**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**Form      10-Q**

| (X)    | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   | For                the quarterly period ended September                30, 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     | 187,536,830                                                                      |
|---------------------------------|----------------------------------------------------------------------------------|
| (Title                of Class) | (No.                of Shares Outstanding as                of October 30, 2006) |

----

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

|                    |                                                                                       | Page   |
|-------------------------|--------------------------------------------------------------------------------------------|--------|
| PART                I.  | FINANCIAL                INFORMATION                                                       |   |
|                    |                                                                                       |   |
| Item                1.  | Financial                Statements                                                        |   |
|                    |                                                                                       |   |
|                    | Consolidated                Balance Sheets (unaudited)                                     |   |
|                    | September                30, 2006 and December 31, 2005                                    | 1      |
|                    |                                                                                       |   |
|                    | Consolidated                Statements of Income (unaudited)                               |   |
|                    | Three                months ended September 30, 2006 and September 30, 2005 and            |   |
|                    | nine                months ended September 30, 2006 and September 30, 2005                 | 2      |
|                    |                                                                                       |   |
|                    | Consolidated                Statements of Cash Flows (unaudited)                           |   |
|                    | Nine                months ended September 30, 2006 and September 30, 2005                 | 3      |
|                    |                                                                                       |   |
|                    | Consolidated                Statement of Changes in Stockholders’ Equity (unaudited) |   |
|                    | Nine                months ended September 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                  | 24     |
|                    |                                                                                       |   |
| Item                4.  | Controls                and Procedures                                                     | 24     |
|                    |                                                                                       |   |
| PART                II. | OTHER                INFORMATION                                                           |   |
|                    |                                                                                       |   |
| Item                6.  | Exhibits                                                                                   | 24     |
|                    |                                                                                       |   |

----

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

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

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                    |                                                               |   |                             |   |                            |       |
|-------------------------|--------------------------------------------------------------------|--------|----------------------------------|--------|---------------------------------|------------|
|                    |                                                               |   | **September                30,** |   | **December                31,** |       |
|                    | (dollars                in thousands)                              |   | **2006**                         |   |                            | **2005**   |   |
| **Assets**              | Cash                and due from banks                             | **$**  | **1,291,070**                    |   | $                               | 1,284,064  |   |
|                    | Federal                funds sold                                  |   | **6,800**                        |   |                            | 12,700     |   |
|                    | Cash                and cash equivalents                           |   | **1,297,870**                    |   |                            | 1,296,764  |   |
|                    | Loans                held for sale                                 |   | **79,854**                       |   |                            | 30,091     |   |
|                    | Trading                securities                                  |   | **92,622**                       |   |                            | 143,016    |   |
|                    | Securities                available for sale                       |   | **10,800,173**                   |   |                            | 9,518,821  |   |
|                    | Securities                held to maturity                         |   | **14,245,638**                   |   |                            | 13,005,364 |   |
|                    | (market                value 09/06-$13,974,804; 12/05-$12,758,552) |   |                             |   |                            |       |   |
|                    | Loans                                                              |   | **14,697,495**                   |   |                            | 12,658,652 |   |
|                    | Less                allowance for loan and lease losses            |   | **146,791**                      |   |                            | 133,664    |   |
|                    |                                                               |   | **14,550,704**                   |   |                            | 12,524,988 |   |
|                    | Bank                premises and equipment, net                    |   | **1,577,738**                    |   |                            | 1,378,786  |   |
|                    | Goodwill                and other intangible assets                |   | **147,653**                      |   |                            | 106,926    |   |
|                    | Other                assets                                        |   | **511,258**                      |   |                            | 461,281    |   |
|                    | Total                assets                                        | **$**  | **43,303,510**                   |   | $                               | 38,466,037 |   |
|                    |                                                               |   |                             |   |                            |       |   |
| **Liabilities**         | Deposits:                                                          |   |                             |   |                            |       |   |
|                    | Demand:                                                            |   |                             |   |                            |       |   |
|                    | Noninterest-bearing                                                | **$**  | **8,649,757**                    |   | $                               | 8,019,878  |   |
|                    | Interest-bearing                                                   |   | **15,692,939**                   |   |                            | 13,286,678 |   |
|                    | Savings                                                            |   | **10,646,687**                   |   |                            | 9,486,712  |   |
|                    | Time                                                               |   | **5,152,278**                    |   |                            | 3,933,445  |   |
|                    | Total                deposits                                      |   | **40,141,661**                   |   |                            | 34,726,713 |   |
|                    | Other                borrowed money                                |   | **118,400**                      |   |                            | 1,106,443  |   |
|                    | Other                liabilities                                   |   | **328,088**                      |   |                            | 323,708    |   |
|                    | Total                liabilities                                   |   | **40,588,149**                   |   |                            | 36,156,864 |   |
|                    |                                                               |   |                             |   |                            |       |   |
| **Stockholders’** | Common                stock, 188,135,291 shares                    |   |                             |   |                            |       |   |
| **Equity**              | issued                (179,498,717 shares in 2005)                 |   | **188,135**                      |   |                            | 179,499    |   |
|                    | Capital                in excess of par value                      |   | **1,689,262**                    |   |                            | 1,450,843  |   |
|                    | Retained                earnings                                   |   | **920,450**                      |   |                            | 750,710    |   |
|                    | Accumulated                other comprehensive loss                |   | **(63,829**                      | **)**  |                            | (59,169    | ) |
|                    |                                                               |   | **2,734,018**                    |   |                            | 2,321,883  |   |
|                    |                                                               |   |                             |   |                            |       |   |
|                    | Less                treasury stock, at cost, 1,006,804 shares      |   |                             |   |                            |       |   |
|                    | (837,338                shares in 2005)                            |   | **18,657**                       |   |                            | 12,710     |   |
|                    | Total                stockholders’ equity                    |   | **2,715,361**                    |   |                            | 2,309,173  |   |
|                    | Total                liabilities and stockholders’ equity    | **$**  | **43,303,510**                   |   | $                               | 38,466,037 |   |

----

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF INCOME**

|            |                                                            |                                                                  |        |   |                                                                 |     |
|-----------------|-----------------------------------------------------------------|-----------------------------------------------------------------------|-------------|--------|----------------------------------------------------------------------|----------|
|            |                                                            | **Three                Months Ended****September                30,** |        |   | **Nine                Months Ended****September                30,** |     |
|            | (dollars                in thousands, except per share amounts) |                                                                  | **2006**    |   |                                                                 | **2005** |   |   | **2006** |   |   | **2005** |   |
| **Interest**    | Interest                and fees on loans                       | **$**                                                                 | **255,663** |   | $                                                                    | 178,878  |   | **$** | **707,527** |   | $ | 485,935 |   |
| **income**      | Interest                on investments                          |                                                                  | **339,825** |   |                                                                 | 243,187  |   |   | **959,923** |   |   | 703,103 |   |
|            | Other                interest                                   |                                                                  | **1,918**   |   |                                                                 | 1,774    |   |   | **2,581** |   |   | 2,979 |   |
|            | Total                interest income                            |                                                                  | **597,406** |   |                                                                 | 423,839  |   |   | **1,670,031** |   |   | 1,192,017 |   |
|            |                                                            |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
| **Interest**    | Interest                on deposits:                            |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
| **expense**     | Demand                                                          |                                                                  | **132,349** |   |                                                                 | 68,100   |   |   | **348,374** |   |   | 168,526 |   |
|            | Savings                                                         |                                                                  | **70,320**  |   |                                                                 | 35,215   |   |   | **188,481** |   |   | 77,553 |   |
|            | Time                                                            |                                                                  | **52,375**  |   |                                                                 | 26,114   |   |   | **129,810** |   |   | 66,793 |   |
|            | Total                interest on deposits                       |                                                                  | **255,044** |   |                                                                 | 129,429  |   |   | **666,665** |   |   | 312,872 |   |
|            | Interest                on other borrowed money                 |                                                                  | **20,392**  |   |                                                                 | 4,697    |   |   | **54,529** |   |   | 16,024 |   |
|            | Interest                on long-term debt                       |                                                                  |        |   |                                                                 | 2,339    |   |   |   |   |   | 8,379 |   |
|            | Total                interest expense                           |                                                                  | **275,436** |   |                                                                 | 136,465  |   |   | **721,194** |   |   | 337,275 |   |
|            |                                                            |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
|            | Net                interest income                              |                                                                  | **321,970** |   |                                                                 | 287,374  |   |   | **948,837** |   |   | 854,742 |   |
|            | Provision                for credit losses                      |                                                                  | **9,499**   |   |                                                                 | 3,000    |   |   | **23,500** |   |   | 13,750 |   |
|            | Net                interest income after provision for          |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
|            | credit                losses                                    |                                                                  | **312,471** |   |                                                                 | 284,374  |   |   | **925,337** |   |   | 840,992 |   |
|            |                                                            |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
| **Noninterest** | Deposit                charges and service fees                 |                                                                  | **97,436**  |   |                                                                 | 72,302   |   |   | **271,370** |   |   | 201,068 |   |
| **income**      | Other                operating income                           |                                                                  | **53,121**  |   |                                                                 | 46,763   |   |   | **153,145** |   |   | 131,532 |   |
|            | Net                investment securities gains                  |                                                                  |        |   |                                                                 | 5,714    |   |   |   |   |   | 11,511 |   |
|            | Total                noninterest income                         |                                                                  | **150,557** |   |                                                                 | 124,779  |   |   | **424,515** |   |   | 344,111 |   |
|            |                                                            |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
| **Noninterest** | Salaries                and benefits                            |                                                                  | **156,105** |   |                                                                 | 134,149  |   |   | **451,560** |   |   | 381,002 |   |
| **expense**     | Occupancy                                                       |                                                                  | **49,534**  |   |                                                                 | 41,873   |   |   | **141,261** |   |   | 118,976 |   |
|            | Furniture                and equipment                          |                                                                  | **41,543**  |   |                                                                 | 32,371   |   |   | **117,159** |   |   | 90,192 |   |
|            | Office                                                          |                                                                  | **15,213**  |   |                                                                 | 14,871   |   |   | **45,084** |   |   | 40,125 |   |
|            | Marketing                                                       |                                                                  | **10,712**  |   |                                                                 | 12,460   |   |   | **30,222** |   |   | 26,717 |   |
|            | Other                                                           |                                                                  | **70,362**  |   |                                                                 | 52,858   |   |   | **207,301** |   |   | 168,475 |   |
|            | Total                noninterest expenses                       |                                                                  | **343,469** |   |                                                                 | 288,582  |   |   | **992,587** |   |   | 825,487 |   |
|            |                                                            |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
|            | Income                before income taxes                       |                                                                  | **119,559** |   |                                                                 | 120,571  |   |   | **357,265** |   |   | 359,616 |   |
|            | Provision                for federal and state income taxes     |                                                                  | **39,890**  |   |                                                                 | 41,116   |   |   | **120,779** |   |   | 123,615 |   |
|            | Net                income                                       | **$**                                                                 | **79,669**  |   | $                                                                    | 79,455   |   | **$** | **236,486** |   | $ | 236,001 |   |
|            |                                                            |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
|            | Net                income per common and common                 |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
|            | equivalent                share:                                |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
|            | Basic                                                           | **$**                                                                 | **0.43**    |   | $                                                                    | 0.48     |   | **$** | **1.29** |   | $ | 1.45 |   |
|            | Diluted                                                         | **$**                                                                 | **0.41**    |   | $                                                                    | 0.45     |   | **$** | **1.23** |   | $ | 1.36 |   |
|            | Average                common and common equivalent             |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
|            | shares                outstanding:                              |                                                                  |        |   |                                                                 |     |   |   |   |   |   |   |   |
|            | Basic                                                           |                                                                  | **186,527** |   |                                                                 | 165,701  |   |   | **183,981** |   |   | 162,947 |   |
|            | Diluted                                                         |                                                                  | **194,754** |   |                                                                 | 180,360  |   |   | **192,872** |   |   | 177,951 |   |
|            | Dividends                declared, common stock                 | **$**                                                                 | **0.12**    |   | $                                                                    | 0.11     |   | **$** | **0.36** |   | $ | 0.33 |   |

----

**COMMERCE      BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|           |                                                                                                                   |   |                                                                 |   |
|----------------|------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|           |                                                                                                                   |   | **Nine                Months Ended****September                30,** |   |
|           | (dollars                in thousands)                                                                                  |   | **2006**                                                             |   |   | **2005** |   |
| **Operating**  | Net                income                                                                                              | **$**  | **236,486**                                                          |   | $ | 236,001 |   |
| **activities** | Adjustments                to reconcile net income to net cash                                                         |   |                                                                 |   |   |   |   |
|           | provided                by operating activities:                                                                       |   |                                                                 |   |   |   |   |
|           | Provision                for credit losses                                                                             |   | **23,500**                                                           |   |   | 13,750 |   |
|           | Provision                for depreciation, amortization and accretion                                                  |   | **115,955**                                                          |   |   | 118,578 |   |
|           | Stock-based                compensation expense                                                                        |   | **5,092**                                                            |   |   |   |   |
|           | Net                gain on sales of securities                                                                         |   |                                                                 |   |   | (11,511 | ) |
|           | Proceeds                from sales of loans held for sale                                                              |   | **487,627**                                                          |   |   | 826,293 |   |
|           | Originations                of loans held for sale                                                                     |   | **(530,040**                                                         | **)**  |   | (618,093 | ) |
|           | Net                decrease in trading securities                                                                      |   | **50,394**                                                           |   |   | 18,256 |   |
|           | Increase                in other assets, net                                                                           |   | **(46,742**                                                          | **)**  |   | (24,045 | ) |
|           | Decrease                in other liabilities                                                                           |   | **(10,245**                                                          | **)**  |   | (85,019 | ) |
|           | Net                cash provided by operating activities                                                               |   | **332,027**                                                          |   |   | 474,210 |   |
|           |                                                                                                                   |   |                                                                 |   |   |   |   |
| **Investing**  | Proceeds                from the sales of securities available for sale                                                |   |                                                                 |   |   | 2,411,556 |   |
| **activities** | Proceeds                from the maturity of securities available for sale                                             |   | **1,970,323**                                                        |   |   | 2,151,775 |   |
|           | Proceeds                from the maturity of securities held to maturity                                               |   | **1,652,753**                                                        |   |   | 2,001,015 |   |
|           | Purchase                of securities available for sale                                                               |   | **(3,263,868**                                                       | **)**  |   | (5,584,017 | ) |
|           | Purchase                of securities held to maturity                                                                 |   | **(2,902,717**                                                       | **)**  |   | (4,514,861 | ) |
|           | Net                increase in loans                                                                                   |   | **(2,056,558**                                                       | **)**  |   | (2,094,779 | ) |
|           | Capital                expenditures                                                                                    |   | **(298,562**                                                         | **)**  |   | (237,875 | ) |
|           | Net                cash used by investing activities                                                                   |   | **(4,898,629**                                                       | **)**  |   | (5,867,186 | ) |
|           |                                                                                                                   |   |                                                                 |   |   |   |   |
| **Financing**  | Net                increase in demand and savings deposits                                                             |   | **4,196,115**                                                        |   |   | 5,136,054 |   |
| **activities** | Net                increase in time deposits                                                                           |   | **1,218,833**                                                        |   |   | 448,747 |   |
|           | Net                (decrease) increase in other borrowed money                                                         |   | **(988,043**                                                         | **)**  |   | 42,032 |   |
|           | Dividends                paid                                                                                          |   | **(65,736**                                                          | **)**  |   | (53,336 | ) |
|           | Redemption                of long term debt                                                                            |   |                                                                 |   |   | (155 | ) |
|           | Proceeds                from issuance of common stock under dividend                reinvestment and other stock plans |   |  **206,506**                                                    |   |   |  129,447 |   |
|           | Other                                                                                                                  |   | **33**                                                               |   |   | (1,039 | ) |
|           | Net                cash provided by financing activities                                                               |   | **4,567,708**                                                        |   |   | 5,701,750 |   |
|           |                                                                                                                   |   |                                                                 |   |   |   |   |
|           | Increase                in cash and cash equivalents                                                                   |   | **1,106**                                                            |   |   | 308,774 |   |
|           | Cash                and cash equivalents at beginning of year                                                          |   | **1,296,764**                                                        |   |   | 1,050,806 |   |
|           | Cash                and cash equivalents at end of period                                                              | **$**  | **1,297,870**                                                        |   | $ | 1,359,580 |   |
|           |                                                                                                                   |   |                                                                 |   |   |   |   |
|           | Supplemental                disclosures of cash flow information:                                                      |   |                                                                 |   |   |   |   |
|           | Cash                paid during the period for:                                                                        |   |                                                                 |   |   |   |   |
|           | Interest                                                                                                               | **$**  | **708,899**                                                          |   | $ | 332,875 |   |
|           | Income                taxes                                                                                            |   | **112,452**                                                          |   |   | 116,767 |   |
|           | Other                noncash activities:                                                                               |   |                                                                 |   |   |   |   |
|           | Transfer                of loans to held for sale                                                                      |   | **7,350**                                                            |   |   | 249,500 |   |

----

**COMMERCE      BANCORP, INC. AND      SUBSIDIARIES**

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

| Nine                months ended September 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                                       |   |   |   |   |   |   |   |   | 236,486 |   |   |   |   |   |   |   |   | 236,486 |   |
| Other                comprehensive loss, net of tax             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                loss on securities (pre-tax $7,690)   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (4,660 | ) |   | (4,660 | ) |
| Total                comprehensive income                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 231,826 |   |
| Cash                dividends                                   |   |   |   |   |   |   |   |   | (66,746 | ) |   |   |   |   |   |   |   | (66,746 | ) |
| Shares                issued under dividend reinvestment        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                other stock plans (7,776 shares)             |   |   | 7,776 |   |   | 204,654 |   |   |   |   |   |   |   |   |   |   |   | 212,430 |   |
| Acquisition                of eMoney Advisor, Inc. (860 shares) |   |   | 860 |   |   | 28,140 |   |   |   |   |   |   |   |   |   |   |   | 29,000 |   |
| Other                                                           |   |   |   |   |   | 5,625 |   |   |   |   |   | (5,947 | ) |   |   |   |   | (322 | ) |
| **Balances                at September 30, 2006**               |   | **$** | **188,135** |   | **$** | **1,689,262** |   | **$** | **920,450** |   | $ | (18,657 | ) | $ | (63,829 | ) | **$** | **2,715,361** |   |

----

**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                   |   |                                    | 4,249,462  |                                                                |   | 36.49                                                                                    |   |   |   |   |
| Options                exercised                 |   |                                    | 3,377,904  |                                                                |   | 18.96                                                                                    |   |   |   |   |
| Options                canceled                  |   |                                    | 150,881    |                                                                |   | 34.12                                                                                    |   |   |   |   |
| Outstanding                at September 30, 2006 |   |                                    | 27,614,753 |                                                                | $      | 22.41                                                                                    |   |   | 5.9 |   |
| Exercisable                at September 30, 2006 |   |                                    | 23,534,091 |                                                                | $      | 19.99                                                                                    |   |   | 5.3 |   |

----

|                                                          |   | **Three                Months**       |   | **Nine                Months**        |   |
|---------------------------------------------------------------|--------|---------------------------------------|--------|---------------------------------------|--------|
|                                                          |   | **Ended**                             |   | **Ended**                             |   |
|                                                          |   | **September                30, 2005** |   | **September                30, 2005** |   |
| Reported                net income                            |   | $                                     | 79,455 |                                  | $      | 236,001 |   |
| Less:                Stock option compensation expense        |   |                                  |   |                                  |   |   |   |
| determined                under fair value method, net of tax |   |                                  | (4,031 | )                                     |   | (12,092 | ) |
| Pro                forma net income, basic                    |   | $                                     | 75,424 |                                  | $      | 223,909 |   |
| Add:                Interest expense on Convertible Trust     |   |                                  |   |                                  |   |   |   |
| Capital                Securities, net of tax                 |   |                                  | 1,520  |                                  |   | 5,446 |   |
| Pro                forma net income, diluted                  |   | $                                     | 76,944 |                                  | $      | 229,355 |   |
|                                                          |   |                                  |   |                                  |   |   |   |
| Reported                net income per share:                 |   |                                  |   |                                  |   |   |   |
| Basic                                                         |   | $                                     | 0.48   |                                  | $      | 1.45 |   |
| Diluted                                                       |   | $                                     | 0.45   |                                  | $      | 1.36 |   |
|                                                          |   |                                  |   |                                  |   |   |   |
| Pro                forma net income per share:                |   |                                  |   |                                  |   |   |   |
| Basic                                                         |   | $                                     | 0.46   |                                  | $      | 1.37 |   |
| Diluted                                                       |   | $                                     | 0.43   |                                  | $      | 1.29 |   |
|                                                          |   |                                  |   |                                  |   |   |   |

**C.**
**Commitments**

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

----

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

|                                               |                                                                       |      |                                                                       |        |
|----------------------------------------------------|----------------------------------------------------------------------------|-----------|----------------------------------------------------------------------------|-------------|
|                                               | **Three                Months Ended****September                30, 2006** |      | **Three                Months Ended****September                30, 2005** |        |
|                                               | **Community**                                                              |      |                                                                       | **Parent/** |   |   |   |   | **Community** |   |   | **Parent/** |   |   |   |   |
|                                               |                                                                       | **Banks** |                                                                       |        | **Other** |   |   | **Total** |   |   | **Banks** |   |   | **Other** |   |   | **Total** |   |
| Net                interest income                 | $                                                                          | 321,266   |                                                                       | $           | 704 |   | $ | 321,970 |   | $ | 288,799 |   | $ | (1,425 | ) | $ | 287,374 |   |
| Provision                for credit losses         |                                                                       | 9,499     |                                                                       |        |   |   |   | 9,499 |   |   | 3,000 |   |   |   |   |   | 3,000 |   |
| Net                interest income after provision |                                                                       | 311,767   |                                                                       |        | 704 |   |   | 312,471 |   |   | 285,799 |   |   | (1,425 | ) |   | 284,374 |   |
| Noninterest                income                  |                                                                       | 120,066   |                                                                       |        | 30,491 |   |   | 150,557 |   |   | 99,833 |   |   | 24,946 |   |   | 124,779 |   |
| Noninterest                expense                 |                                                                       | 312,388   |                                                                       |        | 31,081 |   |   | 343,469 |   |   | 274,652 |   |   | 13,930 |   |   | 288,582 |   |
| Income                before income taxes          |                                                                       | 119,445   |                                                                       |        | 114 |   |   | 119,559 |   |   | 110,980 |   |   | 9,591 |   |   | 120,571 |   |
| Income                tax expense                  |                                                                       | 39,668    |                                                                       |        | 222 |   |   | 39,890 |   |   | 38,001 |   |   | 3,115 |   |   | 41,116 |   |
| Net                income                          | $                                                                          | 79,777    |                                                                       | $           | (108 | ) | $ | 79,669 |   | $ | 72,979 |   | $ | 6,476 |   | $ | 79,455 |   |
|                                               |                                                                       |      |                                                                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                assets (in millions)        | $                                                                          | 40,301    |                                                                       | $           | 2,979 |   | $ | 43,280 |   | $ | 32,129 |   | $ | 2,515 |   | $ | 34,644 |   |

|                                               |                                                                      |      |                                                                      |        |
|----------------------------------------------------|---------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------|-------------|
|                                               | **Nine                Months Ended****September                30, 2006** |      | **Nine                Months Ended****September                30, 2005** |        |
|                                               | **Community**                                                             |      |                                                                      | **Parent/** |   |   |   |   | **Community** |   |   | **Parent/** |   |   |   |   |
|                                               |                                                                      | **Banks** |                                                                      |        | **Other** |   |   | **Total** |   |   | **Banks** |   |   | **Other** |   |   | **Total** |   |
| Net                interest income                 | $                                                                         | 946,184   |                                                                      | $           | 2,653 |   | $ | 948,837 |   | $ | 859,613 |   | $ | (4,871 | ) | $ | 854,742 |   |
| Provision                for credit losses         |                                                                      | 23,500    |                                                                      |        |   |   |   | 23,500 |   |   | 13,750 |   |   |   |   |   | 13,750 |   |
| Net                interest income after provision |                                                                      | 922,684   |                                                                      |        | 2,653 |   |   | 925,337 |   |   | 845,863 |   |   | (4,871 | ) |   | 840,992 |   |
| Noninterest                income                  |                                                                      | 332,657   |                                                                      |        | 91,858 |   |   | 424,515 |   |   | 265,052 |   |   | 79,059 |   |   | 344,111 |   |
| Noninterest                expense                 |                                                                      | 908,139   |                                                                      |        | 84,448 |   |   | 992,587 |   |   | 769,320 |   |   | 56,167 |   |   | 825,487 |   |
| Income                before income taxes          |                                                                      | 347,202   |                                                                      |        | 10,063 |   |   | 357,265 |   |   | 341,595 |   |   | 18,021 |   |   | 359,616 |   |
| Income                tax expense                  |                                                                      | 116,859   |                                                                      |        | 3,920 |   |   | 120,779 |   |   | 117,630 |   |   | 5,985 |   |   | 123,615 |   |
| Net                income                          | $                                                                         | 230,343   |                                                                      | $           | 6,143 |   | $ | 236,486 |   | $ | 223,965 |   | $ | 12,036 |   | $ | 236,001 |   |
|                                               |                                                                      |      |                                                                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                assets (in millions)        | $                                                                         | 38,673    |                                                                      | $           | 2,827 |   | $ | 41,500 |   | $ | 30,370 |   | $ | 2,478 |   | $ | 32,848 |   |

----

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

|                                                                         |                                                                  |     |                                                                 |   |
|------------------------------------------------------------------------------|-----------------------------------------------------------------------|----------|----------------------------------------------------------------------|--------|
|                                                                         | **Three                Months Ended****September                30,** |     | **Nine                Months Ended****September                30,** |   |
|                                                                         |                                                                  | **2006** |                                                                 |   | **2005** |   |   | **2006** |   |   | **2005** |   |
|                                                                         |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
| **Basic:**                                                                   |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income available to common shareholders - basic           | $                                                                     | 79,669   |                                                                 | $      | 79,455 |   | $ | 236,486 |   | $ | 236,001 |   |
| Average                common shares outstanding - basic                     |                                                                  | 186,527  |                                                                 |   | 165,701 |   |   | 183,981 |   |   | 162,947 |   |
| Net                income per common share - basic                           | $                                                                     | 0.43     |                                                                 | $      | 0.48 |   | $ | 1.29 |   | $ | 1.45 |   |
|                                                                         |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
| **Diluted:**                                                                 |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income                                                    | $                                                                     | 79,669   |                                                                 | $      | 79,455 |   | $ | 236,486 |   | $ | 236,001 |   |
| Add                interest expense on Convertible Trust Capital Securities, |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
| net                of tax                                                    |                                                                  |     |                                                                 |   | 1,520 |   |   |   |   |   | 5,446 |   |
| Net                income available to common shareholders - diluted         | $                                                                     | 79,669   |                                                                 | $      | 80,975 |   | $ | 236,486 |   | $ | 241,447 |   |
|                                                                         |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                         |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
| Average                common shares outstanding                             |                                                                  | 186,527  |                                                                 |   | 165,701 |   |   | 183,981 |   |   | 162,947 |   |
| Additional                shares considered in diluted computation assuming: |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
| Exercise                of stock options                                     |                                                                  | 8,227    |                                                                 |   | 8,478 |   |   | 8,891 |   |   | 7,894 |   |
| Conversion                of Convertible Trust Capital Securities            |                                                                  |     |                                                                 |   | 6,181 |   |   |   |   |   | 7,110 |   |
| Average                common shares outstanding - diluted                   |                                                                  | 194,754  |                                                                 |   | 180,360 |   |   | 192,872 |   |   | 177,951 |   |
|                                                                         |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income per common share - diluted                         | $                                                                     | 0.41     |                                                                 | $      | 0.45 |   | $ | 1.23 |   | $ | 1.36 |   |
|                                                                         |                                                                  |     |                                                                 |   |   |   |   |   |   |   |   |   |

| **G.  ** | **New                Accounting Pronouncements** |
|--------------------|--------------------------------------------------|

----

**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 |   |
|                                      |       |   |                                     |      |   |   |   |   |   |
| **September                30, 2006:**    |       |   |                                     |      |   |   |   |   |   |
| Company                                   |       |   |                                     |      |   |   |   |   |   |
| Risk                based capital ratios: |       |   |                                     |      |   |   |   |   |   |
| Tier                1                     | $2,631,537 | 11.99  | %                                        | $877,946  | 4.00 | % | $1,316,918 | 6.00 | % |
| Total                capital              | 2,790,320  | 12.71  |                                     | 1,755,891 | 8.00 |   | 2,194,864 | 10.00 |   |
| Leverage                ratio             | 2,631,537  | 6.08   |                                     | 1,731,655 | 4.00 |   | 2,164,569 | 5.00 |   |
| Commerce                N.A.              |       |   |                                     |      |   |   |   |   |   |
| Risk                based capital ratios: |       |   |                                     |      |   |   |   |   |   |
| Tier                1                     | $2,354,190 | 11.72  | %                                        | $803,646  | 4.00 | % | $1,205,469 | 6.00 | % |
| Total                capital              | 2,491,308  | 12.40  |                                     | 1,607,293 | 8.00 |   | 2,009,116 | 10.00 |   |
| Leverage                ratio             | 2,354,190  | 5.97   |                                     | 1,576,715 | 4.00 |   | 1,970,893 | 5.00 |   |
|                                      |       |   |                                     |      |   |   |   |   |   |

----

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

**Deposits**

|       |                                     |                             |                                     |                             |                                  |
|------------|------------------------------------------|----------------------------------|------------------------------------------|----------------------------------|---------------------------------------|
|       | **September                30,****2006** | **%                of****Total** | **September                30,****2005** | **%                of****Total** | **Annual****Growth                %** |
|       |                                     |                             |                                     |                             |                                  |
| Consumer   | $15,702,022                              | 41%                              | $13,946,811                              | 43%                              | 13%                                   |
|       |                                     |                             |                                     |                             |                                  |
| Commercial | 15,213,935                               | 39                               | 12,049,687                               | 37                               | 26                                    |
|       |                                     |                             |                                     |                             |                                  |
| Government | 7,622,610                                | 20                               | 6,374,496                                | 20                               | 20                                    |
|       |                                     |                             |                                     |                             |                                  |
| Total      | $38,538,567                              | 100%                             | $32,370,994                              | 100%                             | 19%                                   |
|       |                                     |                             |                                     |                             |                                  |

**Interest      Rate Sensitivity and Liquidity**

----

|                               |   |                                  |                         |   |   |
|------------------------------------|--------|---------------------------------------|------------------------------|--------|--------|
|                               |   | **Basis                Point Change** |
|                               |   | **Plus                200**           | **Minus                100** |
| September                30, 2006: |   |                                  |                         |   |   |
| Twelve                Months       |   | (9.3                                  | )%                           | 1.9    | %      |
| Twenty                Four Months  |   | (3.9                                  | )%                           | (1.1   | )%     |
|                               |   |                                  |                         |   |   |
| September                30, 2005: |   |                                  |                         |   |   |
| Twelve                Months       |   | (4.5                                  | )%                           | (5.1   | )%     |
| Twenty                Four Months  |   | 2.4                                   | %                            | (7.7   | )%     |
|                               |   |                                  |                         |   |   |

----

|                                  |                            |                         |
|---------------------------------------|---------------------------------|------------------------------|
|                                  | **Market                Value** |                         |
|                                  | **of                Equity**    | **Per                Share** |
|                                  |                            |                         |
| Plus                200 basis points  | $9,092                          | $48.33                       |
|                                  |                            |                         |
| Current                Rate           | $9,380                          | $49.86                       |
|                                  |                            |                         |
| Minus                100 basis points | $8,470                          | $45.02                       |

**Short-Term      Borrowings**

**Interest      Earning Assets**

----

**Loans**

|                                              |   | **September                30,** |   |   | **December                31,** |   |
|---------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                              |   | **2006**                         |   |   | **2005**                        |   |
|                                              |   | (in                thousands)    |   |
| Commercial:                                       |   |                             |   |   |                            |   |
| Term                                              | $      | 2,120,086                        |   | $      | 1,781,148                       |   |
| Line                of credit                     |   | 1,752,938                        |   |   | 1,517,347                       |   |
|                                              |   | 3,873,024                        |   |   | 3,298,495                       |   |
|                                              |   |                             |   |   |                            |   |
| Owner-occupied                                    |   | 2,729,172                        |   |   | 2,402,300                       |   |
|                                              |   | 6,602,196                        |   |   | 5,700,795                       |   |
|                                              |   |                             |   |   |                            |   |
| Consumer:                                         |   |                             |   |   |                            |   |
| Mortgages                (1-4 family residential) |   | 2,208,454                        |   |   | 2,000,309                       |   |
| Installment                                       |   | 267,158                          |   |   | 211,332                         |   |
| Home                equity                        |   | 2,834,562                        |   |   | 2,353,581                       |   |
| Credit                lines                       |   | 113,939                          |   |   | 100,431                         |   |
|                                              |   | 5,424,113                        |   |   | 4,665,653                       |   |
| Commercial                real estate:            |   |                             |   |   |                            |   |
| Investor                developer                 |   | 2,356,162                        |   |   | 2,001,674                       |   |
| Construction                                      |   | 315,024                          |   |   | 290,530                         |   |
|                                              |   | 2,671,186                        |   |   | 2,292,204                       |   |
| Total                loans                        | $      | 14,697,495                       |   | $      | 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)       |   | $                             | 1,406,729  |                       | $      | 2,093,276  |   | $ | 3,500,005 |   |
|                                          |   |                          |       |                       |   |       |   |   |   |   |
| Collateralized                Mortgage        |   |                          |       |                       |   |       |   |   |   |   |
| Obligations                (AAA Rated)        |   |                          | 8,624,235  |                       |   | 10,208,944 |   |   | 18,833,179 |   |
|                                          |   |                          |       |                       |   |       |   |   |   |   |
| U.S.                Government agencies/Other |   |                          | 769,208    |                       |   | 1,943,418  |   |   | 2,712,626 |   |
|                                          |   |                          |       |                       |   |       |   |   |   |   |
| Total                                         |   | $                             | 10,800,173 |                       | $      | 14,245,638 |   | $ | 25,045,810 |   |
|                                          |   |                          |       |                       |   |       |   |   |   |   |
| Duration                (in years)            |   |                          | 3.03       |                       |   | 3.53       |   |   | 3.31 |   |
| Average                Life (in years)        |   |                          | 5.61       |                       |   | 5.77       |   |   | 5.70 |   |
| Quarterly                Average Yield        |   |                          | 5.59       | %                          |   | 5.27       | %      |   | 5.40 | % |

|                                                                  |   |                                     |       |
|-----------------------------------------------------------------------|--------|------------------------------------------|------------|
|                                                                  |   | **At                September 30, 2006** |       |
|                                                                  |   |  **Amortized****Cost**              |       | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   |  **Market****Value** |   |
| U.S.                Government agency and mortgage-backed obligations |   | $                                        | 10,806,488 |   | $ | 14,225 |   | $ | (125,813 | ) | $ | 10,694,900 |   |
| Obligations                of state and political subdivisions        |   |                                     | 55,437     |   |   | 247 |   |   | (2 | ) |   | 55,682 |   |
| Equity                securities                                      |   |                                     | 9,679      |   |   | 9,359 |   |   |   |   |   | 19,038 |   |
| Other                                                                 |   |                                     | 30,609     |   |   |   |   |   | (56 | ) |   | 30,553 |   |
| Securities                available for sale                          |   | $                                        | 10,902,213 |   | $ | 23,831 |   | $ | (125,871 | ) | $ | 10,800,173 |   |
|                                                                  |   |                                     |       |   |   |   |   |   |   |   |   |   |   |
| U.S.                Government agency and mortgage-backed obligations |   | $                                        | 13,583,964 |   | $ | 9,478 |   | $ | (281,738 | ) | $ | 13,311,704 |   |
| Obligations                of state and political subdivisions        |   |                                     | 522,817    |   |   | 1,830 |   |   | (404 | ) |   | 524,243 |   |
| Other                                                                 |   |                                     | 138,857    |   |   |   |   |   |   |   |   | 138,857 |   |
| Securities                held to maturity                            |   | $                                        | 14,245,638 |   | $ | 11,308 |   | $ | (282,142 | ) | $ | 13,974,804 |   |

----

|                                                                  |   | **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** |
|--------------------------------------|----------------------------------------|
| **September**                        | **Volume**                             |   | **Rate** |   | **Total** |   | **%** |
| **2006                vs. 2005**     | **Increase**                           |   | **Change** |   | **Increase** |   | **Increase** |
|                                 |                                   |   |   |   |   |   |   |
| **Quarter**                          | $61,079                                |   | $(25,375) |   | $35,704 |   | 12% |
|                                 |                                   |   |   |   |   |   |   |
| **First                Nine Months** | $199,319                               |   | $(100,926) |   | $98,393 |   | 11% |
|                                 |                                   |   |   |   |   |   |   |

----

**Average      Balances and Net Interest Income**

|                                                 |   | September                2006 |       | June                2006 |   | September                2005 |   |
|------------------------------------------------------|--------|-------------------------------|------------|--------------------------|--------|-------------------------------|--------|
|                                                 |   | Average                       |       |                     |   | Average                       |   | Average |   |   |   | Average |   | Average |   |   |   | Average |   |
| *(dollars                in thousands)*              |   | Balance                       |       | Interest                 |   | Rate                          |   | Balance |   | Interest |   | Rate |   | Balance |   | Interest |   | Rate |   |
| **Earning                Assets**                    |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities                 |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                              |   | $                             | 24,566,553 |                     | $      | 334,250                       |   |   | 5.40 | % | $ | 23,851,645 |   | $ | 319,271 |   |   | 5.37 | % | $ | 19,732,946 |   | $ | 239,481 |   |   | 4.81 | % |
| Tax-exempt                                           |   |                          | 530,542    |                     |   | 7,641                         |   |   | 5.71 |   |   | 559,733 |   |   | 7,322 |   |   | 5.25 |   |   | 397,351 |   |   | 4,366 |   |   | 4.36 |   |
| Trading                                              |   |                          | 78,103     |                     |   | 934                           |   |   | 4.74 |   |   | 113,049 |   |   | 1,525 |   |   | 5.41 |   |   | 96,344 |   |   | 1,335 |   |   | 5.50 |   |
| Total                investment securities           |   |                          | 25,175,198 |                     |   | 342,825                       |   |   | 5.40 |   |   | 24,524,427 |   |   | 328,118 |   |   | 5.37 |   |   | 20,226,641 |   |   | 245,182 |   |   | 4.81 |   |
| Federal                funds sold                    |   |                          | 145,897    |                     |   | 1,918                         |   |   | 5.22 |   |   | 19,898 |   |   | 250 |   |   | 5.04 |   |   | 198,260 |   |   | 1,774 |   |   | 3.55 |   |
| Loans                                                |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                mortgages                  |   |                          | 5,001,608  |                     |   | 90,050                        |   |   | 7.14 |   |   | 4,784,584 |   |   | 83,903 |   |   | 7.03 |   |   | 3,865,284 |   |   | 63,300 |   |   | 6.50 |   |
| Commercial                                           |   |                          | 3,603,790  |                     |   | 72,606                        |   |   | 7.99 |   |   | 3,492,946 |   |   | 66,879 |   |   | 7.68 |   |   | 2,760,625 |   |   | 47,117 |   |   | 6.77 |   |
| Consumer                                             |   |                          | 5,407,721  |                     |   | 87,077                        |   |   | 6.39 |   |   | 5,115,609 |   |   | 80,560 |   |   | 6.32 |   |   | 4,087,665 |   |   | 62,720 |   |   | 6.09 |   |
| Tax-exempt                                           |   |                          | 510,950    |                     |   | 9,123                         |   |   | 7.08 |   |   | 498,492 |   |   | 8,535 |   |   | 6.87 |   |   | 498,211 |   |   | 8,831 |   |   | 7.03 |   |
| Total                loans                           |   |                          | 14,524,069 |                     |   | 258,856                       |   |   | 7.07 |   |   | 13,891,631 |   |   | 239,877 |   |   | 6.93 |   |   | 11,211,785 |   |   | 181,968 |   |   | 6.44 |   |
| Total                earning assets                  |   | $                             | 39,845,164 |                     | $      | 603,599                       |   |   | 6.01 | % | $ | 38,435,956 |   | $ | 568,245 |   |   | 5.93 | % | $ | 31,636,686 |   | $ | 428,924 |   |   | 5.38 | % |
| **Sources                of Funds**                  |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities          |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                                              |   | $                             | 10,592,676 |                     | $      | 70,320                        |   |   | 2.63 | % | $ | 10,344,463 |   | $ | 64,157 |   |   | 2.49 | % | $ | 8,127,451 |   | $ | 35,215 |   |   | 1.72 | % |
| Interest                bearing demand               |   |                          | 14,975,663 |                     |   | 132,349                       |   |   | 3.51 |   |   | 14,597,277 |   |   | 118,085 |   |   | 3.24 |   |   | 12,638,411 |   |   | 68,100 |   |   | 2.14 |   |
| Time                deposits                         |   |                          | 3,344,257  |                     |   | 32,667                        |   |   | 3.88 |   |   | 3,088,653 |   |   | 25,949 |   |   | 3.37 |   |   | 2,734,408 |   |   | 18,760 |   |   | 2.72 |   |
| Public                funds                          |   |                          | 1,470,116  |                     |   | 19,708                        |   |   | 5.32 |   |   | 1,224,298 |   |   | 15,225 |   |   | 4.99 |   |   | 842,894 |   |   | 7,354 |   |   | 3.46 |   |
| Total                deposits                        |   |                          | 30,382,712 |                     |   | 255,044                       |   |   | 3.33 |   |   | 29,254,691 |   |   | 223,416 |   |   | 3.06 |   |   | 24,343,164 |   |   | 129,429 |   |   | 2.11 |   |
|                                                 |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                borrowed money                  |   |                          | 1,543,210  |                     |   | 20,392                        |   |   | 5.24 |   |   | 1,624,229 |   |   | 19,809 |   |   | 4.89 |   |   | 541,119 |   |   | 4,697 |   |   | 3.44 |   |
| Long-term                debt                        |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 163,043 |   |   | 2,339 |   |   | 5.69 |   |
| Total                deposits and interest-bearing   |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities                                          |   |                          | 31,925,922 |                     |   | 275,436                       |   |   | 3.42 |   |   | 30,878,920 |   |   | 243,225 |   |   | 3.16 |   |   | 25,047,326 |   |   | 136,465 |   |   | 2.16 |   |
| Noninterest-bearing                funds (net)       |   |                          | 7,919,242  |                     |   |                          |   |   |   |   |   | 7,557,036 |   |   |   |   |   |   |   |   | 6,589,360 |   |   |   |   |   |   |   |
| Total                sources to fund earning assets  |   | $                             | 39,845,164 |                     |   | 275,436                       |   |   | 2.74 |   | $ | 38,435,956 |   |   | 243,225 |   |   | 2.54 |   | $ | 31,636,686 |   |   | 136,465 |   |   | 1.71 |   |
|                                                 |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income and               |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| margin                tax-equivalent basis           |   |                          |       |                     | $      | 328,163                       |   |   | 3.27 | % |   |   |   | $ | 325,020 |   |   | 3.39 | % |   |   |   | $ | 292,459 |   |   | 3.67 | % |
| **Other                Balances**                    |   |                          |       |                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and due from banks               |   | $                             | 1,219,806  |                     |   |                          |   |   |   |   | $ | 1,278,137 |   |   |   |   |   |   |   | $ | 1,306,848 |   |   |   |   |   |   |   |
| Other                assets                          |   |                          | 2,359,885  |                     |   |                          |   |   |   |   |   | 2,314,307 |   |   |   |   |   |   |   |   | 1,845,602 |   |   |   |   |   |   |   |
| Total                assets                          |   |                          | 43,279,878 |                     |   |                          |   |   |   |   |   | 41,888,789 |   |   |   |   |   |   |   |   | 34,644,396 |   |   |   |   |   |   |   |
| Total                deposits                        |   |                          | 38,772,316 |                     |   |                          |   |   |   |   |   | 37,486,585 |   |   |   |   |   |   |   |   | 31,788,250 |   |   |   |   |   |   |   |
| Demand                deposits (noninterest-bearing) |   |                          | 8,389,604  |                     |   |                          |   |   |   |   |   | 8,231,894 |   |   |   |   |   |   |   |   | 7,445,086 |   |   |   |   |   |   |   |
| Other                liabilities                     |   |                          | 321,225    |                     |   |                          |   |   |   |   |   | 299,622 |   |   |   |   |   |   |   |   | 240,177 |   |   |   |   |   |   |   |
| Stockholders’                equity            |   |                          | 2,643,127  |                     |   |                          |   |   |   |   |   | 2,478,353 |   |   |   |   |   |   |   |   | 1,911,807 |   |   |   |   |   |   |   |

| Notes  | - | Weighted                average yields on tax-exempt obligations have been computed on a                tax-equivalent basis assuming a federal tax rate of                35%. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | Non-accrual                loans have been included in the average loan                balance.                                                                                 |

----

**Noninterest      Income**

|                                   |   |                                                        |   |
|----------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                                   |   | **Three                Months Ended****September                30,** |   | **Nine                Months Ended****September                30,** |   |
|                                   |   | **2006**                                                              |   | **2005** |   | **2006** |   | **2005** |   |
| Other                operating income: |   |                                                                  |   |   |   |   |   |   |   |
| Insurance                              |   | $                                                                     | 21,189 |   | $ | 19,539 |   | $ | 63,706 |   | $ | 58,079 |   |
| Capital                Markets         |   |                                                                  | 6,851  |   |   | 5,268 |   |   | 20,348 |   |   | 18,956 |   |
| Loan                Brokerage Fees     |   |                                                                  | 2,386  |   |   | 7,378 |   |   | 6,505 |   |   | 13,086 |   |
| Other                                  |   |                                                                  | 22,695 |   |   | 14,578 |   |   | 62,586 |   |   | 41,411 |   |
| Total                other             |   | $                                                                     | 53,121 |   | $ | 46,763 |   | $ | 153,145 |   | $ | 131,532 |   |

**Noninterest      Expense**

|                                                   |   |                                                                  |   |                                                                 |   |     |   |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|----------|--------|
|                                                   |   | **Three                Months Ended****September                30,** |   | **Nine                Months Ended****September                30,** |   |
|                                                   |   | **2006**                                                              |   | **2005**                                                             |   | **2006** |   | **2005** |   |
| Other                noninterest expense:              |   |                                                                  |   |                                                                 |   |     |   |   |   |
| Business                development costs              |   | $                                                                     | 8,716  |                                                                 | $      | 8,589    |   | $ | 30,985 |   | $ | 29,359 |   |
| Bank-card                related service charges       |   |                                                                  | 14,715 |                                                                 |   | 11,601   |   |   | 41,248 |   |   | 34,825 |   |
| Professional                services/Insurance         |   |                                                                  | 14,047 |                                                                 |   | 5,805    |   |   | 35,450 |   |   | 24,663 |   |
| Provision                for non-credit-related losses |   |                                                                  | 6,858  |                                                                 |   | 6,378    |   |   | 21,566 |   |   | 20,693 |   |
| Other                                                  |   |                                                                  | 26,026 |                                                                 |   | 20,485   |   |   | 78,052 |   |   | 58,935 |   |
| Total                other                             |   | $                                                                     | 70,362 |                                                                 | $      | 52,858   |   | $ | 207,301 |   | $ | 168,475 |   |

----

**Loan      and Asset Quality**

----

|                                                        |   | **September                30,****2006** |   | **June                30,****2006** |   | **March                31,****2006** |   | **December                31,****2005** |   | **September                30,****2005** |   |
|-------------------------------------------------------------|--------|------------------------------------------|--------|-------------------------------------|--------|--------------------------------------|--------|-----------------------------------------|--------|------------------------------------------|--------|
| Non-accrual                loans:                           |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |
| Commercial                                                  |   | $                                        | 33,658 |                                | $      | 34,904                               |   | $                                       | 16,975 |                                     | $      | 16,712 |   | $ | 16,926 |   |
| Consumer                                                    |   |                                     | 9,325  |                                |   | 8,927                                |   |                                    | 9,285  |                                     |   | 8,834 |   |   | 8,559 |   |
| Real                estate:                                 |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Construction                                                |   |                                     | 496    |                                |   | 1,708                                |   |                                    | 1,726  |                                     |   | 1,763 |   |   | 1,882 |   |
| Mortgage                                                    |   |                                     | 1,828  |                                |   | 2,523                                |   |                                    | 2,096  |                                     |   | 4,329 |   |   | 3,353 |   |
| Total                non-accrual loans                      |   |                                     | 45,307 |                                |   | 48,062                               |   |                                    | 30,082 |                                     |   | 31,638 |   |   | 30,720 |   |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Restructured                loans:                          |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Commercial                                                  |   |                                     | -      |                                |   | 2,941                                |   |                                    | 3,037  |                                     |   | 3,133 |   |   | 3,230 |   |
| Total                restructured loans                     |   |                                     | -      |                                |   | 2,941                                |   |                                    | 3,037  |                                     |   | 3,133 |   |   | 3,230 |   |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Total                non-performing loans                   |   |                                     | 45,307 |                                |   | 51,003                               |   |                                    | 33,119 |                                     |   | 34,771 |   |   | 33,950 |   |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Other                real estate/foreclosed assets          |   |                                     | 2,022  |                                |   | 1,369                                |   |                                    | 435    |                                     |   | 279 |   |   | 310 |   |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Total                non-performing assets                  |   |                                     | 47,329 |                                |   | 52,372                               |   |                                    | 33,554 |                                     |   | 35,050 |   |   | 34,260 |   |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Loans                past due 90 days or more               |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| and                still accruing                           |   |                                     | 441    |                                |   | 583                                  |   |                                    | 332    |                                     |   | 248 |   |   | 177 |   |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Total                non-performing assets and              |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| loans                past due 90 days or more               |   | $                                        | 47,770 |                                | $      | 52,955                               |   | $                                       | 33,886 |                                     | $      | 35,298 |   | $ | 34,437 |   |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Total                non-performing loans as a              |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| percentage                of total period-end loans         |   |                                     | 0.31   | %                                   |   | 0.36                                 | %      |                                    | 0.25   | %                                        |   | 0.27 | % |   | 0.30 | % |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Total                non-performing assets as a             |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| percentage                of total period-end assets        |   |                                     | 0.11   | %                                   |   | 0.12                                 | %      |                                    | 0.08   | %                                        |   | 0.09 | % |   | 0.09 | % |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Total                non-performing assets and loans        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| past                due 90 days or more as a                |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| percentage                of total period-end assets        |   |                                     | 0.11   | %                                   |   | 0.12                                 | %      |                                    | 0.08   | %                                        |   | 0.09 | % |   | 0.09 | % |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Allowance                for credit losses as a percentage  |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| of                total non-performing loans                |   |                                     | 341    | %                                   |   | 291                                  | %      |                                    | 432    | %                                        |   | 407 | % |   | 409 | % |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Allowance                for credit losses as a percentage  |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| of                total period-end loans                    |   |                                     | 1.05   | %                                   |   | 1.04                                 | %      |                                    | 1.06   | %                                        |   | 1.12 | % |   | 1.23 | % |
|                                                        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| Total                non-performing assets and loans        |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| past                due 90 days or more as a                |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| percentage                of stockholders’ equity and |   |                                     |   |                                |   |                                 |   |                                    |   |                                     |   |   |   |   |   |   |
| allowance                for credit losses                  |   |                                     | 2      | %                                   |   | 2                                    | %      |                                    | 1      | %                                        |   | 1 | % |   | 2 | % |

----

|                                                         |   | **Three                Months Ended** |    | **Nine                Months Ended** |   | **Year                Ended**   |   |
|--------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|---------------------------------|--------|
|                                                         |   | **September                30,**      |    | **September                30,**     |   | **December                31,** |   |
|                                                         |   | **2006**                              |    | **2005**                             |   | **2006**                        |   | **2005** |   | **2005** |   |
| Balance                at beginning of period                |   | $                                     | 148,383 |                                 | $      | 141,325                         |   | $ | 141,464 |   | $ | 135,620 |   | $ | 135,620 |   |
| Provisions                charged to operating expenses      |   |                                  | 9,499   |                                 |   | 3,000                           |   |   | 23,500 |   |   | 13,750 |   |   | 19,150 |   |
|                                                         |   |                                  | 157,882 |                                 |   | 144,325                         |   |   | 164,964 |   |   | 149,370 |   |   | 154,770 |   |
|                                                         |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Recoveries                on loans previously charged-off:   |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                   |   |                                  | 1,707   |                                 |   | 930                             |   |   | 4,335 |   |   | 1,920 |   |   | 2,546 |   |
| Consumer                                                     |   |                                  | 237     |                                 |   | 245                             |   |   | 1,372 |   |   | 1,332 |   |   | 2,566 |   |
| Commercial                real estate                        |   |                                  | 57      |                                 |   | 30                              |   |   | 375 |   |   | 80 |   |   | 80 |   |
| Total                recoveries                              |   |                                  | 2,001   |                                 |   | 1,205                           |   |   | 6,082 |   |   | 3,332 |   |   | 5,192 |   |
|                                                         |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Loans                charged-off:                            |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                   |   |                                  | (2,968  | )                                    |   | (5,287                          | )      |   | (10,182 | ) |   | (9,102 | ) |   | (13,944 | ) |
| Consumer                                                     |   |                                  | (2,119  | )                                    |   | (1,318                          | )      |   | (5,803 | ) |   | (3,720 | ) |   | (5,912 | ) |
| Commercial                real estate                        |   |                                  | (224    | )                                    |   | (22                             | )      |   | (489 | ) |   | (977 | ) |   | (1,136 | ) |
| Total                charge-offs                             |   |                                  | (5,311  | )                                    |   | (6,627                          | )      |   | (16,474 | ) |   | (13,799 | ) |   | (20,992 | ) |
| Net                charge-offs                               |   |                                  | (3,310  | )                                    |   | (5,422                          | )      |   | (10,392 | ) |   | (10,467 | ) |   | (15,800 | ) |
|                                                         |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Allowance                for credit loss acquired bank       |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   | 2,494 |   |
|                                                         |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Balance                at end of period                      |   | $                                     | 154,572 |                                 | $      | 138,903                         |   | $ | 154,572 |   | $ | 138,903 |   | $ | 141,464 |   |
|                                                         |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Net                charge-offs as a percentage of            |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| average                loans outstanding                     |   |                                  | 0.09    | %                                    |   | 0.20                            | %      |   | 0.10 | % |   | 0.13 | % |   | 0.15 | % |
|                                                         |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Net                Reserve Additions                         |   | $                                     | 6,189   |                                 | $      | 2,422                           |   | $ | 13,108 |   | $ | 3,283 |   | $ | 5,844 |   |
|                                                         |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Components:                                                  |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Allowance                for loan and lease losses           |   | $                                     | 146,791 |                                 | $      | 138,903                         |   | $ | 146,791 |   | $ | 138,903 |   | $ | 133,664 |   |
| Allowance                for unfunded credit commitments (1) |   |                                  | 7,781   |                                 |   |                            |   |   | 7,781 |   |   |   |   |   | 7,800 |   |
| Total                allowance for credit losses             |   | $                                     | 154,572 |                                 | $      | 138,903                         |   | $ | 154,572 |   | $ | 138,903 |   | $ | 141,464 |   |
|                                                         |   |                                  |    |                                 |   |                            |   |   |   |   |   |   |   |   |   |   |

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**Forward-Looking      Statements**

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

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

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

**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. |

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**SIGNATURES**

|                            |   | COMMERCE                BANCORP, INC.                       |
|---------------------------------|--------|-------------------------------------------------------------|
|                            |   | (Registrant)                                                |
|                            |   |                                                        |
|                            |   |                                                        |
|                            |   |                                                        |
|                            |   |                                                        |
|                            |   |                                                        |
|                            |   |                                                        |
|                            |   |                                                        |
|                            |   |                                                        |
|                            |   |                                                        |
|                            |   |                                                        |
| NOVEMBER                9, 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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