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
James
E,
Rohr,
Chairman
and
Chief
Executive
Officer
of
The
PNC
Financial
Services
Group,
Inc.
(“PNC”),
gave
a
presentation
to investors on December
12, 2007 at the Goldman Sachs Financial
Services
CEO
Conference.
This
presentation
was
accompanied
by
a series of electronic
slides
that
included
information
pertaining
to
the
financial
results
and
business
strategies
of
PNC.
The
following
slides
and
related
material
were
posted
on
PNC’s
website
on
Wednesday,
December
12,
2007.

The PNC Financial Services Group, Inc.
Goldman Sachs
Financial Services CEO Conference 2007
New York
December 12, 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
in
the
Appendix,
which
is
included
in
the
version
of
the
presentation
materials
posted
on
our
corporate
website
at
www.pnc.com/investorevents.
We
provide
greater
detail
regarding
these
factors
in
our
2006
Form
10-K,
including
in
the
Risk
Factors
and
Risk
Management
sections,
and
in
our
current
quarter
2007
Form
10-Q
and
other
SEC
reports
(accessible
on
the
SEC’s
website
at
www.sec.gov
and
on
or
through
our
corporate
website).
Future
events
or
circumstances
may
change
our
outlook
or
expectations
and
may
also
affect
the
nature
of
the
assumptions,
risks
and
uncertainties
to
which
our
forward-looking
statements
are
subject.
The
forward-looking
statements
in
this
presentation
speak
only
as
of
the
date
of
this
presentation.
We
do
not
assume
any
duty
and
do
not
undertake
to
update
those
statements.
In
this
presentation,
we
will
sometimes
refer
to
adjusted
results
to
help
illustrate
the
impact
of
the
deconsolidation
of
BlackRock
near
the
end
of
third
quarter
2006
and
the
impact
of
certain
types
of
items.
Adjusted
results
reflect,
as
applicable,
the
following
types
of
adjustments:
(1)
2006
and
earlier
periods
reflect
the
impact
of
the
deconsolidation
of
BlackRock
by
adjusting
as
if
we
had
recorded
our
BlackRock
investment
on
the
equity
method
prior
to
its
deconsolidation;
(2)
adjusting
the
2006
periods
to
exclude
the
impact
of
the
third
quarter
2006
gain
on
the
BlackRock/MLIM
transaction
and
losses
on
the
repositioning
of
PNC’s
securities
and
mortgage
loan
portfolios;
(3)
adjusting
fourth
quarter
2006
and
the
2007
periods
to
exclude
the
net
mark-to-market
adjustments
on
PNC’s
remaining
BlackRock
LTIP
shares
obligation
and,
as
applicable,
the
gain
PNC
recognized
in
first
quarter
2007
in
connection
with
the
company’s
transfer
of
BlackRock
shares
to
satisfy
a
portion
of
its
BlackRock
LTIP
shares
obligation;
(4)
adjusting
all
2007
and
2006
periods
to
exclude,
as
applicable,
integration
costs
related
to
acquisitions
and
to
the
BlackRock/MLIM
transaction;
and
(5)
adjusting,
as
appropriate,
for
the
tax
impact
of
these
adjustments.
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
and
balance
sheet.
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.
While
we
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
the
amount
of
the
adjustments
shown.
In
certain
discussions,
we
may
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,
is
qualified
by
GAAP
reconciliation
information
available
on
our
corporate
website
at
www.pnc.com
under
“About PNC –
Investor Relations.”
Cautionary Statement Regarding Forward-Looking
Information and Adjusted Information

Performance validates business model
Investing for the future
Differentiation to drive growth
PNC’s Differentiation

Growing Our Balance Sheet
As of September 30
$77B
$93B
$98B
$131B
Peer
net
loan CAGR
14%
(1) Peer reflects CAGR of the average of the super-regional banks identified in the Appendix other than PNC.
$51B
$42B
$60B
$50B
$65B
$48B
$78B
$65B
Peer
deposit
CAGR
10%
Peer
asset
CAGR
11%
Net loans
Deposits
Assets
1
1
1

2004
2005
2006
2007
Delivering the Bottom Line
2004
2005
2006
2007
For the Nine Months
Ended September 30
$890MM
$970MM
$1.12B
(as adjusted,
$2.22B as reported)
$1.34B
(as adjusted,
$1.29B as reported)
(1)
As
adjusted.
As
reported
net
income
CAGR
13%;
diluted
earnings
per
share
CAGR
7%.
Adjusted
net
income
and
diluted
earnings
per
share
for
the
nine
months
ended
September
30,
2006
and
2007
are
reconciled
to
GAAP
figures
in
the
Appendix.
(2)
Peer
reflects
CAGR
of
the
average
of
the
super-regional
banks
identified
in
the
Appendix
other
than
PNC.
Peer
net
income CAGR
7%
For the Nine Months
Ended September 30
$3.13
$3.35
$3.77
(as adjusted,
$7.46 as reported)
$4.00
(as adjusted,
$3.85 as reported)
Peer
diluted
EPS CAGR
1%
Diluted Earnings Per Share
Net Income
2
2

$0
$1
$2
$3
$4
$5
$6
$7
2004
2005
2006
Revenue
9%
Creating Positive Operating Leverage
Generating Capital by Growing Revenues Faster Than Expenses
billions
Compound Annual
Growth Rate
(2004 –
2006)
Adjusted Revenue
(as reported
$5.5 billion, $6.3 billion, $8.6 billion for 2004, 2005, 2006, respectively)
Adjusted Noninterest
Expense
(as reported $3.7 billion, $4.3 billion, $4.4 billion for 2004, 2005, 2006, respectively)
Adjusted Net Income
(as reported $1.2 billion, $1.3 billion, $2.6 billion for 2004, 2005, 2006, respectively)
Net Income
12%
$1.2
$1.3
$1.5
Expense
7%
Revenue                +20%   
Expense                  +15%
Net Income            +19%
Trend Continues¹
(1) As reported: revenue (28%), expense (11%), net income (42%).
Adjusted amounts are reconciled to GAAP in the Appendix.
Nine months ended September 30, as adjusted
2007 vs 2006

WB       
0.19 %
RF
0.27
PNC
0.30
CMA
0.32
STI
0.35
KEY
0.35
BBT
0.41
USB
0.54
NCC
0.54
FITB
0.60
WFC
1.02
USB       
318 %
PNC
251
RF
182
CMA
176
BBT
171
KEY
168
WFC
142
WB
117
FITB
117
NCC
113
STI
93
Credit Discipline Reflected in
Reserves and Losses
Proactively Assessing Credits
For the three months ended September 30, 2007.  Source: SNL DataSource, PNC as reported
3Q07
Managing the Risk
3Q07
Net Charge-offs to Average Loans
Reserves to Nonperforming Assets

PNC       
58 %
USB
52
FITB
48
WFC
46
WB
42
STI
42
BBT
42
KEY
41
RF
39
NCC
37
CMA
30
Building a Diversified Business Mix
High Fee Income Contribution
YTD07
(1) For the nine months ended September 30, 2007.  (2) As of September 30, 2007. (3) Reconciled to GAAP in the Appendix.  Source: SNL
DataSource, PNC as reported
Less Net Interest Income Dependent
Noninterest Income to Total Revenue¹
50%
without
PFPC and
BlackRock³
PNC  
84 %
RF
101
STI
104
BBT
104
WB
106
KEY
108
WFC
108
FITB
110
NCC
114
CMA
118
USB
121
Loans to Deposits²
3Q07

Performance validates business model
Investing for the future
Differentiation to drive growth
PNC’s Differentiation

Projected 5-Year Population Growth
$60,949
$56,250
$69,270
$54,620
$73,965
$69,363
$66,273
Median Household Income
Improving Our Demographics
3.7%
6.0%
2.0%
3.4%
8.4%
10.0%
3.9%
2003
Proforma
Acquisitions
2003
Proforma
Acquisitions
Amounts
based
on
data
at
time
of
acquisition
announcement.
United
Trust
data
reflects
demographics
of
footprint
counties
weighted
by
households.
Mercantile,
Yardville
and
Sterling
data
reflect
demographics
of
footprint
counties
of
that
company,
or
by
MSA
in
the
case
of
Riggs,
weighted
by
deposits.
PNC
2003
and
PNC
Proforma
amounts
reflect
demographics,
weighted
by
deposits,
of
PNC’s
68
county
footprint
and
105
county
footprint,
respectively,
including
the
impact
of
PNC’s
ongoing
branch
optimization
process.
PNC
and
Mercantile
headquarter
offices
excluded
for
purposes
of
deposit
weighting.
Source:
SNL
DataSource.
*Pending.

$0
$4
$8
$12
$16
$20
1Q06
3Q07
Asset Management
Service Charges
Brokerage
Corporate Services
Consumer and Other
Executing in the Greater Washington
Area (“GWA”)
40.5%
43.6%
0
25
50
75
100
125
Deepening Relationships and Growing Noninterest Income*
GWA noninterest income
to total revenue
PNC -
GWA Retail Relationships
(1) Riggs transaction completed May 2005
PNC GWA Region
*Excludes the impact of Mercantile
June 30
2005¹
Sept 30
2007
PNC -
GWA Fee Growth
+14%
+48%
+45%
+96%
+38%
GWA business checking relationships
GWA consumer checking relationships
1Q06
3Q07

Transforming the Business Model
High Growth Product Focus
Albridge Solutions, Inc.
To…
Integrated
Provider
Leveraging Our Global Fund Servicing
Platform
From
Processor
Unified client views
Performance reporting
$0
$100
$200
$300
$400
$500
$600
$700
Emerging Product
Revenue
Core Product
Revenue
Sept 04
Sept 07
21%
28%
72%
79%
Emerging product
revenue
3-yr CAGR 18%
For the nine months ended

Leveraging Corporate & Institutional
Relationships to Grow Noninterest Income
$0
$200
$400
$600
$800
Major Product Revenue¹
(1) Represents consolidated PNC amounts
2006
2007
For the nine months ended
Capital Markets
Treasury Management
Midland Loan Services
Commercial Loan Servicing
CMBS Servicing Portfolio
Institutional Servicing Portfolio
Agency Servicing Portfolio
Construction Loan Administration
Government Services
Foreign exchange
Derivatives
Loan syndications
M&A advisory services
Securities underwriting
Securities sales and trading
Cash and investment management
Receivables management
Disbursement services
Funds transfer services
Information reporting
Global trade services
Deepening Relationships with Fee Based Products and Services

Leveraging Corporate & Institutional Banking
Channels to Grow Low Cost Deposits
3Q06
4Q06
3Q07
Corporate & Institutional Banking
Average Deposits
Total deposits
$13.6 billion
Treasury
Management
74%
Midland
25%
Other
1%
Midland
40%
Treasury
Management
59%
For the three months ended
$10.5B
$11.8B
$13.6B
Noninterest bearing
$7.2 billion

$0
$10
$20
$30
$40
$50
Nov Dec  Jan  Feb  Mar  Apr  May Jun  Jul  Aug  Sep  Oct  Nov
2006
CMBS Originations –
A Strategic Business with
Unprecedented Liquidity Issues and Spread Widening
Focused on risk adjusted returns, 
supports our servicing activity
High quality HFS credit portfolio
consistent with moderate risk
profile
Unprecedented market volatility
across entire non-government and
non-agency markets
As of November 30, 2007,
commercial mortgages held for
sale were approximately $1.5B
with $55 million of losses
Committed to the business
0
25
50
75
100
125
Market Volatility Impact on CMBS
10 Year, AAA Spread
over swaps, bps
CMBS Spreads
Nov ’07
+121
2001     2002    2003    2004     2005    2006     2007
US CMBS Securitizations
Context
Sept ’07
+65
Source:  Commercial Mortgage Alert
2007

Performance validates business model
Investing for the future
Differentiation to drive growth
PNC’s Differentiation

Foster
Innovation
Strengthen
the brand
Engage
Employees
Create a
sense of
urgency
PNC’s Differentiation –
Focus on
Execution

Brand Equity Contribution to Market Cap
Home
Appliances
Motor
Vehicles
Restaurants
Toiletries/
Cosmetics
Retailers
Banks
16.1%
14.8%
13.3%
13.3%
11.5%
6.8%
Source:  CoreBrand

Foster
Innovation
Strengthen
the brand
Engage
Employees
Create a
sense of
urgency
PNC’s Differentiation –
Focus on
Execution

Performance validates business model
Investing for the future
Differentiation to drive growth
Summary

Cautionary Statement Regarding
Forward-Looking Information
Appendix
We
make
statements
in
this
presentation,
and
we
may
from
time
to
time
make
other
statements,
regarding
our
outlook
or
expectations
for
earnings,
revenues,
expenses
and/or
other
matters
regarding
or
affecting
PNC
that
are
forward-looking
statements
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act. 
Forward-looking
statements
are
typically
identified
by
words
such
as
“believe,”
“expect,”
“anticipate,”
“intend,”
“outlook,”
“estimate,”
“forecast,”
“will”,
“project”
and
other
similar
words
and
expressions.
Forward-looking
statements
are
subject
to
numerous
assumptions,
risks
and
uncertainties,
which
change
over
time.
Forward-looking
statements
speak
only
as
of
the
date
they
are
made.
We
do
not
assume
any
duty
and
do
not
undertake
to
update
our
forward-looking
statements.
Because
forward-looking
statements
are
subject
to
assumptions
and
uncertainties,
actual
results
or
future
events
could
differ,
possibly
materially,
from
those
that
we
anticipated
in
our
forward-looking
statements,
and
future
results
could
differ
materially
from
our
historical
performance.
Our
forward-looking
statements
are
subject
to
the
following
principal
risks
and
uncertainties.
We
provide
greater
detail
regarding
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
current
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
at
www.sec.gov
and
on
or
through
our
corporate
website
at
www.pnc.com
under
“About
PNC
–
Investor
Relations
–
Financial
Information.”
•Our
businesses
and
financial
results
are
affected
by
business
and
economic
conditions,
both
generally
and
specifically
in
the
principal
markets
in
which
we
operate.
In
particular,
our
businesses
and
financial
results
may
be
impacted
by:
•Changes
in
interest
rates
and
valuations
in
the
debt,
equity
and
other
financial
markets.
•Disruptions
in
the
liquidity
and
other
functioning
of
financial
markets,
including
such
disruptions
in
the
markets
for
real
estate
and
other
assets
commonly
securing
financial
products.
•Actions
by
the
Federal
Reserve
and
other
government
agencies,
including
those
that
impact
money
supply
and
market
interest
rates.
•Changes
in
our
customers’,
suppliers’
and
other
counterparties’
performance
in
general
and
their
creditworthiness
in
particular.
•Changes
in
customer
preferences
and
behavior,
whether
as
a
result
of
changing
business
and
economic
conditions
or
other
factors.
•A
continuation
of
recent
turbulence
in
significant
portions
of
the
global
financial
markets
could
impact
our
performance,
both
directly
by
affecting
our
revenues
and
the
value
of
our
assets
and
liabilities
and
indirectly
by
affecting
the
economy
generally.
•Our
operating
results
are
affected
by
our
liability
to
provide
shares
of
BlackRock
common
stock
to
help
fund
certain
BlackRock
long-term
incentive
plan
(“LTIP”)
programs,
as
our
LTIP
liability
is
adjusted
quarterly
(“marked-to-market”)
based
on
changes
in
BlackRock’s
common
stock
price
and
the
number
of
remaining
committed
shares,
and
we
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
to
implement
our
business
initiatives
and
strategies
could
affect
our
financial
performance
over
the
next
several
years.
•Legal
and
regulatory
developments
could
have
an
impact
on
our
ability
to
operate
our
businesses
or
our
financial
condition
or
results
of
operations
or
our
competitive
position
or
reputation.
Reputational
impacts,
in
turn,
could
affect
matters
such
as
business
generation
and
retention,
our
ability
to
attract
and
retain
management,
liquidity,
and
funding.
These
legal
and
regulatory
developments
could
include:
(a)
the
unfavorable
resolution
of
legal
proceedings
or
regulatory
and
other
governmental
inquiries;
(b)
increased
litigation
risk
from
recent
regulatory
and
other
governmental
developments;
(c)
the
results
of
the
regulatory
examination
process,
our
failure
to
satisfy
the
requirements
of
agreements
with
governmental
agencies,
and
regulators’
future
use
of
supervisory
and
enforcement
tools;
(d)
legislative
and
regulatory
reforms,
including
changes
to
laws
and
regulations
involving
tax,
pension,
education
lending,
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,
derivatives,
and
capital
management
techniques.
•Our
ability
to
anticipate
and
respond
to
technological
changes
can
have
an
impact
on
our
ability
to
respond
to
customer
needs
and
to
meet
competitive
demands.
•The
adequacy
of
our
intellectual
property
protection,
and
the
extent
of
any
costs
associated
with
obtaining
rights
in
intellectual
property
claimed
by
others,
can
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
capital
and
other
financial
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
in
more
detail
in
BlackRock’s
2006
Form
10-K,
including
in
the
Risk
Factors
section,
and
in
BlackRock’s
other
filings
with
the
SEC,
accessible
on
the
SEC’s
website
and
on
or
through
BlackRock’s
website
at
www.blackrock.com.
We
grow
our
business
from
time
to
time
by
acquiring
other
financial
services
companies,
including
our
pending
Sterling
Financial
Corporation
(“Sterling”)
acquisition.
Acquisitions
in
general
present
us
with
risks
other
than
those
presented
by
the
nature
of
the
business
acquired.
In
particular,
acquisitions
may
be
substantially
more
expensive
to
complete
(including
as
a
result
of
costs
incurred
in
connection
with
the
integration
of
the
acquired
company)
and
the
anticipated
benefits
(including
anticipated
cost
savings
and
strategic
gains)
may
be
significantly
harder
or
take
longer
to
achieve
than
expected.
In
some
cases,
acquisitions
involve
our
entry
into
new
businesses
or
new
geographic
or
other
markets,
and
these
situations
also
present
risks
resulting
from
our
inexperience
in
these
new
areas.
As
a
regulated
financial
institution,
our
pursuit
of
attractive
acquisition
opportunities
could
be
negatively
impacted
due
to
regulatory
delays
or
other
regulatory
issues.
Regulatory
and/or
legal
issues
related
to
the
pre-acquisition
operations
of
an
acquired
business
may
cause
reputational
harm
to
PNC
following
the
acquisition
and
integration
of
the
acquired
business
into
ours
and
may
result
in
additional
future
costs
arising
as
a
result
of
those
issues.
Any
annualized,
proforma,
estimated,
third
party
or
consensus
numbers
in
this
presentation
are
used
for
illustrative
or
comparative
purposes
only
and
may
not
reflect
actual
results.
Any
consensus
earnings
estimates
are
calculated
based
on
the
earnings
projections
made
by
analysts
who
cover
that
company.
The
analysts’
opinions,
estimates
or
forecasts
(and
therefore
the
consensus
earnings
estimates)
are
theirs
alone,
are
not
those
of
PNC
or
its
management,
and
may
not
reflect
PNC’s,
Sterling’s
or
other
company’s
actual
or
anticipated
results.
Cautionary Statement Regarding
Forward-Looking Information (continued)
Appendix

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
be
able
to
obtain
these
documents
free
of
charge
at
the
SEC’s
web
site
at
http://www.sec.gov.
In
addition,
documents
filed
with
the
SEC
by
The
PNC
Financial
Services
Group,
Inc.
will
be
available
free
of
charge
from
Shareholder
Relations
at
(800)
843-2206.
Documents
filed
with
the
SEC
by
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
Appendix

CMBS Supplemental Information
Appendix
PNC CMBS Portfolio
Spread Volatility
0
2
4
6
8
10
12
14
10 Year, AAA CMBS vs swaps, bps
Weekly CMBS Spread Volatility
(03/29/05 –
12/04/07)
2005      
2006                        2007
Source:  JPMorgan
08/01/07
11/19/07
High quality portfolio
-Internal assessment of 85%+
AAA equivalent
-Modest level of kick-outs
-Weighted average loan to
value of 72% with
conservative escrows
-Average debt service
coverage of 1.3x with 90%+
amortizing loans versus
common trend of extended
term interest-only financing

Non-GAAP to GAAP
Reconcilement
Earnings Summary –
Nine Months Ended
Appendix
NINE MONTHS ENDED
In millions, except per share data
Adjustments,
Net
Diluted
Adjustments,
Net
Diluted
Pretax
Income
EPS
Pretax
Income
EPS
Net income, as reported
$1,289
$3.85
$2,219
$7.46
Adjustments:
  BlackRock LTIP (a)
$(1)
(1)
                  
  Integration costs (b)
72
                
49
                
.15
               
$91
39
                
.13
               
  Gain on BlackRock/MLIM transaction (c)
(2,078)
(1,293)
          
(4.35)
            
  Securities portfolio rebalancing loss (c)
196
127
              
.43
               
  Mortgage loan portfolio repositioning loss (c)
48
31
                
.10
               
Net income, as adjusted
$1,337
$4.00
$1,123
$3.77
September 30
NINE MONTHS ENDED
2004
2005
2006
2007
CAGR
Net income, as reported
$890
$970
$2,219
$1,289
13%
Net income, as adjusted
890
970
1,123
1,337
15%
Diluted earnings per share, as reported
3.13
3.35
7.46
3.85
7%
Diluted earnings per share, as adjusted
$3.13
$3.35
$3.77
$4.00
9%
(c) Included in noninterest income on a pretax basis.
September 30, 2007
September 30, 2006
(a)
Includes
the
impact
of
the
gain
recognized
in
connection
with
PNC's
transfer
of
BlackRock
shares
to
satisfy
a
portion
of
PNC's
BlackRock
LTIP
shares
obligation
and
the
net mark-to-market adjustment on PNC's remaining BlackRock LTIP shares obligation.
(b)
In
addition
to
acquisition
integration
costs
related
to
recent
or
pending
PNC
acquisitions
reflected
in
the
2007
period
presented,
both
the
2007
and
the
2006
periods
presented
include
BlackRock/MLIM
transaction
integration
costs.
BlackRock/MLIM
transaction
integration
costs
recognized
by
PNC
for
the
first
nine
months
of
2007
were
included
in
noninterest
income
as
a
negative
component
of
the
"Asset
management"
line
item,
which
includes
the
impact
of
PNC's
equity
earnings
from
PNC's
investment
in
BlackRock. The first nine months of 2006 BlackRock/MLIM transaction integration costs were included in noninterest expense.

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
For the Nine Months Ended September 30
Appendix
NINE MONTHS ENDED
In millions
As Reported 
Adjustments
As Adjusted (a) 
As Reported 
Adjustments
As Adjusted (b)
Net interest income
$2,122
$2,122
$1,679
($10)
$1,669
Net interest income:
% Change As
Reported
% Change As
Adjusted
     Loans
806
              
806
             
682
              
(10)
             
672
           
18%
20%
     Deposits
1,316
           
1,316
          
997
              
997
           
32%
32%
Noninterest Income
2,956
           
$4
2,960
          
5,358
           
(2,777)
        
2,581
         
(45%)
15%
Total revenue
5,078
           
4
                
5,082
          
7,037
           
(2,787)
        
4,250
         
(28%)
20%
Loan net interest income as a % of total revenue
15.9%
15.9%
9.7%
15.8%
Deposit net interest income as a % of total revenue
25.9%
25.9%
14.2%
23.5%
Noninterest income as a % of total revenue
58.2%
58.2%
76.1%
60.7%
Provision for credit losses
127
127
82
82
Noninterest income
2,956
4
                
2,960
5,358
(2,777)
        
2,581
Noninterest expense
3,083
(67)
3,016
3,474
(856)
2,618
(11%)
15%
     Income before minority interest
        and income taxes
1,868
71
              
1,939
3,481
(1,931)
1,550
Minority interest in income
   of BlackRock
47
(47)
Income taxes
579
23
602
1,215
(788)
427
     Net income
$1,289
$48
$1,337
$2,219
($1,096)
$1,123
(42%)
19%
OPERATING LEVERAGE - NINE MONTHS ENDED
As Reported
As Adjusted
Total revenue
(28%)
20%
Noninterest expense
(11%)
15%
Operating leverage 
(17%)
5%
(a)
Amounts
adjusted
to
exclude
the
impact
of
the
following
pretax
items:
(1)
the
gain
of
$83
million
recognized
in
connection
with
PNC's
transfer
of
BlackRock
shares
to
satisfy
a
portion
of
our
BlackRock
LTIP
shares
obligation,
(2)
the
net
mark-to-market
adjustment
totaling
$82
million
on
our
remaining
BlackRock
LTIP
shares
obligation,
and
(3)
acquisition
and
BlackRock/MLIM
transaction integration costs totaling $72 million.  The net tax impact of these items is reflected in the adjustment to income taxes.
(b)
Amounts
adjusted
to
exclude
the
impact
of
the
following
pretax
items:
(1)
the
gain
of
$2.078
billion
on
the
BlackRock/MLIM
transaction,
(2)
the
loss
of
$196
million
on
the
securities
portfolio
rebalancing,
(3)
BlackRock/MLIM
transaction
integration
costs
of
$91
million
for
the
first
nine
months
of
2006,
and
(4)
the
mortgage
loan
portfolio
repositioning
loss
of
$48
million.
The
net
tax
impact
of
these
items
is
reflected
in
the
adjustment
to
income
taxes.
We
believe
that
information
as
adjusted
for
the
impact
of
these
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.
Additionally,
the
amounts
are
also
adjusted
as
if
we
had
recorded
our
investment
in
BlackRock
on
the
equity
method.
We
believe
that
providing
amounts
adjusted
as
if
we
had
recorded
our
investment
in
BlackRock
on
the
equity
method
for
all
periods
presented
helps
provide
a basis of comparability for the impact of the BlackRock deconsolidation given the magnitude of the impact on various components of our consolidated income statement.
2006 to 2007 Change
September 30, 2007
September 30, 2006

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
For the Three Months Ended
Appendix
For the three months ended September 30, 2007
PNC
PNC
In millions
As Reported
Adjustments (a)
As Adjusted
Reported
Adjusted
Net interest income
$761
$761
Loan net interest income
294
294
5%
5%
Deposit net interest income
467
467
2%
2%
Provision for credit losses
65
65
     Net interest income less provision for credit losses
696
696
Asset management
204
$2
206
Other
786
50
836
     Total noninterest income
990
52
1,042
2%
7%
Compensation and benefits
553
(16)
537
Other
546
(25)
521
     Total noninterest expense
1,099
(41)
1,058
6%
3%
Income before income taxes
587
93
680
Income taxes
180
31
211
     Net income
$407
$62
$469
(4%)
8%
For the three months ended June 30, 2007
PNC
PNC
In millions
As Reported
Adjustments (b)
As Adjusted
Net interest income
$738
$738
Loan net interest income
280
280
Deposit net interest income
458
458
Provision for credit losses
54
54
     Net interest income less provision for credit losses
684
684
Asset management
190
$1
191
Other
785
1
786
     Total noninterest income
975
2
977
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
% Change vs. June 30, 2007
(a)
Includes
the
impact
of
the
following
items
on
a
pretax
basis:
$50
million
net
loss
related
to
our
BlackRock
LTIP
shares
obligation
and
$43
million
of
acquisition
and
BlackRock/MLIM transaction integration costs.  The net tax impact of these items is reflected in the adjustment to income taxes.
(b)
Includes
the
impact
of
the
following
items
on
a
pretax
basis:
$16
million
of
acquisition
and
BlackRock/MLIM
transaction
integration
costs
and
$1
million
net
loss
related to our BlackRock LTIP shares obligation.  The net tax impact of these items is reflected in the adjustment to income taxes.

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
2004 to 2006
Appendix
BlackRock
For the year ended December 31, 2006
PNC
Deconsolidation and
BlackRock
PNC
In millions
As Reported
Adjustments (a)
Other Adjustments
Equity Method
As Adjusted
Net interest income
$2,245
$(10)
$2,235
Provision for credit losses
124
124
Noninterest income
6,327
$(1,812)
(1,087)
$144
3,572
Noninterest expense
4,443
(91)
(765)
3,587
Income before minority interest and income taxes
4,005
(1,721)
(332)
144
2,096
Minority interest in income of BlackRock
47
18
(65)
Income taxes
1,363
(658)
(130)
7
582
   Net income
$2,595
$(1,081)
$(137)
$137
$1,514
For the year ended December 31, 2005
BlackRock
PNC
Deconsolidation and
BlackRock
PNC
In millions
As Reported
Other Adjustments
Equity Method
As Adjusted
Net interest income
$2,154
$(12)
$2,142
Provision for credit losses
21
21
Noninterest income
4,173
(1,214)
$163
3,122
Noninterest expense
4,306
(853)
3,453
Income before minority interest and income taxes
2,000
(373)
163
1,790
Minority interest in income of BlackRock
71
(71)
Income taxes
604
(150)
11
465
   Net income
$1,325
$(152)
$152
$1,325
(a)
Includes
the
impact
of
the
following
items,
all
on
a
pretax
basis,
and
adjustment
for
the
tax
impact
thereof:
$2,078
million
gain
on
BlackRock/MLIM
transaction,
$196
million
securities
portfolio
rebalancing
loss,
$101
million
of
BlackRock/MLIM
transaction
integration
costs,
$48
million
mortgage
loan
portfolio
repositioning
loss,
and
$12 million net loss related to our BlackRock LTIP shares obligation.

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
2004 to 2006 (continued)
Appendix
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
52
52
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
(42)
Income taxes
538
(59)
7
486
   Net income
$1,197
$(94)
$94
$1,197
CAGR
In millions
2004
2005
2006
As Adjusted
Adjusted net interest income
$1,955
$2,142
$2,235
Adjusted noninterest income
2,928
3,122
3,572
Adjusted total revenue
4,883
5,264
5,807
9%
Adjusted noninterest expense
3,148
3,453
3,587
7%
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
Total revenue, as reported
5,541
6,327
8,572
24%
Noninterest expense, as reported
3,712
4,306
4,443
9%
Net income, as reported
$1,197
$1,325
$2,595
47%

Non-GAAP to GAAP
Reconcilement
Business Segments
Appendix
Nine Months Ending September 30, 2007
Dollars in millions
Retail
Banking
Corporate &
Institutional
Banking
Other
Banking and
Other
BlackRock
PFPC
Total
Net interest income (expense)
$1,517
$571
$48
$2,136
($14)
$2,122
Noninterest income
1,280
        
558
           
260
           
2,098
        
$227
631
           
2,956
        
Total Revenue
$2,797
$1,129
$308
$4,234
$227
$617
$5,078
Noninterest income as a % of
total revenue
46%
49%
84%
50%
100%
102%
58%
Dollars in millions
2007
% of Segments
2006
% Change
Retail Banking
$678
53%
$581
17%
Corporate & Institutional Banking
341
26%
328
4%
BlackRock (a)
176
14%
137
28%
PFPC
96
7%
93
3%
     Total business segment earnings
1,291
1,139
Other (a)(b)
(2)
1,080
Total consolidated net income
$1,289
$2,219
Nine Months Ending September 30
Earnings (Loss)
(a)
For
our
segment
reporting
presentation
in
management's
discussion
and
analysis,
after-tax
BlackRock/MLIM
transaction
integration
costs
totaling
$4
million
and
$56
million
for
the
nine
months
ended
September
30,
2007
and
September
30,
2006
have
been
reclassified
from
BlackRock
to
"Other."
"Other"
for
the
first
nine
months
of
2007
also
includes
$45
million
of
after-tax
Mercantile
acquisition
integration costs.
(b) "Other" for the first nine months of 2006 included the $2,078 million pre-tax, or $1,293 million after-tax, gain on the BlackRock/MLIM
transaction recorded in the third quarter of 2006.

The PNC Financial Services Group, Inc.
PNC
BB&T Corporation
BBT
Comerica
CMA
Fifth Third Bancorp
FITB
KeyCorp
KEY
National City Corporation
NCC
Regions Financial
RF
SunTrust Banks, Inc.
STI
U.S. Bancorp
USB
Wachovia Corporation
WB
Wells Fargo & Company
WFC
Ticker
Peer Group of
Super-Regional Banks
Appendix