Leesport Financial Corp. Announces Fourth Quarter and Year 2007 Earnings

WYOMISSING, Pa., Jan. 22  /PRNewswire-FirstCall/ -- Leesport Financial Corp. ("Company") (NASDAQ:FLPB) reported net income for the quarter ended December 31, 2007 of $2,032,000, a 10.7% decrease over net income of $2,276,000 for the same period in 2006.  Net income for the twelve months ended December 31, 2007 was $7,470,000, an 18.4% decrease over net income of $9,153,000 for the same period in 2006, which includes the effects of the sale of $64.1 million in lower yielding available for sale securities during the first quarter of 2007 as a result of a previously announced balance sheet restructuring which resulted in an after-tax loss of $1.6 million on the transaction.  Total revenue for the quarter ended December 31, 2007 was $22,169,000 compared to $21,688,000 for the same period in 2006, a 2.2% increase.  Total revenue for the twelve months ended December 31, 2007 was $85,923,000 compared to $82,835,000 for the same period in 2006, a 3.7% increase.

Robert D. Davis, President and Chief Executive Officer of Leesport Financial Corp. said, "Our fourth quarter and year over year performance reflects the forces of a very challenging operating environment facing Leesport Financial and the entire financial services industry.  While our company does not originate to sell or hold sub-prime residential mortgages, the resulting ripple effect of the weakness in the residential real estate market has made for a difficult revenue and credit environment.  Within this context, we are pleased to report modest revenue growth for the calendar year 2007 and appropriate expense discipline.  We continue to make progress in building our diversified financial services company with approximately 37% of our revenue derived through fees and commissions generated from our banking, insurance and wealth management businesses."

Davis continued, "During 2007, we were pleased with the continued growth of our core banking, insurance and wealth management businesses.  Our banking franchise experienced strong commercial loan growth as well as a modest growth in total deposits.  Asset quality continues to trend favorably across our commercial, consumer and residential mortgage portfolios.  Our insurance division operated within a challenging soft commercial property and casualty market, but was able to retain greater than 95% of our insurance clients and produced new client annualized revenue of approximately $1 million.  Our wealth management revenue grew at a double digit percentage rate as a result of focusing on the recurring investment management fees associated with serving high net worth clients.

Davis concluded, "March 3, 2008, will be a significant day for our organization when we bring all the Leesport Financial family of companies together under one new name and brand.  All stakeholders will receive more information within the annual report.  We continue to be cautiously optimistic with our prospects for revenue and EPS growth in 2008.  While acknowledging the difficult operating environment ahead of us, we believe we are poised to drive future earnings in excess of our peer group to increase shareholder value."

Net Interest Income

For the three months ended December 31, 2007, net interest income before the provision for loan losses increased 5.1% to $8,529,000 compared to $8,112,000 for the same period in 2006.  The increase in net interest income for the three months resulted from a 5.2% increase in total interest income to $17,350,000 from $16,499,000 offset by a 5.2% increase in total interest expense to $8,821,000 from $8,387,000.  For the twelve months ended December 31, 2007, net interest income before the provision for loan losses increased 4.6% to $33,569,000 compared to $32,096,000 for the same period in 2006.  The increase in net interest income for the twelve months resulted from an 11.0% increase in total interest income to $68,404,000 from $61,617,000 offset by an 18.0% increase in total interest expense to $34,835,000 from $29,521,000.

The increase in total interest income resulted from higher investment security yields and an increase in average earning assets for the three and twelve months ended December 31, 2007 of $70,753,000 and $73,001,000, respectively, due primarily to strong growth in commercial loans over the same periods in 2006.

The increase in total interest expense resulted primarily from higher interest rates and an increase in average interest-bearing liabilities for the three and twelve months ended December 31, 2007 of $69,042,000 and $72,246,000, respectively, due primarily to an increase in average interest- bearing deposits and average short-term borrowings for the three and twelve months ended December 31, 2007 of $54,496,000 and $65,037,000, respectively, over the same periods in 2006.

For the three months ended December 31, 2007, the net interest margin on a fully taxable equivalent basis was 3.53% as compared to 3.59% for the same period in 2006.  For the twelve months ended December 31, 2007, the net interest margin on a fully taxable equivalent basis was 3.60% as compared to 3.71% for the same period in 2006.  The decrease in net interest margin for the comparative three and twelve month periods ended December 31, 2007 was due mainly to higher cost of time deposits offset by higher yields on commercial loans and available for sale investment securities.

Net interest income after the provision for loan losses for the three and twelve months ended December 31, 2007 was $8,129,000 and $32,571,000, respectively, compared to $7,753,000 and $31,012,000, respectively, for the same periods in 2006, an increase of 4.8% and 5.0%, respectively.  The provision for loan losses for the three months ended December 31, 2007 was $400,000 compared to $359,000 for the same period in 2006.  The provision for loan losses for the twelve months ended December 31, 2007 was $998,000 compared to $1,084,000 for the same period in 2006.  As of December 31, 2007, total non-performing assets were $7,373,000 compared to $5,259,000 as of December 31, 2006, an increase of 40.2%.  As of December 31, 2007, the allowance for loan losses was $7,264,000 compared to $7,611,000 as of December 31, 2006, a decrease of 4.8%.  The decrease in the provision for the twelve months ended December 31, 2007 is due primarily to the result of management's evaluation and classification of the credit quality of the loan portfolio utilizing a qualitative and quantitative internal loan review process.  Based on the evaluation and classification of the credit quality of the loan portfolio, management has determined that the allowance for loan losses at December 31, 2007 is adequate.

Non-Interest Income

Total non-interest income for the three months ended December 31, 2007 decreased 7.1% to $4,819,000 compared to $5,189,000 for the same period in 2006.  Total non-interest income for the twelve months ended December 31, 2007 decreased 17.4% to $17,519,000 compared to $21,218,000 for the same period in 2006.

Net securities gains of $84,000 were recorded for the three months ended December 31, 2007 compared to net security gains of $241,000 for the same period in 2006.  Net securities losses were $2,324,000 for the twelve months ended December 31, 2007 compared to net security gains of $515,000 for the same period in 2006.  The net securities gains for the three months ended December 31, 2007 and 2006 are primarily from the sales of available for sale investment securities.  The net securities losses for the twelve months ended December 31, 2007 were primarily due to the sale of $64.1 million in lower- yielding available for sale securities as part of a balance sheet restructuring completed in the first quarter of 2007, which resulted in a pre- tax loss of $2,493,000.

For the three months ended December 31, 2007, revenue from commissions and fees from insurance sales decreased 2.3% to $2,688,000 compared to $2,752,000 for the same period in 2006.  For the twelve months ended December 31, 2007, revenue from commissions and fees from insurance sales increased 0.8% to $11,362,000 compared to $11,269,000 for the same period in 2006.  The increase for the twelve months ended December 31, 2007 is mainly attributed to increased contingency income on insurance products offered through Essick & Barr, LLC, a wholly owned subsidiary of the Company.

For the three months ended December 31, 2007, revenue from mortgage banking activity decreased to $370,000 from $740,000, or 50.0%, for the same period in 2006.  For the twelve months ended December 31, 2007, revenue from mortgage banking activity decreased to $1,894,000 from $3,574,000, or 47.0%, for the same period in 2006.  The decrease was primarily due to declining volume of loans sold into the secondary mortgage market.  The Company operates its mortgage banking activities through Philadelphia Financial Mortgage, a division of Leesport Bank.  Philadelphia Financial Mortgage does not underwrite any sub-prime loans.

For the three months ended December 31, 2007, revenue from brokerage and investment advisory commissions and fee activity increased to $235,000 from $158,000, or 48.7%, for the same period in 2006.  For the twelve months ended December 31, 2007, revenue from brokerage and investment advisory commissions and fee activity increased to $886,000 from $721,000, or 22.9%, for the same period in 2006.  The increase is due primarily to an increase in investment advisory service activity offered through Madison Financial Advisors, LLC, a wholly owned subsidiary of the Company.

For the three months ended December 31, 2007, service charges on deposits decreased to $664,000 from $677,000, or 1.9%, for the same period in 2006. For the twelve months ended December 31, 2007, service charges on deposits decreased to $2,657,000 from $2,689,000, or 1.2%, for the same period in 2006. The decreases for the three and twelve month periods are due primarily to a decrease in commercial account analysis fees and non-sufficient funds charges.

For the three months ended December 31, 2007, earnings on investment in life insurance increased to $219,000 from $173,000, or 26.6%, for the same period in 2006.  For the twelve months ended December 31, 2007, earnings on investment in life insurance increased to $806,000 from $560,000, or 43.9%, for the same period in 2006.  The increase is due primarily to the purchase of $5 million of additional bank owned life insurance ("BOLI") in the third quarter of 2006.

For the three months ended December 31, 2007, other income including gain on sale of loans increased to $559,000 from $448,000, or 24.8%, for the same period in 2006.  For the twelve months ended December 31, 2007, other income including gain on sale of loans increased to $2,238,000 from $1,890,000, or 18.4%, for the same period in 2006.  The increases for the three and twelve months are due primarily to an increase in network interchange income and gains recognized on the sale of SBA loans.

Non-Interest Expense

Total non-interest expense for the three months ended December 31, 2007 increased 4.7% to $10,436,000 compared to $9,971,000 for the same period in 2006.  Total non-interest expense for the twelve months ended December 31, 2007 increased 1.6% to $40,874,000 compared to $40,238,000 for the same period in 2006.

Salaries and benefits were $5,355,000 for the three months ended December 31, 2007, a decrease of 2.2% compared to $5,475,000 for the same period in 2006.  Salaries and benefits were $21,561,000 for the twelve months ended December 31, 2007, a decrease of 2.6% compared to $22,142,000 for the same period in 2006.  Included in salaries and benefits for the three months ended December 31, 2007 and December 31, 2006 were stock-based compensation costs of $65,000 and $123,000, respectively.  Included in salaries and benefits for the twelve months ended December 31, 2007 and December 31, 2006 were stock-based compensation costs of $255,000 and $245,000, respectively.  The decrease in salaries and benefits for the comparative three and twelve month periods is primarily attributed to a reduction in staff as a result of the Company's corporate-wide reorganization plan initiated in 2006, as well as a decrease in commissions paid on mortgage origination activity through Philadelphia Financial Mortgage.  Total commissions paid for the three months ended December 31, 2007 and 2006 were $353,000 and $577,000, respectively.  Total commissions paid for the twelve months ended December 31, 2007 and 2006 were $1,575,000 and $2,324,000, respectively.

For the three months ended December 31, 2007, occupancy expense and furniture and equipment expense decreased to $1,683,000 from $1,695,000, or 0.7%, for the same period in 2006.  For the twelve months ended December 31, 2007, occupancy expense and furniture and equipment expense decreased to $6,854,000 from $7,106,000, or 3.5%, for the same period in 2006.  The decrease for the comparative periods is due primarily to a reduction in building lease expense and furniture and equipment depreciation expense.

For the three months ended December 31, 2007, marketing and advertising expense increased to $501,000 from $347,000, or 44.4%, for the same period in 2006.  For the twelve months ended December 31, 2007, marketing and advertising expense increased to $1,672,000 from $1,354,000, or 23.5%, for the same period in 2006.  The increase for the comparative periods is due primarily to expenses incurred with a new corporate-wide re-branding initiative.

For the three months ended December 31, 2007, professional services expense and outside processing expense increased to $1,444,000 from $1,157,000, or 24.8%, for the same period in 2006.  For the twelve months ended December 31, 2007, professional services expense and outside processing expense increased to $5,038,000 from $4,238,000, or 18.9%, for the same period in 2006.  The increase for the comparative periods is due primarily to an increase in general Company business initiatives, employment contract renewals, computer, network and internet banking expenses.

Income Tax Expense

Income tax expense for the three months ended December 31, 2007 was $480,000, a 30.9% decrease as compared to income tax expense of $695,000 for the three months ended December 31, 2006.  Income tax expense for the twelve months ended December 31, 2007 was $1,746,000, a 38.5% decrease as compared to income tax expense of $2,839,000 for the twelve months ended December 31, 2006.  The effective income tax rate for the three months ended December 31, 2007 and 2006 was 19.1% and 23.4%, respectively.  The effective income tax rate for the twelve months ended December 31, 2007 and 2006 was 19.0% and 23.7%, respectively.  The decrease in the effective income tax rate for the twelve month period is due primarily to tax exempt income increasing while income before income taxes decreased.

Earnings Per Share

Diluted earnings per share for the three months ended December 31, 2007 were $0.36 on average shares outstanding of 5,677,792, a 10.0% decrease as compared to diluted earnings per share of $0.40 on average shares outstanding of 5,683,296 for the three months ended December 31, 2006.  Diluted earnings per share for the twelve months ended December 31, 2007, which includes the effects of the balance sheet restructuring during the first quarter of 2007, were $1.31 on average shares outstanding of 5,696,103, a 19.1% decrease as compared to diluted earnings per share of $1.62 on average shares outstanding of 5,656,621 for the twelve months ended December 31, 2006.  Share amounts and per share amounts reflect a 5% stock dividend distributed to shareholders on June 15, 2007.

Assets, Liabilities and Equity

Total assets as of December 31, 2007 were $1,124,951,000, an annual increase of 8.0% compared to December 31, 2006.  Total loans as of December 31, 2007 increased $56,215,000 to $820,998,000, and total deposits increased $9,806,000 to $712,645,000, respectively, compared to December 31, 2006. Total loan and total deposit balances had annual increases of 7.4% and 1.4%, respectively.  Commercial loan balances as of December 31, 2007 had an annual increase of 9.9% compared to December 31, 2006.  Total borrowings as of December 31, 2007 were $294,323,000, an annual increase of 38.3% as compared to December 31, 2006.

Shareholders' equity increased as of December 31, 2007 to $106,592,000 from $102,130,000 at December 31, 2006, an annual increase of 4.4%.  Included in shareholders' equity is an unrealized loss position on available for sale securities, net of taxes, at December 31, 2007 of $1,116,000 compared to an unrealized loss position on available for sale securities, net of taxes, of $2,526,000 at December 31, 2006.  Included in shareholders' equity for the twelve months ended December 31, 2007 was a reduction to shareholders' equity of $409,000, net of tax, as a result of the Company's election to early adopt Statement of Financial Accounting Standards ("SFAS") No. 159 and No. 157 in the first quarter of 2007.  As a result of the initial fair value measurement option for junior subordinated debt under SFAS No. 159, effective January 1, 2007, the fair value adjustment of junior subordinated debt, including all unamortized debt issuance costs and prepayment fees, was recorded as a reduction in retained earnings of approximately $409,000, net of tax.

Leesport Financial Corp. will be hosting a quarterly shareholder and investor conference call on Wednesday, January 23, 2008 at 8:30 a.m. ET. Interested parties can join the conference and have the ability to ask questions by calling 877-660-8922.  The conference call will be available through a webcast at:

http://investor.shareholder.com/media/eventdetail.cfm?mediaid=29297&c =FLPB&mediakey=9020A90C5797FE6E07D19186FF9CA44D&e=0 (Due to length of url, please copy and paste into browser.)

The conference call can also be accessed through a link in the Investor Relations page of Leesport Financial Corp's website at: http://www.leesportfc.com/

Leesport Financial Corp. is a diversified financial services company headquartered in Wyomissing, PA, offering banking, insurance (Insurance products offered through Essick & Barr, LLC), investments (Securities offered through UVEST Financial Services, a registered independent broker/dealer, Member NASD/SIPC), wealth management, equipment leasing, and title insurance services throughout Southeastern Pennsylvania.

                          LEESPORT FINANCIAL CORP.
                    CONSOLIDATED SELECTED FINANCIAL DATA
            (Dollar amounts in thousands, except per share data)

                                             For the Twelve Months Ended
                                              December 31,   December 31,
                                                 2007            2006
                                                      (unaudited)
  Assets
  Investment securities and interest
   bearing cash                              $   195,437      $  168,048
  Mortgage loans held for sale                     3,165           5,582
  Loans:
     Commercial loans                            650,748         592,026
     Consumer loans                              126,710         132,685
     Mortgage loans                               43,540          40,072
  Total loans                                $   820,998      $  764,783

  Earning assets                             $ 1,019,600      $  938,413
  Total assets                                 1,124,951       1,041,632

  Liabilities and shareholders' equity
  Deposits:
     Non-interest bearing deposits               109,718         108,549
     NOW, money market and savings               309,222         290,857
     Time deposits                               293,705         303,433
  Total deposits                             $   712,645      $  702,839

  Federal funds purchased                    $   118,210      $   82,105
  Securities sold under agreements to
   repurchase                                    110,881          90,987

  Long-term debt                                  45,000          19,500
  Junior subordinated debt                        20,232          20,150
  Shareholders' equity                       $   106,592      $  102,130

  Actual shares outstanding                    5,657,145       5,655,673 *
  Book value per share                            $18.84          $18.06 *


                                                   Asset Quality Data
                                               For the Twelve Months Ended

                                                December 31,    December 31,
                                                   2007            2006
                                                        (unaudited)
  Non-accrual loans                           $    3,552      $    3,989
  Loans past due 90 days or more still
   accruing                                        3,005              93
  Renegotiated troubled debt                         267             319
     Total non-performing loans                    6,824           4,401
  Other real estate owned                            549             858
     Total non-performing assets              $    7,373      $    5,259

  Loans outstanding at end of period          $  820,998      $  764,783
  Allowance for loan losses                        7,264           7,611

  Net charge-offs to average loans
   (annualized)                                    0.17%           0.15%

  Allowance for loan losses as a
   percent of total loans                          0.88%           1.00%

  Allowance for loan losses as percent
   of total non-performing loans                 106.45%         172.94%



* References to share amounts and per-share amounts reflect the 5% stock dividend distributed to shareholders on June 15, 2007.

                           LEESPORT FINANCIAL CORP.
                     CONSOLIDATED SELECTED FINANCIAL DATA
                        (Dollar amounts in thousands)

                                    Average Balances     Average Balances
                                  For the Three Months For the Twelve Months
                                        Ended                 Ended
                                     (unaudited)           (unaudited)
                                  December    December  December   December
                                  31, 2007    31, 2006  31, 2007   31, 2006
  Assets
  Investment securities and
   interest bearing cash         $  178,387 $  170,858  $ 173,059 $ 180,258
  Mortgage loans held for sale        2,952      4,449      3,705     8,450
  Loans:
     Commercial loans               644,611    574,204    618,545   527,848
     Consumer loans                 127,173    135,199    128,479   135,508
     Mortgage loans                  42,196     39,856     40,711    39,434
     Other                                -          -          -         -
  Total loans                    $  813,980 $  749,259  $ 787,735 $ 702,790

  Earning assets                 $  995,319 $ 924,566   $ 964,499 $ 891,498
  Goodwill and intangible assets     43,173     43,428     43,406    43,665
  Total assets                    1,096,709  1,026,863  1,067,414   993,563

  Liabilities and shareholders'
   equity
  Deposits:
     Non-interest bearing
      deposits                      106,235    106,734    106,782   111,759
     NOW, money market and
      savings                       318,662    294,933    312,754   290,921
     Time deposits                  305,502    302,066    322,235   288,644
  Total deposits                 $  730,399  $ 703,733  $ 741,771 $ 691,324

  Short term borrowings          $  106,116  $  78,785  $  76,805 $  67,192
  Securities sold under
   agreements to repurchase          99,186     86,868     95,178    71,809

  Long-term debt                     25,217     23,239     17,716    34,038
  Junior subordinated debt           20,400     20,150     20,312    20,150
  Shareholders' equity             $106,144   $101,102   $104,409   $97,549



                          LEESPORT FINANCIAL CORP.
                    CONSOLIDATED SELECTED FINANCIAL DATA
            (Dollar amounts in thousands, except per share data)


                               For the Three Months   For the Twelve Months
                                      Ended                   Ended
                                   (unaudited)             (unaudited)
                                December  December     December   December
                                31, 2007  31, 2006     31, 2007   31, 2006

  Interest income              $  17,350  $  16,499   $  68,404  $  61,617
  Interest expense                 8,821      8,387      34,835     29,521
    Net interest income            8,529      8,112      33,569     32,096
  Provision for loan losses          400        359         998      1,084
    Net Interest Income after
     provision for loan losses     8,129      7,753      32,571     31,012

  Securities gains (losses),
   net                                84        241      (2,324)       515
  Commissions and fees from
   insurance sales                 2,688      2,752      11,362     11,269
  Mortgage banking activities        370        740       1,894      3,574
  Brokerage and investment
   advisory commissions and fees     235        158         886        721
  Service charges on deposits        664        677       2,657      2,689
  Earnings on investment in
   life insurance                    219        173         806        560
  Other income                       559        448       2,238      1,890
    Total non-interest income      4,819      5,189      17,519     21,218

  Salaries and employee benefits   5,355      5,475      21,561     22,142
  Occupancy expense                1,075      1,071       4,309      4,465
  Furniture and equipment expense    608        624       2,545      2,641
  Other operating expense          3,398      2,801      12,459     10,990
    Total non-interest expense    10,436      9,971      40,874     40,238
  Income before income taxes       2,512      2,971       9,216     11,992
  Income taxes                       480        695       1,746      2,839
    Net income                    $2,032     $2,276      $7,470     $9,153

  Per Share Data:
  Basic average shares
   outstanding                 5,659,352  5,637,592 * 5,671,951  5,609,465 *
  Diluted average shares
   outstanding                 5,677,792  5,683,296 * 5,696,103  5,656,621 *
  Basic earnings per share         $0.36      $0.40 *     $1.32      $1.63 *
  Diluted earnings per share        0.36       0.40 *      1.31       1.62 *
  Cash dividends per share          0.20       0.18 *      0.77       0.70 *

  Profitability Ratios:
  Return on average assets         0.74%      0.88%       0.70%      0.92%
  Return on average
   shareholders' equity            7.60%      8.93%       7.15%      9.38%
  Return on average tangible
   equity (equity less
   goodwill and intangible
   assets)                        12.80%     15.66%      12.25%     16.99%
  Net interest margin (fully
   taxable equivalent)             3.53%      3.59%       3.60%      3.71%
  Effective tax rate              19.11%     23.39%      18.95%     23.67%



* References to share amounts and per-share amounts reflect the 5% stock dividend distributed to shareholders on June 15, 2007.

  LEESPORT FINANCIAL CORP.
  UNAUDITED CONSOLIDATED BALANCE SHEETS
  (Dollar amounts in thousands, except share data)

                                   December 31,  December 31,
                                      2007          2006
  Assets
  Cash and due from banks        $    25,473    $   21,084
  Interest-bearing deposits in
   banks                                 316           751
  Total cash and cash
   equivalents                        25,789        21,835

  Mortgage loans held for sale         3,165         5,582
  Securities available for sale      192,043       164,180
  Securities held to maturity          3,078         3,117
  Loans, net of allowance for
   loan losses
     12/2007 - $7,264; 12/2006
      - $7,611                       813,734       757,172
  Premises and equipment, net          6,892         6,941
  Identifiable intangible assets       3,892         4,514
  Goodwill                            39,189        39,189
  Bank owned life insurance           17,857        17,190
  Other assets                        19,312        21,912
  Total assets                   $ 1,124,951   $ 1,041,632

  Liabilities and Shareholders'
   Equity
  Liabilities

  Deposits:
  Non-interest bearing           $  109,718     $  108,549

  Interest bearing                  602,927        594,290
  Total deposits                    712,645        702,839
  Securities sold under
   agreements to repurchase         110,881         90,987
  Federal funds purchased           118,210         82,105
  Long-term debt                     45,000         19,500
  Junior subordinated debt           20,232         20,150
  Other liabilities                  11,391         23,921
  Total liabilities               1,018,359        939,502

  Shareholders' Equity
  Common stock, $5.00 par value;
     Authorized 20,000,000 shares;
       5,746,998 shares issued
        at December 31, 2007 and
        5,454,589 shares issued
        at December 31, 2006         28,735         27,273
  Surplus                            63,940         58,733
  Retained earnings                  17,039         20,302
  Accumulated other
   comprehensive loss                (1,116)        (2,526)
  Treasury stock; 89,853 shares
   at December 31, 2007 and
     68,234 shares at December
      31, 2006, at cost              (2,006)        (1,652)
  Total shareholders' equity        106,592        102,130
  Total liabilities and
   shareholders' equity          $1,124,951     $1,041,632


  SELECTED HIGHLIGHTS

  Cash Dividends Declared
  4th Qtr. 2006    $   0.18 *
  1st Qtr. 2007    $   0.18 *
  2nd Qtr. 2007    $   0.19
  3rd Qtr. 2007    $   0.20
  4th Qtr. 2007    $   0.20


  Common Stock (FLPB)
  Quarterly Closing Price
  12/31/2006       $  22.77 *
  03/31/2007       $  20.59 *
  06/30/2007       $  19.92
  09/30/2007       $  19.23
  12/31/2007       $  17.85



* References to share amounts and per-share amounts reflect the 5% stock dividend distributed to shareholders on June 15, 2007.

  LEESPORT FINANCIAL CORP.
  UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
  (Dollar amounts in thousands, except share data)

                                  Three Months Ended         Year Ended
                                    December 31,             December 31,
                                   2007       2006          2007    2006
  Interest Income
  Interest and fees on loans     $14,967    $14,449      $59,234   $52,971
  Interest on securities:
    Taxable                        2,015      1,728        7,859     7,202
    Tax-exempt                       178        156          571       790
  Dividend income                    186        160          712       636
  Other interest income                4          6           28        18
  Total interest income           17,350     16,499       68,404     1,617

  Interest Expense
  Interest on deposits             5,832      5,665       24,428    20,141
  Interest on short-term
   borrowings                      1,264      1,077        3,940     3,507
  Interest on securities sold
   under agreements to
   repurchase                        982        929        3,906     2,847
  Interest on long-term debt         264        200          663     1,174
  Interest on junior
   subordinated debt                 479        516        1,898     1,852
  Total interest expense           8,821      8,387       34,835    29,521

  Net interest income              8,529      8,112       33,569    32,096
  Provision for loan losses          400        359          998     1,084
  Net interest income after
   provision for loan losses       8,129      7,753       32,571    31,012

  Other income:
  Customer service fees              664        677        2,657     2,689
  Mortgage banking activities, net   370        740        1,894     3,574
  Commissions and fees from
   insurance sales                 2,688      2,752       11,362    11,269
  Broker and investment
   advisory commissions and fees     235        158          886       721
  Earnings on investment in
   life insurance                    219        173          806       560
  Gain on sale of loans               11         70          164       102
  Gain (loss) on sales of
   securities                         84        241       (2,324)      515
  Other income                       548        378        2,074     1,788
  Total other income               4,819      5,189       17,519    21,218

  Other expense:
  Salaries and employee benefits    5,355      5,475       21,561    22,142
  Occupancy expense                1,075      1,071        4,309     4,465
  Furniture and equipment expense    608        624        2,545     2,641
  Marketing and advertising
   expense                           501        347        1,672     1,354
  Identifiable intangible
   amortization                      150        157          622       636
  Professional services              636        356        1,835     1,257
  Outside processing expense         808        801        3,203     2,981
  Insurance expense                  123         51          614       500
  Other expense                    1,180      1,089        4,513     4,262
  Total other expense             10,436      9,971       40,874    40,238

  Income before income taxes       2,512      2,971        9,216    11,992
  Income taxes                       480        695        1,746     2,839
  Net income                      $2,032     $2,276       $7,470    $9,153

  Per Share Data
  Average shares outstanding   5,659,352  5,637,592 *  5,671,951 5,609,465 *
  Basic earnings per share         $0.36      $0.40 *      $1.32     $1.63 *
  Average shares outstanding
   for diluted earnings per
   share                       5,677,792  5,683,296 *  5,696,103 5,656,621 *
  Diluted earnings per share       $0.36      $0.40 *      $1.31     $1.62 *
  Cash dividends declared per
   share                           $0.20      $0.18 *      $0.77     $0.70 *



* References to share amounts and per-share amounts reflect the 5% stock dividend distributed to shareholders on June 15, 2007. 

DATASOURCE: Leesport Financial Corp.



CONTACT:  Edward C. Barrett, Chief Financial Officer of Leesport

Financial Corp., [phone],  



Web site:  http://www.leesportbank.com/

http://www.leesportfc.com/ 

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