This excerpt taken from the PNC 8-K filed Oct 31, 2006.
PNC POSTS RECORD EARNINGS OF $5.01 PER SHARE
Adjusted EPS of $1.28 excludes BlackRock transaction and balance sheet repositioning
PITTSBURGH, Oct. 31, 2006 The PNC Financial Services Group, Inc. (NYSE: PNC) today reported record net income of $1.5 billion, or $5.01 per diluted share, for the third quarter of 2006 compared with net income of $334 million, or $1.14 per diluted share, in the third quarter of 2005 and net income of $381 million, or $1.28 per diluted share, in the prior quarter. For the first nine months of 2006, the company earned net income of $2.2 billion, or $7.46 per diluted share, compared with net income of $970 million, or $3.35 per diluted share, for the first nine months of 2005.
Third quarter 2006 net income included a $1.3 billion after-tax gain from the BlackRock/Merrill Lynch Investment Managers (MLIM) transaction and the after-tax impact of merger integration costs of $31 million. The period also included after-tax losses of $127 million and $31 million, respectively, arising from the previously announced repositioning of PNCs securities and mortgage loan portfolios. Excluding these items, PNCs adjusted net income for the quarter was $380 million, or $1.28 per diluted share.
PNC delivered strong adjusted earnings of $1.28 per share for the third quarter, said Chairman and Chief Executive Officer James E. Rohr. Also, we recognized a $1.6 billion increase in capital as a result of the BlackRock/MLIM transaction. This capital provides us with an extraordinary opportunity to grow our franchise through the acquisition of Mercantile Bankshares Corporation, continuing our expansion in the highly desirable and affluent Mid-Atlantic region.