Form 425

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 January 17, 2008, 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 fourth quarter and year ended December 31, 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

FOURTH QUARTER AND FULL YEAR 2007

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 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 Segment Results		5
Period-end Employees		5
Retail Banking		6-8
Corporate & Institutional Banking		9
PFPC		10
Efficiency Ratio		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 Products and Services		22

Appendix - Adjusted Condensed Consolidated Income Statement Reconciliations		A1-A5

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 17, 2008. 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. 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.

THE PNC FINANCIAL SERVICES GROUP, INC.

Yardville National Bancorp Acquisition

We completed our acquisition of Yardville National Bancorp (“Yardville”) on October 26, 2007 and our financial results include Yardville from that date. PNC issued approximately 3.4 million shares of PNC common stock and paid approximately $156 million in cash as consideration for the acquisition, and accounted for the transaction under the purchase method.

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 PNC common stock and paid approximately $2.1 billion in cash as consideration for the acquisition, and accounted for the transaction under the purchase method. PNC converted the Mercantile banks’ data onto PNC’s financial and operational systems during September 2007.

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.

Our Consolidated Income Statement for the year ended December 31, 2006 reflects our former majority ownership interest in BlackRock for the first nine months of that year and our investment in BlackRock accounted for under the equity method for the fourth quarter of that year. Our Consolidated Income Statement for all other periods presented and our Consolidated Balance Sheet as of all dates included in this Financial Supplement reflect the September 29, 2006 deconsolidation of BlackRock’s balance sheet amounts and recognize our approximate 34% ownership interest in BlackRock for those periods and 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 Financial Supplement to reflect BlackRock as if it had also been accounted for under the equity method for the full year 2006.

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)


	*Year ended*						*Three months ended*
*In millions, except per share data*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Interest Income
Loans	$	4,232		$	3,203		$	1,123		$	1,129		$	1,084		$	896		$	821
Securities available for sale		1,429			1,049			398			366			355			310			280
Other		505			360			149			132			115			109			116

Total interest income		6,166			4,612			1,670			1,627			1,554			1,315			1,217

Interest Expense
Deposits		2,053			1,590			522			531			532			468			450
Borrowed funds		1,198			777			355			335			284			224			201

Total interest expense		3,251			2,367			877			866			816			692			651

Net interest income		2,915			2,245			793			761			738			623			566
Provision for credit losses		315			124			188			65			54			8			42

Net interest income less provision for credit losses		2,600			2,121			605			696			684			615			524

Noninterest Income
Asset management		784			1,420			225			204			190			165			149
Fund servicing		835			893			215			208			209			203			249
Service charges on deposits		348			313			90			89			92			77			79
Brokerage		278			246			69			71			72			66			63
Consumer services		414			365			110			106			107			91			93
Corporate services		713			626			180			198			176			159			177
Equity management gains		102			107			21			47			2			32			25
Net securities gains (losses)		(5	)		(207	)		(1	)		(2	)		1			(3	)
Trading		104			183			(10	)		33			29			52			33
Net gains (losses) related to BlackRock		(127	)		2,066			(128	)		(50	)		(1	)		52			(12	)
Other		344			315			63			86			98			97			113

Total noninterest income		3,790			6,327			834			990			975			991			969

Noninterest Expense
Compensation		1,850			2,128			482			480			470			418			442
Employee benefits		290			304			71			73			74			72			55
Net occupancy		350			310			95			87			81			87			69
Equipment		311			303			84			77			79			71			69
Marketing		115			104			29			36			29			21			23
Other		1,380			1,294			452			346			307			275			311

Total noninterest expense		4,296			4,443			1,213			1,099			1,040			944			969

Income before minority interest and income taxes		2,094			4,005			226			587			619			662			524
Minority interest in income of BlackRock					47
Income taxes		627			1,363			48			180			196			203			148

Net income	$	1,467		$	2,595		$	178		$	407		$	423		$	459		$	376

Earnings Per Common Share
Basic	$	4.43		$	8.89		$	.53		$	1.21		$	1.24		$	1.49		$	1.29
Diluted	$	4.35		$	8.73		$	.52		$	1.19		$	1.22		$	1.46		$	1.27

Average Common Shares Outstanding
Basic		331			292			338			337			342			308			291
Diluted		335			297			341			340			346			312			295

Efficiency		64	%		52	%		75	%		63	%		61	%		58	%		63	%

Noninterest income to total revenue		57	%		74	%		51	%		57	%		57	%		61	%		63	%

Effective tax rate (a)		29.9	%		34.0	%		21.2	%		30.7	%		31.7	%		30.7	%		28.2	%

(a)

The effective tax rates are presented on a GAAP basis. The lower effective tax rate for the fourth quarter of 2007 was primarily due to lower pretax income in relation to tax credits and earnings that are not subject to tax. The higher effective tax rate for full year 2006 was primarily due to the third quarter 2006 gain on the BlackRock/MLIM transaction and a related $57 million cumulative adjustment to deferred taxes recorded in that quarter. The lower effective tax rate in the fourth quarter of 2006 was primarily due to a reduction in tax reserves for interest.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Adjusted Condensed Consolidated Income Statement (Unaudited) (a)


*For the year ended - in millions*	December 31 2007		December 31 2006
Net Interest Income
Net interest income	$	2,915	$	2,235
Provision for credit losses		270		124

Net interest income less provision for credit losses		2,645		2,111

Noninterest Income
Asset management		788		538
Other		3,133		3,034

Total noninterest income		3,921		3,572

Noninterest Expense
Compensation and benefits		2,103		1,865
Other		2,009		1,722

Total noninterest expense		4,112		3,587

Income before income taxes		2,454		2,096
Income taxes		752		582

Net income	$	1,702	$	1,514


*For the three months ended - in millions*	December 31 2007		September 30 2007		June 30 2007		March 31 2007		December 31 2006
Net Interest Income
Net interest income	$	793	$	761	$	738	$	623	$	566
Provision for credit losses		143		65		54		8		42

Net interest income less provision for credit losses		650		696		684		615		524

Noninterest Income
Asset management		224		206		191		167		159
Other		737		836		786		774		832

Total noninterest income		961		1,042		977		941		991

Noninterest Expense
Compensation and benefits		543		537		535		488		497
Other		553		521		490		445		472

Total noninterest expense		1,096		1,058		1,025		933		969

Income before income taxes		515		680		636		623		546
Income taxes		150		211		202		189		155

Net income	$	365	$	469	$	434	$	434	$	391

(a)

This schedule is provided for informational purposes only and reflects historical condensed consolidated financial information of PNC: (1) with amounts adjusted for the impact of certain specified items; (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented; and (3) adjusted in each case, as appropriate, for the tax impact. See the Appendix to this 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 the 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*	December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Assets
Cash and due from banks	$	3,567		$	3,318		$	3,177		$	3,234		$	3,523
Federal funds sold and resale agreements		2,729			2,360			1,824			1,604			1,763
Other short-term investments, including trading securities		4,129			3,944			3,667			3,041			3,130
Loans held for sale		3,927			3,004			2,562			2,382			2,366
Securities available for sale		30,225			28,430			25,903			26,475			23,191
Loans, net of unearned income of $990, $986, $1,004, $1,005, and $795		68,319			65,760			64,714			62,925			50,105
Allowance for loan and lease losses		(830	)		(717	)		(703	)		(690	)		(560	)

Net loans		67,489			65,043			64,011			62,235			49,545
Goodwill		8,405			7,836			7,745			7,739			3,402
Other intangible assets		1,146			1,099			913			929			641
Equity investments		6,045			5,975			5,584			5,408			5,330
Other		11,258			10,357			10,265			9,516			8,929

Total assets	$	138,920		$	131,366		$	125,651		$	122,563		$	101,820


Liabilities
Deposits
Noninterest-bearing	$	19,440		$	18,570		$	18,302		$	18,191		$	16,070
Interest-bearing		63,256			59,839			58,919			59,176			50,231

Total deposits		82,696			78,409			77,221			77,367			66,301
Borrowed funds
Federal funds purchased		7,037			6,658			7,212			5,638			2,711
Repurchase agreements		2,737			1,990			2,805			2,586			2,051
Federal Home Loan Bank borrowings		7,065			4,772			104			111			42
Bank notes and senior debt		6,821			7,794			7,537			4,551			3,633
Subordinated debt		4,506			3,976			4,226			4,628			3,962
Other		2,765			2,263			2,632			2,942			2,629

Total borrowed funds		30,931			27,453			24,516			20,456			15,028
Allowance for unfunded loan commitments and letters of credit		134			127			125			121			120
Accrued expenses		4,330			4,077			3,663			3,864			3,970
Other		4,321			5,095			4,252			4,649			4,728

Total liabilities		122,412			115,161			109,777			106,457			90,147

Minority and noncontrolling interests in consolidated entities		1,654			1,666			1,370			1,367			885

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		2,618			2,631			2,606			2,520			1,651
Retained earnings		11,497			11,531			11,339			11,134			10,985
Accumulated other comprehensive loss		(147	)		(255	)		(439	)		(162	)		(235	)
Common stock held in treasury at cost: 12, 16, 11, 7, and 60 shares		(878	)		(1,132	)		(766	)		(517	)		(3,377	)

Total shareholders’ equity		14,854			14,539			14,504			14,739			10,788

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	138,920		$	131,366		$	125,651		$	122,563		$	101,820

Capital Ratios
Tier 1 risk-based (b)		6.8	%		7.5	%		8.3	%		8.6	%		10.4	%
Total risk-based (b)		10.3			10.9			11.8			12.2			13.5
Leverage (b)		6.2			6.8			7.3			8.7			9.3
Tangible common equity		4.7			5.2			5.5			5.8			7.4
Common shareholders’ equity to assets		10.7			11.1			11.5			12.0			10.6

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

(b)	The ratios as of December 31, 2007 are estimated.

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Segment Results (Unaudited)


	*Year ended*				*Three months ended*
*In millions* (a) (b)	December 31 2007		December 31 2006		December 31 2007			September 30 2007		June 30 2007		March 31 2007		December 31 2006
Earnings
Retail Banking	$	893	$	765	$	215		$	250	$	227	$	201	$	184
Corporate & Institutional Banking		432		454		91			87		122		132		126
PFPC		128		124		32			33		32		31		31
Other, including BlackRock (b)		14		1,252		(160	)		37		42		95		35

Total consolidated net income	$	1,467	$	2,595	$	178		$	407	$	423	$	459	$	376


Revenue (c)
Retail Banking	$	3,801	$	3,125	$	999		$	985	$	978	$	839	$	799
Corporate & Institutional Banking		1,538		1,455		399			388		381		370		390
PFPC (d)		831		762		214			209		208		200		194
Other, including BlackRock (b)		562		3,255		22			175		154		211		157

Total consolidated revenue	$	6,732	$	8,597	$	1,634		$	1,757	$	1,721	$	1,620	$	1,540

(a)	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)

We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our Annual Report on Form 10-K for the year ended December 31, 2007 will provide additional business segment disclosures for BlackRock. Generally, PNC’s business segment earnings from BlackRock can be estimated by multiplying our approximately 33.5% ownership interest by BlackRock’s reported GAAP earnings, less the additional income taxes recorded by PNC on those earnings. The effective tax rate on those earnings is typically different than PNC’s consolidated effective tax rate due to the tax treatment of dividends received, if any, from BlackRock. PNC’s effective tax rate on its earnings from BlackRock for the fourth quarter of 2007 and full year 2007 was approximately 25%.

(c)

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):


	*Year ended*				*Three months ended*
	December 31 2007		December 31 2006		December 31 2007		September 30 2007		June 30 2007		March 31 2007		December 31 2006
Total consolidated revenue, book (GAAP) basis	$	6,705	$	8,572	$	1,627	$	1,751	$	1,713	$	1,614	$	1,535
Taxable-equivalent adjustment		27		25		7		6		8		6		5

Total consolidated revenue, taxable-equivalent basis	$	6,732	$	8,597	$	1,634	$	1,757	$	1,721	$	1,620	$	1,540

(d)	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.


	December 31 2007	September 30 2007	June 30 2007	March 31 2007	December 31 2006
Period-end Employees
Full-time employees:
Retail Banking	12,036	11,753	11,804	11,838	9,549
Corporate & Institutional Banking	2,290	2,267	2,084	2,038	1,936
PFPC	4,784	4,504	4,522	4,400	4,381
Other
Operations & Technology	4,379	4,243	4,501	4,493	3,909
Staff Services	1,991	2,044	2,115	2,059	1,680

Total Other	6,370	6,287	6,616	6,552	5,589

Total full-time employees	25,480	24,811	25,026	24,828	21,455
Total part-time employees	2,840	2,823	3,028	2,867	2,328

Total employees	28,320	27,634	28,054	27,695	23,783

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. Yardville employees are included in the Retail Banking, Corporate & Institutional Banking, and Other businesses at December 31, 2007. Mercantile employees are included in the Retail Banking, Corporate & Institutional Banking, and Other businesses at December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007. PFPC employee statistics are provided on a legal entity basis.

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited)


	*Year ended*						*Three months ended*
*Taxable-equivalent basis* (a) *Dollars in millions*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
INCOME STATEMENT
Net interest income	$	2,065		$	1,678		$	543		$	535		$	535		$	452		$	419
Noninterest income		1,736			1,447			456			450			443			387			380

Total revenue		3,801			3,125			999			985			978			839			799
Provision for credit losses		138			81			70			8			37			23			35
Noninterest expense		2,239			1,827			587			577			579			496			471

Pretax earnings		1,424			1,217			342			400			362			320			293
Income taxes		531			452			127			150			135			119			109

Earnings	$	893		$	765		$	215		$	250		$	227		$	201		$	184


AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	14,209		$	13,813		$	14,417		$	14,296		$	14,237		$	13,881		$	13,807
Indirect		1,897			1,052			2,031			2,033			2,036			1,480			1,133
Other consumer		1,597			1,248			1,688			1,610			1,596			1,490			1,322

Total consumer		17,703			16,113			18,136			17,939			17,869			16,851			16,262
Commercial		12,534			5,721			14,020			13,799			13,678			8,201			5,907
Floor plan		978			910			983			939			1,037			952			853
Residential mortgage		1,992			1,440			2,500			2,050			2,038			1,781			1,031
Other		230			242			225			230			235			233			234

Total loans		33,437			24,426			35,864			34,957			34,857			28,018			24,287
Goodwill and other intangible assets		5,061			1,581			5,792			5,703			5,737			2,942			1,574
Loans held for sale		1,564			1,607			1,572			1,567			1,554			1,562			1,505
Other assets		2,362			1,634			2,487			2,848			2,626			1,927			1,671

Total assets	$	42,424		$	29,248		$	45,715		$	45,075		$	44,774		$	34,449		$	29,037

Deposits
Noninterest-bearing demand	$	10,513		$	7,841		$	10,967		$	11,191		$	11,065		$	8,871		$	7,834
Interest-bearing demand		8,876			7,906			9,173			8,869			9,097			8,354			7,865
Money market		16,786			14,750			17,328			17,020			17,100			15,669			14,822

Total transaction deposits		36,175			30,497			37,468			37,080			37,262			32,894			30,521
Savings		2,678			2,035			2,651			2,831			2,981			2,243			1,877
Certificates of deposit		16,637			13,861			16,768			16,502			17,531			15,738			14,694

Total deposits		55,490			46,393			56,887			56,413			57,774			50,875			47,092
Other liabilities		621			553			577			540			679			708			598
Capital		3,558			2,986			3,626			3,595			3,724			3,287			3,034

Total funds	$	59,669		$	49,932		$	61,090		$	60,548		$	62,177		$	54,870		$	50,724


PERFORMANCE RATIOS
Return on average capital		25	%		26	%		24	%		28	%		24	%		25	%		24	%
Noninterest income to total revenue		46			46			46			46			45			46			48
Efficiency		59			58			59			59			59			59			59

(a)	See notes (a) and (c) on page 5.

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


	*Year ended*						*Three months ended*
*Dollars in millions except as noted*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
OTHER INFORMATION (a) (b)
Credit-related statistics:
Nonperforming assets							$	225		$	137		$	140		$	123		$	106
Net charge-offs	$	131		$	85		$	45		$	34		$	25		$	27		$	21
Annualized net charge-off ratio		.39	%		.35	%		.50	%		.39	%		.29	%		.39	%		.34	%

Other statistics:
Full-time employees								12,036			11,753			11,804			11,838			9,549
Part-time employees								2,309			2,248			2,360			2,224			1,829
ATMs								3,900			3,870			3,917			3,862			3,581
Branches (c)								1,109			1,072			1,084			1,077			852
Gains on sales of education loans (d)	$	24		$	33		$	4		$	12		$	5		$	3		$	11

ASSETS UNDER ADMINISTRATION (in billions) (e)
Assets under management
Personal							$	53		$	57		$	55		$	54		$	44
Institutional								20			20			22			22			10

Total							$	73		$	77		$	77		$	76		$	54

Asset Type
Equity							$	42		$	44		$	43		$	41		$	34
Fixed income								18			20			20			20			12
Liquidity/Other								13			13			14			15			8

Total							$	73		$	77		$	77		$	76		$	54

Nondiscretionary assets under administration
Personal							$	30		$	31		$	30		$	31		$	25
Institutional								83			81			81			80			61

Total							$	113		$	112		$	111		$	111		$	86

Asset Type
Equity							$	49		$	50		$	47		$	42		$	33
Fixed income								28			27			28			28			24
Liquidity/Other								36			35			36			41			29

Total							$	113		$	112		$	111		$	111		$	86

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

(b)	Amounts subsequent to March 2, 2007 include the impact of Mercantile. Amounts subsequent to October 26, 2007 include the impact of Yardville.

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

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

(e)	Excludes brokerage account assets.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


*Dollars in millions except as noted*	December 31 2007 (b)			September 30 2007			June 30 2007 (b)			March 31 2007 (b)			December 31 2006
OTHER INFORMATION (a) (b)
Home equity portfolio credit statistics:
% of first lien positions (c)		39	%		39	%		42	%		43	%		43	%
Weighted average loan-to-value ratios (c)		73	%		72	%		70	%		70	%		70	%
Weighted average FICO scores (d)		727			726			727			726			728
Loans 90 days past due		.37	%		.30	%		.26	%		.25	%		.24	%

Checking-related statistics:
Retail Banking checking relationships		2,272,000			2,275,000			1,967,000			1,962,000			1,954,000
Consumer DDA households using online banking		1,091,000			1,050,000			975,000			960,000			938,000
% of consumer DDA households using online banking		54	%		52	%		55	%		54	%		53	%
Consumer DDA households using online bill payment		667,000			604,000			505,000			450,000			404,000
% of consumer DDA households using online bill payment		33	%		30	%		29	%		25	%		23	%

Small business loans and managed deposits:
Small business loans	$	13,049		$	13,157		$	5,410		$	5,284		$	5,116
Managed deposits:
On-balance sheet
Noninterest-bearing demand	$	5,994		$	6,119		$	4,250		$	4,284		$	4,383
Interest-bearing demand		1,873			2,027			1,505			1,517			1,649
Money market		3,152			3,389			2,595			2,635			2,592
Certificates of deposit		1,068			1,070			584			681			802
Off-balance sheet (e)
Small business sweep checking		2,780			2,823			1,933			1,827			1,733

Total managed deposits	$	14,867		$	15,428		$	10,867		$	10,944		$	11,159

Brokerage statistics:
Margin loans	$	151		$	161		$	162		$	166		$	163
Financial consultants (f)		769			765			767			757			758
Full service brokerage offices		100			100			99			99			99
Brokerage account assets (billions)	$	48		$	49		$	47		$	46		$	46

(a)	Presented as of period-end.

(b)

This information excludes the impact of acquisitions between PNC’s acquisition date and the date of conversion of the acquired companies’ data onto PNC’s financial and operational systems because such information was not available prior to the conversion date. Therefore, information presented above as of June 30, 2007 and March 31, 2007 excludes the impact of Mercantile, which PNC acquired effective March 2, 2007 and converted during September 2007. Similarly, information presented above as of December 31, 2007 (except “Brokerage statistics”) excludes the impact of Yardville, which PNC acquired effective October 26, 2007 and expects to convert during March 2008.

(c)	Includes loans from acquired portfolios for which lien position and loan-to-value information was limited.

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

(e)	Represents small business balances. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.

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

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited)


	*Year ended*						*Three months ended*
*Taxable-equivalent basis* (a) *Dollars in millions except as noted*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
INCOME STATEMENT
Net interest income	$	818		$	703		$	237		$	204		$	194		$	183		$	186
Noninterest income
Corporate service fees		564			526			137			161			139			127			149
Other (b)		156			226			25			23			48			60			55

Noninterest income		720			752			162			184			187			187			204

Total revenue		1,538			1,455			399			388			381			370			390
Provision for (recoveries of) credit losses		125			42			69			55			17			(16	)		6
Noninterest expense		818			746			222			211			192			193			199

Pretax earnings		595			667			108			122			172			193			185
Income taxes		163			213			17			35			50			61			59

Earnings	$	432		$	454		$	91		$	87		$	122		$	132		$	126


AVERAGE BALANCE SHEET
Loans
Corporate (c)	$	9,519		$	8,633		$	10,254		$	9,625		$	9,274		$	8,909		$	8,885
Commercial real estate		3,590			2,876			3,956			3,576			3,555			3,253			3,143
Commercial - real estate related		3,580			2,433			4,065			3,746			3,736			2,733			2,189
Asset-based lending		4,634			4,467			4,795			4,647			4,562			4,513			4,594

Total loans (c)		21,323			18,409			23,070			21,594			21,127			19,408			18,811
Goodwill and other intangible assets		1,919			1,352			2,232			2,085			1,837			1,544			1,399
Loans held for sale		1,319			893			1,781			1,207			982			1,302			965
Other assets		4,491			4,168			4,641			4,544			4,531			4,244			4,550

Total assets	$	29,052		$	24,822		$	31,724		$	29,430		$	28,477		$	26,498		$	25,725

Deposits
Noninterest-bearing demand	$	7,301		$	6,771		$	7,851		$	7,238		$	6,953		$	7,083		$	7,210
Money market		4,784			2,654			4,995			4,960			4,653			4,530			3,644
Other		1,325			907			1,818			1,436			1,113			926			921

Total deposits		13,410			10,332			14,664			13,634			12,719			12,539			11,775
Other liabilities		3,347			2,863			4,452			3,109			2,960			2,850			3,093
Capital		2,152			1,838			2,357			2,132			2,050			2,064			1,935

Total funds	$	18,909		$	15,033		$	21,473		$	18,875		$	17,729		$	17,453		$	16,803


PERFORMANCE RATIOS
Return on average capital		20	%		25	%		15	%		16	%		24	%		26	%		26	%
Noninterest income to total revenue		47			52			41			47			49			51			52
Efficiency		53			51			56			54			50			52			51


COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	200		$	136		$	244		$	222		$	206		$	200		$	180
Acquisitions/additions		88			102			8			36			28			16			33
Repayments/transfers		(45	)		(38	)		(9	)		(14	)		(12	)		(10	)		(13	)

End of period (d)	$	243		$	200		$	243		$	244		$	222		$	206		$	200


OTHER INFORMATION
Consolidated revenue from: (e)
Treasury Management	$	476		$	418		$	131		$	121		$	114		$	110		$	107
Capital Markets	$	290		$	283		$	74		$	73		$	76		$	67		$	79
Midland Loan Services	$	220		$	184		$	51		$	59		$	56		$	54		$	53
Total loans (f)							$	23,861		$	22,455		$	21,662		$	21,193		$	18,957
Nonperforming assets (f)							$	243		$	141		$	100		$	77		$	63
Net charge-offs	$	70		$	54		$	39		$	15		$	7		$	9		$	24
Full-time employees (f)								2,290			2,267			2,084			2,038			1,936
Net gains on commercial mortgage loan sales (d)	$	39		$	55		$	10		$	5		$	9		$	15		$	18
Valuation adjustment on commercial mortgage loans held for sale	$	(26	)				$	(26	)
Net carrying amount of commercial mortgage servicing rights (d) (f)							$	694		$	708		$	493		$	487		$	471

(a)	See notes (a) and (c) on page 5.

(b)	Amounts for fourth quarter and full year 2007 include a $26 million of negative valuation adjustment on our commercial mortgage loans held for sale.

(c)	Includes lease financing.

(d)	Amounts at December 31, 2007 and September 30, 2007 include the impact of the July 2, 2007 acquisition of ARCS Commercial Mortgage.

(e)	Represents consolidated PNC amounts.

(f)	Presented as of period end.

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


	*Year ended*						*Three months ended*
*Dollars in millions except as noted*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
INCOME STATEMENT
Servicing revenue (b)	$	863		$	800		$	223		$	216		$	216		$	208		$	203
Operating expense (b)		637			586			167			159			158			153			146

Operating income		226			214			56			57			58			55			57
Debt financing		38			42			10			9			9			10			10
Nonoperating income (c)		6			4			1			2			1			2			1

Pretax earnings		194			176			47			50			50			47			48
Income taxes		66			52			15			17			18			16			17

Earnings	$	128		$	124		$	32		$	33		$	32		$	31		$	31


PERIOD-END BALANCE SHEET
Goodwill and other intangible assets							$	1,315		$	1,002		$	1,005		$	1,008		$	1,012
Other assets								1,161			1,169			1,395			1,370			1,192

Total assets							$	2,476		$	2,171		$	2,400		$	2,378		$	2,204

Debt financing							$	989		$	702		$	734		$	760		$	792
Other liabilities								865			878			1,109			1,091			917
Shareholder’s equity								622			591			557			527			495

Total funds							$	2,476		$	2,171		$	2,400		$	2,378		$	2,204


PERFORMANCE RATIOS
Return on average equity		23	%		29	%		21	%		23	%		24	%		25	%		26	%
Operating margin (d)		26			27			25			26			27			26			28


SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)(e)
Domestic							$	869		$	806		$	765		$	731		$	746
Offshore								121			116			103			91			91

Total							$	990		$	922		$	868		$	822		$	837

Asset type (in billions)(e)
Money market							$	373		$	328		$	286		$	280		$	281
Equity								390			377			373			352			354
Fixed income								123			117			118			111			117
Other								104			100			91			79			85

Total							$	990		$	922		$	868		$	822		$	837

Custody fund assets (in billions)							$	500		$	497		$	467		$	435		$	427

Shareholder accounts (in millions)
Transfer agency								19			19			20			18			18
Subaccounting								53			51			50			50			50

Total								72			70			70			68			68


OTHER INFORMATION
Period-end full-time employees								4,784			4,504			4,522			4,400			4,381

(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. Amounts for 2006 periods have been reclassified to conform with the current period presentation.

(c)	Net of nonoperating expense.

(d)	Total operating income divided by servicing revenue.

(e)	Includes alternative investment net assets serviced.

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Efficiency Ratio (Unaudited)


	*Year ended*				*Three months ended*
	December 31 2007		December 31 2006		December 31 2007		September 30 2007		June 30 2007		March 31 2007		December 31 2006
Efficiency, as reported (a)	64	%	52	%	75	%	63	%	61	%	58	%	63	%
Efficiency, as adjusted (b)	60	%	62	%	62	%	59	%	60	%	60	%	62	%

(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; (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented; and (3) in each case, as appropriate, adjusted for the tax impact. 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) below.


	*Year ended*						*Three months ended*
*Dollars in millions*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Reconciliation of GAAP amounts with amounts used in the calculation of the adjusted efficiency ratio:
GAAP basis—net interest income	$	2,915		$	2,245		$	793		$	761		$	738		$	623		$	566
Adjustment to net interest income: BlackRock equity method (c)					(10	)

Adjusted net interest income	$	2,915		$	2,235		$	793		$	761		$	738		$	623		$	566

GAAP basis—noninterest income	$	3,790		$	6,327		$	834		$	990		$	975		$	991		$	969
Adjustments (c) :
Gain on BlackRock/MLIM transaction					(2,078	)
Securities portfolio rebalancing loss					196
Mortgage loan portfolio repositioning loss					48
Integration costs		4			10			(1	)		2			1			2			10
BlackRock LTIP		127			12			128			50			1			(52	)		12
BlackRock equity method					(943	)

Adjusted noninterest income	$	3,921		$	3,572		$	961		$	1,042		$	977		$	941		$	991

Adjusted total revenue	$	6,836		$	5,807		$	1,754		$	1,803		$	1,715		$	1,564		$	1,557

GAAP basis—noninterest expense	$	4,296		$	4,443		$	1,213		$	1,099		$	1,040		$	944		$	969
Adjustments (c):
Integration costs		(102	)		(91	)		(35	)		(41	)		(15	)		(11	)
Visa indemnification		(82	)					(82	)
BlackRock equity method					(765	)

Adjusted noninterest expense	$	4,112		$	3,587		$	1,096		$	1,058		$	1,025		$	933		$	969

Adjusted efficiency ratio		60	%		62	%		62	%		59	%		60	%		60	%		62	%

(c)	See the Appendix to this Financial Supplement.

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

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


	*Year ended*						*Three months ended*
*In millions*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Net Interest Income
Interest income, taxable equivalent basis
Loans	$	4,248		$	3,216		$	1,127		$	1,134		$	1,088		$	899		$	824
Securities available for sale		1,431			1,050			398			368			355			310			279
Other		514			371			152			131			119			112			119

Total interest income		6,193			4,637			1,677			1,633			1,562			1,321			1,222

Interest expense
Deposits		2,053			1,590			522			531			532			468			450
Borrowed funds		1,198			777			355			335			284			224			201

Total interest expense		3,251			2,367			877			866			816			692			651

Net interest income, taxable-equivalent basis		2,942			2,270			800			767			746			629			571
Less: Taxable-equivalent adjustment		27			25			7			6			8			6			5

Net interest income, GAAP basis	$	2,915		$	2,245		$	793		$	761		$	738		$	623		$	566


	*Year ended*						Three months ended
	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Net Interest Margin
Average yields/rates
Yield on interest-earning assets
Loans		6.80	%		6.49	%		6.62	%		6.89	%		6.81	%		6.68	%		6.63	%
Securities available for sale		5.39			4.93			5.46			5.42			5.37			5.31			5.27
Other		5.70			5.45			5.51			5.56			5.94			5.83			5.56
Total yield on interest-earning assets		6.32			5.97			6.19			6.37			6.35			6.23			6.15
Rate on interest-bearing liabilities
Deposits		3.47			3.25			3.31			3.49			3.52			3.52			3.54
Borrowed funds		5.20			5.17			4.88			5.22			5.28			5.33			5.39
Total rate on interest-bearing liabilities		3.95			3.70			3.81			3.99			3.98			3.95			3.97

Interest rate spread		2.37			2.27			2.38			2.38			2.37			2.28			2.18
Impact of noninterest-bearing sources		.63			.65			.58			.62			.66			.67			.70

Net interest margin		3.00	%		2.92	%		2.96	%		3.00	%		3.03	%		2.95	%		2.88	%


	*Year ended*						*Three months ended*
*In millions*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Trading Revenue (a)
Net interest income (expense)	$	7		$	(6	)	$	7		$	(1	)	$	1					$	(2	)
Noninterest income		104			183			(10	)		33			29		$	52			33

Total trading revenue	$	111		$	177		$	(3	)	$	32		$	30		$	52		$	31

Securities underwriting and trading (b)	$	41		$	38		$	10		$	14		$	8		$	9		$	11
Foreign exchange		58			55			16			15			13			14			13
Financial derivatives		12			84			(29	)		3			9			29			7

Total trading revenue	$	111		$	177		$	(3	)	$	32		$	30		$	52		$	31

(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)


	*Year ended*						*Three months ended*
*In millions*	December 31 2007			December 31 2006			December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Assets
Interest-earning assets:
Securities available for sale
Residential mortgage-backed	$	19,163		$	14,881		$	20,592		$	19,541		$	19,280		$	17,198		$	16,082
Commercial mortgage-backed		4,025			2,305			4,921			4,177			3,646			3,338			2,640
Asset-backed		2,394			1,312			2,704			2,454			2,531			1,876			1,561
U.S. Treasury and government agencies		293			2,334			155			281			344			394			441
State and municipal		227			148			306			233			203			162			140
Other debt		47			89			52			25			33			79			89
Corporate stocks and other		392			246			458			381			383			347			277

Total securities available for sale		26,541			21,315			29,188			27,092			26,420			23,394			21,230
Loans, net of unearned income
Commercial		25,509			20,201			27,528			26,352			25,845			21,479			20,458
Commercial real estate		7,671			3,212			8,919			8,272			8,320			5,478			3,483
Lease financing		2,559			2,777			2,552			2,581			2,566			2,534			2,789
Consumer		17,718			16,125			18,150			17,954			17,886			16,865			16,272
Residential mortgage		8,564			6,888			9,605			9,325			8,527			7,173			5,606
Other		432			363			400			393			411			527			385

Total loans, net of unearned income		62,453			49,566			67,154			64,877			63,555			54,056			48,993
Loans held for sale		2,955			2,683			3,408			2,842			2,611			2,955			3,167
Federal funds sold and resale agreements		2,152			1,143			2,516			2,163			1,832			2,092			2,049
Other		3,909			2,985			4,926			4,342			3,606			2,735			3,198

Total interest-earning assets		98,010			77,692			107,192			101,316			98,024			85,232			78,637
Noninterest-earning assets:
Allowance for loan and lease losses		(690	)		(591	)		(749	)		(708	)		(692	)		(612	)		(557	)
Cash and due from banks		3,018			3,121			3,089			3,047			2,991			2,945			2,999
Other		23,080			14,790			25,418			23,977			22,997			19,857			17,969

Total assets	$	123,418		$	95,012		$	134,950		$	127,632		$	123,320		$	107,422		$	99,048

Supplemental Average Balance Sheet Information (Unaudited)

Trading Assets
Securities (a)	$	2,708		$	1,712		$	3,486		$	3,293		$	2,144		$	1,569		$	2,111
Resale agreements (b)		1,133			623			1,320			1,267			1,247			820			1,247
Financial derivatives (c)		1,378			1,148			1,785			1,389			1,221			1,115			1,209
Loans at fair value (c)		166			128			148			164			161			193			172

Total trading assets	$	5,385		$	3,611		$	6,739		$	6,113		$	4,773		$	3,697		$	4,739

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

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

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

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


	*Year ended*				*Three months ended*
*In millions*	December 31 2007		December 31 2006		December 31 2007		September 30 2007		June 30 2007		March 31 2007		December 31 2006
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	23,840	$	19,745	$	24,697	$	24,151	$	23,979	$	22,503	$	20,879
Demand		9,259		8,187		9,587		9,275		9,494		8,671		8,143
Savings		2,687		2,081		2,662		2,841		2,988		2,250		1,882
Retail certificates of deposit		16,690		13,999		16,921		16,563		17,426		15,691		14,837
Other time		2,119		1,364		1,948		2,748		2,297		1,623		1,355
Time deposits in foreign offices		4,623		3,613		6,488		4,616		4,220		3,129		3,068

Total interest-bearing deposits		59,218		48,989		62,303		60,194		60,404		53,867		50,164
Borrowed funds
Federal funds purchased		5,533		3,081		5,232		6,249		6,102		4,533		3,167
Repurchase agreements		2,450		2,205		2,875		2,546		2,507		1,858		2,264
Federal Home Loan Bank borrowings		2,168		623		6,339		2,097		106		64		44
Bank notes and senior debt		6,282		3,128		7,676		7,537		5,681		4,182		2,757
Subordinated debt		4,247		4,417		4,118		4,039		4,466		4,370		4,361
Other		2,344		1,589		2,353		2,741		2,459		1,813		2,117

Total borrowed funds		23,024		15,043		28,593		25,209		21,321		16,820		14,710

Total interest-bearing liabilities		82,242		64,032		90,896		85,403		81,725		70,687		64,874
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity:
Demand and other noninterest-bearing deposits		17,587		14,320		18,472		18,211		17,824		15,807		14,827
Allowance for unfunded loan commitments and letters of credit		125		106		127		125		121		126		117
Accrued expenses and other liabilities		8,195		6,672		9,035		8,117		7,655		7,961		7,882
Minority and noncontrolling interests in consolidated entities		1,335		600		1,658		1,414		1,367		893		542
Shareholders’ equity		13,934		9,282		14,762		14,362		14,628		11,948		10,806

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	123,418	$	95,012	$	134,950	$	127,632	$	123,320	$	107,422	$	99,048

Supplemental Average Balance Sheet Information (Unaudited) (Continued)

Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	59,218	$	48,989	$	62,303	$	60,194	$	60,404	$	53,867	$	50,164
Demand and other noninterest-bearing deposits		17,587		14,320		18,472		18,211		17,824		15,807		14,827

Total deposits	$	76,805	$	63,309	$	80,775	$	78,405	$	78,228	$	69,674	$	64,991

Transaction deposits	$	50,686	$	42,252	$	52,756	$	51,637	$	51,297	$	46,981	$	43,849

Common shareholders’ equity	$	13,927	$	9,275	$	14,755	$	14,355	$	14,621	$	11,941	$	10,799

Trading Liabilities
Securities sold short (a)	$	1,657	$	965	$	1,748	$	1,960	$	1,431	$	1,264	$	1,553
Repurchase agreements and other borrowings (b)		520		833		630		637		669		363		1,096
Financial derivatives (c)		1,384		1,103		1,772		1,400		1,230		1,126		1,156
Borrowings at fair value (c)		39		31		39		41		40		39		34

Total trading liabilities	$	3,600	$	2,932	$	4,189	$	4,038	$	3,370	$	2,792	$	3,839

(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)


*Period ended - in millions*	December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Commercial
Retail/wholesale	$	6,653		$	6,181		$	6,031		$	6,075		$	5,301
Manufacturing		4,563			4,472			4,439			4,490			4,189
Other service providers		3,014			3,292			3,212			3,113			2,186
Real estate related (a)		5,730			4,502			4,939			4,869			2,825
Financial services		1,226			1,861			1,545			1,560			1,324
Health care		1,260			1,075			1,097			1,028			707
Other		6,161			5,352			4,681			4,603			4,052

Total commercial		28,607			26,735			25,944			25,738			20,584

Commercial real estate
Real estate projects		6,114			5,807			5,767			5,756			2,716
Mortgage		2,792			2,507			2,564			2,597			816

Total commercial real estate		8,906			8,314			8,331			8,353			3,532

Equipment lease financing		3,500			3,539			3,587			3,527			3,556

Total commercial lending		41,013			38,588			37,862			37,618			27,672

Consumer
Home equity		14,447			14,366			14,268			14,263			13,749
Automobile		1,513			1,521			1,962			1,956			1,135
Other		2,366			2,270			1,804			1,769			1,631

Total consumer		18,326			18,157			18,034			17,988			16,515

Residential mortgage		9,557			9,605			9,440			7,960			6,337
Other		413			396			382			364			376
Unearned income		(990	)		(986	)		(1,004	)		(1,005	)		(795	)

Total, net of unearned income	$	68,319		$	65,760		$	64,714		$	62,925		$	50,105

(a)	Includes loans related to customers in the real estate, rental, leasing and construction industries.

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*	December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Beginning balance	$	717		$	703		$	690		$	560		$	566
Charge-offs
Commercial		(60	)		(38	)		(27	)		(31	)		(23	)
Commercial real estate		(12	)		(3	)		(1	)					(1	)
Equipment lease financing														(14	)
Consumer		(24	)		(17	)		(15	)		(17	)		(15	)
Residential mortgage														(1	)

Total charge-offs		(96	)		(58	)		(43	)		(48	)		(54	)
Recoveries
Commercial		10			5			8			7			3
Commercial real estate								1						1
Equipment lease financing														1
Consumer		3			4			2			5			4

Total recoveries		13			9			11			12			9
Net charge-offs
Commercial		(50	)		(33	)		(19	)		(24	)		(20	)
Commercial real estate		(12	)		(3	)
Equipment lease financing														(13	)
Consumer		(21	)		(13	)		(13	)		(12	)		(11	)
Residential mortgage														(1	)

Total net charge-offs		(83	)		(49	)		(32	)		(36	)		(45	)
Provision for credit losses		188			65			54			8			42
Acquired allowance (a)		15						(5	)		142
Net change in allowance for unfunded loan commitments and letters of credit		(7	)		(2	)		(4	)		16			(3	)

Ending balance	$	830		$	717		$	703		$	690		$	560


(a) Amount for the fourth quarter of 2007 related to Yardville and amounts for the first and second quarters of 2007 related to Mercantile.

Supplemental Information
Commercial lending net charge-offs (b)	$	(62	)	$	(36	)	$	(19	)	$	(24	)	$	(33	)
Consumer lending net charge-offs (c)		(21	)		(13	)		(13	)		(12	)		(12	)

Total net charge-offs	$	(83	)	$	(49	)	$	(32	)	$	(36	)	$	(45	)
Net charge-offs to average loans
Commercial lending		.63	%		.38	%		.21	%		.33	%		.49	%
Consumer lending		.30			.19			.20			.20			.22

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

(c)	Includes consumer and residential mortgage.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


*Three months ended - in millions*	December 31 2007		September 30 2007		June 30 2007		March 31 2007			December 31 2006
Beginning balance	$	127	$	125	$	121	$	120		$	117
Acquired allowance - Mercantile								17
Net change in allowance for unfunded loan commitments and letters of credit		7		2		4		(16	)		3

Ending balance	$	134	$	127	$	125	$	121		$	120


*In millions*	December 31 2007		September 30 2007		June 30 2007		March 31 2007			December 31 2006
Net Unfunded Commitments
Net unfunded commitments	$	53,365	$	52,590	$	50,678	$	49,263		$	44,835

Page 16

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	December 31 2007			September 30 2007			June 30 2007			March 31 2007			December 31 2006
Nonaccrual loans
Commercial	$	193		$	144		$	126		$	121		$	109
Commercial real estate		212			75			62			25			12
Consumer		17			15			14			14			13
Residential mortgage		10			10			14			16			12
Equipment lease financing		3			3			2			2			1

Total nonaccrual loans		435			247			218			178			147
Restructured loans		2

Total nonperforming loans		437			247			218			178			147
Foreclosed and other assets
Residential mortgage		16			16			12			11			10
Equipment lease financing		11			12			12			12			12
Other		14			11			4			3			2

Total foreclosed and other assets		41			39			28			26			24

Total nonperforming assets (a) (b)	$	478		$	286		$	246		$	204		$	171

Nonperforming loans to total loans		.64	%		.38	%		.34	%		.28	%		.29	%
Nonperforming assets to total loans and foreclosed assets		.70			.43			.38			.32			.34
Nonperforming assets to total assets		.34			.22			.20			.17			.17
Net charge-offs to average loans (For the three months ended)		.49			.30			.20			.27			.36
Allowance for loan and lease losses to loans		1.21			1.09			1.09			1.10			1.12
Allowance for loan and lease losses to nonperforming loans		190			290			322			388			381

(a) Excludes equity management assets carried at estimated fair value (amounts include troubled debt restructured assets of $4 million at September 30, 2007, June 30, 2007, March 31, 2007 and December 31, 2006):	$	4		$	12		$	13		$	15		$	11
(b) Excludes loans held for sale carried at lower of cost or market value, related to the Mercantile and Yardville acquisitions:	$	25		$	7		$	17		$	18

Change in Nonperforming Assets


*In millions*	Year ended
January 1, 2007	$	171
Transferred in		649
Acquired - Mercantile and Yardville		37
Asset sales		(10	)
Returned to performing		(23	)
Charge-offs and valuation adjustments		(167	)
Principal activity including payoffs		(179	)

December 31, 2007	$	478

Page 17

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business


*Period ended - in millions*	December 31 2007		September 30 2007		June 30 2007		March 31 2007		December 31 2006
Retail Banking
Nonperforming loans	$	215	$	127	$	130	$	114	$	96
Foreclosed and other assets		10		10		10		9		10

Total	$	225	$	137	$	140	$	123	$	106

Corporate & Institutional Banking
Nonperforming loans	$	222	$	119	$	87	$	64	$	50
Foreclosed and other assets		21		22		13		13		13

Total	$	243	$	141	$	100	$	77	$	63

Other (a)
Nonperforming loans			$	1	$	1			$	1
Foreclosed and other assets	$	10		7		5	$	4		1

Total	$	10	$	8	$	6	$	4	$	2

Consolidated Totals
Nonperforming loans	$	437	$	247	$	218	$	178	$	147
Foreclosed and other assets		41		39		28		26		24

Total (b)	$	478	$	286	$	246	$	204	$	171

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

Largest Individual Nonperforming Assets at December 31, 2007 - in millions (b)


Ranking	Outstandings			Industry
1	$	20		Specialty Trade Contractors
2		14		Credit Intermediation And Related Activities
3		13		Heavy And Civil Engineering Construction
4		13		Heavy And Civil Engineering Construction
5		13		Construction Of Buildings
6		12		Construction Of Buildings
7		12		Specialty Trade Contractors
8		12		Construction Of Buildings
9		11		Air Transportation
10		10		Heavy And Civil Engineering Construction

Total	$	130

As a percent of total nonperforming assets
		27	%

(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 each 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.

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.

Page 19

Glossary of Terms (continued)

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 income from loans and deposits—A management accounting assessment, using funds transfer pricing methodology, of the net interest contribution from loans and deposits.

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 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

Glossary of Terms (continued)

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

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 markets. Our customers are serviced through over 1,100 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. (“Hilliard Lyons”). On November 15, 2007, PNC entered into a definitive agreement to sell Hilliard Lyons to Houchens Industries, Inc. The transaction is expected to result in an after-tax gain of approximately $50 million and be completed in the first half of 2008 subject to regulatory and certain other required approvals.

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. 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 December 31, 2007, PNC’s ownership interest in BlackRock was approximately 33.5%.

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.

On December 7, 2007, PFPC acquired Lawrenceville, New Jersey-based Albridge Solutions Inc., a provider of portfolio accounting and enterprise wealth management services. Also on December 7, 2007, PFPC acquired Coates Analytics, LP, a provider of Web-based analytics tools that help asset managers identify wholesaler territories and financial advisor targets, promote products in the marketplace and strengthen competitive intelligence.

PFPC serviced $2.5 trillion in total assets and 72 million shareholder accounts as of December 31, 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 year ended December 31, 2007*	PNC					PNC
*In millions*	As Reported		Adjustments (b)			As Adjusted
Net Interest Income
Net interest income	$	2,915				$	2,915
Provision for credit losses		315	$	(45	)		270

Net interest income less provision for credit losses		2,600		45			2,645

Noninterest Income
Asset management		784		4			788
Other		3,006		127			3,133

Total noninterest income		3,790		131			3,921

Noninterest Expense
Compensation and benefits		2,140		(37	)		2,103
Other		2,156		(147	)		2,009

Total noninterest expense		4,296		(184	)		4,112

Income before income taxes		2,094		360			2,454
Income taxes		627		125			752

Net income	$	1,467	$	235		$	1,702

(a)

These adjusted condensed consolidated income statement reconciliations are provided for informational purposes only and reflect historical condensed 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, in each case, as appropriate, adjusted for the tax impact. These reconciliations are 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. 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.

Our payment services business issues and acquires credit and debit card transactions through Visa U.S.A. Inc. card association or its affiliates (“Visa”). In October 2007, Visa completed a restructuring and issued shares of Visa Inc. common stock to its financial institution members in contemplation of its initial public offering (“IPO”) currently anticipated in the first quarter of 2008 (the “Visa Reorganization”). As part of the Visa Reorganization, we received our proportionate share of a class of Visa Inc. common stock allocated to the U.S. members. Visa expects that a portion of these shares will be redeemed for cash out of the proceeds of the IPO. The U.S. members are obligated to indemnify Visa for judgments and settlements related to specified litigation. Visa will set aside a portion of the proceeds from the IPO in an escrow account for the benefit of the U.S. member financial institutions to fund the expenses of the litigation as well as the members’ proportionate share of any judgments or settlements that may arise out of the litigation. In accordance with GAAP, we recorded a liability and operating expense totaling $82 million before taxes in the fourth quarter of 2007 representing our estimate of the fair value of our indemnification obligation for potential losses arising from this litigation. Our estimate is based on publicly available information and other information made available to all of the affected Visa members and does not reflect any direct knowledge of the relative strengths and weaknesses of the litigation still pending or the status of any on-going settlement discussions. We believe that the IPO will be completed and cash will be available through the escrow to satisfy litigation settlements. In addition, based on estimates provided by Visa regarding its planned IPO, we believe that our ownership interest in Visa has a value significantly in excess of our indemnification liability. Our Visa shares will not generally be transferable until they can be converted into shares of the publicly traded class of stock, which cannot happen until the later of three years after the IPO or settlement of all of the specified litigation.

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. Our 2007 Form 10-Qs provide additional information regarding integration costs. 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: $151 million of acquisition integration costs, $127 million net loss related to our BlackRock LTIP shares obligation, and $82 million of Visa indemnification costs.

Page A1

Appendix to Financial Supplement (Continued)

The PNC Financial Services Group, Inc.

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


						BlackRock
*For the year ended December 31, 2006*	PNC					Deconsolidation and			BlackRock		PNC
*In millions*	As Reported		Adjustments (b)			Other Adjustments			Equity Method (c)		As Adjusted
Net Interest Income
Net interest income	$	2,245				$	(10	)			$	2,235
Provision for credit losses		124										124

Net interest income less provision for credit losses		2,121					(10	)				2,111

Noninterest Income
Asset management		1,420	$	10			(1,036	)	$	144		538
Other		4,907		(1,822	)		(51	)				3,034

Total noninterest income		6,327		(1,812	)		(1,087	)		144		3,572

Noninterest Expense
Compensation and benefits		2,432		(44	)		(523	)				1,865
Other		2,011		(47	)		(242	)				1,722

Total 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

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

(b)

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, $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.

(c)	BlackRock investment revenue represents PNC’s ownership interest in earnings of BlackRock excluding pretax BlackRock/MLIM transaction integration costs totaling $101 million. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

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, 2007*	PNC					PNC
*In millions*	As Reported		Adjustments (b)			As Adjusted
Net Interest Income
Net interest income	$	793				$	793
Provision for credit losses		188	$	(45	)		143

Net interest income less provision for credit losses		605		45			650

Noninterest Income
Asset management		225		(1	)		224
Other		609		128			737

Total noninterest income		834		127			961

Noninterest Expense
Compensation and benefits		553		(10	)		543
Other		660		(107	)		553

Total noninterest expense		1,213		(117	)		1,096

Income before income taxes		226		289			515
Income taxes		48		102			150

Net income	$	178	$	187		$	365


*For the three months ended September 30, 2007*	PNC					PNC
*In millions*	As Reported		Adjustments (c)			As Adjusted
Net Interest Income
Net interest income	$	761				$	761
Provision for credit losses		65					65

Net interest income less provision for credit losses		696					696

Noninterest Income
Asset management		204	$	2			206
Other		786		50			836

Total noninterest income		990		52			1,042

Noninterest Expense
Compensation and benefits		553		(16	)		537
Other		546		(25	)		521

Total noninterest expense		1,099		(41	)		1,058

Income before income taxes		587		93			680
Income taxes		180		31			211

Net income	$	407	$	62		$	469

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

(b)	Includes the impact of the following items on a pretax basis: $128 million net loss related to our BlackRock LTIP shares obligation, $82 million of Visa indemnification costs, and $79 million of acquisition integration costs.

(c)	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 integration costs.

Page A3

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*	PNC					PNC
*In millions*	As Reported		Adjustments (b)			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*	PNC					PNC
*In millions*	As Reported		Adjustments (c)			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 acquisition integration costs and $1 million net loss related to our BlackRock LTIP shares obligation.

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

Page A4

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*	PNC				PNC
*In millions*	As Reported		Adjustments (b)		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

(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 our BlackRock LTIP shares obligation and $10 million of BlackRock/MLIM transaction integration costs.

Page A5

The PNC Financial Services Group, Inc.

Fourth

Quarter 2007

Earnings Conference Call

January 17, 2008

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 in our third 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 at www.pnc.com/secfilings).

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.

not

assume

any

duty

and

not

undertake

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

the

deconsolidation

BlackRock

adjusting

had

recorded

our

BlackRock

investment

the

equity

method prior to its deconsolidation; (2) adjusting 2006 to exclude the impact of the third quarter 2006 gain on the BlackRock/MLIM transaction and

losses

the

repositioning

PNC’s

securities

and

mortgage

loan

portfolios;

(3)

adjusting

fourth

quarter

2006

and

the

2007

periods

exclude

the

net

mark-to-market

adjustments

PNC’s

remaining

BlackRock

LTIP

obligation

and,

applicable,

the

gain

PNC

recognized

first

quarter

2007

connection

with

the

company’s

transfer

BlackRock

satisfy

portion

its

BlackRock

LTIP

obligation;

(4)

adjusting

all

2007 and 2006 periods to exclude, as applicable, integration costs related to acquisitions and to the BlackRock/MLIM transaction; (5) adjusting

2007

periods,

applicable,

for

the

fourth

quarter

2007

Visa

litigation

charge;

and

(6)

adjusting,

appropriate,

for

the

tax

impact

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

the

impact

deconsolidation

various

components

our

income

statement

and

balance

sheet.

believe

that

information

adjusted

for

the

impact

the

specified

items

may

useful

due

the

extent

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

not

intended

imply

that

there

could

not

have

been

other

similar

types

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

Strong organic client growth

Expenses well-contained

Solid business segment results in an uncertain time

Asset quality migrating, as expected, and at a manageable pace

Well-positioned balance sheet

Successful Mercantile integration

Unprecedented market volatility impacts 4Q07 results

2008 -

Focus on maximizing the franchise

2007 Performance Leaves PNC

Well-Positioned for the Future

Execution Results in a Good Year Despite a Difficult Environment

Key Take-Aways

Executing on Our Strategy Delivers

Differentiated Results

Delivered solid results with diverse revenue streams in a

period of extreme market volatility

Continued to create positive operating leverage on a full

year adjusted basis²

Maintained a moderate risk profile and balance sheet

flexibility

(1)

Adjusted fourth quarter 2007 and full year 2007 earnings are reconciled to GAAP earnings in the Appendix.

(2)

GAAP basis operating leverage for the full year 2007 period was negative primarily due to the impact of the 2006 gain from the

BlackRock/MLIM transaction and is reconciled in the Appendix.

2007

4Q07

$5.05

$1.07

Adjusted diluted EPS¹

$4.35

$0.52

Reported diluted EPS

+10%

+34%

+25%

+18%

Growing High Quality, Diverse

Revenue Streams

Total Revenue Growth

(1)

Adjusted amounts are reconciled to GAAP amounts in the Appendix.

(2)

Unadjusted 2006 mix: noninterest income 74%, deposit net interest income 16%, loan net interest income 10%.

Unadjusted 2007 mix: noninterest income 56%, deposit net interest income 27%, loan net interest income 17%.

(3)

Unadjusted % change: total revenue (22%), noninterest income (40%), deposit net interest income 34%, loan net interest income 24%.

2007 vs 2006

1,3

2006 Mix

Adjusted Revenue Mix for the Year Ended

1,2

2007 Mix

Noninterest

Income

62%

Deposit NII

23%

Loan NII

15%

Noninterest

Income

57%

Deposit NII

27%

Loan NII

16%

Revenue

+9%

Creating Positive Operating Leverage

Growing Revenues Faster Than Expenses

Adjusted Revenue

(as reported

$5.5 billion, $6.3 billion, $8.6 billion, $6.7 billion for 2004,

2005, 2006, 2007, respectively)

Adjusted Noninterest

Expense

(as reported $3.7 billion, $4.3 billion, $4.4 billion, $4.3 billion for 2004, 2005, 2006, 2007, respectively)

Adjusted Net Income

(as reported $1.2 billion, $1.3 billion, $2.6 billion, $1.5 billion for 2004, 2005, 2006, 2007, respectively)

$1.2

$1.3

$1.5

(1)

As reported: revenue 24%, expense 9%, operating leverage 15%, net income 47%.

(2)

As reported: revenue (22%), expense (3%), operating leverage (19%), net income (43%).

(3)

Adjusted amounts are reconciled to GAAP amounts in the Appendix.

2004

2005

2006

Expense

+7%

Net Income

+12%

Compound Annual Growth

(2004-2006, as adjusted)

1,3

Revenue

+18%

Expense

+15%

Net Income

+12%

2006-2007

As adjusted

2,3

Operating

Leverage

+2%

Operating

Leverage

+3%

$1.7

2007

Maintaining a Moderate Risk Profile

Credit decisions driven by

risk-adjusted returns

Minimal exposure to

subprime mortgages, high-

yield bridge and leveraged

finance loans

Relatively low commercial

real estate exposure

Highly granular portfolio

Credit quality migrating at

a manageable pace

Asset Quality

Active balance sheet

management style

Duration of equity of 2.1

years

Very liquid balance sheet

Low loans to deposits ratio

with a low cost deposit

base

Relatively large securities

book

High fee income to total

revenue

Interest Rate Risk

Shift to Tier 1 capital

benchmark

Earnings growth creates

capital flexibility

Dividends

Share repurchase, where

appropriate

Access to capital markets

Capital Management

Cautionary Statement Regarding

Forward-Looking Information

Appendix

make

statements

this

presentation,

and

may

from

time

make

other

statements,

regarding

our

outlook

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,”

“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

assumptions

and

uncertainties,

actual

results

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 third 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/secfilings.

•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

interest

rates

and

valuations

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

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

the

regulatory

examination

process,

our

failure

satisfy

the

requirements

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

confidential

customer

information;

and

(e)

changes

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

the

impact

the

economy

and

capital

and

other

financial

markets

generally

our

customers,

suppliers

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 filings with the SEC, including in the Risk Factors sections of

BlackRock’s reports. BlackRock’s SEC filings are accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com.

grow

our

business

from

time

acquiring

other

financial

services

companies,

including

our

pending

Sterling

Financial

Corporation

(“Sterling”)

acquisition.

Acquisitions

general

present

with

risks

addition

those

presented

the

nature

the

business

acquired.

particular, acquisitions may be substantially more expensive to complete (including as a result of costs incurred in connection with the integration

the

acquired

company)

and

the

anticipated

benefits

(including

anticipated

cost

savings

and

strategic

gains)

may

significantly

harder

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 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 (“Sterling”) will be filing a proxy

statement/prospectus

and

other

relevant

documents

concerning

the

merger

with

the

United

States

Securities

and

Exchange

Commission

(the

“SEC”).

URGE

INVESTORS

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 will be available free of

charge from Sterling by contacting Shareholder Relations at (877) 248-6420.

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

participants in the solicitation of proxies in favor of the merger from the shareholders of Sterling. Information

about the directors and executive officers of Sterling 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

such

participants

will

included

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

Non-GAAP to GAAP

Reconcilement

Earnings Summary

Appendix

THREE MONTHS ENDED

In millions, except per share data

Adjustments,

Net

Diluted

Adjustments,

Net

Diluted

Adjustments,

Net

Diluted

Pretax

Income

EPS

Pretax

Income

EPS

Pretax

Income

EPS

Net income, as reported

$178

$0.52

$407

$1.19

$376

$1.27

Adjustments:

BlackRock LTIP (a)

$128

.24

$50

.09

$12

.02

Visa indemnification (b)

.16

Integration costs (c)

.15

.09

.03

Net income, as adjusted

$365

$1.07

$469

$1.37

$391

$1.32

YEAR ENDED

Adjustments,

Net

Diluted

Adjustments,

Net

Diluted

In millions, except per share data

Pretax

Income

EPS

Pretax

Income

EPS

Net income, as reported

$1,467

$4.35

$2,595

$8.73

Adjustments:

BlackRock LTIP (a)

$127

.24

$12

.02

Visa indemnification (b)

.16

Integration costs (c)

151

.30

101

.16

Gain on BlackRock/MLIM transaction (d)

(2,078)

(1,293)

(4.36)

Securities portfolio rebalancing loss (d)

196

127

.43

Mortgage loan portfolio repositioning loss (d)

.10

Net income, as adjusted

$1,702

$5.05

$1,514

$5.08

(d) Included in noninterest income on a pretax basis.

December 31, 2006

(b)

Our

payment

services

business

issues

and

acquires

credit

and

debit

card

transactions

through

Visa

U.S.A.

Inc.

card

association

its

affiliates

(“Visa”).

October

2007,

Visa

completed

restructuring

and

issued

Visa

Inc.

common

stock

its

financial

institution

members

contemplation

its

initial

public

offering

(“IPO”)

currently

anticipated

the

first

quarter

2008

(the

“Visa

Reorganization”).

part

the

Visa

Reorganization,

received

our

proportionate

class

Visa

Inc.

common

stock

allocated

the

U.S.

members.

Visa

expects

that

portion

these

will

redeemed

for

cash

out

the

proceeds

the

IPO.

The

U.S.

members

are

obligated

indemnify

Visa

for

judgments

and

settlements

specified

litigation.

Visa

will

set

aside

portion

the

proceeds

from

the

IPO

escrow

account

for the benefit of the U.S. member financial institutions to fund the expenses of the litigation as well as the members' proportionate share of any judgments or settlements that may arise out of the litigation.

December 31, 2007

September 30, 2007

December 31, 2006

December 31, 2007

(a)

Includes

the

impact

the

gain

recognized

connection

with

PNC's

transfer

BlackRock

satisfy

portion

our

BlackRock

LTIP

obligation

and

the

net

mark-to-market

adjustment

our

remaining BlackRock LTIP shares obligation, as applicable.

accordance

with

GAAP,

recorded

liability

and

operating

expense

totaling

$82

million

before

taxes

the

fourth

quarter

2007

representing

our

estimate

the

fair

value

our

indemnification

obligation

for

potential

losses

arising

from

this

litigation.

Our

estimate

based

publicly

available

information

and

other

information

made

available

all

the

affected

Visa

members

and

does

not

reflect

any

direct

knowledge

the

relative

strengths

and

weaknesses

the

litigation

still

pending

the

status

any

on-going

settlement

discussions.

believe

that

the

IPO

will

completed

and

cash

will

available

through

the

escrow

satisfy

litigation

settlements.

addition,

based

estimates

provided

Visa

regarding

its

planned

IPO,

believe

that

our

ownership

interest

Visa

has

value

significantly

excess

our

indemnification

liability.

Our

Visa

will

not

generally

transferable

until

they

can

converted

into

the

publicly

traded

class

stock,

which

cannot

happen

until

the

later

three

years

after

the

IPO

settlement

of all of the specified litigation.

(c)

addition

integration

costs

recent

pending

PNC

acquisitions

reflected

the

2007

periods,

the

first

three

quarters

2007

and

all

2006

periods

include

BlackRock/MLIM

integration

costs.

BlackRock/MLIM

integration

costs

recognized

PNC

the

first

three

quarters

2007

and

the

fourth

quarter

2006

were

included

noninterest

income

negative

component

the

"Asset

management"

line

item, which includes the impact of our equity earnings from our investment in BlackRock. For 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 year ended

Appendix

Year ended

In millions

As Reported

Adjustments

As Adjusted (a)

As Reported

Adjustments

As Adjusted (b)

Net interest income

$2,915

$2,245

($10)

$2,235

Net interest income:

% Change As

Reported

% Change As

Adjusted

Loans

1,110

895

(10)

885

24%

25%

Deposits

1,805

1,350

34%

Noninterest

Income

3,790

$131

3,921

6,327

(2,755)

3,572

(40%)

10%

Total revenue

6,705

131

6,836

8,572

(2,765)

5,807

(22%)

18%

Loan net interest income as a % of total revenue

16.6%

16.2%

10.4%

15.2%

Deposit net interest income as a % of total revenue

26.9%

26.4%

15.7%

23.2%

Noninterest

income as a % of total revenue

56.5%

57.4%

73.8%

61.5%

Provision for credit losses

315

(45)

270

124

Noninterest

income

3,790

131

3,921

6,327

(2,755)

3,572

Noninterest

expense

4,296

(184)

4,112

4,443

(856)

3,587

(3%)

15%

Income before minority interest

and income taxes

2,094

360

2,454

4,005

(1,909)

2,096

Minority interest in income

of BlackRock

(47)

Income taxes

627

125

752

1,363

(781)

582

Net income

$1,467

$235

$1,702

$2,595

($1,081)

$1,514

(43%)

12%

Operating Leverage -

Year Ended

As Reported

As Adjusted

Total revenue

(22%)

18%

Noninterest expense

(3%)

15%

Operating leverage

(19%)

(a)

Amounts

adjusted

exclude

the

impact

the

following

pretax

items:

(1)

the

gain

$83

million

recognized

connection

with

PNC's

transfer

BlackRock

satisfy

portion

our

BlackRock

LTIP

obligation,

(2)

the

net

mark-to-market

adjustment

totaling

$210

million

our

remaining

BlackRock

LTIP

obligation,

(3)

acquisition

integration

costs

totaling

$151 million, and (4) Visa indemnification charge of $82 million. The net tax impact of these items is reflected in the adjustment to income taxes.

(b)

Amounts

adjusted

exclude

the

impact

the

following

pretax

items:

$2,078

million

gain

BlackRock/MLIM

transaction,

$196

million

securities

portfolio

rebalancing

loss,

$101

million

BlackRock/MLIM

transaction

integration

costs,

$48

million

mortgage

loan

portfolio

repositioning

loss,

and

$12

million

net

loss

our

BlackRock

LTIP

obligation.

The

net

tax

impact of these items is reflected in the adjustment to income taxes.

2006 to 2007 Change

December 31, 2007

December 31, 2006

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

For the three months ended

Appendix

For the three months ended December 31, 2007

PNC

In millions

As Reported

Adjustments (a)

As Adjusted

Reported

Adjusted

Net interest income

$793

Loan net interest income

304

Deposit net interest income

489

Provision for credit losses

188

($45)

143

Net interest income less provision for credit losses

605

(45)

650

Asset management

225

(1)

224

Other

609

128

737

Total noninterest

income

834

127

961

(16%)

(8%)

Compensation and benefits

553

(10)

543

Other

660

(107)

553

Total noninterest

expense

1,213

(117)

1,096

10%

Income before income taxes

226

289

515

Income taxes

102

150

Net income

$178

$187

$365

(56%)

(22%)

For the three months ended September 30, 2007

PNC

In millions

As Reported

Adjustments (b)

As Adjusted

Net interest income

$761

Loan net interest income

294

Deposit net interest income

467

Provision for credit losses

Net interest income less provision for credit losses

696

Asset management

204

206

Other

786

836

Total noninterest

income

990

1,042

Compensation and benefits

553

(16)

537

Other

546

(25)

521

Total noninterest expense

1,099

(41)

1,058

Income before income taxes

587

680

Income taxes

180

211

Net income

$407

$62

$469

% Change vs. Sept 30, 2007

(a)

Amounts

adjusted

exclude

the

impact

the

following

items

pretax

basis:

$128

million

net

loss

our

BlackRock/LTIP

obligation,

$82

million

Visa indemnification charge, and $79 million of acquisition integration costs. The net tax impact of these items is reflected in the adjustment to income taxes.

(b)

Amounts

adjusted

exclude

the

impact

the

following

items

pretax

basis:

$50

million

net

loss

our

BlackRock/LTIP

obligation

and

$43

million

of acquisition integration costs. 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 2007

Appendix

For the year ended December 31, 2007

PNC

In millions

As Reported

Adjustments (a)

As Adjusted

Net interest income

$2,915

Provision for credit losses

315

$(45)

270

Noninterest income

3,790

131

3,921

Noninterest expense

4,296

(184)

4,112

Income before income taxes

2,094

360

2,454

Income taxes

627

125

752

Net income

$1,467

$235

$1,702

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

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

(65)

Income taxes

1,363

(658)

(130)

582

Net income

$2,595

$(1,081)

$(137)

$137

$1,514

(a)

Includes

the

impact

the

following

pretax

items:

$2,078

million

gain

BlackRock/MLIM

transaction,

$196

million

securities

portfolio

rebalancing

loss,

$101

million

BlackRock/MLIM

transaction

integration

costs,

$48

million

mortgage

loan

portfolio

repositioning

loss,

and

$12

million

net

loss

our

BlackRock

LTIP

obligation. The net tax impact of these items is reflected in the adjustment to income taxes.

(a)

Amounts

adjusted

exclude

the

impact

the

following

pretax

items:

(1)

the

gain

$83

million

recognized

connection

with

PNC's

transfer

BlackRock

satisfy

portion

our

BlackRock

LTIP

obligation,

(2)

the

net

mark-to-market

adjustment

totaling

$210

million

our

remaining

BlackRock

LTIP

obligation,

(3)

acquisition

integration

costs

totaling

$151

million,

and

(4)

Visa

indemnification

charge

$82

million.

The

net

tax

impact

these

items

reflected

the

adjustment

to income taxes.

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

2004 to 2007 (continued)

Appendix

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

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)

Income taxes

604

(150)

465

Net income

$1,325

$(152)

$152

$1,325

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

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

2004 to 2007 (continued)

Appendix

% Change

In millions

2004

2005

2006

2007

2004-2006 CAGR

2006-2007

Adjusted net interest income

$1,955

$2,142

$2,235

$2,915

Adjusted noninterest income

2,928

3,122

3,572

3,921

Adjusted total revenue

4,883

5,264

5,807

6,836

18%

Adjusted noninterest expense

3,148

3,453

3,587

4,112

15%

Adjusted net income

1,197

1,325

1,514

1,702

12%

Adjusted operating leverage

% Change

In millions

2004

2005

2006

2007

2004-2006 CAGR

2006-2007

Net interest income, as reported

$1,969

$2,154

$2,245

$2,915

Noninterest income, as reported

3,572

4,173

6,327

3,790

Total revenue, as reported

5,541

6,327

8,572

6,705

24%

(22%)

Noninterest expense, as reported

3,712

4,306

4,443

4,296

(3%)

Net income, as reported

1,197

1,325

2,595

1,467

47%

(43%)

Operating leverage, as reported

15%

(19%)

For the year ended December 31, as adjusted

For the year ended December 31, as reported