Commerce Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets
	(unaudited)
		June 30,		March 31,			Linked Quarter			June 30,
	(dollars in thousands)	2005		2005			% Change			2004			% Change
Assets	Cash and due from banks	$	1,400,346	$	1,066,051			31	%	$	1,081,459			29	%
	Federal funds sold		13,700		10,000			37			8,500			61
	Cash and cash equivalents		1,414,046		1,076,051			31			1,089,959			30
	Loans held for sale		314,437		64,087			391			41,047			666
	Trading securities		183,894		206,113			(11	)		182,105			1
	Securities available for sale		7,676,837		7,950,643			(3	)		12,131,104			(37	)
	Securities held to maturity		11,708,266		11,292,995			4			3,772,204			210
	Loans:
	Commercial real estate:
	Investor developer		1,626,886		1,553,908			5			1,308,103			24
	Residential construction		245,369		225,239			9			174,431			41
			1,872,255		1,779,147			5			1,482,534			26
	Commercial loans:
	Term		1,505,965		1,376,663			9			1,111,848			35
	Line of credit		1,343,279		1,221,096			10			1,046,104			28
	Demand		24,000		0			0			0			0
			2,873,244		2,597,759			11			2,157,952			33
	Owner-occupied		2,229,453		2,100,289			6			1,805,336			23
			5,102,697		4,698,048			9			3,963,288			29
	Consumer:
	Mortgages (1-4 family residential)		1,443,602		1,447,365			(0	)		1,111,049			30
	Installment		167,663		134,965			24			134,710			24
	Home equity		2,024,130		1,845,963			10			1,573,454			29
	Credit lines		78,370		70,405			11			65,421			20
			3,713,765		3,498,698			6			2,884,634			29
	Total loans		10,688,717		9,975,893			7			8,330,456			28
	Less allowance for loan losses		141,325		139,289			1			124,688			13
			10,547,392		9,836,604			7			8,205,768			29
	Bank premises and equipment, net		1,135,035		1,077,488			5			906,455			25
	Other assets		383,029		365,995			5			410,029			(7	)
	Total assets	$	33,362,936	$	31,869,976			5	%	$	26,738,671			25	%
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	7,540,381	$	6,877,932			10	%	$	5,622,574			34	%
	Interest-bearing		11,966,515		12,402,424			(4	)		9,632,178			24
	Savings		7,504,035		6,811,580			10			5,597,767			34
	Time		3,508,132		3,396,022			3			3,209,229			9
	Total deposits		30,519,063		29,487,958			3			24,061,748			27
	Other borrowed money		567,346		136,251			316			944,040			(40	)
	Other liabilities		227,036		339,808			(33	)		204,768			11
	Long-term debt		200,000		200,000			0			200,000			0
			31,513,445		30,164,017			4			25,410,556			24
Stockholders'	Common stock		164,178		162,431			1			78,658			109
Equity	Capital in excess of par value		1,024,851		988,848			4			936,539			9
	Retained earnings		664,803		603,338			10			446,260			49
	Accumulated other comprehensive (loss) income		8,390		(35,927	)		(123	)		(122,003	)		(107	)
			1,862,222		1,718,690			8			1,339,454			39
	Less treasury stock, at cost		12,731		12,731			0			11,339			12
	Total stockholders' equity		1,849,491		1,705,959			8			1,328,115			39
	Total liabilities and stockholders' equity	$	33,362,936	$	31,869,976			5	%	$	26,738,671			25	%

Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
	(dollars in thousands)	June 30,						March 31, 2005									June 30, 2004
		2005			Actual			$ Change			% Change			Actual			$ Change			% Change
Assets	Cash and due from banks	$	1,400,346		$	1,066,051		$	334,295			31	%	$	1,081,459		$	318,887			29	%
	Federal funds sold		13,700			10,000			3,700			37			8,500			5,200			61
	Cash and cash equivalents		1,414,046			1,076,051			337,995			31			1,089,959			324,087			30
	Loans held for sale		314,437			64,087			250,350			391			41,047			273,390			666
	Trading securities		183,894			206,113			(22,219	)		(11	)		182,105			1,789			1
	Securities available for sale		7,676,837			7,950,643			(273,806	)		(3	)		12,131,104			(4,454,267	)		(37	)
	Securities held to maturity		11,708,266			11,292,995			415,271			4			3,772,204			7,936,062			210
	Loans		10,688,717			9,975,893			712,824			7			8,330,456			2,358,261			28
	Less allowance for loan losses		141,325			139,289			2,036			1			124,688			16,637			13
			10,547,392			9,836,604			710,788			7			8,205,768			2,341,624			29
	Reserve %		1.32	%		1.40	%								1.50	%
	Bank premises and equipment, net		1,135,035			1,077,488			57,547			5			906,455			228,580			25
	Other assets		383,029			365,995			17,034			5			410,029			(27,000	)		(7	)
	Total assets	$	33,362,936		$	31,869,976		$	1,492,960			5	%	$	26,738,671		$	6,624,265			25	%
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	7,540,381		$	6,877,932		$	662,449			10	%	$	5,622,574		$	1,917,807			34	%
	Interest-bearing		11,966,515			12,402,424			(435,909	)		(4	)		9,632,178			2,334,337			24
	Savings		7,504,035			6,811,580			692,455			10			5,597,767			1,906,268			34
	Time		3,508,132			3,396,022			112,110			3			3,209,229			298,903			9
	Total deposits		30,519,063			29,487,958			1,031,105			3			24,061,748			6,457,315			27
	Core deposits		29,624,831			28,058,156			1,566,675			6			23,108,553			6,516,278			28
	Total other liabilities		994,382			676,059			318,323			47			1,348,808			(354,426	)		(26	)
			31,513,445			30,164,017			1,349,428			4			25,410,556			6,102,889			24
Stockholders' Equity			1,849,491			1,705,959			143,532			8			1,328,115			521,376			39
	Total liabilities and stockholders' equity	$	33,362,936		$	31,869,976		$	1,492,960			5	%	$	26,738,671		$	6,624,265			25	%

Commerce Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
		June 30,		December 31,
	(dollars in thousands)	2005		2004
Assets	Cash and due from banks	$	1,400,346	$	1,050,806
	Federal funds sold		13,700		0
	Cash and cash equivalents		1,414,046		1,050,806
	Loans held for sale		314,437		44,072
	Trading securities		183,894		169,103
	Securities available for sale		7,676,837		8,044,150
	Securities held to maturity		11,708,266		10,463,658
	(market value 06/05-$11,692,632; 2004-$10,430,451)
	Loans		10,688,717		9,454,611
	Less allowance for loan losses		141,325		135,620
			10,547,392		9,318,991
	Bank premises and equipment, net		1,135,035		1,059,519
	Other assets		383,029		351,346
	Total assets	$	33,362,936	$	30,501,645
Liabilities	Deposits:
	Demand:
	Noninterest-bearing	$	7,540,381	$	6,406,614
	Interest-bearing		11,966,515		11,604,066
	Savings		7,504,035		6,490,263
	Time		3,508,132		3,157,942
	Total deposits		30,519,063		27,658,885
	Other borrowed money		567,346		661,195
	Other liabilities		227,036		315,860
	Long-term debt		200,000		200,000
			31,513,445		28,835,940
Stockholders'	Common stock, 164,178,009 shares issued (160,635,618 shares in 2004)		164,178		160,636
Equity	Capital in excess of par value		1,024,851		951,476
	Retained earnings		664,803		543,978
	Accumulated other comprehensive (loss) income		8,390		20,953
			1,862,222		1,677,043
	Less treasury stock, at cost, 838,758 shares (795,610 shares in 2004)		12,731		11,338
	Total stockholders' equity		1,849,491		1,665,705
	Total liabilities and stockholders' equity	$	33,362,936	$	30,501,645

	Commerce Bancorp, Inc. and Subsidiaries
	Consolidated Statements of Income
	(unaudited)
		Three Months Ended							Six Months Ended
		June 30,							June 30,
	(dollars in thousands, except per share amounts)	2005		2004		% Change			2005		2004		% Change
Interest	Interest and fees on loans	$	161,839	$	113,947		42	%	$	307,057	$	222,160		38	%
income	Interest on investments		234,970		177,929		32			459,916		341,428		35
	Other interest		889		154		477			1,205		494		144
	Total interest income		397,698		292,030		36			768,178		564,082		36
Interest	Interest on deposits:
expense	Demand		53,755		18,729		187			100,426		34,672		190
	Savings		23,258		10,216		128			42,338		18,002		135
	Time		22,281		14,264		56			40,679		28,907		41
	Total interest on deposits		99,294		43,209		130			183,443		81,581		125
	Interest on other borrowed money		6,917		1,052		558			11,327		1,500		655
	Interest on long-term debt		3,020		3,020		0			6,040		6,040		0
	Total interest expense		109,231		47,281		131			200,810		89,121		125
	Net interest income		288,467		244,749		18			567,368		474,961		19
	Provision for loan losses		4,500		10,748		(58	)		10,750		20,248		(47	)
	Net interest income after provision for loan losses		283,967		234,001		21			556,618		454,713		22
Noninterest	Deposit charges and service fees		68,802		52,717		31			128,766		98,198		31
income	Other operating income		42,152		38,923		8			84,769		79,250		7
	Net investment securities gains		4,689		635		638			5,797		1,059		447
	Total noninterest income		115,643		92,275		25			219,332		178,507		23
	Total Revenues		404,110		337,024		20			786,700		653,468		20
Noninterest	Salaries and benefits		127,552		104,110		23			246,853		201,450		23
expense	Occupancy		39,110		27,949		40			77,103		56,059		38
	Furniture and equipment		28,895		27,001		7			57,821		51,180		13
	Office		12,577		10,920		15			25,254		21,840		16
	Marketing		8,456		9,278		(9	)		14,257		17,974		(21	)
	Other		61,909		46,997		32			115,617		90,002		28
	Total noninterest expenses		278,499		226,255		23			536,905		438,505		22
	Income before income taxes		121,111		100,021		21			239,045		194,715		23
	Provision for federal and state income taxes		41,702		33,786		23			82,499		66,505		24
	Net income	$	79,409	$	66,235		20	%	$	156,546	$	128,210		22	%
	Net income per common and common equivalent share:
	Basic	$	0.49	$	0.42		17	%	$	0.97	$	0.82		18	%
	Diluted	$	0.46	$	0.40		15		$	0.91	$	0.77		18
	Average common and common equivalent shares outstanding:
	Basic		162,287		155,960		4			161,547		155,144		4
	Diluted		177,202		172,520		3			176,724		171,787		3
	Cash dividends, common stock	$	0.11	$	0.10		10	%	$	0.22	$	0.19		16	%

Commerce Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
		Three Months Ended
		June 30,			March 31,						June 30,
	(dollars in thousands, except per share amounts)	2005			2005			% Change			2004			% Change
Interest	Interest and fees on loans	$	161,839		$	145,218			11	%	$	113,947			42	%
income	Interest on investments		234,970			224,946			4			177,929			32
	Other interest		889			316			181			154			477
	Total interest income		397,698			370,480			7			292,030			36
Interest	Interest on deposits:
expense	Demand		53,755			46,671			15			18,729			187
	Savings		23,258			19,080			22			10,216			128
	Time		22,281			18,398			21			14,264			56
	Total interest on deposits		99,294			84,149			18			43,209			130
	Interest on other borrowed money		6,917			4,410			57			1,052			558
	Interest on long-term debt		3,020			3,020			0			3,020			0
	Total interest expense		109,231			91,579			19			47,281			131
	Net interest income		288,467			278,901			3			244,749			18
	Provision for loan losses		4,500			6,250			(28	)		10,748			(58	)
	Net interest income after provision for loan losses		283,967			272,651			4			234,001			21
Noninterest	Deposit charges and service fees		68,802			59,964			15			52,717			31
income	Other operating income		42,152			42,617			(1	)		38,923			8
	Net investment securities gains		4,689			1,108			323			635			638
	Total noninterest income		115,643			103,689			12			92,275			25
	Total Revenues		404,110			382,590			6			337,024			20
Noninterest	Salaries and benefits		127,552			119,301			7			104,110			23
expense	Occupancy		39,110			37,993			3			27,949			40
	Furniture and equipment		28,895			28,926			(0	)		27,001			7
	Office		12,577			12,677			(1	)		10,920			15
	Marketing		8,456			5,801			46			9,278			(9	)
	Other		61,909			53,708			15			46,997			32
	Total noninterest expenses		278,499			258,406			8			226,255			23
	Income before income taxes		121,111			117,934			3			100,021			21
	Provision for federal and state income taxes		41,702			40,797			2			33,786			23
	Net income	$	79,409		$	77,137			3	%	$	66,235			20	%
	Net income per common and common equivalent share:
	Basic	$	0.49		$	0.48			2	%	$	0.42			17	%
	Diluted	$	0.46		$	0.45			2		$	0.40			15
	Average common and common equivalent shares outstanding:
	Basic		162,287			160,798			1			155,960			4
	Diluted		177,202			176,323			0			172,520			3
	Cash dividends, common stock	$	0.11		$	0.11			0	%	$	0.10			10	%
	Return on average assets		0.97	%		0.99	%					1.03	%
	Return on average equity		17.68			17.98						19.86

Commerce Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2005			2004			Change			2005			2004			Change
	(dollars and shares in thousands)									(dollars and shares in thousands)
Income Statement Data:
Net interest income	$	288,467		$	244,749			18	%	$	567,368		$	474,961			19	%
Provision for loan losses		4,500			10,748			(58	)		10,750			20,248			(47	)
Noninterest income		115,643			92,275			25			219,332			178,507			23
Total revenues		404,110			337,024			20			786,700			653,468			20
Noninterest expense		278,499			226,255			23			536,905			438,505			22
Net income		79,409			66,235			20			156,546			128,210			22
Per Share Data:
Net income - Basic	$	0.49		$	0.42			17	%	$	0.97		$	0.82			18	%
Net income - Diluted		0.46			0.40			15			0.91			0.77			18
Book value - Basic										$	11.32		$	8.49			33	%
Book value - Diluted if converted											11.48			8.82			30
Revenue per share - Diluted	$	9.12		$	7.81			17	%	$	8.90		$	7.61			17	%
Weighted Average Shares Outstanding:
Basic		162,287			155,960						161,547			155,144
Diluted		177,202			172,520						176,724			171,787
Balance Sheet Data:
Total assets										$	33,362,936		$	26,738,671			25	%
Loans (net)											10,547,392			8,205,768			29
Allowance for loan losses											141,325			124,688			13
Securities available for sale											7,676,837			12,131,104			(37	)
Securities held to maturity											11,708,266			3,772,204			210
Total deposits											30,519,063			24,061,748			27
Core deposits											29,624,831			23,108,553			28
Convertible Trust Capital Securities - Commerce Capital Trust II											200,000			200,000			-
Stockholders' equity											1,849,491			1,328,115			39
Capital:
Stockholders' equity to total assets											5.54	%		4.97	%
Risk-based capital ratios:
Tier I											12.41			12.37
Total capital											13.31			13.31
Leverage ratio											6.20			6.33
Performance Ratios:
Cost of funds		1.46	%		0.81	%					1.39	%		0.80	%
Net interest margin		3.93			4.29						3.98			4.34
Return on average assets		0.97			1.03						0.98			1.04
Return on average total stockholders' equity		17.68			19.86						17.82			18.87

The following summary presents information regarding non-performing loans and assets as of June 30, 2005 and the preceding four quarters (dollar amounts in thousands).
	June 30,			March 31,			December 31,			September 30,			June 30,
	2005			2005			2004			2004			2004
Non-accrual loans:
Commercial	$	20,467		$	18,376		$	17,874		$	22,647		$	17,382
Consumer		8,641			8,723			10,138			9,784			11,675
Commercial real estate:
Construction		178			178			-			-			-
Mortgage		3,086			1,290			1,317			1,251			675
Total non-accrual loans		32,372			28,567			29,329			33,682			29,732
Restructured loans:
Commercial		3,326			3,422			3,518			3,614			1
Consumer		-			-			-			-			-
Commercial real estate:
Construction		-			-			-			-			-
Mortgage		-			-			-			-			-
Total restructured loans		3,326			3,422			3,518			3,614			1
Total non-performing loans		35,698			31,989			32,847			37,296			29,733
Other real estate		349			777			626			972			653
Total non-performing assets		36,047			32,766			33,473			38,268			30,386
Loans past due 90 days or more
and still accruing		165			233			602			614			318
Total non-performing assets and
loans past due 90 days or more	$	36,212		$	32,999		$	34,075		$	38,882		$	30,704
Total non-performing loans as a
percentage of total period-end
loans		0.33	%		0.32	%		0.35	%		0.42	%		0.36	%
Total non-performing assets as a
percentage of total period-end assets		0.11	%		0.10	%		0.11	%		0.13	%		0.11	%
Total non-performing assets and loans
past due 90 days or more as a
percentage of total period-end assets		0.11	%		0.10	%		0.11	%		0.14	%		0.11	%
Allowance for loan losses as a
percentage of total non-performing
loans		396	%		435	%		413	%		353	%		419	%
Allowance for loan losses as a percentage
of total period-end loans		1.32	%		1.40	%		1.43	%		1.48	%		1.50	%
Total non-performing assets and loans
past due 90 days or more as a
percentage of stockholders' equity and
allowance for loan losses		2	%		2	%		2	%		2	%		2	%

The following table presents, for the periods indicated, an analysis of the allowance for loan losses and other related data: (dollar amounts in thousands)
													Year
	Three Months Ended						Six Months Ended						Ended
	06/30/05			06/30/04			06/30/05			06/30/04			12/31/04
Balance at beginning of period	$	139,289		$	117,329		$	135,620		$	112,057		$	112,057
Provisions charged to operating expenses		4,500			10,748			10,750			20,248			39,238
		143,789			128,077			146,370			132,305			151,295
Recoveries on loans charged-off:
Commercial		339			104			990			260			1,000
Consumer		254			101			1,087			371			1,123
Commercial real estate		-			1			50			48			52
Total recoveries		593			206			2,127			679			2,175
Loans charged-off:
Commercial		(1,213	)		(2,675	)		(3,815	)		(4,998	)		(9,416	)
Consumer		(915	)		(916	)		(2,402	)		(1,676	)		(6,733	)
Commercial real estate		(929	)		(4	)		(955	)		(1,622	)		(1,701	)
Total charge-offs		(3,057	)		(3,595	)		(7,172	)		(8,296	)		(17,850	)
Net charge-offs		(2,464	)		(3,389	)		(5,045	)		(7,617	)		(15,675	)
Balance at end of period	$	141,325		$	124,688		$	141,325		$	124,688		$	135,620
Net charge-offs as a percentage of
average loans outstanding		0.09	%		0.17	%		0.10	%		0.19	%		0.19	%
Net Reserve Additions	$	2,036		$	7,359		$	5,705		$	12,631		$	23,563

Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	June 2005							March 2005							June 2004
	Average				Average			Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$	18,821,647	$	231,275		4.93	%	$	18,192,721	$	221,886		4.95	%	$	14,747,643	$	173,678		4.74	%
Tax-exempt		374,448		3,257		3.49			405,771		3,313		3.31			290,200		4,465		6.19
Trading		178,037		2,427		5.47			111,732		1,395		5.06			174,578		2,075		4.78
Total investment securities		19,374,132		236,959		4.91			18,710,224		226,594		4.91			15,212,421		180,218		4.76
Federal funds sold		117,491		889		3.03			50,311		316		2.55			62,357		154		0.99
Loans
Commercial mortgages		3,707,963		59,684		6.46			3,527,626		55,095		6.33			3,021,768		45,333		6.03
Commercial		2,569,001		41,417		6.47			2,327,438		35,581		6.20			1,961,351		25,477		5.22
Consumer		3,720,529		55,819		6.02			3,423,574		49,974		5.92			2,767,826		39,079		5.68
Tax-exempt		426,032		7,568		7.12			391,510		7,028		7.28			335,505		6,243		7.48
Total loans		10,423,525		164,488		6.33			9,670,148		147,678		6.19			8,086,450		116,132		5.78
Total earning assets	$	29,915,148	$	402,336		5.39	%	$	28,430,683	$	374,588		5.35	%	$	23,361,228	$	296,504		5.10	%
Sources of Funds
Interest-bearing liabilities
Savings	$	7,082,969	$	23,258		1.32	%	$	6,558,587	$	19,080		1.18	%	$	5,276,657	$	10,216		0.78	%
Interest bearing demand		12,094,680		53,755		1.78			11,924,947		46,671		1.59			9,643,771		18,729		0.78
Time deposits		2,668,791		16,085		2.42			2,566,074		13,740		2.17			2,507,526		11,378		1.82
Public funds		828,305		6,196		3.00			781,282		4,658		2.42			856,683		2,886		1.35
Total deposits		22,674,745		99,294		1.76			21,830,890		84,149		1.56			18,284,637		43,209		0.95
Other borrowed money		845,462		6,917		3.28			703,223		4,410		2.54			523,931		1,052		0.81
Long-term debt		200,000		3,020		6.06			200,000		3,020		6.12			200,000		3,020		6.07
Total deposits and interest-bearing liabilities		23,720,207		109,231		1.85			22,734,113		91,579		1.63			19,008,568		47,281		1.00
Noninterest-bearing funds (net)		6,194,941							5,696,570							4,352,660
Total sources to fund earning assets	$	29,915,148		109,231		1.46		$	28,430,683		91,579		1.31		$	23,361,228		47,281		0.81
Net interest income and
margin tax-equivalent basis			$	293,105		3.93	%			$	283,009		4.04	%			$	249,223		4.29	%
Other Balances
Cash and due from banks	$	1,241,372						$	1,180,375						$	1,163,942
Other assets		1,749,133							1,625,412							1,419,098
Total assets		32,763,128							31,096,724							25,822,157
Total deposits		29,661,511							28,220,513							23,541,453
Demand deposits (noninterest-bearing)		6,986,766							6,389,623							5,256,816
Other liabilities		259,873							256,677							222,779
Stockholders' equity		1,796,282							1,716,311							1,333,994
Allowance for loan losses		142,525							139,746							122,111
Notes -Weighted average yields on tax-exempt obligations have been computed on a tax-equivalent basis assuming a federal tax rate of 35%.
-Non-accrual loans have been included in the average loan balance.
-Consumer loans include loans held for sale.

Commerce Bancorp, Inc. and Subsidiaries
Computation of Net Income Per Share
(dollars in thousands, except per share amounts)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2005		2004		2005		2004
Basic:
Net income applicable to common stock	$	79,409	$	66,235	$	156,546	$	128,210
Average common shares outstanding		162,287		155,960		161,547		155,144
Net income per common share	$	0.49	$	0.42	$	0.97	$	0.82
Diluted:
Net income applicable to common stock	$	79,409	$	66,235	$	156,546	$	128,210
on a diluted basis
Interest expense on trust preferred securities		1,963		1,963		3,926		3,926
	$	81,372	$	68,198	$	160,472	$	132,136
Average common shares outstanding		162,287		155,960		161,547		155,144
Additional shares considered in diluted
computation assuming:
Exercise of stock options		7,333		8,978		7,595		9,061
Conversion of trust preferred securities		7,582		7,582		7,582		7,582
Average common and common equivalent
shares outstanding		177,202		172,520		176,724		171,787
Net income per common and common
equivalent share	$	0.46	$	0.40	$	0.91	$	0.77
Restated for the March 2005 stock split