PNC Financial Services (PNC)

CONSOLIDATED AVERAGE BALANCE SHEET REVIEW

Average assets were $143 billion for the fourth quarter of 2008 compared with $135 billion for the year ago quarter and $143 billion for the third quarter 2008. The increase compared with the fourth quarter of 2007 was due to growth in loans and securities and the impact of acquisitions. The National City acquisition closed on December 31, 2008 and had no impact on average balances.

Average loans were $75.4 billion for the quarter and increased $8.3 billion, or 12 percent, compared with the year-earlier fourth quarter and $2.1 billion, or 3 percent, compared with the third quarter of 2008. The increase in average loans compared with the fourth quarter of 2007 was primarily a result of higher commercial loans, acquisitions and the transfer of education loans previously held for sale to the loan portfolio during the first quarter of 2008. The increase compared with the linked quarter was largely due to growth in commercial and consumer loans.

Average investment securities for the fourth quarter of 2008 were $35.5 billion, an increase of $6.3 billion, or 22 percent, compared with the fourth quarter of 2007 and an increase of $1.7 billion, or 5 percent, compared with the third quarter of 2008. The increase over the prior year fourth quarter was primarily due to the addition of residential mortgage-backed, state and municipal, and commercial mortgage-backed securities as part of the company’s balance sheet management activities. The increase in securities compared with the linked quarter primarily resulted from purchases of U.S. government agency residential mortgage-backed securities.

Average loans held for sale were $1.9 billion for the fourth quarter of 2008, a decrease of $1.5 billion compared with the fourth quarter of 2007 and a decrease of $.2 billion compared with the third quarter of 2008. The decline from fourth quarter 2007 was primarily due to the transfer of $1.8 billion of education loans previously held for sale to the loan portfolio during the first quarter of 2008.

Average deposits of $87.5 billion for the fourth quarter of 2008 grew $6.7 billion, or 8 percent, compared with the fourth quarter of 2007 and $2.5 billion, or 3 percent, compared with the linked quarter. Average deposits increased from the prior year fourth quarter as a result of acquisitions and growth in money market and time deposits. In the linked quarter comparison, the increase was due to continued growth in retail money market deposits, demand and other non-interest bearing deposits, other time deposits, retail certificates and interest-bearing demand deposits. The increases in both comparisons were somewhat offset by declines in time deposits in foreign offices.

- more -

PNC Reports Full Year 2008 Net Income of $882 Million Including Acquisition Costs or $1.3 Billion

Excluding Costs Related to Acquisitions – Page 5

Average borrowed funds for the fourth quarter of 2008 were $30.0 billion, an increase of $1.4 billion, or 5 percent, compared with the fourth quarter of 2007 and a decrease of $2.2 billion, or 7 percent, compared with the third quarter of 2008. The increase over fourth quarter 2007 was due to new borrowings to fund earning asset growth. The decrease in the linked quarter comparison was primarily due to declines in federal funds purchased and repurchase agreements and debt maturities during the quarter.