Financial Supplement

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2010

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2010

(UNAUDITED)


		Page
Consolidated Results:
Income Statement		1
Balance Sheet		2
Capital Ratios		2
Average Balance Sheet		3-4
Net Interest Margin		5
Loans and Loans Held for Sale		6
Accretion		7
Accruing Loans Past Due		8
Allowances for Credit Losses		9
Net Unfunded Commitments		9
Nonperforming Assets		10-11
Business Segment Results:
Business Segment Descriptions		12
Summary of Earnings and Revenue		13
Period-end Employees		13
Retail Banking		14-15
Corporate & Institutional Banking		16
Asset Management Group		17
Residential Mortgage Banking		18
Distressed Assets Portfolio		19
Glossary of Terms		20-23

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 22, 2010. 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.

BUSINESS

PNC is one of the largest diversified financial services companies in the United States and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing many of its products and services nationally and others in PNC’s primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Virginia, Missouri, Delaware, Washington, D.C., and Wisconsin. PNC also provides certain products and services internationally.

SALE OF PNC GLOBAL INVESTMENT SERVICING

On July 1, 2010, we sold PNC Global Investment Servicing Inc. (GIS), a leading provider of processing, technology and business intelligence services to asset managers, broker-dealers and financial advisors worldwide, for $2.3 billion in cash pursuant to a definitive agreement entered into on February 2, 2010. The estimated gain related to this sale was $335 million after-tax and is expected to improve Tier 1 risk-based and Tier 1 common capital ratios by approximately 60 basis points each. Results of operations of GIS are presented as income from discontinued operations, net of income taxes, on our Consolidated Income Statement for all periods presented. Once we entered into the sales agreement, GIS was no longer a reportable business segment.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)


	Three months ended															Six months ended
In millions, except per share data	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009			June 30 2010			June 30 2009
Interest Income
Loans	$	2,158		$	2,160		$	2,160		$	2,091		$	2,203		$	4,318		$	4,668
Investment securities		572			623			643			684			672			1,195			1,361
Other		143			122			136			113			125			265			230

Total interest income		2,873			2,905			2,939			2,888			3,000			5,778			6,259

Interest Expense
Deposits		244			281			334			387			474			525			1,020
Borrowed funds		194			245			259			277			333			439			726

Total interest expense		438			526			593			664			807			964			1,746

Net interest income		2,435			2,379			2,346			2,224			2,193			4,814			4,513

Noninterest Income
Asset management		243			259			219			242			208			502			397
Consumer services		315			296			315			330			329			611			645
Corporate services		261			268			260			252			264			529			509
Residential mortgage		179			147			107			207			245			326			676
Service charges on deposits		209			200			236			248			242			409			466
Net gains on sales of securities		147			90			144			168			182			237			238
Net other-than-temporary impairments		(94	)		(116	)		(144	)		(129	)		(155	)		(210	)		(304	)
Gain on BlackRock/BGI transaction (a)								1,076
Other		217			240			327			311			295			457			349

Total noninterest income		1,477			1,384			2,540			1,629			1,610			2,861			2,976

Total revenue		3,912			3,763			4,886			3,853			3,803			7,675			7,489
Provision For Credit Losses		823			751			1,049			914			1,087			1,574			1,967
Noninterest Expense
Personnel		959			956			969			1,068			1,086			1,915			2,082
Occupancy		172			187			180			172			182			359			361
Equipment		168			172			173			170			174			340			352
Marketing		65			50			59			58			59			115			116
Other		638			748			828			746			991			1,386			1,739

Total noninterest expense		2,002			2,113			2,209			2,214			2,492			4,115			4,650

Income from continuing operations before income taxes and noncontrolling interests		1,087			899			1,628			725			224			1,986			872
Income taxes		306			251			525			185			29			557			157

Income from continuing operations before noncontrolling interests		781			648			1,103			540			195			1,429			715
Income from discontinued operations (net of income taxes of $13, $14, $32, $11, $6, $27, and $11)		22			23			4			19			12			45			22

Net income		803			671			1,107			559			207			1,474			737

Less: Net income (loss) attributable to noncontrolling interests		(9	)		(5	)		(37	)		(20	)		9			(14	)		13
Preferred stock dividends		25			93			119			99			119			118			170
Preferred stock discount accretion		1			250			14			13			14			251			29

Net income attributable to common shareholders	$	786		$	333		$	1,011		$	467		$	65		$	1,119		$	525

Basic Earnings Per Common Share
Continuing operations	$	1.45		$	.62		$	2.18		$	.97		$	.11		$	2.09		$	1.12
Discontinued operations		.04			.05			.01			.04			.03			.09			.05

Net income	$	1.49		$	.67		$	2.19		$	1.01		$	.14		$	2.18		$	1.17
Diluted Earnings Per Common Share
Continuing operations	$	1.43		$	.61		$	2.16		$	.96		$	.11		$	2.06		$	1.11
Discontinued operations		.04			.05			.01			.04			.03			.09			.05

Net income	$	1.47		$	.66		$	2.17		$	1.00		$	.14		$	2.15		$	1.16
Average Common Shares Outstanding
Basic		524			498			460			460			451			511			447
Diluted		527			500			462			461			453			514			448

Efficiency		51	%		56	%		45	%		57	%		66	%		54	%		62	%
Noninterest income to total revenue		38	%		37	%		52	%		42	%		42	%		37	%		40	%
Effective tax rate (b)		28.2	%		27.9	%		32.2	%		25.5	%		12.9	%		28.0	%		18.0	%

(a)

The after-tax impact to net income was $687 million for the fourth quarter of 2009. The earnings per diluted share impact was $1.49 for the fourth quarter of 2009. BlackRock/BGI transaction refers to BlackRock’s acquisition of Barclays Global Investors in exchange for cash and BlackRock common and participating preferred stock on December 1, 2009.

(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 2009 resulted from the gain on the BlackRock/BGI transaction.

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


In millions, except par value	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009
Assets
Cash and due from banks (a)	$	3,558		$	3,563		$	4,288		$	3,426		$	3,797
Federal funds sold and resale agreements (b)		2,209			1,367			2,390			2,427			1,814
Trading securities		882			1,595			2,124			2,075			1,925
Interest-earning deposits with banks (a)		5,028			607			4,488			1,129			10,190
Loans held for sale (b)		2,756			2,691			2,539			3,509			4,662
Investment securities (a)		53,717			57,606			56,027			54,413			49,969
Loans (a) (b)		154,342			157,266			157,543			160,608			165,009
Allowance for loan and lease losses (a)		(5,336	)		(5,319	)		(5,072	)		(4,810	)		(4,569	)

Net loans		149,006			151,947			152,471			155,798			160,440
Goodwill		9,410			9,425			9,505			9,286			9,206
Other intangible assets		2,728			3,289			3,404			3,448			3,684
Equity investments (a)		10,159			10,256			10,254			8,684			8,168
Other (a) (b)		22,242			23,050			22,373			27,212			25,899

Total assets	$	261,695		$	265,396		$	269,863		$	271,407		$	279,754


Liabilities
Deposits
Noninterest-bearing	$	44,312		$	43,122		$	44,384		$	43,025		$	41,806
Interest-bearing		134,487			139,401			142,538			140,784			148,633

Total deposits		178,799			182,523			186,922			183,809			190,439
Borrowed funds
Federal funds purchased and repurchase agreements		3,690			5,511			3,998			3,996			3,921
Federal Home Loan Bank borrowings		8,119			8,700			10,761			11,953			14,777
Bank notes and senior debt		12,617			12,638			12,362			12,424			13,292
Subordinated debt		10,184			10,001			9,907			10,501			10,383
Other (a)		5,817			5,611			2,233			3,036			2,308

Total borrowed funds		40,427			42,461			39,261			41,910			44,681
Allowance for unfunded loan commitments and letters of credit		218			252			296			324			319
Accrued expenses (a)		2,757			2,939			3,590			3,592			3,651
Other (a)		8,504			7,787			7,227			10,109			11,197

Total liabilities		230,705			235,962			237,296			239,744			250,287


Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800 shares, issued 535, 535, 471, 469, and 468 shares		2,678			2,676			2,354			2,348			2,342
Capital surplus - preferred stock		646			645			7,974			7,960			7,947
Capital surplus - common stock and other		11,979			11,945			8,945			8,860			8,783
Retained earnings		14,073			13,340			13,144			12,179			11,758
Accumulated other comprehensive loss		(442	)		(1,288	)		(1,962	)		(1,947	)		(3,101	)
Common stock held in treasury at cost: 10, 9, 9, 8, and 7 shares		(557	)		(500	)		(513	)		(472	)		(435	)

Total shareholders’ equity		28,377			26,818			29,942			28,928			27,294
Noncontrolling interests		2,613			2,616			2,625			2,735			2,173

Total equity		30,990			29,434			32,567			31,663			29,467

Total liabilities and equity	$	261,695		$	265,396		$	269,863		$	271,407		$	279,754

Capital Ratios
Tier 1 risk-based (d)		10.8	%		10.3	%		11.4	%		10.9	%		10.5	%
Tier 1 common (d)		8.4			7.9			6.0			5.5			5.3
Total risk-based (d)		14.4			13.9			15.0			14.5			14.1
Leverage (d)		9.2			8.8			10.1			9.6			9.1
Common shareholders’ equity to assets		10.6			10.0			8.2			7.7			6.9

(a)

Amounts include consolidated variable interest entities. Some June 30, 2010 and March 31, 2010 amounts include consolidated variable interest entities that we consolidated effective January 1, 2010 based on guidance in ASC 810, Consolidation. Our second quarter 2010 Form 10-Q will include additional information regarding these Consolidated Balance Sheet line items.

(b)	Amounts include items for which PNC has elected the fair value option. Our second quarter 2010 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)	The ratio as of June 30, 2010 is estimated.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


	Three months ended															Six months ended
In millions	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009			June 30 2010			June 30 2009
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	20,382		$	21,926		$	22,663		$	20,838		$	21,007		$	21,150		$	22,030
Non-agency		9,358			10,213			10,788			11,553			12,520			9,783			12,828
Commercial mortgage-backed		2,962			5,357			5,053			5,052			4,624			4,153			4,439
Asset-backed		1,695			1,992			1,927			1,911			1,985			1,843			2,008
US Treasury and government agencies		8,708			7,493			6,403			6,026			4,185			8,104			2,711
State and municipal		1,356			1,365			1,346			1,367			1,366			1,360			1,351
Other debt		2,526			1,874			1,948			1,647			1,012			2,202			849
Corporate stocks and other		446			457			362			388			386			451			422

Total securities available for sale		47,433			50,677			50,490			48,782			47,085			49,046			46,638
Securities held to maturity
Commercial mortgage-backed		4,264			2,110			2,006			1,987			2,004			3,193			1,983
Asset-backed		3,697			3,665			2,849			2,197			1,847			3,681			1,640
Other		21			160			159			102			9			90			9

Total securities held to maturity		7,982			5,935			5,014			4,286			3,860			6,964			3,632

Total investment securities		55,415			56,612			55,504			53,068			50,945			56,010			50,270

Loans
Commercial		54,349			55,464			55,633			58,457			63,570			54,903			65,391
Commercial real estate		20,963			22,423			23,592			24,491			25,418			21,689			25,519
Equipment lease financing		6,080			6,131			6,164			6,045			6,191			6,105			6,298
Consumer		54,939			55,349			52,911			52,066			51,878			55,143			52,246
Residential mortgage		18,576			19,397			19,891			20,847			21,831			18,985			21,876

Total loans		154,907			158,764			158,191			161,906			168,888			156,825			171,330
Loans held for sale		2,646			2,476			2,949			3,696			4,757			2,561			4,640
Federal funds sold and resale agreements		2,193			1,669			1,700			2,417			1,726			1,933			1,668
Other		9,419			7,471			12,654			14,607			16,870			8,450			15,804

Total interest-earning assets		224,580			226,992			230,998			235,694			243,186			225,779			243,712
Noninterest-earning assets:
Allowance for loan and lease losses		(5,113	)		(5,136	)		(4,517	)		(4,264	)		(4,385	)		(5,124	)		(4,240	)
Cash and due from banks		3,595			3,735			3,657			3,547			3,558			3,664			3,694
Other		41,304			41,557			41,740			39,071			38,496			41,430			37,687

Total assets	$	264,366		$	267,148		$	271,878		$	274,048		$	280,855		$	265,749		$	280,853

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


	Three months ended										Six months ended
In millions	June 30 2010		March 31 2010		December 31 2009		September 30 2009		June 30 2009		June 30 2010		June 30 2009
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	58,679	$	57,923	$	56,298	$	56,662	$	55,464	$	58,303	$	54,153
Demand		24,953		24,672		24,223		23,874		23,629		24,814		22,897
Savings		7,075		6,623		6,381		6,652		6,678		6,850		6,473
Retail certificates of deposit		43,745		47,162		49,645		53,468		57,357		45,444		57,662
Other time		881		1,039		1,389		2,841		5,259		959		7,950
Time deposits in foreign offices		2,661		3,034		4,013		3,356		3,348		2,847		3,588

Total interest-bearing deposits		137,994		140,453		141,949		146,853		151,735		139,217		152,723
Borrowed funds
Federal funds purchased and repurchase agreements		4,159		4,344		4,046		4,422		4,283		4,251		4,647
Federal Home Loan Bank borrowings		8,575		9,603		10,880		12,996		15,818		9,086		16,454
Bank notes and senior debt		12,666		12,616		12,327		12,542		13,688		12,641		13,537
Subordinated debt		9,764		9,769		9,879		10,214		10,239		9,767		10,339
Other		6,005		5,934		2,448		2,806		2,170		5,969		2,057

Total borrowed funds		41,169		42,266		39,580		42,980		46,198		41,714		47,034

Total interest-bearing liabilities		179,163		182,719		181,529		189,833		197,933		180,931		199,757
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		44,308		42,631		44,325		41,816		40,965		43,474		39,734
Allowance for unfunded loan commitments and letters of credit		251		295		324		319		328		273		336
Accrued expenses and other liabilities		10,446		10,401		13,353		11,489		11,990		10,424		11,931
Equity		30,198		31,102		32,347		30,591		29,639		30,647		29,095

Total liabilities and equity	$	264,366	$	267,148	$	271,878	$	274,048	$	280,855	$	265,749	$	280,853


Supplemental Average Balance Sheet Information (Unaudited)

Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	137,994	$	140,453	$	141,949	$	146,853	$	151,735	$	139,217	$	152,723
Noninterest-bearing deposits		44,308		42,631		44,325		41,816		40,965		43,474		39,734

Total deposits	$	182,302	$	183,084	$	186,274	$	188,669	$	192,700	$	182,691	$	192,457
Transaction deposits	$	127,940	$	125,226	$	124,846	$	122,352	$	120,058	$	126,591	$	116,784
Common shareholders’ equity	$	27,054	$	24,764	$	21,726	$	20,391	$	19,527	$	25,821	$	18,969

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Margin (Unaudited) (a)


	Three months ended
	June 30 2010		March 31 2010		December 31 2009		September 30 2009		June 30 2009
Average yields/rates
Yield on interest-earning assets
Loans	5.58	%	5.50	%	5.42	%	5.12	%	5.22	%
Investment securities	4.17		4.44		4.67		5.20		5.32
Other	3.98		4.26		3.17		2.18		2.14
Total yield on interest-earning assets	5.13		5.17		5.07		4.88		4.94
Rate on interest-bearing liabilities
Deposits	.71		.81		.93		1.04		1.25
Borrowed funds	1.88		2.33		2.60		2.57		2.97
Total rate on interest-bearing liabilities	.98		1.16		1.30		1.39		1.65

Interest rate spread	4.15		4.01		3.77		3.49		3.29
Impact of noninterest-bearing sources	.20		.23		.28		.27		.31

Net interest margin	4.35	%	4.24	%	4.05	%	3.76	%	3.60	%



	Six months ended
	June 30 2010		June 30 2009
Average yields/rates
Yield on interest-earning assets
Loans	5.54	%	5.47	%
Investment securities	4.31		5.45
Other	4.11		2.12
Total yield on interest-earning assets	5.15		5.16
Rate on interest-bearing liabilities
Deposits	.76		1.35
Borrowed funds	2.11		3.20
Total rate on interest-bearing liabilities	1.07		1.78

Interest rate spread	4.08		3.38
Impact of noninterest-bearing sources	.21		.32

Net interest margin	4.29	%	3.70	%

(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 three months ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009, and June 30, 2009 were $19 million, $18 million, $18 million, $16 million, and $16 million, respectively. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2010 and June 30, 2009 were $37 million and $31 million, respectively.

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans (Unaudited)


In millions	June 30 2010		March 31 2010		December 31 2009		September 30 2009		June 30 2009
Commercial
Retail/wholesale	$	9,576	$	9,557	$	9,515	$	9,404	$	10,141
Manufacturing		9,728		9,863		9,880		10,639		11,595
Service providers		8,289		8,528		8,256		8,364		8,491
Real estate related (a)		7,269		7,379		7,403		7,854		8,346
Financial services		4,302		4,654		3,874		4,422		5,078
Health care		3,099		2,998		2,970		2,888		3,045
Other		11,969		11,724		12,920		13,357		13,898

Total commercial		54,232		54,703		54,818		56,928		60,594

Commercial real estate
Real estate projects		13,914		14,535		15,582		16,112		16,542
Commercial mortgage		6,450		7,415		7,549		7,952		8,323

Total commercial real estate		20,364		21,950		23,131		24,064		24,865

Equipment lease financing		6,630		6,111		6,202		6,283		6,092

TOTAL COMMERCIAL LENDING		81,226		82,764		84,151		87,275		91,551

Consumer
Home equity
Lines of credit		23,901		24,040		24,236		24,272		24,373
Installment		11,060		11,390		11,711		12,098		12,346
Education		8,867		8,320		7,468		6,370		5,340
Automobile		2,697		2,206		2,013		1,988		1,784
Credit card and other unsecured lines of credit		4,920		4,962		3,536		3,533		3,261
Other		3,834		4,316		4,618		4,614		4,833

Total consumer		55,279		55,234		53,582		52,875		51,937

Residential real estate
Residential mortgage		16,618		17,599		18,190		18,469		19,342
Residential construction		1,219		1,669		1,620		1,989		2,179

Total residential real estate		17,837		19,268		19,810		20,458		21,521

TOTAL CONSUMER LENDING		73,116		74,502		73,392		73,333		73,458

Total (b)	$	154,342	$	157,266	$	157,543	$	160,608	$	165,009

(a) Includes loans to customers in the real estate and construction industries.
(b) Includes purchased impaired loans related to National City	$	9,127	$	9,673	$	10,287	$	11,064	$	12,289

Details of Loans Held for Sale (Unaudited)

In millions	June 30 2010		March 31 2010		December 31 2009		September 30 2009		June 30 2009
Commercial mortgage	$	1,239	$	1,316	$	1,301	$	1,810	$	1,531
Residential mortgage		1,336		1,158		1,012		1,552		2,886
Other		181		217		226		147		245

Total	$	2,756	$	2,691	$	2,539	$	3,509	$	4,662

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

Purchase Accounting Accretion and Accretable Interest (Unaudited)

VALUATION OF PURCHASED IMPAIRED LOANS


	December 31, 2008					December 31, 2009					June 30, 2010
Dollars in billions	Balance			Net Investment		Balance			Net Investment		Balance			Net Investment
Commercial and commercial real estate loans:
Unpaid principal balance	$	6.3				$	3.5				$	2.3
Purchased impaired mark		(3.4	)				(1.3	)				(0.7	)

Recorded investment		2.9					2.2					1.6
Allowance for loan losses		—					(.2	)				(.4	)

Net investment		2.9		46	%		2.0		57	%		1.2		52	%

Consumer and residential mortgage loans:
Unpaid principal balance		15.6					11.7					10.1
Purchased impaired mark		(5.8	)				(3.6	)				(2.6	)

Recorded investment		9.8					8.1					7.5
Allowance for loan losses		—					(.3	)				(.5	)

Net investment		9.8		63	%		7.8		67	%		7.0		69	%


Total purchased impaired loans:
Unpaid principal balance		21.9					15.2					12.4
Purchased impaired mark		(9.2	)				(4.9	)				(3.3	)

Recorded investment		12.7					10.3					9.1
Allowance for loan losses		—					(.5	)				(.9	) (a)

Net investment	$	12.7		58	%	$	9.8		64	%	$	8.2		66	%

PURCHASE ACCOUNTING ACCRETION


	Three months ended
In millions	March 31 2009			June 30 2009			September 30 2009			December 31 2009			March 31 2010			June 30 2010
Non-impaired loans	$	322		$	168		$	172		$	111		$	112		$	111
Impaired loans		257			220			193			244			265			258
Reversal of contractual interest on impaired loans		(223	)		(194	)		(167	)		(168	)		(134	)		(136	)

Net impaired loans		34			26			26			76			131			122
Securities		31			41			25			21			11			13
Deposits		312			264			231			189			167			144
Borrowings (b)		(85	)		(52	)		(58	)		(55	)		(56	)		(14	)

Total	$	614		$	447		$	396		$	342		$	365		$	376


Cash received in excess of recorded investment from sales or payoffs of impaired commercial loans (cash recoveries)				$	39		$	11		$	154		$	75		$	164

REMAINING PURCHASE ACCOUNTING ACCRETION


In billions	December 31 2008			December 31 2009			June 30 2010
Non-impaired loans	$	2.4		$	1.6		$	1.4
Impaired loans (c)		3.7			3.5			2.3

Total loans (gross)		6.1			5.1			3.7
Securities		.2			.1			.1
Deposits		2.1			1.0			.7
Borrowings		(1.5	)		(1.2	)		(1.2	)

Total	$	6.9		$	5.0		$	3.3

ACCRETABLE NET INTEREST - PURCHASED IMPAIRED LOANS


In billions				In billions
December 31, 2009	$	3.5		December 31, 2008	$	3.7
Accretion		(.5	)	Accretion		(1.4	)
Cash recoveries		(.2	)	Cash recoveries		(.4	)
Net reclass to accretable difference and other activity		(.5	)	Net reclass to accretable difference and other activity		.4

June 30, 2010	$	2.3		June 30, 2010	$	2.3

(a)	Impairment reserves of $.9 billion do not recognize the incremental accretable net interest of $.4 billion related to certain purchased impaired loans with improving estimated cash flows. This income will be recognized over time.

(b)	Interest expense on borrowed funds for the second quarter of 2010 included a reduction associated with refinement of the accretion related to acquired debt.

(c)

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

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THE PNC FINANCIAL SERVICES GROUP, INC.

Accruing Loans Past Due (Unaudited)

Accruing Loans Past Due 30 To 89 Days (a)


	Amount										Percent of Total Outstandings
Dollars in millions	June 30 2010		March 31 2010		Dec. 31 2009		Sept. 30 2009		June 30 2009		June 30 2009		March 31 2010		Dec. 31 2009		Sept. 30 2009		June 30 2009
Commercial	$	478	$	622	$	684	$	633	$	640	.89	%	1.15	%	1.26	%	1.13	%	1.07	%
Commercial real estate		536		859		666		743		654	2.81		4.19		3.10		3.34		2.85
Equipment lease financing		21		97		128		50		52	.32		1.59		2.06		.80		.85
Consumer		422		440		438		444		401	.81		.85		.87		.90		.83
Residential real estate		323		464		472		510		448	2.38		3.14		3.12		3.29		2.83

Total	$	1,780	$	2,482	$	2,388	$	2,380	$	2,195	1.23	%	1.68	%	1.62	%	1.59	%	1.44	%


Accruing Loans Past Due 90 Days Or More (a)

	Amount										Percent of Total Outstandings
Dollars in millions	June 30 2010		March 31 2010		Dec. 31 2009		Sept. 30 2009		June 30 2009		June 30 2009		March 31 2010		Dec. 31 2009		Sept. 30 2009		June 30 2009
Commercial	$	92	$	201	$	188	$	196	$	153	.17	%	.37	%	.35	%	.35	%	.26	%
Commercial real estate		84		111		150		184		104	.44		.54		.70		.83		.45
Equipment lease financing		4		2		6		3		6	.06		.03		.10		.05		.10
Consumer		267		248		226		216		198	.51		.48		.45		.44		.41
Residential real estate		200		284		314		276		582	1.47		1.92		2.07		1.78		3.68

Total	$	647	$	846	$	884	$	875	$	1,043	.45	%	.57	%	.60	%	.59	%	.68	%

(a)	Excludes loans that are government insured/guaranteed, primarily residential mortgages and purchased impaired loans.

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit, and

Net Unfunded Commitments (Unaudited)

Change in Allowance for Loan and Lease Losses


Three months ended - in millions	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009
Beginning balance	$	5,319		$	5,072		$	4,810		$	4,569		$	4,299
Charge-offs:
Commercial		(313	)		(273	)		(380	)		(323	)		(364	)
Commercial real estate		(149	)		(238	)		(260	)		(20	)		(124	)
Equipment lease financing		(43	)		(36	)		(34	)		(42	)		(50	)
Consumer		(283	)		(242	)		(267	)		(257	)		(289	)
Residential real estate		(197	)		(38	)		(83	)		(96	)		(54	)

Total charge-offs		(985	)		(827	)		(1,024	)		(738	)		(881	)
Recoveries:
Commercial		16			65			87			42			36
Commercial real estate		72			33			15			8			10
Equipment lease financing		13			12			10			7			5
Consumer		31			26			27			23			28
Residential real estate		13						50			8			7

Total recoveries		145			136			189			88			86
Net charge-offs:
Commercial		(297	)		(208	)		(293	)		(281	)		(328	)
Commercial real estate		(77	)		(205	)		(245	)		(12	)		(114	)
Equipment lease financing		(30	)		(24	)		(24	)		(35	)		(45	)
Consumer		(252	)		(216	)		(240	)		(234	)		(261	)
Residential real estate		(184	)		(38	)		(33	)		(88	)		(47	)

Total net charge-offs		(840	)		(691	)		(835	)		(650	)		(795	)
Provision for credit losses		823			751			1,049			914			1,087
Acquired allowance adjustments (a)					2			20			(18	)		(31	)
Adoption of ASU 2009-17, Consolidations					141
Net change in allowance for unfunded loan commitments and letters of credit		34			44			28			(5	)		9

Ending balance	$	5,336		$	5,319		$	5,072		$	4,810		$	4,569

Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		2.18	%		1.77	%		2.09	%		1.59	%		1.89	%
Allowance for loan and lease losses to total loans		3.46			3.38			3.22			2.99			2.77

Commercial lending net charge-offs	$	(404	)	$	(437	)	$	(562	)	$	(328	)	$	(487	)
Consumer lending net charge-offs		(436	)		(254	)		(273	)		(322	)		(308	)

Total net charge-offs	$	(840	)	$	(691	)	$	(835	)	$	(650	)	$	(795	)

Net charge-offs to average loans
Commercial lending		1.99	%		2.11	%		2.61	%		1.46	%		2.05	%
Consumer lending		2.38			1.38			1.49			1.75			1.68

(a) Related to our December 31, 2008 National City acquisition.
Change in Allowance for Unfunded Loan Commitments and Letters of Credit

Three months ended - in millions	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009
Beginning balance	$	252		$	296		$	324		$	319		$	328
Net change in allowance for unfunded loan commitments and letters of credit		(34	)		(44	)		(28	)		5			(9	)

Ending balance	$	218		$	252		$	296		$	324		$	319

Net Unfunded Commitments
In millions	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009
Net unfunded commitments	$	95,775		$	96,363		$	100,795		$	102,669		$	103,058

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


In millions	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009
Nonperforming loans
Commercial
Retail/wholesale	$	242		$	246		$	231		$	219		$	171
Manufacturing		312			341			423			387			410
Real estate related (a)		405			460			419			396			322
Financial services		60			77			117			200			58
Health care		55			48			41			48			89
Other		619			661			575			580			400

Total commercial		1,693			1,833			1,806			1,830			1,450

Commercial real estate
Real estate projects		1,661			1,797			1,754			1,637			1,426
Commercial mortgage		420			419			386			235			230

Total commercial real estate		2,081			2,216			2,140			1,872			1,656

Equipment lease financing		114			123			130			164			120

TOTAL COMMERCIAL LENDING		3,888			4,172			4,076			3,866			3,226

Consumer
Home equity		394			337			356			207			164
Other		46			35			36			25			34

Total consumer		440			372			392			232			198
Residential real estate
Residential mortgage		838			968			955			790			663
Residential construction		115			249			248			238			69

Total residential real estate		953			1,217			1,203			1,028			732

TOTAL CONSUMER LENDING		1,393			1,589			1,595			1,260			930

Total nonperforming loans (b) (c) (d) (e)		5,281			5,761			5,671			5,126			4,156

Foreclosed and other assets
Commercial lending		293			328			266			145			113
Consumer lending		501			451			379			373			387

Total foreclosed and other assets		794			779			645			518			500

Total nonperforming assets	$	6,075		$	6,540		$	6,316		$	5,644		$	4,656

Nonperforming loans to total loans		3.42	%		3.66	%		3.60	%		3.19	%		2.52	%
Nonperforming assets to total loans and foreclosed and other assets		3.92			4.14			3.99			3.50			2.81
Nonperforming assets to total assets		2.32			2.46			2.34			2.08			1.66
Allowance for loan and lease losses to nonperforming loans (f)		101			92			89			94			110

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

(b)

Loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties where we do not receive adequate compensation are considered troubled debt restructurings (TDRs). TDRs typically result from our loss mitigation activities and could include rate reductions, principal forgiveness, forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Total nonperforming loans include TDRs of $490 million at June 30, 2010, $385 million at March 31, 2010 and $440 million at December 31, 2009.

(c)	TDRs returned to performing (accrual) status totaled $341 million at June 30, 2010 and are excluded from nonperforming loans. These loans have demonstrated a period of at least six months of performance under the modified terms.

(d)

Credit cards and certain small business and consumer credit agreements whose terms have been modified totaled $290 million at June 30, 2010 and are excluded from nonperforming loans. Our policy is to exempt these loans from being placed on nonaccrual status as permitted by regulatory guidance as these loans are directly charged off in the period that they become 180 days past due.

(e)	Nonperforming loans do not include purchased impaired loans or loans held for sale.

(f)	The allowance for loan and lease losses includes impairment reserves attributable to purchased impaired loans. See page 7, note (a).

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Change in Nonperforming Assets


In millions	January 1, 2010 June 30, 2010			April 1, 2010 June 30, 2010			January 1, 2010 March 31, 2010
Beginning Balance	$	6,316		$	6,540		$	6,316
Transferred in		2,739			965			1,774
Charge-offs/valuation adjustments		(1,152	)		(532	)		(620	)
Principal activity including payoffs		(505	)		(227	)		(278	)
Returned to performing - TDRs		(342	)		(125	)		(217	)
Returned to performing - Other		(457	)		(287	)		(170	)
Sales		(524	)		(259	)		(265	)

Ending Balance	$	6,075		$	6,075		$	6,540

Largest Individual Nonperforming Assets at June 30, 2010 (a)


In millions
Ranking	Outstandings		Industry
1	$	32	Real estate rental and leasing
2		31	Real estate rental and leasing
3		30	Construction
4		27	Information
5		27	Real estate rental and leasing
6		27	Real estate rental and leasing
7		25	Construction
8		24	Real estate rental and leasing
9		23	Real estate rental and leasing
10		23	Construction

Total	$	269

As a percent of total nonperforming assets				4	%

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

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

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, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Virginia, Missouri, Delaware, Washington, D.C., and Wisconsin.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government and not-for-profit 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, our multi-seller conduit, 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 clients and institutional asset management. Wealth management products and services include financial planning, customized investment management, private banking, tailored credit solutions and trust management and administration for individuals and their families. Institutional asset management provides investment management, custody, and retirement planning services. The institutional clients include corporations, foundations and unions and charitable endowments located primarily in our geographic footprint.

Residential Mortgage Banking directly originates primarily 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. These loans are typically underwritten to government agency and/or third party standards, and sold, servicing retained, to primary mortgage conduits Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Home Loan Banks and third-party investors, or are securitized and issued under the Government National Mortgage Association (Ginnie Mae) program. The mortgage servicing operation performs all functions related to servicing mortgage loans - primarily those in first lien position - for various investors and for loans owned by PNC. Certain loans originated through our joint ventures are serviced by a joint venture partner.

BlackRock is the largest publicly traded investment management firm in the world. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, multi-asset class, alternative and cash management separate accounts and funds, including iShares, the global product leader in exchange traded funds. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services globally to a broad base of clients. At June 30, 2010, our share of BlackRock’s earnings was 23%.

Distressed Assets Portfolio includes commercial residential development loans, cross-border leases, consumer brokered home equity loans, retail mortgages, non-prime mortgages, and residential construction loans. These loans require special servicing and management oversight given current market conditions. The majority of these loans are from acquisitions, primarily National City.

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Segment Earnings and Revenue (Unaudited) (a) (b)


	Three months ended													Six months ended
In millions	June 30 2010			March 31 2010		December 31 2009			September 30 2009		June 30 2009			June 30 2010			June 30 2009
Earnings (Loss)
Retail Banking	$	85		$	24	$	(25	)	$	50	$	61		$	109		$	111
Corporate & Institutional Banking		443			360		415			309		107			803			466
Asset Management Group		29			39		23			35		8			68			47
Residential Mortgage Banking		92			82		25			91		92			174			319
Distressed Assets Portfolio		(86	)		72		(88	)		14		155			(14	)		158
Other, including BlackRock (b) (c) (d)		218			71		753			41		(228	)		289			(386	)

Earnings from continuing operations before noncontrolling interests	$	781		$	648	$	1,103		$	540	$	195		$	1,429		$	715


Revenue
Retail Banking	$	1,395		$	1,359	$	1,379		$	1,434	$	1,467		$	2,754		$	2,908
Corporate & Institutional Banking		1,219			1,248		1,377			1,316		1,283			2,467			2,573
Asset Management Group		220			228		218			225		226			448			476
Residential Mortgage Banking		255			234		176			292		332			489			860
Distressed Assets Portfolio		338			337		221			254		334			675			678
Other, including BlackRock (b) (c) (d)		485			357		1,515			332		161			842			(6	)

Revenue from continuing operations	$	3,912		$	3,763	$	4,886		$	3,853	$	3,803		$	7,675		$	7,489

(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 business and management structure change. Certain prior period amounts have been reclassified to reflect current methodologies and our current business and management structure. Amounts are presented on a continuing operations basis and therefore exclude the earnings and revenue attributable to GIS.

(b)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our second quarter 2010 Form 10-Q will include additional information regarding BlackRock.

(c)

Includes earnings and gains or losses related to PNC’s equity interest in BlackRock, integration costs, asset and liability management activities including net securities gains or losses, other than temporary impairment of debt securities 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.

(d)	The $1.076 billion gain ($687 million after-tax) related to BlackRock’s acquisition of BGI was included in this business segment for the fourth quarter of 2009.


	June 30 2010	March 31 2010	December 31 2009	September 30 2009	June 30 2009
Period-end Employees
Full-time employees
Retail Banking	21,380	21,522	21,416	21,644	22,102
Corporate & Institutional Banking	3,601	3,760	3,746	3,861	4,038
Asset Management Group	2,951	2,986	2,960	3,067	3,150
Residential Mortgage Banking	3,348	3,340	3,267	3,606	3,693
Distressed Assets Portfolio	179	178	175	157	131
Other
Operations & Technology	8,970	9,284	9,275	9,400	9,350
Staff Services and Other (e)	9,061	9,043	8,922	8,794	8,898

Total Other	18,031	18,327	18,197	18,194	18,248

Total full-time employees	49,490	50,113	49,761	50,529	51,362

Retail Banking part-time employees	4,790	4,798	4,737	4,859	5,199
Other part-time employees	1,104	1,187	1,322	1,520	1,509

Total part-time employees	5,894	5,985	6,059	6,379	6,708

Total	55,384	56,098	55,820	56,908	58,070

The period end employee statistics reflect staff directly employed by the respective business and exclude operations, technology and staff services employees.

(e)	Includes employees of GIS.

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions	June 30 2010 (b) (c)			March 31 2010 (b) (c)			December 31 2009 (b)			September 30 2009 (b)			June 30 2009			June 30 2010 (b) (c)			June 30 2009
INCOME STATEMENT
Net interest income	$	887		$	871		$	833		$	865		$	903		$	1,758		$	1,824
Noninterest income
Service charges on deposits		204			195			229			244			237			399			457
Brokerage		55			53			59			63			62			108			123
Consumer services		223			208			224			227			227			431			435
Other		26			32			34			35			38			58			69

Total noninterest income		508			488			546			569			564			996			1,084

Total revenue		1,395			1,359			1,379			1,434			1,467			2,754			2,908
Provision for credit losses		280			339			409			313			304			619			608
Noninterest expense		994			975			1,011			1,040			1,065			1,969			2,118

Pretax earnings (loss)		121			45			(41	)		81			98			166			182
Income taxes (benefit)		36			21			(16	)		31			37			57			71

Earnings (loss)	$	85		$	24		$	(25	)	$	50		$	61		$	109		$	111

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	26,510		$	26,821		$	27,107		$	27,379		$	27,493		$	26,665		$	27,565
Indirect		3,944			3,973			3,998			3,989			4,040			3,959			4,080
Education		8,342			8,060			6,656			5,742			5,199			8,202			5,041
Credit cards		3,948			4,079			2,503			2,174			2,162			4,013			2,137
Other		1,776			1,793			1,790			1,785			1,731			1,784			1,795

Total consumer		44,520			44,726			42,054			41,069			40,625			44,623			40,618
Commercial and commercial real estate		11,312			11,487			11,766			12,166			12,550			11,399			12,652
Floor plan		1,299			1,296			1,137			1,059			1,371			1,297			1,433
Residential mortgage		1,683			1,800			1,899			1,995			2,114			1,741			2,183

Total loans		58,814			59,309			56,856			56,289			56,660			59,060			56,886
Goodwill and other intangible assets		5,873			5,935			5,882			5,894			5,784			5,904			5,795
Other assets		2,913			2,722			2,697			2,870			2,733			2,818			2,716

Total assets	$	67,600		$	67,966		$	65,435		$	65,053		$	65,177		$	67,782		$	65,397

Deposits
Noninterest-bearing demand	$	17,240		$	16,776		$	16,516		$	16,482		$	16,408		$	17,009		$	16,115
Interest-bearing demand		19,977			19,212			18,446			18,435			18,639			19,597			18,272
Money market		40,283			39,699			39,374			39,753			39,608			39,992			39,222

Total transaction deposits		77,500			75,687			74,336			74,670			74,655			76,598			73,609
Savings		7,006			6,552			6,577			6,731			6,767			6,780			6,565
Certificates of deposit		42,313			45,614			48,338			52,189			55,798			43,955			56,074

Total deposits		126,819			127,853			129,251			133,590			137,220			127,333			136,248
Other liabilities		1,673			1,671			27			55			39			1,672			60
Capital		8,326			8,195			8,301			8,523			8,789			8,261			8,584

Total liabilities and equity	$	136,818		$	137,719		$	137,579		$	142,168		$	146,048		$	137,266		$	144,892

PERFORMANCE RATIOS
Return on average capital		4	%		1	%		(1	) %		2	%		3	%		3	%		3	%
Return on average assets		.50			.14			(.15	)		.30			.38			.32			.34
Noninterest income to total revenue		36			36			40			40			38			36			37
Efficiency		71			72			73			73			73			71			73

(a)	See note (a) on page 13.

(b)	Information as of and for the three months ended June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009 and as of and for the six months ended June 30, 2010 reflects the impact of the required divestiture of 61 branches that was completed by early September 2009.

(c)	Information for 2010 reflects the impact of the consolidation in our financial statements for the securitized portfolio of approximately $1.6 billion of credit card loans effective January 1, 2010.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2010 (a)			March 31 2010 (a)			December 31 2009 (a)			September 30 2009 (a)			June 30 2009			June 30 2010 (a)			June 30 2009
OTHER INFORMATION (b)
Credit-related statistics:
Commercial nonperforming assets	$	297		$	324		$	324		$	311		$	246
Consumer nonperforming assets (c)		330			276			284			191			156

Total nonperforming assets	$	627		$	600		$	608		$	502		$	402

Impaired loans (d)	$	974		$	1,013		$	1,056		$	1,161		$	1,266

Commercial lending net charge-offs	$	100		$	96		$	173		$	69		$	90		$	196		$	173
Credit card lending net charge-offs (c)		89			96			57			53			50			185			99
Consumer lending (excluding credit card) net charge-offs		120			108			109			112			106			228			181

Total net charge-offs	$	309		$	300		$	339		$	234		$	246		$	609		$	453

Commercial lending annualized net charge-off ratio		3.18	%		3.05	%		5.32	%		2.07	%		2.59	%		3.11	%		2.48	%
Credit card lending annualized net charge-off ratio (c)		9.04	%		9.54	%		9.03	%		9.67	%		9.28	%		9.30	%		9.34	%
Consumer lending (excluding credit card) annualized net charge-off ratio		1.14	%		1.03	%		1.04	%		1.09	%		1.05	%		1.09	%		.90	%

Total annualized net charge-off ratio		2.11	%		2.05	%		2.37	%		1.65	%		1.74	%		2.08	%		1.61	%

Home equity portfolio credit statistics:
% of first lien positions (e)		35	%		34	%		35	%		35	%		35	%
Weighted average loan-to-value ratios (e)		73	%		73	%		74	%		74	%		74	%
Weighted average FICO scores (f)		727			725			727			727			728
Annualized net charge-off ratio		1.01	%		.70	%		.90	%		.97	%		.80	%		.86	%		.57	%
Loans 30 - 89 days past due		.74	%		.74	%		.78	%		.75	%		.70	%
Loans 90 days past due		.91	%		.85	%		.76	%		.73	%		.72	%

Other statistics:
ATMs		6,539			6,467			6,473			6,463			6,474
Branches (g)		2,458			2,461			2,513			2,554			2,607

Customer-related statistics (h):
Retail Banking checking relationships		5,056,000			5,036,000			5,042,000			5,040,000			5,148,000
Retail online banking active customers		2,774,000			2,782,000			2,743,000			2,682,000			2,676,000
Retail online bill payment active customers		870,000			826,000			780,000			753,000			744,000

Brokerage statistics:
Financial consultants (i)		711			722			704			655			658
Full service brokerage offices		41			41			40			42			42
Brokerage account assets (billions)	$	31		$	33		$	32		$	30		$	28

(a)	Information as of and for the three months ended June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009 and as of and for the six months ended June 30, 2010 reflects the impact of the required divestiture of 61 branches that was completed by early September 2009.

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

(c)	Information for 2010 reflects the impact of the consolidation in our financial statements for the securitized portfolio of approximately $1.6 billion of credit card loans effective January 1, 2010.

(d)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

(e)	Includes loans from acquired portfolios for which lien position and loan-to-value information is not available.

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

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

(h)	Amounts include the impact of National City prior to the completion of all application system conversions. Therefore, these amounts may be refined in the third quarter of 2010.

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

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2010 (g)			March 31 2010 (g)			December 31 2009			September 30 2009			June 30 2009			June 30 2010 (g)			June 30 2009
INCOME STATEMENT
Net interest income	$	923		$	877		$	1,009		$	915		$	886		$	1,800		$	1,909
Noninterest income
Corporate service fees		237			242			235			226			236			479			454
Other		59			129			133			175			161			188			210

Noninterest income		296			371			368			401			397			667			664

Total revenue		1,219			1,248			1,377			1,316			1,283			2,467			2,573
Provision for credit losses		97			236			283			384			649			333			936
Noninterest expense		421			445			444			459			467			866			897

Pretax earnings		701			567			650			473			167			1,268			740
Income taxes		258			207			235			164			60			465			274

Earnings	$	443		$	360		$	415		$	309		$	107		$	803		$	466

AVERAGE BALANCE SHEET
Loans
Commercial	$	32,937		$	34,024		$	33,481		$	35,785		$	38,835		$	33,477		$	40,264
Commercial real estate		17,008			17,961			18,747			18,918			19,667			17,482			19,564
Commercial - real estate related		2,901			3,128			3,328			3,622			3,884			3,014			4,074
Asset-based lending		6,065			5,940			6,051			5,918			6,401			6,003			6,709
Equipment lease financing		5,262			5,318			5,368			5,260			5,380			5,290			5,467

Total loans		64,173			66,371			66,975			69,503			74,167			65,266			76,078
Goodwill and other intangible assets		3,660			3,795			3,736			3,704			3,512			3,727			3,444
Loans held for sale		1,408			1,410			1,534			1,578			1,893			1,409			1,804
Other assets		7,711			7,940			7,395			6,460			7,332			7,825			7,679

Total assets	$	76,952		$	79,516		$	79,640		$	81,245		$	86,904		$	78,227		$	89,005

Deposits
Noninterest-bearing demand	$	23,715		$	22,271		$	23,484		$	20,392		$	18,732		$	22,997		$	17,924
Money market		12,380			12,253			10,573			10,714			9,514			12,317			8,736
Other		6,856			7,610			8,728			8,009			7,501			7,231			7,447

Total deposits		42,951			42,134			42,785			39,115			35,747			42,545			34,107
Other liabilities		10,797			10,870			8,408			8,363			9,701			10,833			9,862
Capital		7,913			7,633			7,916			7,922			7,816			7,774			7,753

Total liabilities and equity	$	61,661		$	60,637		$	59,109		$	55,400		$	53,264		$	61,152		$	51,722

PERFORMANCE RATIOS
Return on average capital		22	%		19	%		21	%		15	%		5	%		21	%		12	%
Return on average assets		2.31			1.84			2.07			1.51			.49			2.07			1.06
Noninterest income to total revenue		24			30			27			30			32			27			26
Efficiency		35			36			32			35			37			35			35

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	282		$	287		$	275		$	269		$	269		$	287		$	270
Acquisitions/additions		7			8			19			15			11			15			16
Repayments/transfers		(24	)		(13	)		(7	)		(9	)		(11	)		(37	)		(17	)

End of period	$	265		$	282		$	287		$	275		$	269		$	265		$	269

OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management	$	302		$	298		$	296		$	281		$	284		$	600		$	560
Capital Markets	$	128		$	164		$	187		$	155		$	148		$	292		$	191
Commercial mortgage loans held for sale (c)	$	(2	)	$	27		$	67		$	53		$	63		$	25		$	85
Commercial mortgage loan servicing (d)		49			88			66			66			76			137			148

Total commercial mortgage banking activities	$	47		$	115		$	133		$	119		$	139		$	162		$	233
Total loans (e)	$	63,910		$	65,076		$	66,206		$	68,352		$	71,077
Credit-related statistics:
Nonperforming assets (e)	$	3,103		$	3,343		$	3,167		$	2,992		$	2,317
Impaired loans (e) (f)	$	923		$	1,033		$	1,075		$	1,482		$	1,601
Net charge-offs	$	243		$	271		$	341		$	222		$	322		$	514		$	489
Net carrying amount of commercial mortgage servicing rights (e)	$	722		$	921		$	921		$	897		$	895

(a)	See note (a) on page 13.

(b)	Represents consolidated PNC amounts.

(c)	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.

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

(e)	Presented as of period end.

(f)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

(g)	Information for 2010 reflects the impact of the consolidation in our financial statements of Market Street Funding LLC effective January 1, 2010.

Also includes $1.6 billion of loans, net of eliminations, and $2.8 billion of commercial paper borrowings included in Other Liabilities.

Page 16

THE PNC FINANCIAL SERVICES GROUP, INC.

Asset Management Group (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009			June 30 2010			June 30 2009
INCOME STATEMENT
Net interest income	$	66		$	64		$	67		$	70		$	75		$	130		$	171
Noninterest income		154			164			151			155			151			318			305

Total revenue		220			228			218			225			226			448			476
Provision for credit losses		14			9			25			9			46			23			63
Noninterest expense		160			157			155			162			167			317			337

Pretax earnings		46			62			38			54			13			108			76
Income taxes		17			23			15			19			5			40			29

Earnings	$	29		$	39		$	23		$	35		$	8		$	68		$	47

AVERAGE BALANCE SHEET
Loans
Consumer	$	4,004		$	3,994		$	4,044		$	3,997		$	3,936		$	3,999		$	3,894
Commercial and commercial real estate		1,498			1,504			1,520			1,601			1,714			1,501			1,737
Residential mortgage		915			963			1,000			1,046			1,114			939			1,133

Total loans		6,417			6,461			6,564			6,644			6,764			6,439			6,764
Goodwill and other intangible assets		403			415			416			418			390			409			397
Other assets		251			241			221			219			273			246			281

Total assets	$	7,071		$	7,117		$	7,201		$	7,281		$	7,427		$	7,094		$	7,442

Deposits
Noninterest-bearing demand	$	1,268		$	1,228		$	1,126		$	993		$	988		$	1,249		$	1,124
Interest-bearing demand		1,735			1,699			1,674			1,544			1,563			1,717			1,553
Money market		3,261			3,217			3,134			3,154			3,217			3,239			3,273

Total transaction deposits		6,264			6,144			5,934			5,691			5,768			6,205			5,950
Certificates of deposit and other		769			818			918			1,013			1,088			793			1,188

Total deposits		7,033			6,962			6,852			6,704			6,856			6,998			7,138
Other liabilities		96			119			122			106			104			107			110
Capital		576			553			531			612			580			565			578

Total liabilities and equity	$	7,705		$	7,634		$	7,505		$	7,422		$	7,540		$	7,670		$	7,826

PERFORMANCE RATIOS
Return on average capital		20	%		29	%		17	%		23	%		6	%		24	%		16	%
Return on average assets		1.65			2.22			1.27			1.91			0.43			1.93			1.27
Noninterest income to total revenue		70			72			69			69			67			71			64
Efficiency		73			69			71			72			74			71			71

OTHER INFORMATION
Total nonperforming assets (b)	$	116		$	139		$	155		$	129		$	108
Impaired loans (b) (c)	$	182		$	191		$	198		$	206		$	221
Total net charge-offs	$	16		$	4		$	22		$	9		$	21		$	20		$	32

ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	92		$	96		$	94		$	93		$	88
Institutional		107			113			111			124			134

Total	$	199		$	209		$	205		$	217		$	222

Asset Type
Equity	$	98		$	104		$	100		$	98		$	88
Fixed income		64			59			58			56			57
Liquidity/Other		37			46			47			63			77

Total	$	199		$	209		$	205		$	217		$	222

Discretionary assets under management
Personal	$	65		$	69		$	67		$	66		$	62
Institutional		34			36			36			38			36

Total	$	99		$	105		$	103		$	104		$	98

Asset Type
Equity	$	46		$	51		$	49		$	47		$	42
Fixed income		36			35			34			34			32
Liquidity/Other		17			19			20			23			24

Total	$	99		$	105		$	103		$	104		$	98

Nondiscretionary assets under administration
Personal	$	27		$	27		$	27		$	27		$	26
Institutional		73			77			75			86			98

Total	$	100		$	104		$	102		$	113		$	124

Asset Type
Equity	$	52		$	53		$	51		$	51		$	46
Fixed income		28			24			24			22			25
Liquidity/Other		20			27			27			40			53

Total	$	100		$	104		$	102		$	113		$	124

(a)	See note (a) on page 13.

(b)	As of period end.

(c)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

(d)	Excludes brokerage account assets.

Page 17

THE PNC FINANCIAL SERVICES GROUP, INC.

Residential Mortgage Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009			June 30 2010			June 30 2009
INCOME STATEMENT
Net interest income	$	73		$	80		$	71		$	83		$	87		$	153		$	178
Noninterest income
Loan servicing revenue
Servicing fees		66			69			51			70			42			135			101
Net MSR hedging gains		66			46			35			60			58			112			260
Loan sales revenue		49			39			26			83			151			88			326
Other		1						(7	)		(4	)		(6	)		1			(5	)

Total noninterest income		182			154			105			209			245			336			682

Total revenue		255			234			176			292			332			489			860
Provision for (recoveries of) credit losses		(8	)		(16	)		(7	)		4			8			(24	)		(1	)
Noninterest expense		109			121			142			141			176			230			349

Pretax earnings		154			129			41			147			148			283			512
Income taxes		62			47			16			56			56			109			193

Earnings	$	92		$	82		$	25		$	91		$	92		$	174		$	319

AVERAGE BALANCE SHEET
Portfolio loans	$	2,540		$	2,820		$	2,479		$	2,071		$	1,834		$	2,679		$	1,633
Loans held for sale		1,148			974			1,333			2,042			2,766			1,062			2,730
Mortgage servicing rights (MSR)		1,084			1,264			1,236			1,443			1,343			1,173			1,254
Other assets		4,041			3,797			3,761			3,483			2,648			3,920			2,292

Total assets	$	8,813		$	8,855		$	8,809		$	9,039		$	8,591		$	8,834		$	7,909

Deposits	$	3,088		$	3,602		$	3,628		$	4,076		$	4,741		$	3,343		$	4,423
Borrowings and other liabilities		2,817			2,279			3,110			3,811			2,672			2,550			2,378
Capital		1,309			1,781			1,471			1,411			1,282			1,544			1,276

Total liabilities and equity	$	7,214		$	7,662		$	8,209		$	9,298		$	8,695		$	7,437		$	8,077

PERFORMANCE RATIOS
Return on average capital		28	%		19	%		7	%		26	%		29	%		23	%		50	%
Return on average assets		4.19			3.76			1.13			3.99			4.30			3.97			8.13
Noninterest income to total revenue		71			66			60			72			74			69			79
Efficiency		43			52			81			48			53			47			41

OTHER INFORMATION
Servicing portfolio for others (in billions) (b)	$	137		$	141		$	145		$	158		$	161
Fixed rate		89	%		89	%		88	%		88	%		87	%
Adjustable rate/balloon		11	%		11	%		12	%		12	%		13	%
Weighted average interest rate		5.74	%		5.79	%		5.82	%		5.89	%		5.94	%
MSR capitalized value (in billions)	$	1.0		$	1.3		$	1.3		$	1.3		$	1.5
MSR capitalization value (in basis points)		71			90			91			81			90
Weighted average servicing fee (in basis points)		30			30			30			30			30
Loan origination volume (in billions)	$	2.3		$	2.0		$	2.3		$	3.6		$	6.4		$	4.3		$	13.3
Percentage of originations represented by:
Agency and government programs		99	%		98	%		96	%		97	%		98	%		99	%		98	%
Refinance volume		58	%		73	%		59	%		59	%		74	%		65	%		79	%
Total nonperforming assets (b)	$	339		$	418		$	370		$	343		$	285
Impaired loans (b) (c)	$	168		$	298		$	369		$	412		$	531

(a)	See note (a) on page 13.

(b)	As of period end.

(c)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Distressed Assets Portfolio (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009			June 30 2010			June 30 2009
INCOME STATEMENT
Net interest income	$	339		$	338		$	218		$	235		$	295		$	677		$	626
Noninterest income		(1	)		(1	)		3			19			39			(2	)		52

Total revenue		338			337			221			254			334			675			678
Provision for credit losses		404			165			314			168			30			569			289
Noninterest expense		65			58			49			62			55			123			135

Pretax earnings (loss)		(131	)		114			(142	)		24			249			(17	)		254
Income taxes (benefit)		(45	)		42			(54	)		10			94			(3	)		96

Earnings (loss)	$	(86	)	$	72		$	(88	)	$	14		$	155		$	(14	)	$	158

AVERAGE BALANCE SHEET
Commercial lending:
Commercial	$	107		$	115		$	106		$	136		$	182		$	111		$	190
Commercial real estate:
Real estate projects		2,281			2,404			2,641			3,007			3,331			2,343			3,428
Commercial mortgage		54			80			65			117			112			67			103
Equipment lease financing		807			803			800			793			819			805			838

Total commercial lending		3,249			3,402			3,612			4,053			4,444			3,326			4,559
Consumer lending:
Consumer:
Home equity lines of credit		4,416			4,533			4,615			4,887			5,016			4,474			5,156
Home equity installment loans		1,914			2,015			2,060			1,877			2,052			1,964			2,301
Other consumer		20			25			23			13			15			23			13

Total consumer		6,350			6,573			6,698			6,777			7,083			6,461			7,470
Residential real estate:
Residential mortgage		7,617			7,717			7,974			8,744			8,983			7,667			9,106
Residential construction		503			473			600			842			1,401			488			1,471

Total residential real estate		8,120			8,190			8,574			9,586			10,384			8,155			10,577

Total consumer lending		14,470			14,763			15,272			16,363			17,467			14,616			18,047

Total portfolio loans		17,719			18,165			18,884			20,416			21,911			17,942			22,606
Other assets		797			1,342			1,633			1,901			1,867			1,067			1,689

Total assets	$	18,516		$	19,507		$	20,517		$	22,317		$	23,778		$	19,009		$	24,295

Deposits	$	180		$	85		$	29		$	32		$	49		$	133		$	47
Other liabilities		77			55			70			85			109			66			108
Capital		1,514			1,353			1,568			1,540			1,619			1,434			1,595

Total liabilities and equity	$	1,771		$	1,493		$	1,667		$	1,657		$	1,777		$	1,633		$	1,750

PERFORMANCE RATIOS
Return on average capital		(23	)%		22	%		(22	)%		4	%		38	%		(2	)%		20	%
Return on average assets		(1.86	)		1.50			(1.70	)		.25			2.61			(.15	)		1.31

OTHER INFORMATION
Nonperforming assets (b)	$	1,598		$	1,777		$	1,787		$	1,473		$	1,391
Impaired loans (b) (c)	$	6,867		$	7,124		$	7,577		$	7,803		$	8,670
Net charge-offs	$	264		$	111		$	121		$	175		$	197		$	375		$	248
Net charge-offs (for three months ended) as a percentage of period-end portfolio loans (annualized)		6.14	%		2.48	%		2.54	%		3.40	%		3.61	%		4.38	%		2.21	%

LOANS (in billions) (b)
Commercial:
Residential development	$	2.3		$	2.6		$	2.6		$	3.2		$	3.6
Cross-border leases		.8			.8			.8			.8			.8
Consumer:
Brokered home equity		6.1			6.3			6.4			6.6			6.9
Retail mortgages		4.8			5.1			5.2			5.4			5.8
Non-prime mortgages		1.6			1.7			1.7			1.7			1.9
Residential construction (d)		1.7			1.6			1.8			2.0			2.2

Total	$	17.3		$	18.1		$	18.5		$	19.7		$	21.2

(a)	See note (a) on page 13.

(b)	As of period end.

(c)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

(d)	Includes former construction accounts that have converted to residential mortgages as well as active construction loans.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms

Accretable net interest - The excess of cash flows expected to be collected on a purchased impaired loan over the carrying value of the loan. The accretable net interest is recognized into interest income over the remaining life of the loan using the constant effective yield method.

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.

Cash recoveries - Cash recoveries used in the context of purchased impaired loans represent cash payments from customers that exceeded the recorded investment of the designated impaired loan.

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 loan carrying amount to the fair value of the loan, if fair value is less than carrying amount.

Client-related noninterest income - Total noninterest income included on our Consolidated Income Statement less amounts for net gains (losses) on sales of securities, net other-than-temporary impairments, and other noninterest income.

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.

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 but not limited to 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; 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.

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

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THE PNC FINANCIAL SERVICES GROUP, INC.

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.

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.

Nonaccretable difference - Contractually required payments receivable on a purchased impaired loan in excess of the cash flows expected to be collected.

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. Nonperforming loans do not include purchased impaired loans as we are currently accreting interest income over the expected life of the loans.

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).

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THE PNC FINANCIAL SERVICES GROUP, INC.

Other-than-temporary impairment (OTTI) - When the fair value of a 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 for debt securities, if we do not intend to sell the security and it is not more likely than not 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.

Purchase accounting accretion - Accretion of the discounts and premiums on acquired assets and liabilities. The purchase accounting accretion is recognized in net interest income over the weighted average life of the financial instruments using the constant effective yield method.

Purchased impaired loans - Acquired loans determined to be credit impaired under FASB ASC 310-30 (AICPA SOP 03-3). 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.

Recorded investment - The initial investment of a purchased impaired loan plus interest accretion and less any cash payments and writedowns to date. The recorded investment excludes any valuation allowance which is included in our allowance for loan and lease losses.

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 or originated residential mortgage servicing rights (MSRs) at fair value under GAAP. 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 - 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.

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THE PNC FINANCIAL SERVICES GROUP, INC.

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.

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 plus noncontrolling interests.

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 interest-bearing money market deposits, interest-bearing demand deposits, and noninterest-bearing deposits.

Troubled debt restructuring - A restructuring of a loan whereby the lender for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that the lender would not otherwise consider or for which the lender would not be adequately compensated.

Watchlist - A list of criticized loans, credit exposure or other assets compiled for internal monitoring purposes. We define criticized exposure for this purpose as exposure with an internal risk rating of other assets especially mentioned, substandard, doubtful or loss.

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.

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