Commerce Bank Surpasses $1 Billion in Assets; Milestone Attributed to 'WOW!' Service and Super Convenience.

Business Editors

CAMP HILL, Pa.--(BUSINESS WIRE)--Jan. 22, 2004

Pennsylvania Commerce Bancorp, Inc. (NASDAQ:COBH), parent company of Commerce Bank/Harrisburg, NA, today announced that the bank has surpassed $1 billion in total assets.

"I am tremendously proud of our team, more than 600 employees strong, who deliver Commerce Bank's legendary service to customers every day," said Chairman, President and CEO Gary L. Nalbandian. "I am especially grateful to our customers, our Commerce Fans, who are at the heart of the Commerce story."

Commerce Bank, based in Camp Hill, PA, currently has a network of 23 stores in Berks, Cumberland, Dauphin, Lebanon and York counties. For 19 years, the bank has challenged conventional banking trends by incorporating the best practices of the nation's leading retailers. Commerce's retail approach features super-convenient hours, uniform facilities, multiple delivery channels and, above all, premium customer service.

"Delivering our unique brand of 'WOW! the Customer' service and unparalleled convenience is what has enabled us to achieve this exciting milestone," Nalbandian said. "It's these same attributes that are going to make it possible to achieve our next goal, which is to double our assets to $2 billion and grow our branch network to 40 offices by 2006."

Commerce pioneered industry concepts such as seven-day branch banking and free personal checking. In recent years, as other banks abandoned branch banking, forcing customers to use remote delivery channels, Commerce never compromised on its mission to provide customers with "anytime, anywhere banking." Commerce customers have always had choice and convenience and are empowered to bank in-store, online or on the phone.

The recognizable design of the Commerce prototype branch -- including its spacious interior, free Penny Arcade coin counting machine, historic mural and easily accessible ATM machine -- underscores the unique Commerce retail banking experience.

Commerce's hallmark products and services include seven-day branch banking, totally free checking, no-fee instant-issue ATM/Visa check card, free Penny Arcade coin counting machines, America's Best Online Banking and 24/7 Bank-by-Phone.

Commerce Bank/Harrisburg has been recognized by U.S. Banker as the No. 1 performer in its region and one of the top-performing publicly traded community banks in the country. Regionally, the bank has been named to the Central Penn Business Journal Top Fifty Fastest Growing Companies list and the Patriot-News Superstar Leaders list.

Pennsylvania Commerce Bancorp shares the Commerce brand with the Commerce Bancorp Inc. (NYSE:CBH) network of banks headquartered in Cherry Hill, NJ.

For more information about Commerce Bank/Harrisburg, visit the bank's interactive financial resource center at commercepc.com.

Editors Note: To obtain an electronic image marking Commerce Bank/Harrisburg's $1 billion asset milestone, contact Jason Kirsch at [phone] or [e-mail]. A historical timeline of Commerce Bank/Harrisburg follows:

Commerce Bank/Harrisburg Historical Timeline

Commerce Bank/Harrisburg opened its first office in Camp Hill, PA, in June of 1985. In the 19 years since, the bank has cultivated a unique retail model that has produced dynamic growth.

1985 - Commerce Bank/Harrisburg opens its first office at Erford Road and Senate Avenue in Camp Hill. Welcomes more than 2,300 customers during first seven months of operation. Exceeds year-end projection with $11.5 million in total assets.

1986 - New customers top 5,000. Total assets reach $26 million by year-end.

1987 - Second office opens in Colonial Park in Lower Paxton Twp., Dauphin County, generating 2,500 new accounts and $6 million in new deposits in just five months.

1988 - Hampden Centre office opens just off Carlisle Pike in Hampden Twp., Cumberland County. Thirty-four percent growth results in total assets of more than $50 million.

1989 - Residential Mortgage Group is formed.

1990 - Earnings increase 39 percent despite a weak economy, falling interest rates and lower loan demand.

1991 - Year-end assets soar to nearly $100 million, an increase of 20 percent over the prior year.

1992 - Retail strategy proves strong with total deposits pushing over $100 million. Fourth office opens at Route 22 and Mountain Road in Lower Paxton Twp., Dauphin County.

1993 - Total assets nearly push the $125 million mark.

1994 - Commerce pioneers seven-day branch banking by opening all offices on Sundays. Stock is listed on the NASDAQ Small Cap Market.

1995 - In its 10th anniversary year, Commerce's newest store in Hummelstown, Dauphin County, helps produce a 20 percent increase over the prior year's earnings per share.

1996 - 24/7 Bank-by-Phone and Commerce Online Banking are launched. Two new offices, York Crossing and Queen Street, open on the same day marking the bank's expansion into York County.

1997 - Total assets surpass the $200 million mark. Commerce grows more convenient with the opening of its Simpson Ferry Road store in Mechanicsburg and Prospect Street store in York.

1998 - Total assets exceed $300 million.

1999 - Pennsylvania Commerce Bancorp is formed. U.S. Small Business Administration grants Preferred Lender status.

2000 - With the opening of its Palmyra office, Commerce extends its footprint to Lebanon County.

2001 - Total assets top $600 million. Strong performance produces 10-year average annual return on shareholder value of 32 percent.

2002 - A two-day celebration marks the opening of Commerce's first downtown store on Second Street in Harrisburg. The store reached profitability in just three months and doubled predicted estimates for its first six months of operation.

2003 - Commerce debuts in Berks County, growing into a multi-regional bank with 23 offices. Total assets surpass $1 billion.