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 15, 2008 (July 15, 2008)

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 15 2008, Pennsylvania Commerce Bancorp, Inc. issued a press release reporting financial results for its second quarter of 2008.  A copy of the press release is attached as Exhibit 99.1 to this report.

On July 15 2008, 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 15, 2008

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 15, 2008	/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 15, 2008
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

REPORTS RECORD QUARTERLY NET INCOME AND EPS;

 LOANS INCREASE 21%

July 15, 2008 – Harrisburg, PA – Pennsylvania Commerce Bancorp, Inc. (NASDAQ Global Select Market Symbol: COBH), parent company of Commerce Bank/Harrisburg, N.A., reported record loans, revenues, net income and earnings per share for the second quarter of 2008, announced Gary L. Nalbandian, Chairman.

Second Quarter 2008 Financial Highlights
					%
	06/30/08		06/30/07		Change
Total assets	$  2.05	Billion	$  1.92	Billion	7 %
Total deposits	$  1.55	Billion	$  1.53	Billion	1 %
Total loans (net)	$  1.30	Billion	$  1.07	Billion	21 %
Total revenues	$  25.6	Million	$  20.0	Million	28 %
Net income	$    3.5	Million	$    1.6	Million	123 %
Diluted net income per share	$  0.54		$  0.24		125 %

Chairman’s Statement

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

Ø   Net income was $3.5 million for the second quarter, up $1.9 million, or 123%, over the second quarter one year ago. Net income for the first six months of 2008 totaled $6.7 million, up $4.0 million, or 150%, over the first half of 2007.

Ø   Diluted net income per share was $0.54 for the quarter, up $0.30, or 125%, over the second quarter of 2007.  Diluted net income per share for the first six months of 2008 was $1.03, up $0.62, or 151%, over the same period last year.

Ø   Total revenues grew $5.6 million, or 28%, for the second quarter of 2008 over the second quarter one year ago.

Ø   Net interest income for the quarter increased $4.8 million, or 34%, over the same period in 2007.

Ø   The Company’s net interest margin for the second quarter improved 91 basis points over the same quarter one year ago to 4.10%.

Ø   Deposit charges and service fees grew 23% for the second quarter over the same period one year ago.

Ø   Stockholders’ equity increased $7.7 million, or 7%, to $112.4 million compared to June 30, 2007.

Ø   Return on average stockholders’ equity improved to 12.57% for the quarter vs. 6.00% for the second quarter of 2007.

Ø   Total assets reached $2.0 billion, up 7% over the past twelve months.

Ø   Net loans grew $228 million, or 21%, over the second quarter one year ago.

Ø   The Company recently announced that its common stock has been added to the Russell 3000 Index.  The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based upon total market capitalization, which represents 98 percent of the investable U.S. equity market.

Income Statement

	Three months ended June 30,							Six months ended June 30,
(dollars in thousands, except per share data)	2008		2007		% Change			2008		2007		% Change
Total revenues	$	25,580	$	19,959		28	%	$	50,156	$	38,357		31	%
Total operating expenses		19,077		17,308		10	%		37,978		33,798		12	%
Net income		3,506		1,571		123	%		6,712		2,683		150	%
Diluted net income per share	$	0.54	$	0.24		125	%	$	1.03	$	0.41		151	%

Total revenues (net interest income plus non-interest income) for the second quarter increased $5.6 million to $25.6 million, up 28% over the second quarter of 2007. Total revenues for the first six months of 2008 increased by $11.8 million, or 31%, over the same period in 2007.

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Net income totaled $3.5 million for the second quarter of 2008, a $1.9 million increase over net income of $1.6 million for the second quarter of 2007. Net income per fully diluted share for the second quarter of 2008 was $0.54, a 125% increase over the $0.24 recorded for the same period a year ago.

Net income for the first six months of 2008 grew $4.0 million, or 150%, over the first half of 2007.  Net income per fully diluted share totaled $1.03 for the first half of 2008, up $0.62, or 151%, over the same period last year.

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2008 totaled $19.1 million, an increase of $4.8 million, or 34%, over the $14.3 million recorded a year ago.  This increase was a result of continued strong loan growth combined with significant improvement in the Company’s net interest margin.  For the first six months of 2008, net interest income totaled $37.7 million, up $10.2 million, or 37%, over the $27.5 million recorded the first half of 2007.

The net interest margin for the second quarter of 2008 was 4.10%, up 3 basis points on a linked-quarter basis and up 91 basis points over the 3.19% figure recorded in the second quarter of 2007. The improvement in net interest margin is the result of continued strong loan growth combined with a marked reduction in the Company’s deposit and total cost of funds.

Net interest income, on a tax equivalent basis, totaled $19.5 million in the second quarter of 2008, an increase of $5.0 million, or 34%, over the second quarter one year ago. Net interest margin on a fully-taxable equivalent basis was 4.20%.  Fully taxable net interest income for the first six months of 2008 was $38.5 million, up $10.5 million, or 37%, as compared to the same period one year ago.  Year-to-date net interest margin on a fully taxable basis was 4.17%, up 100 basis points over the first six months 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 noticeable improvement in the net interest margin.

(dollars in thousands)	Net Interest Income
June 30 2008 vs. 2007	Volume Increase	Rate Change	Total Increase	% Increase
Quarter	$   1,316	$   3,654	$    4,970	34%
Six Months	3,008	7,454	10,462	37%

Noninterest Income

Noninterest income for the second quarter of 2008 totaled $6.5 million, up $788,000, or 14%, over $5.7 million a year ago.  The growth in noninterest income for the quarter was reflected in increased deposit charges and service fees as depicted below:

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	Three months ended June 30,								Six months ended June 30,
(dollars in thousands)	2008			2007		% Change			2008			2007		% Change
Deposit charges and service fees	$	6,243		$	5,073		23	%	$	11,919		$	9,575		25	%
Other income		407			632		(36	)		724			1,129		(36	)
Subtotal		6,650			5,705		17			12,643			10,704		18
Net investment securities gains (losses)		(157	)		-					(157	)		171
Total noninterest income	$	6,493		$	5,705		14	%	$	12,486		$	10,875		15	%

Noninterest Expenses

Noninterest expenses for the second quarter of 2008 were $19.1 million, up 10%, over $17.3 million one year ago.  The increases in noninterest expenses for the quarter were widespread across several categories, as shown in the following table:

	Three months ended June 30,							Six months ended June 30,
(dollars in thousands)	2008		2007		% Change			2008		2007		% Change
Salaries and employee benefits	$	9,342	$	8,554		9	%	$	18,223	$	16,952		7	%
Occupancy		1,996		1,771		13			4,070		3,606		13
Furniture and equipment		1,134		992		14			2,186		1,947		12
Advertising and marketing		826		735		12			1,663		1,521		9
Data Processing		1,829		1,657		10			3,534		3,132		13
Postage and supplies		469		469		0			1,001		1,008		(1	)
Regulatory assessments and costs		601		707		(15	)		1,739		894		95
Telephone		585		574		2			1,181		1,138		4
Other expenses		2,295		1,849		24			4,381		3,600		22
Total noninterest expenses	$	19,077	$	17,308		10	%	$	37,978	$	33,798		12	%

Noninterest expenses for the first six months of 2008 totaled $38.0 million, up $4.2 million, or 12%, over the $33.8 million recorded during the same period in 2007.  Increases in noninterest expenses for both the quarter and six months ended June 30, 2008 include costs associated with three stores that were opened during the second half of 2007.  Therefore, these costs are not included for the quarter and six months ended June 30, 2007.

Balance Sheet

	June 30,
(dollars in thousands)	2008		2007		%  Change
Total assets	$	2,045,103	$	1,915,463		7	%
Total loans (net)		1,298,308		1,070,353		21	%
Total deposits		1,546,672		1,532,449		1	%
Total core deposits		1,532,208		1,514,453		1	%

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Lending

Total gross loans increased $230.0 million, or 21%, to $1.31 billion from $1.08 billion one year ago, with the growth represented across all loan categories. The composition of the Company’s loan portfolio is as follows:

(dollars in thousands)	06/30/08		% of Total			06/30/07		% of Total			$  Increase		% Increase
Commercial	$	410,419		31	%	$	330,300		31	%	$	80,119		24	%
Owner occupied		191,813		15			129,856		12			61,957		48
Total commercial		602,232		46			460,156		43			142,076		31
Consumer/residential		318,817		24			294,681		27			24,136		8
Commercial real estate		389,469		30			325,874		30			63,595		20
Gross loans	$	1,310,518		100	%	$	1,080,711		100	%	$	229,807		21	%

Asset Quality

The Company’s asset quality ratios are highlighted below:

				Quarter Ended
	June 30,  2008			March 31,  2008			June 30,  2007
Non-performing assets/total assets		0.65	%		0.22	%		0.21	%
Net loan charge-offs/average total loans		0.07	%		0.01	%		0.01	%
Loan loss reserve/gross loans		0.93	%		0.96	%		0.96	%
Non-performing loan coverage		95	%		309	%		278	%
Non-performing assets/capital and reserves		11	%		4	%		3	%

Non-performing assets and loans past due 90 days at June 30, 2008 totaled $13.3 million, or 0.65%, of total assets, as compared to $4.3 million, or 0.22% of total assets, at March 31, 2008 and $4.0 million, or 0.21%, of total assets one year ago. The increase in non-performing assets is primarily associated with four different credits totaling $7.5 million, with more than half of the increase related to one borrower.  As a result, the Company’s second quarter provision for loan losses totaled $1.4 million as compared to $500,000 recorded in the second quarter of 2007.  Management has performed an assessment of the collateral related to these credits and believes the allowance for loan losses remains adequate for the level of risk inherent in the loan portfolio.  For the first six months of 2008, the loan loss provision totaled $2.4 million vs. $980,000 for the same period last year.

Total charge-offs for the second quarter were $817,000 vs. $134,000 for the second quarter of 2007, with approximately $700,000 of this total related to two credits.  Total charge-offs year-to-date were $908,000 vs. $307,000 for the first half of 2007.

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Core Deposits

Core deposit growth by type of account is as follows:

	June 30,
(dollars in thousands)	2008		2007		% Change			2nd Qtr 2008 Cost of Funds
Demand non-interest-bearing	$	293,299	$	293,264		0	%		0.00	%
Demand interest-bearing		705,077		654,648		8			1.48
Savings		341,185		384,445		(11	)		1.07
Subtotal		1,339,561		1,332,357		1			1.05
Time		192,647		182,096		6			3.61
Total core deposits	$	1,532,208	$	1,514,453		1	%		1.39	%

Core deposit growth by type of customer is as follows:

	June 30,		% of			June 30,		% of			%
(dollars in thousands)	2008		Total			2007		Total			Change
Consumer	$	670,040		44	%	$	621,620		41	%		8	%
Commercial		521,874		34			545,418		36			( 4	)
Government		340,294		22			347,415		23			( 2	)
Total	$	1,532,208		100	%	$	1,514,453		100	%		1	%

Investments

At June 30, 2008, the Company’s investment portfolio totaled $539.5 million. Detailed below is information regarding the composition and characteristics of the Company’s investment portfolio at June 30, 2008.

Product Description	Available for Sale			Held to Maturity			Total
(in thousands)
Mortgage-backed securities:
Federal government agencies pass through certificates	$	65,439		$	75,924		$	141,363
Collateralized mortgage obligations (government                    agency or AAA rated)		300,372			32,940			333,312
U.S. Government agencies/other		4,882			59,913			64,795
Total	$	370,693		$	168,777		$	539,470
Duration (in years)		3.7			5.0			4.1
Average life (in years)		4.7			6.7			5.3
Quarterly average yield		4.82	%		5.34	%		4.97	%

At June 30, 2008, the after tax depreciation of the Company’s available for sale portfolio was $11.8 million as compared to $9.6 million at March 31, 2008 and vs. $5.5 million at June 30, 2007.  The market for certain securities held in the Company’s available-for-sale portfolio remained volatile during the second quarter due to extraordinary economic and market dislocations.  As a result of this volatility, the market prices for many types of securities at June 30, 2008 were lower than at March 31, 2008 due to the distressed market conditions.  Management has reviewed such securities for continued and constant receipt of scheduled principal and interest payments as well as credit-rating adjustments.  Based upon this

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review, management does not believe any individual unrealized loss as of June 30, 2008 represents other-than-temporary impairment.  The unrealized losses on these securities are primarily the result of changes in the liquidity levels in the market in addition to changes in general market interest rates and not by material changes in the credit characteristics of the investment securities portfolio.  In addition, at June 30, 2008, management had the positive intent and ability to hold these securities to recovery or maturity.

Capital

Stockholders’ equity at June 30, 2008 totaled $112.4 million, an increase of $7.7 million, or 7%, over stockholders’ equity of $104.7 million at June 30, 2007.  Return on average stockholders’ equity (ROE) for the second quarter and six months ended June 30, 2008 and 2007 are shown below:

Return on Equity
Three Months Ended June 30,		Six Months Ended June 30,
2008	2007	2008	2007
12.57%	6.00%	11.98%	5.21%

The Company’s capital ratios at June 30, 2008 were as follows:

	Commerce	Regulatory Guidelines “Well Capitalized”
Leverage Ratio	7.70%	5.00%
Tier 1	10.05%	6.00
Total Capital	10.86%	10.00

Stockholder Returns

	As of June 30, 2008
	Commerce	NASDAQ Bank Index	S & P Index	Russell 3000 Index
1 Year	(15)%	(33)%	(53)%	(38)%
5 Years	5  %	( 1)%	( 7)%	1  %
10 Years	7  %	2 %	( 3)%	2  %

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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 Company’s dependence on TD Commerce Bancorp, Inc. (and Commerce Bank, N.A.) to provide various services to the Company and the costs associated with securing alternate providers of such services;

·   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;

·   the impact of the extraordinary economic and market dislocations on the fair value market prices of investment securities;

·   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);

·   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.

The Company cautions that the foregoing list of important factors is not exclusive. The Company cautions that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance, or achievements to differ materially from the future results, performance, or achievements the Company has anticipated in such forward-looking statements. You should note that many factors, some of which are discussed in this Press Release, could affect the Company’s future financial results and could cause those results to differ materially from those expressed or implied in the Company’s forward-looking statements contained or incorporated by reference in this document. 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 SEC.

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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)	2008		2007		Change		2008		2007			Change
Income Statement Data:
Net interest income	$       19,087		$       14,254		34	%	$         37,670		$        27,482			37	%
Provision for loan losses	1,400		500		180		2,375		980			142
Noninterest income	6,493		5,705		14		12,486		10,875			15
Total revenues	25,580		19,959		28		50,156		38,357			31
Noninterest operating expenses	19,077		17,308		10		37,978		33,798			12
Net income	3,506		1,571		123		6,712		2,683			150
Per Common Share Data:
Net  income:  Basic	$            0.55		$           0.25		120	%	$              1.05		$            0.43			144	%
Net  income:  Diluted	0.54		0.24		125		1.03		0.41			151
Book Value							$           17.53		$          16.60			6	%
Weighted average shares outstanding:
Basic	6,341		6,223				6,334		6,195
Diluted	6,504		6,458				6,499		6,430
Balance Sheet Data:
Total assets							$   2,045,103		$   1,915,463			7	%
Loans (net)							1,298,308		1,070,353			21
Allowance for loan losses							12,210		10,358			18
Investment securities							539,470		657,120			(18)
Total deposits							1,546,672		1,532,449			1
Core deposits							1,532,208		1,514,453			1
Stockholders' equity							112,371		104,721			7
Capital:
Stockholders' equity to total assets							5.49	%	5.47	%
Leverage ratio							7.70		7.22
Risk based capital ratios:
Tier 1							10.05		10.03
Total Capital							10.86		10.78
Performance Ratios:
Cost of funds	1.73	%	3.30	%			1.92	%	3.35	%
Deposit cost of funds	1.18		2.43				1.31		2.58
Net interest margin	4.10		3.19				4.08		3.11
Return on average assets	0.71		0.33				0.69		0.29
Return on average total stockholders' equity	12.57		6.00				11.98		5.21
Asset Quality:
Net charge-offs to average loans outstanding							0.07	%	0.03	%
Nonperforming  assets  to  total  period-end  assets							0.65		0.21
Allowance  for  loan  losses  to  total  period-end  loans							0.93		0.96
Allowance  for  loan  losses  to  nonperforming  loans							95		278
Nonperforming  assets  to  capital and reserves							11	%	3	%

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

	Quarter ending,
	June 2008				March 2008				June 2007
	Average		Average		Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$      572,632	$    7,109	4.97	%	$    616,294	$    7,927	5.14	%	$    686,714	$    9,108	5.31	%
Tax-exempt	1,622	25	6.17		1,621	25	6.17		1,620	25	6.17
Total securities	574,254	7,134	4.97		617,915	7,952	5.15		688,334	9,133	5.31
Federal funds sold	0	0	0.00		0	0	0.00		0	0	0.00
Loans receivable
Mortgage and construction	622,055	10,248	6.53		579,577	9,992	6.83		530,395	9,695	7.24
Commercial loans and lines of credit	344,512	5,373	6.17		332,486	5,865	6.98		301,393	6,068	7.97
Consumer	235,819	3,543	6.04		226,889	3,717	6.59		201,034	3,410	6.80
Tax-exempt	72,240	1,227	6.79		56,742	985	6.94		49,847	859	6.89
Total loans receivable	1,274,626	20,391	6.36		1,195,694	20,559	6.83		1,082,669	20,032	7.35
Total earning assets	$   1,848,880	$  27,525	5.93	%	$ 1,813,609	$  28,511	6.26	%	$ 1,771,003	$  29,165	6.55	%
Sources of Funds
Interest-bearing deposits
Regular savings	$      335,255	$       889	1.07	%	$    349,976	$    1,200	1.38	%	$    375,370	$    2,365	2.53	%
Interest checking and money market	694,178	2,548	1.48		706,625	3,360	1.91		674,125	6,138	3.65
Time deposits	199,025	1,788	3.61		166,221	1,650	3.99		190,854	2,024	4.25
Public funds time	24,607	223	3.64		22,920	237	4.16		17,839	219	4.92
Total interest-bearing deposits	1,253,065	5,448	1.75		1,245,742	6,447	2.08		1,258,188	10,746	3.43
Short-term borrowings	236,957	1,338	2.23		230,749	1,911	3.28		238,520	3,204	5.31
Other borrowed money	50,000	554	4.38		50,000	555	4.39		0	0	0.00
Junior subordinated debt	29,400	661	8.99		29,400	661	8.99		29,400	661	8.99
Total interest-bearing liabilities	1,569,422	8,001	2.04		1,555,891	9,574	2.46		1,526,108	14,611	3.83
Noninterest-bearing funds (net)	279,458				257,718				244,895
Total sources to fund earning assets	$    1,848,880	$    8,001	1.73	%	$ 1,813,609	$    9,574	2.11	%	$ 1,771,003	$  14,611	3.30	%
Net interest income and margin
on a tax-equivalent basis		$  19,524	4.20	%		$  18,937	4.15	%		$  14,554	3.25	%
Tax-exempt adjustment		437				354				300
Net interest income and margin		$  19,087	4.10	%		$  18,583	4.07	%		$  14,254	3.19	%
Other Balances:
Cash and due from banks	$        43,842				$      46,913				$      51,842
Other assets	83,137				89,927				90,813
Total assets	1,975,859				1,950,449				1,913,658
Demand deposits (noninterest-bearing)	283,693				270,345				274,794
Other liabilities	10,577				11,041				7,725
Stockholders' equity	112,167				113,172				105,031

	Year-to-date,
	June 2008				June 2007
	Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$        594,463	$    15,036	5.06	%	$    695,668	$    18,487	5.31	%
Tax-exempt	1,621	50	6.17		1,619	50	6.18
Total securities	596,084	15,086	5.06		697,287	18,537	5.32
Federal funds sold	0	0	0.00		0	0	0.00
Loans receivable
Mortgage and construction	600,816	20,240	6.67		504,177	18,169	7.17
Commercial loans and lines of credit	338,499	11,238	6.57		307,063	12,336	7.99
Consumer	231,354	7,260	6.31		197,713	6,657	6.79
Tax-exempt	64,491	2,212	6.86		43,303	1,470	6.79
Total loans receivable	1,235,160	40,950	6.59		1,052,256	38,632	7.32
Total earning assets	$     1,831,244	$    56,036	6.09	%	$ 1,749,543	$    57,169	6.52	%
Sources of Funds
Interest-bearing deposits
Regular savings	$        342,616	$      2,088	1.23	%	$    376,546	$      4,855	2.60	%
Interest checking and money market	700,401	5,909	1.70		687,338	12,990	3.81
Time deposits	182,623	3,438	3.79		195,721	4,125	4.25
Public funds time	23,763	460	3.89		18,720	455	4.90
Total interest-bearing deposits	1,249,403	11,895	1.91		1,278,325	22,425	3.54
Short-term borrowings	233,853	3,249	2.75		202,087	5,423	5.34
Other borrowed money	50,000	1,109	4.39		0	0	0.00
Junior subordinated debt	29,400	1,322	8.99		29,400	1,322	8.99
Total interest-bearing liabilities	1,562,656	17,575	2.25		1,509,812	29,170	3.88
Noninterest-bearing funds (net)	268,588				239,731
Total sources to fund earning assets	$    1,831,244	$    17,575	1.92	%	$ 1,749,543	$    29,170	3.35	%
Net interest income and margin
on a tax-equivalent basis		$    38,461	4.17	%		$    27,999	3.17	%
Tax-exempt adjustment		791				517
Net interest income and margin		$    37,670	4.08	%		$    27,482	3.11	%
Other Balances:
Cash and due from banks	$          45,378				$      50,119
Other assets	86,533				90,277
Total assets	1,963,155				1,889,939
Demand deposits (noninterest-bearing)	277,019				268,443
Other liabilities	10,810				7,813
Stockholders' equity	112,670				103,871

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
		6/30/2008		6/30/2007		Year-ended		6/30/2008		6/30/2007
(dollar amounts in thousands)		Three Months Ended				12/31/2007		Six Months Ended
Balance at beginning of period		$          11,627		$            9,992		$         9,685		$          10,742		$            9,685
Provisions charged to operating expense		1,400		500		1,762		2,375		980
		13,027		10,492		11,447		13,117		10,665
Recoveries on loans charged-off:
	Commercial	7		1		11		131		2
	Consumer	17		9		53		23		14
	Real estate	0		0		8		0		8
Total recoveries		24		10		72		154		24
Loans charged-off:
	Commercial	(719)		(86)		(634)		(884)		(262)
	Consumer	(70)		(58)		(69)		(108)		(67)
	Real estate	(52)		0		(74)		(69)		(2)
Total charged-off		(841)		(144)		(777)		(1,061)		(331)
Net charge-offs		(817)		(134)		(705)		(907)		(307)
Balance at end of period		$          12,210		$          10,358		$       10,742		$          12,210		$          10,358
Net charge-offs as a percentage of
average loans outstanding		0.07	%	0.01	%	0.07	%	0.07	%	0.03	%
Allowance for loan losses as a percentage of
period-end loans		0.93	%	0.96	%	0.93	%	0.93	%	0.96	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Non-Performing Loans and Assets
(unaudited)
				June 30,	March 31,	December 31,	September 30,	June 30,
				2008	2008	2007	2007	2007
Nonaccrual loans:
	Commercial			$         2,577	$            1,158	$                534	$               997	$          1,362
	Consumer			125	120	57	57	54
	Real Estate:
		Construction		735	284	385	529	520
		Real Estate		3,433	2,183	1,959	1,767	1,784
			Total nonaccrual loans	6,870	3,745	2,935	3,350	3,720
Loans past due 90 days or more
	and still accruing			6,036	15	0	0	0
Renegotiated loans				0	0	0	0	0
	Total nonperforming loans			12,906	3,760	2,935	3,350	3,720
Foreclosed real estate				421	588	489	390	300
Total nonperforming assets				$       13,327	$            4,348	$             3,424	$            3,740	$          4,020
Nonperforming loans to total loans				0.98%	0.31%	0.25%	0.30%	0.34%
Nonperforming assets to total assets				0.65%	0.22%	0.17%	0.19%	0.21%
Nonperforming loan coverage				95%	309%	366%	319%	278%
Allowance for loan losses as a percentage
	of total period-end loans			0.93%	0.96%	0.93%	0.96%	0.96%
Nonperforming assets / capital plus allowance for loan losses				11%	4%	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.