Financial Supplement (unaudited) for Second Quarter 2009

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2009

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2009

(UNAUDITED)


		Page
Consolidated Results:
Income Statement		1
Balance Sheet		2
Capital Ratios		2
Average Balance Sheet		3 - 4
Net Interest Margin		5
Selected Income Statement Information		6
Loans and Loans Held for Sale		7
Accretion		8
Accruing Loans Past Due		9
Allowances for Credit Losses and Net Unfunded Commitments		10
Nonperforming Assets		11-12
Business Segment Results:
Business Segment Descriptions		13
Summary of Earnings and Revenue		14
Period-end Employees		14
Retail Banking		15-16
Corporate & Institutional Banking		17
Asset Management Group		18
Residential Mortgage Banking		19
Global Investment Servicing		20
Distressed Assets Portfolio		21
Glossary of Terms		22-25

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 23, 2009. We have reclassified certain prior period amounts 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.

National City Corporation Acquisition

On December 31, 2008, we acquired National City Corporation (“National City”). The accompanying period-end balance sheet includes National City’s assets and liabilities beginning December 31, 2008. Our average balance sheet and income statement includes National City’s balances beginning January 1, 2009. Other financial information reported follows this same convention except that period-end disclosures in the business segment portions of this financial supplement do not include National City at December 31, 2008 unless otherwise noted.

During the first six months of 2009, more information, such as appraisals, contracts, legal documentation, and additional borrower data, was obtained which impacted the estimated fair value of assets acquired and liabilities assumed as of December 31, 2008. This information resulted in adjustments to the purchase price allocation as presented in the table below.

National City Acquisition - Summary Purchase Price Allocation


*Three months ended - in billions*	June 30, 2009			March 31, 2009
Excess of fair value of adjusted net assets acquired over purchase price - beginning of period	$	0.0		$	(1.3	)
Additional fair value marks on acquired loans - December 31, 2008 (a)		0.6			1.2
Other adjustments, net		(0.3	)		0.1

Excess of purchase price over fair value of adjusted net assets acquired - end of period	$	0.3		$	0.0

(a)	Subsequent to December 31, 2008 additional information was obtained on the credit quality of loans as of the acquisition date. This new information resulted in additional fair value writedowns on impaired loans.

Further modifications to purchase price allocation may occur, resulting in the recognition of goodwill and liabilities in future periods.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Consolidated Income Statement (Unaudited)


	*Three months ended*															*Six months ended*
*In millions, except per share data*	June 30 2009 (a)			March 31 2009 (a)			December 31 2008			September 30 2008			June 30 2008			June 30 2009 (a)			June 30 2008
Interest Income
Loans	$	2,203		$	2,465		$	993		$	1,024		$	1,050		$	4,668		$	2,121
Investment securities		672			689			476			447			419			1,361			823
Other		126			106			74			103			108			232			252

Total interest income		3,001			3,260			1,543			1,574			1,577			6,261			3,196

Interest Expense
Deposits		474			546			333			340			362			1,020			812
Borrowed funds		345			409			218			234			238			754			553

Total interest expense		819			955			551			574			600			1,774			1,365

Net interest income		2,182			2,305			992			1,000			977			4,487			1,831

Noninterest Income
Fund servicing		193			199			209			233			234			392			462
Asset management		208			189			97			180			197			397			409
Consumer services		329			316			151			153			149			645			319
Corporate services		264			245			157			198			185			509			349
Residential mortgage		245			431												676
Service charges on deposits		242			224			101			97			92			466			174
Net gains on sales of securities		182			56			2			55			8			238			49
Net other-than-temporary impairments		(155	)		(149	)		(174	)		(129	)		(9	)		(304	)		(9	)
Other		297			55			141			(133	)		206			352			276

Total noninterest income		1,805			1,566			684			654			1,062			3,371			2,029

Total revenue		3,987			3,871			1,676			1,654			2,039			7,858			3,860
Provision for credit losses		1,087			880			990			190			186			1,967			337
Noninterest Expense
Personnel		1,174			1,088			494			569			547			2,262			1,091
Occupancy		190			188			94			89			90			378			185
Equipment		194			198			92			91			94			392			176
Marketing		59			57			31			38			34			116			56
Other		1,041			797			418			344			338			1,838			630

Total noninterest expense		2,658			2,328			1,129			1,131			1,103			4,986			2,138

Income (loss) before income taxes and noncontrolling interests		242			663			(443	)		333			750			905			1,385
Income taxes (benefit)		35			133			(197	)		74			233			168			484

Net income (loss)		207			530			(246	)		259			517			737			901

Less: Net income attributable to noncontrolling interests		9			4			2			11			12			13			19
Preferred stock dividends		119			51			21									170
Preferred stock discount accretion		14			15												29

Net income (loss) attributable to common shareholders	$	65		$	460		$	(269	)	$	248		$	505		$	525		$	882

Earnings (Loss) Per Common Share
Basic	$	.14		$	1.04		$	(.77	)	$	.72		$	1.46		$	1.17		$	2.57
Diluted	$	.14		$	1.03		$	(.76	)	$	.70		$	1.45		$	1.16		$	2.54

Average Common Shares Outstanding
Basic		451			443			348			345			344			447			342
Diluted		453			444			349			347			346			448			344

Efficiency		67	%		60	%		67	%		68	%		54	%		63	%		55	%

Noninterest income to total revenue		45	%		40	%		41	%		40	%		52	%		43	%		53	%

Effective income tax rate (b)		14.5	%		20.1	%		44.5	%		22.2	%		31.1	%		18.6	%		34.9	%

(a)	Includes the impact of National City, which we acquired on December 31, 2008.

(b)	The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax. The higher effective tax rate for the fourth quarter of 2008 resulted from the net loss in that period.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2
Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	June 30 2009 (a)			March 31 2009 (a)			December 31 2008 (a)			September 30 2008			June 30 2008
Assets
Cash and due from banks	$	3,797		$	3,576		$	4,471		$	3,060		$	3,525
Federal funds sold and resale agreements (b)		1,814			1,554			1,856			1,826			3,015
Trading securities		1,925			1,087			1,725			2,273			2,163
Interest-earning deposits with banks		10,190			14,783			14,859			329			311
Other short-term investments		894			807			1,025			264			231
Loans held for sale (b)		4,662			4,045			4,366			1,922			2,288
Investment securities		49,969			46,253			43,473			31,031			31,032
Loans (b)		165,009			171,373			175,489			75,184			73,040
Allowance for loan and lease losses		(4,569	)		(4,299	)		(3,917	)		(1,053	)		(988	)

Net loans		160,440			167,074			171,572			74,131			72,052
Goodwill		9,206			8,855			8,868			8,829			8,824
Other intangible assets		3,684			3,323			2,820			1,092			1,104
Equity investments		8,168			8,215			8,554			6,735			6,376
Other (b)		25,005			26,850			27,492			14,118			11,850

Total assets	$	279,754		$	286,422		$	291,081		$	145,610		$	142,771

Liabilities
Deposits
Noninterest-bearing	$	41,806		$	40,610		$	37,148		$	19,255		$	19,869
Interest-bearing		148,633			154,025			155,717			65,729			64,820

Total deposits		190,439			194,635			192,865			84,984			84,689
Borrowed funds
Federal funds purchased and repurchase agreements		3,921			4,789			5,153			7,448			9,230
Federal Home Loan Bank borrowings		14,777			16,985			18,126			10,466			9,572
Bank notes and senior debt		13,292			13,828			13,664			5,792			5,804
Subordinated debt		10,383			10,694			11,208			5,192			5,169
Other		2,308			2,163			4,089			3,241			2,697

Total borrowed funds		44,681			48,459			52,240			32,139			32,472
Allowance for unfunded loan commitments and letters of credit		319			328			344			127			124
Accrued expenses		3,651			3,340			3,949			2,650			3,388
Other		11,197			11,004			14,035			9,422			4,981

Total liabilities		250,287			257,766			263,433			129,322			125,654


Equity
Preferred stock (c)
Common stock - $5 par value Authorized 800 shares, issued 468, 452, 452, 357, and 357 shares		2,342			2,261			2,261			1,787			1,787
Capital surplus - preferred stock		7,947			7,933			7,918			493			492
Capital surplus - common stock and other		8,783			8,284			8,328			2,884			2,895
Retained earnings (d)		11,758			11,738			11,461			11,959			11,940
Accumulated other comprehensive loss (d)		(3,101	)		(3,289	)		(3,949	)		(2,230	)		(1,227	)
Common stock held in treasury at cost: 7, 7, 9, 9, and 11 shares		(435	)		(450	)		(597	)		(675	)		(779	)

Total shareholders’ equity		27,294			26,477			25,422			14,218			15,108
Noncontrolling interests		2,173			2,179			2,226			2,070			2,009

Total equity		29,467			28,656			27,648			16,288			17,117

Total liabilities and equity	$	279,754		$	286,422		$	291,081		$	145,610		$	142,771

Capital Ratios (e)
Tier 1 risk-based		10.5	%		10.0	%		9.7	%		8.2	%		8.2	%
Tier 1 common		5.3			4.9			4.8			5.7			5.7
Total risk-based		14.1			13.6			13.2			11.9			11.9
Leverage		9.1			8.9			17.5			7.2			7.3

(a)	Includes the impact of National City, which we acquired on December 31, 2008. In accordance with GAAP, the National City balances were reflected at fair value as of the acquisition date.

(b)	Amounts include items for which PNC has elected the fair value option. Our second quarter 2009 Form 10-Q will include additional information regarding these Consolidated Balance Sheet line items.

(c)	Par value less than $.5 million at each date.

(d)

Retained earnings at January 1, 2009 was increased $110 million upon early adoption in the first quarter of 2009 of FSP FAS 115-2 and FAS 124-2, representing the after-tax noncredit portion of other-than-temporary impairment losses recognized in net income during 2008 that has been reclassified to accumulated other comprehensive loss.

(e)	The capital ratios as of June 30, 2009 are estimated.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3
Average Consolidated Balance Sheet (Unaudited)


	*Three months ended*															*Six months ended*
*In millions*	June 30 2009 (a)			March 31 2009 (a)			December 31 2008			September 30 2008			June 30 2008			June 30 2009 (a)			June 30 2008
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	21,007		$	23,065		$	11,994		$	10,744		$	8,631		$	22,030		$	8,622
Nonagency		12,520			13,140			11,963			12,180			12,182			12,828			12,038
Commercial mortgage-backed		4,624			4,252			5,428			5,863			5,838			4,439			5,688
Asset-backed		1,985			2,031			2,768			3,522			3,363			2,008			3,106
US Treasury and government agencies		4,185			1,222			32			32			47			2,711			68
State and municipal		1,366			1,334			1,070			798			773			1,351			592
Other debt		1,012			684			320			266			211			849			148
Corporate stocks and other		386			457			358			411			385			422			439

Total securities available for sale		47,085			46,185			33,933			33,816			31,430			46,638			30,701
Securities held to maturity (b)		3,860			3,402			1,596									3,632

Total investment securities		50,945			49,587			35,529			33,816			31,430			50,270			30,701

Loans
Commercial		63,570			67,232			33,062			31,356			31,091			65,391			30,315
Commercial real estate		25,418			25,622			9,582			9,560			9,340			25,519			9,163
Equipment lease financing		6,191			6,406			2,563			2,573			2,646			6,298			2,565
Consumer		51,878			52,618			21,645			20,984			20,558			52,246			19,727
Residential mortgage		21,831			21,921			8,597			8,875			9,193			21,876			9,302

Total loans		168,888			173,799			75,449			73,348			72,828			171,330			71,072
Loans held for sale		4,757			4,521			1,915			2,146			2,350			4,640			2,978
Federal funds sold and resale agreements		1,726			1,610			1,591			2,736			2,528			1,668			2,784
Other		16,870			14,728			3,135			3,700			4,068			15,804			4,726

Total interest-earning assets		243,186			244,245			117,619			115,746			113,204			243,712			112,261
Noninterest-earning assets:
Allowance for loan and lease losses		(4,385	)		(4,095	)		(1,084	)		(1,012	)		(900	)		(4,240	)		(876	)
Cash and due from banks		3,558			3,832			2,293			2,779			2,725			3,694			2,876
Other		38,496			36,870			24,281			25,486			26,363			37,687			26,712

Total assets	$	280,855		$	280,852		$	143,109		$	142,999		$	141,392		$	280,853		$	140,973


Supplemental Average Balance Sheet Information (Unaudited)

Trading Assets
Securities (c) (f)	$	782		$	1,117		$	905		$	2,298		$	2,471		$	944		$	3,177
Resale agreements (d)		1,528			1,315			1,228			1,937			1,731			1,424			2,046
Financial derivatives (e) (f)		3,304			4,350			2,937			1,775			2,028			3,800			2,420
Loans at fair value (e)		21			31			54			74			92			26			103

Total trading assets	$	5,635		$	6,813		$	5,124		$	6,084		$	6,322		$	6,194		$	7,746

(a)	Includes the impact of National City, which we acquired on December 31, 2008.

(b)	Primarily consists of commercial mortgage-backed and asset-backed securities.

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

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

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

(f)	Amounts exclude the impact of economic hedging activities, which relate primarily to residential mortgage servicing rights.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4
Average Consolidated Balance Sheet (Unaudited) (Continued)


	*Three months ended*										*Six months ended*
*In millions*	June 30 2009 (a)		March 31 2009 (a)		December 31 2008		September 30 2008		June 30 2008		June 30 2009 (a)		June 30 2008
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	55,464	$	52,828	$	29,450	$	28,075	$	27,543	$	54,153	$	26,474
Demand		23,629		22,156		10,252		9,958		9,997		22,897		9,789
Savings		6,678		6,266		2,668		2,751		2,813		6,473		2,719
Retail certificates of deposit		57,357		57,970		16,767		16,456		16,791		57,662		16,673
Other time		5,259		10,670		4,798		4,393		4,686		7,950		4,250
Time deposits in foreign offices		3,348		3,832		4,748		5,141		4,112		3,588		5,069

Total interest-bearing deposits		151,735		153,722		68,683		66,774		65,942		152,723		64,974
Borrowed funds

Federal funds purchased and repurchase agreements		4,283		5,016		5,979		7,870		6,887		4,647		7,532
Federal Home Loan Bank borrowings		15,818		17,097		9,710		9,660		9,602		16,454		8,918
Bank notes and senior debt		13,688		13,384		5,120		5,772		6,621		13,537		6,687
Subordinated debt		10,239		10,439		5,090		5,088		5,132		10,339		4,891
Other		2,170		1,944		4,087		3,758		2,854		2,057		3,550

Total borrowed funds		46,198		47,880		29,986		32,148		31,096		47,034		31,578

Total interest-bearing liabilities		197,933		201,602		98,669		98,922		97,038		199,757		96,552
Noninterest-bearing liabilities and equity:
Demand and other noninterest-bearing deposits		40,965		38,489		18,809		18,193		18,045		39,734		17,804
Allowance for unfunded loan commitments and letters of credit		328		344		127		124		152		336		144
Accrued expenses and other liabilities		11,990		11,872		10,634		9,396		9,410		11,931		10,050
Equity		29,639		28,545		14,870		16,364		16,747		29,095		16,423

Total liabilities and equity	$	280,855	$	280,852	$	143,109	$	142,999	$	141,392	$	280,853	$	140,973


Supplemental Average Balance Sheet Information (Unaudited) (Continued)

Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	151,735	$	153,722	$	68,683	$	66,774	$	65,942	$	152,723	$	64,974
Demand and other noninterest-bearing deposits		40,965		38,489		18,809		18,193		18,045		39,734		17,804

Total deposits	$	192,700	$	192,211	$	87,492	$	84,967	$	83,987	$	192,457	$	82,778

Transaction deposits	$	120,058	$	113,473	$	58,511	$	56,226	$	55,585	$	116,784	$	54,067

Common shareholders’ equity	$	19,527	$	18,405	$	12,205	$	13,838	$	14,513	$	18,969	$	14,395

Trading Liabilities
Securities sold short (b) (e)	$	444	$	396	$	530	$	1,370	$	1,157	$	420	$	1,642
Repurchase agreements and other borrowings (c)		1,928		888		318		609		691		1,420		864
Financial derivatives (d) (e)		3,218		3,653		2,954		1,806		2,051		3,584		2,460
Borrowings at fair value (d)		5		4		11		20		25		4		28

Total trading liabilities	$	5,595	$	4,941	$	3,813	$	3,805	$	3,924	$	5,428	$	4,994

(a)	Includes the impact of National City, which we acquired on December 31, 2008.

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

(c)	Included in “Borrowed funds-Federal funds purchased and repurchase agreements” and “Borrowed funds-Other” above.

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

(e)	Amounts exclude the impact of economic hedging activities, which relate primarily to residential mortgage servicing rights.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5
Details of Net Interest Margin (Unaudited)


	*Three months ended*										*Six months ended*
Net Interest Margin (a)	June 30 2009 (b)		March 31 2009 (b)		December 31 2008		September 30 2008		June 30 2008		June 30 2009 (b)		June 30 2008
Average yields/rates
Yield on interest-earning assets
Loans	5.22	%	5.72	%	5.22	%	5.53	%	5.76	%	5.47	%	5.96	%
Investment securities	5.32		5.59		5.39		5.32		5.35		5.45		5.38
Other	2.14		2.10		4.43		4.85		5.04		2.12		4.95
Total yield on interest-earning assets	4.94		5.38		5.22		5.42		5.59		5.16		5.71
Rate on interest-bearing liabilities
Deposits	1.25		1.44		1.92		2.02		2.20		1.35		2.50
Borrowed funds	2.97		3.42		2.86		2.85		3.04		3.20		3.47
Total rate on interest-bearing liabilities	1.65		1.91		2.21		2.29		2.47		1.78		2.82

Interest rate spread	3.29		3.47		3.01		3.13		3.12		3.38		2.89
Impact of noninterest-bearing sources	.31		.34		.36		.33		.35		.32		.39

Net interest margin	3.60	%	3.81	%	3.37	%	3.46	%	3.47	%	3.70	%	3.28	%

(a)

Calculated as annualized taxable-equivalent net interest income divided by average earning assets. 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 taxable investments. To provide more meaningful comparisons of yields and margins for all earning assets in calculating net interest margins, in this table we use net interest income 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. This adjustment is not permitted under GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2009 and June 30, 2008 were $31 million and $19 million, respectively. The taxable-equivalent adjustments to net interest income for the three months ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008 were $16 million, $15 million, $8 million, $9 million, and $10 million, respectively.

(b)	Includes the impact of National City, which we acquired on December 31, 2008, including fair value yield and rate paid adjustments associated with purchase accounting.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6
Selected Consolidated Income Statement Information and Trading Revenue (Unaudited)

SELECTED CONSOLIDATED INCOME STATEMENT INFORMATION


	*Three months ended*									*Six months ended*
*In millions*	June 30 2009 (a)			March 31 2009 (a)			June 30 2008			June 30 2009 (a)			June 30 2008
NONINTEREST INCOME
Residential mortgage servicing hedging gains	$	58		$	202					$	260
BlackRock LTIP shares adjustment					103		$	80			103		$	120
Gains (losses) on private equity and alternative investments		(29	)		(122	)		(36	)		(151	)		(9	)
Trading gains (losses)		91			(11	)		53			80			(23	)
Gains on sales of loans		69			17			4			86			14
Hedges of deferred compensation (b)		41			(29	)		8			12			(5	)

NONINTEREST EXPENSE
Integration costs - primarily National City		125			52			13			177			27
FDIC insurance special assessment		133									133
Deferred compensation (b)		41			(29	)		8			12			(5	)

TRADING REVENUE (c)


	*Three months ended*							*Six months ended*
*In millions*	June 30 2009 (a)		March 31 2009 (a)			June 30 2008		June 30 2009 (a)		June 30 2008
Net interest income	$	13	$	19		$	23	$	32	$	39
Noninterest income		91		(11	)		53		80		(23	)

Total trading revenue	$	104	$	8		$	76	$	112	$	16


Securities underwriting and trading (d)	$	28	$	11		$	19	$	39	$	10
Foreign exchange		21		20			17		41		33
Financial derivatives		55		(23	)		40		32		(27	)

Total trading revenue	$	104	$	8		$	76	$	112	$	16

(a)	Includes the impact of National City, which we acquired on December 31, 2008.

(b)

Certain deferred compensation liabilities are tied to the performance of PNC common stock and other market indices. Changes in the value of these liabilities resulting from changes in the underlying indices are recorded in noninterest expense. These changes are hedged using prepaid forward contracts, which are recorded in noninterest income.

(c)	Amounts exclude the impact of economic hedging activities, which relate primarily to residential mortgage servicing rights.

(d)	Includes changes in fair value for certain loans accounted for at fair value.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7
Details of Loans (Unaudited)


*In millions*	June 30 2009 (b)		March 31 2009 (b)		December 31 2008 (b)		September 30 2008		June 30 2008
Commercial
Retail/wholesale	$	10,141	$	11,226	$	11,482	$	6,223	$	6,451
Manufacturing		11,595		12,796		13,263		5,793		5,438
Other service providers		8,491		8,674		9,038		4,037		3,793
Real estate related (a)		8,346		8,926		9,107		6,308		6,259
Financial services		5,078		5,050		5,194		1,730		1,585
Health care		3,045		3,079		3,201		1,683		1,685
Other		13,898		15,446		17,935		6,864		5,987

Total commercial		60,594		65,197		69,220		32,638		31,198

Commercial real estate
Real estate projects		16,542		16,830		17,176		6,617		6,534
Commercial mortgage		8,323		8,590		8,560		3,047		2,912

Total commercial real estate		24,865		25,420		25,736		9,664		9,446

Equipment lease financing		6,092		6,300		6,461		2,613		2,564

TOTAL COMMERCIAL LENDING		91,551		96,917		101,417		44,915		43,208

Consumer
Home equity
Lines of credit		24,373		24,112		24,024		7,619		7,280
Installment		12,346		12,934		14,252		7,273		7,455
Education		5,340		5,127		4,211		2,672		2,138
Automobile		1,784		1,737		1,667		1,606		1,590
Credit card and other unsecured lines of credit		3,261		3,148		3,163		511		474
Other		4,833		4,910		5,172		1,831		1,848

Total consumer		51,937		51,968		52,489		21,512		20,785

Residential real estate
Residential mortgage		19,342		19,661		18,783		8,356		8,604
Residential construction		2,179		2,827		2,800		401		443

Total residential real estate		21,521		22,488		21,583		8,757		9,047

TOTAL CONSUMER LENDING		73,458		74,456		74,072		30,269		29,832

Total (c)	$	165,009	$	171,373	$	175,489	$	75,184	$	73,040

(a) Includes loans to customers in the real estate and construction industries. (b) Includes the impact of National City, which we acquired on December 31, 2008.
(c) Includes SOP 03-3 purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.	$	12,468	$	12,739	$	12,889

Details of Loans Held for Sale (Unaudited)


*In millions*	June 30 2009 (b)		March 31 2009 (b)		December 31 2008 (b)		September 30 2008		June 30 2008
Commercial mortgage	$	1,531	$	1,648	$	2,148	$	1,505	$	1,864
Residential mortgage		2,886		2,244		1,962		99		102
Other		245		153		256		318		322

Total	$	4,662	$	4,045	$	4,366	$	1,922	$	2,288


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8
Purchase Accounting Accretion and Accretable Interest (Unaudited)

VALUATION OF SOP 03-3 PURCHASED IMPAIRED LOANS


	Original December 31, 2008					Revised December 31, 2008
*Dollars in billions*	Balance			Fair Value Mark		Balance			Fair Value Mark
Commercial and commercial real estate loans:
Unpaid principal balance	$	4.0				$	6.3
Fair value mark		(2.2	)	(55	)%		(3.4	)	(54	)%

Net investment		1.8					2.9

Consumer and residential mortgage loans:
Unpaid principal balance		15.3					15.6
Fair value mark		(5.2	)	(34	)%		(5.6	)	(36	)%

Net investment		10.1					10.0


Total SOP 03-3 purchased impaired loans:
Unpaid principal balance		19.3					21.9
Fair value mark		(7.4	)	(38	)%		(9.0	)	(41	)%

Net investment	$	11.9				$	12.9

Subsequent to December 31, 2008, an additional $2.6 billion of acquired National City loans were identified as impaired under SOP 03-3. A total fair value mark of $1.6 billion was recorded, resulting in a $1.0 billion net investment. These impairments were effective December 31, 2008 based on additional information regarding the borrowers and credit conditions that existed as of that date. The net investment of $12.9 billion above differs from the $12.5 billion net investment at June 30, 2009 (on page 7) due to payoffs, accretion and other adjustments during the first six months of 2009.

PURCHASE ACCOUNTING ACCRETION


	*Three months ended*						*Six months ended*
*In millions*	March 31 2009			June 30 2009			June 30 2009
Performing loans	$	322		$	168		$	490
Impaired loans		257			259			516
Reversal of contractual interest on impaired loans		(223	)		(194	)		(417	)

Net impaired loans		34			65			99
Securities		31			41			72
Deposits		312			264			576
Borrowings		(85	)		(52	)		(137	)

Total	$	614		$	486		$	1,100

ACCRETABLE INTEREST


*In billions*	December 31 2008			June 30 2009
Performing loans	$	2.4		$	1.9
Impaired loans		3.7			3.9

Total loans (gross)		6.1			5.8
Securities		.2			.1
Deposits		2.1			1.5
Borrowings		(1.8	)		(1.3	)

Total	$	6.6		$	6.1

Adjustments related to impaired loans in the table above include purchase accounting accretion, reclassifications from non-accretable to accretable interest as a result of increases in estimated cash flows, and reductions in the accretable amount as a result of additional loan impairments as of the National City acquisition close date of December 31, 2008.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9
Accruing Loans Past Due (Unaudited)

Accruing Loans Past Due 30 To 89 Days - Summary (a)


	Amount						Percent of Total Outstandings
*Dollars in millions*	June 30 2009		March 31 2009		Dec. 31 2008		June 30 2009		March 31 2009		Dec. 31 2008
Commercial	$	773	$	838	$	536	1.28	%	1.29	%	.77	%
Commercial real estate		847		760		576	3.41		2.99		2.24
Equipment lease financing		52		69		74	.85		1.10		1.15
Consumer		572		615		1,103	1.10		1.18		2.10
Residential real estate		1,160		1,201		1,372	5.39		5.34		6.36

Total (b) (c)	$	3,404	$	3,483	$	3,661	2.06	%	2.03	%	2.09	%

(a)	Includes loans that are government insured/guaranteed, primarily residential mortgages. These loans are included in accordance with regulatory reporting requirements.

(b)	Loans acquired from National City comprised $2.8 billion of the total at June 30, 2009, $2.7 billion of the total at March 31, 2009 and $3.0 billion of the total at December 31, 2008.

(c)	Includes $1.1 billion, $1.2 billion and $1.6 billion of SOP 03-3 purchased impaired loans at June 30, 2009, March 31, 2009, and December 31, 2008, respectively.

Accruing Loans Past Due 90 Days Or More - Summary (a)


	Amount						Percent of Total Outstandings
*Dollars in millions*	June 30 2009		March 31 2009		Dec. 31 2008		June 30 2009		March 31 2009		Dec. 31 2008
Commercial	$	286	$	179	$	104	.47	%	.27	%	.15	%
Commercial real estate		942		586		723	3.79		2.31		2.81
Equipment lease financing		6				2	.10				.03
Consumer		373		326		419	.72		.63		.80
Residential real estate		3,332		2,858		2,011	15.48		12.71		9.32

Total (d) (e)	$	4,939	$	3,949	$	3,259	2.99	%	2.30	%	1.86	%

(d)	Loans acquired from National City comprised $4.7 billion of the total at June 30, 2009, $3.7 billion of the total at March 31, 2009 and $3.1 billion of the total at December 31, 2008.

(e)	Includes $2.9 billion, $2.2 billion and $2.0 billion of SOP 03-3 purchased impaired loans at June 30, 2009, March 31, 2009, and December 31, 2008, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit, and Net Unfunded Commitments (Unaudited)

Change in Allowance for Loan and Lease Losses


*Three months ended - in millions*	June 30 2009			March 31 2009			December 31 2008			September 30 2008			June 30 2008
Beginning balance	$	4,299		$	3,917		$	1,053		$	988		$	865
Charge-offs:
Commercial		(362	)		(211	)		(109	)		(51	)		(71	)
Commercial real estate		(126	)		(104	)		(70	)		(60	)		(24	)
Equipment lease financing		(50	)		(23	)		(1	)		1			(2	)
Consumer		(257	)		(194	)		(43	)		(39	)		(33	)
Residential real estate		(86	)					(4	)		(2	)

Total charge-offs		(881	)		(532	)		(227	)		(151	)		(130	)
Recoveries:
Commercial		36			16			13			21			11
Commercial real estate		10			5			3			4			3
Equipment lease financing		5			5									1
Consumer		28			27			4			4			3
Residential real estate		7			48

Total recoveries		86			101			20			29			18
Net charge-offs (recoveries):
Commercial		(326	)		(195	)		(96	)		(30	)		(60	)
Commercial real estate		(116	)		(99	)		(67	)		(56	)		(21	)
Equipment lease financing		(45	)		(18	)		(1	)		1			(1	)
Consumer		(229	)		(167	)		(39	)		(35	)		(30	)
Residential real estate		(79	)		48			(4	)		(2	)

Total net charge-offs		(795	)		(431	)		(207	)		(122	)		(112	)
Provision for credit losses (a)		1,087			880			990			190			186
Acquired allowance - National City and Sterling		(31	)		(83	)		2,224						20
Net change in allowance for unfunded loan commitments and letters of credit (b)		9			16			(143	)		(3	)		29

Ending balance	$	4,569		$	4,299		$	3,917		$	1,053		$	988

Supplemental Information
Net charge-offs to average loans (For the three months ended)		1.89	%		1.01	%		1.09	%		.66	%		.62	%
Allowance for loan and lease losses to total loans		2.77			2.51			2.23			1.40			1.35

Commercial lending net charge-offs	$	(487	)	$	(312	)	$	(164	)	$	(85	)	$	(82	)
Consumer lending net charge-offs		(308	)		(119	)		(43	)		(37	)		(30	)

Total net charge-offs	$	(795	)	$	(431	)	$	(207	)	$	(122	)	$	(112	)

Net charge-offs to average loans
Commercial lending		2.05	%		1.27	%		1.44	%		.78	%		.77	%
Consumer lending		1.68			.65			.57			.49			.41

(a)	Amounts include integration costs (conforming provision for credit losses) of $504 million in the fourth quarter of 2008 related to National City and $23 million in the second quarter of 2008 related to Sterling.

(b)	Fourth quarter of 2008 includes $154 million related to the National City conforming provision for credit losses.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


*Three months ended - in millions*	June 30 2009			March 31 2009			December 31 2008		September 30 2008		June 30 2008
Beginning balance	$	328		$	344		$	127	$	124	$	152
Acquired allowance - National City and Sterling								74				1
Net change in allowance for unfunded loan commitments and letters of credit		(9	)		(16	)		143		3		(29	)

Ending balance	$	319		$	328		$	344	$	127	$	124

Net Unfunded Commitments

*In millions*	June 30 2009 (c)			March 31 2009 (c)			December 31 2008 (c)		September 30 2008		June 30 2008
Net unfunded commitments	$	103,058		$	102,821		$	104,888	$	57,094	$	51,558

(c)	Includes the impact of National City, which we acquired on December 31, 2008.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11
Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*In millions*	June 30 2009 (a)			March 31 2009 (a)			December 31 2008 (a)			September 30 2008			June 30 2008
Nonaccrual loans
Commercial
Retail/wholesale	$	171		$	149		$	88		$	72		$	58
Manufacturing		410			334			141			45			34
Other service providers		243			224			114			76			66
Real estate related (b)		322			226			151			92			70
Financial services		58			58			23			15			10
Health care		89			104			37			8			7
Other		157			119			22			5			8

Total commercial		1,450			1,214			576			313			253

Commercial real estate
Real estate projects		1,426			1,012			659			391			330
Commercial mortgage		230			200			107			49			35

Total commercial real estate		1,656			1,212			766			440			365

Equipment lease financing		120			121			97			3			4

TOTAL COMMERCIAL LENDING		3,226			2,547			1,439			756			622

Consumer
Home equity		108			75			66			22			21
Other		34			24			4			3			3

Total consumer		142			99			70			25			24
Residential real estate
Residential mortgage		595			299			139			60			48
Residential construction		69			15			14						1

Total residential real estate		664			314			153			60			49

TOTAL CONSUMER LENDING		806			413			223			85			73

Total nonaccrual loans		4,032			2,960			1,662			841			695

Total nonperforming loans		4,032			2,960			1,662			841			695
Foreclosed and other assets
Commercial lending		113			93			50			5			8
Consumer lending		387			465			469			29			30

Total foreclosed and other assets		500			558			519			34			38

Total nonperforming assets	$	4,532		$	3,518		$	2,181		$	875		$	733

Nonperforming loans to total loans		2.44	%		1.73	%		.95	%		1.12	%		.95	%
Nonperforming assets to total loans and foreclosed and other assets		2.74			2.05			1.24			1.16			1.00
Nonperforming assets to total assets		1.62			1.23			.75			.60			.51
Allowance for loan and lease losses to nonperforming loans		113			145			236			125			142

(a)

Amounts at June 30, 2009, March 31, 2009 and December 31, 2008 include $2.141 billion, $1.570 billion and $738 million, respectively, of nonperforming assets related to National City, which excluded those loans that we impaired in accordance with AICPA Statement of Position 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer.

(b)	Includes loans related to customers in the real estate and construction industries.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12
Details of Nonperforming Assets (Unaudited) (Continued)

Change in Nonperforming Assets


*In millions*
January 1, 2009	$	2,181
Transferred in		4,244
Charge-offs/valuation adjustments		(811	)
Principal activity including payoffs		(512	)
Returned to performing		(259	)
Sales		(311	)

June 30, 2009	$	4,532

Largest Individual Nonperforming Assets at June 30, 2009 (a)


*In millions*
Ranking	Outstandings		Industry
1	$	54	Health care
2		33	Construction
3		33	Real estate
4		29	Information services
5		27	Manufacturing
6		25	Real estate
7		25	Real estate
8		24	Real estate
9		24	Transportation
10		24	Real estate

Total	$	298


As a percent of total nonperforming assets		7	%

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13
Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash management services to consumer and small business customers within our primary geographic markets. Our customers are serviced through our branch network, call centers and the internet. The branch network is located primarily in Pennsylvania, New Jersey, Washington, DC, Maryland, Virginia, Delaware, Ohio, Kentucky, Indiana, Illinois, Michigan, Missouri, Florida, and Wisconsin.

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, and 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 offered nationally.

Asset Management Group includes personal wealth management for high net worth and ultra high net worth and institutional asset management clients. Personal wealth management products and services include customized investment management, financial planning, private banking, tailored credit solutions as well as trust management and administration for affluent individuals and families. Institutional asset management provides investment management, custody, and retirement planning services. The clients served include corporations, unions and charitable endowments and foundations, located primarily in our geographic footprint. This segment includes the asset management businesses acquired with National City and the legacy PNC wealth management business previously included in Retail Banking.

Residential Mortgage Banking directly originates first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint and also originates loans through joint venture partners. Mortgage loans represent loans collateralized by one-to-four-family residential real estate and are made to borrowers in good credit standing. These loans are typically underwritten to third party standards and sold to primary mortgage market aggregators (Fannie Mae, Freddie Mac, Ginnie Mae, Federal Home Loan Banks and third-party investors) with servicing retained. The mortgage servicing operation performs all functions related to servicing first mortgage loans for various investors. Certain loans originated through our joint ventures are serviced by a joint venture partner.

BlackRock is one of the largest publicly traded investment management firms in the world. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of fixed income, cash management, equity and balanced and alternative investment products and advisory separate accounts and funds. In addition, BlackRock provides risk management, investment system outsourcing and financial advisory services globally to a broad base of clients. At June 30, 2009, our share of BlackRock’s earnings was approximately 31%.

Global Investment Servicing is a leading provider of processing, technology and business intelligence services to asset managers, broker-dealers, and financial advisors worldwide. Securities services include custody, securities lending, and accounting and administration for funds registered under the Investment Company Act of 1940 and alternative investments. Investor services include transfer agency, subaccounting, banking transaction services, and distribution. Financial advisor services include managed accounts and information management. This business segment services shareholder accounts both domestically and internationally. International locations include Ireland, Poland and Luxembourg.

Distressed Assets Portfolio includes residential real estate development loans, cross-border leases, subprime residential mortgage loans, brokered home equity loans and certain other residential real estate loans. These loans require special servicing and management oversight given current market conditions. The majority of these loans are from acquisitions, primarily National City.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14
Summary of Business Segment Earnings and Revenue (Unaudited) (a) (b)


	*Three months ended*													*Six months ended*
*In millions*	June 30 2009 (c)			March 31 2009 (c)			December 31 2008			September 30 2008		June 30 2008		June 30 2009 (c)			June 30 2008
Earnings (Loss)
Retail Banking	$	60		$	50		$	69		$	36	$	81	$	110		$	218
Corporate & Institutional Banking		111			359			(54	)		89		159		470			184
Asset Management Group		8			39			22			27		34		47			71
Residential Mortgage Banking		88			221										309
Global Investment Servicing		12			10			25			34		33		22			63
Distressed Assets Portfolio		155			3										158
Other, including BlackRock (b) (d) (e)		(227	)		(152	)		(308	)		73		210		(379	)		365

Total consolidated net income (loss)	$	207		$	530		$	(246	)	$	259	$	517	$	737		$	901


Revenue
Retail Banking	$	1,466		$	1,441		$	668		$	661	$	659	$	2,907		$	1,400
Corporate & Institutional Banking		1,290			1,295			530			440		566		2,585			881
Asset Management Group		226			250			129			142		147		476			292
Residential Mortgage Banking		325			520										845
Global Investment Servicing (f)		188			190			214			237		237		378			465
Distressed Assets Portfolio		334			344										678
Other, including BlackRock (b) (d)		158			(169	)		135			174		430		(11	)		822

Total consolidated revenue	$	3,987		$	3,871		$	1,676		$	1,654	$	2,039	$	7,858		$	3,860

(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. Certain prior period amounts have been reclassified to reflect current methodologies and our current business and management structure.

(b)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our second quarter 2009 Form 10-Q will include additional information regarding BlackRock.

(c)	Includes the impact of National City, which we acquired on December 31, 2008.

(d)

Includes earnings and gains or losses related to PNC’s equity interest in BlackRock and those related to Hilliard Lyons prior to its March 31, 2008 sale, integration costs, asset and liability management activities including net securities gains or losses and certain trading activities, equity management activities, exited businesses, differences between business segment performance reporting and financial statement reporting under generally accepted accounting principles (GAAP), corporate overhead and intercompany eliminations.

(e)	The $504 million conforming provision for credit losses related to the National City acquisition was included in this business segment for the fourth quarter of 2008.

(f)	Global Investment Servicing revenue represents the sum of servicing revenue and nonoperating income (expense) less debt financing costs.


	June 30 2009 (g)	March 31 2009 (g)	December 31 2008 (g)	September 30 2008	June 30 2008
Period-end Employees
Full-time employees
Retail Banking	22,093	22,459	9,304	9,160	9,450
Corporate & Institutional Banking	4,135	4,267	2,294	2,305	2,310
Asset Management Group	3,150	3,210	1,849	1,835	1,853
Residential Mortgage Banking	3,693	3,596
Global Investment Servicing	4,663	4,732	4,934	4,969	4,946
Distressed Assets Portfolio	131	110
Other
Operations & Technology	9,255	9,243	4,491	4,452	4,572
Staff Services and other	4,242	4,241	2,441	2,502	2,536

Total Other	13,497	13,484	6,932	6,954	7,108

Total full-time employees	51,362	51,858	25,313	25,223	25,667

Retail Banking part-time employees	5,199	5,375	2,347	2,340	2,352
Other part-time employees	1,509	1,562	561	566	586

Total part-time employees	6,708	6,937	2,908	2,906	2,938

Total National City legacy employees (g)			31,374

Total	58,070	58,795	59,595	28,129	28,605

The period-end employee statistics disclosed for each PNC legacy business reflect staff directly employed by the respective business and exclude operations, technology and staff services employees. Global Investment Servicing statistics are presented on a legal entity basis.

(g)	National City’s legacy employees are included in the aggregate at December 31, 2008 but are included in the individual business segments as appropriate at June 30, 2009 and March 31, 2009.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15
Retail Banking (Unaudited) (a)


	*Three months ended*															*Six months ended*
*Dollars in millions*	June 30 2009 (b)			March 31 2009 (b)			December 31 2008			September 30 2008			June 30 2008			June 30 2009 (b)			June 30 2008
INCOME STATEMENT
Net interest income	$	902		$	921		$	398		$	394		$	395		$	1,823		$	800
Noninterest income
Service charges on deposits		237			220			98			93			89			457			168
Brokerage		62			61			39			41			37			123			72
Consumer services		227			208			105			106			106			435			205
Other		38			31			28			27			32			69			155

Total noninterest income		564			520			270			267			264			1,084			600

Total revenue		1,466			1,441			668			661			659			2,907			1,400
Provision for credit losses		304			304			88			134			72			608			166
Noninterest expense		1,065			1,053			463			462			452			2,118			874

Pretax earnings		97			84			117			65			135			181			360
Income taxes		37			34			48			29			54			71			142

Earnings	$	60		$	50		$	69		$	36		$	81		$	110		$	218

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	27,497		$	27,639		$	13,430		$	13,320		$	13,241		$	27,568		$	13,149
Indirect		4,039			4,120			2,070			2,034			2,071			4,079			2,048
Education		5,199			4,882			2,756			2,348			2,088			5,041			1,466
Credit cards		2,164			2,112			304			269			245			2,138			242
Other		1,726			1,858			473			473			481			1,792			464

Total consumer		40,625			40,611			19,033			18,444			18,126			40,618			17,369
Commercial and commercial real estate		12,542			12,740			5,039			5,103			5,031			12,640			5,189
Floor plan		1,379			1,510			994			919			1,039			1,444			1,028
Residential mortgage		2,114			2,252			1,914			1,995			2,074			2,183			2,103

Total loans		56,660			57,113			26,980			26,461			26,270			56,885			25,689
Goodwill and other intangible assets		5,784			5,807			5,328			5,335			5,208			5,796			5,051
Other assets		2,733			2,699			1,296			1,384			1,301			2,716			1,951

Total assets	$	65,177		$	65,619		$	33,604		$	33,180		$	32,779		$	65,397		$	32,691

Deposits
Noninterest-bearing demand	$	16,407		$	15,819		$	9,075		$	9,390		$	9,374		$	16,115		$	9,148
Interest-bearing demand		18,639			17,900			8,195			8,116			8,181			18,272			7,991
Money market		39,480			38,707			18,635			17,475			16,905			39,095			16,376

Total transaction deposits		74,526			72,426			35,905			34,981			34,460			73,482			33,515
Savings		6,896			6,484			2,637			2,719			2,775			6,691			2,684
Certificates of deposit		55,798			56,355			15,820			15,558			15,992			56,075			15,912

Total deposits		137,220			135,265			54,362			53,258			53,227			136,248			52,111
Other liabilities		38			82			362			400			366			60			388
Capital		8,790			8,376			3,420			3,354			3,350			8,584			3,281

Total funds	$	146,048		$	143,723		$	58,144		$	57,012		$	56,943		$	144,892		$	55,780

PERFORMANCE RATIOS
Return on average capital		3	%		2	%		8	%		4	%		10	%		3	%		13	%
Noninterest income to total revenue		38			36			40			40			40			37			43
Efficiency		73			73			69			70			69			73			62

(a)	See note (a) on page 14.

(b)	Includes the impact of National City, which we acquired on December 31, 2008.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16
Retail Banking (Unaudited) (Continued)


	*Three months ended*															*Six months ended*
*Dollars in millions, except as noted*	June 30 2009 (a)			March 31 2009 (a)			December 31 2008			September 30 2008			June 30 2008			June 30 2009 (a)			June 30 2008
OTHER INFORMATION (b)
Credit-related statistics:
Commercial nonperforming assets	$	246		$	194		$	122		$	131		$	121
Consumer nonperforming assets		115			86			68			48			42

Total nonperforming assets	$	361		$	280		$	190		$	179		$	163

SOP 03-3 purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008	$	1,367		$	1,370		$	1,398

Commercial net charge-offs	$	93		$	85		$	48		$	17		$	31		$	178		$	74
Consumer net charge-offs		153			122			36			32			28			275			50

Total net charge-offs	$	246		$	207		$	84		$	49		$	59		$	453		$	124


Commercial annualized net charge-off ratio		2.68	%		2.42	%		3.17	%		1.12	%		2.05	%		2.55	%		2.39	%
Consumer annualized net charge-off ratio		1.44	%		1.15	%		.68	%		.62	%		.56	%		1.30	%		.52	%
Total annualized net charge-off ratio		1.74	%		1.47	%		1.24	%		.74	%		.90	%		1.61	%		.97	%

Other statistics:
ATMs		6,474			6,402			4,041			4,018			4,015
Branches (c)		2,606			2,585			1,141			1,135			1,146

Home equity portfolio credit statistics:
% of first lien positions (d)		35	%		35	%		37	%		38	%		38	%
Weighted average loan-to-value ratios (d)		74	%		74	%		73	%		73	%		72	%
Weighted average FICO scores (e)		728			727			726			726			725
Annualized net charge-off ratio		.80	%		.34	%		.58	%		.54	%		.50	%		.57	%		.42	%
Loans 90 days past due		.72	%		.65	%		.62	%		.49	%		.49	%

Customer-related statistics (f):
Retail Banking checking relationships		5,148,000			5,134,000			2,402,000			2,400,000			2,296,000
Retail online banking active customers		2,676,000			2,636,000			1,215,000			1,193,000			1,124,000
Retail online bill payment active customers		744,000			726,000			379,000			364,000			345,000

Brokerage statistics:
Financial consultants (g)		658			658			414			402			394
Full service brokerage offices		42			43			23			23			24
Brokerage account assets (billions)	$	28		$	26		$	15		$	16		$	18

Managed credit card loans:
Loans held in portfolio	$	2,202		$	2,091		$	330		$	286		$	255
Loans securitized		1,824			1,824

Total managed credit card loans	$	4,026		$	3,915		$	330		$	286		$	255

Net charge-offs:
Securitized credit card loans	$	37		$	31											$	68
Managed credit card loans	$	88		$	79		$	3		$	3		$	2		$	167		$	4

Net charge-offs as a % of average loans (annualized):
Securitized credit card loans		8.14	%		6.89	%								7.52	%
Managed credit card loans		8.89	%		8.15	%		3.93	%		4.44	%		3.28	%		8.52	%		3.32	%

(a)	Includes the impact of National City, which we acquired on December 31, 2008.

(b)	Presented as of period-end, except for net charge-offs and annualized net charge-off ratios, which are for the three months and six months ended.

(c)	Excludes certain satellite branches that provide limited products and/or services.

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

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

(f)	Amounts as of June 30, 2009 and March 31, 2009 include the impact of National City prior to application system conversions. These amounts may be refined subsequent to system conversions.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17
Corporate & Institutional Banking (Unaudited) (a)


	*Three months ended*															*Six months ended*
*Dollars in millions, except as noted*	June 30 2009 (b)			March 31 2009 (b)			December 31 2008			September 30 2008			June 30 2008			June 30 2009 (b)			June 30 2008
INCOME STATEMENT
Net interest income	$	885		$	1,023		$	364		$	322		$	324		$	1,908		$	628
Noninterest income
Corporate service fees		236			218			127			169			154			454			287
Other		169			54			39			(51	)		88			223			(34	)

Noninterest income		405			272			166			118			242			677			253

Total revenue		1,290			1,295			530			440			566			2,585			881
Provision for credit losses		649			287			381			51			87			936			143
Noninterest expense		470			436			253			267			239			906			484

Pretax earnings (loss)		171			572			(104	)		122			240			743			254
Income taxes (benefit)		60			213			(50	)		33			81			273			70

Earnings (loss)	$	111		$	359		$	(54	)	$	89		$	159		$	470		$	184

AVERAGE BALANCE SHEET
Loans
Corporate	$	42,777		$	45,526		$	21,685		$	20,634		$	20,500		$	44,144		$	19,710
Commercial real estate		15,726			15,646			6,043			5,767			5,381			15,686			5,260
Commercial - real estate related		3,886			4,267			3,233			3,085			3,029			4,075			2,937
Asset-based lending		6,401			7,021			5,556			5,321			5,241			6,710			5,108
Equipment lease financing		5,380			5,554			1,586			1,515			1,429			5,466			1,412

Total loans		74,170			78,014			38,103			36,322			35,580			76,081			34,427
Goodwill and other intangible assets		3,512			3,376			3,210			3,172			3,151			3,444			3,106
Loans held for sale		1,890			1,710			1,701			1,897			2,204			1,801			2,311
Other assets		7,507			8,217			6,999			5,963			5,928			7,860			6,099

Total assets	$	87,079		$	91,317		$	50,013		$	47,354		$	46,863		$	89,186		$	45,943

Deposits
Noninterest-bearing demand	$	18,732		$	17,108		$	9,144		$	8,224		$	8,082		$	17,924		$	8,124
Money market		9,495			7,932			6,059			5,905			5,843			8,718			5,651
Other		7,520			7,408			3,583			3,151			2,960			7,464			2,888

Total deposits		35,747			32,448			18,786			17,280			16,885			34,106			16,663
Other liabilities		9,765			10,148			6,101			5,094			4,848			9,956			5,224
Capital		7,816			7,684			3,388			3,188			2,857			7,751			2,884

Total funds	$	53,328		$	50,280		$	28,275		$	25,562		$	24,590		$	51,813		$	24,771

PERFORMANCE RATIOS
Return on average capital		6	%		19	%		(6	) %		6	%		7	%		12	%		13	%
Noninterest income to total revenue		31			21			31			27			43			26			29
Efficiency		36			34			48			61			42			35			55

COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	269		$	270		$	247		$	248		$	244		$	269		$	243
Acquisitions/additions		11			5			28			7			11			16			16
Repayments/transfers		(11	)		(6	)		(5	)		(8	)		(7	)		(16	)		(11	)

End of period	$	269		$	269		$	270		$	247		$	248		$	269		$	248

OTHER INFORMATION
Consolidated revenue from: (c)
Treasury Management	$	285		$	275		$	149		$	141		$	137		$	559		$	274
Capital Markets	$	148		$	43		$	76		$	80		$	104		$	190		$	180
Commercial mortgage loans held for sale (d)	$	63		$	22		$	35		$	(56	)	$	49		$	85		$	(94	)
Commercial mortgage loan servicing (e)		76			72			19			55			56			148			105

Commercial mortgage banking activities	$	139		$	94		$	54		$	(1	)	$	105		$	233		$	11
Total loans (f)	$	71,077		$	75,886		$	28,996		$	28,232		$	26,075
Nonperforming assets (f)	$	2,317		$	1,862		$	1,173		$	640		$	516
SOP 03-3 purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008 (f)	$	1,591		$	1,747		$	1,806
Net charge-offs	$	322		$	170		$	116		$	69		$	51		$	492		$	83
Net carrying amount of commercial mortgage servicing rights (f)	$	895		$	874		$	654		$	698		$	681

(a)	See note (a) on page 14.

(b)	Includes the impact of National City, which we acquired on December 31, 2008.

(c)	Represents consolidated PNC amounts.

(d)	Includes valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, origination fees, gains on sale of loans held for sale and net interest income on loans held for sale.

(e)	Includes net interest income and noninterest income from loan servicing and ancillary services.

(f)	Presented as of period end. Amounts at December 31, 2008 do not include the impact of National City, except SOP 03-3 purchased impaired loans.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18
Asset Management Group (Unaudited) (a)


	*Three months ended*															*Six months ended*
*Dollars in millions, except as noted*	June 30 2009 (b)			March 31 2009 (b)			December 31 2008			September 30 2008			June 30 2008			June 30 2009 (b)			June 30 2008
INCOME STATEMENT
Net interest income	$	75		$	96		$	36		$	32		$	31		$	171		$	63
Noninterest income		151			154			93			110			116			305			229

Total revenue		226			250			129			142			147			476			292
Provision for credit losses		46			17			4						1			63			2
Noninterest expense		167			170			89			100			91			337			176

Pretax earnings		13			63			36			42			55			76			114
Income taxes		5			24			14			15			21			29			43

Earnings	$	8		$	39		$	22		$	27		$	34		$	47		$	71

AVERAGE BALANCE SHEET
Loans
Consumer	$	3,936		$	3,851		$	2,289		$	2,208		$	2,088		$	3,894		$	2,022
Commercial and commercial real estate		1,713			1,761			588			582			608			1,737			570
Residential mortgage		1,114			1,153			64			66			67			1,133			66

Total loans		6,763			6,765			2,941			2,856			2,763			6,764			2,658
Goodwill and other intangible assets		390			404			33			40			41			397			41
Other assets		269			256			165			194			175			263			188

Total assets	$	7,422		$	7,425		$	3,139		$	3,090		$	2,979		$	7,424		$	2,887

Deposits
Noninterest-bearing demand	$	988		$	1,260		$	788		$	1,038		$	755		$	1,123		$	803
Interest-bearing demand		1,563			1,544			728			661			724			1,554			706
Money market		3,214			3,327			2,123			1,942			1,898			3,270			1,676

Total transaction deposits		5,765			6,131			3,639			3,641			3,377			5,947			3,185
Certificates of deposit and other		1,090			1,292			684			746			456			1,191			462

Total deposits		6,855			7,423			4,323			4,387			3,833			7,138			3,647
Other liabilities		104			116			10			12			9			109			13
Capital		580			576			271			271			268			578			238

Total funds	$	7,539		$	8,115		$	4,604		$	4,670		$	4,110		$	7,825		$	3,898

PERFORMANCE RATIOS
Return on average capital		6	%		27	%		32	%		40	%		51	%		16	%		60	%
Noninterest income to total revenue		67			62			72			77			79			64			78
Efficiency		74			68			69			70			62			71			60

OTHER INFORMATION
Total nonperforming assets (c)	$	108		$	68		$	5		$	3		$	3
SOP 03-3 purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008 (c)	$	221		$	223		$	225
Total net charge-offs	$	21		$	11					$	1					$	32		$	1

ASSETS UNDER ADMINISTRATION (in billions) (c) (d)
Assets under management
Personal	$	62		$	59		$	38		$	44		$	46
Institutional		36			37			19			20			21

Total	$	98		$	96		$	57		$	64		$	67

Asset Type
Equity	$	42		$	38		$	26		$	34		$	36
Fixed income		32			32			19			18			18
Liquidity/Other		24			26			12			12			13

Total	$	98		$	96		$	57		$	64		$	67

Nondiscretionary assets under administration
Personal	$	26		$	26		$	23		$	28		$	29
Institutional		98			94			64			77			81

Total	$	124		$	120		$	87		$	105		$	110

Asset Type
Equity	$	46		$	41		$	34		$	43		$	47
Fixed income		25			25			19			25			26
Liquidity/Other		53			54			34			37			37

Total	$	124		$	120		$	87		$	105		$	110

(a)	See note (a) on page 14. Amounts for the 2008 periods reflect the legacy PNC wealth management business previously included in Retail Banking.

(b)	Includes the impact of National City, which we acquired on December 31, 2008.

(c)	As of period-end.

(d)	Excludes brokerage account assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19
Residential Mortgage Banking (Unaudited) (a)


	*Three months ended*						*Six months ended*
*Dollars in millions, except as noted*	June 30 2009			March 31 2009			June 30 2009
INCOME STATEMENT
Net interest income	$	80		$	82		$	162
Noninterest income
Loan servicing revenue
Servicing fees		42			59			101
Net MSR hedging gains		58			202			260
Loan sales revenue		152			175			327
Other		(7	)		2			(5	)

Total noninterest income		245			438			683

Total revenue		325			520			845
Provision for (recoveries of) credit losses		8			(9	)		(1	)
Noninterest expense		176			173			349

Pretax earnings		141			356			497
Income taxes		53			135			188

Earnings	$	88		$	221		$	309

AVERAGE BALANCE SHEET
Portfolio loans	$	1,834		$	1,429		$	1,633
Loans held for sale		2,766			2,693			2,730
Mortgage servicing rights		1,343			1,164			1,254
Other assets		2,648			1,933			2,292

Total assets	$	8,591		$	7,219		$	7,909

Deposits and borrowings	$	5,899		$	4,761		$	5,333
Other liabilities		1,514			1,421			1,468
Capital		1,282			1,270			1,276

Total funds	$	8,695		$	7,452		$	8,077

PERFORMANCE RATIOS
Return on average capital		28	%		71	%		49	%
Efficiency		54	%		33	%		41	%

OTHER INFORMATION
Servicing portfolio for others (in billions) (b)	$	161		$	168
Fixed rate		87	%		87	%
Adjustable rate/balloon		13	%		13	%
Weighted average interest rate		5.94	%		5.99	%
MSR capitalized value (in billions)	$	1.5		$	1.0
MSR capitalization value (in basis points)		90			62
Weighted average servicing fee (in basis points)		30			30
Loan origination volume (in billions)	$	6.4		$	6.9		$	13.3
Percentage of originations represented by:
Agency and government programs		98	%		97	%		98	%
Refinance volume		74	%		83	%		79	%
Total nonperforming assets (b)	$	285		$	267
SOP 03-3 purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008 (b)	$	531		$	533

(a)	See note (a) on page 14.

(b)	As of period end.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 20
Global Investment Servicing (Unaudited) (a)


	*Three months ended*															*Six months ended*
*Dollars in millions, except as noted*	June 30 2009			March 31 2009			December 31 2008			September 30 2008			June 30 2008			June 30 2009			June 30 2008
INCOME STATEMENT
Servicing revenue	$	199		$	205		$	222		$	243		$	244		$	404		$	482
Operating expense		170			175			174			187			186			345			367

Operating income		29			30			48			56			58			59			115
Debt financing		3			5			8			7			8			8			19
Nonoperating income (b)		(8	)		(10	)					1			1			(18	)		2

Pretax earnings		18			15			40			50			51			33			98
Income taxes		6			5			15			16			18			11			35

Earnings	$	12		$	10		$	25		$	34		$	33		$	22		$	63

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,294		$	1,297		$	1,301		$	1,306		$	1,305
Other assets		1,589			1,182			3,977			3,195			1,301

Total assets	$	2,883		$	2,479		$	5,278		$	4,501		$	2,606

Debt financing	$	792		$	825		$	850		$	885		$	935
Other liabilities		1,388			959			3,737			2,927			1,005
Shareholder’s equity		703			695			691			689			666

Total funds	$	2,883		$	2,479		$	5,278		$	4,501		$	2,606

PERFORMANCE RATIOS
Return on average equity		7	%		6	%		14	%		20	%		20	%		6	%		20	%
Operating margin (c)		15			15			22			23			24			15			24

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions) (d)
Domestic	$	699		$	645		$	764		$	806		$	862
Offshore		75			67			75			101			126

Total	$	774		$	712		$	839		$	907		$	988

Asset type (in billions) (d)
Money market	$	341		$	345		$	431		$	387		$	400
Equity		249			199			227			308			358
Fixed income		107			99			103			116			126
Other		77			69			78			96			104

Total	$	774		$	712		$	839		$	907		$	988

Custody fund assets (in billions)	$	399		$	361		$	379		$	415		$	471

Shareholder accounts (in millions)
Transfer agency		13			13			14			17			19
Subaccounting		62			62			58			56			55

Total		75			75			72			73			74

(a)	See note (a) on page 14.

(b)	Net of nonoperating expense.

(c)	Total operating income divided by servicing revenue.

(d)	Includes alternative investment net assets serviced.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 21
Distressed Assets Portfolio (Unaudited) (a)


	*Three months ended*						*Six months ended*
*Dollars in millions, except as noted*	June 30 2009			March 31 2009			June 30 2009
INCOME STATEMENT
Net interest income	$	295		$	331		$	626
Noninterest income		39			13			52

Total revenue		334			344			678
Provision for credit losses		30			259			289
Noninterest expense		55			80			135

Pretax earnings		249			5			254
Income taxes		94			2			96

Earnings	$	155		$	3		$	158

AVERAGE BALANCE SHEET
Commercial lending:
Commercial	$	182		$	198		$	190
Commercial real estate:
Real estate projects		2,950			3,113			3,031
Commercial mortgage		112			93			102
Equipment lease financing		819			858			839

Total commercial lending		4,063			4,262			4,162
Consumer lending:
Consumer:
Home equity lines of credit		5,027			5,311			5,168
Home equity installment loans		2,041			2,542			2,291
Other consumer		15			8			11

Total consumer		7,083			7,861			7,470
Residential real estate:
Residential mortgage		5,993			6,112			6,052
Residential construction		4,773			5,073			4,922

Total residential real estate		10,766			11,185			10,974

Total consumer lending		17,849			19,046			18,444

Total portfolio loans		21,912			23,308			22,606
Other assets		1,867			1,509			1,689

Total assets	$	23,779		$	24,817		$	24,295

Deposits	$	49		$	45		$	47
Other liabilities		109			107			107
Capital		1,619			1,570			1,595

Total funds	$	1,777		$	1,722		$	1,749

OTHER INFORMATION
Nonperforming assets (b)	$	1,307		$	933
SOP 03-3 purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008 (b)	$	8,758		$	8,866
Net charge-offs	$	197		$	51		$	248
Net charge-offs as a percentage of portfolio loans (annualized)		3.61	%		.89	%		2.21	%

LOANS (in billions) (b)
Brokered home equity	$	6.9		$	7.1
Retail mortgages		5.8			6.4
Residential development		3.6			3.5
Non-prime mortgages		1.9			2.0
Completed construction		1.3			.9
Construction		.9			1.5
Cross-border leases		.8			.8

Total	$	21.2		$	22.2

(a)	See note (a) on page 14.

(b)	As of period end.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 22

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 investment 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, by the amount of that difference.

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; trading securities; interest-earning deposits with banks; other short-term investments; loans held for sale; loans; investment 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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 23

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

Fair value - The price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date using the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants.

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.

Impaired (SOP 03-3) loans - Acquired loans determined to be credit impaired under AICPA Statement of Position 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. Loans are determined to be impaired if there is evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected.

Investment securities - Collectively, securities available for sale and securities held to maturity.

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

LIBOR - Acronym for London InterBank Offered Rate. LIBOR is the average interest rate charged when banks in the London wholesale money market (or interbank market) borrow unsecured funds from each other. LIBOR rates are used as a benchmark for interest rates on a global basis.

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 and construction 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 dollar or percentage change in total revenue (GAAP basis) less the dollar or percentage change in noninterest expense. A positive variance indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative variance implies expense growth exceeded revenue growth (i.e., negative operating leverage).


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 24

Other-than-temporary impairment - When the fair value of a debt security is less than its amortized cost basis, an assessment is performed to determine whether the impairment is other-than-temporary. If we intend to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, an other-than-temporary impairment is considered to have occurred. In such cases, an other-than-temporary impairment is recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. Further, if we do not expect to recover the entire amortized cost of the security, an other-than-temporary impairment is considered to have occurred. However, if we do not intend to sell the security and it is not more likely that we will be required to sell the security before its recovery, the other-than-temporary loss is separated into (a) the amount representing the credit loss, and (b) the amount related to all other factors. The other-than-temporary impairment related to credit losses is recognized in earnings while the amount related to all other factors is recognized in other comprehensive income, net of tax.

Pretax, pre-provision earnings - Total revenue less noninterest expense.

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.

Residential development loans - Project-specific loans to commercial customers for the construction or development of residential real estate including land, single family homes, condominiums and other residential properties. This would exclude loans to commercial customers where proceeds are for general corporate purposes whether or not such facilities are secured.

Residential mortgage servicing rights hedge gains / (losses), net – We have elected to measure acquired residential mortgage servicing rights (MSRs) at fair value under SFAS 159. We employ a risk management strategy designed to protect the economic value of MSRs from changes in interest rates. This strategy utilizes securities and a portfolio of derivative instruments to hedge changes in the fair value of MSRs arising from changes in interest rates. These financial instruments are expected to have changes in fair value which are negatively correlated to the change in fair value of the MSR portfolio. Net MSR hedge gains/(losses) represent the change in the fair value of MSRs, exclusive of changes due to time decay and payoffs, combined with the change in the fair value of the associated derivative instruments.

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

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

Return on average common shareholders’ equity - Annualized net income less preferred stock dividends, including preferred stock discount accretion, 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.

Servicing rights – An intangible asset or liability created by an obligation to service assets for others. Typical servicing rights include the right to receive a fee for collecting and forwarding payments on loans and related taxes and insurance premiums held in escrow.

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 use interest income on a taxable-equivalent basis in calculating average yields and net interest margins 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 PNC FINANCIAL SERVICES GROUP, INC.		Page 25

Tier 1 common capital - Tier 1 risk-based capital, less preferred equity, less trust preferred capital securities, and less noncontrolling interests.

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

Tier 1 risk-based capital - Total shareholders’ equity, plus trust preferred capital securities, plus certain noncontrolling interests that are held by others; less goodwill and certain other intangible assets (net of eligible deferred taxes relating to taxable and nontaxable combinations), less equity investments in nonfinancial companies less ineligible servicing assets 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 equity - Total shareholders’ equity less noncontrolling interests.

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 risk-based capital - Tier 1 risk-based capital plus qualifying subordinated debt and trust preferred securities, other noncontrolling interest not qualified as Tier 1, eligible gains on available for sale equity securities 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.