8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 20, 2007 (July 19, 2007)

Pennsylvania Commerce Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Pennsylvania	000-50961	25-1834776
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3801 Paxton Street, Harrisburg, Pennsylvania	17111
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (800) 653 – 6104

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition

         On July 19, 2007, Pennsylvania Commerce Bancorp, Inc. issued a press release reporting financial results for its second quarter of 2007.  A copy of the press release is attached as Exhibit 99.1 to this report.

On July 19, 2007, the Registrant also made certain supplemental information available. A copy of the supplemental information is attached as Exhibit 99.2 to this report.

Item 9.01.   Financial Statements and Exhibits

Exhibit No.

99.1Press Release, dated July 19, 2007

99.2Supplemental Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Pennsylvania Commerce Bancorp, Inc.
	(Registrant)
Date: July 20, 2007	/s/ Mark A. Zody
	Mark A. Zody
	Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	DESCRIPTION
99.1	Press Release of Pennsylvania Commerce Bancorp, Inc. dated July 19, 2007
99.2	Supplemental Information

EX-99.1

CONTACTS

Gary L. Nalbandian	Mark A. Zody
Chairman/President	Chief Financial Officer

(717) 412-6301

PENNSYLVANIA COMMERCE BANCORP

CORE DEPOSITS GROW 11%, LOANS INCREASE 20%

July 19, 2007 – Harrisburg, PA – Pennsylvania Commerce Bancorp, Inc. (NASDAQ Global Select Market Symbol: COBH), parent company of Commerce Bank/Harrisburg, N.A., reported increased assets, deposits, and loans for the second quarter of 2007, announced Gary L. Nalbandian, Chairman.

SECOND QUARTER FINANCIAL HIGHLIGHTS
June 30, 2007
				%
				Change (1)
	* Total Assets:	$    1.92	Billion	7%
	* Total Core Deposits:	$    1.51	Billion	11%
	* Total Loans (net):	$    1.07	Billion	20%
	* Total Revenues:	$    20.0	Million	11%
	* Net Income:	$     1.6	Million	(23)%
	*Diluted Net Income Per Share	$    0.24		(25)%
	(1)Compared to Second Quarter Ended June 30, 2006

Chairman’s Statement

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

Ø   Total assets increased to $1.92 billion.

Ø   Core deposits grew $154  million, or 11%, over the previous 12-month period.

Ø   Commercial core deposits grew 21%  and now total $545 million.

Ø   Net loans grew $182  million, or 20%, over the second quarter one year ago.

Ø   Asset quality remains strong with net charge-offs for the quarter of only 0.01% and a non-performing loan coverage ratio of 278%.

Ø   Total revenues grew 11% for the quarter to $20.0 million, despite the challenging interest rate environment.

Ø   Deposit charges and service fees grew 21% for the second quarter.

Ø   Net income was $1.6 million and diluted net income per share was $0.24 for the second quarter of 2007.

Ø   Shareholder equity increased $11.1 million, or 12%, to $104.7 million.

Ø   Book value per share grew 10%  to $16.60.

Expansion Plans

Ø   The Company recently opened its 31^st store on July 14, 2007, located at 2799 Shillington Road, in Berks County, Pennsylvania.

Ø   Consistent with its growth retail model, the Company plans to open a total of three new stores in 2007.

Ø   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.

Balance Sheet

	06/30/07	06/30/06	% Increase
	(dollars in thousands)
Total Assets:	$   1,915,463	$ 1,783,933	7%
Total Loans (net):	1,070,353	888,391	20%
Core Deposits:	1,514,453	1,360,195	11%
Total Deposits:	1,532,449	1,416,490	8%

2

Deposits

The Company’s deposit growth continues with core deposits at June 30, 2007 reaching $1.51 billion, a $154.3 million, or 11%, increase over core deposits of $1.36 billion one year ago.  Total deposits grew by $116.0 million, or 8%, over the previous 12 months.

	06/30/07	06/30/06	$ Increase	% Increase
	(dollars in thousands)
Core Deposits:	$    1,514,453	$ 1,360,195	$ 154,258	11%
Total Deposits:	1,532,449	1,416,490	115,959	8%

Core Deposits

Core deposit growth by type of account is as follows:

			%	2nd Qtr 2007
	06/30/07	6/30/06	Increase	Cost of Funds
	(dollars in thousands)
Demand Non-Interest	$    293,264	$    279,870	5%	0.00%
Demand Interest Bearing	654,648	517,664	26	3.65
Savings	384,445	370,118	4	2.53
Subtotal	1,332,357	1,167,652	14	2.58
Time	182,096	192,543	(5)	4.25
Total Core Deposits	$ 1,514,453	$ 1,360,195	11%	2.79%

Core deposit growth by type of customer is as follows:

		%		%	%
	06/30/07	Total	06/30/06	Total	Increase
	(dollars in thousands)
Consumer	$    621,620	41%	$    608,177	45%	2%
Commercial	545,418	36	451,869	33	21
Government	347,415	23	300,149	22	16
Total	$ 1,514,453	100%	$ 1,360,195	100%	11%

3

Lending

Total loans increased $182.6 million, or 20%, to $1.08 billion from $898 million one year ago, and the growth was represented across all loan categories. The composition of the Company’s loan portfolio is as follows:

	06/30/07	% of Total	06/30/06	% of Total	$ Increase	% Increase
	(dollars in thousands)
Commercial	$    330,300	31%	$ 250,967	30%	$   58,848	22%
Owner Occupied	129,856	12	116,739	13	13,117	11
Total Commercial	460,156	43	367,706	43	71,965	19
Consumer/Residential	294,681	27	265,084	30	29,597	11
Commercial Real Estate	325,874	30	265,278	27	81,081	33
Gross Loans	$ 1,080,711	100%	$ 898,068	100%	$ 182,643	20%

Asset Quality

The Company’s asset quality ratios are highlighted below:

	Quarter Ended
	6/30/2007	3/31/2007	6/30/2006
Non-Performing Assets/Assets	0.21%	0.20%	0.19%
Net Loan Charge-Offs/Avg Total Loans	0.01%	0.02%	0.06%
Loan Loss Reserve/Gross Loans	0.96%	0.95%	1.08%
Non-Performing Loan Coverage	278%	280%	306%
Non-Performing Assets/Capital
and Reserves	3%	3%	3%

Non-performing assets and loans past due 90 days at June 30, 2007 totaled $4.0 million, or 0.21%, of total assets, versus $3.9 million, or 0.20% of total assets, at March 31, 2007 and $3.3 million, or 0.19%, of total assets one year ago.

Income Statement

	Three Months Ended			Six Months Ended
	June 30			June 30
			%			%
	2007	2006	Change	2007	2006	Change
	(dollars in thousands, except per share data)			(dollars in thousands, except per share data)
Total Revenues:	$   19,959	$ 18,062	11%	$38,357	$35,517	8%
Total Expenses:	17,308	14,498	19	33,798	28,423	19
Net Income:	1,571	2,050	(23)	2,683	4,087	(34)
Diluted Net Income Per Share:	$       0.24	$    0.32	(25)%	$    0.41	$    0.64	(36)%

4

Net Income and Net Income Per Share

Net income totaled $1.6 million for the second quarter of 2007 as compared to net income of $2.1 million for the second quarter of 2006. Net income per fully diluted share for the second quarter was $0.24 vs. $0.32 recorded for the same period a year ago.

	Three Months Ended			Six Months Ended
	June 30			June 30
			%			%
	2007	2006	Change	2007	2006	Change
	(dollars in thousands, except per share data)			(dollars in thousands, except per share data)
Net Income:	$      1,571	$    2,050	(23)%	$  2,683	$  4,087	(34)%
Diluted Net Income
Per Share:	$        0.24	$      0.32	(25)%	$    0.41	$    0.64	(36)%

Total Revenues

	Three Months Ended			Six Months Ended
	June 30			June 30
	2007	2006	% Increase	2007	2006	% Increase
	(dollars in thousands)			(dollars in thousands)
Total Revenues:	$  19,959	$  18,062	11%	$ 38,357	$ 35,517	8%

Total revenues (net interest income plus non-interest income) for the second quarter increased $1.9 million, to $20.0 million, an 11% increase over the second quarter of 2006. Total revenues for the first six months of 2007 increased by $2.8 million, or 8%, over the same period in 2006.

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2007 totaled $14.3 million, compared to the $13.4 million recorded a year ago.  This increase was a result of the continued strong loan growth and in spite of the difficult interest rate environment.  For the first six months of 2007, net interest income totaled $27.5 million, up $837,000, or 3%, over the $26.6 million recorded for the first half of 2006.

The net interest margin for the second quarter of 2007 was 3.19%, up 15 bps over the 3.04% figure recorded in the first quarter of 2007, and compared to 3.26% for the second quarter of 2006.  The year over year compression is primarily a result of the current interest rate environment.

Net interest income, on a tax equivalent basis, totaled $14.6 million in the second quarter of 2007, an increase of $973,000, or 7%, over the second quarter one year ago.  This figure was up $1.1 million over net interest income on a fully taxable basis recorded in the first quarter of 2007.

5

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, which were fueled by the Company’s continued growth of core deposits.  The Company continues to grow core deposits, which has produced growth in net interest income, despite net interest margin compression brought on by the current interest rate environment.

	Net Interest Income
Quarter Ended	Volume	Rate	Total	%
June 30	Increase	Change	Increase	Increase
	(dollars in thousands)
2007 vs. 2006	$     1,174	$        (201)	$    973	7%

Non-Interest Income

Non-interest income for the second quarter of 2007 increased to $5.7 million from $4.6 million a year ago, a 24% increase.  The growth in non-interest income for the second quarter was reflected in increased deposit charges and service fees as depicted below:

	Three Months Ended			Six Months Ended
	June 30			June 30
			%			%
	2007	2006	Change	2007	2006	Change
	(dollars in thousands)			(dollars in thousands)
Deposit Charges
& Service Fees	$  5,073	$4,204	21%	$  9,575	$7,925	21%
Other Income	632	410	54%	1,129	947	19%
Subtotal	5,705	4,614	24%	10,704	8,872	21%
Net Investment Securities Gains	-	-		171	-
Total Non-Interest Income	$  5,705	$4,614	24%	$10,875	$8,872	23%

Non-Interest Expenses

Non-interest expenses for the second quarter of 2007 were $17.3 million, up 19% from $14.5 million one year ago.  The increases in non-interest expenses for the quarter were widespread across all categories, reflecting the Company’s continued growth.  Included in non-interest expenses for the second quarter of 2007 are costs related to two new stores opened in Lancaster County in November 2006, as well as training and start-up costs for the new store recently opened on Shillington Road in Berks County.  Also contributing to the increase is a higher level of regulatory fees as well as FDIC insurance assessments that were reintroduced to the Banking Industry starting January 1, 2007.

Non-interest expenses for the first six months of 2007 totaled $33.8 million, up $5.4 million, or 19%, over the $28.4 million recorded during the same period in 2006.  This increase was attributable to the same costs as discussed in the previous paragraph.

6

Investments

At June 30, 2007, the Company’s investment portfolio totaled $657 million. Detailed below is information regarding the composition and characteristics of the Company’s investment portfolio at June 30, 2007.

	Available	Held to
Product Description	for Sale	Maturity	Total
(in thousands)
Mortgage-backed Securities:
Federal Agencies Pass Through
Certificates (AAA Rated)	$      74,676	$   87,911	$ 162,587
Collateralized Mortgage
Obligations (AAA Rated)	278,774	35,511	314,285
U.S. Government Agencies/
Other	4,703	175,545	180,248
Total	$    358,153	$ 298,967	$ 657,120
Duration (in years)	3.6	4.8	4.1
Average Life (in years)	4.5	6.2	5.3
Quarterly Average Yield	5.35%	5.27%	5.31%

At June 30, 2007, the after tax depreciation of the Company’s available for sale portfolio was $5.5 million.

Capital

Stockholders’ equity at June 30, 2007 totaled $104.7 million, an increase of $11.1 million, or 12%, over stockholders’ equity of $93.6 million at June 30, 2006.  Return on average stockholders’ equity (ROE) for the first quarter ending June 30, 2007 and 2006 are shown below:

Return on Equity
Three Months Ended		Six Months Ended
06/30/07	06/30/06	06/30/07	06/30/06
6.00%	8.83%	5.21%	8.88%

The Company’s capital ratios at June 30, 2007 were as follows:

	Commerce			Regulatory Guidelines “Well Capitalized”
Leverage Ratio		7.22	%		5.00	%
Tier 1		10.03			6.00
Total Capital		10.78			10.00

7

Shareholder Returns 

	As of June 30, 2007
	Commerce	NASDAQ Bank Index
1 Year	(12)%	1%
3 Years	5%	5%
5 Years	6%	8%
10 Years	14%	9%

8

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, could cause the Company’s financial performance to differ materially from that expressed 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. to provide various services to the Company;

·   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, concerning events or circumstances after the date of this report refer to the Company’s filings with the Securities and Exchange Commission (“SEC”).

9

EX-99.2

Pennsylvania Commerce Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
	At or for the						At or for the
	Three Months Ended						Six Months Ended
	June 30,						June 30,
					%						%
(in  thousands,  except  per  share  amounts)	2007		2006		Change		2007		2006			Change
Income Statement Data:
Net interest income	$              14,254		$              13,448		6	%	$      27,482		$        26,645			3	%
Provision for loan losses	500		506		(1)		980		981			0
Noninterest income	5,705		4,614		24		10,875		8,872			23
Total revenues	19,959		18,062		11		38,357		35,517			8
Noninterest operating expenses	17,308		14,498		19		33,798		28,423			19
Net income	1,571		2,050		(23)		2,683		4,087			(34)
Per Common Share Data:
Net  income:  Basic	$                  0.25		$                  0.33		(24)	%	$           0.43		$            0.67			(36)	%
Net  income:  Diluted	0.24		0.32		(25)		0.41		0.64			(36)
Book Value							$        16.60		$          15.15			10	%
Weighted average shares outstanding:
Basic	6,223		6,088				6,195		6,071
Diluted	6,458		6,369				6,430		6,355
Balance Sheet Data:
Total assets							$1,915,463		$   1,783,933			7	%
Loans (net)							1,070,353		888,391			20
Allowance for loan losses							10,358		9,677			7
Investment securities							657,120		722,890			(9)
Total deposits							1,532,449		1,416,490			8
Core deposits							1,514,453		1,360,195			11
Stockholders' equity							104,721		93,630			12
Capital:
Stockholders' equity to total assets							5.47	%	5.25	%
Leverage ratio							7.22		6.48
Risk based capital ratios:
Tier 1							10.03		9.36
Total Capital							10.78		10.15
Performance Ratios:
Cost of funds	3.30	%	3.08	%			3.35	%	2.96	%
Deposit cost of funds	2.43		2.20				2.58		2.17
Net interest margin	3.19		3.26				3.11		3.29
Return on average assets	0.33		0.47				0.29		0.48
Return on average total stockholders' equity	6.00		8.83				5.21		8.88
Asset Quality:
Net charge-offs to average loans outstanding							0.03	%	0.06	%
Nonperforming  assets  to  total  period-end  assets							0.21		0.19
Allowance  for  loan  losses  to  total  period-end  loans							0.96		1.08
Allowance  for  loan  losses  to  nonperforming  loans							278		306
Nonperforming  assets  to  capital and reserves							3	%	3	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	Quarter ending,
	June 2007				March 2007				June 2006
	Average		Average		Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$      686,714	9,108	5.31	%	$    704,722	$    9,379	5.32	%	$    750,549	$    9,967	5.31	%
Tax-exempt	1,620	25	6.17		1,619	25	6.18		2,101	35	6.66
Total securities	688,334	9,133	5.31		706,341	9,404	5.32		752,650	10,002	5.32
Federal funds sold	0	0	0.00		0	0	0.00		0	0	0.00
Loans receivable
Mortgage and construction	530,395	9,695	7.24		477,667	8,475	7.10		449,604	8,018	7.07
Commercial loans and lines of credit	301,393	6,068	7.97		312,797	6,267	8.01		250,646	5,114	8.07
Consumer	201,034	3,410	6.80		194,354	3,247	6.78		164,138	2,741	6.70
Tax-exempt	49,847	859	6.89		36,686	610	6.65		21,871	356	6.51
Total loans receivable	1,082,669	20,032	7.35		1,021,504	18,599	7.30		886,259	16,229	7.27
Total earning assets	$   1,771,003	$  29,165	6.55	%	$ 1,727,845	$  28,003	6.49	%	$ 1,638,909	$  26,231	6.37	%
Sources of Funds
Interest-bearing deposits
Regular savings	$      375,370	$    2,365	2.53	%	$    377,735	$    2,491	2.67	%	$    351,575	$    1,924	2.20	%
Interest checking and money market	674,125	6,138	3.65		700,697	6,851	3.97		556,976	4,891	3.52
Time deposits	190,854	2,024	4.25		200,642	2,101	4.25		191,900	1,813	3.79
Public funds time	17,839	219	4.92		19,611	236	4.88		33,678	355	4.23
Total interest-bearing deposits	1,258,188	10,746	3.43		1,298,685	11,679	3.65		1,134,129	8,983	3.18
Short-term borrowings	238,520	3,204	5.31		165,250	2,219	5.37		258,801	3,312	5.06
Junior subordinated debt	29,400	661	8.99		29,400	661	9.00		13,600	355	10.43
Total interest-bearing liabilities	1,526,108	14,611	3.83		1,493,335	14,559	3.94		1,406,530	12,650	3.59
Noninterest-bearing funds (net)	244,895				234,510				232,379
Total sources to fund earning assets	$   1,771,003	$  14,611	3.30		$ 1,727,845	$  14,559	3.41		$ 1,638,909	$  12,650	3.08
Net interest income and margin
on a tax-equivalent basis		$  14,554	3.25	%		$  13,444	3.08	%		$  13,581	3.29	%
Tax-exempt adjustment		300				216				133
Net interest income and margin		$  14,254	3.19	%		$  13,228	3.04	%		$  13,448	3.26	%
Other Balances:
Cash and due from banks	$        51,842				$      48,377				$      50,116
Other assets	90,813				89,736				78,575
Total assets	1,913,658				1,865,958				1,767,600
Demand deposits (noninterest-bearing)	274,794				262,022				258,020
Other liabilities	7,725				7,902				9,959
Stockholders' equity	105,031				102,699				93,091

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	Year-to-date
	June 2007				June 2006
	Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$    695,668	$     18,487	5.31	%	$    736,528	$  19,318	5.25	%
Tax-exempt	1,619	50	6.18		2,358	79	6.70
Total securities	697,287	18,537	5.32		738,886	19,397	5.25
Federal funds sold	0	0	0.00		0	0	0.00
Loans receivable
Mortgage and construction	504,177	18,169	7.17		445,561	15,598	6.97
Commercial loans and lines of credit	307,063	12,336	7.99		244,067	9,696	7.90
Consumer	197,713	6,657	6.79		161,598	5,289	6.60
Tax-exempt	43,303	1,470	6.79		20,366	656	6.44
Total loans receivable	1,052,256	38,632	7.32		871,592	31,239	7.15
Total earning assets	$ 1,749,543	$     57,169	6.52	%	$ 1,610,478	$  50,636	6.28	%
Sources of Funds
Interest-bearing deposits
Regular savings	$    376,546	$       4,855	2.60	%	$    350,788	$    3,672	2.11	%
Interest checking and money market	687,338	12,990	3.81		552,733	9,388	3.43
Time deposits	195,721	4,125	4.25		194,030	3,526	3.66
Public funds time	18,720	455	4.90		35,597	726	4.11
Total interest-bearing deposits	1,278,325	22,425	3.54		1,133,148	17,312	3.08
Short-term borrowings	202,087	5,423	5.34		234,044	5,720	4.86
Junior subordinated debt	29,400	1,322	8.99		13,600	709	10.43
Total interest-bearing liabilities	1,509,812	29,170	3.88		1,380,792	23,741	3.45
Noninterest-bearing funds (net)	239,731				229,686
Total sources to fund earning assets	$ 1,749,543	$     29,170	3.35		$ 1,610,478	$  23,741	2.96
Net interest income and margin
on a tax-equivalent basis		$     27,999	3.17	%		$  26,895	3.32	%
Tax-exempt adjustment		517				250
Net interest income and margin		$     27,482	3.11	%		$  26,645	3.29	%
Other Balances:
Cash and due from banks	$      50,119				$      47,552
Other assets	90,277				75,234
Total assets	1,889,939				1,733,264
Demand deposits (noninterest-bearing)	268,443				249,937
Other liabilities	7,813				9,694
Stockholders' equity	103,871				92,841

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
		6/30/2007		6/30/2006		Year-ended		6/30/2007		6/30/2006
(dollar amounts in thousands)		Three Months Ended				12/31/2006		Six Months Ended
Balance at beginning of period		$      9,992		$      9,656		$      9,231		$      9,685		$      9,231
Provisions charged to operating expense		500		506		1,634		980		981
		10,492		10,162		10,865		10,665		10,212
Recoveries on loans charged-off:
	Commercial	1		4		34		2		49
	Consumer	9		13		71		14		27
	Real estate	0		0		0		8		0
Total recoveries		10		17		105		24		76
Loans charged-off:
	Commercial	(86)		(501)		(895)		(262)		(501)
	Consumer	(58)		(1)		(390)		(67)		(110)
	Real estate	0		0		0		(2)		0
Total charged-off		(144)		(502)		(1,285)		(331)		(611)
Net charge-offs		(134)		(485)		(1,180)		(307)		(535)
Balance at end of period		$    10,358		$      9,677		$      9,685		$    10,358		$      9,677
Net charge-offs as a percentage of
average loans outstanding		0.01	%	0.06	%	0.13	%	0.03	%	0.06	%
Allowance for loan losses as a percentage of
period-end loans		0.96	%	1.08	%	0.99	%	0.96	%	1.08	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Non-Performing Loans and Assets
(unaudited)
				June 30,	March 31,	December 31,	September 30,	June 30,
				2007	2007	2006	2006	2006
Nonaccrual loans:
	Commercial			$     1,362	$               945	$                984	$      1,275	$      1,009
	Consumer			54	19	19	139	334
	Mortgage:
		Construction		520	394	247	0	0
		Mortgage		1,784	2,207	2,129	2,216	1,818
			Total nonaccrual loans	3,720	3,565	3,379	3,630	3,161
Loans past due 90 days or more
	and still accruing			0	0	2	0	1
Renegotiated loans:				0	0	0	0	0
	Total non-performing loans			3,720	3,565	3,381	3,630	3,162
Foreclosed real estate				300	300	159	159	159
Total non-performing assets				$     4,020	$            3,865	$             3,540	$      3,789	$      3,321
Non-performing loans to total loans				0.34%	0.34%	0.34%	0.39%	0.35%
Non-performing assets to total assets				0.21%	0.20%	0.19%	0.21%	0.19%
Non-performing loan coverage				278%	280%	287%	265%	306%
Allowance for loan losses as a percentage
	of total period-end loans			0.96%	0.95%	0.99%	1.03%	1.08%
Non-performing assets / capital reserves				3%	3%	3%	3%	3%

CONTACT:

Pennsylvania Commerce Bancorp, Inc.

Gary L. Nalbandian

Chairman/President

(717) 412-6301

or

Mark A. Zody

Chief Financial Officer

(717) 412-6301

SOURCE:

Pennsylvania Commerce Bancorp, Inc.