 The PNC
Financial Services Group, Inc. Merrill Lynch Banking & Financial Services Investor Conference November 16, 2006 EXHIBIT 99.1 |
| The PNC
Financial Services Group, Inc. Merrill Lynch Banking & Financial Services Investor Conference November 16, 2006 EXHIBIT 99.1 |
 This presentation contains forward-looking statements regarding our outlook or
expectations relating to PNC’s future business, operations, financial
condition, financial performance and asset quality. Forward-looking statements are necessarily subject to numerous assumptions, risks and uncertainties,
which change over time. The forward-looking statements in this presentation are qualified by the factors
affecting forward-looking statements identified in the more detailed
Cautionary Statement included in the Appendix, which is in the version
of the presentation materials posted on our corporate website at www.pnc.com under “About PNC – Investor Relations.” We provide greater detail regarding those factors in our 2005 Form 10-K, including in the Risk Factors and Risk Management sections, and in our 2006 Form 10-Qs and other SEC
reports (accessible on the SEC’s website at www.sec.gov and on or
through our corporate website). Future events or circumstances may change our
outlook or expectations and may also affect the nature of the assumptions,
risks and uncertainties to which our forward-looking statements are subject. The forward- looking statements in this presentation speak only as of the date of this
presentation. We do not assume any duty and do not undertake to update
those statements. In this presentation we will sometimes refer to adjusted results for YTD 2006 to help illustrate the impact of certain predominantly third quarter 2006 items due to the magnitude of the aggregate of these items. These items include the BlackRock/MLIM transaction gain and integration costs and the costs of
balance sheet repositionings that we have disclosed earlier. We provide details of the adjustments in the
Appendix. While we do not provide adjusted amounts for other periods
presented, this is not intended to imply that there could not have been
similar types of adjustments for those periods. But any such adjustments would not have been similar in magnitude to the amount of the YTD 2006 adjustments shown. This presentation may also include a discussion of non-GAAP financial measures,
which, to the extent not so qualified therein or in the Appendix, is
qualified by GAAP reconciliation information available on our corporate website at www.pnc.com under “About PNC - Investor Relations.” Cautionary Statement Regarding Forward-Looking Information |
 Opportunity:
Create A Leading and Differentiated Brand Our Journey to Build a Great Company Propelled PNC to Win and Grow 1990s 1990s Expanded into higher growth markets and products Enhanced risk management Built Diversified business mix Invested in industry-leading technology Improved employee and customer satisfaction Expanded distribution capabilities Developed strong corporate governance Deepened customer relationships Disciplined capital management Focused on expense management Well Executed Strategies…Generate Momentum Announced plans to acquire Mercantile 2006 2006 Celebrated Harris Williams and Greater Washington Anniversaries Launched continuous improvement Introduced Banking Made Easy 2007 2007 Announced BlackRock-Merrill Lynch transaction |
 $0 $200 $400 $600 $800 Business Results – Nine Months Ended September 30, 2006 Retail Banking Corporate & Institutional Banking BlackRock (2) PFPC Business earnings, earnings growth and return on capital reconciled to GAAP net income,
growth and returns in Appendix. Percentages for BlackRock and PFPC reflect
return on average equity. BlackRock reported GAAP earnings of $153 million. Business Earnings $ millions (1) (2) Return on Average Capital (1) 26% 23% 29% 31% PNC’s High Return Business Mix Total business segment earnings grew 10.5% compared to the nine months ended 9/30/05 $93 $209 $334 $581 |
 Fee-Based
Businesses Differentiate PNC Noninterest Income to Total Revenue Source: SNL DataSource, PNC as reported 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% PNC USB WB FITB NCC WFC STI KEY BBT RF Quarter ended 9/30/06 Adjusted ratio excludes pretax gain on BlackRock transaction of $2.078 billion, the
securities portfolio rebalancing pretax loss of $196 million, and the
mortgage portfolio repositioning pretax loss of $48 million due to the magnitude of the aggregate of those items and is reconciled to GAAP in the Appendix. * As Reported Adjusted * |
 Diverse - No large industry concentration Limited large non-investment grade exposure - Only 3% is non-investment
grade and >$50 million Targeted - Focused on clients that meet risk-adjusted return criteria Home equity portfolio statistics - % of first lien positions 44% - Weighted average loan to value ratio 69% - Weighted average FICO
scores 728 Disciplined
Approach Leads to Strong Credit Risk Profile Strong Asset Quality Lending Profile (As of September 30, 2006) September 30, 2006 Commercial Loans Consumer Loans PNC Consolidated Nonperforming loans to loans 0.34% 0.40% Net charge-offs to average loans YTD 0.26% 0.30% Allowance for loan and lease losses to loans 1.16% 1.16% Allowance for loan and lease losses to nonperforming loans 339% 312% Peer Group Source: SNL DataSource; PNC as reported on consolidated basis. Peer group represents average of super-regional banks identified in the Appendix. Peer group excludes PNC. |
 Our Approach to
Interest Rate Risk: Preserve and Optimize Long-Term Value (3) (2) (1) 0 1 2 3 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Duration of Equity Years 3 Month LIBOR 10 Year T Note At Quarter End 2004 2005 2006 Well Positioned in This Environment |
 One PNC
Creating Positive Operating Leverage Change in Revenue vs Expense One PNC Accomplishments 2,700 of 3,000 positions eliminated All of the 2,400 ideas implemented or in process Expect to realize $400 million of total annual pretax earnings benefit by mid-2007 -12% -9% -6% -3% 0% 3% 6% 9% 12% 2003 2004 2005 9/30/06 YTD Adjusted* Twelve Months Ended December 31 Annual percentage change in total revenue less annual percentage change in noninterest expense. YTD 9/30/06 reflects change from YTD 9/30/05. Operating leverage calculated on a GAAP basis for YTD 9/30/06 was +43.1%. Adjusted operating leverage for YTD 9/30/06 excludes the impact of certain third quarter 2006 items due to the magnitude of the aggregate of those items and is reconciled to GAAP in the Appendix. * |
 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2003 2004 2005 $0 $200 $400 $600 $800 $1,000 $1,200 2004 2005 2006 We’ve Been Delivering Results $ millions Consolidated Net Income Nine Months Ended September 30 Adjusted * 2006 YTD GAAP net income was $2.2 billion. Adjusted net income excludes the
after-tax gain on BlackRock transaction of $1.293 billion, the securities portfolio rebalancing after-tax loss of $127 million, BlackRock/MLIM integration
costs of $39 million after-tax, and the mortgage portfolio repositioning after-tax loss of $31 million due to the magnitude of the aggregate of those items and is
reconciled to GAAP in the Appendix, prior periods have not been adjusted. * |
 Business
Initiatives to Drive Growth Retail Banking – Winning in the payments space C&I Banking – Building a premier middle market franchise Mercantile expansion PFPC – Investing in a global servicing platform BlackRock – Building a world-class asset manager |
 Creating a
Differentiated Brand Deliver Exceptional Service Demonstrate Ease Build Confidence Ask for the Business |
 PNC Ranked
Highest in Inaugural J.D. Power and Associates Small Business Banking Satisfaction
Study PNC Bank received the highest numerical score in the proprietary J.D. Power and Associates 2006 Small Business Banking Satisfaction StudySM. Study based on 4,996 total responses, measuring 13 financial institutions and measures opinions of small business customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in July – September 2006. Your experiences may vary. Visit jdpower.com “Highest in Customer Satisfaction with Small Business Banking” |
 0.0 0.5 1.0 1.5 2.0 2003 2004 2005 9/30/06 Increasing and Deepening Checking Relationships Retail Banking Checking Customer Base millions December 31 Small Business Consumer Small Business Small Business debit card revenue ($ millions) $9.0 +26% Small Business online banking users 46% +18% Consumer Consumer debit card revenue ($ millions) $74.3 +19% Consumer online banking users 52% +11% Consumer online bill-pay users 20% +92% …Provides Opportunities to Leverage Increased Ownership in Payments Business Growth (1) Growth is for YTD 9/30/06 vs. YTD 9/30/05 Reflects growth in users YTD 9/30/06 (2) (2) (2) (1) (2) |
    Investing in Our
Brand to Drive Growth Redesigned and simplified checking product Redesigned and simplified checking product Introduced free ATM’s worldwide Introduced free ATM’s worldwide Marketing campaign to expand checking Marketing campaign to expand checking product reach beyond branch footprint product reach beyond branch footprint Launched regional credit card product Launched regional credit card product Investing to enhance the customer Investing to enhance the customer experience in mortgage and merchant experience in mortgage and merchant services services Leveraging existing relationships with Leveraging existing relationships with affluent clients affluent clients Ease. Confidence. Achievement |
 Growing
Deposits Faster Than Our Peers Deposit Increase Compared to Peers Total interest-bearing deposits 9% 9% Total noninterest-bearing deposits 6% (2)% Total deposits 8% 6% Average Balances 3Q06 vs. 3Q05 PNC Peers Source: SNL DataSource Peers reflects average of super-regional banks identified in the Appendix excluding
PNC |
 WFC 21 % PNC 18 RF 16 KEY 16 USB 15 STI 14 FITB 14 NCC 14 WB 14 BBT 13 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Noninterest-Bearing Deposits Are More Valuable PNC’s High Percentage of Noninterest-Bearing Funding Average Noninterest-Bearing Deposits to Average Earning Assets – 3Q06 Rising Interest Rates Increase Value of PNC’s Noninterest-Bearing Deposits 2004 2005 Impact of Noninterest-Bearing Sources on PNC’s Net Interest Margin Source: SNL DataSource, PNC as reported 2006 |
     Focused on
Winning in the Affluent Segment Mass Affluent Mass Market Wealth Management Low High Opportunity Ultra- Affluent Mass Affluent Customer Defined: Mass Affluent Customer Defined: Investable assets from $100,000 to $1,000,000 674,000 existing PNC households (31%) 66% of Retail Banking deposit base |
 Corporate
& Institutional Banking: Building a Premier Middle Market Franchise What’s Our Competitive Advantage? Focused on middle market Extensive product offering Established national origination and servicing capabilities Corporate & Institutional Banking Location Lock Box Location |
 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 2005 2006 PNC has highest percentage of lead bank relationships in our footprint – 63%* Successfully Deepening C&I Banking Relationships A Leader in Cross-sell Penetration of Middle Market Customers in Footprint Driving Strong C&I Banking Fee Revenue Growth $ billions +30% -5% Net Interest Income* Noninterest Income Nine Months Ended September 30 Net interest income on taxable-equivalent basis and is reconciled to GAAP in Appendix * Treasury management 74% 1 st Business checking accounts 69% 1 st Capital markets 26% 1 st Equipment leasing 17% 1 st PNC Footprint Penetration* 2006 Rank Based on third party survey of companies with annualized revenues of $30-$500 million. * |
 Combination
Will Create Mid-Atlantic Powerhouse Existing PNC Mid-Atlantic Branch Locations Existing Mercantile Branch Locations West Virginia West Virginia Virginia Virginia Maryland Maryland Delaware Delaware New Jersey New Jersey New York New York Pennsylvania Pennsylvania Combined Proforma Combined Proforma Proforma Market Share Market Share (1) (1) 69% of PNC Proforma Branches Located in the Mid-Atlantic Region Deposit market share data as of 6/30/05 (1) Maryland Branches 198 Deposit market share 2nd Virginia Branches 57 Deposit market share 6th Delaware Branches 48 Deposit market share 2nd Washington, DC Branches 32 Deposit market share 4th |
 Mercantile
Opportunity Increase Mercantile’s online banking penetration and provide enhanced retail consumer offerings to drive additional growth such as home equity and credit card lending Significant opportunity to leverage PNC’s small business capabilities across Mercantile’s banking footprint Deliver PNC Treasury Management, Capital Markets and other corporate services to Mercantile’s corporate customers Mercantile’s Wealth Management business will benefit from having additional scale and product capability |
 PFPC
– Benefiting from Investments in High Growth Products Servicing Statistics Fund assets serviced ($ billions) Accounting / administration $774 -2% Domestic $695 -4% Offshore $79 +18% Shareholder accounts (in millions) Total 66 +12% Transfer agency 18 -5% Subaccounting 48 +20% YTD Earnings ($ millions) $93 +24% % Change vs. 2005 2006 September 30 |
 Diversified product set BlackRock Solutions provides differentiation Substantially greater global presence Enhanced talent BlackRock and MLIM Create One of the Largest Asset Managers in the World $0 $200 $400 $600 $800 $1,000 $1,200 2002 2003 2004 2005 9/30/06 $ billions $273 $342 $1,075 $309 December 31 $453 “New” BlackRock Assets Under Management |
 Summary
Diversified business mix delivering high fee revenue contribution Balance sheet characterized by strong asset quality and significant flexibility in current environment Executing on our strategies to create a differentiated brand |
 We make statements in this presentation, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as
“believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and
uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. We do not assume any duty and do not undertake to update
our forward-looking statements. Actual results or future events could differ, possibly materially, from those that we anticipated in our forward-looking
statements, and future results could differ materially from our historical performance. Our forward-looking statements are subject to the following principal risks and
uncertainties. We provide greater detail regarding these factors in our Form 10-K for the year ended December 31, 2005 and in our current year Form 10-Qs, including
in the Risk Factors and Risk Management sections of those reports. Our forward-looking statements may also be subject to other risks and uncertainties,
including those that we may discuss elsewhere in this presentation or in our filings with the SEC, accessible on the SEC’s website at www.sec.gov and on or through our corporate website at www.pnc.com under “About PNC – Investor Relations.” • Our business and operating results are affected by business and economic conditions
generally or specifically in the principal markets in which we do business. We are affected by changes in our customers’ financial performance, as well as changes in customer preferences and behavior,
including as a result of changing economic conditions. • The value of our assets and liabilities as well as our overall financial performance
are affected by changes in interest rates or in valuations in the debt and
equity markets. Actions by the Federal Reserve and other government agencies, including those that impact money supply and market interest rates, can affect our activities and financial results. • Competition can have an impact on customer acquisition, growth and retention, as well
as on our credit spreads and product pricing, which can affect market
share, deposits and revenues. • Our ability to implement our One PNC initiative, as well as other business initiatives
and strategies we may pursue, could affect our financial performance over
the next several years. • Our ability to grow successfully through acquisitions is impacted by a number of risks
and uncertainties related both to the acquisition transactions themselves
and to the integration of the acquired businesses into PNC after closing. These uncertainties are present in transactions such as our pending acquisition of Mercantile Bankshares Corporation. Cautionary Statement Regarding Forward-Looking Information |
 • Legal and regulatory developments could have an impact on our ability to operate our
businesses or our financial condition or results of operations or our
competitive position or reputation. Reputational impacts, in turn,
could affect matters such as business generation and retention, our ability to attract and retain management, liquidity and funding. These legal and regulatory
developments could include: (a) the unfavorable resolution of legal proceedings or regulatory and other governmental inquiries; (b) increased litigation risk from recent regulatory and other governmental
developments; (c) the results of the regulatory examination process,
our failure to satisfy the requirements of agreements with governmental agencies, and regulators’ future use of supervisory and enforcement tools; (d) legislative and regulatory
reforms, including changes to laws and regulations involving tax, pension,
and the protection of confidential customer information; and (e) changes in accounting policies and principles. • Our business and operating results are affected by our ability to identify and
effectively manage risks inherent in our businesses, including, where appropriate, through the effective use of third-party insurance and capital
management techniques. • Our ability to anticipate and respond to technological changes can have an impact on
our ability to respond to customer needs and to meet competitive demands.
• The adequacy of our intellectual property protection, and the extent of any costs
associated with obtaining rights in intellectual property claimed by others, can also impact our business and operating results. • Our business and operating results can be affected by widespread natural disasters, terrorist activities or international hostilities, either as a result of the impact on the economy and financial and capital markets generally or on us or on
our customers, suppliers or other counterparties specifically. •
Also, risks and uncertainties that could affect the results anticipated in
forward-looking statements or from historical performance relating to our interest in BlackRock, Inc. are discussed in more detail in BlackRock’s 2005 Form 10-K, including in the Risk Factors section, and in BlackRock’s other filings with the SEC, accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com. In addition, our pending acquisition of Mercantile Bankshares presents us with a number
of risks and uncertainties related both to the acquisition transaction itself and to the integration of the acquired businesses into PNC after closing.
These risks and uncertainties include the following: • Completion of the transaction is dependent on, among other things, receipt of
regulatory and Mercantile shareholder approvals, the timing of which cannot
be predicted with precision at this point and which may not be received at all. The impact of the completion of the transaction on PNC’s financial statements will be affected by the timing of the transaction. • The transaction may be substantially more expensive to complete (including the integration of Mercantile’s businesses) and the anticipated benefits, including anticipated cost savings and strategic gains, may be significantly harder or
take longer to achieve than expected or may not be achieved in their
entirety as a result of unexpected factors or events. Cautionary Statement
Regarding Forward-Looking Information (continued)
|
 • The integration of Mercantile’s business and operations into PNC, which will include conversion of Mercantile’s different systems and procedures, may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to Mercantile’s or PNC’s existing businesses. • The anticipated benefits to PNC are dependent in part on Mercantile’s business performance in the future, and there can be no assurance as to actual
future results, which could be impacted by various factors, including the risks and uncertainties generally related to PNC’s and Mercantile’s performance (with respect to Mercantile, see Mercantile’s SEC reports, accessible on the SEC’s website) or due to factors related to the
acquisition of Mercantile and the process of integrating it into PNC.
In addition to the pending Mercantile Bankshares transaction, we grow our business from time to time by acquiring other financial services companies. Acquisitions in general present us with risks other than those presented by the nature of the business acquired. In particular, acquisitions may be substantially more expensive to complete (including as a result of costs incurred in connection with
the integration of the acquired company) and the anticipated benefits (including anticipated cost savings and strategic gains) may be significantly harder or
take longer to achieve than expected. In some cases, acquisitions involve our entry into new businesses or new geographic or other markets, and these situations also present risks resulting from our inexperience in these new areas. As a regulated financial institution, our pursuit of attractive acquisition
opportunities could be negatively impacted due to regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired business may cause reputational harm to PNC following the acquisition and integration of the acquired business into ours and may
result in additional future costs and expenses arising as a result of those issues. Any annualized, proforma, estimated, third party or consensus numbers in this
presentation are used for illustrative or comparative purposes only and may not reflect actual results. Any consensus earnings estimates are calculated based on
the earnings projections made by analysts who cover that company. The analysts’ opinions, estimates or forecasts (and therefore the consensus earnings estimates) are theirs alone, are not those of PNC or its management, and may not reflect PNC’s, Mercantile’s or other company’s actual or anticipated results. Cautionary Statement Regarding Forward-Looking Information (continued) |
 The PNC Financial Services Group, Inc. and Mercantile Bankshares Corporation will be filing a proxy statement/prospectus and other relevant documents concerning the PNC/Mercantile merger transaction with the United States Securities and Exchange Commission (the
“SEC”). SHAREHOLDERS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN
CONNECTION WITH THE MERGER TRANSACTION OR INCORPORATED BY REFERENCE IN THE
PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. Shareholders will be able to obtain
free copies of the proxy statement/prospectus, as well as other filings
containing information about Mercantile Bankshares and PNC, without charge,
at the SEC’s Internet site (http://www.sec.gov). In addition, documents filed with the SEC by The PNC Financial Services Group, Inc. will be available free of charge from
Shareholder Relations at (800) 843-2206. Documents filed with the
SEC by Mercantile Bankshares will be available free of charge from
Mercantile Bankshares Corporation, 2 Hopkins Plaza, P.O. Box 1477,
Baltimore, Maryland 21203, Attention: Investor Relations. Mercantile Bankshares and its directors and executive officers and certain other members
of management and employees are expected to be participants in the
solicitation of proxies from Mercantile Bankshares’ shareholders in respect of the proposed merger transaction. Information
regarding the directors and executive officers of Mercantile Bankshares is
available in the proxy statement for its May 9, 2006 annual meeting of
shareholders, which was filed with the SEC on March 29, 2006.
Additional information regarding the interests of such potential participants will be included in the proxy statement/prospectus relating to the merger transaction and the other
relevant documents filed with the SEC when they become available. Additional Information About The PNC/Mercantile Transaction |
 Appendix |
 Non-GAAP
to GAAP Reconcilement Appendix Net Income and Selected Ratios (a) |
 Non-GAAP
to GAAP Reconcilement Appendix Business Earnings and Return on Capital Percentages for BlackRock and PFPC reflect return on average equity. PNC’s ownership interest in BlackRock was approximately 69-70% for the period presented. Effective September 29, 2006,
PNC’s ownership interest in BlackRock dropped to approximately 34%. BlackRock reported GAAP earnings of $153 million and $161 million, respectively, for the YTD
’06 and ’05 periods presented. For PNC business segment
reporting presentation, pretax integration costs incurred by BlackRock for
the MLIM transaction, totaling $91 million for YTD ’06, and for the SSRM transaction, totaling $9 million for YTD ’06, have been reclassified from “BlackRock” to “Other.” “Other” for the YTD ’06 period presented also includes the after-tax impact of
PNC’s gain on the BlackRock / MLIM transaction and PNC’s costs
associated with its securities portfolio rebalancing and mortgage loan
portfolio repositioning. * (a) (b) (c) Business segments Retail Banking $581 $487 19% 26% Corporate & Institutional Banking 334 372 (10)% 23% BlackRock (a)(b) 209 167 25% 29% PFPC 93 75 24% 31% Total business segments 1,217 1,101 10.5% 26% Minority interest in income of BlackRock (64) (51) Other (b)(c) 1,066 (80) Total consolidated $2,219 $970 129% 34% Corporate & Institutional Banking $334 $372 (10)% Adjustment – 2005 loan recovery (34) Corporate & Institutional Banking, adjusted $334 $338 (1)% $ millions Growth Return on Avg Capital * 2006 Nine Months Ended September 30 2006 2005 Earnings |
 Non-GAAP
to GAAP Reconcilement Appendix Net Interest Income Business segments Retail Banking $1,172 $4 $1,176 $1,255 $4 $1,259 Corporate & Institutional Banking 549 6 555 523 7 530 BlackRock 31 1 32 20 4 24 PFPC (35) 0 (35) (29) 0 (29) Total business segments 1,717 11 1,728 1,769 15 1,784 Minority interest in income of BlackRock Other (118) 9 (109) (90) 5 (85) Total consolidated $1,599 $20 $1,619 $1,679 $20 $1,699 $ millions Taxable- Equivalent Adjustment 2005 Nine Months Ended September 30 GAAP Net Interest Income 2005 Net Interest Income TE 2005 Taxable- Equivalent Adjustment 2006 GAAP Net Interest Income 2006 Net Interest Income TE 2006 |
 Non-GAAP
to GAAP Reconcilement Appendix Consolidated Net Income Net income, GAAP basis $2,219 $970 $890 58% Adjustments: Gain on BlackRock transaction* (1,293) Securities portfolio rebalancing loss* 127 BlackRock/MLIM transaction integration costs** 39 Mortgage loan portfolio repositioning loss* 31 Net income, as adjusted $1,123 $970 $890 12% $ millions 2005 Nine Months Ended September 30 2006 2004 CAGR 2006 vs 2004 The table above represents a reconciliation of certain GAAP disclosures to adjusted
amounts for the nine months ended September 30, 2006. We have provided
these adjusted amounts and reconciliation so that shareholders, investor analysts, regulators and others will be better able to evaluate the impact of certain significant predominantly third quarter items on our GAAP results for the nine months ended September 30, 2006. This information supplements our results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, our GAAP results. Our current Reports on Form 8-K dated September 8, 2006, September 22, 2006 and September 29, 2006
include additional information regarding our securities portfolio
rebalancing, mortgage loan portfolio repositioning and BlackRock/MLIM transaction accounting, respectively. |
 Non-GAAP
to GAAP Reconcilement Appendix Operating Leverage GAAP Net interest income $1,679 $1,679 $1,599 Noninterest income 5,358 ($1,834) 3,524 3,019 Total revenue 7,037 (1,834) 5,203 4,618 52.4% 12.7% Noninterest expense 3,498 (91) 3,407 3,199 9.3% 6.5% Operating leverage 43.1% 6.2% Reported 2006 For the Nine Months Ended September 30 Reported 2005 $ millions As Adjusted 2006 * Change 2006 vs 2005 Reported Change 2006 Adjusted* vs 2005 Adjustments* Adjustments are described on Appendix slide titled “Non-GAAP to GAAP
Reconcilement Net Income and Selected Ratios.” *
|
 BB&T Corporation BBT Fifth Third Bancorp FITB KeyCorp KEY National City Corporation NCC The PNC Financial Services Group, Inc. PNC Regions Financial RF SunTrust Banks, Inc. STI U.S. Bancorp USB Wachovia Corporation WB Wells Fargo & Company WFC Ticker Peer Group of Super-Regional Banks Appendix |