PNC Financial Services (PNC)

Shareholders’ Equity

Total shareholders’ equity increased $4.1 billion, to $14.9 billion, at December 31, 2007 compared with December 31, 2006. In addition to the net impact of earnings and dividends in 2007, this increase reflected a $2.5 billion reduction in treasury stock and a $1.0 billion increase in capital surplus, largely due to the issuance of PNC common shares for the Mercantile and Yardville acquisitions.

Regulatory capital ratios at December 31, 2007 were 6.2% for leverage, 6.8% for Tier 1 risk-based and 10.3% for total risk-based capital. At December 31, 2006, the regulatory capital ratios were 9.3% for leverage, 10.4% for Tier 1 risk-based and 13.5% for total risk-based capital.

Shareholders’ Equity

The increase of $2.2 billion in total shareholders’ equity at December 31, 2006 compared with December 31, 2005 reflected the impact of 2006 net income on retained earnings and an increase in capital surplus in connection with the BlackRock/MLIM transaction. Regulatory capital ratios at December 31, 2006 were 9.3% for leverage, 10.4% for tier 1 risk-based and 13.5% for total risk-based capital. At December 31, 2005, the regulatory capital ratios were 7.2% for leverage, 8.3% for tier 1 risk-based and 12.1% for total risk-based capital.

Shareholders’ Equity

The increase of $1.1 billion, to $8.6 billion, in total shareholders’ equity at December 31, 2005 compared with the prior year-end was primarily attributable to the impact of retained earnings of $750 million and the issuance of $356 million of shares in connection with the Riggs acquisition.

Regulatory capital ratios at December 31, 2005 were 7.2% for leverage, 8.3% for tier 1 risk-based and 12.1% for total risk-based capital. At December 31, 2004, the regulatory capital ratios were 7.6% for leverage, 9.0% for tier 1 risk-based and 13.0% for total risk-based capital.