended****June                30,** |   |
|                                                   |   | **2006**                                                         |   | **2005**                                                       |   | **2006** |   | **2005** |   |
| Other                noninterest expense:              |   |                                                             |   |                                                           |   |     |   |   |   |
| Business                development costs              |   | $                                                                | 13,459 |                                                           | $      | 13,655   |   | $ | 22,269 |   | $ | 20,770 |   |
| Bank-card                related service charges       |   |                                                             | 14,162 |                                                           |   | 12,309   |   |   | 26,533 |   |   | 23,224 |   |
| Professional                services/Insurance         |   |                                                             | 10,732 |                                                           |   | 9,074    |   |   | 21,402 |   |   | 18,860 |   |
| Provision                for non-credit-related losses |   |                                                             | 6,897  |                                                           |   | 6,643    |   |   | 14,708 |   |   | 14,315 |   |
| Other                                                  |   |                                                             | 26,664 |                                                           |   | 20,228   |   |   | 52,027 |   |   | 38,448 |   |
| Total                other                             |   | $                                                                | 71,914 |                                                           | $      | 61,909   |   | $ | 136,939 |   | $ | 115,617 |   |

----

**Loan      and Asset Quality**

----

|                                                        |   | **June                30,****2006** |   | **March                31,****2006** |   | **December                31,****2005** |   | **September                30,****2005** |   | **June                30,****2005** |   |
|-------------------------------------------------------------|--------|-------------------------------------|--------|--------------------------------------|--------|-----------------------------------------|--------|------------------------------------------|--------|-------------------------------------|--------|
| Non-accrual                loans:                           |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Commercial                                                  |   | $                                   | 34,904 |                                 | $      | 16,975                                  |   | $                                        | 16,712 |                                | $      | 16,926 |   | $ | 20,467 |   |
| Consumer                                                    |   |                                | 8,927  |                                 |   | 9,285                                   |   |                                     | 8,834  |                                |   | 8,559 |   |   | 8,641 |   |
| Real                estate:                                 |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Construction                                                |   |                                | 1,708  |                                 |   | 1,726                                   |   |                                     | 1,763  |                                |   | 1,882 |   |   | 178 |   |
| Mortgage                                                    |   |                                | 2,523  |                                 |   | 2,096                                   |   |                                     | 4,329  |                                |   | 3,353 |   |   | 3,086 |   |
| Total                non-accrual loans                      |   |                                | 48,062 |                                 |   | 30,082                                  |   |                                     | 31,638 |                                |   | 30,720 |   |   | 32,372 |   |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Restructured                loans:                          |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Commercial                                                  |   |                                | 2,941  |                                 |   | 3,037                                   |   |                                     | 3,133  |                                |   | 3,230 |   |   | 3,326 |   |
| Total                restructured loans                     |   |                                | 2,941  |                                 |   | 3,037                                   |   |                                     | 3,133  |                                |   | 3,230 |   |   | 3,326 |   |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Total                non-performing loans                   |   |                                | 51,003 |                                 |   | 33,119                                  |   |                                     | 34,771 |                                |   | 33,950 |   |   | 35,698 |   |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Other                real estate/foreclosed assets          |   |                                | 1,369  |                                 |   | 435                                     |   |                                     | 279    |                                |   | 310 |   |   | 349 |   |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Total                non-performing assets                  |   |                                | 52,372 |                                 |   | 33,554                                  |   |                                     | 35,050 |                                |   | 34,260 |   |   | 36,047 |   |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Loans                past due 90 days or more               |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| and                still accruing                           |   |                                | 583    |                                 |   | 332                                     |   |                                     | 248    |                                |   | 177 |   |   | 165 |   |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Total                non-performing assets and              |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| loans                past due 90 days or more               |   | $                                   | 52,955 |                                 | $      | 33,886                                  |   | $                                        | 35,298 |                                | $      | 34,437 |   | $ | 36,212 |   |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Total                non-performing loans as a              |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| percentage                of total period-end loans         |   |                                | 0.36   | %                                    |   | 0.25                                    | %      |                                     | 0.27   | %                                   |   | 0.30 | % |   | 0.33 | % |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Total                non-performing assets as a             |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| percentage                of total period-end assets        |   |                                | 0.12   | %                                    |   | 0.08                                    | %      |                                     | 0.09   | %                                   |   | 0.09 | % |   | 0.11 | % |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Total                non-performing assets and loans        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| past                due 90 days or more as a                |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| percentage                of total period-end assets        |   |                                | 0.12   | %                                    |   | 0.08                                    | %      |                                     | 0.09   | %                                   |   | 0.09 | % |   | 0.11 | % |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Allowance                for credit losses as a percentage  |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| of                total non-performing loans                |   |                                | 291    | %                                    |   | 432                                     | %      |                                     | 407    | %                                   |   | 409 | % |   | 396 | % |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Allowance                for credit losses as a percentage  |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| of                total period-end loans                    |   |                                | 1.04   | %                                    |   | 1.06                                    | %      |                                     | 1.12   | %                                   |   | 1.23 | % |   | 1.32 | % |
|                                                        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| Total                non-performing assets and loans        |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| past                due 90 days or more as a                |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| percentage                of stockholders’ equity and |   |                                |   |                                 |   |                                    |   |                                     |   |                                |   |   |   |   |   |   |
| allowance                for loan losses                    |   |                                | 2      | %                                    |   | 1                                       | %      |                                     | 1      | %                                   |   | 2 | % |   | 2 | % |

----

|                                                         |   | **Three                Months Ended** |    | **Six                Months Ended** |   | **Year                Ended**   |   |
|--------------------------------------------------------------|--------|---------------------------------------|---------|-------------------------------------|--------|---------------------------------|--------|
|                                                         |   | **June                30,**           |    | **June                30,**         |   | **December                31,** |   |
|                                                         |   | **2006**                              |    | **2005**                            |   | **2006**                        |   | **2005** |   | **2005** |   |
| Balance                at beginning of period                |   | $                                     | 142,913 |                                | $      | 139,289                         |   | $ | 141,464 |   | $ | 135,620 |   | $ | 135,620 |   |
| Provisions                charged to operating expenses      |   |                                  | 7,500   |                                |   | 4,500                           |   |   | 14,001 |   |   | 10,750 |   |   | 19,150 |   |
|                                                         |   |                                  | 150,413 |                                |   | 143,789                         |   |   | 155,465 |   |   | 146,370 |   |   | 154,770 |   |
|                                                         |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Recoveries                on loans previously charged-off:   |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                   |   |                                  | 2,095   |                                |   | 339                             |   |   | 2,628 |   |   | 990 |   |   | 2,546 |   |
| Consumer                                                     |   |                                  | 624     |                                |   | 254                             |   |   | 1,135 |   |   | 1,087 |   |   | 2,566 |   |
| Commercial                real estate                        |   |                                  | 317     |                                |   |                            |   |   | 318 |   |   | 50 |   |   | 80 |   |
| Total                recoveries                              |   |                                  | 3,036   |                                |   | 593                             |   |   | 4,081 |   |   | 2,127 |   |   | 5,192 |   |
|                                                         |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Loans                charged-off:                            |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                   |   |                                  | (3,028  | )                                   |   | (1,213                          | )      |   | (7,214 | ) |   | (3,815 | ) |   | (13,944 | ) |
| Consumer                                                     |   |                                  | (1,972  | )                                   |   | (915                            | )      |   | (3,684 | ) |   | (2,402 | ) |   | (5,912 | ) |
| Commercial                real estate                        |   |                                  | (66     | )                                   |   | (929                            | )      |   | (265 | ) |   | (955 | ) |   | (1,136 | ) |
| Total                charge-offs                             |   |                                  | (5,066  | )                                   |   | (3,057                          | )      |   | (11,163 | ) |   | (7,172 | ) |   | (20,992 | ) |
| Net                charge-offs                               |   |                                  | (2,030  | )                                   |   | (2,464                          | )      |   | (7,082 | ) |   | (5,045 | ) |   | (15,800 | ) |
|                                                         |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Allowance                for credit loss acquired bank       |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   | 2,494 |   |
|                                                         |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Balance                at end of period                      |   | $                                     | 148,383 |                                | $      | 141,325                         |   | $ | 148,383 |   | $ | 141,325 |   | $ | 141,464 |   |
|                                                         |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Net                charge-offs as a percentage of            |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| average                loans outstanding                     |   |                                  | 0.06    | %                                   |   | 0.09                            | %      |   | 0.11 | % |   | 0.10 | % |   | 0.15 | % |
|                                                         |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Net                Reserve Additions                         |   | $                                     | 5,470   |                                | $      | 2,036                           |   | $ | 6,919 |   | $ | 5,705 |   | $ | 5,844 |   |
|                                                         |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Components:                                                  |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Allowance                for loan and lease losses           |   | $                                     | 140,746 |                                | $      | 141,325                         |   | $ | 140,746 |   | $ | 141,325 |   | $ | 133,664 |   |
| Allowance                for unfunded credit commitments (1) |   |                                  | 7,637   |                                |   |                            |   |   | 7,637 |   |   |   |   |   | 7,800 |   |
| Total                allowance for credit losses             |   | $                                     | 148,383 |                                | $      | 141,325                         |   | $ | 148,383 |   | $ | 141,325 |   | $ | 141,464 |   |
|                                                         |   |                                  |    |                                |   |                            |   |   |   |   |   |   |   |   |   |   |

----

**Forward-Looking      Statements**

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

----

**Item4.**
**Controls      and Procedures**

----

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

**Item4.**
**Submission      of Matters to a Vote of Security Holders**

|                                    |        | **(Withhold                Authority)** |
|-----------------------------------------|-------------|-----------------------------------------|
| **Name                of Nominee**      | **For**     | **Against**                             |
|                                    |        |                                    |
| Vernon                W. Hill, II       | 154,393,163 | 13,883,833                              |
| Jack                R Bershad           | 153,294,625 | 14,982,371                              |
| Joseph                E. Buckelew       | 154,979,723 | 13,297,273                              |
| Donald                T. DiFrancesco    | 150,046,580 | 18,230,416                              |
| Morton                N. Kerr           | 152,625,809 | 15,651,187                              |
| Steven                M. Lewis          | 155,042,253 | 13,234,743                              |
| John                K. Lloyd            | 154,803,894 | 13,473,102                              |
| George                E. Norcross, III  | 154,479,741 | 13,797,255                              |
| Daniel                J. Ragone         | 154,951,420 | 13,325,576                              |
| William                A. Schwartz, Jr. | 155,541,113 | 12,735,883                              |
| Joseph                T. Tarquini, Jr.  | 155,093,503 | 13,183,493                              |
| Joseph                S. Vassalluzzo    | 155,554,793 | 12,722,203                              |

|        |   | **Broker**  |    |        |   |         |   |
|-------------|--------|-------------|---------|-------------|--------|--------------|--------|
| **For**     |   | **Against** |    | **Abstain** |   | **Non-Vote** |   |
|        |   |        |    |        |   |         |   |
| 167,742,525 |   |        | 394,201 |        |   | 140,270      |   |   | 14,833,280 |   |

**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)                                                |
|                          |   |                                                        |
|                          |   |                                                        |
|                          |   |                                                        |
|                          |   |                                                        |
| AUGUST                4, 2006 |   | /s/                DOUGLAS J. PAULS                         |
| (Date)                        |   | DOUGLAS                J. PAULS                             |
|                          |   | EXECUTIVE                VICE PRESIDENT AND                 |
|                          |   | CHIEF                FINANCIAL OFFICER                      |
|                          |   | (PRINCIPAL                FINANCIAL AND ACCOUNTING OFFICER) |

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