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) October 18, 2007 (October 18, 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 717-412-6301

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 October 18, 2007, Pennsylvania Commerce Bancorp, Inc. issued a press release reporting financial results for its third quarter of 2007.  A copy of the press release is attached as Exhibit 99.1 to this report.

On October 18, 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 October 18, 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: October 18, 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 October 18, 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

NET INCOME UP 13%; ASSETS SURPASS $2 BILLION

October 18, 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, loans and net income for the third quarter of 2007, announced Gary L. Nalbandian, Chairman.

Third Quarter Financial Highlights
September 30, 2007
			%
			Change (1)
Total assets	$  2.02	Billion	10 %
Total core deposits	$  1.62	Billion	4 %
Total loans (net)	$  1.10	Billion	19 %
Total revenues	$  21.0	Million	18 %
Net income	$    1.9	Million	13 %
Diluted net income per share	$  0.28		8 %

⁽¹⁾ Compared to Third Quarter Ended September 30, 2006

Chairman’s Statement

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

Ø   Total assets increased to $2.02 billion.

Ø   Core deposits now exceed $1.62 billion.

Ø   Net loans grew $176 million, or 19%, over the third quarter one year ago.

Ø   Asset quality remains strong with net charge-offs for the quarter of only 0.02% and a non-performing loan coverage ratio of 319%.

Ø   Total revenues grew 18% for the quarter to $21.0 million.

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

Ø   Net income was $1.9 million, up 13% over the third quarter one year ago.

Ø   Diluted net income per share was $0.28 for the third quarter, an 8% increase over the third quarter of 2006.

Ø   Shareholder equity increased $9.1 million, or 9%, to $108.3 million.

New Stores and Awards

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

Ø   New stores opened during the third quarter were as follows:

Location	County
Shillington Road	Berks
Manheim Pike	Lancaster
Linglestown Road	Dauphin

Ø   On the national stage, J.D. Power & Associates ranked Commerce #1 in Customer Satisfaction in the Mid-Atlantic Region.

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

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.

2

Balance Sheet

	September 30,
(dollars in thousands)	2007		2006		%  Increase
Total assets	$	2,015,486	$	1,838,173		10%
Total loans (net)		1,104,322		927,950		19%
Core deposits		1,621,390		1,556,458		4%
Total deposits		1,641,887		1,606,253		2%

Lending

Total gross loans increased $177.4 million, or 19%, to $1.11 billion from $938 million one year ago, and the growth was represented across all loan categories. The composition of the Company’s loan portfolio is as follows:

(dollars in thousands)	9/30/07		% of Total			9/30/06		% of Total			$  Increase		% Increase
Commercial	$	347,238		31	%	$	265,280		28	%	$	81,958		31	%
Owner occupied		132,976		12			122,982		13			9,994		8
Total commercial		480,214		43			388,262		41			91,952		24
Consumer/residential		298,204		27			275,473		30			22,731		8
Commercial real estate		336,577		30			273,850		29			62,727		23
Gross loans	$	1,114,995		100	%	$	937,585		100	%	$	177,410		19	%

Asset Quality

The Company’s asset quality ratios are highlighted below:

	Quarter Ended
	September 30, 2007			June 30, 2007			September 30, 2006
Non-performing assets/assets		0.19	%		0.21	%		0.21	%
Net loan charge-offs/average total loans		0.02	%		0.01	%		0.05	%
Loan loss reserve/gross loans		0.96	%		0.96	%		1.03	%
Non-performing loan coverage		319	%		278	%		265	%
Non-performing assets/capital and reserves		3	%		3	%		3	%

Non-performing assets and loans past due 90 days at September 30, 2007 totaled $3.7 million, or 0.19%, of total assets, as compared to $4.0 million, or 0.21% of total assets, at June 30, 2007 and $3.8 million, or 0.21%, of total assets one year ago.

3

Core Deposits

Core deposit growth by type of account is as follows:

	September 30,
(dollars in thousands)	2007		2006		% Change			3rd Qtr 2007 Cost of Funds
Demand noninterest-bearing	$	281,366	$	270,375		4	%		0.00	%
Demand interest-bearing		798,013		687,501		16			3.43
Savings		375,210		406,907		(8	)		2.41
Subtotal		1,454,589		1,364,783		7			2.45
Time		166,801		191,675		(13	)		4.16
Total core deposits	$	1,621,390	$	1,556,458		4	%		2.65	%

Core deposit growth by type of customer is as follows:

	September 30,		% of			September 30,		% of			%
(dollars in thousands)	2007		Total			2006		Total			Increase
Consumer	$	591,066		36	%	$	592,270		38	%		-	%
Commercial		535,220		33			504,572		32			6
Government		495,104		31			459,616		30			8
Total	$	1,621,390		100	%	$	1,556,458		100	%		4	%

Income Statement

	Three months ended September 30,							Nine months ended September 30,
(dollars in thousands, except per share data)	2007		2006		% Change			2007		2006		% Change
Total revenues	$	21,006	$	17,836		18	%	$	59,363	$	53,353		11	%
Total expenses		17,838		14,861		20	%		51,636		43,284		19	%
Net income		1,851		1,645		13	%		4,534		5,732		(21	)%
Diluted net income per share	$	0.28	$	0.26		8	%	$	0.69	$	0.89		(22	)%

Total revenues (net interest income plus non-interest income) for the third quarter increased $3.2 million, to $21.0 million, up 18% over the third quarter of 2006. Total revenues for the first nine months of 2007 increased by $6.0 million, or 11%, over the same period in 2006.

Net income totaled $1.9 million for the third quarter of 2007, a 13% increase over net income of $1.6 million for the third quarter of 2006. Net income per fully diluted share for the third quarter was $0.28, an 8% increase over the. $0.26 recorded for the same period a year ago.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2007 totaled $15.2 million, an increase of $2.0 million, or 15%, over the $13.2 million recorded a year ago.  This increase was a result of continued strong loan growth and improvement in the net interest margin.  For the first nine months of 2007, net interest income totaled $42.7 million, up $2.9 million, or 7%, over the $39.8 million recorded for the first nine months of 2006.

4

The net interest margin for the third quarter of 2007 was 3.36%, up 22 basis points (bps) over the 3.14% figure recorded in the third quarter of 2006, and compared to 3.19% for the second quarter of 2007.  The improvement in net interest margin is a result of increased yields on the Company’s earning assets combined with a reduction in the deposit and total cost of funds.

Net interest income, on a tax equivalent basis, totaled $15.5 million in the third quarter of 2007, an increase of $2.2 million, or 16%, over the third quarter one year ago. This figure was up $926,000 over net interest income on a fully taxable basis recorded in the second 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.

(dollars in thousands)	Net Interest Income
September 30 2007 vs. 2006	Volume Increase	Rate Change	Total Increase	% Increase
Quarter	$   956	$1,216	$2,172	16%
First Nine Months	2,404	861	3,265	8%

Noninterest Income

Noninterest income for the third quarter of 2007 totaled $5.8 million, up $1.1 million, or 24%, over $4.7 million a year ago.  The growth in noninterest income for the third quarter was reflected in increased deposit charges and service fees as depicted below:

	Three months ended September 30,							Nine months ended  September 30,
(dollars in thousands)	2007		2006		% Change			2007		2006		% Change
Deposit charges and service fees	$	5,402	$	4,317		25	%	$	14,977	$	12,242		22	%
Other income		414		363		14			1,543		1,310		18
Subtotal		5,816		4,680		24			16,520		13,552		22
Net investment securities gains		-		-		-			171		-		100
Total noninterest income	$	5,816	$	4,680		24	%	$	16,691	$	13,552		23	%

Noninterest income for the first nine months of 2007 increased $3.1 million, or 23%, from $13.6 million in 2006.  Like the third quarter, the increase is due to growth in the level of deposit charges and service fees.

Noninterest Expenses

Noninterest expenses for the third quarter of 2007 were $17.8 million, up 20%, over $14.9 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 third quarter of 2007 are costs related to two new stores opened in November 2006, as well as costs for the three new stores opened during the most recent quarter.  Also contributing to the increase was a higher level of regulatory fees as well as FDIC insurance assessments that were reintroduced to the Banking Industry starting January 1, 2007.  On a linked quarter basis, noninterest expenses were up $530,000, or 3%.

5

Noninterest expenses for the first nine months of 2007 totaled $51.6 million, up $8.4 million, or 19%, over the $43.3 million recorded during the same period in 2006.  This increase was attributable to the same costs as discussed in the previous paragraph.

Investments

At September 30, 2007, the Company’s investment portfolio totaled $721 million. Detailed below is information regarding the composition and characteristics of the Company’s investment portfolio at September 30, 2007.

Product Description	Available for Sale			Held to Maturity			Total
(in thousands)
Mortgage-backed securities:
Federal agencies pass through certificates (AAA rated)	$	73,066		$	84,370		$	157,436
Collateralized mortgage obligations (AAA rated)		318,486			34,762			353,248
U.S. Government agencies/other		4,825			205,532			210,357
Total	$	396,377		$	324,664		$	721,041
Duration (in years)		3.9			3.6			3.8
Average life (in years)		5.1			4.6			4.8
Quarterly average yield		5.40	%		5.31	%		5.37	%

At September 30, 2007, the after tax depreciation of the Company’s available for sale portfolio was $4.5 million.

Capital

Stockholders’ equity at September 30, 2007 totaled $108.3 million, an increase of $9.1 million, or 9%, over stockholders’ equity of $99.2 million at September 30, 2006.  Return on average stockholders’ equity (ROE) for the three months and nine months ended September 30, 2007 and 2006 are shown below:

Return on Equity
Three Months Ended September 30,		Nine Months Ended September 30,
2007	2006	2007	2006
6.91%	6.77%	5.79%	8.15%

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

	Commerce	Regulatory Guidelines “Well Capitalized”
Leverage Ratio	7.30%	5.00%
Tier 1	9.87%	6.00%
Total Capital	10.62%	10.00%

6

Shareholder Returns

	As of September 30, 2007
	Commerce	NASDAQ Bank Index
1 Year	21%	(5%)
3 Years	11%	3%
5 Years	12%	9%
10 Years	12%	7%

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”).

7

EX-99.2

Pennsylvania Commerce Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
	At or for the									At or for the
	Three Months Ended									Nine Months Ended
	September 30,									September 30,
							%								%
(in  thousands,  except  per  share  amounts)	2007			2006			Change			2007			2006			Change
Income Statement Data:
Net interest income	$	15,190		$	13,156			15	%	$	42,672		$	39,801			7	%
Provision for loan losses		537			428			25			1,517			1,409			8
Noninterest income		5,816			4,680			24			16,691			13,552			23
Total revenues		21,006			17,836			18			59,363			53,353			11
Noninterest operating expenses		17,838			14,861			20			51,636			43,284			19
Net income		1,851			1,645			13			4,534			5,732			(21	)
Per Common Share Data:
Net  income:  Basic	$	0.29		$	0.27			7	%	$	0.72		$	0.93			(23	)%
Net  income:  Diluted		0.28			0.26			8			0.69			0.89			(22	)
Book Value										$	17.11		$	16.02			7	%
Weighted average shares outstanding:
Basic		6,259			6,116						6,217			6,086
Diluted		6,469			6,373						6,443			6,381
Balance Sheet Data:
Total assets										$	2,015,486		$	1,838,173			10	%
Loans (net)											1,104,322			927,950			19
Allowance for loan losses											10,673			9,635			11
Investment securities											721,041			737,868			(2	)
Total deposits											1,641,887			1,606,253			2
Core deposits											1,621,390			1,556,458			4
Stockholders' equity											108,321			99,180			9
Capital:
Stockholders' equity to total assets											5.37	%		5.40	%
Leverage ratio											7.30			7.34
Risk based capital ratios:
Tier 1											9.87			10.24
Total Capital											10.62			10.99
Performance Ratios:
Cost of funds		3.16	%		3.27	%					3.29	%		3.07	%
Deposit cost of funds		2.31			2.47						2.49			2.27
Net interest margin		3.36			3.14						3.20			3.23
Return on average assets		0.38			0.36						0.32			0.44
Return on average total stockholders' equity		6.91			6.77						5.79			8.15
Asset Quality:
Net charge-offs to average loans outstanding											0.05	%		0.11	%
Nonperforming assets to total period-end assets											0.19			0.21
Allowance for loan losses to total period-end loans											0.96			1.03
Allowance for loan losses to nonperforming loans											319			265
Nonperforming assets to capital and reserves											3	%		3	%

Pennsylvania Commerce Bancorp, Inc.
Selected Consolidated Financial Data
	At or for the
	Three Months Ended
	September 30,			June 30,			%			September 30,			%
(in  thousands,  except  per  share  amounts)	2007			2007			Change			2006			Change
Income Statement Data:
Net interest income	$	15,190		$	14,254			7	%	$	13,156			15	%
Provision for loan losses		537			500			7			428			25
Noninterest income		5,816			5,705			2			4,680			24
Total Revenues		21,006			19,959			5			17,836			18
Noninterest operating expenses		17,838			17,308			3			14,861			20
Net income		1,851			1,571			18			1,645			13
Per Common Share Data:
Net  income:  Basic	$	0.29		$	0.25			16	%	$	0.27			7	%
Net  income:  Diluted		0.28			0.24			17			0.26			8
Effective Tax Rate		29.6	%		27.0	%					35.4	%
Balance Sheet Data:
Total assets	$	2,015,486		$	1,915,463			5	%	$	1,838,173			10	%
Loans (net)		1,104,322			1,070,353			3			927,950			19
Investment Securities		721,041			657,120			10			737,868			(2	)
Total deposits		1,641,887			1,532,449			7			1,606,253			2
Core deposits		1,621,390			1,514,453			7			1,556,458			4
Stockholders' equity		108,321			104,721			3			99,180			9
Net interest margin		3.36	%		3.19	%					3.14	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income

(unaudited)

	Quarter ending,												Year-to-date,
	September 2007				June 2007				September 2006				September 2007				September 2006
	Average		Average		Average		Average		Average		Average		Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$     682,415	9,154	5.37	%	$     686,714	$    9,108	5.31	%	$    738,088	$   9,876	5.35	%	$   691,202	$  27,641	5.33	%	$    737,054	$  29,194	5.28	%
Tax-exempt	1,620	25	6.17		1,620	25	6.17		1,618	25	6.18		1,620	74	6.09		2,108	105	6.64
Total securities	684,035	9,179	5.37		688,334	9,133	5.31		739,706	9,901	5.35		692,822	27,715	5.33		739,162	29,299	5.29
Federal funds sold	0	0	0.00		0	0	0.00		0	0	0.00		0	0	0.00		0	0	0.00
Loans receivable
Mortgage and construction	539,964	10,030	7.29		530,395	9,695	7.24		451,923	8,204	7.14		516,237	28,199	7.22		447,705	23,802	7.03
Commercial loans and lines of credit	301,787	6,083	7.89		301,393	6,068	7.97		266,821	5,509	8.08		305,285	18,419	7.96		251,735	15,205	7.97
Consumer	210,156	3,620	6.83		201,034	3,410	6.80		173,892	2,973	6.78		201,906	10,277	6.81		165,741	8,262	6.66
Tax-exempt	48,025	828	6.90		49,847	859	6.89		24,357	409	6.72		44,894	2,299	6.83		21,711	1,075	6.60
Total loans receivable	1,099,932	20,561	7.35		1,082,669	20,032	7.35		916,993	17,095	7.33		1,068,322	59,194	7.33		886,892	48,344	7.21
Total earning assets	$  1,783,967	$ 29,740	6.59	%	$  1,771,003	$  29,165	6.55	%	$ 1,656,699	$ 26,996	6.45	%	$  1,761,144	$ 86,909	6.55	%	$ 1,626,054	$ 77,643	6.34	%
Sources of Funds
Interest-bearing deposits
Regular savings	$    373,663	$   2,266	2.41	%	$    375,370	$   2,365	2.53	%	$    368,467	$   2,290	2.47	%	$   375,575	$    7,121	2.53	%	$    356,746	$   5,962	2.23	%
Interest checking and money market	704,352	6,091	3.43		674,125	6,138	3.65		600,658	5,732	3.79		693,072	19,081	3.68		568,884	15,120	3.55
Time deposits	173,084	1,817	4.16		190,854	2,024	4.25		193,738	1,951	4.00		188,093	5,942	4.22		193,931	5,477	3.78
Public funds time	18,290	230	4.99		17,839	219	4.92		32,133	351	4.33		18,575	685	4.93		34,429	1,077	4.18
Total interest-bearing deposits	1,269,389	10,404	3.25		1,258,188	10,746	3.43		1,194,996	10,324	3.43		1,275,315	32,829	3.44		1,153,990	27,636	3.20
Short-term borrowings	217,130	2,906	5.24		238,520	3,204	5.31		219,130	3,003	5.36		207,157	8,329	5.30		229,018	8,723	5.02
Other borrowed money	25,815	289	4.38		0	0	0.00		0	0	0.00		8,700	289	4.38		0	0	0.00
Junior subordinated debt	29,400	661	8.99		29,400	661	8.99		13,943	361	10.36		29,400	1,983	8.99		13,716	1,070	10.40
Total interest-bearing liabilities	1,541,734	14,260	3.66		1,526,108	14,611	3.83		1,428,069	13,688	3.79		1,520,572	43,430	3.81		1,396,724	37,429	3.57
Noninterest-bearing funds (net)	242,233				244,895				228,630				240,572				229,330
Total sources to fund earning assets	$ 1,783,967	$  14,260	3.16		$  1,771,003	$    14,611	3.30		$ 1,656,699	$  13,688	3.27		$  1,761,144	$ 43,430	3.29		$ 1,626,054	$ 37,429	3.07
Net interest income and margin
on a tax-equivalent basis		$  15,480	3.43	%		$  14,554	3.25	%		$  13,308	3.18	%		$ 43,479	3.26	%		$  40,214	3.27	%
Tax-exempt adjustment		290				300				152				807				413
Net interest income and margin		$  15,190	3.36	%		$  14,254	3.19	%		$   13,156	3.14	%		$ 42,672	3.20	%		$  39,801	3.23	%
Other Balances:
Cash and due from banks	$       55,115				$       51,842				$       51,904				$     51,803				$       49,019
Other assets	90,536				90,813				82,357				90,364				77,635
Total assets	1,929,618				1,913,658				1,790,960				1,903,311				1,752,708
Demand deposits (noninterest-bearing)	274,089				274,794				258,786				270,346				252,919
Other liabilities	7,591				7,725				7,699				7,736				9,022
Stockholders' equity	106,204				105,031				96,406				104,657				94,043

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
	9/30/2007			9/30/2006			Year-ended			9/30/2007			9/30/2006
(dollar amounts in thousands)	Three Months Ended						12/31/2006			Nine Months Ended
Balance at beginning of period	$	10,358		$	9,677		$	9,231		$	9,685		$	9,231
Provisions charged to operating expense		537			428			1,634			1,517			1,409
		10,895			10,105			10,865			11,202			10,640
Recoveries on loans charged-off:
Commercial		2			13			34			4			62
Consumer		9			13			71			23			40
Real estate		0			0			0			8			0
Total recoveries		11			26			105			35			102
Loans charged-off:
Commercial		(207	)		(249	)		(895	)		(469	)		(750	)
Consumer		(2	)		(247	)		(390	)		(69	)		(357	)
Real estate		(24	)		0			0			(26	)		0
Total charged-off		(233	)		(496	)		(1,285	)		(564	)		(1,107	)
Net charge-offs		(222	)		(470	)		(1,180	)		(529	)		(1,005	)
Balance at end of period	$	10,673		$	9,635		$	9,685		$	10,673		$	9,635
Net charge-offs as a percentage of
average loans outstanding		0.02	%		0.05	%		0.13	%		0.05	%		0.11	%
Allowance for loan losses as a percentage of
period-end loans		0.96	%		1.03	%		0.99	%		0.96	%		1.03	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Non-Performing Loans and Assets
(unaudited)
		September 30,			June 30,			March 31,			December 31,			September 30,
		2007			2007			2007			2006			2006
Nonaccrual loans:
	Commercial	$	997		$	1,362		$	945		$	984		$	1,275
	Consumer		57			54			19			19			139
	Mortgage:
	Construction		529			520			394			247			0
	Mortgage		1,767			1,784			2,207			2,129			2,216
	Total nonaccrual loans		3,350			3,720			3,565			3,379			3,630
Loans past due 90 days or more
	and still accruing		0			0			0			2			0
Renegotiated loans			0			0			0			0			0
	Total non-performing loans		3,350			3,720			3,565			3,381			3,630
Foreclosed real estate			390			300			300			159			159
Total non-performing assets		$	3,740		$	4,020		$	3,865		$	3,540		$	3,789
Non-performing loans to total loans			0.30	%		0.34	%		0.34	%		0.34	%		0.39	%
Non-performing assets to total assets			0.19	%		0.21	%		0.20	%		0.19	%		0.21	%
Non-performing loan coverage			319	%		278	%		280	%		287	%		265	%
Allowance for loan losses as a percentage
	of total period-end loans		0.96	%		0.96	%		0.95	%		0.99	%		1.03	%
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.