EXHIBIT 99.1 THE PNC FINANCIAL SERVICES GROUP, INC. QUARTERLY PROFORMA INCOME STATEMENTS REFLECTING DISCONTINUED OPERATIONS On October 2, 2000, the Corporation announced that it reached a definitive agreement for Washington Mutual, F.A. to acquire the stock of PNC's residential mortgage banking affiliates. As a result of the pending sale, earnings for the residential mortgage banking business are reflected as discontinued operations throughout the Corporation's financial statements. Earnings of the residential mortgage banking business are shown separately on one line in the income statement for all periods presented. The following quarterly proforma income statements represent PNC's results of operations using discontinued operations accounting presentation for the residential mortgage banking business. These quarterly proforma income statements do not purport to represent the results of operations of PNC had the pending sale of the residential mortgage banking business occurred during or prior to any of the quarters presented, or that may be attained in the future. Exhibit 99.1 THE PNC FINANCIAL SERVICES GROUP, INC. QUARTERLY PROFORMA INCOME STATEMENTS REFLECTING DISCONTINUED OPERATIONS
Three months ended June 30 March 31 Dollars in millions, except per share data 2000 2000 - ---------------------------------------------------------------------------------------- INTEREST INCOME Loans and fees on loans $1,009 $984 Securities available for sale 97 94 Loans held for sale 52 64 Other 22 19 - ---------------------------------------------------------------------------------------- Total interest income 1,180 1,161 - ---------------------------------------------------------------------------------------- INTEREST EXPENSE Deposits 397 369 Borrowed funds 238 237 - ---------------------------------------------------------------------------------------- Total interest expense 635 606 - ---------------------------------------------------------------------------------------- Net interest income 545 555 Provision for credit losses 35 31 - ---------------------------------------------------------------------------------------- Net interest income less provision for credit losses 510 524 - ---------------------------------------------------------------------------------------- NONINTEREST INCOME Asset management 196 186 Fund servicing 164 155 Service charges on deposits 50 50 Brokerage 60 71 Consumer services 51 47 Corporate services 80 82 Equity management 48 87 Net securities losses (3) Other 79 53 - ---------------------------------------------------------------------------------------- Total noninterest income 728 728 - ---------------------------------------------------------------------------------------- NONINTEREST EXPENSE Staff expense 396 411 Net occupancy 48 53 Equipment 55 56 Amortization 28 28 Marketing 19 13 Distributions on capital securities 17 16 Other 217 215 - ---------------------------------------------------------------------------------------- Total noninterest expense 780 792 - ---------------------------------------------------------------------------------------- Income from continuing operations before income taxes 458 460 Income taxes 159 158 - ---------------------------------------------------------------------------------------- Income from continuing operations $299 $302 - ---------------------------------------------------------------------------------------- Income from discontinued operations (less applicable income taxes of $10 and $5) 16 6 - ---------------------------------------------------------------------------------------- Net income $315 $308 - ---------------------------------------------------------------------------------------- Income from continuing operations applicable to diluted earnings $295 $297 Net income applicable to diluted earnings 311 303 EARNINGS PER COMMON SHARE Continuing operations Basic $1.01 $1.02 Diluted 1.01 1.01 Net income Basic $1.07 $1.04 Diluted 1.06 1.03 CASH DIVIDENDS DECLARED PER COMMON SHARE .45 .45 AVERAGE COMMON SHARES OUTSTANDING Basic 289.8 291.9 Diluted 292.2 294.1 ========================================================================================
Exhibit 99.1 THE PNC FINANCIAL SERVICES GROUP, INC. QUARTERLY PROFORMA INCOME STATEMENTS REFLECTING DISCONTINUED OPERATIONS
Three months ended December 31 September 30 June 30 March 31 Dollars in millions, except per share data 1999 1999 1999 1999 - ------------------------------------------------------------------------------------------------------------------------- INTEREST INCOME Loans and fees on loans $985 $982 $987 $1,111 Securities available for sale 96 98 94 74 Loans held for sale 43 31 23 7 Other 13 14 12 13 - ------------------------------------------------------------------------------------------------------------------------- Total interest income 1,137 1,125 1,116 1,205 - ------------------------------------------------------------------------------------------------------------------------- INTEREST EXPENSE Deposits 345 340 333 351 Borrowed funds 230 212 207 221 - ------------------------------------------------------------------------------------------------------------------------- Total interest expense 575 552 540 572 - ------------------------------------------------------------------------------------------------------------------------- Net interest income 562 573 576 633 Provision for credit losses 30 30 25 78 - ------------------------------------------------------------------------------------------------------------------------- Net interest income less provision for credit losses 532 543 551 555 - ------------------------------------------------------------------------------------------------------------------------- NONINTEREST INCOME Asset management 176 175 169 161 Fund servicing 89 56 54 52 Service charges on deposits 53 53 51 50 Brokerage 58 52 53 56 Consumer services 52 49 48 69 Corporate services 36 76 84 (63) Equity management 52 22 17 9 Net securities (losses) gains (22) 2 42 Sale of subsidiary stock 64 Other 67 86 71 331 - ------------------------------------------------------------------------------------------------------------------------- Total noninterest income 625 571 589 665 - ------------------------------------------------------------------------------------------------------------------------- NONINTEREST EXPENSE Staff expense 364 324 322 370 Net occupancy 48 47 46 83 Equipment 52 48 48 84 Amortization 23 20 21 28 Marketing 24 17 15 14 Distributions on capital securities 17 16 16 16 Other 225 184 216 155 - ------------------------------------------------------------------------------------------------------------------------- Total noninterest expense 753 656 684 750 - ------------------------------------------------------------------------------------------------------------------------- Income from continuing operations before income taxes 404 458 456 470 Income taxes 117 159 154 156 - ------------------------------------------------------------------------------------------------------------------------- Income from continuing operations $287 $299 $302 $314 - ------------------------------------------------------------------------------------------------------------------------- Income from discontinued operations (less applicable income taxes of $12, $12, $10 and $7) 17 21 13 11 - ------------------------------------------------------------------------------------------------------------------------- Net income $304 $320 $315 $325 - ------------------------------------------------------------------------------------------------------------------------- Income from continuing operations applicable to diluted earnings $282 $294 $298 $310 Net income applicable to diluted earnings 299 315 311 321 EARNINGS PER COMMON SHARE Continuing operations Basic $.96 $1.00 $1.00 $1.02 Diluted .95 .99 .99 1.01 Core diluted .95 .93 .94 .90 Net income Basic $1.02 $1.07 $1.04 $1.06 Diluted 1.01 1.06 1.03 1.05 Core diluted 1.01 1.00 .98 .94 CASH DIVIDENDS DECLARED PER COMMON SHARE .45 .41 .41 .41 AVERAGE COMMON SHARES OUTSTANDING Basic 293.4 294.5 297.4 302.3 Diluted 296.3 297.6 300.9 305.5 =========================================================================================================================