Form 425

Filed by The PNC Financial Services Group, Inc.

Pursuant to Rule 425 under the Securities Act of 1933 and

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

Subject Company: Sterling Financial Corporation

Commission File No. 000-16276

On January 17, 2008, The PNC Financial Services Group, Inc. (“PNC”) issued a press release and held a conference call for investors regarding PNC’s earnings and business results for the fourth quarter and year ended December 31, 2007. PNC also provided supplementary financial information on its web site, including financial information disclosed in connection with its press release, and provided electronic presentation slides on its web site used in connection with the related investor conference call. Such supplementary financial information and electronic presentation slides consisted of the following:

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2007

(UNAUDITED)


THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2007

(UNAUDITED)

 

     Page

Consolidated Income Statement

   2

Adjusted Condensed Consolidated Income Statement

   3

Consolidated Balance Sheet

   4

Capital Ratios

   4

Results of Businesses

  

Summary of Business Segment Results

   5

Period-end Employees

   5

Retail Banking

   6-8

Corporate & Institutional Banking

   9

PFPC

   10

Efficiency Ratio

   11

Details of Net Interest Income, Net Interest Margin, and Trading Revenue

   12

Average Consolidated Balance Sheet and Supplemental Average Balance Sheet Information

   13-14

Details of Loans

   15

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

   16

Details of Nonperforming Assets

   17-18

Glossary of Terms

   19-21

Business Segment Products and Services

   22

Appendix - Adjusted Condensed Consolidated Income Statement Reconciliations

   A1-A5

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 17, 2008. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (“SEC”) filings.

Additional Information About The PNC/Sterling Financial Corporation Transaction

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.

Yardville National Bancorp Acquisition

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

Mercantile Acquisition

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

BlackRock/MLIM Transaction

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

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

We have also provided, for information purposes only, adjusted results in this Financial Supplement to reflect BlackRock as if it had also been accounted for under the equity method for the full year 2006.

 

Page 1


THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)

 

     Year ended     Three months ended  

In millions, except per share data

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

Interest Income

              

Loans

   $ 4,232     $ 3,203     $ 1,123     $ 1,129     $ 1,084     $ 896     $ 821  

Securities available for sale

     1,429       1,049       398       366       355       310       280  

Other

     505       360       149       132       115       109       116  
                                                        

Total interest income

     6,166       4,612       1,670       1,627       1,554       1,315       1,217  
                                                        

Interest Expense

              

Deposits

     2,053       1,590       522       531       532       468       450  

Borrowed funds

     1,198       777       355       335       284       224       201  
                                                        

Total interest expense

     3,251       2,367       877       866       816       692       651  
                                                        

Net interest income

     2,915       2,245       793       761       738       623       566  

Provision for credit losses

     315       124       188       65       54       8       42  
                                                        

Net interest income less provision for credit losses

     2,600       2,121       605       696       684       615       524  
                                                        

Noninterest Income

              

Asset management

     784       1,420       225       204       190       165       149  

Fund servicing

     835       893       215       208       209       203       249  

Service charges on deposits

     348       313       90       89       92       77       79  

Brokerage

     278       246       69       71       72       66       63  

Consumer services

     414       365       110       106       107       91       93  

Corporate services

     713       626       180       198       176       159       177  

Equity management gains

     102       107       21       47       2       32       25  

Net securities gains (losses)

     (5 )     (207 )     (1 )     (2 )     1       (3 )  

Trading

     104       183       (10 )     33       29       52       33  

Net gains (losses) related to BlackRock

     (127 )     2,066       (128 )     (50 )     (1 )     52       (12 )

Other

     344       315       63       86       98       97       113  
                                                        

Total noninterest income

     3,790       6,327       834       990       975       991       969  
                                                        

Noninterest Expense

              

Compensation

     1,850       2,128       482       480       470       418       442  

Employee benefits

     290       304       71       73       74       72       55  

Net occupancy

     350       310       95       87       81       87       69  

Equipment

     311       303       84       77       79       71       69  

Marketing

     115       104       29       36       29       21       23  

Other

     1,380       1,294       452       346       307       275       311  
                                                        

Total noninterest expense

     4,296       4,443       1,213       1,099       1,040       944       969  
                                                        

Income before minority interest and income taxes

     2,094       4,005       226       587       619       662       524  

Minority interest in income of BlackRock

       47            

Income taxes

     627       1,363       48       180       196       203       148  
                                                        

Net income

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

Earnings Per Common Share

              

Basic

   $ 4.43     $ 8.89     $ .53     $ 1.21     $ 1.24     $ 1.49     $ 1.29  

Diluted

   $ 4.35     $ 8.73     $ .52     $ 1.19     $ 1.22     $ 1.46     $ 1.27  
                                                        

Average Common Shares Outstanding

              

Basic

     331       292       338       337       342       308       291  

Diluted

     335       297       341       340       346       312       295  
                                                        

Efficiency

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

Noninterest income to total revenue

     57 %     74 %     51 %     57 %     57 %     61 %     63 %

Effective tax rate (a)

     29.9 %     34.0 %     21.2 %     30.7 %     31.7 %     30.7 %     28.2 %
                                                        

 

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

 

Page 2


THE PNC FINANCIAL SERVICES GROUP, INC.

Adjusted Condensed Consolidated Income Statement (Unaudited) (a)

 

For the year ended - in millions

   December 31
2007
   December 31
2006

Net Interest Income

     

Net interest income

   $ 2,915    $ 2,235

Provision for credit losses

     270      124
             

Net interest income less provision for credit losses

     2,645      2,111
             

Noninterest Income

     

Asset management

     788      538

Other

     3,133      3,034
             

Total noninterest income

     3,921      3,572
             

Noninterest Expense

     

Compensation and benefits

     2,103      1,865

Other

     2,009      1,722
             

Total noninterest expense

     4,112      3,587
             

Income before income taxes

     2,454      2,096

Income taxes

     752      582
             

Net income

   $ 1,702    $ 1,514
             

 

For the three months ended - in millions

   December 31
2007
   September 30
2007
   June 30
2007
   March 31
2007
   December 31
2006

Net Interest Income

              

Net interest income

   $ 793    $ 761    $ 738    $ 623    $ 566

Provision for credit losses

     143      65      54      8      42
                                  

Net interest income less provision for credit losses

     650      696      684      615      524
                                  

Noninterest Income

              

Asset management

     224      206      191      167      159

Other

     737      836      786      774      832
                                  

Total noninterest income

     961      1,042      977      941      991
                                  

Noninterest Expense

              

Compensation and benefits

     543      537      535      488      497

Other

     553      521      490      445      472
                                  

Total noninterest expense

     1,096      1,058      1,025      933      969
                                  

Income before income taxes

     515      680      636      623      546

Income taxes

     150      211      202      189      155
                                  

Net income

   $ 365    $ 469    $ 434    $ 434    $ 391
                                  

 

(a) This schedule is provided for informational purposes only and reflects historical condensed consolidated financial information of PNC: (1) with amounts adjusted for the impact of certain specified items; (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented; and (3) adjusted in each case, as appropriate, for the tax impact. See the Appendix to this Financial Supplement for reconciliations of these amounts to the corresponding GAAP amounts for each of the periods presented. We have provided these adjusted amounts and reconciliations so that investors, analysts, regulators and others will be better able to evaluate the impact of these items on our results for these periods, in addition to providing a basis of comparability for the impact of the BlackRock deconsolidation given the magnitude of the impact of the deconsolidation on various components of our income statement. Adjusted information supplements our results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, our GAAP results.

 

Page 3


THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)

 

In millions, except par value

   December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

Assets

          

Cash and due from banks

   $ 3,567     $ 3,318     $ 3,177     $ 3,234     $ 3,523  

Federal funds sold and resale agreements

     2,729       2,360       1,824       1,604       1,763  

Other short-term investments, including trading securities

     4,129       3,944       3,667       3,041       3,130  

Loans held for sale

     3,927       3,004       2,562       2,382       2,366  

Securities available for sale

     30,225       28,430       25,903       26,475       23,191  

Loans, net of unearned income of $990, $986, $1,004, $1,005, and $795

     68,319       65,760       64,714       62,925       50,105  

Allowance for loan and lease losses

     (830 )     (717 )     (703 )     (690 )     (560 )
                                        

Net loans

     67,489       65,043       64,011       62,235       49,545  

Goodwill

     8,405       7,836       7,745       7,739       3,402  

Other intangible assets

     1,146       1,099       913       929       641  

Equity investments

     6,045       5,975       5,584       5,408       5,330  

Other

     11,258       10,357       10,265       9,516       8,929  
                                        

Total assets

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

Liabilities

          

Deposits

          

Noninterest-bearing

   $ 19,440     $ 18,570     $ 18,302     $ 18,191     $ 16,070  

Interest-bearing

     63,256       59,839       58,919       59,176       50,231  
                                        

Total deposits

     82,696       78,409       77,221       77,367       66,301  

Borrowed funds

          

Federal funds purchased

     7,037       6,658       7,212       5,638       2,711  

Repurchase agreements

     2,737       1,990       2,805       2,586       2,051  

Federal Home Loan Bank borrowings

     7,065       4,772       104       111       42  

Bank notes and senior debt

     6,821       7,794       7,537       4,551       3,633  

Subordinated debt

     4,506       3,976       4,226       4,628       3,962  

Other

     2,765       2,263       2,632       2,942       2,629  
                                        

Total borrowed funds

     30,931       27,453       24,516       20,456       15,028  

Allowance for unfunded loan commitments and letters of credit

     134       127       125       121       120  

Accrued expenses

     4,330       4,077       3,663       3,864       3,970  

Other

     4,321       5,095       4,252       4,649       4,728  
                                        

Total liabilities

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

Minority and noncontrolling interests in consolidated entities

     1,654       1,666       1,370       1,367       885  

Shareholders’ Equity

          

Preferred stock (a)

          

Common stock - $5 par value

          

Authorized 800 shares, issued 353 shares

     1,764       1,764       1,764       1,764       1,764  

Capital surplus

     2,618       2,631       2,606       2,520       1,651  

Retained earnings

     11,497       11,531       11,339       11,134       10,985  

Accumulated other comprehensive loss

     (147 )     (255 )     (439 )     (162 )     (235 )

Common stock held in treasury at cost: 12, 16, 11, 7, and 60 shares

     (878 )     (1,132 )     (766 )     (517 )     (3,377 )
                                        

Total shareholders’ equity

     14,854       14,539       14,504       14,739       10,788  
                                        

Total liabilities, minority and noncontrolling interests, and shareholders’ equity

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

Capital Ratios

          

Tier 1 risk-based (b)

     6.8 %     7.5 %     8.3 %     8.6 %     10.4 %

Total risk-based (b)

     10.3       10.9       11.8       12.2       13.5  

Leverage (b)

     6.2       6.8       7.3       8.7       9.3  

Tangible common equity

     4.7       5.2       5.5       5.8       7.4  

Common shareholders’ equity to assets

     10.7       11.1       11.5       12.0       10.6  
                                        

 

(a) Less than $.5 million at each date.
(b) The ratios as of December 31, 2007 are estimated.

 

Page 4


THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Segment Results (Unaudited)

 

     Year ended    Three months ended

In millions (a) (b)

  

December 31

2007

  

December 31

2006

  

December 31

2007

   

September 30

2007

  

June 30

2007

  

March 31

2007

  

December 31

2006

Earnings

                   

Retail Banking

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

Corporate & Institutional Banking

     432      454      91       87      122      132      126

PFPC

     128      124      32       33      32      31      31

Other, including BlackRock (b)

     14      1,252      (160 )     37      42      95      35
                                                 

Total consolidated net income

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

Revenue (c)

                   

Retail Banking

   $ 3,801    $ 3,125    $ 999     $ 985    $ 978    $ 839    $ 799

Corporate & Institutional Banking

     1,538      1,455      399       388      381      370      390

PFPC (d)

     831      762      214       209      208      200      194

Other, including BlackRock (b)

     562      3,255      22       175      154      211      157
                                                 

Total consolidated revenue

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

 

(a) Our business information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses and management structure change.
(b) We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our Annual Report on Form 10-K for the year ended December 31, 2007 will provide additional business segment disclosures for BlackRock. Generally, PNC’s business segment earnings from BlackRock can be estimated by multiplying our approximately 33.5% ownership interest by BlackRock’s reported GAAP earnings, less the additional income taxes recorded by PNC on those earnings. The effective tax rate on those earnings is typically different than PNC’s consolidated effective tax rate due to the tax treatment of dividends received, if any, from BlackRock. PNC’s effective tax rate on its earnings from BlackRock for the fourth quarter of 2007 and full year 2007 was approximately 25%.
(c) Business revenue is presented on a taxable-equivalent basis. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. To provide more meaningful comparisons of yields and margins for all earning assets, we also provide revenue on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):

 

     Year ended    Three months ended
     December 31
2007
   December 31
2006
   December 31
2007
   September 30
2007
   June 30
2007
   March 31
2007
   December 31
2006

Total consolidated revenue, book (GAAP) basis

   $ 6,705    $ 8,572    $ 1,627    $ 1,751    $ 1,713    $ 1,614    $ 1,535

Taxable-equivalent adjustment

     27      25      7      6      8      6      5
                                                

Total consolidated revenue, taxable-equivalent basis

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

 

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

 

     December 31
2007
   September 30
2007
   June 30
2007
   March 31
2007
   December 31
2006

Period-end Employees

              

Full-time employees:

              

Retail Banking

   12,036    11,753    11,804    11,838    9,549

Corporate & Institutional Banking

   2,290    2,267    2,084    2,038    1,936

PFPC

   4,784    4,504    4,522    4,400    4,381

Other

              

Operations & Technology

   4,379    4,243    4,501    4,493    3,909

Staff Services

   1,991    2,044    2,115    2,059    1,680
                        

Total Other

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

Total full-time employees

   25,480    24,811    25,026    24,828    21,455

Total part-time employees

   2,840    2,823    3,028    2,867    2,328
                        

Total employees

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

The period-end employee statistics disclosed for each business reflect staff directly employed by the respective business and exclude operations, technology and staff services employees. Yardville employees are included in the Retail Banking, Corporate & Institutional Banking, and Other businesses at December 31, 2007. Mercantile employees are included in the Retail Banking, Corporate & Institutional Banking, and Other businesses at December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007. PFPC employee statistics are provided on a legal entity basis.

 

Page 5


THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited)

 

     Year ended     Three months ended  

Taxable-equivalent basis (a)

Dollars in millions

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

INCOME STATEMENT

              

Net interest income

   $ 2,065     $ 1,678     $ 543     $ 535     $ 535     $ 452     $ 419  

Noninterest income

     1,736       1,447       456       450       443       387       380  
                                                        

Total revenue

     3,801       3,125       999       985       978       839       799  

Provision for credit losses

     138       81       70       8       37       23       35  

Noninterest expense

     2,239       1,827       587       577       579       496       471  
                                                        

Pretax earnings

     1,424       1,217       342       400       362       320       293  

Income taxes

     531       452       127       150       135       119       109  
                                                        

Earnings

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

AVERAGE BALANCE SHEET

              

Loans

              

Consumer

              

Home equity

   $ 14,209     $ 13,813     $ 14,417     $ 14,296     $ 14,237     $ 13,881     $ 13,807  

Indirect

     1,897       1,052       2,031       2,033       2,036       1,480       1,133  

Other consumer

     1,597       1,248       1,688       1,610       1,596       1,490       1,322  
                                                        

Total consumer

     17,703       16,113       18,136       17,939       17,869       16,851       16,262  

Commercial

     12,534       5,721       14,020       13,799       13,678       8,201       5,907  

Floor plan

     978       910       983       939       1,037       952       853  

Residential mortgage

     1,992       1,440       2,500       2,050       2,038       1,781       1,031  

Other

     230       242       225       230       235       233       234  
                                                        

Total loans

     33,437       24,426       35,864       34,957       34,857       28,018       24,287  

Goodwill and other intangible assets

     5,061       1,581       5,792       5,703       5,737       2,942       1,574  

Loans held for sale

     1,564       1,607       1,572       1,567       1,554       1,562       1,505  

Other assets

     2,362       1,634       2,487       2,848       2,626       1,927       1,671  
                                                        

Total assets

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

Deposits

              

Noninterest-bearing demand

   $ 10,513     $ 7,841     $ 10,967     $ 11,191     $ 11,065     $ 8,871     $ 7,834  

Interest-bearing demand

     8,876       7,906       9,173       8,869       9,097       8,354       7,865  

Money market

     16,786       14,750       17,328       17,020       17,100       15,669       14,822  
                                                        

Total transaction deposits

     36,175       30,497       37,468       37,080       37,262       32,894       30,521  

Savings

     2,678       2,035       2,651       2,831       2,981       2,243       1,877  

Certificates of deposit

     16,637       13,861       16,768       16,502       17,531       15,738       14,694  
                                                        

Total deposits

     55,490       46,393       56,887       56,413       57,774       50,875       47,092  

Other liabilities

     621       553       577       540       679       708       598  

Capital

     3,558       2,986       3,626       3,595       3,724       3,287       3,034  
                                                        

Total funds

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

PERFORMANCE RATIOS

              

Return on average capital

     25 %     26 %     24 %     28 %     24 %     25 %     24 %

Noninterest income to total revenue

     46       46       46       46       45       46       48  

Efficiency

     59       58       59       59       59       59       59  
                                                        

 

(a) See notes (a) and (c) on page 5.

 

Page 6


THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)

 

     Year ended     Three months ended  

Dollars in millions except as noted

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

OTHER INFORMATION (a) (b)

              

Credit-related statistics:

              

Nonperforming assets

       $ 225     $ 137     $ 140     $ 123     $ 106  

Net charge-offs

   $ 131     $ 85     $ 45     $ 34     $ 25     $ 27     $ 21  

Annualized net charge-off ratio

     .39 %     .35 %     .50 %     .39 %     .29 %     .39 %     .34 %
                                                        

Other statistics:

              

Full-time employees

         12,036       11,753       11,804       11,838       9,549  

Part-time employees

         2,309       2,248       2,360       2,224       1,829  

ATMs

         3,900       3,870       3,917       3,862       3,581  

Branches (c)

         1,109       1,072       1,084       1,077       852  

Gains on sales of education loans (d)

   $ 24     $ 33     $ 4     $ 12     $ 5     $ 3     $ 11  
                                                        

ASSETS UNDER ADMINISTRATION (in billions) (e)

              

Assets under management

              

Personal

       $ 53     $ 57     $ 55     $ 54     $ 44  

Institutional

         20       20       22       22       10  
                                            

Total

       $ 73     $ 77     $ 77     $ 76     $ 54  
                                            

Asset Type

              

Equity

       $ 42     $ 44     $ 43     $ 41     $ 34  

Fixed income

         18       20       20       20       12  

Liquidity/Other

         13       13       14       15       8  
                                            

Total

       $ 73     $ 77     $ 77     $ 76     $ 54  
                                            

Nondiscretionary assets under administration

              

Personal

       $ 30     $ 31     $ 30     $ 31     $ 25  

Institutional

         83       81       81       80       61  
                                            

Total

       $ 113     $ 112     $ 111     $ 111     $ 86  
                                            

Asset Type

              

Equity

       $ 49     $ 50     $ 47     $ 42     $ 33  

Fixed income

         28       27       28       28       24  

Liquidity/Other

         36       35       36       41       29  
                                            

Total

       $ 113     $ 112     $ 111     $ 111     $ 86  
                                            

 

(a) Presented as of period-end, except for net charge-offs, annualized net charge-off ratio and gains on sales of education loans.
(b) Amounts subsequent to March 2, 2007 include the impact of Mercantile. Amounts subsequent to October 26, 2007 include the impact of Yardville.
(c) Excludes certain satellite branches that provide limited products and service hours.
(d) Included in “Noninterest income” on page 6.
(e) Excludes brokerage account assets.

 

Page 7


THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)

 

Dollars in millions except as noted

   December 31
2007 (b)
    September 30
2007
   

June 30

2007 (b)

    March 31
2007 (b)
    December 31
2006
 

OTHER INFORMATION (a) (b)

          

Home equity portfolio credit statistics:

          

% of first lien positions (c)

     39 %     39 %     42 %     43 %     43 %

Weighted average loan-to-value ratios (c)

     73 %     72 %     70 %     70 %     70 %

Weighted average FICO scores (d)

     727       726       727       726       728  

Loans 90 days past due

     .37 %     .30 %     .26 %     .25 %     .24 %
                                        

Checking-related statistics:

          

Retail Banking checking relationships

     2,272,000       2,275,000       1,967,000       1,962,000       1,954,000  

Consumer DDA households using online banking

     1,091,000       1,050,000       975,000       960,000       938,000  

% of consumer DDA households using online banking

     54 %     52 %     55 %     54 %     53 %

Consumer DDA households using online bill payment

     667,000       604,000       505,000       450,000       404,000  

% of consumer DDA households using online bill payment

     33 %     30 %     29 %     25 %     23 %
                                        

Small business loans and managed deposits:

          

Small business loans

   $ 13,049     $ 13,157     $ 5,410     $ 5,284     $ 5,116  

Managed deposits:

          

On-balance sheet

          

Noninterest-bearing demand

   $ 5,994     $ 6,119     $ 4,250     $ 4,284     $ 4,383  

Interest-bearing demand

     1,873       2,027       1,505       1,517       1,649  

Money market

     3,152       3,389       2,595       2,635       2,592  

Certificates of deposit

     1,068       1,070       584       681       802  

Off-balance sheet (e)

          

Small business sweep checking

     2,780       2,823       1,933       1,827       1,733  
                                        

Total managed deposits

   $ 14,867     $ 15,428     $ 10,867     $ 10,944     $ 11,159  
                                        

Brokerage statistics:

          

Margin loans

   $ 151     $ 161     $ 162     $ 166     $ 163  

Financial consultants (f)

     769       765       767       757       758  

Full service brokerage offices

     100       100       99       99       99  

Brokerage account assets (billions)

   $ 48     $ 49     $ 47     $ 46     $ 46  
                                        

 

(a) Presented as of period-end.
(b) This information excludes the impact of acquisitions between PNC’s acquisition date and the date of conversion of the acquired companies’ data onto PNC’s financial and operational systems because such information was not available prior to the conversion date. Therefore, information presented above as of June 30, 2007 and March 31, 2007 excludes the impact of Mercantile, which PNC acquired effective March 2, 2007 and converted during September 2007. Similarly, information presented above as of December 31, 2007 (except “Brokerage statistics”) excludes the impact of Yardville, which PNC acquired effective October 26, 2007 and expects to convert during March 2008.
(c) Includes loans from acquired portfolios for which lien position and loan-to-value information was limited.
(d) Represents the most recent FICO scores we have on file.
(e) Represents small business balances. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.
(f) Financial consultants provide services in full service brokerage offices and PNC traditional branches.

 

Page 8


THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited)

 

     Year ended     Three months ended  

Taxable-equivalent basis (a)

Dollars in millions except as noted

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
   

June 30

2007

    March 31
2007
    December 31
2006
 

INCOME STATEMENT

              

Net interest income

   $ 818     $ 703     $ 237     $ 204     $ 194     $ 183     $ 186  

Noninterest income

              

Corporate service fees

     564       526       137       161       139       127       149  

Other (b)

     156       226       25       23       48       60       55  
                                                        

Noninterest income

     720       752       162       184       187       187       204  
                                                        

Total revenue

     1,538       1,455       399       388       381       370       390  

Provision for (recoveries of) credit losses

     125       42       69       55       17       (16 )     6  

Noninterest expense

     818       746       222       211       192       193       199  
                                                        

Pretax earnings

     595       667       108       122       172       193       185  

Income taxes

     163       213       17       35       50       61       59  
                                                        

Earnings

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

AVERAGE BALANCE SHEET

              

Loans

              

Corporate (c)

   $ 9,519     $ 8,633     $ 10,254     $ 9,625     $ 9,274     $ 8,909     $ 8,885  

Commercial real estate

     3,590       2,876       3,956       3,576       3,555       3,253       3,143  

Commercial - real estate related

     3,580       2,433       4,065       3,746       3,736       2,733       2,189  

Asset-based lending

     4,634       4,467       4,795       4,647       4,562       4,513       4,594  
                                                        

Total loans (c)

     21,323       18,409       23,070       21,594       21,127       19,408       18,811  

Goodwill and other intangible assets

     1,919       1,352       2,232       2,085       1,837       1,544       1,399  

Loans held for sale

     1,319       893       1,781       1,207       982       1,302       965  

Other assets

     4,491       4,168       4,641       4,544       4,531       4,244       4,550  
                                                        

Total assets

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

Deposits

              

Noninterest-bearing demand

   $ 7,301     $ 6,771     $ 7,851     $ 7,238     $ 6,953     $ 7,083     $ 7,210  

Money market

     4,784       2,654       4,995       4,960       4,653       4,530       3,644  

Other

     1,325       907       1,818       1,436       1,113       926       921  
                                                        

Total deposits

     13,410       10,332       14,664       13,634       12,719       12,539       11,775  

Other liabilities

     3,347       2,863       4,452       3,109       2,960       2,850       3,093  

Capital

     2,152       1,838       2,357       2,132       2,050       2,064       1,935  
                                                        

Total funds

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

PERFORMANCE RATIOS

              

Return on average capital

     20 %     25 %     15 %     16 %     24 %     26 %     26 %

Noninterest income to total revenue

     47       52       41       47       49       51       52  

Efficiency

     53       51       56       54       50       52       51  
                                                        

COMMERCIAL MORTGAGE

              

SERVICING PORTFOLIO (in billions)

              

Beginning of period

   $ 200     $ 136     $ 244     $ 222     $ 206     $ 200     $ 180  

Acquisitions/additions

     88       102       8       36       28       16       33  

Repayments/transfers

     (45 )     (38 )     (9 )     (14 )     (12 )     (10 )     (13 )
                                                        

End of period (d)

   $ 243     $ 200     $ 243     $ 244     $ 222     $ 206     $ 200  
                                                        

OTHER INFORMATION

              

Consolidated revenue from: (e)

              

Treasury Management

   $ 476     $ 418     $ 131     $ 121     $ 114     $ 110     $ 107  

Capital Markets

   $ 290     $ 283     $ 74     $ 73     $ 76     $ 67     $ 79  

Midland Loan Services

   $ 220     $ 184     $ 51     $ 59     $ 56     $ 54     $ 53  

Total loans (f)

       $ 23,861     $ 22,455     $ 21,662     $ 21,193     $ 18,957  

Nonperforming assets (f)

       $ 243     $ 141     $ 100     $ 77     $ 63  

Net charge-offs

   $ 70     $ 54     $ 39     $ 15     $ 7     $ 9     $ 24  

Full-time employees (f)

         2,290       2,267       2,084       2,038       1,936  

Net gains on commercial mortgage loan sales (d)

   $ 39     $ 55     $ 10     $ 5     $ 9     $ 15     $ 18  

Valuation adjustment on commercial mortgage loans held for sale

   $ (26 )     $ (26 )        

Net carrying amount of commercial mortgage servicing rights (d) (f)

       $ 694     $ 708     $ 493     $ 487     $ 471  
                                            

 

(a) See notes (a) and (c) on page 5.
(b) Amounts for fourth quarter and full year 2007 include a $26 million of negative valuation adjustment on our commercial mortgage loans held for sale.
(c) Includes lease financing.
(d) Amounts at December 31, 2007 and September 30, 2007 include the impact of the July 2, 2007 acquisition of ARCS Commercial Mortgage.
(e) Represents consolidated PNC amounts.
(f) Presented as of period end.

 

Page 9


THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)

 

     Year ended     Three months ended  

Dollars in millions except as noted

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

INCOME STATEMENT

              

Servicing revenue (b)

   $ 863     $ 800     $ 223     $ 216     $ 216     $ 208     $ 203  

Operating expense (b)

     637       586       167       159       158       153       146  
                                                        

Operating income

     226       214       56       57       58       55       57  

Debt financing

     38       42       10       9       9       10       10  

Nonoperating income (c)

     6       4       1       2       1       2       1  
                                                        

Pretax earnings

     194       176       47       50       50       47       48  

Income taxes

     66       52       15       17       18       16       17  
                                                        

Earnings

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

PERIOD-END BALANCE SHEET

              

Goodwill and other intangible assets

       $ 1,315     $ 1,002     $ 1,005     $ 1,008     $ 1,012  

Other assets

         1,161       1,169       1,395       1,370       1,192  
                                            

Total assets

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

Debt financing

       $ 989     $ 702     $ 734     $ 760     $ 792  

Other liabilities

         865       878       1,109       1,091       917  

Shareholder’s equity

         622       591       557       527       495  
                                            

Total funds

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

PERFORMANCE RATIOS

              

Return on average equity

     23 %     29 %     21 %     23 %     24 %     25 %     26 %

Operating margin (d)

     26       27       25       26       27       26       28  
                                                        

SERVICING STATISTICS (at period end)

              

Accounting/administration net fund assets (in billions)(e)

              

Domestic

       $ 869     $ 806     $ 765     $ 731     $ 746  

Offshore

         121       116       103       91       91  
                                            

Total

       $ 990     $ 922     $ 868     $ 822     $ 837  
                                            

Asset type (in billions)(e)

              

Money market

       $ 373     $ 328     $ 286     $ 280     $ 281  

Equity

         390       377       373       352       354  

Fixed income

         123       117       118       111       117  

Other

         104       100       91       79       85  
                                            

Total

       $ 990     $ 922     $ 868     $ 822     $ 837  
                                            

Custody fund assets (in billions)

       $ 500     $ 497     $ 467     $ 435     $ 427  
                                            

Shareholder accounts (in millions)

              

Transfer agency

         19       19       20       18       18  

Subaccounting

         53       51       50       50       50  
                                            

Total

         72       70       70       68       68  
                                            

OTHER INFORMATION

              

Period-end full-time employees

         4,784       4,504       4,522       4,400       4,381  
                                            

 

(a) See note (a) on page 5.
(b) Certain out-of-pocket expense items which are then client billable are included in both servicing revenue and operating expense above, but offset each other entirely and therefore have no net effect on operating income. Distribution revenue and expenses which relate to 12b-1 fees that PFPC receives from certain fund clients for the payment of marketing, sales and service expenses also entirely offset each other, but are netted for presentation purposes above. Amounts for 2006 periods have been reclassified to conform with the current period presentation.
(c) Net of nonoperating expense.
(d) Total operating income divided by servicing revenue.
(e) Includes alternative investment net assets serviced.

 

Page 10


THE PNC FINANCIAL SERVICES GROUP, INC.

Efficiency Ratio (Unaudited)

 

     Year ended     Three months ended  
     December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

Efficiency, as reported (a)

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

Efficiency, as adjusted (b)

   60 %   62 %   62 %   59 %   60 %   60 %   62 %
                                          

 

(a) Calculated as noninterest expense divided by the sum of net interest income and noninterest income on the Consolidated Income Statement.
(b) Calculated as PNC’s efficiency ratio adjusted: (1) for the impact of certain specified items; (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented; and (3) in each case, as appropriate, adjusted for the tax impact. We have provided these adjusted amounts and reconciliations so that shareholders, investor analysts, regulators and others will be better able to evaluate the impact of these items on our “as reported” efficiency ratio for these periods, in addition to providing a basis of comparability for the impact of the BlackRock deconsolidation. Amounts used for these adjusted ratios are reconciled to amounts used in the PNC efficiency ratio as reported (GAAP basis) below.

 

     Year ended     Three months ended  

Dollars in millions

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

Reconciliation of GAAP amounts with amounts used in the calculation of the adjusted efficiency ratio:

              

GAAP basis—net interest income

   $ 2,915     $ 2,245     $ 793     $ 761     $ 738     $ 623     $ 566  

Adjustment to net interest income: BlackRock equity method (c)

       (10 )          
                                                        

Adjusted net interest income

   $ 2,915     $ 2,235     $ 793     $ 761     $ 738     $ 623     $ 566  
                                                        

GAAP basis—noninterest income

   $ 3,790     $ 6,327     $ 834     $ 990     $ 975     $ 991     $ 969  

Adjustments (c) :

              

Gain on BlackRock/MLIM transaction

       (2,078 )          

Securities portfolio rebalancing loss

       196            

Mortgage loan portfolio repositioning loss

       48            

Integration costs

     4       10       (1 )     2       1       2       10  

BlackRock LTIP

     127       12       128       50       1       (52 )     12  

BlackRock equity method

       (943 )          
                                                        

Adjusted noninterest income

   $ 3,921     $ 3,572     $ 961     $ 1,042     $ 977     $ 941     $ 991  
                                                        

Adjusted total revenue

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

GAAP basis—noninterest expense

   $ 4,296     $ 4,443     $ 1,213     $ 1,099     $ 1,040     $ 944     $ 969  

Adjustments (c):

              

Integration costs

     (102 )     (91 )     (35 )     (41 )     (15 )     (11 )  

Visa indemnification

     (82 )       (82 )        

BlackRock equity method

       (765 )          
                                                        

Adjusted noninterest expense

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

Adjusted efficiency ratio

     60 %     62 %     62 %     59 %     60 %     60 %     62 %

 

(c) See the Appendix to this Financial Supplement.

 

Page 11


THE PNC FINANCIAL SERVICES GROUP, INC.

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

 

     Year ended     Three months ended  

In millions

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

Net Interest Income

              

Interest income, taxable equivalent basis

              

Loans

   $ 4,248     $ 3,216     $ 1,127     $ 1,134     $ 1,088     $ 899     $ 824  

Securities available for sale

     1,431       1,050       398       368       355       310       279  

Other

     514       371       152       131       119       112       119  
                                                        

Total interest income

     6,193       4,637       1,677       1,633       1,562       1,321       1,222  
                                                        

Interest expense

              

Deposits

     2,053       1,590       522       531       532       468       450  

Borrowed funds

     1,198       777       355       335       284       224       201  
                                                        

Total interest expense

     3,251       2,367       877       866       816       692       651  
                                                        

Net interest income, taxable-equivalent basis

     2,942       2,270       800       767       746       629       571  

Less: Taxable-equivalent adjustment

     27       25       7       6       8       6       5  
                                                        

Net interest income, GAAP basis

   $ 2,915     $ 2,245     $ 793     $ 761     $ 738     $ 623     $ 566  
                                                        
     Year ended     Three months ended  
     December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

Net Interest Margin

              

Average yields/rates

              

Yield on interest-earning assets

              

Loans

     6.80 %     6.49 %     6.62 %     6.89 %     6.81 %     6.68 %     6.63 %

Securities available for sale

     5.39       4.93       5.46       5.42       5.37       5.31       5.27  

Other

     5.70       5.45       5.51       5.56       5.94       5.83       5.56  

Total yield on interest-earning assets

     6.32       5.97       6.19       6.37       6.35       6.23       6.15  

Rate on interest-bearing liabilities

              

Deposits

     3.47       3.25       3.31       3.49       3.52       3.52       3.54  

Borrowed funds

     5.20       5.17       4.88       5.22       5.28       5.33       5.39  

Total rate on interest-bearing liabilities

     3.95       3.70       3.81       3.99       3.98       3.95       3.97  
                                                        

Interest rate spread

     2.37       2.27       2.38       2.38       2.37       2.28       2.18  

Impact of noninterest-bearing sources

     .63       .65       .58       .62       .66       .67       .70  
                                                        

Net interest margin

     3.00 %     2.92 %     2.96 %     3.00 %     3.03 %     2.95 %     2.88 %
                                                        
     Year ended     Three months ended  

In millions

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

Trading Revenue (a)

              

Net interest income (expense)

   $ 7     $ (6 )   $ 7     $ (1 )   $ 1       $ (2 )

Noninterest income

     104       183       (10 )     33       29     $ 52       33  
                                                        

Total trading revenue

   $ 111     $ 177     $ (3 )   $ 32     $ 30     $ 52     $ 31  
                                                        

Securities underwriting and trading (b)

   $ 41     $ 38     $ 10     $ 14     $ 8     $ 9     $ 11  

Foreign exchange

     58       55       16       15       13       14       13  

Financial derivatives

     12       84       (29 )     3       9       29       7  
                                                        

Total trading revenue

   $ 111     $ 177     $ (3 )   $ 32     $ 30     $ 52     $ 31  
                                                        
(a) See pages 13-14 for disclosure of average trading assets and liabilities.
(b) Includes changes in fair value for certain loans accounted for at fair value. See page 13 for disclosure of average loans at fair value.

 

Page 12


THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)

 

     Year ended     Three months ended  

In millions

   December 31
2007
    December 31
2006
    December 31
2007
    September 30
2007
    June 30
2007
    March 31
2007
    December 31
2006
 

Assets

              

Interest-earning assets:

              

Securities available for sale

              

Residential mortgage-backed

   $ 19,163     $ 14,881     $ 20,592     $ 19,541     $ 19,280     $ 17,198     $ 16,082  

Commercial mortgage-backed

     4,025       2,305       4,921       4,177       3,646       3,338       2,640  

Asset-backed

     2,394       1,312       2,704       2,454       2,531       1,876       1,561  

U.S. Treasury and government agencies

     293       2,334       155       281       344       394       441  

State and municipal

     227       148       306       233       203       162       140  

Other debt

     47       89       52       25       33       79       89  

Corporate stocks and other

     392       246       458       381       383       347       277  
                                                        

Total securities available for sale

     26,541       21,315       29,188       27,092       26,420       23,394       21,230  

Loans, net of unearned income

              

Commercial

     25,509       20,201       27,528       26,352       25,845       21,479       20,458  

Commercial real estate

     7,671       3,212       8,919       8,272       8,320       5,478       3,483  

Lease financing

     2,559       2,777       2,552       2,581       2,566       2,534       2,789  

Consumer

     17,718       16,125       18,150       17,954       17,886       16,865       16,272  

Residential mortgage

     8,564       6,888       9,605       9,325       8,527       7,173       5,606  

Other

     432       363       400       393       411       527       385  
                                                        

Total loans, net of unearned income

     62,453       49,566       67,154       64,877       63,555       54,056       48,993  

Loans held for sale

     2,955       2,683       3,408       2,842       2,611       2,955       3,167  

Federal funds sold and resale agreements

     2,152       1,143       2,516       2,163       1,832       2,092       2,049  

Other

     3,909       2,985       4,926       4,342       3,606       2,735       3,198  
                                                        

Total interest-earning assets

     98,010       77,692       107,192       101,316       98,024       85,232       78,637  

Noninterest-earning assets:

              

Allowance for loan and lease losses

     (690 )     (591 )     (749 )     (708 )     (692 )     (612 )     (557 )

Cash and due from banks

     3,018       3,121       3,089       3,047       2,991       2,945       2,999  

Other

     23,080       14,790       25,418       23,977       22,997       19,857       17,969  
                                                        

Total assets

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

Supplemental Average Balance Sheet Information (Unaudited)

              

Trading Assets

              

Securities (a)

   $ 2,708     $ 1,712     $ 3,486     $ 3,293     $ 2,144     $ 1,569     $ 2,111  

Resale agreements (b)

     1,133       623       1,320       1,267       1,247       820       1,247  

Financial derivatives (c)

     1,378       1,148       1,785       1,389       1,221       1,115       1,209  

Loans at fair value (c)

     166       128       148       164       161       193       172  
                                                        

Total trading assets

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

 

(a) Included in “Interest-earning assets-Other” above.
(b) Included in “Federal funds sold and resale agreements” above.
(c) Included in “Noninterest-earning assets-Other” above.

 

Page 13


THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)

 

     Year ended    Three months ended

In millions

   December 31
2007
   December 31
2006
   December 31
2007
   September 30
2007
   June 30
2007
   March 31
2007
   December 31
2006

Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity

                    

Interest-bearing liabilities:

                    

Interest-bearing deposits

                    

Money market

   $ 23,840    $ 19,745    $ 24,697    $ 24,151    $ 23,979    $ 22,503    $ 20,879