Financial Supplement and Slide Presentation

Filed by The PNC Financial Services Group, Inc.

Pursuant to Rule 425 under the Securities Act of 1933 and

deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934

Subject Company: Sterling Financial Corporation

Commission File No. 000-16276

On July 19, 2007, The PNC Financial Services Group, Inc. (“PNC”) issued a press release and held a conference call for investors regarding PNC’s earnings and business results for the three months ended June 30, 2007. PNC also provided supplementary financial information on its web site, including financial information disclosed in connection with its press release, and provided electronic presentation slides on its web site used in connection with the related investor conference call. Such supplementary financial information and electronic presentation slides consisted of the following:

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2007

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2007

(UNAUDITED)


		Page
Consolidated Income Statement		2
Adjusted Condensed Consolidated Income Statement		3
Consolidated Balance Sheet		4
Capital Ratios		4
Results of Businesses
Summary of Business Results and Period-end Employees		5
Retail Banking		6-8
Corporate & Institutional Banking		9
PFPC		10
Efficiency Ratios		11
Details of Net Interest Income, Net Interest Margin, and Trading Revenue		12
Average Consolidated Balance Sheet and Supplemental Average Balance Sheet Information		13-14
Details of Loans		15
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit, and Net Unfunded Commitments		16
Details of Nonperforming Assets		17-18
Glossary of Terms		19-21
Business Segment Descriptions		22

Appendix—Adjusted Condensed Consolidated Income Statement Reconciliations		A1-A4

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 19, 2007. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (“SEC”) filings.

Additional Information About the PNC/Sterling Financial Corporation Transaction

The PNC Financial Services Group, Inc. (“PNC”) and Sterling Financial Corporation (“Sterling Financial”) will be filing a proxy statement/prospectus and other relevant documents concerning the merger with the SEC. WE URGE INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors will be able to obtain these documents free of charge at the SEC’s web site (www.sec.gov). In addition, documents filed with the SEC by PNC will be available free of charge from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Sterling Financial will be available free of charge from Sterling Financial by contacting Shareholder Relations at (877) 248-6420.

The directors, executive officers, and certain other members of management and employees of Sterling Financial are participants in the solicitation of proxies in favor of the merger from the shareholders of Sterling Financial. Information about the directors and executive officers of Sterling Financial is included in the proxy statement for its May 8, 2007 annual meeting of shareholders, which was filed with the SEC on April 2, 2007. Additional information regarding the interests of such participants will be included in the proxy statement/prospectus and the other relevant documents filed with the SEC when they become available.

THE PNC FINANCIAL SERVICES GROUP, INC.

Additional Information About the PNC/Yardville National Bancorp Transaction

PNC and Yardville National Bancorp (“Yardville”) have filed with the SEC a Registration Statement on Form S-4 that includes a preliminary version of a proxy statement of Yardville that also constitutes a preliminary prospectus of PNC. The S-4 has not yet become effective. The parties will file other relevant documents concerning the proposed transaction with the SEC. Following the S-4 being declared effective by the SEC, Yardville intends to mail the final proxy statement to its shareholders. Such final documents, however, are not currently available. WE URGE INVESTORS TO READ THE FINAL PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS, IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors may obtain these documents, if and when they become available, free of charge at the SEC’s web site (www.sec.gov). In addition, documents filed with the SEC by PNC will be available free of charge from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Yardville will be available free of charge from Yardville by contacting Howard N. Hall, Assistant Treasurer’s Office, 2465 Kuser Road, Hamilton, NJ 08690 or by calling (609) 631-6223.

The directors, executive officers, and certain other members of management and employees of Yardville are participants in the solicitation of proxies in favor of the merger from the shareholders of Yardville. Information about the directors and executive officers of Yardville is set forth in its Annual Report on Form 10-K filed on March 30, 2007 for the year ended December 31, 2006, as amended by the Form 10-K/A filed on May 10, 2007. Additional information regarding the interests of such participants will be included in the proxy statement/prospectus and the other relevant documents filed with the SEC if and when they become available.

Mercantile Acquisition

We completed our acquisition of Mercantile Bankshares Corporation (“Mercantile”) on March 2, 2007 and our financial results include Mercantile from that date. PNC issued approximately 53 million shares of common stock and paid approximately $2.1 billion in cash as consideration for the acquisition, and accounted for the transaction under the purchase method.

BlackRock/MLIM Transaction

As further described in our Annual Report on Form 10-K for the year ended December 31, 2006, on September 29, 2006, Merrill Lynch contributed its investment management business (“MLIM”) to BlackRock, Inc. (“BlackRock”), formerly a majority-owned subsidiary of PNC, in exchange for 65 million shares of newly issued BlackRock common and preferred stock.

For the quarters ended September 30, 2006 and June 30, 2006 and the six months ended June 30, 2006 presented in this Financial Supplement, our Consolidated Income Statement reflects our former majority ownership interest in BlackRock. However, our Consolidated Income Statement for the quarters ended June 30, 2007, March 31, 2007, and December 31, 2006 and the six months ended June 30, 2007 and our Consolidated Balance Sheet as of June 30, 2007, March 31, 2007, December 31, 2006 and September 30, 2006 reflect the September 29, 2006 deconsolidation of BlackRock’s balance sheet amounts and recognize our approximate 34% ownership interest in BlackRock as of those dates as an investment accounted for under the equity method.

We have also provided, for information purposes only, adjusted results in this document to reflect BlackRock as if it had been accounted for under the equity method for all periods presented.

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)


	*For the six months ended*						*For the three months ended*
*In millions, except per share data*	June 30 2007			June 30 2006			June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Interest Income
Loans	$	1,980		$	1,544		$	1,084		$	896		$	821		$	838		$	797
Securities available for sale		665			498			355			310			280			271			255
Other		224			150			115			109			116			94			74

Total interest income		2,869			2,192			1,554			1,315			1,217			1,203			1,126

Interest Expense
Deposits		1,000			706			532			468			450			434			379
Borrowed funds		508			374			284			224			201			202			191

Total interest expense		1,508			1,080			816			692			651			636			570

Net interest income		1,361			1,112			738			623			566			567			556
Provision for credit losses		62			66			54			8			42			16			44

Net interest income less provision for credit losses		1,299			1,046			684			615			524			551			512

Noninterest Income
Asset management		355			890			190			165			149			381			429
Fund servicing		412			431			209			203			249			213			210
Service charges on deposits		169			153			92			77			79			81			80
Brokerage		138			122			72			66			63			61			63
Consumer services		198			183			107			91			93			89			94
Corporate services		335			292			176			159			177			157			157
Equity management gains		34			61			2			32			25			21			54
Net securities gains (losses)		(2	)		(12	)		1			(3	)					(195	)		(8	)
Trading		81			112			29			52			33			38			55
Net gains (losses) related to BlackRock		51						(1	)		52			(12	)		2,078
Other		195			183			98			97			113			19			96

Total noninterest income		1,966			2,415			975			991			969			2,943			1,230

Noninterest Expense
Compensation		888			1,113			470			418			442			573			558
Employee benefits		146			163			74			72			55			86			76
Net occupancy		168			162			81			87			69			79			83
Equipment		150			157			79			71			69			77			80
Marketing		50			42			29			21			23			39			22
Other		582			670			307			275			311			313			326

Total noninterest expense		1,984			2,307			1,040			944			969			1,167			1,145

Income before minority interest and income taxes		1,281			1,154			619			662			524			2,327			597
Minority interest in income of BlackRock					41												6			19
Income taxes		399			378			196			203			148			837			197

Net income	$	882		$	735		$	423		$	459		$	376		$	1,484		$	381

Earnings Per Common Share
Basic	$	2.71		$	2.51		$	1.24		$	1.49		$	1.29		$	5.09		$	1.30
Diluted	$	2.67		$	2.47		$	1.22		$	1.46		$	1.27		$	5.01		$	1.28

Average Common Shares Outstanding
Basic		325			292			342			308			291			291			293
Diluted		329			297			346			312			295			296			297

Efficiency		60	%		65	%		61	%		58	%		63	%		33	%		64	%
Noninterest income to total revenue		59	%		68	%		57	%		61	%		63	%		84	%		69	%
Effective tax rate (a)		31.1	%		32.8	%		31.7	%		30.7	%		28.2	%		36.0	%		33.0	%

(a)

The effective tax rates presented are on a GAAP basis. The lower effective tax rate for the first six months of 2007 compared with the first six months of 2006 was primarily due to the deconsolidation of BlackRock effective September 29, 2006. The effective tax rate increased for the second quarter of 2007 primarily as a result of a full-quarter impact of Mercantile. The lower rates for the first quarter of 2007 and the fourth quarter of 2006 reflect the impact of the deconsolidation of BlackRock and certain tax adjustments in both periods. The higher effective rate for the third quarter of 2006 was primarily due to the impact of the gain on the BlackRock/MLIM transaction and a $57 million cumulative adjustment to deferred taxes made in the same quarter in connection with that transaction.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Adjusted Condensed Consolidated Income Statement (Unaudited) (a)


*For the six months ended - in millions*	June 30 2007		June 30 2006
Net Interest Income
Net interest income	$	1,361	$	1,105
Provision for credit losses		62		66

Net interest income less provision for credit losses		1,299		1,039

Noninterest Income
Asset management		358		257
Other		1,560		1,492

Total noninterest income		1,918		1,749

Noninterest Expense
Compensation and benefits		1,023		907
Other		935		839

Total noninterest expense		1,958		1,746

Income before income taxes		1,259		1,042
Income taxes		391		299

Net income	$	868	$	743


*For the three months ended - in millions*	June 30 2007		March 31 2007		December 31 2006		September 30 2006		June 30 2006
Net Interest Income
Net interest income	$	738	$	623	$	566	$	564	$	552
Provision for credit losses		54		8		42		16		44

Net interest income less provision for credit losses		684		615		524		548		508

Noninterest Income
Asset management		191		167		159		122		129
Other		786		774		832		710		789

Total noninterest income		977		941		991		832		918

Noninterest Expense
Compensation and benefits		535		488		497		461		457
Other		490		445		472		411		424

Total noninterest expense		1,025		933		969		872		881

Income before income taxes		636		623		546		508		545
Income taxes		202		189		155		128		159

Net income	$	434	$	434	$	391	$	380	$	386

(a)

This schedule is provided for informational purposes only and reflects historical consolidated financial information of PNC (1) with amounts adjusted for the impact of certain specified items and (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented. See Appendix to Financial Supplement for reconciliations of these amounts to the corresponding GAAP amounts for each of the periods presented. We have provided these adjusted amounts and reconciliations so that investors, analysts, regulators and others will be better able to evaluate the impact of these items on our results for these periods, in addition to providing a basis of comparability for the impact of the BlackRock deconsolidation given the magnitude of the impact of deconsolidation on various components of our income statement. Adjusted 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.

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Assets
Cash and due from banks	$	3,177		$	3,234		$	3,523		$	3,018		$	3,438
Federal funds sold and resale agreements		1,824			1,604			1,763			2,818			675
Other short-term investments, including trading securities		3,667			3,041			3,130			2,718			2,005
Loans held for sale		2,562			2,382			2,366			4,317			2,165
Securities available for sale		25,903			26,475			23,191			19,512			21,724
Loans, net of unearned income of $1,004, $1,005, $795, $815, and $828		64,714			62,925			50,105			48,900			50,548
Allowance for loan and lease losses		(703	)		(690	)		(560	)		(566	)		(611	)

Net loans		64,011			62,235			49,545			48,334			49,937
Goodwill		7,745			7,739			3,402			3,418			3,636
Other intangible assets		913			929			641			590			862
Equity investments		5,584			5,408			5,330			5,130			1,461
Other		10,265			9,516			8,929			8,581			9,011

Total assets	$	125,651		$	122,563		$	101,820		$	98,436		$	94,914

Liabilities
Deposits
Noninterest-bearing	$	18,302		$	18,191		$	16,070		$	14,840		$	14,434
Interest-bearing		58,919			59,176			50,231			49,732			49,059

Total deposits		77,221			77,367			66,301			64,572			63,493
Borrowed funds
Federal funds purchased		7,212			5,638			2,711			3,475			3,320
Repurchase agreements		2,805			2,586			2,051			2,275			2,136
Bank notes and senior debt		7,537			4,551			3,633			2,177			3,503
Subordinated debt		4,226			4,628			3,962			4,436			4,329
Other		2,736			3,053			2,671			2,332			2,363

Total borrowed funds		24,516			20,456			15,028			14,695			15,651
Allowance for unfunded loan commitments and letters of credit		125			121			120			117			103
Accrued expenses		3,663			3,864			3,970			3,855			2,635
Other		4,252			4,649			4,728			4,031			3,573

Total liabilities		109,777			106,457			90,147			87,270			85,455

Minority and noncontrolling interests in consolidated entities		1,370			1,367			885			408			632

Shareholders’ Equity
Preferred stock (a)
Common stock—$5 par value
Authorized 800 shares, issued 353 shares		1,764			1,764			1,764			1,764			1,764
Capital surplus		2,606			2,520			1,651			1,628			1,325
Retained earnings		11,339			11,134			10,985			10,771			9,449
Accumulated other comprehensive loss		(439	)		(162	)		(235	)		(109	)		(510	)
Common stock held in treasury at cost: 11, 7, 60, 59, and 58 shares		(766	)		(517	)		(3,377	)		(3,296	)		(3,201	)

Total shareholders’ equity		14,504			14,739			10,788			10,758			8,827

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	125,651		$	122,563		$	101,820		$	98,436		$	94,914

Capital Ratios
Tier 1 risk-based (b)		8.1	%		8.6	%		10.4	%		10.4	%		8.8	%
Total risk-based (b)		11.6			12.2			13.5			13.6			12.4
Leverage (b)		7.3			8.7			9.3			9.4			7.7
Tangible common equity		5.5			5.8			7.4			7.5			5.2
Common shareholders’ equity to assets		11.5			12.0			10.6			10.9			9.3

(a)	Less than $.5 million at each date.

(b)	The ratios for June 30, 2007 are estimated.

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Results and Period-end Employees (Unaudited)


*Three months ended – in millions (a) (c)* Earnings	June 30 2007		March 31 2007		December 31 2006		September 30 2006		June 30 2006
Retail Banking (b)	$	227	$	201	$	184	$	206	$	185
Corporate & Institutional Banking (b)		122		132		126		111		115
PFPC		32		31		31		40		26
Other, including BlackRock (b) (c)		42		95		35		1,127		55

Total consolidated net income	$	423	$	459	$	376	$	1,484	$	381

Revenue (d)

Retail Banking (b)	$	978	$	839	$	799	$	791	$	782
Corporate & Institutional Banking (b)		381		370		390		352		378
PFPC (e)		208		200		194		186		186
Other, including BlackRock (b) (c)		154		211		157		2,188		446

Total consolidated revenue	$	1,721	$	1,620	$	1,540	$	3,517	$	1,792

(a)

This summary also serves as a reconciliation of total earnings and revenue for all businesses to total consolidated net income and revenue. Our business information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses and management structure change.

(b)	Amounts for the second quarter of 2007 and the first quarter of 2007 subsequent to March 2, 2007 include the impact of Mercantile.

(c)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our Quarterly Report on Form 10-Q for the second quarter of 2007 will provide additional business segment disclosures for BlackRock.

(d)

Business revenue is presented on a taxable-equivalent basis. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. To provide more meaningful comparisons of yields and margins for all earning assets, we also provide revenue on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):


	June 30 2007		March 31 2007		December 31 2006		September 30 2006		June 30 2006
Total consolidated revenue, book (GAAP) basis	$	1,713	$	1,614	$	1,535	$	3,510	$	1,786
Taxable-equivalent adjustment		8		6		5		7		6

Total consolidated revenue, taxable-equivalent basis	$	1,721	$	1,620	$	1,540	$	3,517	$	1,792

(e)	PFPC revenue represents the sum of servicing revenue and nonoperating income (expense) less debt financing costs. Prior period servicing revenue amounts have been reclassified to conform with the current period presentation.


Period-end Employees	June 30 2007	March 31 2007	December 31 2006	September 30 2006	June 30 2006
Full-time employees:
Retail Banking	11,804	11,838	9,549	9,531	9,674
Corporate & Institutional Banking	2,084	2,038	1,936	1,925	1,899
PFPC	4,522	4,400	4,381	4,317	4,314
Other, including BlackRock
Operations & Technology	4,501	4,493	3,909	3,927	3,919
Staff Services	2,115	2,059	1,680	1,674	1,668

BlackRock					2,317
Total Other	6,616	6,552	5,589	5,601	7,904

Total full-time employees	25,026	24,828	21,455	21,374	23,791
Total part-time employees	3,028	2,867	2,328	2,165	2,241

Total employees	28,054	27,695	23,783	23,539	26,032

The period-end employee statistics disclosed for each business reflect staff directly employed by the respective business and exclude operations, technology and staff services employees. Employees are shown for BlackRock only at June 30, 2006, as we deconsolidated BlackRock effective September 29, 2006. Mercantile employees are included in the Retail Banking, Corporate & Institutional Banking, and Other businesses at June 30, 2007 and March 31, 2007, respectively. PFPC employee statistics are provided on a legal entity basis.

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited)


*Three months ended* *Taxable-equivalent basis* (a) *Dollars in millions*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
INCOME STATEMENT
Net interest income	$	535		$	452		$	419		$	427		$	424
Noninterest income		443			387			380			364			358

Total revenue		978			839			799			791			782
Provision for credit losses		37			23			35			9			28
Noninterest expense		579			496			471			456			460

Pretax earnings		362			320			293			326			294
Income taxes		135			119			109			120			109

Earnings	$	227		$	201		$	184		$	206		$	185

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	14,237		$	13,881		$	13,807		$	13,849		$	13,816
Indirect		2,036			1,480			1,133			1,069			1,019
Other consumer		1,596			1,490			1,322			1,221			1,202

Total consumer		17,869			16,851			16,262			16,139			16,037
Commercial		13,678			8,201			5,907			5,821			5,715
Floor plan		1,037			952			853			854			964
Residential mortgage		2,038			1,781			1,031			1,509			1,577
Other		235			233			234			250			248

Total loans		34,857			28,018			24,287			24,573			24,541
Goodwill and other intangible assets		5,737			2,942			1,574			1,580			1,586
Loans held for sale		1,554			1,562			1,505			1,513			1,535
Other assets		2,626			1,927			1,671			1,640			1,621

Total assets	$	44,774		$	34,449		$	29,037		$	29,306		$	29,283

Deposits
Noninterest-bearing demand	$	11,065		$	8,871		$	7,834		$	7,848		$	7,908
Interest-bearing demand		9,097			8,354			7,865			7,787			7,950
Money market		17,100			15,669			14,822			14,832			14,697
Total transaction deposits		37,262			32,894			30,521			30,467			30,555
Savings		2,981			2,243			1,877			1,976			2,109
Certificates of deposit		17,531			15,738			14,694			14,053			13,560
Total deposits		57,774			50,875			47,092			46,496			46,224
Other liabilities		679			708			598			515			537
Capital		3,724			3,287			3,034			2,988			2,979

Total funds	$	62,177		$	54,870		$	50,724		$	49,999		$	49,740

PERFORMANCE RATIOS
Return on average capital		24	%		25	%		24	%		27	%		25	%
Noninterest income to total revenue		45			46			48			46			46
Efficiency		59			59			59			58			59

(a)	See notes (a), (b) and (d) on page 5.

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


*Three months ended*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
OTHER INFORMATION, INCLUDING MERCANTILE (a) (b)
Credit-related statistics:
Nonperforming assets	$	140		$	123		$	106		$	95		$	104
Net charge-offs	$	25		$	27		$	21		$	31		$	19
Annualized net charge-off ratio		.29	%		.39	%		.34	%		.50	%		.31	%

Other statistics:
Full-time employees		11,804			11,838			9,549			9,531			9,674
Part-time employees		2,360			2,224			1,829			1,660			1,526
ATMs		3,917			3,862			3,581			3,594			3,553
Branches (c)		1,084			1,077			852			848			846

ASSETS UNDER ADMINISTRATION (in billions) (d)
Assets under management
Personal	$	55		$	54		$	44		$	42		$	40
Institutional		22			22			10			10			10

Total	$	77		$	76		$	54		$	52		$	50

Asset Type
Equity	$	43		$	41		$	34		$	32		$	31
Fixed income		20			20			12			12			12
Liquidity/Other		14			15			8			8			7

Total	$	77		$	76		$	54		$	52		$	50

Nondiscretionary assets under administration
Personal	$	30		$	31		$	25		$	27		$	25
Institutional		81			80			61			62			60

Total	$	111		$	111		$	86		$	89		$	85

Asset Type
Equity	$	47		$	42		$	33		$	32		$	31
Fixed income		28			28			24			27			26
Liquidity/Other		36			41			29			30			28

Total	$	111		$	111		$	86		$	89		$	85

(a)	Presented as of period-end, except for net charge-offs and annualized net charge-off ratio.

(b)	Amounts subsequent to March 2, 2007 include the impact of Mercantile.

(c)	Excludes certain satellite branches that provide limited products and service hours.

(d)	Excludes brokerage account assets.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


*Three months ended* *Dollars in millions except as noted*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
OTHER INFORMATION, EXCLUDING MERCANTILE (a) (b)
Home equity portfolio credit statistics:
% of first lien positions		42	%		43	%		43	%		44	%		45	%
Weighted average loan-to-value ratios		70	%		70	%		70	%		69	%		69	%
Weighted average FICO scores (c)		727			726			728			728			728
Loans 90 days past due		.26	%		.25	%		.24	%		.22	%		.21	%

Checking-related statistics:
Retail Banking checking relationships		1,967,000			1,962,000			1,954,000			1,958,000			1,956,000
Consumer DDA households using online banking		975,000			960,000			938,000			920,000			897,000
% of consumer DDA households using online banking		55	%		54	%		53	%		52	%		51	%
Consumer DDA households using online bill payment		505,000			450,000			404,000			361,000			305,000
% of consumer DDA households using online bill payment		29	%		25	%		23	%		20	%		17	%

Small business loans and managed deposits:
Small business loans	$	5,365		$	5,218		$	5,101		$	5,023		$	4,882
Managed deposits:
On-balance sheet
Noninterest-bearing demand	$	4,224		$	4,236		$	4,387		$	4,370		$	4,319
Interest-bearing demand		1,543			1,627			1,724			1,545			1,392
Money market		2,563			2,629			2,755			2,658			2,617
Certificates of deposit		647			746			802			647			574
Off-balance sheet (d)
Small business sweep checking		1,935			1,833			1,812			1,676			1,532

Total managed deposits	$	10,912		$	11,071		$	11,480		$	10,896		$	10,434

Brokerage statistics:
Margin loans	$	162		$	166		$	163		$	170		$	194
Financial consultants (e)		767			757			758			752			775
Full service brokerage offices		99			99			99			99			100
Brokerage account assets (billions)	$	47		$	46		$	46		$	44		$	43

Other statistics:
Gains on sales of education loans (f)	$	5		$	3		$	11		$	11		$	7

(a)	Presented as of period-end, except for gains on sales of education loans and small business loans and managed deposits, which are for the three months ended.

(b)	Amounts exclude the impact of Mercantile, which we acquired effective March 2, 2007.

(c)	Represents the most recent FICO scores we have on file.

(d)	Represents small business balances, a portion of which are calculated on a one-month lag. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.

(e)	Financial consultants provide services in full service brokerage offices and PNC traditional branches.

(f)	Included in “Noninterest income” on page 6.

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited)


*Three months ended* *Taxable-equivalent basis* (a) *Dollars in millions except as noted*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
INCOME STATEMENT
Net interest income	$	194		$	183		$	186		$	178		$	169
Noninterest income
Corporate service fees		139			127			149			131			133
Other		48			60			55			43			76

Noninterest income		187			187			204			174			209

Total revenue		381			370			390			352			378
Provision for (recoveries of) credit losses		17			(16	)		6			7			17
Noninterest expense		192			193			199			181			191

Pretax earnings		172			193			185			164			170
Income taxes		50			61			59			53			55

Earnings	$	122		$	132		$	126		$	111		$	115

AVERAGE BALANCE SHEET
Loans
Corporate (b)	$	9,274		$	8,909		$	8,885		$	8,670		$	8,692
Commercial real estate		3,555			3,253			3,143			2,953			2,760
Commercial—real estate related		3,736			2,733			2,189			2,476			2,484
Asset-based lending		4,562			4,513			4,594			4,563			4,452

Total loans (b)		21,127			19,408			18,811			18,662			18,388
Goodwill and other intangible assets		1,837			1,544			1,399			1,366			1,328
Loans held for sale		982			1,302			965			865			875
Other assets		4,531			4,244			4,550			4,288			3,978

Total assets	$	28,477		$	26,498		$	25,725		$	25,181		$	24,569

Deposits
Noninterest-bearing demand	$	6,953		$	7,083		$	7,210		$	6,817		$	6,353
Money market		4,653			4,530			3,644			2,678			2,168
Other		1,113			926			921			995			933

Total deposits		12,719			12,539			11,775			10,490			9,454
Other liabilities		2,960			2,850			3,093			2,967			2,826
Capital		2,050			2,064			1,935			1,735			1,882

Total funds	$	17,729		$	17,453		$	16,803		$	15,192		$	14,162

PERFORMANCE RATIOS
Return on average capital		24	%		26	%		26	%		25	%		25	%
Noninterest income to total revenue		49			51			52			49			55
Efficiency		50			52			51			51			51

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	206		$	200		$	180		$	151		$	140
Acquisitions/additions		28			16			33			37			19
Repayments/transfers		(12	)		(10	)		(13	)		(8	)		(8	)

End of period	$	222		$	206		$	200		$	180		$	151

OTHER INFORMATION
Consolidated revenue from: (c)
Treasury Management	$	114		$	110		$	107		$	106		$	104
Capital Markets	$	76		$	67		$	79		$	64		$	76
Midland Loan Services	$	56		$	54		$	53		$	47		$	42
Total loans (d)	$	21,662		$	21,193		$	18,957		$	19,265		$	18,758
Nonperforming assets (d)	$	100		$	77		$	63		$	94		$	125
Net charge-offs	$	7		$	9		$	24		$	14		$	12
Full-time employees (d)		2,084			2,038			1,936			1,925			1,899
Net gains on commercial mortgage loan sales	$	9		$	15		$	18		$	12		$	18
Net carrying amount of commercial mortgage servicing rights (d)	$	493		$	487		$	471		$	414		$	385

(a)	See notes (a), (b) and (d) on page 5.

(b)	Includes lease financing.

(c)	Represents consolidated PNC amounts.

(d)	Presented as of period end.

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


*Three months ended* *Dollars in millions except as noted*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
INCOME STATEMENT
Servicing revenue (b)	$	216		$	208		$	203		$	196		$	196
Operating expense (b)		158			153			146			144			145

Operating income		58			55			57			52			51
Debt financing		9			10			10			11			11
Nonoperating income (c)		1			2			1			1			1

Pretax earnings		50			47			48			42			41
Income taxes (d)		18			16			17			2			15

Earnings	$	32		$	31		$	31		$	40		$	26

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,005		$	1,008		$	1,012		$	1,015		$	1,018
Other assets		1,395			1,370			1,192			1,038			1,398

Total assets	$	2,400		$	2,378		$	2,204		$	2,053		$	2,416

Debt financing	$	734		$	760		$	792		$	813		$	852
Other liabilities		1,109			1,091			917			772			1,137
Shareholder’s equity		557			527			495			468			427

Total funds	$	2,400		$	2,378		$	2,204		$	2,053		$	2,416

PERFORMANCE RATIOS
Return on average equity		24	%		25	%		26	%		35	%		25	%
Operating margin (e)		27			26			28			27			26

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)
Domestic	$	765		$	731		$	746		$	695		$	671
Offshore		103			91			91			79			72

Total	$	868		$	822		$	837		$	774		$	743

Asset type (in billions)
Money market	$	286		$	280		$	281		$	260		$	247
Equity		373			352			354			331			317
Fixed income		118			111			117			111			110
Other (f)		91			79			85			72			69

Total	$	868		$	822		$	837		$	774		$	743

Custody fund assets (in billions)	$	467		$	435		$	427		$	399		$	389

Shareholder accounts (in millions)
Transfer agency		20			18			18			18			18
Subaccounting		50			50			50			48			47

Total		70			68			68			66			65

OTHER INFORMATION
Period-end full-time employees		4,522			4,400			4,381			4,317			4,314

(a)	See note (a) on page 5.

(b)

Certain out-of-pocket expense items which are then client billable are included in both servicing revenue and operating expense above, but offset each other entirely and therefore have no net effect on operating income. Distribution revenue and expenses which relate to 12b-1 fees that PFPC receives from certain fund clients for the payment of marketing, sales and service expenses also entirely offset each other, but are netted for presentation purposes above. Prior period amounts have been reclassified to conform with the current period presentation.

(c)	Net of nonoperating expense.

(d)	Income taxes for the quarter ended September 30, 2006 included the benefit of a $13.5 million reversal of deferred taxes related to foreign subsidiary earnings.

(e)	Total operating income divided by total servicing revenue.

(f)	Includes alternative investment net assets serviced.

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Efficiency Ratios (Unaudited)


	Three months ended
	June 30 2007		March 31 2007		December 31 2006		September 30 2006		June 30 2006
Efficiency, as reported (a)	61	%	58	%	63	%	33	%	64	%
Efficiency, as adjusted (b)	60	%	60	%	62	%	62	%	60	%

(a)	Calculated as noninterest expense divided by the sum of net interest income and noninterest income on the Consolidated Income Statement.

(b)

Calculated as PNC’s efficiency ratio adjusted (1) for the impact of certain specified items, and (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented. We have provided these adjusted amounts and reconciliations so that shareholders, investor analysts, regulators and others will be better able to evaluate the impact of these items on our “as reported” efficiency ratio for these periods, in addition to providing a basis of comparability for the impact of the BlackRock deconsolidation. Amounts used for these adjusted ratios are reconciled to amounts used in the PNC efficiency ratio as reported (GAAP basis).


	Three months ended
*Dollars in millions*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Reconciliation of GAAP amounts with amounts used in the calculation of the adjusted efficiency ratio:
GAAP basis—net interest income	$	738		$	623		$	566		$	567		$	556
Adjustment to net interest income: BlackRock equity method (c)											(3	)		(4	)

Adjusted net interest income	$	738		$	623		$	566		$	564		$	552

GAAP basis—noninterest income	$	975		$	991		$	969		$	2,943		$	1,230
Adjustments:
Gain on BlackRock/MLIM transaction											(2,078	)
Securities portfolio rebalancing loss											196
Mortgage loan portfolio repositioning loss											48
Integration costs		1			2			10
BlackRock LTIP		1			(52	)		12
BlackRock equity method (c)											(277	)		(312	)

Adjusted noninterest income	$	977		$	941		$	991		$	832		$	918

Adjusted total revenue	$	1,715		$	1,564		$	1,557		$	1,396		$	1,470

GAAP basis—noninterest expense	$	1,040		$	944		$	969		$	1,167		$	1,145
Adjustments:
Integration costs		(15	)		(11	)					(72	)		(13	)
BlackRock equity method (c)											(223	)		(251	)

Adjusted noninterest expense	$	1,025		$	933		$	969		$	872		$	881

Adjusted efficiency ratio		60	%		60	%		62	%		62	%		60	%

(c)	See Appendix to Financial Supplement.

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Income, Net Interest Margin, and Trading Revenue (Unaudited)


	Three months ended
Net Interest Income *In millions*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Interest income, taxable equivalent basis
Loans	$	1,088		$	899		$	824		$	841		$	801
Securities available for sale		355			310			279			272			255
Other		119			112			119			97			76

Total interest income		1,562			1,321			1,222			1,210			1,132

Interest expense
Deposits		532			468			450			434			379
Borrowed funds		284			224			201			202			191

Total interest expense		816			692			651			636			570

Net interest income, taxable-equivalent basis		746			629			571			574			562
Less: Taxable-equivalent adjustment		8			6			5			7			6

Net interest income, GAAP basis	$	738		$	623		$	566		$	567		$	556


	Three months ended
Net Interest Margin	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Average yields/rates
Yield on interest-earning assets
Loans		6.81	%		6.68	%		6.63	%		6.59	%		6.38	%
Securities available for sale		5.37			5.31			5.27			5.01			4.76
Other		5.94			5.83			5.56			5.78			5.23
Total yield on interest-earning assets		6.35			6.23			6.15			6.09			5.84
Rate on interest-bearing liabilities
Deposits		3.52			3.52			3.54			3.43			3.11
Borrowed funds		5.28			5.33			5.39			5.40			5.06
Total rate on interest-bearing liabilities		3.98			3.95			3.97			3.88			3.56

Interest rate spread		2.37			2.28			2.18			2.21			2.28
Impact of noninterest-bearing sources		.66			.67			.70			.68			.62

Net interest margin		3.03	%		2.95	%		2.88	%		2.89	%		2.90	%


	Three months ended
Trading Revenue (a) In millions	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Net interest income (expense)	$	1					$	(2	)	$	(1	)	$	(3	)
Noninterest income		29		$	52			33			38			55

Total trading revenue	$	30		$	52		$	31		$	37		$	52

Securities underwriting and trading (b)	$	8		$	9		$	11		$	7		$	6
Foreign exchange		13			14			13			11			17
Financial derivatives		9			29			7			19			29

Total trading revenue	$	30		$	52		$	31		$	37		$	52

(a)	See pages 13-14 for disclosure of average trading assets and liabilities.

(b)	Includes changes in fair value for certain loans accounted for at fair value. See page 13 for disclosure of average loans at fair value.

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


*Three months ended - in millions*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Assets
Interest-earning assets:
Securities available for sale
Residential mortgage-backed	$	19,280		$	17,198		$	16,082		$	15,282		$	14,247
Commercial mortgage-backed		3,646			3,338			2,640			2,182			2,348
Asset-backed		2,531			1,876			1,561			1,457			1,170
U.S. Treasury and government agencies		344			394			441			2,285			3,181
State and municipal		203			162			140			144			152
Other debt		33			79			89			90			88
Corporate stocks and other		383			347			277			259			230

Total securities available for sale (a)		26,420			23,394			21,230			21,699			21,416
Loans, net of unearned income
Commercial		24,652			21,479			20,458			20,431			20,348
Commercial real estate		9,513			5,478			3,483			3,268			3,071
Lease financing		2,566			2,534			2,789			2,790			2,761
Consumer		17,886			16,865			16,272			16,150			16,049
Residential mortgage		8,527			7,173			5,606			7,332			7,353
Other		411			527			385			367			354

Total loans, net of unearned income		63,555			54,056			48,993			50,338			49,936
Loans held for sale		2,611			2,955			3,167			2,408			2,411
Federal funds sold and resale agreements		1,832			2,092			2,049			1,401			613
Other		3,606			2,735			3,198			2,805			2,795

Total interest-earning assets		98,024			85,232			78,637			78,651			77,171
Noninterest-earning assets:
Allowance for loan and lease losses		(692	)		(612	)		(557	)		(609	)		(600	)
Cash and due from banks		2,991			2,945			2,999			3,161			3,140
Other		22,997			19,857			17,969			14,142			13,736

Total assets	$	123,320		$	107,422		$	99,048		$	95,345		$	93,447


Supplemental Average Balance Sheet Information

Trading Assets
Securities (b)	$	2,144		$	1,569		$	2,111		$	1,460		$	1,477
Resale agreements (c)		1,247			820			1,247			537			378
Financial derivatives (d)		1,221			1,115			1,209			1,220			1,251
Loans at fair value (d)		161			193			172			168			170

Total trading assets	$	4,773		$	3,697		$	4,739		$	3,385		$	3,276

(a)	Average securities held to maturity totaled less than $.5 million for each of the periods presented and are included in the “Other debt” category above.

(b)	Included in “Interest-earning assets-Other” above.

(c)	Included in “Federal funds sold and resale agreements” above.

(d)	Included in “Noninterest-earning assets-Other” above.

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


*Three months ended - in millions*	June 30 2007		March 31 2007		December 31 2006		September 30 2006		June 30 2006
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	23,979	$	22,503	$	20,879	$	20,565	$	19,019
Demand		9,494		8,671		8,143		8,075		8,229
Savings		2,988		2,250		1,882		2,021		2,177
Retail certificates of deposit		17,426		15,691		14,837		14,209		13,686
Other time		2,297		1,623		1,355		1,467		1,323
Time deposits in foreign offices		4,220		3,129		3,068		3,712		4,276

Total interest-bearing deposits		60,404		53,867		50,164		50,049		48,710
Borrowed funds
Federal funds purchased		6,102		4,533		3,167		3,831		2,715
Repurchase agreements		2,507		1,858		2,264		2,027		2,226
Bank notes and senior debt		5,681		4,182		2,757		2,801		3,145
Subordinated debt		4,466		4,370		4,361		4,436		4,437
Other		2,565		1,877		2,161		1,627		2,504

Total borrowed funds		21,321		16,820		14,710		14,722		15,027

Total interest-bearing liabilities		81,725		70,687		64,874		64,771		63,737
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity:
Demand and other noninterest-bearing deposits		17,824		15,807		14,827		14,549		13,926
Allowance for unfunded loan commitments and letters of credit		121		126		117		104		103
Accrued expenses and other liabilities		7,655		7,961		7,882		6,346		6,305
Minority and noncontrolling interests in consolidated entities		1,367		893		542		640		631
Shareholders’ equity		14,628		11,948		10,806		8,935		8,745

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	123,320	$	107,422	$	99,048	$	95,345	$	93,447


Supplemental Average Balance Sheet Information

Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	60,404	$	53,867	$	50,164	$	50,049	$	48,710
Demand and other noninterest-bearing deposits		17,824		15,807		14,827		14,549		13,926

Total deposits	$	78,228	$	69,674	$	64,991	$	64,598	$	62,636

Transaction deposits	$	51,297	$	46,981	$	43,849	$	43,189	$	41,174

Common shareholders’ equity	$	14,621	$	11,941	$	10,799	$	8,928	$	8,738

Trading Liabilities
Securities sold short (a)	$	1,431	$	1,264	$	1,553	$	867	$	769
Repurchase agreements and other borrowings (b)		669		363		1,096		708		641
Financial derivatives (c)		1,230		1,126		1,156		1,151		1,200
Borrowings at fair value (c)		40		39		34		40		48

Total trading liabilities	$	3,370	$	2,792	$	3,839	$	2,766	$	2,658

(a)	Included in “Borrowed funds-Other” above.

(b)	Included in “Borrowed funds-Repurchase agreements” and “Borrowed funds-Other” above.

(c)	Included in “Accrued expenses and other liabilities” above.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans (Unaudited)

Loans


*Period ended - in millions*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Commercial
Retail/wholesale	$	5,908		$	5,940		$	5,301		$	5,245		$	5,393
Manufacturing		4,371			4,419			4,189			4,318			4,164
Other service providers		2,963			2,879			2,186			2,155			2,179
Real estate related		4,443			4,364			2,825			3,000			2,903
Financial services		1,500			1,509			1,324			1,423			1,479
Health care		1,023			959			707			685			641
Other		4,538			4,456			4,052			3,858			3,805

Total commercial		24,746			24,526			20,584			20,684			20,564

Commercial real estate
Real estate projects		8,962			8,963			2,716			2,691			2,438
Mortgage		567			602			816			794			768

Total commercial real estate		9,529			9,565			3,532			3,485			3,206

Equipment lease financing		3,587			3,527			3,556			3,609			3,583

Total commercial lending		37,862			37,618			27,672			27,778			27,353

Consumer
Home equity		14,268			14,263			13,749			13,876			13,853
Automobile		1,962			1,956			1,135			1,061			1,008
Other		1,804			1,769			1,631			1,419			1,388

Total consumer		18,034			17,988			16,515			16,356			16,249

Residential mortgage		9,440			7,960			6,337			5,234			7,416
Other		382			364			376			347			358
Unearned income		(1,004	)		(1,005	)		(795	)		(815	)		(828	)

Total, net of unearned income	$	64,714		$	62,925		$	50,105		$	48,900		$	50,548

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit, and Net Unfunded Commitments (Unaudited)

Change in Allowance for Loan and Lease Losses


*Three months ended - in millions*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Beginning balance	$	690		$	560		$	566		$	611		$	597
Charge-offs
Commercial		(27	)		(31	)		(23	)		(39	)		(30	)
Commercial real estate		(1	)					(1	)		(2	)
Equipment lease financing								(14	)
Consumer		(15	)		(17	)		(15	)		(13	)		(12	)
Residential mortgage								(1	)		(2	)

Total charge-offs		(43	)		(48	)		(54	)		(56	)		(42	)
Recoveries
Commercial		8			7			3			6			4
Commercial real estate		1						1
Equipment lease financing								1						4
Consumer		2			5			4			3			4

Total recoveries		11			12			9			9			12
Net recoveries (charge-offs)
Commercial		(19	)		(24	)		(20	)		(33	)		(26	)
Commercial real estate											(2	)
Equipment lease financing								(13	)					4
Consumer		(13	)		(12	)		(11	)		(10	)		(8	)
Residential mortgage								(1	)		(2	)

Total net charge-offs		(32	)		(36	)		(45	)		(47	)		(30	)
Provision for credit losses		54			8			42			16			44
Acquired allowance—Mercantile		(5	)		142
Net change in allowance for unfunded loan commitments and letters of credit		(4	)		16			(3	)		(14	)

Ending balance	$	703		$	690		$	560		$	566		$	611


Supplemental Information
Commercial lending net charge-offs (a)	$	(19	)	$	(24	)	$	(33	)	$	(35	)	$	(22	)
Consumer lending net charge-offs (b)		(13	)		(12	)		(12	)		(12	)		(8	)

Total net charge-offs	$	(32	)	$	(36	)	$	(45	)	$	(47	)	$	(30	)
Net charge-offs to average loans
Commercial lending		.21	%		.33	%		.49	%		.52	%		.34	%
Consumer lending		.19			.20			.22			.20			.14

(a)	Includes commercial, commercial real estate and equipment lease financing.

(b)	Includes consumer and residential mortgage.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


*Three months ended - in millions*	June 30 2007		March 31 2007			December 31 2006		September 30 2006		June 30 2006
Beginning balance	$	121	$	120		$	117	$	103	$	103
Acquired allowance - Mercantile				17
Net change in allowance for unfunded loan commitments and letters of credit		4		(16	)		3		14

Ending balance	$	125	$	121		$	120	$	117	$	103


Net Unfunded Commitments *In millions*	June 30 2007		March 31 2007			December 31 2006		September 30 2006		June 30 2006
Net unfunded commitments	$	50,680	$	49,263		$	44,835	$	43,804	$	40,904

Page 16

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	June 30 2007			March 31 2007			December 31 2006			September 30 2006			June 30 2006
Nonaccrual loans
Commercial	$	126		$	121		$	109		$	112		$	151
Commercial real estate		62			25			12			14			12
Equipment lease financing		2			2			1			14			16
Consumer		14			14			13			14			14
Residential mortgage		14			16			12			13			14

Total nonaccrual loans		218			178			147			167			207
Troubled debt restructured loan														1

Total nonperforming loans		218			178			147			167			208
Foreclosed and other assets
Equipment lease financing		12			12			12			12			12
Residential mortgage		12			11			10			9			8
Other		4			3			2			3			3

Total foreclosed and other assets		28			26			24			24			23

Total nonperforming assets (a) (b) (c)	$	246		$	204		$	171		$	191		$	231

Nonperforming loans to total loans		.34	%		.28	%		.29	%		.34	%		.41	%
Nonperforming assets to total loans and foreclosed assets		.38			.32			.34			.39			.46
Nonperforming assets to total assets		.20			.17			.17			.19			.24
Net charge-offs to average loans (For the three months ended)		.20			.27			.36			.37			.24
Allowance for loan and lease losses to loans		1.09			1.10			1.12			1.16			1.21
Allowance for loan and lease losses to nonperforming loans		322			388			381			339			294

(a) Excludes equity management assets carried at estimated fair value (amounts include troubled debt restructured assets of $4 million, $4 million, $4 million, $4 million, and $7 million, respectively):	$	13		$	15		$	11		$	12		$	18

(b) Excludes loans held for sale carried at lower of cost or market value ($17 million at June 30, 2007 and $18 million at March 31, 2007).

(c) Total nonperforming assets at June 30, 2007 of $246 million included $67 million related to Mercantile. Total nonperforming assets at March 31, 2007 of $204 million included $35 million related to Mercantile. Therefore, total nonperforming assets at June 30, 2007 and March 31, 2007 excluding Mercantile totaled $179 million and $169 million, respectively.
Change in Nonperforming Assets *In millions*	Six months ended
January 1, 2007	$	171
Transferred from accrual		189
Acquisition - Mercantile		35
Asset sales		(4	)
Returned to performing		(4	)
Charge-offs and valuation adjustments		(51	)
Principal activity including payoffs		(90	)

June 30, 2007	$	246

Page 17

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business


*Period ended - in millions*	June 30 2007		March 31 2007		December 31 2006		September 30 2006		June 30 2006
Retail Banking
Nonperforming loans	$	130	$	114	$	96	$	85	$	95
Foreclosed and other assets		10		9		10		10		9

Total	$	140	$	123	$	106	$	95	$	104

Corporate & Institutional Banking
Nonperforming loans	$	87	$	64	$	50	$	81	$	112
Foreclosed and other assets		13		13		13		13		13

Total	$	100	$	77	$	63	$	94	$	125

Other (a)
Nonperforming loans	$	1			$	1	$	1	$	1
Foreclosed and other assets		5	$	4		1		1		1

Total	$	6	$	4	$	2	$	2	$	2

Consolidated Totals
Nonperforming loans	$	218	$	178	$	147	$	167	$	208
Foreclosed and other assets		28		26		24		24		23

Total (b)	$	246	$	204	$	171	$	191	$	231

(a)	Amounts include residential mortgages related to PNC’s A&L management function.

Largest Individual Nonperforming Assets at June 30, 2007 - in millions (b)


Ranking	Outstandings			Industry
1	$	15		Wood Product Manufacturing
2		15		Real Estate
3		12		Air Transportation
4		8		Other Commercial Printing
5		7		Real Estate
6		6		Computer and Electronic Products Manufacturing
7		4		Plastics and Rubber Products Manufacturing
8		4		Food Services
9		4		Real Estate
10		4		Real Estate

Total	$	79

As a percent of total nonperforming assets
		32	%

(b)	Amounts shown are not net of related allowance for loan and lease losses, if applicable.

Page 18

Glossary of Terms

Accounting/administration net fund assets—Net domestic and foreign fund investment assets for which we provide accounting and administration services. We do not include these assets on our Consolidated Balance Sheet.

Adjusted average total assets—Primarily comprised of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on available-for-sale debt securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

Annualized—Adjusted to reflect a full year of activity.

Assets under management—Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

Basis point—One hundredth of a percentage point.

Charge-off—Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred to held for sale by reducing the carrying amount by the allowance for loan losses associated with such loan or if the market value is less than its carrying amount.

Common shareholders’ equity to total assets—Common shareholders’ equity divided by total assets. Common shareholders’ equity equals total shareholders’ equity less the liquidation value of preferred stock.

Credit spread—The difference in yield between debt issues of similar maturity. The excess of yield attributable to credit spread is often used as a measure of relative creditworthiness, with a reduction in the credit spread reflecting an improvement in the borrower’s perceived creditworthiness.

Custody assets—Investment assets held on behalf of clients under safekeeping arrangements. We do not include these assets on our Consolidated Balance Sheet. Investment assets held in custody at other institutions on our behalf are included in the appropriate asset categories on the Consolidated Balance Sheet as if physically held by us.

Derivatives—Financial contracts whose value is derived from publicly traded securities, interest rates, currency exchange rates or market indices. Derivatives cover a wide assortment of financial contracts, including forward contracts, futures, options and swaps.

Duration of equity—An estimate of the rate sensitivity of our economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., positioned for declining interest rates). For example, if the duration of equity is +1.5 years, the economic value of equity declines by 1.5% for a 100 basis point increase in interest rates.

Earning assets—Assets that generate income, which include: federal funds sold; resale agreements; other short-term investments, including trading securities; loans held for sale; loans, net of unearned income; securities; and certain other assets.

Economic capital—Represents the amount of resources that a business segment should hold to guard against potentially large losses that could cause insolvency. It is based on a measurement of economic risk, as opposed to risk as defined by regulatory bodies. The economic capital measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with our target credit rating. As such, economic risk serves as a “common currency” of risk that allows us to compare different risks on a similar basis.

Economic value of equity (“EVE”)—The present value of the expected cash flows of our existing assets less the present value of the expected cash flows of our existing liabilities, plus the present value of the net cash flows of our existing off-balance sheet positions.

Page 19

Effective duration—A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

Efficiency—Noninterest expense divided by the sum of net interest income (GAAP basis) and noninterest income.

Funds transfer pricing—A management accounting methodology designed to recognize the net interest income effects of sources and uses of funds provided by the assets and liabilities of a business segment. We assign these balances LIBOR-based funding rates at origination that represent the interest cost for us to raise/invest funds with similar maturity and repricing structures.

Futures and forward contracts—Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

GAAP—Accounting principles generally accepted in the United States of America.

Leverage ratio—Tier 1 risk-based capital divided by adjusted average total assets.

Net interest margin—Annualized taxable-equivalent net interest income divided by average earning assets.

Nondiscretionary assets under administration—Assets we hold for our customers/clients in a non-discretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Noninterest income to total revenue—Noninterest income divided by the sum of net interest income (GAAP basis) and noninterest income.

Nonperforming assets—Nonperforming assets include nonaccrual loans, troubled debt restructured loans, foreclosed assets and other assets. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans—Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, consumer, and residential mortgage customers as well as troubled debt restructured loans. Nonperforming loans do not include nonperforming loans held for sale or foreclosed and other assets. We do not accrue interest income on loans classified as nonperforming.

Notional amount— A number of currency units, shares, or other units specified in a derivatives contract.

Operating leverage—The period to period percentage change in total revenue (GAAP basis) less the percentage change in noninterest expense. A positive percentage indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative percentage implies expense growth exceeded revenue growth (i.e., negative operating leverage).

Recovery—Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

Return on average capital—Annualized net income divided by average capital.

Return on average assets—Annualized net income divided by average assets.

Return on average common equity—Annualized net income divided by average common shareholders’ equity.

Risk-weighted assets—Primarily computed by the assignment of specific risk-weights (as defined by The Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Securitization—The process of legally transforming financial assets into securities.

Page 20

Tangible common equity ratio—Period-end common shareholders’ equity less goodwill and other intangible assets (net of eligible deferred taxes), and excluding mortgage servicing rights, divided by period-end assets less goodwill and other intangible assets (net of eligible deferred taxes), and excluding mortgage servicing rights.

Taxable-equivalent interest—The interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we also provide revenue on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income on taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

Tier 1 risk-based capital—Tier 1 risk-based capital equals: total shareholders’ equity, plus trust preferred capital securities, plus certain minority interests that are held by others; less goodwill and certain other intangible assets (net of eligible deferred taxes), less equity investments in nonfinancial companies and less net unrealized holding losses on available-for-sale equity securities. Net unrealized holding gains on available-for-sale equity securities, net unrealized holding gains (losses) on available-for-sale debt securities and net unrealized holding gains (losses) on cash flow hedge derivatives are excluded from total shareholders’ equity for tier 1 risk-based capital purposes.

Tier 1 risk-based capital ratio—Tier 1 risk-based capital divided by period-end risk-weighted assets.

Total fund assets serviced—Total domestic and offshore fund investment assets for which we provide related processing services. We do not include these assets on our Consolidated Balance Sheet.

Total return swap—A non-traditional swap where one party agrees to pay the other the “total return” of a defined underlying asset (e.g., a loan), usually in return for receiving a stream of LIBOR-based cash flows. The total returns of the asset, including interest and any default shortfall, are passed through to the counterparty. The counterparty is therefore assuming the credit and economic risk of the underlying asset.

Total risk-based capital—Tier 1 risk-based capital plus qualifying subordinated debt and trust preferred securities, other minority interest not qualified as tier 1, and the allowance for loan and lease losses, subject to certain limitations.

Total risk-based capital ratio—Total risk-based capital divided by period-end risk-weighted assets.

Transaction deposits—The sum of money market and interest-bearing demand deposits and demand and other noninterest-bearing deposits.

Yield curve—A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.

Page 21

Business Segment Descriptions

Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash management services to approximately 2.9 million consumer and small business customers within our primary geographic area. Our customers are serviced through 1,084 offices in our branch network, the call center located in Pittsburgh and the Internet – www.pncbank.com. The branch network is located primarily in Pennsylvania; New Jersey; Washington, D.C.; Maryland; Virginia; Ohio; Kentucky and Delaware. Brokerage services are provided through PNC Investments, LLC, and J.J.B. Hilliard, W.L. Lyons, Inc. Retail Banking also serves as investment manager and trustee for employee benefit plans and charitable and endowment assets and provides nondiscretionary defined contribution plan services and investment options through its Vested Interest^® product. These services are provided to individuals and corporations primarily within our primary geographic markets.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government entities, and selectively to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services. Capital markets-related products and services include foreign exchange, derivatives, loan syndications, mergers and acquisitions advisory and related services to middle-market companies, securities underwriting, and securities sales and trading. Corporate & Institutional Banking also provides commercial loan servicing, real estate advisory and technology solutions for the commercial real estate finance industry. Corporate & Institutional Banking provides products and services generally within our primary geographic markets, with certain products and services provided nationally.

BlackRock is one of the world’s largest publicly traded investment management firms. The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products. In addition, BlackRock provides BlackRock Solutions^{^®} investment system, risk management, and financial advisory services to a growing number of institutional investors. The firm has a major presence in key global markets, including the United States, Europe, Asia, Australia and the Middle East. At June 30, 2007, PNC’s ownership interest in BlackRock was 33.6%.

PFPC is a leading full service provider of processing, technology and business solutions for the global investment industry. Securities services include custody, securities lending, and accounting and administration for funds registered under the 1940 Act and alternative investments. Investor services include transfer agency, managed accounts, subaccounting, and distribution. PFPC serviced $2.4 trillion in total assets and 70 million shareholder accounts as of June 30, 2007 both domestically and internationally through its Ireland and Luxembourg operations.

Page 22

Appendix to Financial Supplement

The PNC Financial Services Group, Inc.

Adjusted Condensed Consolidated Income Statement Reconciliations (Unaudited) (a)

For the six months ended June 30, 2007


*In millions*	PNC As Reported		Adjustments (b)			PNC As Adjusted
Net Interest Income
Net interest income	$	1,361				$	1,361
Provision for credit losses		62					62

Net interest income less provision for credit losses		1,299					1,299

Noninterest Income
Asset management		355	$	3			358
Other		1,611		(51	)		1,560

Total noninterest income		1,966		(48	)		1,918

Noninterest Expense
Compensation and benefits		1,034		(11	)		1,023
Other		950		(15	)		935

Total noninterest expense		1,984		(26	)		1,958

Income before income taxes		1,281		(22	)		1,259
Income taxes		399		(8	)		391

Net income	$	882	$	(14	)	$	868

For the six months ended June 30, 2006


*In millions*	PNC As Reported		BlackRock/MLIM Transaction Integration Costs			BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (c)		PNC As Adjusted
Net Interest Income
Net interest income	$	1,112				$	(7	)			$	1,105
Provision for credit losses		66										66

Net interest income less provision for credit losses		1,046					(7	)				1,039

Noninterest Income
Asset management		890					(734	)	$	101		257
Other		1,525					(33	)				1,492

Total noninterest income		2,415					(767	)		101		1,749

Noninterest Expense
Compensation and benefits		1,276					(369	)				907
Other		1,031	$	(19	)		(173	)				839

Total noninterest expense		2,307		(19	)		(542	)				1,746

Income before minority interest and income taxes		1,154		19			(232	)		101		1,042
Minority interest in income of BlackRock		41		4			(45	)
Income taxes		378		7			(92	)		6		299

Net income	$	735	$	8		$	(95	)	$	95	$	743

(a)

This adjusted condensed consolidated income statement reconciliation is provided for informational purposes only and reflects historical consolidated financial information of PNC (1) with amounts adjusted for the impact of certain specified items and (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented. This reconciliation is from the reported GAAP amounts shown on page 2 of the Financial Supplement to the corresponding adjusted amounts shown on page 3 of the Financial Supplement. We have provided these adjusted amounts and reconciliations so that investors, analysts, regulators and others will be better able to evaluate the impact of these items on our results for these periods, in addition to providing a basis of comparability for the impact of the BlackRock deconsolidation given the magnitude of the impact of the deconsolidation on various components of our income statement. We believe that information as adjusted for the impact of the specified items may be useful due to the extent to which these items are not indicative of our ongoing operations as the result of our management activities on those operations, as a result of the following attributes. Acquisition integration costs can vary significantly from period to period depending on whether or not we have any such transaction pending or in process and depending on the nature of the transaction. Our BlackRock LTIP shares obligation results from an agreement entered into in 2002 and predominantly reflects the market price of BlackRock stock at specified times. We have provided information adjusted for the impact of the third quarter 2006 gain on the BlackRock/MLIM transaction due to the magnitude of that transaction, and have provided information adjusted for the impact of the third quarter 2006 securities portfolio rebalancing and mortgage loan portfolio repositioning losses due to the nature of those transactions. Adjusted 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 2006 Form 10-K includes additional information regarding our accounting for the BlackRock/MLIM transaction and the BlackRock LTIP shares obligation. The absence of other adjustments is not intended to imply that there could not have been other similar types of adjustments, but any such adjustments would not have been similar in magnitude to the amount of the adjustments shown.

(b)	Includes the impact of the following items on a pretax basis: $51 million net gain related to BlackRock LTIP and $29 million of Mercantile acquisition and BlackRock/MLIM transaction integration costs.

(c)

BlackRock investment revenue represents PNC’s approximately 69% ownership interest in earnings of BlackRock for the six months ended June 30, 2006, excluding pretax BlackRock/MLIM transaction integration costs totaling $19 million. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

Page A1

Appendix to Financial Supplement (continued)

The PNC Financial Services Group, Inc.

Adjusted Condensed Consolidated Income Statement Reconciliations (Unaudited) (a)

For the three months ended June 30, 2007


*In millions*	PNC As Reported		Adjustments (b)			PNC As Adjusted
Net Interest Income
Net interest income	$	738				$	738
Provision for credit losses		54					54

Net interest income less provision for credit losses		684					684

Noninterest Income
Asset management		190	$	1			191
Other		785		1			786

Total noninterest income		975		2			977

Noninterest Expense
Compensation and benefits		544		(9	)		535
Other		496		(6	)		490

Total noninterest expense		1,040		(15	)		1,025

Income before income taxes		619		17			636
Income taxes		196		6			202

Net income	$	423	$	11		$	434

For the three months ended March 31, 2007


*In millions*	PNC As Reported		Adjustments (c)			PNC As Adjusted
Net Interest Income
Net interest income	$	623				$	623
Provision for credit losses		8					8

Net interest income less provision for credit losses		615					615

Noninterest Income
Asset management		165	$	2			167
Other		826		(52	)		774

Total noninterest income		991		(50	)		941

Noninterest Expense
Compensation and benefits		490		(2	)		488
Other		454		(9	)		445

Total noninterest expense		944		(11	)		933

Income before income taxes		662		(39	)		623
Income taxes		203		(14	)		189

Net income	$	459	$	(25	)	$	434

(a)	See note (a) on page A1.

(b)	Includes the impact of the following items on a pretax basis: $16 million of Mercantile acquisition and BlackRock/MLIM transaction integration costs and $1 million net loss related to BlackRock LTIP.

(c)	Includes the impact of the following items on a pretax basis: $52 million net gain related to BlackRock LTIP and $13 million of Mercantile acquisition and BlackRock/MLIM transaction integration costs.

Page A2

Appendix to Financial Supplement (continued)

The PNC Financial Services Group, Inc.

Adjusted Condensed Consolidated Income Statement Reconciliations (Unaudited) (a)

For the three months ended December 31, 2006


*In millions*	PNC As Reported		Adjustments (b)		PNC As Adjusted
Net Interest Income
Net interest income	$	566			$	566
Provision for credit losses		42				42

Net interest income less provision for credit losses		524				524

Noninterest Income
Asset management		149	$	10		159
Other		820		12		832

Total noninterest income		969		22		991

Noninterest Expense
Compensation and benefits		497				497
Other		472				472

Total noninterest expense		969				969

Income before income taxes		524		22		546
Income taxes		148		7		155

Net income	$	376	$	15	$	391

For the three months ended September 30, 2006


*In millions*	PNC As Reported		Adjustments (c)			BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (d)		PNC As Adjusted
Net Interest Income
Net interest income	$	567				$	(3	)			$	564
Provision for credit losses		16										16

Net interest income less provision for credit losses		551					(3	)				548

Noninterest Income

Asset management		381					(302	)	$	43		122

Other		2,562	$	(1,834	)		(18	)				710

Total noninterest income		2,943		(1,834	)		(320	)		43		832

Noninterest Expense
Compensation and benefits		659		(44	)		(154	)				461
Other		508		(28	)		(69	)				411

Total noninterest expense		1,167		(72	)		(223	)				872

Income before minority interest and income taxes		2,327		(1,762	)		(100	)		43		508
Minority interest in income of BlackRock		6		14			(20	)
Income taxes		837		(672	)		(38	)		1		128

Net income	$	1,484	$	(1,104	)	$	(42	)	$	42	$	380

(a)	See note (a) on page A1.

(b)	Includes the impact of the following items on a pretax basis: $12 million net loss related to BlackRock LTIP and $10 million of BlackRock/MLIM transaction integration costs.

(c)	Includes the impact of the following items, all on a pretax basis: $2,078 million gain on BlackRock/MLIM transaction, $196 million securities portfolio rebalancing loss, $72 million of BlackRock/MLIM transaction integration costs, and $48 million mortgage loan portfolio repositioning loss.

(d)

BlackRock investment revenue represents PNC’s approximately 69% ownership interest in earnings of BlackRock for the third quarter of 2006, excluding pretax BlackRock/MLIM transaction integration costs totaling $72 million. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

Page A3

Appendix to Financial Supplement (continued)

The PNC Financial Services Group, Inc.

Adjusted Condensed Consolidated Income Statement Reconciliation (Unaudited) (a)


For the three months ended June 30, 2006
*In millions*	PNC As Reported		BlackRock/MLIM Transaction Integration Costs			BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (b)		PNC As Adjusted
Net Interest Income
Net interest income	$	556				$	(4	)			$	552
Provision for credit losses		44										44

Net interest income less provision for credit losses		512					(4	)				508

Noninterest Income
Asset management		429					(349	)	$	49		129
Other		801					(12	)				789

Total noninterest income		1,230					(361	)		49		918

Noninterest Expense
Compensation and benefits		634	$	3			(180	)				457
Other		511		(16	)		(71	)				424

Total noninterest expense		1,145		(13	)		(251	)				881

Income before minority interest and income taxes		597		13			(114	)		49		545
Minority interest in income of BlackRock		19		3			(22	)
Income taxes		197		5			(46	)		3		159

Net income	$	381	$	5		$	(46	)	$	46	$	386

(a)	See note (a) on page A1.

(b)

BlackRock investment revenue represents PNC’s approximately 69% ownership interest in earnings of BlackRock for second quarter of 2006, excluding pretax BlackRock/MLIM transaction integration costs totaling $13 million. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

Page A4

The PNC Financial Services Group, Inc.

Second Quarter 2007

Earnings Conference Call

July 19, 2007

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

the

Appendix,

which

included

the

version

the

presentation

materials

posted

our

corporate

website

www.pnc.com/investorevents.

provide

greater

detail

regarding

these

factors

our

2006

Form

10-K,

including

the

Risk

Factors

and

Risk

Management

sections,

and

our

first

quarter

2007

Form

10-Q

and

other

SEC

reports

(accessible

the

SEC’s

website

www.sec.gov

and

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.

this

presentation,

will

sometimes

refer

adjusted

results

help

illustrate

(1)

the

impact

BlackRock

deconsolidation

near

the

end

third

quarter

2006

and

the

application

the

equity

method

accounting

for

our

equity

investment

BlackRock

and

(2)

the

impact

certain

specified

items,

including

2006

BlackRock/MLIM

transaction

gain,

2006

cost

securities

and

mortgage

portfolio

repositionings,

2006

and

2007

BlackRock/MLIM

transaction

and

Mercantile

Bankshares

acquisition

integration

costs,

and

2006

and

2007

gains/losses

our

BlackRock

LTIP shares obligation. We have provided these adjusted amounts and reconciliations so that investors, analysts, regulators and others will be better

able to evaluate the impact of these items on our results for the periods presented, in addition to providing a basis of comparability for the impact of

the BlackRock deconsolidation given the magnitude of the impact of deconsolidation on various components of our income statement. We believe

that information as adjusted for the impact of the specified items may be useful due to the extent to which these items are not indicative of our

ongoing

operations

the

result

our

management

activities

those

operations.

While

have

not

provided

other

adjustments

for

the

periods

discussed, this is not intended to imply that there could not have been other similar types of adjustments, but any such adjustments would not have

been similar in magnitude to those shown. In certain discussions, we also provide revenue information on a taxable-equivalent basis by increasing

the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. We believe this

adjustment may be useful when comparing yields and margins for all earning assets.

This presentation may also include a discussion of other non-GAAP financial measures, which, to the extent not so qualified therein or in the

Appendix,

qualified

GAAP

reconciliation

information

available

our

corporate

website

www.pnc.com

under

“About

PNC

–

Investor

Relations.”

Cautionary Statement Regarding Forward-Looking

Information and Adjusted Information

Primary businesses met or exceeded expectations

Reported earnings of $1.22 per diluted share

First half 2007 earnings up 20% versus first half

2006

Asset quality remained excellent

Mercantile integration on track

2007 Second Quarter Highlights

Executing on Our Strategies

Key Take-Aways

Performance Summary

Adjusted earnings* of $1.25 per diluted share

Strong core performance by primary businesses partially

offset by weak private equity and trading; cross-border

lease impact

Continued to create positive operating leverage

Well positioned from a risk perspective

Continuation of share repurchase program in 2007

*Adjusted earnings exclude integration costs and are reconciled to GAAP earnings in the Appendix.

10%

30%

13%

15%

Growing Higher Quality Revenue

Streams

Noninterest

Income

$1.75 Billion

61%

Six months ended June 30, As Adjusted*

Deposit NII

$653 Million

23%

Loan NII

$465 Million

16%

Noninterest

Income

$1.9 Billion

58%

Deposit NII

$849 Million

26%

Loan NII

$526 Million

16%

Total Revenue Growth

* Adjusted amounts are reconciled to GAAP in the Appendix

**Unadjusted

growth:

total

revenue

(6%),

noninterest

income

(19%),

deposit

net

interest

income

30%,

loan

net

interest

income

11%

% Change vs

2006**

2007

2006

Revenue Mix

2004

2005

2006

Revenue

Creating Positive Operating Leverage

Growing Revenues Faster Than Expenses

$ billions

Compound Annual

Growth Rate

(2004 –

2006)

Adjusted Revenue

(Taxable-equivalent) -

$5.6 billion, $6.4 billion, $8.6 billion as reported for 2004, 2005, 2006, respectively

Adjusted Noninterest

Expense -

$3.7 billion, $4.3 billion, $4.4 billion as reported for 2004, 2005, 2006, respectively

Adjusted Net Income -

$1.2 billion, $1.3 billion, $2.6 billion as reported for 2004, 2005, 2006, respectively

Net Income

12%

$1.2

$1.3

$1.5

Expense

Revenue +15%

Expense +12%

Net Income +17%

Trend Continues*

As reported: revenue (6%), expense (14%), net income 20%. Adjusted numbers and taxable-equivalent revenue are

reconciled to GAAP in the Appendix.

Six months ended June 30, as adjusted

2007 vs

2006

Maintaining Moderate Risk Profile

Credit Risk Profile

Excellent credit quality

Credit decisions driven by risk-adjusted returns

Minimal sub-prime exposure

Interest Rate Risk

Total return philosophy

Sophisticated risk management skills

Well-positioned balance sheet

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

words

such

“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.

not

assume

any

duty

and

not

undertake

update

our

forward-looking

statements.

Because

forward-looking

statements

are

subject

assumptions

and

uncertainties,

actual

results

future

events

could

differ,

possibly

materially,

from

those

that

anticipated

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 some of these factors in our Form 10-K for the year

ended December 31, 2006, including in the Risk Factors and Risk Management sections of that report, and in our first quarter 2007 Form 10-Q and other SEC 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

www.sec.gov

and

through

our

corporatewebsite

www.pnc.com

under

“About

PNC

–

Investor

Relations

–

Financial

Information.”

•

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

changes

our

customers’

and

counterparties’

financial

performance,

well

changes

customer

preferences

and

behavior,

including

result

changing

business and economic conditions.

•

The value of our assets and liabilities, as well as our overall financial performance, is also 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.

•

Our operating results are affected by our liability to provide shares of BlackRock common stock to help fund BlackRock long-term incentive plan (“LTIP”) programs, as our LTIP

liability

adjusted

quarterly

(“marked-to-market”)

based

changes

BlackRock’s

common

stock

price

and

the

number

remaining

committed

shares,

and

recognize

gain

or loss on such shares at such times as shares are transferred for payouts under the LTIP programs.

•

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

implement

our

business

initiatives

and

strategies

could

affect

our

financial

performance

over

the

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 with respect to our pending acquisitions of Sterling Financial Corporation

(“Sterling”)

and

Yardville

National

Bancorp

(“Yardville”),

and

continue

present

with

respect

the

integration

Mercantile

Bankshares

Corporation.

•

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,

turn,

could

affect

matters

such

business

generation

and

retention,

our

ability

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

supervisory

and

enforcement

tools;

(d)

legislative

and

regulatory

reforms,

including

changes

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.

Cautionary Statement Regarding

Forward-Looking Information

•

The adequacy of our intellectual property protection, and the extent of any costs associated with obtaining rights in intellectual property claimed by others, can impact our

business and operating results.

•

Our business and operating results can also 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 equity interest in BlackRock,

Inc.

are

discussed

detail

BlackRock’s

2006

Form

10-K,

including

the

Risk

Factors

section,

and

BlackRock’s

other

filings

with

the

SEC,

accessible

the

SEC’s

website

and

through

BlackRock’s

website

www.blackrock.com.

We grow our business from time to time by acquiring other financial services companies, including the pending Sterling and Yardville acquisitions. 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

these

new

areas.

regulated

financial

institution,

our

pursuit

attractive

acquisition

opportunities

could

negatively

impacted

due

regulatory

delays

other

regulatory

issues.

Regulatory

and/or

legal

issues

the

pre-acquisition

operations

acquired

business

may

cause

reputational

harm

PNC

following

the

acquisition and integration of the acquired business into ours and may result in additional future costs arising as a result of those issues. Post-closing acquisition risk continues to apply

to Mercantile as we complete the integration.

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

the

earnings

projections

made

analysts

who

cover

that

company.

The

analysts’

opinions,

estimates

forecasts

(and

therefore the consensus earnings estimates) are theirs alone, are not those of PNC or its management, and may not reflect PNC’s, Yardville’s or other company’s actual or anticipated

results.

Cautionary Statement Regarding

Forward-Looking Information (continued)

The PNC Financial Services Group, Inc. and Sterling Financial Corporation will be filing a proxy

statement/prospectus

and

other

relevant

documents

concerning

the

merger

with

the

United

States

Securities and Exchange Commission (the "SEC"). WE URGE INVESTORS TO READ THE PROXY

STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION

WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS

BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors

will

able

obtain

these

documents

free

charge

the

SEC's

web

site

(www.sec.gov).

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 Sterling Financial

Corporation will be available free of charge from Sterling Financial Corporation by contacting Shareholder

Relations at (877) 248-6420.

The directors, executive officers, and certain other members of management and employees of Sterling

Financial Corporation are participants in the solicitation of proxies in favor of the merger from the

shareholders of Sterling Financial Corporation. Information about the directors and executive officers of

Sterling Financial Corporation is included in the proxy statement for its May 8, 2007 annual meeting of

shareholders, which was filed with the SEC on April 2, 2007. Additional information regarding the

interests of such participants will be included in the proxy statement/prospectus and the other relevant

documents filed with the SEC when they become available.

Additional Information About The PNC/Sterling

Financial Corporation Transaction

The PNC Financial Services Group, Inc. (“PNC”) and Yardville National Bancorp (“Yardville”) have filed with

the United States Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4

that includes a preliminary version of a proxy statement of Yardville that also constitutes a preliminary

prospectus of PNC. The S-4 has not yet become effective. The parties will file other relevant documents

concerning

the

proposed

transaction

with

the

SEC.

Following

the

S-4

being

declared

effective

the

SEC,

Yardville intends to mail the final proxy statement to its shareholders. Such final documents, however,

are not currently available. WE URGE INVESTORS TO READ THE FINAL PROXY STATEMENT/PROSPECTUS

AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR

INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS, IF AND WHEN THEY BECOME

AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors may obtain these documents, if and when they become available, free of charge at the SEC's

web

site

(www.sec.gov).

addition,

documents

filed

with

the

SEC

PNC

will

available

free

charge

from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Yardville will be

available free of charge from Yardville by contacting Howard N. Hall, Assistant Treasurer's Office, 2465

Kuser

Road, Hamilton, NJ 08690 or by calling (609) 631-6223.

The directors, executive officers, and certain other members of management and employees of Yardville

are participants in the solicitation of proxies in favor of the merger from the shareholders of Yardville.

Information about the directors and executive officers of Yardville is set forth in its Annual Report on Form

10-K filed on March 30, 2007 for the year ended December 31, 2006, as amended by the Form 10-K/A

filed on May 10, 2007. Additional information regarding the interests of such participants will be included

in the proxy statement/prospectus and the other relevant documents filed with the SEC if and when they

become available.

Additional Information About The

PNC/Yardville National Bancorp Transaction

Non-GAAP to GAAP

Reconcilement

Appendix

Income Statement Summary –

2004 to 2006 (continued)

For the year ended December 31, 2004

BlackRock

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Other Adjustments

Equity Method

As Adjusted

Net interest income

$1,969

$(14)

$1,955

Provision for credit losses

Noninterest income

3,572

(745)

$101

2,928

Noninterest expense

3,712

(564)

3,148

Income before minority interest and income taxes

1,777

(195)

101

1,683

Minority interest in income of BlackRock

(42)

Income taxes

538

(59)

486

Net income

$1,197

$(94)

$94

$1,197

In millions

2004

2005

2006

CAGR

Adjusted net interest income

$1,955

$2,142

$2,235

Adjusted noninterest income

2,928

3,122

3,572

Taxable-equivalent adjustment

Adjusted total revenue

4,903

5,297

5,832

Adjusted noninterest expense

3,148

3,453

3,587

Adjusted net income

$1,197

$1,325

$1,514

12%

In millions

2004

2005

2006

CAGR

Net interest income, as reported

$1,969

$2,154

$2,245

Noninterest income, as reported

3,572

4,173

6,327

Taxable-equivalent adjustment

Total revenue, taxable equivalent basis

5,561

6,360

8,597

24%

Noninterest expense, as reported

3,712

4,306

4,443

Net income, as reported

$1,197

$1,325

$2,595

47%