This excerpt taken from the PNC 8-K filed Apr 18, 2007.
Mercantile acquisition drives total assets to a record $123 billion
PITTSBURGH, April 18, 2007 The PNC Financial Services Group, Inc. (NYSE: PNC) today reported net income of $459 million, or $1.46 per diluted share, for the first quarter of 2007 compared with net income of $354 million, or $1.19 per diluted share, in the first quarter of 2006 and net income of $376 million, or $1.27 per diluted share, in the fourth quarter of 2006.
PNC delivered an outstanding quarter to start 2007, said PNC Chairman and Chief Executive Officer James E. Rohr. We grew net interest income and total revenue, and we created positive operating leverage compared with both the first and fourth quarters of 2006. Our asset quality is exceptional, and the integration of Mercantile Bankshares is well under way.
PNC earned adjusted net income of $434 million, or $1.38 per diluted share, for the quarter. Adjusted net income for the first quarter of 2007 excludes a $33 million net after-tax gain on shares related to the BlackRock Long Term Incentive Plan (LTIP) and $8 million of after-tax integration costs. Adjusted net income was $357 million, or $1.20 per diluted share, for the first quarter of 2006 and $391 million, or $1.32 per diluted share, for the fourth quarter of 2006.
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PNC Reports First Quarter Diluted EPS of $1.46 Page 2
The significant impact of the change in accounting methodology for BlackRock, which did not impact net income, makes some of the comparisons between the first quarter of 2006 and the first quarter of 2007 on a reported basis not helpful in understanding trends at PNC. As a result, we show these comparisons solely on an adjusted basis. References to adjusted amounts in this news release include, as appropriate, adjustments for the following types of items: BlackRock LTIP obligation, integration costs, BlackRock deconsolidation, and PFPC distribution/out-of-pocket revenue and expense. Details of all adjustments, including reconciliations to reported results, are included in the Consolidated Financial Highlights section of this release.