Pennsylvania Commerce Bancorp Net Income Up 62%; Loans Increase 18%

HARRISBURG, Pa.--(Business Wire)--Pennsylvania Commerce Bancorp, Inc. (NASDAQ Global Select Market
Symbol:COBH), parent company of Commerce Bank/Harrisburg, N.A.,
reported increased assets, loans and net income for the fourth quarter
of 2007, announced Gary L. Nalbandian, Chairman.

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Fourth Quarter 2007 Financial Highlights
----------------------------------------------------------------------
%
12/31/07 12/31/06 Change (1)
-------- -------- ------------
Total assets $1.98 Billion $1.87 Billion 6%

Total core deposits $1.55 Billion $1.58 Billion (2)%

Total loans (net) $1.15 Billion $ 973 Million 18%

----------------------------------------------------------------------
Total revenues $23.0 Million $18.2 Million 26%

Net income $ 2.5 Million $ 1.5 Million 62%

Diluted net income per
share $0.38 $0.24 58%
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(1) Compared to Fourth Quarter Ended December 31, 2006
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Chairman's Statement

In commenting on the Company's financial results, Chairman
Nalbandian noted the following highlights:

-- Net income was $2.5 million, up 62% over the fourth quarter
one year ago.

-- Diluted net income per share was $0.38 for the fourth quarter,
a 58% increase over the fourth quarter of 2006.

-- Total revenues grew 26% for the fourth quarter of 2007 over
the fourth quarter one year ago.

-- Net interest income for the fourth quarter increased 29% over
the same period in 2006.

-- The Company's net interest margin for the fourth quarter
improved 24 basis points over the previous quarter and 57
basis points over the same quarter one year ago.

-- Deposit charges and service fees grew 25% for the fourth
quarter over the same period one year ago.

-- Shareholder equity increased $11.2 million, or 11%, to $112.3
million.

-- Return on average shareholder's equity improved to 8.83% for
the quarter vs. 6.00% for the fourth quarter of 2006.

-- The one year annual shareholders' return on COBH was 6% as
compared to minus 20% for the NASDAQ Bank Index.

-- Total assets reached $1.98 billion.

-- Net loans grew $173.6 million, or 18%, over the fourth quarter
one year ago.

-- Asset quality remains strong with net charge-offs for the
quarter of only 0.02% and a non-performing loan coverage ratio
of 366%.

2007 New Stores and Awards

-- During 2007 the Company opened 3 new stores, increasing the
total number of stores to 33 throughout its six-county
footprint.

-- New stores opened during 2007 were as follows:

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Location County
------------------------------ ------------------------------
Shillington Road Berks
Manheim Pike Lancaster
Linglestown Road Dauphin
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-- On the national stage, J.D. Power & Associates ranked Commerce
#1 in Customer Satisfaction in the Mid-Atlantic Region.

-- For the fourth straight year, Commerce Bank was voted Best
Bank by the Harrisburg Magazine Simply the Best Readers' Poll.

-- Pennsylvania Commerce Bancorp is an independent member of the
"Commerce Bank Network," a network of banks established by
Commerce Bancorp, Inc. (NYSE:CBH) based in Cherry Hill, N.J.

Income Statement

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Three months ended Twelve months ended
December 31, December 31,
----------------------- -------------------------
(dollars in
thousands, except % %
per share data) 2007 2006 Change 2007 2006 Change
----------------------------------------------------------------------
Total revenues $22,952 $18,190 26% $82,315 $71,543 15%
Total expenses 19,171 16,010 20% 70,807 59,294 19%
Net income 2,467 1,522 62% 7,001 7,254 (3)%
Diluted net income
per share $ 0.38 $ 0.24 58% $ 1.07 $ 1.12 (4)%
----------------------------------------------------------------------
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Total revenues (net interest income plus non-interest income) for
the fourth quarter increased $4.8 million, to $23.0 million, up 26%
over the fourth quarter of 2006. Total revenues for the year 2007
increased by $10.8 million, or 15%, over total revenues in 2006.

Net income totaled $2.5 million for the fourth quarter of 2007, a
62% increase over net income of $1.5 million for the fourth quarter of
2006. For the year ended December 31, 2007, net income totaled $7.0
million, down slightly from the $7.3 million figure recorded in 2006.
Net income per fully diluted share for the fourth quarter of 2007 was
$0.38, a 58% increase over the $0.24 recorded for the same period a
year ago. For the year 2007, fully diluted net income per share was
$1.07 vs. $1.12 for the year 2006.

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2007 totaled $16.8
million, an increase of $3.8 million, or 29%, over the $13.0 million
recorded a year ago. This increase was a result of continued strong
loan growth combined with improvement in the Company's net interest
margin. For the year ended December 31, 2007, net interest income
totaled $59.5 million, up $6.7 million, or 13%, over the $52.8 million
recorded in the year ended December 31, 2006.

The net interest margin for the fourth quarter of 2007 was 3.60%,
up 57 basis points over the 3.03% figure recorded in the fourth
quarter of 2006, and compared to 3.36% for the third quarter of 2007.
The improvement in net interest margin is the result of a significant
reduction in the Company's deposit and total cost of funds.

Net interest income, on a tax equivalent basis, totaled $17.1
million in the fourth quarter of 2007, an increase of $4.0 million, or
30%, over the fourth quarter one year ago. This figure was up $1.7
million over net interest income on a fully taxable basis recorded in
the third quarter of 2007.

Net Interest Income and Rate/Volume Analysis

As shown below, the increase in net interest income on a tax
equivalent basis was due to volume increases in the Company's earning
assets, as well as improvement in the net interest margin.

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(dollars in thousands) Net Interest Income
----------------------------------------------------------------------
December 31 Volume Rate Total %
2007 vs. 2006 Increase Change Increase Increase
----------------------------------------------------------------------
Quarter $1,227 $2,730 $3,957 30%
Twelve Months 3,686 3,536 7,222 14%
----------------------------------------------------------------------
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Noninterest Income

Noninterest income for the fourth quarter of 2007 totaled $6.1
million, up $932,000, or 18%, over $5.2 million a year ago. The growth
in noninterest income for the fourth quarter was reflected in
increased deposit charges and service fees as depicted below:

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Three months ended Twelve months ended
December 31, December 31,
--------------------- -----------------------
% %
(dollars in thousands) 2007 2006 Change 2007 2006 Change
----------------------------------------------------------------------
Deposit charges and
service fees $5,711 $4,574 25% $20,688 $16,816 23%
Other income 421 466 (10) 1,964 1,776 11
Subtotal 6,132 5,040 22 22,652 18,592 22
Net investment
securities gains - 160 - 171 160 7
----------------------------------------------------------------------
Total noninterest income $6,132 $5,200 18% $22,823 $18,752 22%
----------------------------------------------------------------------
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Noninterest income for the year 2007 increased $4.1 million, or
22%, from $18.8 million in 2006. Like the fourth quarter, the increase
was due to growth in the level of deposit charges and service fees.

Noninterest Expenses

Noninterest expenses for the fourth quarter of 2007 were $19.2
million, up 20%, over $16.0 million one year ago. The increases in
noninterest expenses for the quarter were widespread across all
categories, reflecting the Company's continued growth. Included in
noninterest expenses for the fourth quarter of 2007 are three full
months of costs related to two new stores opened in November 2006, as
well as costs for the three new stores all opened during the third
quarter 2007. Also contributing to the increase was a higher level of
regulatory expenses as well as FDIC insurance assessments that were
reintroduced to the banking industry starting January 1, 2007.
Excluding regulatory expenses and FDIC insurance assessments, total
noninterest expenses were up 11% for the fourth quarter of 2007 over
the same period in 2006 and were up 15% for the year 2007 vs. 2006.

Noninterest expenses for the year 2007 totaled $70.8 million, up
$11.5 million, or 19%, over the $59.3 million recorded during the same
period in 2006. This increase was primarily attributable to the same
costs as discussed in the previous paragraph.

Balance Sheet

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December 31,
---------------------
%
(dollars in thousands) 2007 2006 Change
----------------------------------------------------------------------
Total assets $1,979,011 $1,866,483 6%

Total loans (net) 1,146,629 973,033 18%

Core deposits 1,548,611 1,578,316 (2)%

Total deposits 1,560,896 1,616,777 (3)%
----------------------------------------------------------------------
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Lending

Total gross loans increased $174.7 million, or 18%, to $1.16
billion from $983 million one year ago, with the growth represented
across all loan categories. The composition of the Company's loan
portfolio is as follows:

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% of % of $ %
(dollars in
thousands) 12/31/07 Total 12/31/06 Total Increase Increase
----------------------------------------------------------------------
Commercial $ 361,374 31% $ 277,287 28% $ 84,087 30%
Owner occupied 150,679 13 123,573 13 27,106 22
----------------------------------------------------------------------
Total commercial 512,053 44 400,860 41 111,193 28
Consumer /
residential 301,667 26 281,498 29 20,169 7
Commercial real
estate 343,651 30 300,360 30 43,291 14
----------------------------------------------------------------------
Gross loans $1,157,371 100% $ 982,718 100% $174,653 18%
----------------------------------------------------------------------
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Asset Quality

The Company's asset quality ratios are highlighted below:

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Quarter Ended
---------------------------------------
December 31, September 30, December 31,
2007 2007 2006
----------------------------------------------------------------------
Non-performing assets/total
assets 0.17% 0.19% 0.19%
Net loan charge-offs/average
total loans 0.02% 0.02% 0.02%
Loan loss reserve/gross loans 0.93% 0.96% 0.99%
Non-performing loan coverage 366% 319% 287%
Non-performing assets/capital
and reserves 3% 3% 3%
----------------------------------------------------------------------
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Non-performing assets and loans past due 90 days at December 31,
2007 totaled $3.4 million, or 0.17%, of total assets, as compared to
$3.7 million, or 0.19%, of total assets, at September 30, 2007 and
$3.5 million, or 0.19%, of total assets one year ago.

Core Deposits

Core deposit growth by type of account is as follows:

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December 31,
-------------------------
4th Qtr 2007
% Cost of
(dollars in thousands) 2007 2006 Change Funds
----------------------------------------------------------------------
Demand noninterest-
bearing $ 271,894 $ 275,137 (1)% 0.00%
Demand interest-bearing 747,549 707,364 6 2.92
Savings 375,710 396,567 (5) 2.03
----------------------------------------------------------------------
Subtotal 1,395,153 1,379,068 1 2.13
Time 153,458 199,248 (23) 4.11
----------------------------------------------------------------------
Total core deposits $ 1,548,611 $ 1,578,316 (2)% 2.33%
----------------------------------------------------------------------
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Core deposit growth by type of customer is as follows:

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December 31, % of December 31, % of %
(dollars in thousands) 2007 Total 2006 Total Change
----------------------------------------------------------------------
Consumer $ 586,100 38% $ 622,313 39% (6)%
Commercial 544,442 35 520,995 33 5
Government 418,069 27 435,008 28 (4)
----------------------------------------------------------------------
Total $ 1,548,611 100% $ 1,578,316 100% (2)%
----------------------------------------------------------------------
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Investments

At December 31, 2007, the Company's investment portfolio totaled
$644.6 million. Detailed below is information regarding the
composition and characteristics of the Company's investment portfolio
at December 31, 2007.

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Available Held to
Product Description for Sale Maturity Total
----------------------------------------------------------------------
(in thousands)
Mortgage-backed securities:
Federal agencies pass through
certificates (AAA rated) $ 72,118 $ 81,846 $153,964
Collateralized mortgage obligations
(AAA rated) 310,090 34,212 344,302
U.S. Government agencies/other 4,958 141,409 146,367
----------------------------------------------------------------------
Total $387,166 $257,467 $644,633
----------------------------------------------------------------------
Duration (in years) 4.1 3.7 4.0
Average life (in years) 5.3 4.7 5.0
Quarterly average yield 5.36% 5.30% 5.33%
----------------------------------------------------------------------
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At December 31, 2007, the after tax depreciation of the Company's
available for sale portfolio was $3.9 million.

Capital

Stockholders' equity at December 31, 2007 totaled $112.3 million,
an increase of $11.2 million, or 11%, over stockholders' equity of
$101.1 million at December 31, 2006. Return on average stockholders'
equity (ROE) for the three months and twelve months ended December 31,
2007 and 2006 are shown below:

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Return on Equity
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
----------------------------------------------------------------------
8.83% 6.00% 6.59% 7.58%
----------------------------------------------------------------------
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The Company's capital ratios at December 31, 2007 were as follows:

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Regulatory Guidelines
Commerce "Well Capitalized"
---------------------------------------------
Leverage Ratio 7.26% 5.00%
Tier 1 10.03% 6.00%
Total Capital 10.78% 10.00%
----------------------------------------------------------------------
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Shareholder Returns

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As of December 31, 2007
----------------------------------------------------------------------
Commerce NASDAQ Bank Index S & P Index
----------------------------------------------------------------------
1 Year 6% (20)% 5%
3 Years (4)% (4)% 9%
5 Years 10% 6% 13%
10 Years 11% 5% 6%
----------------------------------------------------------------------
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FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION

The Company may, from time to time, make written or oral
"forward-looking statements", including statements contained in the
Company's filings with the Securities and Exchange Commission
(including the annual report on Form 10-K and the exhibits thereto),
in its reports to stockholders and in other communications by the
Company, which are made in good faith by the Company pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995.

These forward-looking statements include statements with respect
to the Company's beliefs, plans, objectives, goals, expectations,
anticipations, estimates and intentions that are subject to
significant risks and uncertainties and are subject to change based on
various factors (some of which are beyond the Company's control). The
words "may", "could", "should", "would", "believe", "anticipate",
"estimate", "expect", "intend", "plan" and similar expressions are
intended to identify forward-looking statements. The following
factors, among others discussed in the Company's Form 10-K, could
cause the Company's financial performance to differ materially from
that expressed or implied in such forward-looking statements:

-- the strength of the United States economy in general and the
strength of the local economies in which the Company conducts
operations;

-- the effects of, and changes in, trade, monetary and fiscal
policies, including interest rate policies of the Board of
Governors of the Federal Reserve System;

-- inflation;

-- interest rate, market and monetary fluctuations;

-- the timely development of competitive new products and
services by the Company and the acceptance of such products
and services by customers;

-- the willingness of customers to substitute competitors'
products and services for the Company's products and services
and vice versa;

-- the impact of changes in financial services' laws and
regulations (including laws concerning taxes, banking,
securities and insurance);

-- the impact of the rapid growth of the Company;

-- the Company's dependence on Commerce Bancorp, Inc. (and its
successor) to provide various services to the Company and the
costs associated with securing alternate providers of such
services;

-- changes in the Company's allowance for loan losses;

-- effect of terrorists attacks and threats of actual war;

-- unanticipated regulatory or judicial proceedings;

-- changes in consumer spending and saving habits;

-- and the success of the Company at managing the risks involved
in the foregoing.

Because such forward-looking statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such statements. The Company cautions that the
foregoing list of important factors is not exclusive. The Company does
not undertake to update any forward-looking statements, whether
written or oral, that may be made from time to time by or on behalf of
the Company. For information on subsequent events refer to the
Company's filings with the Securities and Exchange Commission ("SEC").

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Pennsylvania Commerce Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)

At or for the At or for the
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------------
(in thousands,
except per share % %
amounts) 2007 2006 Change 2007 2006 Change
------- ------- ------ ---------- ---------- ------

Income Statement
Data:

Net interest
income $16,820 $12,990 29% $ 59,492 $ 52,791 13%
Provision for
loan losses 245 225 9 1,762 1,634 8
Noninterest
income 6,132 5,200 18 22,823 18,752 22
Total revenues 22,952 18,190 26 82,315 71,543 15
Noninterest
operating
expenses 19,171 16,010 20 70,807 59,294 19
Net income 2,467 1,522 62 7,001 7,254 (3)

Per Common Share
Data:

Net income:
Basic $ 0.39 $ 0.24 63% $ 1.11 $ 1.18 (6)%
Net income:
Diluted 0.38 0.24 58 1.07 1.12 (4)

Book Value $ 17.63 $ 16.27 8%

Weighted average
shares
outstanding:
Basic 6,299 6,138 6,237 6,099
Diluted 6,517 6,360 6,480 6,381

Balance Sheet
Data:

Total assets $1,979,011 $1,866,483 6%
Loans (net) 1,146,629 973,033 18
Allowance for
loan losses 10,742 9,685 11
Investment
securities 644,633 711,686 (9)
Total deposits 1,560,896 1,616,777 (3)
Core deposits 1,548,611 1,578,316 (2)
Stockholders'
equity 112,335 101,108 11

Capital:

Stockholders'
equity to total
assets 5.68% 5.42%
Leverage ratio 7.26 7.31
Risk based
capital ratios:
Tier 1 10.03 10.00
Total Capital 10.78 10.72

Performance
Ratios:

Cost of funds 2.80% 3.36% 3.16% 3.14%
Deposit cost of
funds 2.02 2.85 2.37 2.42
Net interest
margin 3.60 3.03 3.30 3.18
Return on
average assets 0.49 0.33 0.36 0.41
Return on
average total
stockholders'
equity 8.83 6.00 6.59 7.58

Asset Quality:

Net charge-offs
to average
loans
outstanding 0.07% 0.13%
Nonperforming
assets to total
period-end
assets 0.17 0.19
Allowance for
loan losses to
total period-
end loans 0.93 0.99
Allowance for
loan losses to
nonperforming
loans 366 287
Nonperforming
assets to
capital and
reserves 3% 3%
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Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances
and Net Interest Income
(unaudited)

Quarter ending,
----------------------------------------------------------------------

December 2007
----------------------------------------------------------------------
Average Average
Balance Interest Rate
---------------------------
(dollars in thousands)
Earning Assets
------------------------------------------
Investment securities
Taxable $ 704,586 9,419 5.35%
Tax-exempt 1,621 25 6.17
----------------------------------------------------------------------
Total securities 706,207 9,444 5.35
Federal funds sold 0 0 0.00
Loans receivable
Mortgage and construction 551,255 10,088 7.19
Commercial loans and lines of credit 314,229 6,006 7.48
Consumer 219,970 3,764 6.79
Tax-exempt 52,612 897 6.82
----------------------------------------------------------------------
Total loans receivable 1,138,066 20,755 7.17
----------------------------------------------------------------------
Total earning assets $1,844,273 $30,199 6.47%
----------------------------------------------------------------------

Sources of Funds
------------------------------------------
Interest-bearing deposits
Regular savings $ 366,190 $ 1,876 2.03%
Interest checking and money market 769,826 5,657 2.92
Time deposits 160,271 1,662 4.11
Public funds time 14,167 173 4.84
----------------------------------------------------------------------
Total interest-bearing deposits 1,310,454 9,368 2.84
Short-term borrowings 210,947 2,475 4.59
Other borrowed money 50,000 561 4.39
Junior subordinated debt 29,400 661 8.99
----------------------------------------------------------------------
Total interest-bearing liabilities 1,600,801 13,065 3.23
Noninterest-bearing funds (net) 243,472
----------------------------------------------------------------------
Total sources to fund earning assets $1,844,273 $13,065 2.80
----------------------------------------------------------------------
Net interest income and margin on a tax-
equivalent basis $17,134 3.67%
Tax-exempt adjustment 314
--------
Net interest income and margin $16,820 3.60%
----------------------------------------------------------------------

Other Balances:
Cash and due from banks $ 52,086
Other assets 90,652
Total assets 1,987,011
Demand deposits (noninterest-bearing) 266,407
Other liabilities 8,918
Stockholders' equity 110,885

September 2007
----------------------------------------------------------------------
Average Average
Balance Interest Rate
---------------------------
(dollars in thousands)
Earning Assets
------------------------------------------
Investment securities
Taxable $ 682,415 $ 9,154 5.37%
Tax-exempt 1,620 25 6.17
----------------------------------------------------------------------
Total securities 684,035 9,179 5.37
Federal funds sold 0 0 0.00
Loans receivable
Mortgage and construction 539,964 10,030 7.29
Commercial loans and lines of credit 301,787 6,083 7.89
Consumer 210,156 3,620 6.83
Tax-exempt 48,025 828 6.90
----------------------------------------------------------------------
Total loans receivable 1,099,932 20,561 7.35
----------------------------------------------------------------------
Total earning assets $1,783,967 $29,740 6.59%
----------------------------------------------------------------------

Sources of Funds
------------------------------------------
Interest-bearing deposits
Regular savings $ 373,663 $ 2,266 2.41%
Interest checking and money market 704,352 6,091 3.43
Time deposits 173,084 1,817 4.16
Public funds time 18,290 230 4.99
----------------------------------------------------------------------
Total interest-bearing deposits 1,269,389 10,404 3.25
Short-term borrowings 217,130 2,906 5.24
Other borrowed money 25,815 289 4.38
Junior subordinated debt 29,400 661 8.99
----------------------------------------------------------------------
Total interest-bearing liabilities 1,541,734 14,260 3.66
Noninterest-bearing funds (net) 242,233
----------------------------------------------------------------------
Total sources to fund earning assets $1,783,967 $14,260 3.16
----------------------------------------------------------------------
Net interest income and margin on a tax-
equivalent basis $15,480 3.43%
Tax-exempt adjustment 290
--------
Net interest income and margin $15,190 3.36%
----------------------------------------------------------------------

Other Balances:
Cash and due from banks $ 55,115
Other assets 90,536
Total assets 1,929,618
Demand deposits (noninterest-bearing) 274,089
Other liabilities 7,591
Stockholders' equity 106,204

December 2006
----------------------------------------------------------------------
Average Average
Balance Interest Rate
---------------------------
(dollars in thousands)
Earning Assets
------------------------------------------
Investment securities
Taxable $ 724,879 $ 9,651 5.33%
Tax-exempt 1,619 25 6.18
----------------------------------------------------------------------
Total securities 726,498 9,676 5.33
Federal funds sold 0 0 0.00
Loans receivable
Mortgage and construction 467,844 8,465 7.11
Commercial loans and lines of credit 281,668 5,709 7.93
Consumer 184,760 3,150 6.76
Tax-exempt 29,952 507 6.77
----------------------------------------------------------------------
Total loans receivable 964,224 17,831 7.27
----------------------------------------------------------------------
Total earning assets $1,690,722 $27,507 6.44%
----------------------------------------------------------------------

Sources of Funds
------------------------------------------
Interest-bearing deposits
Regular savings $ 383,600 $ 2,571 2.66%
Interest checking and money market 712,341 7,162 3.99
Time deposits 196,628 2,064 4.16
Public funds time 28,256 328 4.61
----------------------------------------------------------------------
Total interest-bearing deposits 1,320,825 12,125 3.64
Short-term borrowings 112,868 1,544 5.35
Other borrowed money 0 0 0.00
Junior subordinated debt 29,400 661 8.99
----------------------------------------------------------------------
Total interest-bearing liabilities 1,463,093 14,330 3.88
Noninterest-bearing funds (net) 227,629
----------------------------------------------------------------------
Total sources to fund earning assets $1,690,722 $14,330 3.36
----------------------------------------------------------------------
Net interest income and margin on a tax-
equivalent basis $13,177 3.08%
Tax-exempt adjustment 186
--------
Net interest income and margin $12,991 3.03%
----------------------------------------------------------------------

Other Balances:
Cash and due from banks $ 49,778
Other assets 86,285
Total assets 1,826,785
Demand deposits (noninterest-bearing) 255,903
Other liabilities 7,162
Stockholders' equity 100,627

Year-to-date,
----------------------------------------------------------------------

December 2007
----------------------------------------------------------------------
Average Average
Balance Interest Rate
---------------------------
(dollars in thousands)
Earning Assets
------------------------------------------
Investment securities
Taxable $ 694,575 $ 37,060 5.34%
Tax-exempt 1,620 99 6.11
----------------------------------------------------------------------
Total securities 696,195 37,159 5.34
Federal funds sold 0 0 0.00
Loans receivable
Mortgage and construction 525,063 38,287 7.21
Commercial loans and lines of credit 307,540 24,425 7.83
Consumer 206,459 14,040 6.80
Tax-exempt 46,840 3,196 6.82
----------------------------------------------------------------------
Total loans receivable 1,085,902 79,948 7.29
----------------------------------------------------------------------
Total earning assets $1,782,097 $117,107 6.53%
----------------------------------------------------------------------

Sources of Funds
------------------------------------------
Interest-bearing deposits
Regular savings $ 373,209 $ 8,997 2.41%
Interest checking and money market 712,418 24,738 3.47
Time deposits 181,080 7,604 4.20
Public funds time 17,464 858 4.91
----------------------------------------------------------------------
Total interest-bearing deposits 1,284,171 42,197 3.29
Short-term borrowings 208,112 10,804 5.12
Other borrowed money 19,110 849 4.38
Junior subordinated debt 29,400 2,645 9.00
----------------------------------------------------------------------
Total interest-bearing liabilities 1,540,793 56,495 3.66
Noninterest-bearing funds (net) 241,304
----------------------------------------------------------------------
Total sources to fund earning assets $1,782,097 $ 56,495 3.16
----------------------------------------------------------------------
Net interest income and margin on a tax-
equivalent basis $ 60,612 3.37%
Tax-exempt adjustment 1,120
--------
Net interest income and margin $ 59,492 3.30%
----------------------------------------------------------------------

Other Balances:
Cash and due from banks $ 51,874
Other assets 90,437
Total assets 1,924,408
Demand deposits (noninterest-bearing) 269,353
Other liabilities 8,035
Stockholders' equity 106,227

December 2006
----------------------------------------------------------------------
Average Average
Balance Interest Rate
---------------------------
(dollars in thousands)
Earning Assets
------------------------------------------
Investment securities
Taxable $ 733,990 $ 38,845 5.29%
Tax-exempt 1,985 130 6.55
----------------------------------------------------------------------
Total securities 735,975 38,975 5.30
Federal funds sold 0 0 0.00
Loans receivable
Mortgage and construction 452,781 32,267 7.05
Commercial loans and lines of credit 259,280 20,914 7.96
Consumer 170,535 11,412 6.69
Tax-exempt 23,788 1,582 6.65
----------------------------------------------------------------------
Total loans receivable 906,384 66,175 7.23
----------------------------------------------------------------------
Total earning assets $1,642,359 $105,150 6.36%
----------------------------------------------------------------------

Sources of Funds
------------------------------------------
Interest-bearing deposits
Regular savings $ 363,515 $ 8,533 2.35%
Interest checking and money market 605,043 22,282 3.68
Time deposits 194,611 7,541 3.87
Public funds time 32,873 1,406 4.28
----------------------------------------------------------------------
Total interest-bearing deposits 1,196,042 39,762 3.32
Short-term borrowings 199,742 10,267 5.07
Other borrowed money 0 0 0.00
Junior subordinated debt 17,669 1,731 9.80
----------------------------------------------------------------------
Total interest-bearing liabilities 1,413,453 51,760 3.65
Noninterest-bearing funds (net) 228,906
----------------------------------------------------------------------
Total sources to fund earning assets $1,642,359 $ 51,760 3.14
----------------------------------------------------------------------
Net interest income and margin on a tax-
equivalent basis $ 53,390 3.22%
Tax-exempt adjustment 599
--------
Net interest income and margin $ 52,791 3.18%
----------------------------------------------------------------------

Other Balances:
Cash and due from banks $ 49,210
Other assets 79,815
Total assets 1,771,384
Demand deposits (noninterest-bearing) 253,671
Other liabilities 8,558
Stockholders' equity 95,702
*T

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Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Non-Performing Loans and Assets
(unaudited)

December September June March December
31, 30, 30, 31, 31,
2007 2007 2007 2007 2006
-------------------------------------------
Nonaccrual loans:
Commercial $ 534 $ 997 $1,362 $ 945 $ 984
Consumer 57 57 54 19 19
Mortgage:
Construction 385 529 520 394 247
Mortgage 1,959 1,767 1,784 2,207 2,129
-------------------------------------------
Total nonaccrual
loans 2,935 3,350 3,720 3,565 3,379
Loans past due 90 days or
more and still accruing 0 0 0 0 2
Renegotiated loans: 0 0 0 0 0
-------------------------------------------
Total non-performing
loans 2,935 3,350 3,720 3,565 3,381

Foreclosed real estate 489 390 300 300 159
-------------------------------------------

Total non-performing
assets $3,424 $3,740 $4,020 $3,865 $3,540
-------------------------------------------

Non-performing loans to
total loans 0.25% 0.30% 0.34% 0.34% 0.34%

Non-performing assets to
total assets 0.17% 0.19% 0.21% 0.20% 0.19%

Non-performing loan
coverage 366% 319% 278% 280% 287%

Allowance for loan losses
as a percentage of total
period-end loans 0.93% 0.96% 0.96% 0.95% 0.99%

Non-performing assets /
capital reserves 3% 3% 3% 3% 3%
*T

-0-
*T
Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)

12/31/2007 12/31/2006 12/31/2007 12/31/2006
--------------------- ---------------------
(dollar amounts Year-ended
in thousands) Three Months Ended 12/31/2006 Twelve Months Ended
----------------------------------------------------------------------

Balance at
beginning of
period $10,673 $9,635 $ 9,231 $ 9,685 $ 9,231
Provisions
charged to
operating
expense 245 225 1,634 1,762 1,634
---------------------------------------------------------------------
10,918 9,860 10,865 11,447 10,865

Recoveries on
loans charged-
off:
Commercial 7 (28) 34 11 34
Consumer 30 31 71 53 71
Real estate 0 0 0 8 0
---------------------------------------------------------------------
Total
recoveries 37 3 105 72 105

Loans charged-
off:
Commercial (165) (145) (895) (634) (895)
Consumer 0 (33) (390) (69) (390)
Real estate (48) 0 0 (74) 0
---------------------------------------------------------------------

Total charged-
off (213) (178) (1,285) (777) (1,285)
---------------------------------------------------------------------

Net charge-offs (176) (175) (1,180) (705) (1,180)
---------------------------------------------------------------------

Balance at end
of period $10,742 $9,685 $ 9,685 $10,742 $ 9,685
---------------------------------------------------------------------

Net charge-offs
as a
percentage of
average loans
outstanding 0.02% 0.02% 0.13% 0.07% 0.13%

Allowance for
loan losses as
a percentage
of period-end
loans 0.93% 0.99% 0.99% 0.93% 0.99%
*T

Pennsylvania Commerce Bancorp, Inc.
Gary L. Nalbandian, 717-412-6301
Chairman/President
or
Mark A. Zody, 717-412-6301
Chief Financial Officer

Copyright Business Wire 2008